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Boundary-spanning Search for Product Innovation: The Moderating Role of Environment

Author: GuoLiNa
Tutor: ZhangWenHong
School: Nanjing University
Course: Business management
Keywords: Cross-border search Product Innovation Dynamic Capabilities Environmental turbulence Environment competitive
CLC: F273.1
Type: Master's thesis
Year: 2011
Downloads: 84
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Abstract

With the acceleration of competition and environmental turbulence, companies increasingly need to through cross-border search found a new competitive in order to achieve a higher market share (Floyd and Lane, 2000). In this case, the concept of cross-border search deep into organizational learning, organizational strategy, innovation, and entrepreneurship in the past. Many studies have emphasized the importance of technical knowledge, however, ignore the importance of knowledge of the market for corporate product innovation. This paper argues that enterprises should carry out cross-border search activities of technical knowledge and market knowledge. Technical knowledge of cross-border search is to discover new technologies, new products and new business through local, non-local information and knowledge search behavior; pursuit of new knowledge; experimenting with new methods. The market knowledge Straddling search brand extension through a better understanding of customer needs, market preferences, product use and alternative models, product positioning and target customer reorientation, and then found that the opportunities for innovation. Although the technical knowledge and market knowledge is very important for enterprise, but regret that the current study does not explain the limitations of the scarce resources, the success of the organization on how to reconcile these two cross-border search activities. This paper argues that the very important reason is because previous studies did not consider the impact of the external environment. However, a key feature of strategic management practices is to emphasize the dynamic environment. Previous studies have shown that organizational strategic orientation, organizational learning or entrepreneur-oriented effects will be subject to environmental impact, such as technology giants are increasingly encroaching on new turf to March (1993), as well as Lewin (1999) on organizational strategy that environmental factors such as environmental turbulence regulation The relationship between the orientation and innovation performance. However, very few studies to empirically investigate the nature of this regulation. With China, the emerging markets have become increasingly heterogeneous, two environmental forces, environmental turbulence and environment increasingly competitive impact to the corporate decision-making and outputs (Luo, 2003). As an emerging economy, China has a special background to study the impact on innovation of organizing search. The environmental turbulence refers to the degree of environmental instability changes, changes in technology, customer preferences change, changes in product demand and supply as the main feature. High turbulent environment often means ever-shortening product life cycles, the existing competitiveness continue to be eliminated, this time to introduce new products in a timely manner to replace the eliminated product may become the key to business success (Kotabe and Swan, 1995). Environment competitive enterprises where the degree of competition in the industry, intense competition is usually more competitors characterized, mainly for the following forms: a price war, more advertising and marketing and product offers additional services, and more more transaction (Porter, 1985). In a highly competitive market, the price is more transparent and effective regulation by the market. Although more and more research organizations search articles, but for the causes and consequences of such activities we are not very clear. In this paper, on the basis of dynamic capabilities and strategic management theory to explore the environmental factors (including environmental turbulence and environmental competitive impact of the regulatory role in the enterprise product innovation relationship) in the technical knowledge of cross-border search and market knowledge of cross-border search. Studies have shown that, in the environment of high volatile cross-border search is more conducive to product innovation, market knowledge and technical knowledge of cross-border search is more conducive to product innovation in a highly competitive environment. Through this interpretation and verification, this article clearly shows that successful organizations should be how to coordinate the relationship between the technical knowledge of cross-border search and market knowledge of cross-border search, and react differently for different environmental conditions.

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