Showing papers in "International Journal of Innovation Management in 1998"

Learning and Innovation Management in Project-Based, Service-Enhanced Firms

Abstract: This paper explores the management of innovation in project-based firms. Our research indicates that the traditional boundary between manufacturing and services is becoming obsolete as new forms of manufacturing emerge to supply physical products packaged together with intangible services. Many complex products are now designed, produced and operated as discrete or small batch projects, leading to a growth in firms specialising in project-based activities. These range from the provision of specialist services to co-ordination and systems integration. Not enough is known about how project-based firms manage technology. This paper attempts to develop a framework for understanding the dynamics of project-based firms. It offers a new approach to understanding how they improve performance by focusing on the development of technical capabilities in the context of the provision of enhanced services.

Mapping Innovation Networks

Abstract: This paper outlines a detailed and systematic method for revealing and mapping out the network mobilised in the development of a discrete innovation. This is termed a focal action-set. Important to the utility of this approach has been the development of a set of conventions for the graphical expression of the network and its components: actors, links and flows. It is argued that the network graphic provides a powerful, though under-utilised, tool for the representation of relational data. It may be employed, for example, to reveal variations in network configuration and to highlight key networking or boundary-spanning actors. The network mapping approach is illustrated through three cases of small firm innovation drawn from a wider investigation of award-winning technological innovations. A comparison between the network maps show a variation in the key boundary-spanning interactions, which is related to the organisational background of the entrepreneurial actor.

Developing Continuous Improvement Capability

Abstract: Dealing with complex and uncertain environments requires a steady stream of innovation as well as occasional radical transition. Developing mechanisms to secure such continuous improvement (CI) is seen as a major strategic priority for many organisations. In particular, it raises the challenge of increasing employee involvement in the innovation process and of mobilising widespread problem-solving and learning behaviour. This paper reports on a major five-year research programme in the United Kingdom which explores the implementation of high involvement incremental innovation activities. It presents a reference model developed in this work for helping position and guide organisations in their implementation of CI.

Firm Innovation and Region: The Role of Space in Innovation Processes

Abstract: Based on theoretical reflections about the importance of regions in firm innovation, it is the aim of this paper to assess the probability, as well as the degree, that structural (firm internal) and regional characteristics, such as the type of region, agglomeration economies, regional and inter-regional networking, account for the undertaking of product and process innovations. Guided by four core hypotheses incorporating different theoretical arguments, logistic regression models for urban, intermediate and peripheral regions are set up to test the explanatory contribution of firm-related and regional variables in the realisation of innovations in different regional environments. The data used in this paper originate from an industrial innovation survey carried out in several German regions and two French regions. It will be shown that for firms located in the regions under investigation, "space" clearly matters in innovation. However, this takes place more on a perceptive rather than on a politically defined territorial basis.

Social Networks: Their Impact on the Innovative Behaviour of Small Service Firms

Abstract: This paper presents and discusses some findings of a research study that applied social network theory to small, professional business service firms. These findings demonstrate that social networks impact upon the innovative behaviour of small firms. They reveal that through the innovative use of social networks, small, professional business service firms are able to expand their customer and resource base while minimising the costs involved. The paper draws attention to the contents of the social networks in which a purposive sample of graphic design agencies are embedded. It demonstrates that multiplex relationships, particularly with individuals holding broker positions within these networks, are perceived to be important to innovative behaviour. The paper concludes by suggesting a number of recommendations for owner-managers, policymakers and researchers.

Rational Versus Soft Management in Complex Software: Lessons from Flight Simulation

Abstract: This paper compares actual (A-type) software processes at work in flight simulation, one example of a software-intensive complex product system, with ideal, rational (B-type) processes as contained in company manuals, tools and procedures. The aim is to identify the causes and consequences of divergencies between A- and B-type processes in a complex product, and to draw implications for theory and practice. The paper also develops a simple partial model to show what A-type processes actually "look like" in practice. The evidence indicates that in response to industrial turbulence, uncertainty, technical complexity and difficulties in capturing user requirements, software engineers and project managers fall back heavily on A-type informal systems and "soft" management becomes essential to project success. Success under such circumstances, B-type rational systems are inadequate to the task at hand and soft factors such as goodwill, negotiation skills, rule breaking and informal communications become essential to project success. These findings contrast with most approaches to software engineering which try to impose highly rational processes and tend to ignore soft issues. The paper also indicates potential benefits of the rational approach, sometimes overlooked by contemporary organisational scholars, by arguing that it is the manner in which B-type processes are developed and implemented which leads to divergencies and difficulties, rather than the processes themselves which are an essential part of orderly progress. While the findings may not be relevant to more simple products and tasks, other complex product systems may well face similar divergencies and project management challenges.

The Emerging Internet Retailing Market as a Nested Diffusion Process

Abstract: In this essay, we analyse the diffusion of the Internet and online retailing within the standard framework of diffusion to heterogeneous consumers. We show that many conditions favour the diffusion of Internet retailing in the short run, but not in the long run. We argue that the standard framework needs to account for the "nested" diffusion process. That is, the diffusion of online retailing depends on the diffusion of many other goods, whose underlying diffusion process is also changing. An understanding of these interrelated processes leads to a richer understanding of the prospects for the long-term diffusion of online retailing.

Missing the bus: a socio-cognitive perspective on technological networks

Abstract: This paper proposes a socio-cognitive model of technological co-operation which links substantive interactions in a technological co-operation project with an analysis of group processes. Substantive interactions are concerned with the development of business relationships and the transformation and transaction of resources and goods. Social interactions are concerned with the development of group integration through the creation and maintenance of shared understanding and communication among participating individuals. Insight into these interactions will improve our understanding of the process of technological co-operation and provide input into the management of this process. Therefore, a unique method is proposed. It consists of an analysis at the level of the project and at the level of communicating participants. This approach is applied to a study of a collaborative project in the Dutch construction industry.

Changing Patterns of Technological Leadership: Evidence from the Pharma Ceutical Industry

Abstract: This paper examines the changing composition of technological opportunities and corporate leadership that affected the major British and German pharmaceutical companies from 1930 to 1990. It draws on both the theory of technological change and Schumpeter's theory of profits and growth. Evidence is derived from US patent statistics for 15 indigenous British and German pharmaceutical companies in 47 technological activities. The findings suggest that shifts in both technological leadership and opportunities tend to be gradual rather than radical. The diffusion of technology reduces, but does not fully erode, firm-specific capabilities. However, well-established leaders risk becoming locked into declining technologies. Nevertheless, the composition of leadership in the pharmaceutical industry often persists for several decades. More recent changes, though, suggest that the once dominant group of leaders is on the verge of being replaced by a different group, to the extent that the shifting cycle reflects a changing technological paradigm.

"Swimming Around in Their Own Ponds": The Weakness of Strong Ties in Developing Innovative Practices

Abstract: This paper identifies how strong ties that have been nurtured and institutionalised over a number of years can be more inhibitive in generating innovation processes in organisations than in mobilising them. Close attention is given to sentiment and friendship relations within a small family firm to highlight how these ties are mobilised to obstruct innovative practices. A network approach is adopted to identify how individuals within the company attribute value and meaning to the different interactions they have with colleagues in the company. It is proposed that this view of organisational networks provides valuable insights into the nurture and embedment of workplace values and explains why, in some companies, there are difficulties in adopting innovative practices.

Corporate Technological Specialisation in the European Information and Communications Technology Industry

Abstract: This paper aims to test whether the same technological characteristics specific to the European ICT industry emerged over time in terms of large firms' profiles of specialisation. Against the background of an ongoing European integration process, the analysis takes into account the role played by country-specific factors. The increasing overlap between the ICT technological specialisation profiles of European multi-nationals seems to be the major finding of this paper. European technology policy might be identified as one of the factors explaining this pattern without, however, disregarding the broad impact of European integration, which has increased the extent of market-based and technology-based interaction between firms.

Assessing Organisational Creativity: An Innovative Benchmarking Approach

Abstract: Organisational creativity remains an ill-defined concept. Studies have failed to arrive at a convincing general theory of creativity and, more recently, attention has turned to the possibilities of middle-range theories in which creativity is treated as a context-specific phenomenon. A new approach for exploring the nature of creativity of organisations is reported with preliminary empirical results. The method draws on signalling theory applied to a database of companies generated from citations and executive nominations. Companies such as 3M, IBM, Sony, Disney and Proctor & Gamble were found to yield strong and frequent signals over extended time periods. Strong signals have also been detected from younger firms such as Microsoft, Virgin and Nike. The approach offers the possibility of industry-specific benchmarking for corporate creativity, and for testing the relationship between an organisation's creativity, innovativeness and other change-related features.

The Superweight Project Team and Manager

Abstract: This paper presents a model for managing product development projects in which new strategic platforms that are of paramount importance to a company are developed. The model incorporales a superweight manager who manages a "live or die" strategic programme across different projects. From this study, an additional model emerges besides the four generic types of product development, project organisations and leadership presented by Clark and Wheelwright (1993a). The analysis was conducted by screening data into five categories, namely, strategic control of the project, resource allocation, organisational structure, targets and leadership. The data were collected through interviews and validated by triangulation and internal seminars.

Brands, Innovation and Growth: A Pims Study of Brand Value

Abstract: New research on the behaviour and performance of over 200 fast-moving consumer businesses selling through multiple outlets show that: (i) the "economic case" for branding can be demonstrated — there is evidence that brands can help producers bring new products and services to market, and that they help consumers exercise effective choice of "value for money"; (ii) branded producers are more innovative than their non-branded counterparts; (iii) branded producers typically create significantly more value added from investment in innovation; and (iv) non-price competition is particularly strong in the branded sector, with the key drivers of growth for individual businesses being improving value position, innovation advantage and reputation. Branded product markets show these "rules" for business growth much more clearly than businesses in the economy as a whole. In branded businesses, we can identify the impact of investment in intangibles — communication and technology development — through the strengthening of capabilities, the building of intangible business assets in the form of reputation, innovative edge and value advantage. This comprises a model for innovation which is both statistically valid and endorsed by practising managers.

The Construction of a Network Technology: Electronic Livestock Auction Markets

Abstract: This paper uses Callon's actor network theory (ANT) to analyse the emergence of an inter-organisational network innovation: electronic livestock auction systems in the United Kingdom. It is based on a study of the development of these systems by drawing on interviews with developers, operators and users of the competing systems and focusing on the social networks that evolved in their conception and adoption. The validity of ANT as a framework for the analysis of innovation is critically considered. The paper concludes that complexity and barriers to network building led the networks to be constructed from existing components and social linkages, thereby limiting the potential of the innovation to incorporate radical change in the social structure.

Collaborative Research and Development: New Insights from Cyclic Models of the Innovation Process

Abstract: Traditional linear models of innovation, in which it is assumed that government funding of R&D will axiomatically create innovative industries, have become obsolete. This paper suggests that innovation is in fact a complex and interactive process that involves cycles of learning. However, these "knowledge cycle" models of innovation are largely unvalidated empirically and further research will be required to extend the current theory. Knowledge cycle models appear to be superior to the linear models for a number of reasons. These include major roles for tacit (uncodified) knowledge as well as explicit (codified) knowledge, which are largely ignored in linear innovation models. An emphasis upon iterative collaboration between firms and researchers and the importance of firms participating more directly in the research and development (R&D) process may enhance the utilisation of these forms of knowledge.

Scientists and Their Attitudes to Industry Links

Abstract: This paper examines the attitudes of scientists in four research institutes within the UK Biotechnology and Biological Sciences Research Council towards links with industry. Interviews were conducted with scientists who ranged in their level of industrial contact from none at all to a high level of activity. They were classified into five groups by their attitudes and labelled as Enthusiastic, Interested, Prepared to be Supported, Disinterested and Academic High Ground. These attitudes are related to the level of activity. As expected, there was a relationship between attitude and level of activity. The first two groups had a high level of links, and the second two few. Those taking the Academic High Ground often had very good contacts with industry, despite their clear view of their academic and scientific roles.

An Analysis of the Relationship Between Publishing Activity and Internal Knowledge Development

Abstract: Previous research has explored the value of using patent citations, versus simple patent counts, as indicators of innovative value. However, little work has delved into whether a company's patent citations are to its own patents or to external ones. This study examines the relationship between publishing and patenting using patent citation analysis that is separated into internal and external cites, with self-citations as a measure of internal knowledge development. Its results are that publishing patterns and internal knowledge development are correlated, which may provide a different view of Cohen and Levinthal's absorptive capacity model. In addition, these findings' plausibility was confirmed through an interview with a practising research manager.

The Management Ladder for Recent Engineering Graduates in Canada

Abstract: Engineers play a crucial role in the growing complexity of the innovation process and in an economy's national system of innovation. This paper focuses on the role of engineers as managers. It is based on the understanding that the rising technical complexily of the activities of most enterprises and the central role of technology to economic performance has made it increasingly important to bring engineers into all levels of management activities. We use longitudinal data on three recent cohorts of Canadian engineering graduates to document the extent and nature of the flows into engineering and non-engineering management positions, and to compare various outcomes (earnings levels, job satisfaction, skill use and overall evaluation of the educational programme) associated with these different career paths using both static and dynamic perspectives. We are thus able to assess the general attractiveness of the management ladder for engineering graduates and identify some implications of the outcomes for th...