A resource-advantage perspective of product-market strategy performance & strategic capital in high technology firms

Contrary to common misconceptions, firms tend generally to remain constant in their strategic approach to markets and rarely deviate from their prevailing strategic archetype. Consequently, the effectiveness of a firm's product-market strategy is as important as its persistence in achieving overall strategic performance. Adopting a resource-advantage perspective, we examine the extent to which resource bundles differ among firms within a product-market strategy performance typology. Analyzing data generated from high-technology industrial manufacturers, we find that successful strategists are endowed with significantly greater levels of resources-that include ‘strategy championing’, ‘strategy commitment’, ‘implementation support’, ‘implementation effectiveness’, ‘learning’, and ‘memory’-in contrast with unsuccessful strategists, hopeful strategists, and fortunate strategists. Further, important inter-group differences are identified and discussed, along with the implications of this study for researchers and marketing managers.     

Managing tension in coopetition through mutual dependence and asymmetries: A longitudinal study of a Norwegian R&D alliance

Strategic alliances between competitors (coopetition) is perceived to be full of tensions that needs to be managed. This study explore the evolution of a Norwegian coopetition alliance, through how firms handle tensions over time. The study finds that the firms experience a mutual dependence towards one another and that this dependence evolves over time. In the early phases of a coopetition alliance firms handle tension by relying on a structural dependence with their partners whereas firms move towards a more harmonious relationship with their partners by building a psychological dependence through trust and generosity. Further, the results indicate these dependencies might reduce the possible tensions related to asymmetries in size and knowledge between firms.     

Implementing the lead user method in a high technology firm: A longitudinal study of intentions versus actions

The customer or user's role in the new product development process is limited or nonexistent in many high technology firms, despite evidence that suggests customers are frequently an excellent source for new product ideas with great market potential. This article examines the implementation of the Lead User method for gathering new product ideas from leading edge customers by an IT firm that had not previously done much customer research during their new product development efforts. This case study follows the decision‐makers of the firm through the process, where the end result is the generation of a number of useful product concepts. Besides the ideas generated, management at the firm is also impressed with the way the method makes their new product development process more cross‐functional and they plan to make it a part of their future new product development practices. Approximately one year later the firm is revisited to find out if the Lead User method has become a permanent part of their new product development process. The authors find, however, that the firm has abandoned research on the customer despite the fact that several of the lead‐user derived product concepts had been successfully implemented. Management explanations for their return to a technology push process for developing new products include personnel turnover and lack of time. Using organizational learning theory to examine the case, the authors suggest that the nontechnology specific product concepts generated by the lead users were seen as ambiguous and hence overly simplistic and less valuable by the new product development personnel. The technical language spoken by the new product personnel also increased the inertia of old technology push development process by making it more prestigious and comfortable to plan new products with their technology suppliers. The fact that the firm was doing well throughout this process also decreased the pressure to change from their established new product development routine. The implications for these finding are that: 1) it is necessary to pressure or reward personnel in order to make permanent changes to established routines, and 2) researchers should be careful at taking managers at their word when asking them about their future intentions.     

A longitudinal study of the cause and consequences of changes in diversification in the U.S. pharmaceutical industry 1977–1986

The paper hypothesizes that diversification by firms based in the pharmaceutical industry during the 1977-86 time period was primarily undertaken to reduce the risks associated with being dependent upon a technologically dynamic environment. Consistent with this non-efficiency motive for diversification, declining economic performance is predicted. A longitudinal empirical analysis provides support for these propositions.     

Internationalisation in the telecommunications services industry: Literature review and research agenda

A review of 356 publications addressing internationalisation aspects of the telecommunications services industry (TSI) shows a growing body of contributions, mainly covering research themes like settlement and regulation policy, strategic alliances and incumbents’ reactions to deregulation as well as opening of markets in-depth until recently. Wireline telephony TSI has been the dominant segment in most contributions, while the mobile or broadband Internet segments only featured in more recent work. Segment characteristics like non-uniform barriers to entry, different reasons for alliances and non-uniform levels of internationalisation differentiate these TSI segments pose a number of additional questions concerning telecom firms’ internationalisation strategy and success promising for future research.     

Building firm capabilities through learning: the role of the alliance learning process in alliance capability and firm‐level alliance success

In recent years, academics and managers have been very interested in understanding how firms develop alliance capability and have greater alliance success. In this paper, we show that an alliance learning process that involves articulation, codification, sharing, and internalization of alliance management know‐how is positively related to a firm's overall alliance success. Prior research has found that firms with a dedicated alliance function, which oversees and coordinates a firm's overall alliance activity, have greater alliance success. In this paper we suggest that such an alliance function is also positively related to a firm's alliance learning process, and that process partly mediates the relationship between the alliance function and alliance success observed in prior work. This implies that the alliance learning process acts as one of the main mechanisms through which the alliance function leads to greater alliance success. Our paper extends prior alliance research by taking a first step in opening up the ‘black box’ between the alliance function and a firm's alliance success. We use survey data from a large sample of U.S.‐based firms and their alliances to test our theoretical arguments. Although we only examine the alliance learning process and its relationship with firm‐level alliance success, we also make an important contribution to research on the knowledge‐based view of the firm and dynamic capabilities of firms in general by conceptualizing this learning process and its key aspects, and by empirically validating its impact on performance. Copyright © 2007 John Wiley & Sons, Ltd.     

A model for relating technology, organization and employment level: A study of the impact of computerization in the Swedish insurance industry

This article investigates effects of computerization in the Swedish insurance industry from 1960–1980. While the technological imperative dictates that many jobs would disappear, it was found that employment actually increased. The authors produce a model relating technology to employment levels and suggest that a range of moderating factors must be considered.     

Co-innovation in networks of resources — A case study in the Chinese exhibition industry

This work explores how network partners collaborate to innovate and innovate to collaborate and thereby achieve value. The innovation processes analyzed are within an IJV in the Chinese exhibition industry. The findings highlight that the IJV's development of a successful trade show resulted from effective co-innovation by partners which enabled the exploitation of opportunities in an industry characterized by rapid growth and continuing structural change. Partner co-innovation enabled evolving strategic and operational capabilities which has led to continued and growing market success. This co-innovation involved the targeted co-mingling of partner resources which creates value that motivated continued cooperation. The effectiveness of the partners' activities is evidenced by the growing size and prestige of their large-scale trade show as well as the expansion of the IJV into other endeavors. The paper concludes by considering the way these innovative processes can be applied in other contexts.     

Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high‐technology industry

This paper investigates the relationship between intercorporate technology alliances and firm performance. It argues that alliances are access relationships, and therefore that the advantages which a focal firm derives from a portfolio of strategic coalitions depend upon the resource profiles of its alliance partners. In particular, large firms and those that possess leading‐edge technological resources are posited to be the most valuable associates. The paper also argues that alliances are both pathways for the exchange of resources and signals that convey social status and recognition. Particularly when one of the firms in an alliance is a young or small organization or, more generally, an organization of equivocal quality, alliances can act as endorsements: they build public confidence in the value of an organization's products and services and thereby facilitate the firm's efforts to attract customers and other corporate partners. The findings from models of sales growth and innovation rates in a large sample of semiconductor producers confirm that organizations with large and innovative alliance partners perform better than otherwise comparable firms that lack such partners. Consistent with the status‐transfer arguments, the findings also demonstrate that young and small firms benefit more from large and innovative strategic alliance partners than do old and large organizations. Copyright © 2000 John Wiley & Sons, Ltd.     

International R&D project evaluation by multinational corporations in the electronics and IT industry of Singapore

This paper explores a number of variables associated with the evaluation of international R&D projects by multinational corporations (MNCs) in the electronics and IT industry of Singapore. Empirical analysis of the data collected from R&D managerial executives suggests a series of considerations in relation to their R&D investments. It is desirable if R&D can create a potential impact on the growth of their regional and international businesses. In considering the risks associated with an R&D project, a balance approach would be appropriate when demanding a return on investment. In particular, the consistence with customer demands, the achievement of time‐based competitiveness, the training of R&D manpower and the development of conducive innovation environments are fundamental to the success of international R&D projects.     

实施科技兴煤战略 走高产高效之路——访山东枣庄矿业集团公司董事长江卫

枣庄矿业(集团)有限责任公司是国有大型企业，华东地区重要的煤炭生产基地和全国十大出口煤基地之一，是一个具有百年开采历史的老矿区。自2000年以来，枣庄矿业集团公司以改革总揽全局，保稳定抓发展，积极实施科技兴煤战略，坚定不移走高产高效之路。煤炭总量迅速扩张，近三年的原煤产量分别为1056．6万吨、1210．0万吨、1413．7万吨，2002年比1999年增长51％，销售收入增加17．2亿元。职工收入稳步增加，胜利实现了省政府提出的三年扭亏脱困的目标。他们是如何走出困境，走上高产高效的?带着这一问题，本刊记者采访了该集团公司董事长江卫同志。     

A comparative study of the adoption and implementation of target costing in the UK, Australia and New Zealand

Most of the studies on target costing (TC) only provide insight into the adoption and perceived benefits of TC, and do not address the levels of implementation of the technique. These studies also assume that TC is only relevant to manufacturing firms and therefore do not investigate the adoption of this technique in service firms, and consequently exclude service firms from their surveys and analysis. Furthermore, most studies do not examine factors influencing the adoption of TC systems. Contributing to these gaps in the literature, this paper reports the results of a survey among CIMA-qualified management accountants working in manufacturing and service firms in the UK, Australia and New Zealand on the adoption and implementation of TC. The study examines the importance of attributes of TC (namely relative advantage, compatibility, ease of use, result demonstrability, trialability) for decision makers to adopt and implement such cost and management accounting innovation. The survey indicates that TC is equally prevalent among manufacturing and service firms while in terms of the levels of implementation there is a significant difference between manufacturing and service firms. The study shows that there is a growing interest in the examination of all cost-reducing strategies at the planning stage and adoption of value engineering to incorporate customer requirements rather than focusing on the adoption of cost-cutting strategies at the production stage.     

Unraveling the mechanisms of reputation and alliance formation: A study of venture capital syndication in China

Extant research shows that resources are significant to a firm's choice of alliance formation. We focus on an important form of intangible resource—firm reputation—and examine how it affects a firm's propensity to form alliances. We propose an inverted U‐shaped relationship between a firm's reputation and its likelihood of alliance formation, resulting from the opposing mechanisms of opportunity and need. We also examine how this relationship may vary across two contingencies: (1) foreign and domestic firms; and (2) different levels of institutional development. Empirical analyses of China's venture capital (VC) industry provide support for our hypotheses. Copyright © 2013 John Wiley & Sons, Ltd.     

Problem solving in the upgrading of product offerings — A case study from the steel industry

This paper deals with the efforts of suppliers to upgrade their offerings — from standardized products to more advanced and customized solutions. Upgrading requires what has been identified in product development research as ‘problem-solving’ ability on the part of the supplier. The purpose of the paper is to explore the role of problem solving in the three phases of the upgrading process identified in the analytical framework: evaluation, transition, and post-implementation.Owing to the exploratory nature of this research a case study approach is used, describing and analyzing the implementation of two upgraded offerings of a steel company. The study illuminates the problems associated with such changes attributable to interdependences in the customer's current resource set up. The problem-solving ability of the supplier is a key capability in these efforts, also involving resource contributions from the buyer and other network actors.     

The paradox of tie strength in customer relationships for innovation: a longitudinal case study in the sports industry

Current literature argues that firms should have strong ties to customers to benefit from increased customer retention and loyalty. Strong ties, however, have also shown to prevent innovation, suggesting that firms should also develop weak ties to other customer groups. This paper focuses on the potential for strong ties to facilitate, rather than prohibit, innovation. It is based in a 7‐year longitudinal research project with Adidas, a global sporting goods company. From the case, we find that the paradox of tie strength results from an overly simplified view of the nature of company–customer relationships. Contrary to the established literature, we find that strong ties in the Adidas case supported significant innovation. In fact, the involvement resulted in the development of a new product with a radically different product architecture and led to one of the most successful product launches in the company's history. To explain these findings, we introduce the nature of customer participation in a firm's value creation processes as a new dimension of the constitution of firm–customer ties and discuss how such a kind of relationship can develop.     

Understanding liability of foreignness in an Asian business context: A study of the Korean asset management industry

This study provides an in-depth understanding of the liability of foreignness (LOF) in an Asian business context. Based on previous literature, we distinguish the two distinct cost components that comprise LOF: The cost of foreignness and the cost of multinationality. Whereas the former refers to the costs incurred by foreign firms when they develop location-specific advantages in a host country environment, the latter refers to the costs associated with an MNC’s multinational operation, more specifically, transferring firm-specific advantages from the home country (or elsewhere) and adapting them to a particular host country context. Based on this distinction, we investigate whether and how persistently each of these costs exists in an Asian business environment. Our data on the Korean asset management industry support the presence of both costs, resulting in lower performance increase of foreign firms relative to local ones from utilizing location- and firm-specific advantages, respectively. Furthermore, in our study setting, compared to the cost of foreignness, the cost of multinationality persists longer in the market, suggesting that the latter is more difficult and takes a longer time for MNCs to mitigate than the former. Our results provide important insights into detailed aspects of strategic challenges confronted by MNCs in the Asian business context from which they can derive effective strategic responses.     

Innovation in product architecture—A study of the Chinese automobile industry

The purpose of this paper is to put forward the hypothesis that a transformation from closed integral architecture to quasi-open modular architecture contributes to the achievement of a low-cost competitive strategy by Chinese carmakers. The question, “What is quasi-open architecture in Chinese industry?” is addressed in the theoretical section, followed by the Geely case in the passenger car sector. Two perspectives form the basis of the analysis: that of the carmaker and that of its relationship with suppliers. The findings offer an insight into the competitive strategy of firms in emerging economies and some valuable observations concerning the “catching up” trajectory of Chinese firms.