EXPLORING THE RELATION BETWEEN FIRM OWNERSHIP AND IT CAPABILITY

As IT spending continuously increased throughout the last years, it nowadays accounts for a significant amount of total corporate spending. Simultaneously, academic research validated the strategic importance and performance benefits derived from a superior IT capability the ability to successfully deploy organizational IT skills and resources. Furthermore, shareholders pursuing long-term oriented goals are interested in consistent investments to develop organizational capabilities, such as IT capability. Consequentially, the question arises how a firms ownership structure is related to its IT capability. This research question is addressed by analyzing secondary data on publicly listed U.S. companies of the last ten years. The results provide support for the hypothesized relation throughout the investigated period and withstand several control and robustness tests. This study contributes to the ongoing research on IT capability by showing that certain types of shareholders promote the development and deployment of IT capability which in turn influences strategic topics. Findings further confirm that decisions on IT investments characterized by long-term benefits must be backed by owners with a corresponding long-term investment horizon

"Foreign Direct Investment and the Performance of MNCs: Taiwanese Firms' in People's Republic of China and Southeast Asia"

This study draws upon a firm level database from Taiwan to study the foreign direct investment (FDI) behavior of firms. An econometric model based on economic theories of the MNC behavior is used for carrying out the empirical analysis. The performance of Taiwanese firms with FDI in Mainland China(PRC) and South-East Asia can be explained by this model that focuses upon capital utilitization, management experience, industrial and macroeconomic environment. The results show that the higher the asset utilization efficiency, the better is the subsidiary performance. Furthermore, the more sound the fundamental macroeconomic and other conditions in countries invested and the lower the labor cost, the better is the operational performance of the subsidiary companies. Also the higher the industrial market value and the more abundant the capital of the parent company, the better is the subsidiary performance. However, the results do not settle definitively whether management capability increases the subsidiary performance. There is no statistically significant influence of the management capability of an MNC from Taiwan engaging in foreign direct investment on its subsidiaries' performance.

An integrated innovation model: how innovations are born and what are their impacts on firm performance?

The main objective of this paper is to present a comprehensive and integrated model of innovation at the firm level and to discuss the effects of firm characteristics on the innovativeness capabilities of companies. The results are based on an empirical survey covering 184 manufacturing firms in the Northern Marmara region within Turkey. In this study, first an integrated model of innovativeness is proposed. Later, the innovation determinants, especially firm characteristics, which have a significant role on innovation development success, are analyzed together with how innovativeness of firms influences their competitiveness and performance

Developing a dominant logic of strategic innovation

Purpose: This paper aims to lay the foundations to develop a dominant logic and a common thematic framework of strategic innovation (SI) and to encourage consensus over the field’s core foundation of main themes. Design/methodology/approach: The paper explores the intersection between the constituent fields of strategic management and innovation management through a concept mapping process. The paper categorizes the main themes and search for common ground in order to develop the core thematic framework of SI. The paper looks at the sub-themes of SI in published research and develops a more detailed framework. The conceptual categories derived from the process are then placed in a logical sequence according to how they occur in practice or in the order of how the concepts develop from one other. Findings: The results yield seven main themes that form the main taxonomy of SI: types of SI, environmental analysis of SI, SI planning, enabling SI, collaborative networks, managing knowledge, and strategic outcomes. Research limitations/implications: The new thematic framework the paper is proposing for SI remains preliminary in nature and would need to be tried and tested by researchers and practitioners in order to gain acceptability. Academic rigor and methodological structure are not sufficient to determine whether our conceptual framework will become widely diffused in academia and industry. It would have to pass through an emergent, evolutionary process of selection, adoption and an inevitable degree of change and adaptation, just like any other innovation. Practical implications: The practical implications concern the production of instructive material and the application of strategic management initiatives in industry. The proposed themes and sub-themes can serve as a logical framework to develop and update publications, which have been instrumental in their own right to shape the field. The paper also provides a checklist of potential research projects in SI, which will improve and strengthen the field. The new framework provides a comprehensive checklist of strategic management initiatives that will help industry to initiate, plan and execute effective innovation strategies. Originality/value: The concept mapping of the themes of SI yields a new dominant logic, which will influence the evolution of the field and its relevance to both academia and industry

Housing supply chain model for innovation: research report

The aim of this research is to undertake a case study analysis of successful delivery of an innovation to the Australian housing construction industry. This study is conducted on the “innovator group”; that is, the group that created the idea of an innovation for the housing sector and then were intimately involved in creation, development and diffusion. It is apparent that there were key players involved in this process which are representative of various organisations along the supply chain – designer, developer, subcontractor and supplier. Much rhetoric states that integration of the supply chain actors will solve construction problems, however, in reality we know little beyond this in the Australian context as there has been little research conducted previously. This study will examine in detail the process undertaken by this particular group to deliver an innovation to the housing sector which required an integrated construction supply chain model. This report was published by the Australian Housing Supply Chain Alliance and written by Professor Kerry London, School of Property, Construction and Project Management, RMIT University with Research Fellow, Jessica Siva

Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

Thinking locally: Exploring the importance of a subsidiary-centered model of FDI-related spillovers in Brazil

This paper investigates FDI-related spillovers in Brazil for the period 1996-2005. In contrast to most previous recent studies, which have failed to identify any significant effects in emerging economies, we found that horizontal spillovers did arise in Brazil. However, they did not arise simply as a consequence of general FDI-mediated technology transfer from MNC headquarters, as the standard approach presumes. Nor were they associated with expected inter-industry differences in technological intensity, or with differences in domestic firms’ absorptive capability. Instead, spillovers were associated with the existence of particular kinds of localized knowledge-creation activities undertaken by subsidiaries. We discuss the theory and policy implications that emerge from these results.FDI spillovers, subsidiaries, heterogeneity, localized innovation, Brazil, productivity, innovation