This dissertation explores the role of capacities of different sets of actors and examines some of the consequences of realization of these capacities. Specifically, the two outcomes examined in this dissertation are coopetition, which is simultaneous cooperation and competition, and innovation. This research uses different contexts and multiple methods to understand and explore the role of capacities in varied outcomes. The first essay examines the effect of actor capacities on coopetition. It looks at cosmetics salespeople in department stores that are embedded in relations with the store and the cosmetics brands among others, and examines the effect of this embeddedness on cooperative or competitive responses of these salespeople. Specifically, this research posits that actors, both human and non-human, possess capacities to interact with other actors. Unless the interaction occurs, the capacity merely remains a potential, and is only realized in interaction. Capacities represent the joint agency of interacting actors or entities. Both individual actors and collectives possess capacities to interact with others. Capacities of actors and collectives determine the processes employed by these actors that help integrate the collective or disintegrate it, thereby dynamically influencing the balance between cooperation and competition among sales people. The second essay examines the capacities of inventors in Biotechnology industry and investigates innovation as an outcome of realization of their capacities. This essay specifically focuses on actor capacities and its outcomes in the event of an acquisition. It posits that potential relational capacities of inventors prior to an acquisition determines whether integration among inventors will happen at the time of the acquisition. In addition, this research studies the effect of inventor integration at the time of acquisition on innovation outcomes of the acquiring firm, four years from the time of acquisition.