Book chapter
A BAG OF BEADS OR A NECKLACE? COMBINATIVE CAPABILITY AND VALUE IN TECHNOLOGICAL SCOPE EXPANSIONS
Disruptive Innovation in Business and Finance in the Digital World, pp 45-64
01 Jan 2019
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
The authors study the relation between a firm's combinative capability and value creation in the context of technological scope expansion. On a sample of Compustat firms that applied for US patents between 1980 and 2001, the authors find that firm value, measured using Tobin's q, decreases with increases in technological scope (measured as the number of unique patent classes). However, when firms expand by combining different classes into a single patent, the authors find that this negative effect is significantly diminished. These findings indicate that increasing technological scope likely creates value only when the firm is able to integrate the components into a single technology; simply maintaining different technological components within the firm boundary without integration appears to subject the firm to a discount.
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Details
- Title
- A BAG OF BEADS OR A NECKLACE? COMBINATIVE CAPABILITY AND VALUE IN TECHNOLOGICAL SCOPE EXPANSIONS
- Creators
- Jeongsik Jay Lee - Drexel UniversityNatarajan Balasubramanian - Whitman College
- Contributors
- J J Choi (Editor)B Ozkan (Editor)
- Publication Details
- Disruptive Innovation in Business and Finance in the Digital World, pp 45-64
- Series
- International Finance Review
- Publisher
- Emerald Group Publishing; BINGLEY
- Number of pages
- 20
- Resource Type
- Book chapter
- Language
- English
- Academic Unit
- Management
- Web of Science ID
- WOS:000537615900004
- Scopus ID
- 2-s2.0-85073219128
- Other Identifier
- 991019168306604721
UN Sustainable Development Goals (SDGs)
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InCites Highlights
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business
- Business, Finance