Strategic recommendations for new product adoption in the Chinese market

This study extended current understandings of the relationships among domain specific innovativeness (DSI), the desire for unique consumer products (DUCPs), perceived new product characteristics (PNPCs), and Chinese consumers’ new product adoption behavior. It also investigated the indirect effect of vicarious learning behavior on Chinese consumers’ acceptance of new products. Data was collected in Shanghai, China. The results demonstrated that DSI and PNPCs were the primary drivers of new product adoption. The study also showed that PNPCs played a mediating role in the relationship between vicarious learning and the adoption of new products by Chinese consumers. The results confirmed the predictive power of DSI and how PNPCs affect Chinese innovative buying behavior. The results also suggest that PNPCs facilitate Chinese consumers’ new product learning behavior. © 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group

Learning Sequences: Their Existence, Effect, and Evolution

Much is known about the importance of learning and some of the distinct learning processes that organizations use (e.g., trial-and-error learning, vicarious learning, experimental learning, and improvisational learning). Yet surprisingly little is known about whether these processes combine over time in ordered ways, because most research on learning explores one particular process. Using theory elaboration and theory-building methods and data on the accumulated country entries of entrepreneurial firms, we address this gap. Our core contribution is an emergent theoretical framework that develops the concept of learning sequences. We find that learning sequences exist and are influenced by initial conditions. We also find that learning sequences evolve in fundamentally distinct ways over time and with repeated use. Finally, data show how different learning sequences differentially affect both shorter- and longer-term performance, suggesting that it matters which learning processes are used and when. Overall, our findings on learning sequences have important implications for learning theory, international entrepreneurship, and the growing literature on process management

Entrepreneurial behaviour in a large traditional firm: exploring key drivers

Innovative use of resources to pursue opportunities has become vital for all organizations. Even large traditional firms operating in stable and mature markets increasingly stress entrepreneurial initiative as a key element in their strategic long-term orientation. While traditional management literature has identified contextual features that foster entrepreneurial activity, little research has looked at why -in the same objective organizational context- some managers act entrepreneurially and others do not. I recognize the importance of context in shaping managerial behaviour. However, while differences in the behavioural context might explain variance in entrepreneurial behaviour between companies, they fail to explain variance within the same company. Drawing on literature in entrepreneurship, strategic management, organizational behaviour and social cognitive theory, I present a model on the micro-foundations of entrepreneurial behaviour in large traditional organizations. I propose that entrepreneurial behaviour is largely affected by managers' subjective interpretations of their supportive context and their set of cognitive and emotional characteristics. Furthermore -acknowledging a proactive role of individuals in controlling their own behaviour and cognition- I introduce entrepreneurial self-efficacy beliefs -defined as managers' perceived capability to perform entrepreneurial tasks- as a critical influencer of actual entrepreneurial behaviour. I empirically test this model and use structural equation modeling (SEM) to analyze data from 150 middle managers of a large European financial service company striving to become "entrepreneurial". Preliminary findings reveal that managers' subjective interpretations of their sociopolitical support and access to resources significantly stimulate entrepreneurial behaviour. Contrary to the predictions of the literature, individual cognitive and emotional characteristics do not affect entrepreneurial behaviour directly, but are critical in shaping managers' perceptions of their "playground for action". Furthermore, findings suggest that managers' entrepreneurial self-efficacy beliefs are a powerful predictor of entrepreneurial behaviour. They are critical to translate perceptions of context and individual characteristics into behaviour, and represent an important cognitive and motivational device to steer and regulate entrepreneurial behaviour. Based on an explorative yet rigorous research design, this study broadens our understanding of the main determinants of entrepreneurial behaviour within established organizations and consolidates various streams of literature. Last but not least, it offers valuable insights for managerial practice on how to encourage entrepreneurial behaviour across multiple levels of the organization.Entrepreneurship; intrapreneurship; emotional intelligence

LEARNING FROM INTERORGANIZATIONAL PRODUCT FAILURE EXPERIENCE IN THE MEDICAL DEVICE INDUSTRY

Much research examines the causes of product failures such as the Ford Pinto gas tank design. Research also examines the consequences of product failures such as new product introductions resulting from the need to improve failed products. However, little is known about how the causes and consequences of product failures interact across different firms, and generate inter-organizational learning, within the same industry. Specifically, limited research has examined if a firm learns to reduce its own annual rate of product failures (e.g., experiences fewer product-related adverse events) by attending to the product failures and new product introductions of its competitors. In addition, we also do not know (1) how delayed reporting of product failure influences interorganizational learning, and (2) how the introduction of new products by one company impacts another firm’s effort to learn from this competitor’s product failures. To address these gaps, this dissertation develops and tests relationships between (1) inter-organizational learning from product failures, (2) product failure reporting delays, and (3) new product introductions. Regression analysis of 98,576 manufacturing firm-year observations from the medical device industry over a ten-year period (1998 to 2008) supports the proposed model. Specifically, the analysis supported two insights: (1) As expected, a competitor’s reporting delays can inhibit learning from others’ failures by increasing the chance of making poor inferences about the failure. Unexpectedly, however, delays can also improve inter-organizational learning because in reports that have taken longer to file, a clearer understanding of the failure’s cause-effect relationships is developed. iii (2) As expected, a competitor\u27s new product introductions positively impact interorganizational learning by transferring knowledge of product design between firms. Unexpectedly, a competitor’s new product introductions can also negatively impact inter-organizational learning from product failure by distracting the observing firm’s attention away from the competitor’s failures. The thesis contributes to the inter-organizational learning literature by: (1) modelling learning from others’ product failures, (2) highlighting the effects of reporting delays, and (3) showing how others’ new product introductions can distract. This thesis shows that learning from others’ product failures and new product introductions has significant benefits because it prevents serious injury and death among device users

Indirect learning: how emerging-market firms grow in developed markets

Some emerging-market firms have recently achieved substantial growth in developed markets despite having had little prior experience in these markets. What explains the performance of these firms? Building on the organizational learning literature, the authors argue that indirect learning (i.e., learning from the experience of others) plays a crucial role in explaining this phenomenon. Specifically, they propose that emerging-market firms that grow in developed markets overcome their lack of direct experience in such markets by learning indirectly through their leaders, competitors, and interfirm networks. The authors test their thesis by comparing the international growth in developed markets of a sample of emerging-market firms (116 Indian firms) with a sample of developed-market firms (160 U.K. firms). The results support the authors' thesis about the importance of indirect learning in explaining the international growth of emerging-market (relative to developed-market) firms in developed markets. The authors discuss the implications of these findings for policy makers in the areas of higher education, competition policy, and international trade as well as for managers in the areas of middle-management recruitment, competitor analysis and tracking, and managing interfirm networks

Keep it simple:External resource utilisation and incremental product innovation in resource-challenged South African manufacturing firms

This paper examines how firms in an emerging economy cope with resource challenges by implementing compensation strategies for incremental product innovations. The model is empirically tested using firm-level survey data from 497 South African manufacturing firms. Results show that higher diversity among a specific set of external knowledge sources is associated with a higher likelihood of incremental product innovation. Stronger embeddedness in non-domestic inter-organisational networks increases this likelihood as well. The positive effect of external knowledge diversity is more positive for higher levels of localised ties. Recommendations to enhance incremental product innovation concern the development of external relationships with domestic and international partners while limiting knowledge source diversity to a specific actor set. This paper shows that in an emerging economy firms have agency with which they can use contact learning leading to product innovations tailored to local market needs and opportunities

Divergent Reactions to Convergent Strategies: Investor Beliefs and Analyst Reactions During Technological Change

An important outcome of technological change is industry “convergence,” as a new technology spurs competition between established firms from different industries. We study the reactions of securities analysts, as important sources of institutional pressures for firms, to the similar product/market strategies undertaken by firms from different prior industries responding to industry convergence. Our empirical setting is the convergence between the wireline telecommunications and cable television industries in the period following the advent of voice over Internet protocol technology. Controlling for firm financial performance and capabilities, we find that analysts were consistently more positive toward the cable firms than toward the wireline telecom firms. Our findings further show that this divergence in reactions arises from differences in existing investor expectations and preferences concerning how firms create value; stocks owned by investors with a greater preference for growth receive more positive reactions than those owned by investors with a greater preference for margins. However, this divergence in reactions shrinks over time as convergence unfolds and as investors shift their shareholdings in response to misalignment between their preferences and firms\u27 strategic changes. Reactions from analysts—reflecting inertial expectations of investors—may persist for a time despite changes to firms\u27 strategies, thus creating challenges for some firms in responding to technological change and industry convergence while legitimating and enabling similar responses from their competitors

Red Queen competitive imitation in the U.K. mobile phone industry

This paper uses Red Queen competition theory to examine competitive imitation. We conceptualize imitative actions by a focal firm and its rivals along two dimensions: imitation scope, which describes the extent to which a firm imitates a wide range (as opposed to a narrow range) of new product technologies introduced by rivals; and imitation speed, namely the pace at which it imitates these technologies. We argue that focal firm imitation scope and imitation speed drive performance, as well as imitation scope and speed decisions by rivals, which in turn influence focal firm performance. We also argue that the impact of this self-reinforcing Red Queen process on firms’ actions and performance is contingent on levels of product technology heterogeneity—defined as the extent to which the industry has multiple designs, resulting in product variety. We test our hypotheses using imitative actions by mobile phone vendors and their sales performance in the U.K. from 1997 to 2008

When problems knock at the organization's door - a theory of motivation to change, problemistic search and choice of action:organization theory under a behavioral lens

In this dissertation, I focus on how decision makers respond to multiple performance-aspiration discrepancies by first using their firm’s position relative to aspiration levels to make sense of observed performance, and then making decisions based on their own interpretations of available information. In particular, the theoretical and empirical contributions of this thesis relate to the causes, underlying dynamics, and consequences of organizational change and the research methods involved in their study. Specifically, I take an approach that combines multiple theoretical perspectives – including the behavioral theory of the firm, threat-rigidity theory, institutional theory, and organizational learning theory – and multiple methodologies – such as computer simulation and statistical analysis (dynamic panel data analysis and multilevel modeling) – to stake out what I feel are new and dynamic avenues for exploring how decision makers interpret and act upon information concerning the performance of their organizations and the external environment. Such an exploration has occurred in two synergistic streams of research: the first stream investigates how and to what extent performance relative to aspiration levels affects organizational search (Paper 1) and strategic change (Paper 2, Paper 3). In so doing, it develops theory of managerial attention to goals, sense making, and decision making. The second, investigates how and to what extent in family firms the pursuit of a variety of non-economic goals shapes family owners’ and managers’ cognitive frameworks and their interpretation of the environment, entailing systematic differences between family and nonfamily firms in decision making (Paper 4)