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Based on definition and characteristic analysis, this paper seeks to propose a formation mechanism of knowledge rigidity, which is constituted by the effects of three precipitating factors: time‐effectiveness of knowledge, reinforcing effectiveness, and sunk cost effect in knowledge selection mechanism.

By presenting knowledge time‐effectiveness model, reinforcing effectiveness model, and knowledge selection mechanism, the paper theoretically analyzes firms' rigid behavior of knowledge application. Theories of increasing returns and sunk cost are introduced to explain the formation process of knowledge rigidity in firms. Two cases are presented to analyze the knowledge rigidity in industrial firms basing on the proposed models and mechanism.

First, the lifecycle of knowledge rigidity is dynamically defined by knowledge time‐effectiveness. Second, the degree of rigidity and firm's dependence on specific knowledge are enhanced by reinforcing effectiveness during the process of application. At the end of the life cycle, the sunk cost mainly hinders a firm's decision making to replace ineffective knowledge.

Quantitative research is needed to further explore the formation mechanism of knowledge rigidity and to present operational approaches for practitioners. The proposed models and mechanism are useful for understanding the knowledge rigidity and analyzing its formation mechanism in firms.

This paper provides theoretical support to realize knowledge rigidity in KM practice. Three indicators were proposed to evaluate the rigidity and action suggestions were given to help control knowledge rigidity in firms.

Causal analysis models and a formation mechanism are proposed to show how knowledge rigidity forms.

This paper examines the issue of core competency from the perspective of economic regionalization. It utilizes the concept of strategic geography and the studies focusing on regional integration in order to interlink with the concept of corporate regiocentric orientation. It is within this framework that the concept of core competency is discussed. Of particular concern is the question as to how the regional element creates opportunities and imposes challenges on the ability to extend, renew and customize core competencies.

A postal survey to manufacturing managers in six different industry sectors was conducted to ascertain their views on core competencies. Questions deemed important by the literature centred on establishing the level of understanding the manufacturing managers had on core competence and ascertaining if they operated in an environment where core competence could be built and enhanced. Their views were contrasted with those expressed in the current literature and it was concluded that manufacturing managers need to increase their knowledge and understanding of core competencies. To be more competitive they need to operate more in an outward/strategy driven way and develop a strategic architecture to enable their organisation to develop the necessary core competencies. Of the six manufacturing industries surveyed the machinery producers emerged as the strongest advocators for core competence development with the food industry having the least orientation towards their development. To assist in core competence management an Enabling core competence lens model was presented together with a framework for core competence maintenance.

This study explores the effects of different types of technology lock-in on enterprise innovation performance. On this basis, the authors aim to provide technological innovation suggestions for the long-term development of Chinese enterprises.

A total of 211 high-tech enterprises in China were taken as the research sample. Data were collected through questionnaire surveys and secondhand data. Linear and nonlinear regression models were used to test the hypotheses.

Different types of technology lock-in had different effects on enterprise innovation performance. Initiative lock-in and passive lock-in showed an inverted U-shaped relationship with innovation performance. Economies of scale were positively correlated with innovation performance, while self-lock-in was negatively correlated with it.

This research can help enterprises reconceptualize technology lock-in. It can also help enterprises in different stages of development carry out targeted technological innovation and management strategies.

This research enriches our understanding of technology lock-in. By breaking with previous conceptualizations of a simple linear relationship between technology lock-in and innovation performance, this study proposes and confirms different technology lock-in has different relationships with enterprise innovation performance. This study is important for enterprises to reassess their technology lock-in state and carry out targeted technological innovation strategies. This research enriches the theory of path dependence and its combination with other theories. And this study also reveals the current research on technology lock-in is insufficient.

The purpose of this paper is to examine the use of top executive audits (TEAs) as part of hoshin kanri (policy management) at Nissan South Africa (NSA). It relates these to the emerging importance of core competencies in the resource‐based view of strategy to discuss “nested” sets of dynamic capabilities and superior performance.

The case study of NSA is considered in terms of how the firm defines its core areas, evaluates its business methodologies and management philosophies, and conducts its diagnosis of management. This was through real time internal company observation during an intensive phase of organizational change and documentation supplied by a senior manager.

The style of TEAs at Nissan is related to the concepts of “core competency” and “dynamic capability.” The core business areas of NSA are organization‐wide competencies necessary for competitive success, and the management of these is shown to be most effective in the form of a TEA, which in the hoshin kanri form, is arguably a nested set of dynamic capabilities.

The paper concludes that hoshin kanri and TEAs are used at Nissan as a higher order dynamic capability to develo0p both core competences in key areas of the business, and core capabilities in terms of its corporate methodologies and business philosophies. The recovery of Nissan during the East Asian Crisis of the late‐1990s was the result of improved productivity practices, such as the uses of hoshin kanri and TEAs, and not just of economic recovery.

The concept of core competence underlies competence-based competition and competence-based management. When new firms get established, due to resource constraints, managers have to make conscious decisions to develop certain competencies and not others. In order to have all competencies that are required to be successful, firms look for strategic alliances and to leverage their partner firms’ competencies. In this paper, we develop a contingency model for firms that have to go for strategic alliances to explain which core competencies should be developed internally, which core competencies could be from the alliance partner, which type of alliance will be suitable and whether the firm should choose a short-term, long-term or permanent alliance. Using Hamel’s (1994) generic core competencies and the type of market (industrial or individual), we suggest which type of strategic alliance should be chosen for leveraging a partner’s competencies.

The paper seeks to combine the uses of the balanced scorecard and hoshin kanri as integrative dynamic capabilities for the entire strategic management process. It aims to posit a model for the combination of these long‐ and short‐term organisational activities as a framework for a senior level to manage a firm's strategic fit as an integrated organisation‐wide system that links top management goals to daily management.

The resource‐based view of strategy is explored for its relevance to how a combined balanced scorecard and hoshin kanri approach serves as a high‐order dynamic capability. Examples are given from Canon, Toyota and Nissan, of how core capabilities are managed to show how strategy is executed cross‐functionally across a firm's functional hierarchy.

The study finds that strategic management of the organisation should consider the long‐term strategy as well as the short‐term capability. Important to this are core capabilities and core competences, cross‐functional management, and top executive audits, which, when managed properly, explicate a new view of strategic fit, as a form of nested hierarchies of dynamic capabilities.

The paper is the first exposition of how balanced scorecard and hoshin kanri practices may usefully complement each other in strategic management. It is a useful framework for dynamically managing sustained competitive advantage.

The purpose of this paper is to discuss how system dynamics (SD) modeling can help in cases where the management models used by an organization are not adequate for the task at hand.

Two specific cases of management model inadequacy are discussed in this paper – namely management model obsolescence and management model inappropriateness. Each of the two cases is being demonstrated with the use of a specific practical case study. SD simulation models have been constructed based on a more comprehensive view than the ones used at the outset in order to come up with more robust and reliable management models, which were appropriate to the situations at hand. The cases conducted were exploratory in the tradition of action research and the findings are preliminary.

The inadequacy of prior management models was demonstrated by the superior results obtained – as derived from the SD models – if more appropriate management models, leading to new value potentials, were used.

The use of complete systems models prevented the organizational obstacles hindering the assessment of management models used for their adequacy. The paper is addressed primarily to the academic research community; however, the findings are of interest to practitioners as well.

The paper contributes to the research on management models, and the use of SD in organizations more generally.

The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries.

This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources.

The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitations and advantages of this transposition are also detailed.

A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries.

Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function.

Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.

The purpose of this paper is to explore the evolution of relationship marketing (RM) in a new technology-based firm (NTBF) and to illustrate how social embeddednesss benefits can be achieved by engaging in RM in a rural resource-constrained bilingual context.

A single in-depth case study of a NTBF operating in a rural bilingual context was explored over a five-year period. As part of the case study, participant observation was carried out and interviews with the novice entrepreneur, the firm’s employees and its customers were conducted.

Developing mutually beneficial relationships with customers and key partners can enable a novice entrepreneur with no prior business ownership and limited marketing experience to accumulate and mobilise resources in order to achieve credibility and business growth. By analysing information from the NTBF’s entrepreneur, customers and other actors, the authors build theory and present propositions relating to the RM process.

This case illustrates that RM can enhance the legitimacy of an inexperienced entrepreneur, and can enable a firm to address the liabilities of newness in a rural resource-constrained context. Entrepreneurs need to focus on relevant and specialised partnership and alliance relationships that can provide strategic resources for firm development. The bilingual influence has also been shown to aid the development of new relationships and thus ensuring social embeddedness.

The theoretical contribution of this study is to integrate insights from both RM and social embeddedness theories, and illustrate the extent to which a NTBF demonstrates social embeddedness benefits relating to customer retention and accumulation of strategic resources due to RM.