Research on Technology Strategy

Emerging technology strategy: Technology can dramatically affect new and existing companies and products. For example, a new technology, such as an online newspaper, could replace the printed version or conversely attract readers to it. In another example, existing companies like Cisco frequently acquire technology startups. But should they buy them early while they are young and cheap? Or wait until the technology is proven? Should companies "look before they leap" or is it that "he who hesitates is lost"?

Some current and recent projects are:

    Impact of new technology introduction:
    (with Eric Overby) What effect does the introduction of a new technology have on an existing technology? We find a key factor is whether the new technology is used as a supplement or a substitute. A report from this research appeared in MIS Quarterly. Download
    Value creation from technology acquisition:
    (with Saby Mitra) How is value created when a technology firm is acquired? Does it matter if the acquired firm is young or old? We examine this question through a study of market reactions to acquisitions in the telecommunications industry. A report from this research appeared in Management Science, vol. 56, no. 11, pp. 2076-2093, 2010. Download
    Coordination and Dynamic Promotion Strategies in Crowdfunding with Network Externalities:
    (with Allen Li and Jason Duan) Crowdfunding, a peer‐to‐peer fundraising mechanism, solicits capital from individual backers to support entrepreneurial projects. Entrepreneurs set a funding target and deadline; the project will be funded only if it reaches this funding target by the deadline. Backers individually decide whether to contribute, but their total contributions collectively determine whether the project will be successfully funded. This paper models the dynamics of backers’ contributions in the presence of success uncertainty and analyzes managerial promotion strategies to maximize the likelihood of funding success. Two opposing forces affect backer decisions: backers are more likely to back a project that has already reached a greater fraction of its funding goal (positive externalities), but the backing propensity declines over time (negative deadline effects). These two competing forces give rise to a time‐dependent critical threshold of funding that a project must attain to achieve successful funding. We evaluate actionable promotion strategies (when to promote the project and how much promotion effort to spend) for entrepreneurs to dynamically manage their crowdfunding campaigns. A report from this research appeared in Production and Operations Management. Download
    Learning from failure:
    (with Drew Hess and Frank Rothaermel) While failure is typical considered bad, we examine learning aspects of early and late stage project failures in the pharmaceutical industry. [Contact me for a working paper.]