Idea Competitions under scrutiny: Acquisition,intelligence or public relations mechanism?

Idea Competitions (ICs) are becoming a popular mechanism chosen by firms to perform Open Innovation. They are a way to engage with external sources of knowledge such as individual entrepreneurs and small firms who are asked to submit ideas and compete for a prize. However, little is known about the success of ICs as acquisition mechanisms. The researchers conducted interviews in five multinational companies to evaluate the effects of using ICs as an acquisition mechanism. Although still preliminary, the results of this study show that the success of ICs as an acquisition mechanism remains uncertain because their output (i.e. the number of ideas acquired) is often low compared to the input (i.e. the number of ideas submitted) and effort required to run them (e.g. to vet ideas). Across the cases observed, ICs appear to be more successful at identifying and acquiring early-stage ideas, particularly those outside the current business focus. The study shows that ICs deliver other functional benefits such as improved intelligence and public relations and that these need to be considered as part of the evaluation of the IC's success. The paper concludes by discussing the conditions in which ICs are implemented and the implications for Open Innovation theory.     

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.     

The Scholarship of Teaching Economics

The authors report on the results of a telephone survey of 1,001 employees of seven large corporations conducted for the Business Roundtable as part of its public policy program. A set of 20 questions keyed to the Voluntary National Content Standards in Economics was embedded in the survey. A measure of economic literacy was constructed from the survey results. Greater economic literacy was associated with more overall education, more college economics coursework, high incomes, and being male. An examination of individual test questions revealed that previous college economics had substantial effects on employees' current economic literacy.     

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.     

On Explaining Individual and Corporate Culpability in the Global Climate Change Era

Humans are causing global climate change (GCC), and such climate change causes harms. Robin Attfield explained how individuals should be understood to be culpable for these harms. In this paper, I use a critical analysis of Attfield’s explanatory framework to explore further difficulties in accounting for corporate responsibility for these harms. I begin by arguing that there are some problems with his framework as it is applied to individuals that emit greenhouse gases (GHGs). I then show that it will be very difficult to extend this framework to corporations. This is not a criticism of Attfield’s work (as he does not discuss corporate responsibility for those harms associated with GCC), but it will serve to show the difficulty in philosophically explaining corporations’ moral culpability when it comes to these harms. In fact, one positive conclusion of this paper is that it highlights a new area of concern that has been ignored in discussions of corporate responsibilities—that of mediated responsibilities—which is how Attfield understands our responsibilities regarding GCC. The discussion of this concern will draw attention to another positive conclusion of this paper: the harms associated with CO₂ are very unlike the harms associated with other airborne-emitted substances, which will indicate that we will need new ways of understanding how individuals and corporations are philosophically responsible for these harms. The final positive conclusion of this paper will be a discussion of what the constraints should be on new approaches to explaining our culpability.     

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.     

Tradable permit allocations and sequential choice

This paper investigates initial allocation choices in an international tradable pollution permit market. For two sovereign governments, we compare allocation choices that are either simultaneously or sequentially announced. We show sequential allocation announcements result in higher (lower) aggregate emissions when announcements are strategic substitutes (complements). Whether allocation announcements are strategic substitutes or complements depends on the relationship between the follower’s damage function and governments’ abatement costs. When the marginal damage function is relatively steep (flat), allocation announcements are strategic substitutes (complements). For quadratic abatement costs and damages, sequential announcements provide a higher level of aggregate emissions.     

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.