The evolution of intellectual property strategy in innovation ecosystems: Uncovering complementary and substitute appropriability regimes

In this article, we attempt to extend and nuance the debate on intellectual property (IP) strategy, appropriation, and open innovation in dynamic and systemic innovation contexts. We present the case of four generations of mobile telecommunications systems (covering the period 1980–2015), and describe and analyze the co-evolution of strategic IP management and innovation ecosystems. Throughout this development, technologies and technological relationships were governed with different and shifting degrees of formality. Simultaneously, firms differentiated technology accessibility across actors and technologies to benefit from openness and appropriation of innovation. Our analysis shows that the discussion of competitiveness and appropriability needs to be expanded from the focal appropriability regime and complementary assets to the larger context of the innovation ecosystem and its cooperative and competitive actor relations, with dispersed complementary and substitute assets and technologies. Consequently, the shaping of complementary and substitute appropriability regimes is central when strategizing in dynamic and systemic innovation contexts. This holds important implications for the management of open innovation, innovation ecosystems, platforms, and coopetition.     

Complements or substitutes? The contingent role of corporate reputation on the interplay between internal R&D and external knowledge sourcing

Existing research does not provide a clear answer to the question of whether internal knowledge development and external knowledge sourcing are complementary or substitutive innovation activities. This paper adopts a contingent approach for addressing this issue by examining whether and how the interactive effect of internal R&D efforts and external knowledge sourcing on product innovation performance may be affected by the firm’s corporate reputation. In doing so, a three-way interaction model is applied to a sample of 251 Spanish high-technology manufacturing firms. Interestingly, initial results support the substitutive argument: the positive effect of internal R&D on product innovation performance diminishes as the exposure to external knowledge increases. However, in well reputed companies, interaction becomes positive, revealing a complementary effect. Thus, the study extends the traditional approach focused on determining whether internal and external knowledge sourcing are complements or substitutes by showing that their interplay depends on other firm-specific characteristics. Moreover, identifying corporate reputation as a source of complementarity between both activities provides an additional explanation of how corporate reputation contributes to a more effective management of knowledge assets.     

Integrating Knowledge through Information Trading: Examining the Relationship between Boundary Spanning Communication and Individual Performance*

With the global penetration of Internet technologies, individuals may now cross organizational boundaries to communicate efficiently with others regardless of time and space. Thus, when looking for help in solving work tasks, knowledge workers may just as easily contact individuals in rival firms across the globe as a coworker sitting at the next desk. As a result, management faces questions such as (1) How should firms manage employees' knowledge‐sourcing activities when they span both intra‐organizational and extra‐organizational boundaries, and (2) What is the relationship between different knowledge‐sourcing activities and individual performance? Grounded in the knowledge‐based view of the firm, we investigate these questions using data from Europe's largest information technology (IT) services and management consulting company. Our results provide evidence that organizations should support boundary spanning and knowledge sourcing from both internal and external sources. Results suggest (1) a positive relationship between boundary spanning communication and creativity and general performance, and (2) a negative relationship between a reliance on colocated coworkers as knowledge sources and creativity.     

Technology acquisition strategy in an internationally competitive environment

This research empirically examines the technology strategies of multinational firms operating in the US market. The findings suggest that external reliance on product and process technologies has a negative impact on firm success. Furthermore, geographic distance between key activities moderates the role of technology strategy on international firm success. Also, the complementary assets, dominance of the product design, and the degree of appropriability have a direct impact on firm performance.     

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty,Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.     

Connecting external knowledge usage and firm performance: An empirical analysis

Prior research suggests that firms create breakthrough innovations by using external knowledge, but it also underscores the difficulties firms face in acquiring and applying external knowledge. In this paper, we combine these insights to examine the conditions under which external knowledge usage will either enhance or erode firm performance. In particular, we argue that high external knowledge usage has a negative effect on performance when firms enter multiple new product markets, but a positive effect on performance when firms using external knowledge have higher absorptive capacity. We find general support for our hypotheses, which we test using patent citation data from the global integrated circuit manufacturing industry. Our findings have important implications for managers of firms making strategic decisions about their firms’ product portfolios and the degree to which they use external knowledge.     

Contextual influences on international subsidiaries' product technology strategy

We seek to test a broad range of factors that influence the technology sourcing decision of international subsidiaries in acquiring product technology from outside the firm (i.e., outsourcing) versus internal development. A regression model, used to analyze data from 187 international subsidiaries in six industries and with parents based in 14 countries, identifies the environmental, strategic, configurational, and resource endowment factors that influence the technology sourcing decision. Specifically, the level of product dynamism in the subsidiary's industry and the distance between the subsidiary's primary marketing and R&D operations are associated with a greater reliance on outsourcing. A differentiation goal, a low-cost goal, along with the level of the subsidiary's human and financial resources are associated with a greater reliance on internal development.     

Production systems and supplier selection: a multi-phase process model

Abstract

Purpose: This paper presents a combined multi-phase supplier selection model. The process repeatedly revisits the criteria and sourcing decision as the development process continues. This enables a structured adoption of product and production system innovation from strategic suppliers, where previously the literature purely focuses on product innovation or cost reduction. Design/methodology/approach: The authors adopted an embedded researcher style, inductive, qualitative case study of an industrial supply cluster comprising a focal automotive company and its interaction with three different strategic stamping suppliers. Findings: Our contribution is the multi-phased production and product innovation process. This is an advance from traditional supplier selection and also an extension of ideas of supplier-located product development as it includes production system development, and complements the literature on working with strategic suppliers. Specifically, we explicitly articulate the previously unreported issue of whether a supplier chosen for its innovation capabilities at the start of the new product development process will also be the most appropriate supplier during the production system development phase, when an ability to work collaboratively may be the most important attribute, or in the large-scale production phase when an ability to manufacture at low unit cost may be most important. Originality/value: The paper identifies a multi-phase approach to tendering within a fixed body of strategic suppliers which seeks to identify the optimum technological and process decisions as well as the traditional supplier sourcing choice. These areas have not been combined before and generate a valuable approach for firms to adopt as well as for researchers to extend our understanding of a highly complex process.     

Multiproduct,Multicriteria Model for Supplier Selection with Product Life‐Cycle Considerations

In industrial purchasing contexts firms often procure a set of products from the same suppliers to benefit from economies of scale and scope. These products are often at different stages of their respective product life cycles (PLCs). Firms consider multiple criteria in purchasing such products, and the relative importance of these criteria varies depending on the PLC stage of a given product. Therefore, a firm should select suppliers and choose sourcing arrangements such that product requirements across multiple criteria are satisfied over time. The extant models in sourcing literature for evaluating and selecting suppliers for a portfolio of products have not considered this important and practical issue faced by firms. This article proposes a mathematical model that effectively addresses this issue and contributes to the sourcing literature by demonstrating an approach for optimally selecting suppliers and supplier bids given the relative importance of multiple criteria across multiple products over their PLC. The application of the model on a hypothetical data set illustrates the strategic and tactical significance of such considerations.     

Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices

Prior research has argued that external knowledge sourcing can be supported by effective strategic human resource (HR) practices. However, whether and how the adoption of new organizational mechanisms in group settings influences the relationship between external search strategies and innovation performance represents an unanswered question. Therefore, the present paper aims to explore the relationship between the breadth of external knowledge sourcing (i.e., external search breadth) and product innovation by unveiling the moderating effects of strategic HR practices, as represented by the implementation of heterogeneous work groups and brainstorming sessions. On the basis of data from the Italian Innovation Survey, our results reveal that external search breadth is curvilinearly (inverted U) related to product innovation, and its negative effects occur later in the presence of heterogeneous work groups and brainstorming sessions.     

Searching for innovation: Product,process, and business model innovations and search behavior in established firms

Prior research indicates that search practices are an important part of the innovation process. But where established firms search for different innovation types is not clear. Drawing on knowledge-based theory of innovation and using state-of-the-art statistical techniques (copula with Bayesian inference), we find that established firms predominantly rely on several external sources (broad external search) when introducing new business models, on internal and external sources with high intensity (deep search) when innovating processes, and on broad and deep external search when innovating products. We explain that broad external search is important for business model innovation (BMI) because increased exploration is needed when introducing new business models that rely on general rather than specialized technical or tacit business knowledge. We contribute to the innovation and business model literatures by nuancing the differences between innovation types (BMI, product, and process innovation) and the associated search behavior. It is important to consider these differences because they give us clues to understand how established firms can explore unfamiliar territories through BMI.     

Does ‘the China Option’ influence subsidiary technology sourcing strategy?

We draw on transaction cost economics and the technology innovation management literature to advance a contextual model of the link between the perceived influence of China on technology strategy and MNC subsidiary sourcing strategy. In particular, we hypothesize that the relationship between a perceived influence of China on technology strategy and MNC subsidiary process technology sourcing strategy is moderated by the innovation context. Here, we consider the innovation context to be externally represented by the appropriability regime and dominant design, while internally it is measured by the subsidiary's level of complementary assets. We test our predictions on a multi-industry sample of 111 MNC subsidiaries from the Association of Equipment Manufacturers. We find support for the moderating influence of the innovation contexts of appropriability regime and complementary assets.     

Strategic Sourcing in the Presence of Uncertain Supply and Retail Competition

This study develops an analytical model to evaluate competing retail firms' sourcing strategies in the presence of supply uncertainty. We consider a common supplier that sells its uncertain supply to two downstream retail firms engaging in price competition in a horizontally differentiated product market. The focal firm has a dual‐sourcing option, while the rival firm can only source from the common supplier. We assess the system‐wide effects of supply uncertainty on the focal firm's incentive to pursue the dual‐sourcing strategy. We find that the focal firm's dual‐sourcing strategy can create a win–win situation that leads to increased retail prices and expected profits for both firms. Furthermore, under certain conditions, we show that it is beneficial for the focal firm to strategically source from the common supplier, even if its alternative supplier offers a lower wholesale price. Overall, we identify two types of incentives for adopting the dual‐sourcing strategy: the incentive of mitigating supply risk through supplier diversification and the incentive of strategic sourcing for more effective retail competition.     

External Knowledge Sourcing and Firm Innovation Efficiency

This study examines the relationship between external knowledge sourcing and firm innovation efficiency. We build on the organizational learning theory to propose that this relationship follows an inverted U‐shape: as the level of external knowledge sourcing increases from low to moderate, firm innovation efficiency increases; as the level of external knowledge sourcing increases from moderate to high, firm innovation efficiency declines. Further, we explore the moderating role of different contextual factors and contend that this inverted U‐shaped relationship is flattened in firms that operate in high‐tech sectors and in firms that face high internal constraints for innovation. Our empirical analysis is based on a sample of 3,204 Spanish firms over the period 2004–2015, and our results provide support for these contentions. We used data envelopment analysis methodology to estimate firm innovation efficiency relative to industry best performers, and truncated regression models for panel data with bootstrapped confidence intervals to test our hypotheses.     

Following the Herd or Not?: Patterns of Renewal in the Netherlands and the UK

How do large firms conduct their strategic renewal journeys in an increasingly turbulent environment? Are there generic industry patterns, or are these renewal journeys country- or firm-specific? To answer these questions, we examine the relative incidence of external versus internal and explorative versus exploitative renewal actions, and their speed, in leading Dutch and UK financial service companies using longitudinal data. The context, content and process dimensions of strategic renewal are distinguished, and research questions about these attributes are formulated and investigated using new metrics. Findings show that while exploration/exploitation ratios are fairly similar for firms across the entire industry, systematic differences are evident between the external/internal renewal ratios of Dutch and UK firms, and that speed of renewal is largely determined at the firm level. Thus we find that industry-, country- and firm-specific factors all influence journeys of strategic renewal in distinctive and complementary ways.     

An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance*

Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.     

Capability,Quality, and Performance of Offshore IS Vendors: A Theoretical Framework and Empirical Investigation

Information systems (IS) offshoring has become a widespread practice and a strategic sourcing choice for many firms. While much has been written by researchers about the factors that lead to successful offshoring arrangements from the client's viewpoint, the vendor's perspective has been largely scarce. The vendor perspective is equally important as offshore IS vendors need to make important decisions in terms of delivering operational and strategic performance and aligning their resources and processes in order to meet or exceed targeted outcomes. In this article, we propose and test a three‐level capability–quality–performance (CQP) theoretical framework to understand vendor outcomes and their antecedents. The first level of the framework represents three vendor capabilities: relationship management, contract management, and information technology management. The second level has three mediating variables representing process quality: partnership, service, and deliverable quality. The third level has three dependent variables representing vendor outcomes: operational performance, strategic performance, and satisfaction. The model was tested with 188 vendor firms from India and China, the two most popular destinations for IS offshoring. Results support the CQP framework; vendor capabilities are significant predictors of intermediate quality measures, which in turn affect vendor outcomes. Implications of the study findings to both theory development and IS offshore vendor strategic decision making are discussed.     

Finance and innovation in British small independent firms

This paper is concerned with the effects of internal and external capital investment funding patterns on the innovativeness of British small independent firms. By using a combined sample of firms from the relatively prosperous South East and the more problematic Scottish development region, an additional diverse regional economic perspective is given to data initially presented in a national context. Beyond a presentation of the extent of external borrowing, the paper seeks to establish the characteristics of firms obtaining external funds and to assess whether this external capital borrowing sub-sample is mainly comprised of low technology firms in decline, or of high technology firms fueling innovation-led expansion. Data is included on the role of both public and private loan agencies in the external funding process. Conclusions are based on the pattern of results and focus on ways in which the delivery of financial aid might be improved to assist expansion, particularly in fast growing high technology small firms.     

开放式创新条件下企业创新资源获取机制的拓展——基于Teece理论框架的改进

以TEECE创建的技术创新资源获取机制理论框架为研究起点,进行了开放式创新背景下的拓展。根据其对技术资源与商业化资源的划分,运用"占有机制"与"合约交易"2个关键变量,分别揭示在封闭式创新模式向开放式创新模式转变过程中,创新资源获取机制本质由创新资源控制权拓展为创新资源联合共享,具体表现为2个方面:一是技术资源占有机制由正式制度拓展为正式制度与非正式制度的集合,从而其作用机理从环境决定的外生变量,拓展为企业内生性的战略选择;二是商业化资源交易契约从合约交易拓展为合约交易与嵌入式交易。     

存在信息更新时的双源采购和后备生产结合策略研究

在现实的采购运作中,双源采购和后备生产是两种最常见的风险应对策略。本文在考虑信息更新的情况下,探讨了一个两阶段动态采购决策模型：第一阶段,制造商向存在供应风险的一个或两个主供应商订货;第二阶段,制造商根据主供应商风险信息的更新,决定是否向供应可靠但价格较高的后备供应商订货。本文得到了两阶段的最优采购策略,分析发现,当固定采购成本较低时：若潜在市场需求较小,双源采购将排斥后备生产;若潜在市场需求较大,双源采购和后备生产共存;若潜在市场需求适中,后备生产可能排斥双源采购,两者也可能共存。特别地,在潜在市场需求适中时,可靠性改进概率的增大或后备供应商生产成本的降低,将使后备生产趋于排斥双源采购;反之,可靠性改进概率的减小、固定采购成本的降低或后备生产成本的增加,将使两者趋于共存。