The Dynamics of Resource Competition: Implications for Firm and Industry Components of Returns

Working Papers

How do ex ante similar firms develop heterogeneous resource positions that lead to persistent performance differences, even among direct competitors? The model in this paper shows that resource competition drives amplification of small differences in resource positions into large performance differences.Read More

Do Consumers Value Price Transparency?

Published Research

We examine the role of price transparency in consumer preferences and demand. We assemble a detailed dataset on the driving school industry in Portugal to quantify how firms present the price of the course of instruction, and its individual components, to potential students.Read More

Vying for Amazon HQ2: Wharton and Philadelphia Come Together to Woo the Tech Giant

Pictured: Winning teams (Team Wharton Prime and Team Delphi) and judges The Mack Institute for Innovation Management co-sponsored the Amazon to Philadelphia Case Competition for Penn students to analyze why Amazon should locate their new headquarters in Philadelphia. The event brought together Penn and Wharton faculty, students, and the cityRead More

Plant Operations and Product Recalls in the Automotive Industry: An Empirical Investigation

Published Research

While there is overwhelming support for the negative consequences of product recalls, empirical evidence of operational drivers of recalls is almost nonexistent. In this study, we identify product variety, plant variety, and capacity utilization as drivers of subsequent manufacturing-related recalls.Read More

A Typology of R&D Processes Based on Market Excludability and Information Appropriability 

Working Papers

We explore the relationship between competition among downstream commercializing firms (e.g. incumbent pharmaceutical firms) and upstream innovative firms (e.g. startup biotechnology firms). We find that in an alliance regime, common in high technology industries, competition among the commercializing firms can reduce the productivity of the innovators, resulting in a net loss of societal welfare (e.g. less drugs invented and brought to market). Read More

Conflict, Cooperation, and Consensus in Standards-Setting

Funded Research Proposal

We study how firms simultaneously engage in competition and cooperation in technology standard-setting multipartner alliances. Departing from prior research that has typically explored competition in isolation from cooperation, we bridge these two literatures by examining firm communication and community consensus in these venues.Read More

Strategy, Human Capital Investments, Business-Domain Capabilities, and Performance: A Study in the Global Software Services Industry

Published Research

In knowledge-based industries, continuous human-capital investments are essential for firms to enhance capabilities and sustain competitive advantage. However, such investments present a dilemma for firms, because human resources are mobile.Read More

Competition-Cooperation Interplay During Multiparty Technology Coordination: The Effect of Firm and Community Heterogeneity on Consensus Standards Formation

Working Papers

We study how competitive and cooperative motivations simultaneously shape firm-level interactions and community-level outcomes in a unique multiparty arrangement, the technology standards-setting organization (SSO).Read More

Agency Selling or Reselling? Channel Structures in Electronic Retailing

Published Research

In recent years, online retailers (also called e-tailers) have started allowing manufacturers direct access to their customers while charging a fee for providing this access, a format commonly referred to as agency selling. In this paper, we use a stylized theoretical model to answer a key question that e-tailers are facing: When should they use an agency selling format instead of using the more conventional reselling format?Read More

Competition, cooperation, and evolution in alliance networks

Funded Research Proposal

1) We examine the evolution of alliance networks by predicting ties and structure in the chemical and semiconductor industries. We compare our results to historical studies to determine how industry, timeframe, and method affect findings. 2) We explore the relationship between alliance networks and the locus of technological development which focuses on the standards-setting context.Read More

Do or die: Competitive effects and Red Queen dynamics in the product survival race

This study explores the reciprocal relationship between the nature and duration of competition, and innovation outcomes. We propose that the perpetually driven, reciprocal sequence of competitive action and reaction known as the “Red Queen” in evolutionary biology is a cardinal force behind the success of innovations.Read More

Business model configurations and performance: A qualitative comparative analysis in Formula One racing, 2005-2013

We investigate the business model configurations associated with high and low firm performance by conducting a qualitative comparative analysis of firms competing in Formula One racing. We find that configurations of two business models — one focused on selling technology to competitors, the other one on developing and trading human resources with competitors — are associated with high performance.Read More

Learning by Doing and Product Differentiation in the Solar Panel Installation Industry

Funded Research Proposal

Public incentives for innovation in green technologies have appeared both on the supply side (grants for basic research or industry subsidies) and on the demand side (consumer rebates). There are plenty of examples of such governmental programs among renewable energy, electric vehicles, and energy efficiency technologies.Read More

Reversing course: Competing technologies, mistakes, and renewal in flat panel displays

Published Research

The study explores renewal in a novel but understudied context—an era of ferment with competing technological options. It focuses on IBM’s transition from market leadership in a failed path (plasma) to leadership in the emerging dominant technology (LCD) in the 1980s. Interviews and internal documents offer two primary factors explaining renewal at IBM.Read More

Adoption of Health Information Exchange: Understanding the Negative Externality

Working Papers

This project aims to investigate industrial organization issues related to adoption of health information exchange (HIE) technology. The paper proposes a novel model of providers’ decisions to participate in HIE. This paper focuses on an unexplored and potentially important barrier – a first-mover disadvantage from lower switching costs.Read More

It’s Not All in the DNA: Penn Team Benefits from Mack Institute Sponsorship in Synthetic Biology Competition

iGEM Penn Team

Spring semester may be over, but for a small group of Penn students, the lab is now their second home. This year, the Mack Institute is once again sponsoring Penn’s International Genetically Engineered Machine (iGEM) student team.  iGEM is a large undergraduate synthetic biology competition in which students use standardRead More