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Higher-order industrial Capabilities and competitive advantage

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  • Nicolai Foss

Abstract

This paper makes some analytical suggestions to help explain the advantages that firms derive from clustering or networking. The concept of 'higher-order capabilities' is introduced to identify the assets which may give firms in such clusters or networks some competitive advantages over firms that are not members of such clusters. Higher-order capabilities are non-traded interdependencies among firms, and may be approached in terms of the resource-based view of recent strategic thinking.

Suggested Citation

  • Nicolai Foss, 1996. "Higher-order industrial Capabilities and competitive advantage," Industry and Innovation, Taylor & Francis Journals, vol. 3(1), pages 1-20.
    • Handle: RePEc:taf:indinn:v:3:y:1996:i:1:p:1-20
    DOI: 10.1080/13662719600000001
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