IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v42y1996i3p389-403.html
   My bibliography  Save this article

Innovation, Competitive Advantage and Rent: A Model and Test

Author

Listed:
  • Rita Gunther McGrath

    (Columbia University, Graduate School of Business, 703 Uris Hall, New York, New York 10027)

  • Ming-Hone Tsai

    (National Central University, Taiwan, Republic of China)

  • S. Venkataraman

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

  • I. C. MacMillan

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

Abstract

Four antecedents, it is argued, are necessary precursors for a firm to capture rents from innovation. The antecedents are causal understanding; innovation team proficiency; emergence and mobilization of new competences; and creation of competitive advantages, each of which are conceptually distinct and precisely defined in the paper. These constructs are linked together in a stage model and subsequently operationalized and tested using LISREL. Substantial support is found for the central thesis, that achieving each of the four antecedent processes increases the predicted rents from an innovation project.

Suggested Citation

  • Rita Gunther McGrath & Ming-Hone Tsai & S. Venkataraman & I. C. MacMillan, 1996. "Innovation, Competitive Advantage and Rent: A Model and Test," Management Science, INFORMS, vol. 42(3), pages 389-403, March.
  • Handle: RePEc:inm:ormnsc:v:42:y:1996:i:3:p:389-403
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.42.3.389
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jasanta PERANGINANGIN, 2015. "A Conceptual Mapping Resource Advantage Theory, Competitive Advantage Theory, and Transient Competitive Advantage," Expert Journal of Business and Management, Sprint Investify, vol. 3(2), pages 140-149.
    2. Amason, Allen C. & Shrader, Rodney C. & Tompson, George H., 2006. "Newness and novelty: Relating top management team composition to new venture performance," Journal of Business Venturing, Elsevier, vol. 21(1), pages 125-148, January.
    3. Minarelli, Francesca & Raggi, Meri & Viaggi, Davide, 2013. "“What Do we Know about Entering Innovation Network by SMEs ?”," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164740, International European Forum on Innovation and System Dynamics in Food Networks.
    4. Ph. D Daniela Fundeanu, 2015. "Development Clusters - A New Way To Innovate In The Romanian Economy," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(25), pages 39-48, NOVEMBER.
    5. Jaafar, Harlina Suzana & Endut, Intan Rohani & Faisol, Nasruddin & Omar, Emi Normalina, 2011. "Innovation in logistics services – halal logistics," MPRA Paper 34665, University Library of Munich, Germany.
    6. Shepherd, Dean A. & Covin, Jeffrey G. & Kuratko, Donald F., 2009. "Project failure from corporate entrepreneurship: Managing the grief process," Journal of Business Venturing, Elsevier, vol. 24(6), pages 588-600, November.
    7. Basu, Sandip & Sahaym, Arvin & Howard, Michael D. & Boeker, Warren, 2015. "Parent inheritance, founder expertise, and venture strategy: Determinants of new venture knowledge impact," Journal of Business Venturing, Elsevier, vol. 30(2), pages 322-337.
    8. repec:gam:jsusta:v:10:y:2018:i:3:p:729-:d:135096 is not listed on IDEAS
    9. Chowdhury, Sanjib, 2005. "Demographic diversity for building an effective entrepreneurial team: is it important?," Journal of Business Venturing, Elsevier, vol. 20(6), pages 727-746, November.
    10. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.
    11. repec:dau:papers:123456789/2966 is not listed on IDEAS
    12. Özlem Yaþar Uðurlu & Nurettin Ýbrahimoðlu & Sibel Ayas, 2013. "A Content Analysis on Management Fashions in Turkish Manufacturing Companies," International Review of Management and Marketing, Econjournals, vol. 3(4), pages 164-183.
    13. 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.
    14. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    15. Insu Cho & Heejun Park & Joseph Kim, 2012. "The moderating effect of innovation protection mechanisms on the competitiveness of service firms," Service Business, Springer;Pan-Pacific Business Association, vol. 6(3), pages 369-386, September.
    16. Micheels, Eric T & Gow, Hamish R, 2013. "Market driven innovation and entrepreneurial behaviour: The strategic value of a market orientation in primary agriculture," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 3(1), October.
    17. repec:spr:rvmgts:v:11:y:2017:i:3:d:10.1007_s11846-016-0198-8 is not listed on IDEAS
    18. Nerkar, Atul A. & McGrath, Rita Gunther & MacMillan, Ian C., 1996. "Three facets of satisfaction and their influence on the performance of innovation teams," Journal of Business Venturing, Elsevier, vol. 11(3), pages 167-188, May.
    19. Burger-Helmchen, Thierry, 2009. "Option chain and change management: A structural equation application," European Management Journal, Elsevier, vol. 27(3), pages 176-186, June.
    20. Baoshan Ge & Robert D. Hisrich & Baobao Dong, 2009. "Networking, Resource Acquisition, and the Performance of Small and Medium-Sized Enterprises: An Empirical Study of Three Major Cities in China," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(3), pages 221-239.
    21. Dimária Silva e Meirelles & Eduardo Sérgio Ulrich Pace & Leonardo Fernando Cruz Basso, 2005. "The Contributions Of Firm'S Productive Assets To Its Competitive Performance: A Resource-Based View Approach In The Software Sector," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 103, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    22. Levesque, Moren & Shepherd, Dean A., 2004. "Entrepreneurs' choice of entry strategy in emerging and developed markets," Journal of Business Venturing, Elsevier, vol. 19(1), pages 29-54, January.
    23. Karim Moustaghfir, 2012. "Explicating Knowledge-based Competitive Advantage," International Journal of Synergy and Research, ToKnowPress, vol. 1(1), pages 23-38.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:42:y:1996:i:3:p:389-403. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.