{"title":"Agile Stage‐Gate Management (ASGM) for Physical Products","authors":"John J. Salvato, Andre O. Laplume","doi":"10.1111/radm.12426","DOIUrl":"https://doi.org/10.1111/radm.12426","url":null,"abstract":"We present a qualitative study of Agile Stage‐Gate Management (ASGM),: a hybrid new product development methodology that combines Agile and Stage‐Gate Management (SGM) approaches for the coordination of new product development. When applied to software projects, Agile is expected to deliver reduced development times, improved resource utilization, and greater financial success. We examine whether ASGM practitioners realize similar outcomes in a sample of global firms developing complex electro‐mechanical products (e.g., automobile components, railway propulsion systems, and medical devices). Our grounded theory approach articulates an understanding of ASGM through extensive interviews of experienced professionals. Our thematic analysis supports many expected benefits (i.e., speed to market, innovation enabling), but also does not encourage others, and reveals new pitfalls that deserve recognition (i.e., resource inefficiency). ASGM is not a panacea for all product development. Overall, physical product firms adopting this method can expect reduced development times and higher levels of innovation but will expend more resources to complete development projects, but a dichotomy exists. Physical product developers using ASGM experience a negative impact on project resource efficiency due to the need for dedicated resources, frequent product demonstrations, and duplicative management structures.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123932592","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
P. Hurley, Brian W. Mayhew, Kara M. Obermire, Amy C. Tegeler
{"title":"The Impact of Risk and the Potential for Loss on Managers’ Demand for Audit Quality","authors":"P. Hurley, Brian W. Mayhew, Kara M. Obermire, Amy C. Tegeler","doi":"10.2139/ssrn.3425666","DOIUrl":"https://doi.org/10.2139/ssrn.3425666","url":null,"abstract":"We use experimental economic markets to investigate the impact of risk and the potential for loss on managers’ demand for audit quality. We posit that managers’ audit quality preferences are influenced by these two important contextual factors, which are often not considered or are difficult to isolate in prior research. We specifically predict and find evidence that risk significantly reduces managers’ average demanded audit quality level and likelihood of hiring the best available auditor in the market. We also find evidence that the potential for loss, and to a lesser extent its interaction with risk, reduce managers’ likelihood of hiring the best available auditor. Our results, based on manipulating risk and the potential for loss, provide evidence that risk aversion and loss aversion influence managers’ audit quality demand. In supplemental analyses, we show that our results are robust to alternative economic explanations. Our results suggest these two common contextual factors influence the demand for audit quality.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117192377","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Should Smes Get Out of the Building? Examining the Role of Customer Co‐Creation on Radical Organizational Creativity","authors":"Georgiana Bǎlǎu, H. Bij, Dries Faems","doi":"10.1111/radm.12403","DOIUrl":"https://doi.org/10.1111/radm.12403","url":null,"abstract":"Facing the liability of smallness, SMEs face substantial challenges in internally developing solutions to spur the generation of new ideas that challenge existing practices. In this study, we point to co-creation with customers as an external solution to boost radical organizational creativity. Relying on a sample of SMEs in the Northern Netherlands, we examine the impact of co-creation on radical organizational creativity. Following insights from organizational learning theory, we also test the moderating effect of the nature of the organizational structure and the level of organizational creativity support. We find that customer co-creation has a positive impact on SME's radical creativity. Surprisingly, we find that organizational creativity support negatively moderates this relationship. Together these findings enrich our theoretical understanding of the drivers of radical organizational creativity. Moreover, they provide SME managers specific guidelines on how to generate radically new ideas.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129309214","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cui Bono, Cui Malo? Contractual Complementarity for Rent Appropriation in Strategic Outsourcing","authors":"G. Solinas, D. Demougin","doi":"10.2139/ssrn.3400059","DOIUrl":"https://doi.org/10.2139/ssrn.3400059","url":null,"abstract":"With the rise of strategic outsourcing, the distribution of skills and competences between partners grows increasingly uneven. This misalignment reflects the complex distribution of responsibilities under outsourcing arrangements. Because each firm in an outsourcing arrangement may have to surrender some control over tasks and processes performed by its partner, agency problems may arise on both sides. To resolve this tension, partnering firms design incentive contracts that include liability sharing instruments to align efforts and mitigate risk in the event of litigation. Although liabilities are generally negotiated simultaneously with provisions to share future revenues from outsourcing, the outsourcing literature reveals little about the complementarity of such instruments and their overall effect on value distribution. To address this lacuna, we develop a theoretical model and a set of simulations, which we test on a sample of R&D outsourcing agreements from the pharmaceutical industry. In our framework, complementarity among royalties, bonus payments, and liability clauses determines configurations of contractual instruments that apportion rents and allocate future liability costs. We find also that two boundary conditions can affect the outsourcing relationship: bargaining power and each party’s relative knowledge.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"184 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133515885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Inbound Openness and its Impact on Innovation Performance: An Agent‐Based and Simulation Approach","authors":"Lu Cheng, Yibo Lyu, Jingqin Su, Shaojie Han","doi":"10.1111/radm.12391","DOIUrl":"https://doi.org/10.1111/radm.12391","url":null,"abstract":"A firm’s superior innovation performance is embodied not only by its average innovation performance but also by the likelihood of extremely high innovative outcomes. The former benchmark is associated with the mean of the performance distribution, while the latter is associated with the variance, both of which play an important role in instructing the achievement of superior innovation performance. In this paper, we explored how inbound open innovation impacts superior innovation performance by considering both the average and variance effects of inbound openness. We conducted agent‐based modeling and simulation research to untangle the relationship between inbound openness and superior innovation performance and how the relationship is moderated by the disruptiveness of industrial innovation. We found that inbound openness significantly influences both the benchmarks. Specifically, search breadth positively influences the likelihood of extremely high innovative outcomes in general, whereas search depth positively influences average innovation performance; and the strength of these effects varies under different disruptiveness.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"65 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125477314","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Absorbing Partner Knowledge in R&D Collaborations – the Influence of Founders on Potential and Realized Absorptive Capacity","authors":"Elisabeth F. Mueller, Lorna Syme, C. Haeussler","doi":"10.1111/radm.12395","DOIUrl":"https://doi.org/10.1111/radm.12395","url":null,"abstract":"We investigate whether founder participation in research and development collaborations enhances the two dimensions of absorptive capacity (ACAP): potential ACAP and realized ACAP. Based on a longitudinal firm‐patent dataset of over 700 collaborations, and using a novel measure of ACAP, we find that founder involvement enhances potential ACAP provided the knowledge bases of focal firm and partner are related. Once knowledge has been absorbed, founder involvement increases realized ACAP irrespective of relatedness. Thus, we highlight the merit of treating the dimensions of ACAP separately by showing differing effects of founder involvement. Our paper emphasizes the outstanding role founders play in the R&D process of their firms. Firms should consider carefully the allocation of team members to R&D projects because team members differ with respect to their ACAP.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133509790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cartel Formation with Quality Differentiation","authors":"Iwan Bos, Marco A. Marini, Riccardo D. Saulle","doi":"10.2139/ssrn.3575724","DOIUrl":"https://doi.org/10.2139/ssrn.3575724","url":null,"abstract":"Research on collusion in vertically differentiated markets is conducted under one or two potentially restrictive assumptions. Either there is a single industry-wide cartel or costs are assumed to be independent of quality or quantity. We explore the extent to which these assumptions are indeed restrictive by relaxing both. For a wide range of coalition structures, profit-maximizing cartels of any size price most of their lower quality products out of the market as long as production costs do not increase too much with quality. If these costs rise sufficiently, however, then market share is maintained for all product variants. All cartel sizes may emerge in equilibrium when exclusively considering individual deviations, but the industry-wide cartel is the only one immune to deviations by coalitions of members. Overall, our findings suggest that firms have a strong incentive to coordinate prices when the products involved are vertically differentiated.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"103 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132483504","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Real-Time Push Mobile Marketing Strategy: To What Extent does Time and Relevance Matter?","authors":"Alvin Glay","doi":"10.2139/ssrn.3454052","DOIUrl":"https://doi.org/10.2139/ssrn.3454052","url":null,"abstract":"The ubiquity of the smartphone has proven disruptive. The relevance of this medium can be observed through time spent on mobile media, google mobile search numbers, and direct and indirect sales generated by mobile devices. Consumer expectations of firms have likewise increased, and there is now an anticipation of readily reliable, responsive, and personalized services to support consumers’ everyday activities whenever they need it. Prior research focused on the following themes: mobile marketing strategy, permission marketing, proximity marketing, topicality, and utility. Empirical gaps were identified in the real-time mobile and push mobile marketing domain. A quantitative engaged scholarship research method was utilized to empirically investigate this phenomenon. In partnership with an online information marketplace, an empirical investigation was undertaken via an experiment that used real mobile application users. The empirical findings suggest that unlike traditional mobile marketing, real-time mobile communication to users requires a guided and relevant experience. Failing to engage users with any communication or provide a guided experience on the mobile application is as counterproductive as sending users a push communication that is neither relevant nor in real-time. Also, in certain business contexts, typicality takes priority over the timing of the communication. The study contributes to research by plugging the real-time and push mobile marketing literature gap. Furthermore, the research contributes to practice by providing a push mobile marketing framework for firms seeking to orchestrate a sound push mobile communication strategy. Finally, the study acts as a catalyst to a call for research on the scarcely explored areas of real-time and push mobile marketing to move the field forward.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124004273","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Business Case for Social Housing as Infrastructure","authors":"T. Denham, J. Dodson, Julie Lawson","doi":"10.18408/AHURI-5314201","DOIUrl":"https://doi.org/10.18408/AHURI-5314201","url":null,"abstract":"Compared to standard infrastructure assessments, establishing social housing outcomes are more complex and multifaceted. This research investigated various business case frameworks for funding social housing as infrastructure, including using cost-benefit analysis (CBA) and other alternatives, in order to develop stronger analytical methodologies. \u0000 \u0000The ‘avoided cost’ approach estimates whole-of-government savings across portfolios, avoiding assigning financial value to the ‘intangible’ dimensions of housing that a CBA would typically calculate. The ‘housing adjusted life years’ (HALY) methodology sees social housing as a welfare/ public health intervention which improves life expectancy and quality of life.","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129314763","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competitive Investment with Bayesian Learning: Choice of Business Size and Timing","authors":"Nur Sunar, Siyun Yu, V. Kulkarni","doi":"10.2139/ssrn.3408260","DOIUrl":"https://doi.org/10.2139/ssrn.3408260","url":null,"abstract":"Curse of a Favorable Opportunity: Strategic Choice of Investment Size and Timing with Bayesian Learning","PeriodicalId":239750,"journal":{"name":"Strategy & Microeconomic Policy eJournal","volume":"236 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132851683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}