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AoM submission - Industry Studies Working Papers - isapapers pitt

AoM submission - Industry Studies Working Papers - isapapers pitt 2025

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The paper by M. Lourdes Sosa explores the relationship between market incumbency and organizational experience in the context of radical innovation, specifically within the anti-cancer drug market during the biotechnology revolution. It argues that previous studies have conflated these two concepts, leading to misconceptions about the performance of incumbent firms versus new entrants. By decoupling market incumbency from organizational experience, Sosa finds that experienced firms (both incumbents and diversifying entrants) often outperform de novo firms in research and development, particularly in areas where competencies can be reused. The study emphasizes the importance of distinguishing between different types of entrants and their respective advantages and disadvantages during periods of technological disruption.

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