Co-opetition and Technological Innovation in Small and Medium-Sized Enterprises: A Multilevel Conceptual Model

Small and Medium-Sized Enterprises (SMEs) face tremendous challenges in their attempt to pursue technological innovations. This paper argues that co-opetition strategy—simultaneous pursuit of competition and collaboration—helps SMEs to develop their ability to effectively pursue technological innovations. We developed a multilevel conceptual model consisting of factors at the industry, dyadic, and firm level to understand the drivers of co-opetition and discuss benefits and costs of co-opetition for SMEs. We believe that this paper will stimulate future conceptual and empirical research on this important topic and has implications for SME managers and policymakers.     

The Drivers of Climate Change Innovations: Evidence from the Australian Wine Industry

This study examined the drivers of climate change innovations and the effects of these innovations on firm outcomes in a sample of 203 firms in the South Australian wine cluster. The results of structural equation modeling analysis suggest that absorptive capacity has a direct effect on climate change innovations, and stimulates knowledge exchanges (KEs) between firms in the cluster. KEs between firms in the cluster in turn directly affect the climate change innovations. The findings suggest a perhaps counterintuitive interrelationship between firm- and cluster-level impacts, in which KEs between firms in the cluster play a partial mediating role in the innovation process. The study further finds that climate change innovations are related to firm performance (FP) and reductions in greenhouse gases (GHGs): mitigative innovations lead to greater GHG reductions while adaptive innovations impact on FP. Contributions of the findings are discussed, as are future research directions.     

Are Exporters More Likely to Introduce Product Innovations?

A firm’s export status may improve its ability to introduce product innovations (learning by exporting). We explore this idea using very rich firm‐level data on Italian manufacturing, which enables us to control for many confounding factors in the exporting–product innovation link (i.e. selection on observable variables). We also make an attempt to address the potential self‐selection of firms into exporting according to unobservable characteristics using an industry–province specific measure of firm distances from their most likely export markets, and of these export markets’ potentials as sources of presumably exogenous variations in export status using an instrumental variables strategy. We find that export status significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger markets (and accordingly firm size) or higher investments in R&D. We argue that heterogeneity in foreign customers’ tastes and needs may explain our findings.     

On the Relationship Between Acquisitions, Divestitures and Innovations: An Explorative Study

Firms increasingly use acquisitions and divestitures to acquire strategic assets such as technological know-how and technological capabilities that can contribute to their innovation potential. This study investigates whether firms combining acquisitions and divestitures have been more innovative than those that did not. It uses an empirical model to examine the relationship between acquisitions and/or divestitures, on the one hand, and the probability of firms to produce innovations, on the other hand. Innovations are distinguished according to products and/or processes that are “new to the firm” as a proxy for all innovations including imitations and those that are “new to the market” which is a proxy for so-called real innovations, excluding imitations. In order to test the model a data set is used that includes 2381 firms and was derived from the Dutch Community Innovation Survey (CIS-2) survey for the years 1994–1996. The estimation results show that divestitures in the services industry affect the probability to innovate positively in case of innovations that are “new to the firm”. In the manufacturing industry, a stable and positive correlation was found between acquisitions and/or divestitures on the hand, and real innovation activities of firms on the other hand.     

Navigating imposed innovation: A decision-making framework

Modern economies are characterized by the rising role of nonmarket actors (e.g., regulatory agencies, social activists, labor unions, media) that are gaining influence over the behavior of for-profit firms. These nonmarket stakeholders use their clout over industry players to impose innovations that require costly changes in business practices or technological trajectories while lacking firm-level economic justification. How should a company respond when it is pressured to adopt a new practice or change its products, while the economic calculations suggest that this is going to be a pure cost? Our study suggests alternative strategic responses to imposed innovation pressures and explores the factors determining the choice of an optimal strategy. Grounding the argument on the outside-in approach to pursuing imposed innovations, we propose a framework of organizational responses to external pressures to innovate, with varying degrees of firm engagement and different levels of cooperation with other industry actors. We also present a decision tree approach, allowing organizational decision makers to analyze the contextual determinants and ultimately arrive at the most appropriate, context-determined strategy.     

Factors influencing the internationalisation of new ventures in the Irish aquaculture industry: An exploratory study

This paper offers exploratory insights into the factors influencing the emergence of new export ventures operating in a low-technology sector: the aquaculture industry—a largely understudied context in international entrepreneurship. Peculiarities of new industries can make them particularly favourable to the creation of new ventures, and yet research has been limited examining the role of industry and environmental conditions in the emergence of international new ventures. As industry context and stage of firm development influences the appropriateness of theories for explaining firm internationalisation, this study in particular seeks to address two research questions: Firstly, what are the factors influencing the internationalisation of new ventures in a low-technology sector: the Irish aquaculture industry? Second, what role does industry structure play in influencing the internationalisation of new ventures in the Irish aquaculture industry? A qualitative methodology is used to explore these research questions using three case studies of new export ventures operating in the aquaculture sector in Ireland.     

管理层更替与收购绩效的关系研究——基于多重因素的调节效应

收购后是否应该对被收购企业的原有管理人员进行更换一直存在争议。本研究探讨了在中国情境下,主并企业在收购后对被并企业管理层更替的程度与主并企业的收购绩效之间的关系。实证分析结果证实了收购后的管理层更替与收购绩效之间存在正相关关系,但这种正相关关系受到多重因素的调节作用影响。具体来说：跨区域收购时管理层更替的程度与收购绩效之间的正相关作用要高于同区域收购的时候;收购双方的业务相关程度越高,则收购后管理层更替对收购绩效的积极作用会越低;被并企业与主并企业相比的相对规模越大,则收购后管理层更替的程度与收购绩效之间的正相关程度会越高;收购前被并企业的绩效表现越好,则收购后对其管理层进行更换的程度越高越有利于主并企业的收购绩效。     

Initial submarket positioning and firm survival: evidence from the British automobile industry, 1895–1970

A firm’s initial choice of its submarket may have a long-lasting influence on its subsequent performance. By examining the duration of firm survival in the British automobile industry between 1895 and 1970, we find that a firm’s initial submarket positioning (defined by the quality level of its first-launched model) influenced its subsequent survival. Additionally, we find that the initial positioning also helped firms to survive a major shakeout, and argue that innovation and path-dependence were two possible channels through which the benefits of initial positioning were felt.     

The determinants of successful R&D consortia: government strategy for the servitization of manufacturing

The Taiwanese government has started to promote the concept of the ??servitization of manufacturing?? with a view to accelerating the servitization of the country??s manufacturing industries. The objective is to enable Taiwan??s industries to progress from manufacturing toward innovation, R&D, and services. The main purpose of this study is to explore the factors determining the formation of R&D consortia among Taiwanese firms. In a literature review and analysis, we distinguish the factors underlying the formation of these R&D consortia into internal and external factors. The findings show that four external factors are positively significant: the degree of industry competition, the appropriability conditions of innovations, government subsidies, and cooperation between firms in different industries. Firm size and firm age are among the internal factors that are significantly positive in the formation of R&D consortia.     

Disentangling CEO compensation: A simultaneous examination of time,industry, and firm‐level effects

Despite decades of research, how CEO compensation is determined remains an enigma. Drawing on agency, managerial hegemony, and institutional theoretical perspectives, we use hierarchical linear modelling—a multilevel analytic technique—to examine how firm‐, industry‐, and time‐level effects drive CEO compensation in US corporations. Results show that while cash salary is mostly driven by firm‐specific factors, equity‐based compensation responds to time‐level effects with firm‐ and industry‐level effects playing a marginal role. We argue that such evidence is consistent with the institutionalization of the CEO compensation determination process through the widespread adoption of benchmark peer‐group comparisons. Such practices underlie economy‐wide changes in CEO compensation that are increasingly disconnected from other fundamental firm‐ or industry‐specific factors. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

The Technological Innovation Journey of Hisense Group

This case illustrates key innovations that took place in Hisense Group, one of the leading companies in the electronic appliances industry in China, from 1990s to 2010. Several factors contributed to its leading position, including strategic positioning, consistent technological innovation over decades, and an efficient administrative system. Since 1992, Hisense has paid close attention to technological innovation. It makes it clear that R&D plays a dominant role in competition. Hisense has continuously invested heavily in R&D and restructured its R&D administrative system, including the organizational framework, incentive mechanisms, project management and teamwork. Hisense’s strategy has resulted in major technological innovations. Hiview chip is a technological breakthrough, which helps the company gain competitive advantages.     

Industry effects and firm effects: No effect is an island

At the heart of business research is the identification and prioritization of the factors that create competitive advantage. Previous studies that decompose observed firm performance into industry and other effects have not considered the higher moments of the performance distribution (i.e., the excess kurtosis), nor estimated the correct null hypothesis level of those effects (i.e., of the industry effect). We address these issues to find that: (1) the industry effect impact on firm performance is likely overstated; and, (2) the interaction between the calculated component firm and industry effects is likely one that includes synergistic effects (i.e., the standard additive model of decomposition is likely mis-specified). We offer a new model, test it, and then discuss the resulting implications.     

企业资源基础论的经济学基础

企业资源基础论的发展很大程度上是由其经济学理论基石所决定的。企业资源基础论产生、依赖或从属于广泛的各门各类的经济学理论。新古典经济学、产业组织经济学和进化经济学是企业资源基础论的三种经济学基础。事实上 ,以不同的经济学为基础进行研究 ,就会产生不同的关于竞争优势的企业资源基础论。因此 ,为企业资源基础论选择一种合适的经济学基础就显得非常重要。     

The internationalization of engineering consulting from a strategy tripod perspective

This research investigates the internationalization of engineering consulting firms. The study draws on the elements of the strategy tripod (industry factors, resources and capabilities, and institutional factors). The internationalization process is examined using a longitudinal single case study of a New Zealand-based engineering consulting firm with 40 years of international experience. The research identifies five phases through which the case firm passed during that period, and highlights the different strategies that were apparent. It is shown that individual actors lead to an adjustment of the modes of operation and overall play a significant role for the internationalization of engineering consulting firms.     

From new-product development to commercialization through networks

The research on research and development (R&D) networks is plentiful but network relations in commercialization of innovations attract surprisingly little attention. This study analyzes how firms combine resources and utilize their relations in order to ensure the success of their innovations. The theoretical basis combines literature on innovation, industrial networks, and innovation networks. The study includes two cases on commercialization networks. The results indicate that an innovating firm needs resources to engage in customer education, distribution, marketing communication, relationship mediation, and credibility building when moving from R&D tasks to commercialization tasks. To acquire these resources, the firm needs to experience changes in network relations. Accordingly, the innovating firm needs particular commercialization competence in terms of accessing, mobilizing, and organizing relational resources.     

Base-of-the-Pyramid (BOP) orientation and firm performance: A strategy tripod view and evidence from China

The Bottom of Pyramid (BOP) market in developing countries represents an enormous market opportunity. Serving the BOP segment, however, incurs significant risks and costs because BOP consumers are deprived of income and literacy. It remains unclear whether or not serving this market segment would benefit firm performance. Based on related literature, we propose a new construct – BOP orientation, and examine its impact on firm performance and an operating mechanism of such effect – the mediating role of bricolage innovation strategy that emphasizes recombination of existing resources to solve the unique problems faced by BOP consumers. Drawing on the strategy tripod view, we also investigate the contingency effects of both institutional and industry environments in an emerging economy. We collected survey data to test the conceptual framework from 238 firms in China, the world’s second largest BOP market. The results support a positive relationship between BOP orientation and firm performance and confirm that the performance impact of BOP orientation is channeled through bricolage innovation strategy. Further, we find that the effect of BOP orientation is contingent on both the institutional factors and the industry conditions. Specifically, government support strengthens while legal inefficiency weakens this effect; competitive intensity strengthens the effect, while technological uncertainty has no moderating role on this relationship. Contributions to extant literature and useful guidelines for firms of our research are discussed.     

Trade, wages, and the political economy of trade protection: evidence from the Colombian trade reforms

Worker industry affiliation plays a crucial role in how trade policy affects wages in many trade models. Yet, most research has focused on how trade policy affects wages by altering the economy-wide returns to a specific worker characteristic (i.e., skill or education) rather than through worker industry affiliation. This paper exploits drastic trade liberalizations in Colombia in the 1980s and 1990s to investigate the relationship between protection and industry wage premiums. We relate wage premiums to trade policy in an empirical framework that accounts for the political economy of trade protection. Accounting for time-invariant political economy factors is critical. When we do not control for unobserved time-invariant industry characteristics, we find that workers in protected sectors earn less than workers with similar observable characteristics in unprotected sectors. Allowing for industry fixed effects reverses the result: trade protection increases relative wages. This positive relationship persists when we instrument for tariff changes. Our results are in line with short- and medium-run models of trade where labor is immobile across sectors or, alternatively, with the existence of industry rents that are reduced by trade liberalization. In the context of the current debate on the rising income inequality in developing countries, our findings point to a source of disparity beyond the well-documented rise in the economy-wide skill premium: because tariff reductions were proportionately larger in sectors employing a high fraction of less-skilled workers, the decrease in the wage premiums in these sectors affected such workers disproportionately.     

企业资本结构和供应商融资:基于违约风险的考察

以2003—2009年间的1757个公司年度为样本,考察企业资本结构对供应商融资(应付账款和预付账款)的影响。研究发现:企业的资本结构(财务杠杆)对应付账款比例具有显著的负向效应;企业的资本结构(财务杠杆)对预付账款比例具有显著的正向效应;投资者保护程度较强的企业(国有控股企业和大规模企业)能够获得更多的供应商融资。     

Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance

This research contributes to the entrepreneurial orientation (EO)–performance literature by offering a wider picture that includes two intermediate steps: organizational learning capability (OLC) and innovation performance. This study also provides an explanation of intra‐industry firm performance differences by focusing on EO. We use structural equation modeling to test the hypotheses on a data set from Italian and Spanish ceramic tile producers. The results support our conceptual model and demonstrate its usefulness in explaining differences in intra‐industry firm performance. Findings suggest that OLC and innovation performance should be enhanced by managers in order to boost the positive EO–performance link.     

Validating the innovation prowess framework for firms in emerging economies facing tight regulatory regimes: the case of Indian pharmaceutical firms

ABSTRACT

The purpose is to investigate the generalizability of an innovation prowess framework, developed for firms in developed countries, for firms in emerging economies facing tight regulatory regimes. Using a qualitative approach we investigate key informants in six firms, supported by secondary documents and the business press, as well as in-depth organizational observation within one organization. Academic evidence suggests there are four factors – one external (industry structure) and three internal (economic structure of the firm, organizational structure of the firm, and historical development of the firm) – that drive the innovation prowess of firms. While firms in developed economies take such factors as the norm, firms in developing countries face evolving norms and internal challenges to comply with tighter regulatory regimes; however, the research suggests that impact of these four factors appear to be similar to those faced by firms in developed countries. Our research contributes by seeking to broaden our understanding of innovation prowess in emerging country contexts. Innovation in these markets is generally less well understood, especially as they adapt to the tighter regulatory regimes required to compete in global markets (e.g. WTO).