Bioseguridad operacional

A Dutch joint venture implemented and commercialised a process that allows for the separation of various metals based on their material specific density. The joint venture was founded in 2008, as a result of a partnership between a Dutch magnet system engineering company and a Dutch metal recycling company. The joint venture currently employs 15 people and can be characterised as an adhocracy or innovative organisation. The innovation was funded with one of the joint venture partner’s cash reserves. The technology is available on the global market and is already being operated by a large American customer.

The new process incorporates a magnet system and iron oxide fluid, which in combination allow for an adjustable process liquid density. This process liquid is used to separate different types of metal waste from each other. By adjusting the density of the process fluid, only the metal type with the lowest density in a waste collection composed of different types of metal, is made to float. Subsequently the floating metal fraction is extracted and the whole process is repeated with a different fluid density setup. Opposed to its competitors, the new technology allows the company to separate waste input based on its specific material density. Competitors are still using optical separation techniques based on for instance colours or particle size, factors that are not directly related to

the material’s properties. A large share of material sorting is also still being done manually. If particle size, however, drops below 50 mm, it becomes very hard to manually sort the material. Moreover, sorting material based on its colour is not a reliable method, because many used materials have been treated with either paint or a coating, hiding their material specific colour.

The innovation is new to the world and can be characterised as a radical innovation, because both the technological change from the producer’s view is and the increased benefit from the buyer’s view are high. Development of this technology was manufacturer driven. There is no direct demand pull from the market, but increasing resource prices stimulate adoption of this technology. The patented magnet system underlying the process, was developed by one of the mother companies, and encompassed the first development step. Subsequent development steps were largely conducted in the joint venture and in close cooperation with suppliers of process components. The innovation is considered to be successful, because the company earns money through internal operation of the technology, royalties on licensed patents to customers, and joint venture constructions with customers.

From the company’s meso context, especially the cooperativeness of the joint venture partner and suppliers of key machine components were key to both development of the innovation and generation of imitation barriers. Two types of imitation barriers, resource interrelatedness in the form of economies of scope and pre-emption of inputs, derive their existence from this cooperation.

The joint venture’s resource orchestration activities largely originate from both joint venture partners. One of which is a world leader in magnet systems for recycling purposes and was responsible for development and patenting of the underlying magnet technology. The other partner specialises in metal recycling and has substantial experience with developing and operating recycling facilities. By combining their own resources, capabilities and acquiring development capacities from several key suppliers, they managed to come up with the current innovation.

There are no observed cognitive barriers to imitation. Willingness barriers, however, arise from two different sources. First, institutionalised norms in the recycling industry, with regard to liquid density separation, might deter competitors from imitation. Most industry players associate liquid density separation with processes incorporating salted water, with which a higher density can be reached, which allows for the separation of various metals in water. Salted water, however, accelerates the oxidation of metals, making the sorted metal less valuable for reuse. The recycling industry, therefore has a negative predisposition towards liquid sorting, because it associates this with salt water practices.

Another factor that makes competitors less willing to imitate this process is that the patented technology is available under license. The joint venture offers licenses at a reasonable price for interested parties. Indeed, this is the business model the company preferably opts for. It creates a joint venture with the customer company and sells licenses to the newly founded JV. A certain percentage is then agreed upon, to divide the potential profits.

With regard to ability barriers several types are in place, three of which have already been mentioned. A crucial part of the process, the magnet system, was patented by one of the joint venture partners. According to the company’s commercial manager, “the company has the financial power and expertise to defend the acquired patents” and this therefore poses a strong imitation barrier. The company already has substantial experience in intellectual property management and fighting infringement. “One of Europe’s best patent attorneys was involved with acquiring the patent and makes sure that the patent is properly defended”, according to the earlier mentioned respondent.

The company conducted several strong pre-emptive actions with regard to input and knowledge. As mentioned earlier, having patents on the technology basically implies pre-emption of knowhow, because potential imitators are not allowed to commercialise the same know-how in a similar process. Furthermore, by setting up exclusive contracts with the JV’s suppliers of the custom-made iron oxide process fluid, potential imitators cannot make use of the knowledge residing in these technology leaders for this respective product (high-tech process fluid). The properties of the liquid substance are of high influence to the success of the process. Substantial amounts of time and money were spend to optimise this fluid and significant errors were encountered when parameters of the fluid were setup slightly different.

According to the JV’s commercial manager and shareholder, “the company consciously chose to keep the development of this process isolated from the rest of the organisation. The general goals and

aims of the project were communicated to other employees, but details concerning the technology were kept secret by the development team”. This was key for acquiring the patent on the magnet system, which would have been impossible if key details of the innovations would have leaked to the public. This can also be considered a form of deliberately creating causal ambiguity through secrecy or information impactedness.

Finally, the company achieved inimitable economies of scope with regards to resources and capabilities required for development of this technology. The process innovation was realised through combining resources and capabilities of both JV partners, the two suppliers of the process liquid and the other four key suppliers of facility components. Many of which are technology leaders in their respective industry, for instance one the joint venture partners, the two process fluid developers/suppliers and one of the machine parts suppliers.

To conclude the most important relationships in this case were: the influence of the firm characteristics on resource orchestration, due to the relationship the company (JV) had to both joint venture partners; the influence of the firm’s resource orchestration on the created imitation barriers, through for instance the acquisition of a patent on the magnet technology and availability of licenses; the mediating influence of the innovation characteristics on the relationship between resource orchestration and imitation barriers, elicited by the patentability of the innovation and its composition of different high-tech components requiring a broad variety of expertise in order to develop; and finally the mediating influence of the company’s meso context on the relationship between resource orchestration and imitation barriers, through the presence of an experienced joint venture partner and cooperative suppliers with whom the company was able to establish exclusive contracts.

Figure 13: Relationships model case 3

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