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Geographic scope, isolating mechanisms, and value appropriation
Author(s) -
Kim Minyoung
Publication year - 2016
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2356
Subject(s) - scope (computer science) , appropriation , competitor analysis , extant taxon , value (mathematics) , business , economies of scope , industrial organization , marketing , knowledge management , computer science , philosophy , linguistics , evolutionary biology , machine learning , economies of scale , biology , programming language
Extending extant literature on geographic scope that has primarily focused on its role in value creation, I investigate the value appropriation aspect of geographic scope of knowledge acquisition. I maintain that isolating mechanisms created via geographic scope of knowledge acquisition can help firms prevent competitors from accessing their innovative knowledge and, by doing so, can help firms capture a larger proportion of economic returns from innovation, thus helping them enjoy better financial performance. Mediating and moderating effect analyses with patent‐ and firm‐level data of the semiconductor industry corroborate the value appropriation aspect of geographic scope . Copyright © 2014 John Wiley & Sons, Ltd.