paper or plastic how we pay influences post transaction connection does the way that individuals pay for a good or service influence the amount of connection they feel after the purchase has occurred employing a multi method approach across four studies individuals who pay using a relatively more painful form of payment e g cash or check increase their post transaction connection to the product they purchased and or the organization their purchase supports in comparison to those who pay with less painful forms of payment e g debit or credit card specifically individuals who pay with more painful forms of payment increase their emotional attachment to a product decrease their commitment to nonchosen alternatives are more likely to publicly signal their commitment to an organization and are more likely to make a repeat transaction moreover the form of payment influences post transaction connection even when the objective monetary cost remains constant and when the psychological cost is indirect i e donating someone else s money increasing the psychological pain of payment appears to have beneficial consequences with respect to increasing downstream product and brand connection

dynamics of niche width and resource partitioning this article examines the effects of crowding in a market center on rates of change in organizational niche width and on organizational mortality it proposes that although firms with wide niches benefit from risk spreading and economies of scale they are simultaneously exposed to intense competition an analysis of organizational dynamics in automobile manufacturing firms in france germany and great britain shows that competitive pressure not only increases the hazard of disbanding but also prompts organizational transformations that give rise to processes of resource partitioning emphasizing the content process distinction in conceptualizing organizational change the article finds that the process effect of changes in niche width and position increases mortality hazards we discuss our findings in light of the processes investigated by the ecological theories of density dependence resource partitioning and structural inertia and point to the theoretical links that help to integrate these theories

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 strategic changes reactions from analysts reflecting inertial expectations of investors may persist for a time despite changes to firms strategies thus creating challenges for some firms in responding to technological change and industry convergence while legitimating and enabling similar responses from their competitors

managing technological development lessons from the newly industrializing countries this survey looks at the technological development of the newly industrializing countries to draw some important lessons for firms and governments in other developing countries first inventing products and processes is not at the center of the technological development needed for successful industrialization it is at the fringe what is at the center is acquiring the capabilities needed for efficient production and investment second some countries have overemphasized the drive for technological self sufficiency and paid a high price in poor productivity what makes the best economic sense is to combine foreign and local technological elements and to do this in a way that progressively develops local capabilities in areas where they can be more efficient third the acquisition of technological capability does not come merely from experience though experience is important fourth the economic environment through its influence on the technological efforts of firms is very important in determining the productivity of a country s resources

a status based model of market competition this article explores the significance of status processes for generating and reproducing hierarchy among producers in a market it develops a conception of a market as a status order in which each

asymmetric selection among organizations we discuss the creation of organizations and their survival as distinct selection processes and consider the significance of their divergence in particular to understand the implications of entrepreneurial booms we propose the possibility of asymmetric selection where entry selection and exit selection differ from each other in strength an observed increase in founding rates hence may reveal a decline in the selection threshold for entry implying lower average fitness among boom time entrants when such an expansion occurs organizations born during these periods of heightened entry should suffer higher failure rates if the fitness threshold required for survival remains stable or becomes more stringent we also discuss other processes that might educe founding waves and explain the different implications of these accounts for our empirical model estimates of the model support our theory of asymmetric selection in two out of three markets using a comprehensive dataset describing organizations in the us computer industry copyright 2003 oxford university press

user industry spinouts downstream industry knowledge as a source of new firm entry and survival recent scholarship on entrepreneurship suggests that the pre entry know how of start ups embodied in their founders affects not only entry but also performance although prior work focuses on new entrants from the focal industry i e employee spinouts and academic organizations i e university spinoffs this study identifies and examines a hybrid category of start ups from downstream user industries which we call user industry spinouts we draw from the literature on evolutionary theory user innovation and industrial dynamics to propose that given the unique combination of knowledge inherited by these entrants their choices at entry and their ability to survive in the focal industry will differ with respect to other start ups we do this by extending existing work on new firm creation to investigate entry and performance in different product markets our findings based on a dataset of start ups in the semiconductor industry over a 10 year period 1997 2007 show that user industry spinou

explaining the attacker s advantage technological paradigms organizational dynamics and the value network abstract understanding when entrants might have an advantage over an industry s incumbent firms in developing and adopting new technologies is a question which several scholars have explained in terms of technological capabilities or organizational dynamics this paper proposes that the value network the context within which a firm competes and solves customers problems is an important factor affecting whether incumbent or entrant firms will most successfully innovate in a study of technology development in the disk drive industry the authors found that incumbents led the industry in developing and adopting new technologies of every sort identified by earlier scholars at component and architectural levels competency enhancing and competency destroying incremental and radical as long as the technology addressed customers needs within the value network in which the incumbents competed entrants led in developing and adopting technologies which addressed user needs in different emerging value networks it is in these innovations which disrupted established trajectories of technological progress in established markets that attackers proved to have an advantage the rate of improvement in product performance which technologists provide may exceed the rate of improvement demanded in established markets this mismatch between trajectories enables firms entering emerging value networks subsequently to attack the industry s established markets as well

government policy and performance of the indian engineering industry abstract a major liberalization of the indian industrial policy framework has been undertaken in the 1980s the proponents of liberalization expected not only a general increase in the efficiency of indian industry but also an improvement in its innovative performance detailed industry studies as well as macro level data suggest that the simultaneous liberalization of industrial licence and foreign technological collaboration policies resulted in a large scale entry of new firms into a range of industries industry structures best characterized as miniature replications of the global industry were created chiefly in response to an inherently large demand for foreign disembodied technology in the indian industrialization model foreign technological collaborations became the overwhelming source of product technology in the process the indian capital goods industry has been given the opportunity to better fulfil its role as diffuser of globally generated new technology to indian customers in doing so the liberalization measures have been successful in improving the performance of indian industry within the limits of an import substituting industrialization model the extremely fierce competitive situation coupled with nearly free access to foreign technology has however not been associated with an improvement in the indian engineering industry s innovative performance indeed the greater domestic competition has been associated with greater technology imports rather than greater in house innovative efforts

the ecology of organizational mortality american labor unions 1836 1985 this research analyzes the disbanding rates of the full population of american national labor unions for the period 1836 1985 it tests the hypothesis drawn from population ecology theory that di

firm survival and industry evolution in vertically related populations this paper examines how the density and governance of vertically related populations affect the life chances of organizations we integrate the literatures on organizational ecology and vertical integration to develop a theory of how 1 specialized upstream industries affect downstream survival rates 2 the prevalence of different governance forms among upstream and downstream organizations moderates this relationship and 3 different forms of governance exert differential competitive pressures on focal organizations we find evidence supporting our hypotheses in an empirical examination of the downstream laser printer industry and upstream laser engine industry this paper was accepted by jesper sorensen organizations

incumbent entry into new market niches the role of experience and managerial choice in the creation of dynamic capabilities increasingly technological innovation creates markets for new products and services to survive firms must respond to these new markets how do firms develop the capabilities necessary to succeed in such changing conditions some suggest that experience with previous entry builds such capabilities others suggest that capabilities arise from experience producing and selling to existing markets the role of managers is also debated some argue that experience with existing markets causes managers to miss entry opportunities others argue that managers enter new markets when their firm possesses the experience needed to compete effectively in this paper we explore these issues by investigating entry patterns in the disk drive industry we investigate the effect of experience in existing markets and experience with previous market entry we find that experience in previous markets increased the probability that a firm would enter a new market we show that this experience had greater value if the firm entered the new market we infer that managers chose to enter these markets to obtain this increase in value

inward technology transfer and competitiveness the role of national innovation systems this paper examines the role of national innovation systems in the inward transfer of technology that has underpinned the transformation of japan and other east asian economies since 1945 the economies that have benefited most from inward technology transfer have national innovation systems that have strengthened their national absorptive capacity this capacity relies primarily on investments in scientific and technical training and on economic policies that enforce competition among domestic firms the particular channels for inward technology transfer the identity of any strategic industries targeted for public intervention and the overall level of a nation s trade restrictions are ail of secondary importance a central theme of global economic change during the postwar period has been the application in less developed countries of technologies developed within economically advanced regions this phenomenon underpinned the post 1945 transformation of japan and other east asian economies and influenced the reconstruction of western european economies after world war ii the application of externally developed technologies within latecomer economies is hardly unique to the postwar period however samuel slater s introduction of british textile manufacturing is but one example of inward technology transfer in the nineteenth century us economy and david 1992 traces the origins of patent monopolies to efforts by medieval european city states and nations to attract experts in industrial arts to practice their craft within these jurisdictions both international technology flows and government efforts to influence them for national competitive advantage thus have ample historical precedent several characteristics nevertheless distinguish the post 1945 era from earlier historical periods the influence of international technology transfer on national economic development has increased as the postwar development of such economies as taiwan and south korea has relied much less on natural resource endowments than nineteenth

technical change growth and trade new departures in institutional economics this article analyses the main theoretical and policy issues emerging from the literature on the evolutionary institutional economics of technical change the four distinguishing characteristics of which are that technology is often proprietary in nature only a part of knowledge is codifiable in handbooks blueprints patents and so on there are fundamental variations in the above two points across different technological fields and the evolution of knowledge is highly path dependent

dominance by birthright entry of prior radio producers and competitive ramifications in the u s television receiver industry the u s television receiver industry evolved to be an oligopoly dominated by firms that produced radios prior to tvs data on the experience of all u s radio manufacturers and on the length of survival and rate of innovation of all u s tv entrants are collected to analyze how radio experience influenced entry firm performance and the evolution of market structure in the tv industry consistent with a model of the evolution of an oligopolistic industry more experienced radio firms were more likely to enter tv manufacturing had higher innovation rates and in turn had greater market shares and longer survival suggesting that firm capabilities and the evolution of the tv industry s market structure were critically shaped by firms experience prior to entry copyright 2000 john wiley sons ltd

sources of transfer problems in within industry diversification this research examines how firms accumulation of experience in other markets within an industry causes transfer problems and limits the performance advantage of within industry diversification using data on the japanese nonlife insurance industry between 1907 and 1940 we demonstrate that a firm s performance in a focal market decreases with more experience in other markets i e nonfocal markets this cumulative nonfocal market experience causes managers to transfer preexisting routines extensively and inappropriately to the focal market we show that the negative effect deteriorates when the firms have already entered such nonfocal markets prior to their entry into the focal markets and such nonfocal markets are populated by performance comparable peers we also find that the negative effect increases when firms transfer knowledge from nonfocal markets in which the focal market has low realized financial synergies and when firms experience prior to entry into the focal market was successful these findings explicate mechanisms by which negative performance effects of within industry diversification occur and advance our understanding of within industry diversification by applying the idea of transfer problems from the literature on organizational learning

technology production and technology purchase in indian industry an econometric analysis an econometric analysis of the decisions of indian firms to invest in their own r d and to purchase technology through licensing agreements is undertaken these decisions are treated as being jointly determined by characteristics of indian industries indian prices and the supply of purchasable foreign technology the study finds that industrial structure firm size and public and private ownership influence the mix of own r d and technology purchase the pool of purchasable foreign technology indices both increased adaptive r d and technology purchase by indian firms copyright 1989 by mit press

managing electric power system transition in china abstract this research studies the low carbon transition of the electric power sector in china using a multi level perspective mlp of niches socio technical regime and landscape as well as literature on innovation systems three lines of thought on transition process are integrated in the paper to probe the possible transition pathways in china a mlp analysis is presented to understand the current niches regime and landscape of china s power sector a brief analysis on the future macroscopic socio economic transition in the process of industrialization urbanization and modernization of chinese society and its implication on power landscape are depicted to prove the urgency and magnitude of transition in china and why systematic transition management is needed five transition pathways namely reproduction transformation substitution reconfiguration de alignment re alignment and reconfiguration with their possible technology options are presented the paper goes further to propose an interactive framework for managing the transition to a low carbon energy system in china representative technology options are appraised by employing innovation theory to indicate the logic of policymaking within the framework institutional gaps in realizing the transition are also addressed the work presented in the paper will be useful in informing policy makers and other stakeholders and may provide references for power sector transition management in other countries

learning and technical progress in the commuter aircraft industry an analysis of embraer s experience abstract companies in industrializing nations face major hurdles when moving into complex and highly competitive manufacturing industries this paper examines the example of such an entrant the brazilian aircraft company enbraer the paper is concerned with the technological strategy pursued by embraer and its learning experience with the brasilia commuter turboprop which achieved a 25 world market share in its seat category due in no small measure to its cost competitiveness and technological proficiency the paper presents econometric evidence of substantial learning effects as captured by the learning curve elasticities of the brasilia which conforms to frontier parameters although embraer was successful in its early product offerings aimed at a narrow niche its subsequent difficulties in moving to a broader product line and sustaining its technological development illustrate some of the problems that industrializing nations enterprises may encounter in building on a successful entry in technology intensive industries at a time of growing competition without crafting alliances to share the large associated technological and commercial risks

product demography of de novo and de alio firms in the optical disk drive industry 1983 1999 little theory and research addresses the ways organizational context affects the demography of products we examine this question here by focusing on an organization s mode of market entry specifically we explore differences between firms entering a market de novo start up and those entering de alio diversification from another market we analyze all products ever shipped in the worldwide optical disk drive odd industry 1983 1999 we find an almost paradoxical empirical pattern whereby de novo firms typically introduce products with widely agreed upon better that is universally more appealing technological characteristics yet these products generally stay on the market for a shorter time than those of de alio firms whose products generally display less appealing technological features

technology policy for industrialization an integrative framework and korea s experience abstract first this article reviews three policy perspectives 1 the market mechanism perspective includes the demand for and supply of technology and the linkage between the two 2 the technology flow perspective consists of technology transfer diffusion and r d 3 the dynamic perspective refers to technological trajectory it then integrates these three perspectives to develop a new three dimensional framework that may be useful to analyze technology policy for industrialization second this article applies the framework to analyze korea s technology policy as a case in point conclusions are 1 technology policies on foreign technology transfer technology diffusion and r d should change over time in response to changing external environment 2 technology policies become effective only when three major components policies to promote the demand side of technology policies to promote the supply side of technology and policies to provide effective links between demand and supply sides are well balanced finally it discusses implications for other developing countries

letting the market work for you an evolutionary perspective on product strategy managers must choose to allocate scarce resources either to the maintenance of a range of products tailored to heterogeneous consumer preferences or to the efficient production of a small number of products in addition managers must choose the degree to which they periodically cull the product line vigorous selection removes poor performers from the product line but this action simultaneously impairs the firm s ability to monitor changes in consumer preferences empirical evidence from the computer workstation industry reveals that the ideal choice of product variety depends on the competitive ecology of the industry product variety becomes less valuable as the total number of products on the market increases but it increases in value as uncertainty makes the accurate prediction of demand difficult copyright 2000 john wiley sons ltd

large firms in the production of the world s technology an important case of non globalisation us patenting by 686 of the world s largest manufacturing firms shows that their share of the world s production of technology is less than their share of r d activities and varies greatly amongst sectors in most cases the technological activities of these large firms are concentrated in their home country the characteristics of which influence the volume and trends in their technological activities much more strongly then the international component of these activities at the same time these large firms are major elements in the volume and the pattern of sectoral specializations in their home countries technological activities

the role of investment efficiency in the industry life cycle this article studies a dynamic model of an industry life cycle based on increasing returns in the cost of growth whereby large firms can grow more easily when there are strong increasing returns in the adjustment cost function the model exhibits multiple rest points and firms do not necessarily all end up in the same state the model generates typical life cycle stages including a shakeout the likelihood of survival is positively correlated with the entering size an implication that fits empirical findings that exiting firms are small not only just prior to exit but also at the time of entry the model also explains newer findings on the evolution of moments an increase in the skewness and the spread of firm size distribution before the shakeout and a decline in these with the start of the shakeout copyright 2010 the author 2009 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

u s technological leadership where did it come from and where did it go abstract during the quarter century following the second world war the united states was the world s most productive economy by virtually all measures and the technological leader across a very broad front this paper is concerned with the sources of u s technological leadership during that era and the reasons for the erosion of that leadership it is proposed that there were two distinguishable components of post war u s technological dominance one was a lead in mass production industries and this was of long standing the other was leadership in high technology industries due to massive american investments in science and technology eduction and research and development and this was new the u s advantage in mass production industries eroded when after bretton woods the world became a common market the u s preeminence in high technology industries diminished as other countries matched u s investments in science and technology it is argued that since the late 1960s the major industrial nations are bound together technologically as never before