Recognizing that firms cannot avoid interacting with others, this research investigates how firms cope with technological change by managing resource interaction in a network setting. The paper is based on a longitudinal case study utilizing a focal net perspective to explore technological change in the optical media recording industry. The findings show that the development of AMI ability (the ability to acquire, mobilize and integrate resources) is a crucial mechanism for managing technological change successfully. Exercising AMI ability is a dynamic relationship management process and involves establishing, developing, ending, and reactivating business relationships, and illustrates the importance of network competence.
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