nep-knm New Economics Papers
on Knowledge Management and Knowledge Economy
Issue of 2017‒02‒26
six papers chosen by
Laura Ştefănescu
Centrul European de Studii Manageriale în Administrarea Afacerilor

  1. Knowledge Capital and Aggregate Income Differences: Development Accounting for U.S. States By Ruhose, Jens; Hanushek, Eric A.; Woessmann, Ludger
  2. The Implications of Digital Business Transformation for Corporate Leadership, the IT Function, and Business-IT Alignment By Haffke, Ingmar
  3. Impact of Organizational Culture on the Indian I.T Workforce's Job Satisfaction and Stress: Qualitative Report from SMEs operating in Trivandruam By Sreekumaran Nair, Sree Lekshmi; Sommerville, Steve
  4. The extent of knowledge of Quick Response Manufacturing principles: an exploratory transnational study By M. Godinho Filho; A. Gilberto Marchesini; J. Riezebos; Nico Vandaele; G. Miller Devós Ganga
  5. Back to Basics: Why do Firms Invest in Research? By Ashish Arora; Sharon Belenzon; Lia Sheer
  6. Does Knowledge Protection Benefit Shareholders? Evidence from Stock Market Reaction and Firm Investment in Knowledge Assets By Buhui Qiu; Teng Wang

  1. By: Ruhose, Jens; Hanushek, Eric A.; Woessmann, Ludger
    Abstract: Although many U.S. state policies presume that human capital is important for state economic development, there is little research linking better education to state incomes. We develop detailed measures of skills of workers in each state based on school attainment from census micro data and on cognitive skills from state- and country-of-origin achievement tests. These new measures of knowledge capital permit development accounting analyses calibrated with standard production parameters. We find that differences in knowledge capital account for 20-35 percent of the current variation in per-capita GDP among states, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses, emphasizing the importance of appropriately measuring worker skills. These estimates support emphasis on school improvement as a strategy for state economic development.
    JEL: O47 I25 J24
    Date: 2016
  2. By: Haffke, Ingmar
    Abstract: Mastering digital business transformation is a strategic imperative for senior executives but often constitutes a challenging task for firms across industries. With the growing importance of information technology (IT) over the recent decades, the role of the Chief Information Officer (CIO), the head of the IT function, has become increasingly important. However, both research and practice acknowledge that establishing alignment between business and IT is difficult due to significant social factors that often arise. Research has shown that Chief Executive Officers (CEOs) and Chief Information Officers need to develop mutual understanding of their environments, views, and goals in order to promote a successful business-IT partnership. In the context of digital business transformation, which is driven by digital innovation occurring at the interface of business and IT, alignment is imperative. The creation of new executive roles, such as that of the Chief Digital Officer (CDO), indicate that social alignment between CEOs and CIOs remains an issue. This dissertation investigates the implications of digital business transformation for business-IT alignment, the evolution of digital leadership roles (especially the CIO and the CDO role), and the IT function in general. The results presented in this dissertation are grounded in the results from two extensive studies, a quantitative study based on responses from 102 matched pairs of CEOs and CIOs and a qualitative study based on interviews with matched pairs of business and IT executives from 19 companies. The study results were published in three academic articles, which are part of this dissertation. Additional articles that build upon the already published findings are currently under review and due to be published in 2017. The quantitative study examines perceptual congruence between CEOs and CIOs in a social alignment context, utilizing a combination of two hitherto largely separately applied models from social and personal relationship research. One of the major findings of this quantitative study is the recognition of bidirectional effects of active and passive understanding on the CEO-CIO relationship, whereas the concept of mutual understanding has thus far mostly been treated unitarily without differentiation between the two directions. The interview-based qualitative study examines the role of the CDO and the CIO and investigates the bimodal IT phenomenon that has gained increased visibility in practice with digital business transformation putting enormous pressure on the IT function and its leadership. This second study finds four different CDO role types to exist and highlights the implications for the development of the CIO role, which finds itself at an inflection point, returning somewhat to its traditional technical orientation, hence losing its strategic focus to CDOs and others. Furthermore, the second study explains the role of bimodal IT as a transitional stage in a larger transformation of the IT function in order to foster IT agility and IT exploration. Implemented as one of three archetypes that the study describes, bimodal IT introduces organizational structures, methods of working, and a culture that are critical for effective business support of digitization initiatives. Ultimately, however, the study finds that companies, which have successfully operated under a bimodal IT design, revert their IT function structure and processes to a unimodal design in the long term. Overall, this dissertation sheds light on crucial topics for companies’ executive leadership, the IT function, and business-IT alignment today. The studies conducted provide valuable insights for both practitioners and academics by drawing a conceptual distinction between the two directions and CEO-CIO understanding, explaining the CDO role and its influence on the development of the CIO role, and calling attention to the transformative role of bimodal IT. Practitioners are advised to promote CIOs’ understanding of current business topics, carefully delimit the CDO role (should such be needed) from the CIO role, and harness the learnings from bimodal IT on their digital transformation journey. The two studies add to the academic body of knowledge by answering calls for a more fine-grained conceptualization of CEO-CIO mutual understanding, providing initial insights into the emerging Chief Digital Officer role and its creation, and preparing a research framework for bimodal IT and explaining its relevance for IT transformation. The articles contained in this dissertation encourage IS scholars to utilize the findings described and further advance our knowledge in these domains. Moreover, this research can assist business and IT executives with improving alignment and avoiding the pitfalls that digital business transformation brings about for corporate leadership.
    Date: 2017
  3. By: Sreekumaran Nair, Sree Lekshmi; Sommerville, Steve
    Abstract: The qualitative paper investigates the impact of organisational culture on the job satisfaction of employees working in the small and medium size I.T firms operating in the south of India. The paper undertakes the application of Denison’s model for exploring the organisational culture and Spector JSS survey to examine employees' job satisfaction through 5 points Likert Scale. This exploratory study targeted 400 employees in the 30 different organisations however 280 participated in this study. For data analysis mainly MS Excel Integrated package was used for the purpose of labelling, coding, and percentages. The results indicates that organisational culture has a significant positive impact on the employees' job satisfaction. It drives them in determining organisational goals as well strengthen strategic direction to the organisation. Additionally, learning culture enhance employees' commitment and career growth chances. However, it is evident that females have higher job satisfaction in contrast to males. Despite, there is high level of satisfaction evident but it is also found that reward and promotion increase job satisfaction among lower level staff while organisational culture has direct relationship with stress.
    Keywords: Organisational culture; Job Satisfaction; Career Growth; Monetary Rewards; Occupational Stress;
    JEL: D0 M0 O3 O33
    Date: 2017–01–29
  4. By: M. Godinho Filho; A. Gilberto Marchesini; J. Riezebos; Nico Vandaele; G. Miller Devós Ganga
    Abstract: The main goal of this research is to identify whether companies that have implemented the Quick Response Manufacturing (QRM) approach have full knowledge of the QRM principles or have merely applied the elements (principles and tools) that have a close relationship with Lean Manufacturing. Based on a review of the literature regarding the QRM principles, an exploratory survey was conducted for over 20 manufacturing companies from Brazil, Europe and the USA that operate in an Engineer or Make to Order environment system and explicitly have conducted QRM journeys. The results of the present study show that (i) the surveyed companies have difficulty knowing and applying some of the exclusive elements of this approach, even if they started implementing QRM several years ago; (ii) the surveyed companies’ knowledge degree over QRM exclusive elements is apparently higher among US-based companies due to better trained employees and better dissemination and awareness of the QRM exclusive elements; and (iii) a mentality based on productivity, low costs and due date delivery was identified as the main barrier for companies to achieve a higher knowledge degree regarding QRM.
    Keywords: Quick Response Manufacturing, Lean Manufacturing, Lead Time, Exploratory survey, QRM principles knowledge
    Date: 2017
  5. By: Ashish Arora; Sharon Belenzon; Lia Sheer
    Abstract: If scientific knowledge is a public good, why do firms invest in research? This paper revisits this question with new data on patent citations to corporate scientific publications. Using data on 4,736 firms for the period 1980-2006, we explore the relationship between the use of corporate research in invention and the output of corporate scientific publications. Our principal contribution is to document that corporate investment in research is closely related to its use in invention. Specifically, firms that build on their scientific publications in their inventive activity invest more in research than those that are less successful in using their research internally. Consistent with this, research that is internally used is valued more and is more productive.
    JEL: O31 O32
    Date: 2017–02
  6. By: Buhui Qiu; Teng Wang
    Abstract: This paper studies whether knowledge protection affects shareholder value and firms' investment in knowledge assets using the staggered adoptions and rejections of the inevitable disclosure doctrine (IDD) by U.S. state courts as exogenous changes in the level of knowledge protection. We find positive (negative) abnormal stock returns around the IDD adoption (rejection) day for firms headquartered in the state and uncover a positive IDD treatment effect on firms' investment in knowledge assets. Moreover, the effects on stock returns and knowledge assets investment are stronger in more knowledge-oriented industries and firms. Finally, enhancing knowledge protection does not discourage local entrepreneurial activity.
    Keywords: Inevitable Disclosure Doctrine ; Investment in Knowledge Assets ; Knowledge Protection ; Shareholder Value
    Date: 2017–02

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