Technology and Competitive Advantage—The Role of General Management

Abstract

OVERVIEW:A firm's ability to build competitive advantage on the basis of technology depends on the practices of general management. In firms that are especially good at making strategic use of technology, general management exhibits a distinctive set of practices that creates the context for, and gives direction to, technology development: they consistently pursue a strategic focus, which they build around their firm's unique capabilities; they strive, within their areas of focus, to be total leaders—to offer the best performing, lowest cost, highest quality products; they strive to be pioneers in their areas of focus, rather than fast-followers, and to balance continuous, incremental improvements in their product lines with more radical, discontinuous innovations; and they exhibit an underlying style of decision making that is driven more by the imperative to stay ahead in their areas of focus than by projections of financial returns.

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