Stefano Denicolai

Creating and Capturing Value from External Knowledge: The Moderating Role of Knowledge Intensity

integration with and adaptation to internal capabilities and the exploitation of these novel combinations to create and capture value in new ways. However, studies focusing on the relationships among capabilities, BMI and firm performance are rare. In this paper, we adopt broader measures of internal and external knowledge, which include codified intangibles such as patents and copyrights, and examine the effects the combinations and interactions have on sales growth based on a dataset of 310 firms from four European countries. Using the broader measure of knowledge, we find support for the curvilinear relationship reported in studies using research and development-intensity as a proxy. However, we also find that firms with low levels of internal knowledge benefit most from an ‘optimal’ investment in externally generated knowledge, but the influence on sales growth is very sensitive to the degree of external knowledge acquired. By contrast, knowledge-intensive firms are relatively freer in defining their knowledge sourcing strategy. We discuss the implications for exploiting knowledge and complementary assets in BMI.

The dynamics of the outsourcing relationship

Purpose To provide a theoretical explanation of why outsourcing relationships are inherently dynamic, in that the dependence of each party upon the other inevitably changes over time and thus so too will the power asymmetries between the parties. Methodology/approach Our approach is theoretical and draws upon insights from resource dependence theory, transaction cost economics, and the resource-based view of the firm, to focus on the power asymmetries between the focal firm undertaking the outsourcing and its suppliers. We illustrate our arguments using a longitudinal case study of the evolving relationship between Apple and the Foxconn Technology Group. Practical implications For supplier firms, the message is to upgrade, develop distinctive resources and capabilities, and diversify the customer base. Otherwise, suppliers will forever be condemned to low operating margins and the threat of being replaced by cheaper, more agile rivals. For focal firms, the message is not to rest on your laurels. The potency of isolating mechanisms may well dissipate, suppliers will no doubt strive to lessen their positions of dependence and competitors will inevitably emerge, with the result that once-profitable outsourcing arrangements may quickly erode. Originality/value We highlight the crucial role played by isolating mechanisms to underpin power asymmetries in outsourcing relationships, and thus enable focal firms to appropriate the rents from externalized value chain activities. We argue that the efficacy of many isolating mechanisms will tend to dissipate over time as competitors emerge to imitate successful strategies and products, and as resource and capability asymmetries erode.

The resilience strategies of SMEs in mature clusters

Purpose The purpose of this paper, according to the evolutionary perspective of resilience, is to provide a revised adaptive cycle model that explains how organisations that are embedded in a local system can foster their resilience. Design/methodology/approach An exploratory case study analysis was carried out. The study adopted the methods and principles proposed by Eisenhardt (1989). Case studies were selected according the match-pair method and consist of two Italian wineries operating into the same wine cluster. Qualitative and quantitative data were collected and analysed through descriptive statistics and qualitative data analysis techniques. Findings The study proposes a revised model for the resilience strategies of small and medium-sized enterprises (SMEs) which combines firm and cluster level. Findings show that the resilience of SMEs is primarily driven by internal resilience strategies, and their surviving and adapting capacity, from a certain point of the evolutionary cycle, is fostered by internal decisions rather than by the influence of the external environment. Research limitations/implications The study has some limitations. In particular, the exploratory survey does not permit the generalisation of results, and further empirical evidence is required. This research represents an initial step toward the development of a more exhaustive understanding of how the relationship SMEs-cluster can positively or negatively affect the resilience of organisations. Practical implications The proposed model for the resilience strategies of SMEs offers also insights for managers and entrepreneurs. Originality/value This study significantly contributes to theory on resilience in the management field, that is largely related to economic geography, while investigations about the resilience at the firm level are limited and inconclusive.

NOT SO SIMILAR AFTER ALL: EXPLORING THE DIVERSITY OF STRATEGIC ORIENTATIONS FOR INNOVATION

Innovation has gained growing attention in the strategic management field, and — as a strategic orientation — it has been predominantly considered as a homogenous class of differentiated strategic mindsets. This contribution aims at distinguishing different sub-typologies of innovation strategies and validating their profiles and consistency. It explores approaches discussed in the mainstream literature as well as the possibility that other orientations could exist. A cluster analysis outlines four strategic orientations showing differences in terms of competitive drivers, value creation architectures, outsourcing and alliance policies, and managerial processes. Findings offer scholars and practitioners a better understanding of strategic alternatives in pursuing innovation through the identification of systems of consistency among managerial variables — e.g., configuration of the supply chain — thus fostering uniqueness and sustainability of the competitive advantage, and driving managers’ decision. In particular, what really characterised the different innovation strategies here shown is the way they deal with the value chain structure, meaning a key part of the business model.

Acquired Trademarks and Family Business: Insights from the European Manufacturing Industry

Objectives . This study investigates the impact of corporate governance on the relationship between intangible assets and firm performance. The difference between internally and externally generated intangibles, ie trademarks, is taken into account. Methodology . A regression analysis is employed on 86 listed manufacturing companies across Europe, namely, Italy, Germany, France, Spain and the UK. Findings . We find that externally acquired trademarks per se do not affect firm performance. Family governance has a negative moderating impact on this relationship: too much family can jeopardize the positive effect of externally acquired trademarks on firm growth. Research limits . Our analysis is based on listed firms, which limits analysis to relatively larger firms. Smaller firms might follow different logics and are thus an interesting target for future research. Moreover, the analysis considers only brands which were codified and capitalized through trademarks reported in accounting statements: it excludes the (significant) informal and tacit side of reputation and recognition. Notwithstanding this limit, our approach allows to develop a quantitative analysis based on objective data. Practical implications . From a managerial point of view, the better understanding of the effects of trademark acquisition under different forms of governance enables the evaluation and optimization of trademark-related investments. Originality of the study . We bridge the open innovation stream of research with the family business perspective and add an additional hitherto understudied type of intangibles, ie trademark, to the respective areas of research.