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

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

Cross-border e-commerce firms as supply chain integrators: The management of three flows

Cross-border e-commerce is becoming increasingly popular around the world. With the development of technology, competition has gradually shifted from commodity-based attributes, such as cost and quality, to a supply chain's service capacity for e-commerce. Within this context, the present paper delineates how cross-border e-commerce firms can generate supply chain service capabilities that yield improvements in supply chain relationship quality to e-tailors and other platform users. Insights are derived through data collected via a multiple case study approach based on four Chinese cross-border e-commerce enterprises (OSell, Zongteng, BizArk and Linca); data were collected from 41 semi-structured interviews, field visits and secondary data. Relying on the service-dominant logic as the theoretical foundation, we identify three supply chain resources (flows related to information, logistics and finance) and their interplay as being critical for the development of supply chain service capabilities, which in turn lead to an improvement in the quality of supply chain relationships (assessed by the dimensions of trust improvement/commitment, risk mitigation, and customer satisfaction). The results offer important insights into how to best manage supply chain resources in relation to the three flows by cross-border e-commerce firms in order to foster relationship quality, an attribute that has become so critical today for competitive differentiation.     

Outsourcing reverse logistics of high-tech manufacturing firms by using a systematic decision-making approach: TFT-LCD sector in Taiwan

Reverse logistics are increasingly crucial for the supply chain strategy of global high-tech manufacturing firms. As reverse logistics operations are significantly more complex than traditional manufacturing supply chains, many high-tech manufacturers are examining the feasibility of outsourcing reverse logistics activities to third party logistics providers (3PLs) from a strategic planning perspective. Internal resources and capabilities are thus examined from a resource-based perspective to identify which reverse logistics service requirements could be fulfilled in-house or outsourced. Therefore, this work presents a systematic approach using the analytical network process (ANP) not only to investigate the relative importance of reverse logistics service requirements, but also to select an appropriate 3PL. Empirical results based on the case of the TFT-LCD sector in Taiwan indicate that information technology management is of priority concern in reverse logistics services. In addition to providing a valuable reference for manufacturers concerned with service requirements for outsourcing, results of this study significantly contribute to the efforts of 3PLs in evaluating whether they comply with potential customer requirements based on their service capabilities.     

Marketing metrics: Insights from Brazilian managers

This study examines how managers approach marketing measures in a Brazilian context. Using data from a large-scale empirical study in Brazil, we focus on managers' views of the practices in marketing measurement and identify which indicators they emphasize. The findings, which reflect Brazilian managerial practice, indicate that managers use a combination of metrics. Items such as total number of customers, number of complaints, and customer satisfaction are among the most known and most used metrics. When addressing the 10 most relevant metrics results yield 4 groups, including customer vision, financial, product vision, and market and innovation. Indicators pertaining to customer vision are the most important to Brazilian managers. Furthermore, we discuss the results and draw comparisons with similar studies conducted in the United Kingdom and China. Finally, we present conclusions and avenues for future research.     

Diversification and performance: evidence from East Asian firms

We examine the impact of diversification on performance for firms operating in different institutional environments during a relatively stable period and during a major economy‐wide shock. We locate our study in six Asian countries at different levels of institutional development. Results indicate that diversification negatively impacts performance in more developed institutional environments while improving performance only in the least developed environments. Even in the least developed institutional environments, diversification offers limited benefits when an economy‐wide shock strikes. Though successful diversifiers are sometimes affiliated with business groups, diversification is associated with poorer performance for both affiliated firms and independent firms. In sum, we find that the outcomes of diversification are influenced by institutional environments, economic stability and affiliation with business groups. Copyright © 2007 John Wiley & Sons, Ltd.     

Mobilizing Protest: Insights from Two Factory Closures

This article draws on investigations of worker response to two factory closures to develop recent discussions around mobilization theory. With many shared characteristics between the factories, both located in the garment manufacturing sector, and with similar workforces and union organization, certain key distinguishing features between the two provide insights into why worker protest became effectively mobilized and sustained in one case but failed to materialize in the other. The findings point to the value of assigning greater weight in studies of worker mobilization to the impact of prior existing social structures within a population, and the interaction between that population, its leaders and wider society.     

Ultra-fast broadband access and productivity: Evidence from Italian firms

We study the impact of ultra-fast broadband (UFB) infrastructures on the total factor productivity (TFP) and labor productivity of firms. We use unique balanced panel data for the 2013–2019 period on incorporated firms in Italy. Using the geographical location of the firms, we merge firm-level data with municipality-level information on the diffusion of UFB, which started in 2015. We derive consistent firm-level TFP estimates by adopting a version of the Ackerberg et al.’s (2015) method, which also accounts for firm fixed effects. We then assess the impact of UFB on productivity and deal with the endogeneity of UFB by exploiting the physical distance between each municipality and the closest optical packet backbone node. Our results show an overall positive impact of UFB on productivity. Services companies benefit the most from advanced broadband technologies, as do firms located in the North-West and South of Italy. We further decompose the impact of full-fiber networks from mixed copper-fiber connections and find that the former significantly contribute to enhancing firm productivity. Finally, by exploiting Labor Force Survey data, we provide suggestive evidence that productivity increases from UFB might be related to structural changes at the workforce level.     

Geographic distance and corporate acquisitions: signals from IPO firms

This paper examines acquisitions of firms after they have undergone initial public offerings (IPOs). Combining insights from information economics with recent research on geographic distance in various market settings, the analysis investigates whether the presence or absence of different signals on IPO firms has an impact on the geographic proximity of acquirers. The central proposition we develop and test is that specific characteristics of IPOs—venture capitalist backing, investment bank reputation, and underpricing of issued shares—convey signals on these firms, which can facilitate acquisitions by more remote acquirers who are more likely to face the risk of adverse selection. Copyright © 2011 John Wiley & Sons, Ltd.     

Growth diversity amongst innovative and technology–based new and small firms: an interpretation

Innovative and technology-based new and small firms have been the focus of rapid growth expectations, but the empirical evidence shows modest growth is the norm amongst such firms. This article provides an interpretation of the development of these firms which is intended to highlight some of the diversity which exists within this population of firms.     

Food policies and prospects: Insights from global modelling

The author describes the application to international food problems of a simulation model of the world economy developed by the Systems Analysis Research Unit (SARU) of the UK Department of the Environment. He examines the role of food trade under alternative future conditions of abundance and adversity. Comparisons are drawn with some of the conclusions of other world models. The results highlight the potential of food trade as a contributor to higher income and consumption in poor regions, notably South and Southeast Asia.     

Factors influencing divestment decision-making: Evidence from a field study

This research investigates factors which influenced the corporate-level divestment decisions of large, diversified firms. Field research, including interviews with corporate executives of 40 large diversified firms, provided the data to test propositions developed from various literature sources. In general, thefindings from this research indicate that a business unit's strength, its relationship to other units in its firm and its parent firm's financial position compared to its competitors are important divestment influences, whereas other factors such as general economic conditions are not. Some of the findings are consistent with conventional management wisdom, but others are counterintuitive.     

Learning from foreign investment by rival firms: Theory and evidence

We offer an alternative explanation for follow-the-leader behavior in foreign investment decisions based on Bayesian learning by rival firms. We test the implications of the model through a panel count data sample of MNEs that have invested in Central and Eastern Europe over the period 1990–1997. Interacting the measure of rivals' investment in country-industry pairs with uncertainty, we are able to identify the channel of Bayesian learning about revenue postulated by the model as the only one consistently generating the detected follow-the-leader behavior of foreign investments. The empirical findings are robust with respect to different model specifications.     

Data portability effects on data-driven innovation of online platforms: Analyzing Spotify

The EU General Data Protection Regulation (GDPR) introduces a new right to data portability, which allows users to move their personal data to other platforms, potentially affecting competition between rival platforms offering similar (homogeneous/substitute) products or services within the European Union. However, it is still unclear what effects this new regulation could have on competition and, consequently, on innovation in digital markets. Therefore, this paper analyzes the effect of data portability driven by competition on the data-driven innovation response of online platforms such as Spotify, Google, and Facebook.We conduct an empirical analysis of Spotify, which is an online platform facing competition within the EU, and perform a comparison between data portability to number portability of the telecommunication sector to predict the future impact of the new regulation. Finally, we compare the observations on Spotify with Facebook and Google, which are companies in winner-takes-all markets.We argue that online platforms like Spotify, which face competition within the EU, will invest in two forms of data-driven innovation due to the effect of data portability. These types are ‘exploitation-innovation,’ by improving the existing technology, and ‘exploration-innovation’ by developing new technology. In ‘exploitation-innovation,’ firms, like Spotify, will increase investments in data-driven innovation to enhance users' engagement and retention to avoid churn. In ‘exploration-innovation,’ these firms will invest in data-driven innovation to develop new algorithms to include data from customers acquired from their competitors. On the contrary, online platforms, like Facebook or Google, which do not face real competition, will not have a substantial need to invest in data-driven innovation solely due to data portability.     

Alternative concepts of management: Insights from asia and africa

Some Asian and African concepts including the logic of mutual benefit among heterogeneous elements, polyocular vision, self-heterogenization, ability to think in one another's mind, interpersonal aidaschaft, situational adaptability and overlapping responsibility are compared with the European and North American concepts of unity by homogeneity, individual identity, boundary, specialization, separation, opposition, hierarchy, tension and extension.The author is Visiting Professor of International Business and Business Policy at the National University of Singapore.     

Innovation Roadmapping: Building Concepts from Practitioners’ Insights

Cartographic roadmaps used for navigating from A to B provide a strong metaphor for innovation roadmaps used at firms for navigating from the present to the future. Now ready to move beyond this metaphor—the pace and proliferation of knowledge on innovation roadmapping have reached a point at which it would be useful to lay out some groundwork for extended theorizing and research in this area. This paper contributes here by reporting on a qualitative inductive research based on documented practitioners’ insights. To better understand the phenomenon of innovation roadmapping (what it is and what it is not) and its impact on innovation performance, this study builds concepts in the context of strategic innovation management theory. Through a systematic analysis of the qualitative data extracted from 12 cases selected from the extant literature, this research found five concepts with common ground in these cases and built a framework in which innovation roadmapping is established by (1) a strategy of time pacing, (2) synchronizing dialogues, and (3) mapping innovation elements to a timeline. Furthermore, the systematic analysis of the documented practitioners’ insights indicates that roadmapping affects either the innovation performance of (4) competitive timing or (5) industry synergy. Overall, this leads to an initial formulation of theory with this conceptual framework and six related propositions. The key insights for innovation managers in industrial firms are that, in striving for competitive timing or industry synergy, roadmapping provides a means to achieve these objectives and, in deploying roadmapping in the organization, dialogue and pacing are critically important.     

A dynamic capability view of marketing analytics: Evidence from UK firms

While marketing analytics plays an important role in generating insights from big data to improve marketing decision-making and firm competitiveness, few academic studies have investigated the mechanisms through which it can be used to achieve sustained competitive advantage. To close this gap, this study draws on the dynamic capability view to posit that a firm can attain sustained competitive advantage from its sensing, seizing and reconfiguring capabilities, which are manifested by the use of marketing analytics, marketing decision-making, and product development management. This study also examines the impact of the antecedents of marketing analytics use on marketing related processes. The analysis of a survey of 221 UK firm managers demonstrates: (a) the positive impact of marketing analytics use on both marketing decision-making and product development management; (b) the effect of the latter two on sustained competitive advantage; (c) the indirect effect of data availability on both marketing decision-making and production development management; and (d) the indirect effect of managerial support on marketing decision-making. The research model proposed in this study provides insights into how marketing analytics can be used to achieve sustained competitive advantage.     

Turnaround in East Asian firms: evidence from ethnic Overseas Chinese communities

Research done primarily in the United States has shown that firms in decline enjoy better odds of returning to health when strong measures are taken. The culture of the Overseas Chinese of East Asia has helped to shape the region's prior commercial success but it also impacts responses to firm decline and turnaround. This research provides the first empirical investigation of the turnaround strategies of Overseas Chinese firms in East Asia. The evidence gathered shows that the utility of the predominantly U.S. model of firm turnaround has limits in East Asia. In particular, the role of strong owner‐managers and the importance of relationships among business people constrain the applicability of prior U.S. research to East Asia. Copyright © 2003 John Wiley & Sons, Ltd.     

The influence of competition from informal firms on new product development

Research summary : Existing research describes a broad range of determinants of new product development (NPD), a fundamental competitive activity of firms. A considerable share of this work has occurred in the context of developed economies, raising a concern that some important determinants may remain unexamined. We suggest that one such determinant is competition from informal (unregistered) firms. Drawing from the attention‐based view, we investigate the effects of informal competition on NPD in a large sample of firms located across Eastern Europe and Central Asia. We examine not only the direct effect but also how this effect is moderated by characteristics of the competitive and institutional context. Managerial summary : The purpose of this research is to examine the relationship between competition from informal (unregistered) firms and new product development (NPD) by formal firms. We argue that NPD is an effective response to differentiate from informal firms, and our analyses of over 9,000 firms located in emerging economies across Eastern Europe and Central Asia indicate that NPD activities are more likely in formal firms who rate informal competition as a greater obstacle. The strength of this direct relationship depends on aspects of the competitive and institutional environment: it is weakened when levels of competition from other formal firms are higher, when alternative responses such as corruption are more available, and when managers are more optimistic about the regulatory environment. Copyright © 2016 John Wiley & Sons, Ltd.