About the EditorsRudi K. F. Bresser is currently Professor of Management at the Free University of Berlin, Germany. Previously he held a number of teaching posts in the US and Europe, including that of Associate Professor of Management, Baruch College, The City University of New York and Visiting Professor to the Stern School of Business, New York University, University of South Florida and Université de Paris. He received his PhD from Johann Wolfgang Goethe-University, Frankfurt/Main, and has since published widely in the area of strategic management and organizational theory. His latest book Strategische Management theorie was published by W. de Gruyter in 1998. Michael A. Hitt is currently Professor and Weatherup/Overby Chair in Executive Leadership at Arizona State University. He previously held the Paul M. and Rosalie Robertson Chair in Business Administration at Texas A&M University. He received his PhD from the University of Colorado and has received an honnorary doctorate from the Universidad Carlos III de Madrid in recognition of his scholarly constributions in business administration. He has authored and co-authored several books and book chapters and numerous journal articles in such journals as the Academy of Management Journal, Strategic Management Journal and Academy of Management Review. Furthermore, he has served as Consulting Editor (1988-90) and Editor (1991-1993) of the Academy of Management Journal. He is a Past President of the Academy of Management and is a Fellow in that organization. Following Michael Porter (1994) and C. K. Prahalad (1995), he recceived the 1996 Award for Outstanding Academic Contributions to Competitiveness from the American Society for Competitiveness. Robert D. Nixon is an Assistant Professor of Strategic Management at the A.B. Freeman School of Business, Tulane University. He earned his engineering degree from Brigham Young University and his PhD in Strategic Management from Texas A&M University. Dr Nixon presents at a wide range of meetings and he has published in the Journal of Engineering and Technology Management, Entrepreneurship Theory & Practice, Marketing Science Institute and Organizational Dynamics, as well as the proceedings of national conferences. His extensive industrial experiences encompass work for international, high-technology firms and the founding and management of more than a dozen entrepreneurial firms. Dieter Heuskel (Senior Vice President) studied economics at Bonn University, where he also received his PhD. From 1976 to 1979 he was a consultant for public and private development projects in West Africa. From 1980 to 1982 he worked in BCG’s Munich office and has since played a prominent part in the expansion of the Düsseldorf office, where he was the managing partner from 1992 to 1997. Since 1997 he has been member of BCG’s worldwide Executive Committee and head of the German and Austrian Management Team. His client work has focused on strategy and corporate development in a wide range of industries, including consumer goods, steel, telecommunications, oil and energy. He has dedicated particular attention to issues surrounding the development of multi-business corportions, and has worked on a variety of such projects in Germay. Since 1995 he as chaired BCG’s strategy practice initiative.

"This is a very interesting and thought-provoking read." (Supply Management, 1st March 2001)

• Contributors viiSeries Preface xi1 The Deconstruction of Integrated Value Chains: Practical and Conceptual Challenges 1Rudi K. F. Bresser, Dieter Heuskel, Robert D. NixonSection I: Antecedents and Outcomes of Value Chain Deconstruction 232 Product and Process Technological Change and the Adoption of Modular Organizational Forms 25Melissa A. Schilling, Cassandra E. Vasco3 Managing the Unmanageable – Strategic Balancing in Industries Characterized by Encompassing Change 51Maria Bengtsson, Carin Holmquist4 Hidden in Plain Sight: Hybrid Diversification, Economic Performance, and “Real Options” in Corporate Strategy 77Michael E. Raynor5 The Virtual Reconstruction of Value Chains: Complementary Process Innovation in the Biopharmaceutical Industry 107Frank T. Rothaermel6 Development Webs: A New Paradigm for Product Development 135Nancy Staudenmayer, Mary Tripsas, Christopher Tucci7 Playing to Win: The Role of Competitive Disruption and Aggressiveness 163Walter J. Ferrier8 Dealing with Deconstruction 191Sebastian Ehrensberger, Frank Opelt, Harald Rubner, Armin Schmiedeberg9 Strategies for Unstructured Competitive Environments: Using Scarce Resources to Create  New Markets 201James A. Robins, Margarethe F. WiersemaSection II: Knowledge and Competitive Advantage 22110 Knowledge Characteristics and Competitive Advantage: An Empirical Investigation 223Susan K. McEvily, Bala Chakravarthy11 Deconstructing a Knowledge-Based Advantage: Rent Generation, Rent Appropriation, and “Performance” in Investment Banking 245Aya S. Chacar, Russell W. Coff12 Competitive Advantage from Knowledge Spillovers: Implications of the Network Economy 267Brian McGrath, Rita Gunther McGrath13 Young Firm Growth: An Analysis of Strategy and Context 289Stewart Thornhill, Raphael AmitIndex 309

About the EditorsRudi K. F. Bresser is currently Professor of Management at the Free University of Berlin, Germany. Previously he held a number of teaching posts in the US and Europe, including that of Associate Professor of Management, Baruch College, The City University of New York and Visiting Professor to the Stern School of Business, New York University, University of South Florida and Université de Paris. He received his PhD from Johann Wolfgang Goethe-University, Frankfurt/Main, and has since published widely in the area of strategic management and organizational theory. His latest book Strategische Management theorie was published by W. de Gruyter in 1998. Michael A. Hitt is currently Professor and Weatherup/Overby Chair in Executive Leadership at Arizona State University. He previously held the Paul M. and Rosalie Robertson Chair in Business Administration at Texas A&M University. He received his PhD from the University of Colorado and has received an honnorary doctorate from the Universidad Carlos III de Madrid in recognition of his scholarly constributions in business administration. He has authored and co-authored several books and book chapters and numerous journal articles in such journals as the Academy of Management Journal, Strategic Management Journal and Academy of Management Review. Furthermore, he has served as Consulting Editor (1988-90) and Editor (1991-1993) of the Academy of Management Journal. He is a Past President of the Academy of Management and is a Fellow in that organization. Following Michael Porter (1994) and C. K. Prahalad (1995), he recceived the 1996 Award for Outstanding Academic Contributions to Competitiveness from the American Society for Competitiveness. Robert D. Nixon is an Assistant Professor of Strategic Management at the A.B. Freeman School of Business, Tulane University. He earned his engineering degree from Brigham Young University and his PhD in Strategic Management from Texas A&M University. Dr Nixon presents at a wide range of meetings and he has published in the Journal of Engineering and Technology Management, Entrepreneurship Theory & Practice, Marketing Science Institute and Organizational Dynamics, as well as the proceedings of national conferences. His extensive industrial experiences encompass work for international, high-technology firms and the founding and management of more than a dozen entrepreneurial firms. Dieter Heuskel (Senior Vice President) studied economics at Bonn University, where he also received his PhD. From 1976 to 1979 he was a consultant for public and private development projects in West Africa. From 1980 to 1982 he worked in BCG’s Munich office and has since played a prominent part in the expansion of the Düsseldorf office, where he was the managing partner from 1992 to 1997. Since 1997 he has been member of BCG’s worldwide Executive Committee and head of the German and Austrian Management Team. His client work has focused on strategy and corporate development in a wide range of industries, including consumer goods, steel, telecommunications, oil and energy. He has dedicated particular attention to issues surrounding the development of multi-business corportions, and has worked on a variety of such projects in Germay. Since 1995 he as chaired BCG’s strategy practice initiative.

"This is a very interesting and thought-provoking read." (Supply Management, 1st March 2001)

• Contributors viiSeries Preface xi1 The Deconstruction of Integrated Value Chains: Practical and Conceptual Challenges 1Rudi K. F. Bresser, Dieter Heuskel, Robert D. NixonSection I: Antecedents and Outcomes of Value Chain Deconstruction 232 Product and Process Technological Change and the Adoption of Modular Organizational Forms 25Melissa A. Schilling, Cassandra E. Vasco3 Managing the Unmanageable – Strategic Balancing in Industries Characterized by Encompassing Change 51Maria Bengtsson, Carin Holmquist4 Hidden in Plain Sight: Hybrid Diversification, Economic Performance, and “Real Options” in Corporate Strategy 77Michael E. Raynor5 The Virtual Reconstruction of Value Chains: Complementary Process Innovation in the Biopharmaceutical Industry 107Frank T. Rothaermel6 Development Webs: A New Paradigm for Product Development 135Nancy Staudenmayer, Mary Tripsas, Christopher Tucci7 Playing to Win: The Role of Competitive Disruption and Aggressiveness 163Walter J. Ferrier8 Dealing with Deconstruction 191Sebastian Ehrensberger, Frank Opelt, Harald Rubner, Armin Schmiedeberg9 Strategies for Unstructured Competitive Environments: Using Scarce Resources to Create  New Markets 201James A. Robins, Margarethe F. WiersemaSection II: Knowledge and Competitive Advantage 22110 Knowledge Characteristics and Competitive Advantage: An Empirical Investigation 223Susan K. McEvily, Bala Chakravarthy11 Deconstructing a Knowledge-Based Advantage: Rent Generation, Rent Appropriation, and “Performance” in Investment Banking 245Aya S. Chacar, Russell W. Coff12 Competitive Advantage from Knowledge Spillovers: Implications of the Network Economy 267Brian McGrath, Rita Gunther McGrath13 Young Firm Growth: An Analysis of Strategy and Context 289Stewart Thornhill, Raphael AmitIndex 309

About the EditorsRudi K. F. Bresser is currently Professor of Management at the Free University of Berlin, Germany. Previously he held a number of teaching posts in the US and Europe, including that of Associate Professor of Management, Baruch College, The City University of New York and Visiting Professor to the Stern School of Business, New York University, University of South Florida and Université de Paris. He received his PhD from Johann Wolfgang Goethe-University, Frankfurt/Main, and has since published widely in the area of strategic management and organizational theory. His latest book Strategische Management theorie was published by W. de Gruyter in 1998. Michael A. Hitt is currently Professor and Weatherup/Overby Chair in Executive Leadership at Arizona State University. He previously held the Paul M. and Rosalie Robertson Chair in Business Administration at Texas A&M University. He received his PhD from the University of Colorado and has received an honnorary doctorate from the Universidad Carlos III de Madrid in recognition of his scholarly constributions in business administration. He has authored and co-authored several books and book chapters and numerous journal articles in such journals as the Academy of Management Journal, Strategic Management Journal and Academy of Management Review. Furthermore, he has served as Consulting Editor (1988-90) and Editor (1991-1993) of the Academy of Management Journal. He is a Past President of the Academy of Management and is a Fellow in that organization. Following Michael Porter (1994) and C. K. Prahalad (1995), he recceived the 1996 Award for Outstanding Academic Contributions to Competitiveness from the American Society for Competitiveness. Robert D. Nixon is an Assistant Professor of Strategic Management at the A.B. Freeman School of Business, Tulane University. He earned his engineering degree from Brigham Young University and his PhD in Strategic Management from Texas A&M University. Dr Nixon presents at a wide range of meetings and he has published in the Journal of Engineering and Technology Management, Entrepreneurship Theory & Practice, Marketing Science Institute and Organizational Dynamics, as well as the proceedings of national conferences. His extensive industrial experiences encompass work for international, high-technology firms and the founding and management of more than a dozen entrepreneurial firms. Dieter Heuskel (Senior Vice President) studied economics at Bonn University, where he also received his PhD. From 1976 to 1979 he was a consultant for public and private development projects in West Africa. From 1980 to 1982 he worked in BCG’s Munich office and has since played a prominent part in the expansion of the Düsseldorf office, where he was the managing partner from 1992 to 1997. Since 1997 he has been member of BCG’s worldwide Executive Committee and head of the German and Austrian Management Team. His client work has focused on strategy and corporate development in a wide range of industries, including consumer goods, steel, telecommunications, oil and energy. He has dedicated particular attention to issues surrounding the development of multi-business corportions, and has worked on a variety of such projects in Germay. Since 1995 he as chaired BCG’s strategy practice initiative.

"This is a very interesting and thought-provoking read." (Supply Management, 1st March 2001)

• Contributors viiSeries Preface xi1 The Deconstruction of Integrated Value Chains: Practical and Conceptual Challenges 1Rudi K. F. Bresser, Dieter Heuskel, Robert D. NixonSection I: Antecedents and Outcomes of Value Chain Deconstruction 232 Product and Process Technological Change and the Adoption of Modular Organizational Forms 25Melissa A. Schilling, Cassandra E. Vasco3 Managing the Unmanageable – Strategic Balancing in Industries Characterized by Encompassing Change 51Maria Bengtsson, Carin Holmquist4 Hidden in Plain Sight: Hybrid Diversification, Economic Performance, and “Real Options” in Corporate Strategy 77Michael E. Raynor5 The Virtual Reconstruction of Value Chains: Complementary Process Innovation in the Biopharmaceutical Industry 107Frank T. Rothaermel6 Development Webs: A New Paradigm for Product Development 135Nancy Staudenmayer, Mary Tripsas, Christopher Tucci7 Playing to Win: The Role of Competitive Disruption and Aggressiveness 163Walter J. Ferrier8 Dealing with Deconstruction 191Sebastian Ehrensberger, Frank Opelt, Harald Rubner, Armin Schmiedeberg9 Strategies for Unstructured Competitive Environments: Using Scarce Resources to Create  New Markets 201James A. Robins, Margarethe F. WiersemaSection II: Knowledge and Competitive Advantage 22110 Knowledge Characteristics and Competitive Advantage: An Empirical Investigation 223Susan K. McEvily, Bala Chakravarthy11 Deconstructing a Knowledge-Based Advantage: Rent Generation, Rent Appropriation, and “Performance” in Investment Banking 245Aya S. Chacar, Russell W. Coff12 Competitive Advantage from Knowledge Spillovers: Implications of the Network Economy 267Brian McGrath, Rita Gunther McGrath13 Young Firm Growth: An Analysis of Strategy and Context 289Stewart Thornhill, Raphael AmitIndex 309