Showing papers in "IEEE Transactions on Engineering Management in 2012"

Assessing Organizational Capabilities: Reviewing and Guiding the Development of Maturity Grids

Abstract: Managing and improving organizational capabilities is a significant and complex issue for many companies. To support management and enable improvement, performance assessments are commonly used. One way of assessing organizational capabilities is by means of maturity grids. While maturity grids may share a common structure, their content differs and very often they are developed anew. This paper presents both a reference point and guidance for developing maturity grids. This is achieved by reviewing 24 existing maturity grids and by suggesting a roadmap for their development. The review places particular emphasis on embedded assumptions about organizational change in the formulation of the maturity ratings. The suggested roadmap encompasses four phases: planning, development, evaluation, and maintenance. Each phase discusses a number of decision points for development, such as the selection of process areas, maturity levels, and the delivery mechanism. An example demonstrating the roadmap's utility in industrial practice is provided. The roadmap can also be used to evaluate existing approaches. In concluding the paper, implications for management practice and research are presented.

Influence of Green and Lean Upstream Supply Chain Management Practices on Business Sustainability

Abstract: Green and lean paradigms have been adopted by companies in order to manage their relationships with suppliers in a supply chain management context, but nearly always separately and with little understanding of their influence on company performance. This paper proposes a theoretical framework for the analysis of the influence of green and lean upstream supply chain management practices on the sustainable development of businesses. To attend this objective, a set of performance measures covering economic (operational cost, environmental cost, and inventory cost), environmental (business wastage, green image, and CO2 emission), and social (corruption risk, supplier screening and local supplier) perspectives is proposed. An explanatory case study was conducted at a Portuguese automaker to test qualitatively the validity of the proposed theoretical framework. From the case study, a model is suggested, which encompasses the relationships between green and lean upstream supply chain practices and sustainable business development.

Relationships Between Leadership and Success in Different Types of Project Complexities

Abstract: We investigate the moderating effect of project complexity on the relationship between leadership competences of project managers and their success in projects Building on existing studies in leadership and project management, we assess the impact of emotional (EQ), intellectual (IQ), and managerial (MQ) leadership competences on project success in different types of project complexities A cross-sectional survey using the leadership dimensions questionnaire and project results questions yielded 119 responses, which were assessed for their type and level of complexity, measured as complexity of fact, faith, and interaction Analysis was done through factor analysis and moderated hierarchical regression analysis Results show that EQ and MQ are correlated with project success, but are differently moderated by complexity The relationship between EQ and project success is moderated by complexity of faith The relationship between MQ and project success is moderated by complexity of fact and faith Complexity of interaction has a direct effect on project success Analysis of variance and nonparametric tests showed the means and medians of EQ, IQ, MQ; complexities of faith, fact, and interaction do not significantly vary across different project types This suggests using these three complexity types as a common language to research and learning across different project types

Single-Machine Sustainable Production Planning to Minimize Total Energy Consumption and Total Completion Time Using a Multiple Objective Genetic Algorithm

Abstract: Energy is an expensive resource that is becoming more scarce with increasing population and demand. In this paper, a mathematical model to minimize energy consumption and reduce total completion time of a single machine is proposed, and a multiobjective genetic algorithm is utilized to obtain an approximate set of nondominated alternatives. Furthermore, dominance rules and a heuristic are proposed to increase the speed of the proposed genetic algorithm. Finally, the analytical hierarchical process is utilized to select a solution with some additional criteria.

Moving Beyond Optimism Bias and Strategic Misrepresentation: An Explanation for Social Infrastructure Project Cost Overruns

Abstract: Infrastructure projects regularly experience cost and schedule overruns. Research led by Flyvbjerg has suggested that misrepresentation and optimism bias are primary causes for overruns. While Flyvbjerg's research has made a significant contribution to ameliorating understanding as to why economic infrastructure projects experience overruns, it does not adequately explain why this is the case for such social infrastructure. In addressing this shortcoming, case studies are used to determine the intermediary events and actions that contributed to project cost overruns. The pathogens, events, and actions that contributed to overruns are identified and analyzed. The analysis of the cases' findings led to the propagation of a nomological framework for social infrastructure project overruns. Acknowledgment of the systemic pathogenic influences has enabled the establishment of an orthodoxy, which provides an impetus for addressing the issues needed to improve the performance of social infrastructure projects.

Lean Software Management: BBC Worldwide Case Study

Abstract: This case study examines how the lean ideas behind the Toyota production system can be applied to software project management. It is a detailed investigation of the performance of a nine-person software development team employed by BBC Worldwide based in London. The data collected in 2009 involved direct observations of the development team, the kanban boards, the daily stand-up meetings, semistructured interviews with a wide variety of staff, and statistical analysis. The evidence shows that over the 12-month period, lead time to deliver software improved by 37%, consistency of delivery rose by 47%, and defects reported by customers fell 24%. The significance of this work is showing that the use of lean methods including visual management, team-based problem solving, smaller batch sizes, and statistical process control can improve software development. It also summarizes key differences between agile and lean approaches to software development. The conclusion is that the performance of the software development team was improved by adopting a lean approach. The faster delivery with a focus on creating the highest value to the customer also reduced both technical and market risks. The drawbacks are that it may not fit well with existing corporate standards.

The Impact of Supply Chain Integration on Mass Customization Capability: An Extended Resource-Based View

Abstract: This study investigates two key issues: 1) how internal integration, customer integration, supplier integration, and the interplay among them jointly influence the development of mass customization capability (MCC), and 2) how environmental conditions (i.e., demand uncertainty and competitive intensity) moderate the impacts of supply chain integration on this development. Based on the extended resource-based view (ERBV) of the firm and contingency theory, we build a conditional indirect model and test it using a dataset of 289 manufacturers from nine countries. Our results are consistent with the ERBV, showing that internal integration not only has a significant direct effect on MCC, but also plays a central and strategic role in building customer and supplier integration. However, although customer integration is found to improve MCC directly, supplier integration appears to have no significant impact. Finally, internal integration has a positive indirect effect on MCC through customer integration, and this indirect effect is amplified when demand is uncertain and competition is intense.

Antecedents and Consequences of Firms’ Process Innovation Capability: A Literature Review and a Conceptual Framework

Abstract: Process innovation can allow both efficiency and effectiveness gains and is a key source of long-term competitive advantage in manufacturing firms. However, the literature on managing process innovation is broad and fragmented, and it has not yet been systematically reviewed in the scholarly literature. Drawing on a capability-based perspective, the aim of this paper is to provide a systematic review of the process innovation literature. We synthesize our findings into a conceptual framework displaying the antecedents and consequences of firms' process innovation capability. First, a parsimonious review of the process innovation literature is conducted. Second, a conceptual framework of firms' process innovation capability is developed to synthesize the literature and to advance knowledge about managing process innovation. A principal distinction between a firm's potential and realized process innovation capability is drawn, and it is argued that high-quality realization mechanisms are critical for achieving desired process innovation outcomes. Finally, implications for theory, management practice, and recommendations for future research are provided.

Networking Capability and New Product Development

Abstract: Current research on network theory remains largely focused on structures and outcomes without exploring the capability that firms need to build efficient and effective networks to their advantage. In this paper, we take a networking capability view in studying inter-firm relationships. We assume that firms create their networks strategically. We show a more compelling picture of how networking behavior influences new product development performance by developing a research design and statistical approach that addresses the endogeneity problem in network research. We argue theoretically and demonstrate empirically that networking capability is a reliable predictor of new product development performance. We find that interaction cost reduction, opportunity discovery, resource acquisition, and market knowledge generation and technology knowledge generation, respectively, mediate the positive relationship between networking capability and new product development performance. Third, we find that environmental dynamism acts as a moderating factor in the effect of networking capability on new product development performance, and the effect of networking capability on interaction cost reduction, opportunity discovery, resource acquisition, and market knowledge generation and technology knowledge generation are more salient when environmental dynamism is high than when it is low. The implication of the findings is that firms can develop strong networking capability to enhance product and technology innovation.

Understanding End-Users’ Acceptance of Enterprise Resource Planning (ERP) System in Project-Based Sectors

Abstract: This study aims at providing an alternative view of users' enterprise resource planning (ERP) acceptance. Despite the large body of literature, there are still empirical inquiries to investigate the ERP system implementation from end-users' perspectives as well as from different organizational contexts. To address these issues, we set a project-based sector as our population of interest and seek to understand how project management practices are interrelated with end-users' cognitive perception, and in the end, with their behavioral intention of using the ERP system. In doing so, this study incorporates the best practices of ERP system implementation projects, internal support, external (consultant) support, and functionality selection, into the extended technology acceptance model (TAM) that includes belief constructs and socioenvironmental construct (subjective norm). The empirical analyses show that managerial practices and socioenvironmental factor are significantly related to the original TAM variables in the context of ERP system. One of the interesting findings is the negative effect of consultant support on perceived usefulness, but positive effect on the perceived ease of use, suggesting a useful reference for future research. This study extends the existing literature by investigating potential managerial and socioenvironmental factors affecting user adoption behavior in a different organizational context. This study would also benefit project-based sectors by offering valuable managerial insights that enable them to appreciate and improve end-users' ERP system acceptance and utilization.

Time Separation, Coordination, and Performance in Technical Teams

Abstract: Technical teams are often distributed across geographic locations and across time zones While spatial and time separation are often correlated, most prior studies have only focused on one or the other As a consequence, their respective effects may be confounded when teams have both spatial and time separation We argue that bridging spatial and time separation pose very different coordination challenges, thus their respective impacts need to be examined together to fully understand how geographic configuration influences team performance We report on a field study of 123 technical teams conducted at a large semiconductor manufacturing company where we investigated how spatial and time separation influenced team performance Our results show that time separation, in the form of maximum time zone difference spanned by members, has a stronger negative impact on team performance than spatial separation We also show that this impact is indirect, ie, large time zone spans create coordination problems, which in turn impact team performance Put differently, when coordination problems are reduced, the negative association between maximum time zone span and performance disappears We describe our findings and discuss implications for global team managers and collaboration tool designers

Predicting Change Propagation and Impact on Design Schedule Due to External Changes

Abstract: Design projects often face changes from external sources causing redesign to many interdependent downstream activities. Depicting change propagation on the downstream activities and subsequent impact on design completion is a great challenge. This paper proposes a change propagation model to predict the change propagation on the downstream activities due to different degrees of change that might be initiated at different stages during a design project. The initiated change may cause change of different degrees to its immediate successors. The probability values of the change form a transition matrix for each dependency. The proposed model utilizes these transition matrices to depict the change propagation at the downstream. The change propagation model is then integrated with the scheduling model to schedule the propagated changes and to assess the overall impact on design completion and redesign (or loss in productivity). The effectiveness of the integrated model has been described with an illustrative case example. Such prediction and quantification of change impact would help project managers take the necessary actions for a proposed change.

Why Do Complementors Participate? An Analysis of Partnership Networks in the Enterprise Software Industry

Abstract: In the enterprise software industry, large providers (hubs) are fostering partner networks with smaller companies (spokes) that complement their platforms. This study takes the perspective of these spokes and seeks to understand their motivation to partner. It is the first to simultaneously examine two theoretical perspectives that help explain partnership formation. The input-oriented perspective holds that organizations enter inter-firm arrangements in order to access external resources and capabilities. The output-oriented perspective posits that the complementarity of the partners' products influences the benefits obtained from a partnership. In order to examine the relevancy and possible interaction of these two perspectives, a multiple-case study is conducted. Qualitative data from 17 spoke organizations is gathered and thoroughly analyzed. The study confirms that the hub's reputation and its capability to provide integrated systems are generally important reasons for partnering. However, the extent to which the hub's innovativeness and its commercial capital motivate spokes to partner varies substantially. The key finding of this study is that these variations can be explained by differences in the level of product complementarity. This leads to the conclusion that there is a widely neglected interaction effect between the input- and output-oriented perspectives in explaining the formation of hub-and-spoke partnerships.

The Moderating Effects of Privacy Restrictiveness and Experience on Trusting Beliefs and Habit: An Empirical Test of Intention to Continue Using a Social Networking Website

Abstract: While some online social networking (OSN) websites, such as Facebook, have reported sustained growth, others, such as Bebo, have not. This study investigates the factors that influence users' intentions to continue using these websites. We adapt the theory of reasoned action and develop a model depicting how trusting beliefs, habit, attitude, and subjective norm lead to continuance intention. We propose that trusting beliefs and habit will have differential effects depending on the levels of privacy restrictiveness and site experience. An analysis of data collected from Facebook users shows that the effects of trusting beliefs on continuance intention diminish as OSN users become more experienced, yet, do not diminish when users set privacy controls high. The latter finding contradicts theory positing control and trusting beliefs are substitutes. The finding that the trusting belief-continuance intention relationship is not significant when experience is high demonstrates that trusting beliefs and experience interact. We also show that habit is a stronger predictor when users restrict their personal information. However, contrary to predictions, habit shapes intention among users with both high and low experience. These findings explain how habit and trusting beliefs predict continuance intention in the new OSN environment and have both practical and research implications.

Advertising Effectiveness in Social Networking Sites: Social Ties, Expertise, and Product Type

Abstract: Social networking sites (SNSs) have gained immense popularity. This phenomenon has created new marketing opportunities for companies to leverage on online networks. In particular, SNSs allow the conceptualization of a new type of product endorser: the “friend.” However, the effectiveness of friends as endorsers on SNS remains unknown compared with other types of product endorsers. This paper investigates the impact of three critical factors on advertising effectiveness in SNS: tie strength, endorser expertise, and product type. Using a 2 × 2 × 2 experimental design, we found interaction effects among these factors. For hedonic products, strong-tie endorsers were more effective than weak-tie endorsers in influencing purchase intention. However, for utilitarian products, high-expertise endorsers were more effective than low-expertise endorsers. Based on these results, we discuss key theoretical and practical implications for research on SNS advertising.

Managing Risks in Just-In-Sequence Supply Networks: Exploratory Evidence From Automakers

Abstract: Today's automakers are under an enormous price and cost pressure arising from both increasing competition and complexity of operations. One way to deal with this challenge is to outsource value creation to the supply network (SN), which then assumes the responsibility for producing variant-specific modules and delivering them just-in-sequence (JIS). This results in tightly coupled buyer-supplier relationships that operate with short reaction times and are characterized by high time dependency and minimal buffers. It increases the risk exposure of buyers to disturbances in their SNs and failures propagate quickly, causing production disruptions. Based on data collected at 14 car-manufacturing plants located in Germany, this research provides an overview and exploratory evidence of current JIS market practice and proposes ways of actively managing the risks inherent in JIS SNs.

Standardizing Social Responsibility? New Perspectives on Guidance Documents and Management System Standards for Sustainable Development

Abstract: In recent years, there has been increasing pressure on private players to take over responsibilities for social/environmental issues. However, a critical mindset toward private enterprises and their influence on societies often prevails. To help organization deal with this ambiguity, the International Organization for Standardization (ISO) published ISO 26000 that provides guidance on the integration of social responsibility (SR) into management processes. The ISO emphasizes that ISO 26000 is not a management system (MS) standard. However, its practical value would be rather limited if it merely provided a common understanding of SR instead of also facilitating management routines and practices. A closer look at its content indeed reveals some distinct elements of a MS standard. This brings up the following questions. What kind of standard is ISO 26000? Which opportunities and constraints does ISO 26000 hold? Whether or not the current understanding of MS standards is sufficient to characterize ISO 26000? This paper comes to the conclusion that the current categorization of standards is not sufficient to fully comprehend ISO 26000. A new type of MS standard is developed. The potential benefits of the new standard, the managerial relevance, and specific limitations of ISO 26000 are discussed.

Process Innovativeness and Firm Performance in Technology Service Firms: The Effect of External and Internal Contingencies

Abstract: Innovativeness is the capability for innovation or the ability to innovate, and has been acknowledged as a key organizational capability. Process innovativeness is considered as an organization's capability to marshal, integrate, and leverage organizational resources to improve or create new processes. Researchers have noted that though growth in the service sector has been strong in recent years, research on innovation in service processes is sparse. Further, as information and communication technologies become an important component of many service firms' offerings, there is a growing need for research on service firms offering technology intensive services, i.e., technology service firms (TSFs). TSFs may be defined as firms that sell or provide technology in the form of management consultations, evaluations, tests, analyses, maintenance, purchasing advice, studies, designs, plans, and other artifacts. Our research, therefore, examines the relationship between process innovativeness and firm performance in TSFs. Using contingency theory arguments, our model proposes that environmental hostility (external contingency) and aggressive posture (internal contingency) moderate the relationship between process innovativeness and performance in TSFs. Based on data from 108 firms, our results show that firm performance in TSFs is positively related to process innovativeness. Further, we find that while environmental hostility has a moderating effect on the relationship of process innovativeness with TSF performance, no such relationship is found with aggressive posture.

Supply Disruption and Reactive Strategies in an Assemble-to-Order Supply Chain With Time-Sensitive Demand

Abstract: This paper addresses the comparison and selection decision of reactive strategies for supply disruption management. We consider an assemble-to-order supply chain with one manufacturer who employs a single-sourcing strategy for each kind of component. The manufacturer assembles products for customers using components purchased from the suppliers in a just-in-time environment. Demand for the products is time-sensitive. We propose and compare three pure reactive strategies and two dynamic reactive policies for managing supply disruption. In the pure reactive strategies, only one kind of strategy is adopted during the disruption. But strategies adopted in the dynamic pure reactive policies change with the passage of time during the disruption. In the dynamic mixed strategy with customer choices, the manufacturer can use both backup source to offer on-time delivery and compensation policy to compensate customers for waiting in each period during the disruption. We find that the backup sourcing strategy is preferred at the beginning of the supply disruption, while the compensation strategy is preferred as time elapses. The dynamic pure strategy is superior to any other pure reactive strategies. The dynamic mixed strategy with customer choices is superior to the pure backup sourcing strategy. The backup cost and customer sensitivity are two determining factors in the manufacturer's choice of the reactive strategies.

Demand Learning and Dynamic Pricing under Competition in a State-Space Framework

Abstract: In this paper, we propose a revenue optimization framework integrating demand learning and dynamic pricing for firms in monopoly or oligopoly markets. We introduce a state-space model for this revenue management problem, which incorporates game-theoretic demand dynamics and nonparametric techniques for estimating the evolution of underlying state variables. Under this framework, stringent model assumptions are removed. We develop a new demand learning algorithm using Markov chain Monte Carlo methods to estimate model parameters, unobserved state variables, and functional coefficients in the nonparametric part. Based on these estimates, future price sensitivities can be predicted, and the optimal pricing policy for the next planning period is obtained. To test the performance of demand learning strategies, we solve a monopoly firm's revenue maximizing problem in simulation studies. We then extend this paradigm to dynamic competition, where the problem is formulated as a differential variational inequality. Numerical examples show that our demand learning algorithm is efficient and robust.

Time Allocation Decisions of Academic Scientists and Their Impact on Technology Commercialization

Abstract: This study analyzes how the time allocation decisions of tenured and tenure-track academic scientists in U.S. research universities affect the odds of being engaged in the creation, transfer, and commercialization of novel technologies with one or more industrial partners. Academic scientists are making time allocation decisions across three types of activities typically associated with the academic profession: teaching, research, and service. In a representative sample of 1543 scientists, the empirical results show that those scientists spending more time on research funded by federal grants and industrial contracts have higher propensity of being engaged in technology commercialization efforts than those who spent less time on this type of research. In contrast, scientists spending more time on research that is not funded by grants or industry contracts have significantly lower chances of being involved in technology commercialization. Surprisingly, spending more time on either teaching undergraduate or graduate students does not affect scientists' chances for technology commercialization. Scientists doing more paid consulting also have a higher likelihood of being involved in technology commercialization. Finally, we found complementary and substituting effects between certain types of research and time spent on teaching undergraduate students and their impact on being involved in technology commercialization. We discuss the implications for policy and academic entrepreneurship.

Antecedents and Consequences of Political Behavior in New Product Development Teams

Abstract: According to the political perspective on strategic decision making, political decisions are the results of a process in which the preferences of the most powerful dominate over those of the less powerful. The conceptualization of political behavior accounts for issues, such as negotiation, bargaining, and power, which are central to this perspective. Since strategic decisions during the new product development (NPD) process are made by team members, they are a mass of action, interaction, and counteraction. This means that the strategic decision-making process during NPD can be subject to political behavior. This study extends research on political behavior into the realm of NPD teams by examining the impact of six contextual variables (project importance, project uncertainty, project motive, trust, functional diversity, and demographic diversity) associated with two types of context (project and team environment) on the practice of political behavior in NPD teams. The study also examines the impact of political behavior on speed to market considering the moderating impact of environmental turbulence. Using primary and cross-sectional data obtained from 103 Turkish NPD teams, our results showed that project importance, project motive, and functional diversity significantly influence political behavior. Interestingly, our results indicated that political behavior positively influences speed to market. We present and discuss our empirical results, provide implications for both theory and practice, and discuss research limitations.

The Grass is Always Greener on The Other Side: A Test of Present and Alternative Job Utility on IT Professionals’ Turnover

Abstract: The costs associated with the turnover of information technology (IT) professionals continue to draw the attention of IT managers and researchers. Although a weak labor market has limited the quantity of turnover, organizations' most skilled IT personnel are still coveted and valuable resources. These IT professionals are also those most equipped to leave their firm and find new work. In order to reduce costs, retain key employees, and manage turnover, managers need to understand the factors that drive quitting behavior. The research model suggests that the utility of present and alternative IT work are key cognitive influences on an IT professional's decision to search for new employment, intention to quit, and, ultimately, turnover. We test the research model using longitudinal data that include actual turnover behavior. The research model explains 44% of the variance in intention to quit and 13% of the variance in actual turnover. After establishing the influence of utility on the quitting process, we conduct additional analyses to identify the elements of present and alternative job utility that are the most salient for IT professionals' quitting processes. From the additional analyses, we derive specific guidance to practice on the management of IT professionals.

Creating Collaboration Opportunity: Designing the Physical Workplace to Promote High-Tech Team Communication

Abstract: Despite the increasing use of electronically mediated communication when team members are not collocated, research continues to underline the importance of face-to-face (F2F) communication for the successful accomplishment of complex team tasks. Although a crucial aspect of F2F communication is the physical proximity of participants, studies that have explored the relationship between the design of the physical workplace and F2F communication have produced conflicting findings. The results of this field study conducted at two R&D sites of a large Midwestern U.S. pharmaceutical company suggest that the typical space planning solution of simply moving people from closed offices to open cubicles does not, in and of itself, increase F2F communication. We found that the visibility of the work environment and the amount of collaboration opportunity, defined as formal and informal space available for meetings and collaboration, are related to F2F communication. The implications of our findings for theory, future research, and management practice are discussed.

Instilling the Entrepreneurial Spirit in Your R&D Team: What Large Firms Can Learn from Successful Start-ups

Abstract: Prior research studies have found that even though new ventures face the possibility of bankruptcy without large product portfolios on which to fall back, they are more innovative than large firms. Large, established firms have become experts at implementing best practices as a way to increase the effectiveness and efficiency of costly R&D. Yet in practice, relying upon these routine paradigms can create inertia for these firms. The purpose of our study was to conduct research on the innovation strategies used within start-ups and to show how large firms can start ``thinking small.'' With an eye towards what established firms can learn from start-ups, we investigated over nine years the innovative practices of small ventures. We found that successful, new firms use certain best practices in unique ways. They innovated with `` hyper-agility'' and implemented 1) small omnifunctional teams with no functional boundaries, 2) goal-driven rapid development of technology rather than process guided methods, and 3) instinctive exploration of market potential rather than quantitative analysis. We highlight several of these successful new ventures and provide a framework for R&D managers of large firms and discuss how the entrepreneurial approaches of their smaller counterparts can coexist within their existing innovation processes.

Intellectual Human Capital and the Emergence of Biotechnology: Trends and Patterns, 1974–2006

Abstract: We present an analysis of the trends and patterns documenting the role of intellectual human capital in the emergence of knowledge within both new biotech ventures and incumbent pharmaceutical firms. We leverage individual-level data detailing the publication and citation records for more than 284 000 scientists employed by biotech and pharma firms between 1974 and 2006. During this 33-year time period, these scientists published nearly 1.2 million academic papers that were cited 16.8 million times. Through a detailed analysis of these data, we attempt to gain insights into the similarities and differences between the activity, productivity, and movement of star and nonstar scientists across both biotech and pharma firms over time.

Optimal Feed-in Tariff Schedules

Abstract: We analyze the design of optimal feed-in tariff schedules under production-based learning. We examine least cost policies in a simple two-period model that focuses on bringing down the levelized cost of renewable technologies to a predefined target under two well-known dynamics: learning-by-doing (LBD) and economies of scale (EOS). We show that, when the levelized cost reduction target is stringent, subsidies are required in both periods, regardless of the dynamics. However, when the target is moderate, the optimal policy is to subsidize only in one of the two periods: under the LBD dynamics, it is optimal to subsidize as early as possible, whereas under the EOS dynamics, it is optimal to subsidize as late as possible. Under the LBD dynamics the prevailing factor is the impact of early investment on cumulative experience, whereas under the EOS dynamics the prevailing factor is capital depreciation. The key takeaway is that, based on the underlying dynamics, the policy maker needs to adopt fundamentally different kinds of policies to promote renewable technologies.

Diversification and Innovation Revisited: An Absorptive Capacity View of Technological Knowledge Creation

Abstract: The relationship between innovation and product diversification in firms has been studied and debated for decades. Early articles proposed a positive relationship, while subsequent research supported a negative influence on innovation from product diversification based on observable reductions in research and development expenditures. Such findings also suggest a negative influence on absorptive capacity from increasing product diversification. This paper uses an absorptive capacity perspective to revisit the relationship. Together with related literature on knowledge creation and transfer processes, a positive association between related product diversification by firms and the quantity of created technological knowledge is suggested. Evidence to support such a relationship is provided using patent data from technology-based firms in a sample of 1997 firm years between 1990 and 2006. Some evidence of a negative association between knowledge creation and very high levels of unrelated diversification is indicated, qualifying and supporting the “M-form” hypothesis. The findings more closely align understandings of the relationship between product diversification and innovation with the relationship between product diversification and firm performance.

Personalization or Codification? A Marketing Perspective to Optimize Knowledge Reuse Efficiency

Abstract: Organizations continue to struggle with low returns on knowledge management (KM) investments. This paper's goal is to prescribe a KM strategy that maximizes organizational knowledge reuse efficiency (KRE). Knowledge reuse is defined as the totality of all knowledge transfers, from all producers to all consumers in the same organization, over all locations. Organizational inefficiencies result from individual knowledge producers and consumers having different priorities and agendas during the knowledge exchange. Furthermore, these producers' and consumers' priorities overlap with, but are not congruent with, the organization's priorities to maximize knowledge reuse efficiency. By combining a marketing perspective with a marketing consumer stages process model of knowledge reuse, we develop a contingency model which prescribes the strategy which maximizes KRE. The organizational characteristics on which the model is contingent include organization size, the number of knowledge producers, consumers, these producer and consumer costs and utilities during the knowledge transfer, and the organization's KM infrastructure costs. The prescribed approach specifies the degree to which a personalization and codification strategy should be combined to optimize KRE, contrary to some suggestions in the literature. A simulation supports that the model's prescribed strategy is not overly sensitive to its contingency variables.

Green Supply Management Strategies in Spanish Firms

Abstract: Although the literature on environmental sustainability is rapidly increasing, many studies suggest that this problem needs to be dealt with by considering a broader perspective, i.e., supply chains. In this paper, we put forward the idea that different practices for greening suppliers can be combined to shape different green supply management (GSM) strategies. More specifically, the following research questions are posed. 1) How do firms combine managerial practices to form GSM strategies? 2) What are the variables that affect this decision? 3) What are the results of the different GSM strategies? Drawing on a survey among Spanish firms, we performed a cluster analysis that identified three main GSM strategies. In the second step, we contrasted these clusters using environmental drivers, context, and performance variables. The results show that there are several approaches to “greening” the supply chain, with different results and company profiles.