Research on the tension between exploration and exploitation has made fundamental contributions to our understanding of firm growth via entry into new businesses. While there is consensus about the merits of balancing exploration and exploitation, there has been debate about the best means for achieving balance. In our prior analysis of firms’ choices between acquisition and internal development as entry modes, we found that the role of acquisitions tends to differ inside versus outside a firm’s primary business domain: firms use within-domain acquisitions largely for exploitation, while out-of-domain acquisitions support exploration. To examine these issues in greater depth, we focus here on the historical use of acquisition versus internal development by two major technology firms, Amazon and Alphabet. We show that the two firms have been remarkably different in their use of acquisitions versus internal development. Consistent with our prior analysis, Amazon has emphasized internal development but has used acquisitions to strengthen its existing businesses and to enter new products and services that were (initially) outside Amazon’s primary business domain. In contrast, Alphabet has relied heavily on acquisitions to enter new businesses within its primary domain but has emphasized internal development of “moonshot” businesses outside this domain. These differences illuminate the use of acquisitions in market entry and make clear that there is no single right way to utilize acquisition versus internal development in the pursuit of balance between exploration and exploitation.
{"title":"Exploration, exploitation, and mode of market entry: acquisition versus internal development by Amazon and Alphabet","authors":"Gwendolyn K Lee, M. Lieberman","doi":"10.1093/icc/dtad015","DOIUrl":"https://doi.org/10.1093/icc/dtad015","url":null,"abstract":"\u0000 Research on the tension between exploration and exploitation has made fundamental contributions to our understanding of firm growth via entry into new businesses. While there is consensus about the merits of balancing exploration and exploitation, there has been debate about the best means for achieving balance. In our prior analysis of firms’ choices between acquisition and internal development as entry modes, we found that the role of acquisitions tends to differ inside versus outside a firm’s primary business domain: firms use within-domain acquisitions largely for exploitation, while out-of-domain acquisitions support exploration. To examine these issues in greater depth, we focus here on the historical use of acquisition versus internal development by two major technology firms, Amazon and Alphabet. We show that the two firms have been remarkably different in their use of acquisitions versus internal development. Consistent with our prior analysis, Amazon has emphasized internal development but has used acquisitions to strengthen its existing businesses and to enter new products and services that were (initially) outside Amazon’s primary business domain. In contrast, Alphabet has relied heavily on acquisitions to enter new businesses within its primary domain but has emphasized internal development of “moonshot” businesses outside this domain. These differences illuminate the use of acquisitions in market entry and make clear that there is no single right way to utilize acquisition versus internal development in the pursuit of balance between exploration and exploitation.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46163010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Prior literature has long examined innovation as a recombination process within or across the boundaries of technological domains. However, limited attention is paid to boundaries per se. Building upon recent development of categorical contrast, this study distinguishes domains with crisp boundaries from those with fuzzy boundaries and examines their effects on innovation outputs. Analyzing a large sample of US patents, we find that spanning crisp boundaries is more likely to generate impactful inventions but at the same time leads to significantly higher recombinant uncertainty. We continue to explore what types of inventors are better able to span such types of domain boundaries. Focusing specifically on the role of inventors’ knowledge expertise, we find that while both knowledge depth and breadth enhance the impact of technologies that span crisp boundaries, knowledge breadth is also found to escalate the associated uncertainty. Our emphasis on the contrast of technological domains contributes to the literature on recombinative innovation and boundary spanning.
{"title":"Innovation on technological “islands”: domain contrast, boundary spanning, knowledge depth and breadth","authors":"Sverre Ubisch, Pengfei Wang","doi":"10.1093/icc/dtad014","DOIUrl":"https://doi.org/10.1093/icc/dtad014","url":null,"abstract":"\u0000 Prior literature has long examined innovation as a recombination process within or across the boundaries of technological domains. However, limited attention is paid to boundaries per se. Building upon recent development of categorical contrast, this study distinguishes domains with crisp boundaries from those with fuzzy boundaries and examines their effects on innovation outputs. Analyzing a large sample of US patents, we find that spanning crisp boundaries is more likely to generate impactful inventions but at the same time leads to significantly higher recombinant uncertainty. We continue to explore what types of inventors are better able to span such types of domain boundaries. Focusing specifically on the role of inventors’ knowledge expertise, we find that while both knowledge depth and breadth enhance the impact of technologies that span crisp boundaries, knowledge breadth is also found to escalate the associated uncertainty. Our emphasis on the contrast of technological domains contributes to the literature on recombinative innovation and boundary spanning.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42830844","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
How does a firm’s response time to past failures affect its likelihood of experiencing future failures? Does this likelihood depend on the reasons for past failures? Using drug recalls during 2006–2016, we examine the effect of pharmaceutical firms’ response time to their past failures on their learning from failure. Longer response times reduce the likelihood of subsequent failure. Variations in the reasons for past failures increase the potential for subsequent failure. However, a longer response time helps overcome the challenges associated with this variation. By focusing on the temporal dimension of learning from failure, we provide unique theoretical insights into when and how organizations can learn from failure.
{"title":"Mind the time: failure response time, variations in the reasons for failures, and learning from failure","authors":"Arusyak Zakaryan, Daniel Tzabbar, Bruno Cirillo","doi":"10.1093/icc/dtad018","DOIUrl":"https://doi.org/10.1093/icc/dtad018","url":null,"abstract":"\u0000 How does a firm’s response time to past failures affect its likelihood of experiencing future failures? Does this likelihood depend on the reasons for past failures? Using drug recalls during 2006–2016, we examine the effect of pharmaceutical firms’ response time to their past failures on their learning from failure. Longer response times reduce the likelihood of subsequent failure. Variations in the reasons for past failures increase the potential for subsequent failure. However, a longer response time helps overcome the challenges associated with this variation. By focusing on the temporal dimension of learning from failure, we provide unique theoretical insights into when and how organizations can learn from failure.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"1 1","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41653556","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Correction to: The temporal value of local scientific expertise","authors":"","doi":"10.1093/icc/dtad019","DOIUrl":"https://doi.org/10.1093/icc/dtad019","url":null,"abstract":"","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48685520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Team formation brings together organizational members with complementary capabilities to address projects. This study examines how project-based organizations form teams in response to an ongoing stream of different projects. We consider team formation a phenomenon shaped by organization structure, project attributes, and learning from project experience. We address the effects of two alternative organization structures (functional and team-based) and four project attributes (project size, heterogeneity, decomposability, and ambiguity) on the efficiency of project team staffing. We build these features into two agent-based models grounded on nine case studies of project-based organizations. These models highlight how organizations achieve efficiency in team formation over time as transactive memory develops in response to ongoing project variation. Our models explain how organization structure and particular project attributes affect the development and application of transactive memory.
{"title":"Organizational team formation: projects, structures, and transactive memory","authors":"Seungho Choi, Kent D. Miller","doi":"10.1093/icc/dtad016","DOIUrl":"https://doi.org/10.1093/icc/dtad016","url":null,"abstract":"\u0000 Team formation brings together organizational members with complementary capabilities to address projects. This study examines how project-based organizations form teams in response to an ongoing stream of different projects. We consider team formation a phenomenon shaped by organization structure, project attributes, and learning from project experience. We address the effects of two alternative organization structures (functional and team-based) and four project attributes (project size, heterogeneity, decomposability, and ambiguity) on the efficiency of project team staffing. We build these features into two agent-based models grounded on nine case studies of project-based organizations. These models highlight how organizations achieve efficiency in team formation over time as transactive memory develops in response to ongoing project variation. Our models explain how organization structure and particular project attributes affect the development and application of transactive memory.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44056226","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Correction to: Schumpeter’s insights for monetary macroeconomics and the theory of financial crises","authors":"","doi":"10.1093/icc/dtad013","DOIUrl":"https://doi.org/10.1093/icc/dtad013","url":null,"abstract":"","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-04-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136022203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Improvements experienced by incumbent “old” technologies when threatened by new ones, potentially supplanting them, are often addressed as the “sailing-ship effect.” The latter phrase points to the eponymous case that consists of the 60-year or so technological battle between sail and steam in ships’ propulsion during the 19th century, which led to unexpected large advancements in sail technology. Paradoxically, until today, the only work which addressed quantitatively that technological battle actually found a lack of evidence of the occurrence of the sailing-ship effect. In this paper, through fresh statistical analysis, we find instead confirmation of the existence of the effect in the original case. This finding contributes to the theoretical debate that explains technological persistence through mechanisms such as path dependence, cumulativeness, localized technical progress, competence and cognitive traps, the presence of complementary assets and tributary innovations, as well as institutional features. Policy dimensions are considered in Section 7 of the work.
{"title":"Is the “sailing-ship effect” misnamed? A statistical inquiry of the case sail vs steam in maritime transportation","authors":"Nicola De Liso, Serena Arima, G. Filatrella","doi":"10.1093/icc/dtad012","DOIUrl":"https://doi.org/10.1093/icc/dtad012","url":null,"abstract":"\u0000 Improvements experienced by incumbent “old” technologies when threatened by new ones, potentially supplanting them, are often addressed as the “sailing-ship effect.” The latter phrase points to the eponymous case that consists of the 60-year or so technological battle between sail and steam in ships’ propulsion during the 19th century, which led to unexpected large advancements in sail technology. Paradoxically, until today, the only work which addressed quantitatively that technological battle actually found a lack of evidence of the occurrence of the sailing-ship effect. In this paper, through fresh statistical analysis, we find instead confirmation of the existence of the effect in the original case. This finding contributes to the theoretical debate that explains technological persistence through mechanisms such as path dependence, cumulativeness, localized technical progress, competence and cognitive traps, the presence of complementary assets and tributary innovations, as well as institutional features. Policy dimensions are considered in Section 7 of the work.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44131238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Corporate trademark practices play a key role in the intangible reputation-based economy and are increasingly being scrutinized by societal stakeholders. Yet, research on the effects of trademarks has mostly focused on private returns, while insights on their societal returns are scattered and resting on limited empirical evidence. This study integrates existing research in a framework connecting suggested mechanisms to the available evidence. The integrative framework lays bare clear gaps in our theoretical understanding and the empirical support, with the dark sides of corporate trademark practices being critically under-investigated. Based on this analysis, I propose a research agenda stemming from two broad questions: (i) how do corporate trademark practices deal with societal pressures? and (ii) how do corporate trademark practices enable or hinder competition and innovation? The envisioned research lines bear relevance for organizations, society, and research alike.
{"title":"Off the mark? What we (should) know about the bright and dark sides of corporate trademark practices","authors":"C. Castaldi","doi":"10.1093/icc/dtad011","DOIUrl":"https://doi.org/10.1093/icc/dtad011","url":null,"abstract":"\u0000 Corporate trademark practices play a key role in the intangible reputation-based economy and are increasingly being scrutinized by societal stakeholders. Yet, research on the effects of trademarks has mostly focused on private returns, while insights on their societal returns are scattered and resting on limited empirical evidence. This study integrates existing research in a framework connecting suggested mechanisms to the available evidence. The integrative framework lays bare clear gaps in our theoretical understanding and the empirical support, with the dark sides of corporate trademark practices being critically under-investigated. Based on this analysis, I propose a research agenda stemming from two broad questions: (i) how do corporate trademark practices deal with societal pressures? and (ii) how do corporate trademark practices enable or hinder competition and innovation? The envisioned research lines bear relevance for organizations, society, and research alike.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46122655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the last couple years, the world has experienced the highest levels of inflation in more than four decades. This paper provides a framework for analyzing the causes and the appropriate responses. We show that it is not caused by an excess of aggregate demand, and in particular, not caused by any excess consumption arising from excessive pandemic spending, but by supply-side shocks, largely induced by the pandemic (e.g., chips), and also by the war in Ukraine, combined with sectoral demand shifts. We analyze the role played by market power and the lack of resilience. Increases in interest rates, beyond normalizing levels, will do little to address the underlying problems and may exacerbate them, impeding effective responses to supply shortages. The paper describes alternative fiscal and other measures that, while addressing current inflation, have further long-term welfare benefits.
{"title":"The causes of and responses to today’s inflation","authors":"J. Stiglitz, Ira Regmi","doi":"10.1093/icc/dtad009","DOIUrl":"https://doi.org/10.1093/icc/dtad009","url":null,"abstract":"\u0000 Over the last couple years, the world has experienced the highest levels of inflation in more than four decades. This paper provides a framework for analyzing the causes and the appropriate responses. We show that it is not caused by an excess of aggregate demand, and in particular, not caused by any excess consumption arising from excessive pandemic spending, but by supply-side shocks, largely induced by the pandemic (e.g., chips), and also by the war in Ukraine, combined with sectoral demand shifts. We analyze the role played by market power and the lack of resilience. Increases in interest rates, beyond normalizing levels, will do little to address the underlying problems and may exacerbate them, impeding effective responses to supply shortages. The paper describes alternative fiscal and other measures that, while addressing current inflation, have further long-term welfare benefits.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41757758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Environmental inequalities are often large and consequential, exacerbating vertical inequalities of income and class and horizontal inequalities along lines of race and ethnicity. Climate policies can widen these inequalities as well as mitigate them, depending on their design. Decarbonization of the US electricity sector illustrates these possibilities. A strategy narrowly focused on carbon reduction alone is likely in some regions to increase disparities in exposure to localized co-pollutants emitted by fossil fuel combustion and, in some cases, to increase exposure in absolute terms. Strategies that in addition explicitly mandate improvements in air quality, both overall and specifically for frontline communities, can couple decarbonization with remediation of environmental inequalities and broad-based gains in public health.
{"title":"Just decarbonization? Environmental inequality, air quality, and the clean energy transition","authors":"Bridget Diana, Michael Ash, J. Boyce","doi":"10.1093/icc/dtad010","DOIUrl":"https://doi.org/10.1093/icc/dtad010","url":null,"abstract":"\u0000 Environmental inequalities are often large and consequential, exacerbating vertical inequalities of income and class and horizontal inequalities along lines of race and ethnicity. Climate policies can widen these inequalities as well as mitigate them, depending on their design. Decarbonization of the US electricity sector illustrates these possibilities. A strategy narrowly focused on carbon reduction alone is likely in some regions to increase disparities in exposure to localized co-pollutants emitted by fossil fuel combustion and, in some cases, to increase exposure in absolute terms. Strategies that in addition explicitly mandate improvements in air quality, both overall and specifically for frontline communities, can couple decarbonization with remediation of environmental inequalities and broad-based gains in public health.","PeriodicalId":48243,"journal":{"name":"Industrial and Corporate Change","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-03-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42197294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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