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Transactional capability: Innovation’s missing link

Author

Listed:
  • Tello-Gamarra, Jorge

    (Federal University of Rio Grande do Sul)

  • Zawislak, Paulo Antônio

    (Federal University of Rio Grande do Sul)

Abstract

The topic of innovation as a source of competitive advantage for firms is consolidated in the literature. An innovation-based advantage is generally achieved by following a structured process, in which technological capability plays a key role. However, a question remains in studies into innovation, which is concerned with the reasons why not all firms that develop a technological capability are innovative. Where is the missing link? Great efforts have been made in attempts to answer to this question. However, the study of this link as a source of advantage for firms deserves further attention. This article aims to present a framework with two essential dimensions: (1) the technological capability and (2) the transactional capability. Technological capability is the ability of firms to make effective use of technical knowledge in order to improve production processes and develop new products and services. Transactional capability is defined as a repertoire of abilities, processes, experiences, skills, knowledge and routines that the firm uses to minimize its transaction costs (ex-ante andex-post). Given that the present study is a theoretical paper, methodologically it is based on a literature review. The main finding of this study is the identification of transactional capability as the missing link in innovation. Accordingly, to be innovative, in addition to having a technological capability, a firm needs to develop its transactional capability.

Suggested Citation

  • Tello-Gamarra, Jorge & Zawislak, Paulo Antônio, 2013. "Transactional capability: Innovation’s missing link," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 18(34), pages 2-8.
    • Handle: RePEc:ris:joefas:0051
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    References listed on IDEAS

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    Cited by:

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    2. Rémy Guichardaz & Laurent Bach & Julien Penin, 2016. "Music industry intermediation in the digital era and the resilience of the majors’ oligopoly: The role of transactional capabilities," Working Papers of BETA 2016-47, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Rémy Guichardaz & Laurent Bach & Julien Penin, 2019. "Music industry intermediation in the digital era and the resilience of the Majors’ oligopoly: the role of transactional capability," Industry and Innovation, Taylor & Francis Journals, vol. 26(7), pages 843-869, August.
    4. Reichert, Fernanda Maciel & Torugsa, Nuttaneeya (Ann) & Zawislak, Paulo Antonio & Arundel, Anthony, 2016. "Exploring innovation success recipes in low-technology firms using fuzzy-set QCA," Journal of Business Research, Elsevier, vol. 69(11), pages 5437-5441.
    5. Anderson Arcos-Leon & Margaret Diana Colqui-Estrella & Anny Paula Sugasti-Arivilca & Wagner Enoc Vicente-Ramos, 2021. "Remuneration, Personnel Expenses and Third Party Expenses in Times of Covid-19 in the Financial Sector," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 31-42, May.
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    More about this item

    Keywords

    The firm; Technological capability; Transactional capability; Innovation;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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