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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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    Citations

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    Cited by:

    1. Clive Lawson & Edward Lorenz, 1999. "Collective Learning, Tacit Knowledge and Regional Innovative Capacity," Regional Studies, Taylor & Francis Journals, vol. 33(4), pages 305-317.
    2. 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.
    3. Edward J. Malecki, 2010. "Everywhere? The Geography Of Knowledge," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 493-513.
    4. 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.
    5. 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.
    6. repec:eee:jrpoli:v:54:y:2017:i:c:p:176-188 is not listed on IDEAS
    7. 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.
    8. 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.
    9. 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.
    10. Francesco Quatraro, 2009. "The diffusion of regional innovation capabilities: Evidence from Italian patent data," Post-Print halshs-00727623, HAL.
    11. 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.
    12. 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.
    13. 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.
    14. 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: Knowledge Transfer and Technology Diffusion, chapter 2 Edward Elgar Publishing.

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