The limits of open innovation:openness and (quasi-)markets in the organization of innovation

Recent studies have stressed the importance of ‘open innovation’ as a means of enhancing innovation performance. The essence of the open innovation model is to take advantage of external as well as internal knowledge sources in developing and commercialising innovation, so avoiding an excessively narrow internal focus in a key area of corporate activity. Although the external aspect of open innovation is often stressed, another key aspect involves maximising the flow of ideas and knowledge from different sources within the firm, for example through knowledge sharing via the use of cross-functional teams. A fully open innovation approach would therefore combine both aspects i.e. cross-functional teams with boundary-spanning knowledge linkages. This suggests that there should be complementarities between the use cross-functional teams with boundary-spanning knowledge linkages i.e. the returns to implementing open innovation in one innovation activity is should be greater if open innovation is already in place in another innovation activity. However, our findings – based on a large sample of UK and German manufacturing plants – do not support this view. Our results suggest that in practice the benefits envisaged in the open innovation model are not generally achievable by the majority of plants, and that instead the adoption of open innovation across the whole innovation process is likely to reduce innovation outputs. Our results provide some guidance on the type of activities where the adoption of a market-based governance structure such as open innovation may be most valuable. This is likely to be in innovation activities where search is deterministic, activities are separable, and where the required level of knowledge sharing is correspondingly moderate – in other words those activities which are more routinized. For this type of activity market-based governance mechanisms (i.e. open innovation) may well be more efficient than hierarchical governance structures. For other innovation activities where outcomes are more uncertain and unpredictable and the risks of knowledge exchange hazards are greater, quasi-market based governance structures such as open innovation are likely to be subject to rapidly diminishing returns in terms of innovation outputs.

Service innovation, embeddedness and business performance:UK regional evidence

This paper asks to question. First, what types of linkages make firms in the service sector innovate? And second, what is the link between innovation and the firms’ productivity and export performance? Using survey data from Northern Ireland we find that links intra-regional links (i.e. within Northern Ireland) to customers, suppliers and universities have little effect on innovation, but external links (i.e. outside Northern Ireland) help to boost innovation. Relationships between innovation, exporting and productivity prove complex but suggest that innovation itself is not sufficient to generate productivity improvements. Only when innovation is combined with increased export activity are productivity gains produced. This suggests that regional innovation policy should be oriented towards helping firms to innovate only where it helps firms to enter export markets or to expand their existing export market presence.

Family relocation: worse or just different?

Organisational relocation directly affects the family. It is thus often assumed that relocation is more difficult for individuals with families; however, few studies actually examine this premise. This paper investigates whether family status plays a role in relocation by comparing single individuals to married individuals. The paper uses qualitative and quantitative indicators to uncover subtle nuances between the groups and, on the basis of these, develops proposition for future research to test. Quantitative indicators highlight several important differences: Individuals with families report a greater number of moving tasks and difficulties; family relocation is viewed as more complex because of the impact of non-relocation related factors; and employees with families experience more negative and positive consequences of relocation. Qualitative techniques help to uncover subtle differences between groups and suggest that although relocation for families is different from individual relocation, it is not necessarily worse. RP0721.

Relocation:a more complete picture

The idea that relocation can cause detriment in the lives of individuals is now relatively accepted in the management community, however much less attention has been devoted to studying the benefits of relocation. We present a more balanced picture by examining both positive and negative consequences of geographical transience in a sample of frequent movers. In total, 29 employees without families, 33 employees with families, 33 spouses, and 15 children participated in interviews for this research (N = 110). The research outlines 160 relocation consequences, including 53 positive outcomes not previously considered. Our findings confirm that relocation can bring about short- and long-term benefits for individuals including task performance, skill development, learning, growth, job satisfaction, continued development, attractive job assignments, career advancement and increased responsibility. In conclusion, findings suggest that, at least in terms of relocation, a more complete picture is actually also a more positive picture. So, whilst organisations should continue to aim to reduce or eliminate the negative consequences of relocation, they should also seek to maintain or enhance the positive outcomes of transience.

Capturing strategy as an everyday practice:quantitative methodologies for analysing practice data

Few works address methodological issues of how to conduct strategy-as-practice research and even fewer focus on how to analyse the subsequent data in ways that illuminate strategy as an everyday, social practice. We address this gap by proposing a quantitative method for analysing observational data, which can complement more traditional qualitative methodologies. We propose that rigorous but context-sensitive coding of transcripts can render everyday practice analysable statistically. Such statistical analysis provides a means for analytically representing patterns and shifts within the mundane, repetitive elements through which practice is accomplished. We call this approach the Event Database (EDB) and it consists of five basic coding categories that help us capture the stream of practice. Indexing codes help to index or categorise the data, in order to give context and offer some basic information about the event under discussion. Indexing codes are descriptive codes, which allow us to catalogue and classify events according to their assigned characteristics. Content codes are to do with the qualitative nature of the event; this is the essence of the event. It is a description that helps to inform judgements about the phenomenon. Nature codes help us distinguish between discursive and tangible events. We include this code to acknowledge that some events differ qualitatively from other events. Type events are codes abstracted from the data in order to help us classify events based on their description or nature. This involves significantly more judgement than the index codes but consequently is also more meaningful. Dynamics codes help us capture some of the movement or fluidity of events. This category has been included to let us capture the flow of activity over time.

The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks

This study employs stochastic frontier analysis to analyze Malaysian commercial banks during 1996-2002, and particularly focuses on determining the impact of Islamic banking on performance. We derive both net and gross efficiency estimates, thereby demonstrating that differences in operating characteristics explain much of the difference in costs between Malaysian banks. We also decompose productivity change into efficiency, technical, and scale change using a generalised Malmquist productivity index. On average, Malaysian banks experience moderate scale economies and annual productivity change of 2.68 percent, with the latter driven primarily by technical change, which has declined over time. Our gross efficiency estimates suggest that Islamic banking is associated with higher input requirements. However, our productivity estimates indicate that full-fledged Islamic banks have overcome some of these cost disadvantages with rapid technical change, although this is not the case for conventional banks operating Islamic windows. Merged banks are found to have higher input usage and lower productivity change, suggesting that bank mergers have not contributed positively to bank performance. Finally, our results suggest that while the East Asian financial crisis had a short-term cost-reducing effect in 1998, the crisis triggered a more lasting negative impact by increasing the volume of non-performing loans.

Regulatory price performance, excess cost indexes and profitability:how effective is price cap regulation in the water industry?

In this study we apply an index number approach to allow for cross sectional comparisons of relative profitability, productivity and price performance of the regulated Water and Sewerage companies (WaSCs) in England and Wales during the years 1991-2008. In order to better analyse the impact of regulation on WaSC performance, we decompose actual economic profits into spatial multilateral Fisher productivity (TFP) index, the inverse of which is demonstrated to be a regulatory excess cost index that measures the deviation of a firm’s actual costs from benchmark costs, and a newly developed regulatory total price performance (TPP) index, which measures the excess of regulated revenues relative to benchmark costs. Increases (decreases) in regulatory price performance are indicative of the loosening (tightening) of price cap regulation. Moreover, we also show that the relationship between actual economic profitability, regulatory excess costs and regulatory price performance indices can be used to categorize regulatory price caps as “weak”, “powerful” or “catch-up promoting”. The results indicated that throughout the entire 1991-2008 period, price caps were never “powerful”, in the sense that they required less productive firms to immediately and fully catch-up to the most productive firm to regain economic profitability. More specifically, during the years 1991-2000 price caps were “weak” as prices were high enough for the firms to achieve economic profits despite their low productivity levels. However, after 2001 prices became “catch up promoting” as they required less productive companies to eliminate at least some excess costs in order to eliminate economic losses. Finally, we emphasize that as our results also clearly demonstrated a much closer alignment between allowed revenues and benchmark costs after 2001, Ofwat’s approach during this period was not only appropriate, but should also be continued in the 2009 price review.

Community knowledge management (CKM): a framework for community action

Knowledge management (KM) is a developing field that focuses on harnessing knowledge for use by a person or community. However, most KM research focuses on improving decision making capacity in business communities, neglecting applications in wider society and non-decision making activities. This paper explores the potential of KM for rural communities, specifically for those that want to preserve their social history and collective memories (what we call heritage) to enrich the lives of others. In KM terms, this is a task of accumulating and recording knowledge to enable its retention for future use. We report a case study of Cardrona, a valley of approximately 120 people in New Zealand’s South Island. Realising that time would erode knowledge of their community a small, motivated group of residents initiated a KM programme to create a legacy for a wider community including younger generations, tourists and scholars. This paper applies KM principles to rural communities that want to harness their collective knowledge for wider societal gain, and develops a framework to accommodate them. As a result, we call for a wider conceptualization of KM to include motives for managing knowledge beyond decision making to accommodate community KM (cKM).

Does the balanced scorecard make a difference to the strategy development process?

A great number of strategy tools are being taught in strategic management modules. These tools are available to managers for use in facilitating strategic decision-making and enhancing the strategy development process in their organisations. A number of studies have been published examining which are the most popular tools; however there is little empirical evidence on how their utilisation influences the strategy process. This paper is based on a large scale international survey on the strategy development process, and seeks to examine the impact of a particular strategy tool, the Balanced Scorecard, upon the strategy process. The Balanced Scorecard is one of the most popular strategy tools whose use has evolved since its introduction in the 1990’s. Recently, it has been suggested that as a strategy tool, Balanced Scorecard can influence all elements of the strategy process. The results of this study indicate that although there are significant differences in some elements of the strategy process between the organisations that have implemented the Balanced Scorecard and those that have not, the impact is not comprehensive.

Scenario planning:teaching how to anticipate perceived environmental uncertainty within strategy development

Scenario Planning is a strategy tool with growing popularity in both academia and practical situations. Current practices in the teaching of scenario planning are largely based on existing literature which utilises scenario planning to develop strategies for the future, primarily considering the assessment of perceived macro-external environmental uncertainties. However there is a body of literature hitherto ignored by scenario planning researchers, which suggests that Perceived Environmental Uncertainty (PEU) influences micro-external or industrial environmental as well as the internal environment of the organisation. This paper provides a review of the most dominant theories on scenario planning process, demonstrates the need to consider PEU theory within scenario planning and presents how this can be done. The scope of this paper is to enhance the scenario planning process as a tool taught for Strategy Development. A case vignette is developed based on published scenarios to demonstrate the potential utilisation of the proposed process.

Offshoring:a multi-country study of FDI in high-technology sectors

This paper examines what is still a relatively new phenomenon in the literature, the outsourcing / offshoring of high technology manufacturing and services. This has become a concern for both policy makers and academics for two reasons. Firstly, policy makers have become concerned that the offshoring of high technology sectors in the West will follow the more labour intensive sectors, and move to lower cost locations. Secondly, international business theory has tended to view low costs, and high levels of indigenous technological development as being the two main drivers of location advantage in the attraction of FDI. We show that this may not be the case for offshored high technology manufacturing or services.

A circular Malmquist-type index for measuring productivity

This paper develops two new indices for measuring productivity in multi-input multi-output situations. One index enables the measure of productivity change of a unit over time while the second index makes it possible to compare two units on productivity at the same or different points in time. Productivity in a single input single output context is defined as the ratio of output to input. In multi-input multi-output contexts this ratio is not defined. Instead, one of the methods traditionally used is the Malmquist Index of productivity change over time. This is computed by reference to the distances of the input-output bundles of a production unit at two different points in time from the efficient boundaries corresponding to those two points in time. The indices developed in this paper depart form the use of two different reference boundaries and instead they use a single reference boundary which in a sense is the most efficient boundary observed over two or more successive time periods. We discuss the assumptions which make possible the definition of such a single reference boundary and proceed to develop the two Malmquist-type indices for measuring productivity. One key advantage of using a single reference boundary is that the resulting index values are circular. That is it is possible to use the index values of successive time periods to derive an index value of productivity change over a time period of any length covered by successive index values or vice versa. Further, the use of a single reference boundary makes it possible to construct an index for comparing the productivities of two units either at the same or at two different points in time. This was not possible with the traditional Malmquist Index. We decompose both new indices into components which isolate production unit from industry or comparator unit effects. The components themselves like the indices developed are also circular. The components of the indices drill down to reveal more clearly the performance of each unit over time relative either to itself or to other units. The indices developed and their components are aimed at managers of production units to enable them to diagnose the performance of their units with a view to guiding them to improved performance.

Drug testing: a way to weed out users?

The aim of this paper is to provide managers and Human Resource executives with the basis for making drug testing policy in their organisations by presenting a critical review of existing literature on Workplace Drug Testing (WDT) and related areas which have been structured into the key areas.The key finding is whilst WDT is becoming more and more widely used, the rationale for this in terms of organizational effectiveness and safety is far from clear. Also there are significant ethical issues associated with WDT which are not always fully considered by organisations. Similarly, a cost/benefit analysis for particular organisations may well show little reason to embark on a testing policy. As a result of our review, we recommend that practitioners take a critical view of proposals introducing WDT since in many cases there is little upside to such a policy and a largely under-researched downside. There are also wider implications for society as a whole since the issue of drug taking as a whole is clearly a matter of great importance to practically every country in the world. The workplace is not at all immune from the impact of drug taking and perhaps a knee-jerk response by managers is to attempt to exclude anyone with any sort of drug habit through the use of WDT. This type of review with a specific HR focus has not been carried out before despite several calls for a more rational approach to the area.

The advanced learner variety:the case of French

This volume originates from a workshop entitled 'Revisiting advanced varieties in L2 learning' organized by the editors at Aston University (Birmingham, UK) in June 2006. It consists of a peer-reviewed selection of the best contributions. Many different approaches have been used in the study of advanced learners and their characteristics. Specific areas of language have repeatedly been found to remain problematic even at advanced levels, and much empirical research has been carried out. In particular, areas of grammar such as the tense or agreement systems often pose difficulties, as well as lexical idiosyncrasies such as formulaic sequences, and the discourse/pragmatic constraints operating in French. This volume brings together recent research exploring the advanced learner capabilities in each of those domains, as well as possible explanations for the difficulties they raise for the L2 learner of French. Additionally, one of the areas which has received considerable attention in the French L2 literature on advanced learners, tense and aspect, is also explored from the point of view of French learners of English, to explore any parallels. In presenting this research, the book clarifies the concept of the advanced learner: how does s/he differ from native speakers and why?

Production management in Sweden:eight short illustrative cases

The performance of the manufacturing sector has been a major factor contributing to Sweden's economic growth. This paper comprises eight short cases describing a range of Swedish organisations together with the principal features of their production function. The cases are intended to general discussion and provide a greater understanding of the technical and organisational factors which influence the efficiency of production systems.