The interaction mode and geographic scope of firms’ technology alliances: implications of balancing exploration and exploitation in R&D

This paper proposes that the interaction mode, i.e. interactive and iterative, and geographic scope, i.e. domestic and international, of technology alliances generate sources of exploration and exploitation for firms. An implication of this idea is that firms can use these sources for balancing its internal focus on exploratory and exploitative research and development activities (R&D). Then, the paper suggests that the use of this balancing strategy has positive effects on a firm’s innovative performance. Using panel data based on Spanish manufacturing companies for the period 2004–2012, the empirical results confirm that firms balancing their internal exploration or exploitation in R&D with sources of external exploitation or exploration in their technology alliances are the firms with better prospects to produce innovation streams. Implications for the literature on complementarities in innovation, ambidexterity and R&D alliance formation are derived from the analysis.     

Social Capital and Effective Innovation in Industrial Districts: Dual Effect of Absorptive Capacity

This paper deals with the factors that affect the heterogeneity in the access to knowledge and its exploitation through innovation in firms located in industrial districts. The aim of the study is to analyze the moderating role of the components of the absorptive capacity – identification and combination – in the process that leads firms in industrial districts with social capital to obtain effective innovations through the knowledge acquisition. We have developed the empirical analysis on a sample of 166 firms located in the industrial districts of the footwear industry in Spain. Findings suggest that the firms in industrial districts improve the acquisition of novel and valuable knowledge from external networks of information when they have identification capabilities to explore their potential. The results also indicate combinative capability strengthens the acquired new knowledge to develop and exploit successful innovations.     

The influence of knowledge source and ambidexterity in the thin film transistor and liquid crystal display industry: evidence from Japan,Korea, and Taiwan

Based on country-level comparisons, this study applies geographic (internal vs. external) and knowledge (exploitation vs. exploration) boundaries to explore the influence of knowledge sources and ambidexterity on production and innovation performance in the thin film transistor-liquid crystal display (TFT-LCD) industries of the three major players, Japan, Korea, and Taiwan, from 1995 to 2009. Our findings suggest that different resource-based industrial development strategies are associated with the specific knowledge acquisition strategies in the technology leader, Japan and its followers, Korea and Taiwan. The contribution of this study is empirical verification of the influence of knowledge sources and ambidextrous capabilities on production and innovation activities in the TFT-LCD industries of these countries. Since each country is endowed with different resources, this study aims to reveal the strong implications of this for the design of an industrial strategy that has to acquire both known and new knowledge through internal and external sources simultaneously, while carefully integrating them and exploiting their interactions.     

An empirical study of firm’s absorptive capacity dimensions,supplier involvement and new product development performance

Firms’ performance in their new product development (NPD) is believed to be positively related with involving suppliers in the process of new product development, and also with the organisation’s capacity and capability to absorb external and internal knowledge, namely absorptive capacity (AC). Addressing a gap in the literature, this study adopts the definition and structure for AC suggested by Tu et al. (2006) to examine relationships between AC’s sub-dimensions with NPD performance, and also their moderating effects on the relationship between supplier involvement and new product development performance, on both financial and nonfinancial aspects. Data from a survey of 161 manufacturing firms are used to test the developed hypotheses using structural equation modelling and hierarchical regression. Direct and contingent effects of supplier involvement and AC on new product development performance are studied. As a result factors determining AC are found of different level of effects on financial and nonfinancial performance of new products, which will have implication for theory and practice.     

Heterogeneous Partners,R&D cooperation and corporate innovation capability: Evidence from Chinese manufacturing firms

In this paper, we examine the differential impact of cooperation with heterogeneous partners on firms' innovation capabilities. We use the number of joint patent applications of Chinese manufacturing firms from 2008 to 2018 to measure cooperation with different types of partners and the number of corporate patents to measure the innovation capability of firms. The results indicate that R&D cooperation with other enterprises, universities, and research institutions all have a significantly positive impact on the innovation capability of enterprises. However, R&D cooperation with universities or research institutions has a higher positive impact on innovation capability than that with other firms. Different internal and external factors moderate the relationship between heterogeneous partners and the innovation capability of firms. Specifically, firms with higher absorptive capacity will benefit more from R&D cooperation with corporate partners. In contrast, in industries with higher market concentration or where firms are at the technological frontier, cooperation with universities will positively impact their innovation capabilities. Further research demonstrates that absorptive capacity has a more positive moderating effect when the cooperation is between firms in the same industry, compared to R&D cooperation between firms in different industries.     

Exploration,exploitation and innovation performance: disentangling the evolution of industry

The evolution of industry has recently attracted the attention of scholars studying the relationships between exploration and exploitation strategies and innovation performance. Surprisingly, although extant research has already acknowledged its multidimensional character, it has only been analyzed in an aggregate fashion. In this paper, we distinguish two components of the evolution of industry, the pace of market evolution and the pace of technology evolution, and we elaborate on their different impacts in the context of exploration and exploitation strategies. More precisely, we argue that while a rapid pace of technology evolution has opposite impacts on the relationships between exploration (positive), exploitation (negative) and innovation performance, a rapid pace of market evolution positively affects both exploration and exploitation. Our findings provide substantial support for our prediction using a large panel of Spanish innovating firms for the period 2008–2012.     

Searching Near and Far: Determinants of Innovative Firms' Propensity to Collaborate Across Geographical Distance

The paper explores the relation between absorptive capacity and the propensity to collaborate across geographical distance. The analysis is based on quantitative data from two neighbouring Danish regions on the location of the main partner in product-innovation activities. The findings indicate that the importance of absorptive capacity in relation to collaboration across geographical distance depends on the location of the innovative firm. Firms located in the relatively sparsely populated region are more likely to collaborate with firms located outside the region; and for these firms, the level of absorptive capacity matters for the distance to the collaboration partners—firms with a low level of absorptive capacity tend to collaborate with domestic partners, while those with a high level of absorptive capacity are much more likely to find their main product-innovation partner abroad.     

Six sigma,absorptive capacity and organisational learning orientation

The importance of the six sigma methodology in industry is growing constantly. However, there are few empirical studies that analyse the advantages of this methodology and its positive effects on organisational performance. The purpose of this paper is to extend understanding of the success of six sigma quality management initiatives by investigating the effects of six sigma teamwork and process management on absorptive capacity. It also seeks to understand the relation between absorptive capacity and organisational learning as two sources of sustainable competitive advantage. The information used comes from a larger study, the data for which was collected from a random sample of 237 European firms. Of these 237 organisations, 58 are six sigma organisations. Structural equation modelling (SEM) was used to test the hypotheses. The main findings show that six sigma teamwork and process management positively affect the development of absorptive capacity. A positive and significant relationship is also observed between absorptive capacity and organisational learning orientation. The findings of this study justify six sigma implementation in firms. This study provides us with an in-depth understanding of some structural elements that characterise the six sigma methodology, enabling us to provide an explanation for its success.     

Automatic Data Clustering Based Mean Best Artificial Bee Colony Algorithm

Fuzzy C-means (FCM) is a clustering method that falls under unsupervised machine learning. The main issues plaguing this clustering algorithm are the number of the unknown clusters within a particular dataset and initialization sensitivity of cluster centres. Artificial Bee Colony (ABC) is a type of swarm algorithm that strives to improve the members’ solution quality as an iterative process with the utilization of particular kinds of randomness. However, ABC has some weaknesses, such as balancing exploration and exploitation. To improve the exploration process within the ABC algorithm, the mean artificial bee colony (MeanABC) by its modified search equation that depends on solutions of mean previous and global best is used. Furthermore, to solve the main issues of FCM, Automatic clustering algorithm was proposed based on the mean artificial bee colony called (AC-MeanABC). It uses the MeanABC capability of balancing between exploration and exploitation and its capacity to explore the positive and negative directions in search space to find the best value of clusters number and centroids value. A few benchmark datasets and a set of natural images were used to evaluate the effectiveness of AC-MeanABC. The experimental findings are encouraging and indicate considerable improvements compared to other state-of-the-art approaches in the same domain.     

Knowledge context,learning and innovation: an integrating framework

Abstract

In this conceptual paper, we develop a framework which identifies those elements of firms’ knowledge context which are important for innovation, and the mechanisms through which that knowledge impacts on firms’ innovation performance. We make four main contributions to the existing literature. First, our characterisation of knowledge context provides the basis for a more specific identification of which elements of firms’ knowledge environment are important for innovation, discriminating between spatial, sectoral and network influences. Second, we reflect the role of innovation ambition in shaping firms’ knowledge search strategies. Third, we differentiate between firms’ interactive and non-interactive knowledge search activities and recognise that these may be complemented by unanticipated and serendipitous knowledge spillovers. Finally, we employ the notion of encoding capacity to reflect firms’ internal ability to assimilate and apply external knowledge, and clarify its distinctiveness from the more general concept of absorptive capacity. Our framework provides an integrating mechanism for existing empirical studies, and suggests a number of new research directions related to the determinants of innovation performance and the heterogeneity of innovation outcomes.     

Industry-Public Knowledge Infrastructure Interaction: Intra- and Inter-organizational Explanations of Interactive Learning

This paper pursues the development and empirical exploration of a theoretical framework that explains the probabilities of interactive learning of innovating firms and actors in the public knowledge infrastructure. Our research question reads as follows: To what extent does the strength of innovator firms' internal knowledge resources, the complexity of their innovative activities, and the structuring of their innovative activities influence the probabilities of interactive learning between innovating firms and actors in the knowledge infrastructure? We contend basically that more complex innovative activities increase the probability of internal resource deficits/shortages in innovating firms. The higher the resource deficits/shortages and the lower the alignment of innovative activities, the more likely the search for complementary resources externally, which induces higher probabilities of interactive learning with actors in the knowledge infrastructure. In order to test the generality of our theoretical claims six models were examined, predicting the probability of interactive learning of innovating firms with the knowledge infrastructure (universities and research centres) controlling for sectoral differences in technological dynamics and size effects. Both monotonic and non-monotonic effects were tested. Our findings show that antecedents of patterns of interactive learning differ widely and are contingent upon sectoral technological dynamics and firm size. Our findings enhance a substantial refinement of the main theoretical arguments explaining the level of interactive learning. The absorptive capacity effect turns out to have an inverted U-shape only for small- and medium-sized enterprises (SMEs). The complexity effect is monotonic in some cases and non-monotonic in others. The interaction effect turned out to be U-shaped. The internal integration of innovative activities has no effect at all. Support by bridging institutions had a very strong influence on levels of interactive learning between innovating firms and knowledge infrastructure, but only for SMEs.     

Talking about automated vehicles: What do levels of automation do?

Automated vehicles have become a popular topic of conversation. Initially, these conversations were limited to technology developers, innovators and engineers, as they worked to progressed the various technologies and systems that are required to create automated vehicles. Then, over time, these conversations extended to other communities; lawyers, insurers, planners, policymakers, social scientists, and various publics all began hearing, and talking about automated vehicles – also known as ‘driverless’, ‘self-driving’, and ‘autonomous’ vehicles. Levels of automation emerged as a way to depict gradations or categories of autonomy, with tasks divided between those for the machine and those for humans. In this paper, we critically reflect upon the dominance of levels of automation – up to seven sequential ‘steps’ - proposed by a number of industry organisations. Focusing on the Society of Automotive Engineers (SAE) Standard J3016, we signal the intended and unintended performative effects of these levels. We argue that current discourses on automated vehicles have been underpinned by a techno-centric, expert-dominated logic, and point to the benefits of more dispersed, geographically contingent, and socio-technical perspectives in re-framing the dominant discourse and allowing for more nuanced spatial and temporal understandings on future systems of (automated) mobility.     

Supply chain flexibility concepts,dimensions and outcomes: an organisational capability perspective

Due to the increasing uncertainty and diversity in supply chains (SCs), companies are aiming to develop their SC flexibility, which we define as the capability of a company, both internally and externally in conjunction with its key suppliers and customers, to respond to uncertainties and customer expectations without excessive costs, time and performance losses. SC flexibility has three dimensions – internal, supplier and customer flexibility. This study investigates how SC flexibility improves operational and financial performance from the organisational capability perspective. The conceptual model is empirically tested using data collected from 216 companies in China. Our findings suggest that only customer and internal flexibility contribute to operational performance directly, while supplier flexibility contributes to operational performance only indirectly through internal flexibility. The three dimensions of SC flexibility have no direct impacts on financial performance. We further identify complementarities between supplier and customer flexibility and tradeoffs between supplier and internal flexibility. However, no synergy effect is found for internal and customer flexibility on operational performance. This study provides a framework to understand SC flexibility from the organisational capability perspective and identifies the inter-relationships among the three dimensions of SC flexibility and operational and financial performance.     

Validation of two-phase CFD models for propellant tank self-pressurization: Crossing fluid types,scales, and gravity levels

This paper examines our computational ability to capture the transport and phase change phenomena that govern cryogenic storage tank pressurization and underscores our strengths and weaknesses in this area in terms of three computational-experimental validation case studies. In the first study, 1g pressurization of a simulant low-boiling point fluid in a small scale transparent tank is considered in the context of the Zero-Boil-Off Tank (ZBOT) Experiment to showcase the relatively strong capability that we have developed in modelling the coupling between the convective transport and stratification in the bulk phases with the interfacial evaporative and condensing heat and mass transfer that ultimately control self-pressurization in the storage tank. Here, we show that computational predictions exhibit excellent temporal and spatial fidelity under the moderate Ra number – high Bo number convective-phase distribution regimes. In the second example, we focus on 1g pressurization and pressure control of the large-scale K-site liquid hydrogen tank experiment where we show that by crossing fluid types and physical scales, we enter into high Bo number – high Ra number flow regimes that challenge our ability to predict turbulent heat and mass transfer and their impact on the tank pressurization correctly, especially, in the vapor domain. In the final example, we examine pressurization results from the small scale simulant fluid Tank Pressure Control Experiment (TCPE) performed in microgravity to underscore the fact that in crossing into a low Ra number – low Bo number regime in microgravity, the temporal evolution of the phase front as affected by the time-dependent residual gravity and impulse accelerations becomes an important consideration. In this case detailed acceleration data are needed to predict the correct rate of tank self-pressurization.     

A competitive progression perspective of JIT systems: evidence from early US implementations

This study investigates the holistic implementation of just-in-time (JIT) manufacturing. We contend that the most important elements of holistic JIT systems – focused factory, reduced setup times, group technology, total productive maintenance, multifunction employees, uniform workload, just-in-time purchasing, Kanban, total quality control and quality circles – should be implemented in a sequential manner for a firm to reap sustainable operational gains. The right sequence of implementation of JIT practices is derived using the theory of competitive progression and based on four JIT practice bundles – conformance quality related practices, delivery reliability related practices, volume flexibility related practices and low cost related practices. Data collected in a cross-sectional field study of US manufacturers are used to test the suggested implementation sequence of JIT practices and the impact of the JIT practice bundles on improvement in non-value added performance. The results indicate that implementations of JIT management practices should be in the order – first, conformance quality related practices; second, delivery reliability related practices; third, volume flexibility related practices and; finally low cost related practices. In addition, significant improvement in operational performance, as reflected in improvement of non-value added performance, is achieved via the cumulative capability building.     

Technological Diversification Through Corporate Venture Capital Investments: Creating Various Options to Strengthen Dynamic Capabilities

Corporate venture capital (CVC) investment in technology-intensive entrepreneurial ventures has attracted increasing attention from established firms which recognize it as a useful learning investment strategy to create diversified technological options for future change. However, there is a lack of empirical research which examines the relationship between CVC investment and the corporate investors' technological diversification. In this study, we investigate the effects of CVC investments on corporate investors' technological diversity by using 20 years of panel data from corporate investors in five high-tech industries. As a result, we find that the total amount of CVC investments and the industrial diversity of portfolio companies exhibit curvilinear (inverted U-shape) relationships with the corporate investors' technological diversity. Moreover, the empirical results show that the absorptive capacity of corporate investors positively moderates the effects of CVC investments on the technological diversity.     

The influence of socialisation and absorptive capacity on buyer’s innovation performance

In contrast to prior literature, we hypothesise that socialisation with suppliers plays a key role in the success of buyer’s innovation programmes. Using the theoretical lens of social capital theory and knowledge-based view of a firm; we propose a framework of antecedents and consequences of socialisation. We use data from a large sample of firms in Australia to test our framework. We also corroborate our results with a small sample of qualitative case studies that were carried out in conjunction with the large-scale empirical study. Taken together, the results supported the claim of the importance of socialisation as well as absorptive capacity in influencing innovation performance of buyers. The results suggest that managers ought to consider socialisation as a mechanism to enhance collaborative competence which in turn helps innovation performance via tapping the potential of absorptive capacity of knowledge.     

What do patent examiner inserted citations indicate for a region with low absorptive capacity?

Most studies of patents citations focus on national or international contexts, especially contexts of high absorptive capacity, and employ examiner citations. We argue that results can vary if we take the region as the context of analysis, especially if it is a region with low absorptive capacity, and if we study applicant citations and examiner-inserted citations separately. Using a sample from the Valencian Community (Spain), we conclude that (i) the use of examiner-inserted citations as a proxy for applicant citations, (ii) the interpretation of non-patent references as indicators of science-industry links, and (iii) the traditional results for geographical localization are not generalizable to all regions with low absorptive capacity.