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| Author: | Roberts, P. W. Amit, R. |
| Title: | The Dynamics of Innovative Activity and Competitive Advantage: The Case of Australian Retail Banking, 1981 to 1995 |
| Journal: | Organization Science
2003 : MAR-APR, VOL. 14:2, p. 107-122 |
| Index terms: | INNOVATION AUSTRALIA RETAIL BANKING COMPETITIVE ADVANTAGE BANKING |
| Language: | eng |
| Abstract: | This study examines the adoption of new products and processes in the Australian retail banking industry over the 1981 to 1995 period. The analysis demonstrates that the vast majority of observed innovative activity was based on ideas sourced from outside the focal firm, and that innovations diffused very quickly across competing banks. As such, there were no periods during which any bank had proprietary possession of a major product or process innovation. The authors therefore ask how the banks' innovative activity could affect their relative financial performance positions. The authors answer this question by developing a set of hypotheses that relate specific features of their histories of innovative activity their current financial performance. |
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