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Where do resources come from? The role of idiosyncratic situations

Book or journal references : Strategic Management Journal, vol. 25, pp. 887-907 (2004).

Author(s) : Ahuja , G. and Katila , R.

Abstract :

In this paper, we examine the emergence of resources. Our analysis of technological capability acquisition by global U.S.-based chemical firms shows that the emergence of resources is inherently evolutionary. We find that path-creating search that generates resource heterogeneity is a response to idiosyncratic situations faced by firms in their local searches. Two such idiosyncratic situations- technology exhaustion and expansion beyond national markets-trigger firms in our sample to create unique innovation search paths. We also find that along a given path firms experiment in order to find the correct investment-in fact, some organizations seem to take a step backward for two steps forward-further demonstrating the evolutionary nature of the resource creation process. Copyright (C) 2004 John Wiley Sons, Ltd.


Keywords :

innovation; resources; science; geographic boundaries RESEARCH-AND-DEVELOPMENT; COMPETITIVE ADVANTAGE; DYNAMIC CAPABILITIES; ORGANIZATIONAL RENEWAL; PRODUCT INTRODUCTION; INDUSTRIAL-RESEARCH; ESTABLISHED FIRMS; BASIC RESEARCH; LOCAL SEARCH; KNOWLEDGE

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