Atul Nerkar

Evolution of R&D Capabilities: The Role of Knowledge Networks Within a Firm

In this paper, we suggest that the characteristics of individual positions in an intraorganizational network of inventors or intrafirm knowledge network predict the likelihood with which knowledge created by an inventor is used in the firms research and development (R&D) activities. Such choices lead to path dependence and subsequent specialization. We provide empirical evidence that a firms R&D is concentrated in those areas where it chooses to recombine knowledge, offering support for the path-dependent evolution of capabilities. We test this theory by analyzing the R&D networks in DuPont, a highly regarded Fortune 500 chemical company. Cox Proportional Regression models of intrafirm citations on network characteristics offer strong empirical support for our theory.

Acquisition Integration and Productivity Losses in the Technical Core: Disruption of Inventors in Acquired Companies

Acquisition integration is a pivotal factor in determining whether the objectives of an acquisition are achieved. In this paper, we hypothesize that the productivity of corporate scientists of acquired companies is generally impaired by integration, but that some scientists experience more disruption than others. In particular, acquisition integration will be most disruptive, leading to the most severe productivity drops, for those inventors who have lost the most social status and centrality in the combined entity. Drawing from prior literatures on the knowledge-based view of the firm, and on mergers and acquisitions, we develop hypotheses about a concise set of conditions that will lead to substantial performance drops for acquired technical personnel. We test our hypotheses, using patent application data, on a sample of 3,933 inventors in pharmaceutical firms whose companies were acquired. Results are strongly in line with our theorized expectations.

Optimal Conflict in Preference Assessment

Conflict arises indecision making when the choice alternatives present strong advantages and disadvantages over one another, that is, when the trade-offs involved are large. Conflict affects human response to choice, in particular, it increases decision difficulty and response unreliability. On the other hand, larger trade-offs, i.e., higher conflict, reveal more information about an individuals preferences and mitigate the influence of measurement unreliability on preference model estimation. This suggests, somewhat counterintuitively, that there may exist some optimal level of conflict for efficient measurement of preferences. How to determine this level? This issue is examined from behavioral and analytical angles. We outline a general analysis of the interaction between trade-off size and modeling accuracy, and demonstrate its application on a simple example. The kind of analysis developed here can be conveniently implemented in a computer spreadsheet, and would be especially valuable when large amounts of preference data are to be collected, as in consumer preference studies, experimental research, and contingent valuation surveys.

Business Methods Patents as Real Options: Value and Disclosure as Drivers of Litigation

This paper proposes that patents are real options that allow holders of patents the right but not the obligation to sue others. We suggest that the likelihood of a patent being litigated is positively associated with value of the patent and the extent of disclosure (prior art cited) in the patent. However, under conditions of greater value, increases in disclosure reduce the likelihood of litigation of the focal patent. Similarly, under conditions of greater disclosure, increases in value reduce the likelihood of litigation of the focal patent. Rare events logit analyses of business method patents that were litigated, compared to patents that were not litigated, offer empirical evidence supporting the hypotheses.

The Duality of Knowledge Networks: The Impact of Production and Usage Networks on Academic Citations

Abstract This chapter offers a complementary view to the “quality of knowledge” perspective whereby citations to academic articles are a result of efficient market processes. The chapter suggests that any academic research can be seen through the prism of two types of knowledge networks – production and usage. Author(s) of papers are located in these two networks and their absolute and relative position in these networks can help the diffusion of the focal research. The hypotheses are tested on a dataset of 1,085 papers published in the top five management journals between 1993 and 1997. Results suggest that controlling for attributes of a paper, the position occupied by author(s) in the usage networks and production networks contributes substantially to future citations received by a paper in these five journals. However, under conditions of extreme prominence in the usage network, increases in prominence in the production network dampen increase in future citations. Similarly under conditions of extreme prominence in the production network, increases in prominence in the usage network dampen increase in future citations. Implications of these results are discussed in the context of knowledge creation, dissemination, and recognition efforts of authors.

Strategy, Structure, and Performance: A study of U.S. Airline Industry

The relationship among strategy, structure, and performance has been explored conceptually after Chandler’s seminal work. But the central gap in the literature is that the design of a structure as ...