Firm-specific Innovations and Rent Appropriation: Tests of Contingencies

Publication Type

Conference Proceeding Article

Publication Date

2006

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

Academy of Management Proceedings

First Page

1

Last Page

6

ISSN

0065-0668

Identifier

10.5465/AMBPP.2006.22896780

Publisher

Academy of Management Annual Meetings, BPS Division Proceedings

City or Country

Atlanta, GA, USA

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