The development of core competence through emerging technology innovation: An empirical investigation

The research presented here explores the innovation process of new to the world technologies by examining the activities undertaken at the project level. Grounded in the resource based view of the firm, this study examines the process of emerging technological innovation (ETI). A model is developed which contains knowledge building activities and their relationship to multiple dimensions of successful commercialization. The study also investigates the development of new core competencies.; The research indicates that emerging technological innovation is an iterative process that occurs from activities in five areas: technology, design requirements, customer, manufacturing and application development. Frequency within the activities of these five areas is linked to better commercialization outcomes and core competence development. Core competence development was measured by the degree of inimitability, market access, and customer value which new abilities provided. The research also indicates four types of core competence were creased during the emerging technological innovation. These core competence types of technology, market, integrative, and design are expected to allow the firm to compete in the new technology arena.; The study also delves into the moderating relationships that boundary spanning and prior competence use may have in ETI. The study uses a multi-method design with two longitudinal case studies and data from 132 projects in emerging technological areas of micro electro mechanical systems and super attribute polymers. The results indicate that different sets of ETI activities have relationships with the different commercialization and core competence outcomes. The results point to significant mediated relationships with boundary spanning and core competence development outcomes. Moderated relationships were also observed between ETI and the use of prior competencies.; The study provides a prescriptive framework for managers, who undertake ETI. It also contributes to a meso-theory of resources development through innovation at the project level. Conceptualization and measures of strategic abilities are developed to better understand how strategic capabilities arise in such situations.