Browsing Danish Research Unit for Industrial Dynamics (DRUID) by Title
-
The Case of the Computer GamesJeppesen, Lars Bo (Frederiksberg, 2001)[More information][Less information]
Abstract: It has been demonstrated that users occasionally innovate. However, it can now be observed that even end-consumers act as a source novel product designs. A case study of a firm, and “its” consumers - from the computer games industry - illustrates how sourcing of consumer knowledge has enabled the firm to improve product design. Two conditions favor the results firms can obtain from consumer’s knowledge. First, is firm’s ability to exploit new opportunities of information and communication technology - on-line communities - to establish interfaces connecting them with consumers. Second, is firm’s ability to initiate a mode of organization by which the consumers are guided and motivated to reveal merely relevant knowledge. URI: http://hdl.handle.net/10398/7898 Files in this item: 1
DRUID_01_10.pdf (134.2Kb) -
Toward a Dynamic Property Rights PerspectiveFoss, Nicolai J.; Foss, Kirsten (Frederiksberg, 1998)[More information][Less information]
-
Cross-national Transfer of Socially Responsible InvestmentBoxenbaum, Eva; Gond, Jean-Pascal (Frederiksberg, 2006)[More information][Less information]
Abstract: This paper examines how individuals select and mobilize local institutions when they transfer business practices across societies that are construed as dissimilar to one another. We investigate empirically how the American business practice of socially responsible investment (SRI) was transferred to France and Quebec. Our analysis identifies five micro-strategies that were employed to contextualize SRI, namely filtering, rerouting, stowing, defusing, and coupling. This repertoire of micro-strategies extends previous research on contextualization, translation, and institutional transfers and links them to one another. They may also help explain why some transfers succeed while others fail. URI: http://hdl.handle.net/10398/7875 Files in this item: 1
DRUID_06_24.pdf (282.5Kb) -
The Roles of Knowledge Sources and Organizational Instruments in MNC Knowledge ManagementFoss, Nicolai J; Pedersen, Torben (København, 2003)[More information][Less information]
Abstract: Recent research on the differentiated MNC has concerned knowledge flows between MNC units. While linking up with this literature, we extend in two directions. First, we argue that conceptualizing the MNC as a knowledge structure furthers the understanding of intra-MNC knowledge flows. Thus, we see MNC knowledge elements as being structured along such dimensions as their type and degree of complementarity to other knowledge elements, and their sources, for example, whether they are mainly developed from external or internal knowledge sources. These dimensions matter in terms of knowledge flows, because they influence the costs and benefits of knowledge transfer and, hence, the actual level of knowledge transferred. Second, based on this conceptualization, we argue that MNC management can influence the development, characteristics and transfer of knowledge through choices regarding organizational instruments (control, motivation and context). We test six hypotheses derived from these arguments against a unique dataset on subsidiary knowledge development. The dataset includes information on organizational instruments, sources of subsidiary knowledge, and the extent of knowledge transfer to other MNC units. It covers more than 2,000 subsidiaries located in seven different European countries. URI: http://hdl.handle.net/10398/7317 Files in this item: 1
03-09.pdf (594.9Kb) -
Mikkola, Juliana Hsuan (Frederiksberg, 2000)[More information][Less information]
Abstract: Modularization refers to the opportunity for mixing-and-matching of components in a modular product design in which the standard interfaces between components are specified to allow for a range of variation in components to be substituted in a product architecture. It is through mixing-and-matching of these components, and how these components interface with one another, that new systems are created. Consequently, the degree of modularization inherent in a system is highly dependent upon the components and the interface constraints shared among the components, modules, and sub-systems. In this paper, a mathematical model is derived for analyzing the degree of modularization in a given product architecture by taking into consideration the number of components, number of interfaces, the composition of new-to-the-firm (NTF) components, and substitutability of components. An analysis of Chrysler windshield wipers controller suggests that two product architectures may share similar interface constraints, but the opportunity for modularization of one module is significant higher than the other due to the higher substitutability of its components and lower composition of NTF components. URI: http://hdl.handle.net/10398/7900 Files in this item: 1
DRUID_00_04.pdf (120.5Kb) -
Product Experimentation in the Music IndustryLorenzen, Mark; Frederiksen, Lars (Frederiksberg, 2005)[More information][Less information]
Abstract: The paper is conceptual, combining project and economic organization literatures in order to explain the organization and management of market-based projects. It dedicates particular focus to projects set up in order to facilitate product innovation through experimentation. It investigates the internal vs. market economies of scale and scope related to projects, as well as the issues of governance, planning and coordination related to reaping such economies. Incorporating transaction cost perspectives as well as considerations of labour markets, the paper explains the management of market-organized innovation projects by virtue of localized project ecologies and local labour markets of leaders and boundary spanners. It illustrates its arguments with a case study of the Recorded Music industry. URI: http://hdl.handle.net/10398/7881 Files in this item: 1
DRUID_05_23.pdf (174.4Kb) -
[More information][Less information]
Abstract: Organizational routines and capabilities have become key constructs not only in evolutionary economics, but more recently also in business administration, specifically strategic management. In this chapter we explicate some of the underlying theoretical problems of these concepts, and discuss the need for micro-foundations. Specifically, we focus on some of the explanatory problems of collective-level theorizing, and what we think are tenuous assumptions about human beings. We argue that individual-level considerations deserve significantly more consideration, and that evolutionary economics and strategic management would be well served by building on methodological individualism. URI: http://hdl.handle.net/10398/7891 Files in this item: 1
DRUID_04_13.pdf (346.0Kb) -
The Role of FirmsFoss, Nicolai J.; Foss, Kirsten (Frederiksberg, 1999)[More information][Less information]
-
When to Ally with Weak PartnersOverby, Mikkel Lucas (Frederiksberg, 2005)[More information][Less information]
Abstract: In many emergent markets, cross-industry alliances are necessary to develop and market new products and services. The resource-based view suggests that firms form alliances to access or acquire valuable, rare, non-imitable and non-substitutable resources, and that such access determines the level of profits. Hence, firms confronted with the choice between partners with strong versus partners with weak resource endowments should choose the former. We contest this view and argue that firms benefit from allying with weak partners at certain times. In essence, we suggest that partner selection involves assessing the relative importance of strong resource endowments and aligned strategic aspirations over time. By adopting an evolutionary approach, we show that appropriate partner selection criteria are dynamic and may involve allying with weak partners in the initial exploratory stage, with weak and/or strong partners in the development stage and with strong partners in the maturity stage. Our findings suggest that the resource-based understanding of strategic alliances should be extended to include a more profound role for a partner firm’s strategic aspiration. URI: http://hdl.handle.net/10398/7888 Files in this item: 1
DRUID_05_07.pdf (380.4Kb) -
an empirical investigationFoss, Nicolai Juul; Laursen, Keld (København, 2002)[More information][Less information]
-
On Behavioral Assumptions in the Theory of the FirmFoss, Nicolai J. (Frederiksberg, 2001)[More information][Less information]
Abstract: I discuss and compare alternative approaches to integrating bounded rationality with the theory of economic organization, concentrating on the organizational capabilities approach, which is strongly influenced by the works of Nelson and Winter, organizational economics, particularly transaction cost economics, and, finally, a small subset of the literature on biases to judgment and cognition. I argue that, contrary to the conventional view, both the organizational capabilities approach and transaction cost economics treat bounded rationality rather “thinly,” the former being in actuality more taken up with organizational routines than individual boundedly rational behavior, the latter only invoking bounded rationality to the extent that it helps explaining incompleteness of contracting. The rich literature on cognitive biases, etc. suggests a “thick” approach to bounded rationality that may be helpful with respect to furthering the theory of economic organization. Examples pertaining to the internal organization of firms are provided. URI: http://hdl.handle.net/10398/7895 Files in this item: 1
DRUID_01_15.pdf (134.9Kb) -
Foss, Nicolai J.; Frøslev Christensen, Jens (Frederiksberg, 1996)[More information][Less information]
-
Aadne, John Harald; Mahnke, Volker (Frederiksberg, 1998)[More information][Less information]
-
How Regional Characteristics Affect External Knowledge Acquisition and InnovationMasciarelli, Francesca; Prencipe, Andrea; Laursen, Keld (København, 2007)[More information][Less information]
Abstract: To introduce new products and processes, firms often acquire knowledge from other organizations. Drawing on social capital and transaction cost theory, we argue that not only is the impact of such acquisitions on the successful development of product and product innovations dependent on strategic and economic variables, it may also be contingent on the "knowledge characteristics” of the geographical area in which the firm is located. Combining data on social capital at the level of 21 regions with a large scale data set on innovative activities by a representative sample of 2464 Italian manufacturing firms, we find — after controlling for a large set of firm and regional characteristics — that being located in regions characterized by high levels of social interaction leads to a higher propensity to innovate. In addition, being located in an area characterized by a high degree of social interaction positively moderates the effectiveness of externally acquired R&D on innovation inclination. URI: http://hdl.handle.net/10398/7261 Files in this item: 1
druidwp07-20.pdf (465.2Kb) -
Effects on Performance in Danish and Swedish BiotechnologyValentin, Finn; Dahlgren, Henrich; Lund Jensen, Rasmus (København, 2006)[More information][Less information]
Abstract: Although biotech start-ups fail or succeed based on their research few attempts have been made to examine if and how they strategize in this core of their activity. Popular views on Dedicated Biotech Firms (DBFs) see the inherent uncertainty of research as defying notions of strategizing, directing instead the attention to the quality of their science, or the roles of boards, management, and collaborative networks etc. Using a unique comprehensive dataset on Danish and Swedish biotech start-ups in drug discovery this paper analyzes their research strategies. Adopting a Simonean point of departure we develop a contingency view on complex problem solving which structures the argument into three steps: 1) Characterising the problem architectures addressed by different types of DBFs; 2) Testing and confirming that DBFs form requisite research strategies, by which we refer to problem solving approaches developed as congruent responses to problem architectures; 3) Testing and confirming that financial valuation of firms is driven by achievements conforming to requisite research strategies. These strategies, in turn, require careful combination of multiple dimensions of research. Findings demonstrate that Shonhoovens classical argument that "strategy matters" is valid not only for the larger high-tech firms covered by her study, but also for small research-based start-ups operating at the very well springs of knowledge where science directly interacts with technologies. Even though a lot more research is needed along these lines, these findings offer new implications for the understanding, management, and financing of these firms. JEL Codes: L25, L65, O32 URI: http://hdl.handle.net/10398/7214 Files in this item: 1
wp06-11.pdf (254.6Kb) -
Effects on Performance in Danish and Swedish Biotechnology ByValentin, Finn; Dahlgren, Henrich; Lund Jensen, Rasmus (Frederiksberg, 2006)[More information][Less information]
Abstract: Although biotech start-ups fail or succeed based on their research few attempts have been made to examine if and how they strategize in this core of their activity. Popular views on Dedicated Biotech Firms (DBFs) see the inherent uncertainty of research as defying notions of strategizing, directing instead the attention to the quality of their science, or the roles of boards, management, and collaborative networks etc. Using a unique comprehensive dataset on Danish and Swedish biotech start-ups in drug discovery this paper analyzes their research strategies. Adopting a Simonean point of departure we develop a contingency view on complex problem solving which structures the argument into three steps: 1) Characterising the problem architectures addressed by different types of DBFs; 2) Testing and confirming that DBFs form requisite research strategies, by which we refer to problem solving approaches developed as congruent responses to problem architectures; 3) Testing and confirming that financial valuation of firms is driven by achievements conforming to requisite research strategies. These strategies, in turn, require careful combination of multiple dimensions of research. Findings demonstrate that Shonhoovens classical argument that “strategy matters” is valid not only for the larger high-tech firms covered by her study, but also for small research-based start-ups operating at the very well springs of knowledge where science directly interacts with technologies. Even though a lot more research is needed along these lines, these findings offer new implications for the understanding, management, and financing of these firms. URI: http://hdl.handle.net/10398/7879 Files in this item: 1
DRUID_06_11.pdf (254.6Kb) -
An Assessment and Diagnosis of ProblemsFoss, Nicolai J. (Frederiksberg, 1997)[More information][Less information]
-
Laursen, Keld (Frederiksberg, 1998)[More information][Less information]
-
what types of firms use universities as a source of innovation?Laursen, Keld; Salter, Ammon (København, 2003)[More information][Less information]
Abstract: Abstract This paper examines the factors that influence whether firms draw from universities in their innovative activities. The link between the universities and industrial innovation, and the role of different search strategies in influencing the propensity of firms to use universities is explored. The results suggest that firms who adopt "open" search strategies and invest in R&D are more likely than other firms to draw from universities, indicating that managerial choice matters in shaping the propensity of firms to draw from universities. Key words: University-industry links, innovation, external search strategies JEL Codes: C25, C42, O31, O32 URI: http://hdl.handle.net/10398/7260 Files in this item: 1
03-16.pdf (758.8Kb) -
Interpreting and Learning from the Rise and Decline of the Oticon Spaghetti OrganizationFoss, Nicolai J. (Frederiksberg, 2001)[More information][Less information]
Abstract: Infusing hierarchies with elements of market control has become a much-used way of simultaneously increasing entrepreneurialism and motivation in firms. However, this paper argues that such “internal hybrids,” particularly in their radical forms, are inherently hard to successfully design and implement, because of fundamental credibility problems related to managerial promises to not intervene in delegated decision-making ¾ an incentive problem that is often referred to as the “problem of selective intervention.” This theoretical theme is developed and illustrated, using the case of the world-leading Danish hearing aids producer, Oticon. In the beginning of the 1990s, Oticon became famous for its radical internal hybrid, the ”spaghetti organization.” Recent work has interpreted the spaghetti organization as a radical attempt to foster dynamic capabilities by imposing loose coupling on the organization, neglecting, however, that about a decade later, the spaghetti organization has given way to a more traditional matrix organization. This paper presents an organizational economics interpretation of organizational changes in Oticon, and argues that a strong liability of the spaghetti organization was the above incentive problem. Motivation in Oticon was strongly harmed by selective intervention on the part of top-management Changing the organizational structure was one means of repairing these motivational problems. Refutable implications are developed, both for the understanding of efficient design of internal hybrids, and for the more general issue of the distinction between firms and markets, as well as the choice between internal and external hybrids. URI: http://hdl.handle.net/10398/7894 Files in this item: 1
DRUID_01_16.pdf (186.7Kb)