Report 2003: Center of Market Economics (CME)
Center of Market Economics (CME): Research Report 2003
Introduction
The Center of Market Economics (CME) works in the target fields of information and communication technology, financial analysis/methodology, learning and innovation. The central field of activity of the Center is Knowledge Creation, i.e. the science of knowledge creation in virtual networks. In concrete terms this work is performed mainly by way of developing advanced and unique forms of e-learning together with selected business enterprises. The Center’s work is supported by theoretical and empirical research in methodology and strategy in the financial field.
Highlights 2003
- The below highlights all support CBS’ strategic perspectives in the areas of ”partnerships with the business community” and ”the learning organisation”.
- The Center established a number of new lines under the HD programme in Marketing/Foreign Trade, thereby totally transforming the existing Marketing/Foreign Trade courses. This reflects the requirements of the enterprises and is an example of mode 2 research. The CME model will of course be applied.
- The Center is introducing a new open university programme in financial consulting services (HDFR) in cooperation with the financial sector. HDFR will be developed and made available with inspiration from the CME model and may also be seen as an example of CME’s mode 2 research.
- The transfer of two senior researchers from another CBS department was initiated at the end of 2003. Their efforts will be included the 2004 Report.
- In 2003, guest professors David E. Smith (National University of San Diego), Stig Ingebrigtsen and Frank Lindberg (both from Bodø Business School in Norway) visited CME.
- CME started the PhD supervision process for Kent Jonasen (as an external student from A.P. Moller) and Frode Soelberg (from Bodø Business School). In this connection virtual PhD supervision is introduced.
Academic profile
The central field of activity of the Center is Knowledge Creation, i.e. the science of knowledge creation in virtual networks. The field is considered an increasingly important foundation for knowledge management and innovation in enterprises and organisations, which is emphasised by increased Intranet use in enterprises as well as their networks.
Knowledge Creation activities are based on two mutually enhancing core areas cultivated over a number of years, viz. empirical market economy and virtual learning exercised through the Center’s own e-learning concept. These areas have been cultivated on the basis of the original background of Center staff in business-to-business marketing, ICT/information theory, e-learning, economic theory and the theory of methodology/science.
The Center conducts these activities by dismantling the distinctions between theory and practice and through academic and professional learning, especially through the development and operation of virtual networks in closed electronic spaces focusing on problem orientation, partnerships with the business community and interactivity controlled by participants. It does not produce and present knowledge in the traditional way only, i.e. through scientific and pragmatic publications or similar activities, but very much through continuous development of structure and content as well as implementation of learning processes integrated with what selected enterprises consider their real problems.
Research strategy
As mentioned above, Knowledge Creation is becoming an increasingly generic description of Center activities, but at the same time a huge effort is needed in coming years to push the two core areas forward in the same direction.
Thus, Knowledge Creation must also be considered a strategic goal for the future exploitation of Center resources. Experience gained in recent years shows that virtual Knowledge Creation depends on a capability of virtual learning closely related to an empirical-analytical approach to the development of markets and enterprises and to a distinctly practice and experience-based approach to work in virtual learning spaces.
A historical line of Center research development can therefore be drawn from concentrating on marketing subjects (e.g. business-to-business, ICT/information theory and economic theory and methodology) to the development of Knowledge Creation in virtual space as a central goal for and generic description of research.
In other respects, our research shows:
- that practice, learning, research, development, teaching, training, consultancy and project work will become increasingly virtualised in Intranets and Extranets and that this process will involve closer cooperation between the academic world and the business community. The Center therefore subscribes to a mode 2 way of thinking;
- that empirical analyses of the relationship between markets and enterprises decisively support virtual competence by making problem-oriented virtual learning processes increasingly relevant;
- that virtual learning supports an empirical-analytical learning concept;
- that the foundation of marketing research should be the study of business decisions based on the decision-maker’s (potential) knowledge of external market conditions, thereby focusing on interdisciplinary retrieval of knowledge, information and data from various economic aggregation levels and vertical markets. This leads to a contextual methodology enabling business decision-makers to identify and solve problems;
- that knowledge creation e-learning not only supports education, but also research, development and innovation.
Hence, the research objectives of the Center are to create an inspiring and qualifying environment characterised by cooperation with the business community, analysis work, virtual learning and education of new researchers. An important CME objective is to generate application-oriented results for the benefit of the business community. This is to be achieved through cooperation with significant enterprises, improved development processes and better learning results. The participation of enterprises, public institutions and other educational establishments in cooperation projects and their acceptance and use of the concepts developed are thus considered to be crucial success criteria. Furthermore, importance is attached to a high-level scientific methodological approach enabling substantial publication achievements.
Research results and research relations to practice
Since its foundation, the Center only had at its disposal about 1 full-time research equivalent to conduct research. Nevertheless, it succeeded in achieving a significant publication rate (see Figure 1).
Figure 1
After a succession of significant increases in the number of publications (especially in foreign languages), in 2003 CME saw a decrease, which was expected in the light of the dramatic increase in recent years.
To a wide extent, the decrease reflects that the Center staff have been solving other tasks, but also that their current research has not yet been published.
Obviously, the activities of the Center should not be measured by the number of publications alone. The Center is deeply involved in mode 2 research, which is shown by the continued development and application of its virtual concept (a case in point being the HD programme in Marketing/Foreign Trade) and the high degree of cooperation with a number of significant enterprises, first of all the A.P. Moller - Maersk Group which adopted the concept and many of the results. For example, a PhD student from A.P. Moller was attached to the Center in 2003.
Furthermore, on the initiative of a number of large, important enterprises, CME was involved in the development in a virtual HD programme in financial consulting services, which is expected to be launched in 2004.
The Center has also been successful in disseminating its concept of virtual learning to the Department of International Economics and Management (INT). In 2003, cooperation with INT on the HD programme in Marketing/Foreign Trade was extended and intensified to the benefit of both parties. Moreover, contacts to a number of staff from other CBS environments were strengthened in connection with the transition to new lines under the HD programme in Marketing/Foreign Trade.
In addition, CME extended its contacts to the Bodø Business School. In 2003, two guest professors from Bodø visited CME and CME also cooperates with Bodø on the supervision of a PhD student.
Most recently, two senior researchers from another CBS environment started their transfer to CME. This is expected to strengthen CME in the innovation field.
The Center would like to contribute to further dissemination of experience from the CME concept to other environments at CBS, but we are aware that this would also require a high degree of motivation in those environments.
In our opinion, the generally accepted benchmarking method for research cooperation and partnerships with the business community, where success rates are measured by the ability to attract external funding in the form of money, is much too narrow. Instead, we should focus on whether organisations and institutions enter into real working relationships and apply research results in practice.
In terms of external funding, the Center is in fact doing fairly well (cf. Figure 2).
Figure 2
When looking at how the business sector applies research results in practice and how it finances research, it should also be pointed out that the development and operation of the virtual HD programme in Marketing/Foreign Trade by the Center supports both.
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