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WP 01-4

Johann Peter Murmann. Introductory Chapter to “Knowledge and Competitive Advantage: The Coevolution of Firms, Technology,

Keywords: Competitive Advantage, Coevolution, Industry Analysis.

Abstract:

This study argues that the creation of productive capabilities underlying successful firms and the institutional context surrounding firms are related through interactive, coevolutionary processes. To induce a dynamic framework for analyzing the sources of competitive advantage, I examine the processes through which German firms became dramatically more successful than their British and American counterparts in the synthetic dye industry. I specifically examine how the fortunes of synthetic dye firms have been influenced by differences in the educational systems and patent laws. I find that firms are in part successful because they develop collective strategies to mold the institutional context in their favor.

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