Nee Kang Opper
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1) The document presents a theory of how marketization and the transition from a command economy to a market economy drives innovation in firms. It argues that markets provide incentives, opportunities, and competition that encourage firms to innovate or risk failure. 2) The theory proposes that as markets mature and political actors lose power over economic resources, firms will innovate more through research and development and networks with other organizations. 3) Empirical evidence from Chinese firms supports the theory, finding higher innovation outputs from firms with more R&D activities and networks, and lower innovation in state-owned firms or when political control remains.
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Senior Seminar in Business AdministrationBUS499 Strategic Ma.docx
Senior Seminar in Business Administration
BUS499
Strategic Management and Strategic Competitiveness
Welcome to the Government Contract Law.
In this lesson we will discuss Strategic Management and Strategic Competitiveness.
Please go to the next slide.
Objectives
Upon completion of this lesson, you will be able to:
Identify the vision, mission, and stakeholders of a firm
When you complete this lesson you will be able to:
Identify the vision, mission, and stakeholders of a firm.
Please go to the next slide.
Supporting Topics
The Competitive Landscape
The I/O Model of Above Average-Returns
The Resource-Based Model of Above Average-Returns
Vision and Mission
Stakeholders
Strategic Leaders
The Strategic Management Process
In order to achieve this objective, the following supporting topics will be covered:
The competitive landscape;
The I/O model of above average-returns;
The resource-based model of above average-returns;
Vision and mission;
Stakeholders;
Strategic leaders; and
The strategic management process.
Please go to the next slide.
The Competitive Landscape
Competition is Changing
Money is scare
Markets are becoming volatile
Firms effectively using the strategic management process
Hypercompetition
Challenge competitors
Competition between many of the world’s industries is changing. Many of these industries are competing due to money being scare and markets becoming volatile. Boundaries that once seemed drawn between industries are becoming blurred. An example of this challenge would be the advances in interactive computer networks and telecommunications. These advancements have entered into the realm of the entertainment industry. We also see that many partnerships in the entertainment industry further blur the boundaries of the industry. In order to be successful and maintain a competitive edge, managers must adopt new strategies to stay current with the evolving conditions.
Many firms effectively use the strategic management process to help reduce the likelihood of failure with various challenges they may encounter.
Hypercompetition is a term often used to illustrate the competitive landscape. The conditions of hypercompetition assume that market stability is replaced by notions of inherent instability and change.
Hypercompetition results from the dynamics of strategic maneuvering among global and innovative combatants. It is a condition of rapidly escalating competition based on the following:
Price quality positioning;
Competition to create new know-how and establish first mover advantage; and
Competition to protect or invade established product or geographic markets.
In a hypercompetitive market, firms will want to challenge their competitors with the end goal of improving their competitive position and performance. The emergence of a global economy and technology along with specifically rapid technological changes are the two primary elements of hypercompetitive environments and help create to.
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2) Competition between firms that are neck-and-neck in technology can increase incentives for each firm to gain a technological advantage (neck-and-neck effect).
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2) Unemployment is positively related to innovation, supporting the hypothesis that higher unemployment increases access to skilled labor.
3) Interest rates are negatively related to innovation, providing evidence that higher rates constrain financing for innovation activities.
4) The most innovative industries showed less sensitivity to GDP dynamics, supporting the theory of strategic innovation processes in these sectors.
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Strategic Management and Strategic Competitiveness
Welcome to the Government Contract Law.
In this lesson we will discuss Strategic Management and Strategic Competitiveness.
Please go to the next slide.
Objectives
Upon completion of this lesson, you will be able to:
Identify the vision, mission, and stakeholders of a firm
When you complete this lesson you will be able to:
Identify the vision, mission, and stakeholders of a firm.
Please go to the next slide.
Supporting Topics
The Competitive Landscape
The I/O Model of Above Average-Returns
The Resource-Based Model of Above Average-Returns
Vision and Mission
Stakeholders
Strategic Leaders
The Strategic Management Process
In order to achieve this objective, the following supporting topics will be covered:
The competitive landscape;
The I/O model of above average-returns;
The resource-based model of above average-returns;
Vision and mission;
Stakeholders;
Strategic leaders; and
The strategic management process.
Please go to the next slide.
The Competitive Landscape
Competition is Changing
Money is scare
Markets are becoming volatile
Firms effectively using the strategic management process
Hypercompetition
Challenge competitors
Competition between many of the world’s industries is changing. Many of these industries are competing due to money being scare and markets becoming volatile. Boundaries that once seemed drawn between industries are becoming blurred. An example of this challenge would be the advances in interactive computer networks and telecommunications. These advancements have entered into the realm of the entertainment industry. We also see that many partnerships in the entertainment industry further blur the boundaries of the industry. In order to be successful and maintain a competitive edge, managers must adopt new strategies to stay current with the evolving conditions.
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Price quality positioning;
Competition to create new know-how and establish first mover advantage; and
Competition to protect or invade established product or geographic markets.
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2) Competition between firms that are neck-and-neck in technology can increase incentives for each firm to gain a technological advantage (neck-and-neck effect).
3) Greater worker mobility between firms can increase the overall rate of innovation in an industry (mobility effect).
4) Competitive pressure has historically driven firms to improve production processes and achieve scale economies, increasing productivity over time.
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2012 Aerospace & Defense Market Survey
- Engineering, operations, and supplier collaboration are seen as having the highest potential to positively impact companies' bottom lines. Engineering in particular is cited as an area of high potential.
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This presentation was uploaded with the author’s consentMANAGERIAL ECONOMICS
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Dan Andrews
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ModelingMarketingStrategiesMKS.CollumbiaUniversitypdf
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
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Nee Kang Opper
- 1. Markets and Innovation: A Theory Victor Nee, Jeong-han Kang, and Sonja Opper Presented at The Conference on Chinese Capitalism A.D. White House, Cornell University, April 20-21, 2007
- 10. Transition to dynamic capitalism in China – some macro evidence
- 11. Transition to dynamic capitalism in China – some macro evidence
- 12. Transition to dynamic capitalism in China – some macro evidence
- 15. Results: Hypothesis 1 – on role of innovation activities + + -*** - - + +* -*** + + + - R&D to sales ratio + +*** +*** +*** +*** +*** +*** +*** +*** +* + + Con-ducts R&D + + + +* +*** +*** +** + +*** +*** +*** +*** Patents granted in pre-ceding years cl3 cl2 cl1 cl3 cl2 cl1 cl3 cl2 cl1 cl3 cl2 cl1 Quality control innovation Process innovation Product innovation Patent
- 16. Results: Hypothesis 2 – on the role of networks + +*** +** + +*** +*** + +*** +*** + + + R&D coop with RI +*** - +*** + - + + +** +** +*** +** - R&D coop with university +** +* +*** +** +** +*** +*** +*** +*** + - +* R&D coop. with firm + +** +*** + +* +*** +** +*** +*** + +* + Business asso-ciation +** +*** +* + + +** +*** - +*** + - +*** Industrial park Cl3 cl2 Cl1 cl3 cl2 cl1 cl3 cl2 cl1 cl3 Cl2 cl1 Quality Cotrol Innovation Process innovation Product innovation Patent
- 17. Hypothesis 3+4: innovation and politics +* - + +*** -** -* -** -* - -* - + <99% + - -*** - + - - -* - - - -* <100% + -*** - +*** - - + - -*** -*** +* - <50% + - - + +* - + - - - - + <25% - -** + + - + - + + - - - SOE cl3 cl2 Cl1 cl3 cl2 cl1 cl3 cl2 cl1 cl3 cl2 cl1 Quality control innovation Process innovation Product innovation patent
- 18. Summary results No No Yes (for more than 50% state share) Yes (for 1% to 99% state share) H4: Ownership-marketization hypothesis No No Yes(for more than 25% state share) Yes (for more than 25% state share) H3: Ownership hypothesis Yes Yes Yes Yes H2: Network hypothesis Yes Yes Yes Yes H1: R&D hypothesis Quality control innovation Process Innovation Product innovation Patent