Long-term buyer-supplier relationships in IT services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kedwadee Sombultawee ◽  
Prasopchai Pasunon
Keyword(s):  
High Technology ◽  
Integrative Model ◽  
Supplier Relationships ◽  
Content Type ◽  
Technology Firms ◽  
Success Model ◽  
High Technology Firms ◽  
Supplier Relationship

Purpose The purpose of this study is to explore an integrative model of supplier success, using a case study of the Thai high-technology firms. The study focuses on buyer-supplier relationships of information systems (IS), including bundles of hardware, software and services because these relationships are dependent on both immediate performance quality of the IS and long-term maintenance of a strong buyer-supplier relationship. Design/methodology/approach The research used an integrative model that incorporated the DeLone and McLean (2003) IS success model, representing system quality and Clauss and Tangpong’s (2018) impregnable exchange relationship model, representing relationship quality. Exploratory mixed methods study incorporated interviews with supplier relationship managers at five Thai high-technology firms (n = 15) and a quantitative survey of buyer firms (n = 393). Findings Results supported the integrative system-supplier success model. The most significant limitation is that the study was only conducted in a single industry (high tech) when the IS buyer-supplier relationships modeled here are ubiquitous in modern business. Research limitations/implications Despite this limitation, the research contributes to the literature by developing and testing a long-term buyer-supplier relationship success model that incorporates both the characteristics of an IS and the supplier characteristics that lead to positive outcomes. Originality/value This study makes intuitive sense and being demonstrated statistically – the fact that the overall quality of an IS, coupled with a well-liked, non-substitutable supplier with a history of good performance, would be considered to be a successful supplier relationship is not especially controversial. The value of the study lies in the integration of the two models to represent different aspects of supplier performance, which could have a different effect on the buyer-supplier relationship in the long-term.

Does Innovation Cause Stock Market Runups? Evidence from the Great Crash

2008 ◽  
Vol 98 (4) ◽  
pp. 1370-1396 ◽  
Author(s):  
Tom Nicholas
Keyword(s):  
Stock Market ◽  
High Technology ◽  
Physical Capital ◽  
Knowledge Capital ◽  
Significant Excess ◽  
Technology Firms ◽  
High Technology Firms ◽  
Great Crash ◽  
Crash Recovery

This article examines the stock market's changing valuation of corporate patentable assets between 1910 and 1939. It shows that the value of knowledge capital increased significantly during the 1920s compared to the 1910s as investors responded to the quality of technological inventions. Innovation was an important driver of the late 1920s stock market runup, and the Great Crash did not reflect a significant revaluation of knowledge capital relative to physical capital. Although substantial quantities of influential patents were accumulated during the post-crash recovery, high technology firms did not earn significant excess returns over low technology firms for most of the 1930s. (JEL G14, N12, N22, O30)

A study of how ICT capabilities can influence dynamic capabilities

2016 ◽  
Vol 29 (2) ◽  
pp. 179-201 ◽  
Author(s):  
Vinit Parida ◽  
Pejvak Oghazi ◽  
Stefan Cedergren
Keyword(s):  
Small Firms ◽  
Dynamic Capabilities ◽  
High Technology ◽  
Business Environment ◽  
Alternative View ◽  
Content Type ◽  
Internal Resources ◽  
Technology Firms ◽  
Ict Use ◽  
High Technology Firms

Purpose – Prior studies have argued that small firms with dynamic capabilities can revise and reconfigure their internal resources to meet the uncertainties of their business environment. However, there is a lack of understanding of how they can develop such critical capabilities. The purpose of this paper is to propose that small firms can employ information and communication technology (ICT) capabilities as a facilitator for developing dynamic capabilities. Thus, the study builds on resource-based view (RBV) literature and information systems (IS) literature by examining the influence of ICT capabilities on the dynamic capabilities of small firms. Design/methodology/approach – Several hypotheses were tested by analysing the survey data from 291 small high-technology firms in Sweden. Findings – The results reveal that ICT capabilities influence dynamic capabilities of small firms. More specifically, the ICT use for internal efficiency positively influences adoptive capabilities, collaborative use of ICT positively influences networking capabilities, and ICT use for communications positively influences both adaptive and innovation capabilities. Consequently, the results suggest that the different components of ICT capabilities facilitate the development of the different organizational capabilities that together represent dynamic capabilities and thus, can contribute to a small firm’s competitive advantage. Practical implications – This study has few implications for the managers and CEO’s of small high-technology firms. First, by prioritizing ICT capabilities, small firms can benefit from the development of dynamic capabilities that will support them to meet the challenges of turbulent business environment. Second, because small firms usually lack internal resources (i.e. financial resources and competence), the study provides more specific direction on how they can strategically invest and build different components of ICT that will positively influence their adaptive, absorptive, innovative, and network capabilities. Originality/value – The study provides an alternative view of how ICT capabilities influence the performance of small firms, and outlines how such capabilities influence the development of dynamic capabilities. Therefore, the study in hand contributes to the RBV and IS literature by specifically linking the components of ICT capabilities to dynamic capabilities and its related sub-capabilities.

Openness and firm innovation performance: the moderating effect of ambidextrous knowledge search strategy

2020 ◽  
Vol 24 (2) ◽  
pp. 301-323 ◽  
Author(s):  
Chunhsien Wang ◽  
Tachia Chin ◽  
Jie-Heng Lin
Keyword(s):  
Search Strategy ◽  
High Technology ◽  
Innovation Performance ◽  
Innovation Activity ◽  
Content Type ◽  
External Knowledge ◽  
Technology Firms ◽  
Knowledge Strategy ◽  
High Technology Firms ◽  
Knowledge Search

Purpose Openness to external knowledge has recently gained popularity as a means for firms to complement and leverage internal knowledge in the pursuit of innovation outcomes. However, conflicting evidence exists regarding the role of openness in external knowledge acquisition. This paper aims to propose that openness to external knowledge has a nonlinear effect on innovation performance and that this nonlinear relationship is contingent on an ambidextrous knowledge search strategy. Design/methodology/approach Based on original large-scale survey of 246 interfirm collaborations in the high-technology industry, it is found that the impact of openness to external knowledge on innovation performance exhibits an inverted-U shape and that this relationship is affected by an ambidextrous knowledge search strategy. Findings The results indicate that an ambidextrous knowledge strategy that addresses the depth and breadth of external knowledge significantly influences a firm’s ability to derive benefits from increased openness to external knowledge. Empirically, the authors provide an original contribution to high-technology firms by exploring how and why an ambidextrous knowledge strategy can be a critical catalyst spurring innovation performance. Research limitations/implications The research scope is limited to a single industry. Further research could extend the theoretical framework to multiple industries, which may increase the likelihood of innovation theory development. Practical implications The results suggest that firms opening up the boundaries of their innovation activity to engage in external knowledge are able to leverage their in-house innovation to enhance their innovation performance. The authors advocate that in innovation management domains, greater emphasis is needed on how openness to external knowledge has more positive impacts not only on innovation performance but also on innovation implemented management. Originality/value This study is among the first to investigate the ambidextrous knowledge search effect on the external knowledge of high-technology firms. This paper contributes to the theoretical and practical literature concerning openness innovation and knowledge management by reflecting on the ambidextrous knowledge search strategy.

The impact of intellectual capital – knowledge management strategy fit on firm performance

2016 ◽  
Vol 54 (8) ◽  
pp. 1861-1885 ◽  
Author(s):  
Zhining Wang ◽  
Nianxin Wang ◽  
Jinwei Cao ◽  
Xinfeng Ye
Keyword(s):  
Knowledge Management ◽  
Firm Performance ◽  
Intellectual Capital ◽  
High Technology ◽  
Content Type ◽  
Technology Firms ◽  
Km Strategy ◽  
High Technology Firms ◽  
Strategy Fit ◽  
The Impact

Purpose The purpose of this paper is to focus on the fit between intellectual capital (IC) and knowledge management (KM) strategy and its impacts on firm performance. Design/methodology/approach Based on the fit view, the authors posit that firms can enhance performance by aligning the structure of their IC with KM strategy, as reducing the extent to which their actual IC profile deviate from the “ideal” profile when implementing certain type of KM strategy. Using survey data collected from 328 high technology firms in China, the authors tested the research model. Findings The more fit a firm’s IC is to its KM strategic type, the better operational and financial performance it can achieve. Research limitations/implications The sample of high technology firms in China might limit the generalization of the findings. Nonetheless, this study is based on and extends prior research, which provides a deepened understanding of the role of IC-KM strategy fit in organizational settings. Practical implications The paper suggests that firms should adjust their IC according to KM strategy they employ. According to the findings, managers can selectively develop IC to achieve performance goals under certain type of KM strategy. Originality/value As one of the first studies to investigate the relationship among IC, KM strategy and firm performance in a holistic way, it indicates that the IC-KM strategy fit can be a novel explanation for performance variances through the alignment of knowledge-based capability and strategy.

scholarly journals The Day Ahead: IPO Today, Acquired Tomorrow?

2018 ◽  
Vol 6 (2) ◽  
pp. 184
Author(s):  
Qian W. Mao ◽  
Mingshan Zhang ◽  
Lin Zou
Keyword(s):  
Financial Markets ◽  
Transaction Costs ◽  
High Technology ◽  
Investment Banks ◽  
Public Firms ◽  
Technology Firms ◽  
New Public ◽  
Ex Ante ◽  
High Technology Firms

<p><em>We study the double exit phenomenon—new IPO firms get acquired quickly in the M</em><em> </em><em>&amp;</em><em> </em><em>A market. In this paper, we attempt to discern the distinct characteristics of new public firms that made them acquired soon after their IPOs. Specifically we find that double exit firms are those backed by venture capital. Double exit firms generally have prestigious investment banks underwrite their IPOs. High technology firms are more likely to be taken over soon after their IPOs. Also, double exit firms have higher level of intangible assets. We suggest that IPO may play an important role in firms’ following acquisition incidence. First, IPO helps to reduce ex ante transaction costs between firms and financial markets, such as raising external capitals. Second, IPOs wink signals concerning the quality of the firm.</em><em> </em></p>

scholarly journals The effects of entrepreneurial orientation and commitment to objectives on performance

2011 ◽  
Vol 14 (2) ◽  
pp. 9-17 ◽  
Author(s):  
Mark Simon ◽  
Chanel Stachel ◽  
Jeffrey G. Covin
Keyword(s):  
Survey Data ◽  
Entrepreneurial Orientation ◽  
High Technology ◽  
Sales Growth ◽  
Technology Firms ◽  
High Technology Firms ◽  
And Performance ◽  
The Relationship

The relationship between entrepreneurial orientation (EO) and performance is often moderated by different factors. Specifically, scholars have called for research examining whether commitment to long-term objectives improves EOʼs effectiveness, believing that commitment may help firms overcome obstacles associated with EO. In response, we collected survey data from executives in 126 small, high-technology firms, and found that EO and commitment to objectives enhanced sales growth. In addition, the study determined that commitment to objectives was associated with greater increased sales growth of companies high in EO, as compared to those low in EO.

How environmental turbulence influences firms’ entrepreneurial orientation: the moderating role of network relationships and organizational inertia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming-Chao Wang ◽  
Pei-Chen Chen ◽  
Shih-Chieh Fang
Keyword(s):  
Entrepreneurial Orientation ◽  
High Technology ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Content Type ◽  
Technology Firms ◽  
Organizational Inertia ◽  
High Technology Firms ◽  
The Relationship

Purpose Environmental turbulence represents a double-edged sword, simultaneously fueling and hindering a firm’s entrepreneurial orientation (EO). Drawing on the theories of EO and network relationships, this study aims to develop and test a conceptual model that provides a nuanced account of the relationship between environmental turbulence and firm EO. Design/methodology/approach Data for this study were collected using a survey of high-technology firms in Hsinchu Science Park (HSP) in Taiwan. Questionnaires were mailed to 297 high-technology firms in the semiconductor, photoelectric and communication industries within HSP. Completed questionnaires were received from 94 firms, which included responses from 94 research and development managers and 462 employees. Findings The results reveal that the degree of environmental turbulence exhibits an inverted U-shaped relationship with a firm’s EO. Moreover, this relationship is positively moderated by network relationships between firms, but negatively moderated by organizational inertia. Originality/value The empirical and conceptual findings have important implications for understanding EO, because the findings explain causal relationships that transform a firm’s interactive and inner control capabilities into firm-level results.

scholarly journals Dynamic and static pricing in open-book accounting

2017 ◽  
Vol 14 (1) ◽  
pp. 21-37 ◽  
Author(s):  
Daniel Ellström ◽  
Martin Hoshi Larsson
Keyword(s):  
Empirical Evidence ◽  
Design Methodology ◽  
Open Book ◽  
Supplier Relationships ◽  
Content Type ◽  
Static Pricing ◽  
The Uk ◽  
Supplier Relationship

Purpose The purpose of this paper is to understand differences between open-book accounting (OBA) using static prices and OBA using dynamic prices. The authors identify how these differences influence various aspects of customer–supplier relationships. Design/methodology/approach This paper is based on a case study involving a builders’ merchant and a wood manufacturer in the UK. The builders’ merchant under discussion has recently outsourced part of its production to the aforementioned wood manufacturer by using OBA with dynamic prices. For this case study, the authors have conducted interviews with multiple people from both parties in the agreement. Additional illustrative cases are provided through a study of other qualitative papers on OBA. Findings The authors find evidence supporting that, when dynamic prices are used in OBA, risk (unpredictability) is shifted from the supplier to the customer. Also, the customer frequently focuses on the supplier’s costs, both parties often aim for a long-term relationship and the customer becomes more dependent on the supplier, causing high interdependence. Furthermore, empirical evidence suggests that the customer finds price less important, and the reallocation of activities between the customer and supplier is easier in OBA setups in which dynamic prices are used. Originality/value This paper provides the first study of how differences between dynamic and static prices in OBA influence the customer–supplier relationship. This paper adds to the developing literature on OBA, in particular, as well as to literature on pricing, in general.

Embeddedness, Milieu, and Innovation among High-Technology Firms: A Richardson, Texas, Case Study

10.1068/a3279 ◽  
2000 ◽  
Vol 32 (5) ◽  
pp. 891-908 ◽  
Author(s):  
Donald Lyons
Keyword(s):  
High Technology ◽  
Fort Worth ◽  
Industrial District ◽  
Technology Firms ◽  
Innovative Firms ◽  
High Technology Firms ◽  
Small Set ◽  
The Relationship

The author seeks to contribute to the debate on embeddedness, milieu, and innovation in industrial districts through a case study of high-technology firms in Richardson, an inner-ring suburban city of the Dallas–Fort Worth Metropolitan area. Richardson is important because it can be clearly defined as an industrial district, with over 600 high-technology firms and 70 000 employees. The results suggest that the district is robust and highly innovative with considerable capacity for self-sustaining growth. The firms are well integrated, locally and nationally. Despite extensive formal connections, firms' relationships are not very embedded locally. The link between embeddedness and innovation is subtle at best, and is confined to a small set of the most highly innovative firms. Similarly, evidence of a well-established industrial milieu was not forthcoming, although it may be emerging. The relationship between milieu and innovation was vague and was confined to the most innovative firms. The long-term viability of the district is closely tied to the economic health of the metropolitan economy, suggesting that development strategies focused on the district per se are likely to meet with limited success.

Resource scavenging

2014 ◽  
Vol 31 (3) ◽  
pp. 237-258 ◽  
Author(s):  
Lisa Jane Hewerdine ◽  
Maria Rumyantseva ◽  
Catherine Welch
Keyword(s):  
Design Methodology ◽  
High Technology ◽  
Decision Makers ◽  
High Tech ◽  
Content Type ◽  
Technology Firms ◽  
Traditional Market ◽  
High Technology Firms ◽  
Multiple Case

Purpose – There has been growing interest in studying the internationalisation of small and medium-sized high-technology firms. This literature tends to equate “internationalisation” with the “internationalisation of sales”. Yet sales are not the only international activity of high-tech firms. High-tech firms need resources and not just markets. The purpose of this paper is to contribute to an understanding of this resource dimension of the international behaviour of high-tech firms. Design/methodology/approach – The empirical basis for the study lies in a multiple case study of six high-tech small and medium-sized enterprises (SMEs). The authors selected two firms from each of three high-tech industries: biotechnology (specifically drug development), renewable energy and ICT. The key decision makers in each firms were then interviewed in depth. Findings – The authors show that for the case firms in the study, internationalisation can take the form of searching, prospecting or “scavenging” for resources. “Resource-seeking” behaviour occurs because the SMEs do not own, control or have access to sufficient resources to bring their technology to market on their own. The pattern of internationalisation that results from resource scavenging is different to that of traditional “market-seeking” internationalisation. Originality/value – This paper provides evidence of how the resource-acquisition behaviour of high-tech SMEs can be an important element of their internationalisation. Yet existing literature has focused almost exclusively on the market-seeking internationalisation of these firms.

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