Showing papers in "International Journal of Technology Management in 2000"

VAIC™ – an accounting tool for IC management

Abstract: The existing accounting system cannot meet the requirements of modern companies any more because not costs but value creation is the core of modern business. If a company aims to achieve a maximum result with its given resources management must know how successfully they create value in the company. Information provided by a basic economic function - measuring the efficiency of value creation - is therefore decisive for successful management of intellectual assets. The VAIC™ method measures and monitors the value creation efficiency in the company using accounting based figures. The better a company's resources (capital employed and intellectual capital) have been utilised, the higher the company's value creation efficiency will be (whereby human capital, as the decisive value creation factor of modern business). This results in an increase of value added on the one hand and determines the market value on the other hand, as our research has shown.

Information sharing in a supply chain

Abstract: Advances in information system technology have had a huge impact on the evolution of supply chain management. As a result of such technological advances, supply chain partners can now work in tight coordination to optimise the chain-wide performance, and the realised return may be shared among the partners. A basic enabler for tight coordination is information sharing, which has been greatly facilitated by the advances in information technology. This paper describes the types of information shared inventory, sales, demand forecast, order status, and production schedule. We discuss how and why this information is shared using industry examples and relating them to academic research. We also discuss three alternative system models of information sharing - the information transfer model, the third party model and the information hub model.

Industry evolution and competence development: the imperatives of technological convergence

Abstract: This article examines the growing impact of technological convergence on the evolution of industry structure and the development of core competences, knowledge, and skill sets within firms. Technological convergence occurs when advances or innovations commercialised in one industry begin significantly to influence or change the nature of product development, competition, and value-creating processes in other industries. By promoting the creation of higher value-added substitute or complementary products that redefine an industry's structure, convergence may lead to competitive conditions in which one industry's products or services are increasingly linked, absorbed, or blended with another industry's expanded range of offerings. In turn, convergence leads to the steady erosion of once-distinct boundaries among industries as they begin to share more similar competitive, market-based, and technological characteristics. As industries become closer, firms need to learn and invest in new types of core competences that allow them to deploy value-creating skills and core product platforms, which can be easily reconfigured and adapted to a wider base of customers across different markets. Sustained learning of new core competences requires the cultivation of multiple dynamic routines that foster the creation of new sources of knowledge, insights, and capabilities. Internal R&D and strategic alliances with partners from a range of different industries can promote corporate strategies that enable firms to enact upon converging environments.

Modular architectures, knowledge assets and organisational learning: new management processes for product creation

Abstract: This paper considers the impacts of adopting modular product and process architectures on the organisation of product creation processes and on the kinds of organisational learning, which can take place within modular product creation processes. The discussion elaborates the concepts of modular product and process architectures and explains how use of modular product and process architectures influences an organisation's knowledge, in effect creating modular knowledge architectures in an organisation. Effective management of modular knowledge architectures enables greater clarity in identifying an organisation's current knowledge assets and greater precision in targeting strategically useful organisational learning. Adopting modular architectures leads to changes not only in the nature of the technological work performed in an organisation, but also in the kinds of knowledge assets the organisation creates, the way learning occurs at both individual and organisational levels, and the human resource characteristics of the organisation. These changes in turn call for complementary changes in performance assessment metrics, incentive structure designs, the nature of the employment relationship, and the management practices of an organisation, especially with regard to the management of creative processes.

Teaching knowledge management and intellectual capital lessons: an empirical examination of the tango simulation

Abstract: An explosion of interest in the area of intellectual capital (IC) and knowledge management (KM) has recently arisen as evidenced by the increase in managerial publications, academic studies, dedicated conferences, corporate initiatives, internet sites and learning tools. Coinciding with this developing interest, the Tango simulation provides an environment where participants learn to manage and value the intangible assets of their business in a controlled environment. The Knowledge Management Receptivity Survey (KMRS) has been developed as a means for determining the level of understanding and commitment to knowledge management and intellectual capital initiatives. Thirty-three senior executives completed the KRMS before and after they participated in the Tango simulation in May and June of 1998. The results of this research yield two important discoveries. First, the KMRS is a validated survey instrument for both academic and practitioner usage in examining IC-related phenomena. Second, the Tango simulation provides participants with an effective means in heightening their receptivity to IC initiatives.

Knowledge management practices for innovation: an audit tool for improvement

Abstract: This document presents a practical tool for analysing and improving the various forms of Knowledge Management activity within the Innovation processes of companies. It is addressed principally to those companies with well-developed and sophisticated units for innovation, such as RD the mapping of relationships across technological and organisational boundaries; RD the management of Intellectual Property; and the management of information and information technology. These are described and illustrated. The main operational element of this Audit Tool is in the form of a questionnaire, which aims to act as both a discovery mechanism and as a prompt to further reflection on the specific Knowledge Management activities within innovation processes. The questionnaire consists of some 80 questions, each in the form of a description of a specific Knowledge Management Practice, these having been derived from the case studies and additional desk research. This is complemented by a format for specifying action plans for improving KMPs for Innovation.

Effective Patent Life in Pharmaceuticals

Abstract: Effective patent life is lost in pharmaceuticals because of the lengthy time periods required for clinical trials and regulatory approval. A 1984 US law restores some of this lost patent time, while also facilitating generic competition when patents expire. This paper examines this law and the effects of other policy developments on market exclusivity times in pharmaceuticals. It also performs simulation analyses on how proposed legislative reforms would impact on future new drug introductions.

Service production and intellectual property

Abstract: Service firms and sectors are emerging as important players in the innovation process. The intangible nature of many service innovations creates challenges for Intellectual Property Right (IPR) systems. IPR systems both shape and are shaped by structural changes in the economy, and the technologies being employed. It is well known that many service firms do not patent, and that the patent system has largely been developed to deal with more tangible innovations. This study considers the issues that arise in this context. It presents empirical material concerning the management of knowledge, innovation, and Intellectual Property in Knowledge Intensive Business Services (KIBS). Different branches of the service sector are founded on very different knowledge bases; and there are also persistent differences in the activities performed by service firms of different sizes. Accordingly, though they have much in common where it comes to the management of expertise and the use of Information Technology (IT), they may follow dissimilar innovation trajectories, and adopt highly variegated strategies.

Towards improved information disclosure on intellectual capital

Abstract: Information disclosure to capital markets is based on and evolves around accounting based financial information. As the drivers of future earnings are becoming increasingly reliant on intangible assets that are not captured by the accounting framework, the value relevance of financial information has been decreasing for the past decades. This paper reviews recent approaches aiming to extend or complement the accounting framework to incorporate intellectual capital into business reporting, both from a financial and a non-financial perspective. An alternative approach is presented reporting on the contribution of intangible as well as tangible resources to value creation. This approach is based on the needs of the users of business reporting for assessing the firm's future earnings potential rather than attempting to amend the transactions-based accounting system, apparently unsuitable for reporting on intellectual capital. Finally, the paper offers recommendations for further research on intellectual capital disclosure to capital markets and for companies aspiring to improve their communication with capital markets regarding their intellectual capital.

Flexibility: an emerging meta-competence for managing high technology

Abstract: This paper presents a conceptual study on the role of flexibility in managing high technology. The study indicates the existence of a common understanding on the need for competitive performance of high technology enterprises in four dimensions: reduced cycle times, reduced cost, higher quality, and higher levels of customisation. Towards this, a large number of IT based strategies like Computer Integrated Manufacturing (CIM), Concurrent Engineering (CE), Cellular Manufacturing (CM), Flexible Manufacturing Systems (FMS), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Business Process Reengineering (BPR), etc. are being put to use with varied results. After time, cost and quality, customisation (or high variety) appears to be the next imperative of high technology competition. A time-based competition aiming at mass customisation capabilities is emerging. The characterisation of high technology management towards this environment yields a novel topology, which we refer to as Innovate-To-Order (as an extension to the existing Engineer-To-Order topology). Flexibility, which is the most important enabling factor for customisation, is emerging as the key source of competitive advantage. This paper attempts to advance the understanding of flexibility from the point of view of high technology management, by extending the paradigm of manufacturing flexibility. The potential for design flexibility and its judicious integration with the manufacturing flexibility is discussed. A conceptual framework involving a dynamic control of structural, process and resource flexibility is presented and its implications for the Indian context are discussed. Based on our ongoing R&D efforts, we indicate the need for a judicious use of Information Technology (IT) to benefit from design flexibility.

Information and communication technologies and the production, distribution and use of knowledge

Abstract: The interaction between the development of information and communication technologies and the evolution of the organisation of the generation of new knowledge is twofold. Information and communication technologies change the process and the organisation of the accumulation of new knowledge. The new conditions for the accumulation of technological knowledge and the elaboration of an appropriate institutional and organisational set-up in turn do affect the pace and direction of the technological convergence upon which the evolution of information and communication technologies rests.

Dynamic strategic planning for technology policy

Abstract: Dynamic Strategic Planning is an effective method for the development of rational policies for the intelligent development of technology or large-scale engineering projects. It is: dynamic, in that it explicitly recognises the risk and uncertainties necessarily associated with any forecast about the future performance and acceptance of any technology, and thus the need to build flexibility into the plan and to adjust the plan according to the events that occur; strategic, in that it seeks long-term benefits rather than myopic, short-term objectives and; planning, in that it develops a process to follow in order to achieve the best possible results for the prevailing circumstances. The paper describes the principles of Dynamic Strategic Planning, indicates specific methods that are effective for carrying them out, and illustrates their use through application to the formulation of policy on low-emission automobiles in the United States.

Electronic communication and knowledge transfer

Abstract: The paper focuses on the process of inter-organisational knowledge transfer and on the potential of Electronic Communication systems (ElCom). First, the different forms of knowledge exchanged by firms are classified. Then, different models are proposed of inter-organisational communication, in order to describe each particular kind of knowledge transfer process. As a result, it is argued that, although today various ElCom applications are available, a universal communication tool is far from being available, so that different applications may be necessary for any specific communication need of the users. In particular, since the most critical challenge is represented by tacit communication, it is discussed that the development of ElCom systems for such kind of communication depends on the availability of a wide range of tools for carrying a large variety of contents. At the same time, any effective solution requires customising in accordance with the specific needs.

Technology marketing: a new core competence of technology-intensive enterprises

Abstract: Even in the area of technology, firms are increasingly contracting in from external sources, or contracting out their own work to third parties. This involves the areas of licensing, R&D cooperation, production and OEM briefs and commerce in technologically demanding components and part-products. The carrying out of such technology business, here christened "Technology Marketing", is dependent upon new processes and concepts, because known marketing methods do not sufficiently take into account the knowledge-defined uniqueness of technologies as the object of commerce. This paper is the result of a cooperative research study carried out by the ETH Centre for Enterprise Science (formerly BWI, Section for Technology and Innovation Management) and the Research Institute for Sales and Commerce of the University of St Gall.

EDI performance in the automotive supply chain

Abstract: This paper presents the results of a questionnaire survey to automobile first-tier suppliers in the US. We address the effects of Electronic Data Interchange (EDI) on the automotive supply chain, specifically addressing first and second-tier suppliers. We also examine the reasons for suppliers not using EDI. Our analyses show: (1) the size of a firm does not affect the degree of EDI integration, (2) firms with high corporate performance have a high level of EDI integration, (3) firms with high corporate performance have a high level of information sharing with suppliers, and finally (4) US automakers are directing first-tier suppliers to use EDI, yet first-tier suppliers have not been able to enforce its use by their suppliers.

Innovative activity in Canadian food processing establishments: the importance of engineering practices

Abstract: This paper examines the factors contributing to innovative activity in the Canadian food-processing sector. Several factors relating to innovation are considered. Firstly, it focuses not only on the importance of research and development activity but also on advanced business practices used by production and engineering departments. Secondly, it examines the extent to which a larger firm size and less competition serve to stimulate competition - the so-called Schumpeterian hypothesis. Thirdly, the effect of the nationality of a firm on innovation is also investigated. Fourthly, industry effects are examined. The paper finds that business practices are significantly related to the probability that a firm is innovative. This is also the case for R&D. Size effects are significant, particularly for process innovations. Elsewhere, their effect is greatly diminished once business practices are included. Foreign ownership is significant only for process-only innovations. Competition matters, more so for product than for process innovations. Establishments in the "other" food products industry tend to lead the industry average when it comes to innovation, whereas fish product plants tend to lag behind the industry average.

Inter-firm knowledge management practices for technology and new product development in discontinuous innovation

Abstract: Discontinuous, or radical, innovation has been regarded as a critical factor in renewing firms' competitive position. The results of the Rensselaer Radical Innovation Project (RRIP) show that the development of new businesses and product lines based on discontinuous innovations requires distinct inter-firm knowledge management practices. Knowledge management studies suggest that inter-firm collaborative networks, such as strategic alliances, enhance corporate innovative capability by facilitating flow of knowledge across companies. Due to the increasing significance of inter-firm collaborative networks, there is a need for further understanding of knowledge management at the inter-firm level. By reviewing the literature on knowledge management practices, this article suggests that knowledge management practices vary from one organisation to another. The variety of corporate knowledge management practices attribute to distinct organisational settings, and technology domains in the context of technology and new product development. The authors propose that the different types of inter-firm collaborative networks are established to fulfil specific knowledge management requirements for divergent technology and new product development in discontinuous innovation.

Corporate management of intellectual property in Japan

Abstract: Intellectual property has rapidly become an area of strategic concern for corporate management and technology management within leading companies, with a concomitant growth of IP (intellectual property) resources The paper describes how large Japanese corporations organise and manage their IP operations, which is quite different from the traditional patent organisation in Western companies It appears as if Japanese industry has developed still another area of management from which Western companies have much to learn The typical IP department in a large Japanese corporation has evolved into a department which is comprehensive regarding IP responsibilities, relatively large, engineer dominated, embedded in a corporate patent culture, and of strategic concern to business, technology and top managers The paper also describes how this new type of IP organisation could be precursory to further extensions and how IP management could be extended into what could be called distributed intellectual capital management

Information technology, innovation and supply chain structure

Abstract: The link between IT, innovation and supply chain structure is central here. This article is divided into three parts. First, a theoretical analysis of the role of IT in innovation processes. Actually, it involves the total innovation of the supply chain, not merely logistic innovation. The introduction of IT first of all leads to process innovation (internal and external), followed by product innovation in the sense of more diverse, cheaper and customer specific products. Process innovation can best be described in terms of standardization, differentiation, specialization and (vertical and horizontal) integration. Furthermore, a presentation of the empirical results from the following sectors in the Netherlands: hairdressing, dentistry, building, banking, textile industry and car production. The supply chain classification underlying the analysis has been deduced from the composition and the functions of the actors in the supply chain. Supply chain integration and reversal are the central concepts. Finally, we will discuss the success conditions for innovation and the possible incentives, focussing especially on the Small and Medium-sized Enterprises (SME). The conditions for success in IT, innovation and supply chain structure concern the extent of vertical and horizontal integration, the comparative importance of information, the extent of (international) pressure and innovative regulations, and, of great importance, the extent of strategic and organizational insight on the part of management and personnel.

A new product development learning model: antecedents and consequences of declarative and procedural knowledge

Abstract: Organisational learning is important, but we know surprisingly little about how to measure or manage it. This paper operationalises organisational learning in a new product development context and tests its effect on New Product Success (NPS) by studying 137 new product development projects. We found that two forms of organisational learning (Declarative and Procedural Knowledge) impact NPS. We also measured the antecedents of Declarative and Procedural Knowledge and explored their impact on Organisational Knowledge and New Product Success.

Technology management: a knowledge ecology perspective

Abstract: Technology management is managing technological knowledge to sustain competitive edge in an uncertain and competitive business context. This paper developed a framework for analysing technology management issues by combining the knowledge management concepts and ecosystem theory concepts. Technology strategy can be conceptualised as a process of aligning knowledge search, knowledge envisioning, knowledge creation and knowledge evolution with a view to meeting changing customer needs, competitive threats and the future technology trajectory.

International transactions in intellectual property and developing countries

Abstract: This paper discusses the international dimension of intellectual property protection with an emphasis on the implications for developing countries. It explores the effects of IPR protection on trade, foreign direct investment, and technology licensing, and reviews empirical evidence in this context. Finally, it discusses how international transactions in intellectual property affect the international transfer of knowledge.

Foreign patenting behaviour of small and large firms

Abstract: This research investigated differences in foreign patenting by small and large US businesses. The evidence suggests that a smaller proportion of small business patents are filed outside the US and they are filed in fewer countries, on average, than are large business patents. When only patents that are also filed outside the US are considered, however, there is no difference in the number of countries in which small and large company patents are filed.

Intellectual property rights, foreign direct investment and competition issues in developing countries

Abstract: The relationships between intellectual property rights and foreign direct investment are subtle and complex, though potentially important as developing countries strengthen their systems for protecting such rights. There is emerging empirical evidence that both investment and licensing of sophisticated technologies depend positively on the strength of intellectual property rights. This may raise concerns about anti-competitive abuse of such rights in developing economies, pointing to the need for complementary regulation to promote dynamic competition.

Measuring dynamic technical change: a technometric approach

Abstract: The propose of this paper is to extend the microeconomic benchmarking approach known as "technometrics". We offer a novel approach to measuring technical change at the product level, based on intertemporal comparison of product characteristics, using objective performance measures. The goal of the study is to provide a straightforward tool for benchmarking technological sophistication that can be portrayed graphically and shows how technological capabilities have changed between two points in time. This paper extends the static analysis of a previous paper, as it again deals with sensors, and implements the dynamic technometric approach on the updated sensor data.

Achieving innovation or the Holy Grail: managing knowledge or managing commitment?

Abstract: Recent literature asserts that knowledge is the source of innovation and, consequently, that knowledge management is a key to innovation management. However, the literature is not informative about how knowledge actually leads to innovation. Knowledge that is no more than a potential for action cannot explain the acquisition and use of knowledge in innovation. This paper argues that achieving innovation, like the search for the Holy Grail, is primarily about generating commitments. This contention is supported by analysis of the role of commitment to innovation from both strategic and internal process viewpoints, and by presenting the elements of a theory of commitment to innovation. The paper supports the view that descriptions of innovation from within the psychological and organisational processes of organisations can be as valid as those that rely on objectified forms of knowledge.

Knowledge Management in hybrid supply channels: a case study

Abstract: In this paper, we present a theoretical framework for information technology supported knowledge management in hybrid supply channels. The framework has been applied to IBM in an exploratory case study. The study supports the framework. The framework characterises the competitive environment of companies and describes the resulting need for hybrid channelling and effective partnering. For hybrid channelling three types of knowledge are important: contextual, operational and functional knowledge. For partners situated upstream in the channel, contextual knowledge is the hardest to acquire. One needs its partners situated downstream in the channel to provide this knowledge. These partners on the other hand need their upstream partners to provide functional and operational knowledge. Information technology is a powerful tool for knowledge management in supply chains by providing four functions: adviser, assistant, librarian and teacher.

The knowledge production function: lessons from biotechnology

Abstract: Firms and scientists are linked by examining the prospectuses of firms making an initial public offering in biotechnology and determining scientists who have an involvement with the firm. The data provide an innovative lens for viewing the spill over process and help shed light on questions such as: where do new industries come from, how important is geography in the spill over process, and how do firms that lack a product succeed in raising money when they go public?

Development of the public sector in the Korean innovation system

Abstract: The private sector takes the initiative in developing national innovation system (NIS). Without the appropriate support from the public sector, it would not work as successfully as anticipated. Moreover, as the environment of NIS becomes more complex and dynamic, in order to support the private sector, the roles of the public sector should be extended and more specialised than ever before; systematic efforts for cooperation with the private sector are imperative. This paper examines the development process of the public sector of Korea's national innovation system over the past three decades by using a conceptual framework from organisation and system theories: the formation process of the public sector, the process of its diversification and specialisation, the establishment of coordination mechanism etc. Some policy implications would be helpful to other developing countries.

ICBS: Intellectual Capital Benchmarking Systems

Abstract: Researchers in the areas of sustainable competitive advantage have come to the conclusion that the only thing that gives an organisation a competitive edge - the only thing that is sustainable - is what it knows, how it uses what it knows, and how fast it can know something new. But if most agree on the key role of knowledge as a source of competitive advantage, very few know how to manage knowledge that produces value or Intellectual Capital in an efficient way. ICBS is trying to fill this gap using benchmarking techniques, and facilitating the process of learning from the best competitors. ICBS, which stands for Intellectual Capital Benchmarking System, is at the same time a new management method and a new management tool that allows companies to benchmark core competencies or intellectual capital against the best world-class competitors of the same business activity. The system is a framework built around the key competitiveness factors and criteria that determine competitiveness in the context of global markets. The main factors considered are: products, architecture, alliances, competitive advantages, innovation and R&D, leadership, strategy and culture. ICBS identifies the specific competitiveness factors and criteria which are relevant in a given business activity. The system, through the competitiveness factors framework, enables the identification, audit and benchmark of the core competencies or key intellectual capital, that are the main sources of sustainable competitive advantages. When using ICBS in an orderly systematic and repetitive way, we obtain competitiveness balance sheets, that complement and perfect financial balance sheets and lead companies to leveraging intellectual capital. The system has been tested and successfully implemented in more than thirty European enterprises.