University of Pittsburgh

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    131 research outputs found

    Radio Frequency Identification (RFID) Implementation Efforts at Four Firms: Integrating Lessons Learned and RFID-Specific Survey

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    RFID has been touted by it proponents as an exciting technology application that will transform supply chains into more effective systems, by reducing costs and enhancing supply chain capabilities. Skeptics view RFID as little more than upgraded bar codes that are unreliable and costly, lack common industry standards, and raise serious issues regarding consumer privacy. Given the views of these two camps, to what extent is RFID actually being embraced and adopted? Guided by a review of RFID-specific literature, field studies with firms at different stages of RFID implementation and structured interviews with senior-level supply chain practitioners were used to develop a survey instrument. This study compares actual RFID implementation efforts at four firms followed by a survey investigation of current and planned uses of RFID, and reasons that motivate the adoption of RFID. This research provides useful insights that will lead to better decisions about RFID adoption

    Offshoring Radiology Services to India

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    The interpretation of medical images by Indian radiologists is often used to show how offshoring can threaten a high skilled U.S. occupation as easily as a call center operator. In reality, the example is false. Using interviews and field observation, we describe the Indian teleradiology industry and its client countries and we explain the institutional factors that currently preclude threats to U.S. radiologists. Radiology is an “extreme” professional service with extensive reliance of tacit rather than codified knowledge. The importance of tacit knowledge leads to long training periods, a limited global supply of radiologists and heavy government regulation, all of which are obstacles to a “flat world”. Computerization of low-end diagnostic radiology ultimately poses a bigger threat to the profession than offshoring. We argue that the obstacles to extensive trade in radiology services apply in various degrees to other professional services as well

    The Impact of Globalization on the Forest Products Industry

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    In this paper we examine the hypothesis that changes occurring in the forest industry allow its full participation in globalization. The forest industry has undergone profound changes in recent years, largely because of new technologies. These changes have been directly observed by the researchers in the field in the form of intensively managed plantation forests; in laboratories where new techniques are being used to improve tree seeds; and in tree nurseries where the improved seeds are prepared for mass plantings. Traditionally, forestry was primarily an extractive industry that relied on local sources for its basic resource: raw, industrial wood. Today, however, intensively managed planted forests are replacing natural forests as the basic source of the wood resource and modern biotechnology is being applied to create trees that grow rapidly and have traits desired in industrial wood. These changes eliminate the traditional ties between forest product processing and locations with abundant natural forests

    Learning: What and How? An Empirical Study of Adjustments in Human Resource Systems

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    What information do firms use when they design their organizational structure? How do they learn what direction they should take? Generally, firms may learn from their own experiences and outcomes, as well as those of other firms. In the economics literature, learning from these sources has been investigated in conjunction with three theoretical strands: learning-by-doing, matching theory, and social learning. We construct a conceptual framework that incorporates these three strands and develop hypotheses about the effects of various factors on learning about adjusting one important element of organizational structure, the human resources system. We concentrate on four human resource systems: traditional (the simplest system), decision-making oriented, financial-incentives oriented, and high-performance (the most complex system). The hypotheses regard (1) the effects of learning-by-doing on adoption of more or less complex systems, (2) the shape of the performance-experience learning curves associated with different systems, (3) the match between perceived organizational capabilities and the degree of complexity of human resource systems, (4) the influence of other firms’ systems and the performance associated with them on a firm’s adjustment of its system, (5) the effect of a firm’s location on its adjustment decisions, and (6) the effects of various factors on the speed with which firms adjust their systems. We use a unique panel dataset of firms in Minnesota concerning decisions about adjustments in human resource systems, as well as about firm characteristics, geographic location and financial results. We obtain a rich set of findings: organizational learning is multifaceted, learning by doing one system does help with other systems, we replicate the famous learning curve only for the complex human resources system but not others, firms use changes in their performance as signals of their capabilities, and firms learn from other firms’ experiences. Larger and higher-wage firms learn faster to cope with complex systems, older firms learn slower, and firms located near a major metropolitan center adjust faster to more complex systems

    Analysis of the Potential for Delay Propagation in Passenger Airline Networks

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    In this paper, we analyze the potential for delays to propagate in passenger airline networks. The motivation for this research is the need to better understand the relationship between the scheduling of aircraft and crew members, and the operational performance of such schedules. In particular, when carriers decide how to schedule these costly resources, the focus is primarily on achieving high levels of utilization. The resulting plans, however, often have little slack, limiting the schedule's ability to absorb disruption; instead, initial flight delays may propagate to delay subsequent flights as well. Understanding the relationship between planned schedules and delay propagation is a requisite precursor to developing tools for building more robust airline plans. In this paper, we investigate this relationship using flight data provided by two major U.S. carriers, one traditional hub-and-spoke and one “low-fare” carrier

    Innovation Challenges in the Lighting Industry From 1990 to 2006

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    The lighting industry faces major competitive challenges with the introduction of new solid-state lighting technologies. Solid-state lighting’s greater energy efficiency, lifetime, and other features have led to widespread adoption in backlights, traffic lights, signs, and automobile brake lights, and the technology is targeted to replace ordinary white light bulbs beginning in 2010. The purpose of this study is to assess the state of the emerging solid-state lighting industry and the traditional lighting industry, probing implications for North American industry competitiveness, the location of R&D, and government policy. The methods of the study combined discussions with industry experts, review of trade literature and government policy, and analysis of industry statistics and patent data. Although the big three traditional lighting firms have invested substantially in solid-state lighting, many new firms in the United States, Japan and Taiwan are likely to participate in solid-state lighting. R&D in a reshaped lighting industry may shift somewhat away from the United States and to Asian nations. In Japan, Europe, and the United States, both government funded basic R&D and technology programs and diffusion spurred by energy costs and government incentives have helped aid ongoing developments. This paper reports findings of a study recently carried out for the National Academies, Board on Science, Technology, and Economic Policy. The Alfred P. Sloan Foundation, the National Academies, and the RPI Center for Future Energy Systems provided funding

    Balancing Intrapreneurial Innovation Vs. Entrepreneurial Spinoffs During Periods of Technological Ferment

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    The period immediately after a technological discontinuity allows an innovative startup to exploit a period of ferment and great uncertainty. Meanwhile, mature innovators must develop intrapreneurial capabilities to compete with these new entrants. Using multiple data sources, we examine the innovation capabilities of Linkabit, a firm that exploited the opportunities related to digital communications, and how those capabilities were transferred to informal spinoffs which formed at twice the rate of Fairchild Semiconductor. We discuss the contingent value of innovation capabilities for early stages in a technological regime, as well as the conflicting goals of intrapreneurial development vs. restraining entrepreneurial exodus

    The Power of Integrality: Linkages Between Product Architecture, Innovation, and Industry Structure

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    A substantial literature stream suggests that many products are becoming more modular over time, and that this development is often associated with a change in industry structure toward higher degrees of specialization. These developments can have strong implications for an industry’s competition as the history of the PC industry illustrates. To add to our understanding of the linkages between product architecture, innovation, and industry structure we study an unusual case in which a firm – through decreasing its product modularity – turned its formerly competitive industry into a near-monopoly. Using this case study we explore how existing theories on modularity explain the observed phenomenon, and show that most consider in their analysis technological change in rather long-term dimensions, and tend to focus on efficiency related arguments to explain the resulting forces on competition. Expanding on these theories we add three critical aspects to the theory construct that connects technological change and industry dynamics. First, we suggest re-integating as a new design operator to explain product architecture genesis. Second, we argue that a finer-grained analysis of the product architecture shows the existence of multiple linkages between product architecture and industry structure, and that these different linkages help explain the observed intra-industry heterogeneity across firms. Third, we propose that the firm boundary choice can also be a pre-condition of the origin of architectural innovation, not only an outcome of efficiency considerations

    The Evolving Indian Offshore Services Environment: Greater Scale, Scope and Sophistication

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    Since 1995, the offshoring of administrative, technical and software services to India has rapidly evolved from an insignificant curiosity only studied by a few scholars of international development to a major issue discussed by many in the United States and Western Europe. India’s position has expanded and evolved in terms of numbers of employees, the types of service activities, and the sophistication or value-added of the work. This paper argues that two separate but related ecosystems have recently emerged in India to provide services and, more recently, high technology products for the global economy. The first ecosystem is for service provision. Here we suggest that today the service provision ecosystem is so sophisticated that it can endogenously create new service offerings and attract overseas firms to transfer activities in new industry verticals. The second ecosystem, which is smaller and only recently emergent, is gestating new venture capital-financed, technology-based startups. We provide a typology of these firms and suggest that some have bi-national roots linked to the U.S. Silicon Valley. Finally, we explore the possibility that the leading Indian information technology systems integrators may have created a new business model that is superior to that of the incumbent Western service providers. We believe that the Indian offshore service provision infrastructure will grow in size, complexity, and importance to the world economy

    Fending Off Commoditization and Softening Competition Through Strategic Boundary Design

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    Designing a firm’s boundaries can lead to substantial strategic regeneration. But the question is, how? Moving beyond transaction-level analysis, we consider how the design of the firm’s overall boundaries (rather than individual make-vs-buy choices) yield strategic advantages in addition to organizational benefits. We do so through in-depth analysis of a European textile manufacturer that disaggregated its vertical structure without changing its overall scope. We discuss how the change in value proposition from integrated final good provider, to outsourcee delivering a series of intermediate goods and services, yielded real benefit in a saturated market. We highlight the major strategic benefits of this vertical disaggregation, and consider how it changed both strategic prospects and industry dynamics. We show that this new structure allowed the firm to transform its monolithic structure into a vertically agile layout, enabling it to reconfigure the scope of its offerings to customers and, ultimately, to use reconfigurability as a strategic tool to fend off commoditization and segregate markets to soften the effects of competition. We identify the critical role of IT as a factor enabling the new flexible structure. We show that, in contrast to our expectations and the literature, it is architectural technologies such as ERP systems, rather than the technologies linking firms (such as EDI systems), that enable reconfigurable modular structures. We examine the conditions under which such flexible vertical structures may be effective, identifying high maturity and low appropriability in our setting. We conclude with implications for theory and practice

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