Convergence in Industry Evolution

The objective of the thesis is to enhance understanding of the evolution of convergence. Previous research has shown that the technological interfaces between distinct industries are one of the major sources of new radical cross-industry innovations. Despite the fact that convergence in industry evolution has attracted a substantial managerial interest, the conceptual confusion within the field of convergence exists. Firstly, this study clarifies the convergence phenomenon and its impact to industry evolution. Secondly, the study creates novel patent analysis methods to analyze technological convergence and provide tools for anticipating the early stages of convergence. Overall the study combines the industry evolution perspective and the convergence view of industrial evolution. The theoretical background for the study consists of the industry life cycle theories, technology evolution, and technological trajectories. The study links several important concepts in analyzing industry evolution, technological discontinuities, path-dependency, technological interfaces as a source of industry transformation, and the evolutionary stagesof convergence. Based on reviewing the literature a generic understanding of industry transformation and industrial dynamics was generated. In the convergence studies, the theoretical basis is in the discussion of different convergence types and their impacts on industry evolution, and in anticipating and monitoring the stages of convergence. The study is divided in two parts. The first part gives a general overview, and the second part comprises eight research publications. Our case study is based historically on two very distinct industries of the paper and electronics companies as a test environment to evaluate the importance of emerging business sectors and technological convergence as a source of industry transformation. Both qualitative and quantitative research methodology are utilized. The results of this study reveal that technological convergence and complementary innovations from different fields have significant effect to the emerging new business sector formation. The patent-based indicators in the analysis of technological convergence can be utilized on analyzing technology competition, capability and competence development, knowledge accumulation, knowledge spill-overs, and technology-based industry transformation. The patent-based indicators can provide insights to the future competitive environment. Results and conclusions from empirical part seem not be in conflict with real observations in the industry.

Industry evolution and cross-sectoral skill transfers:a comparative analysis of the video game industry in Japan, the United States, and the United Kingdom

In this paper we explore the interrelationship between technological progress and the formation of industry-specific skills by analysing the evolution of the video-game industry in three countries: Japan, the United States, and the United Kingdom. We argue that the cross-sectoral transfer of skills occurs differently depending on national contexts, such as the social legitimacy and strength of preexisting industries, the socioeconomic status of entrepreneurs or pioneer firms in an emerging industry, and the sociocultural cohesiveness between the preexisting and emerging industries. Each country draws on a different set of creative resources, which results in a unique trajectory. Whereas Japan's video-game industry emerged out of corporate sponsorships in arcades, toys, and consumer electronics industries and drew skills from the comic book and animated-film sectors, the video-game industry in the United States evolved from arcades and personal computers. In the United Kingdom the video-game industry developed bottom-up, through a process of skills formation in the youth culture of 'bedroom coders' that nurtured self-taught programmers in their teens throughout the country.

Scenario method in anticipating future opportunities of e-business in the forest industry

Tutkimuksen tavoitteena on ennakoida liiketoimintaprosessien sähköistymisen kehittymistä käyttämällä skenaariomenetelmää, yhtä laajimmin käytetyistä tulevaisuuden tutkimisen menetelmistä. Tarkastelun kohteena ovat erityisesti tulevaisuuden e-business -ratkaisut metsäteollisuudessa. Tutkimuksessa selvitetään skenaariomenetelmän ominaisuuksia, skenaariosuunnittelun periaatteita sekä menetelmän sopivuutta teknologian ja toimialan muutosten tarkasteluun. Tutkimuksen teoriaosassa selvitetään teknologian muutoksen vaikutusta toimialojen kehitykseen. Todettiin, että teknologisella muutoksella on vahva vaikutus toimialojen muutoksiin, ja että jokainen toimiala seuraa tietynlaista kehitystrajektoria. Yritysten tulee olla tietoisia teknologisen muutoksen nopeudesta ja suunnasta, ja seurata toimialansa kehityksen sääntöjä. Metsäteollisuudessa muutosten radikaali luonne sekä ICT-teknologian nopea kehitys asettavat haasteita liiketoimintaprosessien sähköistämisen kentässä. Empiriaosuudessa luotiin kolme erilaista skenaariota e-busineksen tulevaisuudesta metsäteollisuudessa. Skenaariot perustuvat pääosin aiheen asiantuntijoiden tämän hetkisiin näkemyksiin, joita koottiin skenaariotyöpajassa. Skenaarioiden muodostamisessa yhdistettiin kvalitatiivisia ja kvantitatiivisia elementtejä. Muodostetut kolme skenaariota osoittavat, että e-busineksen vaikutukset tulevaisuudessa nähdään pääosin positiivisina, ja että yritysten tulee kehittyä aktiivisesti ja joustavasti pystyäkseen hyödyntämään sähköisiä ratkaisuja tehokkaasti liiketoiminnassaan.

Change of Electricity Distribution Industry: Drivers and Opening Business Opportunities

As a result of the recent regulatory amendments and other development trends in the electricity distribution business, the sector is currently witnessing radical restructuring that will eventually impact the business logics of the sector. This report represents upcoming changes in the electricity distribution industry and concentrates on the factors that are expected to be the most fundamental ones. Electricity network companies nowadays struggle with legislative and regulatory requirements that focus on both the operational efficiency and the reliability of electricity distribution networks. The forces that have an impact on the distribution network companies can be put into three main categories that define the transformation at a general level. Those are: (1) a requirement for a more functional marketplace for energy, (2) environmental aspects (combating climate change etc.), and (3) a strongly emphasized requirement for the security of energy supply. The first point arises from the legislators’ attempt to increase competition in electricity retail markets, the second one concerns both environmental protection and human safety issues, and the third one indicates societies’ reduced willingness to accept interruptions in electricity supply. In the future, regulation of electricity distribution business may lower the threshold for building more weather-resistant networks, which in turn means increased underground cabling. This development pattern is reinforced by tightening safety and environmental regulations that ultimately make the overhead lines expensive to build and maintain. The changes will require new approaches particularly in network planning, construction, and maintenance. The concept for planning, constructing, and maintaining cable networks is necessary because the interdependencies between network operations are strong, in other words, the nature of the operation requires a linkage to other operations.

Theoretical background for market emergence framework : Case: Electricity Distribution Industry

Both the competitive environment and the internal structure of an industrial organization are typically included in the processes which describe the strategic management processes of the firm, but less attention has been paid to the interdependence between these views. Therefore, this research focuses on explaining the particular conditions of an industry change, which lead managers to realign the firm in respect of its environment for generating competitive advantage. The research question that directs the development of the theoretical framework is: Why do firms outsource some of their functions? The three general stages of the analysis are related to the following research topics: (i) understanding forces that shape the industry, (ii) estimating the impacts of transforming customer preferences, rivalry, and changing capability bases on the relevance of existing assets and activities, and emergence of new business models, and (iii) developing optional structures for future value chains and understanding general boundaries for market emergence. The defined research setting contributes to the managerial research questions “Why do firms reorganize their value chains?”, “Why and how are decisions made?” Combining Transaction Cost Economics (TCE) and Resource-Based View (RBV) within an integrated framework makes it possible to evaluate the two dimensions of a company’s resources, namely the strategic value and transferability. The final decision of restructuring will be made based on an analysis of the actual business potential of the outsourcing, where benefits and risks are evaluated. The firm focuses on the risk of opportunism, hold-up problems, pricing, and opportunities to reach a complete contract, and finally on the direct benefits and risks for financial performance. The supplier analyzes the business potential of an activity outside the specific customer, the amount of customer-specific investments, the service provider’s competitive position, abilities to revenue gains in generic segments, and long-term dependence on the customer.

From evolution to co-evolution – An empirical study of the role of innovation, policy and public research in industrial dynamics

In the past decades since Schumpeter’s influential writings economists have pursued research to examine the role of innovation in certain industries on firm as well as on industry level. Researchers describe innovations as the main trigger of industry dynamics, while policy makers argue that research and education are directly linked to economic growth and welfare. Thus, research and education are an important objective of public policy. Firms and public research are regarded as the main actors which are relevant for the creation of new knowledge. This knowledge is finally brought to the market through innovations. What is more, policy makers support innovations. Both actors, i.e. policy makers and researchers, agree that innovation plays a central role but researchers still neglect the role that public policy plays in the field of industrial dynamics. Therefore, the main objective of this work is to learn more about the interdependencies of innovation, policy and public research in industrial dynamics. The overarching research question of this dissertation asks whether it is possible to analyze patterns of industry evolution – from evolution to co-evolution – based on empirical studies of the role of innovation, policy and public research in industrial dynamics. This work starts with a hypothesis-based investigation of traditional approaches of industrial dynamics. Namely, the testing of a basic assumption of the core models of industrial dynamics and the analysis of the evolutionary patterns – though with an industry which is driven by public policy as example. Subsequently it moves to a more explorative approach, investigating co-evolutionary processes. The underlying questions of the research include the following: Do large firms have an advantage because of their size which is attributable to cost spreading? Do firms that plan to grow have more innovations? What role does public policy play for the evolutionary patterns of an industry? Are the same evolutionary patterns observable as those described in the ILC theories? And is it possible to observe regional co-evolutionary processes of science, innovation and industry evolution? Based on two different empirical contexts – namely the laser and the photovoltaic industry – this dissertation tries to answer these questions and combines an evolutionary approach with a co-evolutionary approach. The first chapter starts with an introduction of the topic and the fields this dissertation is based on. The second chapter provides a new test of the Cohen and Klepper (1996) model of cost spreading, which explains the relationship between innovation, firm size and R&D, at the example of the photovoltaic industry in Germany. First, it is analyzed whether the cost spreading mechanism serves as an explanation for size advantages in this industry. This is related to the assumption that the incentives to invest in R&D increase with the ex-ante output. Furthermore, it is investigated whether firms that plan to grow will have more innovative activities. The results indicate that cost spreading serves as an explanation for size advantages in this industry and, furthermore, growth plans lead to higher amount of innovative activities. What is more, the role public policy plays for industry evolution is not finally analyzed in the field of industrial dynamics. In the case of Germany, the introduction of demand inducing policy instruments stimulated market and industry growth. While this policy immediately accelerated market volume, the effect on industry evolution is more ambiguous. Thus, chapter three analyzes this relationship by considering a model of industry evolution, where demand-inducing policies will be discussed as a possible trigger of development. The findings suggest that these instruments can take the same effect as a technical advance to foster the growth of an industry and its shakeout. The fourth chapter explores the regional co-evolution of firm population size, private-sector patenting and public research in the empirical context of German laser research and manufacturing over more than 40 years from the emergence of the industry to the mid-2000s. The qualitative as well as quantitative evidence is suggestive of a co-evolutionary process of mutual interdependence rather than a unidirectional effect of public research on private-sector activities. Chapter five concludes with a summary, the contribution of this work as well as the implications and an outlook of further possible research.

Industry analysis of the high frequency trading industry : an assessment of the industry boundaries, environment and strategic options

O Mercado Acionário Americano evoluiu rapidamente na última década. Este tornou-se uma arquitetura aberta em que participantes com tecnologia inovadora podem competir de forma eficaz. Várias mudanças regulatórias e inovações tecnológicas permitiram mudanças profundas na estrutura do mercado. Essas mudanças, junto com o desenvolvimento tecnológico de redes de alta velocidade, agiu como um catalisador, dando origem a uma nova forma de negociação, denominada Negociação em Alta Frequência (HFT). As empresas de HFT surgiram e se apropriaram em larga escala do negócio de formação de mercado, no fornecimento de liquidez. Embora HFT tem crescido massivamente, ao longo dos últimos quatro anos, HFT perdeu rentabilidade significativamente, uma vez que mais empresas aderiram ao setor reduzindo as margens. Portanto, diante deste contexto, esta tese buscou apresentar uma breve revisão sobre a atividade de HFT, seguida de uma análise dos limites deste setor, bem como, das características do macroambiente do HFT. Para tanto, a tese realizou uma extensa revisão do histórico literário, documentos públicos qualitativos, tais como, jornais, atas de reunião e relatórios oficiais. A tese empregou um ferramental de análise, Barreiras de Entrada e Mobilidade (Porter, 1980); Modelos de Evolução Setorial (McGahan, 2004); Estrutura do Setor de Informação Intensiva (Sampler, 1998), para analisar os limites do setor de HFT. Adicionalmente, empregou as ferramentas de análise, Modelos de Evolução Setorial (McGahan, 2004) e PESTEL (JOHNSON, SCHOLES, and WHITTINGTON, 2011), para analisar o setor e o contexto que envolve o negócio de HFT. A análise concluiu que as empresas que empregam HFT para atuar e competir no mercado acionário, compoem um setor independente.

The growth and diffusion of knowlegde and the theory of the firm

We analyze the implications of a market imperfection related to the inability to establish intellectual property rights, that we label {\it unverifiable communication}. Employees are able to collude with external parties selling ``knowledge capital'' of the firm. The firm organizer engages in strategic interaction simultaneously with employees and competitors, as she introduces endogenous transaction costs in the market for information between those agents. Incentive schemes and communication costs are the key strategic variables used by the firm to induce frictions in collusive markets. Unverifiable communication introduces severe allocative distortions, both at internal product development and at intended sale of information (technology transfer). We derive implications of the model for observable decisions like characteristics of the employment relationship (full employment, incompatibility with other jobs), firms' preferences over cluster characteristics for location decisions, optimal size at entry, in--house development vs sale strategies for innovations and industry evolution.

Internacioanlização de pequena empresa brasileira de base tecnológica: Caso Pipeway Engenharia Limitada

O objetivo desta dissertação é verificar a aderência de atividades desenvolvidas por uma empresa prestadora de serviços de base tecnológica, atuante na área de petróleo, gás e energia, a Pipeway Engenharia Limitada , aos conceitos teóricos do Paradigma Novas Empresas Internacionais - NEI (RENNIE,1993; MCDOUGALL et. Al., 1994) durante seu processo de internacionalização. Trata-se de um estudo que assume, para o autor, uma relevância significativa, já que a compreensão do processo de internacionalização da empresa analisada, considerada de porte pequeno, permitirá que suas atividades profissionais venham a ser desenvolvidas com melhor compreensão das necessidades, exigências e soluções que esse tipo de empresa requer para a sua internacionalização. Para atingir o objetivo proposto, a metodologia utilizada foi o estudo de caso único em função, assim definido, por um lado, pelo fato de não existir no Brasil uma quantidade importante de empresas com características semelhantes à estudada e, por outro, por ser um método que se aplica, quando se deseja ter respostas a questões, tais como: “como” e “por que”, permitindo a compreensão de fenômenos individuais. Para compreender melhor a evolução do setor de serviços nos mercados internacionais foi necessário fazer um estudo sucinto, baseado em análises documental e bibliográfica, para determinar a evolução e importância do mesmo como fator gerador de riqueza, inovação e sustentação do desenvolvimento empresarial. Considerando que a empresa analisada foca seu trabalho no segmento de petróleo e gás, para melhor compreensão desse segmento econômico, foi realizada análise tanto de âmbito nacional como internacional, de sua atual conformação e situação, pois, diferentemente de outros segmentos internacionais, as empresas que neles desenvolvem suas atividades se deparam com mercados mais abertos e globalizados e essas características têm impacto significativo na empresa analisada. A junção da primeira com a segunda análise permitiu avaliar o grau de competitividade e demais parâmetros a que a empresa estudada teve que atender para ser considerada ou não um Novo Empreendimento Internacional. Posteriormente, com os preceitos metodológicos de estudo de caso, acrescidos dos dados obtidos na pesquisa documental e entrevistas com a alta gerência da empresa, foi efetuado um relato historiográfico da evolução do processo de internacionalização da empresa, destacando os eventos e fatos que possibilitaram verificar a aderência, ou não, aos pressupostos do paradigma NEI. Por fim, foi investigada a evolução internacional da empresa à luz dos critérios de análise, diretamente relacionados com princípios do Paradigma NEI, o que permitiu no capitulo seguinte, vinculado às conclusões em forma empírica, que o processo de internacionalização da Pipeway responde na sua totalidade às características do Paradigma NEI. Um exemplo é a data de início da internacionalização e relação entre as receitas de exportação e faturamento total. Também são apresentadas sugestões para o desenvolvimento de pesquisas futuras, aprimoramento dos programas governamentais de apoio ao processo de internacionalização de Pequenas Empresas e desempenho profissional do autor

Indicadores para gestão empresarial no setor sucroalcooleiro

Pós-graduação em Agronomia (Energia na Agricultura) - FCA

Measuring the Social Identity of Entrepreneurs: Scale Development and International Validation

Recent research indicates that social identity theory offers an important lens to improve our understanding of founders as enterprising individuals, the venture creation process, and its outcomes. Yet, further advances are hindered by the lack of a valid scale that could be used to measure founders' social identities - a problem that is particularly severe because social identity is a multidimensional construct that needs to be assessed properly so that organizational phenomena can be understood. Drawing on social identity theory and the systematic classification of founders' social identities (Darwinians, Communitarians, Missionaries) provided in Fauchart and Gruber (2011), this study develops and empirically validates a 12-item scale that allows scholars to capture the multidimensional nature of social identities of entrepreneurs. Our validation tests are unusually comprehensive and solid, as we not only validate the developed scale in the Alpine region (where it was originally conceived), but also in 12 additional countries and the Anglo-American region. Scholars can use the scale to identify founders' social identities and to relate these identities to micro-level processes and outcomes in new firm creation. Scholars may also link founders' social identities to other levels of analysis such as industries (e.g., industry evolution) or whole economies (e.g., economic growth).

Innovación social: una reflexión sobre los beneficios en su implementación en el Estado colombiano.

La innovación social es un tipo de innovación que promueve la búsqueda de soluciones enfocadas a los problemas que se presentan en la sociedad. Estas soluciones generan además un valor agregado que ayudan al crecimiento del país. En Colombia este tipo de iniciativas han empezado a tener una gran importancia y han empezado a promover condiciones de vida más favorables y justas que buscan generar un beneficio a la sociedad y contribuir al desarrollo del país. A partir de la historia de la innovación social, ejemplos y grandes literatos en la administración y la sociología, comprenderemos la importancia de la innovación en nuestro país.