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

Sosa, M. Lourdes ORCID: 0000-0003-0303-2238 (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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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
Date Deposited:	11 Sep 2014 08:59
Last Modified:	01 Nov 2024 05:24
URI:	http://eprints.lse.ac.uk/id/eprint/59435

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