Building and Deploying Speed Capability: How and when Do Different Learning Experiences Matter?

While research has emphasized the importance of speed, there is still little understanding about how firms develop speed capabilities and when to deploy such capabilities. In this paper, we relax the common assumption in the literature that developing /building speed capabilities and deploying those capabilities occur simultaneously. We develop a theoretical framework to explore the internal acquisition and deploying of speed capabilities at different stages. Building on the literature of deliberate learning and evolution of capabilities and the literature on speed capabilities, we argue that (1) engaging in a mix of different types of experienced-based learning (i.e., partner-specific, field-specific and generalizable experiences) is crucial for developing speed capability, and that (2) building such capability during industry downturns and deploying them once the industry recovers enables firms to successfully execute them. Using the context of onshore oil-gas drilling, we find support for our hypotheses. Our insights help advance our understanding on learning-before-doing, the timing of learning investments, and firm heterogeneity when building speed capabilities as source of competitive advantage.