Innovative advantage for a new technology-based firm

Abstract

This research has been focused upon analyzing Medison, once a leading New Technology-Based Firm (NTBF) in Korea with exceptionally advanced technology in 3D ultrasound diagnostic imaging devices (UDIDs) (with 23 subsidiaries at its peak expansion), from the perspective of Dynamic Firm Capability (DFC). In order to adapt itself rapidly into the turbulent (risky and uncertain) environment, Medison has been allegedly assumed to take a closer look at the several sources of innovation which bring about different patterns of innovation at each industry and firm level, in accordance with the market maturity. The underlying hypothesis is that the various problems from its pointless business pursuit of the existing large firms might be traced to the failure in recognizing its specific characteristics as an NTBF, whose sustainable performance could have been achieved from creating the innovative advantage based upon the distinctive competences such as differentiated technologies, institutional linkages, organizational routines, and complementary assets, etc. In conclusion, for an NTBF, learning mechanism for the optimal external linkages and comprehensive integration (Process) under its specific organizational characteristics (Path) is highly recommended for the continuous accumulation and exploitation of its core capabilities (Position).