Wednesday, November 7, 2012

journal of manufacturing technology management


Journal of Manufacturing Technology Management

Citation: Sarah Lubik, Sirirat Lim, Ken Platts, Tim Minshall, (2013) "Market-pull and Technology-push in Manufacturing Start-ups in Emerging Industries", Journal of Manufacturing Technology Management, Vol. 24 Iss: 1. Article type: Research ...

Journal of Manufacturing Technology Management

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Author(s):Sarah Lubik, (University of Cambridge), Sirirat Lim, (University of Cambridge), Ken Platts, (University of Cambridge), Tim Minshall, (University of Cambridge)

Citation:Sarah Lubik, Sirirat Lim, Ken Platts, Tim Minshall, (2013) "Market-pull and Technology-push in Manufacturing Start-ups in Emerging Industries", Journal of Manufacturing Technology Management, Vol. 24 Iss:

Abstract:Purpose - As traditional manufacturing, previously vital to the UK economy, is increasingly outsourced to lower-cost locations, policy makers seek leadership in emerging industries by encouraging innovative start-up firms to pursue competitive opportunities. Emerging industries can either be those where a technology exists but the corresponding downstream value chain is unclear, or a new technology may subvert the existing value chain to satisfy existing customer needs. Hence, this area shows evidence of both technology-push and market-pull forces. This paper focuses on market-pull and technology-push orientations in manufacturing ventures, specifically examining how and why this orientation shifts during the firm’s formative years.

Design/methodology/approach - A multiple case study approach of 25 UK start-ups in emerging industries is used to examine this seldom explored area. We offer two models of dynamic business-orientation in start-ups and explain the common reasons for shifts in orientation and why these two orientations do not generally co-exist during early firm development.

Findings - We found separate evolution paths for strategic orientation in manufacturing start-ups and separate reasons for them to shift in their early development. Technology-push start-ups often changed to a market-pull orientation because of new partners, new market information or shift in management priorities. In contrast, many of the start-ups beginning with a market-pull orientation shifted to a technology-push orientation because early market experiences necessitated a focus on improving processes in order to increase productivity or meet partner specifications, or meet a demand for complementary products.

Research limitations/implications - The implications of these findings are that both market-pull and technology-push start-ups contribute to emerging industries, in contrast to extant research which focuses mainly on technology-push companies for contributions to emerging sectors. Identification of the reasons for later transition in orientation also lend insight into the causes of early strategic evolution.

Practical implications - This work suggests policies regarding start-ups in emerging industries, which currently tend to focus on technology-push, may benefit from acknowledging and encouraging the contributions of entrepreneurial market-pull.

Originality/value - While a significant body of work exists regarding manufacturing strategy in established firms, little work has been found that investigates how manufacturing strategy emerges in start-up companies, particularly those in emerging industries.
 

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