Testing metric equivalence in cross‐national strategy research: an empirical test across the United States and Japan

We propose a conceptual and analytical framework for assessing metric equivalence in cross‐national strategy research. We illustrate this framework by testing the equivalence of measurement models for a set of strategy constructs across the United States and Japan. Results of a two‐group LISREL analysis conducted on a data set of 447 interorganizational relationships reveal that some constructs have strong cross‐national equivalence, while others need content respecification or reconceptualization. We discuss implications and offer suggestions about how to conduct empirical strategy research in cross‐national settings. Copyright © 1999 John Wiley & Sons, Ltd.     

Assessing value-in-use: A conceptual framework and exploratory study

Developing approaches for understanding customer perceived value is a priority for managers and scholars alike. A conceptual framework for assessment of value-in-use is proposed and explored within the context of a maintenance service provider. In contrast to value models in previous empirical research, the framework includes assessment not just of provider attributes but also of the customer's usage processes, as well as customer evaluations of the value-in-use they obtain. Interviews with members of a cross-disciplinary buying group provide support for the framework, including the observations that individuals can assess the quality of their usage processes and that they can articulate value-in-use at both organisational and individual levels; the further concept of network quality also emerges from the data. Assessment of usage process quality as well as service quality evolves as the customer's goals evolve. Practitioners may wish to elicit usage process quality and value-in-use as well as service quality. Research directions include scale development for both usage process quality and value-in-use.     

Anatomy of a social partnership: A stakeholder perspective

We offer an anatomic analysis of a social partnership among a complex network of stakeholder organizations. Contributions of this research are twofold. First, we use explanatory case data to develop a framework of stakeholder collaboration in a complex setting involving a mix of for-profit and non-profit organizations. Our study is motivated by a need for understanding about how organizations can work within social partnerships to achieve their goals (be they profit related or otherwise). Second, we offer insight about lateral relationship exchange from the view of the entire project—a perspective not typically employed in the domain of relationship marketing. The focal issue in the case, use of technology to improve highway safety, is a social initiative which further sets our study apart in the relationship marketing literature. Using fieldnotes from 33 in-depth interviews, we employ a mix of inductive and deductive reasoning to formulate a conceptual framework and research propositions for the social partnership. The conceptual framework offers in-depth understanding of social partnership development and relationship dynamics. This, in turn, may help stakeholders achieve organizational goals more effectively in this unique environment.     

How to develop great conceptual frameworks for business-to-business marketing

Robust conceptual frameworks are essential to building academic knowledge. Theory development involves high-quality conceptualization that integrates and builds on existing knowledge, possibly using a multi-disciplinary approach. Further, especially in an applied research area such as business-to-business marketing, the emerging theory will have meaningful implications for managerial decision-makers. Insightful conceptual framework development advances theory substantially, not incrementally. Theoretical development can be either purely conceptual or based on empirical data. Nevertheless, there are comparatively few guidelines for the process of conceptual framework development. This editorial discusses pathways to developing conceptual frameworks to support academic research, with emphasis on business-to-business marketing research. As guidelines and conventions are available for data-driven approaches such as grounded theory, we focus on theorizing processes in which existing theory plays a pivotal role.     

Mental models,decision rules,and performance heterogeneity

This paper focuses on the role of managerial cognition as a source of heterogeneity in firm strategies and performance. We link differences in mental models to differences in decision rules and performance in a management simulation. Our results show more accurate mental models lead to better decision rules and higher performance. We also find that decision makers do not need accurate knowledge of the entire business environment; accurate mental models of the key principles are sufficient to achieve superior performance. A fundamental assumption in much of strategic management is that managers who have a richer understanding about organizational capabilities and the dynamics of industry structure can improve the performance of their firms. Our findings provide empirical evidence supporting this assumption and show that differences in mental models help explain ex ante why managers and firms adopt different strategies and achieve different levels of competitive success. Copyright © 2010 John Wiley & Sons, Ltd.     

How Do Consumer Characteristics Affect the Bias in Measuring Willingness to Pay for Innovative Products?

Getting the price right is essential for successful new product introductions. An accurate estimate of consumers' willingness to pay is a crucial part of this task. Measurement of willingness to pay for innovations, however, often yields biased results. In this paper, we investigate consumer‐related characteristics and motives that might underlie this bias. Drawing on the elaboration likelihood model, we develop a conceptual model to identify consumer characteristics relevant for preference measurement for innovative products. In doing so, two main factors that potentially influence hypothetical bias are distinguished: ability and motivation. Our conceptual discussion and empirical results demonstrate that the validity of willingness to pay statements is higher among consumers who show a high ability to assess the new product's utility and who are truly interested in purchasing the new product. Counter to intuition, willingness to pay statements from innovators, consumers with good product category knowledge, or consumers who perceive the new product to be highly innovative are relatively more biased and should be interpreted with caution. This research is among the first to look at consumer characteristics rather than methodological issues when it comes to measuring consumer willingness to pay for innovative products. Our conceptual discussion and empirical examination of the drivers of hypothetical bias can be used to refine the validity of the results of the direct willingness to pay approach. These findings should help improve new product pricing surveys and open new avenues for research in measuring consumer preferences.     

A systematic assessment of the empirical support for transaction cost economics

Transaction cost economics (TCE) is one of the leading perspectives in management and organizational studies, yet debate continues regarding its empirical support. In this paper, we take stock of the large body of extant research and provide a systematic assessment of empirical evidence. In all, 308 statistical tests from 63 articles, selected according to a set of clear criteria, were examined across various dimensions. We assess not only the level of empirical support for the theory, but also the degree of paradigm consensus present in the empirical literature. Our analysis shows that results are mixed: while we found support in some areas (e.g., with regard to asset specificity), we also found considerable disagreement on how to operationalize some of TCE's central constructs and propositions, and relatively low levels of empirical support in other core areas (e.g., surrounding uncertainty and performance). We conclude that a more thorough empirical grounding of the theory's foundation is crucial to its future development, and offer several strategies for doing this. Copyright © 2003 John Wiley & Sons, Ltd.     

The buying network in international project business: A comparative case study of development projects

While previous research has found project buying to be distinct from other buying situations, in that it typically involves a multi-organizational network, to date there has been very little empirical research on this phenomenon. Our aim in this paper is therefore to investigate the structure and decision-making processes of the project buying network during the project cycle and its interactions with project sellers. We first develop a preliminary conceptual framework for analyzing the project buying network, which is then applied to a comparative case study of three development projects. The findings from the case study allow us to propose a revised conceptual framework for analyzing the dynamics of the project buying network during the project cycle, as well as interaction with sellers. Our findings also contribute an understanding of development projects, in particular the role of financiers.     

In Unions We Trust! Analysing Confidence in Unions across Europe

Public institutions and trade unions in particular are often portrayed as facing a deep crisis. In order to better understand to what extent unions are still perceived as legitimate institutions from the society as a whole (working and non‐working individuals), we analyse the determinants of confidence in unions across 14 European countries between 1981 and 2009. Confidence in unions is explained through individual‐level variables (by a rational and an ideational mechanism) and contextual‐level factors (relevant economic and employment relations characteristics). Using data from the European Values Study (EVS) merged with contextual datasets, we develop a series of regression models to examine the main determinants of confidence in unions. We demonstrate that confidence in unions cannot only be traced back to the support from members and left‐wing oriented individuals but it is also related to non‐working individuals and vulnerable social groups, in particular when confronted with economic shocks. Our findings challenge both the ‘crisis of confidence’ in institutions and the ‘crisis of unionism’ narratives. Implications for union representation and organizing strategies are discussed.     

Normal vs spectacular science: The IMP Group and BtoB marketing

This paper endeavours to track the underlying scientific process driving research activities and output. It takes research in the business-to-business field as the empirical setting and puts the works of the IMP Group into focus, using bibliometric analyses and historical vistas as background evidence. We argue that what may appear at first sight as a limited development should rather, in fact, be interpreted as “normal science,” i.e. based on the robustness of the core models and conceptual framework, with fine adjustments of these taking place over time. Indeed, the BtoB realm—and in particular the activities and production of the IMP Group and associated researchers—would seem to contrast rather radically with the broader area of marketing in that it benefits from a resistant conceptual framework which seems to have weathered the test of time, and which can be used as a building block for research development and is less sensitive to managerial trends and fashion.     

The Social Network Position of Lead Users

The field of lead user research has seen a great deal of attention from academics and practitioners alike. However, we still lack a full understanding of the nature of users with high potential for innovation. In this paper, we employ a social network perspective on lead users. Increasing the realism of our research in three empirical studies with different empirical settings and methods, we provide robust evidence that lead users have a distinctive social network position: They exhibit an unusually high level of “betweenness centrality,” meaning that they are positioned as bridges between different social groups. This finding has two major implications for lead user theory. First, it consolidates seminal conceptual work on lead users and their embeddedness in social networks. And second, the findings extend and validate prior work on the social network perspective of lead users by combining theoretical insights from cognitive psychology, research on creativity, and network theory. As the social network positions of individuals can be mapped quickly and at low cost with modern Web mining tools, our findings may point to a new and readily applicable approach for the efficient and effective identification of lead users in real‐life projects, an aspect that is usually emphasized as the most crucial activity in lead user projects.     

Recombination for innovation: performance outcomes from international partnerships in China

This paper examines the relationship between different types of international partnerships and innovation performance. By drawing on a conceptual framework which outlines how new bundles of transferrable and nontransferrable ownership advantages are created from such partnerships (Collinson and Narula, 2014 ), we analyze empirical evidence from a large‐scale survey of 320 individual company responses from the China‐based operations of foreign multinational firms alongside in‐depth case studies. Our study reveals that different types of collaborative partnerships (cooperative vs. competitive) are associated with different innovation performance outcomes (product vs. process innovation). In addition, we find that a sustainable, reciprocal relationship between collaborative partners can generate superior innovation performance. Contextual factors including the role of government and industry characteristics have an important bearing on innovation performance in collaborative partnerships in China. We conclude with implications for researchers, managers, and policymakers.     

Experience matters: The role of academic scientist mobility for industrial innovation

Research Summary: A learning‐by‐hiring approach is used to scrutinize scientists' mobility in relation to the recruiting firms' subsequent innovation output. Our starting point is that among firm hires, individuals with university research experience—hired from universities or firms—can be particularly valuable. However, conflicting institutional logics between academia and industry makes working with academic scientists challenging at times for firms. We suggest two solutions to this difficulty: hiring “ambidextrous” individuals with a mix of experience of university research and working for a technologically advanced firm, and a strong organizational research culture in the recruiting firm reflected by the presence of a scientist on the top management team. We track the mobility of R&D workers empirically using patent and linked employer‐employee data. Managerial Summary: An important way to make organizations more innovative is hiring individual researchers with the right types of skills and experience. We show that individuals with university research experience beyond their final degree are particularly likely to help boost firm‐level innovation output after hiring compared to R&D workers with other types of skills and experience. However, to obtain good returns to innovation from hiring such individuals, firms need a university research–friendly organizational culture when hiring individuals with university research experience, from either firms or academia.     

Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market

Asset divestitures play a central role in antitrust and competition policy. Despite their importance, empirical evidence on their impacts on market competition is limited. We analyze market power in Alberta’s wholesale electricity market, where transitional arrangements that virtually divested generation assets from large incumbents were put in place during market restructuring in the early 2000’s and expired at the end of 2020. Subsequently, average peak hour prices rose by 120% the year after their expiry. We demonstrate that nearly two-thirds of this increase can be explained by elevated market power from the large suppliers. Further, exploiting variation in the allocation of the divested assets across heterogeneous firms, we demonstrate that market power execution is elevated when the divested assets are controlled by large strategic firms. Our findings highlight the important role that asset divestitures and their allocations can have on market competition. Our analysis also raises concerns over the ability of restructured electricity markets to facilitate sufficient competition through entry and the potential need for regulatory intervention.     

Sources and management of tension in co-opetition case evidence from telecommunications satellites manufacturing in Europe

Co-opetition is filled with tension due to inherent contradictory and opposing forces. In this research, we develop a multi-level conceptual framework that helps to understand key drivers of tension in co-opetition and key approaches to managing the tension. We combine literature-based conceptual arguments and insights from in-depth study of one exemplar case of co-opetition between Astrium (EADS group) and Thales Alenia Space (Thales group) within the sector of telecommunications satellites manufacturing in Europe. Our findings highlight multiple sources of co-opetitive tension at different levels. Further, our research shows that a mixed organization based on both separation and integration of competition and cooperation is helpful to understand and effectively manage tension in co-opetition. This paper offers case-based rich insights on the sources and management of tension and has important implications for the design and conduct of future empirical research.     

Modeling and simulation of order-driven planning policies in build-to-order automobile production

In adopting build-to-order order fulfillment systems, automotive companies strive to better synchronize their production output with market demand. This essentially gives rise to a new paradigm in production planning. Since all business is linked to customer orders, the operational performance is substantially determined by order-driven planning. Therefore, a clear understanding of the associated planning tasks, order promising and master production scheduling, as well as their dynamic interaction is essential. Based on the analysis of the decision situation of order-driven planning in build-to-order settings, we provide a framework comprising separate interlinked quantitative models for order promising and master production scheduling. The focus of the contribution is on the modeling and evaluation of both models in a dynamic setting. The approach is evaluated by means of a simulative analysis using empirical data from the automotive industry. Conclusions regarding the potentials of such systems with respect to customer service, the leveling of resource utilization, and holding are presented.     

Does technological modularity substitute for control? A study of alliance performance in software outsourcing

Although control is presumed to be necessary to curb opportunism, its implementation in alliances can be costly and challenging. Paradoxically, some contemporary firms have counterintuitively developed successful alliances without extensive formal control. A widespread but untested assertion that might help reconcile this contradiction is that technological modularity reduces the need for alliance control. The objective of this study is to develop and test this assertion. Using data from 120 software outsourcing alliances, we show that, process control, outcome control, and modularity independently enhance alliance performance. However modularity and control are imperfect substitutes: modularity lowers the influence of process control but not of outcome control on alliance performance. Our theoretical development and empirical testing of the interactions of alliance control with modularity has significant implications for strategy theory and practice, which are also discussed. Copyright © 2008 John Wiley & Sons, Ltd.     

Co‐creation in Radical Service Innovation: A Systematic Analysis of Microlevel Processes

This empirical paper presents the results of a detailed case‐study investigation of co‐creation in radical service innovation. The rationale for the paper is that detailed interventions must be tracked to offer a realistic account of how co‐creation occurs. This provides a strong empirical contribution to the emerging body of scholars developing the co‐creation paradigm, predominantly characterized by conceptual advances in service‐dominant logic. Our focus is on radical service innovation, which is disruptive in the sector. The overall aim of the paper is to unravel the nature of microlevel processes of co‐creation in radical service innovation. The study adopts sequential analysis to examine co‐creation. Patterns of sequences of actions and interactions associated with 40 incremental developments, involving multiple actors, are investigated. These co‐created innovative developments underpin the emergence of a radical telematics‐based motor insurance service. The findings suggest that the co‐creation path is not simple or uni‐faceted, and the paper unravels the nature of complex patterns of activities and interactions, Our in‐depth systematic analysis illuminates a combination approach with two main patterns of sequences: one dominated by ad‐hoc and enduring independent innovation activities by network actors and one dominated by lead‐firm innovation and interaction activity. The findings advance knowledge of the way co‐creation occurs in radical service innovation. The study results suggest that managerial attention be placed to, first, finding ways to induce independent innovative behavior from network partners and, second, to the development of interaction mechanisms to foster sharing and visualization of such innovation advances.     

The competition–cooperation paradox in inter-firm relationships: A conceptual framework

With a focus on inter-firm relationships involving the simultaneous pursuit of competition and cooperation, we develop a conceptual framework that explicates key paradoxical conditions, paradoxical tension, and performance implications of tension in such relationships. We propose felt tension as the actual manifestation of the paradox and offer insights on critical capabilities necessary to understand and manage the paradox. Our paper extends the paradox literature in the inter-organizational context and provides a set of concepts and propositions designed to stimulate systematic empirical research on the competition–cooperation paradox.     

Pattern Bargaining: An Investigation into its Agency,Context and Evidence

Pattern bargaining stands out as both an under‐researched and controversial subject. This article is an analytical and empirical contribution to this debate. Theoretically, it provides a conceptual framework, which enables analysis to systematically differentiate between distinct forms of pattern bargaining in terms of scope, agency, development and function, which arise from differing contexts in terms of interest configuration, power relations and economic conditions. This framework is used to develop testable hypotheses on pattern bargaining as a mechanism of inter‐industry bargaining co‐ordination. The empirical part of the article examines these hypotheses for collective bargaining from 1969 to 2004 in Austria, which is commonly seen as a paradigm case of pattern bargaining. The article concludes by highlighting the broader implications its findings have from a cross‐nationally comparative perspective.