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The purpose of this paper is to examine pre-entry resources and capabilities (R&Cs) of de alio and de novo entrants in an emerging industry. Then, the authors investigate how entrants modify their firm boundaries, after entering a new industry, to acquire the R&Cs deemed critical to be competitive and survive in the industry.

The analysis uses the global biofuel industry as a case study. The authors use multiple sets of data, including primary data collected from semi-structured interviews with industry stakeholders and experts across major biofuel-producing countries as well as quantitative data from industry reports.

Firms typically deploy two successive strategies in order to survive and grow. First, they extend vertical boundaries to capitalize on their own pre-entry R&Cs. Then they move quickly to acquire new R&Cs, which are classified as critical in the value chain of the industry. A new taxonomy of pre-entry R&Cs is proposed to distinguish critical and non-critical forms of R&Cs, and to reflect the ease of acquisition of any requisite R&Cs, which are context specific. These strategic moves lead to the bi-directional vertical integration observed in the biofuel industry.

Managers need to be able to assess the opportunities for entry and subsequent strategies to be competitive by assessing their R&Cs in terms of criticality and ease of acquisition in their entry decision making.

A new taxonomy of R&Cs of the firm is proposed which has theoretical significance and practical implications for new entrants.

In this chapter, the author outlines the link between organization design and competitive strategy, focusing on rivalry. A firm’s organization design choices can affect its competitive advantage as well as the strategic decisions of its rivals. Therefore, organization design can influence the nature and intensity of competitive interactions between firms. To illustrate this effect, the author focuses on the literature on divisionalization and offers a set of propositions as examples. Taken together, the author makes three main observations: (1) a firm’s competitive position and objectives are reflected in its organizational choices; (2) heterogeneity in competitive position and objectives lead to heterogeneity in organization design choices across firms; and (3) organization design and competitive strategy are interdependent processes. The author concludes by discussing the implications for strategy and management research and pointing out some opportunities for future research.

We present empirical evidence on the productive efficiency of electric utilities in the United States from 1990 to 2004. This period is marked by major attempts to introduce deregulation with an expectation that it will lead to improved operating efficiency and ultimately to lower consumer prices. However, relying on improved techniques of estimating productive efficiency, we find that firms in jurisdictions that adopted deregulation have in fact lower productive efficiency, and have also experienced decreases in efficiency over time. In particular, the vertical separation of generation, a hallmark of an effort to deregulate the industry, is associated with an adverse impact on productive efficiency.

This study explores how firms develop innovation ecosystems through forming alliances with suppliers and the effects on innovation, economics and consumer welfare.

This study develops two game theory models to compare supply chain structures with and without ecosystem alignment. (1) A single supplier provides components to two competing manufacturers (one innovative and one non-innovative). (2) An innovative manufacturer (focal firm) aligns with a supplier that also supplies components to a competing manufacturer.

An ecosystem construction strategy that alliances use to reconfigure coopetitive relationships and ecosystem alignment is identified. A manufacturer aligning with a supplier will strengthen the monopoly of the alignment, which is beneficial to both Allies but always harmful to the competitor. Interestingly, such an ecosystem construction strategy may be beneficial to future innovation, the industry and consumers.

The findings raise several topics that warrant further exploration. For example, scenarios with multiple suppliers were not considered. Furthermore, the implementation of regulatory measures to mitigate the harmful effects of alignment on innovation should be investigated.

This paper provides a guide for enterprises seeking alignment and to the corresponding measures required to stimulate innovation within ecosystems. What’s more, the aligned firm should not always attempt to win the race but should instead take measures to encourage the competitor to share demand information.

Firstly, most research on supply chain management has focused on its economic impacts. There is a lack of research on the influence of ecosystem alignment on the innovation incentives of firms. Furthermore, the literature still lacks evidence of how ecosystem construction strategies can increase consumer welfare. In the present study, the authors model a complex market structure that includes a competitor, which is becoming increasingly common in high-tech markets. Thirdly, this paper is one of the few that examines the impacts of market-structure changes on innovation incentives. Most importantly, this study extends the current literature by studying coopetition in the ecosystem context.

The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the theoretical perspectives at hand to investigate the co‐location phenomenon.

The research encompasses 28 semi‐structured interviews with key operations executives from vehicle manufacturers, component suppliers and logistics service providers at nine co‐located supplier clusters, the findings of which are triangulated with secondary sources.

The investigation yields two main findings: first, a typology is proposed based on two key dimensions “spatial integration and infrastructure” and “local value‐added”. From a theoretical perspective, the paper further concludes that transaction cost economics is less suited for studying dedicated co‐location, and suggests that future investigations should focus on consolidating the contributions on the spatial dimension of sourcing configurations into a novel theoretical framework.

The study is based on an exploratory research design, investigating a selected number of co‐located supplier clusters only. While the research does not claim to provide a comprehensive survey of co‐located supplier clusters, it proposes a general categorisation that aims to provide a structure currently lacking further research into this phenomenon.

A structured overview of the phenomenon of co‐located supplier clusters is provided, extending the existing morphological debate. Furthermore, the discussion of their theoretical foundations provides novel insights into this phenomenon as well as into the operational implications of value chain modifications in general, with the intention of guiding further research in this area.

The purpose of this paper is to review and analyze the modularity literature to identify the established and emerging perspectives.

A systematic literature search and review was conducted through the use of bibliometrics and network analysis. The analysis identified structure within the literature, which revealed how the research area evolved between 1990 and 2015. Based on this search, the paper establishes the basis for analyzing the structure of modularity literature.

Factors were identified within the literature, demonstrating how it has evolved from a primary focus on the modularity of products to a broader view of the applicability of modularity. Within the last decade, numerous research areas have emerged within the broader area of modularity. Through core-periphery analysis, eight emerging sub-research areas are identified, of which one is the study of modularity in the context of services.

Although bibliographic methods are limited as they are based on common citations within the field, they enable systematic analysis and the identification of structure within an emergent field of research. Such analysis has implications by for a growing and inter-disciplinary field like modularity by providing overview and suggesting future directions.

This paper contributes by conducting a systematic review based on the citation structure within modularity and identifies the established and emerging areas of research on modularity.

Wilhelm Roepke wrote his book Civitas Humana in the early 1940s in order to elaborate economic and social policy guidelines for postwar reconstruction in Europe. Rejecting both central economic planning (collectivism) and laissez‐faire, he looks for a third alternative. He finds it in a socially‐oriented market economy based on decentralisation, designed to provide citizens with roots in their communities and families. Roepke calls for a genuine competitive order with the government setting the general framework and also interfering in the market process itself to prevent monopolies and facilitate economic adjustments. He advocates a policy of encouraging the private ownership of homes and small plots. With such an “anchor of property”, people would be able to withstand the inevitable hardships resulting from economic change.

During the COVID-19 crisis, diversified attitudes and behaviors of structural equation modeling (SME) retailers were observed in using social media marketing that could have helped mitigate the adverse effects of this crisis on businesses. This paper aims to present a thorough investigation of these perceptions and limited acceptance of social media marketing among SME retailers in a developing country during a crisis.

The investigation was designed using a mixed-method design. A qualitative investigation, as the first part, explored SME retailers’ perceptions of the use of social media marketing when they were faced with mandatory lockdown that stifled their business activity. The insights from qualitative study and literature helped devise the second part of the study, a quantitative study using the technology acceptance model (TAM). Analysis of responses from a sample of SME retailers (n = 149) was done using SEM in this study.

In the qualitative study, SME retailers were found to have a varying outlook toward social media marketing. Some ventured into social media marketing while others were impeded by their limited understanding. The second (quantitative) study showed the general applicability of TAM such that perceived ease of use through perceived usefulness influenced SME retailers’ attitudes toward the usage of social media marketing during the COVID-19 crisis. An important finding in both studies was that business owners’ education level influenced their perceptions of social media marketing.

The investigation, albeit a comprehensive one, was conducted in a particular market and for SME retailers. This opens avenues for conducting similar studies in other segments of entrepreneurs to generate insights based on comparative analysis across segments and scenarios.

Limited or no marketing in the physical marketplace amid lockdown meant almost an existential crisis for entrepreneurs, especially SME retailers, in developing countries during the COVID-19 crisis. While technology acceptance by SME retailers has been discussed in the literature, there are limited discourses on technology acceptance among entrepreneurs and SME retailers during a crisis. These findings from the COVID-19 crisis explicate the possibilities and limitations of technology usage as a means to mitigate challenges faced by entrepreneurs during a crisis.

We examine the evolution of vertical specialization in three industries: chemicals, computers, and semiconductors. Vertical specialization is the restructuring of industry-wide value chains, such that different stages are controlled by different firms, rather than being vertically integrated within the boundaries of individual firms. In some cases, vertical specialization may span international boundaries and is associated with complex international production networks. After decades of vertical specialization, firms in the chemical industry are re-integrating stages of the value chain. By contrast, the semiconductor and computer industries have experienced significant vertical specialization during the past ten years. We examine how and why these contrasting trends in vertical specialization have co-evolved with industry maturation and decline, and underscore the importance and role of both industry factors and business strategies necessary for industries to become more specialized. We also consider the effects of vertical specialization on the sources of innovation and the geographic redistribution of production and other activities. We conclude that the evolution of vertical specialization in these three industries has both reflected and influenced the strategies of leading firms, while also displays industry-specific characteristics that are rooted in different technological and market characteristics.

Markets-as-networks (MAN) theorists contend, at least tacitly, the significance of business relationships to the firm – that is, business relationships contribute somewhat to corporate survival or growth. One does not deny the existence of significant business relationships but sustain, in contrast to the consensus within the MAN theory, that relationship significance should not be a self-evident assumption. For significance cannot be a taken-for-granted property of each and every one of the firm's business relationships. The authors adopt explicitly a critical realist meta-theoretical position in this conceptual paper and claim that relationship significance is an event of the business world, whose causes remain yet largely unidentified. Where the powers and liabilities of business relationships (i.e., relationship functions and dysfunctions) are put to work, inevitably under certain contingencies (namely the surrounding networks and markets), relationship effects ensue for the firm (often benefits in excess of sacrifices, i.e., relationship value) and as a consequence relationship significance is likely to be brought about. In addition, relationship significance can result from the dual impact that business relationships may have on the structure and powers and liabilities of the firm, that is, on corporate nature and scope, respectively.