Mikko Hänninen and Anssi Smedlund
We illustrate how multi-sided retail marketplaces enabled by a digital platform, engage suppliers, creating new rules of retail altogether. Specifically, we describe how these…
Abstract
Purpose
We illustrate how multi-sided retail marketplaces enabled by a digital platform, engage suppliers, creating new rules of retail altogether. Specifically, we describe how these marketplaces create relational value for their suppliers, as through marketplaces like Amazon.com, suppliers are fully integrated members of the value-exchange relationship with the platform’s end-customers.
Design/methodology/approach
This paper is the result of a study of three leading marketplaces. We compared the marketplaces to understand the impact of the platform economy on the retail industry, including on the governance mechanisms and earnings logic. We identified supplier management as a key theme in our analysis, as on marketplaces such as Amazon.com, the management of supplier relationships differs from more traditional forms of retail, as in platforms, supplier quality reflects strongly on the reputation and reliability of the marketplace.
Findings
Our findings show that in addition to well-known customer engagement processes, the marketplaces also have supplier engagement processes in-place. Through engagement processes, marketplaces are able to lock-in suppliers, thus increasing the total value of the marketplace. For suppliers, marketplaces create relational value, in an industry where competition has traditionally centered on price, selection and location.
Originality/value
Thus far, studies have shown that companies differentiate through customer engagement. This paper looks at the same phenomena from the supplier side. We contribute to the understanding of complementor management in the platform economy. Based on our study, we expect that the novel concept of supplier engagement will transform how retailers interact with suppliers.
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Mikko Hänninen, Anssi Smedlund and Lasse Mitronen
Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and…
Abstract
Purpose
Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and suppliers meet the ever changing and demanding needs of retail shoppers. One example of this business model innovation is multi-sided digital platforms, which have become popular as they connect consumers with suppliers from around the world with a large ecosystem to support the retail platform. The purpose of this paper is to provide an overview of how multi-sided digital platforms are transforming the retail exchange logic and assess the implications and impact of these platform-based businesses on the retail sector, especially for business managers and consumers.
Design/methodology/approach
In this paper, the authors employ literature review, conceptual analysis and qualitative case study methodology. The authors provide an overview of how the platform economy is affecting the retail sector through the illustration of four digital multi-sided platforms: Alibaba Group, Amazon.com, eBay and Rakuten Group, and what differentiates them from incumbent business models in retailing.
Findings
The findings suggest that platforms transform the transaction logic of retailing as they simply intermediate transactions between buyers and suppliers rather than handling the entire supply and logistics chain themselves. The authors highlight the role of consumer understanding and Big Data as one example of how multi-sided digital platforms differentiate from their non-platform competitors.
Practical implications
The paper highlights how incumbent retailers can compete against new forms of business, such as digital platforms, and the authors demonstrate some of the managerial capabilities needed to remain relevant amidst this new digital competition.
Originality/value
Very little empirical studies in marketing and retail literature have focused on multi-sided digital platforms and their business models. The present study fills this gap with an overview of how multi-sided digital platforms transform the retail sector.
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Purpose – The purpose of this article is to provide a tool to map the critical roles of intermediate organizations. To clarify the concept of intermediate organizations in a…
Abstract
Purpose – The purpose of this article is to provide a tool to map the critical roles of intermediate organizations. To clarify the concept of intermediate organizations in a regional context, especially from the network dynamics point‐of‐view. Design/methodology/approach – Regional dynamics are presented as networks of production, development and innovation in the regional cluster. The intermediaries are divided into national, regional and local level actors. The roles of the intermediaries from the network dynamics point‐of‐view are then illustrated with examples from a case study in a medical technology cluster located in a sparsely inhabited area in Finland. Findings – According to the results of the case study, the regional intermediaries have the most important role in the creation and supporting of the network dynamics. The most critical roles include forming shared innovation strategies between the actors and attracting anchor tenants to the region. Research limitations/implications – The characteristics of the case region are discussed in a generic sense with the concepts of social capital and communities of practice. Practical implications – Conceptually, the article provides an approach to reducing the complexity of the regional networks to a more understandable level. The model provides a tool for the decision makers in a region to define the critical roles of the intermediaries from the network dynamics point‐of‐view. Originality/value – The novel approach introduced in this paper addresses three gaps in existing research: it helps to define the concept of an intermediary in a regional context; it shows that the intermediaries have a much broader role in a region than just knowledge transfer and that the roles of the intermediaries differ on national, regional and local levels.
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Anssi Smedlund and Marja Toivonen
The paper seeks to introduce the concept of knowledge‐intensive business services (KIBS) in the context of regional networks and to analyze the roles of KIBS in regional…
Abstract
Purpose
The paper seeks to introduce the concept of knowledge‐intensive business services (KIBS) in the context of regional networks and to analyze the roles of KIBS in regional development, especially from the viewpoint of regional intellectual capital.
Design/methodology/approach
Regional networks are presented as the networks of production, development and innovation in the region. Drawing from recent literature, the roles of KIBS in regional networks are discussed.
Findings
It is argued that networks for production emphasize explicit knowledge, networks for development emphasize tacit knowledge, and networks for innovation emphasize emergent, potential knowledge. It is further stated that KIBS provide the timely information needed in production networks, transfer best practices that support learning in development networks, and function as sources of innovation and facilitators of innovation processes in innovation networks.
Practical implications
The paper provides an approach to reduce the complexity of regional networks into a more manageable level, and highlights the importance of knowledge‐intensive business services in regions.
Originality/value
The approach used in this paper addresses the following gaps in existing research: it argues that KIBS are important actors in the regional IC development, highlights that the roles of KIBS are different in production, development and innovation activities, and argues that a successful region needs all of these activities.
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In professional services, innovation occurs in the delivery. The purpose of this paper is to provide a framework for classifying innovation in professional services by taking into…
Abstract
Purpose
In professional services, innovation occurs in the delivery. The purpose of this paper is to provide a framework for classifying innovation in professional services by taking into account the strength of the relationship with the client in addition to the incremental‐radical nature of innovation.
Design/methodology/approach
Based on the framework provided, there are operational, experimental, tactical, and high‐potential professional services, the characteristics of which are illustrated both conceptually and with a case example.
Findings
Professional service goes through different stages during its lifespan. A high‐potential service is a stage where the nature of the innovation is radical and the relationship with the client is strong. It is suggested that high‐potential services create a future competitive advantage not only for the service provider, but also for the client.
Research limitations/implications
A qualitative network approach with a focal actor perspective, in which the networks are illustrated from the supplier's point of view, is used. The characteristics of a high‐potential service are connected to the development stage of the service.
Practical implications
Classification of professional services is provided, and the importance of high‐potential services is highlighted. Advice for managers is given for designing suitable management initiatives in professional services in all their stages: idea, development, and commercialization.
Originality/value
The approach introduced in this paper addresses three gaps in the existing research: it helps to characterize and theorize the concept of innovation in professional services; it draws attention to the important role of the client in professional services, and it expands the management of innovation in professional services to include network relationships.
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The purpose of this paper is to propose that there is not one ideal network structure of knowledge flow, but many, and that the network structures of knowledge flows between…
Abstract
Purpose
The purpose of this paper is to propose that there is not one ideal network structure of knowledge flow, but many, and that the network structures of knowledge flows between employees in teams are task‐related.
Design/methodology/approach
Ideal knowledge network structures in teams are examined on the basis of the literature. A case study of a well‐established team, presented with social network analysis methods, reveals the different structures of knowledge flow.
Findings
According to the case study, it is shown that the network structures of knowledge flow are different in different tasks. It is suggested on the basis of theory that the ideal knowledge network structures are hierarchical for routine tasks, core‐peripheral for development tasks and ego‐centric for idea generation tasks.
Research limitations/implications
The research design presented in this paper should be applied to more cases to ascertain its validity.
Practical implications
This paper provides means for understanding, assessing and managing knowledge networks in teams.
Originality/value
Flows of knowledge have been found to be an important area in network research. This paper shows how they are structured according to the nature of the tasks.
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The purpose of this paper is to bring clarity to the concept of social capital in the value creation in firms from the knowledge management perspective. To discuss the social…
Abstract
Purpose
The purpose of this paper is to bring clarity to the concept of social capital in the value creation in firms from the knowledge management perspective. To discuss the social characteristics of different types of knowledge.
Design/methodology/approach
Based on a review of the literature, it is argued that different types of knowledge have the distinctive logic of value creation and social capital. Social capital is seen as a network of individuals with shared norms, beliefs and trust.
Findings
The social network structure for explicit knowledge is centralized and maintained by clearly defined rules, beliefs in high quality and trust in organizational hierarchy. The social network structure for tacit knowledge is distributed and maintained by the norms of reciprocity, beliefs in lifelong learning and an incremental trust. Finally, the social network structure for emergent, potential knowledge is decentralized and maintained by liberal norms, beliefs in innovativeness and an enabling type of trust.
Practical implications
This paper helps to understand the role of social capital in the value creation of a firm and the connections between different types of knowledge and their corresponding types of social characteristics.
Originality/value
This paper presents a holistic approach to explicit, tacit and potential types of knowledge and the argument that all are needed. It is stated that these three types of knowledge form a basis for three management systems of firms.
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Aino Pöyhönen and Anssi Smedlund
To provide a theoretical model of the dynamics of intellectual capital creation in regional clusters and in inter‐organizational networks. The model has been constructed on the…
Abstract
To provide a theoretical model of the dynamics of intellectual capital creation in regional clusters and in inter‐organizational networks. The model has been constructed on the basis of earlier studies, especially system's theoretical interpretation of organizations as knowledge systems, and then applied to the examination of a regional cluster operating in the mechanical wood processing industry in Eastern Finland. Intellectual capital in regional clusters is created by three main knowledge creation activities, each of which corresponds to a specific type of an inter‐organizational network. First, production networks aiming at efficiency and replication should function according to mechanistic system logic, focusing on the enactment of rules and regulations. Development networks aiming at continuous incremental development, on the other hand, are most successful when adhering to an organic mode, which emphasizes participation, tacit knowledge sharing, dialogue and mutual adjustments. Finally, innovation networks seeking to produce new intangible assets benefit from a dynamic systems model, where entropy and spontaneous knowledge flows form the basis for mastering radical change. Model should be applied to more cases to ascertain its validity. Provides means for understanding, assessing and managing creation of knowledge‐based value in inter‐organizational collaboration. Addresses three gaps in existing research: it focuses on regional intellectual capital; it examines the ways in which intellectual capital is created as a dynamic process; it provides means for understanding the future potential of a region.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Multi-sided platforms, such as those used by Amazon and Alibaba, have dramatically reshaped the retail industry. Old giants, like Walmart, are struggling to keep up with the innovation and customer retention that these new retail giants can command, meaning managers need to update their approach to retail sales.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.