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Laggard strategy: why a firm is sometimes better off lagging the technology frontier

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Title: Laggard strategy: why a firm is sometimes better off lagging the technology frontier
Author(s): Wang, I-Chen
Director of Research: Hoetker, Glenn P.
Doctoral Committee Chair(s): Mahoney, Joseph T.
Doctoral Committee Member(s): Hoetker, Glenn P.; Bercovitz, Janet; Echambadi, Rajagopal
Department / Program: Business Administration
Discipline: Business Administration
Degree Granting Institution: University of Illinois at Urbana-Champaign
Degree: Ph.D.
Genre: Dissertation
Subject(s): technological laggards technological capabilities competitive dynamics
Abstract: This dissertation focuses on using organizational capabilities and the anticipated economic payoff from innovation to explain and predict the dynamics of a technological laggard's behavior. The firm capabilities research that focuses on organizational capabilities suggests that a technological laggard has to innovate, while the competitive dynamics research focuses on the anticipated economic payoff that a technological laggard can gain from innovating. Together, the central hypothesis in this dissertation is that a firm is more likely to remain a technological laggard if doing so enables the firm to better utilize its current organizational capabilities, and if it anticipates a better economic payoff by remaining a technological laggard than by becoming a technological leader in innovation. A technological laggard chooses to move to the technology frontier when it has the capabilities to realize the anticipated economic payoff. Using panel data from the flat panel display industry for the 1991-2008 period, I empirically corroborate the hypothesis. This dissertation provides a more complete picture than the extant literature of a technological laggard's behavior by combining the firm capabilities research with competitive dynamics research.
Issue Date: 2012-06-27
URI: http://hdl.handle.net/2142/31958
Rights Information: technological laggards, technological capabilities, competitive dynamics
Date Available in IDEALS: 2012-06-27
Date Deposited: 2012-05
 

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