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1 – 10 of 16Jun Jin, Max von Zedtwitz and Li Choy Chong
The purpose of this paper is to investigate how international R & D alliances are formed during industry transition from the point of view of the local Chinese partner…
Abstract
Purpose
The purpose of this paper is to investigate how international R & D alliances are formed during industry transition from the point of view of the local Chinese partner.
Design/methodology/approach
Review of industry data provided by Chinese Statistical Office coupled with four in-depth case studies.
Findings
The nature of the technology, the characteristics of partners and the previous cooperation experience between partners are significantly related to the R & D alliance formation. The research also suggests that during this fast-growing transition period, Chinese local firms preferred non-equity contractual agreements over equity joint venture such as R & D alliance modes, and Chinese local firms favoured American and European multinational corporations (MNCs) as their alliance partners over MNCs from other countries, including the highly developed Japan and Korea.
Research limitations/implications
Single-industry focus (telecommunications), and anonymization of cases because of confidentiality of case firms. Single-country focus (China).
Practical implications
Firms in China and other emerging countries can improve their technological capability (TC) by choice to facilitate future alliance formation to access and learn the latest technology from their alliance partners, especially during the transition period of an industry and when mature and emerging technologies co-exist.
Originality/value
This paper refines alliance theory by focusing on an industry in transition and analyses formation decision factors from the point of view of the smaller domestic partner – usually studies do not differentiate as to industry maturity and inequality between partners.
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Sigvald Harryson, Sandra Kliknaite and Max von Zedtwitz
The purpose of this paper is to assess how technology‐based university research drives innovation in Europe and China.
Abstract
Purpose
The purpose of this paper is to assess how technology‐based university research drives innovation in Europe and China.
Design/methodology/approach
This paper draws on extensive theoretical research and literature reviews, and presents a framework based on theories on networking, knowledge creation and innovation. It then introduces three European cases to illustrate practical applications of the framework, and also links the findings to three Chinese cases to make comparative observations as well as recommendations related to Triple Helix concepts and their implications in the China context. It addresses the issue of how learning from universities can enhance company flexibility and performance in innovation, and outlines three different models of collaboration.
Findings
The framework and empirical research suggests that weak ties are useful for inspiration in exploration, but that strong industry‐university (I‐U) ties are required to support exploitation. This finding applies both to Europe and China in the industries covered.
Originality/value
This paper provides a new theoretical rationale for I‐U learning alliances as a natural way out from the managerial problem of trying to perform both exploration and exploitation within the same company boundaries. Through the theoretical framework, the academic science domain becomes a logical partner to handle the full phase of exploration and support the process of exploitation. The presented European cases of Bang & Olufsen, Combibloc and Porsche offer new insights into how to perform this act in practice, while the three China‐related cases allow us to cross analyse empirical findings and draw initial conclusions with policy implications for China.
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Heiko Gebauer and Max von Zedtwitz
The purpose of this paper is to extend knowledge of differences between Western European and Chinese service organizations in typical manufacturing companies.
Abstract
Purpose
The purpose of this paper is to extend knowledge of differences between Western European and Chinese service organizations in typical manufacturing companies.
Design/methodology/approach
The paper combines qualitative and quantitative research approaches. The qualitative study involved 23 minicases with Swiss manufacturing companies which operate a service organization in Western Europe and China. The results of the minicases were validated externally by using factor and discriminant analysis.
Findings
The results suggest that the service orientation of corporate culture, human resource management and the entire organization is significantly lower in Chinese service organizations than in their Western European counterparts, leading to significantly lower financial service‐related performance outcomes.
Research limitations/implications
For service management theorists, the findings suggest that increasing financial service‐related performance outcomes in China is affected to a high degree by Chinese cultural characteristics.
Practical implications
For managers, the findings suggest that implicit logic for increasing financial service‐related performance outcomes starts with overcoming typical and, in some respects, limiting cultural characteristics.
Originality/value
Unfortunately, the existing literature provides surprisingly little in the way of suggestions as to the actual differences between Western European and Chinese service organizations. This research closes this gap by validating factors that differentiate Western European from Chinese service organizations.
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Wei Xie and Maximilian von Zedtwitz
Through examining the development of the video compact disc player industry in China, this article aims to explore the main characteristics of world‐first innovation and identify…
Abstract
Purpose
Through examining the development of the video compact disc player industry in China, this article aims to explore the main characteristics of world‐first innovation and identify four success factors for innovation followers to launch world‐first products in catching‐up countries.
Design/methodology/approach
This article takes the form of a case study
Findings
The main characteristics of world‐first innovation in catching‐up countries include: from the demand side, innovation is mainly pulled by the local market, rather than technology‐push; from the supply side, innovation cannot isolate itself from the rest of the world – suppliers of key technologies in advanced countries play an important role; inter‐firm alliances are an increasingly important way to generate world‐first innovation; and downstream integration capabilities are required for followers to mix pieces of technologies together at competitive pricing. The success of followers from catching‐up countries to launch world‐first products hinges on the four critical factors: strengths of complementary assets; figuring out ways to meet local market demand without relying on large R&D spending; emphasizing untapped innovation opportunities by multinationals; and positioning themselves on the proper points of the globally coordinated network for innovation.
Originality/value
This article identifies the main characteristics of world‐first innovation and points out four success factors for innovation followers to launch world‐first products, which could be significant to managers in catching‐up countries. Findings of this paper are more relevant to large catching‐up countries such as India, Brazil, Mexico and Indonesia where a large domestic market could serve as important launch markets for the world‐first innovation.
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China has become an economic powerhouse in historic terms but there are a number of challenges to its continued prosperity. The aim of this paper is to more fully understand…
Abstract
Purpose
China has become an economic powerhouse in historic terms but there are a number of challenges to its continued prosperity. The aim of this paper is to more fully understand China's propensity for creative innovation, which is seen as an important next stage in its continued development.
Design/methodology/approach
The paper is conceptual but uses historical and secondary data to support its assumptions. The paper was written in conjunction with the 1st Global Peter F. Drucker Forum (celebrating 100 years since his birth) and attempts to continue his challenge of “the hard work of thinking”.
Findings
China has a long history of successful innovation. However, Confucian belief, a single despot and a closing off to the rest of the world have thwarted its innovative edge. The key to rekindling the entrepreneurial spirit is seen largely as an internal battle based on the state's ability to balance the institution of government with the needs of a burgeoning prospective creative class. This paper identifies that much of this change will rely on quality‐related developments rather than simply investments of financial capital.
Originality/value
The ability to create new things is a challenge to developing economies that rely on low cost and imitation. China's success in innovation will have substantial implications for developed nations both economically and geo‐politically. China wants to be a significant player on a global scale and this paper sheds light on its potential to achieve such an objective. Through traversing China's innovative landscape, this paper also enlightens the field of management on key aspects of China's innovative past, present and future.
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Fiorenza Belussi and Silvia Rita Sedita
The fragmentation of the production process is a major theme of research in international business. Trade benefits arise from the “slicing up” of the aggregate value chain, as…
Abstract
The fragmentation of the production process is a major theme of research in international business. Trade benefits arise from the “slicing up” of the aggregate value chain, as well as the entry of new countries bearing low labor costs. If, initially, multinational corporations (MNCs) relocated only standardized, low-value manufacturing activities in new emerging economies (exploitative offshoring), now they are also offshoring their knowledge-intensive activities (explorative offshoring). In the past, the literature on internationalization was mainly focused on the characterization of the MNC as a specific monolithic organization active in the international production. In the present, numerous analyses have discussed the international location of R&D activities, mainly in advanced countries. The foreign R&D subsidiaries are still tightly linked to the headquarters, maintaining a controlled position. Future research must address two orders of issues. The first is the progressive autonomy of the foreign subsidiaries, which are more and more developing new and independent lines of research. This process leads MNCs to mobilize and leverage untapped pools of knowledge scattered around the world. The second is the R&D offshoring toward emerging economies. This complex process can be characterized as a move from the smile model discussed extensively by Ram Mudambi (where emerging economies were considered as pools of low-cost labor tout court) to a new model, called here the λ (lambda) model (where emerging economies are also pools of skilled labor). This paper will explore these new trends using some illustrative cases: L'Oréal (FR), Pfizer (US), ST Microelectronics (CH), and Geox (I). The cases reveal the double orientation of MNCs toward emerging economies, where both explorative and exploitative offshoring takes place.
This study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims…
Abstract
Purpose
This study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims to examine the effect of market orientation on product innovation within the framework of technological intensity classification of the fields of business activity.
Design/methodology/approach
The research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that are ranked among Turkey's largest 1,000 manufacturing firms (ISO 1000). The data were analyzed using partial least squares structural equation modeling.
Findings
Customer orientation and interfunctional coordination, two distinct dimensions of market orientation, had positive effects on product innovation. Technological capability played a mediating role in the effect of customer orientation and interfunctional coordination on product innovation. In addition, interfunctional coordination positively affected product innovation in firms with low technological intensity, whereas customer orientation positively affected product innovation in firms with medium-high technological intensity.
Practical implications
For the success of product innovations, firms should establish mechanisms to obtain information about customer needs and expectations and to disseminate and effectively use this information among organizational functions. They also need to improve their technological capabilities to effectively transform market knowledge into product innovation.
Originality/value
The relationship between market orientation and product innovation has been examined in previous studies; however, there is an insufficient number of studies on the mediating role of technological capability in this relationship. This study aimed to eliminate the gap in the literature regarding the mediating role of technological capability. In addition, innovation activities of firms vary depending on the technological intensity, but only a limited number of evaluations have been conducted on this subject. This study contributes valuable knowledge to the relevant literature by examining the impact of market orientation dimensions on product innovation according to technological intensity.
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Bhairab Chandra Patra and Usha Lenka
The purpose of this article is to (1) map the most important topics in the domain of sustainable business practices for entrepreneurial firms in emerging countries, (2) identify…
Abstract
Purpose
The purpose of this article is to (1) map the most important topics in the domain of sustainable business practices for entrepreneurial firms in emerging countries, (2) identify important terms in the various dimensions of sustainability in business and (3) identify the important practices and prioritize the practices.
Design/methodology/approach
This study has adopted a unique methodology that combines state-of-art scientometric analysis with the fuzzy nominal group technique (NGT) and fuzzy decision-making trial and evaluation laboratory (DEMATEL). Results obtained from the co-occurrence analysis in scientometrics were further mapped through NGT to obtain the list of the most important topics in the domain. The factors affecting sustainable business practices obtained through topic mapping were analyzed through fuzzy DEMATEL to obtain the cause-and-effect relation of variables.
Findings
The scale of firms, leadership, uncertainty, gender, country/location, education and tourism were found to be the factors affecting the sustainable business practices of entrepreneurial firms. The sustainable business practices for entrepreneurial firms were (1) innovation, (2) resilience, (3) policy, (4) business ethics and virtue ethics, (5) business model, (6) upcycling and value creation, (7) collaboration and (8) triple bottom line.
Practical implications
Policymakers in entrepreneurial firms, as well as other organizations, can implement the identified sustainable business practices to obtain optimum results and smooth functioning of the companies. The research framework obtained can be tested using exploratory methods.
Originality/value
Very few researchers have used the technique of scientometric analysis to identify the sustainable business practices of entrepreneurial firms, and to the best of the knowledge of the authors, no earlier researcher has attempted to use the technique of topic mapping, fuzzy NGT and fuzzy DEMATEL in combination.
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The purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection…
Abstract
Purpose
The purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.
Design/methodology/approach
The author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.
Findings
The analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.
Originality/value
The research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.
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Veronika Ermilina, Matthew Farrell, Fatemeh Askarzadeh and Jing Zhang
For new ventures, access to entrepreneurship assistantship is the main source of growth and innovativeness. Accelerators, a growing provider of entrepreneurial resources, offer…
Abstract
Purpose
For new ventures, access to entrepreneurship assistantship is the main source of growth and innovativeness. Accelerators, a growing provider of entrepreneurial resources, offer such assistantship. This study aims to identify several factors that might account for a startup’s acceptance of accelerator programs. Particularly, this paper examines the impact of a lead founder’s country of birth, gender and education on accelerator acceptance.
Design/methodology/approach
This study tests the framework with logit regression for a sample of 10,298 observations for startups in 166 countries over 2016–2018.
Findings
This study finds that entrepreneurs from developing countries are less likely to be accepted by accelerators than entrepreneurs from developed economies. Counterintuitively, this study also finds an advantage for female entrepreneurs in accelerator acceptance. Further, the results suggest a positive impact on education. Building on signaling theory, this paper argues and shows that accelerators do not evaluate applicants uniformly.
Practical implications
Our comparative study enhances business owners’ insight for application to entrepreneurial resources and has meaningful implications for women’s entrepreneurship. For policy-making purposes, this study offers more insight on economic development for entrepreneurs’ access to global resources.
Originality/value
Despite the extant literature demonstrating the benefits of accelerators, determinants of acceptance to these programs, particularly at the individual level, are underexplored. This is the first study that shows the rarely acknowledged link between a lead founder’s country of birth, gender and education level on accelerator acceptance. Here, this study extends entrepreneurship literature and shows some sources of variation in access to international accelerator programs.
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