Resource Reconfiguration During Technological Change

A central strategic imperative for surviving technological change requires firms to attenuate the inertia and rigidity imposed by its legacy technology orientation (defined as the relative emphasis placed on technological knowledge and products aligned to an incumbent technology) and successfully transition to a new technology. We theorize that resource reconfiguration through corporate scope decisions—alliances, acquisitions, divestitures, and different postacquisition integration approaches—enables firms to achieve the twin requirements of attenuation and transition. Initially, a legacy technology orientation exerts inertia due to legacy reinforcement—decreasing the likelihood of firms making new technology acquisitions and legacy technology divestitures. New technology alliances mitigate this inertia via legacy attenuation—increasing the likelihood of acquisitions and legacy divestitures. Finally, when firms make new technology acquisitions, we theorize that acquirers choosing partial acquisition integration approaches (partial integration and partial autonomy) are more likely to achieve a successful transition to the new technology-legacy transition and, thus, more likely to survive technological change relative to firms choosing full integration or full autonomy. Using a sample of firms from the digital camera product market over 1991–2006, we found strong empirical support for our predictions. We contribute to research on technological change by demonstrating that firms may overcome the inertia of a legacy technology orientation and adapt to an emerging new technology by employing corporate scope decisions and postacquisition integration as resource reconfiguration mechanisms. Specifically, we advance the novel finding that postacquisition integration is an important survival-enhancing mechanism that facilitates adaptation to technological change.

STRATEGIC ALLIANCES AND THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI CITY COUNTY, KENYA

Purpose: In the Kenyan banking industry, the banks have adopted several strategies aimed at improving their competitive position in a highly competitive market. In reference to the aforementioned the general objective, this study specifically sought to examine how strategic alliances impact financial returns among Nairobi-based commercial banks. The current study specifically examined how brand marketing alliances, agency alliances, innovation alliances and technology alliances affect bank performance. Methodology: This study was based on Transactional Cost, Control Power and Resource Based View theories. The study utilized descriptive research design, that targeted all 39 fully operational commercial banks in Nairobi. The unit of observation was the operations/ relationship manager and the finance manager across each commercial bank. The sample population consisted of 78 respondents. Census sampling was adopted to enhance representation of the respondents. Primary and secondary sources of data provided data which was then be analyzed in SPSS 23 using both descriptive and inferential statistics. The study employed means, standard deviation, correlation and regression methods of analysis, with results being presented using figures, tables and other infographics. Results: An 85% response rate was received. The correlation results showed a positive and significant effect of brand marketing, agency, innovation and technological alliances on banks’ profitability. The regression findings revealed that jointly brand marketing, agency, innovation and technological alliances predict 38.3% of shifts in profits generated by the banks. The study concluded that brand marketing alliances, agency alliances and technology alliances had a significant effect on profitability, while innovation alliances had an insignificant effect. Unique contribution to theory, practice and policy: The study recommends that banks should constantly review their agency banking to ensure they are aligned to their financial goals. Lastly, commercial banks should strive to spur their research and development which can help drive their technological innovations.

RD internationalization, domestic technology alliance, and innovation in emerging market

Although R&D internationalization plays an important role in enterprises’ globalization, few studies explore the mechanism of R&D internationalization and emerging market companies’ innovation, or the relationship between R&D internationalization, domestic technology alliances and absorptive capacity. How does the R&D internationalization of emerging market enterprises affect the innovation of those enterprises? Under fierce market competition, do absorption capacity and domestic technology alliances have a significant impact on enterprise innovation? From the perspective of the knowledge-based view, this paper studies 185 enterprises undergoing R&D internationalization in China from 2012 to 2017, using high-dimensional Poisson fixed effects model, we use instrumental (HDFE IV) estimation to explain the impact of R&D internationalization on the innovation of the parent company and the mechanism behind it. The study finds that R&D internationalization positively promotes the parent company’s innovation, and domestic technology alliances and absorptive capacity play a partial mediator role in R&D internationalization. In the face of fierce market competition, domestic technical alliances play a significant role in promoting enterprise innovation, while absorptive capacity plays a negative role in promoting enterprise innovation with the moderating effect of market competition.