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Resource recombinations in the firm: knowledge structures and the potential for Schumpeterian innovation

Author: Galunic, D. Charles ; Rodan, SimonINSEAD Area: Organisational Behaviour ; Strategy Series: Working Paper ; 97/89/OB/SM Publisher: Fontainebleau : INSEAD, 1997.Language: EnglishDescription: 40 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Schumpeterian innovation rests on the ability to imagine and realize novel combinations of firm resources. Building on the resource-based view of the firm, we explore the notion of creative "resource recombinations" within the firm (clusters of firm resources) either combine to synthesize novel competencies (reconfiguration-based recombination). We examine of the antecedents necessary for such innovation to occur. One important antecedent to such recombinations is the nature of knowledge in the firm. How knowledge is held in the firm is likely to influence both the creative detection of potential new recombinations and the exchange costs associated with implementation. We explore the implications of the general characteristics of knowledge itself and its social organization within competencies. Our paper examines how these characteristics and structures impact the likelyhood of firms realizing novel uses of existing resources, developing a model of resource recombination likelihood
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Schumpeterian innovation rests on the ability to imagine and realize novel combinations of firm resources. Building on the resource-based view of the firm, we explore the notion of creative "resource recombinations" within the firm (clusters of firm resources) either combine to synthesize novel competencies (reconfiguration-based recombination). We examine of the antecedents necessary for such innovation to occur. One important antecedent to such recombinations is the nature of knowledge in the firm. How knowledge is held in the firm is likely to influence both the creative detection of potential new recombinations and the exchange costs associated with implementation. We explore the implications of the general characteristics of knowledge itself and its social organization within competencies. Our paper examines how these characteristics and structures impact the likelyhood of firms realizing novel uses of existing resources, developing a model of resource recombination likelihood

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