Strategic Management of Technological Innovation Strategic Management of Technological Innovation Sixth Edition Melissa A Schilling New York University First Pages STRATEGIC MANAGEMENT OF TECHNOLOGICAL INNOVATION Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2020 by McGraw-Hill Education All rights reserved Printed in the United States of America No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper LCR 21 20 19 ISBN 978-1-260-56579-9 MHID 1-260-56579-3 Cover Image: ©Shutterstock/iSam iSmile All credits appearing on page or at the end of the book are considered to be an extension of the copyright page The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites mheducation.com/highered sch65793_fm_ise.indd iv 12/04/18 11:25 AM About the Author Melissa A Schilling, Ph.D Melissa Schilling is the John Herzog family professor of management and organizations at New York University’s Stern School of Business Professor Schilling teaches courses in strategic management, corporate strategy and technology, and innovation management Before joining NYU, she was an Assistant Professor at Boston University (1997–2001), and has also served as a Visiting Professor at INSEAD and the Bren School of Environmental Science & Management at the University of California at Santa Barbara She has also taught strategy and innovation courses at Siemens Corporation, IBM, the Kauffman Foundation Entrepreneurship Fellows program, Sogang University in Korea, and the Alta Scuola Polytecnica, a joint institution of Politecnico di Milano and Politecnico di Torino Professor Schilling’s research focuses on technological innovation and knowledge creation She has studied how technology shocks influence collaboration activity and innovation outcomes, how firms fight technology standards battles, and how firms utilize collaboration, protection, and timing of entry strategies She also studies how product designs and organizational structures migrate toward or away from modularity Her most recent work focuses on knowledge creation, including how breadth of knowledge and search influences insight and learning, and how the structure of knowledge networks influences their overall capacity for knowledge creation Her research in innovation and strategy has appeared in the leading academic journals such as Academy of Management Journal, Academy of Management Review, Management Science, Organization Science, Strategic Management Journal, and Journal of Economics and Management Strategy and Research Policy She also sits on the editorial review boards of Academy of Management Journal, Academy of Management Discoveries, Organization Science, Strategy Science, and Strategic Organization She is the author of Quirky: The Remarkable Story of the Traits, Foibles, and Genius of Breakthrough Innovators Who Changed the World, and she is coauthor of Strategic Management: An Integrated Approach Professor Schilling won an NSF CAREER award in 2003, and Boston University’s Broderick Prize for research in 2000 v Preface Innovation is a beautiful thing It is a force with both aesthetic and pragmatic appeal: It unleashes our creative spirit, opening our minds to hitherto undreamed of possibilities, while accelerating economic growth and providing advances in such crucial human endeavors as medicine, agriculture, and education For industrial organizations, the primary engines of innovation in the Western world, innovation provides both exceptional opportunities and steep challenges While innovation is a powerful means of competitive differentiation, enabling firms to penetrate new markets and achieve higher margins, it is also a competitive race that must be run with speed, skill, and precision It is not enough for a firm to be innovative—to be successful it must innovate better than its competitors As scholars and managers have raced to better understand innovation, a wide range of work on the topic has emerged and flourished in disciplines such as strategic management, organization theory, economics, marketing, engineering, and sociology This work has generated many insights about how innovation affects the competitive dynamics of markets, how firms can strategically manage innovation, and how firms can implement their innovation strategies to maximize their likelihood of success A great benefit of the dispersion of this literature across such diverse domains of study is that many innovation topics have been examined from different angles However, this diversity also can pose integration challenges to both instructors and students This book seeks to integrate this wide body of work into a single coherent strategic framework, attempting to provide coverage that is rigorous, inclusive, and accessible Organization of the Book The subject of innovation management is approached here as a strategic process The outline of the book is designed to mirror the strategic management process used in most strategy textbooks, progressing from assessing the competitive dynamics of the situation, to strategy formulation, and then to strategy implementation The first part of the book covers the foundations and implications of the dynamics of innovation, helping managers and future managers better interpret their technological environments and identify meaningful trends The second part of the book begins the process of crafting the firm’s strategic direction and formulating its innovation strategy, including project selection, collaboration strategies, and strategies for protecting the firm’s property rights The third part of the book covers the process of implementing innovation, including the implications of organization structure on innovation, the management of new product development processes, the construction and management of new product development teams, and crafting the firm’s deployment strategy While the book emphasizes practical applications and examples, it also provides systematic coverage of the existing research and footnotes to guide further reading Complete Coverage for Both Business and Engineering Students vi This book is designed to be a primary text for courses in the strategic management of innovation and new product development Such courses are frequently taught in both Preface vii business and engineering programs; thus, this book has been written with the needs of business and engineering students in mind For example, Chapter Six (Defining the Organization’s Strategic Direction) provides basic strategic analysis tools with which business students may already be familiar, but which may be unfamiliar to engineering students Similarly, some of the material in Chapter Eleven (Managing the New Product Development Process) on computer-aided design or quality function deployment may be review material for information system students or engineering students, while being new to management students Though the chapters are designed to have an intuitive order to them, they are also designed to be self-standing so instructors can pick and choose from them “buffet style” if they prefer New for the Sixth Edition This sixth edition of the text has been comprehensively revised to ensure that the frameworks and tools are rigorous and comprehensive, the examples are fresh and exciting, and the figures and cases represent the most current information available Some changes of particular note include: Six New Short Cases The Rise of “Clean Meat” The new opening case for Chapter Two is about the development of “clean meat”—meat grown from animal cells without the animal itself Traditional meat production methods are extremely resource intensive and produce large amounts of greenhouse gases Further, the growing demand for meat indicated an impending “meat crisis” whereby not enough meat could be produced to meet demand “Clean meat” promised to enable meat production using a tiny fraction of the energy, water, and land used for traditional meat production Its production would create negligible greenhouse gases, and the meat itself would have no antibiotics or steroids, alleviating some of the health concerns of traditional meat consumption Furthermore, it would dramatically reduce animal suffering If successful, it would be one of the largest breakthroughs ever achieved in food production Innovating in India: The Chotukool Project Chapter Three opens with a case about the Chotukool, a small, inexpensive, and portable refrigerator developed in India In rural India, as many as 90 percent of families could not afford household appliances, did not have reliable access to electricity, and had no means of refrigeration Godrej and Boyce believed that finding a way to provide refrigeration to this segment of the population offered the promise of both a huge market and making a meaningful difference in people’s quality of life UberAIR Chapter Five now opens with a case about UberAIR, Uber’s new service to provide air transport on demand Uber had already become synonymous with on-demand car transport in most of the Western world; it now believed it could develop the same service for air transport using electric vertical take-off and landing aircraft (eVTOLs) There were a lot of pieces to this puzzle, however In addition to the technology of the aircraft, the service would require an extensive network of landing pads, specially trained pilots (at least until autonomous eVTOLs became practical), and dramatically new air traffic control regulations and infrastructure Was the time ripe for on-demand air transport, or was UberAIR ahead of its time? www.freebookslides.com viii Preface Tesla Inc in 2018 Chapter Six opens with a new case on Tesla, no longer just an electric vehicle company This case reviews the rise of Tesla, and then explores the new businesses Tesla has entered, including solar panel leasing and installation (Solar City), solar roof production, and energy storage systems (e.g., Powerwall) Why did the company move into these businesses, and would synergies betweeen them help to make the company more successful? Where Should We Focus Our Innovation Efforts? An Exercise Chapter Seven now opens with an exercise that shows how firms can tease apart the dimensions of value driving technological progress in an industry, map the marginal returns to further investment on each dimension, and prioritize their innovation efforts Using numerous examples, the exercise helps managers realize where the breakthrough opportunities of the future are likely to be, and where the firm may be currently overspending Scrums, Sprints, and Burnouts: Agile Development at Cisco Systems Chapter Eleven opens with a case about Cisco’s adoption of the agile development method now commonly used in software development The case explains what agile development is, how it differs from other development methods (such as stage-gated methods), and when (and why) a firm would choose agile development versus gated development for a particular innovation Cases, Data, and Examples from around the World Careful attention has been paid to ensure that the text is global in its scope The opening cases and examples feature companies from China, India, Israel, Japan, The Netherlands, Kenya, the United States, and more Wherever possible, statistics used in the text are based on worldwide data More Comprehensive Coverage and Focus on Current Innovation Trends In response to reviewer suggestions, the new edition now provides an extensive discussion of modularity and platform competition, crowdsourcing and customer co-creation, agile development strategies, and more The suggested readings for each chapter have also been updated to identify some of the more recent publications that have gained widespread attention in the topic area of each chapter Despite these additions, great effort has also been put into ensuring the book remains concise—a feature that has proven popular with both instructors and students Supplements The teaching package for Strategic Management of Technological Innovation is available online from Connect at connect.mheducation.com and includes: ∙ An instructor’s manual with suggested class outlines, responses to discussion questions, and more ∙ Complete PowerPoint slides with lecture outlines and all major figures from the text The slides can also be modified by the instructor to customize them to the instructor’s needs ∙ A testbank with true/false, multiple choice, and short answer/short essay questions ∙ A suggested list of cases to pair with chapters from the text www.freebookslides.com Students—study more efficiently, retain more and achieve better outcomes Instructors—focus on what you love—teaching SUCCESSFUL SEMESTERS INCLUDE CONNECT For Instructors You’re in the driver’s seat Want to build your own course? No problem Prefer to use our turnkey, prebuilt course? Easy Want to make changes throughout the semester? Sure And you’ll save time with Connect’s auto-grading too 65% Less Time Grading They’ll thank you for it Adaptive study resources like SmartBook® help your students be better prepared in less time You can transform your class time from dull definitions to dynamic debates Hear from your peers about the benefits of Connect at www.mheducation.com/highered/connect Make it simple, make it affordable Connect makes it easy with seamless integration using any of the major Learning Management Systems—Blackboard®, Canvas, and D2L, among others—to let you organize your course in one convenient location Give your students access to digital materials at a discount with our inclusive access program Ask your McGraw-Hill representative for more information ©Hill Street Studios/Tobin Rogers/Blend Images LLC Solutions for your challenges A product isn’t a solution Real solutions are affordable, reliable, and come with training and ongoing support when you need it and how you want it Our Customer Experience Group can also help you troubleshoot tech problems—although Connect’s 99% uptime means you might not need to call them See for yourself at www.freebookslides.com 336 Index Late entrants, 98 Launch timing optimizing cash flow vs cannibalization, 307–308 strategic launch timing, 306–307 Lawson, B., 273 Lazarsfeld, P F., 294 Lead user method, 259, 260 Learning curve, 72 Leatherbee, M., 139 Lee, H., 5, 11 Lee, J., 247 Leenders, R., 39 Lefton, T., 305 Legoux, R., 274 Lehr, Lou, 232 Lei, D., 196, 246 Lei, L., 130 Leonard-Barton, D., 140 Leonard, D., 247 Lerner, J., 149, 219 Levi, M., 122 Levin, R., 219, 220, 245 Levinthal, D., 64, 247 Levinthal, D A., 41, 93, 245 Levy, F K., 93 Liao, P., 221 Liberal licensing arrangements, 211 Licensing, 179, 186 agreements, 182 competing technologies, 182–183 for licensor, 182 “Open Innovation” approach, 182 Lichtenberg, F R., 10 Lieberman, M., 110 Lieberman, M B., 109 Liebeskind, J P., 194 Lievens, A., 275 Lightweight teams, 286 Liker, J K., 275 Lilien, G L., 111 Lindsay, James Bowman, 54 Link, A N., 194 Linton, J D., 162, 165 Lipparini, A., 275 Liu, H., 325 Ljungqvist, A., 219 Local-for-local strategy, 241 Locally leveraged strategy, 241–242 Local universities, 28–29 Loch, C., 273 Loch, C H., 274 Loddenkemper, C., 175 Long, C R., 282 “Loosely coupled” organizations advances in information technology, 238 Boeing’s 787 Dreamliner, 239–240 development and production activities, 237–238 disadvantages, 238, 240 Lopes-Bento, C., 195 Lubart, T I., 39 Lukas, B., 245, 247 Lyons, B., 137 M MacCormack, A., 164, 269, 293 Machan, D., 325 Macintosh, 235 MacKinnon, D W., 39 MacLeod, M., 97 Madrid Agreement or Madrid Protocol, 208 Madsen, T., 248 Magnetic secure transmission (MST), 67 Mahajan, V., 165, 274 Mahoney, J., 246 Mahoney, J T., 110, 248 Mahr, D., 275 Maidique, M A., 274 Majchrzak, A., 293, 295 Major International Trademark Treaties, 208 Makadok, R., 111 Malhotra, A., 293, 295 Malone, T W., 248 Mansfield, E., 10, 41, 54, 65 Manufacturers’ representatives, 312 Manyika, J., 227 Marangoni, A., 93 Marco, A., 220 Marino, K., 140 Marketing advantages and disadvantages, 317, 318 advertising, 316–317 awareness for Domosedan, 319 creating an information epidemic, 322 credible commitments, 323 to intended adopters, 318–320 preannouncements and press releases, 321 promotions, 317 publicity and public relations, 317 reputation, 321–323 to shape perceptions and expectations, 320–323 “Market mavens,” 322 Markham, S., 258 Markham, S K., 5, 11 Marriott, courtyard concept, 160 Martin, J A., 140 Massey, A P., 295 Matheny, Jason, 16–17 Mather, D R., 325 Mattrick, Don, 303 www.freebookslides.com Index 337 Mauborgne, R., 78, 79, 94, 135, 139 Mavens, 322 Mavroudi, E., 245 Mayer, Marissa, 226 May, K E., 294, 295 McCarthy, I P., 273 McCrae, R R., 40 Mcdermott, R E., 40 McDonald, R., 45 McDonough, E F., 295 McEvily, B., 294 McEwen, Dorothy, 75 McGann, M E., 326 McGrath, R., 195 McGrath, R T., 165 McKnight, William, 233–234 McPherson, S O., 295 “Meat crisis,” 15–18 Mecham, M., 240 Mechanistic structure, 232 Melcer, R., 194 Melero, E., 39 Melner, S B., 294 Menon, A., 245 Merck, 256 Merton, R K., 247, 294 Michael, G., 110 Michaelsen, L K., 294 Michaels, R E., 10 Microsoft monopoly costs, 86–87 network externality, 86 postmortem report, 270 rise of, 75–76 threat to, 60 Miguel, P C., 275 Mikulak, R J., 40 Miles, M P., 247 Miles, R., 246 Miles, R E., 246 Miller, C W., 295 Miller, D., 294 Miller, D J., 110 Miller, K D., 164 Millson, M R., 276 Milman, O., 122 Miner, A., 247 Minimum viable product (MVP), 250 Min, S., 110 Mishra, M., 174 Mitchell, G., 164 Mitchell, R., 122 Mitchell, W., 124 Mobile payments adults with bank account, 69 Alipay, 67–68, 70 cash payments, 67, 68 mobile banking, 69 M-Pesa, 70 Square and PayPal, 68–69, 70 Visa or MasterCard, 67 Modarress, B., 275 Model 3, 120–121 The Model S, 118–119 Model X, 120 Modes of development, 184, 185 Modular innovation, 49 Modularity, 236–237 definition, 87 economies of substitution, 89 integrated (nonmodular) product systems, 89 “launch engine,” 89 single product configuration, 87, 88 Modular organization, 229 Moeslein, K M., 164 Mohammed, A., 234 Mohr, J., 326 Mohr, J J., 64, 324 Monks, K., 71 Monogenic diseases, 168–169 Monopoly rents, 99 Montgomery, D., 110 Montgomery, D B., 109 Montoya, M M., 295 Moore, G., 51, 324, 326 Moorman, C., 247 Morabito, J., 162, 165 Moran, P., 195 “More innovative” projects, 5 Morris, C., 110 Morris, C R., 221 Mosakowski, E., 248 Motivation, 22 Mowery, D C., 93, 194 MP3, 197–198 M-Pesa, 70 Mucha, Z., 111 Muir, N K., 294 Mukherjee, A., 93 Mukherjee, A S., 93 Mullen, B., 282 Mullin, J., 220 Munarriz, R., 325 Muoio, D., 97 Musk, Elon, 21–22, 46, 96–97, 117, 118, 119, 120, 121, 122, 282 N Nacher, T., 273 Nadu, T., 45 Nagata, A., 42 Nagji, B., 164 Nalebuff, B J., 139 Nanda, A., 140, 195 Napster, 142, 198–199 Narayanan, V K., 196 National Center for Manufacturing Sciences (NCMS), 184 National Television Systems Committee (NTSC), 76 Near Field Communication (NFC) chips, 67 Nelson, R., 10, 42, 219, 220 www.freebookslides.com 338 Index Nelson, R R., 36 Nembhard, I M., 293 Net present value (NPV), 149, 150–151 Network externalities, 76, 86 complementary goods, 74 components of value, 80, 82 definition, 73 design dominance in markets, 83–85 installed base, 74 market share impact, 83–84 minority market share levels, 85 network externality returns curves, 84–85 smartphone operating systems, 80 stand-alone utility alone, 80, 84 “vaporware” products, 81–82 Network of “skyports,” 101 Network organization, 229 Neubauer, A C., 20, 39 New Harvest, 16 Newman, L I., 93 New product development process CAD/CAE/CAM, 268–269 controlling development costs, 254 crowdsourcing, 260–262 design for manufacturing, 267 failure modes and effects analysis, 267–268 involving customers, 259 involving suppliers, 260 maximizing fit with customer requirements, 252–253 metrics, 271 minimizing development cycle time, 253–254 multiple measures, 270 overall innovation performance, 271 performance assessments, 269–270 project champions, 257–258 QFD-the house of quality, 265–267 sequential vs partly parallel development processes, 254–255, 257 stage-gate processes, 262–265 tools for, 269–271 New product development teams administration, 288–289 advantages, 282–283 autonomous teams, 286–287 boundary-spanning activities, 284 brainstorming teams, 281–282 characteristics of, 287 composition, 280, 282–283, 284 cross-functional teams, 280, 282 functional teams, 285–286 heavyweight teams, 286 heterogeneous teams, 283 homophily, 283 leadership, 288 lightweight teams, 286 managing virtual teams, 289, 291 organizational tenure diversity, 283 personality factors, 283–284 quality and price, 280 size, 280 Newton MessagePad, 253 New United Motor Manufacturing Inc (NUMMI) venture, 118 New, W., 220 NeXT, 74, 78 NextStep, 79–80 Neyer, A., 164 Nickerson, J A., 109, 165 Nijssen, E J., 273 Nijstad, B A., 281, 282 Nintendo, 81–83, 85, 91, 212, 216, 253, 298–304, 306–309, 315–316, 321 Nintendo 64, 82–83 Nixon, R., 10 Nobeoka, K., 42 Nohria, N., 42 Nonaka, I., 274 Normative stakeholder analysis, 127 Norto, D., 136–137 Not-invented-here syndrome, 241 Nudelman, M., 227 NuvoMedia, 116 Nyce, C M., 251 O Obama, Barack, 183 Oberholzer-Gee, F., 219 O’Brien, J M., 305 Ojomo, E., 45 O’Keefe, R D., 245, 274 Oligopolistic industries, 124 Oliver, A L., 194 Olshavsky, R W., 10 Olson, J M., 282 “One Great Idea,” 23 Open source software, 211 Opler, Tim, 231 Optimizing cash flow, 307–308 O’Reilly, C A., 234, 245, 247, 293, 294 Organic structure, 232 Organizational creativity definition, 22 suggestion box program, 23 Organizational learning, 72 www.freebookslides.com Index 339 Original equipment manufacturers (OEMs), 213, 313 Osborne, Alex, 281 Ostergaard, C R., 293, 294 Outsourcing, 183–184, 186–187 Owan, H., 165 Owen-Smith, J., 39 Oxley, J E., 194 P Pacheco-de-Almeida, G., 273 Page, Larry, 225 Pahnke, E C., 149 Palomeras, N., 39 Pancer, E., 97 Panchadar, A., 122 Parallel development processes, 108 Paris Convention, 205 Paris Convention for the Protection of Industrial Property, 205 Park, W., 63 Partly parallel development process, 254 Patent Cooperation Treaty (PCT), 206 Patents definition, 202 historical success rates, 204 for inventions, 203 Major International Patent Treaties, 204–206 patent strategies, 206–207 software-enabled methods, 203 Patent thickets, 207 Patent trolling, 207 Path dependency, 77 Patterson, J., 23 Pauhus, P B., 281, 282 PayPal, 68–69 Paypal financial payment system, 21 Pegoraro, R., 201 Pellerin, C., 196 Penetration pricing, 310 Penrose, E G., 36 Penrose, E T., 139 Perkel, J M., 175 Perlitz, M., 165 Personal digital assistant (PDA) industry, 107 Personality, 22 Peske, T., 165 Peter, 121 Pfizer, 171 Pharmaceutical industry, 158–159 Phelps, C., 38, 111, 193, 195 Philips, J L., 253, 294, 299 Pietras, T., 196 Piezunka, H., 273 PillCam, 21–22 Pinch, T J., 63, 64 Pisano, G P., 194, 196 Platform ecosystems Amazon Prime ecosystem, 90 definition, 89 hybrid organizational form, 90 pure modularity and pure integration, 90–91 video game systems, 91 Platform projects, 157, 158 PL/M (Programming Language/ Microcomputers), 75 Ployhart, R., 93 Pogue, D., 71 Poletes, G., 282 Porter, M A., 139 Porter, M E., 42, 65, 139 Porter, Michael, 123, 124, 126, 127, 128, 139 Positive consumption externalities (see network externalities) Post, Mark, 17 Postmortems at Microsoft, 270 Potential entrants, threat of, 125 Potter, A., 273 Powell, W W., 39, 193 PPD (Pharmaceutical Product Development Inc.,), 189 Prahalad, C K., 131–133, 132, 139, 140, 184, 194, 195, 196 Preemption of scarce assets, 99 Preston, C., 201 Preston, L., 139 Price, L L., 322 Price, R., 227 “Price vigilantes,” 322 Pricing “freemium” model, 311 penetration, 310 “razor and razor blade strategy,” 311 survival, 310 Priem, R L., 294 Primary process thinking, 20 Private nonprofit organizations, 32 Process innovation, 46–47 Proctor, D., 251 Product champions, myths, 258 Product Development and Management Association (PDMA), 4, 5 Product innovation, 46–47 “Professor’s privilege,” policy of, 31 Project champions product champions, 258 risks of championing, 257–258 Project map, 157 Project map, 157, 158 Project Reality, 321 “Project Unreality,” 321 www.freebookslides.com 340 Index Protection mechanisms, innovation advantages, 213–215 appropriability, 202 architectural control, 214–215 copyright, 208–209 diffusion, advantages of, 215–218 effectiveness and use, 211–218 liberal licensing arrangements, 211 Microsoft’s Windows, 215 open source software, 211 patents, 203–207 proprietary technology, 213–214 trademarks and service marks, 207–208 trade secrets, 210–211 wholly proprietary systems vs open systems, 201, 212–213 Prpic, J., 273 Q Qualitative methods, 154–159 aggregate project planning framework, 157–159 capabilities, role of, 155–156 customer, role of, 155 project timing and cost, 156–157 Q-sort, 159 screening questions, 155–157 Quality function deployment (QFD), 262, 265–267 Qualls, W., 10 Quantitative methods conjoint analysis, 159–161 data envelopment analysis, 161–162 disadvantages of, 154 discounted cash flow methods, 149–152 and qualitative information, 159–162 real options, 152–154 QWERTY keyboard, 99–100 R Radical innovation, 46, 47–48 “Radical” projects, 5 Rahm, D., 41 Raj, S P., 276 Raleigh, 49 Rammer, C., 164 Ramsey, M., 122 Rangan, V K., 324 Rao, H., 279 Rappa, M A., 64 Rapson, R L., 322 Raskin, Jef, 235 Rate of return, 77 Ravichandar, R., 251 R&D intensity, 146, 147 Reagans, R., 293, 294 Real options, 152–154 Recording Industry Association of America (RIAA), 198–199 “Red ocean” strategy, 134 Reed, R., 139 Regional clusters, 33 Reinders, M J., 325 Reiss, R., 40 Relational governance, 192 Remote associations or divergent thinking, 20 Renauer, C., 175 Renstrom, R., 240 Research and development basic and applied, 27–28 demand-pull model, 28 expenses, 101 science-push approach, 28 Resource fit, 187–188 Restuccia, M., 274 Retailers, 312 Returns advantages, 100 Rhodes, E., 165 Ribero, M., 321 Richardson, J G., 42 Rietveld, J., 94, 305, 312, 325 Rietzschel, E F., 281, 282 Rifkin, J., 101 Riger, K., 175 Rios, L A., 245 Rive, L., 121 The Roadster, 117–118 Roberts, A., 26–27 Roberts, E., 29, 40, 41, 274, 294 Roberts, E B., 284 Roberts, J., 220 Robertson, A B., 274 Robinson, M., 195 Robinson, W., 110 Rochford, L., 294 Rockstar Games, 29 Rogers, E., 63, 65 Rogers, E M., 57, 324, 326 Rogers, M., 247 Rogers, S B., 194 Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations, 209 Ronson, W T., 110 Roos, D., 10 Rosen, B., 293, 295 Rosenbloom, R., 64, 65 Rosenkopf, L., 41, 194 Ross, S A., 164 Rotemberg, J., 245 Rothaermel, F T., 193 Rothwell, R., 28, 31, 39, 273, 274 www.freebookslides.com Index 341 Ro, Y K., 63 Roy, R R., 64 Rubenstein, A H., 274 Rudden, E., 274 Rudelius, W., 294 Rugman, A M., 248 Ryan, R M., 40 S Sakai, K., 195 Sakkab, N., 195 Salas, E., 282, 294 Salespersons, 322 Salgado, J F., 293 Saloner, G., 245 Sampson, R., 193 Samsung Pay, 67 Sanchez, R., 246, 248 Sandberg, Birgitta, 319 Sangamo’s partnerships, 171–172 Sawyer, J E., 40 Sawyer, R K., 39 Saxenian, A., 35, 42 Schepers, J., 275 Scherer, F M., 124, 246 Schilke, O., 139 Schilling, M A., 10, 11, 18, 25, 38, 39, 40, 41, 42, 64, 92, 93, 94, 103, 111, 145, 164, 165, 190, 193, 194, 195, 196, 201, 219, 221, 240, 245, 246, 247, 248, 251, 267, 273, 282, 295, 305, 324, 325 Schmalensee, R., 245 Schmenner, R W., 273 Schmidt, E., 225–226 Schneider, T., 175 Schofield, J., 201 Schoonhoven, C., 236, 243, 247 Schoonhoven, C B., 247 Schoormans, J P L., 325 Schrank, R., 165 Schreier, M., 275 Schumpeter, J., 65, 228 Schumpeter, J A., 10, 36, 245 Schwartz, E I., 25, 110, 276 Schwartz, N L., 245 Science parks, 31 Science-push approach, 28 Scott, A J., 195 Scouting activities, 284 Scrofani, J., 221 Scuria-Fontana, C., 64 S-curves firm, switching technologies, 56 limitations as, 55–56 prescriptive tool, 54–55 in technological improvement, 50–53 technology cycles, 56, 60–62 in technology diffusion, 53–54 of technology performance, 51 Seamans, R., 93 Segil, L., 196 “Segment Zero,” 59–60 Segway Human Transporter, 25 Selby, R W., 270 Selen, W J., 275 Self-reinforcing cycle, 74 Selling direct vs using intermediaries, 312–314 Sengupta, S., 64, 324 Service marks, 207–208 Shah, S K., 40 Shamsie, J., 111 Shankar, V., 111 Shanley, M., 111 Shan, W., 194, 196 Shapira, P., 39 Shapiro, C., 92, 93, 94, 124 Shapiro, P., 18 “Shark Tank” style competition, 23 Sharp, 290 Shaw, M E., 293 Shaw, R W., 111 Shaw, S A., 111 Sheff, D., 305 Shepherd, D A., 111 Shire Pharmaceuticals, 171, 172 Sholes, Christopher, 99 Short Message Service (SMS), 70 Shukla, P P., 273 Shuldiner, A T., 140 Shuster, G., 25 Shuster, I., 25 Siebdrat, F., 295 Siekman, P., 195 Siggelkow, N., 247 Silverman, A., 41 Silverman, A B., 220 Silverman, B S., 194 Silverstein, J., 276 Simon, H., 64 Simon, H A., 11 Sinakin, Y D., 305 Singer, M., 246 Singh, H., 195, 196 Singh, J., 240 Singh, S., 130 Singh, S S., 275 “Single operator license model,” 199 Single wireless telephone standard, 76 Skiera, B., 325 Skoll, Jeff, 118 Skunk Works®, 235 Slater, S F., 64, 324 Small Business Administration (SBA), 148 Small Business Innovation Research (SBIR) program, 31 Small Business Technology Transfer (STTR), 31 www.freebookslides.com 342 Index Smartphone operating systems, 80 Smartphones, rise of, 199 Smith-Doerr, L., 39, 193 Smith, M D., 325 Smith, W., 247 Smith, W K., 139, 245 Snelson, P A., 274 Snow, C., 246 Snow, C C., 246 Social loafing, 280 Socially complex knowledge, 202 Socially complex resources, 130 Sofka, W., 325 Sokoloff, K I., 40 Solar City, 21, 115 Sole-source technology, 216–217 Solo development of project availability of capabilities, 176 building and renewing capabilities, 177 complementary skills or resources, 175 controlling technology development and use, 176–177 protecting proprietary technologies, 176 Soloway, T., 256 Solow, R., 11 Solow Residual, 3 Solow, Robert Merton, 2–3 Somaya, D., 220 Somermeyer, S., 295 Sorenson, O., 42, 64 Sorokanich, B., 122 Souder, W B., 165 Souder, W E., 274 Sources, innovation, 19 external vs internal, 29–30 Southwest Airlines, 135 SpaceX, 21 Spence, M., 110 Sport utility vehicle (SUV), 120 Sprengel, Herman, 54 Square, 68 “Stage-gate” methods, 249 escalation costs and cycle time, 262, 263 Exxon Research and Engineering’s Stage-Gate System, 262, 263 go/kill gate, 262–263 new product development process, 264 Stahl, H., 41 Stakeholder analysis, 127 Stalker, G M., 244 Stanaro, R., 256 Stand-alone value, 78 Standardization, 232 Steam engines in mines, use of, 36 Steensma, K., 195, 196, 246, 248 Stein, B., 300 Steitz, C., 194 Stephan, J., 196 Sterman, J D., 93 Sternberg, R J., 39 Stevens, G., 11 Stewart, D., 325 Stillman, H., 140 Stock, G N., 246 Stormer, C., 196 Storper, M., 195 Strategic alliances, 185 capability complementation vs transfer, 180 collective research organizations, 181 complex and tacit knowledge, 179 equity alliances, 179 large and small firms, 179 levels of mutual commitment, 181 Strategic fit, 188 Strategic intent Prahalad and Hamel’s model, 133 resource and capability gap, 135, 137 Strategic launch timing, 306–307 Strategic positions, 189 “Strategy canvas,” 134 Strauss, N., 282 Stroebe, W., 281, 282 Stross, R., 201 Stuart, T., 42, 190 Suarez, F F., 110 Suggestion box program, 23 Su Han Chan, 194 Sul, J., 194, 325 Sunderraman, G., 44 Sungwook, M., 110 Super Audio CD (SACD), 81, 141 Super Glue, 26, 27 Super Nintendo Entertainment System, 81 Suppliers bargaining power of, 125–126 firm linkages with, 28–29 Survival pricing, 310 Suttell, S., 174 Sutton, R., 36, 279 Sutton, R I., 41 Sweet, C., 122 Switching costs, 126 System integrator as coordinator, 290 Szulanski, G., 42 www.freebookslides.com Index 343 T Tabrizi, B N., 274 Tacit knowledge, 34, 202 Tacit resources, 130 Tagamet, 104, 256 Takanashi, M., 194, 325 Takeuchi, H., 274 TALENs (transcription activator-like effector nucleases), 170 Tan, J., 195 Task coordination activities, 284 Taylor, S A., 273 Teague, P E., 195 Team Leads, 277–278 Technological improvement degree of legitimacy, 51 discontinuous technologies, 53 disruptive technology, 53 Intel’s microprocessor transistor density, 51, 52 technological discontinuity, 53 technology’s performance, 50–51 Technological innovation “best practices,” 9 collaboration strategies, 8 definition, 1 first-mover advantages/disadvantages, 6, 8 globalization of markets, 1 gross domestic product, 2, 4 impact on society, 2–4 by industry, 4–9 innovation deployment strategies, 9 and knowledge, 3 market segmentation and product obsolescence, 2 multiple product variations, 1–2 negative externalities, 3 product development process, 5, 9 production economies of scale, 1 quantitative and qualitative methods, 8 residual growth component, 3 sources of, 6 strategic management, 6–9 types and patterns, 6 Technological leadership, 98–99 Technological spillovers, 36–37 Technology clusters agglomeration economies, 35 complex or tacit knowledge, 34 definition, 33 geographical clustering, 35 innovation productivity, 34–35 regional clusters, 33 textile clusters, 36 Technology cycles creative destruction process, 56 dominant design, 60 era of ferment, 60–61 era of incremental change, 61–62 technology evolution model, 56 Technology diffusion consumer electronics, 54, 55 definition, 53 innovation and adopter categories, 57 s-curve with adopter categories, 58 Technology trajectory, 46 Teece, D., 103, 194, 195, 246, 248 Teece, D J., 219 Tellis, G., 100, 110, 326 Tellis, G J., 109 Tencent Holdings, 180, 181 Teng, B., 188, 196 Teng, B S., 196 Terleckyj, N E., 11 Terrell, K., 305 Terwiesch, C., 274 Tesla, Inc in 2017, 115, 116 Gigafactory 1, 121 history of, 116–117 Model 3, 119, 120–121 The Model S, 118–119 Model X, 119, 120 the Roadster, 117–118, 119 SolarCity, 121 solar roofs, 115, 116 Tesla, Inc in 2018, 115–116 Tesla’s future, 121 Tesla, Nikola, 117 Tesluk, P E., 295 Thermoelectric cooling, 44 Thiel, E., 175 Third generation (3G) telephony, 47 Thomas, A., 64, 93 Thomas, D A., 24 Thomas, R., 256 Thomas, R J., 40, 161 Thompson, J D., 245 Thomson Multimedia, 197 Three-dimensional printing, 269 3G wireless communication technology, 47–48 3M, shifting structures at, 233–234 Thum, M., 93 Timmermans, B., 293, 294 Toole, A A., 39 Toshiba, 189 www.freebookslides.com 344 Index Townsend, J., 274 Toyota Prius hybrid-electric vehicle, 78, 79 Trachtenberg, J., 305 Trademarks, 202, 207–208 Trade secrets, 210–211 Trajtenberg, M., 42 Transnational approach, 243 Treacy, M., 247 Tripsas, M., 65, 140 Tucci, C., 140 Tucci, C L., 140 Tuff, G., 164 Tuomisto, H L., 18 Turner, N., 305 Tushman, M., 60, 61, 65, 71, 234, 245, 247 Tushman, M L., 63, 139, 180, 195, 247, 284 Tyson Foods, 18 U UberAIR battle for skies, 97 classes of services, 95–96 opportunities and challenges, 96–97 VTOL, 95 Ulrich, D., 246 Undeveloped supply and distribution channels, 101 Uniform Trade Secret Act, 210 United Parcel Service (UPS), 47 Universal Copyright Convention (UCC), 209 Universities, 30–31 UNIX, 59, 211, 215, 216, 217 Urban, G L., 111 USA Today, 235 Usher, A., 36 Usher, A P., 38 U S Patent and Trademark Office, 208 U S Robotics, 107 Utterback, J M., 56, 60, 65 Uzzi, B., 196, 294 V Valeti, Uma, 17 Value increasing returns, 77 network externalities, 78–85 stand-alone value, 78 Value-added resellers (VARs), 313 Value chain, Porter’s, 128 van Bever, D., 45 Vance, A., 282 van Eelen, Willem, 16 Van Hooland, B., 274 van Knippenberg, D., 293 Van Wassenhove, L N., 93 “Vaporware” products, use of, 81–82, 321 Varian, H., 92 Vasco, C E., 10 Veiga, A., 201 Veit, S., 76 Venture capital, 148–149 Vermeulen, F., 154, 165 Vertical integration, 126 Vertical Take-off and Landing (VTOL), 95 Vidal, P., 93 Video game industry eighth generation, 303–304 emergence of 8-bit systems, 298 128-bit systems, 301–302 Pong, 297 seventh generation, 302–303 16-bit video game systems, 298–299 32/64-bit systems, 299–300 Video game systems, 91 Viral marketing, 317 Virtual organization, 229 Virtual teams, 289 challenges, 291 international R&D teams, 290–291 managing, 289, 291 synchronous communications, 291 Vogt, H., 26 von Hippel, E., 38, 40, 260, 274 Vonortas, N S., 194 von Stamm, B., 164 von Zedtwitz, M., 290, 291 W Wade, J., 94 Wagonfeld, A B., 24 Walker, D., 325 Wallace, M., 325 Walmart, 124, 125, 250, 300, 315 Walsch, S T., 162, 165 Walsh, J., 42 Walt Disney Company animated film, making of, 277–278 creating a creative culture, 278–279 team communication, 278 workspace and collocation, 278 Wang, C., 245 Warner Music, 199 Wassenhove, L., 93 “Waterfall” method to develop software, 249, 250 Watson, W., 294 Webb, A P., 279 Weber, A., 38 Weber, J., 240 www.freebookslides.com Index 345 Weiss, G W., 195 Welch, Jack, 158 Westerfield, R W., 164 Westerman, G., 245 West, J., 194 Whalen, B J., 75 Wheelwright, S C., 157, 164, 165, 272, 275, 276, 295 Wheelwright, S G., 274 White, C C., 275 White, J B., 122 Whitney, K., 294, 295 Wholesalers, 312 Wholly open systems, 212–213 Wholly proprietary systems, 212–213 Wicks, A., 139 Widdenmayer, B., 248 Wiersema, F., 247 Wiesner, W H., 284, 295 Wijman, T., 305 Wilcox, J., 305 Wildstrom, S H., 305 Wilemon, D., 276, 295 Williams, A., 122 Williams, K., 293, 294 Williams, K D., 293 Williamson, O E., 196 Williams, R R., 26 Willig, R D., 245 Wind, Y., 165, 274 Winner-take-all markets, 76–77 Winter, S., 36, 219, 220 Wireless telecommunication products, 47 Womack, B., 220 Womack, J P., 10 Woodman, R W., 40 Wood, R C., 245 Working memory, 20 World Intellectual Property Organization, 208 World Intellectual Property Organization Copyright Treaty, 209 Wu, D J., 94 Wu, F., 274 Wüstenhagen, R., 325 Wyatt, E., 220 X Xbox, 301–302 Xerox, 133, 228–229 Xie, J., 326 Y Yelle, L E., 93 Yoon, E., 111 Yoshida, J., 201 Young, H C., 274 Young, H P., 64 Young, J S., 246 Youtie, J., 39 Z Zaheer, S., 248 Zander, U., 42 Zanna, M P., 282 Zantac, development of, 256 Zemsky, P., 273 Zenger, T R., 246, 248 Zeschky, M., 248 Zhu, F., 93 Zinc-finger nucleases (ZFNs), 167, 170, 171 Zinner, D., 164 Zip2, 21 Zirger, B J., 274 Zucker, L., 194 Zuckerman, E., 293 www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com www.freebookslides.com .. .Strategic Management of Technological Innovation Strategic Management of Technological Innovation Sixth Edition Melissa A Schilling New York University First Pages STRATEGIC MANAGEMENT OF. .. Importance of Technological Innovation? ?? The Impact of Technological Innovation on Society Innovation by Industry: The Importance of Strategy The Innovation Funnel The Strategic Management of Technological... journals such as Academy of Management Journal, Academy of Management Review, Management Science, Organization Science, Strategic Management Journal, and Journal of Economics and Management Strategy