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Complementary Resources and the Exploitation of Technological Innovations

Air Force Pentagon, SAF/AQP Room 11-105, 1500 Wilson Blvd., Arlington, VA 22209, USA

Jeffrey G. Covin

Department of Management, Kelley School of Business, Indiana University, Room 666D, 1309 E. Tenth Street, Bloomington, IN 47405-1701, USA

W. Harvey Hegarty

Department of Management, Kelley School of Business, Indiana University, Room 650G, 1309 E. Tenth Street, Bloomington, IN 47405-1701, USA

Technological innovation often results when the resources of a small firm are combined with those of a large one. This is because small and large firms characteristically possess complementary resources whose combination can facilitate innovation success. The possession of complementary innovation-producing resources by small and large firms helps explain patterns of interaction among firms in dynamic, technology-based industries. Propositions are developed that outline how typical resources of small and large firms can be used to explain industry-level phenomena surrounding technological change.

Journal of Management, Vol. 29, No. 4, 589-606 (2003)
DOI: 10.1016/S0149-2063_03_00026-6


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