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Book part
Publication date: 2 August 2016

Marco Ceccagnoli and Frank T. Rothaermel

This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the…

Abstract

This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability regime and the ownership of specialized complementary assets, the chapter examines how their interaction is so critical in affecting imitation, commercialization options, and firm performance. After reviewing the underlying conceptual framework and empirical evidence, and using a perspective that cuts across both time and industries, the authors then discuss the implications of innovation profits for the resources to be devoted to the discovery of new or improved product and processes.

Details

Technological Innovation: Generating Economic Results
Type: Book
ISBN: 978-1-78635-238-5

Keywords

Book part
Publication date: 26 February 2008

Marco Ceccagnoli and Frank T. Rothaermel

This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the…

Abstract

This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability regime and the ownership of specialized complementary assets, the chapter examines how their interaction is so critical in affecting imitation, commercialization options, and firm performance. After reviewing the underlying conceptual framework and empirical evidence, and using a perspective that cuts across both time and industries, the authors then discuss the implications of innovation profits for the resources to be devoted to the discovery of new or improved product and processes.

Details

Technological Innovation: Generating Economic Results
Type: Book
ISBN: 978-1-84950-532-1

Book part
Publication date: 31 August 2016

Ari Dothan and Dovev Lavie

Resource reconfiguration enables firms to adapt in dynamic environments by supplementing, removing, recombining, or redeploying resources. Whereas prior research has…

Abstract

Resource reconfiguration enables firms to adapt in dynamic environments by supplementing, removing, recombining, or redeploying resources. Whereas prior research has underscored the merits of resource reconfiguration and the modes for implementing it, little is known about the antecedents of this practice. According to prior research, under given industry conditions, resource reconfiguration is prompted by a firm’s corporate strategy and by characteristics of its knowledge assets. We complement this research by identifying learning from performance feedback as a fundamental driver of resource reconfiguration. We claim that performance decline relative to aspiration motivates the firm’s investment in knowledge reconfiguration, and that this investment is reinforced by the munificence of complementary resources in its industry, although uncertainty about the availability of such resources limits that investment. Testing our conjectures with a sample of 248 electronics firms during the period 1993–2001, we reveal a clear distinction between exploitative reconfiguration, which combines existing knowledge elements, and exploratory reconfiguration, which incorporates new knowledge elements. We demonstrate that performance decline relative to aspiration motivates a shift from exploitative reconfiguration to exploratory reconfiguration. Moreover, munificence of complementary resources mitigates the tradeoff between exploratory and exploitative reconfigurations, whereas uncertainty weakens the motivation to engage in both types of reconfiguration, despite the performance gap. Nevertheless, codeployment, which extends the deployment of knowledge assets to additional domains, is more susceptible to uncertainty than redeployment, which withdraws those assets from their original domain and reallocates them to new domains. Our study contributes to emerging research on resource reconfiguration, extends the literature on learning from performance feedback, and advances research on balancing exploration and exploitation.

Details

Resource Redeployment and Corporate Strategy
Type: Book
ISBN: 978-1-78635-508-9

Keywords

Article
Publication date: 16 March 2015

HanGyeol Seo, Yanghon Chung, Dongphil Chun and Chungwon Woo

– The purpose of this paper is to examine which value capture strategies are efficient in the invention stage and commercialization stage for small and medium enterprises (SMEs).

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Abstract

Purpose

The purpose of this paper is to examine which value capture strategies are efficient in the invention stage and commercialization stage for small and medium enterprises (SMEs).

Design/methodology/approach

According to the characteristic of four primary value capture strategies, the authors categorized the formal-oriented strategy (patent), informal-oriented strategies (secrecy, lead-time), mix strategies (both formal and informal strategies), and whether to invest in complementary assets. In order to assess R & D productivity based on value capture strategy, this paper applied the two-stage data envelopment analysis for data collected from Korea Innovation Survey 2010. The sample was made up of 640 SMEs in manufacturing industry.

Findings

The results suggest that informal strategy (secrecy, lead-time) is efficient in the invention stage. Furthermore, mixed use of formal (patent) and informal strategies results in higher productivity in the commercialization stage. Lastly, the results suggest that productivity may vary depending on the investment in complementary assets. Whereas the investment in complementary assets may reduce R & D productivity at the invention stage, it may increase the productivity at the subsequent commercialization stage.

Research limitations/implications

This paper did not consider external conditions such as institutional environment, industry characteristics and complexity of technology, as possible factors affecting their firm performance that need future studies.

Practical implications

For practitioners, the results seem to stress that should be good at combining value capture strategies in order to capture financial performance from the invention.

Originality/value

This study is a novel attempt to analyze R & D productivity in terms of each value capture strategy throughout the two stages: invention stage; commercialization stage.

Details

Management Decision, vol. 53 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 7 June 2013

Yue Zhang, Jiang Yu and Yanmei Liu

The purpose of this paper is to explain how institutional elements and market conditions shape and then reshape the development of high‐tech industries in large emerging countries.

Abstract

Purpose

The purpose of this paper is to explain how institutional elements and market conditions shape and then reshape the development of high‐tech industries in large emerging countries.

Design/methodology/approach

This paper develops a new framework to assess the impact of market and institutions on the high‐tech industry evolution in large emerging economies such as China. The qualitative approach based on historical data and interviews are provided to support the framework.

Findings

The framework and empirical research suggest that the institution systems and market dynamics will interact and influence the transformation process of industrial structure and the strategic choice of partnership arrangement between the domestic and foreign firms. The complementary assets which are considered as proxy to the resource accessibility in the market are also identified in the framework and it was verified in the case study.

Practical implications

This study has important implications for business strategy in emerging economies. The authors' observations indicate building close ties with domestic firms is an important asset to minimize the liability of foreignness for multinational firms. The paper has alluded to co‐evolutionary dynamics in the development of high‐tech industry in China by linking market initiative with institutional environment.

Originality/value

First, the study contributes to institutional‐based view of business strategy by explaining the choice of strategic partnerships between indigenous and foreign players arising from institutional and market considerations. Second, the study extends our understanding of technological catch up in newly‐industrializing countries by showing the interrelation between market elements and institutional arrangements and the corresponding changes to meet technological development needs.

Article
Publication date: 12 November 2021

Dut Van Vo, Yusaf H. Akbar and Loc Dong Truong

This study aims to investigate the moderating effects of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local…

Abstract

Purpose

This study aims to investigate the moderating effects of subsidiary size on the association between institutional distance and subsidiary’s access to complementary local assets (ACLA) in a transition economy.

Design/methodology/approach

The data of 1,027 subsidiaries located in Vietnam were extracted from the survey of General Statistics Office of Vietnam. Hausman’s test shows that random effect model is appropriate to estimate the moderating effects of subsidiary size on the association between the institutional distance and subsidiary’s ACLA.

Findings

The findings revealed that the greater formal and informal institutional distances between home and host countries, the lower a subsidiary’s ACLA in a transition economy. In addition, larger subsidiaries’ ACLA in a more formal and informal institutional distant country are higher than smaller subsidiaries.

Research limitations/implications

Multinational enterprise (MNEs) have a continuous need to use their foreign subsidiaries operating in host countries, particularly those with transition economies, to overcome institutional differences to ACLA in a transition economy. In addition, subsidiaries should be invested with greater resources to collaborate with local partners to serve for accessing to complementary local assets in transition economy characterized by an uncertainty institutional environment.

Originality/value

By integrating the institutional theory and the resource-based view, the study developed a theoretical model about the moderating role of subsidiary size on the association between institutional distance and subsidiary’s ACLA in transition economy. The findings confirmed that simultaneously applying the institutional theory and the resource-based view to investigate location-specific advantages exploitation of subsidiaries is relevant not only in developed economies but also in a transition economies.

Details

Journal of Asia Business Studies, vol. 16 no. 6
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 1 June 2010

Yu‐Ching Chiao, Fang‐Yi Lo and Chow‐Ming Yu

The purpose of this paper is to examine the impact that three sets of variables – derived from transaction cost theory (TCT), the resource‐based view (RBV), and…

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Abstract

Purpose

The purpose of this paper is to examine the impact that three sets of variables – derived from transaction cost theory (TCT), the resource‐based view (RBV), and institutional environment – have on choice of entry strategies of multinational corporations (MNCs) from an emerging market.

Design/methodology/approach

The sample consisted of 819 Taiwanese firms which were investigated using a national survey, and logistic regression analysis was used for testing the hypotheses.

Findings

The empirical findings confirm that the following factors affect this decision: firm‐specific assets, international experience, whether a firm is investing abroad in pursuit of a particular customer, whether a firm seeks complementary assets abroad, and the perceived institutional differences (PEDs) between a firm's home country and the host country. The findings also suggest that PEDs have a moderating effect on foreign market entry.

Research limitations/implications

As MNCs from emerging markets make the decision of entry mode strategies, they must carefully consider not only the related variables in terms of TCT and the RBV, but also the influence of institutional factors in host countries.

Originality/value

This paper explores the modes of entry chosen by Taiwanese firms investing in China on the basis of TCT, institutional environment, and the RBV.

Details

International Marketing Review, vol. 27 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 20 April 2012

Marshall S. Jiang and Bulent Menguc

The purpose of this paper is to study brand embedded licensing (technology licensing and brand licensing combined) and its theoretical difference from standard licensing…

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Abstract

Purpose

The purpose of this paper is to study brand embedded licensing (technology licensing and brand licensing combined) and its theoretical difference from standard licensing (technology licensing only). The following research questions are asked: What makes embedded licensing theoretically different from standard licensing, and what determines a licensor's decision to select brand embedded licensing over standard licensing?

Design/methodology/approach

This paper compares brand embedded licensing to standard licensing and argues that brand embedded licensing is a quasi‐hierarchical organizational structure, while standard licensing is a market‐based structure. Brand embeddedness in licensing serves as a credible commitment from the licensor and induces the licensee to invest sufficiently in complementary assets. Drawing on the transaction cost perspective, the determinants of embedded licensing are examined.

Findings

Embedded licensing is determined by both the licensee's characteristics and the licensor's brand characteristics. The licensor is more likely to utilize embedded licensing or the licensee is more willing to demand embedded licensing when: the licensee's specific complementary investment is high; the licensee's complementary capacity is high; the market entry is at a late stage; the licensor uses separate branding; the extent of product differentiation is high; and the stage of brand globalization is advanced. A strong intellectual property rights regime and a fast pace of technology change enhance the effects of these six determining factors on the licensor's selection of embedded licensing.

Originality/value

This paper challenges the classical view that licensing is a market‐based relationship by revealing that embedded licensing is a quasi‐hierarchical organizational structure.

Details

International Marketing Review, vol. 29 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 October 2006

Godwin Onyeaso and William Johnson

The aim of this paper is to advocate and implement cointegration methods for the estimation of interconnectedness of service quality and customer loyalty as intangible…

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Abstract

Purpose

The aim of this paper is to advocate and implement cointegration methods for the estimation of interconnectedness of service quality and customer loyalty as intangible strategic assets within management decision.

Design/methodology/approach

Using longitudinal time series quarterly data on loyalty and service quality, the paper uses cointegration methods to empirically estimate the weight of interconnectedness of customer loyalty and service quality as intangible strategic assets.

Findings

The research evidence suggests that customer loyalty and service quality are interconnected intangible strategic assets that managers can develop, accumulate, estimate and deploy for superior competitive advantage.

Originality/value

To the extent that the global economies are increasingly service‐driven, managerial capability to estimate intangible strategic assets as drivers of superior competitive advantage will remain strategically important. Assumedly, this paper is the first to illustrate how cointegration methods can be used by managers to estimate interconnectedness of intangible strategic assets. In this sense, to the extent that this method is new to managers, it represents another toolkit of intangible strategic asset management for managers.

Details

Management Decision, vol. 44 no. 9
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 21 December 2010

Giovanni Valentini and Alexandra Dawson

This chapter deals with the impact of mergers and acquisitions (M&A) on technological performance. We argue that, when it provides additional technological resources, M&A…

Abstract

This chapter deals with the impact of mergers and acquisitions (M&A) on technological performance. We argue that, when it provides additional technological resources, M&A promote the creation of more value in the innovation process. Instead, when it allows the redeployment of complementary assets, M&A enable more value to be captured from the innovations, and hence foster firms’ incentives in the innovation process. Hypotheses are tested on a sample of deals that were completed in the U.S. “medical devices and photographic equipment” sector in the period 1988–1996.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-0-85724-465-9

1 – 10 of over 15000