Creating a competitive edge: the value of cross‐industry knowledge

Abstract

Purpose

As organizations become more global in their reach, their people and tools have to reflect more expansive capabilities. Innovative organizations hire leaders and team members who possess cross‐industry knowledge. This is one of the keys to dealing with the rapid change and ambiguity of today's business environment. These individuals are adept at transferring successful experiences, processes and tools from other industries in order to develop and sustain a competitive advantage.

Design/methodology/approach

The article discusses examples of senior executives who have successfully crossed industry boundaries, suggests ways of identifying talent that will succeed upon switching industries and gives examples of processes and technologies that have been applied across industry boundaries.

Findings

Specialization in a particular industry is unnecessary, particularly at the leadership level. Senior executives who have been leaders in more than one industry have been highly successful. Processes and technologies from one industry have led to innovative approaches in another.

Practical implications

Companies should hire talent that has proven its flexibility and adaptability by switching industries. They should also look outside their own industry for innovation in the area of processes and technologies. Hiring from outside the industry can also help avoid trade secret litigation.

Originality/value

The article suggests cross‐industry knowledge and application as criteria for success.

Citation

Pearl, M. (2007), "Creating a competitive edge: the value of cross‐industry knowledge", Business Strategy Series, Vol. 8 No. 2, pp. 142-147. https://doi.org/10.1108/17515630710685203