Hypotheses Case Study 1: Theory-testing research: testing a necessary condition

5.2.8 Measurement

In order to test the hypotheses, we needed to measure the three col- laboration characteristics; collaboration history, technological cap- abilities, and level of commitment. We needed to determine, for each case, the newness of the partners for Nokia, similarity of technological capabilities between Nokia and the partner, and level of commitment in the alliance. These three characteristics were measured in the fol- lowing ways. 1. The CGCP database contains data regarding all innovation projects in which Nokia was engaged since 1985. A partner in an alliance was considered to be a new partner for Nokia if that partner had not collaborated with Nokia in a previous alliance in the database since 1985. Old partners were partners with which Nokia had engaged in at least one innovation project in the database since 1985. 2. A partner’s technological capabilities were mainly determined by its code in the SIC Standard Industrial Classification. The SIC is a four-digit code developed by the US Office of Management and Budget to identify industrial sectors. Nokia is classified as a manufacturer of “telephone and telegraph apparatus” SIC 3661. Partners with code 3661 were considered to have similar technological capabilities, whereas partners with other codes were considered to have different capabilities. 3. The level of commitment is determined by the type of alliance agreement that the firms engaged in, in terms of investments made in the innovation project and innovation project dur- ation. This was done based on Hagedoorn 1990, who presents a classification of alliance agreements and their organizational interdependence. The largest organizational interdependence can be found in joint ventures and the smallest in licensing agreements. The organizational interdependence refers to the intensity of the relation, which we refer to as “commitment”.

5.2.9 Data presentation

5.2.9.1 Radical innovation projects

Case 1 is a project to create a new pen-based product category. It was organized as a joint development and licensing agreement between Nokia and Palm Computing Inc., which was announced in 1999. Nokia has introduced its first pen-based products in the American market and subsequently on a worldwide basis. New partner? Nokia and Palm Computing are collaborating for the first time on this project. Capabilities. Since Palm Computing Inc. is a provider of handheld computing solutions, the company can be said to have different capabil- ities from Nokia. Commitment. This joint development and licensing agreement is not a long-term commitment. Case 2 is a project to develop Internet-enhanced television solu-tions. It was organized as a joint development agreement between Nokia and Intel and was announced in 1999. The solutions developed in this alliance allowed broadcasters to provide consumers with access to new, Internet-enhanced television services, as well as to the extensive range of services already available on the Internet. The product is based on Nokia and Intel technology, open standards, and specifications, including Digital Video Broadcast DVB, Internet protocols, the Advanced Television Enhancement Forum specification ATVEF, as well as open source, including Linux and the Mozilla browser. The first products were introduced in the second half of 2000. New partner? This is the first time that Nokia and Intel collaborated in a joint RD project. Capabilities. Intel, the world’s largest chipmaker, is also a lead- ing manufacturer of computer, networking, and communications products, though it does not develop telecommunication products. Nokia and Intel work in different industries and have different capabilities. Commitment. This joint development agreement is not a long-term commitment. Case 3 is a project to deliver enterprise-class intrusion detection for effective information protection. It was organized as a joint develop- ment agreement between Nokia and Internet Security Systems ISS signed in 2001. This agreement broadened the scope of the existing ISSNokia relation encompassing continued development of the indus- try’s first enterprise-class intrusion detection appliance, RealSecureI for Nokia. In addition, the agreement covered offerings, and joint channel, and marketing activities that would broaden each company’s reach in delivering simplified security solutions to partners and cus- tomers worldwide. New partner? Nokia and ISS have collaborated before, so ISS is not a new partner for Nokia.