Showing papers in "California Management Review in 2013"
TL;DR: This paper found that people participate in a community because it offers them the chance to find fulfillment, to express their creativity, and to socialize, and that managers have to see participants as integral to the brand.
Abstract: Co-creation is a rapidly emerging area of research. However, there is a lack of understanding as to how organizations use co-creation to build relationships and generate value. How does participation emerge and what outcomes does it deliver? To generate insight into the co-creation process, we created an online brand community. Our findings show that people participate in a community because it offers them the chance to find fulfillment, to express their creativity, and to socialize. The findings have significant implications for marketing, branding, and research professionals because the research shows that managers have to see participants as integral to the brand.
219 citations
TL;DR: In this article, the authors report the results of an in-depth case study, which examines how manufacturers can steer the transition towards services, and show that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: service adoption, reflecting the proportion of customers who purchase the manufacturer's services; and service coverage, signaling the range of service elements or the comprehensiveness of the service contract that customers opt for.
Abstract: Increasingly, manufacturing firms are turning to services as a new way of creating and capturing value. Despite its potential benefits, many new product-service providers struggle to deploy service activities effectively, not least because they fail to reflect the presence of service activities in their performance management systems. This article reports the results of an in-depth case study, which examines how manufacturers can steer the transition towards services. It shows that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: “service adoption,” reflecting the proportion of customers who purchase the manufacturer's services; and “service coverage,” signaling the range of service elements or the comprehensiveness of the service contract that customers opt for. These two indicators, reflecting service market performance, should be supplemented with a “complementarity index” designed to disclose whether the relationship between products and services is reinforcing or substitutive. When combined, these indicators allow manufacturing firms to deploy a service-based business model in an integrated and sustainable manner.
149 citations
TL;DR: A road map is developed that will enable firms to choose from one of four types of generic business models as their primary focus and then go through a systematic process to consider multiple design configurations for their business model and use decision protocols to choose the design that has a high probability of success.
Abstract: Innovation in business model design is attracting increasing attention from companies. This article develops a road map that will enable firms to choose from one of four types of generic business models as their primary focus and then go through a systematic process to consider multiple design configurations for their business model and use decision protocols to choose the design that has a high probability of success.
115 citations
TL;DR: In this paper, the authors illustrate the central role of the IP-model that an orchestrator develops for the innovation ecosystem partners and demonstrate that the governance of IP is instrumental for the success of innovation ecosystems.
Abstract: Companies increasingly organize innovation activities within innovation ecosystems. This study illustrates the central role of the IP-model that an orchestrator develops for the innovation ecosystem partners. The governance of IP is instrumental for the success of innovation ecosystems as it determines the value appropriation potential for the ecosystem partners and positively influences the success of innovation ecosystems. The insights are based on a case study of IMEC, a public research institute in nano-electronics. IMEC has an IP-based orchestration model for innovation ecosystems through multi-party research collaborations between public and private firms.
107 citations
TL;DR: In many organizations, the R&D, strategy, and legal functions are poorly integrated, and as a consequence, firms miss opportunities to create and exploit the value of intellectual property as mentioned in this paper.
Abstract: In many organizations, the R&D, strategy, and legal functions are poorly integrated. As a consequence, firms miss opportunities to create and exploit the value of intellectual property. Functional silos are one reason for the lack of integration. More important, however, is the lack of a common framework and even language that would allow engineers, lawyers, and business executives to manage IP assets better. This article provides such a framework. There is no one best way to manage IP and many managers overestimate the attractiveness of using IP to exert market power. Rather, the value of the various means to protect and benefit from IP depends on firm strategy, the competitive landscape, and the rapidly changing contours of intellectual property law.
91 citations
TL;DR: The systematic integrated management of intellectual property (IP) is a recent phenomenon as mentioned in this paper, despite the fact that intellectual property has been around for several centuries, and matters are more complicated, and integrated IP management is required.
Abstract: The systematic integrated management of intellectual property (IP) is a recent phenomenon. This is despite the fact that intellectual property has been around for several centuries. Today, matters are more complicated, and integrated IP management is required. By integrated IP management we mean not only that the various forms of intellectual property (patents, trade secrets, trademarks, copyright) are managed together, but that intellectual property management is in turn integrated with overall business model design and corporate strategy. Integrated management is more than simply establishing a licensing model, or manufacturing a product that incorporates new invention.
67 citations
TL;DR: In this article, the concept of "IP modularity" is introduced, which seeks to protect and capture value from intellectual property by modifying the modularity of a system's technical components.
Abstract: Firms seeking to take advantage of distributed innovation and outsourcing can bridge the tension between value creation and value capture by modifying the modular structure of their technical systems. Specifically, this article introduces the concept of "IP modularity," which seeks to protect and capture value from intellectual property. The article defines what it means for a system to be "IP-modular," illustrates the application of this concept in a number of practical situations, and presents a comprehensive framework that can be used to design and evaluate value capture strategies for modular systems. [ABSTRACT FROM AUTHOR]
62 citations
TL;DR: In this article, the editors discuss various reports within the issue on topics including Intellectual Property (IP) management, how to increase firms' return on IP investment, and combining patents and strategic disclosure activities to strengthen firms' market position.
Abstract: An introduction is presented in which the editors discuss various reports within the issue on topics including Intellectual Property (IP) management, how to increase firms' return on IP investment, and combining patents and strategic disclosure activities to strengthen firms' market position.
55 citations
TL;DR: In this article, the authors introduce a framework that helps to assimilate intellectual property management activities with the practices of marketing and strategy, and explain the management of IP rights within marketing constructs such as the unique selling proposition.
Abstract: This article introduces a framework that helps to assimilate intellectual property management activities with the practices of marketing and strategy. With the framework, the management of IP rights is explained within marketing constructs such as the unique selling proposition. The article presents case studies that explore the applicability of the framework in a diversity of industry contexts and firm sizes.
49 citations
TL;DR: In this paper, a novel instrument is developed to measure organizations' use of transaction purchasing, electronic purchasing, interactive purchasing, and network purchasing, four mixes of practices are identified and labeled "transactional," "interpersonal dyadic," "Interpersonal network," and "integrative relational" configurations.
Abstract: Purchasing and supply management professionals recognize the value of aggressive transactional sourcing, as well as of having cooperative relationships with suppliers. But what mix of transactional and relational purchasing are organizations using, and which should they use? A novel instrument is developed to measure organizations' use of transaction purchasing, electronic purchasing, interactive purchasing, and network purchasing. Four mixes of practices are identified and labeled "transactional," "interpersonal dyadic," "interpersonal network," and "integrative relational" configurations. Organizations using an integrative relational configuration generally outperform others. Irrespective of configuration, organizations use more interactive and network purchasing with suppliers of direct inputs but more transaction purchasing with suppliers of indirect inputs.
39 citations
TL;DR: In this article, the authors show how traditional approaches to improving collaboration often invisibly slow decision-making and hurt performance, and describe how companies can identify and address points of collaboration overload and use structural and behavioral interventions to streamline information-sharing and decision making interactions.
Abstract: As a result of the spread of social media and collaboration technologies in the workplace, the adoption of matrix-based structures, and the proliferation of initiatives to create a “one firm” culture, many organizations are experiencing collaboration overload. Too often, excessive collaboration harms organizational performance, overworking employees for only marginal gains. High-performing employees are especially vulnerable because they already shoulder a disproportionate collaboration burden. This article shows how traditional approaches to improving collaboration often invisibly slow decision making and hurt performance, and describes how companies can identify and address points of collaboration overload and use structural and behavioral interventions to streamline information-sharing and decision-making interactions.
TL;DR: The authors distinguishes three customer asset management perspectives (i.e., sales, relationship, and network) that may be employed by customer managers at the supplier-customer interface, and describes how firms can nurture the network perspective and the corresponding customer manager role in terms of mindset, context, and competence.
Abstract: In this age of tough, global competition, companies in business-to-business markets need to rethink the way they manage their customer portfolio and interact with their customers. Customer managers with mainly sales- or relationship-oriented roles cannot leverage their business relationships with customers who seek co-creation. For such co-creation relationships, companies need to install network-oriented managers who systematically create value and reduce risk together with the customer. This article distinguishes three customer asset management perspectives (i.e., sales, relationship, and network) that may be employed by customer managers at the supplier-customer interface. Following an explication of the evolving network perspective, it describes how firms can nurture the network perspective and the corresponding customer manager role in terms of mindset, context, and competence.
TL;DR: In this article, a simple framework is presented to guide companies in the decision of whether and when to license out unused internal IP associated with abandoned compounds to address unmet medical needs.
Abstract: Pharmaceutical drug development costs have risen rapidly over the past twenty years. Yet, the number of new molecular entities being approved has not increased. Most of these costs can be traced to work on compounds that are abandoned before getting to market. As pharmaceutical companies scale back their work in light of deteriorating R&D productivity, significant unmet medical needs remain unaddressed. More extensive external licensing of the IP associated with abandoned compounds could spur recovery and/or redeployment of abandoned compounds to address at least some of these unmet medical needs. The example of Cubicin is offered as an illustration of these more open approaches. This article inductively develops a simple framework to guide companies in the decision of whether and when to license out unused internal IP.
TL;DR: In this article, a comparative case study of corporate transactions of Saab Automobile and Volvo Car Corporation is presented, where the IP disassembly problem is defined as the problem of finding a contractual arrangement for allocation of IP rights and licenses that allows for separating and disintegrating a business unit, company, project entity, or IP unit in order to enable a transaction, organizational transfer, or dissolution of it.
Abstract: This article deals with the intellectual property (IP) disassembly problem, which is an increasingly important problem in various contexts. The IP disassembly (IPD) problem is defined as the problem of finding a contractual arrangement for allocation of IP rights and licenses that allows for separating and disintegrating a business unit, company, project entity, or IP unit in order to enable a transaction, organizational transfer, or dissolution of it. Based on a comparative case study of corporate transactions of Saab Automobile and Volvo Car Corporation this article conceptualizes and characterizes the problem and then develops an IPD framework for managing it.
TL;DR: A new emerging theory and research on organizational wrongdoing presented a fundamentally different perspective as discussed by the authors, which views wrongdoing as a normal phenomenon; behavior that is prevalent, not much different than rightdoing, perpetrated by people who are for the most part upstanding (otherwise ethical, socially responsible, and law abiding), and is a function of a plethora of structures, processes, and mechanisms that are integral to the efficient and effective functioning of organizations.
Abstract: Wrongdoing in and by organizations offends public sensibilities, is costly to organizations, and is injurious to the individuals who perpetrate it and are victimized by it. The dominant perspective on organizational wrongdoing considers it to be an abnormal phenomenon; behavior that is rare, clearly aberrant, perpetrated by people who are abhorrent (who possess outsized preference structures or perverse values), and produced by a narrow range of out of whack organizational arrangements (most frequently, misaligned incentives or perverse cultures). However, new emerging theory and research on organizational wrongdoing present a fundamentally different perspective. It views wrongdoing as a normal phenomenon; behavior that is prevalent, not much different than rightdoing, perpetrated by people who are for the most part upstanding (otherwise ethical, socially responsible, and law abiding), and is a function of a plethora of structures, processes, and mechanisms that are integral to the efficient and effective functioning of organizations. This new way of approaching wrongdoing has important implications for managers. [ABSTRACT FROM AUTHOR]
TL;DR: In this paper, the authors identify strategies through which stakeholder groups use their own media to achieve desired outcomes, as support for or extensions of strategies known from the literature on social movements.
Abstract: Media controlled by stakeholder communities and groups, or “stakeholder media,” can exercise powerful influence on the strategic agendas of firms. Stakeholder media can be different and in some ways stronger than the influence of traditional news media. This article identifies strategies through which stakeholder groups use their own media to achieve desired outcomes, as support for or extensions of strategies known from the literature on social movements. These strategies rely on specific characteristics of stakeholder media that differ from mainstream media. These communication tools have altered the dynamics of stakeholder influence: on the one hand, allowing them greater independence from and influential collaboration with mainstream media as well as with other stakeholders; and on the other, augmenting the scope and momentum of their adversarial campaigns. There are important risks and opportunities posed to organizations by stakeholder media.
TL;DR: The drivers of exponential improvements in performance and cost are illuminated and can help to recognize when new technologies might become economically feasible and thus create appropriate policies for promoting improvements.
Abstract: This article illuminates the drivers of exponential improvements in performance and cost and explains why some technologies experience more rapid improvements than others. It shows how exponential improvements in performance and cost are largely driven by two mechanisms: creating materials to better exploit their physical phenomena; and geometric scaling. Improvements in some technologies are directly experienced through these two mechanisms, while improvements in higher-level “systems” are indirectly experienced through improvements in specific “components.” Understanding these drivers can help us better recognize when new technologies might become economically feasible and thus create appropriate policies for promoting improvements.
TL;DR: In this article, the authors examine the experiences with three generations of patent pools in the optical disc industry and propose a novel "pool-of-pools" approach to address these issues.
Abstract: For modern technologies, access to intellectual property rights (IPR) is complex because it is fragmented among many owners. The required licensing agreements invoke considerable transaction costs and royalty stacking. Often, it is in the interest of the technology sponsor to ease access to the required IPR. Patent pools have proven useful to achieve this goal. This article examines the experiences with three generations of patent pools in the optical disc industry. Technology platforms are becoming increasingly complex, which leads to a fragmentation of IPR among many pools and causes new issues. A novel “pool-of-pools” can address these.
TL;DR: In this paper, the UK's Royal Marines, in collaboration with more than a dozen different stakeholder groups, developed a novel adaptation of war gaming to affect strategic change in Afghanistan.
Abstract: Rational, analytical, directed approaches for strategy creation and execution may work for creating value by conventional, hierarchically structured organizations operating in stable environments. However, when the basis of competition shifts from product features to an experience delivered by a network of independently acting participants in a complex and fast-evolving market environment, approaches based on command and control do not work. For order to emerge from such chaos and to gain more control over success, strategy based on reason alone is not enough to inspire action in others. To understand what it takes to effectively make strategy under such circumstances, this article shows how the UK's Royal Marines, in collaboration with more than a dozen different stakeholder groups, developed a novel adaptation of war gaming to affect strategic change in Afghanistan. It also demonstrates the broad applicability of this strategic approach.
TL;DR: In this paper, the authors present a series of cases that introduce various aspects of strategic disclosure and provide a framework for how and when such practices may be merited as part of an integrated IP strategy.
Abstract: Given recent developments in information technology and intellectual property (IP) legislation, technology firms may benefit from an integrated IP strategy that combines patenting with strategic disclosure. This article presents a series of cases that introduce various aspects of strategic disclosure and provide a framework for how and when such practices may be merited as part of an integrated IP strategy. To help CEOs decide on the economics and efficiency of the practice, practical guidelines are provided for when it might be a useful complement to the firm's other IP management practices.
TL;DR: The operational solutions adopted by the semiconductor manufacturer STMicroelectronics to successfully accomplish an IP strategy shift are examined, which shows how the implementation of the new strategic approach required a stricter cross-functional integration between IP and R&D.
Abstract: The implementation of a change in IP strategy represents a challenging task for firms, because organizational resources and capabilities (procedures, routines, and know-how) that are required in the new strategic context may be lacking. This article examines the operational solutions adopted by the semiconductor manufacturer STMicroelectronics to successfully accomplish an IP strategy shift. It shows how the implementation of the new strategic approach required a stricter cross-functional integration between IP and R&D through the arrangement of cross-functional teams, the development of proper IP management procedures, and the diffusion of an IP culture throughout the organization.
TL;DR: In contrast to the implications of the Conscious Capitalism (CC) movement, this paper showed that CC firms neither demonstrate superior stock performance relative to the S&P 500 in recent years, nor do they respond less to the pressures from the equity market.
Abstract: Proponents of the Conscious Capitalism (CC) movement claim that CC firms should demonstrate a lower gross margin, a higher profit margin, a lower SG&A, and a lower marketing expense than their non-CC comparable firms. Using a sample of industry-year-size matched control firms as the CC firms' benchmark, this article shows that empirical evidence largely disagrees with these conjectures. It further shows that in contrast to the implications of the CC movement, CC firms neither demonstrated superior stock performance relative to the S&P 500 in recent years, nor do they respond less to the pressures from the equity market.
TL;DR: In this paper, the authors provide guidelines for negotiating moneyless marketplace exchanges in key domains, including crowdsourcing, promotions, and word of mouth, and identify the factors fueling their growing importance.
Abstract: Although money plays a key role in modern economies, an increasing amount of business is being done without the use of money. This article sheds light on the important roles of cashless deals and identifies the factors fueling their growing importance. It provides guidelines for negotiating moneyless marketplace exchanges in key domains, including crowdsourcing, promotions, and word of mouth.
TL;DR: In this article, the authors identify the circumstances in which leaders are most prone to overconfidence and its concomitant risks, and explore those circumstances under which confidence is most conducive to success.
Abstract: Successful leadership depends on the confidence to rally support, win allies, and deter competitors. However, overconfident leaders have led their companies into disaster. This article identifies the circumstances in which leaders are most prone to overconfidence and its concomitant risks. On the flip side, it explores those circumstances under which confidence is most conducive to success. Using insights from recent research, the article provides recommendations on how managers can avoid the pitfalls of overconfidence while benefiting from the advantages of confidence.
TL;DR: In this paper, the authors recommend that leaders heed models of cooperative behavior found in nature by engaging in "Pelican Gambits," which they define as strategic moves towards cooperation in highly competitive economic environments for the purpose of limiting risk to one's firm, the industry and society.
Abstract: Systemic risks arising from underlying interdependencies can create havoc at an industry level and are often too formidable for any single firm to manage. The contagion effects of these risks, including the recent financial crisis, offshore oil spills, and the Japanese nuclear disaster, have upended industry practices. Sometimes they have even pulled economies apart at the seams. We recommend that leaders heed models of cooperative behavior found in nature by engaging in "Pelican Gambits," which we define as strategic moves towards cooperation in highly competitive economic environments for the purpose of limiting risk to one's firm, the industry and society.
TL;DR: In this article, the authors respond to Chong Wang's article, "Conscious Capitalism Firms: Do They Behave as Their Proponents Say?", which sets out to test certain conjectures regarding the financial performance and the drivers of that performance for so-called "conscious capitalism" firms.
Abstract: This note responds to Chong Wang's article, “Conscious Capitalism Firms: Do They Behave as Their Proponents Say?” (in this issue of California Management Review) that sets out to test certain conjectures regarding the financial performance and the drivers of that performance for so-called “conscious capitalism” firms. It provides an update of our current thinking on the drivers of performance and describes the kind of analysis that is needed to better understand these drivers. It also presents a set of hypotheses that need to be tested by future research.
TL;DR: The Mozilla case study as mentioned in this paper describes VP and CPO Debbie Cohen9s key initiatives in a software entity that was one of the pioneers of the "Open source" movement, highlighting Mozilla9s unique culture of distributed decision making and delegated leadership.
Abstract: The Mozilla case study describes Vice President and Chief of People Debbie Cohen9s key initiatives in a software entity that was one of the pioneers of the “open source” movement. The case study showcases Mozilla9s unique culture of distributed decision making and delegated leadership. Mozilla has a small staff of over 1,100 and millions of volunteers around the world. The case also showcases Cohen9s innovative, yet tailored, talent strategy for Mozilla, and the implementation of a series of initiatives related to compensation, onboarding, and development. The case study concludes in April 2013, when Cohen is able to reflect on her time working at such a unique and some would say “cultish” organization.
TL;DR: McKeever's leadership and motivational strategies can be applied to organizations today and managers can use similar tools to develop highperforming employees in their organizations as discussed by the authors, which can be used to develop and sustain high-level performers.
Abstract: The case explores the remarkable rise of Coach Teri McKeever to the top of a sport traditionally dominated by male coaches. Her success is driven by an unorthodox leadership and motivational style that emphasizes a growth mindset of self-improvement. She is an influential innovator, mentor, and trailblazer who challenged long entrenched methods of training and overcame criticisms and setbacks to change the face of swim training today. This case examines McKeever's leadership philosophy and controversial motivational strategies that she uses to develop and sustain high-level performers. McKeever's leadership and motivational strategies can be applied to organizations today and managers can use similar tools to develop high-performing employees in their organizations. [ABSTRACT FROM AUTHOR]