* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Friday, June 6, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

    Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

    Shows to Watch – The Advocate

    Must-See Shows You Can’t Miss!

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    ‘Sinners,’ starring Michael B. Jordan, is now streaming on Prime Video – About Amazon

    Experience the Thrills of ‘Sinners’ Starring Michael B. Jordan – Now Streaming on Prime Video!

    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

  • 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
    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Micron Technology (NASDAQ:MU) Stock Price Expected to Rise, UBS Group Analyst Says – MarketBeat

    UBS Analyst Predicts Surge in Micron Technology Stock Price!

    Domo to Participate in the D.A. Davidson Technology Summit – Business Wire

    Domo Set to Shine at the D.A. Davidson Technology Summit!

    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

    Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

    Shows to Watch – The Advocate

    Must-See Shows You Can’t Miss!

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    Fox News Entertainment Newsletter: Celebrities mentioned during Diddy’s high-profile sex trafficking trial – Fox News

    ‘Sinners,’ starring Michael B. Jordan, is now streaming on Prime Video – About Amazon

    Experience the Thrills of ‘Sinners’ Starring Michael B. Jordan – Now Streaming on Prime Video!

    California Mid-State Fair announces entertainment lineups for Frontier and Mission stages – KSBY News

    Exciting Entertainment Lineup Unveiled for California Mid-State Fair’s Frontier and Mission Stages!

    Spotify & OpenAI: Will Gen AI ‘Hollow Out’ Entertainment? – Technology Magazine

    Will Generative AI Transform the Future of Entertainment

  • 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
    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

    Micron Technology (NASDAQ:MU) Stock Price Expected to Rise, UBS Group Analyst Says – MarketBeat

    UBS Analyst Predicts Surge in Micron Technology Stock Price!

    Domo to Participate in the D.A. Davidson Technology Summit – Business Wire

    Domo Set to Shine at the D.A. Davidson Technology Summit!

    When fiction becomes fact: 3 pieces of modern technology inspired by Star Trek – Redshirts Always Die

    From Screen to Reality: 3 Modern Technologies Inspired by Star Trek

    The Isfahan Center for Nuclear Technology – UCF, ZPP, and IRR10 – Alma Research and Education Center

    Exploring the Isfahan Center for Nuclear Technology: Innovations and Insights from UCF, ZPP, and IRR10

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    Inside the tedious effort to tally AI’s energy appetite – MIT Technology Review

    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.

Ecological Restoration Service Market to Reach USD 87.9 Bn by 2031, Growing at 9.4% CAGR – openPR.com

Ecological Restoration Service Market Set to Soar to $87.9 Billion by 2031 with a Robust 9.4% Growth Rate!

June 6, 2025
Boise State moves forward with plans for new science building, signaling an investment in STEM majors – The Arbiter | Boise State

Boise State Unveils Ambitious Plans for Cutting-Edge Science Building, Boosting STEM Education!

June 6, 2025
The Science Of De-Extinction Is Providing Hope For Nature’s Future – Forbes

Reviving the Past: How De-Extinction Science Offers New Hope for Our Planet’s Future

June 6, 2025
Cardi B Slams Offset For Allegedly Not Helping With Kids’ Six-Figure Lifestyle – HOT 97

Cardi B Calls Out Offset for Failing to Support Their Kids’ Luxurious Lifestyle!

June 6, 2025
Hollywood legend Tom Cruise becomes record holder for his fiery Mission Impossible stunt – Guinness World Records

Tom Cruise Sets the Bar High with Record-Breaking Fiery Stunt in Mission Impossible!

June 6, 2025
India could become third largest economy in the world this year: Borge Brende – MSN

India Poised to Become the World’s Third Largest Economy This Year!

June 6, 2025
9 things to do this weekend in Lake County plus a look ahead – Leesburg Daily Commercial

Discover 9 Exciting Weekend Adventures in Lake County and What’s Coming Up!

June 6, 2025
Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

Property Technology Magazine Unveils “PropTech Top 50 Index” and the “2025 PropTech Trends Report – The Great Rebuild.” – Business Wire

June 6, 2025
Graphics: China’s ecological, environmental quality keeps improving steadily – news.cgtn.com

Graphics: China’s ecological, environmental quality keeps improving steadily – news.cgtn.com

June 5, 2025
The Forgotten History (and Slippery Science) of Canola Oil – Eater

The Forgotten History (and Slippery Science) of Canola Oil – Eater

June 5, 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 (670)
  • Economy (684)
  • Entertainment (21,590)
  • General (15,267)
  • Health (9,725)
  • Lifestyle (687)
  • News (22,149)
  • People (685)
  • Politics (691)
  • Science (15,902)
  • Sports (21,187)
  • Technology (15,669)
  • World (669)

Recent News

Ecological Restoration Service Market to Reach USD 87.9 Bn by 2031, Growing at 9.4% CAGR – openPR.com

Ecological Restoration Service Market Set to Soar to $87.9 Billion by 2031 with a Robust 9.4% Growth Rate!

June 6, 2025
Boise State moves forward with plans for new science building, signaling an investment in STEM majors – The Arbiter | Boise State

Boise State Unveils Ambitious Plans for Cutting-Edge Science Building, Boosting STEM Education!

June 6, 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