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on Knowledge Management and Knowledge Economy |
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Issue of 2012‒03‒28
nine papers chosen by Laura Stefanescu European Research Centre of Managerial Studies in Business Administration |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholars have sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt2kq4b8qj&r=knm |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholarshave sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt4f7671kn&r=knm |
| By: | Christophe CARRINCAZEAUX (GREThA, CNRS, UMR 5113); Frédéric GASCHET (GREThA, CNRS, UMR 5113) |
| Abstract: | This article aims at assessing the diversity of regional innovation systems and their economic performances within Europe. We propose to adapt the Social Systems of Innovation and Production (SSIP) framework developed by Amable, Barré and Boyer (1997) at the regional level by identifying specific arrangements of each part of the innovation and production system. A key feature of this approach is the concept of complementary institutions, allowing a limited number of viable and stable configurations to be identified. Three key features of European regions are investigated using this framework: the diversity of regional SSIPs, the interplay of regional and national determinants of such systems, and the impact of SSIPs on regional performance. We identify a typology of regional configurations resulting from the combination of scientific, technological, educational and industrial indicators, using multivariate data analysis. We then test the existence of specific regional growth regimes. The results highlight a persistently high level of diversity of regional configurations, notably among knowledge intensive regions, but also show that national institutional settings remain of fundamental importance in shaping a number of regional configurations. A final conclusion relates to the weak correlation observed between the structural characteristics of regions and their performances over the 2003-2007 period: regional performance remains primarily shaped by national trends. Overall, the paper questions the regional dimension of these “systems”. |
| Keywords: | Regional innovation systems, knowledge, regional growth, institutions |
| JEL: | R11 O43 O18 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-06&r=knm |
| By: | Halldin, Torbjörn (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper studies the performance of KIBS firms that are aimed for global markets from inception. Despite the increasing importance of KIBS, no previous study has investigated born global firms in this sector of the economy. Three definitions are used to categorize firms as born global. Both OLS and a nearest neighbor matching approach are implemented to find evidence of higher growth in employment and sales per employee five years after firm foundation. Finally, the findings are robust to a finer array of born global definitions and time horizons of firm performance. |
| Keywords: | Born global firms; firm performance; knowledge intensive business sector |
| JEL: | F14 L25 L26 M13 M21 |
| Date: | 2012–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0270&r=knm |
| By: | Gustavo Crespi; Pluvia Zuñiga |
| Abstract: | This study examines the impact of innovation strategies on employment growth in four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro-data for manufacturing firms from innovation surveys. Building on the model proposed by Harrison et al. (2008), we relate employment to three innovation strategies: make only (R&D), buy only (external R&D, licensing of patents and know-how, technical assistance, and other external innovation activities) and make and buy (mixed strategy). Firms that conduct in-house innovation activities ("make only") have the greatest impact on employment; the "make and buy" strategy comes in second. Similar results are found for small firms. These results highlight the importance of fostering in-house technological efforts not only for innovation per se, but also to promote growth in firm employment. The impact of "make only" strategies is greater in high-tech industries, whereas "make only" and "make and buy" have a similar impact on employment in low-tech industries. Finally, the study provides evidence of the mechanisms through which innovation strategies affect employment. The findings show that innovation strategies enhance technological innovation, but their impact differs between product and process innovation. Product innovation is mainly motivated by in-house technology investments, followed by mixed strategies, whereas process innovation is basically driven by "buy" strategies. |
| Keywords: | Economics :: Productivity, Economics :: Economic Development & Growth, Private Sector :: SME, Science & Technology :: Research & Development, Science & Technology :: New Technologies, innovation, employment, external R&D, Latin America, innovation surveys, CTI, IFD, RG-K1164 |
| JEL: | O12 O31 O33 O40 J21 O14 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:63978&r=knm |
| By: | Rahobisoa Herimalala (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211); Olivier Gaussens (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211) |
| Abstract: | Innovation in small and medium-sized enterprises (SMEs) is a source of regional development and enables enterprises to improve their competitiveness. However, the intensification of innovation effort depends upon a better understanding of the innovation process, in particular the assessment of its innovation capacity to process its resources and various activities in efficient manner into better results. This paper deals with innovation process modeling and innovation measurement, in order to provide answers to these recurrent questions of the entrepreneurs in these SMEs. Thus, first we propose a model of innovation process as a collective design process that involves the interplay of two categories of activities, such as exploratory activities and value oriented activities, centered on the entrepreneur. Then from this model, we evaluate: (a) the innovation capacity from the process activities and too the outputs of innovation process; (b) the X-(in)efficiency using multiobjective (MOLP) data envelopment analysis (DEA) model of innovation processes. Through MOLP-DEA method, we decompose the X-inefficiency in technical inefficiency and congestion to highlighting the miss-use or the under-utilization of innovation capacity, as resources of process. Finally we measure X-inefficiency by an overall index taking into account of all aspects of inefficiency as the enhanced DEA Russell graph efficiency measure. For the empirical analysis, we use the data from a representative random sample formed by 80 innovative enterprises of regional SMEs of Normandy in France. The results show that most of innovation processes are X-inefficient in SMEs of Normandy. This X-inefficiency is more characterized by the congestion problem than the technical inefficiency. That shows the difficulties of some entrepreneurs to implement the rules and standards of interplay between some activities. |
| Keywords: | Innovation Process, X-Efficiency, Multiobjective Linear Programming, Data Envelopment Analysis, Russell measure |
| JEL: | C61 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201215&r=knm |
| By: | Ömer Özak (Southern Methodist University) |
| Abstract: | This research proposes that the geographical distance from the location of the pre-industrial technological frontier has a non-monotonic and persistent effect on development. While remoteness from this frontier diminished imitation, it fostered the emergence of a culture conducive to innovation and knowledge creation, which has persisted into the modern era even after barriers to movement dissipated. I construct a novel measure of geographical distance in the pre-industrial era, which measures the travel time along the optimal route between any two locations. Using this measure I show that the distance to the technological frontier in the past has a robust and persistent U-shaped relation with measures of economic development both in the pre-industrial and modern eras. Furthermore, a distance of 6 weeks of travel, which is roughly the distance from Ethiopia to the UK, is the least desirable distance from the technological frontier in the pre-industrial era as it generates the largest adverse effects on contemporary development. |
| Keywords: | Economic growth, comparative development, culture and technology, technological innovation, technological diffusion, globalization, geographical distance, technological imitation |
| JEL: | E02 F15 F43 N10 N70 O11 O14 O31 O33 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:1201&r=knm |
| By: | Ljungquist, Urban (CSIR, Blekinge Inst of Technology) |
| Abstract: | The purpose with this paper is to categorise dynamic capability in technology innovation implementation from various management role perspectives. <p>The findings contribute to existing research of strategic change and healthcare management from an empirical case study based on interviews and archival documents. <p>Three organisational management roles (top, local, and ad hoc) are linked to the dynamic capability framework. Identifies an organisational paradox that puts undue pressure on sub-units to be high in both flexibility and consistency, which draws managerial attention to distinguish content from process of the daily activities. The analysis brings previously unexploited “common ground” to the three managerial roles, enhancing the potentials of mutual understanding and cooperation. Visualises the importance of management guidance and coordination of employee drive and enthusiasm. |
| Keywords: | Dynamic capability; Healthcare; Organisational chimneys; Innovation |
| JEL: | M10 |
| Date: | 2012–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-002&r=knm |
| By: | König, Michael; Lorenz, Jan; Zilibotti, Fabrizio |
| Abstract: | We develop a tractable dynamic model of productivity growth and technology spillovers that is consistent with the emergence of real world empirical productivity distributions. Firms can improve productivity by engaging in in-house R&D, or alternatively, by trying to imitate other firms’ technologies subject to limits to their absorptive capacities. The outcome of both strategies is stochastic. The choice between in-house R&D and imitation is endogenous, and based on firms’ profit maximization motive. Firms closer to the technological frontier have less imitation opportunities, and tend to choose more often in-house R&D, consistent with the empirical evidence. The equilibrium choice leads to balanced growth featuring persistent productivity differences even when starting from ex-ante identical firms. The long run productivity distribution can be described as a traveling wave with tails following Zipf’s law as it can be observed in the empirical data. Idiosyncratic shocks to firms’ productivities of R&D reduce inequality, but also lead to lower aggregate productivity and industry performance. |
| Keywords: | absorptive capacity; growth; innovation; productivity difference; quality ladder; spillovers |
| JEL: | E10 O40 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8843&r=knm |