Strategy, Technology and Innovation: Coping with Evolving Industries MBR Course, LMU Institute for Strategy, Technology & Organization Spring 2013

Transcription

1 Strategy, Technology and Innovation: Coping with Evolving Industries MBR Course, LMU Institute for Strategy, Technology & Organization Spring 2013 Instructor: J.P. Eggers Office Hours: By appointment Class Dates: Monday-Friday, 8 April 12 April, 2013 Class Times: 09:00-12:00 Class Location: Schackstr. 4/III, Room 307 COURSE DESCRIPTION This week-long module covers research on the organizational implications of technology competition and technological change. The course is centered in the strategy literature, but will draw on aspects of economics, organizational theory and innovation as well. The course will incorporate both seminal papers as well as recent work on topics including industry evolution, the sources of firm innovativeness and organizational inertia. By no means will we be able to cover every aspect of strategy and technology, but the goal is to understand the major factors that have been of interest in prior and current research. You have likely touched on at least a few aspects of interest for this course elsewhere in your previous education, but our goal here is to pull these diverse interests together in a way that allows us to build a more holistic view of strategy and innovation in organizations. The first session views technology evolution as largely exogenous to the organization, and considers the implications for organizational strategy of the factors affecting technological change. The second session considers how the nature of technological change and innovation affects key dynamics of competition entry, rivalry, and exit. The next two sessions focus on the ways in which technological change is importantly endogenous to organizations, namely the ways in which firms search for and manage the implementation of new technologies. Finally, we will consider a primary strategic aspect of how these factors interrelate by addressing the inertia or adaptability of incumbent organizations. Readings in each section are arranged in a logical (as opposed to a chronological) manner, but the range in dates of the articles in each session allows students to understand how thinking in each area has evolved over time. The articles within each topic incorporate a variety of theoretical and empirical approaches, giving us an opportunity to explore different ways of pursuing answers to some of the same questions, and also helping you to develop a portfolio of theories and methods with which you are familiar. There are two categories of readings included required readings (those listed first) and optional readings (those listed below the line ).

2 COURSE REQUIREMENTS 1. Class Participation. Class discussion and interaction are a crucial part of our synthesis of the material and learning. It is therefore vital that you come to every class, prepared and ready to contribute. Good participation includes asking questions, raising original ideas, making constructive comments, and having a positive attitude toward learning. Each student is expected to read all of the required readings for the week. Obviously, this is a compressed class, and the specific focus in not only on methodology. Therefore, while we will talk about methods for at least some papers, you should focus more attention on the framing, theory, and contribution of each paper. 2. Article Summaries. Additionally, once during the course each student will be asked to choose one additional reading (not a required reading) from the list of below the line readings on the syllabus. For this additional reading, you will create a short (~1 page) summary of the major points of the article, and quickly (<5 minutes) present the paper to the group. These summaries should include (but are not limited to): 1. Complete reference of the article 2. Very brief synopsis of the purpose of study or argument of paper 3. An explanation of the primary hypotheses/propositions and constructs in the paper 4. The methods used in the paper (if empirical) 5. Key findings/conclusions 6. Your assessment of strengths/weaknesses of the study or arguments 3. Research Proposal. Each student will be asked to create a short but detailed research proposal at the end of the course. This proposal should focus on a viable research topic centered in their own area of interest (psychology, strategy, economics, etc.), dealing with issues related to technology and/or innovation. The proposal should identify: (a) a specific research question, (b) why this question is interesting and novel, (c) the primary prior literature that serves as the audience for the proposal, and (d) how to investigate this question (methodology, data, etc.). There is no set length for the proposal, but three to five (3-5) pages (double-spaced) should be sufficient. The proposals are due via no later than Friday, 19 April, at 5pm EST. Grades will be determined as follows: COURSE GRADING Class Participation 50% Article Summary 25% Research Proposal 25%

3 1) The Nature of Technology & Innovation Dosi, G Technological paradigms and technological trajectories: A suggested interpretation of the determinants and directions of technical change. Research Policy, 11(3): Utterback, J. M. & Abernathy, W. J A dynamic model of process and product innovation. Omega, 3(6): Pavitt, K Sectoral Patterns of Technical Change: Towards a Taxonomy and a Theory. Research Policy, 13(6): Tushman, M. L. & Anderson, P Technological discontinuities and organizational environments. Administrative Science Quarterly, 31(3): Adner, R. & Levinthal, D Demand heterogeneity and technology evolution: Implications for product and process innovation. Management Science, 47(5): Anderson, P. & Tushman, M. L Technological discontinuities and dominant designs: A cyclical model of technological change. Administrative Science Quarterly, 35(4): Arthur, W. B Competing technologies, increasing returns, and lock-in by historical events. Economic Journal, 99(394): Jones, B.F The Burden of Knowledge and the Death of the Renaissance Man: Is Innovation Getting Harder? Review of Economic Studies 76(1) Klepper, S Industry Life Cycles. Industrial and Corporate Change, 6(1):

4 2) Industry Evolution, Entry & Competition Teece, D. J Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6): Lieberman, M. B. & Montgomery, D. B First-mover advantages. Strategic Management Journal, 9: Mitchell, W Whether or when? Probability and timing of incumbents' entry. Administrative Science Quarterly, 34(2): Klepper, S Entry, exit, growth, and innovation over the product life cycle. American Economic Review, 86(3): Klepper, S. & Simons, K. L Dominance by birthright: Entry of prior radio producers and competitive ramifications in the U.S. television receiver industry. Strategic Management Journal, 21(10/11): Franco, A. M., Sarkar, M., Agarwal, R., & Echambadi, R Swift and smart: The moderating effects of technological capabilities on the market pioneering-firm survival relationship. Management Science, 55(11): King, A. A. & Tucci, C. L Incumbent entry into new market niches: The role of experience and managerial choice in the creation of dynamic capabilities. Management Science, 48(2): Schilling, M. A Technological lockout: An integrative model of the economic and strategic factors driving technological success and failure. Academy of Management Review, 23(2): Suarez, F. & Lanzolla, G The role of environmental dynamics in building a first mover advantage theory. Academy of Management Review, 32(2):

5 3) Firm Innovativeness I The Search for Technologies Cohen, W. M. & Levinthal, D. A Fortune favors the prepared firm. Management Science, 40(2): Stuart, T. E. & Podolny, J. M Local search and the evolution of technological capabilities. Strategic Management Journal, 17: Katila, R. & Ahuja, G Something old, something new: A longitudinal study of search behavior and new product introduction. Academy of Management Journal, 45(6): Schilling, M. A. & Phelps, C. C Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation. Management Science, 53(7): Eggers, J. P. forthcoming. Competing technologies and industry evolution: The benefits of making mistakes in the flat panel display industry. Strategic Management Journal. Almeida, P., B. Kogut Localization of Knowledge and the Mobility of Engineers in Regional Networks. Management Science 45(7) Arora, A., Fosfuri, A., & Gambardella, A Markets for Technology and their Implications for Corporate Strategy. Industrial and Corporate Change, 10(2): Breschi, S., Lissoni, F., & Malerba, F Knowledge-relatedness in firm technological diversification. Research Policy, 32(1): Fleming, L Recombinant uncertainty in technological search. Management Science, 47(1): Galunic, D. C. & Rodan, S Resource Recombinations in the Firm: Knowledge Structures and the Potential for Schumpeterian Innovation. Strategic Management Journal, 19(12): Hargadon, A. & Sutton, R. I Technology brokering and innovation in a product development firm. Administrative Science Quarterly, 42(4): Mowery, D. C., Oxley, J. E., & Silverman, B. S Strategic alliances and interfirm knowledge transfer. Strategic Management Journal, 17:

6 4) Firm Innovativeness II Managing Innovation Van de Ven, A. H Central Problems in the Management of Innovation. Management Science, 32(5): Argyres, N. S. & Silverman, B. S R&D, organization structure, and the development of corporate technological knowledge. Strategic Management Journal, 25(8-9): Puranam, P., H. Singh, M. Zollo Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Academy of Management Journal, 49(2) Taylor, A. & Greve, H. R Superman or the Fantastic Four? Knowledge combination and experience in innovative teams. Academy of Management Journal, 49(4): Nerkar, A. & Roberts, P Technological and product-market experience and the success of new product introductions in the pharmaceutical industry. Strategic Management Journal, 25(8-9): Azoulay, P., Graff Zivin, J. S., & Manso, G Incentives and creativity: evidence from the academic life sciences. Rand Journal of Economics, 42(3): Bernstein, S Does going public affect innovation? Stanford University working paper. Dougherty, D Interpretive Barriers to Successful Product Innovation in Large Firms. Organization Science, 3(2): Lerner, J. & Wulf, J Innovation and incentives: Evidence from corporate R&D. Review of Economics & Statistics, 89(4): Nohria, N. & Gulati, R Is Slack Good or Bad for Innovation? Academy of Management Journal, 39(5): Sauermann, H. & Cohen, W. M What Makes Them Tick? Employee Motives and Firm Innovation. Management Science, 56(12): Sosa, M. L Decoupling market incumbency from organizational prehistory: Locating the real sources of competitive advantage in R&D for radical innovation. Strategic Management Journal, 34(2):

7 5) Innovation, Inertia & Solutions Henderson, R. M. & Clark, K. B Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35(1): Christensen, C. M. & Bower, J. L Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17(3): Benner, M. J. & Tushman, M. L Process management and technological innovation: A longitudinal study of the photography and paint industries. Administrative Science Quarterly, 47(4): Tripsas, M Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal, 18: Eggers, J. P. & Kaplan, S Cognition and renewal: Comparing CEO and organizational effects on incumbent adaptation to technical change. Organization Science, 20(2): Henderson, R Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry. Rand Journal of Economics, 24(2): Leonard-Barton, D Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13: Rothaermel, F. T Incumbent's advantage through exploiting complementary assets via interfirm cooperation. Strategic Management Journal, 22(6/7): Tripsas, M. & Gavetti, G Capabilities, cognition, and inertia: Evidence from digital imaging. Strategic Management Journal, 21(10/11):