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ESSAYS ON INNOVATION STRATEGY: RECONCILIATION OF FACTOR MARKET AND PRODUCT MARKET STRATEGIES

Lee, Yeolan
http://rave.ohiolink.edu/etdc/view?acc_num=osu1373885061

Abstract Details

2013, Doctor of Philosophy, Ohio State University, Business Administration.
This dissertation is comprised of in depth analysis on the broader topic of corporate innovation strategy, which identifies the mechanisms of how firms' factor market strategies shape product market strategies and consequent economic performance. The first chapter builds mathematical models, which show the performance implications of research and development (R&D) mode choices in connection with product market entry strategies. The second essay looks at the economic outcomes of the combination of various choices regarding R&D mode, time-to-market, and product innovativeness based on the pharmaceutical firms' new drug development data. The final essay investigates a fundamental question of this dissertation, specifically, how firms evolve their factor market and product market strategies in response to rivals' actions. Existing studies on the factor market strategy emphasize the use of an appropriate form for R&D to obtain high economic performance (Williamson, 1979). Research on the product market strategy, on the other hand, focuses primarily on the implementation of effective entry strategies to obtain high performance (Lieberman and Montgomery, 1989). Although numerous existing studies have found interesting implications regarding factor market or product market strategies, little effort has been made to reconcile these two types of the corporate innovation strategy. This dissertation investigates the simultaneous effects of factor and product market strategies on economic performance. In the models of this dissertation, firms can choose an R&D mode between in-house and in-license as part of their factor market strategies. For product market strategies, firms can decide on the timing of their new product introduction and the performance of the new products. This dissertation creates these choice sets and examines which choice set leads firms to obtain the highest economic performance. Moreover, a theoretical framework is provided, which explains how both factor market rivalry and product market rivalry evolve over time by interacting with each other. Many prior studies on product market rivalry have documented the existence of mutual forbearance between firms that share overlapping product markets. However, the impact of factor market rivalry on firms' behaviors has been less focused in prior studies. This paper fills this gap in existing research by investigating the impact of factor market and production market rivalries on the entry decisions of firms.
Jay Anand (Advisor)
Jay Barney (Committee Co-Chair)
Ashton Hawk (Committee Member)
Sharon James (Committee Member)
122 p.
Business Administration
Time-to-market, Product market rivalry, factor market rivalry, product innovativeness, new product development, endogenous growth model, Yeolan Lee, Pharmaceutical industry

Recommended Citations

Citations

  • Lee, Y. (2013). ESSAYS ON INNOVATION STRATEGY: RECONCILIATION OF FACTOR MARKET AND PRODUCT MARKET STRATEGIES [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1373885061

    APA Style (7th edition)

  • Lee, Yeolan. ESSAYS ON INNOVATION STRATEGY: RECONCILIATION OF FACTOR MARKET AND PRODUCT MARKET STRATEGIES. 2013. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1373885061.

    MLA Style (8th edition)

  • Lee, Yeolan. "ESSAYS ON INNOVATION STRATEGY: RECONCILIATION OF FACTOR MARKET AND PRODUCT MARKET STRATEGIES." Doctoral dissertation, Ohio State University, 2013. http://rave.ohiolink.edu/etdc/view?acc_num=osu1373885061

    Chicago Manual of Style (17th edition)

osu1373885061
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This open access ETD is published by The Ohio State University and OhioLINK.