The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety

Patel, Pari; Pavitt, Keith

doi:10.1016/s0048-7333(97)00005-x

Cited by 691 publications

(346 citation statements)

References 21 publications

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“…Given the complexity involved and the effects of path dependence, there are strong constraints on managerial choice in shaping the technology strategies of large firms (Patel & Pavitt, 1997). As a result, large firms' "competencies in technology are not enough" and they "must also be competent to coordinate technological change and improvement in their supply chains, and to evaluate and exploit emerging technological opportunities" (Patel & Pavitt, 1997, p. 154).…”

Section: Path Dependence In Supply Chainsmentioning

confidence: 99%

Effects of Path Dependence on Capabilities in Captive Global Value Chains

Vasconcellos

Garrido

Vieira

et al. 2015

BAR, Braz. Adm. Rev.

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Global Value Chains (GVC) and their participants are dynamic. Events can provoke distinct strategic responses from different firms, even when they are part of a GVC. We investigated how both organizational and supplychain path dependence can influence the capabilities that a firm needs to achieve a higher value-added position in a GVC. We have integrated three branches of theory, covering Global Value Chains, Organizational Capabilities, and Path dependence. We conducted a case study of a large Brazilian shoe firm, analyzing its relationships with buyers in GVCs. We found that path-dependent elements had locked-in the firm, preventing ascension to higher added value positions and keeping the organization in captive global value chain, even when it moved into new markets. Additionally, we propose a theoretical model that should prove fruitful in future research in other sectors and countries.

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Section: Path Dependence In Supply Chainsmentioning

confidence: 99%

Effects of Path Dependence on Capabilities in Captive Global Value Chains

Vasconcellos

Garrido

Vieira

et al. 2015

BAR, Braz. Adm. Rev.

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“…In the studies of technological persistence, competence accumulation is seen as a key feature of technological change, with a constraining impact on future search and learning processes (Dosi, 1982;Malerba et al, 1997;Cantwell and Vertova, 2004). Past achievements, patterns of problem-solving activities and accumulated competencies constrain current activities as well as directions in which new opportunities can be searched for (Dosi, 1982;Malerba et al, 1997;Patel and Pavitt, 1997) and new opportunities are therefore likely to be found close to areas of existing expertise (Teece et al, 1997). The result is a stable pattern of technological specialization within a company or an industry (Patel and Pavitt, 1997;Essletzbichler and Winther, 1999;Fai and von Tunzelmann, 2001;Fai, 2003).…”

Section: Cumulative Vs Simple Progressionmentioning

confidence: 99%

“…Paths are described as persistent (or repeated) choices about which domains of competence to develop in a firm and what problems to focus on, caused by "local" learning and search processes (Lei et al, 1996;Teece et al, 1997;Karim and Mitchell, 2000;Rosenkopf and Nerkar, 2001;Danneels, 2002;Rycroft and Kash, 2002;Antonelli, 2009). This can be empirically observed in terms of stable portfolios of technologies within firms (Patel and Pavitt, 1997;Fai, 2003) or close relationships between technology and product diversification patterns (Laursen, 1996). 1…”

Section: Introductionmentioning

confidence: 99%

Is one path enough? Multiple paths and path interaction as an extension of path dependency theory

Bergek

Onufrey

2013

Industrial and Corporate Change

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In order to explain the development of multi-technology companies and industries where several alternative technologies co-exist and interact over long time periods, this paper suggests an extension of path dependency theory by providing a conceptualization of the path notion which incorporates the theoretical possibility of multiple paths and path interaction. The conceptualization is applied to a patent study of three leading companies in the lighting industry: General Electric, Osram/Siemens and Philips. The study shows technology development patterns that are characterized by strong persistence, both within each path and across the whole technology field. These results demonstrate that multiple technological paths can co-exist in companies and industries, characterized by simultaneous long-term presence of several technologies. In such cases, path interaction takes place both between co-existing paths and when new, radically different paths are created. Although further studies are needed to identify the underlying self-reinforcing mechanisms, there is a clear indication that technological path dependency is not restricted to unitary progression patterns, as implied by previous conceptualizations.

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“…Research by Granstrand et al (1997), Patel and Pavitt (1997) and Brusoni et al (2001) suggests that a firm's technological portfolio typically is larger than its product portfolio. The reason for this is that firms need to search for interesting technologies emerging outside their core technological domain.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

The technological origins of radical inventions

2010

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a b s t r a c tThis paper aims to trace down the origins of radical inventions. In spite of many theoretical discussions on the effect of radical inventions, the specific nature of radical inventions has received much less attention in the theoretical and empirical literature. We try to fill that void by an empirical investigation into the specific origins of radical inventions. We explore this issue by a close examination of 157 individual patents, which are selected from a pool of more than 300,000 patents. In contrast to the conventional wisdom that radical inventions are based less on existing knowledge, we find that they are to a higher degree based on existing knowledge than non-radical inventions. A further result that follows from our analysis is that radical inventions are induced by the recombination over more knowledge domains. The combination of knowledge from domains that might usually not be connected seems to deliver more radical inventions.

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The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety

Cited by 691 publications

References 21 publications

Effects of Path Dependence on Capabilities in Captive Global Value Chains

Effects of Path Dependence on Capabilities in Captive Global Value Chains

Is one path enough? Multiple paths and path interaction as an extension of path dependency theory

The technological origins of radical inventions

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