Emerging Strategies for Matching Distant Knowledge with Existing Innovation Capabilities Stern, Alexander Document Version Final published version Publication date: 2010 License Unspecified Citation for published version (APA): Stern, A. (2010). Emerging Strategies for Matching Distant Knowledge with Existing Innovation Capabilities. Copenhagen Business School [Phd]. PhD series Link to publication in CBS Research Portal General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Take down policy If you believe that this document breaches copyright please contact us ([email protected]) providing details, and we will remove access to the work immediately and investigate your claim. Download date: 01. Oct. 2021 Alexander Brian Stern Emerging Strategies for Matching Distant Knowledge with Existing Innovation Capabilities Department of Innovation and Organizational Economics Copenhagen Business School, Denmark I Table of Contents I. Acknowledgments ......................................................................................................................................... VI II. List of Abbreviations ................................................................................................................................ VIII III. List of Tables ................................................................................................................................................. IX IV. List of Figures ................................................................................................................................................. X 1. Introduction ..................................................................................................................................................... 1 1.1 Background ...................................................................................................................................................... 1 1.2 Problem Statement ......................................................................................................................................... 2 1.3 Trends and Gaps of Prior Research ............................................................................................................. 3 1.4 Research Questions ........................................................................................................................................ 7 1.5 Methodological and Empirical Focus of the Study ................................................................................... 8 1.6 Thesis Outline .................................................................................................................................................. 9 2. The Effects of Knowledge Expansion on Industrial R&D ................................................................... 11 2.1 Introduction ................................................................................................................................................... 11 2.2 Technology Convergence and Divergence Dynamics ............................................................................ 13 2.2.1 Technology Convergence and Product Commoditization ............................................................ 13 2.2.2 Technology Divergence and the Threat of New Entrants ............................................................ 14 2.3 The Disaggregation of Industrial R&D ..................................................................................................... 15 2.3.1 Outsourcing of R&D .......................................................................................................................... 15 2.3.2 Strategic Alliances ................................................................................................................................ 17 2.3.3 Globalization of R&D ......................................................................................................................... 17 2.3.4 Open Innovation ................................................................................................................................. 19 2.4 The Implications of Distributed R&D on Firm-Level Innovation and Change ................................ 21 2.4.1 Path-Dependence and Local Search Bias ......................................................................................... 22 3. Methodology .................................................................................................................................................. 26 3.1 Introduction ................................................................................................................................................... 26 3.2 Research Methodology ................................................................................................................................. 26 3.3 Case Study Research ..................................................................................................................................... 30 3.4 Research Design ............................................................................................................................................ 30 3.4.1 Theoretical Framework ....................................................................................................................... 32 3.4.2 Unit of Analysis .................................................................................................................................... 33 II 3.4.3 Sample Selection .................................................................................................................................. 34 3.4.4 Data Collection ..................................................................................................................................... 35 3.4.5 Data Analysis ........................................................................................................................................ 38 4. Theoretical Framework ................................................................................................................................ 39 4.1 Introduction ................................................................................................................................................... 39 4.2 Delineating Knowledge Distance ............................................................................................................... 40 4.2.1 High Uncertainty .................................................................................................................................. 41 4.2.2 Tacitness ................................................................................................................................................ 43 4.2.3 Distance Effects ................................................................................................................................... 44 4.3 Organizational Constraints on Innovation ............................................................................................... 51 4.3.1 The Innovation Process in Mature Organizations ......................................................................... 51 4.3.2 Selection/Resource Allocation .......................................................................................................... 52 4.3.3 Technology............................................................................................................................................ 54 4.3.4 Production ............................................................................................................................................. 54 4.3.5 Product .................................................................................................................................................. 55 4.3.6 Marketing and Distribution ................................................................................................................ 56 4.3.7 Organizational Culture, Mental Models and Biases ....................................................................... 56 4.4 The Technological Gatekeeper ................................................................................................................... 60 4.4.1 Introduction .......................................................................................................................................... 60 4.4.2 Technical Communication in R&D .................................................................................................. 61 4.4.3 The Classic Conceptualization of the Technological Gatekeeper................................................ 62 4.4.4 Technological Gatekeepers in the Context of Distant Search...................................................... 67 4.4.5 Guiding Themes Derived from the Technological Gatekeeper Literature ................................ 71 4.5 Conclusion ..................................................................................................................................................... 74 5. Disaggregation of R&D in the Automotive Industry and the Need for Distant Search................... 76 5.1 Introduction ..................................................................................................................................................