Showing papers in "International Journal of Technology Management in 2003"
TL;DR: The customers' perspective is taken and it is shown that the locus of initiative for product development involvement is of relevance for identifying different types of involvement, and the degree of involvement needs to be measured.
Abstract: The involvement of customers in new product development is considered as a successful strategy and tactic to improve new product success. However, the customers' view of this involvement is much less frequently studied than the suppliers' side. In the present paper, the customers' perspective is taken. It is first shown that the locus of initiative for product development involvement is of relevance for identifying different types of involvement. It is then argued that the degree of involvement needs to be measured. Furthermore, since customers have different expertise, they should be chosen according to their ability to appreciate the degree of newness of the future product as well as their potential stage-specific contributions. Furthermore, the costs involved on the customers' side will call for a reward, and these costs might be influenced by the involvement of other customers, either those who compete for the same scarce resources or those who benefit from network effects. This could lead to specific conflicts. Based on available research, this paper conceptualises these problems and makes suggestions for further research. This research might lead not only to a better understanding of customers' behaviour but also to better planning of customer involvement from the suppliers' side. In future, suppliers will better understand the problems of customer involvement from this paper.
248 citations
TL;DR: The objective of this paper is to set a research agenda in the field of user interaction with toolkits for mass customisation, and deploy four key research issues in this evolving field.
Abstract: The idea of integrating users into the design and production process is a promising strategy for companies being forced to react to the growing individualisation of demand. Whilst there is a huge amount of managerial literature on mass customisation, empirical findings are scarce. Our literature review shows that specifically the core of a mass customisation system, the toolkit and the users' interaction with it, has hardly been researched. The objective of this paper is to set a research agenda in the field of user interaction with toolkits for mass customisation. From the literature and 15 exploratory expert interviews with leading pioneering companies we deploy four key research issues in this evolving field.
238 citations
TL;DR: An old debate between organisation theorists on the question of whether it is at all possible to combine operational effectiveness and strategic flexibility in one system is summarised to conclude that it is difficult, perhaps even impossible, to achieve continuous innovation.
Abstract: The new name of the industrial game is continuous innovation. But what is continuous innovation? And how can we manage and organise for it? This article addresses these questions by, first of all, defining continuous innovation as the ability to combine operational effectiveness and strategic flexibility - exploitation and exploration - capabilities that have traditionally been regarded as antithetical. Next, an old debate between organisation theorists on the question of whether it is at all possible to combine the two capabilities in one system is summarised to conclude that the majority of scholars argue that it is difficult, perhaps even impossible, to achieve continuous innovation. However, some authors have challenged this stance and have provided some useful thoughts, though little empirical evidence, as to how operational effectiveness and strategic flexibility can be combined to produce continuous innovation. The question of how empirically supported knowledge could be developed is approached firstly by briefly discussing the bodies of theory underlying the current thinking about continuous innovation, namely organisational theories of innovation, learning, and continuous improvement. Then, the papers presented at the 1995, 1998 and 2000 (Euro)CINet conferences will be analysed to show how these fields are gradually converging into what would more appropriately be labelled continuous innovation (instead of improvement). The analysis also shows that the field has a couple of serious weaknesses that need to be addressed if the research community involved really wants to contribute to the art and science of continuous innovation. The paper concludes with a summary of this analysis, presented as an agenda for further research.
186 citations
TL;DR: The results provide strong evidence that customer orientation in innovation projects has a positive influence on NPD success and that the impact increases with the degree of product innovativeness.
Abstract: Market orientation and, specifically, customer orientation, have been intensively investigated with respect to corporate and new product development (NPD) performance at the corporate level of analysis. The objective of this research is to present a conceptual framework in order to clarify how customer orientation contributes to NPD project success - dependent on the degree of product innovativeness. Using data from over 100 product innovation projects in German industrial corporations, we tested our research hypotheses using regression analysis. Our results provide strong evidence that customer orientation in innovation projects has a positive influence on NPD success and that the impact increases with the degree of product innovativeness.
138 citations
TL;DR: This paper explores how practical approaches to technology planning can support broadly based valuation decisions within manufacturing companies and the contribution of the technique in promoting an inclusive method of obtaining consensus on technology investment.
Abstract: This paper explores how practical approaches to technology planning can support broadly based valuation decisions within manufacturing companies. A short review of the more traditional approaches to valuing technology is followed by a discussion of practices that are complementary in terms of linking technology, new product development and business planning in the company context. A "fast-start" process for technology roadmapping is proposed as one of these and the latest results from its in-company development are presented. Conclusions are drawn with respect to the contribution of the technique in promoting an inclusive method of obtaining consensus on technology investment.
111 citations
TL;DR: A specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory is presented, and a model called the strategy configuration chain is presented to illustrate this strategic process.
Abstract: There are systems methods and evolutionary processes that can help organisations understand the innovative patterns and competitive mechanisms that influence the creation, management and exploitation of technology. This paper presents a specific model based on the evolutionary processes of variation, selection, retention and struggle, coupled with fitness landscape theory. This latter concept is a complex adaptive systems theory that has attained recognition as an approach for visually mapping the strategic options an evolving system could pursue. The relevance and utility of fitness landscape theory to the strategic management of technology is explored, and a definition and model of technological fitness provided. The complex adaptive systems perspective adopted by this paper, views organisations as evolving systems that formulate strategies by classifying, selecting, adopting and exploiting various combinations of technological capabilities. A model called the strategy configuration chain is presented to illustrate this strategic process.
89 citations
TL;DR: The findings suggest that students’ situational motivation can be changed to intrinsic motivation by well organised programmes linking schools to the informal, open learning environments of science centres.
Abstract: The purpose of this article is to develop further the premise that science centre education is a form of informal learning. The growth of modern science centres can be traced to the resurgence of interest in the West and in the USA in particular following the launch of Sputnik. Similarly, the growth of science centres since the1990s has been clearly been connected to two major developments in society: the crisis of scientific literacy and the visions for the information society. Rapid advances in genetic research and information technology have created new challenges for the public understanding of science. The role of universities and industry has been crucial for creating the contents of modern science centres such as Heureka, the Finnish science centre. Evidence based on four case studies, which describes the motivation of school students visiting science centres, is presented here. The findings suggest that students’ situational motivation can be changed to intrinsic motivation by well organised programmes linking schools to the informal, open learning environments of science centres. A survey taken among university students attests to the fact that informal learning sources such as science centres seem to have a stronger impact on their academic career choices than has hitherto been realised.
83 citations
TL;DR: The findings suggest that five relationship management tasks have a strong impact on customer involvement in NPD, including relationship sponsoring, technological consulting, information brokering, representing interests, and coordinating cooperative activities are crucial for integrating customers into NPD processes.
Abstract: Research in new product development (NPD) has identified customer involvement as an important means to accelerate product development, to reduce development costs, and to enhance new product value. This is grounded in the wealth of customers' knowledge due to their product and market experiences. Therefore, customer involvement may provide access to innovative product ideas, new technologies, market information, and development capabilities that the manufacturer lacks in-house. Whilst much has been written about the potential benefits of partnering with customers, only few researchers have attempted to document empirically the factors that foster customer involvement in NPD. This study examines the influence of relationship management tasks on customer involvement in NPD using data from more than 233 supplier-customer relationships. Our findings suggest that five relationship management tasks have a strong impact on customer involvement in NPD. Relationship sponsoring, technological consulting, information brokering, representing interests, and coordinating cooperative activities are crucial for integrating customers into NPD processes. Mutual trust and mutual commitment as well as mutual adaptations by the partner firms are further important factors for customer involvement in NPD. Based on these findings, this study discusses several theoretical and managerial implications.
78 citations
TL;DR: It is shown that regional development studies need to connect geographical proximity with organisational proximity achieved by actions to mobilise resources around a collective project or utilising common institutional routines and values.
Abstract: This paper deals critically with the concept of geographical proximity as a prerequisite for successful regional innovation processes. Using three case studies we show that regional development studies need to connect geographical proximity with organisational proximity achieved by actions to mobilise resources around a collective project or utilising common institutional routines and values.
72 citations
TL;DR: Institutional barriers to the diffusion of technology transfer in universities are largely ignored, with the aid of some conceptual and theoretical tools from research in organisational analysis.
Abstract: The intensification of university-industry relations and the role universities play in a knowledge society are widely discussed. Some even argue that economic development through technology transfer has become a ‘"third academic mission"’ on a par with universities' traditional missions of teaching and research. Institutional barriers to the diffusion of that mission, however, are largely ignored. With the aid of some conceptual and theoretical tools from research in organisational analysis the paper focuses on these barriers. Empirical evidence is drawn from a study on technology transfer offices at German universities.
69 citations
TL;DR: It is found for Germany that, on average, patents are a rather ineffective appropriation tool, however, there is one cluster of firms accounting for about 20% of all firms, where patents are perceived as the most effective mechanisms of appropriation.
Abstract: This paper analyses the perceived effectiveness of patents and other means of appropriation for protecting the competitive advantages of new products. Data were obtained from the "Mannheim Innovation Panel", which includes more than 1800 German-based firms with at least some new product development activities. In line with past research in the USA and several European countries, we found for Germany that, on average, patents are a rather ineffective appropriation tool. However, we identified one cluster of firms accounting for about 20% of all firms, where patents are perceived as the most effective mechanisms of appropriation. We further analysed, by means of logistic regression, how this cluster can be characterised and by what factors the perceived effectiveness of patents as a method of appropriation are moderated.
TL;DR: The concept of knowledge management for product innovation is introduced and a collaborative knowledge management tool specifically designed to help manage a portfolio of product innovation projects in a distributed environment is presented.
Abstract: Contemporary business systems are becoming increasingly competitive Faster and smarter technology, although imperative, is not enough to survive in dynamic environments Modern enterprises must adopt a deliberate and systematic approach to managing the drivers of innovation in order to create and deliver innovative new products and services and thus maintain competitive advantage Managing the enterprise's knowledge base and converting intellectual capital into useful products and services is fast becoming the critical executive skill of the age With this in mind, our research focuses on adopting a knowledge management approach to product innovation management This paper reports on the findings of a case based research investigation It introduces the concept of knowledge management for product innovation and presents a collaborative knowledge management tool specifically designed to help manage a portfolio of product innovation projects in a distributed environment
TL;DR: An outlook on empirical indicators to measure the value generated by information and knowledge embodied in the firms and human resources of a local territory is presented.
Abstract: This paper takes a look at the spatial dimension of innovation processes, which do not occur in high-tech sectors but in clusters of SMEs. Territorial knowledge management means the generation of a system of procedures and incentives to convert tacit and localised knowledge into explicit knowledge available to all companies and employees in a region by overcoming cognitive barriers. Territorial knowledge management is a methodology, which aims to promote innovation within existing firms and the birth of innovative firms through the enhancement of the local endowment of intellectual capital and the governance of those processes, which drive knowledge creation within the firms and between these latter and the local actors. The paper presents an outlook on empirical indicators to measure the value generated by information and knowledge embodied in the firms and human resources of a local territory.
TL;DR: It is found that some knowledge sharing mechanisms are more suited for one stage of knowledge sharing than another, as determined by their "reach" and "richness", and a framework linking knowledge sharing mechanism with knowledge transferred is constructed.
Abstract: This paper attempts to answer the question of what and how knowledge sharing mechanisms should be used between geographically dispersed plants in multinational companies. Case studies in 11 multinational companies reveal that many mechanisms are used for inter-plant knowledge sharing, which are grouped into eight categories: transfer of people, forums (internal conferences/meetings), boundary spanners, periodicals, audits, benchmarking, best-practice guidelines and international teams. It is found that some knowledge sharing mechanisms are more suited for one stage of knowledge sharing than another, as determined by their "reach" and "richness". Specifically, mechanisms with high "reach" are more suitable for creating awareness among potential receivers and mechanisms with high "richness" are often more effective in transferring the knowledge. In addition, the choice of mechanism is also dependent on the degree of tacitness and embeddedness knowledge transferred. Based on these insights, a framework linking knowledge sharing mechanisms with knowledge transferred is constructed.
TL;DR: It is argued that historical development as well as the particular structure of the social networks in Silicon Valley is precisely what has fostered relatively higher growth and development of the region compared to many other regions of the world.
Abstract: By comparing the network structure of venture capital (VC) firms in Silicon Valley (California) to that of VC firms in Route 128 (Massachusetts), the present study challenges any market-centred theory of regional development. I show that there are advantages in examining the structure of social networks of cooperation within the venture capital industry to understand the level of development of a region. I support two distinctive propositions regarding the regional advantage of Silicon Valley over other US hightechnology regions such as Route 128. First, collaboration among VC firms in Silicon Valley is more pronounced and dense than in Route 128. Second, the number of investments and amount of money invested by VCs in Silicon Valley staying local are much higher than the number of investments and moneys invested locally by Route 128 VC firms. I argue that historical development as well as the particular structure of the social networks in Silicon Valley is precisely what has fostered relatively higher growth and development of the region compared to many other regions of the world.
TL;DR: This article examines the development and management of a network in the defence industry in terms of the interactions between the individuals involved and finds that the effective functioning of the overall network is closely allied to established processes within the two participating firms.
Abstract: Networks are often seen as models of organisational flexibility, promoting the building of trust and exchange of information between different business functions while offering both cost savings and reductions in the uncertainties usually associated with innovation. Both internal and external networks have been identified as key elements in the collaborative development of new products. The actual process of network building and ongoing network management is not well researched, although the existing literature highlights difficulties for organisations attempting to maintain active product development networks. This article examines the development and management of such a network in the defence industry and focuses on network building processes in terms of the interactions between the individuals involved. This network has endured and evolved over many years despite a series of conflicts. One of the key findings is that the effective functioning of the overall network is closely allied to established processes within the two participating firms.
TL;DR: An overview of trends and consequences for the function and methods of evaluation of research and innovation policies against the background of recent German experiences is presented.
Abstract: Recent changes in the field of evaluation refer to new demands by politics, economies and society to extend the subject of evaluation processes to cross-sectoral research promotion programmes and research institutions, and new developments within the research of evaluation itself. The paper presents an overview of these trends and consequences for the function and methods of evaluation of research and innovation policies against the background of recent German experiences.
TL;DR: The industry’s origins in the close connections to Silicon Valley built by overseas Chinese are described, and the resulting patterns of cross-regional collaboration between the VC industries in the USA and Taiwan are analyzed.
Abstract: Taiwan stands out as an early success story in developing a venture capital (VC) industry. Domestic policy makers introduced VC in the early 1980s and today the island boasts a flourishing VC sector that is closely associated with the upgrading of the personal computer and integrated circuit industries. This paper describes the industry’s origins in the close connections to Silicon Valley built by overseas Chinese, and it analyses the resulting patterns of cross-regional collaboration between the VC industries in the USA and Taiwan.
TL;DR: This article focuses on reviewing research findings on four key topics: establishing a market orientation, building credibility and trust with stakeholders, establishing marketing alliances and low-cost marketing.
Abstract: In many industries, emerging firms derive their initial strength from R&D activities Though technological capabilities are important for building technologically sound products, they are not sufficient for turning an emerging firm into a viable economic actor, as numerous examples illustrate Based on a discussion of the specific challenges of marketing in new ventures and a brief overview on past and current research studies, this article focuses on reviewing research findings on four key topics: establishing a market orientation, building credibility and trust with stakeholders, establishing marketing alliances and low-cost marketing Though previous research has produced important insights into each of these topics, there are still plenty of issues that offer promising opportunities for future studies
TL;DR: This paper presents theoretical evolutionary change management principles and a simulation game based business process development method, built upon these principles, applied in two NPD process development projects in Finland.
Abstract: This paper presents theoretical evolutionary change management principles and a simulation game based business process development method, built upon these principles. The authors applied the method in two NPD process development projects in Finland. Results from the case projects and conclusions to the management of change are presented. The projects differed markedly in their initial change approach. The bottom-up initiated change project of the pharmaceutical company and the top-down initiated project of the telecommunication company, however, both achieved good results in process development. Drawing from the theory of evolution management, we can hypothesise that this success can be credited in both cases to the dialogue between strategy and operation, which was created during the change projects. This dialogue was achieved through the method that was applied, i.e. successive simulation games. The cases also suggest that the management of process development greatly benefits from a project portfolio and systematic project management, which help to implement the dynamic and learning umbrella strategy.
TL;DR: This paper discusses how to design smart products and service systems using web-based intelligence technologies using the device-to-business, D2B™, concept.
Abstract: Web-based intelligence is key to achieving global leadership in sixsigma product aftermarket service and manufacturing productivity for the 21st century. The need to improve the understanding of product performance for aftermarket service will lead to six sigma quality for product life cycle. With the proper integration of e-intelligence into products, manufacturing and service systems, manufacturers and users will benefit from the increased equipment and process reliability. This paper discusses how to design smart products and service systems using web-based intelligence technologies. Firstly, a brief introduction about the trends of product and service innovation in industry and perspectives are given. Secondly, needs and innovation for the device-to-business, D2B™, concept are introduced. Finally, the D2B Platform and its impacts on innovative business transformation are discussed.
TL;DR: The Silicon Valley example points out that the most successful high-tech companies such as Cisco Systems, Intel and Sun, externalise their research by doing corporate venturing, and managers of innovation have to get a large social capital to gather information inside business networks.
Abstract: The capability to generate and develop disruptive technologies drives the market in the high-tech sector. Traditional strategic theory recommends internalisation of R&D to keep a competitive advantage. The Silicon Valley example points out that the most successful high-tech companies such as Cisco Systems, Intel and Sun, externalise their research by doing corporate venturing. These companies manage their portfolio of technologies by acquiring small businesses that have developed disruptive technologies. This kind of acquisitive strategy needs specific organisational and managerial practices to embed the large company in the industrial-network structure of the Silicon Valley. Thus, managers of innovation have to get a large social capital to gather information inside business networks.
TL;DR: The investigation shows that conventional political strategies to support industry-academia links by building up intermediary organisations might fail, as industry is mainly interested in excellent academic quality.
Abstract: This paper aims at an empirical analysis of industry-academia links by using Italian data on performance of university departments and institutes to attract funding from industrial sources. The investigation shows that conventional political strategies to support industry-academia links by building up intermediary organisations might fail, as industry is mainly interested in excellent academic quality.
TL;DR: A framework for a management support system of fuzzy front-end activities is presented, based on psychological findings about the process of action regulation in complex decision situations, which uses Fuzzy Cognitive Maps for modelling and simulation.
Abstract: The early phases of product development - the so-called fuzzy front end - are ill supported by traditional tools and methods for new product development (NPD). Based on a thorough investigation of the activities, challenges and strategies associated with these NPD stages, the paper identifies requirements for front-end management. It then discusses current approaches for support tools and systems. Based on the identified strengths and weaknesses of existing front-end solutions, a framework for a management support system of fuzzy front-end activities is presented. Conceptually, it is based on psychological findings about the process of action regulation in complex decision situations. Methodologically, it uses Fuzzy Cognitive Maps (FCMs) for modelling and simulation.
TL;DR: This study proposes and tests a structural model of customer retention and concludes that relational customer retention, where trust is a major constituent element, is differently supported by affective and cognitive involvement.
Abstract: This study proposes and tests a structural model of customer retention. It measures the effects of trust and involvement on customer retention assuming general customer satisfaction. The model is tested in an empirical study in the context of an existing long-term customer relationship. As expected, customer satisfaction is not a construct on its own but is combined with retention. Trust serves as a strong trigger for enhancing customer retention. Involvement is revealed to play a prominent role in explaining both trust creation and customer retention. Applying the scale of Jain and Srinivasan, effects of different involvement profiles are analysed. Based on a discussion of the conceptual framework and an empirical proof of its operationalisation, five different dimensions of involvement are distinguished. Trust creation is primarily triggered by affective components of involvement, whereas the cognitive components show distinct effects. Further differences between the individual dimensions of involvement are revealed, in accordance with theoretical considerations. We conclude that relational customer retention, where trust is a major constituent element, is differently supported by affective and cognitive involvement. Consequently, the focus of innovation and new product management should shift from the mere design of new physical properties towards a broader, proactive perspective of shaping both consumer involvement and long-term retention.
TL;DR: This paper attempts to present a model that explains the key determinants of technology development and acquisition modes and incorporates the dynamic nature of competition in research-intensive industries.
Abstract: There are various modes with which research-intensive firms can develop or acquire technologies, including internal R&D, technology licensing, cooperative R&D, minority investments in other firms, and acquisitions of other firms. This paper attempts to present a model that explains the key determinants of technology development and acquisition modes. It is theorised that time pressure and the strategic importance of the technology are the key factors that affect technology development and acquisition modes. In addition, a firm needs to consider the availability of an alliance partner or an acquisition target as well as internal resources including capital or the price of its own equity, and internal R&D capability. It is also suggested that as the strategic importance of the technology or time pressure to develop or acquire such technology changes, a firm needs to shift technology acquisition modes. Thus, the presented model incorporates the dynamic nature of competition in research-intensive industries.
TL;DR: Analysis of the source of biotechnology-derived products in healthcare reveals an almost complete dependence, in three key markets of the USA, UK and Germany, on products developed by entrepreneurial biotechnology firms.
Abstract: The pharmaceutical industry remains powerful due to its firm scale and global reach. However, analysis of the source of biotechnology-derived products in healthcare, valued at $70 billion worldwide by 2000, reveals an almost complete dependence, in three key markets of the USA, UK and Germany, on products developed by entrepreneurial biotechnology firms. These tend to operate in knowledge-driven clusters centred upon universities, research hospitals and research institutes, supported in major ways by public funding. This, and the growing public perception of possible problems with biotechnologies will increasingly bring "big pharma" into uncertain relations with governmental bodies, something that has been pronounced in the UK of late. Whether large pharmaceutical firms will retain their traditional powers of action in relation to governments and markets under these circumstances seems unlikely. However, such is their control over marketing and distribution as well as funding of entrepreneurial firms within or outside biotechnology clusters, that any serious challenge to their hegemony is difficult to envisage at present.
TL;DR: This paper proposes and defines the concept of an "innovation net", whereby competition is based on creating new product architectures and technological platforms that often transcend the boundaries of any given industry.
Abstract: The proliferation of breakthrough technologies and innovations among many industries has spurred the formulation of new types of competitive strategies and imperatives to learn new sources of competitive advantage. It is increasingly the case that the rising costs and risks of innovation make it increasingly difficult for any firm to undertake this knowledge-intensive endeavour completely on its own. As firms move towards establishing closer relationships with their suppliers, partners, and even their competitors, a new paradigm of strategy, value creation, and organisation design appears to be emerging. In this paper, we propose and define the concept of an "innovation net", whereby competition is based on creating new product architectures and technological platforms that often transcend the boundaries of any given industry. Within the innovation net, firms are becoming increasingly specialised in their value-creation activities, and yet simultaneously interdependent on other economic entities to shape the underlying value proposition offered to customers. Competitive advantage in the innovation net is based on learning and absorbing new sources of knowledge, no matter where they may emanate. A focus on modularity, cultivation of tacit knowledge, and learning alliances provides the key organisational design drivers that sustain competitive advantage.
TL;DR: The results indicate that firms locate foreign R&D capabilities in the primary markets for the products produced by their overseas affiliate, that they value the availability of highly educated graduates in the sciences and engineering fields for staffing their overseas operations and that cost is not a significant factor driving the location decision.
Abstract: Multinational corporations (MNCs) are continuing to internationalise their R&D activities, locating innovatory capacity abroad. The location of these activities is of vital importance to technology managers and potential host countries. Using country-level data from a variety of governmental sources, the authors empirically address the affect of multiple factors potentially motivating investment by US MNCs in foreign R&D activities. The current study complements and extends existing studies by identifying new factors, operationalising others in a new way and more narrowly defining previously studied variables, highlighting the sensitivity of findings to variable definitions. The results indicate that firms locate foreign R&D capabilities in the primary markets for the products produced by their overseas affiliate, that they value the availability of highly educated graduates in the sciences and engineering fields for staffing their overseas operations and that cost is not a significant factor driving the location decision. Management and host government policy implications are discussed.
TL;DR: The growth of industry-academic links and in particular the growth of cross-border collaboration and funding is analyzed from an international perspective although more detailed analysis is undertaken from a UK context.
Abstract: This paper focuses on one aspect of the fundamental changes facing higher education in the knowledge-based economy, namely the growth of industry-academic links and in particular the growth of cross-border collaboration and funding. Following an historical background and context to industry-academic links and its more recent growth trends, the paper seeks to analyse industry/higher education collaboration from an international perspective, although more detailed analysis is undertaken from a UK context. The paper concludes with a short discussion on the policy implications of the paper's findings.