Knowledge integration between technical change and strategy making

This paper looks at the different strategies that two of the tire industry’s most prominent players, Pirelli and Michelin, deployed to exploit a radical process innovation: robotized, modular manufacturing. This paper argues that Pirelli, originally the technological follower, could develop a more n...

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Bibliographic Details
Published inJournal of evolutionary economics Vol. 31; no. 5; pp. 1521 - 1552
Main Authors Brusoni, Stefano, Cassi, Lorenzo, Tuna, Simge
Format Journal Article
LanguageEnglish
Published Berlin/Heidelberg Springer Berlin Heidelberg 01.11.2021
Springer Nature B.V
Springer Verlag (Germany)
Subjects
Blocking
Collaboration
Comparable worth
Connectivity
Corporate image
Economic Growth
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Entrepreneurship
Humanities and Social Sciences
Innovations
Institutional/Evolutionary Economics
Knowledge
Market positioning
Microeconomics
R & D/Technology Policy
Regular Article
Social networks
Technology
Verbal communication
Cohesion
Social networks
Innovation
Knowledge integration
032
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Summary:This paper looks at the different strategies that two of the tire industry’s most prominent players, Pirelli and Michelin, deployed to exploit a radical process innovation: robotized, modular manufacturing. This paper argues that Pirelli, originally the technological follower, could develop a more nuanced, complex and ultimately successful strategy thanks to its superior knowledge integration capabilities. Empirically, we examine the structural characteristics and evolution of inventors’ networks in the two companies to reveal their knowledge integration capabilities. We apply the cohesive blocking method developed by White and Harary (Sociol Methodol 31(1):305–359, 2001 ) to argue that Pirelli, while relying on comparable skills in terms of technical fields, leveraged a more connected, cohesive and structured skills than Michelin. On this basis, it could develop and deploy a more complex strategy that better fit the characteristics of the new process technology. Pirelli’s knowledge network structure enhanced its knowledge integration capabilities and allowed for a more efficient fit between technology and strategy.
ISSN:0936-9937
1432-1386
DOI:10.1007/s00191-020-00706-3