extfieldsofstudy:
Computer Science
Business

s2fieldsofstudy: Business Economics

text:
The eﬀectiveness of RD support in Italy. Some evidence from matching methods

In this study several matching procedures have been used to evaluate the impact of public R&D support received by Italian manufacturing firms over the three-year period 2004-2006. Data are from the Capitalia-UniCredit survey and estimations refer to a sample of 605 treated firms (untreated are 2414). The evidence is mixed and depends on the objective-variable under consideration. As far as the total amount of R&D investments is concerned, the role of public support to innovation is positive and significant, while no impact has been found when considering the R&D intensity and the share of sales due to innovative-products. These differences in results are quite regular, whatever the matching method applied in the evaluation.

Introduction
There are two main arguments to explain the low level of private R&D investments. The first refers to the appropriability of basic research. If technology is a quasi-public good then the incentive to invest will be reduced because each firm will try to take advantages from the innovative efforts made by others. The final outcome is a level of innovative activities which is lower than that desirable at an aggregate level (Arrow 1962). The second element influencing R&D investments relates to capitalmarket imperfections. The risk of research leads investors to increase the cost of financing innovation and, as a consequence, tends to reduce the amount of research made by the private sector. This is particularly true for Italy, a country with a low propensity to innovate due to specific characteristics of its industrial sector which is dominated by small firms and by firms operating in low-tech sectors.
These considerations help to understand state intervention in favour of R&D activities. Any innovation policy is aimed at making up for the difference between social and private returns on R&D innovations and ensuring financial facilities to innovators, particularly in the first stage of the innovation process. While the initial objective of R&D policy is to increase the amount of innovative activity, the general scope of any research and innovation policy is to strengthen the position of each country among the leading knowledge and competence-based countries. In other words, public support for private R&D is a good policy option per se because increasing technological potential through sizeable investments should lead to innovation and, ultimately, growth in an economy. This is basically the mission of many R&D programmes, such as, for example, Europe 2020 which is part of the EU's growth strategy to promote a more competitive economy in the coming years. With regards to the theme of this paper, it is of value to point out that, among many other objectives, Europe 2020 fixes at 3% the proportion of the EU's GDP to be invested in R&D up to 2020. According to the EU commission, this is a pre-requisite to have a smart-growth which is based on more effective investments in education, research and innovation. As mentioned before, the level of actual R&D efforts is lower than the optimum and very far from 3%. For instance, in Italy, R&D investments were 1,26% of GDP in 2010, while the average of the EU-27 was around 2% (the intensity was more than 3% in some Nordic countries (Finland, Sweden, Denmark) and more than 2% in Austria, France, Germany and Slovenia. However, compared to the early 2000s, Italy has increased its innovative efforts by about 20-25 basis points from, R&D investments of just over 1% of GDP in 2000.
However if, and to what extent, the objectives of R&D programmes have been achieved is an empirical issue to be addressed through an evaluation study. This paper analyses the effect of the innovation policy from which a sample of Italian manufacturing firms benefitted from 2004 to 2006. With this goal, the literature is followed and an ex-post evaluation is carried out by using the counterfactual approach, which -through different methods -permits the measurement of what would have happened without the policy. In order to assess the impact of Italian R&D policy support at firm level, the matching techniques are applied, just as in Almul and Czrnitzki (2003), Czrnitzki and Licht (2005), Herrera and Heijs (2007), Duguet (2004), Gonzalez and Pazò (2008).
Data used in this paper are from the survey carried out by Capitalia-UniCredit (2008) and cover the years 2004-2006. This source allows precise identification of whether a firm has received a policy support within R&D programmes or not. The possibility of distinguishing the two groups of treated and untreated gives an advantage in that the analysis does not suffer from the potential bias of other sources of public funding, as would be the case if we only paid attention to a specific scheme without being able to control for the presence of other policies. In this, the paper is similar to many other studies. However, this is not without cost. Indeed, knowing whether a firm participates or not in a programme impedes to assess the role of the different policies implemented in favour of private innovation in Italy. Therefore, the results are meant to be the average effect of overall R&D policies adopted in Italy in the period 2004-2006. We find that R&D policy has been effective in increasing the amount of R&D investments made by firms, although the effect disappears when considering the intensity of innovative efforts. There is similar inconclusive evidence with regard to the impact of R&D policy on the capability of firms to sell innovative products.
The paper is organised as follows. The next section presents a brief break-down of the sample of firms used in the empirical analysis. Section 3 describes the methodology, while section 4 looks at the results and concludes..

The sample of Italian manufacturing firms
This analysis uses data from the survey carried out by Unicredit-Capitalia in 2008 for the years 2004-2006. This survey comprises standard balance sheets and collects a great deal of qualitative information on firm characteristics for a sample of about 4,500 Italian manufacturing firms, including all firms with more than 500 workers and a representative subsample of firms with more than ten workers (the stratification used by Unicredit-Capitalia considers location, size and sector). With regards the objective of this paper, the Unicredit-Capitalia survey comprises information regarding firms' R&D investments in 2004, 2005 and 2006, the value of innovative products as a share of total sales (averaged over [2004][2005][2006], the type of innovation introduced and whether firms benefitted from public support for R&D activities over the period [2004][2005][2006]. There is no information on the source of financing, i.e. whether the support was activated as part of local, national or European projects -or on the amount of funding received. Table 1 presents the sample of firms, classifies firms by size and distinguishes the innovative from the non-innovative firms and those receiving R&D public support. The entire sample is comprised of 3,019 firms, many of which are small (the proportion of firms with sales below 5 million euros in 2004-2006 is 26%). The share of firms with a value of sales below 50 million euros is about 88%. Only 2.19% of firms are big. This distribution is roughly repeated in the case of supported firms, which number 625, that is to say 20% of the entire sample. Thus, the sample is formed of 605 treated and 2,414 untreated firms. From data displayed in table 1, it emerges that the majority of firms (2,445 out of 3,019) are noninnovators, in the sense that they did not introduce any product/process innovation over the years under scrutiny. The imbalance of firms in favour of noninnovators is also found when considering the subsample of supported firms. In this case, in fact, 483 out of 605 firms received public aid over the threeyear period 2004-2006, but they introduced no innovation. In the group of supported-non innovators, the distribution by size indicates a large presence of small firms: 283 out of 483 firms -that it is to say 60% of the sub-sample -register sales of less than 10 million euros. In brief, the sample is dominated by non-supported firms, no-innovators and small-sized firms.

The empirical setting
This paper aims at assessing the effect of R&D support on the innovative activities of Italian firms. For each firm, we observe the amount of R&D investment and the sales of innovative products as a share of total sales. To truly know the effect of R&D policy, it is necessary to compare the observed outcome (the so-called factual outcome) with the outcome that would have occurred had that firm not benefitted from public support (the counterfactual outcome). The latter is unobservable and, therefore, represents an evaluation problem. The issue is to provide an estimation of the counterfactual which allows a calculation of the policy-effect. In order to evaluate the counterfactual, this paper refers to the literature on non-experimental methods because of the non-randomness of the assignment of firms to the groups of beneficiaries. To be more precise, the matching methodology is used. The empirical analysis takes place in two steps.
First, the study identifies a group of untreated firms which are as similar as possible to the treated. Initially, the analysis deals with the curse of dimensionality (firms may be similar in a given dimension but different in others), which we address by using the propensity score. The matching between treated and untreated is carried out by using an index of the probability of being treated, known as the propensity score. In this sense, the propensity score forms the basis for the match. This approach addresses the problem of a non-random assignment to the programme and controls the groups of treated and untreated by comparing observations that are similar concerning their characteristics. The idea of considering observable variables is to eliminate the initial differences between treated and untreated so that the assignment to the programme is random. This is known as the Conditional Independence Assumption (CIA) and ensures to control for sample selection bias. In other words, if the CIA holds, then the differences between treated and untreated can be attributed to the R&D programme. In order to test the quality of results, different goodness-of-fit measures are used and some robustness checks are performed.
In the second step of the analysis, the group of matched-untreated firms is identified and the ATE, that is to say the effect of R&D policies on the treated, is measured. As shown below, in order to test the robustness of the effect, matching has been carried out in different ways.

The participation model
Firms' participation in the R&D programme is modelled as a binary choice, where the dependent variable takes the value of one if the firm is in the group of beneficiaries and zero if it does not actually benefit from any support. The propensity score is obtained as a conditional probability of being in the programme, provided a set of firm's characteristics. Following the related literature, a broad variety of variables that might have an influence on a firm's decision to participate in a R&D programme is used. The variables are the following: firm size and firm age, total debts, cash flow, number of patents, a dummy equal to unity if the credit obtained is less than that the firm required at the market interest rate, and a measure of human capital. In estimating the probit equation, we also control for sector and South effects. In order to control for sectoral heterogeneity which might be influential in determining the probability of participating in the programme, we include dummy S4 which is unity if the firm operates in science-based sectors and zero otherwise, that is to say the dummy is zero if the firm belongs to one of the other three Pavitt sectors (supplied-dominated sectors, scale intensive sectors, specialised suppliers). We also use the variable South which is a binary variable equal to unity if the firm is located in the South of Italy and zero otherwise. The variable South is supposed to capture the non-observable differences between the Centre-North and the South of Italy.
Results are displayed in table 2. Despite our interest is in understanding the effectiveness of the policy, it is useful to briefly discuss some results. It is interesting to point out that the probability of being treated is negatively dependent on the age of the company, in the sense that the probability of participating is higher for young firms than older ones. The evidence shows that size does not affect the probability of being treated, while significant impact has been found with regards to cash flow: the higher the internal finance, the lower the probability of participating in the R&D programme. Although the statistical significance is not high, similar results emerge for the effect of debt on the probability of participating. Finally, being located in Southern Italian regions reduces the probability of participating in a public programme of support for private R&D activities ( Table 2).
The usefulness of considering a participation model is that it helps to balance the distribution of firms' variables across the two groups of treated and untreated firms. In this respect, the balancing property of the propensity score must be satisfied before proceeding with the matching of firms (Rosenbaum and Rubin 1983). This condition requires that firms with the close propensity score must have the same distribution of observable covariates independently of the treatment status. This ensures that, for any propensity score value, the assignment to treatment is meant to be "random" and, therefore, treatment and control units are observationally identical, on average. Put in a different way, the balancing property says that treated and controls are close in terms of observables and, therefore, that matching is possible. From a practical perspective, the test is an iterative procedure. It requires treated firms to be divided into a number of strata according to their estimated propensity scores. When, in each stratum, the regressors of the probit model do not differ between treated and untreated, then the participation model may be considered adequate to balance firms' characteristics. In the case of imbalance, even in a single stratum, the second step is to consider strata more finely. It might be that the property is not satisfied whatever the strata. This leaves room for modifying the participation model through the introduction of higher-order terms (squares, cubes etc.) for particular variables or for interactive terms. Hence, this test can provide a useful diagnostic with regard the specification of the participation model. The model specification presented in table 2 is that which guarantees that the balancing propriety is satisfied.
After it has been verified that the participation model satisfies the balancing propriety, the next step is to select the outcome-variables of interest so as to determine their average values between treated and untreated-matched firms and to use the difference in average as a measurement of the impact of R&D programme. In order to pursue this goal, firms must be matched and this is done by referring to different procedures, as is shown in the following section.

Number of firms to be selected: matching at work
The first matching is performed through the nearest neighbour method (henceforth NNM), where each treated firm is matched with the untreated firm with the most similar propensity score. The selection of controls has been carried out with repetition. This means that the possibility of assigning the same nontreated to more than one treated was not excluded a priori. Table 3 indicates that the number of units included in the untreated control group is 399, a value lower than 481, which is the number of treated firms used in the matching under the restriction of common support.
Through NNM, it is possible to match a treated with a control with a very different value of its propensity score, because it is the closest among those available. This caveat is overcome by fixing a minimum distance between the two propensity scores to be matched. This is the idea of radius matching, which ensures that for each treated, the group of controls is comprised of all the firms whose propensity score has a distance that is less than or equal to a certain "radius" (which will tend to be very close to zero: for example 0.01). Results may be sensitive to the size of the radius that is the basis for matching: the smaller the radius, the more difficult it is to find a match within that range and this will lead to a greater number of cases failing the support requirement. In this study, three radii are considered, 0.1, 0.05 and 0.01. Table 3 shows that there are always more than 1,900 matching-untreated firms. It can also be noted that the number of treated used in the matching is 480 when the radii are 0.05 and 0.01. This means that only one firm is excluded because there is no control whose propensity score is within the interval defined by those radii.
The third approach used in matching the firms is the stratification method according to which the propensity score is divided into strata, in such a way that, within each strata, the treated firms and the untreated firms have the same propensity score, on average. As table 3 shows, the stratification method uses 481 treated firms and 1,912 untreated firms.
Finally, firms are matched by using kernel matching, through which all untreated firms are used as controls. This means that all the information available is used in the analysis, as all firms -treated and non-treated -are included in the estimate of the treatment effect. Under the common support requirement, 481 firms are used by the kernel matching as participants and 1,912 as nonparticipants in the R&D programme.
Before passing on to the discussion of the treatment effect, it is essential to verify if the matching is appropriate. The importance of whether the participation model satisfies the balancing condition has already been discussed. A further confirmation of the appropriateness of the matching comes from comparison of the estimated propensity scores across treated and controls. This comparison provides a useful diagnostic tool to evaluate how similar treated and controls are and, therefore, how reliable the estimation strategy is. Figures 1 and 2 display the estimated propensity scores before and after matching. In figure 1, the kernel of propensity score for treated firms is compared to that obtained for the sample of the potential group of control, while, in figure 2, the focus is on the group of firms used as controls and obtained applying the NNM. As can be seen, the matching works well given that the overlapping of distribution improves moving from figure 1 to figure 2. As the graph of the propensity score distributions after the matching shows, both groups of firms are well balanced with respect to the propensity score.

Discussion and conclusion
Previous sections mention that the paper is aimed at evaluating the impact of R&D policy support received by a sample of Italian firms over the 2004-2006 period. Due to the lack of other information about the type and amount of funds received by these firms, the only research question that we can ask is whether the subsidized firms perform better than firms that did not receive any support. As in all evaluation programs, the next and final step regards the identification of the outcomevariables, that is the variables that R&D policy is expected to change. Just as with many other papers in this field of research, the outcome variable selected is the R&D investments made by firms. The Capitalia-UniCredit survey reports on the annual amount of money spent on R&D investment by firms. We utilise R&D expenditure in absolute terms and as R&D intensities (R&D expenditures as a share of total sales). While R&D investment is an input of the innovative process carried out by firms, there may also be interest in investigating the effect on output of innovative effort. In this respect, we consider the proportion of sales which is due to innovative products.
Results of the calculation of ATE obtained through matching methods are presented in table 2, where, for each variable-outcome and each method, we summarise the number of treated and controls, the average of the variable for treated -labelled Y(1)and untreated -labelled Y(0), the mean difference, Y(1)-Y(0), and the value of t-statistics obtained with bootstrap. In panel A, the results are those under the common support condition, while this condition has been relaxed in panel B.
The calculation of counterfactual outcome differs across the methods. In the case of NNM, it is the average value of the output-variable for the untreated, while, in the case of the radius method, it is obtained by averaging the outcome-variable of controls belonging to the radius. The stratification method uses two steps. Firstly, the procedure determines the mean difference between Y(1) and Y(0) in each stratum. It is like a policy effect within each stratum. The overall impact is calculated as the weighted-average of differences in the various strata, where the weights are the number of treated firms in each strata. The idea is to give more weight to the strata with many treated firms. With regard to the kernel matching, the counterfactual Y(0) for each i-th participant is determined as a kernel-weighted average of the outcome of untreated, where the weight of each j-th untreated is in proportion to how close its propensity score is to that of the i-th treated firm.
Let us now present the main results of the analysis. When considering the NNM estimator and the common support requirement, it is found that the average R&D intensity is 0,88% for the 481 subsidised firms and 0,49% for the group of 399 treated. Thus, the resulting effect is about 0,4% and is statistically different from zero even after bootstrapping. However, this evidence is not robust to the procedure used for matching. Indeed, the average treatment effect remains positive and amounts to about 0,15% with any method other than nearest neighbour, but its significance is lost. Similar results have been found without the common support condition. Based on this, it may be concluded that public R&D policy does not generate a significant positive effect on the R&D efforts (measured through R&D intensities) of Italian manufacturing firms. Table 2 also displays estimations of the average treatment effect on the level of R&D investments. In this case, the picture changes drastically. With regards the effect obtained using the NM method, it is found that, on average, the treated firms invest about 969 thousand euros in R&D, while the untreatedmatched firms invest 273 thousand euros. This difference represents the ATE which amounts to 696 thousand euros. More importantly, this difference is statistically diverse from zero, as the bootstrapped tvalue is 2.9. For a robustness check, it is necessary to look at the other estimations. It emerges that the set of untreated is comprised of more than 1,900 firms and the resulting average of R&D investments is always more than 400 thousand euros. This implies that the mean difference decreases (ranging from 535 to 576 thousand euros), but, above all, that ATE is always statistically significant. The same applies when the common support hypothesis does not hold.
To sum up, the impact of R&D support depends on the method used to measure the R&D efforts.
When the outcome-variable is expressed in absolute terms, that are the value of R&D investments, the evaluating analysis yields a positive robust significant effect of incentives, while no conclusion can be drawn when using the intensity of R&D activities.
The impact on inputs is useful to the extent that it is accompanied by a similar impact on the outcome variables of the innovation process. Assessment of the effects on output responds to the question of whether the results that are observed are due to the subsidy, and to what extent they would have been obtained even in the absence incentive. In this sense, we consider the sales on innovative products (expressed as the percentage of total sales). Data refer to 2006. The analysis shows that, on average, innovative products account for about 8% of firms' sales. While this amount is slightly higher for untreated than for treated, the difference is not statically significant, whatever matching procedure is used.  The final number of blocks is 9 -This number of blocks ensures that the mean propensity score is not different for treated and controls in each blocks. The balancing property is satisfied.


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Sustainability in the wine industry : Key questions and research trends a

Sustainability is playing a key role in the wine industry as shown by the attention paid at several levels by the academia, institutions and associations. Nevertheless, the principle itself of sustainability opens a wide debate and it significantly affects firms in all their activities.Using a systematic literature review, this paper wants to highlight some of the questions that academics must face when they approach the issue of sustainability with a specific focus on the wine industry. In particular the paper aims to: highlight where research is going and what has already been done; define the contribution of background research in explaining the determinants of sustainable orientation in the wine industry; and understand the role of research (and academics’ social responsibility) for the diffusion of a sustainable orientation within the wine industry. The purpose of this paper is to provide a detailed overview of the main research contributions to the issue of sustainability in the wine industry.

INTRODUCTION
The wine industry is definitely engaged in sustainability. The emerging interest on sustainability is confirmed by a growing body of the academic literature on this research issue or by the rise of new academic journals and scientific communities. Nevertheless the industry has shown an involvement in sustainability in general, and people in the wine industry wonder about the effectiveness of sustainable practices and if it pays to be sustainable oriented. Talking about sustainability opens to a multitude of research issues, especially in wine, where being sustainable is often misunderstood with being organic or biodynamic. This paper investigates the body of academic literature about sustainability in wine starting from prior researches (Casini et al. 2010) and highlights what are the main challenges that scholars must face when they get into this research issue. After having provided a description of where the research is going, the paper will try to explain the determinants of a sustainable orientation among firms and it will highlight the role of research in promoting sustainability.

SO MANY GREEN NUANCES
The word "sustainability" has so many definitions that it holds a shadow of ambiguity (Warner, 2007). Nevertheless, there is not an univocal behaviour to be defined as sustainable and some companies appear to be much more sustainable than others. Isaak (2002) distinguishes between green and green-green businesses; green -green businesses are those businesses that have been designed to be green oriented since their start up, whilst green businesses have became green after that managers-who are not inspired by ethical issues -have discovered the advantages of such an orientation in terms of marketing benefits, corporate image positive feedbacks or cost savings. There is also an heterogeneity in the geographical diffusion of a sustainable orientation among countries: the world Atlas shows that some areas are "greener" than others. In the global scenario, the California holds a leading position among the most sustainable agricultural producing countries: Warner (2007) describes the efforts spent by Californian winegrape industry for reaching and educating growers about quality issues and sustainability; the availability of place-based networks of production has facilitated social learning among grapegrowers. Warner (2007) says "More than any other group of California growers, winegrape growers are operationally defining sustainability as agricultural enterprise viability, environmental quality and product quality". In Northern California there are about 40 industry organizations active in promoting sustainability that should apart from the associations that operate nationally in organic viticulture (Washington State Association of Winegrape Growers; Oregon Wine Advisory Board; New York Wine & Grape Foundation; Penn State Cooperation Extension; Wine Council of Ontario, etc..). Another case worth to be mentioned is the case of Lodi region in California (Ohmart, 2008) that is an effective description of the responsiveness of a local economic system to sustainable issues: after having released a workbook programme that encompasses all the sustainable practices in winemaking, results have been monitored in order to assess how principles have been receipted and what action plans for improvement have been implemented by companies and associations. The great success of the Lodi programme relies in the active involvement of growers that has happened due to workshop, a proactive behaviour of associations and effective communication flows. Starting from the differences among wineries, some scholars (Casini et al. 2010) have proposed a model that would help to classify wineries' orientation in terms of sustainability; the model proposed by Casini et al.(2010) provides four different possible profiles of wineries. The so called "devoted" wineries are those that show a strong orientation towards sustainability that is emphasised by wineries when they communicate with customers so that company's image can be associated to a green orientation; those companies must invest on customers and employees training and education programmes in sustainability and need to ensure an alignment between corporate vision and managerial vision. Another category of wineries, the so called "unexploiters", stands half the way between devoted and another category called "laggards" that are those wineries who would never adopt sustainable practices: unexploiters usually decide to adopt sustainable practices, but do not communicate and share with other people (clients, first of all) their decision. Such a behaviour limits the benefits that might be gained through a sustainable orientation. At the opposite of unexploiters stand opportunists: those are wineries that don't have a particular interest in sustainability, but tend to heavily communicate the few sustainable practices introduced. As it emerges, sustainability is a complex issue: there are many ways of being sustainable, and researchers must consider that things cannot be seen all black or white because is it possible to find too many (green) nuances. We conceive sustainability as a behaviour adopted for responding to stimuli, weather they are external or internal to the firm. This perspective introduces in the discussion three elements: firstly the presence and the type of stimuli or drivers; secondly the responsiveness of organization; thirdly the motivations behind a behaviour. In other words, we can say that sustainable orientation depends on how it can be answered to the following questions: who cares about sustainability issues? How much do I and my organization care about sustainability? Why should we care about sustainability? This paper aims to systemically analyse the main academic contribution to the issue of sustainability in the wine industry in order to outline insights that can depict strategic, managerial, consumer and organizational implications and to highlight what are the main challenges that scholars must face when they get into this research issue. After having provided a description of where the research is going, the paper will explain the determinants of a sustainable orientation among firms and it will outline the role of research in promoting sustainability.

KEY DRIVERS OF SUSTAINABILITY
Analysing the drivers of sustainability is, in our opinion, the first step for understanding the relationship between firms and sustainability: exploring the incidence of perceived stimuli on companies' choices represents a way for explaining firm's behaviour. By conceiving sustainability as a behaviour adopted by firms for responding to selected stimuli, we want to focus on the impact that forces (external or internal to the firm) have on firm's strategy; sustainability being one of the multiple facets of the set of firm's strategic decisions must be considered as part of a firm's strategy. The presence of drivers affecting firm's orientation towards sustainability partially explains the differences in the overall degree of sustainability at a firm or at a country level. Although the existing differences among countries in terms of sustainable orientation, due to the complexity of the sustainability issue, it is almost impossible defining a general country ranking: the numerous indexes available simply suggest that there are many differences among countries, but it is extremely hard to define which are the most sustainable countries in the world, because of the differences in index composition and in the aspect of sustainability observed. A focus on the key drivers to sustainability offers a balanced solution to this problem. It has been progressively given emphasis to the issue of drivers both among academics and practitioners. Accenture has elaborated a list of six key drivers of sustainability, that "are not only reshaping the way businesses and governments operate, but also redefining the value they deliver" (from corporate website); they are: Consumer demand for sustainable products and services; stakeholder influence; Resource depletion; Employee engagement; Capital market scrutiny; Regulatory requirements. Also background research (Dillon and Fischer, 1992;Lawrence and Morell, 1995;Winn, 1995;Bansal and Roth, 2000;Davidson and Worrell, 2001;Marshall et al., 2005;Gabzdylova et al., 2009) has highlighted the role of drivers -whether they are conceived as internal/external or internal/institutional -to describe firm's sustainable behaviour adoption. Internal drivers are all those drivers that take place within the firm: they are ethical motives inspiring top management and entrepreneurs as well as strategic intentions based on the recognition of an advantage that might arise from sustainability. External drivers, instead, take place in the firm's external environment.

Institutions, Associations, Regulators and Market Demand
External drivers are all those happening outside of the firm sphere: pressures coming from institutions, customers, communities, associations, environmental groups, activists, regulators and also competitors. Background research has highlighted the role of industry associations in promoting an awareness among grapegrowers and wineries towards sustainability (Broome and Warner, 2007;Warner, 2007). An orientation towards establishing networks among local players is a key factor of success. In some specific contests, such as California, it emerged that agroecological partnership became the leading vehicle for extending sustainable agricultural practices (Swezey and Broome, 2000;Dlott, 2004); it has also been recognised the proactive role that those partnerships had in spreading a green orientation among wineries (Broome and Warner, 2008). Environmental concerns find a diffusion among wineries and are strictly related to corporate image. New Zealand is investing in environmental issues: "The New Zealand wine industry aims to be the first in the world to be 100% sustainable. The Sustainable Winegrowers New Zealand (SWNZ) programme introduced in 1995 is a framework of industry standards set up to achieve this by vintage 2012." (from the website: http://www.newzealand.com). Besides initiatives promoted by associations and institutions it should be reminded the efforts paid by single companies for promoting practices that would reduce, if adopted, gas emission and wastes. The case of The Wine Group, in the US, symbolise the consideration that big companies give to environmental issues: The Wine Group has launched in 2008 a website (www.betterwinesbetterworld.com ) for documenting how Bag in Box can help in reducing emissions and wastes (http://www.winebusiness.com). New World and Old World must face similar environmental challenges but they strongly differ in terms of fertiliser usage, that is significantly lower in Europe (http://www.eea.europa.eu). The development of specific programmes for sustainable winegrowing has fostered the adoption of "ground to bottle" practices for producing grapes and wine (Broome and Warner, 2008). A key issue to consider is the willingness that institutions and organizations have to provide a long term financial support to sustainable programmes and training activities: it has been underlined by Warner (2007) how a sustainable committee requires financial supports for funding continuous investments. Also institutions and regulators have played a key role in enhancing wineries interest towards sustainability by funding specific practices adoption and by educating through a sustainable orientation (Swinbank, 2009). It has been demonstrated that competitors' orientation towards sustainability can promote a mechanism of adoption that affects other companies in the competitive environment: Murphy (2000) describe the introduction of the flange-type bottle with a C-cap on the market by Mondavi, that has been subsequently adopted by other wineries in the market who, conscious or unconscious, have embraced the same principles that have inspired Mondavi before the product launch. Consumers' involvement in sustainability is also reshaping wineries' interest toward this issue, as it has been perfectly described by Bisson et al. (2002):"As consumers become more aware of the vulnerability of our global environment, the demand for sound agricultural production practices is increasing. In the future, the perception of the producer as a conscientious environmental steward will be an important influence on the consumer's purchasing decision. This is due in part to the fact that the typical wine consumer is well educated and affluent." (p.698). The pressures coming from consumers have created a market for wines that have been realised taking into account environmental issues, such as organic or biodynamic wines (Forbes, et al. 2009): in particular, in some countries, as the UK, organic wine moved from a niche to a mainstream position (Sharples, 2000).

Entrepreneurs and Top Management
Most of the research has focused on explaining the role of external drivers in enhancing a sustainable orientation within firms and fewer has been done about internal drivers. A consistent body of research, instead, can be found in the general management and business strategy literature, that analyses the role of people involved within the organization in promoting a sustainable orientation: it has been investigated the role of top management's values in determining sustainable orientation (Berry and Rondinelli, 1998;Quazi, 2003), entrepreneurial commitment to sustainability (Shaltegger, 2002) or management practices and principles reshaped by a sustainable orientation. In some cases, some niche research fields were borne by providing a "sustainable" perspective to diffused and internationally adopted research approaches: it is the case of Ecopreneurship (ecological entrepreneurship) or Natural Resource based View a version of the Resource Based View of the Firm approach mainly based on environmental issues. Ecopreneurship is a term that has been introduced in early 90s (Bennett, 1991;Berle,1991;and Blue, 1990) and that names a growing body of literature that investigates most of the critical questions in Entrepreneurship from an econological and environmental perspective. The works by Walley and Taylor (2002), Shaltegger (2002), Schaper (2002) provide a comprehensive overview of this research field. From the research it emerges the prominent role that personality traits can have on the degree of a sustainable orientation within firms: Regouin (2004), exploring the conversion to organic agriculture determinants has highlighted that it depends on some personal traits such as curiosity, flexibility, risk propensity and creativity in exploring innovative marketing approaches.
Although the presence of a growing body of academic literature that is exploring the "internal" drivers towards sustainability, a few has been done on wine. Bonn and Fisher (2011) say that Sustainability is often a missing ingredient in strategy: there is a great debate on corporate social responsibility, corporate environmentalism, sustainable practices adoption, green marketing, green corporate image, etc..but the issue of sustainability is not considered as priority in strategy making. Research in wine has focused on the relationship between a sustainable orientation and a competitive advantage. It has been shown how being organic gives a contribution to an effective differentiation (Bernabeu et al., 2008): Delmas the al. (2006) explores the case of a winery in California (it is the Ceago winery, owned by Fetzer), that chooses to produce organic wine for differentiating its product from the mass; Pugh and Fletcher (2002) examine how a wine multinational corporation (the BRL Hardy) addresses itself to a specific and different market segment through one of its controlled brands (Banrock Station) who releases organic wine to the market.

4.
THE ROLE OF RESEARCH As well as the wine industry, also wine research is going green. Research in sustainability in the wine business has been fostered by the growing interest of the wine industry itself and by the active role of institutions -that funded specific research programmes -associations or single companies. A kind of virtuous circle has happened in this research field: once supported research has promoted a further interest in sustainability and new researches have been promoted. Generally speaking we can say, by observing some cases, such as the Washington State Wine Industry, that University research has fostered the development of the wine industry (Stewart, 2009). Ohmart (2008), when observing the diffusion of sustainable practices among grapegrowers, suggests that it depends on two factors: the rigorous science and its effective delivery to grapegrowers, two issues that might explain any existing difference in terms of penetration and diffusion of sustainable practices in viticulture. Also Guthey and Whiteman (2010) when analysing the history of winemaking in California, say that funded university research has contributed to shape Californian wine production thanks to the useful inputs provided for developing winemaking practices and understanding human environment relationships. The field of sustainability in the wine industry appears as a breeding ground for the development of academics and university collaborations: the paper proposed by Lee (2000) provides a general framework that can be used for describing the benefits arising from the relationship between academics and industry. In general it can be said that the industry, by cooperating with research institutions, can be helped in solving technical problems; can have an easier access to useful findings and can be facilitated in the innovation implementing process. There is no surprise about the fact that the industry is supporting research in some countries: it is the case of the Wine and Food Institute in California cofounded by Robert Mondavi Winery, the Anheuser-Busch Foundation and Ronald and Diane Miller of Silverado Vineyards to conduct research on wine and food (www.winespectator.com). Due to the social implications that sustainability, as a research issue, has, we can say that researchers who are working in this field have a social responsibility; through their work, researchers can foster the adoption of sustainable practices among wineries at different levels and contributing, indirectly to the growth of the overall welfare of people living in a certain area.

Methodology Where is research going and what has been done?
In order to answer to this specific question we have carried out a systematic literature review by analysing academic database and some wine academic journals. In particular we have performed a keywords based research in the following academic search engines: ISI web of knowledge, Scopus and EBSCO (that contains Econlit, Business Source Premiere and Greenfile databases). It has been chosen to perform the research among selected sources and specific database and not to start from other academic search engines that are more generic (i.e. Google Scholars) and would surely provide much more results. This choice has been made because the search engines selected are the most widely diffused among scholars and search results are more likely to be generalised rather than others coming from a search on university library catalogues or internal database or generic search engines. The keywords used, combined with the word "wine" are: green, organic, sustainable, sustainability, biodynamic, ecopreneurship, environment. We have also selected some academic journals specialised in wine, and we have checked the presence of articles that examine the issue of sustainability in wine; the journals selected are: the International Journal of Wine Business Research; the Australian journal of Grape and Wine research; the Journal of Wine Research, Enometrica and the Journal of Wine Economics. We have decided not to focus on practices analysis: there is a wide literature on environmental and organic practices in the wine industry, but it mainly focuses on winemaking and agronomic aspects and we are interested in management, strategic and marketing issues. Background research has provided us useful inputs for performing our systematic literature review; in particular the works by Lobb (2005) and Thieme (2007) have been helpful for the methodology designing of the analysis. The work by Hart (1998) has been extremely useful for understanding how to analyse results. After having verified their contents, the articles have been included in a database that has been created for sorting and analysing results. We have then classified the articles collected into four main categories, that have been built on the basis of major JEL classifications.

Topics, Geographic area and Research techniques employed
The main four categories corresponding to our classification of the main body of research are (table  1): Strategy; Entrepreneurial and Top Management Behaviour; Consumer Behaviour; Supply chain management and certification. Along these categories it is important to observe the differences emerging from the geographic area in which researches have been carried out. The category "strategy" includes all those articles that deal with the issues of business strategy and sustainability. It is a matter of fact that research on strategy is mainly performed in the New World Countries: Chile, New Zealand, US, Australia, Argentina lead the way to understand the links between wine and sustainability in a strategic orientation. Research techniques employed are often qualitative and case study research is frequently performed. One of the reasons could be the necessity to explore the main drivers of pressure towards sustainability taking into account the motivations and opinions of different wineries' stakeholders. In fact, according to Flint (2009), in order to conduct such exploratory researches, it is necessary an appropriate methodology such as the grounded theory that has been used to reveal how social actors interpret and act within their environments. In other papers, the aim is to give an enlightenment of an entire sector at national or regional level and for this reason a multidisciplinary case study approach is employed (Guthey and Whiteman, 2009;Cederberg et al., 2009). The issues investigated in this category is extremely wide but it is possible to synthesize two trends: at country level the analysis is carried out to understand the boundaries of emerging organic wine industry and in some instances the implications to promote place branding activities; at firm level the interest is for internal and external pressures towards sustainable and environmental practices. Even more concentrated is the research investigating "entrepreneurial and top management" drivers for the adoption or improvement of environmental behaviours: Marshall, Cordano and Silverman, use the Theory of Planned Behaviour and the previous Theory of Reasoned Action mainly in US (California) and New Zealand wineries. Results are not univocal because the weight of internal and external pressures, attitudes and subjective norms can change case by case and the papers give evidence of interactions among considered variables. Consumer behaviour field instead is investigated worldwide. In this review it emerges as Europe is focusing more on consumers' perception of, and wtp for, organic wine while the New World research is oriented to a more complex issue such as the environmental friendly label or a more general topic as the green production practices. This is the category where quantitative analysis and statistics techniques are more used and developed. Finally, research in the field of supply chain management and certification aim to give an overview of various tentative to implement codes of sustainable winegrowing practices and to reduce the impact of environment based activities on carbon emission; these researches are carried on both in the New and Old World. It is worth to stress the various methods employed to analyse impacts and practices efficiency on environment; this is the evidence that not a precise technique or tool seems to have been recognized worldwide as a standard for such measurement and thus more research is needed.

CONCLUSIONS
We have seen how a tight relationship between academics and industry can provide benefits to the wine industry and improve its overall orientation towards sustainability: research can help winegrowers in the adoption of sustainable practices and can provide answers to some managerial issues. Scholars (Guthey & Whiteman, 2009) suggest to focus research on a few critical aspects, such as the reconfiguring and understanding of economic performance and the creation of the conditions for incremental adjustment and multidisciplinary learning to happen.
Research has a social responsibility in the development of a sustainable orientation in the wine business: research results once spread can motivate wineries to adopt a sustainable behaviour and create a sustainability awareness among industry and consumers. The main challenge is "to change perceptions and mind-sets, among actors and across all sectors of society, from the over-riding goal of increasing productive capacity to one of increasing adaptive capacity, from the view of humanity as independent of nature to one of human and nature as coevolving in a dynamic fashion with the biosphere" (Folke, 2002, in Guthey & Whiteman, 2009); research plays a key role in this goal achievement, by helping managers and people during the process of learning and adaptation to the evolving social conditions. Some scholars perceive as critical the understanding of drivers role in the sustainable orientation: "We encourage further intra-industry, as well as inter-industry, research in order to better understand when internal and external drivers are most critical, and perhaps at times, less critical, in ushering in environmental stewardship" .
It emerges that one of the key question research should answer to is "under what conditions sustainability happens". The wine industry is particularly suitable for research on sustainability, as it has been shown by the analysis of the literature performed. Anyway, although sustainability issues are affecting the wine industry all over the world, research doesn't show to keep the path of such a diffusion and it is much more intensive in some countries rather than others, as it has emerged from the analysis provided. It can be said that research is much more concentrated and focused on sustainability in wine in those countries where drivers' pressure is stronger. The originality of this paper (Hart, 1998) relies in being the first classification about research on sustainability and wine. The paper aimed to identify the main methodologies and research technique used, as well as the main problem observed by scholars. Further investigations in order to highlight any relationship between university research and key drivers pressure should be carried out.


As-puma ; anycast semantics in parking using metaheuristic approach

The number of vehicle used in the world are increasing day by day resulting in the obvious problem of parking of these vehicles in residential and vocational areas. We perceive the problem of vehicles parking in vocational establishments / malls. Today majority of parking systems are manual parking systems where in, on the spot, parking of the vehicle is done and a parking slip is generated and handed over to customer. This is cumbersome technique wherein various parking attendants in the parking areas manually keeps on informing the Parking inspector on how many free parking slots available so that only that many number of parking slips/tickets are generated as the number of free parking slots. We address the problem of parking in Delay Tolerant Network (DTN) by proposing metaheuristic driven approach of Ant Colony optimization (ACO) technique with anycast semantics models . Here we propose the parking architecture to solve the problem of parking especially in commercial areas with their design diagrams . In this architecture we apply the delivery model to deliver the packet correctly to the intended receiver. Using this we can book various parkings through remote areas so that the customer can get the information about availability of various parkings inside an area and the parking fare for each category of the automobile. Using this architecture the customer can get the prior knowledge about various vacant parking slots inside a parking area and he can book the corresponding parking from his location.

INTRODUCTION
The MANETs (Mobile Ad hoc Networks) [1] address challenges related to mobility and low battery life when there is no pre-existing communication infrastructure. In most of these routing techniques there is an underlying assumption that there always exists a connected path from source to destination. Delay/Disruption Tolerant Networking (DTN) [2], variant of MANET adopts the concept of intermittent networks that may suffer frequent disconnections. A Delay-Tolerant Network is those networks that may experience frequent disruptions, long-duration partitioning and may never have an end-to-end connected path. [4,5,6]. In this work, we deal with the problem of routing in a Delay Tolerant Network. In contrast to the traditional routing techniques of MANET's where the aim is fast delivery of a message, here the aim is the delivery itself. Since the links are available for a time being so that packet must be stored and forwarded afterwards, delays are inevitable in such networks. Therefore, the design of protocols for those networks becomes a unique challenge. Routing in DTNs is one of the key components and remains open for discussion.
There are two evolutionary approaches we can solve our problem (Routing in DTN) one is by genetic Algorithms and Second is Ant colony Optimization

GENETIC ALGORITHMS:
GA are global search and optimization Techniques modelled from natural selection, genetic and evolution. The GA implements this process through coding and special operators approach. The basic rules of GA were first observed [9]. Excellent reference on GAs and their applications were found [10]. A genetic algorithm maintains the population of candidate solutions, where each candidate solution is usually coded as binary string called a chromosome. The best choice of coding has been shown to be a binary coding [9]. The chromosomes set forms a population, which is estimated and ranked by few particular function called as fitness estimation function. The fitness estimation function play a critical role in GAs because it provides information about how good each candidate is. The initial population is usually originated randomly. The evolution from one generation to the next one involves mainly three steps: fitness estimation, selection and reproduction [11].

1.2: ACO[3],[7]
Aco is an algorithm founded on the experience of real ants in searching a shortest path from their nest to food. The algorithm exploits the experience of real ants when they search for food. It has been seen that the ants laying down Pheromone at the time of searching the food. Once when the food is discovered by the ants again they deposit the pheromone in its path while returning to its nest. By doing this, ants following the shorter path are expected to return earlier and hence the pheromone level becomes low where, the following the longer distance. ACO takes the infusion from the real ants. These ants drop down the pheromone on the path to get some path which is compatible to followed colony member also. However, the pheromone evaporation is done at a constant rate after a certain interval of time that's why only those path are remains (kept marked) which was most frequently visited and rarely visited path are lost because of the lack of pheromone deposit on that path hence as a result the other ants are intended to follow repeatedly used paths only. Thereby, all the ants in a search of food starts their journey can get the information provided by the previously visitor ants and are monitored to follow the shortest path as indicated by the pheromone deposit by other ants We propose a routing approach using Ant Colony Optimization (ACO) [3,7], wherein the route and destination decision influence many parameters simultaneously. As ACO suggests that in the natural world, at first the ants move randomly, and upon finding food return to their colony while drop down pheromone footprints, same way our problem of parking vehicles proceeds. But here we are taking a bit step further that we are maintaining a server which provides all the information about the parking slots in a particular area

PROBLEM DEFINITION
Few years back there was no problem of the parking at all, because at that time there is no space problem so that no restriction for parking and only few vehicles so that no more load to take. When the population increase hence the production of vehicles (car's) also increased that's why the load on the road were increased, diminishing parking space and a myriad of confusing rules and regulations car owners find's it extremely difficult to find a solution to problem of parking.

PROBLEM ARCHITECTURE
The proposed architecture that we have conceived around n-Tier is given by:-

ACO ROUTING WITH ANYCAST SEMANTICS DELIVERY MODELS
For applying the membership model efficiently in our parking problem, anycast semantics is used to maintain the groups. DTNs has long delay for delivering the packets, at the time of delivery of packet there may be the member of the group change their groups. For the above its exigency to narrate a new anycast semantics model for DTN.
Here in fig 1 we can see that the request packets are being broadcasted through the mobile vehicles. These mobile vehicles are being divided into groups for forwarding the message. After making groups we apply a delivery model for delivering the request to the server by these mobile vehicles. In fig 2 if the packet has been broadcasted by the mobile vehicle, there is no need to apply the delivery models [8] on mobile vehicles but once the path is established, we apply the delivery models because the vehicles are mobile. At that time we need to apply a delivery models on that. It is described that the intended receiver should be clearly defined for a message as group membership changes when nodes join and leave the group. Hence, here three anycast semantics model are demonstrated that's permits senders to explicitly specify to intended receivers of the message.

Current membership model:
In this model the receiver of the packet should be destination group member at the time of message delivery. i.e When the packet reached to the intended receiver group the that particular mobile vehicle must be there in that group otherwise packet will be discarded.

Temporal Interval membership model:
In this model the sender sends a packet and also specify the time period during which the receiver must be the part of intended group at least once. If the receiver not a part of the intended group during that period of time defined by the sender the packet was discarded. i.e here the packet the time period is define for the delivery of packet. If the intended receiver atleast once between the time period define for receiving that packet hence packet will be discarded.

Temporal point membership model:
Its intended receiver at least should be a member of destination group at some time during membership interval. i.e in this model the packet will be forwarded to some of the mobile node of that intended group. So that the packet we be delivered to the intended receiver when it will join the group By the use of these models we can deliver the message to the intended receiver correctly.

FUTURE WORK AND CONCLUSION
In future we would apply ACO to develop an efficient routing algorithm in addition to the algorithm stated in this paper. Thereafter using the concepts of Java Programming language, we would try to built a Open Source APL (Automated Parking Tool) around ACO technique to solve the realistic problem of parking of vehicles in parking/ bay areas. We would also try to implement the delivery models for delivering message to the appropriate vehicle and would design a dedicated server for each area which will contain all the information of that particular area. Messages will behave as an Ant and server as a food. A request would be generated and it will be broadcasted through the mobile vehicles for searching food. Once the request (ant) reaches the server (food) ,the reply will be unicasted and these paths are maintained by that particular group (nest) where the intended vehicle is situated .


Value Creation for the After-Sales Services： Organizational and Strategic Perspectives

As a part of the product development process, the after-sales services are not only a source of innovation, but also they benefit from value creation through new managerial methodologies for the achievement of competitive advantage and customer satisfaction. The objective of the paper is to further understand value creation for the after-sales services. We present the case of the creation of a new business for the after-sales services for the entrance into a new market. The new business is created by two gurus in the aerospace industry. A typology of guidelines is derived, based on organizational and strategic perspectives, for the after-sales services value creation and the guidelines for the creation of a new business as well as for the entrance of into a new market are presented.

Introduction
The servitization process is the starting point toward the recognition of the growing value of services as compared to manufactured products; in complex industries, this contributes to the move from the industrial to the post-industrial economy. Indeed, the growth derived from physical products sales has become increasingly limited, thus the move to post-industrial economy has urged a refocus of the corporate strategy of the firms. The fast technology maturity and product lifecycle, the increasing cost pressure, the decreasing of margins, the radical change of market dynamics require the identification of new value creation concepts and sources able to ensure the growth of the firms (Mattmüller & Irion, 2004).
The after-sales services represent an important source of revenues and economic performance (Saccani, Johansson, & Perona, 2007) and the manufacturing and design firms are aware of the important role of the after-sales services in the product and new product development processes and business performance (Wheelwright & Clark, 1992). The manufacturing firms take care of after-sales services in several ways; they can have either direct contact with the customers and provide the after-sales services, or delegate to a third party the after-sales services. In the automotive industry, for cost optimization and risk-sharing, the manufacturing firms tend to outsource the after-sales services (Taifi, 2008). Thus, whether internal or external to the firms, the focus on the after-sales services, from an organizational and strategic point of view, is increasing.
Therefore, we question what the value creation for the after-sales services is, which elements lead to this value creation and what the types of these elements are. In the next sections, we present the theoretical background related to the areas of service sciences and strategic management with a particular focus on the after-sales services and the business processes and networks that bring them to their fruition. Then, following are the research methodology and data collection, and the results part.

Theoretical Background Service Sciences, Engineering, and Innovation
Service science, management, and engineering (SSME) are three interconnected fields involved in many types of industries as the software, automotive and aerospace industries. Li, Wang, Yu, and Yang (2007) made a review of the literature related to the SSME stating that there is a lack of research in the service management related to the integration of business and technology, there is no clear framework for SSME, and a few research on service engineering and service innovation. They mention the increasing interest toward understanding service systems for service management and engineering. They studied the services field and defined services systems as networks, composed of people, technologies, and organizations (Maglio, Srinivasan, Kreulen, & Spohrer, 2006), creating value to the customers. They presented the service systems giving the examples of education, IT service delivery centers and patents. Thus, there are many types of services' firms as the consulting firms providing support for development of other firms-services development, the firms providing information and communication technologies infrastructures-IT-services, the firms providing after-sales services to the products.
The after-sales services are the services provided to the customers of the firms. For instance, in the automotive industry, they consist in providing technical assistance, through repair solutions and spare parts changes (Taifi, 2008) to the automobile customers. Firms in different industries use the after-sales services to achieve customer satisfaction. In the automotive industry, Alexander, Dayal, Dempsey, and Vander Ark (2002) and Wheelwright and Clark (1992) mentioned the importance of the after-sales services integration in the idea generation of the new product development. Saccani, Johansson, and Perona (2007) addressed the different possible configurations-vertical integration, centralization and decoupling of the after-sales services supply chain focusing on the internal processes of the after-sales services-field technical assistance, spare parts distribution, and customer care. Taifi, Corallo, and Passiante (2008) mentioned the importance of structuring the after-sales services firms into networks for managerial purposes or strategic communities of firms to grasp technical knowledge for innovation.

Business Networks and Processes
Firms develop relationships with partners for collaboration in the markets (Ring & Van de Ven, 1994) and acquire information and knowledge. There are many types of partners as the suppliers, customers, research centers, and services firms and each one of them has a specific role according to its position in the product development process or the value chain; these partners are functional sources of innovation. The different relationships among the partners are structured according to the roles and functions of each of them (Ring & Van de Ven, 1992) and the network structure is different according to the type of networks. There are knowledge networks (Seufert, von Krogh, & Bach, 1999) for knowledge sharing among individuals or organizations, and strategic networks (Gulati, 1998) as joint ventures, strategic alliances. There are also business networks (Holm, Eriksson, & Johanson, 1999) formed for the managerial purposes as for the business relationships for the supply of product components or after-sales services.
The processes and relationships among the actors involved in the business networks of after-sales services create inter-dependences and mutual commitments ) that lead to value creation. The business processes, among the actors, are developed through the use of IT-based information systems or face-to-face mechanisms (Taifi, 2008). The use of information technology creates value by supporting differentiation strategies (Porter & Millar, 1985) and these processes shape the structure of communication among the actors in the business networks.

Strategic Management
The entrance in a new market is a traditional way to firm's growth in industrial sectors, but it is often associated with high corporate risks in terms of specific investments, as well as for organizational challenges. The area of after-sales can represent critical revenue for industrial producers, as we consider the following assumptions (Bendig, Irion, & Oettgen, 2006):  Some of the most relevant life cycle costs related to industrial goods and plants come from maintenance, distribution of spare parts, and so on;  If compared to the production of industrial goods, the financial investments for the supply of after-sales services is clearly lower; instead, its potential return on investment is clearly higher compared to the product and plant sale;  The profits gained through the after-sales services for industrial products are less cyclical than the products sales, representing a continuous inflow suitable for the corporate financial planning;  The human resources and the technical know-how able to provide after-sales services, and the reputation required by service providers to succeed are always consolidated when these services are developed by the same producers of the goods to which they are related.
To ensure the growth of a company that faces the position in an unattractive market, due to the existence of high competitive forces (Porter, 1980), two alternative strategic choices can be considered, to be able to ensure the growth of the companies to a cumulative effect of new and product related revenues (Bendig et al., 2006):  The entrance in a new geographical market with new products or services;  The widening or the enrichment of the product portfolio within its original competences with the focus on a new service market. Under a corporate perspective, these alternatives represent the entrance in a new market; in particular for the second choice, after-sales services can be assumed to be a strategic and natural follow-up for an industrial producer (Bendig et al., 2006). Afuah (2003) insisted on the importance of understanding innovation management and presented the profit chain framework and the different sources of innovation. The profit chain consists in the necessary elements to create value; the assets and the competences needed according to the nature of innovation-incremental or radical, and derived from the internal and external environments (Prahalad & Hamel, 1990). The functional sources of innovation are the internal value chain-R&D, Manufacturing and Marketing, and its external value chain-suppliers, competitors, customers and others. The after-sales services, as services, are in the marketing or the related industries. Besides, according to Schumpeter (1934), the sources of innovation are the creation of a new business, the launch of a new product or service, or the merger or the acquisition of firms, and the entrance into a new market requires the sources of innovation (Geroski, 1991).

Research Framework and Questions
In this research, combining the concepts of Afuah (2003), Schumpeter (1934), and Geroski (1991) about the sources of innovation, the after-sales services can be a functional source of innovation for the development of new products and services, a new business and a mean for the entrance into a new market. The after-sales services are a source of innovation and it also benefits from value creation. Based on the profit chain of Afuah (2003), a value creation chain for the after-sales services in Figure 1 allows the analysis of the internal and external environment, that is a radical innovation, and to derive the assets and competences that lead to value creation for the after-sales services. The research questions are devised as follows: Main question:  What does value creation for the after-sales services (ASS) mean? Sub-questions:  What are the value creations for the ASS?  Which are the elements leading to value creation for ASS?  What are the types of elements leading to ASS value creation?

Research Method
Case studies research is used to investigate on real and contemporary contexts and events (Yin, 1994). Since the research objective is to investigate on value creation for the after-sales services, the case study mainly regards the creation of a new business of sales and after-sales services. However, another business responsible of the design, manufacturing and also the sales, is slightly presented since it is the most important partner of the new business of sales and after-sales services. The objective of these businesses is to enter new markets. The sales and after-sales services business has been created through the partnership of New business creation for new market entrance Environment Internals two firms in the aerospace industry. These founders have acquired many competences in different fields in the aerospace industry. Their expertises are similar since both design, produce, and provide after-sales services, but their partnership is also complementary since one is expert in civil aircrafts and the other in a new regional market.
The context of the study, the aerospace industry, is one of the most dynamic and complex environments. It is characterized by various types of actors, systems of collaboration, structures of networks and information systems. It is an environment in which value creation is continuously sought to acquire and sustain competitive advantage at the products, services, systems, structures, and processes levels. Thus, research in the aerospace industry provides many contributions about the complexity of the dynamic environments and many insights at the organizational and strategic levels.

Data Collection
The main data collection method used in this study consists in interviews with key informants. These latter are the most important people involved in the case study. The case study is about the creation of a new business of sales and after-sales services, thus the key informants are the founders of the new business-managers of one of the founders responsible of the development of the new business, and the new business it self-the managers involved in the organizational and strategic processes of the new business. The founder's managers are the head of CTO process improvement and know-how development and the head of ICT process, and provided data about the method used to develop the business processes and management of the new business. The internal managers are the head of the customer services, the head of the operations and procurement, the head of the ICT department, and the chief executive officer and provided data about the internal and external processes and management of the new business. The results, derived from the interviews, are divided into three sections; the presentation of the internals and the environment of the new business, the new market entrance benefits and the challenges.

Results and Discussions Case Study: The New Business Creation
According to Sinha and Noble (2005), while entering new markets, small firms are able to adapt and pursue emerging opportunities, however, they must have a more complex and studied strategy in comparison with large firms. Besides, small firms can enter later new markets when they are sure to have a competitive advantage. Thus, new market entrance firms' objective is supported by some specific elements. These latter are the enablers of new market entrance. They are the basis for the achievement of competitive advantage and high economic performance. The enablers are related to the internals of the firm in terms of resources, competences, and governance mechanisms, and to the environment of the firm in terms of business relationships, inter-dependencies, and network configuration with suppliers, customers, and partners. Following the logic of the "Porter's five forces" framework for the industry analysis, here we use the term environment to refer the forces that determine the competitive intensity and therefore attractiveness of a market. They are to be intended as the micro environment, excluding the macro environmental exogenous variables of the Industry. They focus on the market characteristics that affect the corporate ability to serve its customers and make a profit (Porter, 1979).
The internals. Firms A and B, from different countries, in the aerospace industry, decide to collaborate and create a new business for the sales and after-sales services activities. In the past, firm A has created the other business of design, manufacturing, and sales. Both firms A and B have acquired through time major competences in these fields from past experiences in the aerospace industry. The purpose of the partnership is to enter new markets-market C and market R; The C market refers to the type of product which is the civil market and the R market refers to the regional markets that are two markets in this case-R1 and R2. In fact, market-orientation builds capability (Hurley & Hult, 1998) and leads to better business performance (Narver & Slater, 1990). The partnership, gives birth to the new business-SAS in Table 1 and the other business is DMS. This latter DMS is dedicated to the design, manufacturing of the C products and to the sales of these in market R1. DMS is also created to separate the firm A's C design and manufacturing activities from the original ones, whereas SAS is dedicated to the selling of the C products in the R2 market and to the after-sales services in the entire R market and it is independent from firms A and B. SAS's corporate identity is in the phase of creation. The mission, objectives, and values are defined by firms A and B in order to enter in a strategic manner the new markets. For instance, one of the strategies of SAS is the green environment, thus, it bases its products on green technologies and the safety of the environment. Concerning the governance, DMS is majorly owned by firm A and SAS is almost equally owned by firms A and B and this latter has more ownership. Firms A and B have different types of organizational structures, management, measurement systems, and knowledge sharing principles. The cultural differences have an impact on firms (Nonaka & Takeuchi, 1995). Thus, the business processes among DMS and SAS are in the phase of development to align and standardize the inter-organizational activities. The building of a process-based organization facilitates communication and accelerates data exchange within the firms (Corallo, Margherita, Storelli, & Scalvenzi, 2009;Corallo, Margherita, Scalvenzi, & Storelli, 2010). SAS top-management is dynamic, appointed every three years, and is willing to avoid structure rigidity and allow flexibility. SAS lower-levels of management involves ICT, customer services and operations departments. The decision-making mechanisms, at these levels, are decentralized and orchestrated by both firms A and B. The process of decision-making is designed through hierarchical decentralization and influenced by the decision-specific characteristics (Papadakis, Lioukas, & Chambers, 2009). At each level of management, specific decisions are made, which lead to a strategic decision-making process.
Besides, the on-going operations of SAS are also due to the accumulated experience of both firms A and B in the aerospace sector and in the managerial and professional practices. The team who created SAS is characterized by a high level of diversity: its components belong to 15 different countries, half of them come from realities outside the main companies, thus bring the perspectives and competences of both customers and producers. The technological experience, thus, the level of competences, is primordial in the success of entering new markets (King & Tucci, 2002;Martin & Mitchell, 1998) and the management of the competences through ICTs accelerates the competences' development (Corallo, Lazoi, Taifi, & Scalvenzi, 2008;Corallo, Lazoi, Margherita, & Scalvenzi, 2010). The customer services are the core process of SAS; its competences are derived from the past experiences of the founders. The customer services consist in four main blocks which are the training center, the spare parts section, the information exchange organization, and the suppliers section. There are the most important activities for the functioning of the new business. The suppliers and spare parts section perform sometimes the same tasks since the spare parts come from the suppliers. Thus, there are cross-functional and parallel activities which need to be optimized and focalized in the future. The training center is responsible of providing the necessary trainings to the human resources involved in the operations, the sales and after-sales services activities and this is taken into consideration the cultural differences since the human resources are multi-cultural. The section responsible of the information exchange among SAS and its partners is mainly governed by the top-management for security of intellectual capital.
The environment. The firms, in the new market, are partners, competitors, or co-opetitors and they have experience in the market, thus technical knowledge about the business environment. The new entering firms create partnerships in order to acquire the necessary resources to achieve competitive advantage in the market. Thus, they create strong ties with the suppliers, customers, and other partners for collaboration in Figure 2. In order to create partnerships, SAS makes a benchmark, at the prices levels, of the different services' firms existing on the market in order to select the most strategic ones since the reliability of the services also depends on them. SAS focuses on both the quality and economic aspects. For the manufacturing, suppliers are in direct connection with MS and this latter supplies SAS with the necessary spare parts for the after-sales services in Table 2. The spare parts' suppliers are among the most strategic suppliers for the on-going operations of DMS and SAS. SAS can enter in direct connection with the suppliers for information and repair solutions. Thus, with respect to SAS, there are direct and indirect suppliers.
The direct suppliers are the ones providing information and repair solutions while the indirect suppliers are to whom DMS plays the intermediary role. The suppliers have a high purchasing power since they are the only ones in direct contact with DMS, thus, they are selected according to their competences in the C market and to the strength of relationship they have with the customers; the direct and indirect connections with the suppliers enhance the innovation performance (Ahuja, 2000).  SAS is responsible of the after-sales services in the entire R market, but the sales are made by DMS and SAS in the R2 and R1 markets, respectively in Figure 3. Thus, SAS customers are divided into two parts in Table 3. The direct customers are in the R2 region and the indirect ones are in the R1 region. The direct customers collaborate with SAS for the purchasing and for the after-sales services whereas the indirect customers collaborate with SAS for the after-sales services only. The firms' main goal is to create value to its customers that is higher than the costs of value creation (Porter, 1985) to achieve economic performance and competitive advantage. For that, firms investigate on the customer needs, thus, they are considered as co-value creators (Prahala & Ramaswamy, 2000) since they have strategic knowledge about the products of DMS and SAS. The customers' feedbacks can be used to develop the products and the after-sales services. For the creation of SAS, other types of partners are involved in the sales and after-sales services for the management of the product life cycle and for the logistics. And initially other partners are involved for the development of SAS internal processes and SAS external processes with DMS and the customers, and a network of specialist warehouses are selected, based on quality criteria and certifications to provide the after-sales services. Through the collaboration with the suppliers and other partners, SAS and DMS are outsourcing the logistics related to after-sales services, some of the product life cycle management and of the after-sales services. Outsourcing is a fundamental aspect of market-oriented firms (Singh, 2009). Firms build capacities through outsourcing (Kotabe & Murray, 2004), however, firms must not use a too complex structure in order not to lose capability and decision-making speed, and adopt the make or buy analysis to share business risks and costs (Williamson, 1975(Williamson, , 1985. The inter-dependencies, as a result of the partnerships in the market, as for the logistics and the product lifecycle management, create an open system environment in which the operations management is based on information and communication technologies. Firms A and B, the founders of DMS and SAS, have different networks of partners and are members of other markets. In the new individual market, DMS and SAS are new partners while in other markets their founders are competitors. Firms that have contacts with competitors in other markets can reduce competition in individual markets since this leads the competitors to stop competitive pressure (Barnett, 1993).

New Market Entrance Benefits
The new businesses have new top-management for the on-going operations of the firms in the new market for the sales and after-sales services. According to Stephan, Murmann, and Boeker (2003), new CEOs are not involved in the firm's formalized external network: the top-management of the new businesses has competitive advantages for market entry independent from how competitors operate in the market. For instance, the partnerships for logistics and product lifecycle management are competitors in the new market. There is the creation of co-opetition.
The new businesses, DMS and SAS, while entering the new market, create a win-win situation by which both generate benefits in Table 4. The new market entrance provides return to investment from new types of products, thus, connections with new customers. This is a part of the diversification strategy of the firms for higher economic performance acquisition (Miller, 2004(Miller, , 2006. Also, both firms acquire new knowledge about the products and the product lifecycle management, knowledge about design and manufacturing, and sales and after-sales services. As a result, there is the integration between the different steps of the product development process that goes from the design to the after-sales services.

New Market Entrance Challenges
The challenges to new market entry are related to the product differentiation, capital investment, transaction costs, and access to distribution channels (Porter, 1979). This relates to competition in the industry structure (Harrigan, 1981). The new businesses have different products, have made major investments for the manufacturing and the after-sales services and do share the risks in their network of partners. According to Sinha and Noble (2005), firms must know when to pass on an emerging market. Thus, a careful analysis of the market is necessary to understand its dynamics as the development's speed of the market, the precise return to investment, and the alignment of the market with the business strategy. For the after-sales services, studying the automotive market provides the significant insights for high economic performance (Huber & Bauer, 2009).
Besides, Stephan et al. (2003) stated that top-management operations are sensitive, in individual markets, to connections with competitors in other markets. They compare the behavior of longer-tenured CEOs and new CEOs behavior while entering a new market. They found out that longer-tenured CEOs respond to competitive prescriptions implicit in the level of their firm's multi market ties, whereas newer CEOs use their competitors as models for the decision-making processes while entering the new market. This behavior leads to high costs for the organization. Thus, the market entrance can have high costs of investments, in the case of decision-making replication, which needs to be overcome through the sharing of costs and risks with the partners.
In dynamic markets, new firms must have dynamic capabilities to overcome competition. Dynamic capabilities are the enablers to fast response to the environment to achieve economic performance (Teece, 2007;Eisenhardt & Martin, 2000). For instance, organizational capabilities are the results of an organizational-learning process (Schreyogg & Kliesch-Eherl, 2007) and the results of the response to specific challenges in the market (Winter, 2003). Continuous changes are conducted at all levels of the firm and not only at the managerial level (Leonard-Barton, 1995). Thus, in the long-term, changes in the organizational structure of the firms can occur in order to adapt to the dynamic market. However, the firms in the market must keep the initial business objectives.

Value Creation for After-sales Services: A Typology of Guidelines
The purpose of this study is to investigate on the after-sales services value creation. We presented the case of the creation of a new business of sales and after-sales services for the purpose of entering a new market. We argue that the after-sales services are not only a source of innovation but that they also benefit from value creation. The new business represents value creation for the after-sales services. At the same time, the entrance into the new market creates value for the after-sales services new business in Figure 4. The creation of a new business and the entrance into a new market requires many organizational and strategic actions for success. Thus, we investigated on the internals and the environment of the new business, and on the assets and competences of this new business. We derive the organizational and strategic elements leading to value creation for the ASS. We provide two types of guidelines for after-sales services value creation related to the organization and strategy; the innovative organizational management and the innovative strategic processes.

New Business Creation for ASS
The organizational management of the new business is related to the governance mechanisms and the network configurations (see Table 5). The governance mechanisms must be adapted to the different cultures of the human resources involved in the new business. These mechanisms, when decentralized, will facilitate decision-making and accelerate the provision of the after-sales services when needed. The network configuration is related to the structure of collaboration among the different partners and the new business. The partners of the new business can belong to different networks, thus there can be a kind of integration of different networks due to the non-exclusive collaboration among all the actors. However, the direct connections with the suppliers of components for the after-sales services are essential for the achievement of fast and efficient operations.
The strategic processes and management of the new business in Table 5 are related to the resources and competences available to the new business and the inter-dependencies and business relationships with the ASS New business creation New market entrance Value creation Sources of innovation partners. The new business of ASS must have the necessary resources for the success of the ASS as the infrastructures, the information technologies, and the material for the ASS, and the competences of the human resources are primordial to the success of the after-sales services. The new business must have the necessary material and the adequate competences to provide efficient after-sales services. For that, the inter-dependencies and the business relationships play a key role for the necessary acquisition of external knowledge or material and outsourcing of some operations for the after-sales services.

ASS and the New Market Entrance
The new business of after-sales services entering the new market can generate various types of values. These latter are either organizational or strategic but also either positive or negative in Table 6. The organizational management values are related to the differentiated management and co-opetition with the competitors. In order to achieve competitive advantage, the new business management must be differentiated from the competitors. For instance, the new business entering the new market can create partnerships with the competitors-co-opetition, for the acquisition of new resources and competences for the development of the new business, however, the new business must not replicate the management styles of the competitors in order not to become a clone of the competitors and to risk to lose the competitive advantage of the new market entrance. The new business entering the new market can also generate strategic values as the different returns to investment. The return can be financial, thus it profits from the operations of the after-sales services, however, the new business must keep, even in cases of high profits, sharing risks and costs with the partners. The return can also be related to the new knowledge acquisition in the new market that can be useful for the development of the operational activities of the after-sales services, however, the new knowledge acquisition must also be focused on building new capacities to sustain competitive advantage in the market. Besides, as another strategic value, the networking with the partners, involved in the value chain of the new business, can create a value network that lead to the integration of the different steps of the product development process that goes from the design to the after-sales services of the products.