Knowledge acquisition in international strategic alliances among Malaysian manufacturing firms

This thesis examines the process of knowledge acquisition by Malaysian manufacturing firms through their involvement in international strategic alliances. The strategic alliances can be with or without equity involvement. Firms involved with a foreign partner with equity involvement are joint venture firms while non-equity involvement are firms that engaged in contractual agreements. Using empirical evidence from 65 international alliances gathered through a survey conducted in high-technology manufacturing sectors, several factors that influence the process of knowledge acquisition are examined. The factors are: learning capacity, experience, goals, active involvement and accessibility to the foreign knowledge. Censored regression analysis and ordered probit analysis are used to analyse the effects of these factors on knowledge acquisition and its determinant parts, and the effects of knowledge acquisition and its determinants on the performance of the alliances. A second questionnaire gathered evidence relating to the factors, which encouraged tacit knowledge transfer between the foreign and Malaysian partners in international alliances. The key findings of the study are: knowledge acquisition in international strategic alliances is influenced by five determining factors; learning capacity, experience, articulated goals, active involvement and accessibility; new technology knowledge, product development knowledge and manufacturing process knowledge are influenced differently by the determining factors; knowledge acquisition and its determinant factors have a significant impact on the firm’s performance; cultural differences tend to moderate the effect on the firm’s performance; acquiring tacit knowledge is not only influenced by the five determinant factors but also by other factors, such as dependency, accessibility, trust, manufacturing control, learning methods and organisational systems; Malaysian firms involved in joint ventures tend to acquire more knowledge than those involved in contractual agreements, but joint ventures also exhibit higher degrees of dependency than contractual agreements; and the presence of R&D activity in the Malaysian partner encourages knowledge acquisition, but the amount of R&D expenditure has no effect on knowledge acquisition.

External linkages, R&D and innovation performance in US business services

This paper examines the innovation performance of 206 US business services firms. Results suggest that external linkages, particularly with customers, suppliers and strategic alliances, significantly enhance innovation performance in terms of the introduction of new services. A highly qualified workforce increases the probability of service and organizational innovation, and increases the extent of a firm's innovation, but unqualified employees also play an important role. Contrasting with some earlier research on services, the presence of formal and informal R&D significantly increases the extent of new-to-market and new-to-firm innovation.

Customer-driven innovation within U.S. business services and its impact on firm performance

This thesis examines the innovative performance of 206 U.S. business service firms. Undeniably, a need exists for better comprehension of the service sector of developed economies. This research takes a unique view by applying a synthesis approach to studying innovation and attempts to build under a proposed strategic innovation paradigm. A quantitative method is utilised via questionnaire in which all major types of innovation are under examination including: product and service, organisational, and technology-driven innovations. Essential ideas for this conceptual framework encapsulate a new mode of understanding service innovation. Basically, the structure of this analysis encompasses the likelihood of innovation and determining the extent of innovation, while also attempting to shed light on the factors which determine the impact of innovation on performance among service firms. What differentiates this research is its focus on customer-driven service firms in addition to other external linkages. A synopsis of the findings suggest that external linkages, particularly with customers, suppliers and strategic alliances or joint ventures, significantly affect innovation performance with regard to the introduction of new services. Service firms which incorporate formal and informal R&D experience significant increases in the extent of new-to-market and new-to-firm innovations. Additionally, the results show that customer-driven service firms experience greater productivity and growth. Furthermore, the findings suggest that external linkages assist service firm performance.

Strategic marketing and e-business

The dramatic growth in e-business is manifest in phenomena such as the surge in internet retailing, the boom in social media based marketing communications, and the centrality of e-commerce to many organizations’ core strategies. Despite this the precise implications of e-business for marketing strategy remain little-understood. In order to guide theory development and practice in the marketing strategy domain, it is of fundamental importance to take stock of the impact that e-business has had upon strategic marketing. Therefore, this chapter develops a conceptual framework in order to explicate the implications of e-business for strategic marketing theory and practice. We find that the impact of e-business on strategic marketing is far-reaching; influencing not only isolated departments, but the organization as a whole. Finally, we conclude that whilst organizations should be alert to the dynamic opportunities and threats posed by e-business, the guiding principle of value creation should not be forgotten.

The Japanisation process in Malaysia

This thesis examines the empirical evidence for the transferability of Japanese soft technology (JST) or Japanese work organisation within two government-initiated, Malaysian-Japanese strategic alliances: PROTON and PERNEC. The government, through its Look East Policy (LEP) began in 1982, taking Japan (and South Korea) as models and partners in Malaysian economic and industrial development process, and expected these alliances to learn the good aspects of Japanese work organisations and management styles in order for them to become independent companies, both technologically and economically. The thesis found that the alliances have been successfully taking and utilising Japanese parts, components, tools, robots and machines; i.e. the 'ready-made hard technology'. [Whereas the important element of soft technology has been ignored]. The soft technology has been slowly and marginally transferred because neither local parties nor their Japanese counterparts within the alliances consider the acquisition or transfer of soft technology to be the main concern or a part of business plan. Although many factors influence management transfer, the thesis has focused on the eagerness and the capability of Malaysian managerial teams to acquire and, to a lesser extent, the readiness of the Japanese to transfer the technology. It was found that there is a lack of demand on technology acquisition by Malaysian managers and lack of responsibility to transfer the technology among Japanese experts. However, the political and social pressures on these alliances, the industrial climate and labour market, leaderships and management system of alliances, and Japanese MNCs regional and global corporate strategies have contributed to the high level of transfer of JST at PROTON compared to PERNEC. The research also found that Malaysian industrial and investment policies have favoured foreign investment but there is a lack of strategies for nurturing indigenous technological development.On the other hand the Japanese MNCs and public agencies have been operating in Malaysia and guided by their regional and global corporate strategies and less concerned with Malaysian technological development. In conclusion, empirically, the JST transfer is minimal. The transfer has been influenced by internal contingency factors of organisation; external industrial, political and cultural environmental factors; and last but not least the Japanese MNCs' global and regional corporate strategies. The transfer of Japanese management in this research is inclined towards core-periphery transfer model, it is also related to organisational and national technological capability.

Openness, knowledge, innovation and growth in UK business services

We explore the causal links between service firms' knowledge investments, their innovation outputs and business growth based on a bespoke survey of around 1100 UK service businesses. We combine the activity based approach of the innovation value chain with firms' external links at each stage of the innovation process. This introduces the concept of 'encoding' relationships through which learning improves the effectiveness of firms' innovation processes. Our econometric results emphasise the importance of external openness in the initial, exploratory phase of the innovation process and the significance of internal openness (e.g. team working) in later stages of the process. In-house design capacity is strongly linked to a firm's ability to absorb external knowledge for innovation. Links to customers are important in the exploratory stage of the innovation process, but encoding linkages with private and public research organisations are more important in developing innovation outputs. Business growth is related directly to both the extent of firms' service innovation as well as the diversity of innovation, reflecting marketing, strategic and business process change.

B2B e-marketplaces in the airline industry:process drivers and performance indicators

Competitive pressures are increasing within and between different strategically oriented groups of airlines. This paper focuses on the level of efficiency improvements gained by using e-Marketplaces in the procurement process. Findings from a survey among 88 international airlines reveal that the use of Business-to-Business (B2B) e-Marketplaces does play different roles across the various airline groupings. Airlines that are involved in strategic alliances show higher joint procurement activities than airlines that are not involved in strategic alliances. However, alliances are probably viewed as loose arrangements and thus airlines may be reluctant to share information on procurement prices and processes with another airline that could also be acting as a competitor. The financial involvement in or initiation of e-Marketplaces by airlines is very low. Low cost airlines show high use of e-Marketplaces, but demonstrate little financial involvement in contrast. Overall, the categories of spares and repairs, office supplies, tools and ground support equipment (GSE) show the greatest potential for reducing costs and increasing procurement process efficiencies. The intense competitive pressures facing carriers will make their search for tools to realise even incremental savings and efficiency gains ever more urgent. There is evidence that e-Marketplaces are one tool to improve such performance indicators.

The strategic role of relational capabilities in the business-to-business service profit chain

This paper extends the original service profit chain by examining the role of relational capabilities with employees, customers and strategic partners on process and performance outcomes in a business-to-business context. More specifically, we demonstrate how satisfied and loyal employees are better in developing relationships with customers and strategic partners. These relationships enable firms to be more responsive towards customers and become more innovative, which increase customer satisfaction and loyalty and, ultimately, financial performance. Our results provide support for the development of relational capabilities in a business-to-business environment by extending the service profit chain (SPC) model. However, we find that while the development of strong customer relationships contributes to an improved service responsiveness of the firm, strategic partners do not.

Business privilege and the strategic planning agenda of the Greater London Authority

The establishment of the Greater London Authority (GLA) in 2000 brought a new form of politics to London and new powers to formulate strategic policy. Through an investigation of the access of business interests in the formulation of London's strategic agenda, this article illuminates one aspect of the pressures on city government. It uses the urban regime approach as a framework for analysing the co-operation between the Mayor and business interests in shaping strategic priorities. Although there was a surrounding rhetoric that pointed towards a greater consensus-seeking approach, the business sector was very active in maintaining its privileged access. Strategic priorities were established in the GLA's first year and were then subsequently embodied in the London Plan. Our analysis is based on a detailed examination of this agenda-setting period using material from meetings, written reports and interviews with key actors. © 2005 The Editors of Urban Studies.

Strategic marketing and business performance:a study in three European 'engineering countries'

In spite of its relevance, the effects of strategic marketing on business performance are sparingly studied, especially in particular business contexts. We address this gap in two ways. First, we examine the influence of four key strategic marketing concepts—market orientation, innovation orientation, and two marketing capability categories (outside-in and inside-out capabilities)—on company performance. Second, these relationships are studied in three European “engineering countries:” Austria, Finland and Germany. Their relative homogeneity enables testing the generality versus context-specificity of strategic marketing's performance impact. Using SEM analysis, surprisingly weak relationships between market orientation and outside-in capabilities, and business performance are identified, as opposed to the strong role of inside-out capabilities and innovation orientation. These results can be understood through the “engineering country” characteristics. Moreover, clear differences in results are identified among these relatively homogenous countries. This is a major finding as it challenges the widely assumed generality of the strategic marketing–performance relationship. Country-specific results have also considerable managerial relevance.

Local skirmishes in the contruction of (global) digital business communication technologies

This paper applies Latour’s 1992 translation map as a device to explore the development of and recent conflict between two data standards for the exchange of business information – EDIFACT and XBRL. Our research is focussed in France, where EDIFACT is well established and XBRL is just emerging. The alliances supporting both standards are local and global. The French/European EDIFACT is promulgated through the United Nations while a consortium of national jurisdictions and companies has coalesced around the US initiated XBRL International (XII). We suggest cultural differences pose a barrier to co-operation between the two networks. Competing data standards create the risk of switching costs. The different technical characteristics of the standards are identified as raising implications for regulators and users. A key concern is the lack of co-ordination of data standard production and the mechanisms regulatory agencies use to choose platforms for electronic data submission.

Linking performance-related pay to a Business School's mission and objectives

This paper first analyses the Performance Related Pay (PRP) schemes developed from 1992/3 to 2002/3 in a large Business School in England and then the School’s mission and strategic objectives in that period. The PRP schemes changed to include more specific performance indicators and these were increasingly linked to the objectives. The School’s resources allocated to PRP increased from £44,000 in 1992/93 to £355,000 in 2002/3 and from 1.08% in 1995/96 to 2.37% of the School’s income in 2002/3. As well as examining the changing strategic objectives and PRP schemes, the paper charts the development of the School’s reputation and resources and the role which staff motivation via PRP played at different stages. The paper concludes that the PRP scheme was at its most effective when it was clearly linked with the School’s strategic objectives, but that the relationship between objectives and motivation may be more complex than apparent from this study. Although the PRP scheme under consideration also applies to academic related staff, this paper concentrates on the effect on academic staff.

Business strategy and the environment in a traditional manufacturing sector

This research is concerned with the relationship between business strategy and the environment within traditional sectors. It has sought to learn more about the strategic environmental attitudes of SMEs compared with large companies operating under the same market conditions. The sector studied is the ceramics industry (including tableware & ornamental-ware, sanitary ware & tiles, bricks, industrial & advanced ceramics and refractories) in the UK and France. Unlike the automotive, oil, chemical, steel or metal processing sectors, this industry is one of the few industrial sectors which has rarely been considered. The information on this sector was gathered by interviewing people responsible for environmental issues. The actual programme of valid interviews represents approximately a quarter of the UK and French ceramics industry which is large enough to enable a quantitative analysis and significant and non-biased conclusions. As a whole, all companies surveyed agreed that the ceramics activity impacts on the environment, and that they are increasingly affected both by environmental legislation, and by various non-legislative pressures. Approaches to the environmental agenda differ significantly among large and small companies. Smaller companies feel particularly pressed both by the financial costs and management time required to meet complex and changing legislation. The results of this survey also suggest that the ceramics industry sees environmental issues in terms of increased costs rather than new business opportunities. This is due principally to fears of import substitution from countries with lower environmental standards. Finally, replies indicate that generally there is a low level of awareness of the current legislative framework, suggesting a need to shift from a regulatory approach to a more self-regulated approach which encourages companies to be more proactive