International Journal of Technology Management (27 papers in press)
Absorptive capacity, technological innovation capability and innovation performance: an empirical study in Hong Kong
by Antonio K.W. Lau, William Lo
Abstract: This study examines how different learning processes of absorptive capacity (AC) influence technological innovation capability (TIC), leading to better innovation performance and product competitiveness under a new industrial context. Data from a self-administrative industrial survey conducted in 200 firms in Hong Kong was used. The results show that the combination of four individual learning processes (i.e. acquisition, assimilation,rntransformation and exploitation) of AC provides the better fit of the study than a single construct of AC. All the learning processes affect innovation performance through TIC. The assimilation and exploitation have direct effects on product competitiveness. The finding of this study increases our understanding of how the learning processes of AC relates to TIC andrnfirm performance. This study also addresses the current weaknesses of AC in empirical studies by using direct measures of AC, breaking down AC into four components separately, and also studying the intangible outcomes of AC.
Keywords: Absorptive capacity; technological innovation capability; empirical study; Hong Kong.
Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?
by Patricia Laurens, Christian Le Bas, Antione Schoen
Abstract: The paper deals with the determinants of worldwide IP coverage of patented inventions in large pharmaceutical firms. We support the core idea that the internationalisation of firm R&D is a positive key factor which explains global IP coverage. For the global pharmaceutical industry we estimate logit models on the probability that a patent will be expanded worldwide. We retain two categories of worldwide patent: the well-known triadic patent and the new triadic one (triadic+ China + Korea). The data set encompasses the 17487 priority patents applied by 69 enterprises from several countries over the period 2003-2005. One important finding is that patenting in Japan sets up an important barrier, giving Japanese firms an advantage when triadic patenting is considered. For European and US firms our estimation results confirm the idea that the level of firm R&D internationalisation is a significant explanatory factor in international IP coverage, together with control variables. We highlight an inverted U-shaped relationship between these two variables.
Keywords: global patent coverage; pharma firms; internationalisation of R&D; strategy; globalisation of technology.
Classifying different types of modularity for technical system
by Hao Li, Miying Yang, Steve Evans
Abstract: Modular design is regarded as an effective approach to reduce production cost and increase mass customization and personalization in industries. The implementation of modularization requires the support of the entire technical system, including product, service and supply chains. However, most modularity studies only focus on product modularity. There is a need for comprehensive understanding of modularity in product, service and supply chains. This paper addresses this need by defining the modularity of the technical system, including product, service and supply chains; and providing classifications for modularity across product modularity, service modularity and supply chain modularity separately. The contributions of this paper are: (a) a review on the classification of technical system modularity; (b) the analysis of internal relationship among different types of product modularity, (c) a proposal for different types of service modularity and supply chain modularity. This study can assist manufacturing companies to improve modular design and management of technical system.
Keywords: technical system; product modularity; service modularity; supply chain modularity.
The Dynamics of Relational Quality in Co-Development Alliances
by Francis Bidault
Abstract: Co-development alliances are a specific form of cooperative arrangements which firms engage in with the intention of creating new products, services or technologies through coordinated efforts and commitment with other organisations. These cooperative agreements have been increasing in numbers over the past few decades. In this article, we discuss the role of relational quality, a construct that has been recognised as affecting the survival and ultimate success of alliances. We argue that relational quality is especially critical in co-development alliances, and propose a model for analysing it, and its drivers, based on a set of retrospective and longitudinal case studies that we conducted. We formulate several research propositions that can be derived from the model presented.
Keywords: Co-development; R&D partnerships; Cooperative R&D; Joint R&D; Technology alliances; Joint innovation; Co-innovation; Relational quality; Confidence in partners; Trust & control.
Technological Capabilities, Political Connections and Entry Mode Choices of EMNEs Overseas R & D Investments
by Yanyu Wang, Zhenzhen Xie, Wei Xie, Jizhen Li
Abstract: Through the combination of resource based view and institutional perspective, this study investigated how different types of ownership advantages interact to influence the entry mode decisions of emerging market multinational enterprises (EMNEs) investing in R & D overseas. Data from a survey of 82 Chinese manufacturing firms were analyzed to determine that the technological capabilities (i.e. traditional ownership advantages) and political connections (i.e. non-traditional ownership advantages) jointly influence decisions by firms to choose greenfield investments (i.e. resource-exploitation entry mode) over some sort of acquisition or joint venture (i.e. resource augmentation entry mode). Specifically, the study showed that strong political connections at home encourage greenfield investments. Strong technological capabilities have relatively little direct impact, but interact with political connections to encourage greenfield investments.
Keywords: Research and development; Resource-based view; Entry mode choices; Technological capabilities; Political connections; Emerging economies; China.
How do firms meet the challenge of technological change by redesigning innovation ecosystem? A case study of IBM
by Yuchen Gao, Xielin Liu
Abstract: An innovation ecosystem can add competitive advantages to focal firms and help them win the market with their partners. However, the ecosystem needs to evolve as the environment changes. There are few studies focusing on how the architecture of innovation ecosystem evolves and how firms accomplish this evolution through appropriate strategies of leveraging complementors. The main purpose of this study is to explore the evolutionary process of ecosystem under both radical and incremental technological changes based on a single case study and a patent analysis of IBM. From the innovation ecosystem perspective, we find that the ecosystem architecture is becoming more complicated when transforming from a single-hub to a multi-hub form via sharing patents of IBM. We also find that IBM has advanced its ecosystem as well as leveraged complementary technologies mainly by technological collaboration, mergers and acquisition (M&A), but the emphases of leverage strategies are varying along with distinct technological changes. Moreover, IBM would help the complementors co-evolve with the developing ecosystem. This study is expected to contribute to the literature of strategy and innovation ecosystem and provide firms with implicating guidance to survive and grow in a time of technology turbulence.
Keywords: innovation ecosystem; technological change; evolution; IBM; patent analysis.
Intellectual Property Strategy for the Ecosystem of the Internet of Things
by Yi-juen Chen, Ta-jung Lu
Abstract: In this paper we explored the Internet of Things (IoT) ecosystem and the intellectual property (IP) strategies of Taiwanese firms. A questionnaire survey and interviews with high-ranking managers of IoT firms offered insight in this study. Our contribution is adding the multi-supply context to the multi-invention context, introducing the ecosystem to the formulation of the IoT IP strategy, and the argument that the profitability of IoT firms is shifting from the individual firm basis to the entire ecosystem basis. We argue that IoT IP strategies must support this trend and consider aligning IP strategy with the IoT ecosystem, utilizing multi-IP protection, integrating IP strategy with industry solutions and monitoring the litigation trigger point. These resultant strategies will prove helpful to IoT firms in formulating a practical IP strategy.
Keywords: Internet of Things; IP strategy; open source; ecosystem.
The Strategy of Collaborative Monopoly with use of the scheme of Standardization for Storage Product
by Haruo Awano, Koji Tanabe
Abstract: It is important to standardize a new product in order to expand a market. However, it is not easy to profit from a standardized product because its specification is open to competitors. This paper examines the way in which IBM, HP and Quantum (former Seagate) were able to succeed in profiting from the business of LTO (Linear Tape Open) and in jointly monopolizing the market in spite of the fact that LTO was standardized. A key factor for their success is a strategy of collaborative monopoly with use of the scheme of standardization. This strategy consists of two strategic activities. First activity is to carry out the open type razor and blade business model by utilizing the scheme of standardization in order to profit from the consumables such as storage media. Second activity is to realize antecedent development of both technology and business for the next generation of the media.
Keywords: standardization; monopoly; collaboration; razor and blade; business model; strategy; consumables; IBM; HP; Quantum; LTO; antecedent development; DVD.
Identifying R&D Partners using SAO Analysis: A Case Study of Dye-sensitized Solar Cells (DSSCs)
by Xuefeng Wang, Yun Fu, Ying Huang, Yuqin Liu, Donghua Zhu
Abstract: This paper proposes a systematic process to identify potential research and development (R&D) partners from a technological perspective based on subject-action-object (SAO) semantic analysis. Improvements to traditional methods are made by combining the SAO structure map and the collaboration network analysis. The SAO structure map reveals the technological development trends, organizations research contributions, and their research experiences in the field, which are the factors that indicate an organizations R&D capabilities. Furthermore, we explore the organizations collaboration statuses through collaborative network analysis and their collaborative publications, which make it easier to identify the organizations sense of cooperation. Potential R&D partners are identified by examining the organizations R&D capabilities and sense of cooperation. An exploratory study is conducted on dye-sensitized solar cells (DSSCs). The proposed method provides useful information for organizations (firms, institutions, universities, etc.) to identify potential R&D partners or make cooperation related policies.
Keywords: Partner identification; subject-action-object (SAO); mapping science; semantic analysis; collaborative network analysis; dye-sensitized solar cells (DSSCs).
Are innovation resources and capabilities enough to make businesses sustainable? An empirical study of leading sustainable innovative firms
by Sarah Behnam, Raffaella Cagliano
Abstract: Increasingly, innovations aimed at sustainable development have occupied a top position in businesses' planning. Thus, this paper is aimed at contributing to the ongoing and current debate on sustainability-oriented innovation (SOI) development. Despite SOI's ability to bring forward new opportunities for companies, it is accompanied by increased complexity, which, in turn, may require adjustments to innovation resources and capabilities to address the challenges that arise. Starting from a conceptual framework of requisite resources and capabilities for innovations, we test these resources and capabilities empirically in five leading SOI firms. The results show that innovative SOI firms need to strengthen their exploration and exploitation capabilities, including unifying the incorporation of internal and external resources with a clear orientation. In that sense, these adjustments are hypothesised to be more important than R&D expenditures, symbolic capital growth and knowledge formalisation.
Keywords: sustainability; sustainable development; innovation management; sustainability oriented innovation; SOI; intangible resources; organisational capabilities; exploration and exploitation; knowledge retention; internal collaboration; external collaboration; open innovation; research and development; R&D.
Citation impact of public and private funding on nanotechnology-related publications
by Leila Tahmooresnejad, Catherine Beaudry
Abstract: This paper analyses the effects of public and private funding on the subsequent scientific output of academic research in nanotechnology. We investigate whether public grants increase the citation of publications, as well as whether private funding is complementary in enhancing citation impact. Using panel data, we compare autoregression models, binary case and continuous treatment analysis to find evidence that funding can positively affect the citation rate of scientific publications. The results show that the influence of public grants on the number of citations follows almost an inverted U shape curve, which has a positive impact proportional to the amount of public funding received. In contrast, industry funding does not exhibit robust effectiveness on citations. The estimates suggest that private research funding from industry can be detrimental to publication impact.
Keywords: research funding; private funding; scientific papers; citations; nanotechnology.
Investigating technological strategy and relevance of knowledge domains in R&D collaborations
by Antonello Cammarano, Francesca Michelino, Emilia Lamberti, Mauro Caputo
Abstract: The purpose of the paper is to provide a patent-based framework exhibiting how companies manage their R&D collaborations at the knowledge domain level. Two characteristics of the knowledge fields involved in alliances are examined - technological strategy and technological relevance - proposing an original mapping of R&D collaborations. Focal companies are selected from automotive, bio-pharmaceutical and technology hardware and equipment industries. By focusing on dyadic collaborations, the analysis is performed for both focal companies and their partners, and the significance of the mapping is tested with patent quality. Results show that the largest share of dyadic collaborations is focused on technological fields that are non-core for both partners. Also, from the standpoint of the focal firm, a prevalence of exploitation on exploration is uncovered. Different best practices emerge for each industry.
Keywords: R&D collaborations; joint development; knowledge domains; technological strategy; exploitation vs. exploration; technological relevance; core technologies; innovation quality; forward citations; patent data; automotive; bio-pharmaceutical; technology hardware and equipment; THE; technology management.
Corporate returns to subsidised R&D projects: direct grants vs. tax credit financing
by Jarle Møen
Abstract: According to theory, direct R&D grants should be used for projects with low private returns, high social returns and high risk. R&D tax credits, on the other hand, allow firms to choose projects freely according to their private returns. Building on the standard R&D capital model, I develop a framework for estimating private returns to R&D projects with different types of funding. I apply the framework to estimate the corporate returns to subsidised R&D projects in Norway. Consistent with theory and a high quality grant allocation process, I find that projects funded through direct grants have private returns that are not significantly different from zero and with high variance, while the return to R&D projects financed by tax credits is just slightly below the return to R&D projects financed by own funds. The latter two return estimates are 16% and 19% respectively. I find that SMEs and small R&D performers have somewhat higher returns to R&D than larger firms. The overall return estimate across all types of finance is 15%. This is in line with recent meta-regression results in the international literature.
Keywords: returns to R&D; R&D capital model; knowledge capital model; R&D subsidies; R&D grants; R&D tax credit; innovation policy; technology policy; Norway.
The strategy of repeated 'open' and 'narrow' approaches for standardised media
by Haruo Awano, Koji Tanabe
Abstract: International standardisation contributes to market expansion. The standardisation also leads to the rapid spread of the technology and allows easy entry for many competitors into the market. This often leads to severe price erosion, with the result that a company which develops business opportunities from innovation fails to profit therefrom. This paper examines the way in which Sony could succeed in profiting from the business of 130 mm MO media in spite of the fact that the media was standardised. A key factor for the success is a strategy of repeated 'open' and 'narrow' approaches. One approach is to build an entry barrier by creating a market in demand for highly reliable media. The other approach is periodic introduction of a new generation of the media with double capacity and its periodic standardisation. The market, which is once open to competitors through standardisation, is narrowed again by the aforementioned strategy.
Keywords: international standardisation; MO media; strategy; tape media; Sony; alliance; open approach; narrow approach; standardised media; repeated approaches; magneto-optic; entry barrier; periodic standardisation; technology management.
Technology-driven mergers and acquisitions of Chinese acquirers: development of a multi-dimensional framework for post-innovation performance
by Xiao Zhou, Liliana Mitkova, Yi Zhang, Lu Huang, Scott Cunningham, Lining Shang, Huizhu Yu, Kangrui Wang
Abstract: While some studies have observed the beneficial impact of mergers and acquisitions (M&As) on a firm's innovation performance in developed countries, others have found the consequences to be neutral or even negative. This article develops an integrated framework to elucidate how the combination of technological relatedness and product relatedness between acquiring and target firms affects post-innovation performance of technology-driven M&As. This performance is investigated by using a set of parameters, namely R&D input, patent and product activity, and the financial results from commercialisation. We conducted case studies on China's high-tech firms derived from three diverse industry sectors, and the empirical results indicate that both types of relatedness between the partners of technology-driven M&As are conducive to the intensification of R&D expenditures. The acquisition of similar technologies and products has more significant effects on R&D input and output, and M&As without technology relatedness have better financial performance, since they lead acquirers to new technology sectors or sub-sectors. In comparison, M&As with technological complementarity and product complementarity have negative effects on related innovation processes in the short term.
Keywords: mergers and acquisitions; M&As; technology-driven mergers and acquisitions; technology relatedness; product relatedness; innovation performance.
The knowledge protection paradox: imitation and innovation through knowledge sharing
by Kim E. Van Oorschot, Hans Solli-Sæther, Jan Terje Karlsen
Abstract: Western multinational corporations (MNCs) that want market access in China have to share knowledge with Chinese partners. This may expose them to imitation, so MNCs prefer to protect knowledge resulting in a strategic paradox: MNCs have to both share and protect knowledge. To analyse this paradox, we developed a theoretical conceptual model capturing the tensions and feedback cycles of this paradox. Next, based on data from the shipbuilding industry, a system dynamics model was developed to simulate the long-term effects of sharing and protecting strategies. The results indicate that protection is detrimental to long-term success, because it undercuts the trust of the Chinese supplier and irreparably reduces innovation rates. Knowledge protection thus reduces instead of increases the ability to share (new) knowledge in the future. A sharing strategy increases imitation, but also trust and knowledge sharing by the Chinese partner, such that it enhances the MNC's innovation rate and long-term performance.
Keywords: knowledge protection; knowledge sharing; strategic paradox; innovation; imitation; system dynamics.
Describing different integrated solutions
by Siri Jagstedt, Magnus Persson
Abstract: Integrating products and services seamlessly into a solution enables a more valuable offering to be created, described as an integrated solution. This paper investigates how various dimensions can be used to describe different integrated solutions, expanding the knowledge on how such solutions co-exist within different companies and how they can be described. A case study involving two companies shows that different integrated solutions correspond to different ways of relating to three dimensions: addressing the customer, integration and customisation.
Keywords: integrated solutions; servitisation; product-service offerings; service; product-service; addressing the customer; integration; customisation; product-service development.
Special Issue on: International Technology Strategy, Industry and Trade Policies, Innovation Processes, and Technology Sourcing and Transfer the Search for Synthesis in a Global Economy
What drives success in product innovation? Empirical evidence in high-tech and low-tech manufacturers in China
by Kris M.Y. Law, Antonio K.W. Lau, W.H. Ip
Abstract: The study aims to determine what are the major factors affecting the performance of innovation systems in both high- and low- tech industries in China. Multiple regression and PLS analyses were used to analyze a survey data from 152 manufacturers in China.
This study showed that internal R&D and competitors are the major drivers of innovation that improves the sales of new-to-market products. Major barriers of innovation include law regulations, standards and tax issues and the potential market being owned by other firms. The motivating factors include new market entry, improvement of product quality, and increase in market share. Low-tech and high-tech firms may follow different innovation paths and are promoted by differential sources of innovation, barriers and motivating factors. Some innovation activities such as acquisition of external knowledge and preparations are found to have significant mediating effects on the above relationships.
The research project brings about specific guidelines for local legislative bodies to enact effective innovation policies that align closely with the innovation characteristics of local industries.
Keywords: Innovation; motivating factors; barriers; China manufacturers; empirical study.
Special Issue on: People Create Your Innovative Technology – How Do You Manage Them
How Individuals Perform Customer Knowledge Absorption Practices A Contextual Approach to Open Innovation
by Christian A. Mahringer, Martin Rost, Birgit Renzl
Abstract: Enabling individuals to perform open innovation practices requires an in-depth analysis of the context in which those practices are enacted. However, research on the context within which open innovation is practiced, is still in its beginning. This paper develops a theoretical framework of the relationship between open innovation practices, individuals performing those practices, and context factors that enable or constrain those individuals carrying out open innovation practices. Moreover, the paper reports empirical research on context factors enabling or constraining salespeople in performing customer knowledge absorption practices, a specific subset of open innovation practices, in a pharmaceutical packaging machines firm. The paper contributes to open innovation research by (1) advancing a contextual view on open innovation, (2) emphasizing the need to distinguish between open innovation practices that provide an analytical tool to unravel the social dimension of open innovation, and (3) identifying context factors that enable or constrain customer knowledge absorption.
Keywords: Open innovation; inbound open innovation; open innovation practices; practices; outside-in process; customer knowledge; user knowledge; knowledge transfer; knowledge absorption; firm characteristics; context; contingency view; organisational design; salespeople; competencies; skills; bio-pharmaceutical industry; case study; subsidiary.
Crafting better team climate: the benefits of using creative methods during team initiation
by Dirk J. Primus, Crystal Jiang
Abstract: This study employs a mixed methods approach to investigate the effect of creative methods, the combinative use of model building and storytelling, during team initiation on team climate, a critical people-related factor in the management of collective innovation work. Qualitative analysis provides empirical evidence that creative methods benefit team initiation by raising participative confidence, engagement with the social environment as well as the team activities, friendly competition among team members, and by reducing fear of failure and habitual thinking. We also find support that the use of creative methods initiates and supports the development of positive team climate over the span of a teams life. A quantitative comparison with two control groups using the 14-item team climate inventory (TCI) 13 weeks after the team initiation indicates that the test group has significantly higher values in all dimensions of the TCI than the two control groups. Overall, this examination informs the work of innovation managers and scholars with vital insights about the effectiveness of using creative methods during team initiation.
Keywords: Team climate; Team building; Creative methods; Team initiation.
Organizational justice, emotional exhaustion, and turnover intention among Korean IT professionals: Moderating roles of job characteristics and social support
by Mi Jin Noh, Hyeongyu Jang, Beom-Jin Choi
Abstract: We performed a study to determine the influence that organizational justice has on turnover intention through emotional exhaustion and the moderating roles of job characteristics (job satisfaction and job commitment) and social support (supervisor support and colleagues support) in IT departments of Korean firms. Appropriate measures were developed and tested on 579 respondents who were programmers, systems analysts, and system operators with a cross-sectional questionnaire survey. The results showed that procedure justice, interaction justice, and distribution justice of organizational justice have negative impacts on employees emotional exhaustion in IT departments. Emotional exhaustion has a significant effect on turnover intention. The moderating effects of job satisfaction and colleague support in the relationship between emotional exhaustion and turnover intention are significant at the level of 0.05. Thus, managers should focus on enhancing organizational justice to reduce turnover intention while improving job satisfaction, job commitment and social support.
Keywords: Emotional exhaustion; Job characteristics; Organizational justice; Marketing capability; Social support; Turnover intention.
Integrative leadership for technology innovation
by Awie Vlok, Marius Ungerer, Johan Malan
Abstract: Abstract: Leading teams to bring about new technologies successfully during fast-changing times can be challenging. In the current era, people are more connected than before and able to access knowledge, networks, equipment and services themselves without corporate structures and management permission. Industrial age management practices appear inadequate for technology innovation in the innovation economy, while the literature reveals surprisingly little evidence of research into leader competencies across the technology innovation process. This paper reports the results of an exploratory mixed-methods study involving successful technology innovation leaders who were identified through peer-referenced snowball sampling. Qualitative research triangulated expert opinions, case materials, workshops results and the literature to identify leadership competencies. A measurement instrument was developed for the quantitative research, which involved eligible respondents rating the significance of identified leader behaviours. Statistically significant relationships were found in a hypothetical competency model through exploratory PLS-SEM analysis. The results reinforced some previously identified competencies, and contributed to understanding and identifying additional innovation leader competencies, including integrative leader competencies, to lead technology innovation into the future.
Keywords: Keywords: Technology innovation; innovation process; leader competencies; integrative leader; leader success orientation.
Freedom-form organizations, innovation and quality of work life: Towards a new model of interaction
by Isabelle Corbett-Etchevers, Céline Péréa, Damien Richard, Rodolphe Colle, Christian Defélix
Abstract: In this article, we aim to bring together the fields of innovation management and organizational psychology (Deci and Ryan, 1985; 2000) in order to study an increasingly adopted organizational form the Freedom-form organization (F-form) and its effects on innovation capability and quality of work life. The findings from an exploratory case study of a small French company in the software services industry allow us to build a model and to formulate propositions for studying the interaction between Freedom-form organizations, innovation capability and quality of work life.
Keywords: Freedom-form organization; quality of work life; innovation capability.
Special Issue on: Memoriam of Michael Radnor
Advanced Analytics Group and Intraorganizational Power
by Martin L. Bariff
Abstract: Organisations are challenged by increased environmental complexity
and uncertainty. Advanced analytics and the processing of big data offer a
potential solution to reducing this challenge. Advanced analytic groups
have been established in organisations to provide services and support for
these new tools and their related data. The degree of intraorganisational power
accumulated by these groups could help promote adoption of these services and
improve organisational performance. A research framework and propositions
are developed to promote the evaluation of intraorganisational power as a
mediating variable toward understanding the contribution of advanced analytics
groups contributions to organisation performance.
Keywords: intraorganisational power; IPW; advanced analytics; big data;
organisation effectiveness; organisational performance.
The impact of design architecture choices on competitiveness: Comparison of Korean and Japanese Shipbuilding Firms
by Yuichiro Mukai, YoungWon Park, Paul Hong, Geon-Cheol Shin
Abstract: This study examines why shipbuilding firms use both standardised
and customised designs and analyses the impact of design architecture choices
on competitiveness. Case study findings suggest that Korean and Japanese
firms have different strategies. Hyundai Heavy Industry Corporation (HHIC)s
development processes utilise package unit design for its suppliers. It has
contributed reducing its production processes by half. Samsung Heavy Industry
Corporation (SHIC) emphasises dual strategic options that integrate both
standardisation and customisation orientations. Meanwhile, some Japanese
companies are still successful. They adopt standardised ship strategies making
a bulk carrier which is not so complex or sophisticated. However, overall
design is still customised for each requirement. Some successful companies
adopt modularisation or closed-standardisation at the subsystem level for
the design and manufacturing productivity. These cases show the probability
of the ability of architectural dynamics contributing to the productivity and
competitiveness in the matured technological category
Keywords: .design architecture choices; Japanese shipbuilding firms; product
architecture; product development; Korean shipbuilding firms.
Dynamics of ex post uncertainty and negative behavioral direction in alliances
by Inwon Kang, Jiwon Lee
Abstract: Adopting ex post dynamism, we introduce a novel approach to the
negative behaviour in strategic alliance where firms evaluation of accumulated
risk during alliance operation leads to risk-aversive behaviour. To examine this
process, a total of 395 employees from China and Korea completed a survey on
risk-aversive behaviour in strategic alliance. Based on the collected data, the
study measures firms re-evaluation of alliance and their antecedents and
outcomes. Key results show that among the ex post uncertainties, task
uncertainty had the largest influence on risk-aversive behaviour. Moreover, the
study finds that when EA firms perceive high level of uncertainty during an
alliance operation, they show intentions to undertake contractual renegotiation
whereas non-EA firms were likely to protect their core assets. Based on the
findings, theoretical and practical implications on the management of riskaversive
behaviour in strategic alliance are discussed.
Keywords: .technology uncertainty; task uncertainty; partnership uncertainty;
equity alliance; non-equity alliance; core asset protection; contractual
What Determines the Range of Supply Chain Integration? Comparison of Korean and Japanese Steel Firms
by SungWoo Byun, YoungWon Park, Geon-Cheol Shin
Abstract: Supply chain strategies depend on competitive environments as well
as the nature of the particular business. Consequently, supply chain integration
(SCI) strategies should also be evaluated under the conditions a firm is facing.
This paper examines the determinants of range of supply chain integration. By
comparing the SCI strategies of Korean and Japanese steel firms, the paper
shows that SCI should be evaluated in light of supply chain flexibility and
uncertainty. Additionally, it is argued that although SCI with customers helps
diminish demand uncertainty, it can also bring inflexibility, which is a
customer lock-in phenomenon.
Keywords: supply chain integration; SCI; flexibility; uncertainty; Korean steel
firms; Japanese steel firms.