When network effects are important and technology is rapidly improved, this study explores the relative optimality of five product introduction strategies of a durable goods manufacturer: (1) replacement, (2) skipping, (3) a delayed line, (4) shelving, and (5) line‐extension. Using a two‐period analytical model, we show how the type of compatibility—either full or backward compatibility—and the magnitude of the network effect influence the manufacturer's preference for the above strategies. Our analysis reveals that only the strategies (1)–(3) above can be optimal; and the optimal strategy varies with network strength. Further, the type of compatibility can dramatically change the profitability under each optimal strategy; for instance, while backward compatibility can increase the profitability of replacement under certain conditions, it always reduces the profitability of a delayed line. We also illustrate that if compatibility were a choice, although backward compatibility may be observed widely in practice, the parametric region for its optimality is relatively more restricted than that of full compatibility.
United States based companies have invested more heavily in cloud services than companies in other nations. Despite numerous benefits claimed by cloud service providers, many organisations are still uncertain about the implementation of cloud computing. The aim of this study is to gain a better understanding of the factors that are important to the usage adoption decision of this information technology delivery model and the implications for organisations in the United States. Decision makers were surveyed to discover which attributes were important in their determination of cloud computing utilisation. Using a sample of executives from manufacturing and service sectors in the United States, multiple factors contributing to the recent growth in cloud computing have been identified using a factor analysis. Four factors emerged from the data analysis include extrinsic motivation, intrinsic motivation, perceived risks, and resource constraint.
In today’s changing and intensely competitive global environment, postsecondary educational programs must find ways to adapt their method of delivery to meet the educational expectations of students and talent needs of “real-world” employers. This is especially true in the evolving field of supply chain management (SCM). The purpose of this qualitative study was to assess the effectiveness of the SCM Applied Learning Center (referred to as the “Center”) at a Midwestern university in the United States by understanding its perceived value through its stakeholders—that is, participating companies and students. This understanding was achieved by interviewing stakeholders who used the Center during its initial 18-month rollout period. The data analysis from this study resulted in the emergence of the following themes: (1) developing transferable skills, (2) accelerating applied learning, (3) cultivating personal relationships, and (4) supporting business improvement. The establishment of the Center and the corresponding results from this study contribute to the literature associated with university–industry collaboration, SCM education, and the evolving role of higher education. This work provides a template to programs interested in improving their working relationship with business partners through the implementation of comparable industry collaboration activities, while at the same time providing skill improvement opportunities for their students.
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