Journal ArticleDOI
Technological Discontinuities and the Nature of Competition
TLDR
In this paper, the authors revisited the Schumpeterian model of competition driven by the perennial gale of creative destruction, and developed a cyclical model of industry dynamics initiated by a complementary innovation.Abstract:
We revisit the Schumpeterian model of competition driven by the perennial gale of creative destruction. Not every innovation must necessarily lead to the destruction of incumbent firms. In many high-technology industries we observe a symbiotic coexistence between new entrant and incumbent firms. This phenomenon warrants more attention. We build upon the innovation and strategic alliance literature to develop the notion of complementary innovation.’ We advance propositions with respect to the following questions: What impact will a complementary innovation have on firm entry, interfirm cooperation, and the nature of competition? Based on the propositions advanced, we develop a cyclical model of industry dynamics initiated by a complementary innovation. The propositions and the cyclical model of industry dynamics are illustrated in a case study of the biopharmaceutical industry.read more
Citations
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Incumbent's advantage through exploiting complementary assets via interfirm cooperation
TL;DR: In this article, the authors examine interfirm cooperation between incumbents and new entrants as a mechanism for incumbents to adapt to radical technological change through exploitation of complementary assets, and find that incumbents that focus their network strategy on exploiting complementary assets outperform incumbents who focus on exploring the new technology.
Journal ArticleDOI
Breakthrough innovations in the U.S. biotechnology industry: the effects of technological space and geographic origin
TL;DR: The study suggests that the type of external knowledge sourced determines the likelihood of creation of breakthrough innovation and suggests that technologically distant knowledge of national origin has a curvilinear effect and technologically proximate knowledge of internationalorigin has a positive effect on breakthrough innovation.
Journal ArticleDOI
Complementary assets, strategic alliances, and the incumbent’s advantage: an empirical study of industry and firm effects in the biopharmaceutical industry
TL;DR: In this paper, the authors argue that incumbents may be in a position to adapt to radical technological change via interfirm cooperation with new entrants when the incumbents have complementary assets within their firm boundaries that are critical to commercializing the new technology.
Journal ArticleDOI
Technological Discontinuities and Complementary Assets: A Longitudinal Study of Industry and Firm Performance
TL;DR: Drawing on multi-industry, time series, and panel data over a 26-year period to analyze pre- and postdiscontinuity industry and firm performance, broad support is found for the theoretical model.
Journal ArticleDOI
Assets and actions: Firm-specific factors in the internationalization of U.S. internet firms
TL;DR: In this article, the authors examine what firm-specific factors are associated with the propensity of pure U.S.-based Internet firms to enhance their international presence on the Internet by developing country-specific websites.
References
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Book
Capitalism, Socialism and Democracy
TL;DR: In this paper, the authors present a history of the first half of the 20th century, from 1875 to 1914, of the First World War and the Second World War.
Journal ArticleDOI
Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms
Rebecca Henderson,Kim B. Clark +1 more
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Core capabilities and core rigidities: a paradox in managing new product development
TL;DR: The nature of the core capabilities of a firm is examined, focusing in particular on their interaction with new product and process development projects, and two new concepts about core capabilities are explored here.
Journal ArticleDOI
Technological Discontinuities and Organizational Environments
TL;DR: In this article, the authors investigate the patterns of technological evolution and their impact on environmental conditions and find that technological change within a product class will be characterized by long periods of incremental change punctuated by discontinuities, and the locus of innovation will differ for competence destroying and competence-enhancing technological changes.
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Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences
TL;DR: In this article, an attempt is made to clarify our understanding of the motives that lead firms to cooperate in their innovative efforts, and attention is paid to both sectoral differences in the motivation for partnerships as well as to contrasts in interorganizational features of technology cooperation.