Und Aktion! – Konzeptualisierung der Rolle individuellen Akteurshandelns in sozio-technischen Transitionen am Beispiel der regionalen Energiewende im bayerischen Allgäu

The German “Energiewende” is one of the most ambitious societal transition projects in recent times. It causes fundamental political and economic changes in the energy system in Germany and the whole of Europe. These great societal and technological changes of the current energy regime are of particular interest for research on sustainability transitions. In this research strand, however, the role of individual agency for socio-technical transitions is hardly considered. What drives actors who decisively pushed the regional energy transition? Which strategies and types of action do they choose to foster the transition? How do individual strategies and actions depend on the socio-technical system environment and how does the socio-technical system environment react to the individual actions? To analyse these questions, we apply the Human-Environment Systems (HES) Framework (Scholz, 2011) for the first time to socio-technical systems. Based on an exemplary analysis of the regional energy transition in the Allgäu region in Germany, we propose an adaptation of the HES Framework for socio-technical systems. Finally, we reflect on how the adapted HES framework for socio-technical systems can contribute to a better understanding of individual agency in systemic transitions.     

Compartmental market models in the digital economy—extension of the Bass model to complex economic systems

Compartmental models are widely used in epidemiology, engineering, and physics to describe the temporal behavior of complex systems. This paper presents how compartmental models may be applied to the digital economy—more specifically, how the Bass model can be extended to more complex economics systems such as markets with customer churning, competition, multisided platforms, and online games. It is demonstrated that it is straightforward to establish the equations describing the various economic systems under study, however, the equations are often too complex to be solved analytically in the general case. Though the paper presents simple and idealized cases, the solutions may, nevertheless, uncover important strategic aspects that otherwise may be hidden by complexity in the general case, for example, the reasons for slow initial market growth. The paper also discusses how the developed models may be used to evaluate digital economic market evolution and business policy.     

The yin and yang of outside-in thinking

An outside-in approach to making a marketing strategy starts with the leadership team stepping outside the boundaries and constraints of the organization as it is, and looking first to the market for guidance: How and why are the needs and behaviors of current and prospective customers changing? What can we do to solve their problems and help them succeed? What new competitors are poised to meet these needs? What moves by others in the ecosystem could help or hurt us? Conversely, inside-out approaches start with the existing resources and capabilities of the organization and ask how they can best be applied and leveraged. Superior strategies emerge when these two approaches are integrated in an iterative, learning process.     

The ‘visible hand’ behind cooperation in franchising: A model of franchisor practices that influence cooperation within social networks

Although scholars recognise that social networks within marketing channels can enhance cooperation (the implementation of joint goals), research provides a deficient understanding of how suppliers can efficiently manage them. Our study investigates the ‘visible hand’ behind franchising cooperation by asking: How do franchisors build cooperation within franchise systems? Using multiple case study research on retail franchises recognised for high-quality cooperation, our study builds a model of how franchisor practices maintain and increase cohesive ties that foster cooperation within the franchising community; a type of social network nested within the franchise system. This model is underpinned by social capital theory, self-categorisation theory, and the constructs relational norms and behaviour from research on marketing channels. Our study provides insight into the key organisational, social network, and individual agency drivers of cooperation within branding marketing channels. This provides an understanding of: 1) how centralised organisational practices interact with individual agency to maintain efficient cooperation, and 2) heterarchical processes to improve cooperation efficiency.     

The design process — Does it exist?

There are many published models for the process of design or open-ended problem solving. Some of these are represented in diagrammatic form while others are implicit within the text of the publication. Where do these models come from? Upon what evidence are they based and how accurately do they describe the pupil designer? The idea that we should teach pupils a procedure for completing design and make tasks or a strategy for solving problems is an attractive one but is there only one procedure and is this easily transferred to a wide variety of tasks? This article examines the similarities in a variety of published models for the design or problem-solving process including those implicitly described in the development of the National Curriculum for Design and Technology in England and Wales. It finds a surprising consensus of opinion among authors but suggests that there is little research evidence to support their claims.     

Marketing Intelligent Systems for consumer behaviour modelling by a descriptive induction approach based on Genetic Fuzzy Systems

In its introduction this paper discusses why marketing professionals do not make satisfactory use of the marketing models posed by academics in their studies. The main body of this research is characterised by the proposal of a brand new and complete methodology for knowledge discovery in databases (KDD), to be applied in marketing causal modelling and with utilities to be used as a marketing management decision support tool. Such methodology is based on Genetic Fuzzy Systems, a specific hybridization of artificial intelligence methods, highly suited to the research problem we face. The use of KDD methodologies based on intelligent systems like this can be considered as an avant-garde evolution, exponent nowadays of the so-called knowledge-based Marketing Management Support Systems; we name them as Marketing Intelligent Systems. The most important questions to the KDD process-i.e. pre-processing; machine learning and post-processing-are discussed in depth and solved. After its theoretical presentation, we empirically experiment with it, using a consumer behaviour model of reference. In this part of the paper, we try to offer an overall perspective of how it works. The valuation of its performance and utility is very positive.     

Leveraging affiliations by marketing to and through associations

Associations offer a wide range of benefits to their members and thus offer a rich source for understanding relationship marketing practices. Yet, the marketing academic literature is devoid of any frameworks that help us understand the process of marketing to and through associations at the firm level. What are the appropriate dimension(s) of characterizing associations, and how might they be best classified? What are organizational factors that foster or hinder such characterizations, and, what are their consequences and implications?Based on literature review and field interviews with association executives and related exploratory research, we uncover “affinity strength,” or members' attachment to the association, as the key dimension distinguishing associations. We then test to determine antecedent factors (association systems characteristics) that foster or hinder affinity strength as well as its consequences and implications. The major study involved a survey of executives of a wide range of associations, selected from the Encyclopedia of Associations.Certain association systems characteristics do predict affinity strength. Also, affinity strength's relationship with some of the antecedents as well as consequential variables was shown to be stronger or weaker, contingent upon the type of association (i.e., Professional, Cause-based, Common Interest, or Demographic) being considered. Overall, however, attributes of associations (e.g., association systems and outcomes), rather than association types, were more critical in explaining several phenomena pertaining to marketing to and through associations.     

Do Firms Need a Custom-Designed New Product Screening Model?

Organizations have traditionally taken a variety of approaches to screening new product ideas. The use of a formal evaluation process to support screening decisions can reduce the costs and risks associated with product development. Although making good new product choices is vital, many managers have not applied analytical screening models because these models have not been customized to reflect the particular character of their firm and industry. In a study of how managers from different types of companies screen new product proposals, Ulrike de Brentani finds that the essential criteria determining new product selection do not differ radically among firms. This indicates that managers can potentially benefit from applying an existing formal evaluation model that encompasses the critical factors generally applied when making new product evaluation decisions, even if that model has not been customized for their specific application.     

The long-run diffusion and techno-economic performance of national telephone networks: a case study of Ireland, 1922–1998

The telephone is one of the most widely used technologies in the advanced industrial economies, typically achieving a household penetration rate in excess of 90%. Over the course of this century, the plain old telephone system (POTS) has become a critical techno-social infrastructure for all sorts of economic, social and personal interactions. The question arises as to what has driven the widespread diffusion of the telephone? How can we describe the adoption of telephony as a core element in economic and social affairs in modern societies? In particular, how can we account for the great disparities in the rate and pace of the diffusion patterns of POTS, taking account of different national and historical contexts? This paper critically interrogates influential universal models or `theory-led’ explanations of the diffusion of telephone systems, especially their capacity to account for the empirically observable national variations. The authors test these models with respect to the historical trajectory of telecommunications development in Ireland, drawing on unique time-series data related to the actual patterns of telephone adoption, use and utility. The authors also re-assess the extent to which existing diffusion models throw some light on aspects of observable diffusion processes and patterns. A key conclusion from the approach adopted here is that in themselves, abstract deductive models are at best unsatisfactory. Whilst a combination of such `universal’ factors derived from more deductive models may be useful in elucidating different parts of the story, they are not sufficiently nuanced or adequate to describe or frame the complex stories of different national historical experiences. With the Irish case study we have attempted to illustrate the value of a historical and empirically based understanding of the socio-economic, political or institutional factors which have served to shape the development of telecommunications services and policy in Ireland.     

The disruptor's dilemma: TiVo and the U.S. television ecosystem

Research summary: Firms introducing disruptive innovations into multisided ecosystems confront the disruptor's dilemma: gaining the support of the very incumbents they disrupt. Through a longitudinal study of TiVo, a company that pioneered the Digital Video Recorder, we examine how these firms may address this dilemma. Our analysis reveals how TiVo navigated coopetitive tensions by continually adjusting its strategy, its technology platform, and its relational positioning within the evolving U.S. television industry ecosystem. We theorize how (1) disruption may affect not just specific incumbents, but also the entire ecosystem; (2) coopetition is not just dyadic, but also multilateral and intertemporal, and (3) strategy is both a deliberative and emergent process involving continual adjustments, as the disruptor attempts to balance coopetitive tensions over time. Managerial summary: New entrants confront a dilemma when they introduce a disruptive innovation into an existing business ecosystem, viz., how can they gain the support of the incumbents that their innovation disrupts? Confronting this “disruptor's dilemma”, the disruptor must consider several issues: How might it pitch its innovation to attract end customers and yet reduce the threat of disruption perceived by ecosystem incumbents? How can the innovation be modified to fit into legacy systems while transforming them? Based on an in‐depth analysis of TiVo and its entrepreneurial journey, we explore the strategies disruptors can deploy to address these issues. Copyright © 2015 John Wiley & Sons, Ltd.     

Your new product development (NPD) is only as good as your process: an exploratory analysis of new NPD process design and implementation

Given industry competitiveness, how do firms' new product development (NPD) process designs differ when responding to an innovation mandate? How do NPD design elements differ across firms when implementing NPD processes? These design elements are strategic business unit (SBU) senior management involvement, business case content, customer interactions, and cross‐functional integration. What are the consequences of different combinations of NPD process design elements for innovation productivity? We explore these questions via a collective case study of newly implemented NPD process designs at three different SBUs of a major US‐based international conglomerate, 1 year after receiving the mandate to grow through innovation. Our analysis suggests that industry competitiveness and firm characteristics influence the NPD process design as SBUs employ distinct combinations of NPD design elements. The differential emphasis on design elements leads to variation in process design and divergence in innovation productivity.     

Overlap of US FDA residue tests and pesticides used on imported vegetables: Empirical findings and policy recommendations

In the United States, the Environmental Protection Agency (EPA) registers pesticides and sets crop-specific tolerances while the Food and Drug Administration (FDA) enforces EPA regulations by testing plant-based foods for pesticide residues. Pesticide treatment histories are almost always unknown, especially on imported produce, posing an empirical question: to what extent do FDA’s residue testing methods used on imported produce correspond to the pesticides used on the crops? In this article I show that FDA residue testing would have missed residues of the majority of pesticides used on two crops exported to the US from Costa Rica in 2003, suggesting that FDA residue testing on imported produce is inadequate in its coverage. Policy recommendations discussed include better communication of US tolerances to exporters around the world; increased testing for pesticides, especially fungicides, that are currently not part of FDA’s regular testing procedures; and the creation of price floors and fair trade relationships in the transnational vegetable market to support farmers’ attempts to comply.     

Toward Further Understanding the Market‐sensing Capability–Value Creation Relationship

Earlier writings have speculated that the components of customer focus may have differential effects on customer value. This research is responsive to this call as it identifies the behavioral and cultural components that underlie a market‐sensing capability (i.e., customer focus), and undertakes a finer‐grained examination of the impact of the routines through which customer focus is manifested. Specifically, this research investigates the market learning activities (ML) that can affect the depth of the understanding achieved regarding the buyer's requirements and usage context, and the customer‐oriented practices (CO) that can affect the breadth of potential solutions generated to address those requirements. Given the possibility that some buyers may have more sophisticated needs, the role of a customer's performance standards is also considered as a moderating variable. Based on data collected from computer and electronics manufacturers via two separate surveys, the results support that a supplier's ML and CO, respectively, affect perceived customer value. The results also show that a customer's performance standards do not moderate the ML–customer value relationship. Regardless of whether the customer's performance standards (along the lines of product quality, defect rates, and on‐time delivery) are high or low, the seller must be adept at discerning changes in the buying firm's requirements and operational realities. Thus, market learning practices are needed across all customers in order for the supplier to remain synchronized with market changes and deliver superior value to them. Additionally, the results support that the positive association between a seller's CO and perceived customer value is stronger when buyers have more demanding performance standards. The generation of a broader array of potential solutions that is commensurate with a more outward focus is likely to be needed to satisfy customers with more stringent requirements. The disaggregated approach taken in this research contributes to theory by (1) providing greater insight into the domain of the customer focus construct, (2) tracing the mechanisms through which customer focus is reified, and (3) evaluating the possibility that the components of customer focus may have differential effects on customer value. The main practical implication stems from the proposal that market sensing can serve as a core competence and thereby provide the foundation for differential advantage.     

The sites and practices of business models

This paper examines the concept of business models. Drawing on the business model literature, we first identify technology, market offering and network architecture as the three core elements of business models. The theoretical routes of each element are then examined through the associated literatures: technology and innovation studies, industrial marketing, operations strategy, and evolutionary economics. Multiple dimensions of each element are identified and the resultant framework is used to explore developments within the recorded music market across three centuries.Through changes in the recorded music market since the 1870s, we explore how business models emerged, took on multiple sites and evolved through their practice over time. We look at how interlinking business models become spread out across the business network as different network actors play their part. The recorded music market generates important insights into how business models are created, developed and practiced. We suggest that firms, business networks and markets form embedded systems within which multiple overlapping business models can be considered as constituent parts. In this way, the business model is understood as having agency to shape action; but in turn actions (of others in the business network as well as within the firms themselves) also shape the business model.     

Visible parts,invisible whole: Swedish technology student teachers’ conceptions about technological systems

Technological systems are included as a component of national technology curricula and standards for primary and secondary education as well as corresponding teacher education around the world. Little is known, however, of how pupils, students, and teachers conceive of technological systems. In this article we report on a study investigating Swedish technology student teachers’ conceptions of technological systems. The following research question is posed: How do Swedish technology student teachers conceive of technological systems? Data was collected through in-depth qualitative surveys with 26 Swedish technology student teachers. The data was analysed using a hermeneutic method, aided by a theoretical synthesis of established system theories (system significants). The main results of the study are that the technology student teachers expressed diverse conceptions of technological systems, but that on average almost half of them provided answers that were considered as undefined. The parts of the systems that the students understood were mostly the visible parts, either components, devices, or products such as buttons, power lines, hydroelectric plants, or the interface with the software inside a mobile phone. However, the ‘invisible’ or abstract aspects of the technological systems, such as flows of information, energy or matter, or control operations were difficult to understand for the majority of the students. The flow of information was particularly challenging in this regard. The students could identify the input and often the output of the systems, that is, what systems or components do, but the processes that take place within the systems were elusive. Comparing between technological systems also proved difficult for many students. The role of humans was considered important but it was mostly humans as users not as actors on a more systemic level, for example, as system owners, innovators, or politicians. This study confirms previous research in that the students had a basic understanding of structure, input and output of a technological system. Thus, the adult students in this study did not seem to have better understanding of technological systems than school pupils and teachers in previous studies, although this is in line with previous investigations on the general system thinking capabilities of children and adults. The most important implication of this study is that students need to be trained in systems thinking, particularly regarding how components work and connect to each other, flows (especially of information), system dependency, and the human role in technological systems.     

Sample selection bias and Heckman models in strategic management research

Research summary: The use of Heckman models by strategy scholars to resolve sample selection bias has increased by more than 700 percent over the last decade, yet significant inconsistencies exist in how they have applied and interpreted these models. In view of these differences, we explore the drivers of sample selection bias and review how Heckman models alleviate it. We demonstrate three important findings for scholars seeking to use Heckman models: First, the independent variable of interest must be a significant predictor in the first stage of a model for sample selection bias to exist. Second, the significance of lambda alone does not indicate sample selection bias. Finally, Heckman models account for sample‐induced endogeneity, but are not effective when other sources of endogeneity are present. Managerial summary: When nonrandom samples are used to test statistical relationships, sample selection bias can lead researchers to flawed conclusions that can, in turn, negatively impact managerial decision‐making. We examine the use of Heckman models, which were designed to resolve sample selection bias, in strategic management research and highlight conditions when sample selection bias is present as well as when it is not. We also distinguish sample selection bias, a form of omitted variable (OV) bias, from more traditional OV bias, emphasizing that it is possible for models to have sample selection bias, traditional OV bias, or both. Accurately identifying the type(s) of OV bias present is essential to effectively correcting it. We close with several recommendations to improve practice surrounding the use of Heckman models. Copyright © 2015 John Wiley & Sons, Ltd.     

A paradigm for examining second-order factor models employing structural equation modeling

We present here a paradigm for assessing second-order measurement models. Our approach is hierarchical in nature. We discuss the need for higher-order models from a conceptual perspective and illustrate how some common challenges in empirical research can be resolved through the deployment of higher-order modeling. Essentially, we argue that many constructs can be meaningfully described by a higher-order structure and testing for the existence of such structures requires a careful examination of alternative models. There is a need for conceptual as well as empirical support. In order to demonstrate our paradigm, we use data that relate to airline service quality. Our sample includes two databases. Responses from 170 individuals are employed for exploratory purposes and responses from 437 individuals are used for subsequent data analyses.     

Back‐loading: A Potential Side Effect of Employing Digital Design Tools in New Product Development

Over the past 20 years, the use of digital design tools such as Computer‐Aided‐Design (CAD) has increased dramatically. Today, almost no product development project is conducted without the use of CAD models. Major advantages typically ascribed to using CAD include better solutions through broader exploration of the solution space as well as faster and less expensive projects through faster and earlier iterations. This latter effect, the shifting of simulation and testing traditionally accomplished with the help of physical prototypes late in the process—a slow and expensive activity—to doing similar activities with virtual prototypes faster and earlier in the process, has been identified as a key aspect of front‐loading, an activity shift promising to enable superior product development (PD) performance. Given CAD's recent pervasive use, the research questions for this paper became “how has CAD use actually changed the way in which product development is conducted, and through which mechanisms and pathways can CAD impact PD performance, especially with respect to the idea of front‐loading?” This paper addresses these questions by studying in a longitudinal comparison in detail two similar product development projects, one conducted in 2001, the other in 2009. The projects were carefully selected to isolate the substantially higher levels of CAD use of the second project while controlling for most other input factors that influence project performance. The project with substantially higher use of CAD exhibited significant improvements in prototyping costs but only marginal changes in project time and project engineering labor cost relative to the project with lower CAD use. In‐depth intra‐project analysis on the phase level reveals that the use of CAD affected how the product development was executed, with both positive and negative consequences. In addition to, and separate from positive aspects of front‐loading, unintended consequences in the form of back‐loading work are also observed. Back‐loading can occur in two places in the product development process: First, the availability of CAD systems can cause an early jump into detail design, effectively shortcutting concept development. Second, the ability to relatively quickly conduct small changes virtually to the design can erode process discipline; late changes are made simply because they are possible. Both of these effects back‐load work in the opposite direction of the positive front‐loading. The theoretical implications of our observations are discussed, and a simple framework to convert our findings into managerial advice is proposed.     

Interpretable machine learning for real estate market analysis

Machine Learning (ML) excels at most predictive tasks but its complex nonparametric structure renders it less useful for inference and out-of sample predictions. This article aims to elucidate and enhance the analytical capabilities of ML in real estate through Interpretable ML (IML). Specifically, we compare a hedonic ML approach to a set of model-agnostic interpretation methods. Our results suggest that IML methods permit a peek into the black box of algorithmic decision making by showing the web of associative relationships between variables in greater resolution. In our empirical applications, we confirm that size and age are the most important rent drivers. Further analysis reveals that certain bundles of hedonic characteristics, such as large apartments in historic buildings with balconies located in affluent neighborhoods, attract higher rents than adding up the contributions of each hedonic characteristic. Building age is shown to exhibit a U-shaped pattern in that both the youngest and oldest buildings attract the highest rents. Besides revealing valuable distance decay functions for spatial variables, IML methods are also able to visualise how the strength and interactions of hedonic characteristics change over time, which investors could use to determine the types of assets that perform best at any given stage of the real estate investment cycle.     

Issues and strategies in ex-post evaluation of intervention against animal disease outbreaks and spread

Animal disease outbreaks pose a significant threat in terms of potential economic losses, reduced productivity, and negative impacts on public health, food security and nutrition. This paper considers four issues in ex-post evaluation of animal disease interventions: firstly, a counterfactual involves simulating disease trajectories without the intervention. But some diseases can become endemic or become dormant after an outbreak, making it a challenge to know the true trajectory without the intervention. Secondly, without adequate design of controls and treatments, how can the estimated impacts be attributed to a given intervention? Thirdly, how do we assess costs saved by the intervention? Fourthly, given data uncertainty, would a stochastic simulation give better estimates than a deterministic one in solving for key variables? This paper addresses these issues and proposes solutions that bridge the gap between household level analysis and macro-level simulations in modelling the impact of animal diseases outbreaks.