Innovation, competitive advantage and rent: A model and test

Rita Gunther McGrath, Ming Hone Tsai, S. Venkataraman, I. C. MacMillan

Research output: Contribution to journalArticlepeer-review

200 Scopus citations


Four antecedents, it is argued, are necessary precursors for a firm to capture rents from innovation. The antecedents are causal understanding; innovation team proficiency; emergence and mobilization of new competences; and creation of competitive advantages, each of which are conceptually distinct and precisely defined in the paper. These constructs are linked together in a stage model and subsequently operationalized and tested using LISREL. Substantial support is found for the central thesis, that achieving each of the four antecedent processes increases the predicted rents from an innovation project.

Original languageEnglish
Pages (from-to)389-403
Number of pages15
JournalManagement Science
Issue number3
StatePublished - Mar 1996


  • Capabilities
  • Competences
  • Competitive Advantage
  • Innovation
  • LISREL Analysis


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