and Knowledge Transfer, the special editor and two anonymous referees. The author would also like to acknowledge Himanshu Sheth’s help with statistical analysis. Financial support was graciously provided by the Reginald Jones Center and by the Hunstman Center at the Wharton School of the University of Pennsylvania. Errors and omissions are solely the author’s responsibility. 1 THE PROCESS OF KNOWLEDGE TRANSFER: A DIACHRONIC ANALYSIS OF STICKINESS Even though intra-firm transfers of knowledge are often laborious, time consuming and fraught with difficulty, extant conceptions treat them essentially as a costless and instantaneous exploit. When at all acknowledged, difficulty is an anomaly in the way transfers are modeled rather than a characteristic feature of the transfer itself. One first step towards incorporating difficulty in the analysis of knowledge transfer is to recognize that a transfer is not an act, as typically modeled, but a process. This paper offers a process model of knowledge transfer. The model identifies stages of transfer and factors that are expected to correlate with difficulty at different stages of the transfer. The general expectation is that factors that affect the opportunity

... of the leaders in the formalist branch of the New Institutional Economics, made the following observation. ”The incentive based transaction costs theory has been made to carry too much of the weight of explanation in the theory of organizations. We expect competing and complementary theories to emerge- theories that are founded on economizing on bounded rationality and that pay more attention to changing technology and to evolutionary considerations. ” This paper argues that such theories are now emerging. We survey and synthesize a developing perspective that we label the ”capabilities ” view. We argue that this view complements incentive-based theory (1) by considering the problems of imperfect knowledge in production as well as in governance and (2) by considering issues not only of incentive alignment but also of qualitative coordination among holders of specialized, distributed, and often tacit knowledge. Also, focusing on capabilities brings to the fore the idea that routines and similar rule-based forms of institutionalized knowledge may be important building blocks of economic organization. As a result, the capabilities approach arguably connects more fully with the New Institutional

What explains differences in firms' abilities to acquire competitive capabilities? In this paper we propose that embeddedness, in terms of firms' network of bridging ties and linkages to regional institutions, are important sources of variation in firms' acquisition of competitive capabilities. We argue that firm networks rich in bridging ties and firms' participation in regional institutions are critical vehicles for accessing new information, ideas, and opportunities leading to the acquisition of competitive capabilities in geographical clusters. Hypotheses are tested on a stratified random sample of 227 job shop manufacturers located in several regions of the US Midwest using data gathered from a mailed questionnaire. Results from structural equation modeling broadly support the embeddedness hypotheses and suggest a number of novel insights about the link between firms' networks and competitive capabilities.

Information systems researchers have a long tradition of drawing on theories from disciplines such as economics, computer science, psychology, and general management and using them in their own research. Because of this, the information systems field has become a rich tapestry of theore-1 Jane Webster was the accepting senior editor for this paper. MISQ REVIEW tical and conceptual foundations. As new theories are brought into the field, particularly theories that have become dominant in other areas, there may be a benefit in pausing to assess their use and contribution in an IS context. The purpose of this paper is to explore and critically evaluate use of the resource-based view of the firm (RBV) by IS researchers. The paper provides a brief review of resourcebased theory and then suggests extensions to make the RBV more useful for empirical IS research. First, a typology of key IS resources is presented, and these are then described using six traditional resource attributes. Second, we emphasize the particular importance of looking at both resource complementarity and moderating factors when studying IS resource effects on firm performance. Finally, we discuss three considerations that IS researchers need to address when using the RBV empirically. Eight sets of propositions are advanced to help guide future research. Keywords: Resource-based view, organizational impacts of IS, information systems resources, competitive advantage, IS strategic planning, information resource management

This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We show that targets and acquirers frequently redeploy resources following horizontal acquisitions, especially resources that frequently face market failure. We then show that the magnitude of redeployment of each type of resource increases with the asymmetry of the merging businesses ’ relative strength on the resource dimension. The research stresses evolutionary perspectives on business organizations that emphasize the importance of organizational differences in competitive markets. The central premise of our research is that the market for businesses is often more robust than the market for resources. © 1998 John Wiley & Sons, Ltd. Strat. Mgmt. J. Vol. 19, 631–661 (1998)

Based on a study of knowledge transfer within more than 15 industries, across three forms of governance, and between both domestic and international R&D partners, knowledge transfer success was found to be associated with several key variables, and to hinge upon (a) both R&D units’ understanding where the desired knowledge resides within the source, (b) the extent to which the parties share similar knowledge bases, and the extent of interactions between the source and the recipient to (c) transfer the knowledge and (d) participate in an articulation process through which the source’s knowledge is made accessible to the recipient.

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Entry order analysis often shows that early eritrrints to an itidustry or technical subfield of an industr?, outperform laggards. Some studiess, though, hme found thrit late entrrints prervil. This paper tests did-clock hypotheses of entry order effects on perfortilance, riieasitred both as market share and survival. One entry clock records the entry of all entrctrits to a new technical subfield within (in industry, while a second clock records the entry of ’ industry incumbents. Relative to the cippropriate clock. early entrmit.s are predicted to oritperforin Irtggards, but when entry is inemired on only one clock, the estiriiuterl influences riiny be inaccurate. Error will be particularly likely if a study contriitis {t surr,ivor bias. The study. which finds entry timing tmde-ofjy between rmirket share and survird, is gerierrilizirble to cmes in which N plriisible set of conditions is found. As an industry evolves, industry incumbents and newcomers must decide whether to manufacture products within new technical areas early, to wait until other firms have tested the new goods and the markets for them (Nelson and Winter, 1982; MacMillan, 1985), or never to introduce them. Early entry has risks-a firm may invest in idiosyncratic assets that turn out to be valueless because the new products do not work or no one wants to buy them. (Williamson, 1975, 1988; Aaker and Day, 1986), or late entrants may incorporate early research at lower cost (Mansfield, Schwartz, and Wagner, 1981). But if a firm waits for technical and market uncertainties to subside, it may be frozen out of a profitable market by participants that took the risk of early entry (Lieberman and Montgomery, 1988). So is it better to be early or late, or never to enter at all? The relative advantages and disadvantages of early entry will vary across industries and among types of firms within an industry. This paper investigates entry timing effects on market share and survival performance in an industry in which a firm’s specialized assets in one product

A growing body of empirical literature supports key assertions of the resource-based view. However, most of this work examines the impact of firm-specific resources on the overall performance of a firm. In this paper it is argued that, in some circumstances, adopting the effectiveness of business processes as a dependent variable may be more appropriate than adopting overall firm performance as a dependent variable. This idea is tested by examining the determinants of the effectiveness of the customer service business process in a sample of North American insurance companies. Results are consistent with resource-based expectations, and they show that distinctive advantages observable at the process level are not necessarily reflected in firm level performance. The implications of these findings for research and practice are discussed along with a discussion of the relationship between resources and capabilities, on the one hand, and business processes, activities, and routines, on the other. Copyright © 2003 John Wiley & Sons, Ltd. The resource-based view (RBV) asserts that firms gain and sustain competitive advantages by deploying valuable resources and capabilities that are

Acknowledgements: The development of NeBIC theory has benefited greatly from the detailed guidance of the editor, associate editor, and reviewers. I also wish to thank research associate Michael Williams and Arvin Sayam for their valuable assistance and healthy debate in maturing the ideas presented here. NeBIC: A Dynamic Capabilities Theory for Assessing Net-enablement We propose the Net-enabled Business Innovation Cycle as an applied dynamic capabilities theory for measuring, predicting, and understanding a firm’s ability to create customer value through the business use of digital networks. The theory incorporates both a variance and process view of netenabled business innovation. It identifies four sequenced constructs: Choosing new IT, Matching with Economic Opportunities, Executing Business Innovation for Growth, and Assessing Customer Value, along with the processes and events that inter-relate them as a cycle. The sequence of these theorized relationships for net-enablement asserts that choosing IT precedes rather than aligns with corporate strategy. The theory offers a logically consistent and falsifiable basis for grounding research programs on metrics of net-enabled business innovation. NeBIC Page 1 1