Session 215

Knowledge-Based Strategic Interaction

Track I

Date: Wednesday, October 14, 2009


Time: 10:00 – 11:15


Room: Meeting Room 16

Session Chair:
Francesco Baldi, LUISS Guido Carli University

Title: Does Innovation Hinder or Promote Corporate Political Strategy? Strategic Choice and Resource Dependence Perspectives


  • Mine Ozer, SUNY-Oneonta
  • Livia Markoczy, University of Texas at Dallas

Abstract: Building on strategic choice and resource dependence perspectives, this study examines the relationship between the non-market strategic choices of investing in political strategies and other market oriented strategic choices, such as investing in innovation. In particular, we investigate whether innovation and corporate political strategies are alternatives, or complementary to each other. We further examine whether the relationship between innovation and corporate political strategy depends on industry context and firm characteristics. Based on a sample of 745 U.S. manufacturing firms during the period 2000-2002, we find that corporate political strategies tend to be complementary to innovation strategies as opposed to an alternative to such a choice.

Title: How Do Internal Openness and External Openness Affect Innovation Capabilities and Firm Performance?


  • Yi-Ching Wu, Chihlee Institute of Technology

Abstract: Open innovation is a paradigm that assumes firms should use external ideas and internal ideas, as they advance their technology and competitive advantage, and by implication, their performance. About explaining an openness strategy, this study clearly defines external openness, a search for external channels of information used to innovate, and internal openness, a kind of open culture within a firm. However, the process of turning innovative ideas into performance should be concerned firms’ innovation capabilities. Thus, this empirical study explores the relationship among external openness, internal openness, innovation capabilities and performance, and examines the mediating effect and the moderating effect. It used an international survey, executed by the MINE program, to demonstrate the value of harmonizing external openness with internal openness for favorable manager decisions.

Title: Patent Leveraging Strategies: Fight or Cooperate?


  • Francesco Baldi, LUISS Guido Carli University
  • Lenos Trigeorgis, University of Cyprus

Abstract: We consider a dynamic notion of strategy involving the use of a menu of patent leveraging strategies enabling the firm to switch among compete, cooperate or wait modes that may prevail under different future demand scenarios, depending on the relative competitive advantage of the firm’s patented innovation vis-à-vis the rival’s existing technology. Besides traditional patent licensing, we consider circumstances under which strategic patenting is best used in a fight mode (patent wall or bracketing), or in a cooperate mode (cross-licensing). Hybrid strategies may result, involving switching from one fight mode to another (from patent wall under intermediate demand to bracketing as demand rises under large advantage) or from a fight mode to a cooperation mode as demand rises further or cost advantage gets small.

Title: Uncertainty or Candor? The Impact of Tacit Knowledge and Open Strategy Implementation on Competitive Advantage


  • Philippe Byosiere, Doshisha University
  • Denise Luethge, Northern Kentucky University

Abstract: This paper investigates how strategy implementation affects domains of competitive advantage based on the perceptions of 998 managers in a large multinational consumer goods firm. The importance of different sources of tacit knowledge influencing the strategy implementation-competitive advantage relationship is assessed between the headquarters (597 managers) and the divisions (391 managers). Results indicate strong positive effects of “open strategy implementation” on all domains of competitive advantage. Only HQ-based managers reveal moderate positive effects of “top management implementation strategy” on technology, marketing and financial performance competitive advantage. The impact of tacit knowledge on competitive advantage is limited to managers at the divisions with “specialist tacit knowledge” and “intra-firms tacit knowledge” the firm’s competitive advantage in terms of technology, marketing and corporate profile. (121 words)

All Sessions in Track I...

Sun: 10:00 – 11:30
Session 264: Strategy in an Uncertain World: “Black Swan” Implications for K&I Scholars
Sun: 13:00 – 14:30
Session 265: The Changing Governance Landscape: Implications for Knowledge and Innovation Scholars
Sun: 15:00 – 16:30
Session 266: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 313: Knowledge & Innovation, IG Meeting
Mon: 12:45 – 14:00
Session 201: 50th Anniversary of Penrose's (1959) The Theory of the Growth of the Firm
Session 212: Technological Innovation
Mon: 15:45 – 17:00
Session 218: Let the Knowledge Flow...
Session 223: Exploration and Novelty
Mon: 17:15 – 18:30
Session 209: Learning and Collaboration
Session 221: Innovation and Management Practice
Tue: 10:00 – 11:15
Session 202: Microfoundations of Knowledge and Learning
Session 235: Regulating the Market for Ideas: The Role of Communities, Norms, and Networks
Tue: 11:30 – 12:45
Session 203: Dynamic Capabilities
Session 224: Governing Knowledge
Tue: 14:30 – 15:45
Session 207: How Do Capabilities Develop?
Session 210: The Complex Roles of Experience
Wed: 10:00 – 11:15
Session 211: Knowledge Transfer
Session 215: Knowledge-Based Strategic Interaction
Wed: 11:30 – 12:45
Session 213: The Human Factor in Knowledge and Innovation
Session 219: Ambidexterity

Strategic Management Society

Washington DC