Innovative coordination of agribusiness chains and networks

To facilitate scientifically grounded innovative forms of strategic network coordination, this paper integrates two major bodies of literature on competitive advantage. The two bodies of literature are the industry-oriented outside-in approach, and the competence-oriented inside-out approach, here homogenized along the dimensions of degrees of firm embeddedness, respectively, the broadness of shared resource bases. The elements detailed are interfirm relationships, resource bases, network governance instruments, coordination mechanisms, the impact of events on network structures, and the active mobilisation of actors and resource. Thereby, the paper is able to detail 5 generic types of business networks. Next, it relates 21 network governance instruments to type of partnerships (binding vs loosening), forms of interaction (cooperative vs opportunistic). The realized reduction of network complexity enhances conceptual transparency and increases the instrumental usage of this research for effective network coordination by businesses. An integrated case illustrates the usefulness of the various concepts and the coherency of the different elements

The divergent transitions towards sustainable biofuel networks/chains

In this exploratory paper we investigate how Capabilities, Transaction Costs and Vertical Scope co-evolve, by testing the Jacobides & Winter (2005) model on the Biofuels Industry in the area of the EU. The theoretical framework is based on the Industrial Architecture theory but also on Transaction Costs Economics, Resource Based View and on the concept of the Dynamic Capabilities. Qualitative data on the institutional environment of the Biofuels Industry in the EU-15 was collected. Via interviews, qualitative data (case studies) was collected through interviews on the elements of productive capabilities, the vertical division of labour, knowledge and technology and attributes of the transactions. These conclusions include the verification of mechanisms 1 & 2 of the Jacobides & Winter (2005) model, in particular that the resources and capabilities determine the degree of vertical specialisation, with transactions costs as moderating factor. The conclusions of this project bring the need for further investigation on measuring the concepts of Capabilities and Transaction Costs together but also, on how to prescribe and measure the process of Capabilities development and the capabilities redistribution

The macro-environment for liquid biofuels in the German science, mass, media and government

The purpose of this study is to investigate under which dimensions the macro-environment for liquid biofuels has been structured during time, respectively by science, mass media, and government in Germany, and how these three social expressions related to each other. Research was carried out on German official government documents, mass media news, and scientific papers on the topic 'liquid biofuels'. Text Mining was used to extract knowledge from their content. The results indicate that in configurating the macro-environment for liquid biofuels there is some degree of proximity between media and government, less between media and science, and the least between government and science

The macro-environment for liquid biofuels in the US mass media, science and government

The purpose of this study is to investigate under which dimensions the macro-environment for liquid biofuels has been structured during time, respectively by science, mass media, and government in Germany, and how these three social expressions related to each other. Research was carried out on German official government documents, mass media news, and scientific papers on the topic ‘liquid biofuels’. Text Mining was used to extract knowledge from their content. The results indicate that in configurating the macro-environment for liquid biofuels there is some degree of proximity between media and government, less between media and science, and the least between government and scienc

Creating competition & mastering markets; New entrants, monopolists, and regulators in transforming public utilities across the Atlantic

This paper is on the transformation of network industries or public utilities in Western Europe and the United States (US). A network industry provides a public or basic service by operating a large infrastructure system whose main characteristics are strongly increasing returns to scale, high levels of capital intensity, deployment of long-lasting industrial assets, and of vital importance to the economy (e.g. telecommunication, energy, transportation systems, water distribution, postal services, broadcasting). The objective of this paper is to look at the transformation of utility markets and to investigate whether the (re-)engineering of utility markets has effectively produced new industrial structures and has generated alternative outcomes. And secondly, whether this deliberate process to stir up the competitive dynamic is thwarted by the combination of industrial predation (e.g. legacy systems and installed customer base) and incumbency power (market leadership, closeness to government, cross-subsidisation, information monopoly) favouring only modest and gradual change or by emergent and unexpected radical forces that have surprised both the omniscient market makers and those favouring the status quo. Introducing deregulation and liberalisation and engineering market dynamics in a utility world that is still characterised by partial competition and a persistent quasi-monopoly, is no easy matter. The process of de-monopolisation can be seen as the result of ongoing strategic and tactical interactions among incumbent operators and insurgent market players, tough bargaining between those firms and supervisory regulators, and difficult negotiations at the federal level of Washington and Brussels between the state administrations, their regulators and the transnational institutions. In order to create some form of dynamic rivalry in those "monopolistic" network-based industries, the emergence of new entry/exit and competition needs to be nourished and closely monitored and supervised: the emergence and persistence of competition needs to be engineered. The concept of engineering competition is somewhat ambiguous, since we should be both aware of the shortcomings of designing and managing markets and the limitations on and problems with self-organisation in regulation. Competition is a spontaneous process and is in the domain of human action, while "regulation" is a product of human design and contains instruments and toolboxes to intervene in a dynamic environment, and those two should not be mixed. Hence, despite the popularity of the term engineering competition, "engineering regulation", with a clear and intentional focus on devising an appropriate framework facilitating competition, is probably a better term

Bringing Blue Ocean Strategy to FMCG Markets

An emerging concept in strategic management directed at finding new business and value propositions is the framework coined ‘Blue Ocean Strategy’ (BOS) by Kim and Mauborgne, from INSEAD, Fontainebleau. The authors developed the BOS-framework, which comprises of a set of tools, on the basis of ex post studies of over 150 cases from 30 industries. The results were most extensively covered in the book ‘Blue Ocean Strategy’, published in 2004. The success of their work may be illustrated by, for example, Deloitte, Procter & Gamble, and HP, who use this strategic management concept.This scientific paper is one of the first that tests the applicability of BOS in Fast-Moving-Consumer-Good Markets (FMCG). Our prime objective is to investigate whether the application of BOS enables the identification of an uncontested market, or not. The second objective concerns the adaptations required to make the BOS applicable to the FMCG Industry. The field of research is the European fruit and vegetables industry (EFVI), which is one the most competitive industries in Europe, lacking fundamental innovations. The complexity of bringing BOS to FMCG Markets required a two-stage research strategy; the first stage comprises of the combination of desk research with orientational case study research, followed by a second stage comprising of a large survey. In the first stage, six CEOs, chairmen and consultants, were interviewed to tailor the research to the insider perspective. In the second stage, a quantitative questionnaire was send to 299 fruit and vegetable companies, active in Europe. The realized response was 24 (response rate: 8%). Although not high, the response may be understood as sufficient, because the research was primarily intended to learn whether the BOS-framework is strong enough to identify uncontested market spaces even in very competitive industries