Supplier involvement is essential to a new venture seeking to develop a radical innovation. Despite this, prior literature has not adequately addressed supplier involvement in radical innovation, nor what the antecedents to increased supplier involvement are. We build and test a conceptual model of the antecedents and new product performance outcomes of supplier involvement in the development of radical innovation by new ventures. Antecedent variables (supplier's specific investments and the new venture's qualification of the supplier's abilities) are drawn from the transaction cost analysis literature. We include new venture's relative power and new venture's level of commitment to the supplier as contingency conditions. We develop a set of hypotheses relating supplier involvement to radical innovation performance, relating the antecedent variables to supplier involvement, and also testing the interaction effects of the two contingency conditions. We gather data from both new ventures and their major suppliers for 173 recent radical innovation projects, and use hierarchical regression analysis to test our hypotheses. We find that the contingency conditions moderate achieved levels of supplier involvement, and also find a direct relationship between achieved level of involvement and performance. We conclude with theoretical contributions and managerial implications. Published by Elsevier B.V.
The Miles-Snow (M-S) strategic typology has continued to receive attention in the academic business press, even though it has been criticized for not making explicit the relationships between strategic type and ultimate profit performance. Using the market orientation and Resource-Based View literature, we develop hypotheses regarding relationships between M-S strategic type and four firm capabilities (technology, information technology, market-linking, and marketing capabilities), relationship between the four capabilities and performance, and the moderating role of M-S strategic type. An empirical test involves multiple data collections from 216 firms. The study results suggest that there are significant relationships between capabilities and performance if one does not account for the moderating role of strategic type. When strategic type is used as a moderating variable, we find that only certain capabilities had significant effects on profitability. For example, technology and information technology capabilities increase financial performance for prospector organizations, while a different set of capabilities (marketlinking and marketing) are positively related to financial performance for defender organizations. We discuss how our findings are consistent with the expectations of the Resource-Based View of the firm. We conclude with a discussion of theoretical and managerial implications.
The authors examine the relationship between strategic type and development of distinctive marketing, market-linking, technology, and information technology (IT) capabilities to implement innovation strategy. They hypothesize that prospectors must build technical and IT capabilities, whereas defenders develop market-linking and marketing capabilities. The authors collect data from 709 firms across the United States, Japan, and China. They find support for their capability hypotheses, as well as for some of their cross-national hypotheses that are based on cultural and business environment differences among the three countries. In particular, they find support for the hypotheses that Japanese firms have greater technology and IT capabilities than U.S. firms of the same strategic type. They conclude with implications for management.
Why are some firms more successful at commercializing new products than others in emerging economies? It is possible that the strategic orientations, which firms adopt as a type of business strategy, lead at least partially to the superior performance of the new products they introduce to the market. Strategic orientations facilitate a match between firm strategy and resource endowment, on the one hand, and the adaptation to market conditions, on the other. In this paper, we empirically test whether four major types of strategic orientations (market orientation, technology orientation, entrepreneurial orientation, and networking orientation) are simultaneously related to new product commercialization performance using data collected from China. We find that strategic orientations are positively related to three aspects of new product commercialization, namely new product advantage, new product newness, and number of new products introduced to the market. Interestingly, we find that pairs of strategic orientations support each other in exerting their impacts on new product commercialization performance. In addition, we find that organizational learning mediates the effects of strategic orientations on new product commercialization and that environmental dynamism moderates the effect of strategic orientations on new product commercialization. We obtain the valuable insight that a firm's successful commercialization of new products hinges upon the development of critical yet complementary sets of strategic orientations, especially in a dynamic business environment.
Posits a stagewise learning process involved in the building of
brand equity: brand birth; the creation of brand awareness and
associations; the building of quality and value perceptions; the
emergence of brand loyalty; and the launching of brand extensions. Also
reports on an empirical study which explored the evolution, existence
and extensibility of brand equity in a particular business‐to‐business
market. Concludes with practical implications for managers in
business‐to‐business product or service firms.
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