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II. Meso-Perspective Within The Organization - Coggle Diagram
II. Meso-Perspective Within The Organization
1. Strategic Organization of Innovation I
1.1 Nature of Innovation
Locus of Innovation
Sources of Knowledge for Innovation
Networks
Internal Organization Mode
Alliance Mode
Acquisition Mode
1.2 The Innovation Process
Invention vs. Innovation
a) Basic Knowledge
b) Invention
c) Innovation
Radical Innovation
Incremental Innovation
Enabling Innovation
Innovating Organization
Transformational Leadership
d) Diffusion
Supply-Side: Imitation
Demand-Side: Adoption
1.3 Profiting from Innovation
Depends on
: Share of Appropriation & Value Created
Challenge
: Generate Rents & Control Imitation
Four Components of an Appropriation Scheme
a) Property Rights (Patents, Copyright..)
b) Tacitness / Complexity of Technology
c) Lead Time
First Mover
Second Mover
Late Mover
d) Complementary Resources
Build
Buy
Ally
Acquire
License
Protection Mechanisms
Secrecy
Patents
Lead-Time
Sales / Service
Manufacturing
1.4 Managing Risk of Innovation
Sources of Uncertainty
Technology
Market Situation
Strategies to Limit Risk
Cooperation with Lead User
Limit Risk Exposure
Flexibility
1.5 Importance of Standards
Competing for Standards
Establishing Standards
Patent Pool
Standard Wars
Goal: Achieving Compatibility with Existing Products
Resources to Win:
Control over installed base of customers
First-mover advantage
Owning intellectual property rights
Forms of Standards
Public Open Standard
Private Proprietary Standard
Network Economies
Compatibility of Products through same network
2. Strategic Organization of Innovation II
2.1 Design (Structure) of R&D
Sources of Innovation
R&D Structure
Centralized R&D Structure
Trade-off between..
Type of Innovation
Radical (= centralized more favorable)
Incremental (= decentralized more favorable)
Type of Knowledge / Sourcing Strategy
Internal (= centralized more favorable)
External (= decentralized more favorable)
Structure & Coordination
Appropriation Capability
Decentralized R&D Structure
Hybrid R&D Structure
Main Drivers
Internal Transaction Costs
Information Processing
Contracting and Knowledge Transfer
2.1.1 Value Appropriation Mechanisms from Innovation and OD
Horizontal Coordination Mechanisms
Cross-Functionality (Coordination of Tasks)
Coordination of Knowledge and Information
2.3 Effect of Strategic Design of R&D Teams on Innovation
Network Effects
More Homogeneity within than between groups
Brokerage across structural holes
New ideas from selection and synthesis across structural holes between groups
Social Networks' Influence
Informational Benefits
Relational Embeddedness
Structural Embeddedness
Control Benefits
Tertius Gaudens
Effect of Team Diversity
Diverse
Increases innovational outcome
Overly Diverse (> 63%)
Decreases innovational outcome
Vertical Coordination Mechanisms
2.2 Contracting and Technology Transfer
(1) Strategic Rationale for Contracting
Seller
Revenue
Lack of Commercialization
Buyer
Acces to Knowledge & Complementary Resources
Shorten Product Development Cycle
Avoid Legal Issues
(2) Challenges in Designing R&D Contracts
Information Asymmetry
Understanding of Technology
Understanding of Commercialization
Verifiability of Final Effort of Parties
Contract Clauses
(3) Technology Transfer
Seller View
Design Organizational Structure to Maximize Technology Licensing
Value generated
Decision Authority In Terms of Licensing
Centralized
Decentralized
Buyer View
OD-Mechanisms for Knowledge / Technology Absorption
Diversity of Technical Expertise
Internal Structure of Communication
3. Strategic Organization Innovation III
3.1 Markets for Technology & OD
Types of Markets
Markets for Technology
Examples
Firm Licensing
Patents
Academic Literature
Market Supplier (Licensing)
Large firms
less likely
Reasons
Conflicts of Interests within BU (Licensing vs. Production)
Organizations with Centralized Decision Authority (Licensing) More Likely
Decision to License
Considerations
Strategic OD
Knowledge of BU
Markets for Innovation
Contract R&D
Transaction Costs
Specification
Lock-In
Bargaining
Integrating
Depends on
Ability to Transfer
Ability to write contracts vs. transfer and price resources internally
Degree of intellectual property
Alternative
Allliance / Joint Venture
Transactions
Specialized Technology Supplier
Intellectual Property Rights
Nature of Demand
Market Transactions
Anonymous
Exchange of Goods
3.2 Scope of Firm & Transaction Cost Economics
Transaction Costs
Predicts Scope of Firm
Source: Economic Exchange in Firm OR in Markets
Administrative Costs
Make-Buy-Ally Decisions
Alternative
: Forms of Governance (Structure)
Long-Term Agreements
Short-Term Contracts
Strategic Outsourcing
Cost Make ~ Cost Buy Consideration
Cost Make < Cost Buy
Vertical Integration
Divisional Transfer Pricing
Principal Agent Problem
Cost Make > Cost Buy
Market Governance (Buy from Market)
Search Costs
Opportunism
Incomplete Contracting
Transaction Costs
Search Cost
Bargaining Cost
Monitoring Cost
Assumptions
Bounded Rationality
Opportunistic Behavior
Market Failure
Asset Specificity
Uncertainty
2 more items...
Frequency
Ex-post Considerations
4. Strategic Organizing for Manufacturing and Services
4.1 Managing Change in Mature Industries
Product-Life Cycle
a. Introduction
b. Growth
c. Maturity
c. Decline
Stage of Development and Innovation
Product Innovations
a. Fluid Phase
Dominant Design established
b. Transitional Phase
Standards Emerge
c. Specific Phase
Process Innovations
a. Fluid Phase
b. Transitional Phase
c. Specific Phase
Stage of Competition
Phase 1: Performance (Entries > Exits)
Phase 2: Differentiation (Entries = Exits)
Phase 3: Price (Entries < Exits)
Implications of Maturity for Competitive Advantage
Decreased Number of Opportunities for Competitive Advantage
Limited Potential
Stable Technology
Ease of Entry
Internationalization, Price Competition
Shift from Differentiation Strategies to Cost Strategies
Sources of Competitive Advantage
Economies of Scale
Low-Cost Inputs
Low Overheads
Strategy: Corporate Restructuring to Reach Cost Advantage
Downsizing
Downscoping
Strategy: Segment Focus
Identification and Expanding Attractive Customer Segments
Disaggregation of Markets
Strategy: Differentiation
High Degree of Standardization in Market
Willingness to Pay A Premium
Insulation of Price Competition
Strategy: Innovation
Low Share of R&D / Sales
Product Innnovation
Process Innovation
New Customer Groups
4.2 Structural Design in Mature Industries
Mechanistic Organization Form
Principle of Bureaucracy
Most Dominant in Mature Markets
Highly Routinized Operations
Key Organizational Features
Strategy
Structure
Controls
Incentives
Communication
Leadership
Declining Industries
Reasons
Technological Substitution
Consuer Preferences
Foreign Competition
Key Features
Excess Capacity
Agressive Price Competition
Declining Number of Competitors
Strategies
Critical Factors
Balance Capacity & Output
Nature of Demand
Maintenance Strategy
Niche Strategy
Leadership Strategy
Harvesting Strategy
Divesting Strategy