Building External Manufacturing Capability in Emerging Markets: Honda's Knowledge Transfer and the Role of Local Suppliers' Responsiveness

ABSTRACT

This study explores Honda's knowledge transfer to local suppliers in Vietnam. It argues that local suppliers' responsiveness can be a supplementary condition to absorptive capacity when considering buyer-supplier relation of knowledge transfer. In Vietnam where local suppliers were less capable or limited, Honda has exploited the supplier responsiveness to develop external manufacturing capabilities which contributed to Honda Vietnam's performance. Responsiveness enabled Honda to use a hands-on approach as an effective mechanism to transfer key principles and tacit technical knowledge to local suppliers in the initial stages of establishing a relationship. As a result, Honda is both beneficial from suppliers' specific absorptive capacity and continuous responsiveness.     

Knowledge Management in Central and Eastern Europe Through Network Development and Boundary Spanners

ABSTRACT

Central and Eastern European (CEE) countries have become a popular research venue due to their transitioning into market based economies. For international business scholars this represents a unique opportunity, as one of the key driving forces is the privatization of state-owned enterprises. Due to the market's great potential, many multinational enterprises are entering CEE countries and realizing that a transfer of market knowledge (i.e., customer tastes, distribution methods/channels, etc.) from the host country to the multinational, as well as from the multinational to the host country (i.e. technology, management/marketing capabilities, etc.), is essential.

The lack of host country skills have made knowledge transfer difficult. Also, the tacit nature of some of the most important knowledge embedded within the host country's organization and the multinational makes knowledge diffusion a daunting task to manage. However, successful knowledge management will assist in positive performance measures so researchers are examining knowledge management and its constructs (acquisition, transfer, conversion, and application).

Our research explores the linkage between knowledge management and performance in host country firms in a CEE country, Croatia. We also explored antecedents of successful knowledge management that of networks and human resources (boundary spanners). Finally we explored whether cultural distance moderates these relationships in the knowledge management process.     

International Collaboration and Knowledge Transfer among Universities and Firms Affecting Regional Competitiveness

This article will discuss how international collaboration and knowledge transfer helps to encourage regional competitiveness by focusing on the dynamic and complex relationship between universities and firms in the global business environment. The importance of international business, economics, and geography in facilitating sharing of knowledge is discussed by reviewing the book written on cooperation, clusters, and knowledge transfer. The key areas of cooperation processes and cluster development that encourage knowledge acquisition are examined in terms of academic research of international entrepreneurship and innovation, but also practitioner experience about global best practices. © 2015 Wiley Periodicals, Inc.     

The Impact of Involvement,Perceived Moral Intensity,and Satisfaction upon Trust in Non-Profit Relational Contexts: Processes and Outcomes

ABSTRACT

This study applies the basic concepts of relationship marketing, including involvement, knowledge, moral intensity, satisfaction and trust in the non-profit environment, specifically in a university setting. These relational concepts are employed in the development of a relational model used in an exploratory investigation. Results indicate significant relationships between the constructs, emphasizing the importance of relationship management for non-profit and public sector entities. Results, managerial implications and research implications are included.     

How organisations generate and use customer insight

Abstract

The generation and use of customer insight in marketing decisions is poorly understood, partly due to difficulties in obtaining research access and partly because market-based learning theory views knowledge as a fixed asset. However, customer insight takes many forms, arrives at the organisation from increasingly diverse sources and requires more than mere dissemination if it is to be useful. A multiple case study approach is used to explore managerial practices for insight generation and use. Multiple informants from each of four organisations in diverse sectors were interviewed. Findings reveal the importance of value alignment and value monitoring across the insight demand chain, to complement the information processing emphasis of extant research. Within the firm, the study suggests the importance of customer insight conduct practices including insight format, the role of automation and insight shepherding, to complement the much-researched process perspective. The study provides a basis for assessing the effectiveness of insight processes by both practitioners and scholars.     

Determinants of knowledge transfer strategy in franchising: integrating knowledge-based and relational governance perspectives

This study presents an integrative model on the franchisor's choice of knowledge transfer strategy by deriving hypotheses from the knowledge-based theory and the relational governance view. First, based on the knowledge-based view, tacitness of system-specific knowledge influences the choice of the knowledge transfer strategy of the franchisor. The higher the degree of tacitness of knowledge, the more knowledge-transfer mechanisms with a high degree of information richness (HIR) are used, such as training, seminars, visits and formal meetings, and the more likely the franchisor chooses a personalization strategy (P-S). Conversely, the lower the degree of tacitness of system-specific knowledge, the more knowledge transfer mechanisms with a low degree of information richness (LIR) are used, such as reports, emails, intranet, databases, and the more likely the franchisor chooses a codification strategy. Second, based on the relational view of governance, trust influences the choice of knowledge transfer strategy of the franchisor. If trust reduces relational risk, more trust reduces the franchisor's use of HIR-knowledge transfer mechanisms and increases the franchisor's use of LIR-knowledge transfer mechanisms. If trust increases knowledge-sharing between the network partners, it increases the franchisor's use of both HIR- and LIR-knowledge-transfer mechanisms. The hypotheses are tested by using data on the use of the P-S in the Austrian franchise sector. The data provide some support for the hypotheses. A new model on the franchisor's choice of knowledge transfer strategy, using knowledge-based theory and relational view of governance is developed, and specifically, the knowledge-based view of Windsperger and Gorovaia [(2011). Knowledge attributes and the choice of knowledge-transfer mechanisms in networks: The case of franchising. Journal of Management and Governance, 15(4), 617–640] is extended by considering trust as additional explanatory variable of the knowledge-transfer strategy.     

Why Is the Progress of Marketisation Slow in Russia?

Summary

The paper highlights economic and socio-cultural conditions representing constraints for marketisation of Russia and explains why marketisation has been out of step with other highly significant macro- and microeconomic developments. Marketisation is unlikely to make headway unless economic conditions and market requirements will make its importance unequivocal to all market agents. Standard marketing techniques and activities require appropriate adaptations in an ideologically neutral manner. Consequently, the transfer of know-how may play only a very limited role following the discrepancy in business conditions in developed market economies and transition economies.     

Differences in consumer price knowledge between Germany and Finland

Abstract

Price knowledge studies are a key to understanding behavioural pricing strategies. Consumer price knowledge is an ongoing concern in the literature. It is also generally acknowledged that price awareness is subject to cross-cultural differences. This is important because the retailer market is dominated by global players who use standardized marketing-mix instruments. However, there are no studies about price knowledge between countries. This study examines differences in price knowledge between German and Finnish consumers. The results show that Finnish consumers were able to give at least some price estimate for a product more often, but the estimates of German consumers were more accurate. Due to data limitations of our study more research is needed about cross-cultural price knowledge.     

Regional Bank–Industry Relations during the Mid-Nineteenth Century: Links between Bankers and Manufacturing in Sheffield,c.1850 to c.1885 1

This article examines the relationships between banks and manufacturing industry in mid-nineteenth century Sheffield. It investigates the knowledge base and connections of the banks' directors and assesses the extent to which Sheffield banks were part of a regional information network concerning both investment opportunities and potential borrowers' creditworthiness. The findings reveal that close ties existed between the bankers and their customers. These took a number of forms, from interlocking directorships to ownership of local firms. A financial/industrial network appears to have existed, facilitating information flows and business contacts of vital importance in the provision of finance to local manufacturers. Moreover, the banks examined appear to have preserved impartiality when dealing with manufacturing customers as a whole and, more importantly, those in which directors were involved.     

Servbrand Framework: A Business-To-Business Services Brand Equity Framework

ABSTRACT

Purpose: The research reported on here set out to develop a tailored branding model for business to business (B-to-B) services by applying the brand resonance pyramid to a selected B-to-B services context.

The brand resonance pyramid was developed based on research that was predominantly consumer product or individual brand oriented, though one of the objectives when the model was developed was that “the model had to be versatile and applicable to all possible kinds of brands and industry settings. As more diverse applications of branding continued to emerge for products, services, organizations, people, places, and so forth, the model needed to have far-ranging relevance”. The brand resonance pyramid therefore had to be applicable to any context, including B-to-B services contexts. However, consumer goods branding strategies are not directly transferable to B-to-B or services markets and there are documented differences between the B-to-B and business-to-consumer (B2C) markets and products and services contexts. There is also doubt regarding the validity of the contention that the brand resonance pyramid should be applicable to the B-to-B sector.

Methodology: Using an interpretivist qualitative research approach and an exploratory research strategy, the Servbrand framework was developed empirically by applying the brand resonance pyramid to a selected B-to-B services context. Fourteen useful in-depth interviews were obtained from appropriate and information rich participants that represented more than 14 of the 89 organization that were included in the selection frame. Some of the participants were responsible for the relevant decisions of more than one organization.

Findings: The results from the study reported on here (summarized as Figure 5) prompted the inclusion of a people dimension and elevated the importance of relationships in an amended B-to-B services brand equity framework. The people brand-building block includes the dimensions of attitude and demeanor, personality and values, personableness, product knowledge and client knowledge. Relationships, as the ultimate aim of the framework, concern both interpersonal relationships and partnerships.

The article presents a conceptual framework to guide effective brand building strategies in a selected B-to-B services context. Researchers can use the framework to test its applicability in other contexts, which will contribute to the amendment of a significant brand equity management framework.

The Servbrand framework can assist marketing practitioners to improve the effectiveness of strategic brand management for B-to-B services.

Contribution: The empirical research contributes to three areas of brand equity research, namely: 1) the offering type – by investigating service offerings rather than product offerings; 2) the brand level – by investigating organization-level brands rather than product-level brands; and 3) context – by investigating a B-to-B context rather than a B2C context. A revised brand resonance pyramid is proposed and called the Servbrand framework.     

The effects of trust and shared vision on inward knowledge transfer in subsidiaries’ intra- and inter-organizational relationships

Drawing on the social capital literature, this study examines the relationship between trust and shared vision and inward knowledge transfer to subsidiaries from both the subsidiary's corporate and external relations. Previous literature has acknowledged and theoretically suggested that potential differences may exist in knowledge transfer between intra- and inter-organizational relationships, it has not yet been well examined empirically. The study provides some initial insights into the literature by theoretically suggesting that the effects of trust and shared vision on inward knowledge transfer differ in importance in intra- and inter-organizational relationships. Hypotheses were tested on data collected from 75 Western MNCs’ subsidiaries located in China. The study represents an effort towards a better understanding of the context where trust and shared vision are more of vital importance.     

Buyer-Seller Relationships in Transition

ABSTRACT

Two Russian case studies have been investigated by adopting a relationship marketing perspective and adding a new concept, that of relationship knowledge. Relationship knowledge is assumed to be the main condition for relationship success in terms of and is visible through the more efficient execution of activities and implementation of new resources. The conclusion is that in Russia, the inadequate levels of trust, commitment and business activity lead to low external knowledge of the counterpart, which hampers development.     

How Knowledge Management Capabilities Help Leverage Knowledge Resources and Strategic Orientation for New Product Advantages in B-to-B High-Technology Firms

ABSTRACT

Purpose: Current understanding of how new product development (NPD) teams use knowledge management capabilities to acquire, disseminate, and apply knowledge resources to achieve competitive advantages is limited by a lack of compelling theory supported by empirical evidence. This study provides a theoretical framework and empirical validation for how an NPD team manages knowledge resources and strategic orientation to enhance its knowledge management capabilities, which, in turn, lead to business-to-busienss (B-to-B) new product advantages.

Methodology/approach: A total of 100 sets of data was collected from B-to-B firms in U.S. high-tech industries. In order to validate the proposed hypotheses, we estimated the main effects using path analysis in AMOS, and tested for interaction effects using interaction term regressions.

Findings: Our findings show that the two dimensions of NPD knowledge management capabilities—acquisition and application—are important but differential drivers of product quality superiority and product differentiation. In testing whether NPD management capabilities matter for two product advantage constructs, we confirmed that product quality superiority can be enhanced by both NPD knowledge acquisition and application capabilities, whereas product differentiation can be increased strongly by NPD knowledge acquisition capabilities.

Research implications: Our research confirms the importance of strategic orientation as a driver of NPD knowledge management capabilities, which enhances understanding of how strategic factors operate under a resource-based view. Our results further provide direct empirical support for the knowledge-based view of firms, in that an NPD team’s abilities to manage and deploy knowledge-based resources by acquiring and applying NPD knowledge lead to competitive advantages, for outcomes of quality superiority and differentiation.

Practical implications: Our findings have relevance for managers in three ways. First, NPD knowledge acquisition and application capabilities have differential impacts on product quality superiority and differentiation. Second, in exploring NPD resource factors as antecedents, managers should manage levels of NPD market intelligence, resource tacitness, and NPD resource deployment differentially to directly improve NPD teams’ acquisition and application capabilities. Third, managers should not underestimate the importance of market and technological orientations in enhancing NPD knowledge management capabilities. Market orientation drives both NPD knowledge acquisition and application capabilities; technological orientation drives NPD knowledge application capabilities. Originality/value/contribution of the paper: An NPD team’s knowledge management capabilities generally, but differentially, mediate the relationships of knowledge resources and strategic orientation factors with new product competitive advantage. However, simply enhancing NPD knowledge management capabilities is not a panacea for developing product competitive advantage in B-to-B settings, because of their differential effects.     

The ‘disguised’ foreign investor: Brands,trademarks and the British expatriate entrepreneur in Brazil

Abstract

This article examines the impact of the British expatriate entrepreneur, and his processes of knowledge transfer, on the industrialization and economic development of Brazil between 1875 and 1914. It focuses on the textiles industry, and combines original trademark data with conventional trade and investment statistics, and also case study analysis about firms and their entrepreneurs. It argues that British investment in Brazil was higher and had a deeper impact on economic development than considered by existing research, as expatriate entrepreneurs ‘disguised’ a substantial amount of foreign investments by acting as shareholders and top managers of newly established local businesses.     

Multinational mining companies,employment and knowledge transfer: Chile and Norway from ca. 1870 to 1940

Abstract

This article compares employment at multinational mining companies in Chile and Norway from ca. 1870 to 1940. I find that multinationals in Chile recruited foreigners to managing and middle-management positions, while Norwegian workers were heavily involved in management of multinationals in Norway. The exclusion of Chileans encouraged enclave tendencies and prevented knowledge transfer, while strong networks were created between multinationals and the local industry in Norway through job switching. Evidence suggests that local workers were employed if they were qualified and that discrepancies in institutions stimulating capacity building in the two countries largely explain the different employment patterns.     

Consumer Knowledge of Country of Origin of Fresh Food at Point of Purchase

ABSTRACT

Store-exit interviews were used to examine knowledge of country of origin (COO) of fresh meats, fruits and vegetables, and relative knowledge of price. Shoppers were certain of COO for 38% of purchases and of price for 53% of purchases. Overall, knowledge of COO for fresh foods was greater than previously reported for durables and processed foods. However, extent of knowledge varied somewhat by food category, and more noticeably for specific food items within categories. This study has implications in terms of provision and clarity of COO labeling of fresh foods, and associated potential for competitive advantage.     

Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As

Transfer of knowledge-based resources from acquirers to the acquired units has been ubiquitously emphasized as an important driver of post-acquisition integration. Equally emphasized is the importance of recipient unit’s absorptive capacity for the success of knowledge transfer and the facilitating role of HRM practices in developing absorptive capacity. In this paper, we integrate different streams of research on post-acquisition integration, knowledge transfer, absorptive capacity and HRM practices. Different from most past research, we pay attention theoretically and empirically to the multi-dimensional nature of both knowledge transfer and absorptive capacity. We test our hypotheses on a sample of acquired Chinese subsidiaries of 181 multinational corporations from seven countries. We find that successful inflow and implementation of knowledge require the acquired unit to have distinct types of capabilities each of which can be developed by a specific HRM practice. These results contribute literature by recognizing absorptive capacity as a manageable capability and identifying how different components of this capability could be developed by specific HRM practices. Furthermore, our results shed light on human side of M&As by examining how companies can foster post-acquisition integration by fine-tuning the absorptive capacity of acquired units.     

Innovation and re‐innovation: A role for the user

Various models of the innovation process, from the “traditional” to the more recent, are examined in this paper which focuses on the implications for the role of the user in the innovation process. The author points out the need for greater recognition of the importance of users as active participants in the innovation process. In many industrial sectors user‐need specification and product development involve more than simply a passive role for the user and innovatory success is associated with active user involvement in product specification, design and development.     

Information Privacy and Online Behaviors

Abstract

This study explores several key potential influences of privacy concerns on consumers' attitudes toward websites. Using a sample of 221 subjects, it was found that privacy concerns could decrease the likelihood of purchasing online. This finding highlights the importance of privacy concerns and contributes to the understanding of Internet marketing in that the early literature incompletely addresses the issue of consumer privacy empirically, which represents a potential threat to the growth of e-commerce. Thus, online marketers should be careful not to abuse (e.g., distribute it without permission) the personal information of consumers. In sum, it is advised that online marketers assure the public that consumer information will not be tracked and traded without the individual consumer's knowledge or consent.