Alliance-Based New Product Development Success: The Role of Formalization in Exploration and Exploitation Contexts

Purpose: Although alliances offer tremendous strategic potential, firms still struggle to successfully manage new product development alliances (NPD alliances). A prominent explanation for this is the institutional economics' view (see Williamson 1985 Williamson, O. E. 1985. The economic institutions of capitalism: Firms, markets, relational contracting, New York: The Free Press.  [Google Scholar]) that, in general, a key disadvantage of alliances versus vertical integration is that administrative control mechanisms are weaker. Here, a key control mechanism is formalization (the use of explicit rules to govern business activities).

However, regarding formalization's influence on both NPD and alliance performance, conceptual views and empirical findings are mixed, which suggest that unexamined variables moderate formalization's influence on NPD performance.

Therefore, it is surprising that there is no research on whether formalization's influence differs in alliances pursuing an NPD exploration strategy versus an NPD exploitation strategy because both (1) require varying levels of freedom of action and adherence to procedural rules to achieve success, and (2) are extensively employed in NPD.

Further, there is also surprisingly little intrafirm NPD and non-NPD alliance research on formalization in exploration and exploitation contexts because here as well formalization's influence on performance (1) is central, and (2) differs based on the project's innovative and learning intent.

The purpose of this research is to begin to close important literature and industry practice knowledge gaps about formalization's influence on NPD alliance performance in exploitation versus exploration strategic contexts.

Originality, value, and contribution: This research is the first examination ever of two key NPD strategies—exploration and exploitation—in an NPD alliance context. The research sheds light on conflicting views about formalization's NPD performance-enhancing and inhibiting aspects, and offers implications for industry best practices.

Methodology/approach: Empirical examination of survey data from 151 NPD alliances via hierarchical regression and tests of group moderation.

Findings: Results shed light on when and why formalization moderates the influence of key fundamental alliance success mechanisms on NPD alliance performance based on strategic context.     

企业创新悖论与两栖组织模式——基于海尔空调产品开发团队案例的研究

While knowledge exploration and exploitation represent two distinct activities requiring corresponding organizational arrangements, new product development calls for a dynamic combination of the two. Based on a systematic review of the paradox between knowledge exploration and exploitation and various resolving strategies, this research extends the construct of organizational ambidexterity from dual structure to ambidextrous capabilities, and suggests a dialectical method for reconciling this paradox at lower organizational levels. Based on a case study on the development teams of air conditioner in Haier, we find that ambidexterity is a multi-level construct existing not only at the organization level but also at lower levels such as teams and individuals like model managers. Translated and revised from Jingji Guanli 经济管理 (Economic Management), 2008, (11): 44–49 and Jingji Lilun yu Jingji Guanli 经济理论与经济管理 (Economic Theory and Business Management), 2008, (2): 51–57     

The Effect of Cognition,Institutions, and Long Term Orientation on Entrepreneurial Ethical Behavior: China vs. U.S.

This paper presents a theoretical framework to examine if entrepreneurs think and behave differently at various phases of a venture, namely opportunity exploration and exploitation stages. It is also proposed that there is a difference between entrepreneurs in China and in the U.S. due to institutional voids. Furthermore, we argue that the difference increases across the two stages of the entrepreneurial process. Specifically, at the exploration stage, entrepreneurs in China and the U.S. behave similarly when ethics is concerned. However, entrepreneurial unethical behaviors seem to be more rampant at the exploitation stage in China compared with that in the U.S. Lastly, we provide future research directions to build a stream of research.     

中国港口民营化改革:进展、问题与对策

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Synergies and tensions between and within domestic and international market activities of firms

The distinction between domestic and international market activities has an idiosyncratic meaning for international business research. This study examines the significant yet unclear role of domestic market activities for the internationalizing firm through the theoretical lens of exploitation and exploration. By means of five qualitative case studies, we show that both the dynamics between domestic–international market activities and the interplay between exploitation–exploration are intrinsically concerned with synergies and tensions. Our findings uncover how firms leverage these synergies and manage these tensions that manifest between and within their domestic and international markets. Synergies and tensions are found to revolve around ambidexterity, networks and organizational market information processes.     

Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore

The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evolution. We argue that networks – both local and non-local – play an important role in the development of cluster. We propose a non-linear relationship between cluster evolution phases and the type of network ties most prominent. Our study also outlines the role that embedding, expansion, and extension of ties plays in transitioning cluster from one phase to the other. The consideration of non-local ties is rather nascent in the cluster literature and promises to enhance the understanding of how clusters develop at both levels – policy as well as firm.     

Microfoundations of network exploration and exploitation capabilities in international opportunity recognition

While international entrepreneurship (IE) recognizes opportunity recognition (OR) as a central activity and the prominent role of network capabilities in OR, it is not informative as to how different network capabilities influence OR in international markets. We utilize dual network capability through the lens of exploration-exploitation to better understand how these two different capabilities influence the identification of international opportunities. Given that microfoundations perspective and prior experience in IE are under-developed and under-theorized, we explore founder’s prior experience as an essential microfoundation for the dual network capability. By employing structural equation modeling on a sample of 647 early internationalizing firms from a developing country, the study demonstrates that founders’ prior experience is a significant microfoundation of dual network capability in international OR. However, both exploration and exploitation capabilities fail to bring new opportunities in a changing market environment. A post-hoc analysis reveals that at a higher level of market change, younger firms benefit more from network exploration, whereas older firms achieve greater success when leveraging benefits from network exploitation. The study concludes with implications and future research avenues.     

Pattern of information technology use and relationship learning in international customer-supplier relationships

While information technology (IT) has been widely applied in global supply chain relationships, academic research in this area is still limited. Drawing on resource-based view (RBV) and interpartner learning theory, we investigate how different pattern of IT use (IT exploitation and IT exploration) influences relationship learning and performance in international customer-supplier relationships. Further, we look into two contingent conditions including technological uncertainty and cultural distance in the proposed model. Based on 240 Taiwanese-based electronics suppliers, this empirical study reveals that only exploration side of IT use was significant on relationship learning and finds significant positive relationship between relationship learning and relationship performance. Moreover, the effect of IT exploration on relationship learning was positively moderated by technological uncertainty but negatively moderated by cultural distance. However, the effect of IT exploitation on relationship learning was negatively moderated by technological uncertainty but positively moderated by cultural distance.     

Exploring location‐specific assets and exploiting firm‐specific advantages: an integrative perspective on foreign ownership decisions

Exploiting existing assets and exploring new assets are two major and often concurrent forces driving firms to invest abroad. Moving beyond prior attention to their separate effects on foreign ownership decisions, this study examines their integrative impact. I develop hypotheses aligning a set of firm‐specific advantages with asset‐seeking motives, and test these relationships on a sample of Taiwanese overseas investments. I find that wholly‐owned subsidiaries are preferred to joint ventures when multinationals are able to tap into host innovatory dynamism by employing extant technological capabilities and to access local natural resources by leveraging corporate scales. Nonetheless, multinationals face difficulties in deploying marketing knowledge in different contexts and thus are more likely to choose joint ventures for an aggressive foreign market entry. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Sustainability of A Pay‐as‐you‐Go Pension System in A Small Open Economy with Ageing,Human Capital and Endogenous Fertility

The aim of the article is to theoretically investigate if a pay‐as‐you‐go (PAYG) pension system is sustainable in the presence of a declining population and increasing longevity of the retired generation. For this purpose, we use an overlapping generation model with endogenous fertility, endogenous longevity and human capital accumulation in a small open economy. We find that pensions will always increase as long as it is beneficial for parents to invest in human capital. Furthermore, we get the result that the ratio between pension benefits and the consumption of the young generation will strive to a positive limit value, and that a pure PAYG pension system will not run into any solvency problem due to a decreasing fertility rate or ageing.     

制造企业创新网络与双元性学习——基于垂直、水平创新网络的比较研究

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Uncovering the value of planning in new venture creation: A process and contingency perspective

Researchers are engaged in a major debate on the value of business planning in new venture creation. This study suggests a potential resolution by applying a process and contingency perspective. The results indicate that planning is beneficial, yet planning processes need to be governed by different planning regimes depending on the type of founding environment. In highly dynamic environments, entrepreneurs will get most value from planning when they focus on select planning activities, and speed up the planning task. In less dynamic environments, they are better of pursuing a munificent approach to planning. The analysis thus reveals a major component of theorization on business planning that has been neglected in previous discussions. As for entrepreneurship teaching and practice, the findings suggest the importance of an adaptive, “toolkit” approach to business planning. Hypotheses were developed based on information-processing and decision-making theory and were tested with an ordered probit analysis on a sample of 100 start-ups backed by venture capital.     

Managing digital business platforms: A continued exercise in balancing renewal and refinement

Central to the evolution of a digital business platform is the organization’s ability to balance exploration (renewal) and exploitation (refinement) simultaneously. Drawing on prior research—including digital platforms, contradictory tensions, and organizational ambidexterity—and our own experience investigating digital business platforms in organizations, this article provides insights into how executives can manage this evolution successfully. More specifically, we present a framework recognizing three pairs of organizational capabilities (i.e., identifying-nourishing, expanding-legitimating, and augmenting-embedding) that enable balancing renewal and refinement of the platform over time. We close by providing critical managerial practices that executives can use in anticipating, adjusting, and evaluating the evolution of a digital business platform over time, including its initiation, development, and growth.     

GATT过境自由争端第一案评析——评哥伦比亚入境口岸限制措施案

在对哥伦比亚有关入境口岸限制措施的审理中,WTO专家组第一次适用《关税与贸易总协定》第5条做出裁决。在裁决中专家组解释了该条的适用范围和所规定的具体义务,明确了成员方在不同情形下对过境运输货物的义务,对成员方有关贸易管理措施的实施具有指导意义。     

一种低截获卫星通信技术及其抗侦测性能分析

针对海上低截获通信应用,提出了一种低截获卫星通信技术并分析了其抗侦测性能。通过宽频带、低信息速率实现高增益扩频,系统设计上综合高工作频率、高增益天线等措施,降低卫星通信信号的功率谱密度;结合卫星链路计算,重点分析在同步轨道、低轨道电子侦察卫星侦测时的抗截获性能。理论分析和数值计算结果表明,增大扩频增益和天线增益可有效对抗同步轨道电子侦察卫星天线增益优势,对抗低轨道电子侦察卫星轨道优势,实现卫星低截获通信。     

商科院校“五阶段·五主题”教育探索与实践——以安徽财贸职业学院为例

“五阶段·五主题”教育模式的提出与推行,旨在贯彻国家关于深化教育改革,全面推进素质教育的要求。在此背景下,安徽财贸职业学院从学校实际情况出发,因地制宜,制定并实施了这一教育模式,即以“爱心、诚信、责任”为核心,以徽商文化为基础,以财商职业岗位技能培养为依据,促使学生树立从事财贸事业的使命感、责任心并具备相应能力。实践证明,安徽财贸职业学院的具体举措将思政教育与专业教育、学院统一引导与各系部分项实施、入学教育与就业创业指导、校内教育与社会教育有机地结合到了一起,取得了显著成效。     

高大平房仓大豆安全储藏技术探讨

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中文综合性科技期刊发展现状、挑战和策略——以12种自然科学综合类期刊为例

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A multidimensional concept of uncertainty and its influence on the entry mode choice: An empirical analysis in the service sector

To date there is limited empirical evidence as to how the nature of uncertainty determines the mode of entry into international markets. The aim of this work is to further analyse this relationship by presenting a multidimensional concept of uncertainty within the context of the service sector. Given the complexity and heterogeneity of this sector, we propose that uncertainty influences the choice of entry mode, but that the choice patterns may be different according to the type of service.From a sample of 328 decisions of entry into international markets, this study identifies differences in entry mode choice patterns between capital intensive service firms and knowledge intensive service firms.