The evolution of alliance capabilities

evolution, alliance

The Birth of a New Industry: Entry by Start-ups and the Drivers of Firm Growth. The Case of Encryption Software

The paper analyses the birth of the Encryption Software Industry (ESI), a new niche in the software industry. Using a Chandlerian perspective, this work reports the main facts about firm entry and growth, with a particular focus on start-up strategies and actions. Since scale economies do not play a major role in ESI, the paper investigates the different sources of firm competitive advantages. This work shows that innovation and product differentiation, along with investments in co-specialised assets, are variables strongly correlated to young firm probability to survive and grow. In so doing, we have collected highly detailed information on product introduction, US patents granted, worldwide alliances and biographical data of firm founders.Entry, Entrepreneurship, Innovation, Software.

The evolution of alliance capabilities

This paper assesses the effectiveness and differential performance effects of learning mechanisms on the evolution of alliance capabilities. Relying on the concept of capability lifecycles, prior research has suggested that different capability levels could be identified in which different intra-firm learning mechanisms are used to enhance a firm’s alliance capability. However, empirical testing in this field is scarce and little is known as to what extent different micro-level learning mechanisms are indeed useful in advancing a firm’s alliance capability. This paper analyzes to what extent intra-firm learning mechanisms help firms evolve their alliance capability and create competitive heterogeneity. Differential learning may induce firms to yield superior returns in their alliances in comparison to competitors. We present a conceptual model that assumes capabilities evolve through different types of learning. The results show that different learning mechanisms have different performance effects at different stages of the alliance capability development process. This points to differential learning effects of learning mechanisms at the different levels of alliance capability. The main lesson from this paper is that firms can influence the evolution of their alliance capability as different mechanisms have differential performance effects and are more appropriate at different levels of alliance capability

R&D Collaboration Networks in Mixed Oligopoly

We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur. A key finding of the paper is that state-owned enterprises may be used as policy instruments in tackling the potential conflict between individual and collective incentives for R&D collaboration.Networks, R&D Collaboration, Mixed Oligopoly

Globalisation of HR at Function Level: Exploring the Issues Through International Recruitment, Selection and Assessment Processes

Much of the debate around convergence-divergence is based around comparative analysis of HR systems. However, we need now to combine these insights with work in the field of IHRM on firm-level motivations to optimise, standardise and export HR models abroad. A series of the changes are being wrought on a range of IHRM functions – recruitment, global staffing, management development and careers, and rewards - by the process of globalisation highlighting the difference between globally standardised, optimised or localised HR processes. This paper reports on a study of firm-level developments in international recruitment, selection and assessment, drawing upon an analysis of four case studies each conducted in a different context. Organisations are building IHRM functions that are shifting from the management of expatriation towards supplementary services to the business aimed at facilitating the globalisation process, and this involves capitalising upon the fragmentation of international employees. As HR realigns itself in response to this process of within-function globalisation (building new alliances with other functions such as marketing and IS) the new activity streams that are being developed and the new roles and skills of the HR function carry important implications for the study of convergence and divergence of IHRM practice. Globalisation at firm level revolves around complexity, and this is evidenced in two ways: first, the range of theory that we have to draw upon, and the competing issues that surface depending on the level of analysis that is adopted; and second, the different picture that might emerge depending upon the level of analysis that is adopted. This paper shows that although the field of IHRM has traditionally drawn upon core theories such as the resource-based view of the firm, relational and social capital, and institutional theory, once the full range of resourcing options now open to IHRM functions are considered, it is evident that we need to incorporate both more micro theory, as well as insights from contingent fields in order to explain some of the new practices that are emerging

The birth of a new industry: entry by start-ups and the drivers of firm growth: The case of encryption software

The paper analyses the birth of the encryption software industry (ESI), a new niche in the software industry. Using a Chandlerian perspective, this work reports the main facts about firm entry and growth, with a particular focus on start-up strategies and actions. Since scale economies do not play a major role in ESI, the paper investigates the different sources of firm competitive advantages. This work shows that innovation and product differentiation, along with investments in co-specialised assets, are variables strongly correlated to young firm probability to survive and grow. In doing so, we have collected highly detailed information on product introduction, US patents granted, worldwide alliances and biographical data of firm founders.Publicad

Information and Communication Technology: Dynamics, Integration and Economic Stability

Information and Communication Technology (ICT) has become a major driver of investment and growth in OECD countries. The analysis puts the focus on key developments in the ICT sector and international outsourcing dynamics as well as the specific role of ICT in the financial sector. One can show that the expansion of ICT is not only contributing to national and international outsourcing but to insourcing as well. Furthermore, ICT affects regional integration. In the context of a modified Dornbusch model – including foreign direct investment – the impact of ICT on output and the exchange rate are discussed. The risk of overshooting in foreign exchange markets is likely to be reduced through the expansion of ICT which allows a more pro-active monetary policy.Integration, ICT, Growth, Foreign Exchange Markets, Stability

Using Alliances to Increase ICT Capabilities

Information and Communication Technology (ICT) is perhaps the most important, emblematic and ubiquitous technology of contemporary society. ICT is used increasingly in new product areas and help resolve problems and challenges to mankind; it has even gotten to a point where life without ICT is hard to imagine. Over the last decades ICT has become a core technology within the music, literature and media and many other industries, and reshaped the way we consume these services. For many incumbent firms, the infusion of ICT into their industries poses both threats and opportunities. It might drive significant shifts of financial wealth and make firm performance change drastically. It entails managerial challenges of a kind we might not have seen before, but where knowledge of what possibilities and limitations reside in ICT will be a key success factor. There are several possible ways to approach this challenge from ICT: recruitment, education, training, socialization and M&A are but a few examples. Another way is for the incumbents to team up with ICT firms and seek to learn, or at least access, the knowledge required to utilize the inherent power of ICT. This means that having an alliance, or even an alliance capability that lets you develop an ICT capability will be important. This thesis deals precisely with the challenges that arise when incumbents ally with ICT firms – our case is the security industry, which has had a strong analogue technology base in the past, but where ICT offers opportunity for business development now as well as in the foreseeable future. Based on a theoretical frame of reference, this book then uses empirical observations from four alliances within the evolving, global security industry to validate and develop an alliance framework that can be a great help to both practitioners as well as academia. Even though we suggest to approach the question of alliances with a three-legged model including Transfer Capacity, Relationship Governance and Cultural fit the framework in essence the framework caters for attempts at accessing knowledge and, thanks to the empirical conclusions made, alliances where the main benefit in the end might differ from initial aspirations. It also highlights the sometimes serendipitous and unexpected results of alliances, and that higher aspirations might have to be replaced by more modest ambitions. The fact of the matter is that that sometimes, grand visions of knowledge exchange and accumulation are simply not reachable. In fast-moving industries such as ICT, there might not be time and incentive enough to actually transfer knowledge, but instead ally to access finished products

Ethics and taxation : a cross-national comparison of UK and Turkish firms

This paper investigates responses to tax related ethical issues facing busines

Digital inclusion: the vision and reality

The benefits of a digitally inclusive society are vast and the need for such inclusion is now a requirement for full participation in our society. While the basic concept of universal digital inclusion is simple, the reality is a long way from the vision. Despite efforts to reduce it, inequality of access still exists. The beneficiaries of a digital society are not just the individual, but all stakeholders in the wider society. While the challenges to achieve a fully inclusive digital society are considerable, the knowledge of how to create such a society already exists. The creation of local venues f or inclusively designed ICT (Information and Communications Technology), support and learning in familiar places along with the harnessing of political will could make such a society a reality rather than a vision. With the cooperation of all stakeholders , actualisation of the vision of a digitally inclusive society, while challenging, will yield opportunities that eclipse the cost of implementation