Work

Second‐order competences and Schumpeterian rents

Year: 2012

Type: article

Abstract: Second‐order competences, a type of dynamic capability, enable firms to engage in a process of Schumpeterian competition. This study examines the effects of marketing and R&D second‐order competences (the abilities to create new market‐related and technological resources) on firm profitability. Based on multiple informant surveys and archival data from U.S. public manufacturing firms, competitive turbulence is found to present contrasting contingencies for the effects of these competences on return on assets (ROA). The effect of marketing competence on ROA was positive under stable and moderate competitive conditions, whereas the effect of R&D competence on ROA was positive under volatile competitive conditions. Copyright © 2012 Strategic Management Society.

Source: Strategic Entrepreneurship Journal

DOI: 10.1002/sej.1127

Author: Erwin Danneels

Institution: University of Central Florida

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: National Science Foundation

Award: A Panel Study of R&D and Marketing Second-Order Competences