Showing papers in "International Journal of Technology Management in 1999"

What kind of knowledge can a firm absorb

Abstract: Economists emphasise the crucial role of absorptive capacity with regard to external knowledge. In this respect, the firm's knowledge base determines its ability to recognise, assimilate and exploit externalities. Assuming that a firm's absorptive capacity also depends upon the characteristics of external knowledge, this paper analyses the relationship between three basic concepts empirically defined: the fundamental or applied nature of knowledge, the tacit or codified form of knowledge and the absorptive capacity of the firm. Based on an empirical analysis of R&D contracts between France's largest research institute and industrial firms, we show that a low absorptive capacity inhibits cooperation in R&D. The collaboration concerns mostly applied fields and needs informal interactions to support transfers (such as telephone calls, informal interviews and meetings). A high absorptive capacity extends the assimilation to all kinds of knowledge (applied, fundamental) through all types of vehicles (PhD students, scientific staff, technical devices). Altogether, absorption mechanisms seem to diversify as the firm's absorption capacity increases.

An integrative taxonomy of intellectual capital: measuring the stock and flow of intellectual capital components in the firm

Abstract: Building on the resource-based view of the firm, an intellectual capital framework is suggested to identify and measure important resources that may provide sustainable competitive advantage. The difficulty of measuring and managing the elements of intellectual capital is a result of management's inherent tendency towards over-dependence on financial measures of performance. Typically, however, the intellectual capital assets of the firm are intangible and not easily amenable to financial measures as benchmarks. In attempting to operationalise the concept, the paper begins by developing an integrative taxonomy of intellectual capital based on recent literature. Each element of intellectual capital is then further developed by examining the various types of intangible assets that embody it. Using a software firm as an example, potential quantitative and qualitative indicators of the stock of intellectual capital within the firm are given. Direction towards measuring flows as indicators of intellectual capital strength is discussed.

Valuing investments in intellectual capital

Abstract: The measurement and evaluation of the impacts and value of investments in intellectual capital is a critical obstacle to turning those investments into sources of competitive advantage. Yet, most organisations have only a dim notion of what they spend on intellectual capital let alone what they receive from those investments. As a result, many firms either under-invest or make ineffective investments in intellectual capital. Evidence from a cross-industry survey of over 500 organisations in the United States reveals preliminary, yet tantalising evidence of a link between investments in intellectual capital and organisational measures of performance, including market-to-book value. Particular attention is given to relationships between measures of human capital and organisational performance in a subset of 70 publicly traded firms.

Technology management in complex product systems (CoPS) - ten questions answered

Abstract: A new field of innovation research is developing around the theme of complex product systems (CoPS): high cost, engineering and software intensive products, systems, capital goods, networks and constructs, produced in projects or small batches. The paper poses ten questions concerning underlying innovation processes, company strategy, management, and project effectiveness and efficiency. In attempting to provide answers to the ten questions, the paper touches on the nature of best management practice in CoPS, common problems confronted (and how to overcome them), how to improve productivity and how to increase learning from project-to-project. The paper argues that innovation processes in CoPS differ in many respects from those commonly found in mass production, commodity goods made from standard components and, as a result, innovation management differs. Section 2 (Part 1) begins with three analytical questions concerning the intrinsic nature of CoPS, contrasting these with commodity goods. Section 3 (Part 2) presents six practical management questions frequently posed by managers. In conclusion, the final question touches on promising new research directions in the study of innovation in CoPS.

New product development success factors in American and British firms

Abstract: This paper presents a comparative study on New Product Development (NPD) success factors between American and British firms. Our analysis is based on an in-depth survey of 49 British firms (58 successful and 41 unsuccessful projects) and 38 American companies (59 successful and 50 unsuccessful projects). The selected firms represent key industrial sectors of computer, electronics, chemical and transportation. Research variables are selected based on chronological and process relations to perform the NPD, which include design, organisational, marketing, product and technology company factors. Structured statistical methods have been employed to identify critical success factors and differences between the two countries. Findings are discussed against previous NPD comparative studies, published between 1972-97, including the evolved conditions around the NPD process. Various success factors were found common between the USA and UK, such as to have a strategic market focus. However, some factors had a different impact degree in each of the countries. For example, being first to the market was found to be more relevant for success in the USA than in the UK. Although the overall success rate of new products launched was the same for the USA and UK, US firms launched twice as many products as their UK counterparts.

Towards a fourth generation R&D management model-research networks in knowledge management

Abstract: Research and development (R&D) management is increasingly about managing knowledge rather than simply managing its generation. Better management of knowledge is a key success factor for industry competitiveness through continuous innovation. R&D management processes developed in the past, which can be described as the first, second, or third generation models, deal with concepts, techniques and tools for managing research as an investment portfolio of the firm. These models focus on the creation and diffusion of knowledge internal to the firm. Management of R&D is also about managing knowledge external to the firm and it involves the management of complementary skills, technological dependencies, and knowledge transfers across research links. This paper addresses the concept of research management as the generation of intellectual capital, which drives future businesses and new products. It examines, as a case study, research management practices employed by biotechnology and pharmaceutical research groups in industries and universities and outlines a fourth generation approach to managing research.

Innovation index and its implications on organisational performance: a study of Australian manufacturing companies

Abstract: The aim of this paper is to examine the relationships between organisational innovation and organisational performance in Australian Best Practice Companies. The data analysed in this paper were obtained from 237 Australian manufacturers involved in the 1991 and 1992 Best Practice programs conducted by the Australian Manufacturing Council and the Department of Industrial Relations. Organisational innovation consists of administrative, technical and product innovation. Organisational performance has been measured using 27 items based on existing research and includes return on investment, return on assets, market share and performance ratios. Although organisational innovations have an impact on organisational performance, our findings suggest that companies need not be high innovators in order to be good performers.

Potential of value systems according to the VAIC™ method

Abstract: After having found an empirical correlation between balance sheet data and expenditure for the Intellectual Potential of a company on a macro level, we are now examining the employability of the Value Added Intellectual Potential method (VAIP / VAIC™) to the micro level. Therefore, we use a process organisation oriented approach to classify intra-company actions, which are the base for a more detailed analysis. With the help of the VAICল method and the Value Added Chain Matrix, we hope to develop a new consciousness of managing intangible assets.

Technology road mapping: the issues of managing technology change

Abstract: Technology road mapping has emerged in recent years as a key management tool in formulating the link between technological resources and the exploitation of market opportunities. A powerful aid to strategy formulation and communication, the technique has the major advantage of bringing many functions within a business together around a common plan. Although there is no definitive guide to road mapping practice, the application in many different businesses has revealed a number of generic aspects. A major common factor is that technology road maps are concerned with the introduction of technology change into an organisation. This paper proposes a conceptual model of the factors significant for the successful introduction of technology change. The relevance of this framework to technology road mapping is discussed based on the in-depth experience of developing and implementing TRMs for three large companies. Also discussed briefly are results of questionnaires sent to these three companies to obtain a feedback on their post-implementation experiences.

Management of inventory using control theory

Abstract: This paper describes the systems approach to the management of inventory. It puts into context the use of System Dynamics (SD) and other Cybernetic models and outlines their advantages and disadvantages. The main objective of a systems examination is to understand how the organisation of a business affects its performance. Principally the SD method is concerned with causal relationships. Cybernetic models are used to find an analytic expression to describe the whole process, concentrating on the input and outputs to the system. Results of simple inventory management are shown to be examples of proportional control in conventional theory. Better control algorithms, such as proportional, derivative and integral (PID), are used to indicate a more sophisticated form of inventory control that can easily reduce stock levels by 80% and hence reduce cost. This has special significance for JIT and MRP methods.

Accounting for knowledge assets: do we need a new financial statement?

Abstract: Knowledge-based companies have suffered from the failure of the traditional financial reporting system to reflect knowledge assets on the balance sheet. Because of the level of uncertainty associated with knowledge-related expenditures, accountants normally must classify them as expenses. This system was not unreasonable in the past, when assets were primarily tangible and it was normally clear what role these assets would play in providing benefits to the organisation. In recent times, however, knowledge assets and other "soft" assets have been increasingly important to success. We need a mechanism that will reduce the need to make these capitalisation/expense decisions prematurely. I discuss the benefits of creating a new financial statement containing expenditures for which status as an asset or expense has not yet been resolved.

Culture and intellectual capital management: a key factor in successful ICM implementation

Abstract: National culture and organisational culture can have a profound impact on the way in which organisations choose to manage themselves. This paper provides an introductory discussion of the relationship between intellectual capital management (ICM) and reporting and three national cultures - Canada, USA and Sweden. Six company cases are presented: Canadian Imperial Bank of Canada, Royal Bank, Dow Chemical, IBM, Celemi and Skandia. The case studies reveal that both national culture and organisational culture affect the successful implementation of ICM. Furthermore, culture appears to play a major role in whether ICM information remains proprietary (USA) or is disseminated to a larger audience (Sweden).

IT sourcing: a research framework

Abstract: It is only during the past few years that the sourcing of IT has become an important issue for most organisations. Downsizing, the move to flatten organisations and the search for added flexibility, are cited as major reasons for this interest. Additionally, for the UK public sector, government pressure and legislative requirements have been instrumental in making many organisations consider outsourcing. Transaction cost analysis provides an economic approach to selecting the most appropriate source. However, in itself it is not enough, since it fails to take account of the special features of knowledge-intensive goods and services. This form of analysis needs to be augmented with considerations of these special features and of the organisational and environmental factors surrounding the sourcing decision. This paper provides this augmentation within a comprehensive framework for IT sourcing decision making.

Possession is nine tenths of the law: managing a firm's knowledge base in a regime of weak appropriability

Abstract: Much of the work currently going on in the field of knowledge management takes the capture, storage and dissemination within the firm of useful employee knowledge as its key focus. Knowledge management thus appears primarily as a technical challenge devising a suitable information system. Part of this challenge consists of ensuring that only those entitled to use the knowledge effectively gain access to it. With diffusion becoming ever less controllable, this challenge is becoming rather more complex. Traditionally, it consisted of firms seeking to prevent those outside the firm gaining access to their knowledge. We argue in this paper that a bigger challenge may now be to get employees to contribute their knowledge in the first place and that the capture of knowledge involves more than simply making it easier for employees to articulate their idiosyncratic experiences and know how. It also involves creating an incentive structure making it worth their while to do so. In a "post Marxist" world, knowledge workers are once more becoming the owners of the means of production.

Product modularity, information structures and the diffusion of innovation

Abstract: This paper explores how the product design information structure affects innovation types and levels of innovation diffusion. By taking a narrower definition of information structures than previous usages, the author seeks to clarify how specific dimensions of this type of knowledge link with a range of innovation variables in a modular product setting. It is proposed that the type of product innovation that occurs is determined by the rate of change in the information structure, and that the level of control exerted over the information structure determines the potential for the diffusion of the innovation.

The wealth of knowledge: converting intellectual property to intellectual capital in co-opetitive research and technology management settings

Abstract: The emerging global trends in intellectual property (IP) commercialisation and intellectual property rights (IPR) enforcement and harmonisation, such as technology globalisation, "niching", and licensing strategies, the diffusion of IPR standards and the divergence of IPR enforcement practices, are components of an emerging view of the importance of intellectual capital in corporate and national competitiveness. This paper presents the role of IPR enforcement and harmonisation and IP commercialisation strategies in a global, intra and inter firm and industry context. IP management is examined from the perspectives of the knowledge management and technology management fields, paradigms that facilitate rather than impede research collaborations in co-opetitive, technology-driven environments. Intellectual property rights (IPR) are shown to be the emerging currency of the global, knowledge-based economy and the intellectual property (IP) audit is a key strategic competitive "weapon" for firms.

Controlling new products: a contingency approach

Abstract: This article presents the findings from a large sample investigation into the way that SBU managers in large companies control different types of new products. The study also reports on the impact that different control choices have on two performance outcomes; new product output and new product success. The findings indicate that, consistent with the tenets of contingency theory, different new product strategies require different control approaches on the part of SBU managers and that an SBU manager's choice of controls matters in terms of performance. Most importantly, though, the findings underscore the balance and trade-offs that SBU managers may have to make in the course of pursuing different performance objectives.

Information technology mediated Business Process Management - lessons from the supply chain

Abstract: For most of the twentieth century, organisations in both the private and public sectors have adopted a functional structure, segmenting their work practices and decision processes into discrete compartments in the form of departments, divisions or groups. Not surprisingly, the information-processing infrastructure, which has been developed to support these functions, is typically composed of applications subsystems, which may be reasonably efficient in themselves but are frequently difficult to link together. Today, this legacy of discrete applications systems poses a challenge to any organisation trying to adopt a more integrated approach to its decision-making processes. Management thinking has highlighted the deficiencies of the traditional highly specialist structures, and offered alternative paradigms and models, but the practical guidance which has been offered concerning the replacement of legacy systems has been sometimes contradictory and appears to have been at best ineffective and at worst damaging to the companies adopting it. In order to gain further insight into this issue, it is appropriate to study the experiences of practitioners of "Supply Chain Management" (SCM). Having abandoned a traditionalist and functionally orientated approach to "Distribution and Warehouse Management", many companies have now taken a systems based view of their physical distribution networks. Seeing "Logistics" as a networked mega-function has led to significant performance improvements, without the need for major information systems replacement. Furthermore, a few practitioners have now gone even further and have adopted a consciously process oriented approach to logistics, following a "Supply Chain Management" approach. There is emerging evidence that this can lead to further significant improvements in performance, once again without recourse to wholesale revision of information systems. The case of Xerox's "Customer Supply Assurance Managers" (CSAMs) provides grounds for optimism. There is at least initial evidence that radically different business processes can be introduced into a well-established company without the delays and dangers associated with major disruption to its legacy systems. Indeed, it is possible that the adoption of a Business Process Management (BPM) approach, combined with the use of existing information processing techniques to interrogate and surround the legacy systems may prove to be the most acceptable solution to the legacy systems problem. The underlying but emerging lesson would appear to be that for many organisations the key to greater effectiveness may be producing better informed people, empowered to make wider ranging decisions, rather than producing technically more sophisticated information systems.

Collaboration and organisational learning: a study of a New Zealand collaborative research program

Abstract: Collaboration with a research partner is one strategy that small and medium sized enterprises (SMEs) can pursue to counter their size-imposed research and development (R&D) resource and capacity constraints and to enhance their learning. The Technology for Business Growth (TBG) program supports collaborative R&D projects between New Zealand industry and research institutions. This research attempted to gauge the effects of participation in a collaborative project on broader aspects of organisational learning, on the industry managers' subsequent attitudes towards R&D, as well as managers' perceptions of success and failure factors for collaboration. The majority of managers stated that their attitude to R&D had not changed (it was already positive prior to the project). However, their organisations' attitude towards the management of R&D projects had often changed, with many companies adopting the practices of project evaluation and planning enforced by the TBG application process, thus providing considerable evidence that organisational learning had taken place. Objective measures of subsequent R&D activity, such as increased spending on, and number of, R&D projects and increased employment of technical staff provide further evidence that the companies' learning experiences with collaborative projects may have encouraged them to invest more readily in R&D.

The Adoption and Diffusion of Environmentally Friendly Technologies among Firms

Abstract: This paper discusses the adoption and diffusion of environmentally friendly technologies among firms from a micro-economics perspective. First, some theoretical backgrounds are given on issues like the process of the development and adoption of environmentally friendly innovations, the adoption of new technology in a market equilibrium, and general market failures which influence the working of the market in a situation of market equilibrium. Next, we discuss possible policy instruments to stimulate the adoption process. Finally, we provide some empirical evidence on investments in environmentally friendly technology, based on a recent survey held in The Netherlands.

Inter-organisational systems planning: learning from current practices

Abstract: Organisations are investing heavily in information systems (IOS) to support inter-organisational activity. These systems, however, tend to be implemented on an ad hoc basis, hindered by an absence of adequate planning. This paper examines the IOS planning experiences of a set of the largest organisations in Ireland and the UK. The paper demonstrates that IOS planning is still in its infancy, though there is widespread agreement as to the desired results from IOS planning and how it should be conducted. In general, there is an over-reliance on traditional information systems planning approaches and the majority of organisations experience difficulties with IOS planning.

Linking business strategy to technology strategies: a prerequisite to the R&D priorities determination

Abstract: Choice of priorities in technology development is an important prerequisite for any R&D program (including R&D collaboration). The strategic management of technology is described as an approach that helps to link business strategy to technology strategy, and allows then the ranking of R&D subject priorities in coherence with the firm's overall strategy. Some strategy analysis models are assessed to show how this problem is incorporated and dealt with in the management literature. Then, the need for an integrated approach is pointed out, and an analytical method is developed to help firms in selecting their priorities in technology development and the way to investment in them. Finally, the usefulness of the proposed method is illustrated through its application to a French company.

Requirements capture as process of technology- market integration

Abstract: The front-end of new product development is a major factor in determining the success of the entire development. It can influence not only the attributes of the product, but how well it is targeted to customer needs, the accuracy of the design and manufacturing specification, the time to market and the ultimate cost and quality of the final product. The process of determining the attributes and determinants of a product at the front end is requirements capture. This process is rarely managed well. This paper defines requirements capture as a process of technology acquisition at the front end of the product development process.

The process of innovation in small manufacturing firms

Abstract: Time compression new product development processes (NPDP) are viewed as the current best practice models for NPDP. We describe the concepts that are inherent in these models and consider their efficacy with respect to small and medium sized enterprises (SMEs). We present preliminary data from a grounded theoretical study of the NPDP in six SMEs. This indicates that these organisations use NPDPs differently to those in the literature.

An integrated approach to technology acquisition management

Abstract: Research on the electronics industry in Scotland by the authors has indicated that while many companies have focused on improving their product development and process innovation procedures, they have, in general, not formalised the management of the technology acquisition process to the same extent. To fulfil this need, the authors propose a new, holistic approach to technology acquisition that integrates a number of strands of technology management. The approach leads to a generic Technology Acquisition Model that can be employed at both a strategic level and an operational level. The model provides a structured framework to identify the most appropriate technological solution to a market need, and the most suitable source for acquiring the chosen technology that best matches the strategic objectives of an organisation. A software package which implements the model has been developed to provide decision-makers with a user-friendly tool for implementing the technology acquisition process. Case studies are included to verify the conceptual framework and its applications.

National Systems of Innovations, Industrial Clusters and Constituency-Building in Scotland's Electronics Industry

Abstract: This paper is concerned with the development of sustainable industrial capabilities, understood as a country's ability to shape significantly the content, direction and dynamism of the long-term evolution of target industrial clusters. It purports, on the one hand, to advance the existing theoretical apparatus to deal with the understanding and practice of processes of industrial clusters and innovative capabilities; and, on the other, to implement this theoretical apparatus to the practical experience of electronics cluster fostering in Scotland. The theoretical work focuses on the integration of fundamental insights of industrial clusters and national systems of innovation (NSI) approaches with insights coming from the socio-technical constituencies (STC) approach. The empirical work concentrates on the analysis of the depth and sustainability of Scotland's electronics clustering experience, with particular emphasis on the governance dominating its evolution.

Globalisation of R&D

Abstract: The globalisation of the critical R&D function is more necessary than ever. But managers continue to be daunted by the complexity this strategic change requires. In our work with leading companies around the world - and in a global survey of senior technology and innovation managers - Arthur D. Little has begun to evaluate and identify impediments and emerging best practices in the quest for globalisation.

Innovation, entrepreneurship and the firm: a post-Schumpeterian approach

Abstract: This paper examines the Schumpeterian tradition of analysis concerning innovation, entrepreneurship, and the firm, and finds in general that it is deficient (particularly from a managerial perspective regarding these matters). To remedy these deficiencies, a "post-Schumpeterian" framework is proposed, based on four key elements: Knowledge Creation; Knowledge Protection; Collaborative Business Arrangements for Knowledge Creation; and Diffused Entrepreneurship/Entrepreneurial Management.

Computer use-innovativeness: cognition and context

Abstract: A test is reported of Midgley and Dowling's contingency model of consumer innovativeness which ascribes adoption of new products to innate innovativeness mediated by product field interest and situational facilitation/inhibition. Kirton's measure of adaptive-innovative cognitive style operationalises innate innovativeness, while Zaichkowsky's measure of personal involvement assesses product field interest. Subjects (127 graduate business school students) were in programs that differed in required use of computer applications. While adaption-innovation and personal involvement explain overall computer use when situational effects are omitted, inclusion of task orientation renders the contribution of cognitive style non-significant. Cognitive style and personal involvement are related to separate elements of computer use. The results are thus non-supportive of the Midgley-Dowling theory. Suggestions for further research are made and a behaviouristic interpretation of the results is discussed as an alternative to the instrumentalist approach of the Midgley-Dowling model. Managerial implications of the findings are briefly considered.

Managing the boundaries of collaborative research: a contribution from cultural theory

Abstract: Research collaboration across university and industry boundaries has increased rapidly during the past decade. Consequently, research inputs and outputs are far more collective than in the past. A critical issue for both universities and industrial enterprises is to manage the cultural interaction between the two sectors in a way that maintains the inherent strengths of the research contribution made by both sides of collaborative arrangements. This requires the development of structures and processes conducive to maintaining organisational diversity yet capable of building long-term structural compatibility. Cultural theory offers some analytical perspectives that can assist in formulating organisational structures for managing university and industry collaborative research. It does this by offering a framework for understanding the relationship between organisational structures and control and the cultural values embedded in the perspectives and views of academic researchers.