Networking as a Means to Strategy Change: The Case of Open Innovation in Mobile Telephony

The purpose of this article is to investigate how innovation networks can be used to deal with a changing technological environment. This study combines different concepts related to research and development (R&D) collaboration strategies of large firms and applies these concepts to R&D alliance projects undertaken by Nokia Corporation in the period 1985–2002. The research methodology is a combination of in‐depth semistructured interviews and a large‐scale quantitative analysis of alliance agreements. For the empirical analysis a distinction is made between exploration and exploitation in innovation networks in terms of three different measures. As a first measure, the difference between exploration and exploitation strategies by means of the observed capabilities of the partners of the contracting firms is investigated. The second measure is related to partner turnover. The present article argues that in exploration networks partner turnover will be higher than in exploitation networks. As a third measure, the type of alliance contract will be taken; exploration networks will make use of flexible legal organizational structures, whereas exploitation alliances are associated with legal structures that enable long‐term collaboration. The case of Nokia has illustrated the importance of strategic technology networks for strategic repositioning under conditions of change. Nokia followed an exploitation strategy in the development of the first two generations of mobile telephony and an exploration strategy in the development of technologies for the third generation. Such interfirm networks seem to offer flexibility, speed, innovation, and the ability to adjust smoothly to changing market conditions and new strategic opportunities. These two different strategies have led to distinctly different international innovation networks, have helped the company in becoming a world leader in the mobile phone industry, and have enabled it to sustain that position in a radically changed technological environment. This study also illustrates that Nokia effectively uses an open innovation strategy in the development of new products and services and in setting technology standards for current and future use of mobile communication applications. This article presents one of the first longitudinal studies, which describes the use of innovation networks as a means to adapt swiftly to changing market conditions and strategic change. This study contributes to the emerging, but still inconsistent, literature on explorative and exploitative learning by means of strategic technology networks.     

The impact of regulatory focus on adolescents’ evaluation of targeted advertising on social networking sites

This article examines whether individual differences in chronic regulatory focus (prevention vs. promotion focus) among adolescents influences the way they evaluate targeted advertising on social networking sites. Study 1 (survey) reveals that adolescents with a promotion focus (who are oriented toward achieving positive outcomes) have a more positive attitude and a higher purchase intention toward targeted advertising, as compared to prevention-focused adolescents (who are dispositioned toward avoiding negative outcomes). Study 2 (experiment) investigates how adolescents’ chronic regulatory focus can alter their attitude and purchase intention on a mock social networking site that includes a targeted advertisement. Results show that a low personalized targeted ad is better evaluated (in terms of a more positive attitude and higher purchase intention) among prevention-focused adolescents, whereas a high personalized targeted ad results in better advertising outcomes among promotion-focused adolescents. Contributions to theory and implications for advertising practice are discussed.     

Price rather than nutrition information the main influencer of consumer food purchasing behaviour in South Africa: A qualitative study

In South Africa there has been a paucity of data on food and nutrition labelling since the publication of the new food‐labelling legislation. This study aimed to explore whether the nutrition information on food products influences consumer purchasing behaviour; reasons for reading or ignoring nutrition information on labels, and to investigate expectations regarding food / nutrition labelling. Nine focus‐group discussions were held with adult consumers (N=67) in Cape Town, South Africa. Food price was sometimes the only consideration when selecting food products, irrespective of quality and nutritional value. When buying products for the first time, consumers were more inclined to read the nutrition information compared to habitual purchases or buying known brands. The list of ingredients, nutrient content claims and specific health endorsement logos were considered important. Reasons for reading nutrition information were mainly to assess the nutritional value or health properties, to avoid certain ingredients/allergens and to determine quality. Consumers struggled to understand the information on labels, specifically the nutrition information table. A lack of time or interest, price concerns and trust in labelling information also emerged as reasons why consumers ignore the nutrition information. There is a need for simpler food labelling, more graphics, and less complex terminology, information overload and quantitative information. It is recommended that a standardised front‐of‐package labelling scheme and a single health endorsement logo for South Africa be considered. More should be done to educate consumers on utilising the information on food labels correctly, in order for them to make healthier food choices.     

Export variety and the economic performance of countries

We explore the relationship between export variety and economic development, using data on OECD countries between 1964 and 2003. We show that structural change in the world economy has a particular arrow of time leading to a growing variety of exports. Distinguishing between related variety (within sectors) and unrelated variety (variety between sectors), we also show that related variety stimulates growth instantaneously, while unrelated variety only promotes growth with a considerable time lag. This finding is in line with the evolutionary notions that economic development and international trade patterns are path dependent.

R&D portfolios in environmentally friendly automotive propulsion: Variety, competition and policy implications

In this article, we analyze R&D portfolios in environmentally friendly automotive propulsion including alternative fuel options. We argue that at the current stage of development, substitution of conventional car technology by a new automotive propulsion technology may lead to premature lock-in of suboptimal technology. To avoid such lock-in, one should value the variety of current R&D activity that enables organizations to learn from multiple options and to create spillovers between options. We further argue that the existence of technological variety is not a sufficient condition to avoid lock-in. Organizational variety is also required to sustain competition and avoid the dominance of few firms that possibly enforce a suboptimal technology within the sector. To assess whether recent developments in R&D have led to both technological variety and organizational competition, we analyze United States Patent and Trademark Office (USPTO) patents in low-emission vehicles (LEVs) during the period 1980–2001 using entropy statistics. Results show that both technological variety and organizational competition have increased steadily since the early nineties, suggesting that premature lock-in is unlikely to occur. From an environmental policy evaluation perspective, we consider the findings as a positive evaluation of the 1990 Californian Low Emission Vehicle program.     

Antecedents and consequences of performance management enactment by front-line managers. Evidence from Belgium

Although researchers have extensively stressed the critical role of line managers in the effective implementation of HR practices, little is known about what exactly causes managers to enact these practices. In this paper, we draw from signaling theory, theory of planned behavior and social exchange theory to investigate both the antecedents and the outcomes of front-line management’s enactment of performance management (PM) activities. Results from two Belgian samples of 731 front-line managers and 425 employees show that line management’s beliefs regarding the usefulness of PM activities mediate the relationship between HR support and line management’s implicit person theory, on the one hand, and PM enactment, on the other. This relationship is moderated by the manager’ span of control. Furthermore, line management enactment shows to be positively related to employee engagement and job satisfaction.