The Effects of Knowledge Depth and Scope on the Relationship between R&D Alliances and New Product Development

In this study, we extend the new product development (NPD) literature that proposes that firms' knowledge depth, defined as the reuse of well understood technical knowledge, and scope, defined as the use of newly acquired technical knowledge, and new knowledge accessed from R&D alliances all positively impact NPD. Building on the knowledge‐based view of the firm, we posit that the impact of firms' R&D alliances is limited when their internal knowledge depth and scope are adequate for NPD needs. We suggest that although firms form R&D alliances to gain the right to access external knowledge of R&D alliance partners, they are not obligated to invest in resources to integrate external knowledge from R&D alliances. We propose that they wait to see if their internal knowledge depth and scope prove sufficient for NPD. If the external knowledge proves to be unnecessary, firms choose not to invest the resources required to integrate this knowledge with their internal knowledge. Alternatively, we suggest an increased impact of R&D alliances on NPD when firms are more limited in their internal knowledge depth and scope. We propose that when knowledge depth and scope prove insufficient, firms make the additional investments required to integrate external knowledge from R&D alliances with their internal knowledge stock. This reasoning is consistent with real options theory as it has been applied in alliance research, where strategic alliances are characterized as real options. We find support for our hypotheses using panel data of 738 firm year observations for 143 U.S. biopharmaceutical firms operating in 2007. Our study contributes to the NPD literature and suggests new directions for future research.     

An Exploratory Model of Interpersonal Cohesiveness in New Product Development Teams

There has been a heavy emphasis in new product development (NPD) research on intrateam issues such as communication, trust, and conflict management. Interpersonal cohesiveness, however, has received scant attention. In addition, there are conflicting findings regarding the effects of close‐knit teams, which seem to have a beneficial effect up to a point, after which the tight bond becomes a detriment. This paper addresses these issues by introducing an exploratory model of interpersonal cohesiveness→NPD performance that includes antecedents, consequences, and moderating factors. Antecedents of interpersonal cohesiveness include clan culture, formalization, integration, and political dominance of one department, while consequences are groupthink, superordinate identity, and, ultimately, external/internal new product (NP) performance. The relationships among interpersonal cohesiveness, groupthink, and superordinate identity appear to be influenced by two moderating factors: team norms and goal support. Additionally, product type is identified as a moderator on the effects of both groupthink and superordinate identity on external NP performance. The model is built from two sources: a synthesis of the literature in small group dynamics and NPD, and qualitative research conducted across 12 NPD teams. Individual team leaders were interviewed first, followed by interviews with two additional members on each team, for a total of 36 interviews. In keeping with the goals of qualitative research, the interviews and analysis were used to identify and define aspects of interpersonal cohesiveness rather than to test a preconceived model. Representation of different industries and product types was sought intentionally, and variance in NP innovativeness as well as in NP market success/profitability became key criteria in sample selection. The exploratory model and propositions developed in this study provide a framework for understanding the role of interpersonal cohesiveness in NPD teams and its direct and indirect effects on NP performance. Although a significant amount of research on cohesiveness has been conducted in previous studies of small groups, the narrow laboratory settings of that research have limited the generalizability of the findings. This study therefore serves as a useful starting point for future theory development involving interpersonal cohesiveness in NPD. It also provides a guide for managers in dealing with team cohesiveness.     

Afterword: Reflections on “Capitalist development in hostile environments”

This afterword places the long essay “Capitalist Development in Hostile Environments” in the context of Giovanni Arrighi's overall intellectual trajectory. It highlights several crucial theoretical and methodological contributions to debates, including on the relationship between proletarianization and capitalist development, and between labour migration, class formation, and class conflict; on the interrelationship between “internal” and “external” processes in the explanation of social change; and on the distinction between economic progress, “catching‐up” development, and popular welfare. It concludes with a brief discussion of ways in which Arrighi's later theorization of the longue durée evolution of historical capitalism provides a robust conceptual framework for ongoing studies of proletarianization and capitalist development.     

‘Eco’ For Whom? Envisioning Eco‐urbanism in the Sino‐Singapore Tianjin Eco‐city,China

Eco‐cities have attracted international attention from governments, corporations, academics and other actors seeking to use sustainable urban planning to reduce urban environmental impacts. China has devoted significant political will and economic resources to the development of new‐build eco‐city projects, reflecting the Chinese government's goals to build a ‘harmonious society' in which environmental sustainability and social stability are mutually reinforcing. We critically analyse the case of the Sino‐Singapore Tianjin eco‐city to demonstrate that the eco‐city's ecologically modernizing visions of eco‐urbanism construct a protective environment for its residents that constrains broader consideration of social sustainability. Through analysis of the marketing and presentation of specific domestic and other spaces of the eco‐city, we examine the application of ecologically modernizing construction and technology to the design of the city. We argue that the eco‐city is discursively constructed as ecologically beneficial for its inhabitants rather than for the broader socio‐environmental landscape. Our analysis of residential spaces in Tianjin eco‐city introduces the question of what ‘eco’ means when considering the construction of eco‐urban environments for the city's residents.     

Host country executives' assessments of international joint ventures and divestitures: An experimental approach

A large body of research examines the modes by which multinational firms enter foreign markets, yet little work has considered how host country executives evaluate alternative modes of accepting inward foreign direct investment (FDI). This study adopts the host country firm's perspective to investigate the factors that affect Chinese executives' assessments of international joint ventures (IJVs) and divestitures as different modes for engaging inward FDI opportunities. We use an experimental approach to test our argument that executives' preferences for IJVs versus divestitures are driven by multinational firms' resources as well as potential transaction hazards and available remedial mechanisms. This study complements extant research on firms' entry mode choice by offering a direct test of comparative economic organization by explicitly comparing the attractiveness of alternative modes. Copyright © 2013 John Wiley & Sons, Ltd.