4. Integrating Internal and External Resources Flashcards
Open innovation, absorptive capacity and integration approaches.
What does SWOT stand for?
Strengths, weaknesses, opportunities and threats.
Which parts of SWOT are from internal origin, and which are from external resources?
Internal origin: strengths, weaknesses
External resources: opportunities, threats
What are external resources
Assets, knowledge and skills outside of a firm.
What are lead users?
Individuals or communities that invent new or improve current products.
How do firms achieve strategic competitiveness?
By combining internal and external resources.
Define sensing.
Awareness of weak signals, opportunities or new knowledge.
Define consumer ethnography.
Employing fieldwork or ethnographic tools to understand consumer behaviour.
Define fieldwork.
A methodological approach to generate data and insight on ethnography (to understand target groups).
Define core rigidities.
Competencies that no longer relevant and result to weakness. (Trapped in the past)
Define resource integration.
Mutually beneficial combination of internal and external resources.
Define design.
Pursuit of emotional, symbolic and functional performances of products.
Define turnaround.
A rare managerial accomplishment of organisational change after a performance decline.
Give examples of export orientated countries.
Germany, Korea, Japan
What is a benefit of internationalisation?
Having high market shares with small/medium size firms in small and profitable markets (hidden champions).
Define coopetition.
The cooperation between two competitors to make valuable complimentary products while still individually competing to capture value.
Give an example of coopetition.
Microsoft computers with Intel chips.
Increases in what customers were willing to pay compared to before coopetition.
Define a competence trap.
Overly relying on a core competencies.
Define open innovation.
Using outside resources to enhance value.
Define knowledge processes.
The way firms create, absorb, transfer and transform knowledge.
What is a weak signal?
A change in consumer/economy that is not easily detected.
What does seizing entail?
Acting upon weak signals, opportunities or new knowledge.
Name 3 conditions that affect managerial decisions.
1) Uncertainty
2) Complexity
3) Interorganisational dynamics
What does peripheral vision cause?
Awareness of movements without focusing on what moves.
This way companies can focus on themselves and their priorities.
Define clusters.
Firms with complementary products all in one region.
Give an example of a cluster.
Silicone valley and technology companies.
What do clusters help indicate?
Important assets/resources.
What does the ability to learn depend on?
The ability to absorb and value new external knowledge over old knowledge and experience.
Define assimilation.
Placing new knowledge into existing framework.
If the new knowledge is too different it is disruptive innovation.
What caused transformation?
Disruptive innovation causes existing frameworks to be transformed.
Give an example of a transformation.
Kodak/fuji film had to transform their technology due to rising digital photography.
Define organisational change.
A strategy change that includes adapting structures, processes, methods and cognition.
Define alliance.
An agreement between parties to conduct activities based on a mutual goal.
Define acquisition.
When one firm entity internalises another.
It is a takeover or buyout.
What are the goals of alliances and acquisition?
Expanding a firm’s pool of resource by accessing external resources.
What is “Not invented here” (NIH)?
Close mindedness of firms to external ideas.
Define adaptive resistance.
The ability to respond positively to change/adaption.
Define maladaptive resistance.
The inability/resistance of firms in response to change/adaption.
What causes maladaptive resistance?
1) Employees seeing change as a burden.
2) Newly internalised resources are too hard to understand.
3) Challenge of choosing what resources to let go in place of new resources.
What do models of integration describe?
Broad approaches to integrating internal and external resources.
What are the three types of models of integration?
1) Stable integration
2) Modular integration
3) Dynamic integration
Define stable integration.
When companies internalise information without changing the new combination.
Define modular integration.
Purposeful selection of external resources to substitute parts of the value chain.
Define dynamic integration.
It resembles a process.
