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What Factors Affect the Persistence of an Innovation Advantage?

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  • Tammy L. Madsen
  • Michael J. Leiblein

Abstract

type="main"> Factors that affect a firm's ability to achieve an advantage may differ from those that affect its ability to sustain that advantage. Moreover, if advantage is a relative concept then studies that relate resource stocks to ‘absolute’ outcomes say little about how resources contribute to enduring differences among firms. We explore these issues in the global semiconductor industry by analyzing how a firm's resource stocks contribute to the persistence of an innovation advantage (a relative outcome). The findings demonstrate that a firm's own production experience and the experience held by its partners contribute to temporary innovation advantages. The results also show that a firm's own production experience yields a more durable innovation advantage as compared to the experience held by a firm's partners and that the experience held by a firm's partners provides a more enduring advantage than a firm's patent stock.

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  • Tammy L. Madsen & Michael J. Leiblein, 2015. "What Factors Affect the Persistence of an Innovation Advantage?," Journal of Management Studies, Wiley Blackwell, vol. 52(8), pages 1097-1127, December.
  • Handle: RePEc:bla:jomstd:v:52:y:2015:i:8:p:1097-1127
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    2. Zhao, Yue & Parente, Ronaldo & Song, Mohan & Wenger, Lucas, 2020. "Host country institutional diversity and MNE performance persistence," Journal of Business Research, Elsevier, vol. 113(C), pages 1-12.
    3. Victor Manuel Bennett, 2020. "Changes in persistence of performance over time," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1745-1769, October.
    4. Mario Coccia, 2017. "Disruptive firms," Papers 1710.06132, arXiv.org.
    5. Kathryn Rudie Harrigan & Maria Chiara DiGuardo, 2017. "Sustainability of patent-based competitive advantage in the U.S. communications services industry," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1334-1361, December.
    6. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & Joshua Gans & Michael D. Ryall, 2017. "Value capture theory: A strategic management review," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 17-41, January.
    7. Letycja Sołoducho-Pelc & Adam Sulich, 2020. "Between Sustainable and Temporary Competitive Advantages in the Unstable Business Environment," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
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