Corporate entrepreneurship programmes as mechanisms to accelerate product innovations

This paper explores how firms engage in corporate entrepreneurship through programmes, and what kind of outcomes they achieve in terms of innovations. Insights are drawn from four cases of organisations that engaged in corporate entrepreneurial activities. The paper identifies two dimensions of corporate entrepreneurship programmes as idea themes, indicating whether programmes are designed with specific themes in mind, and idea ownership, indicating whether there is a dedicated team to focus on new ideas, or not. These dimensions are under the direct control of management. Based on these two dimensions, four models of corporate entrepreneurial activities are presented linking each of these models to one of the four cases of product innovations (product line extensions, product improvements, new products, start-up businesses). By drawing on the insights of the effectuation and causation logics, the paper provides a fresh perspective of corporate entrepreneurship programmes in an emerging, non-Western cultural setup and the product innovation context. This is primarily done by introducing a 2 × 2 matrix regarding corporate entrepreneurship idea themes and idea ownership in an emerging context.

Bunching with the Stars: How Firms Respond to Environmental Certification

Voluntary environmental certification programs have been a popular tool used by governments, industry groups, and nonprofit organizations alike. A central question in the design of such programs is who should pay for them. In a context where firms respond strategically to a certification, the answer to this question is a priori ambiguous and, ultimately, empirical. This paper provides important insights on this question using ENERGY STAR, a voluntary certification program for energy-efficient products, as a case study. I show that firms are highly strategic with respect to this certification and extract consumer surplus associated with certified products via three mechanisms. They offer products that bunch at the certification requirement, differentiate certified products in the energy and nonenergy dimensions, and charge a price premium on certified products. I use these findings to motivate a structural econometric model with firms’ strategic behaviors with respect to product line and pricing decisions and to investigate the incidence of a certification licensing fee to fund the certification program. This paper was accepted by Juanjuan Zhang, marketing.

Development of a Combined Bulging-Piercing Technique to Reduce Forming Load for a Long Semi-Hollow Stepped Part

This paper aims to develop a new forming technique to manufacture a long semi-hollow stepped part. Traditionally, hot backward extrusion is used. This technique is not suitable, because it requires a very high forming load acting on the die and punch especially at the contact between punch and workpiece. As a result, the service life of the punch is very low. Therefore, a new technique to overcome this problem is needed. A combined bulging-piercing technique was proposed and developed in this research. The main concept of this technique is to bulge the part by upsetting the workpiece between the punch and the counter-punch to generate high frictional contact pressure which will help to restrain the material sliding down to the die cavity during the piercing step. In other words, this technique utilizes frictional force at the die-workpiece interface to reduce the forming load of the punch. Finite element modeling was employed to investigate and determine the suitable level of the bulging which can reduce the forming load without generating any significantly high force to the counter-punch. Only experiments with the minimum forming load were selected and implemented to validate this concept, because other conditions with high load will risk to damage the punch and the machine press of the product line. The results show that this technique can reduce the forming load by almost 40%, and also control a good concentricity of the part and reduce the wall thickness variation.

Impedance Spectroscopy Sensing Material Properties for Self-Tuning Ratio Control in Pharmaceutical Industry

Following the paradigm shift in the pharmaceutical industry from batch to continuous production, additional instrumentation and revision of control strategies to optimize material flow throughout the downstream processes are required. Tableting manufacturing is one of the most productive in terms of turnover and investment into new sensor technologies is an important decision-making step. This paper proposes a continuous solution to detect changes in material properties, and a control algorithm to aid in minimizing risk at the end-product line. Some of the sub-processes involved in tableting manufacturing perform changes in powder and liquid mixtures, granulation, density, therefore changing flow conditions of the raw material. Using impedance spectroscopy in a continuous sensing and monitoring context, it is possible to perform online identification of generalized (fractional) order parametric models where the coefficients are correlated to changes in material properties. The model parameters are then included in a self-tuning control gain used in ratio control as part of the local process control loop. The solution proposed here is easy to implement and poses a significant added value to the current state of art in pharmaceutical manufacturing technologies.

A Model of Product Line Marketing

Firms offer a variety of products to meet different customer needs. In many horizontally differentiated markets, prices are stable, and firms make infrequent adjustments to their product lines. Although prior research focused on product line design, we investigate how firms should allocate their marketing effort when their product lines are fixed. We propose a simple model to analyze product line marketing. Our model exhibits a flagship product effect in which the firm’s optimal marketing effort is concentrated, provided that the ratio between consumer tastes dispersion and the convexity of the cost of marketing effort is below a threshold. The flagship product is selected according to a marketing effort allocation index that measures the trade-off between a product’s markup and its potential market share. This result is robust with or without competition and whether prices are exogenous or endogenous. Firms often experience shocks to their marketing cost because of technological improvement or externalities. If a monopolist’s cost of marketing effort declines, she should place more emphasis on a low-utility, high-markup product. Conversely, if the cost increases, the monopolist may find it beneficial to focus her marketing effort on a high-utility, low-markup product. When multiproduct firms compete against each other, we show that if the opponent’s cost of marketing effort decreases, there can be a spillover effect, in which the firm benefits from the opponent’s cost reduction, thereby leading to a win-win situation. This paper was accepted by Dmitri Kuksov, marketing.

Supply chain strategy in the luxury fashion industry: impacts on performance indicators

PurposeThe purpose of this paper was to investigate what types of supply chain strategies (SCS) are implemented within luxury fashion companies, according to the drivers that regulate competitiveness in this sector (brand positioning, distribution channel, type and line of product). Moreover, the objective was to define which key performance indicators (KPIs) should be measured according to the chosen strategy, and finally to evaluate the alignment of luxury fashion companies with the proposed indicators.Design/methodology/approachThe literature review was the first step performed. Thereafter, a case study was conducted and the sample, composed of six companies, was selected, a questionnaire was then developed to guide the interviews, after which the data were collected. From the data, a primary case analysis was conducted, from which cross-case patterns were also researched.FindingsFrom the results obtained, it was possible to state that companies involved in the case study adopted different SCS within the same company according to the drivers that regulate the sector competitiveness. As a result, the product line was shown to be the only driver that affected both the alignment between the expected and implemented SCS, respectively, and the alignment with the selected KPIs.Originality/valueThe paper provides valuable insights to companies that are trying to align SCS and KPIs. The close link between these aspects had not yet been explored previously. In particular, there were no indications about the KPIs that have to be measured for a specific SCS.