Knowledge and Competitive Advantage: The Coevolution of Firms, Technology, and National Institutions

Description

Entrepreneurs, managers, and policy makers must make decisions about a future that is inherently uncertain. Since the only rational guide for the future is the past, analysis of previous episodes in industrial development can shape informed decisions about what the future will hold. Historical scholarship that seeks to uncover systematically the causal processes transforming industries is thus of vital importance to the executives and managers shaping business policy today. With this in mind, Johann Peter Murmann compares the development of the synthetic dye industry in Great Britain, Germany, and the United States through the lenses of evolutionary theory. The rise of this industry constitutes an important chapter in business, economic, and technological history because synthetic dyes, invented in 1856, were the first scientific discovery quickly to give rise to a new industry. Just as with contemporary high tech industries, the synthetic dye business faced considerable uncertainty that led to many surprises for the agents involved. After the discovery of synthetic dyes, British firms led the industry for the first eight years, but German firms came to dominate the industry for decades; American firms, in contrast, played only a minor role in this important development. Murmann identifies differences in educational institutions and patent laws as the key reasons for German leadership in the industry. Successful firms developed strong ties to the centers of organic chemistry knowledge. As Murmann demonstrates, a complex coevolutionary process linking firms, technology, and national institutions resulted in very different degrees of industrial success among the dye firms in the three countries.

Johann Peter Murmann is Assistant Professor of Management and Organizations at the Kellogg School of Management, Northwestern University. He is on the editorial board of the Journal of International Business Studies and is the editor of Evolutionary Theories in the Social Sciences.

'... the book is a short valuable technological history of dyes, as well as a collection of databases on firms and plants. There's also a comprehensive bibliography and a good index. Murmann's book will interest and stimulate the thinking of anyone involved in management in a technology-based operation. I also recommend it to policy makers in governmental organizations that seek to influence international policy. As Murmann hopes, it should also encourage additional research.' Chemical and Engineering News 'Murmann's sophisticated co-evolutionary theory of industrial leadership considerably increases our understanding of the dynamics of international competition.' Jochen Streb, University of Hohenheim 'Murmann's book all in all is a masterpiece of historical sociology. It achieves both completeness and particularity. ... For business historians, Murmann's work demonstrates the exciting potential of an organized and systematic effort, creatively presented, to make industrial history meaningful to managers, and other historians, without sacrificing richness of detail. Enterprise and Society 'It is always a welcome sign when some aspect of the history of chemistry is placed within a new context and made relevant to new audiences. This is what Johann Peter Murmann has achieved with considerable success ...' Ambix '...Hillyard's book provides a very descriptive and very selective summary of the literature of certain aspects of rural life.' Environment and Planning C: Government Policy