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Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Technovation, Volume 26, Issue 12, December 2006, Pages 1390–1406
This paper discusses a framework of the strategy-making process for executing and continuing both the building of a new, ongoing market position and the acquisition of new capabilities so that a corporation could achieve innovation in the future. This paper describes the case of high-tech corporations in the field of Information and Communication Technology which is undergoing intense change in Japan. This paper also would like to present a new viewpoint on knowledge-based theory of the firm based on data obtained from qualitative research into the time series strategy-making process over the past 11 years. These corporations successfully introduced new products and services to the market through a spiraling knowledge integrating approach through networked knowledge communities as a dynamic view of strategy aimed at deliberately and continually creating new markets.
Corporations naturally need to upgrade their capabilities in response to changes in their environment (market and technology). In the field of digital products for the consumer (large-screen LCD or plasma televisions, DVD recorders, digital cameras, etc.), for example, Japanese corporations such as Matsushita Electric, Canon, Sharp, and Sony have been upgrading their capabilities in the process of releasing new versions of products (two to three times a year on average) and expanding their product offerings. In recent years, these companies have been dominating the top three positions in global market share for this industry. These corporations have been able to maintain their competitive advantages in the digital products market due to the fact that they have been continually upgrading their technological capabilities (such as improving system LSI development, and adopting cell production methods aimed at cutting costs and improving quality) and process capabilities (building supply chains for global marketing, production, and support systems) while customer needs for digital products have been growing more diverse (focusing on quality, price, functions, etc.), technology has been evolving (bringing in particular greater functionality, lower power consumption, and greater miniaturization due to the development of system LSIs), and the competitive environment has been changing (caused in part by cost competition from Korean and Chinese companies such as Samsung and Haier). In the field of third-generation (3G) mobile phone services as well, in the Japanese market, NTT DoCoMo, KDDI, and Vodafone have been continually upgrading their technological and process capabilities and introducing new mobile phones and services to the market in their efforts to respond to changes in customer needs and advances in technology. Responding to this sort of environment by constantly and dynamically changing their own capabilities is vital for high-tech companies in the digital consumer product and mobile phone markets. This is also the dynamic capability approach that these companies need (Teece et al., 1997).