Abstract
This article gives an overview of the literature on the issues of capturing value from advantage. It discusses the foundational work of Stephen Hymer and his recognition of the importance of foreign direct investment (FDI). The article then explores the contributions of David Teece, who considers the strategy to be adopted by an innovator seeking to maximize the profit from innovations and highlights the importance of complementarities. The work of later scholars, such as George Richardson and Edith Penrose, is then considered. Finally, there is some discussion of real-world examples in which the principles of the theory can be seen to provide considerable illumination. The article concludes with some points about the current gaps in the literature and possibilities for future research.
This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.
This is a preview of subscription content, log in via an institution to check access.
References
Bain, J.S. 1956. Barriers to new competition: Their character and consequences for manufacturing industries. Boston: Harvard University Press.
Barney, J.B. 1991. Firm resources and sustained competitive advantage. Journal of Management 17: 99–120.
Bartlett, A.C. 2005. EMI and CT scanner [A] and [B]. In Cases to accompany contemporary strategy analysis, ed. M.R. Grant. Oxford: Blackwell.
Buckley, P.J., and M.C. Casson (eds.). 1976. The future of multinational enterprise. London: Macmillan.
Coase, R.H. 1937. The nature of the firm. Economica 4: 386–405.
Dunning, J.H., and C.N. Pitelis. 2008. Stephen Hymer’s contribution to international business scholarship: An assessment and extension. Journal of International Business Studies 39: 167–176.
Gans, J.S., and S. Stern. 2003. The product market for ‘ideas’: Commercialization strategies for technology entrepreneurs. Research Policy 32: 333–350.
Gans, J.S., D.H. Hsu, and S. Stern. 2001. When does start-up innovation spur the gale of creative destruction? RAND Journal of Economics 33: 571–586.
Hymer, S.H. 1976. The international operations of national firms: Study of direct foreign investment. Cambridge, MA: The MIT Press.
Hymer, S.H. 1990. The large multinational corporation. In Multinational corporations, ed. M. Casson. Hants: Edward Elgar.
Mahoney, T.J., A.M. McGahan, and C.N. Pitelis. 2009. The interdependence of private and public interests. Organization Science 20: 1034–1052.
Penrose, E.T. 1995. The theory of the growth of the firm, 3rd ed. Oxford: Oxford University Press.
Pitelis, C. 2009. The co-evolution of organizational value capture, value creation and sustainable advantage. Organization Science 30: 1115–1139.
Richardson, G.B. 1972. The organisation of industry. Economic Journal 82: 883–896.
Teece, D.J. 1982. Towards an economic theory of the multiproduct firm. Journal of Economic Behavior & Organization 3: 39–63.
Teece, D.J. 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy 15: 285–305.
Williamson, O.E. 1975. Markets and hierarchies: Analysis and antitrust implications: A study in the economics of internal organization. New York: Free Press.
Williamson, O.E. 2005. The economics of governance. American Economic Review 95: 1–18.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Copyright information
© 2016 The Author(s)
About this entry
Cite this entry
Pitelis, C.N. (2016). Capturing Value from Advantages. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_745-1
Download citation
DOI: https://doi.org/10.1057/978-1-349-94848-2_745-1
Received:
Accepted:
Published:
Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-94848-2
eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences