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Effects of Competition-oriented CCC Interaction in Sales and Internalized Interaction in R&D

  • Yoshitaka Okada

Abstract

As reported earlier, over 70% of transactions in semiconductor sales involved competitive-cum-cooperative (CCC) interaction, while over 90% of the R&D budget of semiconductor manufacturers was allocated to intrafirm R&D activities. In contrast, CCC interaction had only a 7.6% share in the total R&D budget. Why do semiconductor companies choose CCC interaction for sales activities, yet choose internalized interaction for R&D activities?

Keywords

Good Deal Spot Market Strong Level Strict Standard Sales Activity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    Respondents were asked to select the most important company representative for each type of interaction, and to answer the following questions: (l)What is the degree of benefit that your company enjoys from the indicated company in the following issues: (a) Acquiring technological information (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (b) Acquiring product-market information (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: On a questionnaire concerning R&D, I asked about acquiring R&D information.] (c) Obtaining business, owing to long-term mutual experience (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: On a questionnaire concerning R&D, I asked about obtaining joint R&D projects.] (d) Enhancing trust and cooperation with each other (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (e) Reducing R&D risk (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: This question was only asked on a questionnaire concerning R&D.] (f) Coordinating delivery and quality control (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: On a questionnaire concerning R&D, I asked about coordinating R&D.] (g) Receiving stable demand (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: This question was only asked on a questionnaire concerning sales.] (h) Providing services that satisfy your company’s needs (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) [Note: On a questionnaire concerning R&D, I asked about sharing human resources and equipment for a R&D project.] (i) Keeping corporate secrets (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (j) Stimulating creativity (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (1) Developing future-oriented risk-taking R&D projects (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal)Google Scholar
  2. 2.
    In a questionnaire concerning sales, respondents were asked to select the most important company representative for each type of interaction, and to answer the following questions: (1) What is the degree of pressure that your company receives from the indicated company on the following issues? Pressures for: (a) Selling at stable prices (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (b) Selling at unfavorable prices to your company (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (c) Keeping a high priority of business with the company (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (d) Implementing contracts flexibly, according to market conditions (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (e) Maintaining strict standards and a tough relationship (1. hardly any, 2. a little, 3. some, 4. a good deal, 5. a great deal) (Note: On a questionnaire concering R&D, a question was asked about benefit rather than pressure.) (f) What are some of the methods that the indicated company uses to evaluate your com pany? (Please list concretely.)3 Interviews with managers in Companies R, T, and V.Google Scholar
  3. 3.
    Interviews with managers in Companies R, T, and V.Google Scholar
  4. 4.
    Interviews with managers in Companies Q, R, and T.Google Scholar
  5. 5.
    Interviews with managers in Companies Q, R and T.Google Scholar
  6. 6.
    Interview with Company Q manager.Google Scholar
  7. 7.
    Interviews with managers in Companies W and Q.Google Scholar
  8. 8.
    Interview with Company Q managerGoogle Scholar

Copyright information

© Springer Japan 2000

Authors and Affiliations

  • Yoshitaka Okada
    • 1
  1. 1.Sophia UniversityChiyoda-ku, TokyoJapan

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