Business Method Innovation in U.S. Manufacturing and Trade

IF 4.8 3区管理学 Q1 MANAGEMENT

M&som-Manufacturing & Service Operations Management Pub Date : 2023-01-01 DOI:10.1287/msom.2022.1129

Tian Heong Chan, Anandhi Bharadwaj, Deepa Varadarajan

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引用次数: 1

Abstract

Problem definition: In what kinds of business method innovation do firms in the manufacturing and trade sectors engage? Does engaging in business method innovation create value for these firms? The present paper answers these questions using empirical evidence. Methodology/results: Using text analysis of business method patents, we show that business method innovation in the U.S. manufacturing and trade sectors is aimed primarily at improving the business operations that support the sales of tangible products—that is, how the firm targets customers, manages product delivery, or enhances the product through service offerings. We then evaluate the effect of having business method innovation, as evidenced by patents, on a firm’s value. Leveraging the exogenous shock of the State Street ruling, which first recognized business methods as a patentable category of innovation, we identify a set of firms that possess business method patents and a matched set of comparable firms without such patents. Then, using a difference-in-differences with firm fixed effects model on the matched sample, we show that the valuation of the former set of firms increased by 9% after State Street, as measured by Tobin’s q. We further show that (1) business method innovators in the manufacturing sector gained a 7% increase, whereas business method innovators in the trade sectors gained a 25% increase; and (2) only firms with broader innovation scope—that is, business method innovations covering the range of customer targeting, product delivery, and service support of products—experienced a significant (18%) value bump. Managerial implications: This research provides evidence that business method innovation in the manufacturing and trade sectors primarily involves innovating in business operations that support product sales. Our work also provides empirical support for the proposition that engaging in business method innovation drives manufacturing and trade firms’ market performance. Supplemental Material: The online appendices are available at https://doi.org/10.1287/msom.2022.1129 .

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美国制造业和贸易的商业方法创新

问题定义:制造业和贸易部门的公司从事什么样的商业方法创新?从事商业方法创新是否能为这些公司创造价值?本文用经验证据回答了这些问题。方法/结果:通过对商业方法专利的文本分析，我们表明，美国制造业和贸易部门的商业方法创新主要旨在改善支持有形产品销售的业务运营，也就是说，公司如何瞄准客户，管理产品交付，或通过提供服务来增强产品。然后，我们评估了通过专利证明的商业方法创新对公司价值的影响。道富银行(State Street)案首次将商业方法认定为可申请专利的创新类别，利用该判决的外生冲击，我们确定了一组拥有商业方法专利的公司和一组没有此类专利的相匹配的可比公司。然后，在匹配样本上使用差异中的差异与企业固定效应模型，我们表明，前一组公司的估值在道富银行之后增加了9%，正如托宾q所衡量的那样。我们进一步表明:(1)制造业的商业方法创新者获得了7%的增长，而贸易部门的商业方法创新者获得了25%的增长;(2)只有创新范围更广的公司——即涵盖客户定位、产品交付和产品服务支持的商业方法创新——才有显著的价值提升(18%)。管理启示:本研究提供的证据表明，制造业和贸易部门的商业方法创新主要涉及支持产品销售的业务运营的创新。我们的研究也为从事商业方法创新驱动制造业和贸易企业市场绩效的命题提供了实证支持。补充材料:在线附录可在https://doi.org/10.1287/msom.2022.1129上获得。

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来源期刊

M&som-Manufacturing & Service Operations Management 管理科学-运筹学与管理科学

CiteScore

9.30

自引率

12.70%

发文量

184

审稿时长

12 months

期刊介绍： M&SOM is the INFORMS journal for operations management. The purpose of the journal is to publish high-impact manuscripts that report relevant research on important problems in operations management (OM). The field of OM is the study of the innovative or traditional processes for the design, procurement, production, delivery, and recovery of goods and services. OM research entails the control, planning, design, and improvement of these processes. This research can be prescriptive, descriptive, or predictive; however, the intent of the research is ultimately to develop some form of enduring knowledge that can lead to more efficient or effective processes for the creation and delivery of goods and services. M&SOM encourages a variety of methodological approaches to OM research; papers may be theoretical or empirical, analytical or computational, and may be based on a range of established research disciplines. M&SOM encourages contributions in OM across the full spectrum of decision making: strategic, tactical, and operational. Furthermore, the journal supports research that examines pertinent issues at the interfaces between OM and other functional areas.