Learning from the Indian Experience
Edited by Tojo Thatchenkery and Roger R. Stough
Chapter 8: Inimitability of Network Resources in the Research and Development Services Domain of the Indian Information Technology Industry
Nagarajan Dayasindhu* INTRODUCTION A pilot case study reveals that inimitable resources like the ability of the employees to comprehend relevant technologies and speciﬁc design/ programming capabilities lead to sustained competitive advantage in the research and development (R&D) services domain of the Indian information technology (IT) industry. Semiconductor Company (SC), a global leader in the manufacture of integrated signal processing chips, is a part of a network of organizations in the R&D services domain of the Indian IT industry. This network of organizations designs hardware and software systems based on SC’s chips. SC believes that resources are spread across a network of organizations. It appears that competitors of SC have tried but failed in their attempts to create a similar network of organizations. This observation is consistent with the research on networks of organizations (Gulati et al., 2000). LITERATURE REVIEW AND RESEARCH QUESTIONS Relevant research literature on the resource-based view (RBV), inimitability of resources, networks of organizations, and network resources are discussed in this section. Resources are the assets, capabilities, organizational processes, organizational attributes, and knowledge, that are used by organizations to implement strategies to improve effectiveness and efﬁciency (Barney, 1991). Networks of organizations are composed of a select, persistent, and structured set of autonomous organizations engaged in creating products or services based on implicit and open-ended contracts to adapt 127 128 Knowledge spillovers and innovation in the ICT sector to environmental contingencies and to coordinate and safeguard exchanges (Jones et al., 1997). Network resources are those...
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