Innovation capability and competitive advantage: A case study of two Brazilian Firms

Abstract

This study investigates practices used by firms to link their innovative capability to competitive advantage. The basic assumption is that innovative capability is conditioned by a series of factors regarding to cultural, resources, competences and external connections that promote competitive advantage through creation and introduction of new/improved products to the market. An exploratory and case study is used, based on two Brazilian firms in different industries. The results indicated that the innovative capabilities assumes different meanings in different settings, thus resulting in different impacts on firm competitive advantage.