The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets

This study utilized structural equations modeling (SEM) to explore the positive effects of relationship learning and absorptive capacity on competitive advantages of companies through their innovation performances in Taiwanese manufacturing industry. The results of this study showed that relationship learning and absorptive capacity positively influence upon innovation performances of companies, and further have positive effects on competitive advantages of companies. In addition, this study divided the sample into three groups by the levels of relationship learning and absorptive capacity and found that there was a significant difference of innovation performance among these three groups: ‘Highly Capable Companies’, ‘Medially Capable Companies’, and ‘Lowly Capable Companies’. It is important for ‘Lowly Capable Companies’ to increase both of their relationship learning and absorptive capacity to enhance their innovation performances.     

Networking capability in business relationships — Concept and scale development

In previous research on inter-organizational marketing and supply chain management the processes through which a focal company deals with the dynamic nature of its business relationships is not fully addressed or understood. To address this gap in the literature, this study proposes the concept of networking capability (NC) as the complex organizational capability oriented towards managing business relationships along all their main development stages. The main proposition is that such a NC capability exists and can be measured, for various types of business partners (especially customers and suppliers), and that NC represents an important aspect that influences firm performance significantly. In order to define the NC concept and develop as test a measurement model, this study uses empirical research and integrates it with the existing literature on business networking-related capabilities. This study distinguishes itself from previous research on networking-related capabilities which not only utilize activities and routines at the company level to measure relational capabilities, but incorporate instead emotions and attitudes of managers towards their exchange partners. Our study, on the other hand, develops and tests a measurement model of NC that is consistent with a grounding in the resource-based view of the firm, specifically the dynamic capability view of the firm. It thereby contributes to the theory and practice of relationship management by proposing a conceptualization and measurement model of NC with regard to all main relationship stages and main types of business partners. Our study adopts a three-stage process of scale development, including qualitative and quantitative research. In summary, our empirical research suggests our NC measurement model as reliable and valid with regard to two main exchange partners: suppliers and business customers. Nomological validity of NC construct is also supported through regression model with company performance as the dependent variable.     

Contract research today: Where do we stand?

New insights of empirical studies in contract research do not always conform to those that might be expected as a result of these theoretical studies. Much of the research into the nature and form of contracts has been of a theoretical nature and it is often referred as ‘relational contract’ or ‘incomplete contract’ theory. In comparison, a limited number of empirical studies have been undertaken. This paper will set out the findings of these two major streams of theoretical analysis of contracts and then contrast them with recent empirical research into ‘framework contracts’.     

On leanness, agility and leagile supply chains

In 1999 a paper by Naylor, Naim and Berry on ‘leagility’ was published in international journal of production economics. The paper has attracted over 100 independent citations from over 60 journals of international standing. This paper explores the testing, exploitation and extension of the original work. Via a systematic literature review the notable findings are that the 1999 paper has been exploited in terms of its classification of supply chains into lean, agile and ‘leagile’; those terms have been tested via survey and case based empirical research; has been extended beyond the original stock decoupling point exploitation of lean and agile to encompass other forms of ‘leagility’. This paper concludes that further robust testing of ‘leagility’ and the definitions of leanness and agility are still required to encompass different market sectors and ensure triangulation of research methods.     

On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism

This article suggests that dynamic capabilities can give the firm competitive advantage, but this effect is contingent on the level of dynamism of the firm's external environment. A nonlinear, inverse U‐shaped moderation is proposed, implying that the relationship between dynamic capabilities and competitive advantage is strongest under intermediate levels of dynamism but comparatively weaker when dynamism is low or high. This proposition is tested using data on alliance management capability and new product development capability, two specific dynamic capabilities widely recognized in prior research. Results based on longitudinal key informant data from 279 firms support the account that these dynamic capabilities are more strongly associated with competitive advantage in moderately dynamic than in stable or highly dynamic environments. Copyright © 2013 John Wiley & Sons, Ltd.     

How to Build an AI Climate-Driven Service Analytics Capability for Innovation and Performance in Industrial Markets?

AI climate-driven service analytics capability has been anecdotally argued as a viable strategy to enhance service innovation and market performance in B2B markets. While AI climate refers to the shared perceptions of policies, procedures, and practices to support AI initiatives, cognitive service analytics capability refers to the analytical insights driven by AI climate and augmented by both machines and humans to make marketing decisions. However, there is limited knowledge on the antecedents of such analytics capabilities and their overall effects on service innovation and market performance. Drawing on service analytics literature and the microfoundations of dynamic capability theory, this study fills this research gap using in-depth interviews (n = 30) and a survey (n = 276) of service analytics managers within the AI climate in Australia. The findings confirm the five microfoundations of cognitive service analytics capabilities (cognitive technology, cognitive information, cognitive problem solving, cognitive knowledge & skills, cognitive training & development). The findings also highlight the significant mediating effect of service innovation in the relationship between analytics climate and market performance and cognitive service analytics capability and market performance.     

A process model of the maturation of a new dynamic capability

The literature on dynamic capabilities highlights their importance for gaining competitive advantage. However, existing research fails to explain how a new capability matures into a source of such an advantage. This study addresses this question using a process approach. It examines how this maturation process occurs and develops within a firm to a point where a new dynamic capability becomes institutionalized in an organization. Taking the case of a dynamic synchronization capability, one that enables a firm to coordinate dual innovation strategies, and that matures through the integration of operational sourcing capabilities, our study highlights the role of socio (group interactions) and cognitive (perceptions and interpretations) elements via an interactive learning in this process. The case shows that this process is multi-stage, unfolding across different organizational levels and encounters a series of conflicts that act as triggers for capability maturation. This paper contributes to the literature by focusing on the maturation of a capability rather than the emergence of a new capability, which has dominated prior research.     

Towards a model of dynamic capabilities in innovation-based competitive strategy: Insights from project-oriented service firms

With the growing significance of services in most developed economies, there is an increased interest in the role of service innovation in service firm competitive strategy. Despite growing literature on service innovation, it remains fragmented reflecting the need for a model that captures key antecedents driving the service innovation-based competitive advantage process. Building on extant literature and using thirteen in-depth interviews with CEOs of project-oriented service firms, this paper presents a model of innovation-based competitive advantage. The emergent model suggests that entrepreneurial service firms pursuing innovation carefully select and use dynamic capabilities that enable them to achieve greater innovation and sustained competitive advantage. Our findings indicate that firms purposefully use create, extend and modify processes to build and nurture key dynamic capabilities. The paper presents a set of theoretical propositions to guide future research. Implications for theory and practice are discussed. Finally, directions for future research are outlined.     

The multi-channel challenge: A dynamic capability approach

The maturing of e-commerce, the diffusion of call centres into the B2B space and purchaser demands on price and service are leading to rapid change in the route to market in many B2B sectors, with shifting combinations of channels being offered to the customer in the search for advantage. In this situation managers can no longer rely on the channel resources that they have assembled to provide their extant competitive position. Instead they must be able to combine resources in new ways, gain additional resources and dispose of superfluous resources, and to do this repeatedly and rapidly if they are to compete successfully. The term ‘dynamic capabilities’ has emerged in the strategic management literature for these activities. Using four case studies and the analytic induction approach to data analysis, we identify seven dynamic capabilities for channel transformation.     

控制权激励双重性与技术创新动态能力——基于高科技上市公司面板数据的实证分析

高管激励契约对技术创新的显著影响受到理论界与实践界的普遍关注,但以往研究多以显性激励为主。控制权激励作为一种重要的高管隐性激励契约,在本质上具有双重性,应从非线性视角出发对其与技术创新的关联性进行重新审视。本文基于创新经济学相关理论,运用中国高科技上市公司2007—2010年的平衡面板数据,对高管控制权激励与技术创新动态能力的关联性进行实证检验,结果表明:技术创新动态能力由技术创新投入能力、技术创新产出能力、技术创新转化能力三个维度构成;控制权激励与技术创新动态能力之间存在显著的倒U型关系,即当达到极值之前,控制权激励以积极性为主导从而对技术创新动态能力具有促进效应,但超过此极值,控制权激励的消极性逐渐凸显,转而对技术创新动态能力产生明显的抑制效应。因此,保持适度的控制权激励力度、并对显性激励与隐性激励进行合理配置是提升上市公司技术创新动态能力的理性选择。     

Beating the odds in the innovation arena: The role of market and technology signals classification and noise

Innovation is a risky business. Notwithstanding the attention in research on the determinants of innovation success, the estimates of the extremely high failure rates (ranging from 40% to 90%) have not come down. As a result, new approaches have to be found to address the issues that prevent organizations from reaching innovation success over a longer period of time. In this study, Signal Detection Theory (SDT) is introduced to show that it may be less important to improve innovation practices in companies, than it is to change the nature of the projects that enter the corporate innovation funnel. In our empirical study of 44 innovation projects in the pharmaceutical and electronics industry, we show that pursuing more noisy signals (uncertain technological and market opportunities) is currently beneficial for innovation success. In general, companies allocate too few resources to noisy innovation opportunities. Interestingly, we find a positive, and not an inverted U-shaped, relationship between noise/signal ratios and innovation success. This indicates that there are almost no companies that take too much risk in the current competitive environment and that many can gain from increasing their noise tolerance. The implications from this study are quite counter-intuitive in a sense that ‘risk’ is not the cause of the innovation problems, but may be a solution.     

‘Good’ case research in industrial marketing: Insights from research practice

The purpose of this article is to contribute to the emerging debate about the use of the case methodology in industrial marketing. We conducted a content analysis of the 145 case studies published in three key journals (Industrial Marketing Management, Journal of Business-to-Business Marketing and Journal of Business and Industrial Marketing) over a 10-year period (1997-2006). The findings highlight the dominance of case research in qualitative industrial marketing research. They also lead us to distinguish between three different practices that influence perceptions of ‘good’ case research in this scholarly domain: ‘common’ practice, ‘best practice’ and ‘innovative’ practice. Our contribution lies in problematising what ‘good’ case research is, and showing how research practice - not just methodological literature - has a role in generating methodological conventions in a disciplinary field.     

Customer collaboration,service firms' diversification and innovation performance

To sustain competitive advantage, service firms must adapt to the market environment, often by means of diversification and innovation. While extensive research has focussed on the role of customer collaboration in service firm innovation performance, fewer studies have examined the role of firm diversification in this relationship. This study draws on the resource-based view and dynamic capability literature to explore relationships between customer collaboration, diversification and innovation performance of service firms. A conceptual framework was developed and tested using a survey of 156 mining equipment, technology and services (METS) firms in South Australia, and case studies. The findings indicate that service and market diversification mediate the relationship between customer collaboration and innovation performance. Importantly, our findings demonstrate that customer collaboration has no direct effect on the innovation performance of service firms. The research helps practitioners and policymakers to understand the importance of enhancing collaboration across supply chains to build diversified and resilient to downturns in traditional sectors service economies.     

Stay in or get out the Janus? The maintenance of multiplex relationships between buyers and sellers

Buyers and sellers interact in different ways. They conduct economic transactions but often also engage in social exchanges; they compete to appropriate the value generated throughout the pipeline but often also collaborate in mutual value creation. Increasingly, they show patterns of repeated interaction rather than engaging in single transactions.Most past research investigated interaction modalities within buyer-seller relationships through an ‘or-or’ lens, and considered one modality as prevailing within the relationship at a given moment.In this study, we will develop an ‘and-and’ logic, opening the mainstream view of relationship maintenance to social theories on the structure of economic action and the strategy view of coopetition. We will further examine the implications of dualities and complementarities within buyer-seller relationships in respect of their maintenance over time.     

Value Creation and Value Capture in Open Innovation

Open innovation has attracted a significant amount of attention from scholars and practitioners. Prior research on open innovation has mainly focused on collaborative inventing. However, understanding the processes and outcomes of joint inventing is not sufficient for understanding sustained open‐innovation activities and the competitive advantages of the actors involved in open innovation. Instead, an understanding of value creation and value capture is paramount for advancing our understanding of sustained open‐innovation activities. Open innovation requires collaboration among distributed but interdependent actors who rely on each other’s capabilities for value creation and capture. Value in open innovation is driven not only by actors’ value creation but also by their ability to capture value. While value creation and value capture are discussed in the open‐innovation literature, the advancement of this stream of research is hindered by conceptual ambiguity, especially in relation to the concept of value capture. This article adopts a value perspective on open innovation, offers consistent conceptualizations of value creation and value capture, and outlines potential avenues for further research at the interface of open innovation, value creation, and value capture.     

Realized absorptive capacity and entrepreneurial universities’ organizational change: the role of process innovation practices

Although essential to all institutions, organizational change is a complex and high risk activity. In this paper, we examine how organizations develop and implement capabilities to facilitate organizational change. Drawing on the dynamic capability perspective and a ‘resourcing’ synergy view, we investigate how realized absorptive capacity in terms of transformation and exploitation capability directly affects organizational change, and how process innovation practices act as an effective mechanism that link transformation and exploitation capability with organizational change. To distinguish our analysis, we focus on both an emerging organizational form and an emerging economy context. Specifically, on the basis of a questionnaire survey of 316 academics from entrepreneurial universities in Malaysia, we find that both transformation and exploitation capability are facilitators of organizational change. However, the relationship of transformation capability with organizational change is fully mediated by process innovation practices, while the relationship between exploitation capability and organizational change is partially mediated by process innovation practices. Our research therefore contributes to the dynamic capability perspective of organizational change and absorptive capacity by highlighting the importance of integrating organizational transformation and exploitation capability with process innovation practices in different ways to facilitate organizational change. Our findings and accompanying discussion on how process innovation practices can generate moves towards universities that are more entrepreneurial will also be of interest to university managers and policy makers.     

Exploring the contribution of management innovation to the evolution of dynamic capabilities

Companies that find innovative ways to manage capabilities gain competitive advantages. The results of multiple case studies of capital goods manufacturing companies suggest that management innovation contributes to dynamic capabilities. The findings confirm the importance of sensing, seizing, and reconfiguring as dynamic capabilities. Management innovation differs in terms of whether it contributes to sensing, seizing, or reconfiguring. The findings describe issues of management innovation, such as key change agents and utilization (motivation, invention, implementation, as well as theorizing and labeling), which facilitate sensing, seizing, and reconfiguring. Maintaining capability-driven competitive advantages is not limited to the innovation of products and services, but should also address management innovation that drives dynamic capabilities. The present study relies on a novel conceptualization of dynamic capabilities through management innovation. This conceptualization advances theory-building on the issue of dynamic capabilities.     

营销能力对企业自主创新影响研究

中国企业普遍缺乏自主创新是否与营销能力低下有关,国内外已有研究没有能够很好回答该问题。本文提出了将企业的自主创新分为自主创新欲望、自主创新预期和自主创新绩效相互关联的行为逻辑过程,并建立了营销能力对这三个基本构面影响的理论假说和研究框架。通过企业实际数据验证表明:营销能力对企业自主创新过程存在正向显著影响。这一关系的证实将从营销能力视角,为提高中国企业自主创新的积极性、主动性和持续性提供新的对策研究思路与理论依据。     

Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh

This study aims at shedding some light on the potential impact of agricultural technology adoption on poverty alleviation strategies. It does so through an empirical investigation of the relationship between technological change, of the Green Revolution type, and wellbeing of smallholder farm households in two rural Bangladeshi regions. As technology adoption is not randomly assigned but there is ‘self-selection into treatment’, the paper tackles a methodological issue in assessing the ‘causal’ effect of technology on farm-household wellbeing through the non-parametric ‘p-score matching analysis’. It pursues a targeted evaluation of whether adopting a modern seed technology causes resource-poor farmers to improve their income and decrease the propensity to fall below the poverty line. It finds a robust and positive effect of agricultural technology adoption on farm household wellbeing suggesting that there is a large scope for enhancing the role of agricultural technology in ‘directly’ contributing to poverty alleviation.     

Can systems integration lead to improved performance? The role of strategic alliances

Despite growing research attention to systemic products and systems integration, there is still a dearth of research on the performance benefits that firms can attain from increased systems integration capabilities. We address this research gap using a longitudinal sample of 245 first-tier automotive suppliers and find that an increased systems integration capability positively affects financial performance. By considering the crucial role of manufacturing alliances, we also find evidence that vertical alliances with buyers positively moderate the relationship between systems integration capabilities and performance, while horizontal alliances have a negative moderating effect. These results contribute to the dynamic capabilities literature by providing empirical evidence that systems integration capability is a relevant predictor of firm performance, and expands the current understanding of how system manufacturers should manage their business-to-business (B2B) relationships.