'. . . this is a substantive contribution to the literature on capability development, one which breaks new ground on a hitherto little understood aspect of the knowledge management literature: knowledge management issues related with transition stage. . . Few researchers have addressed the full complexity of the transition process of capability development, drawing on such an impressive set of data and over such an extended period of time. By doing so, the book provides a range of new insights into knowledge management issues related with the process of capability development, namely, those related to the organizational knowledge creation within a latecomer firm. It should be read and discussed.' - Muriela Pádua, Journal of Evolutionary Economics Strategic management literature has, until now, concentrated on the analysis of how large innovative firms maintain, rebuild, or renew strategic capabilities. This important book illustrates the complex transition process involved as firms accumulate knowledge and develop new types of knowledge management to build the primary strategic capabilities.