Kim B. Clark

Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms

Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms Author(s): Rebecca M. Henderson and Kim B. Clark Source: Administrative Science Quarterly, Vol. 35, No. 1, Special Issue: Technology, Organizations, and Innovation (Mar., 1990), pp. 9-30 Published by: Johnson Graduate School of Management, Cornell University Stable URL: http://www.jstor.org/stable/2393549 Accessed: 24/08/2008 13:09

Innovation: Mapping the winds of creative destruction☆

This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of innovation are closely linked to different patterns of evolution and to different managerial environments. Special emphasis is placed on the role of incremental technical change in shaping competition and on the possibilities for a technology based reversal in the process of industrial maturity.

The interaction of design hierarchies and market concepts in technological evolution

Abstract This paper develops a conceptual framework for analyzing the sequence of technological changes that underlie the development of industries. The framework examines the interaction between design decisions and the coices of customers. Using examples from autos and semiconductors the paper argues that the logic of problem solving in design and the formation of concepts that underlie choice in the marketplace impose a hierarchical structure on the evolution of technology. The nature of the evolutionary process has implications for the dynamics of competition and the management of innovation.

Organizing and Leading 'Heavyweight' Development Teams

Creating a distinctive advantage in the speed, efficiency, and quality of product developments is a major challenge for most firms. Achieving integration across functions lies at the heart of that challenge. While many authors recommend teams as a way to effectively manage development activities, realizing outstanding performance requires much more than simply naming members to a core team and designating a project head. A competitive advantage in product development capability requires fundamental changes in how work gets done; in the skills, capabilities, and tools team members bring to that work; in the support activities required from other groups inside and outside the organization; and in the responsibility and ownership taken by the project leader and core team for creating and executing the concept. This article lays out a framework for organizing and leading heavyweight teams and presents examples of companies that have made heavyweight teams a distinctive advantage.

Lead time in automobile product development explaining the Japanese advantage

Abstract This paper examines the determinants of lead time performance in the world auto industry, a complex consumer durable industry which is facing intensifying global competition and volatile market demands. We focus on explaining the apparent lead time advantage of the Japanese firms compared to their American and European competitors. Drawing on an extensive base of data on development projects, the paper studies the effect of product and project characteristics and organizational capabilities on development lead time. The notion that product development is a system of problem solving cycles provides a conceptual framework for the analysis. A central theme in the paper is the distinction between planning and engineering. We model the differences in problem solving in these activities and examine the determinants of lead time in them. We examine the effects of product content, project scope, and organizational capability for quick development. The results suggest that different factors influence planning and engineering: product innovation and project scope affect planning lead time, while process innovation and organizational capability affect engineering lead time. Overall, we find that the real lead time advantage of the Japanese is on the order of 12 months. In a competitive market with changing customer demands and rapid technological advance, a lead time gap of that magnitude is competitively significant.

Modularity in the Design of Complex Engineering Systems

Modularity accommodates uncertainty because the particular elements of a modular design may be changed after the fact and in unforeseen ways as long as the design rules are obeyed. Thus, within a modular architecture, new module designs may be substituted for older ones easily and at low cost. This chapter will make three basic points. First, we will show that modularity is a financial force that can change the structure of an industry. Then, we will explore the value and costs that are associated with constructing and exploiting a modular design. Finally we will examine the ways in which modularity shapes organizations and the risks that it poses for particular firms.

The Impact of Unionization on Productivity: A Case Study

This study examines the effect of unionization on productivity through the use of time-series data on selected establishments in the U.S. cement industry. The analysis combines statistical estimation of the union impact and interviews with union and management officials to forge a link between econometric estimation and the traditional institutional analysis of union policy and management practice. The econometric analysis deals primarily with the problem of controlling for interfirm differences in variables such as the quality of management and also for the possible union impact on labor quality. The case studies are designed to show the specific ways in which unionization affects productivity. The empirical results indicate that unionization leads to productivity gains, deriving in large part from a series of extensive changes in management personnel and procedures.

Labour Force Participation: Timing and Persistence

This paper examines the relative importance of timing and persistence elements in explaining cyclical fluctuations in labor supply. Data from the natural experiment provided by World War I1 and cross-sectional data on American local labor markets, as well as aggregate time-series data are used in the empirical work. We find little evidence that timing effects play an important role in labor market dynamics. The evidence suggests that views emphasizing persistence are more accurate, and that previous employment tends to raise the probability of subsequent employment.

Unionization and Productivity: Micro-Econometric Evidence

It is widely agreed that unionization affects the rules and procedures governing the employment relation in organized establishments. The effect of these changes on establishment productivity, however, is unclear. Existing evidence is based on a comparison of union/non-union differences in value added per hour worked. Although positive union effects have been estimated, possible differences in prices and technology in the union and non-union sectors render the results inconclusive. The effect of unions on productivity is examined in the present paper using establishment level data from the U.S. cement industry. The cement industry provides a useful empirical framework. Output is easily measured in physical terms, and data on both union and non-union establishments permit estimation of the union effect controlling for differences in technology. The results suggest that unionized establishments are 6-8 percent more productive than their non-union counterparts. This conclusion is supported in time series data, where a comparison of productivity before and after unionization reveals a positive union effect of similar magnitude. Since the statistical analysis controls for capital-labor substitution, scale effects and technological change, the evidence suggests that unionization leads to productive changes in the operation of the enterprise. The results are relatively robust. Specification changes and adjustments for omitted variables leave the basic findings intact.

Accelerating the Design‐build‐test Cycle for Effective Product Development

An understanding of effective problem solving is essential for everyone involved in development teams. For most development projects, the design‐build‐test cycle is the fundamental building block of effective problem solving. Examines the design‐build‐test cycle and describes alternative modes of problem solving and their implications for organizational skills and capabilities. Examines how superior capabilities at conducting the cycle can be used to make dramatic improvements in individual product development efforts. Concludes by considering how a firm can leverage the problem‐solving ability into a competitive advantage.