The customer-centered innovation map

We all know that people "hire" products and services to get a job done. Surgeons hire scalpels to dissect soft tissue. Janitors hire soap dispensers and paper towels to remove grime from their hands. To find ways to innovate, it's critical to deconstruct the job the customer is trying to get done from beginning to end, to gain a complete view of all the points at which a customer might desire more help from a product or service. A methodology called job mapping helps companies analyze the biggest drawbacks of the products and services customers currently use and discover opportunities for innovation. It involves breaking down the task the customer wants to accomplish into the eight universal steps of a job: (1) defining the objectives, (2) locating the necessary inputs, (3) preparing the physical environment, (4) confirming that everything is ready, (5) executing the task, (6) monitoring its progress, (7) making modifications as necessary, and (8) concluding the job. Job mapping differs substantively from process mapping in that the goal is to identify what customers are trying to get done at every step, not what they are doing currently. For example, when an anesthesiologist checks a monitor during a surgical procedure, the action taken is just a means to the end. Detecting a change in patient vital signs is the job the doctor is trying to get done. Within each of the discrete steps lie multiple opportunities for making the job simpler, easier, or faster. By mapping out every step of the job and locating those opportunities, companies can discover new ways to differentiate their offerings.     

Acquisition or greenfield start‐up? Institutional,cultural and transaction cost influences

In this paper, we develop and test a model of diversification mode choice (how firms decide between acquisitions and greenfield start‐up ventures) which includes institutional, cultural, and transaction cost variables. Using a sample of Japanese firms entering western Europe, our results show the model correctly predicts over eighty‐seven percent of the mode choices. Thus, we provide strong initial evidence to support using institutional, cultural and transaction cost variables to predict firms’ choices between acquisitions and greenfield start‐ups in international expansion. Our findings also suggest that organizations which have developed strong intangible capabilities may be able to more readily leverage these capabilities through greenfield start‐ups. Copyright © 2000 John Wiley & Sons, Ltd.     

Practical general equilibrium estimation of resource pulls under trade liberalization

This paper discusses the application of a model similar to the one developed in Leif Johansen's Multi-sectoral study of economic growth (1964) to the problem of determining general equilibrium responses of the economy to changes in commercial policy. This method amounts essentially to specifying a log-linear approximation to the general equilibrium solution for the economy, and solving the resulting linear equations for changes in endogenous variables as functions of exogenous variable changes. For a 35-sector model of the Chilean economy with labor as the only variable factor of production (to avoid the problem of overdetermination of many commodity price and output shifts when only two factors are considered in constant returns production functions), it is found that (i) the specification of the way in which intermediate inputs enter the production function is numerically important in determining output responses to tariff changes, detracting from the credibility of fixed coefficient effective rate of protection calculations if variable intermediate input coefficients are the rule (as appears likely empirically); (ii) exchange rate elasticities with respect to individual tariff changes are fairly large, so that the usual partial equilibrium assumption of exchange rate insensitivity to ‘small’ tariff revisions is not valid; (iii) employment effects of different tariff revisions are highly variable and in some cases substantial.     

Got slogan? Guidelines for creating effective slogans

Slogans are a key element of a brand's identity, and contribute to a brand's equity. In today's marketplace, almost all brands employ slogans; they enhance a brand's image, aid in its recognition and recall, and help create brand differentiation in consumers' minds. While there is general consensus on the importance of the device itself, little agreement exists as to what constitutes a successful slogan. As such, although marketing managers use slogans extensively, they are often at a loss when it comes to creating them. In turn, this leads to ineffective use of slogans and, ultimately, the possibility of a surprisingly poor linkage between a brand and its slogan, even among the most well-known brands. To explore this phenomenon, we surveyed articles from a variety of academic streams related to slogans, and also looked at industry publications for relevant case studies. Based on our investigation, we propose in this article a series of guidelines for the strategy behind slogans, and on creation and utilization of effective slogans. In particular, our findings should be of use to business practitioners.     

Expatriate or local? Predicting Japanese,subsidiary expatriate staffing strategies

Can Dunning's OLI (Ownership, Location, Internalization) framework be extended from predicting FDI location decisions and entry mode choices to other international strategic decisions? Using data from 891 new (two years or younger) Japanese foreign subsidiaries, we investigate the relationship between Dunning's OLI variables and expatriate staffing ratios (the ratio of expatriates to local employees). We found empirical support for Dunning's framework as a predictor of Japanese new subsidiary expatriate staffing ratios. Implications and directions for future research are discussed.     

The Role of Systematic International Market Selection on Small Firms' Export Performance

This article hypothesizes that, on average, small and medium-sized enterprises (SMEs) that use a systematic methodology in selecting foreign target markets (what we call systematic market selection) perform better than SMEs using an ad hoc international market selection methodology. Using a sample of Greek exporting firms, we found that systematic international market selection is a significant determinant of export performance, even when controlling for decision-maker and firm-specific characteristics previous studies found to be related to export success. Implications for managers, trade promotion agencies, and future research are discussed.