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The Role of Firm Capability, Managerial Cognition, and Ecosystem on Innovation: Investigation of The Satellite Industry

In this dissertation, I systematically explore the nature and role of two firm capabilities: absorptive capacity (or external learning capability) and technological capability. I examine how firm capability interacts with intra-firm and industry factors, and how it impacts organizational outcomes. In the first paper, I review literature on absorptive capacity and distill its distinct effect on various organizational outcomes. I identify key theoretical underpinnings behind the diverse conceptualizations of absorptive capacity and their corresponding measures, and use meta-analytical techniques to synthesize the effects of absorptive capacity. The second and third papers of my dissertation examine how technological capability interacts with certain internal and external contingency factors in influencing firm innovation and industry evolution. In the second paper, I take an intra-firm focus, and I identify managerial cognition as an important internal factor that impacts the relationship between technological capability and innovation. More specifically, I study how a firm's technological competence interacts with managerial experience in shaping that firm's innovation choices. Using data from the satellite industry, I show that diversity and relatedness of technological resource, as well as CEO experience, work differently in shaping product versus application innovations. In the third paper, I investigate how capabilities beyond focal technology producers influence industry evolution. Based on longitudinal analyses of the evolution of the satellite industry, I show that complementors, component suppliers, and customers are important external factors that shape industry evolution. Overall, my dissertation demonstrates the interrelated roles of firm capability, managerial cognition, and innovation ecosystem on firm and industry-level outcomes. / Ph. D. / In this dissertation, I examine how firm capability interacts with other factors in influencing companies’ innovation decisions and the evolution of an industry. In the first paper, I review and synthesize existing studies on firm capability by focusing on the absorptive capacity (AC) literature. I identify key conceptualizations of AC, key outcomes of AC, and use meta-analytic techniques to distill AC’s effects. In the second paper, I examine how technological capability works together with managerial experience in shaping companies’ innovation choices in the small satellite industry. Small satellites, commonly defined as satellites that are less than 500 kilograms, are important innovations that substantially reduced the costs of building, launching, and operating satellites. In recent years, the small satellite industry has seen tremendous growth in terms of satellite production and deployment. I categorize innovation choices in this industry as product innovation (such as introduction of new launch systems, improved satellite components, and novel ground equipment) or application innovation (such as finding novel applications of existing satellite products by analyzing data transmitted from satellite systems and providing implications). Results show that while having related technology is positively related to product innovation, having a CEO with more diverse experience is positively related to application innovation. In the third paper, I examine how the small satellite industry emerged and evolved. Results show that beyond technological capabilities of focal small satellite manufacturers, technological advancements from complementors (launch vehicle providers) and customers (satellite operators) have jointly influenced the evolution of this industry.

Identiferoai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/86410
Date22 June 2017
CreatorsSong, Yue
ContributorsManagement, Gnyawali, Devi R., Hunt, Richard A., Townsend, David M., Junkunc, Marc
PublisherVirginia Tech
Source SetsVirginia Tech Theses and Dissertation
Detected LanguageEnglish
TypeDissertation
FormatETD, application/pdf
RightsIn Copyright, http://rightsstatements.org/vocab/InC/1.0/

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