Higher-order industrial Capabilities and competitive advantage

Nicolai J. Foss

145 citations0/0 files storedJournal of Industry Studies

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Innovation and Knowledge Management Regional Development and Innovation Business Strategy and Innovation

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.

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References

1990Absorptive Capacity: A New Perspective on Learning and Innovation 1990Institutions, Institutional Change and Economic Performance 1984A resource‐based view of the firm 1991Institutions, Institutional Change and Economic Performance 1983An Evolutionary Theory of Economic Change.1991The Competitive Advantage of Nations 1997Capitalism, Socialism and Democracy 1987The Economic Institutions of Capitalism

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2011Regional Social Capital: Why it Matters 2002Hard and Soft Networks for Urban Competitiveness 1998Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization 2002A resource-based view of Schumpeterian economic dynamics 2007Social Capital and Localised Learning: Proximity and Place in Technological and Institutional Dynamics 2010Knowledge creation and absorptive capacity: The effect of intra-district shared competences

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