Damien Talbot

Technological Determinism and Modularity: Lessons from a Comparison between Aircraft and Auto Industries in Europe

Initial studies of modular manufacturing processes have shown that this dominant design required a fundamentally novel organisational structure of the industries. The underlying hypothesis of technological determinism merits a deeper exploration. The first part of the present paper aims at presenting the logic of this argument while making a distinction between the technological and organisational aspects of modularity. Based on this we then attempt a study of the manner in which the transition to modularity takes place in the aircraft and automobile industries. Our main conclusion is that while it may be possible to posit a convergence between these two industries, the paths followed are still quite clearly opposed.

Clusters, Proximities and Networks

In the Marshallian tradition of industrial districts, alongside theories of regional systems (Cooke, 2001), national innovation systems (Lundvall, 1992), local productive systems (Courlet & Soulage, 1994) or innovative environments (Camagni & Maillat, 2006), the cluster concept is usually treated in its spatial dimension, considering quite correctly that geographic proximity between firms constitutes a real factor in the diffusion of information and knowledge (Porter, 1998). The current international fascination with the concept of clusters, both amongst politicians and economic researchers, is rooted in the hypothesis that proximity displays characteristics that are conducive to the preservation and even reinforcement of relationships, irrespective of the area of activity in question. Policies encouraging the polarization of innovation activities are based on the following reasoning (Torre, 2006): (1) for innovation to occur, knowledge must be produced or appropriated; (2) by its very nature, knowledge cannot be appropriated in its entirety, and this induces effects wherein the knowledge spills over to other companies; (3) inasmuch as distance constitutes an obstacle to the diffusion of tacit knowledge—which can only be transferred via imitation and practice—geographic proximity is conducive to diffusion. A proximity-based approach offers a complementary analysis of the concept of clusters, transcending a geographic proximity approach per se and incorporating a broader notion of coordination. Since agents are present both “here and elsewhere” (Rallet, 1999)— here since they are located in a geographic space within which they entertain relationships with neighbours, elsewhere because actors clearly entertain remote relationships with other agents—a person can be “near” someone from whom s/he is geographically distant. The idea here is that alongside spatial proximity, there is also such a thing as a relational type of non-spatial proximity. Geographic proximity is a representation that individuals have of the distance that separates them in space from objects and/or other individuals (Torre & Rallet, 2005). Since this assessment is made from a distance, it is relative in two different ways:

Institutions and coordination: what is the contribution of a proximity-based analysis? The case of Airbus and its relations with the subcontracting network

In this paper, we propose to expound the various dimensions of proximity with a view to emphasising the institutional and organisational dimensions of inter-firm relations. To that end, we set out to define, in a first part, the various forms of geographic, institutional and organisational proximity, and to put them into perspective. The dual role of geographic proximity as a source of conflicts and resource for collective action is underlined. We then intend to show that the institution generates a so-called form of institutional proximity which, for the actors, refers to common meanings they have to share, as well as to the setting of complementary roles they have to play in collective action. As for organisational proximity, it is understood as a particular form of institutional proximity combining cognitive coordination with political coordination. In a second part, we propose to apply the theoretical framework so conceived to analyse the vertical relations between Airbus and its subcontracting network.

Les institutions créatrices de proximités. Institutions as creators of proximities

Using contributions of American institutionalists and philosophers of mind, we propose to look further into the definitions of the three traditional forms of the proximity. First, we define geographical proximity as relational availability. Second, we explain that institutional proximity is an effect of institutions. In this case, actors share common significances and play complementary roles in collective action. Third, organisational proximity, according to distinction suggested by COMMONS between institution and organization, is understood as a particular form of institutional proximity which articulates cognitive coordination and political coordination. Actors integrate cognitive community, i.e. reach memory of organization made up of rules and routines, and integrate political community, i.e. take place in power structure.

Hub Firms and the Dynamics of Territorial Innovation: Case Studies of Thales and Liebherr in Toulouse

The principal objective of this paper was to offer an approach to the notion of hub firms using concepts from the economy of proximity. It shows that the specificity of the hub firm lies in its ability to combine technical and relational skills, allowing early involvement with, for example, an aircraft manufacturer in order to take part in the design and production of systems or sub-assemblies. A particular characteristic of the hub firm is the way it develops linked organizational and geographical proximities which this article analyses in detail. In particular, such firms demonstrate the capacity to establish different types of organizational proximity based on whether they are co-ordinating with the architect-integrators or with sub-contractors, proximities sometimes reinforced by a temporary geographical proximity. When hub firms co-ordinate with industrial or scientific partners, which help them to conceive and master particular sets of skills, they often forge links based on geographical proximity in order to develop the innovations necessary for the acquisition and master of these in-house skills. These theoretical arguments are then tested in the cases of the hub firms Thales Aerospace and Liebherr Aerospace in the Toulouse aeronautical complex.

Outsourcing of strategic resources and capabilities: opposing choices in the commercial aircraft manufacturing

Purpose – This paper aims to address the questions of different outsourcing strategies between Airbus and Boeing and point out the theoretical limits of the resource-based view (RBV) approach that must be broadened with a finance perspective. Owing to the complexity of systems, the aircraft industry is nowadays structured around a well-organised value chain of product development and manufacturing. However, according to the RBV, capabilities attached to some systems and components are strategic resources and must be kept in house to maintain competitive advantage. In commercial aircraft avionics, critical systems such as flight controls fall directly under this rule, due to substantial risks of passenger safety they deal with. Design/methodology/approach – This study is based on two comparative studies concerning the A330/340 and A350 programmes at Airbus and their equivalents at Boeing, the B777 and the B787. The data are both primary (financial and patent data) and secondary (semi-structured interviews ...

Contrôles et proximités au sein de la supply chain aéronautique

Si les modes de coordination utilisés par les firmes au sein de la supply chain doivent permettre de transmettre des connaissances et de combiner des compétences, ils conduisent aussi à révéler les capacités techniques, financières et organisationnelles des parties prenantes, à vérifier si les engagements pris sont tenus, à réduire le risque de comportements opportunistes. Ainsi, les outils de coordination inter-firmes visent, au-delà du seul partage de connaissances, au contrôle du partenaire. Si ces résultats sont connus, plus rarement a été exploré le rôle que pouvait jouer la proximité sur le contrôle de la relation donneurs-preneurs d’ordres. L’objectif de cet article est de répondre aux questions suivantes : la proximité dans ses diverses dimensions favorise-t-elle le contrôle ? Si oui, par quels mécanismes ? Nous montrons que le contrôle, qu’il soit formel ou informel, s’accompagne dans le cas que nous avons observé d’une proximité organisationnelle entre le contrôleur et le contrôlé, tandis que la proximité géographique peut venir renforcer ce même contrôle. Ces observations ont été réalisées au sein de la supply chain aéronautique. En particulier sont observés les relations de contrôle entre architectes-intégrateurs et firmes-pivots.

Related variety and the dynamics of European photonic clusters

ABSTRACT This article aims at assessing the role of related variety, that is, the relatedness of knowledge bases used by different sectors within a region, as a major driver of clusters’ development. Some recent theoretical papers underline the role of clusters as ‘knowledge platforms’ organizing the recombination of technologies in overlapping industries, following the seminal definition of clusters by Porter as ‘geographic concentrations of linked industries’. In order to investigate the role of related variety in cluster dynamics, we analyse the patterns of development of clusters specializing in photonics in Europe. Photonics constitutes a new and rapidly evolving set of technologies with a high expected degree of technological recombination. However, due to inadequate traditional sectoral classifications, we propose an original method to delineate the perimeter of photonics in patent databases. A two-step algorithm is then used to identify systematically photonic clusters in Western Europe at the local level. In the last part of the paper, a typology of technological trajectories of clusters over the last decades is developed and then correlated with a set of quantitative measures of technological relatedness. The results highly confirm the role of related variety as a major driver of success, particularly for the biggest European clusters.