Founders' human capital and the performance of UK new technology based firms

This paper investigates the role of entrepreneurs' general and specific human capital on the performance of UK new technology based firms using a resource based approach to the entrepreneurship theory. The effect of entrepreneurial human capital on the performance of NTBFs is investigated using data derived from a survey of 412 firms operating in both high-tech manufacturing and the services sectors. According to the resource based theory it is found that specific human capital is more important for the performance of NTBFs in relation to general. More specifically individual entrepreneurs or entrepreneurial teams with high levels of formal business education, commercial, managerial or same sector experience are found to have created better performing NTBFs. Finally it is found that the performance of a NTBF can improve through the combination of heterogeneous but complementary skills, including, for example, technical education and commercial experience or managerial technical and managerial commercial experience. © 2010 Springer Science+Business Media, LLC.

Knowledge sources, innovative activity and the performance of UK new technology based firms

We present an innovation value chain analysis for a representative sample of new technology based firms (NTBFs) in the UK. This involves determining which factors lead to the usage of different knowledge sources and the relationships that exist between those sources of knowledge; the effect that each knowledge source has on innovative activity; and how innovation outputs affect the performance of NTBFs. We find that internal (i.e. R&D) and external knowledge sources are complementary for NTBFs, and that supply chain linkages have both a direct and indirect effect on innovation. NTBFs' skill resources matter throughout the innovation value chain, being positively associated with external knowledge linkages and innovation success, and also having a direct effect on growth independent of the effect on innovation. ©2010 IEEE.

Knowledge sources, innovative activity and the performance of UK new technology based firms

We present an innovation value chain analysis for a representative sample of new technology based firms (NTBFs) in the UK. This involves determining which factors lead to the usage of different knowledge sources and the relationships that exist between those sources of knowledge; the effect that each knowledge source has on innovative activity; and how innovation outputs affect the performance of NTBFs. We find that internal (i.e. R&D) and external knowledge sources are complementary for NTBFs, and that supply chain linkages have both a direct and indirect effect on innovation. NTBFs' skill resources matter throughout the innovation value chain, being positively associated with external knowledge linkages and innovation success, and also having a direct effect on growth independent of the effect on innovation. ©2010 IEEE.

New technology adoption in developing countries:the role of buyer-supplier relationships

Developing countries depend on foreign providers to ensure successful adoption of new technology. This paper investigates the role of buyer-supplier relationships (BSR) in technology adoption using a survey of 147 Malaysian firms. In particular the authors examined the impact on performance of different patterns of buyer-supplier relationship. Results show that firms demonstrating closer relationships with their suppliers are more likely to achieve higher levels of performance than those that do not. There are also insights that are especially pertinent to an improved understanding of buyersupplier relationships in the procurement of capital equipment, about which the current research literature is limited.

The dynamics of HRM systems in Indian BPO firms

This paper highlights the context within which business process outsourcing (BPO) has rapidly grown in India and the critical need to investigate the dynamics of human resource management (HRM) practices and systems in this sector. Using a mixed-method approach involving both in-depth interviews and self-completing questionnaires, we analyze the nature of HRM systems in BPO organizations operating in India. The analysis is based on a sample of 51 BPO companies, a majority of which are located near the capital of New Delhi. The results focus on the nature and structure of work and organization of Indian BPOs, as well as the strategic role played by HRM in such organizations. Furthermore, the findings highlight the way specific HRM practices such as recruitment, performance appraisal, training and development, and compensations are implemented. Our study suggests the existence of formal, structured, and rationalized HRM systems in Indian BPOs. A number of insights related to HRM policies and practices are shared by the HR managers interviewed shedding more light on the inner workings of the Indian BPO companies and their challenges. The analysis provides original and useful information to both academics and practitioners and opens avenues for future research on the nature of HRM systems and practices in the Indian BPO industry.

Earnings behaviour of financially distressed firms:The role of institutional ownership

Using a sample of 859 U.S. bankruptcy-filing firms over the period 1986-2004, we examine the earnings behaviour of managers during the distressed period by looking at sources of abnormal accruals prior to the bankruptcy-filing year. Results show that managers of highly distressed firms shift earnings downwards prior to the bankruptcy filing. We test and provide evidence in support of two potential contributing factors. First, top-level management turnover among distressed firms leads new managers to earnings bath choices during the distressed period. Second, qualified audit opinions exert pressure on managers to follow more conservative earnings behaviour during the distressed period. Evidence is also provided that the management of distressed firms with lower (higher) institutional ownership has greater (lesser) tendency to manage earnings downwards. Results also show that higher institutional ownership mitigates the negative abnormal returns of firms with top management turnover. To the authors' knowledge, this is the first study that attempts to examine whether institutional ownership relates to market reaction in conjunction with a top management turnover or a qualified audit opinion during the distressed period. Prior studies focused on the investigation of earnings management or institutional ownership (separately) during the distressed period, but did not examine if the effect of institutional ownership on earnings behaviour also influences subsequent returns. Thus, the results of this study should be of interest to analysts, standard setters and regulatory bodies since our results show that management turnover, qualified audit opinions and firm governance mechanisms affect the quality of earnings and the level of abnormal returns. © 2007 Accounting Foundation, The University of Sydney.

The effects of external linkages on new product innovativeness:an examination of moderating and mediating influences

Our study of 116 new product development projects in Taiwanese Information Technology (IT) firms show that horizontal linkages more strongly impact on new product innovativeness than vertical linkages. The firm's learning ability or absorptive capacity increases new product innovativeness. It also moderates the impacts of corporate and research institute linkages on new product innovativeness. Moreover, we confirm that knowledge gains mediate the positive impacts of absorptive capacity and external linkages on new product innovativeness.

New directions for international retail joint venture research

This paper contends that a range of questions arising from the geographical and organizational dynamics of international retail joint ventures have been bypassed by studies in the international retail field. It argues that, despite its importance as a corporate growth strategy, comparatively less is known about the way in which retailers have employed joint ventures in international markets. Based on a review of the literature and illustrated with examples of international retail joint venturing activity, this paper reveals several gaps in our understanding of the internationalization process of retail firms. Suggestions for further research are made throughout the paper on the basis of gaps in the retailer internationalization literature.

Total factor productivity and the spillover hypothesis: some new evidence

In this paper I test the spillover hypothesis of the endogenous growth literature on a sample of manufacturing firms in Italy, 1989–1994, using a new approach based on the Malmquist index. First, I measure the productivity growth registered by the high- and non-high-tech firms computing the Malmquist index with DEA. I decompose it into technical change and technical efficiency change. Then I test whether the technical change registered by high-tech firms affects productivity growth of non-high-tech firms, after controlling for factors which can potentially affect productivity growth.

Knowledge acquisition in international strategic alliances among Malaysian manufacturing firms

This thesis examines the process of knowledge acquisition by Malaysian manufacturing firms through their involvement in international strategic alliances. The strategic alliances can be with or without equity involvement. Firms involved with a foreign partner with equity involvement are joint venture firms while non-equity involvement are firms that engaged in contractual agreements. Using empirical evidence from 65 international alliances gathered through a survey conducted in high-technology manufacturing sectors, several factors that influence the process of knowledge acquisition are examined. The factors are: learning capacity, experience, goals, active involvement and accessibility to the foreign knowledge. Censored regression analysis and ordered probit analysis are used to analyse the effects of these factors on knowledge acquisition and its determinant parts, and the effects of knowledge acquisition and its determinants on the performance of the alliances. A second questionnaire gathered evidence relating to the factors, which encouraged tacit knowledge transfer between the foreign and Malaysian partners in international alliances. The key findings of the study are: knowledge acquisition in international strategic alliances is influenced by five determining factors; learning capacity, experience, articulated goals, active involvement and accessibility; new technology knowledge, product development knowledge and manufacturing process knowledge are influenced differently by the determining factors; knowledge acquisition and its determinant factors have a significant impact on the firm’s performance; cultural differences tend to moderate the effect on the firm’s performance; acquiring tacit knowledge is not only influenced by the five determinant factors but also by other factors, such as dependency, accessibility, trust, manufacturing control, learning methods and organisational systems; Malaysian firms involved in joint ventures tend to acquire more knowledge than those involved in contractual agreements, but joint ventures also exhibit higher degrees of dependency than contractual agreements; and the presence of R&D activity in the Malaysian partner encourages knowledge acquisition, but the amount of R&D expenditure has no effect on knowledge acquisition.

The antecedents and consequences of e-business adoption in Malaysian manufacturing firms

Theory suggests that firms that adopt innovation share some common characteristics, just as those who do not adopt innovation and firms adopt a particular technology because the functions provided by the chosen technology fulfils their needs. Building on these arguments, this research project investigates the antecedents and consequences of e-business adoption among manufacturing firms in Malaysia. This thesis develops from the existing literature of organisational innovation adoption, information technology and strategic marketing/management. It further adds to the existing literature by using cultural-based predictors representing organisational characteristics consisting of market orientation, innovativeness and organisational learning. The study also formalises the theoretical framework of organisational-environment-technology. This study develops a new construct called technology motivation in addition to the introduction of several e-business technology scales. The results substantiate the significance of firm technology motivation in determining firm adoption of the various e-business initiatives. In addition, business environment and market orientation are found to influence firm choice of technology motivation. Meanwhile, innovativeness and organisational learning are shown to influence the magnitude of a firm’s e-business adoption. Finally, the results show that firm adoption of e-business technology does not influence organisational performance. This investigation clarifies the rationale and importance of firm technology motivation in adopting the various e-business initiatives. It also highlights the importance of having the appropriate organisational culture in ensuring a successful technology adoption.

An assessment of the industry cluster approach as a tool for local economic development:the case of the new media industry in Birmingham

Industry cluster policies are a current trend in local economic development programmes and represent a major shift from traditional approaches. This trend has been coupled by an increasing interest in new media industry as a significant focus for regional development strategies. In England clusters and new media industry have therefore come to be seen as important tools in promoting local and regional economic development. This study aimed to ascertain the success of these policies. In order to achieve the aims of the study, the Birmingham new media industry was chosen for the study. In addition to an extensive review of the literature, semi-structured interviews were conducted with new media firms and Business Support Agencies (BSAs) offering programmes to promote the development of the new media industry cluster. The key findings of the thesis are that the concerns of new media industry when choosing their location do not conform to the industry cluster theory. Moreover, close proximity in geographical location of the industries does not mean there is collaboration and any costs saved as a result of close proximity to similar firms are at present seen as irrelevant because of the type of products they offer. Building trust between firms is the key in developing the new media industry cluster and the BSAs can act as a broker and provide neutral ground to develop it. The key policy recommendations are that new media industry is continually changing and research must continuously track and analyse cluster dynamics in order to be aware of emerging trends and future developments that can positively and negatively affect the cluster. Policy makers need to keep in mind that there is no uniform tool kit to foster the different sectors in cluster development. It is also important for them to be winning support and trust of new media firms since this is key in the success of the cluster. When cluster programs are introduced they must explain their benefits to industries more effectively in order to encourage them to participate in programmes. The general conclusions of the thesis are that clusters are a potentially important tool in local economic development policy and that the new media industry has a considerable growth potential. The kinds of relationships which cluster theory suggests develop between do not, as yet, appear to exist within the new media cluster. There are however, steps that the BSAs can take to encourage their development. Thus, the BSAs need to ensure that they establish an environment that enables growth of the industry.

Antecedents and consequences of new product development and international new product rollout timeliness:an examination of mediating and moderating influences

The study examined the relationships between antecedents, timeliness in NPD and INPR, and consequences. A conceptual framework was tested using 232 new products from South Korean firms. The hypothesized relationships among the constructs in the model were evaluated by multiple regression and hierarchal regression analyses using SPSS 12 as well as by structural equation modelling (SEM) using SIMPLIS LISREL. In addition, confirmatory factor analysis (CFA) was carried out using SIMPLIS LISREL. In the direct relationships, cross-functional linkages and marketing synergy exhibited a statistically significant effect on NPD timeliness. The results also supported the influences of the HQ-subsidiary/agent relationship and NPD timeliness on INPR timeliness as well as INPR timeliness on performance. In the mediating effect tests, marketing proficiency significantly accounts for the relationships between cross-functional linkages and NPD timeliness, between marketing synergy and NPD timeliness, and between the HQ-subsidiary/agent relationship and INPR timeliness. Technical proficiency also mediates the effect of the HQ-subsidiary/agent relationship on INPR timeliness. The influence of NPD timeliness on new product performance in target markets is attributed to INPR timeliness. As for the results of the external environmentals and standardization influences, competitive intensity moderates the relationship between NPD timeliness and new product performance. Technology change also moderates the relationship between cross-functional linkages and NPD timeliness and between timeliness in NPD and INPR and performance. Standardization has a moderating role on the relationship between NPD timeliness and INPR timeliness. This study presents the answers to research questions which concern what factors are predictors of criterion variables, how antecedents influence timeliness in NPD and INPR and when the direct relationships in the INPR process are strengthened.