Abstract
The purpose of this study is to explain how Avision, a Taiwanese scanner firm, is able to acquire high economic rents in their industry. Arguing against the industrial organization school insistent on an S-C-P (structure-conduct- performance) approach, we emphasize that firms could build and sustain strategic advantage in a highly unattractive industry. To do this, we apply the newly developed notion of dynamic capabilities to Avision who outperforms its domestic competitors. Our results show that appreciation of organizational process, national and market position, and path dependence all matters to Avision's success.