Modularization as a system life cycle management strategy:Drivers, barriers, mechanisms and impacts

This literature-grounded research contributes to a deeper understanding of modularization as a system life cycle management strategy, by providing a comprehensive view of its key barriers, drivers, possible mechanisms of implementation and impact. This comprehensive view, arranged into a decision-making–driven ontology, enables a decision maker to systematically identify modularization implementation opportunities in different industrial and service domains. The proposed ontology transforms modularization into a fully operationalizable strategy and contributes to a paradigm shift in the understanding of modularization, from a pure design option (i.e. modularity) to a fully strategic choice that, by nature, impacts on many of the system’s life cycle phases and involves a number of stakeholders

Recombination in the Open-Ended Value Landscape of Digital Innovation

Digital innovation introduces a new open-ended value landscape to anyone seeking to generate or capture new value. To understand this landscape, we distinguish between design recombination and use recombination, explore how they play out together, and redirect the attention from products and services toward digital resources. Digital resources serve as building-blocks in digital innovation, and they hold the potential to simultaneously be part of multiple value paths, offered through design recombination and assembled through use recombination. Building on this perspective, we offer the value spaces framework as a tool for better understanding value creation and capture in digital innovation. We illustrate the framework and offer the early contours of a research agenda for information systems researchers

Enriching strategic variety in new ventures through external knowledge

To build profitable market positions, new ventures have to address multiple challenges on several fronts. These ventures can compete by being simple (focused) or applying varied ways to compete. The likelihood of these ventures remaining competitive depends on their ability to build novelty into their products and operations, an activity that requires infusing knowledge into their operations. Most ventures, however, have limited knowledge bases and the reach (scope) of their external connections is limited, a factor that prompts them to tap into different external sources in their local areas. This article reports an empirical study of 140 new ventures located in seven regional clusters in Spain. The results show that new ventures can enrich the variety of their strategic repertoire by accessing diverse sources of external knowledge and being exposed to external novel knowledge, while absorptive capacity moderates this relationship. The degree of social development of these clusters also has a positive impact on the strategic variety of new ventures, exhibiting an inverted U-shape curve

Organising the process of knowledge integration: The benefits of structural ambiguity

In this article we examine how loose coupling between units and people can benefit a firm's ability to combine and recombine knowledge-based resources continuously in a creative and flexible way. An in-depth study of Oticon A/S suggests that loose coupling can be deliberately brought into the design of the organisation by introducing a certain structural ambiguity into the configuration of role systems and authority relationships. In the first part of the paper, we show how loose coupling among units and people is a distinctive feature of the way Oticon organises its administrative activities. In the second, we explore the structural properties of a loosely coupled arrangement. We develop the concepts of multipolarity, fluidity and interconnectedness and we show how these properties conduce to an increase in the effectiveness, efficiency and flexibility of the processes of knowledge integration. Structural ambiguity is thus proposed as a viable design principle for organisations operating in hypercompetitive environment, where flexible knowledge integration represents a critical condition of survival

How do MNC R&D laboratory roles affect employee international assignments?

Research and development (R&D) employees are important human resources for multinational corporations (MNCs) as they are the driving force behind the advancement of innovative ideas and products. International assignments of these employees can be a unique way to upgrade their expertise; allowing them to effectively recombine their unique human resources to progress existing knowledge and advance new ones. This study aims to investigate the effect of the roles of R&D laboratories in which these employees work on the international assignments they undertake. We categorise R&D laboratory roles into those of the support laboratory, the locally integrated laboratory and the internationally interdependent laboratory. Based on the theory of resource recombinations, we hypothesise that R&D employees in support laboratories are not likely to assume international assignments, whereas those in locally integrated and internationally interdependent laboratories are likely to assume international assignments. The empirical evidence, which draws from research conducted on 559 professionals in 66 MNC subsidiaries based in Greece, provides support to our hypotheses. The resource recombinations theory that extends the resource based view can effectively illuminate the international assignment field. Also, research may provide more emphasis on the close work context of R&D scientists rather than analyse their demographic characteristics, the latter being the focus of scholarly practice hitherto

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

Intraorganizational evolution

Intraorganizational evolution (iOE) is a relatively new, emergent area of research. Although evolutionary metaphors have often surfaced in organization theory, attempts to analyze the evolutionary dynamics unfolding within organizations have been quite sparse and systematic only in recent years. The basic concepts and tools of iOE are thus still in the process of being shaped. As a subject of analysis, iOE is the set of processes through which intraorganizational entities of different types (e.g. routines, jobs, formal rules) reproduce and modify themselves, and change their relative frequency in populations of individuals carrying them. As a theoretical perspective, it is the attempt to apply the lens of evolutionary thinking to the observation and understanding of these processes

Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow

This paper explores the role of centrality and structural holes positions on the likelihood to develop new products and the moderating role of the open innovation flow, a measure of the net knowledge flow crossing the firm's boundaries, on the aforementioned relation. We argue that network positions provide the information content to the firm, whilst open innovation flow describes how the firm uses such content, thus the combination of these two concepts has a significant impact on new product development. We test the theoretical framework on a large sample of 544 public companies and data from 1758 agreements among 1890 bio-pharmaceutical firms through the period 2006-2010. Our results show that being centrally located in the network positively affects the new product development process, while having a structural holes position has no effect on the aforementioned performance. However, the interaction of the two network positions with the open innovation flow has a positive impact on the likelihood to develop new products