Abstract
This dissertation presents a collection of three essays that investigate the relationship between capability portfolios and performance using the data from Formula One industry. The first essay identifies distinct types of capability portfolios and examines how different configurations of capability portfolios contribute to performance. Analyses show that four different online casino types of configurations of capability portfolios exist and focused capability portfolios perform better than all other portfolios. The second essay analyzes the evolutionary trajectories of capability portfolios of Formula One teams over time and the performance implications of different evolutionary trajectories of capability portfolios. Analyses show that teams differ to the frequency and the timing of capability portfolio reconfiguration, and teams that follow atypical evolutionary trajectories perform better than other teams. Finally, the third essay investigates the impact of capability configuration on firm performance. Findings revealed that while capability portfolio upgrades are related to immediate performance increase, the impact of capability portfolio downgrade on performance is delayed. These findings enrich our current understanding of capabilities and how they contribute to firm heterogeneity.