Prof. JP Eggers (New York University)
- Datum: 24.06.2009
Zeit: 17:15 - 18:45
Ort: Raum 024, Ludwigstr. 28, RG
The Pursuit of Novelty: An Investigation of Which Firms Allocate Resources to Investigate Potentially Radical Innovations
Radical innovation is often associated with exploring novel linkages between different spheres of knowledge. Most management research on radical innovation states that adoption of radical technologies is an important strategic renewal mechanism for firms. But the research largely investigates which firms successfully pursue radical innovation, based on who enters new markets or adopts new technologies. This research moves the analysis one step earlier, investigating the decision to pursue potentially radical innovations that may or may not be successful. Using patent data to identify the novelty of knowledge linkages pursued by firms, we address two key questions about the strategic choice to pursue novel linkages. First, which firms are more likely to pursue novel linkages? And second, when are firms (over time) more or less likely to pursue novel linkages?
- Datum: 25.06.2009
Zeit: 17:00 - 19:00
Ort: Raum 307, Schackstr. 4 / 3.OG
Competing Technologies and Industry Evolution: The Benefits of Making Mistakes in the Flat Panel Display Industry
Managers at firms facing competing technologies emerging concurrently face a complex decision set, including options to invest in one technology or other, both technologies, or to wait to invest. This study investigates the role that experience, learning and timing play in affecting the firm-level pros and cons of each of these four strategies in a technological competing situation. Using a unique data set on the evolution of the global flat panel display industry, this study offers three key findings based on both product-level (product value) and firm-level (market share) performance. First, there is a late mover advantage based on the timing of the technological commitments made by firms. Second, there is an early mover advantage in broad technological learning that manifests as an increased ability to innovate, and that this advantage is roughly one-third to one-half the size of the late mover advantage. Finally, the combination of these two advantages provides an interesting case where firms that initially support the losing technology but later switch to the winning technology actually possess the greatest advantage. Tracking the evolution of competition in flat panel displays, organizational decisions, and both product- and firm-level outcomes, this study provides insight into the competing factors that motivate managerial decision-making.