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U N I V E R S I TAT I S O U L U E N S I S
ACTAC
TECHNICA
U N I V E R S I TAT I S O U L U E N S I S
ACTAC
TECHNICA
OULU 2010
C 362
Kari Sahlman
ELEMENTS OF
STRATEGIC TECHNOLOGY
MANAGEMENT
FACULTY OF TECHNOLOGY,
DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT,
UNIVERSITY OF OULU
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A CTA UNIVE RS ITA T I S O UL
C Techn i c a 36 2
KARI SAHLMAN
ELEMENTS OF STRATEGIC
TECHNOLOGY MANAGEMEN
Academic dissertation to be presented with
the Faculty of Technology of the Universitypubl ic defence in Tnning-sal i (Audit
Linnanmaa, on 12 August 2010, at 12 noon
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Copyright 2010
Acta Univ. Oul. C 362, 2010
Supervised byProfessor Harri Haapasalo
Reviewed by
Professor Dilek CetindamarProfessor Saku Mkinen
ISBN 978-951-42-6249-4 (Paperback)ISBN 978-951-42-6250-0 (PDF)
http://herkules.oulu.fi/isbn9789514262500/ISSN 0355-3213 (Printed)
ISSN 1796-2226 (Online)http://herkules.oulu.fi/issn03553213/
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Sahlman, Kari, Elements of strategic technology management
Faculty of Technology, Department of Industrial Engineering and Management,
Oulu, P.O.Box 4610, FI-90014 University of Oulu, Finland
Acta Univ. Oul. C 362, 2010
Oulu, Finland
Abstract
In an increasingly complex economic and social environment, high technology c
facing accelerating technological development and global technology-based compe
the critical role of technology in a competitive environment, strategic technology mimportant for enterprises. For the long-term success, companies must develop and
technological capabilities to create internal and external impacts within an amb
economic context.
In the absence of commonly agreed frameworks, elements of strategic technology
are discovered in this dissertation. The research is conducted in the context of hig
product companies, to develop a framework based on literature findings, and
qualitative information on enterprise practices.
For the framework development, integrated management theory is applied
technology management in strategic dimension. The framework consists ofstructu
and impacts categories, each having six main elements which contain several sub-c
In the research, perceptions of enterprise practitioners indicated that the entire fie
technology management is confusing and diversely practiced. The contribution of th
is benefiting practitioners by providing an outline to assist in defining and de
practices. For the main theoretical contribution, the framework unites strategic
organizational management, and technology management concepts in enterprise co
As a practical implication, it is suggested that companies should consider est
integrating strategic technology management as a distinguishing managerial discip
other organizational functions. Enterprises should consider defining and developing
structures and objectives for strategic technology management, to proactively mana
technology for competitiveness of the enterprise, and for sustainable developmen
economic environment.
In conclusion, the framework provides for scholars and practitioners a logica
elements of strategic technology management.
Keywords: strategic management, technology management
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To
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Preface
The motivation for a research has to stem from the needs of
companies and institutes involved.
In the autumn 2007, the researcher was assigned responsibility o
technology and architecture management practices for product te
Nokia Siemens Networks. The company was established in the spri
merger of Nokia Networks and Siemens Communications. The new cto start consolidation of the businesses and the companys resources
competitive business environment. The intent was to leverage the po
products and technologies as efficiently and effectively as possible. C
the researchers principal need was to gain comprehensive understan
strategic technology management is.
There are several means to acquire knowledge: learning by doi
training, reading books and conducting research. For the researche
evident that there is no single solution that would sufficiently serve
gaining knowledge on technology management. Therefore conductin
research, and making a doctoral thesis on strategic technology m
appeared feasible to increase personal knowledge on the subject.
For publicly funded institutes, like University of Oulu, it is
interact with the society to create innovations, promote competenc
and improve competitiveness of companies. Performance of un
measured, among other things, by the number of yearly graduates an
of publications. In this respect, conducting research provides oppo
publications, and also a possibility to involve the researcher in
management related courses to provide study topics and exercises for
The purpose of this dissertation is to serve the above mentioned dand to contribute to discussion on strategic technology management.
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Acknowledgements
Actually, it took some 23 years to complete this dissertation, for whic
PhD studies were remarkably intensive. Continuous learning and in
technology management related duties at Nokia and Nokia Sieme
since 1987 can in this respect be regarded as practical universit
Therefore I appreciate guidance, support and contribution of all m
colleagues and team mates during this time. For the latest stint, committed myself for three years, I wish to thank Lauri Oksan
Research at Nokia Siemens Networks, for a challenging task that he
me, and enabled participation in scientific conferences.
For the opportunity and support during my studies at the De
Industrial Engineering and Management in University of Oulu, I tha
Pekka Kess and all the personnel at the department. I thank Pe
providing me insights into strategic management.
For conducting the studies, I am indebted to my supervisor Pro
Haapasalo. We had all the time a grand plan, extremely focused para
ongoing, and we were able to proceed steadily in a timely mann
waste. To this process of becoming wiser as Harri phrases it Harr
with his respectable devotion, extraordinary conceptual talent and e
of life. The entire thesis process was really demanding, rewarding an
Thank you Harri, very much indeed.
I highly respect Dr Mike Gregory and Dr Robert Phaal from the U
Cambridge, for their ideas and work on technology management proc
During my one month study leave, I was able to make a short visit to
to work on a joint paper with Rob and his colleagues. The stud
financially supported by the Finnish Doctoral Program in Industrialand Management, which I sincerely acknowledge; it was a very mot
productive period. I also want to thank Dr Kari Hakkarainen fo
discussions on technology management. In the summer 2007,
enjoying the extra 2 weeks of summer holiday, granted after
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representatives who took part in the interviews deserve thank
time and knowledge. The almost 50 students, taking passignment during the technology management courses in the
the spring 2009, were of invaluable help in carrying out a
interviews. I want to thank warmly all of you for the good wo
For indispensable advice on writing journal papers, I wa
Editors Dr Binshan Lin from Lousiana State University,
Phusavat from Kasetsart University, Bankok, Thailand; Gunasekaran from University of Massachussets, USA;
reviewers of the papers for their constructive comments.
In many exhaustive but effective reviews Dr Pekka Belt
and Dr Matti Mttnen, the three musketeers from Universi
their insights into writing a dissertation summary. We revie
things, we read between the lines, and we even paid attentio
the dot ofet al., whether it is written in italics or in regu
practice definitely advanced the thesis summary writing
Janne and Matti, your contribution was priceless.
Pre-examiners of the thesis summary, Professor Dile
Sabanci University, Istanbul, Turkey and Professor Saku M
University of Technology, Finland also deserve many than
feedback to improve the summary.
I would like to thank my wife Jaana and our delightful b
daughters Marjo and Marjaana, as well all my relatives a
encouragement and support. Special thanks to my friend Pek
neighborhood, I always kept in mind one of the first comm
make a PhD: If you start it, you will surely finish it.
With all the good spirit enjoyed, one starts to think thawere right on their assumption that out there exists somethi
fun. And this something, undoubtedly, has incarnated in t
faithful companion, from water fetching agile tracking dog, o
Bacchus.
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List of original publications
This dissertation is based on the following publications:
I Sahlman K & Haapasalo H (2009) Elements of strategic management of
conceptual framework of enterprise practise. International Journal of Ma
Enterprise Development 7(3): 319337.
II Sahlman K & Haapasalo H (2009) Perceptions of Strategic Ma
Technology in Small High-Tech Enterprises. PICMET 2009 Proceeding
Portland, Oregon USA: 93104.
III Sahlman K & Haapasalo H (in press) Objectives of strategic ma
technology in a conceptual framework of enterprise practise. Internatio
Business Innovation and Research.
IV Sahlman K & Haapasalo H (in press) Impacts of strategic management
in a conceptual framework of enterprise practice. International Journal
and Learning.
The article I is already published, and the articles III and IV have go
double blind review process and have been accepted for Journal publ
forthcoming issues.
The article II has been published in the Conference Proceeding
International Conference on Management of Engineering and
(PICMET) in August 2009.
The author of this dissertation has been the main author of all
publications. The co-author has been in the role of reviewer and ad
structure, the logic and the contents of the papers as the super
dissertation and research work.
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Table of contents
Abstract
Preface
Acknowledgements
List of original publications
Table of contents
1 Introduction 1.1 Context and purpose of the research .......................................1.2 Scope and objectives ...............................................................1.3 Research approach ..................................................................1.4 Research process .....................................................................
2 Theoretical background 2.1 Strategic management .............................................................
2.1.1 Value creation and business model ...............................2.1.2 Strategy formation and execution .................................2.1.3 Competitive strategies ..................................................2.1.4 Technology strategy ......................................................
2.2 Organizational management ....................................................2.2.1 Key concepts of organizational management ...............2.2.2 Integrated management concept ...................................
2.3 Technology management ........................................................2.3.1 Key definitions .............................................................2.3.2 Schools of technology management .............................2.3.3 Technology management frameworks ..........................
2.4 Theoretical synthesis ...............................................................3 Research contribution 3.1 Framework for strategic technology management ..................
3.2 Structures category of the framework .....................................3.3 Objectives category of the framework ....................................3.4 Impacts category of the framework .........................................
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5 Summary References Appendix
Original publications
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1 Introduction
1.1 Context and purpose of the research
During the past century, competitive, economic and social envi
become increasingly complex due to rapid proliferation of info
accelerating technological development. Already one hundred years
Schumpeter (1961) proposed that technological change inducesevolution, fusion, and disruption of industries over time. Especi
technology industries, global technology-based competition forms
managerial challenge for enterprises. The fundamental question
strategically manage product offering, value system, product
competences and capabilities in the rapidly changing business and t
environment.
The operating environment is perceived as turbulent and c
technology has a significant role in productivity, innovations and bu
development. Companies are constantly struggling in adapting to
technology changes, and optimizing investments for new opportu
marketplace. Therefore, the underlying need for companies is the
creating and executing business and technology strategies for value
sustained competitiveness.
Enterprises have evolved from single function optimization of
marketing or research & development (R&D) to a multifunctio
orientation. The need to optimize the companys return on investm
performance as a whole, calls for strategic management capability in
(Ansoff 1979, Ansoff 1987.) Several schools of thought have emerg
aspects of market dynamics, competitive positioning and planningformation (Minztberg 1978, Porter 1980). The right strategy is
enterprises because the distinctive competencies and capabilities
created and developed through the execution of the strategies, d
competitive position and success of enterprises in the marketplace (L
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Linking strategic business management with technolog
into managerial challenges in enterprises, due to the disciplines. The attribute of strategic was added to tech
during the 80s by several authors (e.g. Bhalla 1987, Anso
Strategic technology management is expected to offer a p
managing ambiguity, complexity and business dynamics
technology. Consequently, a holistic concept of strategic tech
is needed to provide clarity for practitioners in the management. Thus, researchers must be able to combine
thinking and the demands of modern high technology industr
In this dissertation, the term strategic, in the con
management, is used to emphasize the linkage of technol
strategic management. Strategic management provides the
strategic technology management, which is the focus
Furthermore, the term strategic is used to distinguish
management as an own discipline separate from, for example
and innovation management which embed technology manag
topic is handled in the strategic dimension of the structure, pr
management theory of Bleicher (2004). Thus, strategic techn
positioned apart from normative management and operative m
In companies, technology management is often e
management, which is increasingly incorporating strategic
(e.g. Drejer 1997, Edleret al., 2002). Still, the main activity o
is to organize resources and manage operational R&D wo
decades, innovation management has become an extensive r
its own. Innovation research has created knowledge on th
itself, but does not provide a comprehensive framewmanagement practice. The major concern in innovation ma
recognize the value, and how to assimilate and apply knowle
products (e.g. von Hippel 1988, Pavitt 1990, Cohen & Levin
2001). Technology management relates to innovation m
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Profound understanding and capabilities on technology man
crucial for the companies, due to the critical role of technology in execution of company strategy (e.g. Burgelman et al. 2001, Chiaro
Dodgson et al. 2008). Scholars in the field of strategic mana
technology management have been studying technology managemen
years as a discipline of its own. Nevertheless, there are no commo
theoretical and practical frameworks for technology management
1997, Phaal et al. 2000, Phaal et al. 2004, Brent & Pretorius 2008, Cal. 2009b). Technology management is typically not organized in en
distinguishable managerial function, either.
The purpose of this research is to contribute to the discussion
technology management.
Technology management is related to several scientific discip
2000, Dodgson et al. 2008). These relations and the role of tec
exemplified, for example, in research of the following areas:
social and economic objectives, outcomes and evolution of indus
organizational structures and strategic management of enterprises
knowledge, information, innovation and engineering managemen
engineering practices, methods and tools
This dissertation on strategic technology management is positionediscipline of industrial engineering and management. The context of
has a specific focus on producttechnology within high technology en
1.2 Scope and objectives
Competitive environment of enterprises involves increasing comto rapid changes in economic, social and technological circumstance
effective capability on strategic technology management is crucial fo
Current state-of-practice within high technology enterprises indicates
in knowledge and practices of strategic technology managemen
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In the absence of commonly agreed frameworks for
management, the intent of this research is to create a thdescribes elements of strategic technology management. Fo
research, and to outline the scope of the research,
management is defined as:
Strategic management of technology is manageme
activities, interacting with companys technology infras
economic environment, to contribute to formulation acompanys strategy. (Sahlman &Haapasalo 2009a)
Strategic technology management activities have to be linked
the company. The purpose is to combine technology and b
the scope of strategic management. Ordinary strategic m
typically focus on business and product aspects of a compan
technology management emphasizes the connection and
business aspects to technology subjects. The research obj
theoretical model that distinguishes elements of strategic tech
while enabling integration of the elements within the
management in an enterprise.
The research results are assumed to be applicable, i
technology enterprises. Thus, the framework is meant to aconscious and systematic development of strategic tech
practices in enterprises. The framework is also intended to p
for further amendment by scholars in the field. The gene
research can be summarized as an intention to create a theor
provide structure to the topics of strategic technology mana
presentation, communication and discussion among practitionIn order to derive adequate research questions, suitab
needed to dismantle the research problem into relevant
management. Obviously, there would have been several alter
for the study, for example, process view, capability view, an
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The integrated management model contains normative, s
operative management viewpoints to structures, objectives and beorganization. Conceptually, it provides vertical integration of normat
and operative dimensions, and horizontal integration of structures, o
outcomes of the operational activities. The principles of th
management concept are described in more details in Chapter 2.2.2.
This kind of integrated management viewpoint entity exists in o
theory, but does not exist in technology management to comprehensithe issues. Consequently, the integrated management model of Ble
was selected as the starting point for the framework development. In
the focus is to discover elements of technology management in
management dimension. From a technology management point of vie
management is assumed to contain management of operative activitie
the actual tasks of technology management, for example, man
roadmap creation, technology forecasting activity, or creation of
strategy. Normative management dimension is assumed to conta
institutional and cultural factors and policies related to technology m
for instance, whether a company has its own R&D, structure for cen
decentralization, policies towards intellectual property acquisition, pr
licensing, fostering innovative culture, or development and utilizatio
processes. Normative and operative dimensions are excluded from
this research.
Accordingly the research problem was approached through
questions listed in Table 1.
Table 1. Research questions and related articles.
RQ#Research questionRQ1What are the elements of strategic technology management and how to categorize th
into a framework?
RQ2What are the structures of strategic technology management as elements of theframework?
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management framework. Theoretical contributions and man
of these articles are presented in this dissertation summary.Article I lays the overall foundation for the framework, a
principles and the initial main categories. Articles II, III
describestructures, objectives and impacts categories of the f
of the framework is adopted from the integrated managem
Bleicher (2004). The overview of the framework and the re
are presented in Figure 1.
Fig. 1. Positioning of the articles in the framework as outline of th
1.3 Research approach
STRATEGIC
MANAGEMENT
STRUCTURES OBJECTIVES
NORMATIVE MANAGEMENT
OPERATIVE MANAGEMENT
ARTICLE I
ARTICLE II ARTICLE III A
STRATEGIC
MANAGEMENT
STRUCTURES OBJECTIVES
NORMATIVE MANAGEMENT
OPERATIVE MANAGEMENT
ARTICLE I
ARTICLE II ARTICLE III A
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of the scientific knowledge influence the selection of the research a
methodology. Consequently, the research approach affects the research questions. In practice, availability of time, money, researc
materials, peoples knowledge and interest in the research affect
approach.
The following rationale explains the research approach u
dissertation. The main considerations are presented in Table 2.
Table 2. Key considerations of the research approach.
Topic Approach ExplanationOntology Pragmatism Knowledge has representation in objectivistic-rati
Knowledge created is subjective and conceptual i
framework for strategic technology management.Logic of reasoning Mainly abductive Inference to find best possible explanation for theType of research
Explorative &Descriptive
Clarifying understanding, seeking insights to the s
Type of data Qualitative Using qualitative data to describe the subject.Method to obtain
dataQuestionnaire
Literature
Documents
Obtaining qualitative data on the subject through
literature study and documents of an enterprise.
Ontological perspective to the objective or subjective reality un
determines the research paradigm and the choice of theoretic
(Saunders et al. 2007). In this research, ontology is pragmatic:
provides subjective knowledge which has a representation in objec
reality. It is assumed that explicit and tangible objects represent
rationalist reality, whereas intangible objects represent informatio
reality. These objects can be, for example, products, document
information on organizational structures and objectives, informatio
economic circumstances or technological phenomena, or un-codified
The research problem and objectives of the research have to b
when selecting the research approach and making the research desi
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resources and availability of information, and due to re
enterprises to make observations, these approaches were abathe entire subject was considered to be extremely vag
hypothetical framework for deductive testing of the hyp
abductive approach was selected to gather understand
knowledge that represents the objective reality, in the form o
and perceptions of industry practitioners.
Abductive reasoning is a suitable approach in qualitativ
enables theory building through simultaneous data co
development (Dubois & Gadde 2002). The objective of abdu
gain understanding on the subject or phenomenon und
development (Arlbjrn & Halldorsson 2002). The develop
correspond empirical observations is called theory matc
combining. Thus, there is interaction during the theory d
empirical study. The iterative process contains creative elem
learning aiming to increase understanding of the subject
Dubois & Gadde 2002, Kovcs & Spens 2005). In this proce
creatively contribute on theory building by allowing the f
despite the preconceptions (Dubois & Gadde 2002). To allo
framework during abductive reasoning, inference is explored
information for possible explanation to the object under stud2002).
According to Saunders et al. (2007) exploratory and de
well suited to clarify understanding and to seek for new in
under study. In this research, literature and perceptions of en
is explored to describe elements of strategic technology
theoretical framework. In the abductive approach, the reinvolved in the research process in theory building and seekin
to the nature of the data on conceptual knowledge to be coll
researchers role in the process, the knowledge created
subjective. As theoretical frameworks and concepts of tech
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Yin 2003). Accordingly, structured interviews in high technol
companies were selected as the main method for collecting data.It was also known that certain materials concerning the topics un
were available and accessible in the company where the researcher
The materials were considered to be suitable to allow the use of t
theory method, for theory building of one part of the framework.
theory, the theory emerges from the process of data collection
(Glaser & Strauss 1967, Strauss & Gorbin 1990). In the metho
explored without a predetermined framework, although preconceptio
in order to estimate what kind of data has to be available and what as
for from the data. These aspects are the interests of the research subje
the research findings meaningful for the research purpose. Th
presented by Strauss & Gorbin (1990) allows the use of preliminary
process of finding the best explanation to the phenomenon is mainly
also acknowledges the subjective nature of the research and involv
researcher during note taking, coding, memoing and sorting. Use
theory as qualitative method for one part of the research is appro
chosen research approach.
During the research design, the methodology for collecting and
data needs to be carefully considered to ensure reliability and va
results (e.g. Yin 2003, Saunders et al. 2007). According to Bryman &in qualitative research reliability and objectivity is about depen
conformability of the results. The researcher has to consider, ar
applicable at other times, and has the researchers own subje
influenced the results. Credibility relates to the internal v
transferability is concerned with external validity of the results,
credible the results are and whether they are transferable to another enThe entire field of technology management is extensive, and
topics there exists profound knowledge, methods and practices
Therefore, the scope of this research covers the viewpoints that ar
describe and define in the framework the elements that are relevant
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1.4 Research process
The research was conducted in four major phases involving i
and university personnel and students as research assistants.
study phase, a journal article was created about the entire fra
it. The overview of the proceeding of the research is presente
Starting from the original research problem, the first
studied to gain understanding on the key concepts and
frameworks on technology management. Based on lite
integrated management theory approach was considered
framework was outlined. In order to obtain practical view
workshops were arranged to elicit conceptions of industr
workshop findings confirmed that the entire field was confus
need for a conceptual model. Also, logical consistency of the
confirmed, and accordingly, the initial entire frameworkwas After the completion of the first research phase, the resea
research questions were refined for the subsequent study ph
and the impacts categories of the framework were decided t
qualitative questionnaires in high technology enterprises. Th
was decided to be derived from the available company mate
theory method.The initial framework model was used to derive a structu
the company interviews in the second study phase. T
conducted in small to medium-sized enterprises. This clas
selected as the target group to enhance the interviewee bas
framework was reflecting conceptions of large company
interview materials were analyzed and a study report was wri
findings. Consequently, the structures category of the ini
refined and validated in this study phase.
The third study phase was conducted using the material
which the researcher works. The materials were memoran
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R&D directors. The companies in which the interviewees ha
consumer and industrial electronics, telecommunications equcontracting services and SW products for mobile commu
customers and competitors globally. In the interviews, the fra
briefly presented, and for the evaluation, the category descri
and 8 were used. The interviews were held in Finnish lan
lettered. In the evaluation, scale from not relevant (1) to
(10), and not practiced (1) to well established (10) was
results and their averages are shown in Appendix 1. The res
phase are discussed in the summary chapter of research contr
and validity of the framework is discussed in Chapter 4.3.
Finally, the summary of the dissertation was created.
industrial involvement and the materials used in the research
there were 24 experienced industry representatives from 7 co
two workshops. In phases II and IV, interviews were carried
companies and involved 41 people. In phase III, materials f
were used covering 55 meeting minutes and 125 decision
matters. In the validation phase, 5 people were interviewed.
Table 3. Industrial involvement and the materials used in researc
Phase Part of the
framework
Nr. of
companies
Nr. of
persons
Nr. of
workshops
Nr. of
interviews
I Initial
framework
7 24 2 -
II Structures 18 25 - 18
III Objectives 1 - - -
IV Impacts 14 16 - 14
Validation Entireframework
5 5 5
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2 Theoretical background
Strategic technology management is related to several theoretical c
management disciplines. The body of knowledge in strategic
management is intertwined with abundant aspects of strategic m
organizational management, knowledge management, innovation
and R&D management (e.g. Steele 1989, Khalil 2000, Burgelman
Tidd et al. 2001, Schilling 2008, Dodgson et al. 2008). Each of the
large amount of detailed knowledge and diversely consistent empir
practices, concepts and theories. The entire field of technology ma
divergent, the boundaries of the concepts are blurred, and the kn
research interests differ remarkably in different parts of the world (
Teichert 2006, Cetindamar et al. 2009a). The theoretical founda
dissertation builds on the relevant concepts of strategic m
organizational management and technology management that provide
theoretical basis for the framework development. Therefore,
management, innovation management, and R&D management
excluded from the study scope. The focus of this dissertation
contributions for a strategic technology management school (see Dre
integrate business, technology and organizational aspects. The co
framework, as presented in Figure 3, is outlined essentially witstrategic management, organizational management, and existing
technology management.
In the large context, people as actors in environment, society and
form various stakeholder groups, for example, scientists, engineers, e
managers, consumers and individuals that engender knowledge,
wealth through their activities. In this context, an enterprise exist
creation on the basis of a legal agreement with the government rep
society. In enterprises, managed activities of people utilize tangible r
are derived from a physical environment to produce artifacts into the
and society. To close the loop, knowledge of nature and society i
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Fig. 3. Context for creating strategic technology management fra
2.1 Strategic management
Classically, companys strategy is defined by Chand
determination of the basic, long-term goals and objectives
the adoption of courses of action and the allocation of reso
those goals. Strategic management is concerned with the c
taken by the management, to create, enhance and sustain its c
its environment, and to reach the companys objectivConceptions on what is strategy and strategic managemen
fragmented over the years (Whittington 2001, Drejer 2
According to Nag et al. (2007), amongst strategic manag
implicit consensus definition for strategic management is: T
ENTERPRISE
ENVIRONMENT
ORGANIZ
ATIO
NALMANAGEMENT
man
agers,en
gine
ers,
etc
.
ARTIFA
CTS
TECHNOL
scientists,
KNOWLE
D
STRATEGIC MANAGEMENT
entrepreneurs, consumers, etc.WEALTH
FRAMEWORK
FOR
STRATEGICTECHNOLOGY
MANAGEMENT
ENTERPRISE
ENVIRONMENT
ORGANIZ
ATIO
NALMANAGEMENT
man
agers,en
gine
ers,
etc
.
ARTIFA
CTS
TECHNOL
scientists,
KNOWLE
D
STRATEGIC MANAGEMENT
entrepreneurs, consumers, etc.WEALTH
FRAMEWORK
FOR
STRATEGICTECHNOLOGY
MANAGEMENT
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management, people; knowledge, outcomes, and value creation, wh
reflection to the context of the framework for strategic technology maStrategic technology management attempts to address techno
matters contained in the field of strategic management. In the scope
management, Pilkington & Teichert (2006) identify seven research
core disciplines for technology management: strategy and technolo
technology management systems; sources of competitive strategy; m
operations and new product development; knowledge managemen
and patents management; life-cycles and discontinuities. In this dis
interest point is in linking strategy and technology by means
technology management within strategic management of an enter
following, strategic management themes of value creation and busi
strategy formation and execution, competitive strategies and technol
are discussed to form the theoretical foundation from a strategic
literature perspective, for the strategic technology management
development.
2.1.1 Value creation and business model
The purpose of an enterprise is to create value throughout the val
customers, owners, personnel and society (Ansoff 1979). In macscope technology and innovations within the value creation systems
source for productivity, economic growth and increasing weal
economic environment (Solow 1957, Denison 1962, Nelson & Winte
Council 1987). Furthermore, companies are affected by continuous t
developments and innovations that are changing the value creation
lead to the evolution of entire industries.For value creation, a company has to define and execute the strat
to develop the required capabilities regarding to customer, financ
processes and learning perspectives (Kaplan & Norton 2004). Thro
and execution of a certain strategy, the company is actually structurin
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The composition and involvement of technology in e
model elements determine the objects and aspects that management is concerned with in the enterprise context.
macro-economic scope, the paramount interest in s
management is to proactively manage technology of an ent
value creation, and survival amongst business model ch
evolution that are enabled by advancements in technology.
2.1.2 Strategy formation and execution
Strategy is crucial for value creation, long term success
company. Nevertheless, there is no common agreement o
strategy is and how to establish a successful strategy (e.g. Mi
1996, Markides 1998, Grant 2003). The main perspectives t
are the distinctive characteristics regarding to the strateg
rationale and focus of the strategy. The defined meta sch
rational, evolutionary, processual and systemic (Whittington
al. (2005) have defined and described three prescriptive
design, planning and positioning, and seven descriptive
entrepreneurial, cognitive, learning, power, cultural,
configuration. There is no clear empirical evidence which strprovides the best outcomes and how companies actually c
(Grant 2003). The main debate is about whether a succes
planned or should it be emergent.
During strategy formation, technology aspects must be co
technology is involved in all activities that constitute the com
(Porter 1985). Therefore, business and product strategy has matters, for instance, business and technology strategies h
ensure companys performance and competitiveness, or alter
strategy has to be derived from the business strategy (e.g. Bu
Momaya & Ajitabh 2005, Mei & Nie 2008, Dodgson et al. 20
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In the fast changing and unreliably predictable business and
environment, another challenge for the companies is management cfirms technological evolution (Ansoff 1987). Proliferation of tech
innovations in the market place, as well management of product lif
product substitution, enabled by technology, has to be mastered in co
Dewar & Dutton 1986, Foster 1986, Anderson & Tushman 1990,
Christensen 1997, Scott 2000). Therefore, due to the critical role of t
strategies of a company, the conduct of strategic technology ma
inevitable. These constituents of the business environment increas
complexity of strategy making and strategy execution (e.g. Bossid
2002, Mankins & Steele 2005, Sull 2007, Kaplan & Norton 2008).
2.1.3 Competitive strategies
For achieving its mission, long term goals and objectives in th
company executes a strategy, which may be prescribed or emergent.
approach to a companys strategy, as formed by Chandler (1962)
(1965), is based on rational analysis, separation of strategy m
execution, and profit maximization as the main goal of strategy. C
thinking is that companies have to consider also social, political, en
risks, security, sustainability and business continuation related aspstrategies and technology management (Thomsen & Pedersen 20
Pretorius 2008). The strategy determines the distinctive comp
capabilities that are critical for the companys success in execution o
and achieving the companys mission amongst competition (Learned
The main school of thought about competitive strategy is Porter
approach, which is about attempting to achieve a sustainable advantage for the company by preserving what is distinctive about
within the industry (Porter 1996). This means performing different
rivals, or doing things differently compared to rivals. Fundam
competitive scope and source of competitive advantage determines
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It has been argued that a competitive advantage canno
changing environment, and that it is the dynamic capabilitiecompanys success (Leonard-Barton 1992, Teeceet al. 1997,
2000). Dynamic capabilities are the organizational and s
which management develops, integrates and reconfigures th
the company has (Grant 1996). The resources are the p
organizational assets that a company utilizes for its valu
(Wernerfelt 1984). Strategies that are not resource based will
a turbulent industry environment. Eisenhardt & Martin (200
that resource based strategy collapses in unpredictable high
technology-based industries, knowledge is the major sou
advantage and success, and knowledge as a strategic resour
management paradigm for enterprises (e.g. Grant 1996, Hi
2008).
2.1.4 Technology strategy
Technology has to be connected with the firms business str
importance and relation of technologies to the companys
strategy. Also, technology must be connected to the firms
services and processes throughout its value chain activitieMeyer & Lehnerd 1997, Cooperet al. 1998, Burgelman e
2008, Dodgson et al. 2008).
In order to effectively react into technological changes,
capable of assessing dynamics of the life-cycle of the tec
intends to use, and recognize events that may lead into disru
& Tushman 1990, Henderson & Clark 1990, Christensen 19characteristics of technology have to be evaluated, devel
across the company, according to its technology, product and
Technology strategy is one of the key elements in
management. Technology strategy serves as the basis for b
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and importance of a technology strategy is often recognized in comp
existence of an explicit technology strategy varies even in highcompanies (Kropsu-Vehkaper et al. 2009).
The definition and purpose of technology strategy is quite unified
although every author has their own flavor in the definition. The a
varies enormously depending on industry, enterprise business cont
life-stage (Pavitt 1990). According to definition by Burgelman et
technology strategy is concerned with linking technology with
competitive strategies, and this can be the basis of the overall s
fundamental to integrate all areas of management of technological in
a coherent whole. Technology strategycomprises of the definition,
and use of those technological competencies that constitute the
competitive advantage (Dodgson et al. 2008).
Strategic approach for developing and leveraging technology de
competitive strategy that the company is pursuing. Depending on th
strategic intent, competitive position, resources and capabilities, it ha
strategic choices on how to direct its investments in technology, and
technology with business strategy. Competence and capability view t
strategy requires a company to take a position in its value cha
Accordingly, this leads into a need to balance investments in re
capabilities, and into decisions to consolidate, differentiate or div(Dodgson et al. 2008.).
Factors shaping the technology strategy comprise of internal
integrative and generative forces. These forces are in inter
organizational and industry context, strategic actions and technolo
(Burgelman et al. 2001). Determinants of technology strategy are pre
Figure 4.
Technology
Strategic
action
Organization
context
Internal
forces
Technology MarTechnology
Strategic
action
Organization
context
Internal
forces
Technology Mar
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Technical capabilities and competitive advantage of a comp
technology evolution, maturity, life-cycles, and compdestroying technological disruptions (e.g. Rothaermel &
industry structures, dominant designs (Utterback & Ab
complementary assets availability, standards, intellectual pro
protection have an essential impact to the pursued tech
business attractiveness.
In internal environment, strategic actions must overcom
and to react on external signals about technology evo
opportunities. Organizational context deals with manage
address exploitation of opportunities within existing st
opportunities that require strategy changes. The ability to
two is characterized by organizational agility and the culture
Kosonen 2008).
2.2 Organizational management
2.2.1 Key concepts of organizational management
Company management needs to define and conduct initia
objectives and long term goals to fulfill the mission of
initiatives are completed in organizations through people wh
through the management process. The generic functions of
are planning, organizing, leading and controlling (Robbins
Galbraith (1977: 3) defines organization as Organization
people and groups of people in order to achieve some share
division of labor, integrated by information-based continuously through time. Since the start of industrial rev
models of management and organizations have been deve
about division of work, decision-making, organizational stru
and peoples behavior and motivation in organization (e g M
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tasks and integration or coordination. The division of tasks can
function, process, and knowledge (Mintzberg 1983). The generorganizing are functional, divisional, matrix, and networks (
Integration or coordination is about management of activities that
various parts of an organization and co-ordination is needed to ac
organizations overall task (Mintzberg 1983).
Organizational structures and functional specialization hav
difficulties to work across the functional barriers. Consequently,
optimal degree of functional de-centralization versus integration or c
is a challenge in organizational design (Sherman 2004, Turkulain
addition to organizational design challenges, managers are also chall
need to possess a variety of competences, for conducting the mana
Managers in organizations need technical, human and conceptua
competences, and the relative importance of the skills varies a
managers level in organization (Katz 1974), which means that at th
of organization technical skills are emphasized.
Over the decades of the last century, companies have evolved
function orientation to multi-functional strategic orientation (Ansoff
movement is induced by increasingly accelerating industry evolution
of new business opportunities, and disruptions in the competitiv
driven by complex and indefinite technological development.optimization of a single function, companies need to strategically
align goals and actions of functional units across the company (e.g.
OReilly 1996, Swinket al. 2007). This involves the companys ma
consider comprehensively, not only manufacturing, marketing,
research or engineering functions, but also attitudes, skills, deci
information systems, organizational structures and planning
accommodate the changes in business environment (An
Transformation to multifunctional strategic orientation implies c
strategically manage technology, for instance, anticipate technolog
evaluate business potential and risks of technologies, control pro
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2.2.2 Integrated management concept
Ambiguous business environment sets high standards for en
to cope with complexity and to adapt to changes. In
situations, management needs to make the right assessment a
which may have a long-term impact to company operation
react is short due to dynamics in environment, decisions ha
limited information available, and final outcomes of the d
predict (March & Simon 1993). The amount of incontinuously, and information proliferates globally, causin
technology and business processes. In the global perspective
demographical, political and environmental aspects have
company endeavors. These changes necessitate a compreh
enterprise management.
Integrated management concept of Bleicher (2004) atsystematic method into management thinking and decis
integrated approach to enterprise management, the main obj
survival and development capabilities for an enterprise, to av
to the problems, and to see dependencies of an organizationa
is non-prescriptive as the actual contents depend on the con
in. The integrated management model is presented in Figure 5
In this conceptual model, the networked interactions of
form the entity. The model is composed of the dimensions o
and operative management. Normative and strategic dimensi
outlines and plans. Operative management is about directing
of the activities according to the plans. The managerial dim
separated, based on differences in the problem areas that co
has to deal with. Conceptually, there is interaction betw
including feedback between the plans and execution. Nor
covers general goals of a company in the form of legal
policies, norms and governance rules that intend to secure the
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Fig. 5. Conceptual integrated management model.
Each of the management dimensions has horizontally integrated
activities, structures and behavior, which all need to be aligned an
STRUCTURES OBJECTIVES BEHAVI
NORMATIVE MANAGEMENT
ENTERPRISE
STRUCTURE
MISSION
POLICIES
ENTERPR
CULTURE
STRATEGIC MANAGEMENT
OPERATIVE MANAGEMENT
PLANS
PROBLESOLVIN
BEHAVI
ACTIVITIES
TASKS
CO-OPERA
AND
PERFORM
BEHAVIOR
MANAGEMENT PHILOSOPHY
ENTERPRISE VISION
ORGANIZATIONSTRUCTURES
MANAGEMENT
SYSTEMS
ORGANIZATIONAL
PROCESSES
STEERING
SYSTEMS
HORIZONTAL INTEGRATION
VERT
ICALINTEGRATION
STRUCTURES OBJECTIVES BEHAVI
NORMATIVE MANAGEMENT
ENTERPRISE
STRUCTURE
MISSION
POLICIES
ENTERPR
CULTURE
STRATEGIC MANAGEMENT
OPERATIVE MANAGEMENT
PLANS
PROBLESOLVIN
BEHAVI
ACTIVITIES
TASKS
CO-OPERA
AND
PERFORM
BEHAVIOR
MANAGEMENT PHILOSOPHY
ENTERPRISE VISION
ORGANIZATIONSTRUCTURES
MANAGEMENT
SYSTEMS
ORGANIZATIONAL
PROCESSES
STEERING
SYSTEMS
HORIZONTAL INTEGRATION
VERT
ICALINTEGRATION
STRUCTURES OBJECTIVES BEHAVI
NORMATIVE MANAGEMENT
ENTERPRISE
STRUCTURE
MISSION
POLICIES
ENTERPR
CULTURE
STRATEGIC MANAGEMENT
OPERATIVE MANAGEMENT
PLANS
PROBLESOLVIN
BEHAVI
ACTIVITIES
TASKS
CO-OPERA
AND
PERFORM
BEHAVIOR
MANAGEMENT PHILOSOPHY
ENTERPRISE VISION
ORGANIZATIONSTRUCTURES
MANAGEMENT
SYSTEMS
ORGANIZATIONAL
PROCESSES
STEERING
SYSTEMS
HORIZONTAL INTEGRATION
VERT
ICALINTEGRATION
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governance structure of a company in the normative dime
structure and management systems in the strategic dimen
steering structures in the operative dimension. The path
represented as the company culture at a normative dimensio
behavior of people in a company when strategic and operat
are handled. This is manifested in roles and problem-solving
The task of the strategic management dimension is to in
in the operative management dimension. At the operative di
represented as work performance and co-operation capabi
activities are performed. Through these mechanisms, hor
integration of normative, strategic and operative dimension
structures, objectives and behavior, are realized. (Bleicher 20
As a summary, the integrated management concept prov
analysis of the managerial problem fields, and it establishe
analyze managerial dimensions and the aspects of each of also offers a progression model for conception of the solutio
the context of enterprise development, and assists in self-ref
positioning the situations and intentions. In this rese
management model is adopted to provide viewpoints reg
objectives and impacts categories of strategic management di
2.3 Technology management
2.3.1 Key definitions
The definition and understanding of the term technology is so
In general, every term has its formal expression and inten
semantic associated to the term, and extension that re
associated to the term (Niiniluoto 1980: 118). Every author
technology has their own intention and knowledge about th
of the term. Consequently, definitions used in literature have
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knowledge (Webster 2010). Burgelman et al. (2001: 4) defines te
technology refers to theoretical and practical knowledge, skills and
can be used to develop products and services as well their pro
delivery systems. Technology can be embodied in people, materials, c
physical processes, plant, equipment, and tools. The definition of B
al. (2001) is applied in this dissertation.
Technology management is defined by several authors and i
National Research Council of U.S.A. (1987) and European
Technology and Innovation Management (2010). Gregory (1995) ha
definition based on a generic process view to technology mana
generic processes of identification, selection, acquisition, expl
protection are also included in the definition of European Institute o
and Innovation Management. Cetindamaret al. (2009b) have sum
definitions of several authors (e.g. Roberts 1988, Gregory 1995, Rus
Dodgson et al. 2008, Levin & Barnard 2008). Cetindamar et concludes that there might be a consensus about the core process
technology management. On the other hand, the scope of technology
is diversely enhanced by, for example, strategy, knowledge, learnin
resource, competence, capability, innovations, product develo
commercialization views.
There exists several definitions and differing understandingsknowledge management. In simple terms, knowledge manageme
managing what we know (Wilson 2002). In this dissertation,
management is understood as identification, creation, codifying,
sharing of knowledge to make it available for business purposes of a
To avoid confusion, it is necessary to differentiate technology mana
knowledge management: technology management is concerned w
apply and utilize knowledge for business needs and purposes.
2.3.2 Schools of technology management
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technology management. The philosophy of the so called
management regards research, development and techn
instruments for long-term competitiveness and innovations (e
It emphasizes formulation of explicit technology strategy
technology with corporate and business strategy. Current
themes are concerned on knowledge acquisition and diffusi
and open innovation (Chiaromonte 2003, Chesbrough 2006, L
The scope of the innovation management school
innovation in the entire company, from ideas to comm
innovation management school of technology management,
as changing but predictable, to justify the use of tools and m
technology forecasting. This is to anticipate technolo
opportunities to create innovations by a managed innov
company. Discontinuous, radical, really new, incremental an
process, product and service innovations (Garcia & Galantocategorized, and sources of innovation are known (von Hippe
The effect of technological and market contingencies to inn
would still need better characterization (Tidd 2001). The sco
planning school is to manage technology across the com
environment using, for instance, forecasting, portfolio analy
method, and road mapping to plan and react to technologicbusiness environment (e.g. Andreasen & Hein 1987, Coopere
Thestrategic technology managementschool can be divi
based, organization and technology-based, and integrated
management schools that intend to combine technology with
and strategy (Drejer 1997). In technology-based strategic tech
school, technology is seen as a starting point for strateg
organization and technology-based school, the emphasis is
human resources and organizational performance measures
integrated strategic technology management school, the in
combine and decide technology and business issues in th
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2.3.3 Technology management frameworks
Frameworks are generally used to present and communicate ideas or
structured way to support understanding of the topic under study. Fo
the applicable viewpoints that a framework should provide, Phaal e
refers to a meta-framework of Shehabuddeen (2001) that represent
applied, dynamic and static dimensions to the topics to be pre
framework. Necessary abstraction, practicality, position of the el
interaction of the elements can be presented in a framework thdimensions. A variety of theoretical, commercial and practical fram
presenting ideas related to technology management have been depicte
et al. 2000, Talonen 2008). The main types of existing technology
frameworks and their key characteristics are presented in Table 4.
Each of the framework types represents a partial solution to th
what are the elements of strategic technology management. PTeichert (2006) and Brockhoff (2003) give an explanation that the r
ambiguity of the field of technology management can be traced bac
roots to management of R&D laboratories, and that the positioning
amongst other disciplines, has been difficult due to its intertwined nat
The underlying skeleton of the framework types indicate an app
attempts are made to define the key processes, functions, routines,
tools for specific technology management activities. Secondly,
management activities are presented as a discipline that needs to b
with the core business processes, and with market and business str
enterprise.
A third approach is to manage knowledge flows of a company
in other processes to link technology as a resource for reachi
objectives, or to manage technology specifically as part of innova
product development processes. An integrated management appr
fields of technology management in normative, strategic an
dimensions of organizational management from perspectives o
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Table 4. Main types of technology management frameworks.
Type
Characteristics
Generic process model Generic five process models: identification, selectionacquisition, exploitation and protection.
Generic five processes and learning seen as dynam
capability.
Technology management
functionsKey functions related to technology management:
technology strategy, road mapping, development,
information and knowledge management, acquisitio
transfer, forecasting, product development, life-cycle
management, commercialization.
Technology management
routinesKey routines: producing scientific and technological
knowledge, transforming knowledge into working
artifacts, matching artifacts with user requirements,
providing organizational support.
Integration of technology
management activity to
business processes
Five best practices to integrate technology planning
with business planning: planning, involvement,
commitment, buy-in, accountability.
Generic framework integrating technology
management core processes to processes of strateg
innovation and operations.
Technology strategy
approachTechnology strategy creation and implementation
regarding to definition of core and complementary
technologies, competencies, make/buy decisions,environment analysis, planning.
Integrated management
conceptTechnology management as a task of general
management: normative (vision, know-how
acquisition, decision-making, policies, innovation
culture creation); strategic (planning, organizational
design, make/buy, alliances creation), operative (R&
goals, motivation, tasks fulfillment)
Innovation funnel Integrating New Product Development from conceptto commercialization, through knowledge flows and
decision-making within commercial/market and
networked technology/resource/R&D perspectives.
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Due to complexity of the field, and dependency on industry
framework types are quite generic. There exists profound kn
generalized theories on phenomena about technological developmen
diffusion, dominant designs, innovations, and about role of core com
dynamic capabilities in enterprises (e.g. Utterback & Abernathy 1975
Anderson & Tushman 1990, Rogers 2003, von Hippel 1988, Praha
1990, Teece et al. 1997). On the other hand, specific practices
developed, for example, on technology forecasting, road mappin
management, evaluation, benchmarking, selection, patenting, licens
grids and strategy making (see e.g. Phaal et al. 2006). Nevertheless,
frameworks present a comprehensive view to the entire field.
2.4 Theoretical synthesis
Technology imposes managerial challenges due to the high level odynamics and profound effects on company strategy, busin
competitiveness, capabilities, and execution of strategy for sustain
success. Table 5 presents the essential concepts from strategic m
organizational managementand technology managementtheories for
strategic technology management framework.
Key findings from strategic management theories that are framework development include: the scope of strategic management
value creation for its stakeholders, role of technology in value creat
models, and as a source for productivity increase. In addition, t
capabilities are important for formulating and executing competitive
socio-economic context, the need for strategic technology manageme
in enterprises is justified by the major impact of technology fo
development and wealth creation. From organizational management
integrated management concept is adopted for the framework develop
Structures, objectives and impacts categories in strategic
dimension are considered to provide the necessary viewpoints for th
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Table 5. Key theoretical concepts for strategic technology manag
Theoreticaltopic
Key concepts for creation of strategic technologymanagement framework
Main re
Strategic
management
Definition of strategy. Chandle
Scope of strategic management. Nag et
Technology as a major source for economic growth
and productivity.
Nelson
Consideration of technology with respect to
sustainability aspects in companys socio-economic
environment.
Thomse
Critical role of technology in the business model
creation.
Suikki e
(2006)
Management control over firms technology evolution,
complexity of technology dimension in strategy
execution.
Ansoff (
Resource based strategy view on enterprise. Werner
Technology strategy has to be connected with firms
business and product strategy.
Burgelm
Organizational
managementFunctions of management: planning, organizing,
leading and control.
Robbins
Multifunctional strategic orientation of an enterprise. Ansoff (
Integrated management concept. Bleiche
Technology
managementDefinition of technology. Burgelm
Definition of technology management and key
processes.
Gregory
Strategic technology management school. Burgelm
et al. (2
Underlying knowledge on phenomena, methods,
tools and role of technological development,
forecasting, diffusion, innovations, dominant designs,
core competences and dynamic capabilities instrategic technology management and business
success of enterprises.
Utterba
Anderso
von Hip
Hamel ((1997),
Technology management is regarded as an own manageria
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3 Research contribution
In this chapter, the research contributions of the individual researc
presented. The entire research subject is outlined in the first article
the overall framework. The following three articles discuss and e
framework in more detail, focusing on the categories identified in the
Each category is further divided into six elements. In each article
framework model and the respective framework category is describ
Also, each article discusses theoretical contribution and managerial respectively. Due to practical reasons, in the scope of this diss
technology management related matters are covered to identify
strategic technology management without deeply diving into each o
topics, specifically.
3.1 Framework for strategic technology management
In the first article, the foundation for the framework development is
the article therefore answers the research question 1. Based on th
management model of Bleicher (2004), and by amending previo
Tschirky (1991) and Luggen & Tschirky (2003), elements
management of technology are divided into three categories
objectives and impacts. In addition, the article discusses how the
relates to company strategy, and defines strategic technology manage
Strategic management of technology is planning, organizing,
controlling of technological activities, interacting with compan
apply knowledge, structures, resources and socio-economic env
contribute to formulation and execution of the companys basigoals and objectives, and adoption of courses of action and the a
resources necessary for those goals.
The categories of the initial framework are presented in Figure 6. In t
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Fig. 6. Initial framework for strategic technology management.
The structures category contains a logical process view ovestarting point to consider is the artifacts needed for the
management. The respective processes, methods and too
artifacts are described. Governance structures are needed to
for decision-making and for managing the use of processes a
these artifacts. Organizational structures are needed for plan
of strategic management activities. The form of organizat
companys business context, size and principles for c
centralization of the businesses and functions. Technology m
organized as a distinguishing function. In addition to
companies also utilize various types of collaboration netwo
fifth main element of the structures category.
The objectives category contains objectives that confor
business strategy. The strategic objectives are reflecting
strategies which require different types of objectives to techn
The companys product offering requires diverse qualitat
objectives with respect to the needed qualities of the entire t
OPERATIVE MANAGEMENT
NORMATIVE MANAGEMENT
STRATEGIC
MANAGEMENT
STRUCTURES OBJECTIVES
OPERATIVE MANAGEMENT
NORMATIVE MANAGEMENT
STRATEGIC
MANAGEMENT
STRUCTURES OBJECTIVES
OPERATIVE MANAGEMENT
NORMATIVE MANAGEMENT
STRATEGIC
MANAGEMENT
STRUCTURES OBJECTIVES
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environmental impacts. Intangible outcomes accumulate as un
codified knowledge which form the companys technological capabil
3.2 Structures category of the framework
In the second article, thestructures category is elaborated to answe
research question. The categorization of the framework elements is e
validated based on perceptions of practitioners in small to m
enterprises. The summary of the elements in the structures cate
framework is presented in Table 6.
Table 6. Structures category of the framework (Sahlman & Haapa
published by permission of Inderscience).
Main element Definition
Artifacts Information, documents, reports, plans, prescriptions as the outcomperformed processes of technology management.
Processes Procedures and practices performed to transform inputs into artifa
technology management.
Methods, tools, IT
systems
Techniques and tools to perform tasks of the procedures and prac
technology management. Information systems for processing and
generated in the processes of technology management.
Governance Management structure, definition of authorization and policies for d
making of technology management topics.
Organizational
functions
Managerial disciplines of an organization for planning, organizing,
monitoring technology management functions.
Collaboration
networks
Stakeholder organizations involved in the company's processes of
management.
In the elaborated framework, the main class of methods, tools and
technology systems was separated from processes to better reflect p
logical categorization. Logically, the processes of technology manag
methods and tools to produce artifacts in the form of documents and
on plans, portfolios, repositories and guidelines. Information tec
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managing the activities that utilize the processes, were also d
networks include various stakeholders that are involve
technology management and constitute a collaborative par
infrastructure of a company. For most of the elements that
structures category of the framework, there exists separately
and body of knowledge, which have been excluded from
dissertation.
3.3 Objectives category of the framework
The third article presents the objectives category of the fram
the third research question. The elements in the categor
technology management related decisions of a large
equipment manufacturing company. The summary of the o
presented in Table 7.The elements discovered in the article consist of produc
chain related objectives, objectives for technology asse
imposed by technology and objectives related to internal a
Qualitative and quantitative properties of technology mu
product offering objectives, which are enabled by techno
products. The products and technologies must enable compefor the company and its customers. This is to meet socia
expectations, for example, energy efficiency, and the fundam
user needs must be satisfied. These all cause many-s
technology. Business model aspects determine the technolo
for value chain positioning, supplier dependency, and scope
technologies. Objectives for the properties of technology a
offering related targets. Additionally, scope, scale and t
aspects must be considered in the objectives setting for
Furthermore, uniqueness and standards compliancy has to be
Consequently, technology asset base determines also
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Finally, objectives related to industry relations are concerned with
standardization, licensing, intellectual property, supplier and
strategies and policies.
Table 7. Objectives category of the framework (Sahlman & Haapasalo
published by permission of Inderscience).
Main element Definition
Product offering Objectives for product offering enabled by technology e.g. cost, pe
capacity, quality, reliability, availability, maintainability, and commo
Value chain Value chain related objectives for technology supply e.g. business
scale of technology use, position in value chain, revenue logic, sup
technology change cost.
Technology assets Objectives for technology assets e.g. scope, scale of deployment,
products, life-cycle state, performance, and compliancy to internal
standards.
Productivity Objectives for productivity enabled by technology e.g. technology p
and scale, life-cycle position, operating expenses, capital expense
scale of competence and resources to develop and maintain the te
base.
Internal policies Objectives for internal policies, standards, processes and practices
and internal standards definition and deployment, best practices di
harmonization of practices, agility and adaptability of technology cr
Industry relations Objectives for industry relations e.g. compliancy to regulations, sta
facto standards, standardization strategy and policy, IPR, licensing
strategy, extend of supplier base, publications, collaboration with in
creation and support of technology ecosystems.
In general, the discovered elements conform to the purpose and goal
management, in terms of objectives setting for value creation, bus
development of technological capabilities, and competitive positio
by technology.
3.4 Impacts category of the framework
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created by technologies manifested in products and servi
delivers.
Table 8. Impacts category of the framework (Sahlman & Ha
published by permission of Inderscience).
Main element Definition
Tangible outcomes Impacts of technology management by technology ma
products and services.
Business model impacts Impacts of technology management to the companys
system, industry clusters, revenue logic, value creatio
Knowledge based
impacts
Impacts of technology management on skills, compet
knowledge and wisdom embodied in people and ente
Transitional and dynamic
impacts
Impacts of technology management that can be obse
market and environment.
Socio-economic impacts Impacts of technology management on social welfare
Environmental impacts Impacts of technology management to natural resourc
materials exploitation and waste.
Impacts to business model related matters are realized by th
in terms of added value and customer needs fulfillm
competitive positioning and created business benefits are af
and productivity enabled by technology. R&D investment de
technology creation efforts, utilization of value chain cocreation of the technology eco-systems and clusters. Invest
activities within the value chain influence on the evolution o
models and value chains. Thus, competitiveness, levels
fragmentation of value chains change over time. Throug
codified and codified knowledge is accumulated within valu
ultimately determine capabilities of companies and value
competitive environment. Finally, it is the value chains th
companies alone. Tangible products and services, on the
dynamic impacts in the market place in the form of inno
leadership technology life cycles and other attributes of tec
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3.5 Elements of strategic technology management
After completion of each of the categories, the entire framework was
interviewing experienced industry practitioners evaluating relevance
state of each element of the framework. Evaluation results are
Appendix 1.
Evaluation of the elements mostly scored on average from
Methods, tools and IT systems were evaluated least relevant, on av
due to one respondent not seeing them as relevant in his compalthough he stated that the bigger the company is, the more relevant
knowledge of substance is more relevant than tools. Relevance of soc
and environmental impacts was also evaluated low at 7.2 and 6.0
nevertheless, the topics were understood, and their importance
increase. Relevance of value chain related objectives was seen not v
one interviewee because his companys value chain position is stable
no intent to change the position. For the same company, the indu
were not seen relevant either, due to the focused scope of the compan
The perceived current state of practice of the elements was eval
from 6.2 to 7.6 indicating that the interviewees were not quite satis
matters are implemented in practice. The lowest score was on arti
which may indicate that practices are not systematic or outcomes
documented. The highest score was on collaboration networks at 8
that the networked operational model for globally operating com
necessity.
The interviewees were able to associate the elements to busine
The linkage of business needs and enterprise strategy to technology
was acknowledged. On average, all of the elements were seen relev
substance was understood. It was stated that strategic technology and R&D management are typically practiced in own silos in en
technology management is embedded in R&D, which effective
gaining the whole picture. It was also stated that it is important to
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making, improve follow-up on technology strategy execut
productivity by some 20%, e.g., from 60% to 80% of optimal
The strategic importance of technology in creation a
company strategy was brought up. Technology should be s
satisfy the market needs. It was emphasized that mar
development are too often technology driven, and the rea
considered. The utilization of the framework was unders
consideration of the desired impacts for setting the strategi
realized by the structures. Thus, the framework was seen a
providing necessary viewpoints on the relevant issues.
Key questions on benefits of strategic technology manag
whether there is evidence on what is its impact to competitiv
best practices for formal organization of technology m
companies, and whether strategic technology management
factor for a technology-based company. It was stated thatbecoming easier, product lifecycles are shortening, and
anticipate technological development. Therefore, mark
technology management was seen as important.
In conclusion, the four articles of this dissertation form
strategic technology management. Article I presented
framework, and the three categories ofstructures, objective
studied in articles II, III and IV. The articles answer the resea
and 4 respectively. During the research, some 250 classes a
identified for the eighteen main elements. Elements of the
follow mainly a process and organizational view over
objectives category elements conform to strategic manage
value creation, business models and competitiveness. Th
elements represent internal and external, tangible and intang
the company, and in its socio-economic environment. In
framework was recognized to contain relevant element
considerations, interest and discussion on the topics. A
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Fig. 7. Elements of strategic technology management.
OPERATIVE MANAGEMENT
NORMATIVE MANAGEMENT
STRATEGIC
MANAGEMENT
ARTIFACTS
METHODS, TOOLS,
IT SYSTEMS
PROCESSES
GOVERNANCE
STRUCTURES
ORGANIZATIONAL
FUNCTIONS
COLLABORATION
NETWORKS
PRODUCT OFFERING
OBJECTIVES
OBJECTIVES FOR
TECHNOLOGY ASSETS
VALUE CHAIN
OBJECTIVES
OBJECTIVES FOR
INTERNAL POLICIES
PRODUCTIVITY
OBJECTIVES
OBJECTIVES FOR
INDUSTRY RELATIONS
T
I
KNOW
I
BUSI
I
SOCI
I
TRAN
DYNA
ENVI
I
STRUCTURES OBJECTIVES IM
OPERATIVE MANAGEMENT
NORMATIVE MANAGEMENT
STRATEGIC
MANAGEMENT
ARTIFACTS
METHODS, TOOLS,
IT SYSTEMS
PROCESSES
GOVERNANCE
STRUCTURES
ORGANIZATIONAL
FUNCTIONS
COLLABORATION
NETWORKS
PRODUCT OFFERING
OBJECTIVES
OBJECTIVES FOR
TECHNOLOGY ASSETS
VALUE CHAIN
OBJECTIVES
OBJECTIVES FOR
INTERNAL POLICIES
PRODUCTIVITY
OBJECTIVES
OBJECTIVES FOR
INDUSTRY RELATIONS
T
I
KNOW
I
BUSI
I
SOCI
I
TRAN
DYNA
ENVI
I
STRUCTURES OBJECTIVES IM
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4 Discussion
4.1 Theoretical implications
In this dissertation, the research problem is approached by d
framework that describes elements of strategic technology manag
developed theoretical framework describes the elements as c
structures, objectives and impacts in strategic dimension. The new
contribution of this dissertation includes the framework mod
organizational theory on strategic technology management, and com
of technology management. Table 9 summarizes the theoretical cont
implications of the research phases that constitute the entire framewor
The framework builds on the integrated management theory
(2004), and enhances previous models developed by Tschirky (1991)
& Tschirky (2003). Other types of existing strategic technology models are typically focused on certain aspects of technology mana
Table 4), for instance, process, function, routines, activity, methods o
or they are focused on constituents of technology strategies. In exist
and theoretical models, technology related phenomena, impact
economic environment, as well as impacts of technology to comp
model and competitiveness are covered as separate but intertwined Khalil 2000, Dodgson et al. 2008). Also, an extension to Gregorys
process model is suggested by proposing process areas of strate
technology development, and technology disposal. Moreover, c
solutions to the challenges in strategy execution emphasize setting o
organizations and management of strategic initiatives portfolio (e.g
Steele 2005, Mankins & Steele 2006, Kaplan & Norton 2005), instea
to transform strategic business objectives into strategic objectives for
In this respect, the developed framework complements the existin
providing an integrated approach with the standpoints tostructure
and impacts as element categories of the framework for strategic
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considerations of horizontal and vertical integration of th
elements.
Table 9. Summary of theoretical contributions and implications.
Phase # Theoretical contributions Theoretical implicationsI Defining of strategic technology
management in enterprise context.
Outlining a conceptual framework for
strategic technology management.
Combines definitions of
technology and strategy
Framework for strategic
created. Enhances prev
II Defining the structures category of theframework.
Structures for strategic
in enterprises context c
Enhancement of Grego
model (identification, se
exploitation, protection)
developmentand dispo
suggested.
III Defining the objectives category of theframework.
Objectives for strategic
in enterprise context ca
Introduces the need of
strategic business obje
objectives for technolog
IV Defining the impacts category of theframework.
Impacts of strategic tec
enterprise context categ
Connects in the form of
internal and external inf
technology manageme
environment.
Validation,
Dissertation
Summary
Concluding the entire framework for
strategic technology management.
Unites concepts of stra
organizational manage
management into a fram
technology manageme
Builds a basis for a logi
technology manageme
enhancement.
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offering objectives and tangible impacts; value chain objectives a
model impacts. As another example, collaboration networks and o
industry relations, as well as socio-economic and environmental
interrelated. Organizational functions, governance structures,
objectives and internal policies form also an example cluster
Examples of these element clusters are presented in Figure 8. As a co
framework provides a theoretical frame for presentation, commu
discussion of strategic technology management topics. It also provi
structure for further research and elaboration of the individualelements and their interrelations as an integrated entity.
Fig. 8. Examples of element clusters in the framework.
ARTIFACTS
METHODS, TOOLS,
IT SYSTEMS
PROCESSES
GOVERNANCE
STRUCTURES
ORGANIZATIONAL
FUNCTIONS
COLLABOR