Coopetitive advantage – How firms create and appropriate value by collaborating with their competitors

Collaboration between competing firms (coopetition) has emerged as an important issue forn business practice in many industries. Extant literature has examined coopetition on many levels of analysis, but lacks clarity in distinguishing it explicitly from cooperation between noncompeting organizations. Because of this, the performance implications of coopetition from the perspective of an individual firm are still ambiguous – some research suggests positive results whereas other studies suggest detrimental outcomes. The aim in this dissertation is to narrow these gaps by exploring how firms create and appropriate value through collaboration with their competitors. The dissertation is divided into two parts. The first part comprises an overview of the relevant literature, as well as the conclusions of the whole study, and the second part includes six research publications. Both qualitative and quantitative methodologies are utilized. The results suggest that coopetition embodies the distinctive logic of value creation and appropriation from the perspective of an individual firm, and thus differs in terms of performance implications from cooperation between non-competitors. The distinction comes from the fact that competitors have somewhat similar understanding, capabilities and interest related to certain markets, which is potentially both challenging and beneficial in terms of the individual firm’s competitiveness. It appears from the findings that there are distinctive firm-external and firm-specific factors affecting the success of a coopetition strategy. This study makes three main contributions. First, on the conceptual level it shows the distinction between coopetition and cooperation between non-rivals as a collaborative inter-organizational relationship. Secondly, it sets out a framework and propositions that enhance understanding of how value is created and appropriated in coopetition from the perspective of an individual firm. Thirdly, it offers empirical evidence of how coopetition affects firms’ innovation and market performance, and identifies the focal internal and external factors involved. In general terms, the thesis adds to our knowledge of how a firm can successfully utilize a coopetition strategy in its pursuit of improved performance.

Influence of Institutional Environment on Companies’ Innovation Activity

At the time of moving towards knowledge-based economy, countries pay much attention to innovations by making them a central issue in countries’ innovation policy development. Innovations are influenced much by the institutional environment, in which they are created. That is why exploration of National Innovation Systems, as an important part of such an environment, became central in works of different researchers all over the world.

The Digital Book as a Disruptive Innovation

Whether digital book will become the dominant design of books and be a widely accepted format for reading is a question that is currently asked by every e-publisher, publishing industry worker and many book consumers. This study is the first to holistically approach Christensen’s disruptive innovation theory for an instrument of measuring the phenomenon of the digital book. The disruptiveness of an innovation could be measured by it’s disruptive potential and the disruption process it passes. The empirical part of the thesis is designed so to investigate the digital book‘s features as an innovation for disruptive potential and then the current digital book market, monitoring it for disruption processes. Proving that the digital book is a disruptive innovation may allow understanding it’s prospects and even help in making a pattern of the innovation’s market infiltration in the future. The framework created for answering the research question could also be used in a similar way to analyze other E-publishing products (e.g. e-newspapers, emagazines).

Projektijohtamisen prosessit ja kriittiset menestystekijät, Case Lappeenranta Innovation Oy

Tutkimuksen tavoitteena oli kartoittaa case-yrityksen vakiintuneet projektijohtamiseen liittyvät prosessit ja selvittää miten projektipäälliköt ja -koordinaattorit näkevät projektijohtamisen menestystekijät. Projektijohtamiseen liittyvän kirjallisuuden perusteella koostettiin projektijohtamisen optimiprosessi ja prosessivaiheittain listattiin myös eri menestystekijöitä. Tätä kuvausta verrattiin case-yrityksen projektijohtamisen prosessiin ja koettuihin menestystekijöihin, ja näiden pohjalta pohdittiin case-yrityksen projektijohtamisen prosessin parantamista. Projektijohtamisen prosessin lähes kaikissa vaiheissa löytyi tekijöitä, jotka ovat osatekijöitä projektin menestyksen kannalta. Yksi keskeisimpiä havaintoja oli projektin tarvelähtöisyyden merkitys projektin onnistumisessa ja projektitiimin sitoutumisessa. Kumppaneiden sitoutuminen yhtenä tärkeänä tekijänä nousi myös esille. Tutkimuksen tuloksena syntyi myös mekanismi kohdennettujen projekti-ideoiden keräämiseen hajautetussa ympäristössä.

The Role of Preannouncing In Innovation Launch Strategy

The objective of this master’s thesis was to examine the role of preannouncing in innovation launch strategy. Preannouncing was studied from three different angles that were preannouncement usage, preannouncement timing and preannouncement goals and from two different perspectives that were the firm’s internal strategy and the external circumstances. The firm’s internal strategy encompassed the product strategy the firm had chosen. The external circumstances consisted of the industry, the nature of competition and the nature of market. Additionally, the product’s performance in the short term was studied in order to be able to speak out whether it is advantageous to preannounce. The empirical study was conducted as a partial replication study. The data for the empirical part was collected with a wide mailing and Internet enquiry in October 2008 – June 2009. Sample (N = 713) consisted of Finnish firms representing different industries and innovation activities. The data collection produced 272 answers and thus, the final response rate of the study was 38.15 %. The data was analyzed by using Microsoft Excel and statistical analysis program SAS Enterprise Guide. As a conclusion, the major results indicate that even if the firms use preannouncing quite often (54.8 % of the respondents), preannouncing behavior cannot be explained by industry. However, out of other external circumstances, the customer related turbulence affects on preannouncing usage. It was also revealed that the product type has an effect on preannouncing behavior. Additionally, preannouncement timing was noticed to differ according to audiences (distributors and end users).

Training system for conceptual design and evaluation for wastewater treatment

Rising population, rapid urbanisation and growing industrialisation have severely stressed water quality and its availability in Malawi. In addition, financial and institutional problems and the expanding agro industry have aggravated this problem. The situation is worsened by depleting water resources and pollution from untreated sewage and industrial effluent. The increasing scarcity of clean water calls for the need for appropriate management of available water resources. There is also demand for a training system for conceptual design and evaluation for wastewater treatment in order to build the capacity for technical service providers and environmental practitioners in the country. It is predicted that Malawi will face a water stress situation by 2025. In the city of Blantyre, this situation is aggravated by the serious pollution threat from the grossly inadequate sewage treatment capacity. This capacity is only 23.5% of the wastewater being generated presently. In addition, limited or non-existent industrial effluent treatment has contributed to the severe water quality degradation. This situation poses a threat to the ecologically fragile and sensitive receiving water courses within the city. This water is used for domestic purposes further downstream. This manuscript outlines the legal and policy framework for wastewater treatment in Malawi. The manuscript also evaluates the existing wastewater treatment systems in Blantyre. This evaluation aims at determining if the effluent levels at the municipal plants conform to existing standards and guidelines and other associated policy and regulatory frameworks. The raw material at all the three municipal plants is sewage. The typical wastewater parameters are Biochemical Oxygen Demand (BOD5), Chemical Oxygen Demand (COD), and Total Suspended Solids (TSS). The treatment target is BOD5, COD, and TSS reduction. Typical wastewater parameters at the wastewater treatment plant at MDW&S textile and garments factory are BOD5 and COD. The treatment target is to reduce BOD5 and COD. The manuscript further evaluates a design approach of the three municipal wastewater treatment plants in the city and the wastewater treatment plant at Mapeto David Whitehead & Sons (MDW&S) textile and garments factory. This evaluation utilises case-based design and case-based reasoning principles in the ED-WAVE tool to determine if there is potential for the tool in Blantyre. The manuscript finally evaluates the technology selection process for appropriate wastewater treatment systems for the city of Blantyre. The criteria for selection of appropriate wastewater treatment systems are discussed. Decision support tools and the decision tree making process for technology selection are also discussed. Based on the treatment targets and design criteria at the eight cases evaluated in this manuscript in reference to similar cases in the ED-WAVE tool, this work confirms the practical use of case-based design and case-based reasoning principles in the ED-WAVE tool in the design and evaluation of wastewater treatment 6 systems in sub-Sahara Africa, using Blantyre, Malawi, as the case study area. After encountering a new situation, already collected decision scenarios (cases) are invoked and modified in order to arrive at a particular design alternative. What is necessary, however, is to appropriately modify the case arrived at through the Case Study Manager in order to come up with a design appropriate to the local situation taking into account technical, socio-economic and environmental aspects. This work provides a training system for conceptual design and evaluation for wastewater treatment.

Uuden liiketoiminnan kehittäminen: Näkökulmana alkuvaiheiden menestystekijät ja ideoiden hyödynnettävyys verkostoissa

Tavoitteena työssä oli tuottaa ja kerätä tietoa uuden liiketoiminnan kehittämistä tukevan toimintamallin suunnittelu- ja kehitystyötä varten. Tietoa kerättiin aikaisemmasta tutkimuksesta, kirjallisuudesta sekä empiirisistä lähteistä. Tutkimusta työssä tehtiin konstruktiivisen lähestymistapaa mukaillen. Empiirisen tiedon keräämis- ja tuottamistapoina käytettiin teemahaastattelua, verkkokyselyä ja työpajatyöskentelyä. Lisäksi työssä analysoitiin kaksi olemassa olevaa uuden liiketoiminnan kehittämisen toimintamallia. Teoriatarkastelu työssä keskityttiin innovaation alkupäähän, liiketoimintamalleihin, asiakasarvoihin, verkostoihin ja innovaation alkupään menestystekijöihin. Näiden pohjalta tuotettiin kehitelmä hyödynnettävyydestä sekä kuvaus uuden liiketoiminnan kehittämisen varhaisista vaiheista. Tätä kaikkea hyödyntäen koottiin suunnittelutiedon lisäksi jatkokehitystä tukeva konseptimainen toimintamalli. Tämän konseptimaisen vision tarkoituksena on toimia jatkossa suunnan näyttäjänä varsinaista toimintamallia rakennettaessa.

Curriculum innovation in teacher education : exploring conceptions among Tanzanian teacher educators

The focus of the study is to understand curriculum innovation from the perspective of Tanzanian teacher educators. It is argued that the deterioration of quality of education in schools is partly to be attributed to the way in which teachers are educated. Curriculum innovation is considered as an essential strategy for bringing about improvement in teacher education. Therefore, in 2000 a new curriculum was introduced; however, right from the inception the curriculum was criticised by teacher educators. The overall aim of the study is to investigate teacher educators’ conceptions of curriculum innovation. In the theoretical framework the main focus is on discussion about different curriculum approaches for teacher education and innovation. In order to achieve the aim of the study, a phenomenographic approach is employed. This approach is used in order to identify similarities and variation in educators’ conceptions of curriculum innovation. The empirical basis of the study consists of interviews with thirty teacher educators working in eight teachers’ colleges situated in various parts of Tanzania. The findings, in brief, reveal variation in teacher educators’ conceptions of the dominant domains of innovation. Two broad conceptions of teaching with six aspects are identified. Conceptions of educational studies are presented in four broad categories of description with four aspects. Similarly, in methodology subjects two conceptions are described with four aspects. On the integration of subject matter studies and subject methods, two broad conceptions are presented with six aspects. Conceptions of textbook prescription policy are characterised in two broad categories of description with four aspects. With the use of modules two broad conceptions are identified with six aspects. In addition, the study identifies four broad conceptions of future curriculum approaches with eight aspects. Looking across the categories of description, the results indicate that educators cope with innovation individually. Three character types of teacher educators are presented: loyal, creative and critical. Furthermore, four types of phenomena suggesting critical areas about teacher educators’ conceptions of innovation are described: educators’ prior educational background, technical factors, student teachers’ factors and shifting from teaching to learning. On the whole, educators express a number of frame factors in the process of change towards the aim of curriculum innovation. This indicates that the new curriculum (2000) is not implemented as intended by curriculum developers. Constraints to the implementation are presented and discussed in detail. From these findings, two models of educators’ stance towards curriculum innovation are presented and can be used as a framework for planning successful curriculum innovations and analysing practice in teachers’ colleges.

Analysis on firm innovation boundaries

Innovation has been widely recognized as an important driver of firm competitiveness, and the firm’s internal research and development (R&D) activities are often considered to have a critical role in innovation activities. Internal R&D is, however, not the source of innovation as firms may tap into knowledge necessary for innovation also through various types of sourcing agreements or by collaborating with other organizations. The objective of this study is to analyze the way firms go about organizing efficiently their innovation boundaries. Within this context, the analysis is focused, firstly, on the relation between innovation boundaries and firm innovation performance and, secondly, on the factors explaining innovation boundary organization. The innovation literature recognizes that the sources of innovation depend on the nature of technology but does not offer a sufficient tool for analyzing innovation boundary options and their efficiency. Thus, this study suggests incorporating insights from transaction cost economics (TCE) complemented with dynamic governance costs and benefits into the analysis. The thesis consists of two parts. The first part introduces the background of the study, research objectives, an overview of the empirical studies, and the general conclusions of the study. The second part is formed of five publications. The overall results firstly indicate that although the relation between firm innovation boundary options is partly industry sector-specific, the firm level search strategies and knowledge transfer capabilities are important for innovation performance independently of the sector. Secondly, the results show that the attributes suggested by TCE alone do not offer a sufficient explanation of innovation boundary selection, especially under conditions of high levels of (radical) uncertainty. Based on the results, the dynamic governance cost and benefit framework complements the static TCE when firm innovation boundaries are scrutinized.

Integrating eco-innovation principles into regional strategy and policy: case of Päijät-Häme region, Finland

This study focuses on the integration of eco-innovation principles into strategy and policy at the regional level. The importance of regions as a level for integrating eco-innovative programs and activities served as the point of interest for this study. Eco-innovative activities and technologies are seen as means to meet sustainable development objective of improving regions’ quality of life. This study is conducted to get an in-depth understanding and learning about eco-innovation at regional level, and to know the basic concepts that are important in integrating eco-innovation principles into regional policy. Other specific objectives of this study are to know how eco-innovation are developed and practiced in the regions of the EU, and to analyze the main characteristic features of an eco-innovation model that is specifically developed at Päijät-Häme Region in Finland. Paijät-Häme Region is noted for its successful eco-innovation strategies and programs, hence, taken as casework in this study. Both primary (interviews) and secondary data (publicly available documents) are utilized in this study. The study shows that eco-innovation plays an important role in regional strategy as reviewed based on the experience of other regions in the EU. This is because of its localized nature which makes it easier to facilitate in a regional setting. Since regional authorities and policy-makers are normally focused on solving its localized environmental problems, eco-innovation principles can easily be integrated into regional strategy. The case study highlights Päijät-Häme Region’s eco-innovation strategies and projects which are characterized by strong connection of knowledge-producing institutions. Policy instruments supporting eco-innovation (e.g. environmental technologies) are very much focused on clean technologies, hence, justifying the formation of cleantech clusters and business parks in Päijät-Häme Region. A newly conceptualized SAMPO model of eco-innovation has been developed in Päijät-Häme Region to better capture the region’s characteristics and to eventually replace the current model employed by the Päijät-Häme Regional Authority. The SAMPO model is still under construction, however, review of its principles points to some of its three important spearheads – practice-based innovation, design (eco-design) and clean technology or environmental technology (environment).

Regional innovation strategies and sustainability in selected EU countries

This study focuses on regional innovation strategy (RIS) and sustainability aspects in selected regions of European Union (EU) countries. It is known that RIS helps a region to innovate locally and to compete globally and it is considered as one of the main policy tools of the EU for innovation support at a regional level. This study is conducted to explore the existence and adoption of RIS in different regions of selected EU countries, and to highlight and compare regional RIS characteristics. The study is also aimed at identifying the factors that characterise the formulation and implementation of RIS as well as the problems associated thereof. In this study, six regions of EU countries are considered: Päijät-Häme Region (Finland); London Region (United Kingdom); Mid-West Region (Ireland); Veneto Region (Italy); Eastern Region (Poland); and West Region (Romania). Data and information are collected by sending questionnaires to the respective regional authorities of these selected regions. Based on the gathered information and analysis, RIS or equivalent strategy document serves as a blueprint for forwarding innovative programmes towards regional sustainability. The objectives of RIS in these regions are found to be dependent on the priority sectors and state of the region’s development. The current environmental sustainability aspects are focused on eco-design, eco-products, and eco-innovation, although each region also has its own specific aspects supported by RIS. Likewise, regional policies typically follow the RIS yet translated in various sectoral focus or priority areas. The main enhancing factors supporting RIS among selected regions have some similarities and variations; among others, some regions are strongly supported by EU while others have support from own regional agencies, organisations and professional networks. RIS implementation is not without challenges and despite the differences in challenges, almost all of reviewed regions consider financial resource as a common problem. Generally, it is learned from this study that RIS and regional sustainability are reinforcing each other mutually. In this study, the strong focus is given towards environmental sustainability in the regions although regional sustainability also includes economic and social aspects. A well-focused and prioritised RIS is beneficial for regional sustainable development.

Of pearls and pigs : a conceptual-semantic Tiernet approach to formal representation of structure and variation of phraseological units

"Helmiä sioille", pärlor för svin, säger man på finska om någonting bra och fint som tas emot av en mottagare som inte vill eller har ingen förmåga att förstå, uppskatta eller utnyttja hela den potential som finns hos det mottagna föremålet, är ointresserad av den eller gillar den inte. För sådana relativt stabila flerordiga uttryck, som är lagrade i språkbrukarnas minnen och som demonstrerar olika slags oregelbundna drag i sin struktur använder man inom lingvistiken bl.a. termerna "idiom" eller "fraseologiska enheter". Som en oregelbundenhet kan man t.ex. beskriva det faktum att betydelsen hos uttrycket inte är densamma som man skulle komma till ifall man betraktade det som en vanlig regelbunden fras. En annan oregelbundenhet, som idiomforskare har observerat, ligger i den begränsade förmågan att varieras i form och betydelse, som många idiom har jämfört med regelbundna fraser. Därför talas det ofta om "grundform" och "grundbetydelse" hos idiom och variationen avses som avvikelse från dessa. Men när man tittar på ett stort antal förekomstexempel av idiom i språkbruk, märker man att många av dem tillåter variation, t.o.m. i sådan utsträckning att gränserna mellan en variant och en "grundform" suddas ut, och istället för ett idiom råkar vi plötsligt på en "familj" av flera besläktade uttryck. Allt detta väcker frågan om hur dessa uttryck egentligen ska vara representerade i språket. I avhandlingen utförs en kritisk granskning av olika tidigare tillvägagångssätt att beskriva fraseologiska enheter i syfte att klargöra vilka svårigheter deras struktur och variation erbjuder för den lingvistiska teorin. Samtidigt presenteras ett alternativt sätt att beskriva dessa uttryck. En systematisk och formell modell som utvecklas i denna avhandling integrerar en beskrivning av idiom på många olika språkliga nivåer och skildrar deras variation i form av ett nätverk och som ett resultat av samspel mellan idiomets struktur och kontexter där det förekommer, samt av interaktion med andra fasta uttryck. Modellen bygger på en fördjupande, språkbrukbaserad analys av det finska idiomet "X HEITTÄÄ HELMIÄ SIOILLE" (X kastar pärlor för svin).

Contemporary art galleries innovation management

This paper focuses on capabilities implemented by micro firms in actual art sector. After last two decades, since establishment of new art selling ventures has started, current art market of Russia is still in its emerging phase. Art galleries, who preserve to be the main place where the art is purchased, today have to survive in the hostile business environment. Whereas the rivalry does not affect gallery performance significantly, the major challenges for these micro firms are customer unawareness and shortages of financing. The business environment requires capabilities inherited by galleries to sustain the performance. Such capabilities may lead to innovation adoption. This paper represents the first explorative study on contemporary art market of Saint-Petersburg. In order to gain an understanding of the topic, qualitative method was chosen and in-depth interviews were done with 7 different micro firms using key informant method.

Innovation and Internationalisation in Russian Companies: Challenges and Opportunities for Open Innovation and Cooperation

Increasing globalisation and intensified cross-border cooperation, together with significant technological breakthroughs, create a fascinating gap for the research of the relationship between internationalisation and innovation on national, regional and company levels in Russia. The intensified international trade between countries and regions benefited from favourable institutional conditions, and facilitated the technology transfer and the development of innovations on the national level. This study approaches the same question from the company perspective; if certain companies are more innovative than other domestic companies, will they start internationalisation more easily or get involved in cooperation with international stakeholders? When companies operate in international markets, how do they obtain knowledge? Moreover, would this new knowledge from the foreign market help then to increase innovativeness, competitiveness and develop operations in domestic/local and foreign markets? Considering the role of foreign direct investments (FDI), the research in hand tries to find out the role of companies with FDI on the other players on the home market. Do foreigners bring new technology, innovation to the country? Is there spillover effect observed and how local companies can benefit from them? This dissertation studies the internationalisation and innovation in Russian companies, both from the outward internationalisation and inward internationalisation perspectives. Russian companies developed quickly during the transition period, after the dissolution of the Soviet Union. The common background of these companies, the effects of the change of ownership, and some managerial difficulties make them more sensitive to competitions issues, and in this context, the opportunities brought by the developing innovations are seen in companies and on the governmental level.