Transformations  in
Business & Economics

TECHNOLOGICAL INNOVATION CAPABILITIES AS A SOURCE OF COMPETITIVE ADVANTAGE: A CASE STUDY FROM THE HOME APPLIANCE INDUSTRY
Matej Lahovnik, Lidija Breznik

ABSTRACT.Current research indicates that the average period in which firms are able to sustain a competitive advantage has decreased over time. A firm's ability to identify internal capabilities and to differentiate it from its competitors is crucial. The purpose of our paper is to propose a model of technological capabilities and to investigate in more detail potential differential impact of model of technological capabilities on sustainable competitive advantage in the global industry. We want to contribute to the recent pool of knowledge by introducing innovation capability as one of the most important dynamic capabilities that represent the dominant source of a competitive advantage, focusing on a case of one of the largest home appliance world producers. We present how combinations of capabilities and resources can be developed, deployed and protected to achieve and sustain competitive advantage.

KEYWORDS: competitive advantage, innovation, resources, technological capability.

JEL classification: M10, O32, M11.