Contested resources: unions, employers, and the adoption of new work practices in US and UK telecommunications

The pattern of adoption of high-performance work practices has been explained in terms of strategic contingency and in terms of union presence. We compare the post-deregulation/privatization changes in work practice at AT&T, Bell Atlantic and British Telecom. On the basis of these cases, we argue that the choice of new work practices should be understood as a consequence not only of the company's resources or changes in its environment, nor of a simple union presence, but also as a consequence of the practices' effects on union power, the nature of the union's engagement, and the union's strategic choices

Does innovation (really) matter for success? The case of an IT Consulting Firm

The paper discusses to what extent innovation is a crucial variable in explaining the success of NOVABASE, a Portuguese IT consultancy firm. In order to proceed with this discussion, the evolution of NOVABASE is described, emphasizing the most important steps in the firm’s trajectory, which are shown to result from the joint influences of upstream technological change, downstream market opportunities, and the firm’s strategic options. Then, the paper reviews some contributions stemming form studies of innovation in services, building on these to form the framework of analysis used in the empirical research. The main results of the empirical work are then presented, leading to the discussion of the possible answers to the question in title.

Global Strategy and the Acquisition of Local Knowledge How MNCs Enter Regional Knowledge Clusters

The paper addresses two recent interrelated phenomena: High- tech regional knowledge clusters, and globalization of R&D activities by multinational corporations (MNCs). Combining MNC literature; regional development literature; and literature on social networks, the paper discusses determinants of entry modes used by MNCs that localize R&D units in regional knowledge clusters. The paper states that the entry mode used by a MNC depends upon the type of agglomeration economies the latter seeks to appropriate: Those related to network relations; to local labor market specialization; or to institutional specialization. The paper adds theoretical insight into advantages and disadvantages of different entry modes with respect to appropriation of agglomeration economies, and special attention is dedicated to discussing acquisition. Through the use of an empirical case ¾ the entry of five MNCs into the Danish telecommunications cluster in Aalborg, the paper exemplifies its theoretical observations, but also points to how the evolution of a knowledge cluster may be severely affected by MNCs that enter through acquisition.MNCs; entry mode; acquisition; explorative R&D; regional clusters; localized learning; networks; telecommunications industry; North Jutland; Denmark.

Technological convergence in the IT industry : the role of strategic technology alliances and technological competencies

Abstract not availableeconomics of technology ;

Business model requirements and challenges in the mobile telecommunication sector

The telecommunications business is undergoing a critical revolution, driven by innovative technologies, globalization, and deregulation. Cellular networks and telecommunications bring radical changes to the way telecom businesses are conducted. Globalization, on the other hand, is tearing down legacy barriers and forcing monopolistic national carriers to compete internationally. Moreover, the noticeable progress of many countries towards deregulation coupled with liberalization is significantly increasing telecom market power and allowing severe competition. The implications of this transition have changed the business rules of the telecom industry. In addition, entrants into the cellular industry have had severe difficulties due to inexistent or weak Business Models (BMs). Designing a BM for a mobile network operator is complex and requires multiple actors to balance different and often conflicting design requirements. Hence, there is a need to enhance operators’ ability in determining what constitutes the most viable business model to meet their strategic objectives within this turbulent environment. In this paper, the authors identify the main mobile BM dimensions along with their interdependencies and further analysis provides mobile network operators with insights to improve their business models in this new ‘boundary-less’ landscape

Inertia and Change in the Early Years: Employment Relations in Young, High Technology Firms

[Excerpt] This paper considers processes of organizational imprinting in a sample of 100 young, high technology companies. It examines the effects of a pair of initial conditions: the founders\u27 models of the employment relation and their business strategies. Our analyses indicate that these two features were well aligned when the firms were founded. However, the alignment has deteriorated over time, due to changes in the distribution of employment models. In particular, the \u27star\u27 model and \u27commitment\u27 model are less stable than the \u27engineering\u27 model and the \u27factory\u27 model. Despite their instability, these two blueprints for the employment relation have strong effects in shaping the early evolution of these firms. In particular, firms that embark with these models have significantly higher rates of replacing the founder chief executive with a non-founder as well as higher rates of completing an initial public stock offering. Some implications of these findings for future studies of imprinting and inertia in organizations are discussed

An Empirical Model of Firm Behaviour A Dynamic Approach to Competence Accumulation and Strategic Behaviour

The aim of this paper is to develop and implement an empirical model of firm behaviour. The data applied are patent applications taken out by 16 multinationals within telecommunications. The first dimension of the model deals with the strategic behaviour of firms. Second dimension deals with the accumulation of technological competencies, and finally a test of persistence and diversification in the technological profile of the single firm over time is carried out. Three types of results are reported: 1. For a small number of firms the process of accumulating technological competencies is very unstable leading to fragile competence bases. 2. The main part of the firms experience incremental accumulation of technological competencies over time even though the environment is highly dynamic. 3. For some firms the dynamics of the environment through competitor activities influence the accumulation of technological competencies to such a degree that the strategic intent is not reflected in the competence base. These findings support the theoretical argument that the resource-based view is too narrow and should include the dynamic effects imposed upon the firm by the environment in which the firm operatesStrategic behaviour, accumulation of technological competencies, patents, methodology

Competence, specificity and outsourcing: impact on the complexity of the contract

This paper focuses on the link between the three types of specificity and the complexity of outsourcing contracts because specificity is generally considered as the most important transaction cost attribute. It also integrates external uncertainty in the model. External uncertainty is a multidimensional concept that reflects the lack of knowledge about events that may take place in the environmentoutsourcing; transaction cost economics; resource-based view; contracts; partial least squares

Comparing Chinese and the Indian Software MNCs: Domestic and Export Market Strategies and Their Interplay

China and India are emerging as major new entrants in the international software industry. Both are rapidly learning through outsourcing with multinational enterprises from advanced nations. Yet, their paths to this dynamic sector are very different. Chinese software firms have focused on their domestic market by working with foreign MNCs, while they move cautiously abroad. Indian firms, despite already being large, continue to expand overseas as well as to climb the value chain. We show that a macro perspective on the global movement of work can be gained by utilizing concepts from different approaches to the MNC. At the same time, the innovation systems perspective is necessary to explain the foundations of the industry. The paper provides hypotheses and performs an initial validation of them. It concludes that the internationalization and learning processes are somewhat different in the Chinese and Indian MNCs, and provides explanations for the different patterns.outsourcing, software industry, industrial development, MNCs, MNEs, multinational enterprise, China, India

Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK

Innovative firms face two major kinds of risks in developing new technologies: competence destruction and appropriability. High levels of technical uncertainty and radical changes in knowledge in some fields generate high technical failure risks and make it difficult to plan research and development programmes. They therefore encourage high levels of flexibility in acquiring and using skilled staff. Appropriability risks, on the other hand, encourage innovative firms to develop organisation-specific competences through investing in complementary assets, such as marketing and distribution capabilities, that involve longer-term employer-employee commitments to building complex organisations. These connections between technology risks and employment policies help to explain why different kinds of market economies with contrasting labour market institutions develop varied innovation patterns. This study focuses on subsectors of the computer software and biotechnology industries in three distinct Europea n countries, UK, Germany and Sweden, that vary in their level of technical change and appropriability.n/a