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volume 43, issue 6, june 2022
1. title: integration and appropriability: a study of process and product components within a firm's innovation portfolio
authors: puay khoon toh, gautam ahuja
abstract: we examine how and when integration of process and product components within a firm's innovation portfolio increases firm returns. strategy literature argues that integration enhances the firm's appropriation of returns from innovations. we evaluate this argument recognizing that integration is but one of multiple appropriation tools; firms can also use other (e.g., scale-based) mechanisms to enhance appropriation. using new measures of integration based on textual coding of patent claims, we demonstrate that while higher process�product integration improves firm performance, this effect diminishes when the firm has greater production capacity or access to markets. further, high integration lowers innovative productivity. together, these demonstrations explain why firms, even with awareness of the benefits of integration between components, may not all choose high-integration strategies.
2. title: building greener motorhomes: how dual-purpose technical and relational capabilities affect component and full product innovation
authors: anne parmigiani, jennifer irwin, brooke lahneman
abstract: this study investigates how dual-purpose technical and relational capabilities influence two types of product innovation: component and full product. we consider product modification, manufacturing, supplier relationship, and customer relationship capabilities, analyzing their interactions and interrelationships through an inductive study set in the motorhome industry. we find patterns between capabilities and types of product innovations and then use a descriptive qualitative comparative analysis to refine and explore the nuances of these relationships, uncovering combinations of capabilities that enable and inhibit different types of product innovation. we thus provide empirical evidence for how dual-purpose capabilities are deployed dynamically, in that skills can be used in both the normal course of business and to create something new.
3. title: the effect of coordination requirements on sourcing decisions: evidence from patent prosecution services
authors: george chondrakis, eduardo melero, mari sako
abstract: although the link between coordination requirements and vertical integration is theoretically well established, empirical tests of this relationship are hard to implement due to the simultaneous determination of both variables. in this study, we take advantage of regulatory changes in patent prosecution in the united states to provide plausibly causal evidence linking increases in coordination requirements with insourcing. moreover, we examine the role of plural sourcing, that is, simultaneously making and buying, when responding to changes in coordination requirements. we find that the move toward insourcing is more pronounced for plural-sourcing firms as compared to firms relying on outsourcing. these results are consistent with the view that plural sourcing provides firms with flexibility to switch between sourcing modes when facing changing coordination requirements.
4. title: strategy as language and communication: theoretical and methodological advances and avenues for the future in strategy process and practice research
authors: eero vaara, laura fritsch
abstract: the purpose of this introduction to the sms collection is to take stock of advances in language-based analyses of strategic processes and practices with an eye on the theoretical and methodological insights and opportunities. after a review of the articles included, we develop a framework that identifies four perspectives ranging from the more micro to the macro: (a) microlevel conceptual basis of strategy discourse, (b) use of language in strategy work processes in their socio-material and multimodal contexts, (c) use of language and especially narratives in long-term processes of strategic change, and (d) the rhetorical and discursive reconstruction of organizational strategies in their historical contexts. we then move on to offer a set of research opportunities and questions to form an agenda for future research.
5. title: on top of the game? the double-edged sword of incorporating social features into freemium products
authors: joost rietveld, joe n. ploog
abstract: freemium products require widespread diffusion for their success. one way to do this is by incorporating social features (e.g., multiplayer functionality, virtual collaboration, ridesharing), which can generate network effects and result in a product becoming a superstar. however, social features can be a double-edged sword: when demand potential for freemium products is large, social features can significantly boost a product's appeal resulting in more adoption, more usage, and more in-app purchases; but when demand potential is constrained, network effects might fall short and users may feel they are missing out on key aspects of the product. we test this dynamic on a sample of 9,700 digital games on steam. findings contribute to our understanding of network effects, freemium strategies, and superstar products in platform markets.
6. title: to be in vogue: how mere proximity to high-status neighbors affects aspirational pricing in the u.s. fashion industry
authors: heeyon kim, bo kyung kim
abstract: this article examines how proximity to high-status neighbors enables lower-status firms to engage in aspirational pricing. while prior studies have focused on associations based on bilateral agreements, we argue that mere spatial proximity to other high-status firms creates perceived associations, which positively affects the focal firm's aspirational pricing. furthermore, middle-status firms are most likely to engage in aspirational pricing because they are sufficiently similar to high-status neighbors to expect assimilation, not contrast, effects. our multi-method approach based on panel data from the u.s. vogue magazine and an experiment provides converging evidence for our arguments. being somewhat randomly featured near the advertisements of prominent high-status firms in vogue positively impacts the subsequent average listed price of the focal firm's products, especially for middle-status firms.
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