The growth-profitability relationship : strategic orientations as moderator

Principal Topic: In this study we investigate how strategic orientation moderates the impact of growth on profitability for a sample of Danish high growth (Gazelle) firms. ---------- Firm growth has been an essential part of both management research and entrepreneurship research for decades (e.g. Penrose 1959, Birch 1987, Storey 1994). From a societal point of view, firm growth has been perceived as economic generator and job creator. In entrepreneurship research, growth has been an important part of the field (Davidsson, Delmar and Wiklund 2006), and many have used growth as a measure of success. In strategic management, growth has been seen as an approach to achieve competitive advantages and a way of becoming increasing profitable (e.g. Russo and Fouts 1997, Cho and Pucic 2005). However, although firm growth used to be perceived as a natural pathway to profitability recently more skepticism has emerged due to both new theoretical development and new empirical insights. Empirically, studies show inconsistent and inconclusive empirical evidence regarding the impact of growth on profitability. Our review reveals that some studies find a substantial positive relationship, some find a weak positive relationship, some find no relationship and further some find a negative relationship. Overall, two dominant yet divergent theoretical positions can be identified. The first position, mainly focusing on the environmental fit, argues that firms are likely to become more profitable if they enter a market quickly and on a larger scale due to first mover advantages and economic of scale. The second position, mainly focusing the internal fit, argues that growth may lead to a range of internal challenges and difficulties, including rapid change in structure, reward systems, decision making, communication and management style. The inconsistent empirical results together with two divergent theoretical positions call for further investigations into the circumstances by which growth generate profitability and into the circumstances by which growth do not generate profitability. In this project, we investigate how strategic orientations influence the impact of growth on profitability by asking the following research question: How is the impact of growth on profitability moderated by strategic orientation? Based on a literature review of how growth impacts profitability in areas such as entrepreneurship, strategic management and strategic entrepreneurship we develop three hypotheses regarding the growth-profitability relationship and strategic orientation as a potential moderator. ---------- Methodology/Key Propositions: The three hypotheses are tested on data collected in 2008. All firms in Denmark, including all listed and non-listed (VAT-registered) firms who experienced a 100 % growth and had a positive sales or gross profit over a four years period (2004-2007) were surveyed. In total 2,475 fulfilled the requirements. Among those 1,107 firms returned usable questionnaires satisfactory giving us a response rate on 45 %. The financial data together with data on number of employees were obtained from D&B (previously Dun & Bradstreet). The remaining data were obtained through the survey. Hierarchical regression models with ROA (return on assets) as the dependent variable were used to test the hypotheses. In the first model control variables including region, industry, firm age, CEO age, CEO gender, CEO education and number of employees were entered. In the second model, growth measured as growth in employees was entered. Then strategic orientation (differentiation, cost leadership, focus differentiation and focus cost leadership) and then interaction effects of strategic orientation and growth were entered in the model. ---------- Results and Implications: The results show a positive impact of firm growth on profitability and further that this impact is moderated by strategic orientation. Specifically, it was found that growth has a larger impact on profitability when firms do not pursue a focus strategy including both focus differentiation and focus cost leadership. Our preliminary interpretation of the results suggests that the value of growth depends on the circumstances and more specifically 'how much is left to fight for'. It seems like those firms who target towards a narrow segment are less likely to gain value of growth. The remaining market shares to fight for to these firms are not large enough to compensate for the cost of growing. Based on our findings, it therefore seems like growth has a more positive relationship with profitability for those who approach a broad market segment. Furthermore we argue that firms pursuing af Focus strategy will have more specialized assets that decreases the possibilities of further profitable expansion. For firms, CEOs, board of directors etc., the study shows that high growth is not necessarily something worth aiming for. It is a trade-off between the cost of growing and the value of growing. For many firms, there might be better ways of generating profitability in the long run. It depends on the strategic orientation of the firm. For advisors and consultants, the conditional value of growth implies that in-depth knowledge on their clients' situation is necessary before any advice can be given. And finally, for policy makers, it means they have to be careful when initiating new policies to promote firm growth. They need to take into consideration firm strategy and industry conditions.

Investigating users’ intuitive interaction with complex artefacts

This paper examines the role of intuition in the way that people operate unfamiliar devices. Intuition is a type of cognitive processing that is often non-conscious and utilises stored experiential knowledge. Intuitive interaction involves the use of knowledge gained from other products and/or experiences. Two initial experimental studies revealed that prior exposure to products employing similar features helped participants to complete set tasks more quickly and intuitively, and that familiar features were intuitively used more often than unfamiliar ones. A third experiment confirmed that performance is affected by a person's level of familiarity with similar technologies, and also revealed that appearance (shape, size and labelling of features) seems to be the variable that most affects time spent on a task and intuitive uses during that time. Age also seems to have an effect. These results and their implications are discussed.

60Sox and the 2bobmob : mentoring in an online learning community for creative industries graduates

Knowledge intensive services are the fastest growing segment of the international economy and the digital creative industries are a key segment therein. Australia is well positioned to exploit this opportunity but has a skills shortage in the digital content industries in terms of commercial ready graduates. We report on a solution to this problem, in the form of an online creative community of practice – www.60Sox.org - where new graduates are mentored by Australian industry leaders - the 2bobmob. We describe this community of practice as a virtual creative ecology and discuss networks, peer feedback and mentoring as key elements of post-tertiary learning, in the context of portfolio career progression.

“Filling out the forms was a nightmare” : project evaluation and the reflective practitioner in community theatre in contemporary Northern Ireland

Since the Good Friday Agreement of 1998, large sums have been invested in community theatre projects in Northern Ireland, in the interests of conflict transformation and peace building. While this injection of funds has resulted in an unprecedented level of applied theatre activity, opportunities to maximise learning from this activity are being missed. It is generally assumed that project evaluation is undertaken at least partly to assess the degree of success of projects against important social objectives, with a view to learning what works, what does not, and what might work in the future. However, three ethnographic case studies of organisations delivering applied theatre projects in Northern Ireland indicate that current processes used to evaluate such projects are both flawed and inadequate for this purpose. Practitioners report that the administrative work involved in applying for and justifying funding is onerous, burdensome, and occurs at the expense of artistic activity. This is a very real concern when the time and effort devoted to ‘filling out the forms’ does not ultimately result in useful evaluative information. There are strong disincentives for organisations to report honestly on their experiences of difficulties, or undesirable impacts of projects, and this problem is not transcended by the use of external evaluators. Current evaluation processes provide little opportunity to capture unexpected benefits of projects, and small but significant successes which occur in the context of over-ambitious objectives. Little or no attempt is made to assess long-term impacts of projects on communities. Finally, official evaluation mechanisms fail to capture the reflective practice and dialogic analysis of practitioners, which would richly inform future projects. The authors argue that there is a need for clearer lines of communication, and more opportunities for mutual learning, among stakeholders involved in community development. In particular, greater involvement of the higher education sector in partnership with government and non-government agencies could yield significant benefits in terms of optimizing learning from applied theatre project evaluations.

Mediatisation and institutions of public memory : digital storytelling and the apology

Institutions of public memory are increasingly undertaking co-creative media initiatives in which community members create content with the support of institutional expertise and resources. This paper discusses one such initiative: the State Library of Queensland’s ‘Responses to the Apology’, which used a collaborative digital storytelling methodology to co-produce seven short videos capturing individual responses to Prime Minister Kevin Rudd’s 2008 ‘Apology to Australia’s Indigenous Peoples’. In examining this program, we are interested not only in the juxtaposition of ‘ordinary’ responses to an ‘official’ event, but also in how the production and display of these stories might also demonstrate a larger mediatisation of public memory.

Academic rigour in science assessment tasks

The critical problem of student disengagement and underachievement in the middle years of schooling (Years 4 . 9) has focussed attention on the quality of educational programs in schools, in Australia and elsewhere. The loss of enthusiasm for science in the middle years is particularly problematic given the growing demand for science professionals. Reshaping middle years programs has included an emphasis on integrating Information and Communication Technologies (ICTs) and improving assessment practices to engage students in higher cognitive processes and enhance academic rigour. Understanding the nature of academic rigour and how to embed it in students. science assessment tasks that incorporate the use of ICTs could enable teachers to optimise the quality of the learning environment. However, academic rigour is not clearly described or defined in the literature and there is little empirical evidence upon which researchers and teachers could draw to enhance understandings. This study used a collective case study design to explore teachers' understandings of academic rigour within science assessment tasks. The research design is based on a conceptual framework that is underpinned by socio-cultural theory. Three methods were used to collect data from six middle years teachers and their students. These methods were a survey, focus group discussion with teachers and a group of students and individual semi-structured interviews with teachers. Findings of the case study revealed six criteria of academic rigour, namely, higher order thinking, alignment, building on prior knowledge, scaffolding, knowledge construction and creativity. Results showed that the middle years teachers held rich understandings of academic rigour that led to effective utilisation of ICTs in science assessment tasks. Findings also indicated that teachers could further enhance their understandings of academic rigour in some aspects of each of the criteria. In particular, this study found that academic rigour could have been further optimised by: promoting more thoughtful discourse and interaction to foster higher order thinking; increasing alignment between curriculum, pedagogy, and assessment, and students. prior knowledge; placing greater emphasis on identifying, activating and building on prior knowledge; better differentiating the level of scaffolding provided and applying it more judiciously; fostering creativity throughout tasks; enhancing teachers‟ content knowledge and pedagogical content knowledge, and providing more in-depth coverage of fewer topics to support knowledge construction. Key contributions of this study are a definition and a model which clarify the nature of academic rigour.

Academic career development workshop for research students and early career academics

For research students and early career academics, universities offer resources that help develop their research skills – for example, critical theory development, literature reviews, research methods, data analysis, writing skills, etc. However, building a successful career in academia poses a wide range of new challenges in addition to the pure academic craft of research. The resources and resilience one needs in order to shape an academic career path often appear ambiguous, particularly in the innately transformative field of Internet research. In response to feedback from AoIR members, this full-day workshop seeks to address this concern by offering a supportive and constructive environment to discuss career development related issues that are of specific interest to research students and early career academics.

Listen and learn

The communities located adjacent to and around the Airport City are composed of diverse interests and cultures that often have little to do with the airport and its global service functions. Yet, as most airport managers know, these communities can have a significant impact on airport operations and land use. Community engagement is an essential element to airport planning and management that is often underplayed and given only a token effort. In order for Airport Cities to realize their full potential in global and national markets as well as assume an appropriate level of corporate responsibility there needs to be a strong and enduring connections to local and regional communities. Through a series of nationally held workshops throughout Australia and internationally, we have reviewed the complex relationship between airports and their surrounding communities. We argue the following engagement elements improve both communication and relationships with local communities and must be actively nurtured, developed and pursued by airport managers: connectivity, collaboration and citizenry.

PIPP #1 - Pedestrian Interaction Patch Project

The Pedestrian Interaction Patch Project (PIPP) seeks to exert influence over and encourage abnormal pedestrian behavior. By placing an unadvertised (and non recording) interactive video manipulation system and projection source in a high traffic public area, the PIPP allows pedestrians to privately (and publically) re-engage with a previously inactive physical environment, like a commonly used walkway or corridor. This system, the results of which are projected in real time on the architectural surface, inadvertently provides pedestrians with questions around preconceived notions of self and space. In an attempt to re-activate our relationship with the physical surrounds we occupy each day the PIPP creates a new set of memories to be recalled as we re-enter known environments once PIPP has moved on and as such re-enlivens our relationship with the everyday architecture we stroll past everyday. The PIPP environment is controlled using the software program Isadora, devised by Mark Coniglio at Troika Ranch, and contains a series of video manipulation patches that are designed to not only grab the pedestrians attention but to also encourage a sense of play and interaction between the architecture, the digital environment, the initially unsuspecting participant(s) and the pedestrian audience. The PIPP was included as part of the planned walking tour for the “Playing in Urban Spaces” seminar day, and was an installation that ran for the length of the symposium in a reclaimed pedestrian space that was encountered by both the participants and general public during the course of the day long event. Ideally once discovered PIPP encouraged pedestrians to return through the course of the seminar day to see if the environmental patches had changed or altered, and changed their standard route to include the PIPP installation or to avoid it, either way, encouraging an active response to the pathways normally traveled or newly discovered each day.

Curriculum and religion

Across continents and cultures and periods of history, religious beliefs have underpinned curriculum in institutions of education. More recently, the so-called culture wars and terrorism have moved religion to center stage. In both state and independent education sectors, deep-seated assumptions about the nature of reality, spirituality, ethics and knowledge converge and clash in the curriculum documents of science, history, literacy education, and the like. With a focus on textual genres of power, starting with antiquity, this chapter argues that little has changed through millennia as the secular mysticism of price has replaced theology today in constraining the potentials of education.

An initial technology roadmap for home automation : home and personal life management

Home Automation (HA) has emerged as a prominent ¯eld for researchers and in- vestors confronting the challenge of penetrating the average home user market with products and services emerging from technology based vision. In spite of many technology contri- butions, there is a latent demand for a®ordable and pragmatic assistive technologies for pro-active handling of complex lifestyle related problems faced by home users. This study has pioneered to develop an Initial Technology Roadmap for HA (ITRHA) that formulates a need based vision of 10-15 years, identifying market, product and technology investment opportunities, focusing on those aspects of HA contributing to e±cient management of home and personal life. The concept of Family Life Cycle is developed to understand the temporal needs of family. In order to formally describe a coherent set of family processes, their relationships, and interaction with external elements, a reference model named Fam- ily System is established that identi¯es External Entities, 7 major Family Processes, and 7 subsystems-Finance, Meals, Health, Education, Career, Housing, and Socialisation. Anal- ysis of these subsystems reveals Soft, Hard and Hybrid processes. Rectifying the lack of formal methods for eliciting future user requirements and reassessing evolving market needs, this study has developed a novel method called Requirement Elicitation of Future Users by Systems Scenario (REFUSS), integrating process modelling, and scenario technique within the framework of roadmapping. The REFUSS is used to systematically derive process au- tomation needs relating the process knowledge to future user characteristics identi¯ed from scenarios created to visualise di®erent futures with richly detailed information on lifestyle trends thus enabling learning about the future requirements. Revealing an addressable market size estimate of billions of dollars per annum this research has developed innovative ideas on software based products including Document Management Systems facilitating automated collection, easy retrieval of all documents, In- formation Management System automating information services and Ubiquitous Intelligent System empowering the highly mobile home users with ambient intelligence. Other product ideas include robotic devices of versatile Kitchen Hand and Cleaner Arm that can be time saving. Materialisation of these products require technology investment initiating further research in areas of data extraction, and information integration as well as manipulation and perception, sensor actuator system, tactile sensing, odour detection, and robotic controller. This study recommends new policies on electronic data delivery from service providers as well as new standards on XML based document structure and format.