Resource title

Exploring dynamic capability: a longer-term study of product development following radical technological change

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Using data drawn from the telephone switching industry, this paper develops and tests hypotheses concerning dynamic capabilities and their impact following discontinuous competence-destroying technological change. Forty-three product development projects over a sixteen-year period are analysed after a shift from electromechanical to semiconductor component systems. Results suggest that while entrant firms initially possess superior capabilities, longer term incumbent firms exhibit a greater dynamic capability. Incumbent firms differ in their degree of dynamic capability with smaller and younger firms displaying most. The results suggest that established firm management of technological transitions may be more effective then has been contemplated heretofore.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-20.pdf

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Copyright INSEAD. All rights reserved