Innovation and Imitation as Sources of Sustainable Competitive Advantage

Abstract

The present study fills some of the void in the literature on the concept and phenomenon of innovation and imitation. Basing our arguments on features that the literature indicates are characteristics of innovation, we delimit the concepts of innovation and imitation. Using these features and considering a company’s degree of entrepreneurial and market orientation, we devise a typology of companies ranging from radical innovators to strict imitators. We also argue that some key factors and the choice of appropriate strategy determine whether innovative and imitative companies can obtain and maintain their sustainable competitive advantages.