Limit to improvement: Myth or reality?: Empirical analysis of historical improvement on three technologies influential in the evolution of civilization

The evolution of civilization appears to have primarily resulted from continuous improvement made possible by technological advances. A group of social evolutionists and economists have identified, among others, energy, transport, as well as information and communication to be the three most influential technologies. On the other hand, a number of eminent scholars have cited several forces, natural, physiological, technological, as well as environmental which can place a limit on on-going improvement.The purpose of this paper is to empirically explore the continuous improvement process as well as the limit placed on these three technologies. Using the framework of both connected and disconnected multiple technology S-curves and X-factor, historical improvement data on these three elements have been analyzed. The results of our analysis indicate that improvement in general has continued without limit mainly due to a series of emerging new technologies. These emerging technologies can be either connected or disconnected from the existing mature technologies. Our preliminary analysis shows that much of the past improvement comes from new technologies that on first serious application appear to be substantially superior from earlier technologies. In addition, enormous continuous improvement, which has accompanied both connected and disconnected new technologies appear to have played the critical role in sustaining the evolution of civilization. The paper discusses a number of policy implications and suggests topics for future research.     

Migrating from products to solutions: An exploration of system support in the UK defense industry

This article explores the acquisition of business solutions in complex systems environments, through insights drawn from current literature and a study of the UK defense industry. We seek to counter-balance the dominance of literature focusing on the supplier perspective, as well as provide richer distinctions between different kinds of system suppliers involved in providing business solutions. We do this through the detailed examination of customer support offerings and business relationships that exist at the system customer-supplier interface. Our findings provide a map of solutions models that exist in the UK defense context. These include: (1) product system support, (2) life cycle product system support, (3) functional system support, and (4) enterprise system support. Using these models, we highlight the continued relevance of a product orientation and the challenges involved in adopting a true customer orientation when delivering business solutions. System suppliers seeking to reposition from the supply of product system support towards more integrated and customer-oriented forms of support require a significant organizational step change.     

Triggers for virtual customer integration in the development of medical equipment — From a manufacturer and a user's perspective

Virtual customer integration (VCI) involves customers throughout all stages of the new product development process. Firms across industries have started to experiment with virtual user integration and expect to utilize their knowledge, creativity, and judgment. However, little research exists that looks at the motivations of customers and managers to engage in virtual product development projects. In this paper we try to identify the triggers for virtual customer integration (VCI) from the manager's as well as from the customer's perspective. Using Ajzen's Theory of Planned Behavior we aim at explaining managers' motivation for the adoption of VCI based on a sample of 104 managers engaged in the product development process of manufacturing firms of medical technology. Drawing on motive research, we test six categories of customer motivations to engage in VCI projects on a sample of 105 users of medical technology. The results show that for mangers subjective norms and attitude predict the intention to use VCI. For customers, interest in innovation and product improvement are the most important drivers, whereas monetary compensation and prestige are not significant, and surprisingly the desire to help people even has a negative impact on the participation of VCI.     

Segmenting a market in the making: Industrial market segmentation as construction

This paper takes an empirical starting point in a claim that Biacore, a pioneering Swedish producer of affinity biosensors, was “in the enviable position of creating its own market” (Abelin, 1997). An in-depth case study traces how Biacore undertook segmentation activities while shaping the market for its new product technology, affinity biosensors. This involved stabilising the modes of exchange with customers, the product and the identity of the company. The efforts of Biacore highlight a constructive dimension of market segmentation that hitherto has received little attention. Rather than a process of describing, deciding and taking action, Biacore engaged in the gradual construction of market segments through an interactive and iterative process involving close collaboration with early users. Simultaneously, the market for the new technology gained shaped. Thus, the paper reports a ‘markets from networks’ story illustrating how the practice of segmenting a market may have consequences for that market.     

Organizational ambidexterity: Integrating deliberate and emergent strategy with scenario planning

In this article we propose scenario planning as a tool for fostering organizational ambidexterity. The concept of organizational ambidexterity continues to gain attention, however, clear methods for developing this organizational ability are generally not offered. We therefore describe organizational ambidexterity and situate it in the general strategy literature. Key characteristics of organizational ambidexterity are provided, and the logical link to scenario planning is made. As the concept of organizational ambidexterity is relatively novel, our proposal highlights the use of scenario planning as a potential tool for developing this organizational “skill”, and clear next steps are described to examine our proposal as well as leverage the concept of organizational ambidexterity beyond that of a simple metaphor.     

Discontinuous innovation capability accumulation in latecomer natural resource-processing firms

Most of the studies that describe the building of innovation capability in emerging and developing economies have focused on the ways in which latecomer firms develop continuously towards advanced capability levels along existing technological trajectories, particularly for the assembled products industries, especially in Asia. A slightly different approach is adopted herein by focusing on pathways of discontinuous capability building of firms in natural resource-processing industries. By drawing on evidence from a variety of case studies taken from 13 forestry, pulp, and paper firms in Brazil in the period 1950-2007, it was found that: (1) in contrast with the majority of case studies reported in the literature, the pathways followed by firms in their accumulation of innovation capability involved a qualitative departure from the established technological trajectory at an early stage in the development of their capability; (2) the pathways of firms along the new technological trajectories were nevertheless characterised by a high degree of variability (from intermediate to world leading innovators) in terms of the levels and speeds of the accumulation of innovation capability; (3) firms that have attained progressively higher levels of innovative performance have more rapidly developed a combination of internal and external research-based arrangements in order to undertake increasingly complex, but firm-centred innovation efforts. This paper sheds some light on some of the discussions that relate to the role of natural resources in the patterns of industrial progress and growth in those countries endowed with particular natural resource-based industries. It also provides a methodological contribution to the study of the long-term innovation strategies that make use of the dynamics of capability building, especially within natural resource-processing industries.     

A new methodology for the logistic analysis of evolutionary S-shaped processes: Application to historical time series and forecasting

A new multi-logistic methodology to analyze long range time series of evolutionary S-shaped processes is presented. It conceptually innovates over the traditional logistic approach. The ansatz includes computing the residuals to an optimized multi-logistic trend curve least squares fitted to the time-series data. The elements of the residuals series are checked for autocorrelations and once detected the residuals series is further analyzed to search for eventual presence of underlying periodic structures using a truncated Fourier sine series. The method foundations ensures both a universal applicability and a capacity to disclose the existence of active clocks that can be possibly traced to the driving motors of the evolutionary character of the time series, due to the responsiveness of corresponding process to the development of economic cycles. On associating these two views, it is found that the methodology has a strong potential to improve the quality of short-term forecasts. These findings have been put to test through applications of the methodology to studying the time evolution of two commodities of strong economic and social importance (corn and steel) and good results were consistently obtained for both the analytical and forecasting aspects.     

What determines stock option contract design?

We analyze the factors that drive exercise price policy for executive option plans (ESOPs) and their scope in a country where firms are not subject to the tax and accounting considerations that seem to have led to the dominance of at-the-money options in the US Our “unbounded” data for Finland provide us with an excellent opportunity to investigate whether contract design is consistent with compensation theory. Our findings are largely consistent with predictions from the optimal contracting literature. The size of the plan is negatively related to Tobin's Q and firm size and positively related to proxies for monitoring costs, which also influence the probability of launching premium ESOPs. Our results also show that the premium (out-of-the-moneyness) is negatively related to prior stock returns and cash flow-to-assets, which may be an indication of high-water mark contracting, or alternatively, of managerial power. Finally, we also find some support for a positive relation between the premium and the length of the vesting period when maturity is fixed, which indicates an effort to keep the incentives for management from falling over time.     

Marketing strategy and the efficacy of procedural justice: The mid-level marketing manager in industrial service firms

A principal challenge confronting the senior marketing team in B2B firms is how to ensure that the marketing strategies they develop are implemented effectively. The literature indicates that mid-level marketing managers' perceptions of the procedural justice within the firm may be critical in this respect. However, there has been little empirical research on this issue. The authors develop and test a conceptual model of the key drivers and consequences of marketing managers' procedural justice perceptions. The findings show that if mid-level marketing managers trust their senior marketing colleagues and simultaneously operate within moderately organic structures, then procedural justice will thrive. A consequence of this is more effective implementation of marketing strategy which, in turn, leads to increased market performance.