Publication Type
Journal Article
Version
acceptedVersion
Publication Date
2-2010
Abstract
This paper extends the resource-based theory of the firm to examine the contingencies that either intensify or reduce the relationship between firm-specific innovation and value appropriation. Based on a large-scale analysis of a sample of US manufacturing firms, we found that greater innovation rents appropriation is associated with an increase in firm specificity of its innovative knowledge. But the positive relationship between firm-specific innovations and firm value appropriation tends to decrease when the product or technology market is highly dynamic. Further, under high environmental dynamism, firms should increase the diversity in their knowledge composition in order to mitigate the risk of value erosion associated with firm-specific innovations.
Keywords
Firm specificity, Technological innovation, Value appropriation, Environmental dynamism, Technological diversity
Discipline
Strategic Management Policy | Technology and Innovation
Research Areas
Strategy and Organisation
Publication
Research Policy
Volume
39
Issue
1
First Page
141
Last Page
154
ISSN
0048-7333
Identifier
10.1016/j.respol.2009.09.015
Publisher
Elsevier
Citation
WANG, Heli and CHEN, Wei-Ru.
Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity. (2010). Research Policy. 39, (1), 141-154.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3441
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.respol.2009.09.015