The interaction effect of strategic orientations on new product performance in the high-tech industry: A nonlinear model

Innovation and market orientation are two strategic orientations or business philosophies that can guide a company in its business activities. Although the interaction effect of these two strategic orientations is conceptually recognized as a critical factor for new product's success, empirical results are mixed. This paper examines this issue in terms of innovation orientation, two types of market orientations (responsive and proactive), and new product performance. Based on a sample of 107 high-tech firms, the results of this study show that the interaction between innovation orientation and two types of market orientation yields different patterns of nonlinear responses for new product performance. Specifically, new product performance, when derived from the interaction between innovation orientation and responsive market orientation, is in the form of an inverted U, i.e., the interaction effect is contributory to firm performance until an optimal level is reached, and then the effect becomes detrimental thereafter. However, new product performance derived from innovation orientation and proactive market orientation is in the form of a U, i.e., the interaction effect is detrimental to firm performance until a threshold level is reached and then the effect becomes contributory thereafter. The different patterns of new product performance indicate that the costs and organizational learning effects of these two strategic orientation interactions are dissimilar. The paper concludes with a discussion of theoretical and practical implications of these findings.     

The changing pattern of industrial technology linkage structure of Korea: Did the ICT industry play a role in the 1980s and 1990s?

The notion of the knowledge-based economy highlights the strategic importance of inter-industrial knowledge flows. Among others, the crucial role of information and communications technology (ICT) industry is emphasized. The pattern whereby technological knowledge is created, accumulated and disseminated through the interactive learning among industries can be portrayed as a network. Based on the network theory, this empirical study analyses, from the dynamic perspective, inter-industrial technological knowledge structure of Korean industries during the reference period of early 1980s to mid-1990s. Overall, the density of the network increased over time, implying that the knowledge network has expanded and intensified. The role of the ICT industry in the global network has also increased but needs to be further strengthened, especially informatization of non-ICT industries by the outflow of ICT industrial knowledge in the future. The findings in turn render some important policy implications that should be addressed in developing technology policy.     

An evolutionary model of recycling and product lifetime extension

This paper presents a model-based analysis of the development and diffusion of so-called ‘green’ products, i.e. those which are easily recyclable and which have a long lifetime. We address this problem by developing an evolutionary simulation model to identify the impact of the environmental R&D strategies of business firms on the economy and the environment. The simulation results show that R&D investment both in product recyclability and in product lifetime extension can be positive for the firm. Adopting such a strategy means that the firm can then market green products, which provides it with a competitive advantage on firms investing mainly in product recyclability whatever consumers' preferences. From an environmental point of view, the diffusion of green products will reduce both waste flows in the economy and pressure on virgin resources. However, diversifying R&D investment to develop both product recyclability and lifetime can mean slowing down the flow of recycled materials and may lead to even greater quantities of unrecycled waste. Our results suggest introducing regulation policies aiming at encouraging firms to invest both in product recyclability and lifetime in order to benefit from their complementarities. Furthermore, simulations show that it should be better to direct environmental policies on firms' environmental innovation strategies than on demand attributes because significant changes in these strategies would provide much more radical environmental changes.     

Diversity in foresight: Insights from the fostering of innovation ideas

Foresight activities have often provided support for objectives such as priority-setting, networking and consensual vision-building. In this paper, we draw upon complementary evolutionary perspectives and discuss these objectives from the viewpoint of diversity which may be vital in contexts characterized by technological discontinuities and high uncertainties. We also argue that although the scanning of weak signals has been widely advocated in such contexts, the solicitation of ideas for prospective innovations may provide more focused, action-oriented, and comparable reflections of future developments. For the analysis of such ideas, we develop a collaborative foresight method RPM Screening which consists of phases for the generation, revision, multi-criteria evaluation, and portfolio analysis of innovation ideas. We also report experiences from a pilot project where this method was employed to enhance the work of the Foresight Forum of the Ministry of Trade and Industry in Finland. Encouraging results from this project and other recent applications suggest that RPM Screening can be helpful in foresight processes and the development of shared research agendas.     

Where have all the flowers gone? Forecasting green trends in the automobile industry with a choice-based conjoint adoption model

With rising gas prices, global warming, and green thinking, all-electric vehicles are currently considered the automobile technology of the future. However, besides their advantages electric drive trains also exhibit several disadvantages. Moreover, history shows several failed attempts to establish electric vehicles. Thus, a reliable forecasting model is needed that predicts if the current trend is sustainable. We develop and empirically test a choice-based conjoint adoption model that uses individual-level preferences as a basis for prediction. Predictions are mapped to the time of the next planned purchase in order to establish the adoption process. The model extends existing research in several ways. First, no prior information, e.g., historical market data or a functional form of the adoption process, has to be integrated. Second, the model allows dynamic modifications of product specifications or competition at different points in time. Third, a no-choice option can be integrated so that a technology switch is not forced by the model itself and switching costs can be considered. The empirical results reveal different critical factors for the adoption of all-electric vehicles, such as purchase price, range, timing of the market entry, or environmental evolution, which could lead to a solid base of consumers preferring this option.     

The “swing of the pendulum” from public to market support for science and technology: Is the U.S. leading the way?

The structure and financing of science and technology activities are undergoing a slow, but profound, change. This change can be briefly characterized as a shift from relying and supporting public science to a stronger emphasis on “market-based” incentives for science and technology. In this paper we analyze this shift in a historical perspective, discussing both the theoretical explanations and the empirical trends of the ongoing change. While we do not claim to provide a comprehensive and exhaustive identification of the causes of this shift, we argue that it is largely driven by the perception of a shift of the U.S. policy towards market-based, rather than publicly supported, incentives for science and technology. This, in turn—given the strong economic performance of the United States over the 1990s—has influenced policies in most OECD countries, especially in Europe.We conclude by analyzing the evolution of research in U.S. higher education and find two major trends: an increasing diversity in the number of institutions of different types other than universities and a steady and continuous public funding of the leading U.S. universities. This has allowed the construction of an infrastructure now used largely by the private sector, but it also noted that the United States has not compromised public support for core areas or in those fields in which there is a clear perception that market incentives are not sufficient for meeting the strategic targets of the U.S. policy. The implication is that there is a considerable policy diversity in the U.S. practice and that all aspects of this diversity should be considered when using the United States as a reference.     

A heuristic procedure to identify the most valuable chain of patent priority network

In this study, we provide support for the argument that patents are at their maximum value at those times when they are under litigation. We develop a heuristic procedure to determine the way in which such patents under litigation form a network of patent family members, and then go on to examine the priority patents involved. We subsequently attempt to develop a simple procedure to further identify both the ‘critical’ and ‘significant’ chains within our proposed patent priority network. We suggest that the ‘critical’ and ‘significant’ chains that are created within the above network provide companies with important information which will ultimately provide them with valuable support for the subsequent decision of their patent portfolio strategies.     

Investigating mediators between corporate reputation and customer citizenship behaviors

Recent corporate reputation research focuses on customers as an important stakeholder group for whom firm reputation matters. The authors hypothesize that customer-based corporate reputation (CBR) may affect customer citizenship behaviors (CCB) and that both commitment and loyalty mediate the CBR-CCB relationship. The tests of the hypotheses use a sample of 583 service customers who evaluate the reputation of service firms. These results suggest that commitment and loyalty mediate the relationship between CBR and one type of CCB, that is, helping the company. The authors discuss the implications for marketing research and practice.     

Diminishing effects of location? Some evidence from Swiss municipalities, 1950–2000

This paper analyzes how location has affected, in the second half of the twentieth century, the population growth of 2889 municipalities in Switzerland. The analysis demonstrates the temporal relativity of location attributes, even for small territorial divisions, such as the Swiss cantons. However, we also show that, both absolute and relative location attributes have weakened over time as population growth predictors, apparently due to improving road infrastructures, and growing motorization. The study has been made possible by a detailed historical population and accessibility database available for Swiss municipalities. To the best of our knowledge, no database of such scope and quality is available for any other European country.