The purpose of this paper was to shed light on the process through which the business model of a certain industry evolves due to interaction caused mainly by competition among companies. To this end, I conducted a detailed investigation and analysis based on interviews with representatives of companies in the inkjet-printer business, which has a well-known business model. From the results of the interviews, I was able to break down the evolution of the business model into five stages, and provide details of the structure of the business model at each stage and the process through which it evolves. The five stages were as follows: (1) earnings-from-printer model, (2) earnings-from-cartridge-model, (3) third-party-earnings-from-cartridge model, (4) recovery-of-earnings-from-third-parties model, and (5) the current business model. In addition, based on these results, I performed a theoretical analysis of the logic and mechanisms of this evolution using theories such as two-part pricing. The results of the analysis I performed for this paper showed that in this case competition among companies, which involved learning from rival companies and the market, caused the business model to evolve, and that this logic was in line with economic theory. In other words, the behavior of each company, being based on competition and the learning that this led to, was economically rational. It was therefore shown that competition among companies is an important factor for establishing a theory of the logic and mechanisms of business-model evolution. Furthermore, this case also demonstrated and indicated the significance of economic theories such as two-part pricing, which were used for the theoretical analysis performed in this paper.

View full abstract

The inter-partner diversity is a difference of various characteristics between partners in alliances. This study analyses diversity between partners in alliances based on a number of different factors, such as capabilities, viewpoints, corporate culture, work routines, etc. and attempts to understand how they influence the performance of alliances and how such influence is moderated or mediated. The article presents the model which comprehensively grasps its influence on performance and the role of alliance governance in this relationship. The hypotheses are proposed reflecting this model, and they are tested using the data of 497 technology alliances collected from the survey to alliance managers. It was clarified that alliances perform better when they make appropriate use of diversity in partners' capabilities and viewpoints. It is especially important that alliances which are formed for technology development combine the technical skills and expertise of partners in a complementary way. On the other hand, the management of alliances is easier where partners' corporate culture and work routines are homogeneous. The diversity in corporate culture and work routines makes alliances more unstable and difficult to manage. However, this difficulty can be overcome by having a relational governance structure, such as frequent meetings between executives and close communication among alliance members. The article emphasizes the importance of having a comprehensive understanding of inter-partner diversity, by showing that each factor of diversity has a different influence on the alliance performance based on different mechanisms. It concludes that firms need to promote alliances with an appropriate relational governance structure and utilize the inter-partner diversity for the achievement of good performance.

View full abstract

This study demonstrates how business development approaches shape competitive advantage. Existing studies focusing on business development have identified two perspectives. The first is the long-term plan perspective: business and technology, which currently operate on a nonprofit mode, should be freed from the pressure of becoming profitable. The second is market opportunity perspective: business and technology should learn and gain from response to market opportunity. Both perspectives are appropriate and reasonable. However, existing studies have not focused on when and how these perspectives lead to competitive advantage. As an attempt to address this assessment, this study examines a case of the Reverse Osmosis (RO) membrane industry where the market opportunity perspective leads to competitive advantage. This case study compares the perspectives of Toray and Nitto Denko: Toray emphasizes long-term plan and Nitto Denko highlights market opportunity. In the RO membrane industry, considering the huge market (seawater desalination market), both the perspectives were deemed appropriate. However, at present, Nitto Denko's approach is more profitable than Toray's. This can be explained by the fact that as part of the business development process, Nitto Denko has constructed foreign channels and complementary technology for seawater. The benefits of these complementary assets were not obvious beforehand, but because of the approach emphasizing market opportunity, Nitto Denko's perspective could have got the advantage. This study focuses on business development research and specific perspectives supported by different practitioners. With respect to business development research, the study revealed a condition where the approach that emphasized market opportunity was profitable. The study also produced counterevidence for common belief that the long-term plan was critically important.

View full abstract

Organizational slack is excess resources that influence various organizational phenomena, including adaptation, formation of dominant coalition, political behaviors, centralization, bureaucracy, risk preferences and innovation. As for its influences on organizational performance, however, scholars disagree whether the relationship is positive, negative, or curvilinear. We empirically examined moderating effectes of environmental, as well as organizational characteristics to argue that the form of relationship between organizational slack and organizational performance differs by the degree of environmental variability, search width, and by organizational age. Our analyses of 37 Japanese pharmaceutical firms between 1991 and 2010 (616 firm-years) show that organizational slack more negatively influences organizational performance to the extent that environmental variability or search width increase. Organizational age also moderates the relationship such that older firms enjoy more positive influences of organizational slack while younger firms suffer from more negative influences. The results indicate that we may be able to reconcile mutually contradictory findings in prior work by taking environmental, as well as organizational characteristics into consideration. We also discuss our findings' implications on the relationship between organizational slack and the attention-based view of the firm.

View full abstract

How are capitalism and business management in Germany to be understood from the perspective of Japan? As defeated nations in World War II, both Germany and Japan received significant American leadership and support following the war. Both countries developed their enterprises, industries, and economies by deploying and adapting technology and management methods from the U.S.A. while establishing their own systems of industrial concentration. By these means, both nations became major trading countries. However, current economic and business conditions differ greatly between Germany and Japan. In trade, American influence on Japanese business is still strong. Japan could not and cannot establish a complementary relationship with American industrial sectors and their products in the American market. Furthermore, a common market structure like the European Union does not exist in Asia. In contrast, Germany has developed independently of American influence and become part of a well-integrated regional economy. What were the driving forces that created those differences? That question is approached based on the assumption that the origins of the distinct characteristics of German business management after the war were developed in the 1950s and 1960s. We analyze the transformation of business management in Germany. The basic foundation of European integration is demonstrated by analyzing the internal structural transformation of management in Germany as well as market factors in Europe.

View full abstract

Using data published in the 2004-2007 annual reports of companies listed by the board for small and medium-sized enterprises (SMEs) in China, the study examines the relationship between characteristics of the top management team (TMT) and enterprise innovation activities in Chinese SMEs. Findings indicate: 1) Firms more actively engaged in innovation activities are likely to have TMTs characterized by shorter team tenure, higher educational level, more educational specialization in science and engineering, and more occupational background in output functions; 2) Age heterogeneity among TMT members has significantly positive influence on enterprise innovation activities, but heterogeneity of educational level among TMT members has a notably negative influence on those same activities; 3) TMT age and heterogeneity of team tenure, educational, and occupational background have little impact on enterprise innovation activities. This study may provide a point of reference for further research on top management teams and enterprise innovation activities based on upper echelons theory.

View full abstract

Although an entrepreneurial boom has spread all over the world, the survival rate for new startups remains low and few of them experience growth. What limits firm growth? In order to address the question, this paper explores the relationship between growth and dynamic capability from the perspectives of organizational lifecycle and dynamic capability theory. A three-year investigation of an entrepreneurial firm identifies three main dilemmas that have hindered growth in the company. Referring to Adizes' (1990) model, this paper argues that the mix of dynamic capabilities should evolve through the organization lifecycle in order to sustain growth. It is also important for a firm to transform individual capabilities into organizational ones in its early stages. Implications for further research are discussed briefly in the conclusion

View full abstract