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.     

People's choice: Public spending,taxation and local rates

Elections may reflect ideological swings, but they do not enable voters to take account either of trade‐offs between spending programmes or of the price of extra spending in terms of higher taxes. No satisfactory way has yet been found of consulting voters on this point. Here is one suggestion.     

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.     

Signaling Quality and Credibility in Yellow Pages Advertising: The Influence of Color and Graphics on Choice

Abstract

This research investigates the ability of color and graphics to convey information about quality and credibility and their influence on choice in Yellow Pages advertising. In Experiment 1, participants exposed to Yellow Pages ads across three product categories had more favorable attitudes toward the advertisement, advertiser, and quality for ads in color than for noncolored ads. Attitudes about the advertisement, advertiser, quality, and credibility were more favorable for ads with photos than for ads with line art. In both cases, results varied by product category. Experiment 2 tested the effect of color and graphics on selection of a Yellow Pages advertiser across eight product categories. Selection from a 32-page, simulated Yellow Pages booklet was made by 384 subjects. A significant effect for process (full) color and photographic-quality graphics on choice of an advertiser from Yellow Pages was found and varied across product categories. The results also highlight the impact of other variables that are controlled by the advertiser.     

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.     

Did Hayek have a monetary theory of business cycles?

Joseph Schumpeter, a careful reader of Hayek, categorized Hayek??s theory of economic cycles as non-monetary. Almost every other source, including Hayek himself, categorized the theory as monetary. The issue turns on the concept of causality being used. The question of what causality concept to apply to complex phenomena has substantive implications for economic theory. A simple concept of causality, appropriate to the study of some physical phenomena, will mislead when applied to complex phenomena. We provide examples of errors in analysis that follow from the wrong choice of a causal paradigm.