The impact of social and relational contexts on innovation transfer in foreign subsidiaries

It is widely acknowledged that innovation is one of the pillars of multinational enterprises (MNEs) and that technological knowledge from different host locations is a key factor to the MNEs’ competitive advantages development. Concerning these assumptions, in this paper we aim to understand how the social and the relational contexts affect the conventional and reverse transfer of innovation from MNEs’ subsidiaries hosted in emerging markets. We analyzed the social context through the institutional profile (CIP) level and the relational context through trust and integration levels utilizing a survey sent to 172 foreign subsidiaries located in Brazil, as well as secondary data. Through an ordinary least squares regression (OLS) analysis we found that the relational context affects the conventional and reverse innovation transfer in subsidiaries hosted in emerging markets. We however did not find support for the social context effect.

Toward supporting e-learning and providing e-teaching services for e-world

We are entering the e-World. One special part of it is an e-University that supports e-Learning and provides e-Teaching services. Graduates must be well prepared for working in, with and through the e-World. e-Learning and e-Teaching services are necessary to support modern students learning and help academics to provide excellent teaching. This document reports on the School of Information Technology' initiatives, projects, courses and systems that lead toward e-Learning and e-Teaching in preparation of graduates for the e-World. The major lesson of our work toward supporting e-Learning and providing e-Teaching services is that the School's (the authors believe higher education) greatest asset is intellectual capital (human capital), not intellectual property.

Questioning the future of paper and online survey questionnaires for management research

The way that we build the foundations of our intellectual capital in management has changed. One example is the steady move in management research from the use of traditional paper-based survey questionnaires to online technology-based formats. This paper considers this shift, particularly focusing on the question of whether the advantages of online survey questionnaires outweigh their potential problems. The historical use of paper-based survey questionnaires has produced a large body of literature on both the advantages and disadvantages in their use, which are reviewed here alongside those of online survey questionnaires. In addition, welI-tested methods are available for increasing survey response rates in paper format, and these should not be thrown out in the quest to utilise online survey methodology. Rather, researchers should aim to exploit the potential benefits of online technologies and increase response rate by thoughtfully combining traditional and new methods. This paper argues for further discussion and research attention on electronic methods of data collection to ensure potential cost savings are not outweighed by either financial or participation costs involved in online survey questionnaire design.

Communities of enterprise : developing regional SMEs in the knowledge economy

Purpose – This paper proposes the concepts of Communities of Enterprise (CoEs) and Virtual Communities of Enterprise (VCoEs) to describe business networking patterns in regional areas where there is no central organisational or industry focus and small and medium enterprises dominate the economy. Design/methodology/approach – Based on analysis of the literature this paper builds on theoretical understandings of knowledge management, clustering and regional development.
Findings – The concept of CoEs is most appropriate for regional areas characterised by many small enterprises in diverse industries. CoEs enhance development of regional clusters by contributing to their intellectual capital, innovation culture, value networks and social capital. The incorporation of ICT creates VCoEs which provide added potential by enabling regions to expand their learning potential through innovation.
Research limitations/implications – This paper provides a conceptual foundation for empirical research into regional network or cluster development using ICT.
Practical implications – Virtual Communities of Enterprise value creation potential is substantial but only when the socioeconomic elements of regional clusters are understood. The VCoE approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potential
for value creation in regional clusters is to be found.
Originality/value – The Virtual Communities of Enterprise (VCoEs) concept specifically addresses the unique requirements of SMEs in regions. It has the potential to provide value for regions in a way few ICT based regional development initiatives have been able to achieve.

Adopting reflexive capability in international briefing

Purpose – The aim of the paper is to investigate the architectural firm's role in the briefing process on international projects and to identify the strategies of successful firms to overcome barriers.

Design/methodology/approach – A model is developed based on a critique of briefing models and international design management theory. The development of a reflexive capability model borrows cultural theory concepts of capital and reflexivity. The model is based on maximizing reflexive capability through the management of social, cultural and intellectual capital. Two case studies of architectural firms identify barriers during the briefing process and strategies to overcome these barriers. Data collection involved 16 interviews with senior management and design team staff.

Findings – There are various barriers and strategies used to achieve success in the briefing process. However, the management of a firm's capital is key to successful briefing on international projects and is a characteristic of reflexive practice. Reflexivity is based in a positive interpretation of change, and a continual responsiveness to change by participants in a system. The study provides useful information on management of the design and briefing stages of international projects.

Research limitations/implications – The study is limited by the number of case studies used and the difficulty of generalisability of findings.

Practical implications – The research is that it provides useful information about how to approach constant change during briefing for the architects and clients who work on international projects.

Originality/value – The model is original and has value as it assists in explaining why some firms are more successful than others. The case studies provide new knowledge on international projects and the briefing process. The value of the paper is for the academic community, professionals in the built environment and clients involved in international projects.

The development of 'soft' strategic indicators for international client satisfaction

Despite the increasing significance of the construction industry as an emerging sector of the Australian economy, there is inadequate research performed on construction design firms in terms of theoretical and empirical foundations. Although past research has identified the barriers and success factors for firm market entry, evidence suggests that to date no research has explicitly explored the sustainability of construction design firms in international markets. SMEs and their approach to firm internationalisation differ significantly from large manufacturing firms and a vast majority of construction design firms operate as SMEs. This paper develops a sustainable business model for construction design SMEs, which rely upon the development of clear Client Following (CF) versus Market Seeking (MS) strategies to support internal firm strategic and operational management. The understanding of these strategies is vital as the application of either will shape the design management approach of firms, which would in turn impact on the sustainability of these firms in foreign markets. Long-term sustainability of firms in international markets relies heavily upon client satisfaction. Client and project team participants’ communication during various design processes has often been problematic and the added difficulty of communicating across international boundaries further compounds the problem of capturing and maintaining client’s requirements. Therefore this paper develops a model for business sustainability of Australian construction design firms working in international markets by exploring factors that affect client satisfaction across international boundaries, through the development of business performance indicators. These include not only the critical financial capital but also other ‘softer’ indicators, namely: social, cultural and intellectual capital. These act as a firm’s measure of success and the acquisition of this type of capital will provide significant advantages to firms’ success, hence sustainability in international markets.

Conflict management : the team New Zealand case

The primary subject matter of this case is the effectiveness of risk management strategies associated with the staging of a major international sporting event. A secondary issue examined in the case concerns the proprietary rights of employers to the intellectual capital and skills acquired by employees. The case requires an understanding of strategic risk management and good corporate governance principles.

This case has a difficulty level that makes it most suitable for senior level students in a Corporate Governance/Business Ethics course. The case is designed to be taught in three class hours and would require about eight hours of out-of-class time which includes reading the case material and the articles listed in the references.

Developing reflexive capability for successful joint ventures between Australian and Malaysian property and construction professionals

Increasingly Malaysian property and construction firms are seeking to work internationally. Firms enter international markets through various strategies and typically property and construction professionals rely on developing various forms of cooperative and collaborative arrangements. The common modes of entry include international alliances, project joint ventures, partnerships, company joint ventures and large consortiums; which arise as a response to clients seeking expressions of interests from the international community or the firms seeking to internationalise approaching clients and/or potential host country partners. Increasingly project teams on international mega projects are composed of multiple key partners from different countries coming together to achieve a higher level of strategic flexibility. Establishing and maintaining local connections and business networks are therefore critical to ensure the success of exporting firms. This paper reports the findings of a project which explores factors affecting the performance of Malaysian property and construction professionals working internationally through effective joint ventures. The project seeks to develop a performance measurement framework to examine the extent to which Malaysian firms are developing sustainable business models internationally which adapt and respond to changing conditions. A generic framework was initially developed prior to this study through a grounded theory approach merging theory from internationalisation, design management and market knowledge literature followed by a case study empirical investigation and then further literature review based upon the themes which emerged from the case study analysis. A reflexive capability model for firms in managing both economic and non-economic capital; including social, cultural and intellectual capital was developed. This project seeks to build upon the reflexive model by adapting it to the unique contexts related to the specific geographic localities of exporting Malaysian firms. Specifically, the project explores the extent to which the performance measurement framework can be used to map capabilities Malaysian construction firms have and Which they need to develop in relation to developing and maintaining international collaborative partnerships. The preliminary results of one case study Malaysian architectural firm are discussed.

A trilogy on discontinuous innovation. Part I : search

In this article we discuss the concept of Discontinuous Innovation (DI) and how it differs from incremental (or steady-state) innovation. We propose a model to conceptualise the different aspects of DI and discuss the complex nature of the DI process through an investigation of previous literature, and propose a sequence of articles roughly following the key components as described in the conceptual model, beginning with aspects of ‘search’. We then describe an on-going multi-national action research program established to investigate DI through the development of learning networks of firms in several European nations and Australia. The research progress to date is outlined and initial results of analysis on both quantitative and qualitative data collected thus far is used to explore how companies go about searching for clues or ideas about potential discontinuous innovations, which may either create competitive advantage for, or threaten the survival of the business. Key outcomes of the research to date include the identification of the most common search strategies within the participating companies and some descriptive analysis on just how these strategies are implemented in targeted firms. Finally we describe the proposed future research program and the two papers to follow completing the planned three part series on Discontinuous Innovation.

Challenges of international design chain integration and cultural diversity : organisational reflexive capability

Increasingly project teams on international mega projects are composed of multiple partners from different countries forming joint ventures to achieve a higher level of strategic flexibility. Establishing and maintaining local business networks are critical to ensure the success of exporting firms. Firms who achieve competitive advantage in international markets and long term economic sustainability constantly adapt their business practices to achieve client satisfaction by a combination of self, market and project needs assessment. Successful firms ultimately achieve this in local markets but in international market this is intensified with the complexity of barriers grounded in cross-cultural contexts. The need for flexibility, adaptability and continual reassessment is enhanced as the market evolves in various localities. Reflexivity theory was used to develop a conceptual model to explain the way in which firms develop awareness, responsiveness and adaptability for long term success in diverse international markets. This paper summarizes the initial Australian study which developed the model grounded in empirical observations of design construction firms working on projects in developing countries and a second study of Malaysian firms which validated the model. The aim of this study was to develop a performance measurement framework for capabilities assessment of international collaborative partnerships. The study explored the joint venture partnerships between Australian and Malaysian property and construction professionals. Four Malaysian organizations were examined as case studies and two key activities of design management and knowledge management were analyzed in relation to social, cultural and intellectual capital transformation within the Reflexivity Capability Maturity Assessment Framework.

Design management methodology to strengthen firm and industry competitiveness in the construction design services export sector

The aim of this research was to investigate strategies deployed by successful construction design-related firms towards achieving high levels of firm competitiveness in international markets. A reflexive capability model, developed through a critical analysis of related internationalisation literature, is composed of three key areas; internationalisation process, market knowledge and design management. Firm reflexive capability is explored through the management of social, cultural and intellectual capital. The concept of reflexivity is borrowed from sociology. Reflexivity is reinterpreted as the ‘firm’s’ ability to be aware, responsive and adaptable to self, market and project needs assessment. A cross case analysis explored the barriers and success factors through three constructs; internationalisation process, design management and market knowledge of three firms. This paper demonstrates that international firm competitiveness is dependent upon the strategic inter-relational management of social, cultural and intellectual capital for maximum advantage of the utilisation and leverage of one form of capital to gain another. This leads to the development of increasing reflexive capability to support internationalisation. An outcome of this research is the identification of the central relation between a level of reflexive capability within the firm and the firm’s level of success in international markets. This research is part of an ongoing program of research on international collaborative practice. A Reflexive Capability Matrix was developed from the findings of one research project and then validated through a second research project (only the capability matrix is presented in this paper though). The reflexive capability approach is appropriate to all firms but what is speculated upon is that the reflexive capability is particularly intrinsic to small to medium sized construction design firms who work globally. A reflexive capability is a characteristic of successful and innovative firms internationalising and working within global models of practice.

The development of a theoretical model for firm design management to support internationalisation processes

The aim of this research was to investigate strategies deployed by successful construction design related firms towards achieving high levels of firm competitiveness in international markets. A reflexive capability model, developed through a critical analysis of related internationalisation literature, is composed of three key areas; internationalisation process, market knowledge and design management. Firm reflexive capability is explored through the management of social, cultural and intellectual capital. The concept of reflexivity is borrowed from sociology the philosophers, Bourdieu and Giddens. Reflexivity is reinterpreted as the ‘firm’s’ ability to be aware, responsive and adaptable to self, market and project needs assessment. This research is part of an ongoing program of research on international collaborative practice. A Reflexive Capability Matrix is proposed. The reflexive capability approach is appropriate to all firms but what is speculated upon is that the reflexive capability is particularly applicable to small to medium sized construction design firms who work globally. A reflexive capability is a characteristic of successful and innovative firms internationalising and working within global models of practice. This paper is the theoretical development to support the paper in this congress “Design Management Methodology to Strengthen Firm and Industry Competitiveness in the Construction Design Services Export sector” where the methodology and results of a cross case analysis of three construction design firms are presented.