Rethinking the "mirroring" hypothesis: implications for technological modularity, tacit coordination, and radical innovation

Studies of the 'mirroring' hypothesis have demonstrated the relationships between technological modularity and explicit coordination, yet little is known about the 'mirroring' relationship between technological modularity and tacit coordination, and how the 'mirroring' relationship may affect radical innovation. This paper contributes to the 'mirroring' hypothesis by identifying the interaction mechanisms embedded in and surrounded over the mirroring relationships. Using survey data of 121 high-tech firms in China, our study indicates that technological modularity enhances interfirm tacit coordination between module-makers ('mirroring' hypothesis), and will also positively influence radical innovation ('outcome' hypothesis). Moreover, tacit coordination negatively moderates the impact of technological modularity on radical innovation ('interaction' hypothesis), indicating that the 'mirroring' relationship may offset the benefit obtained from modularization. It also suggests that, in a high-technology industry in underdeveloped areas, tacit coordination could lead to exposure of hidden knowledge, thus lowering module-makers' motivation for technology breakthrough

The emergence of interactions as strategic entities in value chain networks

Purpose: The article analyses the interactions that are engaged in when specialist organisations collaborate in value chain networks. It aims to bridge the gap between existing theory and emerging practices and identify a conceptual foundation for future research and practical application. Interaction costs are described as including transaction costs plus the costs for exchanging ideas and information. Design/methodology/approach: The paper adopts a conceptual approach, and introduces the basic elements of an interaction theory based on past theory and current practices. Findings: In an increasingly global economy, reducing risks while maximizing returns for emerging business models are a key concern. The article puts forward the view that as interaction costs decrease, potential business partners have greater scope to interlink their business strategies and operations to co-create value. It discusses the nature of interactions and highlights three factors that are either reducing interaction costs or increasing the effectiveness or frequency of interactions, thus increasing their facility for business purposes: the convergence of technologies, the delineation of roles within value chain business networks, and the emergence of innovative interaction strategies among network participants. It concludes by emphasizing the importance of an interactions strategy through an analysis of IKEA’s business model from an interactions perspective. Originality/value: The paper provides the basis of an interactions framework for researchers and practitioners to analyse value adding activities and to develop strategies in value chain networks

Evaluation of Business Processes for Business Process Standardization

Companies often implement multiple process variants in their organizations at the same time. Often these variants differ widely in terms of efficiency, quality and cycle time. In times of highly volatile global economic markets, companies cannot afford unnecessary redundant business processes. Business Process Standardization has therefore become a major topic in the field of Business Process Management, both in research and practice. Management decisions concerning standardization are difficult and complex, due to limited project budgets, organizational and technological changes as well as the increasing challenges of globalization. Choosing suitable processes for standardization is the essential precondition for streamlining business processes in the first place and therefore for reaping the full benefits of Business Process Standardization. However, there is hardly any tool available that supports the evaluation of business processes for standardization. To close this research gap, we develop an instrument for the evaluation of business processes in the context of Business Process Standardization with the aim to help practitioners in their day-to-day operations. Our research aims at providing the necessary preconditions for companies to profit from the advantages of business process standardization and to support decision-making

What is Strategic Competence and Does it Matter? Exposition of the Concept and a Research Agenda

Drawing on a range of theoretical and empirical insights from strategic management and the cognitive and organizational sciences, we argue that strategic competence constitutes the ability of organizations and the individuals who operate within them to work within their cognitive limitations in such a way that they are able to maintain an appropriate level of responsiveness to the contingencies confronting them. Using the language of the resource based view of the firm, we argue that this meta-level competence represents a confluence of individual and organizational characteristics, suitably configured to enable the detection of those weak signals indicative of the need for change and to act accordingly, thereby minimising the dangers of cognitive bias and cognitive inertia. In an era of unprecedented informational burdens and instability, we argue that this competence is central to the longer-term survival and well being of the organization. We conclude with a consideration of the major scientific challenges that lie ahead, if the ideas contained within this paper are to be validated

The inefficiency of quasi–per se rules: Regulating information exchange in EU and U.S. antitrust law

10.1111/ablj.12155American Business Law Journal57145-11

The Role of KM Tactical Factors in Supply Chain Management for Gaining Competitive Advantage

Supply chain management (SCM) has assumed a leading operations strategy position in both manufacturing and service industries, and over the past 10 years companies have seriously implemented supply chain management strategies in their organizations. knowledge management(KM) is a major enabler of supply chain management, and is a critical element in information intensive and multi-cultured enterprise environments. The present study aimed to investigate the role of KM tactical factors in gaining competitive advantage in organizations. For this purpose, four tactical factors of KM (knowledge acquisition, knowledge sharing, learning from KM process, and knowledge application) and five indicators of gaining competitive advantage (timely supply of products) were studied and the relationships between them were analyzed.The statistical findings confirmed the effect of KMtactical factors on gaining competitive advantage. In addition, the results indicated that KM process should be scientifically implemented by using experts to gain competitive advantage. Creating the necessary infrastructures and appropriate acculturalization seem essential

Decision-Making Uncertainty, Need for Cognitive Closure, and Supply Chain Performance

Most firms must acquire materials or services from their suppliers. They use these materials or services, add value to them, and sell them to others. Supply disruptions, commonly known as the bullwhip effect, have been a major challenge facing supply chain firms. Although previous research of operational or structural causes of supply disruptions or supply disruption risk created by situational factors and buyer perceptions and associated impacts on supply chain performance has been conducted, it has not linked the relationship of decision-making uncertainty and need for cognitive closure (NFCC) with impacts on SCP. This study identifies and enhances the current operations management (OM) model by creating a new construct (consolidated buyer decision-making uncertainty (DMU)), and integrating the existing construct (NFCC), to model behavioral impacts on supply chain performance (SCP). It references and builds on over 120 literature sources. It targets purchasing managers that are extensively involved in the decision-making processes for purchasing decisions and are responsible for managing supply disruption risk. This study explores the individual\u27s effect on supply chain dynamics by analyzing the information search behavior of supply chain members in a complex decision process. An individual\u27s bounded rationality is inherent in the decision-making process. This study adds to the literature the use of DMU in connection with NFCC. Findings reveal that high NFCC purchasing decision-makers (vs. low NFCC) that are motivated to reduce discomfort associated with DMU, are also motivated to close on a decision. Individuals with high NFCC significantly correlated to increased overall SCP. However, knowledgeable and experienced high NFCC purchasing managers consistently make better purchasing decisions (high SCP) for their firms than less experienced high NFCC purchasing managers. The less experienced high NFCC purchasing managers may need training to better utilize supplier performance facts and data to develop confiden

Limits to Modularity: A Review of the Literature and Evidence from Chip Design

This working paper has been prepared as part of the East-West Center's research project on Globalization of Knowledge Work: Why is Chip Design Moving to Asia. In this paper, Dieter assesses what we know about the limits to modularity and their impact on firm organization and industry structure. He focuses on evidence form chip design, drawing on interview on 2002 and 2003 with a sample of 60 companies and 15 research institutions that are involved in chip design in the US, Taiwan, Korea, China and Malaysia. It is summarized "stylized" propositions of the modularity literature that are well-established, as well as predictions that are controversial. In addition, important limits to modularity and relevant management responses were reviewed.

Organizing knowledge sharing in networks: The theory

Introduction : over the past decade knowledge bas become a central concept in the field of organization studies. Knowledge helps companies to outperform competitors (Winter 1987). Knowledge can be compared with an accurate map. Having a map of the territory in which we want to travel gives us the coordinates of the places we want to go to and routes to get there. The map enables efficient travelling and avoid moving around by trial and error. Thus knowledge about technology, customers competitors and ways of organizing helps organizations to act efficiently and effectively