Enhancing mental models,analogical transfer,and performance in strategic decision making

Recent research suggests that managers often make strategic decisions in novel situations by utilizing past experiences to reason by analogy. However, there is substantial evidence that decision makers often fail to identify and apply knowledge about one situation to a similarly structured situation. Two experimental studies investigated the mechanisms impacting knowledge transfer from one managerial situation (the source) to an analogous situation. The results show that exposure to variation in the source situation improves transfer performance. Variation decreases performance in the short term but improves learning and increases analogical transfer. Higher performance on and systematic search of the source situation also increase transfer performance. These results yield important implications for enhancing analogical transfer in strategic decision making and for future research on reasoning by analogy. Copyright © 2012 John Wiley & Sons, Ltd.     

Explaining post‐IPO venture performance through a knowledge‐based view typology

We extend the knowledge‐based view with a new typology and its application to post‐IPO firm performance. The typology categorizes knowledge development activity along the dimensions of familiarity (whether the firm has experience with the knowledge or it is new) and source (whether the firm creates it independently or with partners). We use this typology to determine direct and interaction effects of knowledge development activity on survival, RoA, and Tobin's q of newly public firms. Using a sample of 1,056 high‐technology manufacturing IPOs in 1990–2005, we find that focused, internal knowledge development correlates with higher performance. We also find a positive interaction effect in combining focused, internal and diversifying, alliance‐based knowledge development, and a negative interaction effect in combining diversifying, internal and alliance‐based knowledge development. Copyright © 2013 John Wiley & Sons, Ltd.     

Analogical reasoning for diagnosing strategic issues in dynamic and complex environments

Organizations interpret their environments by categorizing strategic issues as either opportunities or threats. They make such categorizations as inferences drawn from analogies from past experience. The accuracy of issue interpretations turns on: (1) which analogy is used, (2) what are the environment's properties, and (3) what is the timeframe? A computational model allows us to evaluate over time the accuracy of interpretations based on different forms of analogical reasoning in environments that differ in variation (unpredictability and dynamism) and complexity (dimensionality and ruggedness). This study elaborates a contingency approach to assessing analogical reasoning by organizations in which the form of analogical reasoning, environmental properties, and time all matter. Our findings indicate when particular forms of reasoning produce relatively more accurate inferences about opportunities and threats. Copyright © 2014 John Wiley & Sons, Ltd.     

Evolving Toward Product and Market-Orientation: The Early Years of Technology-Based Firms

Research studies of 114 technology-based firms within the Greater Boston area indicate evolution over the first several years after founding toward more product-oriented businesses and away from consulting and R&D contracting, and increased orientation of the founders to sales and marketing, with lessened emphasis on engineering. In this article Edward Roberts reports that the character of many of these firms changes over time. Evolution toward market-orientation is manifested in many ways. Firms' use of direct sales forces and sales representatives grows over time, as does their adoption of more formal mechanisms such as marketing departments, sales forecasting and analyses of potential markets. Greater orientation toward marketing in all its dimensions is especially true for multifounder firms, the single founder company being slower to evolve in the characteristics cited.     

When Research Meets Development: Antecedents and Implications of Transfer Speed

This paper focuses on the organization of new product development in large, R&D‐intensive firms. In these firms, research and development activities are often separated. Research is conducted in dedicated research projects at specialized research labs. Once research results are achieved by research projects, they are transferred to business units for further development and commercialization. We investigate the speed whereby research projects transfer their first research results to business units (hereafter: transfer speed). In particular, we analyze the antecedents and performance implications of transfer speed. Based on data of 503 research projects from a European R&D intensive manufacturing firm, our results suggest that a fast transfer speed (as measured by the time it takes for a research project to develop and transfer its first research result to business units) is associated with a better research performance (as measured by the total number of transfers the research project generates). Moreover, we find that different types of external R&D partners—science‐based and market‐based partners—play distinct roles in speeding up project first research transfers. While market‐based partnerships (i.e., customers and suppliers) generally contribute to a faster transfer of first research results, science‐based partnerships (i.e., universities and research institutions) only speed up first research transfers of technologically very complex projects. Our results also show that early patent filings by research projects accelerate first research transfers.     

Design — the starting point for CIM

The author reviews the spectrum of computer-integrated manufacturing (CIM) aids now available to speed up the development, manufacture and marketing of new products. To help firms to decide which aid is best suited to their needs the author presents a 2-by-2 typology of business environments, the dimensions being uncertainty and complexity. For each cell he derives a factor critical to achievement of competitive advantage, to which is matched a suitable form of CIM.
The paper includes a survey of the characteristics and limitations of commercially available hardware and associated software, advice on the administration of the systems and the storage of information generated. The author concludes by defining the key to the successful use of CIM as ensuring its conscious integration into the business, which means having a clear understanding of what is involved in design and development, management awareness of and commitment to the potential usefulness of CIM, defining clear responsibilities for creating and owning data and planned introduction of a design and engineering information system.     

Strategy making in novel and complex worlds: the power of analogy

We examine how firms discover effective competitive positions in worlds that are both novel and complex. In such settings, neither rational deduction nor local search is likely to lead a firm to a successful array of choices. Analogical reasoning, however, may be helpful, allowing managers to transfer useful wisdom from similar settings they have experienced in the past. From a long list of observable industry characteristics, analogizing managers choose a subset they believe distinguishes similar industries from different ones. Faced with a novel industry, they seek a familiar industry which matches the novel one along that subset of characteristics. They transfer from the matching industry high‐level policies that guide search in the novel industry. We embody this conceptualization of analogy in an agent‐based simulation model. The model allows us to examine the impact of managerial and structural characteristics on the effectiveness of analogical reasoning. With respect to managerial characteristics, we find, not surprisingly, that analogical reasoning is especially powerful when managers pay attention to characteristics that truly distinguish similar industries from different ones. More surprisingly, we find that the marginal returns to depth of experience diminish rapidly while greater breadth of experience steadily improves performance. Both depth and breadth of experience are useful only when one accurately understands what distinguishes similar industries from different ones. We also discover that following an analogy in too orthodox a manner—strictly constraining search efforts to what the analogy suggests—can be dysfunctional. With regard to structural characteristics, we find that a well‐informed analogy is particularly powerful when interactions among decisions cross policy boundaries so that the underlying decision problem is not easily decomposed. Overall, the results shed light on a form of managerial reasoning that we believe is prevalent among practicing strategists yet is largely absent from scholarly analysis of strategy. Copyright © 2005 John Wiley & Sons, Ltd.     

Exploring the contribution of innovation intermediaries to the new product development (NPD) process: a typology and an empirical study

In the ‘knowledge economy’ upheld by the European Lisbon strategy, knowledge‐intensive services are considered a key driver for innovation and competitiveness. A category of knowledge‐intensive services that has become of utmost importance in the last few decades is new product development (NPD) services, which interconnect distant knowledge domains with the client firms. In addition to NPD service providers, web‐based innovation intermediaries have started to help innovative firms access dispersed bodies of knowledge. Despite the heterogeneity of their characteristics, however, a clear typology of the strategies used by traditional NPD service providers and web‐based intermediaries to interact with their knowledge sources and with their clients is missing. This typology would be very useful for those firms that are willing to collaborate with innovation intermediaries because it could highlight the typologies of NPD problems different intermediaries are apt to address and the managerial challenges that working with them entails. Developing such a classification framework is the main goal of this paper. The typology proposed in this paper suggests that innovation intermediaries should be distinguished based on the following: (1) the way they access their distributed knowledge sources and (2) the way they deliver value to their clients. By combining these two dimensions, four categories of innovation intermediaries are identified, which are named brokers, mediators, collectors and connectors. A multiple case study analysis involving four innovation intermediaries and 12 of their clients is presented in the paper. The analysis provides exploratory insights into (1) the typologies of NPD problems that each class of intermediaries addresses and (2) the managerial challenges that working with each of them entails. These preliminary findings call for further theoretical and empirical research into the complex interaction among innovation intermediaries, their dispersed sources of knowledge and their clients.     

Knowledge spillovers: cooperation between universities and KIBS

Knowledge is increasingly perceived as a fulcral factor to company competitiveness. As the transfer of knowledge is one of the key functions of knowledge intensive business services (KIBS), this research seeks to analyse how the transfer of knowledge takes place between the higher education sector and KIBS type firms. The empirical results show that cooperation between KIBS and universities occurs irrespective of the typology (whether professional or technological in focus). We also empirically establish how geographic proximity is the factor bearing greatest influence over cooperation while such cooperation proves to have a positive impact on the company capacity to innovate. We furthermore find that this innovation capacity also drives a positive company financial performance.     

MULTIPROJECT STRATEGY AND SALES GROWTH: THE BENEFITS OF RAPID DESIGN TRANSFER IN NEW PRODUCT DEVELOPMENT

This paper explores the impact on sales growth of different product development strategies, especially an approach that focuses on the coordination of multiple projects that overlap in time and share critical components. The data for our analysis comes from the automobile industry, although the principles we discuss should apply to any industry where firms compete with multiple product lines and where the sharing of components among more than one distinct product is both possible and desirable. Some firms compete by trying to develop ‘hit’ products in isolation, with little or no reuse of components or coordination with other products. Another way to compete is to leverage a firm’s investment in new technologies across as many new products as possible as quickly as possible, while the technologies are still relatively new. This paper proposes a typology that captures this effect by categorizing product development strategies into four types: new design, rapid (or concurrent) design transfer, sequential design transfer, and design modification. An analysis of 210 projects from the automobile industry between 1980 and 1991 indicates that firms utilizing the rapid design transfer strategy—quickly leveraging new platform components across multiple projects–increased sales more than when they or their competitors did not use this strategy. The study’s results suggest that not only the sharing of technology among multiple projects but also the speed of technology leveraging are important to sales growth. © 1997 by John Wiley & Sons, Ltd.     

Using an analogical thinking model as an instructional tool to improve student cognitive ability in architecture design learning process

Lack of creativity is a problem often plaguing students from design-related departments. Therefore, this study is intended to incorporate analogical thinking in the education of architecture design to enhance students’ learning and their future career performance. First, this study explores the three aspects of architecture design curricula, interaction and students’ cognitive development. Then the study discusses learning based on analogical thinking into two parts: analogical learning and analogical reasoning. The samples in this study were the freshmen of the Department of Architecture, China University of Technology. The model was used in a five-week unit of the course of Architecture Design, a required course for all the freshmen. Questionnaires were given to the students before and after the unit to evaluate the influences of the model in the dimensions of Teaching, Teacher-student Interactions, Student–student Interactions, Cognitive Development, and Overall Learning Performance. The questionnaire results were collected and statistically analyzed. The analysis results indicated that, the students scored significantly higher in each of the dimension after the unit than before the unit. These findings suggested that the use of an analogical thinking model can be helpful in the teaching of architecture design. Hopefully, the findings of this study can provide helpful references for not only teaching of architecture design but also future related research.     

我国监理企业的市场营销探析

随着国内外市场的全面融合,国外一些优秀的项目咨询公司必将进入中国市场,工程咨询市场的竞争日益激烈,我国监理企业只有重视市场营销,准确及时地把握市场信息,转变经营理念,适应行业的发展,才能使企业立于不败之地。文章对监理企业市场营销的特点进行了简要的阐述,分析了我国监理企业市场营销现状及存在的问题;参考现代市场营销理论,提出了监理企业市场营销的模式和框架体系,并针对实施监理企业市场营销提出了一些策略。     

Innovation Management Practices Compared: The Example of Project‐Based Firms*

The importance of project‐based firms is increasing, as they fulfill the growing demands for complex integrated systems and knowledge‐intensive services. While project‐based firms are generally strong in innovating their clients' systems and processes, they seem to be less successful in innovating their own products or services. The reasons behind this are the focus of this paper. The characteristics of project‐based firms are investigated, how these affect management practices for innovation projects, and the influence of these practices on project performance. Using survey data of 203 Dutch firms in the construction, engineering, information technology, and related industries, differences in characteristics between project‐based and nonproject‐based firms are identified. Project‐based firms are distinguished from nonproject‐based firms on the basis of organizational configuration, the complexity of the operational process, and the project management capabilities of the firm. Project‐based firms also differ with regard to their level of collaboration and their innovation strategy, but not in the level of autonomy. A comparison of 135 innovation projects in 96 of the firms shows that project‐based firms do not manage their innovation projects different from other firms. However, the effects of specific management practices on project performance are different, particularly the effects of planning, multidisciplinary teams and heavyweight project leaders. Differences in firm characteristics provide an explanation for the findings. The implication for the innovation management literature is that “best” practices for innovation management are firm dependent.     

User Toolkits for Innovation: Consumers Support Each Other

User toolkits for innovation were recently proposed as a means to eliminate (costly) exchange of need-related information between users and manufactures in the product development process. The method transfers certain development tasks to users and thereby empowers them to create their own desired product features. This article examines the implications of different levels of opportunities for consumer involvement (OCI) in product development to learn what happens when firms pass design tasks on to consumers. It explores this issue by studying the relation between the employment of user toolkits and the need for firms to support their consumers. An analysis of 78 computer games products and the amount of support given by firms to the consumers of these products suggests that a share of the costs firms save on information acquisition by letting consumers "do it themselves" may eventually reemerge as costs in consumer support. In other words, an increase in opportunities for consumer involvement seems to increase the need for supporting consumers. A promising solution to the problem of support costs is identified, namely, the establishment of consumer–consumer support interaction. A case study of an outlier in terms of firm support to consumers—Westwood Studios—shows that consumers who use toolkits may be willing to support each other. Such interactive problem solving in a firm-established user community is advantageous to the firm, because the process reduces the amount of resources that the firm itself needs to dedicate to the support of consumers using toolkits. Generally, consumer-to-consumer interaction can facilitate problem-solving in the consumer domain, can aid the diffusion of toolkit related knowledge, and potentially can enhance the outcomes produced by the toolkit approach.     

A sampled literature review of design-based learning approaches: a search for key characteristics

Design-based learning (DBL) is an educational approach grounded in the processes of inquiry and reasoning towards generating innovative artifacts, systems and solutions. The approach is well characterized in the context of learning natural sciences in secondary education. Less is known, however, of its characteristics in the context of higher engineering education. The purpose of this review study is to identify key characteristics of DBL in higher engineering education. From the tenets of engineering design practices and higher engineering education contexts we identified four relevant dimensions for organizing these characteristics: the project characteristics, the role of the teacher, the assessment methods, and the social context. Drawing on these four dimensions, we systematically reviewed the state-of-the-art empirical literature on DBL or DBL-like educational projects in higher engineering education. Based on this review we conclude that DBL projects consist of open-ended, hands-on, authentic and multidisciplinary design tasks resembling the community of engineering professionals. Teachers facilitate both the process of gaining domain-specific knowledge and the thinking activities relevant to propose innovative solutions. Teachers scaffold students in the development from novice to expert engineers. Assessment is characterized by formative and summative of both individual and team products and processes and by the use of a variety of assessment instruments. Finally, the social context of DBL projects includes peer-to-peer collaboration in which students work in teams. The implications of these findings for further research on DBL in higher engineering education are discussed.     

The Collaboration of Innovation Intermediaries and Manufacturing Firms in the Markets for Technology

Many manufacturing firms have opened up their product innovation processes and actively transfer knowledge with external partners in the markets for technology. However, the markets for technological knowledge have remained inefficient in comparison with the markets for most products. To reduce some of the market inefficiencies, manufacturing firms may collaborate with innovation intermediaries, which are defined as organizations that act as agents or brokers in the innovation process between two or more parties. These innovation intermediaries comprise different service providers ranging from consulting companies to Internet marketplaces for technology. In light of an increasing importance of intermediary services in the context of open innovation, this paper specifically focuses on the collaboration of manufacturing firms and innovation intermediaries, which may be critical for the success of intermediary services. Based on new interview data from 30 innovation intermediaries and 30 European manufacturing firms, this paper examines the question of how innovation intermediaries and manufacturing firms collaborate concerning the following issues, which emerged as the key themes from the interviews: potential of intermediation, roles of intermediaries, types of intermediation, drivers of intermediation, complementarity of intermediation, compensation of intermediation, and the importance of repeated collaborations. The findings indicate how manufacturing firms may reduce their transaction costs in technology markets by collaborating with intermediaries. However, intermediary services can only be regarded as a complement rather than a substitute of manufacturing firms' internal activities of managing technology transfer. Thus, manufacturing firms need sufficient internal capabilities for managing technology transfer, such as absorptive capacity and desorptive capacity.     

Urban crowdsourcing: Stakeholder selection and dynamic knowledge flows in high and low complexity projects

Urban crowdsourcing is a new form of open innovation that aims to develop smart cities. Due to the heterogeneity of partners in urban planning, knowing the type of knowledge gained from each stakeholder at each stage of the crowdsourcing process needs to be understood for effective collaborations and innovative knowledge flow activation. Using a qualitative approach with experts involved in the Casablanca Smart City project, this research investigates complex multi-stakeholder ecosystems. More specifically, this study identifies and examines the role of external stakeholders at each stage of the innovation process, and the resulting dynamic knowledge flows that help improve the process of urban crowdsourcing in the development of smart city solutions. Depending on the complexity of the innovation project, findings identify three primary stakeholders (citizens, public authorities, and private and public firms) and three secondary stakeholders (NGOs, universities, consulting companies). Results show at which of the four steps of urban crowdsourcing they intervene. Furthermore, the findings reveal a dynamic learning environment composed of two knowledge flows (“learning with” and “learning from” stakeholders).     

Product Technology Transfer in the Upstream Supply Chain

This article addresses the transfer of new product technologies from outside the firm for integration into a new product system as part of a product development effort. Product technology transfer is a key activity in the complex process of new product development and is the fundamental link in the technology supply chain. Product technology transfer too often is dealt with in an ad‐hoc fashion. Purposeful management of the product technology transfer process leads to more effective transfers in terms of timeliness, cost, functional performance, and competence building. Better management of product technology transfer gives firms access to a greater variety of new technology options, improves a firm's ability to offer significantly differentiated products, deepens the firm's competitive competencies, and positively influences sustained product development success. The central objective of this article is to gain insight into product technology transfer so that companies can manage this process more successfully and so that researchers can investigate this critical activity further. This article describes the technology supply chain as a unique form of a supply chain that poses a set of managerial challenges and requirements distinguishing it from the more traditional component supply chain. Because a single product technology transfer project is the fundamental piece in the technology supply chain, understanding this piece well is key to leveraging the extended technology supply chain and to improving overall product development performance. This article integrates literatures on new product development, supply chain management, and technology management and builds on organizational theory to present a conceptual model of determinants of product technology transfer success. The core proposition is that product technology transfer effectiveness is greatest when companies carefully match (or “fit”) the type of technology to be transferred (the “technology uncertainty”) with the type of relationship between the technology supplier and recipient (the “interorganizational interaction”). A quite detailed framework characterizing technology uncertainty along the dimensions of technology novelty, complexity, and tacitness is presented to help in assessing the challenges associated with transferring a particular product technology. This article also considers detailed elements characterizing the interorganizational interactions between the technology source and recipient firms. This helps firms consider the appropriate means to facilitate the interfirm process of technology transfer. Overall, this article provides practical insight into characterizing technologies and into improving the product technology transfer process. This article also provides a strong theoretical foundation to aid future research on product technology transfer in the technology supply chain.     

Identifying Technology Commercialization Opportunities: The Importance of Integrating Product Development Knowledge

New product development (NPD) is a knowledge‐intensive activity, perhaps even more so in recent years given the shift toward more open innovation processes, which involve active inward and outward technology transfer. While the extant literature has established that knowledge is critical for NPD performance, knowledge generated through NPD can have an additional impact on external technology exploitation—as when firms go beyond pure internal application of knowledge to commercialize their technologies, for example, by means of technology outlicensing. Grounded in the knowledge‐based view of the firm, this paper examines how the integration of domain‐specific knowledge, procedural knowledge, and general knowledge generated through NPD affects a firm's proficiency in identifying technology commercialization opportunities. Additionally, analysis of how technology opportunity identification relates to technology commercialization performance is provided. Empirically, the paper draws on survey data from 193 Swedish medium‐sized manufacturing firms in four industries active with NPD, and regression analyses and structural equation modeling were used to test the hypotheses. The results highlight the importance of integrating domain‐specific and general NPD knowledge to proficiently identify technology licensing opportunities. The empirical findings also provide strong support for a subsequent link between technology opportunity identification and technology commercialization performance. Altogether, these results point to strong and previously unexplored complementarities between inward and outward technology exploitation, that is, between NPD and technology licensing. As such, the results provide important theoretical implications for research into the fields of knowledge integration, technology exploitation, opportunity identification, and technology markets. Moreover, the results have significant managerial implications concerning how knowledge generated through NPD can help firms to achieve both strategic and monetary benefits when trying to profit from technology. In particular, to set up proficient technology commercialization processes, it appears beneficial for firms to integrate knowledge that is gained through the ordinary activities of developing and commercializing products. Specifically, the integration of domain‐specific knowledge and general knowledge helps firms to match their technologies with new applications and markets, which is often the critical barrier to successful technology commercialization activities. Managers are thus encouraged to integrate domain‐specific knowledge and general knowledge from NPD to reap additional benefits in profiting from investments in innovation and technology.     

How functional involvement affects the transformation of external knowledge into innovation outcomes

This paper aims at investigating organizational mechanisms through which firms involved in open innovation initiatives can acquire external knowledge, integrate it with the existing one residing in the diverse functional areas, and transform it into innovation outcomes. Following the knowledge transformation perspective, we use the notions of early‐stage and late‐stage functional involvement, and explain their mediating effects on a firm's innovation performance. Based on a sample of 131 international firms involved in open innovation projects, we find that high involvement of functions related to the early stage of the innovation process – notably new concept generation, research and development, and design and testing – fully mediates the effect of external knowledge transfer on innovation performance. Similarly, high involvement of functions related to the late stage of the innovation process – notably manufacturing, marketing, distribution, and logistics – has significant indirect effect on innovation performance but lower than that of early‐stage functional involvement. Furthermore, the empirical research reveals that early‐stage functional involvement mediates the positive effect of external knowledge transfer on late‐stage functional involvement. Theoretical and practical implications of our findings are discussed.