IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v16y2005i1p52-70.html
   My bibliography  Save this article

Technological Discontinuities and Complementary Assets: A Longitudinal Study of Industry and Firm Performance

Author

Listed:
  • Frank T. Rothaermel

    () (College of Management, Georgia Institute of Technology, Atlanta, Georgia 30308-0520)

  • Charles W. L. Hill

    () (Department of Management and Organization, Business School, University of Washington, Seattle, Washington 98195-3200)

Abstract

We suggest that the type of complementary assets (generic versus specialized) needed to commercialize a new technology is critical in determining the industry- and firm-level performance implications of a competence-destroying technological discontinuity. At the industry level, we hypothesize that incumbent industry performance declines if the new technology can be commercialized through generic complementary assets, whereas incumbent industry performance improves if the new technology can be commercialized through specialized complementary assets. At the firm level, we posit that an incumbent firm's financial strength has a stronger positive impact on firm performance in the postdiscontinuity time period if the new technology can be commercialized through generic complementary assets. We hypothesize, however, that an incumbent firm's R&D capability has a stronger positive impact on firm performance in the postdiscontinuity time period if the new technology can be commercialized through specialized complementary assets. Drawing on multi-industry, time series, and panel data over a 26-year period to analyze pre- and postdiscontinuity industry and firm performance, we find broad support for our theoretical model.

Suggested Citation

  • Frank T. Rothaermel & Charles W. L. Hill, 2005. "Technological Discontinuities and Complementary Assets: A Longitudinal Study of Industry and Firm Performance," Organization Science, INFORMS, vol. 16(1), pages 52-70, February.
  • Handle: RePEc:inm:ororsc:v:16:y:2005:i:1:p:52-70
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1040.0100
    Download Restriction: no

    Citations

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


    Cited by:

    1. repec:bla:stratm:v:38:y:2017:i:10:p:1986-2004 is not listed on IDEAS
    2. Hwan Jin Kim, 2016. "The Comparative Effects of Transaction Cost Economics and Resource Based View: A Technological Alliance Motivational Perspective," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 6(5), pages 64-75, May.
    3. repec:bla:stratm:v:38:y:2017:i:5:p:1062-1081 is not listed on IDEAS
    4. Ron Adner & Rahul Kapoor, 2016. "Innovation ecosystems and the pace of substitution: Re-examining technology S-curves," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 625-648, April.
    5. repec:bla:stratm:v:38:y:2017:i:13:p:2579-2598 is not listed on IDEAS
    6. Timothy Clark & Mike Wright & Zilia Iskoujina & Philip Garnett, 2014. "JMS at 50: Trends over Time," Journal of Management Studies, Wiley Blackwell, vol. 51(1), pages 19-37, January.
    7. Volker H. Hoffmann & Thomas Trautmann & Jens Hamprecht, 2009. "Regulatory Uncertainty: A Reason to Postpone Investments? Not Necessarily," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1227-1253, November.
    8. Lucio Fuentelsaz & Elisabet Garrido & Juan P. Maicas, 2015. "Incumbents, technological change and institutions: How the value of complementary resources varies across markets," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1778-1801, December.
    9. repec:bla:stratm:v:38:y:2017:i:6:p:1253-1267 is not listed on IDEAS
    10. Hu, Mei-Chih & Mathews, John A., 2008. "China's national innovative capacity," Research Policy, Elsevier, vol. 37(9), pages 1465-1479, October.
    11. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9900-8 is not listed on IDEAS
    12. Jun Na & Yao Sun, 2016. "How do Multinationals Exploit Technologies in the Global Market?," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-29, June.
    13. repec:spr:manint:v:50:y:2010:i:3:d:10.1007_s11575-010-0039-y is not listed on IDEAS
    14. repec:kap:jtecht:v:42:y:2017:i:6:d:10.1007_s10961-016-9511-6 is not listed on IDEAS

    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:ororsc:v:16:y:2005:i:1:p:52-70. 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.