Abstract

Several authors have analyzed the relation between geographical location and competitive advantage. In a recent publication Yves Doz, Jose Santos and Peter Williamson (Doz et al., 2001) identify a new source of competitive advantage in discovering, accessing, mobilizing and leveraging knowledge from many locations. In this perspective, companies born in the wrong place gain a considerable competitive advantage, being naturally prone to doing business by learning knowledge from the world rather than projecting their own formulas and standards. I have analyzed in this perspective the history of STMicroelectronics, building upon my experience as the Chairman of ST's Supervisory Board. In fact, ST really benefited from being born in the wrong place: thanks to a natural disadvantage, the company was able to develop some distinctive capabilities representing its real strengths. The capabilities to create links between remote knowledge sources, to partner with suppliers, customers and research entities, to build upon cultural differences rather than imposing the homeland culture represent key success factors in a rapidly changing scenario.