IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v38y2009i9p1468-1477.html
   My bibliography  Save this article

Technology cross-fertilization and the business model: The case of integrating ICTs in mechanical engineering products

Author

Listed:
  • Björkdahl, Joakim

Abstract

This paper investigates the increasing interdependency among different bodies of knowledge in products, from the technology opportunities arising from 'cross-fertilizing', and how firms try to appropriate economic value from their technical potential. The study is based on three multi-national corporations, and their integration of information and communication technologies into established mechanical engineering products. The case studies show how technology cross-fertilization needs to be accompanied by business model changes in order to achieve increased economic value. While much attention has been given to the input dimension of multi-technology products, the economic and commercial domains have been rather ignored in previous literature. This work contributes to the management literature by linking the input resources with the market output for creating and appropriating value from technology cross-fertilization.

Suggested Citation

  • Björkdahl, Joakim, 2009. "Technology cross-fertilization and the business model: The case of integrating ICTs in mechanical engineering products," Research Policy, Elsevier, vol. 38(9), pages 1468-1477, November.
    • Handle: RePEc:eee:respol:v:38:y:2009:i:9:p:1468-1477
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048-7333(09)00149-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. Ove Granstrand, 1999. "The Economics and Management of Intellectual Property," Books, Edward Elgar Publishing, number 1651.
    3. Gambardella, Alfonso & Torrisi, Salvatore, 1998. "Does technological convergence imply convergence in markets? Evidence from the electronics industry," Research Policy, Elsevier, vol. 27(5), pages 445-463, September.
    4. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    5. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    6. K. Pavitt & M. Robson & J. Townsend, 1989. "Technological Accumulation, Diversification and Organisation in UK Companies, 1945--1983," Management Science, INFORMS, vol. 35(1), pages 81-99, January.
    7. Keith Pavitt, 2001. "Can the Large Penrosian Firm cope with the Dynamics of Technology?," SPRU Working Paper Series 68, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 727-756, October.
    9. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
    10. Garcia-Vega, Maria, 2006. "Does technological diversification promote innovation?: An empirical analysis for European firms," Research Policy, Elsevier, vol. 35(2), pages 230-246, March.
    11. Granstrand, Ove & Sjolander, Soren, 1990. "Managing innovation in multi-technology corporations," Research Policy, Elsevier, vol. 19(1), pages 35-60, February.
    12. Patel, Pari & Pavitt, Keith, 1997. "The technological competencies of the world's largest firms: Complex and path-dependent, but not much variety," Research Policy, Elsevier, vol. 26(2), pages 141-156, May.
    13. Silvia Fabiani & Fabiano Schivardi & Sandro Trento, 2005. "ICT adoption in Italian manufacturing: firm-level evidence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(2), pages 225-249, April.
    14. Constantinos C. Markides & Peter J. Williamson, 1994. "Related diversification, core competences and corporate performance," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 149-165, June.
    15. G. N. Von Tunzelmann, 1998. "Localized Technological Search And Multi-Technology Companies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 231-256.
    16. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    17. Michael Hobday & Andrew Davies & Andrea Prencipe, 2005. "Systems integration: a core capability of the modern corporation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 1109-1143, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    2. Bohnsack, René & Pinkse, Jonatan & Kolk, Ans, 2014. "Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles," Research Policy, Elsevier, vol. 43(2), pages 284-300.
    3. Guo, Jie & Nikou, Shahrokh & Bouwman, Harry, 2013. "Analyzing the business model for mobile payment from banks' perspective: An empirical study," 24th European Regional ITS Conference, Florence 2013 88483, International Telecommunications Society (ITS).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. René Belderbos & Leo Sleuwaegen & Reinhilde Veugelers, 2010. "Market Integration and Technological Leadership in Europe," European Economy - Economic Papers 2008 - 2015 403, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Lorenz, Steffi, 2015. "Diversität und Verbundenheit der unternehmerischen Wissensbasis: Ein neuartiger Messansatz mit Indikatoren aus Innovationsprojekten," Discussion Papers on Strategy and Innovation 15-01, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    3. Paola Giuri & John Hagedoorn & Myriam Mariani, 2002. "Technological Diversification and Strategic Alliances," LEM Papers Series 2002/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Lichtenthaler, Ulrich, 2010. "Determinants of proactive and reactive technology licensing: A contingency perspective," Research Policy, Elsevier, vol. 39(1), pages 55-66, February.
    5. Piscitello, Lucia, 2000. "Relatedness and coherence in technological and product diversification of the world's largest firms," Structural Change and Economic Dynamics, Elsevier, vol. 11(3), pages 295-315, September.
    6. Carlo Corradini & Pelin Demirel & Giuliana Battisti, 2016. "Technological diversification within UK’s small serial innovators," Small Business Economics, Springer, vol. 47(1), pages 163-177, June.
    7. Joakim Björkdahl & Magnus Holmén, 2019. "Exploiting the control revolution by means of digitalization: value creation, value capture, and downstream movements," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 423-436.
    8. Sandro Mendonca, 2006. "The Revolution Within: Ict And The Shifting Knowledge Base Of The World'S Largest Companies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(8), pages 777-799.
    9. Michael Stephan, 2010. "Does Outsourcing Result in the Outsourcing of Technological Competencies? An Empirical Analysis of the Effect of Vertical Specialization on the Technological Competence Base of Firms," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 21(3), pages 308-331.
    10. Krammer, Sorin M.S., 2016. "The role of diversification profiles and dyadic characteristics in the formation of technological alliances: Differences between exploitation and exploration in a low-tech industry," Research Policy, Elsevier, vol. 45(2), pages 517-532.
    11. Mendona, Sandro, 2009. "Brave old world: Accounting for 'high-tech' knowledge in 'low-tech' industries," Research Policy, Elsevier, vol. 38(3), pages 470-482, April.
    12. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    13. Lutao Ning & Martha Prevezer & Yuandi Wang, 2014. "Technological diversification in China: Based on Chinese patent analysis during 1986-2011," Working Papers 55, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    14. Desyllas, Panos & Sako, Mari, 2013. "Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance," Research Policy, Elsevier, vol. 42(1), pages 101-116.
    15. Giovanni Dosi & Richard Nelson, 2013. "The Evolution of Technologies: An Assessment of the State-of-the-Art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 3-46, June.
    16. Gambardella, Alfonso & Giuri, Paola & Luzzi, Alessandra, 2007. "The market for patents in Europe," Research Policy, Elsevier, vol. 36(8), pages 1163-1183, October.
    17. Bart Leten & Rene Belderbos & Bart Van Looy, 2016. "Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1257-1291, December.
    18. Bei, Xiaoshu, 2019. "Trademarks, specialized complementary assets, and the external sourcing of innovation," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    19. Dibiaggio, Ludovic & Nasiriyar, Maryam & Nesta, Lionel, 2014. "Substitutability and complementarity of technological knowledge and the inventive performance of semiconductor companies," Research Policy, Elsevier, vol. 43(9), pages 1582-1593.
    20. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:38:y:2009:i:9:p:1468-1477. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.