Electronic commerce investments, the resource-based view of the firm, and firm market value

Firms have embraced electronic commerce as a means of doing business, either because they see it as a way to improve efficiency, grow market share, expand into new markets, or because they view it as essential for survival. Recent research in the United States provides some evidence that the market does value investments in electronic commerce. Following research that suggests that, in certain circumstances, the market values noninnovative investments as well as innovative investments in new products, we partition electronic commerce investment project announcements into innovative and noninnovative to determine whether there are excess returns associated with these types of announcements. Apart from our overall results being consistent with the United States findings that the market values investments in electronic commerce projects, we also find that noninnovative investments are perceived as more valuable to the firm than innovative investments. On average, the market expects innovative investments to earn a return commensurate with their risk. We conclude that innovative electronic commerce projects are most likely seen by the capital market as easily replicable, and consequently have little, if any, competitive advantage period. On the other hand, we conclude from the noninnovative investment results that these types of investments are seen as being compatible with a firm's assets-in-place, in particular, its information technology capabilities, a view consistent with the resource-based view of the firm.

Institutional governance systems and variations in national competitive advantage: An integrative framework

Creating competitive industries has become one of the key tasks of governments. Different adaptation outcomes in industries across nations cannot be accounted for fully simply by an emphasis on firm-level capabilities, market-driven policies, or state-level policies. We propose an integrative framework that draws on both the strategic management and political economy literature to explain variations in national industrial competitiveness.. We discuss differences with respect to institutional characteristics and capabilities, competitive outcomes, conditions of best fit, and who bears the cost of industry adaptation.

Diffusion of n-decane in mesoporous MCM-41 silicas

We investigate here the diffusion of n-decane in nanoporous MCM-41 silicas with pore diameters between 3.0 and 4.3 nm, and at various temperatures and purge flow rates, by the Zero Length Column method. A complete-time-range analysis of desorption curves is used to derive the diffusion coefficient, and the effect of pore size, purge flow rate and temperature on the diffusion character is systematically studied. The results show that the calculated low-coverage diffusivity values are strongly dependent on temperature but only weakly dependent on pore size. The study reveals that transport is controlled by intracrystalline diffusion and dominated by sorbate-sorbent interaction, with the experimental isosteric heat matching the potential energy of flat-lying n-decane molecules on the surface, determined using a united atom model. The diffusion activation energy and adsorption isosteric heat at zero loading for the different pore size MCM-41 samples vary in a narrow range respectively, and their ratio is essentially constant over the pore size range studied. The study shows that the ZLC method is an effective tool to investigate the diffusion kinetics of hydrocarbons in mesoporous MCM-41 materials. (c) 2005 Elsevier Inc. All rights reserved.

Dual paths to performance: the impact of global pressures on MNC subsidiary conduct and performance

Over the last decade, the international business literature has placed ever-greater emphasis on the role that learning and innovation play in determining multinational and multinational subsidiary performance. The present research seeks to understand the organizational paths leading to such desirable outcomes as greater learning, increased innovation and improved performance. Using a model tested with data collected through a survey of managers in subsidiaries of multinational firms, we find dual, independent paths to improved performance - one through networking and inter-unit learning and the other through subsidiary autonomy and innovation. A particular feature of these findings is that they can be shown to be robust after controlling for a wide range of environmental pressures and firm and industry factors. However, in the absence of environmental controls the dual path finding is rejected. These conflicting findings support the imperative to test models that include a diverse range of environmental pressures so that the true effects of organizational factors on learning, innovation and performance can be identified.

Seeing music performance: Visual influences on perception and experience

Drawing from ethnographic, empirical, and historical/cultural perspectives, we examine the extent to which visual aspects of music contribute to the communication that takes place between performers and their listeners. First, we introduce a framework for understanding how media and genres shape aural and visual experiences of music. Second, we present case studies of two performances, and describe the relation between visual and aural aspects of performance. Third, we report empirical evidence that visual aspects of performance reliably influence perceptions of musical structure (pitch related features) and affective interpretations of music. Finally, we trace new and old media trajectories of aural and visual dimensions of music, and highlight how our conceptions, perceptions and appreciation of music are intertwined with technological innovation and media deployment strategies.

The role of technology in the shift towards open innovation: the case of Procter & Gamble

As with all new ideas, the concept of Open Innovation requires extensive empirical investigation, testing and development. This paper analyzes Procter and Gamble's 'Connect and Develop' strategy as a case study of the major organizational and technological changes associated with open innovation. It argues that although some of the organizational changes accompanying open innovation are beginning to be described in the literature, more analysis is warranted into the ways technological changes have facilitated open innovation strategies, particularly related to new product development. Information and communications technologies enable the exchange of distributed sources of information in the open innovation process. The case study shows that furthermore a suite of new technologies for data mining, simulation, prototyping and visual representation, what we call 'innovation technology', help to support open innovation in Procter and Gamble. The paper concludes with a suggested research agenda for furthering understanding of the role played by and consequences of this technology.

The evolving role of research consortia in East Asia

Research consortia have played an important role in the economic success of several East Asian countries. This paper looks at the ways these consortia - which are created for strategic rather than cost-saving purposes - have evolved over time. Three models for institutional learning are suggested, and three case studies are presented of research consortia in each model. The cases demonstrate the centrality of learning in facilitating the development then transition from innovation diffusion capabilities to innovation generation capabilities in East Asian firms. Cases are provided of the Samsung Electronics in Korea, the clusters of firms that are associated with ITRI in Taiwan, and the technological development of Ericsson China. Reference is made to the use of institutional innovations in the East Asian context such as patent pools that supplement more conventional forms of R&D collaboration.

Cluster measurement and benchmarking - A recent Welsh approach

Drawing on extensive academic research and theory on clusters and their analysis, the methodology employed in this pilot study (sponsored by the Welsh Assembly Government’s Economic Research Grants Assessment Board) seeks to create a framework for reviewing and monitoring clusters in Wales on an ongoing basis, and generate the information necessary for successful cluster development policy to occur. The multi-method framework developed and tested in the pilot study is designed to map existing Welsh sectors with cluster characteristics, uncover existing linkages, and better understand areas of strength and weakness. The approach adopted relies on synthesising both quantitative and qualitative evidence. Statistical measures, including the size of potential clusters, are united with other evidence on input-output derived inter-linkages within clusters and to other sectors in Wales and the UK, as well as the export and import intensity of the cluster. Multi Sector Qualitative Analysis is then designed for competencies/capacity, risk factors, markets, types and crucially, the perceived strengths of cluster structures and relationships. The approach outlined above can, with the refinements recommended through the review process, provide policy-makers with a valuable tool for reviewing and monitoring individual sectors and ameliorating problems in sectors likely to decline further.