Essays on durable goods consumption and firm innovation

This dissertation comprises three individual chapters. Chapter Two examines how free riding across neighbors influenced the diffusion of color television sets in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors concerning its patent output. Chapter Four discusses how knowledge stocks influence a patenting firm’s later diversification. Chapter Two documents the existence of a type of network effects—free riding across neighbors—in the consumption of color television sets in rural China, which reduces the propensity of non-owners to purchase. I construct a model of the timing of the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors about its patent output by examining insider trading patterns and stock price changes in R&D intensive firms. It demonstrates that management has considerable information about its patent output beyond what is known to investors. It also shows that the predictive power of insider trading patterns on patent output comes from purchases rather than sales. Chapter Four discusses two sequential channels through which knowledge stocks may influence a firm’s later diversification. One is that firms with more knowledge are more likely to enter a new industry. The other is that firms’ businesses have a better chance of surviving, conditional on being formed. By examining U.S. public patenting firms in manufacturing sectors for 1984-1996, I find that knowledge stocks predict the likelihood of new industry entry when controlling for firm size. However, this predictive power is weakened when diversification effects are included. On the other hand, a survival study of newly established segments shows that initial knowledge stocks have significant positive effects on segment survival, whereas diversification effects are insignificant.

Three essays on a longitudinal analysis of business start-ups using the Kauffman Firm Survey

This dissertation focused on the longitudinal analysis of business start-ups using three waves of data from the Kauffman Firm Survey. ^ The first essay used the data from years 2004-2008, and examined the simultaneous relationship between a firm's capital structure, human resource policies, and its impact on the level of innovation. The firm leverage was calculated as, debt divided by total financial resources. Index of employee well-being was determined by a set of nine dichotomous questions asked in the survey. A negative binomial fixed effects model was used to analyze the effect of employee well-being and leverage on the count data of patents and copyrights, which were used as a proxy for innovation. The paper demonstrated that employee well-being positively affects the firm's innovation, while a higher leverage ratio had a negative impact on the innovation. No significant relation was found between leverage and employee well-being.^ The second essay used the data from years 2004-2009, and inquired whether a higher entrepreneurial speed of learning is desirable, and whether there is a linkage between the speed of learning and growth rate of the firm. The change in the speed of learning was measured using a pooled OLS estimator in repeated cross-sections. There was evidence of a declining speed of learning over time, and it was concluded that a higher speed of learning is not necessarily a good thing, because speed of learning is contingent on the entrepreneur's initial knowledge, and the precision of the signals he receives from the market. Also, there was no reason to expect speed of learning to be related to the growth of the firm in one direction over another.^ The third essay used the data from years 2004-2010, and determined the timing of diversification activities by the business start-ups. It captured when a start-up diversified for the first time, and explored the association between an early diversification strategy adopted by a firm, and its survival rate. A semi-parametric Cox proportional hazard model was used to examine the survival pattern. The results demonstrated that firms diversifying at an early stage in their lives show a higher survival rate; however, this effect fades over time.^

Bankruptcy Situation Model in Small Business: The Case of Restaurant Firms

The purpose of this paper is to describe and discuss the current bankruptcy prediction models. This is done in the context of pros and cons of proposed models to determine the appropriate factors of failure phenomenon in cases involving restaurants that have filed for bankruptcy under Chapter 11. A sample of 11 restaurant companies that filed for bankruptcy between 1993 and 2003 were identified from the Form 8-K reported to the Securities and Exchange Commission (SEC). By applying financial ratios retrieved from the annual reports which contain, income statements, balance sheets, statements of cash flows, and statements of stockholders’ equity (or deficit) to the Atlman’s mode, Springate model, and Fulmer’s model. The study found that Atlman’s model for the non-manufacturing industry provided the most accurate bankruptcy predictions.

The effects of conflict in driving forward innovation in shared leadership management consultant teams

It is argued in this study that current investigations of the role of conflict in shared leadership teams and, thus, teams in which all members have the opportunity to participate in its decision-making process are insufficient as they have focused on the downsides of these conflicts. This study demonstrates that task conflict is beneficial in that it can have positive effects on innovation in teams. It shows that particularly in shared leadership management consultant teams task conflict can stimulate innovation. Therefore, this research investigates the relationships among shared leadership, conflict and innovation. The research develops and empirically tests a conceptual model which demonstrates the relationships between these concepts and for which the inclusion of multiple research methods was essential. The sequential explanatory approach included a combination of quantitative and qualitative methods, the order of which can be adapted for other domains of application. The conceptual model was first tested with a sample of 329 management consultants. This was followed by 25, in-depth, face-to-face interviews conducted with individual survey respondents. In addition, weekly meetings of a management consultant team in action were video recorded over several months. This allowed for an in-depth explanation of the findings from the survey by providing an understanding of the underlying processes. The inclusion of observational methods provided a validating role and explained how and why conflicts contributed to the development of team innovation, through the analysis of subtleties and fleeting disagreements in a real-life management consultant team. The results deliver an assessment of the theoretical model and demonstrate that task conflict can allow for additional innovation in management consultant teams operating under a shared leadership structure. A practical model and guidelines for management consultant teams wanting to enhance their innovatory capacities are provided. In addition, a novel-user methodology which includes video observations is developed, with recommendations and steps aiding researchers aiming to employ a similar combination of methods. An original contribution to knowledge is made regarding the positive effects that task conflict can have towards innovation in shared leadership teams. Collaboration and trust are identified as important mediators between shared leadership and task conflict and significant regarding the development of innovation. The effectiveness of shared leadership in reducing negative relationship conflict and the benefits of both shared leadership and task conflict in enhancing innovation are demonstrated.

Improving innovation and performance of Social Enterprises: Knowing what they know

Social Enterprises (SEs) are normally micro and small businesses that trade to tackle social problems, and to improve communities, people’s life chances, and the environment. Thus, their importance to society and economies is increasing. However, there is still a need for more understanding of how these organisations operate, perform, innovate and scale-up. This knowledge is crucial to design and provide accurate strategies to enhance the sector and increase its impact and coverage. Obtaining this understanding is the main driver of this paper, which follows the theoretical lens of the Knowledge-based View (KBV) theory to develop and assess empirically a novel model for knowledge management capabilities (KMCs) development that improves performance of SEs. The empirical assessment consisted of a quantitative study with 432 owners and senior members of SEs in UK, underpinned by 21 interviews. The findings demonstrate how particular organisational characteristics of SEs, the external conditions in which they operate, and informal knowledge management activities, have created overall improvements in their performance of up to 20%, based on a year-to-year comparison, including innovation and creation of social and environmental value. These findings elucidate new perspectives that can contribute not only to SEs and SE supporters, but also to other firms.

Bio-fuelling the Hummer? Transdisciplinary Thoughts on Techno-Optimism and Innovation in the Transition from Unsustainability

An overarching aim of this chapter is to offer an informed and critical analysis of ‘techno-optimism’, informed by an explicitly transdisciplinary approach. A transdisciplinary perspective is one in which knowledge production goes beyond the academy to include end non-academic stakeholders and users. In effect it seeks to ‘upstream’ the involvement of non-academic interests in research design and knowledge production, as opposed to limiting those non-academic interests to the dissemination end point stage of research, which is the dominant research model. Techno-optimism is understood as an exaggerated and unwarranted belief in human technological abilities to solve problems of unsustainability while minimising or denying the need for large-scale social, economic and political transformation. More specifically, techno-optimism is the belief that the negative environmental and social costs of high-consumption, affluent, consumer societies and associated ways of life within capitalist orthodox economic growth orientated socio-economic systems, can be solved or eradicated through technological innovation and breakthroughs. Business as usual can be ‘greened’; a capitalist, growth-based economy can be made more ‘resource efficient’, consumerism less ‘resource intensive’ (and maybe a little bit more ethical). Techno-optimism, to be deliberately provocative for a moment, can therefore be described as a ‘biofuel the hummer’ response to the challenges (and opportunities) of the crisis of unsustainability. What I mean by that analogy is the seductive promise and premise of techno-optimism of not questioning or doubting the status quo (the hummer), hence it’s putative (but entirely false) non-political character. The capitalist, consumerist, growth-based socio-economic system is thus removed from critical analysis (usually on the implicit or explicit assumption of either the normative rightness of this system, or on strategic political grounds that it is naive or utopian to envisage widespread support for a non or post-capitalist consumer system). Techno-optimism simply enables a different means (biofuel) to the same ends.

Methods, Models & Systems for Dealing with Some Business, Management & Engineering Problems

This keynote presentation will report some of our research work and experience on the development and applications of relevant methods, models, systems and simulation techniques in support of different types and various levels of decision making for business, management and engineering. In particular, the following topics will be covered. Modelling, multi-agent-based simulation and analysis of the allocation management of carbon dioxide emission permits in China (Nanfeng Liu & Shuliang Li Agent-based simulation of the dynamic evolution of enterprise carbon assets (Yin Zeng & Shuliang Li) A framework & system for extracting and representing project knowledge contexts using topic models and dynamic knowledge maps: a big data perspective (Jin Xu, Zheng Li, Shuliang Li & Yanyan Zhang) Open innovation: intelligent model, social media & complex adaptive system simulation (Shuliang Li & Jim Zheng Li) A framework, model and software prototype for modelling and simulation for deshopping behaviour and how companies respond (Shawkat Rahman & Shuliang Li) Integrating multiple agents, simulation, knowledge bases and fuzzy logic for international marketing decision making (Shuliang Li & Jim Zheng Li) A Web-based hybrid intelligent system for combined conventional, digital, mobile, social media and mobile marketing strategy formulation (Shuliang Li & Jim Zheng Li) A hybrid intelligent model for Web & social media dynamics, and evolutionary and adaptive branding (Shuliang Li) A hybrid paradigm for modelling, simulation and analysis of brand virality in social media (Shuliang Li & Jim Zheng Li) Network configuration management: attack paradigms and architectures for computer network survivability (Tero Karvinen & Shuliang Li)

A MODEL FOR EVALUATING IMPACT OF BUSINESS PROCESS MANAGEMENT IN ORGANIZATIONAL PERFORMANCE

Business Process Management (BPM) is able to organize and frame a company focusing in the improvement or assurance of performance in order to gain competitive advantage. Although it is believed that BPM improves various aspects of organizational performance, there has been a lack of empirical evidence about this. The present study has the purpose to develop a model to show the impact of business process management in organizational performance. To accomplish that, the theoretical basis required to know the elements that configurate BPM and the measures that can evaluate the BPM success on organizational performance is built through a systematic literature review (SLR). Then, a research model is proposed according to SLR results. Empirical data will be collected from a survey of  larg and mid-sized industrial and service companies headquartered in Brazil. A quantitative analysis will be performed using structural equation modeling (SEM) to show if the direct effects among BPM and organizational performance can be considered statistically significant. At the end will discuss these results and their managerial and cientific implications.Keywords: Business process management (BPM). Organizational performance. Firm performance. Business models. Structural Equation Modeling. Systematic Literature Review.

A model to achieve sustainable improvement and innovation in organisations, industries, regions and communities

The achievement and measurement of improvements and innovations is not often an overt practice in the design and delivery of government services other than in health services. There is a need for specific mechanisms proven to increase the rate and scale of improvements and innovations in organisations, communities, regions and industries. This paper describes a model for the design, measurement and management of projects and services as systems for achieving and sustaining outcomes, improvements and innovations.The development of the model involved the practice of continuous improvement and innovation within and across a number of agricultural development projects in Australia and nternationally. Key learnings from the development and use of the model are: (1) all elements and factors critical for success can be implemented, measured and managed; (2) the design of a meaningful systemic measurement framework is possible; (3) all project partners can achieve and sustain rapid improvements and innovations; (4) outcomes can be achieved from early in the life of projects; and (5) significant spill-over benefits can be achieved beyond the scope, scale and timeframe of projects

Types of embedded ties in buyer-supplier relationships and their combined effects on innovation performance

[EN] Purpose of the paper - This research analyzes the impact of three types of embedded ties, namely, specialized complementary resources, idiosyncratic investments, and knowledge sharing, on the innovation capacity of the firms. We also study the particularities of the Machine-Tool industry. Theoretical background – Our evaluation of the embedded buyer-supplier ties is based on the potential sources of relational rents proposed by Dyer and Sing (1998). We also draw on Uzzi and Lancaster (2003), Noordhoff et al. (2011), among others, to discuss the positive and negative aspects of embedded ties. Design/Methodology/Approach ‐ Using data from a survey of 202 European machine-tool firms acting as buyers and sellers, we propose and evaluate a Structural Equation model. Findings ‐ Only knowledge-sharing routines exert a significant positive effect on product innovation performance. Neither an increase in the idiosyncratic investments nor in complementary resources and capabilities enhance innovation performance. Also, knowledge-sharing routines mediate in the effect from idiosyncratic investments on innovation performance. Research Limitations. ‐ The machine tool industry has unique characteristics that make this generalization difficult. Also, there is considerable difficulty associated with testing more deeply the interrelations among these embedded ties in the long run. It is plausible to understand that these interrelations operate within a gradual process. Originality/Value/Contribution of Paper ‐ This research contributes to a better understanding of the role of embedded ties on innovativeness. To the best of our knowledge, there is no previous international empirical research analyzing the mediation effects among specialized complementary resources, idiosyncratic investments and knowledge sharing, and their effects on the innovation capacity of firms.

Implementation of the CDM model to the analisys of the hotel sector

The main aim of this study was to determine the impact of innovation on productivity in service sector companies — especially those in the hospitality sector — that value the reduction of environmental impact as relevant to the innovation process. We used a structural analysis model based on the one developed by Crépon, Duguet, and Mairesse (1998). This model is known as the CDM model (an acronym of the authors’ surnames). These authors developed seminal studies in the field of the relationships between innovation and productivity (see Griliches 1979; Pakes and Grilliches 1980). The main advantage of the CDM model is its ability to integrate the process of innovation and business productivity from an empirical perspective.

Conceptual Reference Model for Virtual Factory: Potentials for Collaborative Business

Part 11: Reference and Conceptual Models

An Agile Innovation Framework Supported through Business Incubators

Part 9: Innovation Networks

An Innovation Model for Collaborative Networks of SOA-Based Software Providers

Part 5: Service Orientation in Collaborative Networks