The objectives of the series are to give us an opportunity to stay engaged with each other’s research, and to provide constructive feedback to presenters. Seminars will begin with a 25-minute presentation, followed by a 10-minute discussion, and end with a 25-minute Q&A session.
Our first speaker will be Xiaoshu Bei who will be presenting research co-authored with Frank Rothaermel (details below). Mahka Moeen will provide a discussion of the paper.
Post-Market Entry Capability Development: The Relationship Between Complementary Asset Discontinuity and External Technology Sourcing
Xiaoshu Bei & Frank T. Rothaermel
In this paper, we ask to what extent do firms reconfigure their complementary assets when they are entering a new industry and commercializing external innovation. Based on the dynamic capabilities framework, it is beneficial for firms to redeploy and reconfigure their complementary assets when the external environment is changing. Thus we expect firms that can change their complementary assets to be more flexible in their routines and will achieve better innovation performance. We identify changes in specific types of complementary assets based on the Division of Innovative Labor survey and look at their correlation with market entry and external sourcing. The results suggest that new entrants that rely on external technology are likely to implement changes in complementary assets. They are likely to have better innovation performance when deploying their complementary assets, especially for de novo entrants. This is especially true when external innovation is from a startup.
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