Strategic factor markets,scale free resources,and economic performance: The impact of product market rivalry

This paper analyzes how scale free resources, which can be acquired by multiple firms simultaneously and deployed against one another in product market competition, will be priced in strategic factor markets, and what the consequences are for the acquiring firms' performance. Based on a game‐theoretic model, it shows how the impact of strategic factor markets on economic profits is influenced by product market rivalry, preexisting competitive (dis)advantages, and the interaction of acquired resources with those preexisting asymmetries. New insights include the result that resource suppliers will aim at (and largely succeed in) setting resource prices so that the acquiring firms earn negative strategic factor market profits—sacrificing some of their preexisting market power rents—by acquiring resources that they know to be overpriced. Copyright © 2014 John Wiley & Sons, Ltd.     

Innovation, imitation, and new product performance: The case of China

This paper compares the effects of innovation and imitation strategies on new product performance and examines their contingency across different market conditions in China. The empirical results from a cross-industry survey show that, compared with an imitation strategy, an innovation strategy leads to better new product performance. Furthermore, the benefits of an innovation strategy over an imitation strategy become stronger as market demand is increasingly uncertain, technology changes rapidly, and competition intensifies. The author compares the findings with the predictions put forward in previous Western-based literature and discusses the implications of the findings in light of China's unique market characteristics.     

学习型战略联盟:企业知识的创新与外溢

战略联盟是一种全新的现代组织形式.由于知识的特殊性,使知识交易存在市场失灵现象,企业为了转移和学习知识建立学习型联盟.不同学习联盟类型与不同的学习方式相关,我们区分了三种学习方式,探讨了与之相适应三种学习型战略联盟类型.并进一步指出学习型战略联盟的知识创新和学习竞赛导致的知识的外溢问题.     

Innovation and competition: The role of the product market

We study how competition impacts innovation (and welfare) when firms compete both in the product market and in innovation development. This relationship is complex and may lead to scenarios in which a lessening of competition increases R&D and consumer welfare in the long run. We provide conditions for when competition increases or decreases industry innovation and welfare. These conditions are based on properties of the product market payoffs. Implications for applied work and policy are discussed.     

Scope,timing and strategic adjustment in emerging markets: Manufacturer strategies and the case of MRI

This study examines the realized strategies of all domestic manufacturers in a growing, high technology, industrial market characterized by high levels of regulatory, demand, and technological uncertainty. These manufacturers have behaved quite differently and experienced varying levels of success in the market. A typology of entry strategies grounded in an intensive analysis of these data is presented. Specifically, it addresses the timing and scope of a firm's entry into the market, strategic adjustments over time, and the impact of these decisions on the firm's performance. It is proposed that these strategies represent trade-offs between the risks of resource commitment and competitive preemption. Specific, testable hypotheses based on this typology are also provided.     

Supporting new product commercialization through managerial social ties and market knowledge development in an emerging economy

While it has been advocated that the generation and application of market knowledge shape marketing capabilities to commercialize new products, the weak institutional environment makes access to critical market knowledge challenging in emerging economies. Critically, managerial social ties with business and political institutions may complement the firm’s market orientation (MO) to obtain market knowledge that is not available in the open market in emerging economies. This study draws attention to the differential roles of business and political ties in complementing or inhibiting the effects of market orientation on exploratory and exploitative marketing capabilities in one of the “Next Eleven” emerging economies, Iran. The results help firms operating in emerging economies to identify the conditions under which business and political ties help to overcome institutional limitations, complement market-oriented efforts, and successfully commercialize new products.     

Sustaining superior performance in an emerging economy: an empirical test in the Indian context

We demonstrate a negative relationship between pro‐market reforms and the sustainability of superior profits in an emerging economy. The decline in sustainability of superior profits shows that pro‐market reforms bring significant threats in addition to the various opportunities such as greater availability of production factors and greater freedom to enter and operate businesses highlighted in the extant literature. Our study thus contributes to a more complete conceptual understanding of the performance consequences of pro‐market reforms in emerging economies. We also show that investment in research and development and greater investments in marketing and advertising are firm‐level resources that provide a measure of protection against the erosion in sustainability of superior profits associated with pro‐market reforms. Copyright © 2011 John Wiley & Sons, Ltd.     

Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market

The paper analyzes the demand and supply characteristics of the Indian telecommunications market, with the aim of contributing to the debate on the effectiveness of universal access policies in developing countries. The discussion is supported by some empirical evidence derived from a small time-series-cross-section dataset, containing mainly information on the fixed-lines segment of the market. The analysis suggests that the price elasticity of demand for fixed lines might be sensibly higher than the levels usually found in developed countries, while the crucial role of income and other sociodemographic variables seems to be confirmed. The paper also studies the impact of cellular penetration on fixed-lines diffusion. The results suggest the existence of a (positive) network effect in low penetration areas, while substitution (displacement) seems to arise in the most developed ones. Finally, the paper analyzes the supply side of the market, to assess the impact of market competition on investment. Competition seemingly helps stimulating investment in the most developed areas, but does not seem to have a significant impact in the less developed ones.     

Beyond the firm's initial declaration: Are preannouncements of new product introductions and withdrawals alike?

Previous preannouncement research has primarily focused on product preannouncements regarding the firm's intention to introduce a new product and, for the most part, has ignored preannouncements that update the status of new product introductions (e.g., delays in launch dates and cancellation of new product programs). This study's goal is to examine if different factors influence preannouncements of new product introductions (NPIs) versus new product withdrawals or delays (NPWs). A model of six antecedents that could influence a firm's propensity to issue NPIs and NPWs is developed and tested using a sample of 265 CEOs and Presidents from manufacturers of new products. Three of the antecedents are organizational in nature; specifically, first mover predisposition, firm information interactivity, and reputation building. Also, the effects of two environmental constructs, industry innovativeness and competitive hostility, are examined. Finally, the model incorporates the effect of buyer involvement on a firm's propensity to issue NPIs and NPWs. The results indicate that NPIs and NPWs are very alike regarding their antecedent factors. Reputation building, defined as a firm's tendency to pursue a high profile leadership position within its industry, and buyer involvement are the primary motivators of a firm's propensity to issue both NPWs and NPIs. Future directions for research include the development of a normative preannouncement framework and the examination of NPIs and NPWs as nonadvertising forms of marketing communication targeted at numerous audiences such as buyers, employees, channel members, industry influencers (e.g., business and trade related press), and investors.     

Customer interactivity and new product performance: Moderating effects of product newness and product embeddedness

Understanding customer needs which drive significant product innovation is particularly challenging for new product development (NPD) organizations. Research has addressed how organizations benefit from interacting with customers, but more conceptualization is needed into the dimensions of the customer interaction process. In a business-to-business (B2B) setting, customer interactivity is conceptualized as a multi-dimensional construct consisting of bidirectional communications, participation, and joint problem solving during NPD projects. Drawing upon organizational information processing theory, customer interactivity is hypothesized to be positively related to customer information quality when developing highly innovative products, but not when developing modifications or extensions of existing products. Another condition affecting this relationship studied is the embeddedness of the new product in the customer's business environment. Customer interactivity is hypothesized to be positively related to information quality for highly embedded product, but not for low embedded product. Results from a sample of NPD organizations in several B2B industries support these hypotheses. The study contributes to the marketing literature and practice by identifying important dimensions of the customer interaction process which lead to more proactive organizations, and identifying two moderating conditions of the customer interactivity and NPD performance relationship.     

Development and return on execution of product innovation capabilities: The role of organizational structure

This paper conceptualizes and tests an integrated model that combines the dual-core and ambidextrous models of product innovation. The integrated model distinguishes the development and return on execution of radical and incremental product innovation capabilities. The authors argue that organizational structure plays an important dual role as an (a) antecedent to the development of radical and incremental product innovation capabilities and (b) as a moderator in determining the new product performance returns from executing such capabilities. Using a sample of high-tech firms, the study finds that organizational structure is more consistent in predicting the execution of product innovation capabilities into new product performance than in predicting the development of such capabilities. For example, the effect of radical product innovation capability on new product performance is negative but nonsignificant under a formal structure, while the same effect is positive under an informal structure. Conversely, the effect of incremental product innovation capability on new product performance is positive under a formal structure, while the same effect is negative under an informal structure. The implications for managing different types of product innovation capabilities under formal versus informal structures and their effects on new product performance are discussed.     

Assessment of mobile technology use in the emerging market: Analyzing intention to use m-payment services in India

The potential use of mobile payment is enormous and it is receiving attention as an alternative mode of payment worldwide. The present study develops a conceptual model to analyze the intention to use mobile payment services in the emerging market. Data was collected in India, one of the biggest emerging market, through a survey. The research hypotheses were tested using structural equation modeling approach. The results offer support that innovativeness, stress and perceived ease of use influence the perceived usefulness of mobile payment services. Subsequently, perceived usefulness, perceived satisfaction, perceived risk and perceived trust influence the intention to use mobile payment services. The findings provide alternatives for companies to consolidate this technology-based payment service.     

Stimulating smallholder dairy market and livestock feed improvements through local innovation platforms in the Himalayan foothills of India

Innovation platforms (IP) are increasingly used in agricultural development to address complex issues which require diverse actors to work jointly to identify constraints and implement solutions. Documenting outcomes associated with the use of IPs and identifying factors linked to positive results are important if performance is to be optimized. This study investigates changes in smallholder dairy production and marketing associated with the establishment of a series of innovation platforms in Uttarakhand, Northern Himalayan region, India. We studied the links between innovation platform processes and outcomes using systematic documentation of meetings and interventions along with a post-intervention assessment which compared households from villages with and without the innovation platform intervention. We found that households participating in IPs showed increased dairy milk sales, increased income and improved breeding and feeding practices. Factors associated with these outcomes were the process of issue identification, the diversity of actors participating in meetings and the quality of follow-up on the agreed action plans.     

Sense-making and agenda construction in emerging business networks — How to direct radical innovation

This paper focuses on the role of sense-making and development agenda construction in emerging business fields characterized by radical innovation. First, the networked environment of emergent business fields is described. It is shown that both sense-making and agenda construction are key cognitive processes in managing in this environment. Then, a framework describing the dimensions of managerial sense-making and its antecedent factors is suggested and discussed. Finally, the phenomenon of agenda construction and communication and its role in influencing the direction of business field development is examined. Discussion of the theoretical and managerial implications concludes the paper. The paper provides significant new understanding on the roles of sense-making and agenda construction in the emergence of new business fields. It contributes both to network theory of emerging fields and management in radical innovation contexts.     

Across the threshold: Role of performance and compatibility in innovative new products' market penetration

Both academicians and practitioners agree that there exists a critical threshold to cross for an innovative new product to be able to achieve ultimate market penetration. In this article, the authors characterize the threshold as depending upon innovation characteristics: performance and compatibility, in particular. Based on the insights from evolutionary games, several numerical simulations are conducted to investigate how the critical threshold changes as each parameter representing the innovation characteristics undergoes a change. The analysis results confirm that relative advantage and compatibility are of critical influence in impacting the threshold and thus the successful market entry. Moreover, the effect size was different depending on the size of the firm's proprietary customer base. Based on the findings, discussion on new product design strategies for companies having different market positions (i.e., new start-up firms, established firms, and incumbent market leaders) is provided.     

中国建筑业技术创新面临的问题与创新战略

通过对中国建筑业技术进步的研究,发现建筑业研发投入不足且缺乏战略性、成果转化能力薄弱、创新阻力较大、企业创新能力较弱、合作创新网络未普遍形成、缺乏国际化的技术标准与技术扩散战略指导等,是我国建筑业技术创新面临的主要问题;明确了未来5年我国建筑业科技投入与产出、重点发展的技术领域、建设创新型建筑业等战略目标;提出了实现战略目标的总体思路和建议,包括构建中国建筑业科技政策研究的科学路径、改进和完善建筑业科技与创新政策、增进创新体系中相关方的合作伙伴关系、营造健康的创新文化与创新环境、开展自下而上的制度创新和建筑技术标准国际化活动等。     

Technical risk and new product success: An empirical test in high technology business markets

Following a methodology similar to the one used in Cooper's NewProd studies, this study examines the impact of technical risk on the ability to predict new product success in high technology business markets. Cooper's original 48 new product characteristics along with 10 new items measuring technical risk are used in examining 406 actual industrial new product success and failures. The findings show the importance of the addition of technical risk assessment in predicting the potential success or failure of new high technology industrial products.     

Entry-timing,business groups and early-mover advantage within industry merger waves in emerging markets: A study of Indian firms

Merger waves are periods of intense and concentrated merger activity which exhibit a wave-like pattern. Drawing upon the resource-based view, we examine the timing of entry and early-mover advantage within merger waves. Following a robust simulation-based methodology of wave analysis, we identify merger waves in eight industries during the time period 2000–2014. Firms affiliated to business groups were found to be early movers. A higher degree of internationalization is also associated with early movement of a firm. Within business groups, their multi-entity character is positively associated with early entry whereas their board interlock was negatively related with entry-timing. Further, early moving acquirers reap superior post-acquisition performance, thereby suggesting that early-mover advantages exist within merger waves.     

Determinants of early movers in cross-border merger and acquisition wave in an emerging market: A study of Indian firms

A series of changes in India’s financial institutional regime led to waves of cross-border mergers and acquisitions (M&A) deals spanning various industries. In this article, we explore firm-level determinants that distinguish between early movers and followers in these waves. We tested our hypotheses using data for the 2001–2011 period. Analysis found support for our hypotheses that prior experience (with alliances), firm size, and international embeddedness of business group influence timing of firms’ cross-border M&A. Findings support the springboarding perspective that emerging market (EM) firms engage in preemptive acquisitions to gain first-mover advantage.     

The role of the Internet in new product performance: A conceptual investigation

Past research has extensively investigated the role of the Internet in enhancing the effectiveness and efficiency of the new product development (NPD) process. Although the process implications of the use of the Internet in NPD have received considerable attention in the literature, very little is written about the Internet's performance implications in NPD. Recognizing the importance of new product success and the growing trends in the use of the Internet in NPD, this paper investigates the role of the Internet in new product performance. Building on previous studies, this article develops theoretical explanations for the impacts of the use of the Internet in NPD on new product success and presents testable research propositions. It also outlines relevant conditions that might moderate the strength of the impacts.