* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, June 28, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Susquehanna Raises Penn Entertainment Inc. (PENN) Price Target. – Yahoo Finance

    Susquehanna Raises Price Target for Penn Entertainment Inc. (PENN)

    George Lopez is coming to Spokane – KXLY.com

    George Lopez is coming to Spokane – KXLY.com

    Netflix unveils Dallas immersive venue for fans of hit shows like ‘Squid Game,’ ‘Stranger Things’ – Houston Chronicle

    Step Inside Netflix’s New Dallas Immersive Experience Featuring Hits Like ‘Squid Game’ and ‘Stranger Things

    ‘Puttin’ on the Ritz’: Civic Players bring ‘Young Frankenstein’ to life – Yahoo

    Civic Players Deliver a Hilarious and Unforgettable Performance of ‘Young Frankenstein

    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Ostin Technology (OST): Volatility’s Warning or Contrarian Opportunity? – AInvest

    Ostin Technology (OST): Navigating Market Volatility – Red Flag or Hidden Opportunity?

    St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

    St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

    Wayve Expands Engineering Leadership to Power Next-Gen Autonomous Driving Technology – Silicon Canals

    Wayve Boosts Engineering Leadership to Accelerate Next-Gen Autonomous Driving Innovation

    Frontdoor Announces Tech Expert Dr. Bala Ganesh as Chief Technology Officer – Business Wire

    Frontdoor Appoints Tech Visionary Dr. Bala Ganesh as New Chief Technology Officer

    Defense technology giant Northrop Grumman to host interviews in Iuka to fill technician roles – supertalk.fm

    Defense technology giant Northrop Grumman to host interviews in Iuka to fill technician roles – supertalk.fm

    China’s Military Introduces Mosquito-Sized Drones: A Game-Changing Surveillance Technology – Indian Defence Review

    China Unveils Mosquito-Sized Drones: Revolutionizing Surveillance Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Susquehanna Raises Penn Entertainment Inc. (PENN) Price Target. – Yahoo Finance

    Susquehanna Raises Price Target for Penn Entertainment Inc. (PENN)

    George Lopez is coming to Spokane – KXLY.com

    George Lopez is coming to Spokane – KXLY.com

    Netflix unveils Dallas immersive venue for fans of hit shows like ‘Squid Game,’ ‘Stranger Things’ – Houston Chronicle

    Step Inside Netflix’s New Dallas Immersive Experience Featuring Hits Like ‘Squid Game’ and ‘Stranger Things

    ‘Puttin’ on the Ritz’: Civic Players bring ‘Young Frankenstein’ to life – Yahoo

    Civic Players Deliver a Hilarious and Unforgettable Performance of ‘Young Frankenstein

    ‘Wheel of Fortune’: Amputee Wins $60,000 After Breaking Incredible ‘Curse’ – Hastings Tribune

    Wheel of Fortune’ Amputee Breaks Incredible ‘Curse’ to Win $60,000!

    North Star Sports & Entertainment Network: Coming soon – KTTC News

    North Star Sports & Entertainment Network: Coming soon – KTTC News

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Ostin Technology (OST): Volatility’s Warning or Contrarian Opportunity? – AInvest

    Ostin Technology (OST): Navigating Market Volatility – Red Flag or Hidden Opportunity?

    St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

    St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

    Wayve Expands Engineering Leadership to Power Next-Gen Autonomous Driving Technology – Silicon Canals

    Wayve Boosts Engineering Leadership to Accelerate Next-Gen Autonomous Driving Innovation

    Frontdoor Announces Tech Expert Dr. Bala Ganesh as Chief Technology Officer – Business Wire

    Frontdoor Appoints Tech Visionary Dr. Bala Ganesh as New Chief Technology Officer

    Defense technology giant Northrop Grumman to host interviews in Iuka to fill technician roles – supertalk.fm

    Defense technology giant Northrop Grumman to host interviews in Iuka to fill technician roles – supertalk.fm

    China’s Military Introduces Mosquito-Sized Drones: A Game-Changing Surveillance Technology – Indian Defence Review

    China Unveils Mosquito-Sized Drones: Revolutionizing Surveillance Technology

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Science

The dangers of misaligned product co-development contracts and how they can derail innovation in high-tech firms

March 6, 2024
in Science
The dangers of misaligned product co-development contracts and how they can derail innovation in high-tech firms
Share on FacebookShare on Twitter

contract

Credit: Pixabay/CC0 Public Domain

Researchers from Mansoura University and University of Guelph published a new Journal of Marketing study that examines how misaligned contracts can erode innovation outcomes of high-tech firms. The study, titled “Collaborating to Innovate: Balancing Strategy Dividend and Transactional Efficiencies,” is authored by Nehal Elhelaly and Sourav Ray.

When a giant multinational like Unilever partners with one of its major suppliers, such as the industrial enzyme-producer Novozyme, the collaboration can fast-track innovation and improve business performance. Such a partnership between a firm and a supplier brings together knowledge, technologies, and other resources to create a product, service, or solution—and industry reports indicate that up to 85% of firms believe these collaborations are an effective means of innovation.

This broader impact of product co-development collaboration is aptly captured in the following public statement by the multinational pharmaceutical company Bristol-Myers Squibb: “As critical drivers of our strategy, external innovation and partnering have brought significant commercial success and pipeline growth. Twelve of our company’s twenty blockbuster medicines are derived from collaborations. In addition, more than sixty percent of our current development pipeline is externally sourced bringing significant external innovation to complement our internal capabilities and innovation.”

However, such collaborations also expose the firm to various transactional hazards such as knowledge spillovers and opportunism. The danger looms large when a firm fails to consider its positioning strategy and functional capabilities when crafting innovation collaboration contracts with its suppliers. This creates a barrier to a firm’s ability to generate sustained dividends from its broader marketing strategy.

Strategic decisions taken by firms are based on the presumed value generated from the implementation of the decisions and the presumed costs incurred in the process.

Elhelaly explains that, “as important as innovation co-developments are to a firm’s broader marketing strategy, managers should ask themselves an important question: Will such contracts help sustain any strategy dividend? The strategy dividend can be whittled away if there is no fit between a firm’s strategic positioning, functional capabilities, and the governance modes of co-development.”

The downsides of joint venture partnerships

Consider, for example, industry observations that Joint Venture (JV) partnerships can help firms navigate economic downturns. Economic downturns impose a need for cost efficiencies, and JVs can be useful because of presumed close coordination between the two entities.

Yet, as the study’s hypotheses and results show, this economic dividend can only be realized when firms have high technological capabilities. The researchers estimate that for firms with similar efficiency orientations, their technological capabilities are associated with an increase of 5.2% in innovation performance for JVs, but not for technology licensing contracts and joint development agreements.

On the other hand, estimates show that strong marketing capabilities in the same situation are associated with a decrease of 17.9% in innovation performance for JVs. Additionally, marketing capabilities seem to be more benign for joint development agreements in high differentiation-oriented firms. For such firms, marketing capabilities are associated with an increase of 7.8% in innovation performance for joint development agreements.

One of the study’s central themes is that the idea of fit in co-development collaborations comes with underlying notions of misalignment costs that need to be recognized. “While mapping the bases of misalignment,” says Ray, “we highlight the keystone role of the firm’s positioning strategy in innovation collaborations. Strategy frames how a firm deploys its resources and focuses its energies. So, a misalignment will naturally manifest in inefficiency, perhaps one that will emerge over time. As our empirical results bear out, misalignment between collaboration contracts, capabilities, and strategy significantly erodes innovation outcomes.”

The study offers three key takeaways:

For better innovation outcomes, firms need to select the collaboration form that motivates their partners to share know-how and expertise and facilitate efficient knowledge transfers. At the same time, firms must also pay attention to protecting their valuable knowledge and skills from opportunistic appropriation and ensure effective use of their deployed resources.
Firms need to build the “right” functional capability to yield the most benefit from innovation collaborations. For instance, a firm needs to invest in building marketing capabilities if it is driven by high differentiation and consider more arms-length arrangements such as joint development agreements with suppliers. In contrast, firms driven by efficiency considerations are better off developing their technological capabilities when considering a joint venture.
Firms must resist blindly copying the practices of other firms, regardless of the appearance of “industry best practices.” Considering the firm’s positioning strategy along with its capabilities is crucial to designing effective contracts. Thus, blanket prescriptions for one or the other types of contracts (e.g., joint ventures during downturns) may be misdirected.

More information:
Nehal Elhelaly et al, Collaborating to Innovate: Balancing Strategy Dividend and Transactional Efficiencies, Journal of Marketing (2023). DOI: 10.1177/00222429231222269

Citation:
The dangers of misaligned product co-development contracts and how they can derail innovation in high-tech firms (2024, March 6)
retrieved 6 March 2024
from https://phys.org/news/2024-03-dangers-misaligned-product-derail-high.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Phys.org – https://phys.org/news/2024-03-dangers-misaligned-product-derail-high.html

Tags: dangersmisalignedscience
Previous Post

Study find potential benefits in AI–based systems for spotting hard-to-detect space debris

Next Post

Can Texas arrest migrants entering illegally? Supreme Court to decide.

Ostin Technology (OST): Volatility’s Warning or Contrarian Opportunity? – AInvest

Ostin Technology (OST): Navigating Market Volatility – Red Flag or Hidden Opportunity?

June 27, 2025
Vote for the Blue Water Area’s top high school sports moment from the 2025 spring season – Times Herald

Cast Your Vote for the Blue Water Area’s Most Unforgettable High School Sports Moment of Spring 2025!

June 27, 2025
Opinion: American Science Is in a Nosedive – and We’re All on Board – The Austin Chronicle

Opinion: American Science Is in a Nosedive – and We’re All on Board

June 27, 2025

Food contact articles as source of micro- and nanoplastics: a systematic evidence map | npj Science of Food – Nature

June 27, 2025
Michelle Dee is featured in Pride Month issue of digital lifestyle magazine – GMA Network

Michelle Dee is featured in Pride Month issue of digital lifestyle magazine – GMA Network

June 27, 2025
These are the best airlines of 2025 – and no US carrier made the list. Here’s why. – USA Today

These are the best airlines of 2025 – and no US carrier made the list. Here’s why. – USA Today

June 27, 2025
Britain’s industrial strategy is unlikely to boost its economy – The Economist

Britain’s industrial strategy is unlikely to boost its economy – The Economist

June 27, 2025
Ashley Jensen joins Superior Clinic to practice family medicine – Essentia Health

Ashley Jensen Joins Superior Clinic to Deliver Expert Family Medicine Care

June 27, 2025
Heads of state and political leaders gather at ‘Summer Davos’. Here’s what they are saying – The World Economic Forum

Heads of state and political leaders gather at ‘Summer Davos’. Here’s what they are saying – The World Economic Forum

June 27, 2025
St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

St. Francis Medical Center brings advanced robotic surgery technology to Northeast Louisiana – KNOE

June 27, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (699)
  • Economy (720)
  • Entertainment (21,613)
  • General (15,595)
  • Health (9,759)
  • Lifestyle (725)
  • News (22,149)
  • People (722)
  • Politics (727)
  • Science (15,937)
  • Sports (21,217)
  • Technology (15,705)
  • World (700)

Recent News

Ostin Technology (OST): Volatility’s Warning or Contrarian Opportunity? – AInvest

Ostin Technology (OST): Navigating Market Volatility – Red Flag or Hidden Opportunity?

June 27, 2025
Vote for the Blue Water Area’s top high school sports moment from the 2025 spring season – Times Herald

Cast Your Vote for the Blue Water Area’s Most Unforgettable High School Sports Moment of Spring 2025!

June 27, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version