Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions
We present a model that explains how established firms create breakthrough inventions. We identify three organizational pathologies that inhibit breakthrough inventions: the
familiarity trap
– favoring the familiar; the
maturity trap
– favoring the mature; and the
propinquity trap
– favoring search for solutions near to existing solutions. We argue that by experimenting with
novel
(i.e., technologies in which the
firm
lacks prior experience),
emerging
(technologies that are recent or newly developed in the
industry
), and
pioneering
(technologies that do not build on any existing technologies) technologies firms can overcome these traps and create breakthrough inventions. Empirical evidence from the chemicals industry supports our model. Copyright © 2001 John Wiley & Sons, Ltd.
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Jay Barney
Wesley M. Cohen, Daniel A. Levinthal
C. Marlene Fiol, Marjorie A. Lyles
Rebecca M. Henderson, Kim B. Clark
James O. Huff, Anne S. Huff, Howard Thomas
A. B. Jaffe, M. Trajtenberg, R. Henderson
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- Published
- Jun 01, 2001
- Vol/Issue
- 22(6-7)
- Pages
- 521-543
- License
- View
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