Session 178

A Conversation of Different Paths Underlying Innovation

Track N

Date: Tuesday, October 6, 2015


Time: 08:00 – 09:15

Common Ground

Room: Plaza Court 5


  • Anita McGahan, University of Toronto

Title: Concealing or Revealing? Alternative Paths to Secondary Innovation


  • Anna Brattström, Lund University
  • Niklas Hallberg, Lund University

Abstract: While scholars increasingly make a distinction between primary and secondary innovation, there is still little consensus about how secondary innovation is created. One line of research emphasizes knowledge concealing, concluding that a focal firm should strive to recycle knowledge within the company, but limit other actors’ to access firm-specific knowledge. Another line, however, provides the contradictory argument, suggesting that firms enhance secondary innovation by selectively revealing knowledge to outsiders. The aim of this paper is to analyze the conditions under which the seemingly contradictory models apply. We identify two industry-level factors – imitation pace and network effects – and we introduce and elaborate on the firm-level factor generative uncertainty to explain alternative paths to secondary innovation in markets where both imitation pace and network effects are high.

Title: Governance Mechanisms and Innovation in Franchise Restaurant Chains


  • Grace C. Su, University of Illinois-Urbana Champaign

Abstract: The paper explores how a restaurant franchisor can increase a franchise chain’s innovation through strategically designing the franchise contract. Based on transaction cost economics and agency theory, three contract terms are examined to see if they affect the franchisor and franchisees’ incentives of devoting efforts into innovation. This research uses trademark registration to measure franchise chains’ product and service innovation, and adopts Zero-inflated Poisson model to deal with the excess zeros in the dependent variables, trademark registration. We find that governance mechanisms embedded within the franchise contract terms influence the franchisor’s and franchisees’ incentives to innovate and thereby impact innovation of the franchise chain.

Title: Impact of Alliance Partnership Experience, Appropriability Regime, and Environmental Uncertainty on External Technology Commercialization


  • Mary Beth Rousseau, Georgia Southern University
  • Devkamal Dutta, University of New Hampshire
  • Franz Kellermanns, University of North Carolina at Charlotte

Abstract: This paper contributes to the alliance literature by investigating the influence of alliance partnership experience on the propensity to engage in external technology commercialization. Overall we find support for the proposition that alliance experience increases the likelihood that a firm will engage in ETC, but only up to a point at which further experience reduces the propensity to engage in ETC. We reason that even firms that have developed an alliance capability through learning reach a saturation point in their ability to further increase the scale and scope of the alliance portfolio. We also find that industry level uncertainty, namely the appropriability regime, pace of technological change and competitive complexity, influences this relationship.

Title: Open Innovation with Customers: The Mediating Roles of Innovation Quality and Speed on Firm Performance


  • Pyayt Oo, Washington State University
  • Nari Kim, Washington State University
  • Sakdipon Juasrikul, Washington State University

Abstract: This study explores different impacts of open innovation with customers on two innovation dimensions: quality and speed, and subsequently, its effect on firm financial performance. By using two contrasting theoretical lens: lead user theory and Not-Invented-Here psychological principle, we propose that customer involvement is beneficial to innovation quality but harmful to innovation speed. Joint empirical testing of two theories with mediation model could provide a more comprehensive picture for conflicting results of customer involvement in developing innovative products.

Title: Predicting Modes of Governance for Innovation Alliances: A Multi-theoretic Approach


  • Mary Beth Rousseau, Georgia Southern University

Abstract: This research investigates the effect of distinct types of uncertainty on the mode of governance for innovation alliances. I suggest that real options theory predicts the mode of governance when technical and market uncertainty are more salient, and TCE is more applicable to partner uncertainty. At the same time, the uncertainty associated with financial performance has received limited attention in the alliance governance literature. I draw on behavioral theory to propose that both slack and attainment discrepancy moderate the governance decision in favor of more hierarchy, namely acquisitions.

Title: When Birds of a Feather Flock to a Foreign Land: Alliance Strategy of Foreign Venture Capital Firms in China


  • Qian Gu, Georgia State University
  • Yanfeng Zheng, University of Hong Kong

Abstract: Despite the advantages of alliances with local companies, recent studies have suggested that foreign companies may not prefer local companies as their alliance partners in their foreign expansions. Drawing on the knowledge-based view and the homophily literature, we propose that foreign companies are more likely to ally with other foreign companies in an emerging country. Such tendency, however, is attenuated with factors at dyadic, triadic, and industry levels. Specifically, foreign companies’ propensity to ally with foreign counterparts will reduce when the pair share a similar level of experience, when they have a common alliance partner, or when the institution improves in the host country. We test our hypotheses with 1000 foreign Venture Capital firms that invested in China during 2001 and 2012.

All Sessions in Track N...

Sun: 08:00 – 09:15
Session 197: A Session in Honor of Ulrich Wassmer
Sun: 09:45 – 11:00
Session 27: Public-Private Partnerships: Capabilities and Organizational Design
Sun: 11:15 – 12:30
Session 196: Perspectives and Dynamics of Committed Relationships
Sun: 16:15 – 17:30
Session 171: How to Govern Alliances: Boards, Multi-market Competition, and Social Capital
Sun: 17:45 – 00:00
Session 323: Cooperative Strategies Business Meeting
Mon: 08:00 – 09:15
Session 88: Firm Boundaries: Theories of New Sources of Competitive Advantage
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 186: Outsourcing, Offshoring, and the Changing Nature of Firm Boundaries
Mon: 13:45 – 15:00
Session 177: The Dynamics of Coopetition
Mon: 16:45 – 18:00
Session 173: Learning and Routines: Implications for Alliances, Organizational Design, and Capabilities
Tue: 08:00 – 09:15
Session 178: A Conversation of Different Paths Underlying Innovation
Session 179: Alliance Formation and Its Effects including the Influence of Political Connections & Venture Capital
Tue: 11:00 – 12:15
Session 184: Multiple Lenses on the Determinants and Effectivenss of Contracts
Tue: 14:15 – 15:30
Session 185: Partner Selection, Committment, and Switching
Session 275: External Interface Processes and their Consequences
Tue: 15:45 – 17:00
Session 183: Alliance Termination and Survival
Tue: 17:30 – 18:45
Session 180: Relational Dynamics in Alliances: Signals, Repairs, and Horizontal Partners
Session 182: Alliances: From Understanding Drivers of Performance to Value-Creation

Strategic Management Society