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Technology strategy in networks
Abstract
This paper is based on a research program which aims to increase our understanding of how companies manage their technology. The research has led to ideas on the ''company technological system''. This is the mechanism by which a company acquires its own technologies, as well as gaining access to those of other companies and by which it applies these technologies to specific or generic customer needs. Central to the idea of the technological system is the function of the firm in combining technological resources from a variety of sources for specific applications. In other words, we recognise the importance of the technological resources that are owned or controlled by other actors. In this way, the firm is characterised not only by the configuration of its own technology, but in addition by its relationships with and linkages to the systems — or discrete technologies — of others. This means that a meaningful technology strategy is inevitably a network strategy. The paper explores the link between technology system, strategy and network dynamics and illustrates this briefly by using illustrations drawn from research into the use of suppliers as sources of distinctive technological competence.
... A representatividade das redes interorganizacionais pode ser atestada pelos crescentes estudos de casos realizados nos últimos anos Ebers, 1998;Kingsley;Klein, 1998), que abrangeram diferentes segmentos, como, por exemplo, biotecnologia (Håkansson, Kjellberg;Lundgren, 1993), telecomunicações (Pisano;Teece, 1989), bancos Crane, 1987) e hospitais Milward, 1995). Igualmente, estudos publicados nas décadas de 80 e 90, em diferentes áreas da teoria organizacional, como aprendizagem (Kraatz, 1998;Stuart et al., 1998;Håkansson et al., 1999;Beeby;Booth, 2000), marketing (Cravens;Piercy, 1994;Snow, 1997;Achrol;Kotler, 1999), inovações tecnológicas (Håkansson, 1989;Hagedoorn, 1990;Ford;Thomas, 1997) e desenvolvimento de competências Lipparini, 1999;Gulati, 1999), entre outros, demonstraram uma larga aplicabilidade das redes interorganizacionais. Especialmente para as empresas de menor porte, as redes representam uma oportunidade para a conquista de melhores condições para competir. ...
... A representatividade das redes interorganizacionais pode ser atestada pelos crescentes estudos de casos realizados nos últimos anos Ebers, 1998;Kingsley;Klein, 1998), que abrangeram diferentes segmentos, como, por exemplo, biotecnologia (Håkansson, Kjellberg;Lundgren, 1993), telecomunicações (Pisano;Teece, 1989), bancos Crane, 1987) e hospitais Milward, 1995). Igualmente, estudos publicados nas décadas de 80 e 90, em diferentes áreas da teoria organizacional, como aprendizagem (Kraatz, 1998;Stuart et al., 1998;Håkansson et al., 1999;Beeby;Booth, 2000), marketing (Cravens;Piercy, 1994;Snow, 1997;Achrol;Kotler, 1999), inovações tecnológicas (Håkansson, 1989;Hagedoorn, 1990;Ford;Thomas, 1997) e desenvolvimento de competências Lipparini, 1999;Gulati, 1999), entre outros, demonstraram uma larga aplicabilidade das redes interorganizacionais. Especialmente para as empresas de menor porte, as redes representam uma oportunidade para a conquista de melhores condições para competir. ...
... As redes de cooperação possibilitam o desenvolvimento de estratégias coletivas de inovação (Ford;Thomas, 1997) e possuem a vantagem de permitir o rápido acesso às novas tecnologias através dos seus canais de informação. "Acentuando a amplitude da informação, elas criam as condições para promover inovações, conjugando diferentes lógicas e novas combinações de informações" (Powell, 1987, p. 81). ...
A tese trata do tema redes de cooperação interorganizacionais no contexto brasileiro. O estudo aborda uma política pública governamental desenvolvida no Sul do Brasil voltada a ampliar a competitividade das pequenas empresas e gerar desenvolvimento econômico e social através do incentivo a formação de redes de cooperação entre empresas. O objetivo principal da tese é identificar e compreender os principais fatores que afetam a gestão de redes de cooperação. A partir de uma pesquisa quantitativa realizada em uma amostra de 443 empresas participantes de 120 redes, os resultados evidenciaram os principais elementos de gestão. O Programa Redes de Cooperação, desenvolvido pelo Governo do Estado do Rio Grande do Sul, trata-se de uma política pública que, desde o ano 2000, objetiva o fortalecimento competitivo de pequenas empresas e o desenvolvimento socioeconômico regional. Esse programa sustenta-se em três pilares de atuação: a) uma metodologia de formação, consolidação e expansão de redes entre empresas; b) uma estrutura regionalizada de suporte à implementação formada por uma rede de universidades regionais e c) uma coordenação central por parte do Governo do Estado, responsável pelos instrumentos de promoção, orientação e apoio aos empresários e gestores das redes. Cabe destacar que o caso estudado envolve 120 redes de cooperação, nas quais participam três mil empresas que, juntas, empregam 35.000 pessoas e faturam mais de US$ 1 bilhão. Além disso, a relação próxima com as universidades vem possibilitando uma interação acadêmica em nível nacional que tem gerado avanços teórico-práticos para o fortalecimento da cooperação interorganizacional. Com base nas referências teóricas e em evidências observadas por estudos exploratórios, realizados ex ante no campo de pesquisa, identificaram-se cinco atributos de gestão de redes – mecanismos sociais, aspectos contratuais, motivação e comprometimento, integração com flexibilidade e organização estratégica – e cinco benefícios – ganhos de escala e de poder de mercado, provisão de soluções, aprendizagem e inovação, redução de custos e riscos, e relações sociais. Para confirmação ou não dos dez fatores identificados ex ante e o seu grau de importância, realizou-se uma análise conjunta em uma amostra de 443 proprietários de empresas de uma população de 3.087 associados às 120 redes do programa. Os dados empíricos foram coletados pelo pesquisador em 2005, sendo agregados e processados através do programa estatístico SPSS versão 12.0. Os resultados obtidos pela análise conjunta confirmaram a importância dos dez fatores identificados. Nenhum dos fatores destacou-se significativamente em relação aos demais, o que indica que todos eles têm impacto semelhante na gestão das redes. No campo de estudos sobre redes interorganizacionais, as conclusões da pesquisa contribuíram para uma melhor compreensão dos fatores que influenciam em maior ou menor grau a gestão de redes de cooperação. Demonstraram empiricamente, no caso brasileiro, a coerência de postulados teóricos, desenvolvidos por pesquisas realizadas em outros contextos. No que tange às políticas públicas, os resultados evidenciaram que a promoção da cooperação em redes possibilita ganhos competitivos para as pequenas empresas. No âmbito organizacional, os fatores realçados poderão orientar os gestores nas suas decisões estratégicas no sentido de ampliar os ganhos competitivos da ação em rede.
... Moreover, the existing IMP knowledge of changes in business 1 According to Ehrnberg (1995), the appearance of technological discontinuities may require the changes in competence and other resources necessary for designing and producing the product or physical changes in the product itself or price/performance changes. 2 Where network dynamics are derived from relationship dynamics, in that changes in relationship dynamics have ripple or domino effects with the network, see for instance Hertz (1998). networks, such as mechanisms of change (Halinen et al., 1999), provides useful conceptual tools, which can be blended with the knowledge about the inter-relationship between technology and business network strategy (e.g., Thomas and Ford, 1995), to investigate the nature of relationship turbulence in a technology-intensive setting. ...
... These authors stress the importance of managing the bundle of resources and relationships in order to maintain a competitive position in the business network. For a technology-based firm, the strength of its technological competence could be categorized into one of the three different types of technology (also termed as " technology bundles " ): product technology, process technology, and marketing technology (Ford and Saren, 2001; Thomas and Ford, 1995). Product technology, which is the knowledge and ability to design a product or service valued by other actors. ...
... Bridging technological discontinuities is a pivotal strategic move that allows a firm's momentum to be sustained (Sood and Tellis, 2005; Suárez and Utterback, 1995). This move hinges on the company's management ability of its internal and external resources (Ford and Thomas, 1997). Usually the source of technological innovation is found in inter-organizational interaction (Powell et al., 1996) and its occurrence must accompany network mobilization (Easton, 1992). ...
The continuous interaction between actors, who control resources and carry out activities, produces both stabilizing and changing forces driving the development of business nets (Gadde and Mattsson, 1987; Håkansson and Henders, 1995). In highly dynamic technology-intensive industries, an actor's bridging of technological discontinuities can be a pivotal event that gives fresh impetus to the firm's long-term sustainability (Sood and Tellis, 2005); but on the other hand, such a strategic change could potentially function as a critical incident that triggers relationship turbulence between the firm and its counterparts and marks a transition period in which they migrate from their existing business net to a new business net. This paper explores the relationship turbulence that results from bridging technological discontinuities and investigates the implications of this for the net involved. Findings are presented from case-based qualitative research which has taken place in the optical recording media industry. These findings verify the existence of relationship turbulence prior to a firm's entrance into a new business net based on the next technological generation. Our empirical data also shows that the turbulence results in the reconfiguration of the existing business net and the establishment of a new relationship that links the firm to a new business net.
... For Ford & Thomas (1997), the firm can alter its technological resources by different means: a) it can improve its resource base by acquisition, including external P&D, mergers and acquisition, licenses, etc., b) it can be engaged in exploring its technologies (deploying them to produce its own products or production methods), or by means of licensing and joint ventures with other companies, c) internally managing these technologies in order to optimize its use and to establish a process for technology decision-making. The following figure illustrates the TS elements for these authors: Figure 1: Elements of the technology Strategy (Ford & Thomas, 1997). ...
... For Ford & Thomas (1997), the firm can alter its technological resources by different means: a) it can improve its resource base by acquisition, including external P&D, mergers and acquisition, licenses, etc., b) it can be engaged in exploring its technologies (deploying them to produce its own products or production methods), or by means of licensing and joint ventures with other companies, c) internally managing these technologies in order to optimize its use and to establish a process for technology decision-making. The following figure illustrates the TS elements for these authors: Figure 1: Elements of the technology Strategy (Ford & Thomas, 1997). ...
... For Dodgson (1989), the strategic management of technology involves the development of new competences and abilities, including, besides technological assessment, the setting up of collaborative relationships with other companies and the integration of them with internal expertise. Therefore, a key factor of tS concerns evaluating the importance that a variety of technologies (internal and external) may have (Ford & Thomas, 1997;Zahra, 1996). This way, the position of the firm inside the chain is defined by the other actors' role and comparative importance, the resources they control and the activities they carry out. ...
AbStrACt: this paper aims to identify and analyze recent trajectories followed by two engine assembly plants set up in brazil (one mature company and one newcomer), regarding operations and technology strategies undertaken by them. In short, the mature company has made efforts to increase quality and flexibility, while the newcomer has prioritized cost reduction and quality en-hancements, besides taken action to increase its product nationalization. The main findings indicate that (1) competitive priorities seem to "pull" the trajectories, translating market needs into specific tasks that must be fulfilled by each strategy, while the advances made in each step may "push" the trajectories, setting the basis for new strategies and making them capable of moving further; (2) al-though advances along trajectories are intended and planned, they cannot be foreseen and alternate decisions may be necessary and (3) secondary factors like the degree of autonomy assigned to firms and accumulated knowledge also influence trajectories.
... Therefore, every company can produce technology. Ford (1997) specifies technology as the ability to apply knowledge to solve a specific problem and generate profit. He classifies it into three types: product, process, and marketing technologies. ...
The desire of the population for environmentally friendly mobility without burdening social fairness and human rights is constantly increasing and the achievements and conveniences in mobility that have been reached so far are to be safeguarded. A solution for this can be electromobility along with new business models to support it. The question is: what kind of business model is able to fully develop the potential of electromobility?The aim of the thesis is to contribute to the literature on sustainable business models through the lens of the fast-growing market of electromobility. For this purpose, the concept of electromobility is analyzed and defined in a comprehensive manner. Also, the key elements of electromobility are revealed, underlining the basic principles of value proposition for customers.Electromobility is based on new technologies. However, it is shown that technology alone is not sufficient and the business model is an essential vector of innovation. Conventional and sustainable business models are discussed. The latter have a special significance for electromobility, as they already consider the environmental and social aspects of business alongside the economic one.A new framework in order to analyze and/or to design sustainable business models for electromobility is proposed. It allows to better support the specific key values of electromobility. The framework of sustainable business models for electromobility (SBMEM) has to be based on close cooperation between producers, suppliers, and providers. An ecosystem has to be formed in which the individual value chains of the involved companies in electromobility are interlinked; they contribute all together to the value proposition and the value creation and delivery. In the framework, the environmental, social and economic dimensions are transversal to the basic elements “value proposition”, “value creation and delivery” and “value capture”, considered on the basis of a comprehensive ecosystem.The framework of SBMEM is then used to analyze different existing business models of electromobility. It is shown that the latter are not sufficient for the success of electromobility because they take too little or no account of all of the environmental, social and economic aspects of the innovation.The theoretical framework developed in this study contributes to the architecture of electromobility business model and aims to broaden the understanding of the role and applicability of business models in sustainability-oriented innovations and services. This framework is intended to enable the design of new sustainable business models for electromobility or to review existing business models and draw conclusions on which measures will make them more sustainable.This new framework enables companies to find a compromise between the different dimensions of the approach. In doing so, they can satisfy the growing needs of the population regarding mobility, the preservation of environment and social fairness while achieving their business objectives.The proposed SBMEM framework was discussed based on five case studies. It reveals to be a valuable tool both to analyze existing business models and to structure business models for future businesses.
... At the same time, the firm must reflect if it has the necessary capabilities to take advantage of the innovation (Tidd and Trewalla, 1997). Otherwise, a change in the dominant logic of the firm can generate a different point of view in the strategic cooperation (Ford and Thomas, 1997;Vyas, Shelburn and Rogers, 1995), and this can change the business strategy too (Bettis and Prahalad, 1995;Fontes and Coombs, 1997). Finally, we can find eighteen theoretical propositions, which connect the different constructs in the model. ...
A study of the competitive advantage in successful New Technology Based Firms found that their technology strategy played a key role for making these companies improve their competitive advantage. We appealed to the grounded theory as a qualitative strategy to build theory, and to the exploratory case-study methodology to effectively understand this phenomenon in specific contexts as the one represented by small entrepreneurial firms in comparison with large established firms. A suitable comprehension of the different contexts required of a view of technology strategy that is more dynamic than those typically available. We build an explanatory model which integrates and groups the propositions previously developed. We view the study as exploratory to a class of studies aimed at understanding the technology strategy process in new ventures.
... Como a tecnologia é importante para a competitividade da empresa, os administradores precisam compreender como ela pode ser criada, adquirida, desenvolvida e assimilada. Segundo Ford e Thomas (1997), a percepção por parte da firma da variedade de tecnologias que a circunda e permeia, interna e externamente, é fator-chave. Considerando primeiramente as fontes internas de tecnologias , observa-se dentro do tema da gestão estratégica o aumento do interesse de pesquisadores pela abordagem baseada em recursos (Visão Baseada em Recursos ou Resource Based View). ...
Neste artigo, tem-se como objetivos identificar e analisar as estratégias tecnológicas de três montadoras de motores para automóveis e de três montadoras do setor de linha branca para, em um segundo momento, comparar os conjuntos de estratégias tecnológicas desses dois setores. Os resultados mostram que as estratégias tecnológicas adotadas pelas empresas estudadas nos dois setores são bastante semelhantes no que diz respeito às capacidades tecnológicas enfatizadas, havendo diferenças entre empresas do mesmo setor e entre setores quanto aos esforços que cada empresa despende em cada tipo de capacidade. As experiências recentes (mesmo que distintas) de reestruturação dos setores, as alterações no grau de autonomia das empresas em relação às respectivas matrizes e a priorização de objetivos estratégicos com alguma semelhança podem explicar a similaridade identificada. Contudo, a própria trajetória de desenvolvimento dos setores, além de aspectos intrínsecos a eles, justificam os diferentes esforços despendidos para as capacidades tecnológicas (semelhantes). Foram identificados como os principais fatores que influenciam e diferenciam as estratégias tecnológicas: complexidade tecnológica dos produtos; política de produtos globais e estrutura de pesquisa e desenvolvimento adotadas pelas matrizes das empresas; prioridades competitivas e aspectos estruturais e relacionais das cadeias de suprimentos.
... Formal and informal networks have traditionally played an essential role in compensating for the lack of market transparency (Bidault and Fischer, 1994;Ford and Thomas, 1997). Thus, the commercialization of knowledge assets is fundamentally social in nature (Hoegl and Wagner, 2005;Podolny and Stuart, 1995). ...
... Vergragt et al. (1982: 244) go as far as to state that technological development, "is made possible through the creation of internal coalitions or networks and by extension of these networks to include other organisations in the environment". Ford & Thomas (1997) claim that a new product development strategy is now inevitably a networking strategy, and Tidd (1997) claims that technological innovation is now best understood through a focus on networks of collaboration rather than the traditional single enterprise unit. It has also been argued that innovation networks, if regarded as a specific rather than a generic form of technological collaboration, may avoid many of the conventional problems of inter-firm collaboration -for example, "cultural mismatch" between collaborators (Child & Faulkner, 1998). ...
Innovation is increasingly seen as best conducted in networks and understood through a synthesis of evolutionary economic and sociological perspectives. This article contributes to this understanding by seeking to apply a political process perspective to collaboration between organisations engaged in new product development. It argues that the building of collaborative networks is a power-process and requires political action. Contrary to conventional views, power and politics are treated as an omnipresent feature of the creation of collaborative networks. It is concluded that mastering the political is central element of the eventual success of any product development endeavour. This argument is illustrated by drawing upon the findings of an international study on collaboration in new product development (BiCoN). Here we focus on a UK and a Danish case of software development where two contrasting forms of collaboration between the software supplier, intermediaries and end user/customers are evident.
... These efforts must follow a clear strategy, specifying the concrete intent with which the organisation wants to benefit from a network membership. External cooperations should not be treated as case-to-case decisions, but as part of a general network strategy [Duysters et al., (1999), p.187] that is embedded in a technology strategy [Ford and Thomas, (1997), p.598ff.]. According to Swan et al. (1999, p.49), this strategy will affect the extent to which a transfer of knowledge or technology will take place from the network to the member organisation. ...
When individuals act in open innovation networks, their attributes are specifically crucial in respect of their success or failure to profit from the network. The empirical background of this research was a 16‐month investigation of EURADOS, the successful European network for research on radiation dosimetry. EURADOS presently consists of almost 200 members from 52 European institutions in 31 countries. Not all EURADOS members profit equally from its open innovation network. Structural equation modelling provided an answer regarding the personal and organisational attributes that are required to profit from the network in terms of an increase in innovativeness, a reduction in costs and a better fulfilment of tasks in the home organisation. The attributes openness and the possibility to contribute influence the value that individuals derive from open innovation networks equally.
... In recent years, networks and alliances have received particular attention as sources of knowledge (for example, Hagedoorn, 1996; Powell et al., 1996; Mowery et al., 1996), so much so that a network definition of technology strategy has been proposed. 'In other words, the firm is characterized not only by the configuration of its own technology, but in addition, by its relationships with and linkages to the systems – or discrete technologies – of others' such that 'a meaningful technology strategy is inevitably a network strategy' (Ford and Thomas, 1997). There is no doubt that the network of an organisation's relationships is often key to its ability to learn and to exploit its capabilities. ...
A study of the evolution of competitive capabilities in exemplar New Zealand firms identified that technology strategy played the key role in motivating the firms' transition to positions of global prominence. Adequate description of these transitions required a view of technology strategy that is more dynamic than those typically available. We use complexity theory to identify, first, a number of positive feedback loops that have driven the technological progression of these firms, second to identify the complex webs of strategic development within which technology has progressed, and finally to explain why these trajectories carry firms to positions of distinctive advantage. These loops come together to impel firms through a radical transition from broad technology dabblers to focussed technology specialists. We view the study as exploratory to a class of studies aimed at understanding the evolution of technology strategy over time.
... At the same time, the firm must reflect if it has the necessary capabilities to take advantage of the innovation (Tidd and Trewalla, 1997). Otherwise, a change in the dominant logic of the firm can generate a different point of view in the strategic cooperation (Ford and Thomas, 1997;Vyas, Shelburn and Rogers, 1995), and this can change the business strategy too (Bettis and Prahalad, 1995;Fontes and Coombs, 1997). Finally, we can find eighteen theoretical propositions, which connect the different constructs in the model. ...
A study of the competitive advantage in successful New Technology Based Firms found that their technology strategy played a key role for making these companies improve their competitive advantage. We appealed to the grounded theory as a qualitative strategy to build theory, and to the exploratory case-study methodology to effectively understand this phenomenon in specific contexts as the one represented by small entrepreneurial firms in comparison with large established firms. A suitable comprehension of the different contexts required of a view of technology strategy that is more dynamic than those typically available. We build an explanatory model which integrates and groups the propositions previously developed. We view the study as exploratory to a class of studies aimed at understanding the technology strategy process in new ventures. © Universidad Alberto Hurtado, Facultad de Economía y Negocios.
Web-based social networks are not only part of the daily life for millions of individuals; they also represent a potentially valuable tool for knowledge sharing, cooperation and communication in the public sector and especially in public procurement. While the usage of open external social media platforms dominates, intra-organizational (IT-based) social networks are still rare and only very few dedicated open social networks for the public sector exist. We introduced the Public Administration and Procurement Network (PAPN), an open web-based social network explicitly for users from the public sector in 2008. This paper presents key learnings from the journey, starting with the go-live more than ten years ago until today with more than 20,000 PAPN users. While doing so, we reflect upon the academic literature in the domain. However, only very few sources address the manifold critical success factors associated with running such a network.
Die externe Verwertung von Technologien mittels Lizenzvergabe, Patentverkauf, Auftragsforschung und Kooperationen hat in den letzten Jahren stark zugenommen. Die systematische Nutzung dieser Technologieverwertungsform wird jedoch in vielen Unternehmen durch ein Wissensdefizit hinsichtlich des Management dieses Prozesses behindert. Im vorliegenden Artikel werden die Ergebnisse einer explorativen Fallstudienuntersuchung des externen Technologieverwertungsprozesses in zehn führenden Großunternehmen präsentiert. Ausgehend von der historischen Entwicklung der Prozesse in den untersuchten Unternehmen werden drei Generationen des Managements der externen Technologieverwertung unterschieden.
Purpose
The purpose of the paper is to contribute to further advancing of IMP as a research field by setting up and starting a theoretical conversation between system theory and the IMP.
Design/methodology/approach
The approach is based on a narrative literature study and conceptual research.
Findings
The authors find that system theory and cybernetics can be regarded as important sources of inspiration for early IMP research. The authors identify three specific theoretical “puzzles” in system theory that may serve as useful topics for discussion between system theorists and IMP researchers.
Originality/value
Only a handful of papers have touched upon the relationship between system theory and IMP before. This paper combines a narrative, historical analysis of this relationship with developing specific suggestions for using system theory as a vehicle for further advancement of IMP research.
The external exploitation of technologies by companies by means of licensing-out, sale of patents, and collaborations has grown tremendously over the last few years. The systematic use of this technology exploitation mode is hindered by a large knowledge gap in the efficient and effective organisation of this process. The aim of this contribution is therefore to learn more about how the external technology exploitation process is performed in technology intensive multi-business companies. The research results of ten exploratory in-depth case studies in leading European companies are presented. Firstly, from an historical analysis of the development of the technology exploitation process, three generations of organising the technology exploitation process are derived. Secondly, fundamental policy issues of organising the external technology exploitation process are described. Thirdly, based on the case studies and literature, fundamental principles of organising the external technology exploitation process are developed.
This article attempts to understand the dynamics of learning and innovation in the context of cooperation networks among small and medium-sized enterprises. We seek to answer the following question: does cooperation in networks enable learning and innovation within the associated companies? The article is based on theoretical reflections of authors which indicate that learning and innovation are moving from a unidirectional, individual and endogenous process of the isolated company to an open, multidirectional, collaborative, and networked process. The study was carried out in two stages of data collection, the first was a focus group and the second was a survey of a sample of 816 companies associated to cooperation networks. The main findings emphasized that older networks with more businesses associated and from the commercial sector showed better performance concerning the adoption of new practices and the launch of new products and services.
During the 'new economy' hype, a strong rise in intellectual property trade was expected for the future. Researchers and practitioners hoped that the internet could help firms diminish the deficiencies that had previously limited the use of the markets for intellectual property. In particular, internet-based exchanges were considered to offer a great potential for facilitating the transfer of intellectual property. Despite this initial attention, prior research has neglected to observe and assess the development of web-based exchanges and to analyse the implications for firms' intellectual property strategies. Drawing from case studies in middle and large firms, the extent of intellectual property trade is studied via internet-based exchanges. Moreover, major managerial problems and challenges of trading intellectual property via web-based exchanges are identified. These problems are partly due to the nature of the good that is traded; in a way, they seem to be particular characteristics of internet-based intellectual property trade. As a result, it has been found that most firms use web-based tools for trading intellectual property to a limited extent. Besides discussing the study's theoretical and managerial implications, suggestions for future research are presented.
Besides absorbing external technology, open innovation involves the commercialisation of technology assets. External technology exploitation refers to the outward transfer of technologies exclusively or in addition to their application in a firm's own products, especially out-licensing transactions. Despite the enormous benefits of some pioneering firms, most companies experience strong managerial difficulties in externally leveraging technology. Because of the considerable opportunities and risks of technology licensing, a firm's strategy plays a critical role in achieving the benefits of outward technology transfer. After detailing the theoretical perspective of external technology exploitation, the paper explores major characteristics of the strategic approach of firms. The conceptual analysis suggests that, beyond an open approach to technology exploitation, the actual driver of technology licensing is the degree of actively commercialising technology assets. Firms that are open to licensing technology without actively initiating technology transactions are not able to fully realise the opportunities in the markets for technology. The study's implications for research and practice are discussed, and suggestions for future research are presented.
The external exploitation of technologies by companies by means of licensing-out, sale of patents, and collaborations has grown tremendously over the last few years. The systematic use of this technology exploitation mode is hindered by a large knowledge gap in the efficient and effective organisation of this process. The aim of this contribution is therefore to learn more about how the external technology exploitation process is performed in technology intensive multi-business companies. The research results of ten exploratory in-depth case studies in leading European companies are presented. Firstly, from an historical analysis of the development of the technology exploitation process, three generations of organising the technology exploitation process are derived. Secondly, fundamental policy issues of organising the external technology exploitation process are described. Thirdly, based on the case studies and literature, fundamental principles of organising the external technology exploitation process are developed.
This article investigates the role of networks in new product development by reporting on a contemporary case study of a firm in the defence electronics sector. A specific focus is the development and ongoing management of a network that comprises a number of formal inter-firm strategic alliances. The paper begins by reviewing earlier literature on technology strategies for innovation that has identified a key role for inter-firm networking in the organization and management of new product development. We then consider the related issue of the relevant management expertise, which enables firms to adopt a network approach to their strategy for innovation by developing a competence in the process of network building. In this particular case study the critical issue centred upon the extent of the internal resources in terms of time and personal effort that was devoted to building trust and actively managing various inter-firm relationships over time. The article concludes that while inter-firm networking can facilitate new product development across firm boundaries, it is not a panacea for success. Whilst financially successful in terms of product and market development, the networking strategy has also set up problems within the particular case study firm in terms of resourcing and managing the very growth that has been generated.
The need to access knowledge globally is increasingly driving organisations to form international research alliances. When partners in such alliances reside in different nations, respective government policies may impinge on the strategic development and structure of the alliance. In this paper, we discuss the impact of perceived policy stances on the alliance strategy of research and technology institutes (RTIs) and provide a framework for considering possible alliance strategies. We believe that the choice of alliance strategy will depend upon how the RTI ‘frames’ its government’s policy stance. The influence of ‘framing’ on the development of research alliance strategy is illustrated with a case study of an alliance between a New Zealand RTI and an American high technology firm in the emerging superconductivity industry. The paper concludes with a discussion of how use of the alliance strategy framework may impact on organisational practice and the development and interpretation of government policy.
In addition to exploiting knowledge in own products and services, firms may externally commercialize their knowledge assets, e.g., by means of licensing out technology. Despite strong imperfections in the markets for knowledge, the commercialization of knowledge assets has recently become a broader movement. However, prior research has often neglected the external mode of knowledge exploitation despite the contradictory situation that some pioneering companies realize enormous benefits whereas most other firms experience strong managerial difficulties. Therefore, we analyze whether firms may increase their performance in licensing out technology by initiating market pull effects due to the reputation of being a valuable knowledge provider. We derive six hypotheses regarding determinants and consequences of building reputation, taking into account technological turbulence as an external contingency factor. The hypotheses are tested with new measures and data from a questionnaire-based study of 152 firms across industries. The results show that firms may overcome the imperfections in the knowledge markets by actively developing reputation. The path-dependent nature of reputation contributes to explaining the discrepancies between the success of some pioneering companies and the difficulties of most other firms.
We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
The resource-based approach is an emerging framework that has stimulated discussion between scholars from three research perspectives. First, the resource-based theory incorporates traditional strategy insights concerning a firm's distinctive competencies and heterogeneous capabilities. The resource-based approach also provides value-added theoretical propositions that are testable within the diversification strategy literature. Second, the resource-based view fits comfortably within the organizational economics paradigm. Third, the resource-based view is complementary to industrial organization research. The resource-based view provides a framework for increasing dialogue between scholars from these important research areas within the conversation of strategic management. Resource-based studies that give simultaneous attention to each of these research programs are suggested.
This paper reports the results of an exploratory analysis of the actions taken by rivalious firms to create competitive advantage in 13 US product market segments. Twenty-four actions taken by competitors to achieve competitive advantage were identified. These were examined in greater detail through use of a survey that identified the common and unique actions used by the rivals. The findings indicate that a focused approach to the market together with increased use of product and process technology throughout market growth and concentration phases of industry maturity are important elements of successful competition.
Technology strategy, a relatively new concept in management theory, describes how firms might use technology to gain competitive advantage. However, little practical information exists to assist firms in incorporating technological issues into the overall strategy of the firm. To counter this, a utilitarian, time-based model of the process of technology strategy has been developed. The proposed model links six technologially related tasks with decreasing time-frames, which are based on Jagues organizational constructs. Such time-frames reflect short-, medium-nad long-term future periods relevant to management decision-making and corporate development activites. The spectrum of tasks and time-frames are in the following ranges; setting horizons, beyond 20 years; industry forecasting, relating to the peirod 10-20 years ahead; technology positioning, 5-10 years; determining technology availability, 2-5 years; appropriating technology, between 1-2 years; managing technology, relating to the first year.In outlining these tasks and time-frames, it is argues that the six tasks are interrelated and should operate in parallel, in an iterative manner.
The research on which this paper is based is the first half of a continuing three-year study on technology strategy in UK firms. The research takes the firm as its focus, rather than the individual innovation or the industry sector. In this context it takes technology as the unit of analysis, looking at the acquisition, management and exploitation of technological sources. We take the view that technology is a concept encompassing different kinds of knowledge concerned with the design, production and delivery of products and services. Thus we can talk about product, process and marketing technologies. This paper concentrates on one aspect of technology acquisition and management: the ways in which companies achieve the assimilation of new technologies. We look at the methods used to relate new technology to the existing activities and resources of the firm, and at the managerial issues raised by the process of new technology introduction. We review briefly some literature concerning company technology strategy and acquisition. It highlights some ways in which the process of assimilation of technology impacts upon, and is affected by, managerial perceptions of technologies and their embodiment in products and processes. Data drawn from six opening case studies are used in the paper to illustrate how these elements can be said to constitute a 'technology system' specific to the firm. Technology assimilation affects and is affected by the nature of this system and the way in which managers perceive it. The case studies involve detailed standardized interviews with senior general and technical managers and with technical specialists. Tentative conclusions are drawn concerning differing company profiles and directions for continuing research.
This paper critically examines the contribution of aspects of the resource-based view of the firm to global competition in particular, and to strategic management in general. Three concepts—core competence, organizational capability, and administrative heritage—are defined and compared with the current mainstream economic tradition of strategy. The value of these concepts in analyzing and explaining competitive strategy is determined through a detailed field-based case study of three firms in the worldwide bearings industry. It is found that the resource-based view of the firm complements economic analysis, and that both are essential to a complete understanding of global strategy.
This paper attempts to explain why innovating firms often fail to obtain significant economic returns from an innovation, while customers, imitators and other industry participants benefit Business strategy — particularly as it relates to the firm's decision to integrate and collaborate — is shown to be an important factor. The paper demonstrates that when imitation is easy, markets don't work well, and the profits from innovation may accrue to the owners of certain complementary assets, rather than to the developers of the intellectual property. This speaks to the need, in certain cases, for the innovating firm to establish a prior position in these complementary assets. The paper also indicates that innovators with new products and processes which provide value to consumers may sometimes be so ill positioned in the market that they necessarily will fail. The analysis provides a theoretical foundation for the proposition that manufacturing often matters, particularly to innovating nations. Innovating firms without the requisite manufacturing and related capacities may die, even though they are the best at innovation. Implications for trade policy and domestic economic policy are examined.