Response to Vuori and Vuori's commentary on “Heuristics in the strategy context”

We recently introduced a research program on how firms can effectively capture fleeting opportunities using heuristics. Heuristics, we advocate, are the essence of strategy, especially in unpredictable markets where opportunities are often numerous, fast moving, and uncertain. Our emphasis on heuristics invites comparison with prominent research programs in cognitive psychology. We address this opportunity by comparing our “simple rules” heuristics approach with “heuristics‐and‐biases” and “fast‐and‐frugal” heuristics research. Collectively, the three approaches offer a rich understanding of heuristics. Copyright © 2014 John Wiley & Sons, Ltd.     

Estimating Differential Dynamic Merger Effects on Market Structure and Entry in Related Markets

The U.S. and EU merger guidelines emphasize “ease of entry” arguments but little is known about the dynamic impact of realized mergers on market structure. This study provides insights on this topic with the use of detailed firm-level data on the memory chip market. Our estimation results provide evidence for differential merger effects on market structure. These effects depend on whether the mergers are dominated by market-power or efficiency gains. While efficiency-dominated mergers cause exit, market-power-dominated mergers attract entrants, and these effects are increasing over time. We also find that market-power mergers have a larger effect on entry than efficiency mergers have on exit. Our results show that mergers can reduce the number of potential entrants into related product markets and serve as an instrument to “reduce the likelihood of entry”.

     

顺流而动并非上策

正在市场环境瞬息万变的今天,为改变而改变一定是最优选择么?怎样调整才能既保留公司核心竞争力,又开拓新的领域?商海行舟,不进则退。不变革便衰败,只有挣脱束缚自己的枷锁才能更好地前行。当今世界日新月异,组织必须与时俱进以保证利润和市场份额的观念已深入人心,并被奉为金句。从百事达(Blockbuster)到柯达,从纸质报业到投币电话制造商,更给了我们"不变则死"的惨痛教训。各行各业也都有公司为自己的因循守旧埋了单。     

机遇,你抓对了么

正一旦他们看准并研究透彻了特定市场上的机遇,就会制定一套聚焦战略,将注意力牢牢锚定他们认为最佳的机会,这会让战略家们一次性收获一个领域的多个机遇,而非相互割裂的一个个机会机遇稍纵即逝。对于任何企业,抓住新的增长机遇都具有战略意义上的重要性,这种重要性体现在公司整体发展、业务创新、营销创意等各个方面。更重要的是,在新的竞争环境下,公司越来越看重变革与灵活,那么是否过去强调聚焦度的战略就不再重要?     

Investigating Adoption of Free Beta Applications in a Platform‐Based Business Ecosystem

Planning new product development (NPD) activities is becoming increasingly difficult, as contemporary businesses compete at the level of business ecosystems in addition to the firm‐level product‐market competition. These business ecosystems are built around platforms interlinking suppliers, complementors, distributors, developers, etc. together. The competitiveness of these ecosystems relies on members utilizing the shared platform for their own performance improvement, especially in terms of developing new valuable offerings for end users. Therefore, managing the development of the platform‐based applications and gaining timely end‐user input for NPD are of vital importance both to the ecosystem as a whole and to the developers. Subsequently, to succeed in NPD planning developers utilizing beta testing need a thorough understanding of the adoption dynamics of beta products. Developers need to plan for example resource allocation; development costs; and timing of commercial, end‐product launches. Therefore, the anticipation of the adoption dynamics of beta products emerges as an important antecedent in planning NPD activities when beta testing is used for gaining end‐user input to the NPD process. Consequently, we investigate how free beta software products that are built upon software platforms diffuse among their end users in a cocreation community. We specifically study whether the adoption of these beta products follows Bass or Gompertz model dynamics used in the previous literature when modeling the adoption of stand‐alone products. Further, we also investigate the forecasting abilities of these two models. Our results show that the adoption dynamics of free beta products in a cocreation community follow Gompertz's model rather than the Bass model. Additionally, we find that the Gompertz model performs better than the Bass model in forecasting both short and long out‐of‐sample time periods. We further discuss the managerial and research implications of our study.     

Analyse der Marktaussichten von Biogasanlagen

Without guaranteed compensation, granted by the German Renewable Energy Sources Act (Erneuerbare Energien Gesetz/EEG), biogas plants compete with all other plant types on the market for electrical energy. However, exchange-based electricity products do not currently permit an economically viable operation of biogas plants owing to their cost situation.     

CEO career horizon,corporate governance,and real options: The role of economic short‐termism

Research Summary: Combining studies on real options theory and economic short‐termism, we propose that, depending on CEOs’ career horizons, CEOs have heterogeneous interests in strategic flexibility, and thus, have different incentives to make real options investments. We argue that compared to CEOs with longer career horizons, CEOs with shorter career horizons will be less inclined to make real options investments because they may not fully reap the rewards during their tenure. In addition, we argue that long‐term incentives and institutional ownership will mitigate the relationship between CEOs’ career horizons and real options investments. U.S. public firms as an empirical setting produced consistent evidence for our predictions. Our study is the first to theoretically explain and empirically show that a CEO's self‐seeking behavior will impact real options investments. Managerial Summary: This article helps to explain how a CEO's self seeking‐behavior may shape a firm's real option investment, which could result in different level of strategic flexibility. We argue that CEOs with short career horizons have less time to exercise their firms’ real options, which should lower the investments in the firms’ real options portfolios relative to CEOs with long career horizons. We study a sample of U.S. public firms and find strong evidence that a CEO's expected tenure in the firm is positively related to the real options investments at the firm level. We find that this agency issue can be mitigated by adopting appropriate corporate governance mechanisms such as long‐term incentives and institutional investors.     

Line by line,part by part: collaborative sketching for designing

While sketching has an established role in professional design, its benefits and role in design education are subjects that invite research and opinions. We investigated how undergraduates studying to become design educators and textile teachers used sketching to generate and develop design solutions in a collaborative setting. The students were given an authentic design assignment involving three detailed tasks, one of which was 2D visualisation by sketching. Adopting a micro-analytical approach, we analysed the video-recorded visualisation session to understand how teams used sketching to collaborate and to generate and develop design solutions. To that end, we set three research questions: (1) What ways of collaborative working are reflected in actions of sketching? (2) In what ways do sequences of collaborative sketching contribute to designing? (3) What kinds of collaborative sequences of sketching advance designing? Our analysis identified three collaborative ways of sketching (co-ordinated, collective and disclosed) and confirmed that sketching is an important facilitator of mutual appropriation, adaption and adoption. Next, we identified three ways of contributing to designing, as well as three functions and six capacities for advancing designing. Our analysis shows that sketching can lead to invaluable advances in designing, although each team had its own way of using and benefiting from sketching. We further consider that the teams’ diverse sketching processes and rich content owed, at least in part, to the task structure and imposed constraints. We continue to see sketching as an important design tool, one among many.     

A social network supported CAI model for tacit knowledge acquisition

Freehand sketching is one of the most important and commonly used methods of generating and sharing budding ideas during the conceptual development portion of the preliminary phase of design. To develop one’s skills, prolonged practice, acquiring instant feedback and suggestions while practicing are invaluable. The two key and indispensable parts of learning draftsmanship are viewing and commenting on large numbers of free hand sketches. However, due to insufficient educational resources, instructors must spend most of their time engaged in class-room teaching, reducing the time allotted for one-on-one discussion and specialized assistance. Furthermore, the lack of sketch grading criteria can prevent students from developing proper insights into the essentials of sketching. As a result, students neither receive personalized feedback nor acquire adequate training in critiquing freehand sketching skills. These factors decrease learning effectiveness and negatively impact learning motivation. In order to solve this problem, this research has created a discussion platform on Facebook that utilizes the learning characteristics essential to developing proficiency in freehand sketching. It includes practice, observation, and comments. It has been found that this cultivates the subjects’ ability to judge freehand sketch quality and increases learning motivation and effectiveness through the process of peer-assessment. After participating in the one-semester teaching experiment, the abilities of the experimental group were significantly better than those of the control group, demonstrating that the online sketch discussion platform has a significant impact on freehand sketch learning.