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Local search and the evolution of technological capabilities

Published on Jul 5, 2007in Strategic Management Journal5.57
· DOI :10.1002/smj.4250171004
Toby E. Stuart32
Estimated H-index: 32
(U of C: University of Chicago),
Joel M. Podolny23
Estimated H-index: 23
(Stanford University)
Cite
Abstract
The assumption that ‘local search’ constrains the direction of corporate R&D is central in evolutionary perspectives on technological change and competition. In this paper, we propose a network-analytic approach for identifying the evolution of firms' technological positions. The approach (1) permits graphical and quantitative assessments of the extent to which firms' search behavior is locally bounded, and (2) enables firms to be positioned and grouped according to the similarities in their innovative capabilities. The utility of the proposed framework is demonstrated by an analysis of strategic partnering and the evolution of the technological positions of the 10 largest Japanese semiconductor producers from 1982 to 1992.
  • References (36)
  • Citations (837)
Cite
References36
Newest
Published on Nov 1, 1996in American Journal of Sociology4.46
Joel M. Podolny23
Estimated H-index: 23
,
Toby E. Stuart32
Estimated H-index: 32
,
Michael T. Hannan56
Estimated H-index: 56
The authors develop a conceptions of an organization-specific niche in a technological network. This niche is defined by two properties: crowding and status. The authors hypothesize that crowding suppresses and organization's life chances and that status enhances life chances, especially for those organizations in uncrowded niches. They operationalize this conception of the niche using patents and patent citations, and they find support for these hypotheses in an examination of technological com...
Published on Apr 1, 1996in Organization Science3.26
Kathleen M. Eisenhardt58
Estimated H-index: 58
,
Claudia Bird Schoonhoven7
Estimated H-index: 7
Why do firms form strategic alliances? The traditional theoretical answer has been transaction cost explanations. Yet, these explanations which center on transaction characteristics, static efficiency, and routine situations do not capture the strategic and social factors which propel many firms into alliance formation. In this study, however, we combine these alternative social and strategic explanations for alliance formation. Consistent with these explanations, we find that alliances form whe...
Published on Mar 1, 1995in American Journal of Sociology4.46
Joel M. Podolny23
Estimated H-index: 23
,
Toby E. Stuart32
Estimated H-index: 32
This article considers what factors determine whether an innovation becomes a foundation for future technological developments rather than a "dea end." The authors introduce the concept of the technological niche, which includes a focal innovation, the innovations on which the focal innovations builds, the innovations that build upon the focal innovation, and the technological ties among the innovations within the niche. Using patents and patent citations to measure characteristics of innovation...
Published on Mar 1, 1995in British Journal of Sociology3.20
Paul Q. Hirst5
Estimated H-index: 5
,
Gernot Grabher1
Estimated H-index: 1
1. Introduction: Towards a Socio-Economics of Industrial Networks Gernot Grabher , Social Science Centre, Berlin Part I: Blurring Boundaries: Explaining Inter-Firm Co-operation in Networks 2. The Network as a Governance Structure Hakan Hakansson and Jan Johanson , both of University of Uppsala, Sweden 3. Explaining Inter-Firm Co-operation and Innovation: The Limits of the Transaction Cost Approach Bengt-Ake Lundvall , Aalborg University, Denmark Part II: High Technology Networks: Horizontal Inte...
Published on May 1, 1994in Organization Science3.26
Constance E. Helfat33
Estimated H-index: 33
Much corporate research and development (R&D) has characteristics that tie it strongly to the firm in which it takes place, and which may make the process of undertaking R&D or the outcome of the R&D difficult for other firms to duplicate perfectly. That is, the R&D is firm-specific. This is particularly true for more highly applied R&D, which tends to involve incremental technological change and often entails alterations and enhancements to existing firm assets, production processes, and produc...
Published on Apr 1, 1993in Research Policy5.42
William J. Abernathy15
Estimated H-index: 15
(Harvard University),
Kim B. Clark45
Estimated H-index: 45
(Harvard University)
Abstract This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience — the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of ...
Published on Apr 1, 1993in Research Policy5.42
Devendra Sahal5
Estimated H-index: 5
(NYU: New York University)
Abstract This paper presents an integrative view of innovation processes based on a theory of systems developed by the author over the past few years. In its essence, one of the most important clues to the origin of innovations is to be found in the fact that the performance of every technology depends upon its size and structure. Specifically, as a technology is continuously made to become larger or smaller, the relationship between its size and structural requirements changes, which in turn, s...
Published on Jan 1, 1992
Rod Coombs25
Estimated H-index: 25
,
Paolo Saviotti3
Estimated H-index: 3
,
Vivien Walsh17
Estimated H-index: 17
Technology and the Firm: The Convergence of Economic and Sociological Approaches. Economic and Sociological Explanation of Technological Change. Evolutionary Epistemology and the Nature of Technology Strategy. Techno-Economic Networks and Irreversibility. Paradigmatic Change, Normative Uncertainty, And the Control of Knowledge. Strategy and Technological Learning: An Interdisciplinary Microstudy. Creating Demand for Biotechnology: Shaping Technologies and Markets. The Policy Relevance of the Qua...
Cited By837
Newest
Published on Sep 26, 2018in R & D Management2.35
Mirjam Roessler (HHL Leipzig Graduate School of Management), Vivek K. Velamuri5
Estimated H-index: 5
(HHL Leipzig Graduate School of Management),
Dirk Schneckenberg13
Estimated H-index: 13
(ESC Rennes School of Business)
Published on May 1, 2019in Journal of International Management2.83
Feng Zhang5
Estimated H-index: 5
,
Guohua Jiang3
Estimated H-index: 3
,
John Cantwell38
Estimated H-index: 38
Abstract This study identifies key mechanisms linking multinationality with the knowledge advantages of multinational corporations (MNCs). These mechanisms are the absorption of new knowledge by one individual MNC unit and the subsequent flows of such newly absorbed knowledge to other geographically distant units of the same firm. The intra-MNC and inter-unit flows of such newly absorbed knowledge include exchanges between a parent and its overseas subsidiaries and those between subsidiaries. Th...
Published on Mar 23, 2018in Journal of Management9.06
Holmer Kok1
Estimated H-index: 1
(UG: University of Groningen),
Dries Faems18
Estimated H-index: 18
,
Pedro de Faria8
Estimated H-index: 8
Whereas knowledge recombination research tends to focus on original knowledge component attributes and their recombinant value implications, we contribute to an emerging literature stream on knowledge reuse trajectories, investigating the temporal dimension of reuse by introducing the concept of recombinant lag, that is, the time that components have remained unused. Relying on organizational learning theory, we emphasize that it is important to consider not only the frequency of reuse but also ...
Published on Jan 1, 2019
Published on Jul 3, 2019in Technology Analysis & Strategic Management1.74
KwangWook Gang3
Estimated H-index: 3
(SU: Salisbury University),
Byungchul Choi (HUFS: Hankuk University of Foreign Studies)
ABSTRACTThis paper investigates how market-oriented reforms affect firm incentives to innovate. We utilise the market reforms enacted in Korea following the Asian Financial Crisis of 1997 as an empirical setting to show why an institution-based view is crucial to understanding the factors that incentivize firms to innovate. Additionally, we draw on the competitive strategy literature to investigate how market reforms – combined with industry competition and firm-specific factors – affect innovat...
Christophe Pennetier (Ad: INSEAD), Karan Girotra1
Estimated H-index: 1
(Cornell University),
Jürgen Mihm9
Estimated H-index: 9
(Ad: INSEAD)
It is well established that the benefits of RD under a dynamic policy, RD the predictable part has no or even positive effects. Finally, our results are more pronounced for firms in higher quantiles of the performance distribution: rather than coping with the negative effects of dynamic allocation, such companies are especially affected by them.
Feng Zhang (PSU: Pennsylvania State University), Guohua Jiang (College of Business Administration)
Valuable technological knowledge attracts more imitations. In light of knowledge-level perspective, this study investigates how firms could generate rare and valuable knowledge that is also hard to...