Technology Push or Market Pull? Strategic Orientation in Business Model Design and Digital Start-up Performance*

The digital revolution is fundamentally reshaping the business landscape by generating abundant new opportunities and novel business models. As a new source of value creation, a start-up’s business model is critical for its survival and growth. How, then, should a digital start-up design its business model? The present study departs from existing viewpoints on the topic and proposes a strategic orientation view. By integrating the resource-based view and the demand-side perspective, we examine the impact of strategic orientation in business model design on the performance of start-ups in the digital economy. Using a data set of digital start-ups, our empirical results show that both technology and consumer orientations are beneficial to the performance of start-ups. However, it would be counterproductive for a digital start-up to seek a balance between both strategic orientations in business model design. Furthermore, the positive relationship between consumer orientation and firm performance becomes more prominent in a highly open technological environment, but is weakened in environments characterized by high user interactivity. This study advances business model design research by proposing a strategic orientation view, and contributes to business model theory building by offering an integrated view that embraces the resource-based view and the demand-side perspective.     

Comparison of benefits of radio frequency identification: Implications for business strategic performance in the U.S. and Korean retailers

This study explores a model to compare the benefits of RFID technology on supply chain management by focusing on retail industry. A path model was estimated to examine structural relationships among technological infrastructure, RFID benefits, and business strategic performance in the U.S. (n = 70) and Korean samples (n = 87). Result showed that technological infrastructure was required to more improve inventory management, store operation and demand management, leading to business strategic performance. Especially, data system automation was perceived as a prerequisite for improving inventory management for both countries. Hardware/software application was significantly related to the RFID benefit of inventory management for U.S. retailers, whereas, it was related to the benefits of efficient store operation and demand management for Korean retailers. Business strategic performance was significantly determined by RFID benefit factors (e.g., inventory management and demand management) for U.S. retailers and Korean retailers. The managerial implication for business to business strategic performance in the U.S. and Korean retail industries was discussed from a retailer's perspective.     

How to build a strategic network: A practitioner-oriented process model for the ICT sector

One critical success factor for the future will be the ability to build and develop strategic networks. This ability is especially vital in the dynamic information and communication technology (ICT) sector, where the development of competitive offerings often requires a coalition of platform and service providers. However, the academic literature has yet to propose a systematic managerial tool for the strategic network building process. Our distinctive contribution is the development of a practitioner-oriented process model for building a strategic network, which is linked to the resource-based view and the value creation system approach. Moreover, we suggest that instead of being a sequential stage-wise process, the construction of a strategic network can be divided into parallel, although not necessarily simultaneous, sub-processes based on the required value activities in the entire business concept. The resulting network-building model is used to provide managerial suggestions for the efficient construction of strategic business networks.     

Technology management as part of strategic planning – some empirical results

During the past years R&D management has been broadened into technology management, and the fruitfulness of its integration into strategic management has become clear. Empirical research has shown that R&D contributes relatively more to conventional output measures of firms that capital, and might therefore be expanded. However, whether its strategic direction should be aligned with that of other business functions is less than clear. Better information, including competitor technological intelligence information, is needed to better support strategic decisions.     

Synthesizing R&D planning and business strategy: some preliminary findings

The need for firms to compete in the longer run by offering superior products at competitive prices requires better integration of R&D, and technology in general, into business strategy development. A survey based on personal interviews of 40 respondents from "Fortune 500" U. S. industrial firms reveals that their shift in emphasis toward new product/process R&D is providing the impetus for placing R&D in a strategic context. However, R&D has not been fully integrated into the strategic planning process of many organizations. The results of the survey reveal that certain communication channels can be more fully utilized to meld R&D planning into business strategy. Specific suggestions to facilitate information exchange, dissemination of planning data, and integration of various R&D plans into a cohesive technology strategy are given.     

Synthesizing R&D planning and business strategy: some preliminary findings

The need for firms to compete in the longer run by offering superior products at competitive prices requires better integration of R&D, and technology in general, into business strategy development. A survey based on personal interviews of 40 respondents from “Fortune 500” U. S. industrial firms reveals that their shift in emphasis toward new product/process R&D is providing the impetus for placing R&D in a strategic context. However, R&D has not been fully integrated into the strategic planning process of many organizations. The results of the survey reveal that certain communication channels can be more fully utilized to meld R&D planning into business strategy. Specific suggestions to facilitate information exchange, dissemination of planning data, and integration of various R&D plans into a cohesive technology strategy are given.     

Strategic orientations and new product commercialization: mediator,moderator, and interplay

Why are some firms more successful at commercializing new products than others in emerging economies? It is possible that the strategic orientations, which firms adopt as a type of business strategy, lead at least partially to the superior performance of the new products they introduce to the market. Strategic orientations facilitate a match between firm strategy and resource endowment, on the one hand, and the adaptation to market conditions, on the other. In this paper, we empirically test whether four major types of strategic orientations (market orientation, technology orientation, entrepreneurial orientation, and networking orientation) are simultaneously related to new product commercialization performance using data collected from China. We find that strategic orientations are positively related to three aspects of new product commercialization, namely new product advantage, new product newness, and number of new products introduced to the market. Interestingly, we find that pairs of strategic orientations support each other in exerting their impacts on new product commercialization performance. In addition, we find that organizational learning mediates the effects of strategic orientations on new product commercialization and that environmental dynamism moderates the effect of strategic orientations on new product commercialization. We obtain the valuable insight that a firm's successful commercialization of new products hinges upon the development of critical yet complementary sets of strategic orientations, especially in a dynamic business environment.     

Managing strategic system-building networks in emerging business fields: A case study of the Dutch smart grid sector

Companies that wish to launch innovative sustainability technologies can collaborate in strategic networks of actors from industry, government and research institutes to pro-actively build a business ecosystem around their new technology. This is called collective system building. In this paper, we examine how to effectively manage networks for collective system building. Based on a review of the literature, we identify the key factors of effective network management and we propose a conceptual framework for network management at the network level. Subsequently, we conduct a multiple-case study in the Dutch smart grid sector to examine how these key factors are implemented by system-building networks. We find differences with the existing network management literature regarding network composition, network management structure, governance modes, decision-making processes, project management, the free-rider problem and trust-building mechanisms. Our study contributes to a better understanding of effective management of system-building networks, which in turn can lead to greater success in establishing new business fields. We contribute to the literature on strategic business networks, specifically on emerging business networks building new business fields.     

策略群组与企业盈利水平的差异

企业之间的盈利水平存在着一定的差异，。这是各个产业中常见的现象。不同领域的学者对此解释不同，比较有影响的解释有产业组织理论的SCP范式，企业战略管理的RBV理论。事实上，盈利水平差异并不仅仅是产业层面或企业层面的因素所决定的，还有一种更为重要的层面－策略群组起着非常重要的作用。因此，企业为了提高自身的盈利能力，必须不断地调整自己在整个策略群组中的地位，或者在不同策略群组之间进行流动。     

Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences

Interfirm strategic alliances appear to have become more important as a part of (international) business. In this contribution an attempt is made to clarify our understanding of the motives that lead firms to cooperate in their innovative efforts. Going beyond general theoretical statements and case studies, attention is paid to both sectoral differences in the motivation for partnerships as well as to contrasts in interorganizational features of technology cooperation. Based on a large sample of alliances the analysis reveals some major differences regarding the research orientation of contractual arrangements and organizationally complex alliances.     

Improving the Strategy-Innovation Link

In spite of the tremendous impact that new technology has had on every aspect of business operations, we have yet to develop a satisfactory way of incorporating innovation in our strategic thinking processes. However, we are making progress. A further step in our understanding is provided in this article by Gerhard Mensch, the recent winner of the Humboldt prize for his creative work in economics, and Vasudevan Ramanujam. They collaborate in developing a model that links strategy and innovation by relating innovation activities to strategic goals of the firm and the external pressures that are perceived by management.     

What happened with the grandiose plans? Strategic plans and network realities in B2B interaction

Research concerned with business relationships and organizational levels, respectively, has addressed companies' difficulties in realizing their strategies. Studies of business relationships explain this through actions and reactions among business partners. Organizational studies note gaps between strategic and operational organizational levels in perceptions and goals. This paper combines these perspectives to obtain new insights into why company strategies may not materialize. The purpose of this paper is to describe and discuss how actor bonds on various organizational levels in business relationships affect strategy realization. The paper shows that actors on similar organizational levels representing different companies may actually share more understandings and activities than actors within the same company. The paper contributes to research on dyadic business relationships by highlighting differences in perspectives on various organizational levels, adds insights into research studying organizations by including a business-relationship aspect, and increases understanding of why strategic plans sometimes fail to succeed.     

The impact of aligning business,IT, and marketing strategies on firm performance

In order to succeed in today's competitive business environment, a firm should have a clear business strategy that is supported by other organizational strategies. While prior studies argue that strategic alignment enhances firm performance, either strategic alignment including multiple factors or strategic orientation of firms has received little attention. This study, drawing on contingency theory and configuration theory, investigates the performance impact of triadic strategic alignment among business, IT, and marketing strategies while simultaneously considers strategic orientation of firms. A research model is tested through SEM and MANOVA using data collected in a questionnaire survey of 242 Yemen managers. The findings indicate that (1) triadic strategic alignment has a positive impact on firm performance and (2) there is an ideal triadic strategic alignment for prospectors and defenders. This research contributes to strategic alignment literature and managers' understanding of how to align business, IT and marketing strategies to improve firm performance.     

Crafting successful strategic technology partnerships

Despite the trend towards an increasing use of strategic technology alliances, mortality rates of cooperative agreements have always been extremely high. In this paper we argue that rapid economic and technological developments have overthrown traditional thinking about alliances and that firms could benefit from a new perspective on partnering. This new approach is referred to as High Touch Partnering. The new framework stresses the need for a balanced attention to strategic (re-)positioning, establishing adequate alliance capabilities, building business communities with partners and improved partner selection.     

中国战略性技术及其产业化的七大问题

在国际经济竞争越来越激烈的今天，大国之间的竞争更多地表现为战略技术的竞争和战略产业的竞争。所以，无论美国还是欧盟，无一不是把发展自己的战略技术和战略产业放到了重要的地位。中国作为一个大国，要想在世界竞争格局中获得相对优势地位，没有自己的战略技术和战略产业是不可能的。但是，中国发展自己的战略技术和战略产业，也存在着相当的困难。这些问题有些是来自战略技术和战略产业自身属性的，有些则是根源于中国基本经济结构和产业发展水平。21世纪是战略技术和战略产业竞争的世纪，谁拥有更多的战略技术并成功地使其产业化，谁将在未来的竞争中胜出。中国要在这样一场竞争中获得优势位置，必须解决好自身所面临的七个重大问题。即战略产业的高度战略化和低度市场化、高度战略化与高度市场化、低端技术市场化与高端技术政治化、巨量资金需求与筹资渠道狭窄、绝对比较劣势与相对比较优势、跟踪战略与超越战略、国家意志与民营载体。     

A framework, process and tool for managing technology‐based assets

Technology organisations centre their business on the development of new technology‐based offerings (i.e. products and services). The strategic management of technology‐based assets is therefore crucial for these organisations as an imperative for business success. However, these assets are often intangible and reflect future rather than current value and are therefore difficult to manage when using traditional managerial concepts. This study investigates integrative mechanisms addressing the management of technology‐based assets and offerings in a technology organisation. The approach taken was to study the views and practices regarding the management of technology‐based assets in a number of strategic units of a technology organisation (CSIR, South Africa). The study maintains that the management of technology‐based assets and offerings requires clear strategic management of the process of technological innovation with special emphasis on the management of the intellectual capital (IC) and the intellectual property (IP) of the organisation. The study describes a framework linking the core processes supporting the management of technology‐based assets and offerings with other organisational elements such as leadership, strategy, and culture. Specific key links between the core process of innovation and the strategic management of investment in technology‐based assets using a portfolio approach are discussed.     

An investigation of the relationship between behavioral processes, motivation, investments in the service business and service revenue

Despite the established benefits of services in manufacturing companies, very few managers are motivated to invest resources in extending the service business. On the basis of a combination of qualitative and quantitative research approaches, we illustrate that managers cannot be easily motivated. Managerial motivation to extend the service business in manufacturing companies is more like a process that must grow organically. To do so, managers have to overcome some of the typical behavioral processes of manufacturing companies. In greater detail, we explore how the disbelief in the financial opportunities of services risk aversion in exploiting strategic opportunities, setting overambitious objectives and an overemphasis on obvious causalities limit managerial motivation to extend the service business. If manufacturing companies can overcome these behavioral processes, the managerial motivation will increase, leading to more investments in the service business and thus enhancing service revenue and overall profitability.     

中国产业发展的道路和战略选择

中国作为一个发展中国家,在经济发展的一定时期,其工业化过程必然表现为发达工业化国家的产业转移。因此,中国大多数产业的发展将经历三个阶段:幼稚期、成熟期和强壮期。为了向产业发展的第三阶段拓展,企业战略大致可有三种选择:品牌导向战略、产能导向战略和因势借势战略。战略选择的关键可能并不是什么样的战略更正确和更可取,而在于谁有动机实施某种战略。企业战略选择不仅仅以利益关切性为转移,而且是由纯理性因素和越理性因素所共同决定的。从一定意义上可以说,纯理性是世俗的理性和无差异的理性,越理性是信仰的理性和有差异的理性。因此,企业战略选择决不仅仅是纯理性的逻辑推演结果,而是以一定的价值观为基础的“理想”追求和“使命”驱动。国家产业发展战略选择也具有某种相似之处,也总是基于一定的理性基础,而这种理性不仅仅以纯理性判断为准则,而且必然含有强烈的越理性因素,包括民族的、伦理的以及各种人文的价值观准则。因此,可行的产业发展战略必须以科学的发展观为基础,其价值体现不仅是顺应客观规律,而且要满足于实现一定的社会合意性目标。     

DEVELOPING A BUSINESS PERFORMANCE EVALUATION SYSTEM: AN ANALYTIC HIERARCHICAL MODEL

A good business performance measurement system is a very effective tool to motivate and monitor employees of a company. Although interest in creating performance measurement models is widespread, a well-designed system is rare. To be successful in today's competitive environment, a good performance measurement systems should incorporate strategic success factors. The model proposed in this study uses a three-level hierarchical schema to combine financial and nonfinancial performance measures and emphasizes external as well as internal business performance measures. In comparison with previous methods, such a method is more likely to cover a broader set of measures that include operational as well as strategic control. A prototype based on the analytic hierarchical model can be applied to other business situations.