Industry Life Cycle Research Articles

Length of life cycle assessment of vehicle

In the article the theoretical analysis of methodical approaches to the definition of indicators of the life cycle of the motor transport industry and methods for assessing the status of rolling stock in the MTE (motor transport enterprise). It is determined that in order to ensure a high level of volumetric indicators of the life cycle of the motor transport industry it is necessary to manage the life cycles of technologies, services and means of transport from the position of the complex object Vehicle - transport service. The useful life of a vehicle is influenced by technological improvements, technological progress, reasonable projected economic changes, the movement of business centers, prohibited laws and other reasons. The criteria for establishing a reasonable replacement period for rolling stock of motor transport enterprises are environmentally friendly and safe vehicles. The proposed method of estimating the life cycle of a vehicle on the basis of operational reliability allows for taking into account the majority of operational characteristics and contributes to the acceptance of optimal strategic decisions for the management of the MTE (motor transport enterprise).

“Exploring petroleum inside source kitchen”: Connotation and prospects of source rock oil and gas

Abstract Based on the transitional background of the global energy structure, exploration and development of unconventional oil and gas, and investigation of key basins, the unconventional oil and gas resources are divided into three types: source rock oil and gas, tight oil and gas, and retention and accumulated oil and gas. Source rock oil and gas resources are the global strategic supplies of oil and gas, the key resource components in the second 150-year life cycle of the future petroleum industry, and the primary targets for “exploring petroleum inside source kitchen”. The geological connotation of source rock oil and gas was proposed, and the models of source rock oil and gas generation, expulsion and accumulation were built, and five source rock oil and gas generation sections were identified, which may determine the actual resource potential under available technical conditions. The formation mechanism of the “sweet sections” was investigated, that is, shale oil is mainly accumulated in the shale section that is close to the oil generation section and has higher porosity and permeability, while the “sweet sections” of coal-bed methane (CBM) and shale gas have self-contained source and reservoir and they are absorbed in coal seams or retained in the organic-rich black shale section, so evaluation and selection of good “sweet areas (sections)” is the key to “exploring petroleum inside source kitchen”. Source rock oil and gas resources have a great potential and will experience a substantial growth for over ten world-class large “coexistence basins” of conventional-unconventional oil and gas in the future following North America, and also will be the primary contributor to oil stable development and the growth point of natural gas production in China, with expected contribution of 15% and 30% to oil and gas, respectively, in 2030. Challenges in source rock oil and gas development should be paid more attention to, theoretical innovation is strongly recommended, and a development pilot zone can be established to strengthen technology and promote national support. The source rock oil and gas geology is the latest progress of the “source control theory” at the stage of unconventional oil and gas. It will provide a new theoretical basis for the new journey of the upstream business in the post-industry age.

Which Service? How Industry Conditions Shape Firms’ Service‐Type Choices

This article studies the role of industry conditions as determinants of manufacturing and software firms’ decisions to offer services. It draws on the competence perspective on industry evolution and servitization to theorize and provide empirical evidence on how industry conditions affect firms’ choice to offer two distinct types of services—product‐oriented services and customer‐oriented services. It is argued that firms are likely to offer product‐oriented services in Schumpeterian industry environments to address high technological uncertainty by leveraging and reinforcing capabilities in the existing technology. In contrast, firms are likely to offer customer‐oriented services in non‐Schumpeterian industry environments to address value generation uncertainty by building competences in new technological or market areas. Based on longitudinal data on 410 public firms from manufacturing industries and the software industry, empirical evidence suggests that firms are indeed more likely to offer product‐oriented services in Schumpeterian industry environments, such as in the early stage of the industry life cycle and under conditions of high R&D intensity and competition, whereas they are more likely to offer customer‐oriented services in non‐Schumpeterian environments, such as in the later stages of the industry life cycle and in highly cyclical industries.

Replicator dynamics in value chains: explaining some puzzles of market selection

The pure model of replicator dynamics provides important insights in the evolution of markets but has not met with much empirical support. This article extends the model to the case of firms vertically integrated into value chains (VCs). Through an extended analytical model and numerical simulations, we show that (i) by taking VCs into account, the replicator dynamics may reverse its effect. In these ”regressive developments” of market selection, firms with low fitness expand because of being integrated with highly fit partners, and the other way around; (ii) allowing a partner’s switching re-introduces selection forces into the upper layers of VCs; and (iii) periods of instability in the early stage of the industry life cycle may be the result of an optimization’ of partners within a value chain, thus providing a novel and simple explanation of the evidence discussed earlier in the literature.

The Unification of Product Life-cycle and Industry Life-cycle: A Framework for Telecom Sector in Pakistan

The purpose of this study is to propose a strategic framework using the Unified Life Cycle (ULC)model by combining Product lifecycle (PLC) and Industry life cycle (ILC). Data collection and analysis involves multi-stage qualitative methods. At first stage qualitative data was collected through interviews and focus groups while at a later part of the research qualitative data was again collected from the marketing experts (N = 100). This paper shows originality on many counts. Firstly, both PLC and ILC have shown weaknesses and limitations in earlier researches. This research has unified both PLC and ILC into one ULC combining the strengths and reducing the weakness of both life cycles. Secondly, earlier studies failed to provide any integrated strategic framework of selecting appropriate pricing strategies; using both PLC and ILC in silos. The current research provides an integrated strategic framework for pricing strategy selection using newly proposed strategic framework labelled as ULC.

University spin-offs and triple helix dynamics in regional innovation ecosystems: a comparison of technology intensive start-ups in Sweden

This study offers novel insights into how university spin-offs contribute to triple helix dynamics and the evolutionary processes of industrial renewal in regional innovation ecosystems. We analyse three groups of technology intensive start-ups: university spin-offs, corporate spin-offs, and independent technology start-ups. We compare and analyse various characteristics, functions, and processes among the three groups using primary data from a questionnaire survey conducted at 341 young firms operating in two technology intensive sectors in Sweden. Our findings suggest that university spin-offs differ from the other two groups with respect to their contribution to triple helix dynamics in regional innovation ecosystems. University spin-offs cooperate more closely with universities, conduct more in-house R&D, purchase more R&D services, and offer more innovative products/services in the introduction stage of their industry life cycles.

University spin-offs and triple helix dynamics in regional innovation ecosystems: a comparison of technology intensive start-ups in Sweden

This study offers novel insights into how university spin-offs contribute to triple helix dynamics and the evolutionary processes of industrial renewal in regional innovation ecosystems. We analyse three groups of technology intensive start-ups: university spin-offs, corporate spin-offs, and independent technology start-ups. We compare and analyse various characteristics, functions, and processes among the three groups using primary data from a questionnaire survey conducted at 341 young firms operating in two technology intensive sectors in Sweden. Our findings suggest that university spin-offs differ from the other two groups with respect to their contribution to triple helix dynamics in regional innovation ecosystems. University spin-offs cooperate more closely with universities, conduct more in-house R&D, purchase more R&D services, and offer more innovative products/services in the introduction stage of their industry life cycles.

Familiarity, Creativity, and the Adoption of Category Labels in Technology Industries

The literature on technology management has increasingly focused on the sociocognitive elements of the industry life cycle. One of these elements, category labels (words, in most cases) and its role in shaping market understandings, has recently become of interest to scholars. As industries evolve, stakeholders generate a plethora of category labels. However, we know relatively little about why some category labels are used repeatedly, whereas others are abandoned. Drawing on semantic networks theory, we argue that the familiarity and creativity of category labels drive their adoption. We hypothesize that low levels of familiarity hinder comprehension, but too much familiarity increases the cost of obviousness. Likewise, low levels of creativity do not trigger curiosity, whereas too much creativity spurs dissonance. We use two methods to address these hypotheses. First, we study the early smartphone industry, finding support for an inverted U-shaped relationship between both the familiarity and creativity of category labels and their adoption, even after controlling for alternative explanations, such as technology and design characteristics. Second, we find consistent results through two online experiments that broaden the scope of our study and address potential endogeneity concerns in our field data. Our paper expands the literature on the evolution of technology industries by showing that familiarity and creativity are distinct dimensions that influence the sociocognitive dynamics of an emerging industry. We also contribute to the categorization literature by theorizing about the contestation that occurs among category labels and providing empirical evidence of the factors that affect their adoption.

Industrial Data-Based Life Cycle Assessment of Architecturally Integrated Glass-Glass Photovoltaics

Worldwide, an increasing number of new buildings have photovoltaics (PV) integrated in the building envelope. In Switzerland, the use of coloured PV façades has become popular due to improved visual acceptance. At the same time, life cycle assessment of buildings becomes increasingly important. While a life cycle inventory for conventional glass-film PV laminates is available, this is not the case for glass-glass laminates, and in particular, coloured front glasses. Only conventional glass-film PV laminates are considered in databases, some of which are partly outdated. Our paper addresses this disparity, by presenting life cycle inventory data gathered from industries producing coloured front glass by digital ceramic printing and manufacturing glass-glass PV laminates. In addition, we applied this data to a hypothetical façade made of multi-coloured glass-glass laminates and its electricity generation in terms of Swiss eco-points, global warming potential, and cumulative energy demand as impact indicators. The results of the latter show that the effect of the digital ceramic printing is negligible (increase of 0.1%), but the additional glass (4% increase) and reduction of electricity yield (20%) are significant in eco-points. The energy pay-back time for a multi-coloured PV façade is 8.1 years, which decreases by 35% to 5.3 years when replacing the glass rain cladding in an existing façade, leaving 25 years for surplus electricity generation.

Patterns of Learning in Dynamic Technological System Lifecycles—What Automotive Managers Can Learn from the Aerospace Industry?

Not only with respect to the common overlaps within the market of urban air mobility, but also in terms of their requirement profile with regard to the systemic core, all mobility industries are converging. This article focuses on the required patterns of learning in order to cope with these changes, and what automotive managers can learn from the aerospace industry in this context. As organizational learning is the central parameter of economic evolution, and technology develops over trajectory shifts, companies are, at the very least, cyclically forced to learn ambidextrously, or are squeezed out of the market. They have to act and react as complex adaptive systems in their changing environment. Especially in these dynamics, ambidextrous learning is identified to be a conditio sine qua non for organizational success. Especially the combination of efficiency-oriented internal exploitation with an explorative and external-oriented open innovation network turns out to be a superior strategy. By combining patent data, patent citation analysis and data on the European Framework Programs, we show that there are temporal differences, i.e., position of the product in the product, technique, technology, and industry life cycle. Furthermore, we draw a conclusion dependent on the systemic product character, which enforces different learning requirements concerning supply chain position and, as an overarching conclusion, we identify product structure to be decisive for how organizational learning should be styled.

Role of University Start-ups for Industry Life Cycle

Role of University Start-ups for Industry Life Cycle

Dynamiques de proximité : pistes de réflexion pour un enrichissement des modèles

Pendant longtemps, les travaux des deux écoles de la proximité, ont porté sur des analyses en statique de l’articulation des proximités. Mais, depuis les années 2000, elles ont proposé chacune un modèle d’analyse des dynamiques. L’école hollandaise ( Balland et al., 2015) analyse l’évolution jointe des réseaux d’innovation et des cinq types de proximités définis par Boschma (2005). Torre (2010) a proposé un modèle centré sur la dynamique d’articulation des proximités au cours des projets d’innovation en coopération. Toutefois, ces deux modèles ne proposent qu’un type de dynamique. L’article vise à enrichir le modèle de Torre (2010), qui décrit la trajectoire de coopération allant jusqu’au bout du projet, en incluant les trajectoires interrompues et les trajectoires de reconduction des coopérations. L’approvisionnement des selfs des lycées illustre ces dynamiques.

Make, buy, borrow or crowdsource? The evolution and future of outsourcing

PurposeThe purpose of this paper is to provide a conceptual and historical overview of the evolution of outsourcing. The authors then focus and prognosticate on the future of outsourcing and develop several compelling ideas based on extant insights and the rule of three axioms.Design/methodology/approachThe insights are developed based on a review of the extant literature and evolution of trends.FindingsThe paper generates several insights. First, there is a need to carefully differentiate between core and non-core functions when deciding on whether/what to outsource. Some outsourcing options may boost financial performance in the short run but undermine the long-term viability of the firm. Public firms outsource more than private firms after controlling for size. In many cases, the optimal number of primary suppliers for a critical function/process/stock keeping unit (SKU) is three (while also allowing for a number of secondary suppliers). The optimal share distribution between the suppliers for the same SKU is rank ordinal (i.e. not equal). The complexity and the maturity of the supply chain as well as industry life cycle, regulation and technology influence the optimal number of primary suppliers.Research limitations/implicationsThe insights have significant implications for outsourcing decisions and for improving their impact on firm performance. The emergence of the shared economy, subscription-based business models and crowdsourcing will lead to consumers, business and society that increasingly borrows rather than one that makes or buys.Originality/valueThe paper represents the first attempt to integrate the axioms of the rule of three with the outsourcing literature and the theory of the firm. It emphasizes the need to align (long-term) performance objectives with managerial incentives as businesses manage their outsourcing efforts.

Remarks on Pisano: “toward a prescriptive theory of dynamic capabilities”

Author(s): Linden, G; Teece, DJ | Abstract: Pisano's recent ICC article offers some clarity around the pursuit and development of new capabilities, but it overreaches by equating this with dynamic capabilities as a whole. The capabilities that he discusses are, for the most part, simply technologies that can be thought of as ordinary capabilities. Moreover, his approach isolates capability selection from strategy. Opportunities must be sensed and calibrated and a strategy developed before capability gaps can be identified. Pisano also treats general-purpose capabilities as an option without acknowledging their dependence on the stage of the industry lifecycle. In mature industries, general-purpose technologies are less likely to be relevant. While there is much of value in Pisano's article about technology selection and risk, this is overshadowed by the claims he makes for the magnitude of the article's contribution to dynamic capabilities research.

Initial Public Offerings Over the Industry Life Cycle

We provide new evidence on IPOs over the industry life cycle. Less innovative, financially constrained firms seek public equity earlier in an industry’s life cycle. Moreover, average profitability of early IPOs is lower when more private capital flows to the industry early in its growth phase. Our results suggest that availability of private capital enables better-performing firms to avoid early public issuance without incurring a long-term product market disadvantage. However, delayed IPOs carry a cost for public investors. By the time late issuers tap public markets, the period of high market-share growth and high returns for equity investors has passed.

STUDY OF INDUSTRY COMPETITION IN VARIOUS STAGES OF THE INDUSTRY LIFE-CYCLE

Industry life-cycle is a concept which proposes that almost all industries progress through a predictable life-cycle, wherein, newly formed industries are fragmented, and consolidate as they progress and then mature with time and ultimately decline. The degree of competition being faced by a firm in an industry changes as an industry progresses through its life-cycle and the appropriate use of specific business strategies depends largely on the phase of the life-cycle of the industry in which the firm operates. The purpose of this paper is to understand the different stages of the industry life-cycle and study the changing nature of competition that prevails in each stage, analysing how the same impacts the survival strategies adopted by firms. The author familiarizes the readers with the concept of the industry life-cycle and the various forces which influence industry competition. Thereafter, the author carries out a detailed study of sample industries in the Indian economy which are in various stages of their life-cycle and analyses the competition prevailing among the industry players in each stage. The paper presents, through examples, the impact that the changing nature of industry competition has on the survival strategies adopted by firms in each stage of the industry life cycle. The paper concludes with the notion that business strategies of firms vary depending upon the corresponding stage of the industry life cycle, wherein, each phase requires a different approach to industry competition to ensure the existence and growth of the firm

STUDY OF INDUSTRY COMPETITION IN VARIOUS STAGES OF THE INDUSTRY LIFE-CYCLE

Industry life-cycle is a concept which proposes that almost all industries progress through a predictable life-cycle, wherein, newly formed industries are fragmented, and consolidate as they progress and then mature with time and ultimately decline. The degree of competition being faced by a firm in an industry changes as an industry progresses through its life-cycle and the appropriate use of specific business strategies depends largely on the phase of the life-cycle of the industry in which the firm operates. The purpose of this paper is to understand the different stages of the industry life-cycle and study the changing nature of competition that prevails in each stage, analysing how the same impacts the survival strategies adopted by firms. The author familiarizes the readers with the concept of the industry life-cycle and the various forces which influence industry competition. Thereafter, the author carries out a detailed study of sample industries in the Indian economy which are in various stages of their life-cycle and analyses the competition prevailing among the industry players in each stage. The paper presents, through examples, the impact that the changing nature of industry competition has on the survival strategies adopted by firms in each stage of the industry life cycle. The paper concludes with the notion that business strategies of firms vary depending upon the corresponding stage of the industry life cycle, wherein, each phase requires a different approach to industry competition to ensure the existence and growth of the firm

Industry Evolution Revisited: New Paths and Future Visions

This summer we celebrate the 40 years anniversary of the publication of Abernathy and Utterback’s (1978) fundamental article on the industry lifecycle, which opened a fruitful avenue of research that continues to be relevant today. In this panel symposium we take stock of the research that has unfolded over the last 40 years, placing particular emphasis on the reinvigoration of industry lifecycle research that occured in the last decade. During this period, we have seen a large number of papers, from different scholarly traditions and different methodologies, that have greatly expanded the classical work that fleshed out what we know today as industry evolution theory: Abernathy & Utterback 1978; Anderson & Tushman 1990; Klepper 1997. Some of the more recent work has focused on the structural characteristics and strategic dynamics of the industry lifecycle, such as the role of submarkets in the industry lifecycle (Klepper & Thompson, 2006), the emergence of innovation shocks and the role of knowledge inheritance (Argyres, Bigelow, & Nickerson, 2015), the possibility of strategic reorientations during industry evolution (Eggers, 2012), and the importance of R&D collaborations (Kapoor & McGrath, 2014). Another recent research stream has uncovered the socio-cognitive dynamics of the industry lifecycle. This stream of research has identified the existence of a dominant category (Suarez, Grodal and Gotsopoulos, 2015), and elaborated on the co- evolution of categories and technologies (Grodal, Gotsopoulos, and Suarez, 2015). In this panel symposium we discuss these and other new directions of industry lifecycle research and elaborate on paths for future research.

Linking Market Entry and Firm Growth: When to Enter and Where to Grow?

This proposed symposium offers new insights on market entry and firm growth by exploring the links between entry and growth, each of which has been studied relatively independently of each other in prior research. In particular, we focus on the role of market characteristics, and bring together a collection of four complementary papers, each examining a different and yet related aspect of the influence of market characteristics on the when and where of market entry and firm growth. Collectively, the papers in the symposium focus on some of the fundamental issues in strategic management related to market entry and firm growth. Specifically, they ask and attempt to answer the following questions: What kind of markets may offer the greatest first-mover advantage (FMA)? For example, do markets with greater competitive rivalry experience larger or smaller FMA? How do the growth paths of individual firms relate to the lifecycle of the industry? To what extent do the competitive interactions between firms influence the pattern of the industry’s geographic growth? Do firms grow faster in markets with greater potential for “softwarization”, which increases the ability of firms to scale assets at low cost? How do the differences in strength of regional imprints affect the growth patterns of different types of organizational forms in an emerging market? For example, does high imprinting of state ownership in a region reduce the growth rate of privatized firms? Addressing these questions will help us narrow the gap in the extant literature by integrating entry and growth as distinct yet closely-connected elements of firm and industry lifecycles. Does Market Rivalry Increase First-Mover Advantage When Entry Order Is Randomized? Presenter: Kubilay Cirik; Purdue U., West Lafayette Presenter: Richard Makadok; Purdue U., West Lafayette On the Geography of Industry Evolution: A Tale of Two Firms Presenter: Natarajan Balasubramanian; Syracuse U. Presenter: Jeongsik Lee; Drexel U. Presenter: Charlotte Ren; Fox School of Business, Temple U. Presenter: Ye Hu; U. of Houston Industry softwarization and entry Presenter: Victor M. Bennett; Duke U. Presenter: Todd Hall; Duke U. Regional Imprinting and the Growth of Privatized Firms Presenter: Fan Xia; Rennes School of Business Presenter: Tammy L. Madsen; Santa Clara U. Presenter: Gordon Walker; Southern Methodist U.

Industry Cycles vs. Attention Cycles: The Effects of Shifting Public Attention

In the majority of industries, organizational density has been found to follow a common pattern: A slow start is followed by a rapid ascend to a peak, which then gives its place to an often equally abrupt, precipitous decline. Analyzing this dominant pattern, existing literature across disciplines has focused predominantly on economic explanations: abnormal economic returns attract entrepreneurs and increase entry until a new industry’s carrying capacity is saturated. Subsequently, intensifying competition leads to concentration, exit, and lower levels of density. Nevertheless, similar patterns can be created by socially driven dynamics of diffusion and abandonment of new organizational models, having little to do with the availability of economic resources. Using data on Greek stock brokerage firms, I explore alternative, economic and social, explanations. As my results suggest, social dynamics such as fads can be more important than the availability of economic resources in driving entrepreneurial action. Bringing such dynamics into the analysis of industry life cycles and entrepreneurship can thus contribute significantly to a richer and more nuanced understanding of industry evolution.