Basic Thinking in Industrial Dynamics and Market Evolution
“What appears to be competitive advantage derived from innovation is frequently the return to a system of organizations capable of producing a series of innovations. This is an example of a second distinctive capability which I call architecture. Architecture is a system of relationships within the firm, or between the firm and its suppliers or customers, or both. Generally the system is a complex one and the content of the relationships implicit rather than explicit. The structure relies on continued mutual commitment to monitor and enforce its terms. A firm with distinctive architecture gains strength from the ability to transfer information which is specific to the firm, product or market within the organization and to its customers and suppliers. It can also respond quickly and flexibly to changing circumstances.” (Kay, 1993, p. 14)
KeywordsMutual Fund Strategic Group Industrial Dynamic Mutual Fund Industry Industry Architecture
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