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Higher-order industrial Capabilities and competitive advantage

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  • Nicolai Foss

Abstract

This paper makes some analytical suggestions to help explain the advantages that firms derive from clustering or networking. The concept of 'higher-order capabilities' is introduced to identify the assets which may give firms in such clusters or networks some competitive advantages over firms that are not members of such clusters. Higher-order capabilities are non-traded interdependencies among firms, and may be approached in terms of the resource-based view of recent strategic thinking.

Suggested Citation

  • Nicolai Foss, 1996. "Higher-order industrial Capabilities and competitive advantage," Industry and Innovation, Taylor & Francis Journals, vol. 3(1), pages 1-20.
    • Handle: RePEc:taf:indinn:v:3:y:1996:i:1:p:1-20
    DOI: 10.1080/13662719600000001
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    Cited by:

    1. F. Xavier Molina-Morales & M. Teresa Martínez-Fernández, 2008. "Shared Resources in Industrial Districts: Information, Know-How and Institutions in the Spanish Tile Industry," International Regional Science Review, , vol. 31(1), pages 35-61, January.
    2. Fenfen Ma & Shah Fahad & Mancang Wang & Abdelmohsen A. Nassani & Mohamed Haffar, 2023. "Spatial Effects of Digital Transformation, PM 2.5 Exposure, Economic Growth and Technological Innovation Nexus: PM 2.5 Concentrations in China during 2010–2020," IJERPH, MDPI, vol. 20(3), pages 1-16, January.
    3. José A. Belso-Martínez, 2015. "Resources, Governance, and Knowledge Transfer in Spanish Footwear Clusters," International Regional Science Review, , vol. 38(2), pages 202-231, April.
    4. Francesco Quatraro, 2009. "Diffusion of Regional Innovation Capabilities: Evidence from Italian Patent Data," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1333-1348, December.
    5. Nadvi, Khalid, 1999. "Collective Efficiency and Collective Failure: The Response of the Sialkot Surgical Instrument Cluster to Global Quality Pressures," World Development, Elsevier, vol. 27(9), pages 1605-1626, September.
    6. Quatraro, Francesco, 2008. "Regional Knowledge Base and Productivity Growth: The Evidence of Italian Manufacturing," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200810, University of Turin.
    7. Manuel EXPÓSITO-LANGA & José-Vicente TOMÁS-MIQUEL & Gabriel BRĂTUCU & Oana BĂRBULESCU, 2018. "Embeddedness in Cluster Knowledge Networks, the Moderating Role of Network Competence. The Case Study of the Romanian Wine Cluster of Muntenia-Oltenia," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 148-160, December.
    8. Mark Lorenzen, 2005. "Localized Learning and Social Capital The Geography Effect in Technological and Institutional Dynamics," DRUID Working Papers 05-22, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Edward J. Malecki, 2010. "Everywhere? The Geography Of Knowledge," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 493-513, February.
    10. Juan Ignacio Dalmau-Porta & José Luis Hervás- Oliver & Maria del Val Segarra-Oña, 2003. "A Conceptual Framework for the Industrial District Analysis: from Knowledge to Resources," ERSA conference papers ersa03p36, European Regional Science Association.
    11. Bodas Freitas Isabel Maria & Federica Rossi & Aldo Geuna, 2014. "Collaboration objectives and the location of the university partner: Evidence from the Piedmont region in Italy," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 203-226, November.
    12. Molina-Morales, F. Xavier, 2001. "European industrial districts: Influence of geographic concentration on performance of the firm," Journal of International Management, Elsevier, vol. 7(4), pages 277-294.
    13. Mark Lorenzen, 2007. "Social Capital and Localised Learning: Proximity and Place in Technological and Institutional Dynamics," Urban Studies, Urban Studies Journal Limited, vol. 44(4), pages 799-817, April.
    14. Gianluca Orsatti & Francesco Quatraro & Alessandra Scandura, 2020. "Regional differences in the generation of green technologies: the role of local recombinant capabilities and academic inventors," Carlo Alberto Notebooks 617, Collegio Carlo Alberto.
    15. Molina-Morales, F. Xavier & Martinez-Fernandez, M. Teresa, 2004. "How much difference is there between industrial district firms? A net value creation approach," Research Policy, Elsevier, vol. 33(3), pages 473-486, April.
    16. Reynolds, Elisabeth B. & Uygun, Yilmaz, 2018. "Strengthening advanced manufacturing innovation ecosystems: The case of Massachusetts," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 178-191.
    17. Päivi Oinas & Edward J. Malecki, 2002. "The Evolution of Technologies in Time and Space: From National and Regional to Spatial Innovation Systems," International Regional Science Review, , vol. 25(1), pages 102-131, January.
    18. Pla-Barber, José & Puig, Francisco, 2009. "Is the influence of the industrial district on international activities being eroded by globalization?: Evidence from a traditional manufacturing industry," International Business Review, Elsevier, vol. 18(5), pages 435-445, October.
    19. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    20. Alo Lilles & Kärt Rõigas & Urmas Varblane, 2020. "Comparative View of the EU Regions by Their Potential of University-Industry Cooperation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 174-192, March.
    21. Pezoa-Fuentes, Claudia & Vidal-Suñé, Antoni, 2017. "Cluster perpetuation: Maintenance of competitive advantages over time. The case of Chile's large north," Resources Policy, Elsevier, vol. 54(C), pages 176-188.
    22. Kevin P. Heanue & David Jacobson, 2007. "Embeddedness and innovation in low and medium tech rural enterprises," Working Papers 0702, Rural Economy and Development Programme,Teagasc.
    23. Edward J. Malecki, 2002. "Hard and Soft Networks for Urban Competitiveness," Urban Studies, Urban Studies Journal Limited, vol. 39(5-6), pages 929-945, May.
    24. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    25. José L. Hervas-Oliver & José Albors, 2011. "Resources and Innovation in Low-tech Industries: An Empirical Study of Clusters in Spain and Italy," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 2, Edward Elgar Publishing.

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