THE DIFFERENTIAL IMPACTS OF MARKETS FOR TECHNOLOGY ON THE VALUE OF TECHNOLOGICAL RESOURCES: AN APPLICATION OF GROUP-BASED TRAJECTORY MODELS
By Deepa Mani, Anand Nandkumar
Strategic Management Journal | January 2016
DOI
onlinelibrary.wiley.com/doi/full/10.1002/smj.2457
Citation
Mani, Deepa., Nandkumar, Anand. (2014). THE DIFFERENTIAL IMPACTS OF MARKETS FOR TECHNOLOGY ON THE VALUE OF TECHNOLOGICAL RESOURCES: AN APPLICATION OF GROUP-BASED TRAJECTORY MODELS Strategic Management Journal onlinelibrary.wiley.com/doi/full/10.1002/smj.2457.
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Strategic Management Journal, 2014
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Abstract
We study how the influence of technological capabilities for performance is contingent upon the environment that a firms sells its output. In addition, we also demonstrate the usefulness of a novel statistical technique called the Group Based Trajectory (GBT) model for empirical strategy research. With GBT and using a novel dataset of Indian pharmaceutical firms, we study how relative impact of product (innovation) capability and process (innovation) capability varies for an exporter versus a firm that predominantly operates in the domestic market. While technological capability in general is valuable for performance, it is more valuable for an export intensive firm than to a domestic oriented firm. Moreover, while product capability is more valuable for a domestic oriented firm, process capability is more valuable for an export intensive firm. While our results demonstrate the importance of a key resource for competitive advantage as the RBV suggests, they also demonstrates that the value of a specific capability is contingent upon the environment.

Professor Deepa Mani is Professor of Information Systems and the Deputy Dean of Academic Programmes & Digital Learning at the Indian School of Business. Deepa’s research interests are at the intersection of technology, organisation, and society. She has demonstrated significant thought leadership on the business and policy implications of technological innovations and investments. Her research articles have been published in leading academic journals and extensively featured in refereed conference proceedings, edited book chapters, and popular media outlets. Deepa serves as a Senior Editor at Information Systems Research. Deepa’s research has also had widespread impact on business practice and policy. In recognition of her impact, she was awarded the prestigious INFORMS Information Systems Society (ISS) Practical Impacts Award in 2022.

Deepa has been appointed to serve on several expert committees of the Central and State governments to provide guidance on policies for the digital economy, digital interventions in key sectors, and catalyse grassroot impacts using technology. She also extensively coaches organizations, keynotes corporate leadership events, and conducts executive education in the areas of digital business models, digital transformation and technology product management.

Deepa completed her undergraduate education at St. Stephen’s College, Delhi University, Masters in Information Systems from Carnegie Mellon University, Pennsylvania, and her doctorate in Information Systems from the University of Texas, Austin.

Deepa Mani (1)
Deepa Mani

Anand Nandkumar is an Associate Professor of Strategy, Executive Director of SRITNE at the Indian School of Business (ISB), and Associate Dean of the Centre for Learning and Teaching Excellence. He explores industry and firm-level phenomena that influence innovation - the generation of new ideas, and entrepreneurship - distribution and commercialisation of new ideas. His research focuses on high-technology industries such as pharmaceuticals, biotechnology, and software, and it falls in between industrial organisation (IO), economics of technological change, and strategy.

Professor Nandkumar’s current work in the innovation stream examines the effect of stronger intellectual property rights (IPR) on different aspects of innovation, such as the influence of stronger patents on long run incentives for innovation or the influence of stronger patents on the functioning of Markets for Technology (MFT). In the entrepreneurship stream, his current work examines the influence of venture capitalists on entrepreneurial performance.

Professor Nandkumar graduated with a PhD in Public Policy and Management, with a focus in strategy and entrepreneurship from Carnegie Mellon University in 2008. Prior to his PhD, he worked for 3 years with a startup in Silicon Valley, and prior to that, in New York City with one of the world’s largest financial services firms.

True to his expertise, at ISB, Professor Nandkumar teaches Strategic Innovation Management and Strategic Challenges for Innovation-based startups.

Anand Nandkumar
Anand Nandkumar