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Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity

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  • Wang, Heli
  • Chen, Wei-Ru
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    Abstract

    This paper extends the resource-based theory of the firm to examine the contingencies that either intensify or reduce the relationship between firm-specific innovation and value appropriation. Based on a large-scale analysis of a sample of US manufacturing firms, we found that greater innovation rents appropriation is associated with an increase in firm specificity of its innovative knowledge. But the positive relationship between firm-specific innovations and firm value appropriation tends to decrease when the product or technology market is highly dynamic. Further, under high environmental dynamism, firms should increase the diversity in their knowledge composition in order to mitigate the risk of value erosion associated with firm-specific innovations.

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    File URL: http://www.sciencedirect.com/science/article/B6V77-4XPXT2P-1/2/0565ba5306b57d4f730208c648b39328
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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 39 (2010)
    Issue (Month): 1 (February)
    Pages: 141-154

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    Handle: RePEc:eee:respol:v:39:y:2010:i:1:p:141-154

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Firm specificity Technological innovation Value appropriation Environmental dynamism Technological diversity;

    References

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    Cited by:
    1. Manuel Portugal Ferreira & Fernando Ribeiro Serra & Emerson Maccari, 2013. "When the innovator fails to capture rents from innovation," Working Papers 101, globADVANTAGE, Polytechnic Institute of Leiria.

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