John E. Ettlie, Christopher Tucci and Peter T. Gianiodis
The purpose of this paper is to investigate the combined roles via trust relationships of the two technology cores of the firm: information technology (IT) and R&D and their…
Abstract
Purpose
The purpose of this paper is to investigate the combined roles via trust relationships of the two technology cores of the firm: information technology (IT) and R&D and their impact on new product success.
Design/methodology/approach
A model was tested whereby trust and the integrated IT strategy account for a significant amount of the variance in a broad range of new product development (NPD) outcomes for a survey sample of 223 manufacturing firms. Respondents said design practices and quality methods like Six Sigma accounted for a total of over 25 percent of the reports of the most helpful approaches in promoting effective NPD. At the same time their biggest challenges were having a clear strategic direction within which to operate and resolving cost and resource issues which accounted for over a third (34 percent) of barriers to success.
Findings
Respondents reported that a total of over 25 percent of the reports of the most helpful approaches in promoting effective included these quality methods. At the same time their biggest challenges were having a clear strategic direction within which to operate and resolving cost and resource issues which accounted for over a third (34 percent) of barriers to success. High-tech firms were less likely to report integrated IT strategies, but this tended to be counterbalanced by high levels of trust in the IT function and adoption of organizational innovations for execution of strategic intent. Implications for future research and practice are discussed.
Research limitations/implications
Survey methods produce broad results with low response rates in most studies involving R&D and NPD, and this study is no exception.
Practical implications
With the challenge of strategy alignment reported by many of these firms, it seems clear that the top management team cannot afford to leave NPD challenges to engineering teams and NPD programs without guidance and general vision.
Social implications
NPD has become the staple of most manufacturing firms as a way of meeting and beating the competition worldwide. However, trust between functional areas often starts before people are even employed and should begin in training and educational programs.
Originality/value
Designing NPD programs is at the heart of many firms’ competitive strategies and the fast learning companies are the winners. Very little is known about the trust relationship between IT and R&D and their combined effects on new product success which we have found to be significant and unexpected in their impacts.
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In their chapter, Mumford, Bedell-Avers, and Hunter (this volume) confront the nontrivial issue of whether creativity and innovation can be planned, and proceed to support an…
Abstract
In their chapter, Mumford, Bedell-Avers, and Hunter (this volume) confront the nontrivial issue of whether creativity and innovation can be planned, and proceed to support an affirmative answer with a well-organized treatment of the applied research literature relevant to this topic. They outline and reference an incremental approach to this planning process at multiple levels of analysis (organization, group, and individual), and present both a state-of-the-art review and a general, normative approach to this daunting challenge. In reviewing this chapter, this commentary addresses what is worthwhile and important in their presentation that students of this field should find noteworthy. Next, it takes up the issue of what is underdeveloped or missing that would fit nicely into Mumford et al.'s framework, or might provide food for thought to those wanting to go forward with research on the topic of planning for innovation. Finally, it presents conclusions about this topic and the field in general that were stimulated by Mumford et al.'s chapter, including the role of information technology and knowledge management for innovation planning.
This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of a firm’s competences through its dynamic and reciprocal…
Abstract
This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of a firm’s competences through its dynamic and reciprocal relationship with R&D and product commercialization. Three theories of technology and innovation (the R&D and technological knowledge concept, product‐process concept, technological interdependence concept) are used to relate technology and innovation to strategic management. Based on these theories, this paper attempts to identify the dynamic relationship between product innovation and process innovation using system dynamics by investigating that aspect of the dynamic changes in the closed feedback circulation structure in which R&D investments drive the accumulation of technological knowledge.
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John E. Ettlie and Kannan Sethuraman
Interest in supply chain management has been escalating during the last decade. Using a large sample of durable goods firms located in all major regions of the world, we extend…
Abstract
Interest in supply chain management has been escalating during the last decade. Using a large sample of durable goods firms located in all major regions of the world, we extend two theoretical perspectives, namely the resource‐based view and the transaction cost economics view of the firm, to better understand the issues behind global sourcing. Both theory extensions were supported in separate by statistically significant regression results. Then, pooling predictors to represent both models together, these measures independently increase the odds of predicting global sourcing. For example, building of a firm’s technological capabilities that was captured through the levels of its R&D intensity, and percentage of revenue it generated from its new products was directly related to the increased levels of a firm’s global sourcing. Transaction costs (e.g. vertical integration, inversely related; length of frozen schedules, directly related) also emerged as a significant predictor of the level of global sourcing undertaken by a firm. This suggests that firms have two alternative ways to globalize operations supply, and raises the interesting question of whether or not these two strategies might operate simultaneously.
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John E. Ettlie, Victor J. Perotti, Daniel A. Joseph and Mark J. Cotteleer
PurposeThe delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce…
Abstract
PurposeThe delivered wisdom to date has enterprise system purchase and implementation as one of the most hazardous projects any organization can undertake. The aim was to reduce this risk by both theoretically and empirically finding those key predictors of a successful enterprise system deployment.Design/methodology/approachA representative sample of 60 firms drawn from the Fortune 1000 that had recently (1999‐2000) adopted enterprise resource planning (ERP) systems was used to test a model of adoption performance with significant results.FindingsLeadership (social learning theory), business process re‐engineering (change the company not the technology) and acquisition strategy (buy, do not make) were found to be significant predictors of adoption performance (final model R2=43 percent, F=5.5, p<0.001, df=7.52), controlling for industry (manufacturing versus service), project start date and scale (sales). Electronic data interchange (EDI) usage was found to be inversely and significantly related to adoption performance which supports the notion that prior company investments in earlier generations of technology for integration might inhibit adoption of later, more radical or complex alternatives. We validated these results with a focused follow‐up study (2005) using mailed and interview protocols identical to the first questionnaire and 20 new cases of ERP deployment. We found near perfect agreement (p<0.001 binomial test) with our initial findings.Originality/valueThe “four factor” model we validate is a robust predictor of ERP adoption success and can be used by any organization to audit plans and progress for this undertaking.
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John E. Ettlie, Kevin S. Groves, Charles M. Vance and George L. Hess
The purpose of this paper is to validate cognitive style (i.e. linear, nonlinear, and balanced thinking) with innovation intentions and behaviors. It was hypothesized that a…
Abstract
Purpose
The purpose of this paper is to validate cognitive style (i.e. linear, nonlinear, and balanced thinking) with innovation intentions and behaviors. It was hypothesized that a balanced linear/nonlinear thinking style and the inclination toward more innovative intentions are strongly related.
Design/methodology/approach
A survey questionnaire of business students in the USA and France was employed. Formally validated measures of thinking style and innovation were replicated in this project.
Findings
The results of an analysis of 186 respondents found a significant, direct relationship between balanced thinking style and innovative intention and behavior measures.
Research limitations/implications
The results demonstrate that cognitive style and innovation are related, but the direct validation of actual innovative behaviors, in situ, needs to be included in the next step of this research stream. Further, the composition of groups can also be evaluated using these measures.
Practical implications
This is the first successful attempt to validate cognitive style measures with innovation outcome measures. These measures are now available for organizational testing, field research, and assessing team composition.
Originality/value
This is one of the first criterion-validity assessments of a cognitive measure related to linear and nonlinear thinking style. There are two important implications of these results. First, the authors now have a better understanding of one the links between cognition and innovation. Second, the authors have established a solid base for future research on this subject, including the importance of this effect in practice.
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It is possible to say that an expert in any field of knowledge can be expected to know particular things and techniques. This can be said of a stone mason, a physicist or a…
Abstract
It is possible to say that an expert in any field of knowledge can be expected to know particular things and techniques. This can be said of a stone mason, a physicist or a midwife. The expertise consists of a notional core of knowledge and skills (i.e. applied knowledge). Such expertise arguably can be found in other experts in the same field, although there will be idiosyncrasies of approach and valuation and quite probably divergencies in what is considered “right” and “wrong”.
– 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 personal impartial comments and places the articles in context.
Findings
In a study to validate cognitive style (i.e. linear, nonlinear and balanced thinking) with innovative intentions and behaviors, it was found that a balanced linear/nonlinear thinking style was strongly related toward more innovative intentions. Results found a significant, direct relationship between balanced thinking style and innovative intention and behavior measures.
Practical implications
The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Originality/value
The briefing saves busy executives 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.
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John E. Ettlie and Stephen R. Rosenthal
The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under…
Abstract
Purpose
The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under increasing pressure to diversify into lines of business that offer unique contributions to long term profitability and this paper increases understanding of how incumbent firms successfully accomplish this transition.
Design/methodology/approach
Using analytical induction the authors sample published announcements of significant new service offerings by well‐established manufacturing firms. An example of this type of service innovation would be General Motor's offering of OnStar remote driver support systems (not included in this sample). A total of nine cases (43 percent of the companies contacted) participated in this case study approach.
Findings
The paper identifies two primary strategies pursued by these firms development and launch of significant new service innovations representing important diversification moves for the firm. Both require CEO/President sponsorship, but are founded on different corporate cultures. The engineering culture path to commercialization tends to nurture concepts new to the firm, requires multi‐functional strategy making, and does well with champions from operations that have deep knowledge of the conversion process in the respective industry context. The entrepreneurial orientation path to commercialization tends to nurture concepts new to the industry or new to the world paired with sole champions from R&D or Engineering. Either strategy works well depending upon development culture and available resources.
Research limitations/implications
Generalizations here are limited to incumbent manufacturing firms. Innovative service offerings by new entrants in manufacturing and services as well as incumbent service firms like banks and hospitals have yet to be explored for their corporate culture patterns and sponsorship tendencies.
Practical implications
For manufacturing firms considering making the transition to significant service offerings, the findings here indicate at least two viable approaches to commercialization, but both depend significantly on the chief executive sponsorship regardless of the initial conditions and context.
Originality/value
The identified patterns of corporate culture alternatives and innovation roles, given initial contextual conditions, is a novel contribution in the field. It comes at a time when manufacturing firms are ripe for strategic change and leveraging of core competences to transition to important new service businesses.
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Mark D. Agars is an associate professor of psychology at California State University, San Bernardino. He received his Ph.D. from the Pennsylvania State University in industrial…
Abstract
Mark D. Agars is an associate professor of psychology at California State University, San Bernardino. He received his Ph.D. from the Pennsylvania State University in industrial and organizational psychology, where he worked with James L. Farr.