Unbundling competitive heterogeneity: Incentive structures and capability influences on technological innovation

Strategic Management Journal

Volumn 30, Issue 7, 2009, Pages 711-735

  Leiblein, Michael J ^a   Madsen, Tammy L ^b  

^a OHIO STATE UNIVERSITY   (United States)

^b SANTA CLARA UNIVERSITY   (United States)

Author keywords

Competitive heterogeneity; Innovation; Learning; Organization economics; Resource based view

Indexed keywords

CO-DEVELOPMENT; COMPETITIVE HETEROGENEITY; COMPETITIVE POSITION; EMPIRICAL RESULTS; FIRM SIZE; INCENTIVE STRUCTURE; INNOVATION ACTIVITY; LEARNING; OPERATING EXPERIENCE; ORGANIZATION ECONOMICS; RESOURCE-BASED VIEW; TECHNOLOGICAL INNOVATION;

TECHNOLOGICAL FORECASTING;

INNOVATION;

EID: 67650823065     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.746     Document Type: Article

References (128)

1. Abernathy WJ, Utterback JM. 1978. Patterns of industrial innovation. Technology Review 80: 41-47.
2. Acs ZJ, Audretsch D. 1988. Innovation in large and small firms: an empirical analysis. American Economic Review 78 (4): 678-690.
3. Adler PS. 1988. Managing flexible automation. California Management Review 31: 34-56.
4. Ahuja G, Katila R. 2004. Where do resources come from? The role of idiosyncratic situations. Strategic Management Journal, August-September Special Issue 25: 887-907.
5. Ahuja G, Lampert CM. 2001. Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal, June-July Special Issue 22: 521-543.
6. Anand BN, Khanna T. 2000. Do firms learn to create value? The case of alliances. Strategic Management Journal, March Special Issue 21: 295-315.
7. Argote L. 1999. Organizational learning: creating, retaining and transferring knowledge. Kluwer: Norwell, MA.
8. Argote L, Kane AA. 2003. Learning from direct and indirect experience in organizations: the effects of experience content, timing, and distribution. In Group Creativity: Learning through Innovation, Paulus PB, Nijstad BA (eds). Oxford University Press: New York; 277-303.
9. Armour HO, Teece DJ. 1981. Vertical integration and technological innovation. Review of Economics and Statistics 62: 470-474.
10. Baltagi BH, Chang Y. 1994. Incomplete panels: a comparative study of alternative estimators for the unbalanced one-way error component regression model. Journal of Econometrics 62: 67-89.
11. Baltagi BH, Wu PX. 1999. Unequally spaced panel data regressions with ar (1) disturbances. Econometric Theory 15: 814-823.
12. Barnett ML, Salomon RM. 2006. Beyond dichotomy: the curvilinear relationship between social responsibility and financial performance. Strategic Management Journal 27 (11): 1101-1122.
13. Barnett WP. 1997. The dynamics of competitive intensity. Administrative Science Quarterly 42: 128-160.
14. Barnett WP, Amburgey TL. 1990. Do larger organizations generate stronger competition? In Organizational Evolution: New Directions, Singh JV (ed). Sage: Newbury Park, CA; 78-102.
15. Barnett WP, Greve HR, Park DY. 1994. An evolutionary model of organizational performance. Strategic Management Journal, Winter Special Issue 15: 11-28.
16. Barnett WP, Hansen MT. 1996. The Red Queen in organizational evolution. Strategic Management Journal, Summer Special Issue 17: 139-157.
17. Barney JB. 1986. Strategic factor markets: expectations, luck and business strategy. Management Science 32: 1231-1241.
18. Barron DN, Elizabeth W, Hannan MT. 1994. A time to grow and a time to die: growth and mortality in credit unions in New York City, 1914-1990. American Journal of Sociology 100: 381-421.
19. Baum JAC, Ingram P. 1998. Survival-enhancing learning in the Manhattan hotel industry, 1898-1980. Management Science 44: 996-1016.
20. Belsley DA, Kuh E, Welsch RA. 1980. Regression Diagnostics: Identifying Influential Data and Sources of Collinearity (Wiley Series in Probability and Statistics). John Wiley & Sons: New York.
21. Blau PM. 1970. A formal theory of differentiation in organizations. American Sociological Review 35: 201-208.
22. Blau PM, Schoenherr RA. 1971. The Structure of Organizations. Basic Books: New York.
23. Bresnahan TF. 1985. Post-entry competition in the plain paper copier market. American Economic Review 75 (2): 15-19.
24. Buckley P. 1997. International technology transfer by small- and medium-sized business enterprises. Small Business Economics 9 (1): 67-79.
25. Burgelman RA. 1983. A process model of internal corporate venturing in the diversified major firm. Administrative Science Quarterly 28: 223-244.
26. Burns T, Stalker GM. 1961. The Management of Innovation. Free Press: New York.
27. Chandy RK, Tellis GJ. 1998. Organizing for radical product innovation: the overlooked role of willingness to cannibalize. Journal of Marketing Research 35 (4): 474-487.
28. Clark KB. 1987. Investing in new technological and competitive advantage. In The Competitive Challenge: Strategies for Industrial Innovation and Renewal, Teece D (ed). Ballinger: Cambridge, MA; 59-82.
29. Clark KB, Fujimoto T. 1991. Product Development Performance: Strategy, Organization, and Management in the World Auto Industry. Harvard Business School Press: Boston, MA.
30. Coase RH. 1937. The nature of the firm. Economica 4: 386-405.
31. Cohen WM. 1995. Empirical studies of innovative activity. In Handbook of the Economics of Innovation and Technological Change, Stoneman P (ed). Blackwell: Cambridge, MA; 182-264.
32. Cohen WM, Levin RC. 1989. Empirical studies of innovative and market structure. In Handbook of Industrial Organization (Vol. 2), Schmalensee R, Willig RD (eds). Elsevier Science: Amsterdam, The Netherlands; 1059-1107.
33. Cohen WM, Levinthal DAL. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly 35: 128-152.
34. Cooper AC, Schendel D. 1976. Strategic responses to technological threats. Business Horizons 19 (1): 61-69.
35. Crozier M. 1964. The Bureaucratic Phenomenon. University of Chicago Press: Chicago, IL.
36. Damanpour F. 1996. Organizational complexity and innovation: developing and testing multiple contingency models. Management Science 42 (5): 693-716.
37. Davari B. Dennard RH, Shahidi GG. 1995. CMOS scaling for high performance and low power: the next ten years. Proceedings of the IEEE 83 (4): 595-606.
38. Delios A, Henisz WJ. 2000. Japanese firms' investment strategies in emerging economies. Academy of Management Journal 43: 305-323.
39. Dewar R, Dutton J. 1986. The adoption of radical and incremental innovations: an empirical analysis. Management Science 32 (11): 1422-1433.
40. Dosi G. 1988. Sources, procedures and microeconomic effects of innovation. Journal of Economic Literature 26: 1120-1171.
41. Dyer JH. 1996. Specialized supplier networks as a source of competitive advantage: evidence from the auto industry. Strategic Management Journal 17 (4): 271-291.
42. Eisenhardt KM, Schoonhoven CB. 1996. Resource-based view of strategic alliance formation: strategic and social effects in entrepreneurial firms. Organization Science 7: 136-150.
43. Ettlie JE. 1988. Taking Charge of Manufacturing. Jossey-Bass: San Francisco, CA.
44. Ettlie JE, Reze E. 1992. Organizational integration and process innovation. Academy of Management Journal 35 (4): 795-827.
45. Ettlie JE, Rubenstein A. 1987. Firm size and product innovation. Journal of Product Innovation Management 4: 89-108.
46. Foster R. 1986. The timing of technological transitions. In Technology in the Modern Corporation: A Strategic Perspective (2nd edn). M. Horwitch (ed). Pergamon Press: New York; 35-50.
47. Freeman C, Soete L. 1997. The Economics of Industrial Innovation. Pinter: London, UK.
48. Galbraith JK. 1952. American Capitalism: The Concept of Countervailing Power. Houghton Mifflin: Boston, MA.
49. Geroski P, Machin S, Van Reenen J. 1993. The profitability of innovating firms. Rand Journal of Economics 24: 198-211.
50. Gilbert RJ, Newbery DMG. 1982. Preemptive patenting and the persistence of monopoly. American Economic Review 72: 514-526.
51. Greene WH. 1993. Econometric Analysis. Macmillan: New York.
52. Grossman SJ, Hart OD. 1986. The costs and benefits of ownership: a theory of vertical and lateral integration. Journal of Political Economy 94: 691-720.
53. Gruber H. 1994. The yield factor and the learning curve in semiconductor production. Applied Economics 26 (8): 837-843.
54. Hagedoorn J, Cloodt M. 2003. Measuring innovative performance: is there an advantage in using multiple indicators? Research Policy 32: 1365-1379.
55. Hamel G, Doz YL, Prahalad CK. 1989. Collaborate with your competitors and win. Harvard Business Review 67: 133-139.
56. Hart O, Moore J. 1990. Property rights and the nature of the firm. Journal of Political Economy 98 (6): 1119-1159.
57. Haveman HA. 1992. Between a rock and a hard place: organizational change and performance under conditions of fundamental environmental transformation. Administrative Science Quarterly 37: 48-75.
58. Haveman HA. 1993. Organizational size and change: diversification in the savings and loan industry after deregulation. Administrative Science Quarterly 38: 20-50.
59. Hayek FA. 1945. The use of knowledge in society. American Economic Review 35 (4): 519-531.
60. Heckman JJ. 1979. Sample selection bias as a specification error. Econometrica 47 (1): 153-161.
61. Henderson RM, Clark KB. 1990. Architectural innovation: the reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly 35: 9-30.
62. Henderson R, Cockburn I. 1994. Measuring competence? Exploring firm effects in pharmaceutical research. Strategic Management Journal, Winter Special Issue 15: 63-84.
63. Hergert N, Morris D. 1988. Trends in international collaborative agreements. In Cooperative Strategies in International Business: Joint Ventures and Technology Partnerships between Firms, Contractor FJ, Lorange P (eds). Lexington Books: New York; 99-110.
64. Hitt MA, Hoskisson RE, Ireland RD. 1990. Mergers and acquisitions and managerial commitment to innovation in M-form firms. Strategic Management Journal, Summer Special Issue 11: 29-47.
65. Hitt MA, Hoskisson RE, Johnson DD, Moesel RA. 1996. The market for corporate control and firm innovation. Academy of Management Journal 39: 1084-1119.
66. Holmstrom B. 1979. Moral hazard and observability. Bell Journal of Economics 10: 74-91.
67. Hsiao C. 1986. Analysis of Panel Data. Cambridge University Press: New York.
68. Ingram P, Baum JAC. 1997. Opportunity and constraint: organizations' learning from the operating and competitive experience of industries. Strategic Management Journal, Summer Special Issue 18: 75-98.
69. Integrated Circuit Engineering (ICE). 1991-2000. Profiles: A Worldwide Survey of IC Manufacturers and Suppliers. Integrated Circuit Engineering: Scottsdale, AZ.
70. Kale P, Dyer J, Singh H. 2002. Alliance capability, stock market response, and long-term alliance success: the role of the alliance function. Strategic Management Journal 23 (8): 747-767.
71. Kelly D, Amburgey TL. 1991. Organizational inertia and momentum: a dynamic model of strategic change. Academy of Management Journal 34: 591-612.
72. Kennedy P. 1998. A Guide to Econometrics (3rd edn). MIT Press: Cambridge, MA.
73. Khanna T, Gulati R, Nohria N. 1998. The dynamics of learning alliances: competition, cooperation, and relative scope. Strategic Management Journal 19 (3): 193-210.
74. King A, Tucci C. 2002. Incumbent entry into new markets: the role of experience and managerial choice in the creation of dynamic capabilities. Management Science 48: 171-186.
75. Klein B, Crawford RG, Alchian AA. 1978. Vertical integration, appropriable rents, and the competitive contracting process. The Journal of Law & Economics 21 (2): 297-326.
76. Leiblein MJ, Reuer JJ, Dalsace F. 2002. Do make or buy decisions matter? The influence of organizational governance of technological performance. Strategic Management Journal 23 (9): 817-833.
77. Levinthal DA, March JG. 1993. The myopia of learning. Strategic Management Journal, Winter Special Issue 14: 95-112.
78. Levitt B, March JG. 1988. Organizational learning. Annual Review of Sociology 14: 319-400.
79. Macher JT. 2006. Technological development and the boundaries of the firm: a knowledge-based examination in semiconductor manufacturing. Management Science 52 (6): 826-843.
80. Madsen TL, Walker G. 2007. Incumbent and entrant rivalry in a deregulated industry. Organization Science 18: 667-687.
81. Martin X, Salomon R. 2003. Tacitness, learning, and international expansion: a study of foreign direct investment in a knowledge-intensive industry. Organization Science 14 (3): 297-311.
82. Merton RK. 1957. Social Theory and Social Structure. Free Press: New York.
83. Meyer JW, Rowan B. 1977. Institutionalized organizations: formal structure as myth and ceremony. American Journal of Sociology 83: 340-363.
84. Milgrom P, Roberts J. 1990. The economics of modern manufacturing: technology, strategy, and organization. American Economic Review 80 (3): 511-528.
85. Mitchell W, Singh K. 1993. Death of the lethargic: effects of expansion into new technical subfields on performance in a firm's base business. Organization Science 4 (2): 152-180.
86. Nanda A, Bartlett C. 1994. Intel Corporation: leveraging capabilities for strategic renewal. Harvard Business School, case study number 9-394-141. Harvard Business School: Boston, MA.
87. National Academy of Engineering. 1995. Risk & Innovation: The Role and Importance of Small High-Tech Companies in the U. S. Economy. National Academy Press: Washington, D. C.
88. Nickerson JA, Zenger TR. 2004. A knowledge-based theory of the firm: the problem-solving perspective. Organization Science 15 (6): 617-632.
89. Pavitt K. 1984. Sectoral patterns of technical change: towards a taxonomy and a theory. Research Policy 13: 343-373.
90. Pavitt K. 1990. What we know about the strategic management of technology. California Management Review 32: 17-26.
91. Pisano GP, Bohmer RMJ, Edmondson AC. 2001. Organizational differences in rates of learning: evidence from the adoption of minimally invasive cardiac surgery. Management Science 47: 752-768.
92. Polanyi M. 1962. Personal Knowledge: Towards a Post-Critical Philosophy. Harper & Row: New York.
93. Powell WW, Koput KW, Smith-Doerr L. 1996. Interorganizational collaboration and the locus of innovation: networks of learning in biotechnology. Administrative Science Quarterly 41 (1): 116-145.
94. Putterman L. 1995. Markets, hierarchies, and information: on the paradox in the economics of organization. Journal of Economic Behavior & Organization 26: 373-393.
95. Reinganum JF. 1983. A note on the strategic adoption of new technology. Journal of Optimization Theory and Applications 39: 133-141.
96. Reinganum JF. 1989. The timing of innovation: research, development, and diffusion. In Handbook of Industrial Organization (Vol. 1), Schmalensee R, Willis R (eds). Elsevier: Amsterdam, The Netherlands; 849-908.
97. Rivkin JW. 2001. Reproducing knowledge: replication without imitation at moderate complexity. Organization Science 12: 274-293.
98. Rosenberg N. 1972. Technology and American Economic Growth. Harper Torch Books: New York.
99. Rosenberg N. 1982. Inside the Black Box: Technology and Economics. Cambridge University Press: Cambridge, UK.
100. Rosenkopf L, Almeida P. 2003. Overcoming local search through alliances and mobility. Management Science 49 (6): 751-766.
101. Rothaermel FT, Deeds DL. 2004. Exploration and exploitation alliances in biotechnology: a system of new product development. Strategic Management Journal 25 (3): 201-221.
102. Rumelt RP. 1984. Towards a strategic theory of the firm. In Competitive Strategic Management, Lamb RB (ed). Prentice Hall: Englewood Cliffs NJ; 556-570.
103. Schumpeter JA. 1934. The Theory of Economic Development. Harvard University Press: Cambridge, MA.
104. Schumpeter JA. 1942. Capitalism, Socialism and Democracy. Harper Brothers: New York.
105. Selznik P. 1949. TVA and the Grass Roots: A Study in the Sociology of Formal Organization. University of California Press: Berkeley, CA.
106. Simonin BL, Helleloid D. 1993. Do organizations learn? An empirical test of organizational learning in international strategic alliances. In Academy of Management Best Paper Proceedings, 1993, Moore D (ed). Omnibus: Madison, WI; 222-227.
107. Sorensen JB, Stuart TE. 2000. Aging, obsolescence and organizational innovation. Administrative Science Quarterly 45: 81-112.
108. Stalk G. 1988. Time: the next source of competitive advantage. Harvard Business Review 66 (4): 41-51.
109. Stigler GJ. 1962. Administered Prices and Oligopolistic Inflation. University of Chicago Press: Chicago, IL.
110. Teece DJ. 1982. Towards an economic theory of the multiproduct firm. Journal of Economic Behavior & Organization 3: 39-64.
111. Teece DJ. 1986. Profiting from technological innovation: implications for integration, collaboration, licensing, and public policy. Research Policy 15: 285-305.
112. Teece DJ. 1992. Competition, cooperation, and innovation: organizational arrangements for regimes of rapid technological progress. Journal of Economic Behavior & Organization 18: 1-25.
113. Thompson VA. 1965. Bureaucracy and innovation. Administrative Science Quarterly 10 (1): 1-20.
114. Tripsas M. 1997. Unraveling the process of creative destruction: complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal, Summer Special Issue 18: 119-142.
115. Tsai W. 2001. Knowledge transfer in intraorganizational networks: effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal 44: 996-1004.
116. Tushman ML, Anderson P. 1986. Technological discontinuities and organizational environments. Administrative Science Quarterly 31: 439-465.
117. Tushman ML, O'Reilly C. 1997. Winning through Innovation: A Practical Guide to Leading Organizational Change and Renewal. Harvard Business School Press: Boston, MA.
118. Utterback JM. 1994. Mastering the Dynamics of Innovation: How Companies Can Seize Opportunities in the Face of Technological Change. Harvard Business School Press: Boston, MA.
119. Utterback JM, Abernathy WJ. 1975. A dynamic model of product and process innovation. Omega 3 (6): 639-656.
120. Williamson OE. 1975. Markets and Hierarchies: Analysis and Antitrust Implications. Free Press: New York.
121. Williamson OE. 1985. The Economic Institutions of Capitalism. Free Press: New York.
122. Williamson OE. 1991. Comparative economic organization: the analysis of discrete structural alternatives. Administrative Science Quarterly 36: 269-296.
123. Winter SG. 2003. Understanding dynamic capabilities. Strategic Management Journal, October Special Issue 24: 991-995.
124. Wooldridge JM. 2002. Econometic Analysis of Cross Section and Panel Data. MIT Press: Cambridge, MA.
125. Yin X, Zajac EJ. 2004. The strategy/governance structure fit relationship: theory and evidence in franchising arrangements. Strategic Management Journal 25 (4): 365-383.
126. Zenger TR. 1994. Explaining organizational diseconomies of scale in R&D: agency problems and the allocation of engineering talent, ideas, and effort by firm size. Management Science 40: 708-729.
127. Zenger TR, Hesterly WS. 1997. The disaggregation of corporations: selective intervention, high-powered incentives, and molecular units. Organization Science 8 (3): 209-234.
128. Zenger TR, Lazzarini SG. 2004. Compensating for innovation: do small firms offer high-powered incentives that lure talent and motivate effort? Managerial & Decision Economics 25 (6/7): 329-345.