N.Mohan Reddy

Linking technology and institutions: the innovation community framework

Abstract The technological innovation and diffusion literatures consistently suggest the importance of the institutional environment, including non-market as well as market organizations and relationships, in the commercialization of innovation. There is, however, no general framework for studying the relevant organizations and relationships as a structured system. This paper draws on organizational ecology to develop such a framework, ‘the innovation community’. The paper then suggests how the new framework could be employed in guiding research and in developing a general institutional theory of technology commercialization.

International technology transfer: A review

Abstract This paper reviews the international technology transfer literature. We propose and use an organizing framework in line with key elements of international technology transfer; home country, host country and transaction component. Based on our review, we identify the key issues that merit further exploration.

Identifying and Qualifying Industrial Market Segments

Assesses developing different strategies in five market segments with regard to an electrical motor producer who captured the market. Identifies distinct requirements of the industrial market segments and shows that missed opportunities could be the gain of the industrial firm. States that industrial companies tend to regard a market as a large marketplace that buys and uses similar products, such as one company in particular who had 26 per cent of its business coming from one large customer. Concludes that to be a successful company in industrial markets, segmentation is central to identifying and choosing the strategic direction of a business unit, and says that if the segmentation is done properly it can reduce threats and uncover innovative product, price, distribution and service strategies.

The institutional domain of technology diffusion

Marketing implications of technological innovation have received considerable attention in the recent past. In this article, Mohan Reddy, John Aram, and Leonard Lynn suggest that the institutional scope for understanding technology diffusion, in addition to supplier and user organizations and industries, should include organizations that manufacture technological complementarities, institutions that possess vertical complementary assets, and the nonmarket sector. The nonmarket sector includes trade associations, professional societies, governmental agencies, independent research agencies, and public service organizations. The authors develop a set of propositions and discuss the implications of our framework for marketers of technical products.

Technology communities and innovation communities

Abstract The technology community framework provides new insights into how technologies and organizational systems co-evolve. Little has been written by the creators of this framework, however, about community-level variables. As a result, this literature has yet to provide a good basis for addressing many of the traditional concerns of researchers and policymakers about technological innovation: e.g. how various characteristics of communities influence the speed and extent to which an innovation is used. This paper presents an alternative framework for the study of the commercialization of technology, the ‘innovation community.’ An innovation community includes the organizations involved in the commercialization of a specific technology. It comprises a superstructure of coordinating organizations and a substructure of business firms providing inputs for the innovation. Research using this framework can address either how community attributes such as size or inclusiveness of superstructure impact on the development and use of new technologies or how the attributes of new technologies can influence community attributes. The framework seems particularly suitable as a basis for comparative research.

Key problems facing industrial distributors

Abstract This article reports on a survey of the problems faced by industrial distributors. Five major problem categories are identified and managerial implications are derived from the findings.

Developing a manufacturer— Distributor information partnership

Abstract The growing importance of industrial distribution calls for increased emphasis on cooperative arrangements between manufacturers and distributors. This article focuses on what is perhaps the most crucial and sensitive element in developing such a partnership: sharing and use of market information. A case study details the development effort of such a partnership by a large manufacturer and explains the benefits that both parties can accrue.

Institutional relationships and technology commercialization: Limitations of market based policy

Abstract U.S. technology commercialization policies have focused on efforts to correct “market failures”. Policy subsidizing innovation and antitrust policy both seek to increase market efficiency and thus attain welfare gains. One problem is that these policies make conflicting assumptions about individual economic behavior. This leads to inconsistent policy. A second problem is that non-market relationships, such as those embodied in industry standard-setting bodies, professional and trade associations, and inter-institutional cooperation also influence the process of technology commercialization. A comparison of U.S. and Japanese institutional responses to the commercial potential of high definition television suggests that (1) the market approach to this technology has led to conflicting policy prescriptions in the U.S., and (2) Japanese policymakers have been more effective than their American counterparts in facilitating non-market relationships. Implications for U.S. policy are discussed.

Voluntary product standards: Linking technical criteria to marketing decisions

This article reports on research carried out to test some of the prevailing hypotheses on engineering standards. The “economic view” is that use of industry standards tends to introduce a higher level of price-based competition in the marketplace. An alternate conceptualization of voluntary product standards which actively factors in market considerations is presented. This conceptualization termed the “institutional approach” clearly acknowledges the interdependency technology creates in industrial markets. From this viewpoint industry standards tend to be coordinating mechanisms to organize and direct technological change, not change buyer behavior.

International standardization of technical products

Abstract The literature on product adaptation in international markets has emphasized cultural, social, and political influences that necessitate a change in the product configuration. In contrast, this articles focus is on the international technical environment. A case study is used to illustrate international standardization of technical products and its management implications.