External technology acquisition in large multi-technology corporations

Based on different contractual forms and their associated degrees of organizational integration, a typology of strategies for technology acquisition (sourcing) is constructed. Based on a sample of corporations in Europe, Japan and US, it is shown that external acquisition of technology through various strategies increases in importance in general. Product case studies further show that external acquisition of technology is associated with technology diversification into increasingly costly new technologies. As a result corporations become multi-technological ('multech'). At the same time quasi-integrated corporate systems of innovation arise in which in-house R&D is managed together with a mix of strategies for external acquisition of technology, using various contractual forms. This presents new challenges to traditional in-house R&D management. Technology diversification is moreover shown to be associated with growth of sales as well as with growth of R&D expenditures. A high level of external technology acquisition presents risks that ought to lead companies to consider technology based product diversification.     

A Typology of Reverse Innovation

Reverse innovation commonly refers to an innovation initially launched in a developing country and later introduced to an advanced country. Adopting a linear innovation model with the four sequential phases of concept ideation, product development, primary target market introduction, and subsequent secondary market introduction, this study expands the espoused definition of reverse innovation beyond its market‐introduction focus with reversals in the flow of innovation in the ideation and product development phases. Recognizing that each phase can take place in different geographical locations, the paper then introduces a typology of global innovation with 16 different types of innovation flows between advanced and emerging countries, 10 of which are reverse innovation flows. The latter are further differentiated into weak and strong reverse innovation, depending on the number of innovation phases taking place in an emerging country. This analytical framework allows recasting of current research at the intersection between innovation and international business. Of the 10 reverse innovation flows, six are new and have not been covered in the literature to date. The study addresses questions of ethnocentrism and the continuity of the flow of innovation, and discusses possible extensions of the model with respect to the number of geographical categories and phases of innovation. Four research propositions highlight areas for future investigation, especially in the context of optimizing a firm's portfolio of global innovation competence and capability. The implications for management are concerned with internal and external resistance to reverse innovation. Most significantly, while greater recognition and power of innovation in formerly subordinate organizational units is inconvenient to some, the ability to leverage the potential of reverse innovation makes a firm more likely to succeed in global innovation overall.     

The Methodology of Risk Perception Research

Risk perception is not strictly a matter ofsensory perception, but of attitudesand expectations. As such, it can be studied byreasonably well developed methods of attitudemeasurement and psychological scaling. Suchmeasurement needs to be applied in a pragmaticfashion, however, since the discussions of fundamentalmeasurement and requirements of scale levelsappropriate for various types of statistical analysis hasfailed in establishing a useful basis for empiricalresearch. The paper also discuses samplingprocedures and the response rateproblem. In risk perception work, there is usually abias involving too many respondents withan above average level ofeducation, but that variable tends to be weaklyrelated to risk perception variables. Finally,post-modern claims and their rejection ofquantitative methods are critically discussed.     

Risk perception by industrial radiographers: Hungary and the UK compared

Perceptions of risks from two groups of industrial radiographers, one from Hungary, (n = 45) and from the United Kingdom, (n = 29) were compared by the psychometric method. The comparison was made because both groups were at risk for high doses of ionizing radiation. We found the groups had similar demographic profiles but poor socio-economic conditions of Hungarians were associated with higher levels of emotional distress. Correlation HU-UK for personal and general risks were at a significant level for topics that included lifestyle and radiation risks. Perceptions of risks from radiation were small except for large personal risk from East European nuclear power plants. Knowledge of radiation risk intranationally was correlated positively with personal risk for UK radiographers and negatively for Hungarians. However, average overall risk perceptions from the same topic list for all radiographers did not differ significantly from a group (n = 1461) of UK citizens, though radiographer's risks from radiation were considerably greater. As a new lifesaving intervention it was proposed that radiation risk reduction could be achieved by genetic testing.     

Alternative Specifications of the Institutional Constraints to Economic Growth - Or Why is there a Shortage of Electronic Engineers and Computer Scientists in Sweden?

There is a shortage of engineers and scientists, in particular, electronic engineers and computer scientists, in Sweden. This shortage is argued to be one factor behind the structural weakness of Swedish industry in the 'high tech' area. The conventional explanation of the imbalance in the supply and demand for electronic engineers and computer scientists is focused on the incentives for the individual to demand higher education. These are argued to be low due to the relatively equal income distribution in Sweden and to high taxation. We find that the evidence given in support of this specification of the institutional problem is not convincing. Instead, we specify the institutional problem as having been a lack of opportunities to study electronics and computer science. With recent institutional changes in higher education, this problem is currently being tackled. Looking ahead, we see a new institutional problem emerging with a distinct gender bias. In order to increase the number of degrees awarded in electronics and computer science further, we will need to raise the interest of women in science and technology studies. This requires major institutional changes with regard to both the form and content of the educational programmes.     

Technology analysis and competitive strategy: the case of mobile telephones

This paper examines the validity of the strategic implications draun from the typology of generic strategies presented by Michael Porter. It is argued that the existence of technologies which simultaneously drive cost and performance make it possible to combine cost leadership and difflerentiation strategies, and yet be extremely competitive. The mobile telephone industry provides us with an illustrative empirical example. In this case, rather than a 'stuck in the middle' strategy, we found a 'luck in the middle' strategy.     

Price Expectations and International Quota Trading: An Experimental Evaluation

This paper reports a preliminary experimental test of international quota trading on a market characterized by several dominant traders. Uncertain quota demand and supply imply true market-clearing prices that in general differ from an expected competitive quota price. However, in the experiment the expected price level emerges as a focal point on which the bulk of quota trade contracts are keyed. Thus, incomplete price discovery occurs.     

Network Imitation to Deal with Sociocultural Dilemmas in Acquisitions of Young,Innovative Firms

This article expands current acquisition literature to include sociocultural challenges on inter‐organizational levels following acquisitions of young, innovative firms. Socioculture here denotes network parties' shared values, belief systems, and practices. Three acquisitions illustrate their consequences. The young, innovative firms and their acquirers are part of different networks, have dissimilar motives for pursuing business, and work within different time frames. To potentially improve knowledge transfer and integration, the acquirer can learn from the innovative firm's network interactions; choose targets among its own network parties; organize its governance into a separate business unit; practice reverse value integration from the acquired party; and carefully promote practices that foster innovativeness. The article contributes to research on acquisitions of young, innovative firms through pointing to how values and practices are interlinked in networks, and how the imitation of the acquired party's network interaction may help to sustain its innovativeness and transfer knowledge between the acquirer and acquired party. © 2013 Wiley Periodicals, Inc.     

The core-customer concept

The purpose of this paper is to define and discuss the core-customer concept. This concept examines how a company develops its operations around a single or only a few customers. The customer steers what products and services the supplier develops, which means that it is the customer that dictates the supplier's operations. The core-customer concept may be one method for designing a company's operations, but the paper also aims to challenge companies to consider how they think about customers. The paper contributes to research on customer value and extended service offerings by indicating a business-development strategy based on the customer rather than the supplier's operations. Building a company around a single customer, requires flexibility and competences in finding collaboration partners or in adjusting the organisation to new requirements. The paper refers to these as secondary/supporting competences, while the core competence upon which the company builds its operation is the customer.