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Decoupling market incumbency from organizational prehistory: locating the real sources of competitive advantage in R&D for radical innovation

Sosa, M. Lourdes (2013) Decoupling market incumbency from organizational prehistory: locating the real sources of competitive advantage in R&D for radical innovation. Strategic Management Journal, 34 (2). pp. 245-255. ISSN 0143-2095

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Identification Number: 10.1002/smj.2012

Abstract

The creative destruction literature has argued that differences in R&D performance of incumbent vs. entrant firms can be explained through organizational change theories about established vs. de novo firms. A disconnect exists between these theories and the available empirical evidence because often the best performing firms are established firms as well. I propose to resolve this disconnect by distinguishing between market incumbency (presence in a market prior to a discontinuity) and organizational prehistory (organizational experience prior to a transition, whether between technologies or between markets). Doing so allows me to contrast incumbent vs. entrant and de alio vs. de novo studies, and to suggest more robust future research designs. I illustrate my proposition using qualitative data from the anticancer and AIDS-treatment drug markets.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1002/%28...
Additional Information: © 2012 John Wiley & Sons, Ltd.
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
R Medicine > RS Pharmacy and materia medica
Sets: Departments > Management
Date Deposited: 11 Sep 2014 08:59
Last Modified: 20 Jul 2019 01:49
URI: http://eprints.lse.ac.uk/id/eprint/59435

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