Europe offers a third way in the technological transformation

The digital world is branching in two directions: techno-authoritarianism – as Chinese technology firms increase their presence in Europe; and a network of private US corporations deploying a business model that is also based on total surveillance. This slow-motion splintering of the internet has accelerated during the pandemic. From its position of vulnerability, the EU is emerging as a third way in the technological transformation, as it pledges to develop systemic rules for global digital governance. Brussels believes that this process of digital self-determination is essential to protect its model and the ethical principles of technological development.

Towards a Better Understanding of High-Growth Technology Firms

<p>High-growth has long been of interest to management academics, as they seek to understand how uncharacteristically high periods of revenue or employment growth occur, and the effects they have on firms, and the wider economy. However, despite the ongoing interest in the field, there have not been conclusive studies that are able to piece together all of the factors that may play a role in the occurrence of high-growth, and therefore there is still relatively little understanding of how and when high-growth occurs, and what control firms may have over such growth. This mixed-methodology research uses both quantitative analysis of high-growth patterns, and qualitative interviews with relevant firms to explore the factors commonly associated with high-growth. This allows for a better understanding of how high-growth may occur. The findings indicate that high-growth is typically the product of interactions between a range of factors. The most influential factor on high-growth appears to be the competence, expertise, and experience of those managing the firm, either in a directorial or managerial capacity. The findings also indicate that, while high-growth may not be entirely predictable, there are commonalities between the high-growth patterns that technology firms experience, such as the receiving of patents, or even inclusion in the TIN100 database. Overall, this research found that there appears to be much greater diversity in high-growth than previous literature tends to suggest. The research concludes with practical implications of these findings for firms and managers of these findings, as well as suggesting directions for future research in the field.</p>

Towards a Better Understanding of High-Growth Technology Firms

<p>High-growth has long been of interest to management academics, as they seek to understand how uncharacteristically high periods of revenue or employment growth occur, and the effects they have on firms, and the wider economy. However, despite the ongoing interest in the field, there have not been conclusive studies that are able to piece together all of the factors that may play a role in the occurrence of high-growth, and therefore there is still relatively little understanding of how and when high-growth occurs, and what control firms may have over such growth. This mixed-methodology research uses both quantitative analysis of high-growth patterns, and qualitative interviews with relevant firms to explore the factors commonly associated with high-growth. This allows for a better understanding of how high-growth may occur. The findings indicate that high-growth is typically the product of interactions between a range of factors. The most influential factor on high-growth appears to be the competence, expertise, and experience of those managing the firm, either in a directorial or managerial capacity. The findings also indicate that, while high-growth may not be entirely predictable, there are commonalities between the high-growth patterns that technology firms experience, such as the receiving of patents, or even inclusion in the TIN100 database. Overall, this research found that there appears to be much greater diversity in high-growth than previous literature tends to suggest. The research concludes with practical implications of these findings for firms and managers of these findings, as well as suggesting directions for future research in the field.</p>

DIGITAL BANKING AND E-COMMERCEIN THE CONTEXT OF DIGITALIZATION OF BUSINESS MANAGEMENT

The article considers the growing trends and specifics of digitalization of the banking sector. The main directions of digital transformation and the emergence of new financial market players due to the institutionalization/symbiosis of traditional banks with technology firms are studied. It is noted that this process can have far-reaching and ambiguous consequences and threats, such as moving away from the model of perfect competition and transition to platform-based competition, monopolizing markets by displacing some firms and creating favorable conditions for others, financial and reputational risks for banking structures, which provide payment cards, increase advertising prices, etc. The identified problems of traditional (classical) banks — sluggishness, impossibility of prompt adjustment of strategies, the use of outdated development tools, in particular, the closure of branches and the use of outdated technologies, loss of control over the payment system;the thesis is substantiated according to which the mechanisms of their functioning and management need cardinal corrections and innovations, first of all in approaches to interaction with clients and realization of e-business. Outlined strategies for the operation of new digital banks — the introduction of digital operations with a focus on efficiency, accessibility, transparency and consumer protection, increasing competition with traditional banks with the acquisition of customers of the latter.The consequences and prospects of the arrival of high-tech companies Apple and Google in the banking market are analyzed. Specific examples show the reasons for the bankruptcy of the previously prosperous companies Kodak (USA), Blockbuster (USA). The authors argue that digital banking is gaining a global character and the effective operation of national financial structures requires taking into account the threats and lessons of the onset of high technologies in practice. The features of the development of a digital bank on the European continent and in the United States have been clarified. Keywords: digital banking, digitalization, traditional banks, fintech, cashback, blockchain, smart contracts, cloud technologies. JEL Classification G21, O33, F65 Formulas: 0; fig.: 0; tabl: 0; bibl.: 29.

Business Model Adaptation of Small and Medium-Sized Information Technology Firms

Small and medium-sized information technology firms operating in high-velocity business environments have to continuously adapt their business models. Prior research on business model adaptation, however, remains under-developed. In this study, we address the gap by drawing on the dynamic capability perspective. Based on the qualitative data collected from 35 interviews with ten companies in China, we develop a processual model and unveil how these companies employ dynamic capabilities (i.e. sensing, seizing and transforming), complemented by ordinary capabilities, to enact, manage and implement business model adaptation. This study provides novel insights into a theoretical issue of business model adaptation for information technology firms and managerial implications while using an adaptive business model innovation strategy.

Business Model Adaptation of Small and Medium-Sized Information Technology Firms

Small and medium-sized information technology firms operating in high-velocity business environments have to continuously adapt their business models. Prior research on business model adaptation, however, remains under-developed. In this study, we address the gap by drawing on the dynamic capability perspective. Based on the qualitative data collected from 35 interviews with ten companies in China, we develop a processual model and unveil how these companies employ dynamic capabilities (i.e. sensing, seizing and transforming), complemented by ordinary capabilities, to enact, manage and implement business model adaptation. This study provides novel insights into a theoretical issue of business model adaptation for information technology firms and managerial implications while using an adaptive business model innovation strategy.

Scaling Technology Ventures in Africa: New Opportunities for Research

Research on new venture creation in Africa is growing rapidly. This increasing interest reflects both the potential for entrepreneurship to contribute to the economic and social development of Africa, as well as the potential for this research to provide new insights that challenge and extend theories developed primarily from studies of North American and European new ventures. In this editorial essay, we argue for an expansion of this important research stream to include a focus on how technology ventures scale in Africa. We identify seven topics that offer interesting opportunities for research on scaling in Africa: (1) the effect of venture location on scaling; (2) the effect of founding team diversity on scaling; (3) the effect of entrepreneurial strategies on scaling; (4) the effect of nascent ecosystems on scaling; (5) the effect of the institutional environment on scaling; (6) the effect of nascent financial markets on scaling; and (7) the societal effects of scaling. We discuss each of these topics, their potential to contribute to the existing literature, and provide examples of African technology firms that have scaled to illustrate each topic. We conclude with a discussion of how African social, political, and regulatory change, combined with rapidly developing entrepreneurial ecosystems, are creating a context where the successful scaling of technology ventures is becoming increasingly common, and research is therefore increasingly valuable.

Global Supply Chains as Drivers of Innovation in China

China’s manufacturing and innovation capabilities are directly related. Availability of complementary resources in rapid prototyping, test production, and components and the ability to deploy innovations at scale increasingly lead high-technology firms, including startups, to consider China as a developmental base across sectors from big data to cloud computing, smart grid, renewable energy, and alternative energy vehicles. Entry into global value chains (GVCs) has led to vast transfers of knowledge, creating human resource capabilities that continuously facilitate the upgrading of Chinese firms. China’s most advanced industries were all those characterized by active participation in GVCs. China’s entry into GVCs has differed significantly from the experiences of other emerging economies, arguably affording China greater innovation benefits. This is directly related to China’s institutional environment of “structured uncertainty.” Structured uncertainty shaped the pattern and impact of entry into GVCs, dictating which regions entered GVCs, when, and how, with long-term knowledge transfer effects.

Difficulties of Global R&D Projects: A Bridge Manager’s Perspective

In recent years, technology firms have been facing a highly competitive environment on a global scale. The firms are accelerating to establish R&D sites abroad in order to access global knowledge resources. In this context, global R&D projects have become more complex and R&D bridge managers (BMs), who facilitate global research collaboration, play a pivotal role here. This study aims to investigate the difficulties that BMs are facing and to explore the roles of BMs in global R&D projects. We interviewed nine BMs who have facilitated global R&D projects and propose a model depicting four common and critical difficulties present in facilitating research collaboration between teams in the home country and foreign R&D teams. The unique contribution of this paper focuses on the individual managerial level, while most previous studies on global R&D mainly focused on an organizational level.

THE SEER AND THE SEEN: A SURVEY OF TOPICS FOUND IN PALANTIR PATENTS

Palantir is one of the most secretive technology firms in the US. The company supplies information technology (IT) solutions to governments, nonprofits, and corporations, focusing on data integration and surveillance services. To investigate Palantir’s opaque technology practices, this article presents findings from a topic modeling of Palantir patents (n=155) filed from 2006-2019 in the US, Germany, Australia, UK, and EU. This approach follows recent literature that uses patents as data for researching opaque IT firms. We begin by summarizing scholarship on Palantir and IT for policing, intelligence, and security. Our findings show that Palantir’s IT produces infrastructural layers of meaning/context via metadata that are wrapped ‘on top’ of previously held legacy data. We thus use the concept of infrastructuring to understand Palantir’s practices, where information standards like metadata are theorized as phenomena for structuring social worlds. The paper ends by offering action items for future research into opaque IT firms.