Firm-specific competitive advantage in high technology firms

Abstract

The resource theory of the firm suggests that firm-specific, intrastrategic group factors have large, significant impacts on firm profitability, greater in some contexts than the combined impacts of industry and strategic group structures. Integrating research from economics, resource theory, and organization theory and behavior, this article develops propositions concerning firm-specific competitive advantage in high technology firms, focusing on the roles of organization structure and culture. The article argues that firm-specific factors have greater impacts among high technology firms than among low technology firms, and that increasing technological sophistication gives rise to new firm-specific managerial imperatives—whereas low technology firms must create and manage organizational alignments, high technology firms must develop distinctive, inimitable cultures. Implications for practitioners and researchers are discussed.