Mapping the perspectives of coopetition and technology-based strategic networks: A case of smartphones

The aim of this study is to introduce and rearrange various coopetition perspectives and consider their implications in the context of a technology-based case study example from the smartphone industry and especially with the state of strategic networks between smartphone producers and operating systems at one chosen moment (autumn 2012). The case study analysis is based on a strategic map of the (technical) coalitions of firms (cf. Näsi et al., 2001). The most important introduced coopetitive features are present in the studied case. This study emphasizes in the literature review the dichotomy between contextual and procedural coopetition. However, this dichotomy is not solid in practice according to the studied case: the same firm might simultaneously have both contextual and procedural features. The study reveals this overlapping and multidimensional character of coopetition generally and its technological dimension in practice, and the general need to continue to study these coopetitive features. The study shows that contemporary theoretical typologies and frameworks of coopetition require experiments in order to direct the coopetition discussions toward the practical phenomena of business.     

How companies strategise deliberately in networks using strategic initiatives

In this paper we contend that there is little idiographic empirical research that considers the issue of deliberate networking action in full-faced network contexts. We address the issue through the use of strategic initiatives as a form of deliberate networking action. IMP research argues the ability of an organisation to manage in a network context that involves the pull of the network and the action of the individual organisation (Håkansson & Ford 2002; Möller & Halinen 1999; Möller & Svahn 2003; Ritter, Wilkinson & Johnston, 2004; Zolkiewski 2007). Yet the paradox logic reminds us that a firm still needs to act, to try and control and influence, to suggest ideas and initiatives, to set limits and to seek opportunities. Strategic initiatives allow for conscious strategising at the same time as ongoing adaptations in activities and resources occur. Based on two complementary case studies we suggest five approaches for deliberate strategising in full-faced network contexts. These are i) strategising based on network pictures in the absence of direct interaction, ii) strategising in the presence of a network audience, iii) strategising among deliberate equals, iv) strategising among imaginative equals, and v) strategising as open and absorptive bystander. The five approaches can be used separately or in combination.     

A theory of global strategic alliances: The case of the global auto industry

The theory articulated in this paper suggests that the desire to reduce demand and competitive uncertainty are two separate, important motives for alliance formation. Taking this as a starting point, we predict the configuration of horizontal alliances that we might expect to observe within an industry when firms experience these uncertainties to different degrees. An empirical test of this theory using data from the global auto industry yields results consistent with the view (1) that alliances are a device for reducing both the uncertainties that arise from unpredictable demand conditions and those that arise from competitive interdependence, and (2) that variation of demand uncertainty and competitive uncertainty across firms explains differentials in both the intensity and structure of their horizontal alliance activity.     

Rise of strategic nets — New modes of value creation

This paper focuses on the type and management of intentionally created business networks called nets. Nets are extensively being used to achieve a variety of benefits over those of a single firm or market transaction. We propose that the effective management of different types of business net is dependent on their underlying value creation logic. Based on this notion a value creation framework of three generic net types - ‘current business nets’, ‘business renewal nets’, and ‘emerging new business nets’ - is suggested. We argue that they pose widely different conditions and requirements for net management. The management mechanisms of these basic net types are then identified and discussed. We contend that the proposed contingency framework captures the complexity and variety of the expanding strategic business nets in a more valid way than the extant classifications of network organizations. The paper contributes to the emerging theory of network management.     

The moderating effect of innovative capacity on the relationship between real options and strategic flexibility

In dynamic sectors, organizations should be capable of adapting to unpredictable environmental conditions. Strategic flexibility grants organizations the capacity to respond to the changes in their environment in the direction required, renewing their strategies and making the required organizational changes. The goal of this study is to analyze how the use of real options relates to strategic flexibility from a managerial capacity perspective. Through an empirical study performed on European firms, we confirm that innovative capacity exercises a moderating role between real options and strategic flexibility. The fact that a firm's management has foreseen and contemplated real options does not necessarily lead to their execution; they must also be accompanied by some innovative capacity.     

A strategic skill based model of supplier integration and its effect on supply management performance

Supplier integration is a tool to help organizations gain competitive advantage. Strategic supply management skills and the supply management function's perceived status are hypothesized as antecedents to supplier integration leading to supply management performance. The sample for this study includes 152 executive level supply management professionals. The empirical results suggest that strategic skills and perceived status are essential antecedents to supplier integration and subsequent performance. Further, the relationship between strategic skills and performance is mediated by supplier integration. Results of a dominance analysis also suggest which strategic skills are most likely to explain status integration, and performance. These findings have significant implications for supply management theory and practice.     

The intersection of strategic management and supply chain management

Strategic management and supply chain management (SCM) have overlapping interests, yet there has been little exchange between them. We examine areas of overlap and suggest how insights from each field can complement and support the other. Specifically, several of strategic management's theories and its emphasis on explaining firm profits should be useful to SCM. SCM offers to strategic management a new level of analysis and possibly a new type of organization. Overall, we argue that increased interaction between these important areas will benefit knowledge development in both and thereby enhance organizations' ability to meet their goals.     

Exploring the concept of coopetition: A typology for the strategic moves of the Finnish forest industry

The Finnish forest industry is sustainable, well-established, internationally oriented and successful. For companies in such a basic industry, an industry that features mainly bulk products and relatively small domestic markets, sustainability in business may hinge on long-term strategic choices. It is proposed in this paper that it is not only strong domestic competition, but also—and especially—coopetition traditions (simultaneous cooperation and coopetition) that are the crucial factors contributing to the success of the industry. This article contributes to the literature by providing industry-level tools, namely a coopetition framework and combined coopetition typology. The findings indicate that coopetition traditions have been present throughout the activities of the Finnish forest industry, enabling sustainability of the industry to a significant extent. Managerial and theoretical implications are also discussed.     

Temporality of resource adjustments in business networks during severe economic recession

Business cycles are not a new phenomenon. Firms have in the past found ways to, more or less successfully, adjust their resources to such cyclical changes. However, the combination of a global crisis in financial markets and a severe down turn in demand on globally interdependent markets in the “real” economy is unprecedented which suggests that established business practices to handle cyclical variations are challenged. In this article we focus on temporal aspects of resource adjustments, taking into account also network interdependencies in contemporary markets. We develop a conceptual framework towards understanding how business actors construct temporality of resource adjustment activities. We relate temporal orientation of actors to temporal profiles of activities, seeing them as both influenced by actors' network orientation.     

Re-assessing value (co)-creation and cooperative advantage in international networks

From the Fifth Meeting of the IMP Group in Asia, the ten papers selected for this special edition have been grouped under four broad themes: network evolution and performance; networks in emerging contexts; value (co)creation; and network structure, position, and performance. Not unexpectedly, many of the themes overlap, reflecting both the complexity and diversity of network theory.     

Learning: The interface of quality management and strategic alliances

In this paper, we investigate the practice of quality management in strategic alliances. By employing a relational view of inter-organizational competitive advantage, the paper addresses the concept of quality management in strategic alliances and networks. We argue that institutional/network relationships influence the practice of quality within a network. In that regard, firms that have adopted quality management practices are more effective in managing and coordinating their interactions with other firms in the network, which results in their enhanced learning capability within the alliance.The proposed framework recognizes the role of trust and cooperative learning as critical factors that affect the success of strategic alliances. It has been argued that firms within an alliance need to achieve the paradox of control and learning. We examine the role of trust as a control mechanism in strategic alliances and address the importance of cooperative learning within alliances. Several hypotheses have been proposed and future research has been outlined.     

A survey of market orientation research (1995-2008)

Since 1990, market orientation (MO) has received considerable attention in the marketing literature. Little research so far provides preliminary and useful information to facilitate good understanding of MO. This study presents a comprehensive survey of extant marketing literature using keyword classification from 1995 to 2008. It serves as a tutorial and aims to help the beginner researcher or practitioner to have access to MO, including its definitions, applications and problem domains. Based on the scope of 514 MO articles, we find that the number of publications on MO has significantly increased since 2001 with steady growth in recent years. In addition, these selected articles are scattered across 153 journals and mostly published in 10 academic journals. The contribution of our paper is to provide a means (i.e., keyword index) to conceptualize and operationalize the coverage of MO. It provides a conceptual framework to organize this vast body of research. This study ends with some discussions and conclusions.     

The impact of market freedom on the adoption of third-party electronic marketplaces: A fuzzy AHP analysis

Electronic-marketplace (EM) is an innovative model for interfirm transactions that are undertaken via the Internet. However, in view of higher investment costs and other associated risks, many small and medium-sized enterprises (SMEs), instead of establishing their own EMs, turn to adopt third-party-hosted EMs. In literature, most relevant studies to the adoption of the third-party-hosted EM were conducted on the research contexts of free market. Industries under the protection of government policies may have limited degree of market freedom, different from industries without these protection policies. Thus, this study intends to compare the decision choice of EM adoption between industries with various degree of market freedom. The decision choice of EM adoption consisted of many strategic factors that were constructed in terms of a three-layer hierarchical structure proposed in this paper. A fuzzy analytic hierarchical process (Fuzzy AHP) was utilized to estimate the relative importance of these individual strategic factors involved in the decision-making process of adopting third-party EMs. The research findings indicated there were some similarities and differences in the decision choice between the two industries of interest. The variety of market freedom can account for the differences in the decision choice of EM adoption. In addition to enhancing our understanding of the EM adoption decision of participative companies, the research findings also provide insightful information to third-party EM providers so that they may improve the effectiveness and efficiency of resource allocation.     

Factors of broadband development and the design of a strategic policy framework

The paper analyses the household use of broadband technology and services in EU countries in an attempt to find the main reasons which explain the differences seen among countries. With the use of factor analysis, the underlying factors are identified as: (1) enablers and means; (2) the use of services; and (3) the ICT sector's development. Based on these findings, a two-dimensional framework that enables the classification of policy actions depending on the influencing factor and type of influence is developed. The framework can be used to analyse what is the appropriate set of policies at the national and regional governmental levels leading towards the better diffusion of new broadband (BB) technologies and services.     

Antecedents and consequences of the strategic orientations in new product development: The case of Chinese manufacturers

The objective of the present study is to advance the understanding of the role of the strategic orientation of the firm for successful new product development (NPD), in the context of Chinese manufacturing firms. Through field research accompanied by a review of the related literature, this study identifies customer orientation and technology orientation as crucial strategic components that are important to successful new product development. This research proposes a conceptual model of strategic orientations, in which firm-internal (organizational support) and -external (environmental turbulence) factors are expected to influence strategic orientations, which, in turn, impact NPD performance. The model is tested using data collected from a large-scale survey of 232 manufacturing firms in China. The results largely support the hypotheses derived from the conceptual model. First, organizational support and environmental turbulence have a positive influence on the implementation of strategic orientations. Second, the two strategic orientations show a different pattern of performance implications.     

Foreign entry and survival: Effects of strategic choices on performance in international markets

This paper investigates effective strategies that can reduce the risk of failure in international expansion by examining the entry and survival of foreign subsidiaries in the U.S. computer and pharmaceutical industries over the 1974-89 period. Using a hazard rate model, we examine the effects of (1) diversification strategies, (2) entry strategies, and (3) organizational learning and experience on the survival probabilities of foreign subsidiaries. The results show a higher exit rate for foreign acquisitions and joint ventures than for subsidiaries established through greenfield investments. The results also indicate a higher exit rate for subsidiaries that diversify than for those that stay in the parent firm's main product areas. Finally, the results show that firms benefit from learning and experience in foreign operations, which improves the chances of success for subsequent foreign investments. These findings shed light on the dynamic process of international expansion and the evolution of the multinational corporation.     

Managing knowledge leakage in strategic alliances: The effects of trust and formal contracts

Although strategic alliances offer opportunities for knowledge sharing and leveraging, they also carry the risk of knowledge leakage to partner firms. In this study, we conceptualize the notion of knowledge leakage as a multidimensional construct and formalize its measurement. We examine the effects of two dominant governance mechanisms—trust (goodwill trust and competence trust) and formal contracts on knowledge leakage. A survey of 205 partnering firms in China indicates that goodwill trust has a U-shaped relationship with knowledge leakage, whereas competence trust has a negative impact. Moreover, goodwill trust and competence trust interact differently with formal contracts on knowledge leakage. This study offers important theoretical and managerial insights for firms to manage knowledge leakage in strategic alliances.     

Success is not enough: The spectacular rise and fall of a strategic alliance between two multinationals

This article analyzes a strategic alliance between two multinational companies from the same geographical region. Originating in the same industrial culture and with technically advanced, complementary products, they formed a strategic alliance for international growth in 1947. Despite significant changes in the market over the years, the companies remained market leaders and icons of a successful alliance until 1988, when the alliance suddenly collapsed. The study describes the alliance process from a long-term perspective using a theoretical framework based on motives, resources, competitive advantage, trust and performance. Although the alliance is no more, it is found to have made a substantial contribution to the collaborating firms with respect to their growth and expansion in the world market. Both partners achieved what they expected from the alliance. They also have developed well as competitive companies thereafter. The sudden end to the collaboration can therefore not be seen as a failure. However, it is argued that the separation process, as the process of alliance formation, needs to be taken seriously, and managers must give sufficient time and effort to ensure that the break-up becomes non-dramatic and less painful.     

The impact of strategic account managers' behaviors on relational outcomes: An empirical study

This paper explores the impact of some behaviors of strategic account managers on the relational outcomes of the relationships they are in charge of. Based on a review of literature on personal selling and strategic account management, we contribute to a greater understanding of the role of specific strategic account managers' behaviors in fostering synergistic solutions, role performance and customer trust. Results of the empirical study clearly show that the use of customer orientation has a strong influence on customer trust by increasing strategic account managers' role performance and stimulating synergistic solutions. Conversely, a selling orientation negatively affects synergistic solutions, thus decreasing customer trust. Finally, team selling has a positive impact on the attainment of synergistic solutions, thereby fostering customer trust. Based on these findings, managerial and research implications are discussed.     

Examining the effect of complexity in strategic group knowledge structures on firm performance

A developing stream of research in the strategy field explores the competitive structure of industries from the perspective of industry participants. This work has demonstrated that managers develop strategic group knowledge structures in order to make sense of their competitive environment. This study extends this line of research by examining the complexity evident in the strategic group knowledge structures developed by firms' top management teams and assessing the relationship between complexity in these knowledge structures and subsequent firm performance. Specifically, we examine the complexity of top managers' knowledge structures regarding their competition using a sample of 76 top management teams from banks in three U.S. cities. Using hierarchical regression, we find a significant relationship between the complexity of cognitive strategic groups and subsequent firm performance. These results suggest that the structure of the cognitive templates that top managers use to understand their environment and the actions of their competitor influence the degree of strategic success of their firm. Copyright © 2002 John Wiley & Sons, Ltd.