J. Open Innov. Technol. Mark. Complex., Volume 2, Issue 3 (September 2016) – 11 articles

In this study, the investigation into basic methodology for selecting the industrial areas suitable to the small and medium-sized enterprises (SMEs) in Korea was performed by using the statistical data about the corporations (2010 ~ 2012) as the quantitative evidences containing the number of companies, the number of workers, the annual sales, and the indices of market concentration and growth potential. From the Statistics Korea and the KISTI Market Analysis and Prediction System (K-MAPS), the statistical data organized by the Korean Standard Industrial Classification (KSIC) were obtained to conduct this research through the following procedure. First of all, the numbers of enterprises and employees and the annual sales of all industries were investigated and the largest number of workers and the highest annual sales were found in the sector of manufacturing among all sectors of KSIC. Secondly, the top three divisions with the highest annual sales in all divisions of manufacturing sector were selected. Thirdly, the subclasses having high values of annual sales and SMEs proportions among all subclasses in the top three divisions of the previous step were chosen as the candidates of SMEs-recommendable fields. Fourthly, the degree of market concentration was analyzed by using three-firm concentration ratio (CR3) and Herfindahl-Hirschman index (HHI) of the selected subclasses. Finally, the study for growth potential of chosen subclasses was performed through the analysis of compound annual growth rate (CAGR). After the overall process of this study was carried out with the synthetic consideration of the above-mentioned factors, the three subclasses of KSIC as industrial areas suitable to the SMEs could be found: (1) Manufacture of printed circuit boards, (2) Manufacture of parts and accessories for motor engines, and (3) Manufacture of parts and accessories for motor vehicle body. From this result, it was found that the values of annual sales, CR3, HHI, and CAGR can be very useful factors to discover the recommendable industry fields to the SMEs. Full article

The purpose of this paper is twofold. First, it investigates the way by which Tunisian service firms make their decision to innovate: simultaneously (one-stage model) or sequentially (two-stage model). Afterwards, once the innovation-making-decision way is selected, the paper analyzes its main determinants. Using a sample of 108 Tunisian service firms, the paper reveals that the two-stage model has a statistically significant advantage in predicting innovation. Indeed, it is shown that the sequential model illustrates well the innovation making-decision procedures. In fact, the main determinant behind the dominance of the sequential model is the importance that service firms give to the innovation objectives. Full article

The question of what kind of innovations can secure our future is in this paper put in perspective with the unknown risks which innovations may imply. Innovations sometimes turn out to cause severe negative externalities after they have successfully passed the market test. In such cases, the social costs that are revealed only later may result in substantial welfare losses. Obviously, innovations of this kind are the opposite of what is needed. Can the knowledge flows related to innovation processes be strategically arranged in such a way that these externality risks are minimized? The options to be reviewed relate to the debate on open vs. closed innovation processes initiated in management science. The paper briefly discusses several aspects of this debate and introduces a model of self-organizing belief formation which reflects the conditions of open vs. closed innovation processes. On this basis it is shown that a conflict arises between arrangements fostering an early discovery of negative externalities of innovations and the incentives potential innovators have to pursue innovative activities. Full article

Given the economic squeeze world over, search for what we call frugal grassroots innovations in Honey Bee Network, has become even more urgent and relevant in the recent years. And, to shape this search, models and concepts like open innovation, reverse innovation (GE, Market-Relevant Design: Making ECGs Available Across India, 2009); (Govindarajan, Reverse Innovation: a Playbook, 2012); (Govindarajan and Ramamurti. Global Strategy Journal, 1: 191–205, 2011); (Govindarajan and Euchner, Res. Technol. Manage, 55: 13–17, 2012, Govindrajan and Trimble, 40(5), 5–11, 2012), embedded innovation (Simanis and Hart, Innovation from the Inside Out, MIT Sloan Management Review, 2009), extremely affordable, low-cost, frugal innovation (Honey Bee Network, 1989–2016, Gupta, 2000); (Gupta AK, How Local Knowledge can Boost Scientific Studies, 2007); (Gupta AK, Indian Hidden hotebd of invention, 2009a; Gupta AK, http://anilg.sristi.org/harnessing-stimulus-forpromoting- innovations-and-entrepreneurship/, 2009b) etc., have emerged over time. We wish to trace the evolution of the Open Innovation Theory (Urban and Von Hippel, Manag. Sci. 34(5), 569–582, 1988) in the context of the Honey Bee Network working on such ideas for over 26 years. The idea is to study the different strands of relationships between knowledge providers and seekers which make the system truly reciprocal, responsible and responsive. When systems become open, search cost for inclusive innovation will automatically come down and the knowledge system will also become more symmetrical and inclusive. Inclusive innovation for social development implies that new solutions should help in dealing with one or more of the five factors of exclusion: spatial, seasonal, sectoral, skill and social. These should also be accessible, affordable, available and adaptable to varying and differentiated user endowments and needs, besides being circular. One has to understand the interaction between natural, social, ethical and intellectual capital, situated in the institutional context of innovations: at, from, for and with grassroots level communities for defining inclusivity in the innovation ecosystem. A company or a community, when in need of an innovative solution to a local problem, may seek it from outside, develop it inside, or co-create/contract it out. The nature of reciprocity between knowledge and innovation exchange partners may have different types of asymmetries (Bansemir and Neyer 2009). Different ethical principle enunciated in the Honey Bee Network may or may not be followed. The discourse on open innovation has been biased in the favour of corporates seeking ideas form outside rather than sharing their own innovation/knowledge as a public good or commons, or even at low cost with less-advantaged industry actors. In this paper, we reflect on such biases that companies and scholars have developed and propose a framework to temper it. The need for such a correction becomes even more important when various kind of climatic, institutional and market risks are making socio-economic systems more fragile and vulnerable to various uncertainties and fluctuations.
Coping with risks is significantly related to malleability of innovations. The process of evolving and nurturing innovations may have a bearing on their eventual adaptability to user. We argue that when both technology platform and application domains are known well, the incubation model works. Generally, through this process, incremental innovation grows better. But, when both are unknown or are ambiguous, sanctuary model works better. In incubators, the chaos is outside and the order is inside. In sanctuary, it is the opposite. It is not very surprising that sanctuary nurtures innovation which is more suited to fluctuating climate and market-uncertain environments.
Innovations don’t have relevance only at artefactual level. One can learn at metaphorical, heuristic and gestalt levels too. Building bridges between formal and informal knowledge systems poses a unique challenge in designing reciprocal and responsible open innovation platforms? This paper pleads for more reciprocal, respectful and responsible exchanges of knowledge between formal and informal sector adding value to the contributions of grassroots green innovators. Full article

Purpose/Research question: The paper provides an empirical research of the Samsung case. In particular, we study the case by adopting three frameworks: dynamic capabilities (DC, examined by using the sensing/seizing/transforming approach), business model (BM, examined by using the BM canvas), and customer value proposition (CVP), examined by using the PERFA ((Performance, Ease of use, Reliability, Flexibility, and Affectivity) framework. The aim is to demonstrate that three frameworks successfully explain Samsung competitive advantage. Research question has been defined as follows: how dynamic capabilities actually operate in Samsung Group and contribute to its competitive advantage?
Key literature reviews: Dynamic capabilities enable a firm to identify and orchestrate the necessary resources for designing and implementing a business model that will, if employed in conjunction with a good strategy, be associated with high levels of sustainable profits. The selection/design of business models is a key micro foundation of dynamic capabilities - the sensing, seizing, and reconfiguring skills that the business enterprise needs if it is to stay in synch with changing market. However, there are few examples how successful ICT industry players design dynamically their “signature business model” by Teece (The Academy of Management Perspectives 28:(4)328–352, 2014) that can support durable competitive advantage.
Design/Methodology/Approach: This proposed research seeks to explore critical aspects pertaining micro foundations of DC. In this research, two stages of research work will be involved. The first stage is deductive case studies research. We relied on an extensive archival search that included financial statements, annual reports, internal documents, industry publications, and CEO statements to get at a micro-level understanding (Barr et al., 1992), that really boosts our data and better understanding of micro foundation of DC. The second stage involves a demonstration of development process of new conceptual model of research.
Findings/Results: The research question of current paper has been answered empirically by using data of world leading ICT industry: Samsung Group. What we can learn beyond the ICT industry context from our analysis in terms of generalization of our research results is that the synchronization of business models with the business environment is a critical role of dynamic capabilities in successful organizations. The conversion of value delivered to the customer into value captured by the enterprise is arguably the essence of a business model.
Research limitations/Implications: We carried out qualitative research of huge secondary data source that help us make sense of the casual links that connect DC, BM and CVP. We didn’t interview executives of those companies due to availability of actual interviews as a secondary data sources. Our contribution is a new conceptual model of competitive advantage paradigm as a product of dynamic capabilities, business models and customer value proposition. The paper also provides analysis, which could be productively used for a case study discussion in class. Full article

Recent brand relationship research has paid attention to brand love, brand credibility, and brand loyalty. In market and society, various collaborations and co-creations derived from brand relationships generate various social network markets and open business innovations. Brand relationships and collaborative forms heavily depend on risk taking or risk avoidance. However, few studies have examined how brand relationship is related to risk avoidance. The purpose of this study is to investigate the influence of risk avoidance and gender on brand trust, brand credibility, brand loyalty, and brand choice overload. We review relevant literature on brand relationship and risk avoidance and develop research hypotheses about brand relationship and risk. We find that consumers’ risk avoidance influences brand trust, brand credibility, brand loyalty, and brand choice overload. We suggest implications about how brand relationships can promote social network markets and open business innovations through social construction process. Full article

Today, interesting and important interconnections have been made that promise great leaps forward for innovation systems and entrepreneurial ecosystems - especially operating at the regional or sub-national level of the space economy. Of course, there are politics in such relationships. Most notable are those that are critical of anything that “interferes” with market hegemony (neoliberal bias) which has weakened commitments such as those pioneered in South Korea in the early years of the twenty-first century, later to be followed by numerous Scandinavian policy experiments (Denmark, Norway and Sweden) as well as austerity policy to enlarge regional governance spaces, as in Germany and France (not to mention the dismantling in 2010 of Anglo-regional governance in the UK). Meanwhile, however, it can be seen that good progress in regional innovation policy and entrepreneurial accomplishment at regional level proceeds apace. This is known as the “co-operative bias” in contemporary political economy. Entrepreneurial ecosystems and regional innovation systems are excellent examples of “generative growth” mechanisms (floated in Cooke, P, Generative Growth, Knowledge Economies and Sustainable Development: implications for Regional Foresight Policy, 2002) as a counter to Romer-style individualistic endogenous growth theory. The paper explores the virtues of variety against those of linearity in innovation and entrepreneurial ecosystems in exemplary empirical instances. Full article

Adapting to the rapid process of globalization requires nodes of international trade and global financial operations conveyed in the world urban system. Urban and metropolitan areas need to strategically approach to incorporating the city economic activities to enlarge the scope and complexity of the city service and commodity. Because strong urban agglomerations usually lead to technological innovation, investigating the relation between the expansion of Panama Canal and its state and regional economic impacts that will be potentially affected within the U.S. can provides various policy insights in urban growth and technical innovations for the local areas. This study estimated reduced impacts of transportation and warehousing activities for foreign imports and exports for the west coast seaports of California, Oregon, and Washington as well as the concurrent impacts in other states stemming from the trade diversion in their direction, which will affect urban growth and innovation. We applied both the supply- and demand-side National Interstate Economic Models. We assumed that foreign imports and exports that currently arrive and leave the west coast customs district ports and are now transported to other U.S. Southern and East Coast states by truck and rail modes would be directly shipped to these other states via the deepened and expanded Panama Canal. The total negative impacts of transportation and warehousing values lost in the three west coast states from foreign import diversion were estimated to be $5795 million; for foreign exports, $1630 million. However, total positive gains due to the shift of transportation modes and new warehousing activities for foreign imports in the other states were estimated at $6304 million, while the gains were $9218 million for the case of foreign exports. The net impacts resulting from port modernization investment and shipping route changes will be an economic engine to affect U.S. states. Full article

The model of “Open Innovations” (OI) can be compared with the “Triple Helix of University-Industry-Government Relations” (TH) as attempts to find surplus value in bringing industrial innovation closer to public R&D. Whereas the firm is central in the model of OI, the TH adds multi-centeredness: in addition to firms, universities and (e. g., regional) governments can take leading roles in innovation eco-systems. In addition to the (transversal) technology transfer at each moment of time, one can focus on the dynamics in the feedback loops. Under specifiable conditions, feedback loops can be turned into feedforward ones that drive innovation eco-systems towards self-organization and the auto-catalytic generation of new options. The generation of options can be more important than historical realizations (“best practices”) for the longer-term viability of knowledge-based innovation systems. A system without sufficient options, for example, is locked-in. The generation of redundancy—the Triple Helix indicator—can be used as a measure of unrealized but technologically feasible options given a historical configuration. Different coordination mechanisms (markets, policies, knowledge) provide different perspectives on the same information and thus generate redundancy. Increased redundancy not only stimulates innovation in an ecosystem by reducing the prevailing uncertainty; it also enhances the synergy in and innovativeness of an innovation system. Full article

Economic, political, and demographic changes, technological advances, two crashes of the economy, ethical scandals, and other developments in the business environment have strained the roles and enrollments of American universities’ business schools. The b-schools have not responded adequately. Prevailing theories in many of the management disciplines have broken down, partly as a result of the same environmental changes. Again, schools and curricula have not adapted. Collegiate business education is in dire crisis. In this paper we document the crisis, note measures that have been taken – both constructive and otherwise – and make further suggestions for improving the situation. Full article