Success factors for collaborative product development: a study of suppliers of information and communication technology

It is apparent that more and more organizations are embarking on collaborative ventures to develop products. This is particularly evident in Information and Communication Technology (ICT) sectors, so much so that part of the 'received wisdom' of ICT companies is that collaboration is the preferred route for product development. The benefits of collaboration have been well documented and are linked to the complexity and costliness of product development and the need for inputs from wide and varied areas of expertise as well as shorter lead times for product development. But the risks and costs of collsborative product development have been less well defined. In this paper, it is argued that the alleged rewards of collaboration may not be experienced in practice and that collaboration can lengthen the product development process, add to the cost of product development and prove difficult to control. However, management practice can facilitate the effective outcome of collaborative product development and the critical factors affecting the likelihood of successful management practice are presented here.     

Caterpillar’s Interactions with Piracicaba,Brazil: A Community-based Analysis of CSR

This study examines how Caterpillar Brasil Limitada, located in the city of Piracicaba, Brazil, expanded its concept of social responsibility over a 30-year period. It first provides a contextual overview of Piracicaba within the agro-industrialized interior region of São Paulo State. It then traces the history of the firm from its initial installation in the city. While Caterpillar maintained a distant relationship with the Piracicaba community for many years, it later realized the importance of becoming involved in city development. The community-based effort led by Caterpillar to elaborate and carry out a sustainable development plan for the city is a notable example of how a firm can encourage civil participation and offer strategic planning know-how to civil-society organizations. Finally, the study analyses some of the problems Caterpillar encountered and stresses the importance of developing open democratic channels and continued civil participation in joint partnerships between business and civil society.     

Static profitability as a measure of deviations from the competitive norm

Recently, several industrial-organization economists have claimed that the rate of return on sales (II/S) is superior to the rate or return on assets (II/K) as a measure of monopoly power. This paper argues that there is no reason to prefer one index over the other. To make the point, an oligopoly model of optimizing agents is derived that yields II/K as a performance measure. The derivation leads to natural interpretations of the two indices and therefore to clarification of the circumstances under which each might be preferred.