Patents as surrogates for inimitable and non-substitutable resources

Gideon D. Markman, Maritza I. Espina, Phillip Phan

Research output: Contribution to journalArticle

Abstract

This study tests the view that competitive advantage lies in organizational processes and capabilities to secure patents. Since, by definition, patents are valuable and rare, here we test the extent to which patent citations and claims capture, respectively, inimitability and non-substitutability. Focusing on 85 publicly traded pharmaceutical firms (SIC 2834), we find that once the effects of firm size, past performance, and investment in innovation are held constant, inimitability is significantly related to firm profitability and new product introductions. Non-substitutability is significantly related to new product introductions only.

Original languageEnglish (US)
Pages (from-to)529-544
Number of pages16
JournalJournal of Management
Volume30
Issue number4
DOIs
StatePublished - Aug 2004
Externally publishedYes

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Resources
New product introduction
Patents
Patent citations
Innovation
Firm size
Competitive advantage
Firm profitability
Pharmaceuticals
Substitutability
Organizational capabilities
Organizational processes

ASJC Scopus subject areas

  • Strategy and Management
  • Finance

Cite this

Patents as surrogates for inimitable and non-substitutable resources. / Markman, Gideon D.; Espina, Maritza I.; Phan, Phillip.

In: Journal of Management, Vol. 30, No. 4, 08.2004, p. 529-544.

Research output: Contribution to journalArticle

Markman, Gideon D. ; Espina, Maritza I. ; Phan, Phillip. / Patents as surrogates for inimitable and non-substitutable resources. In: Journal of Management. 2004 ; Vol. 30, No. 4. pp. 529-544.
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