Technology value as a dynamic strategic framework

Purpose – Business firms are subject to accelerating technological change and related changes in the strategic value framework. Mistakes due to the misperception and misunderstanding of technology impacts have been very costly. The purpose of this paper is to investigate, describe and model the process of technological evolution as a dynamic value framework for strategy and related decision making. Design/methodology/approach – The research centered on the evolution of technology‐value vectors and their economic and strategic impacts. Information was collected from various known academic and professional publications. The paper also benefited from feedback gained from the presentation of an earlier version at ISMOT, 2007, Hangchow, China. Findings – The paper indicates firms often have difficulty transitioning from one phase of a technology‐value vector to another, especially when presented with a super radical innovation, possibly because of strategy and related decision making. The adaptability of firms, from phase to phase, may be improved by a clearer perception and understanding of the relevant technology‐value vectors or vector. Research limitations/implications – As the technology‐value vector model is new and offers many new perspectives it will be subject to further research, refinement and validation. It is best used to assess and explore medium to high technology. It does not explore specific market aspects such as preferences, place and time which are left to future research. Practical implications – The model develops a tool and concepts for a clearer view and understanding of the economic/market forces impacting medium to high‐technological evolution. It is expected that this will lead to improved related strategy and decision making in medium to high technology firms. Originality/value – The paper develops and describes a model of the evolution of the technology‐value vector, which may act as a dynamic framework for strategy in medium to high‐technology industries. The research may have many other uses, including the management and planning of technology.