How Information Technology Assimilation Promotes Exploratory and Exploitative Innovation in the Small‐ and Medium‐Sized Firm Context: The Role of Contextual Ambidexterity and Knowledge Base

This research sheds new light on how information technology (IT) assimilation affects exploratory and exploitative innovation in the context of small‐ and medium‐sized firms (SMEs). This contextualization is important in establishing the boundary conditions for the theory, as well as generating specific managerial insights for SME managers. A sample of 248 U.K.‐based SMEs in the manufacturing industry demonstrates contextual ambidexterity (CA) mediates the relationship between IT assimilation and two types of innovation. This finding highlights that IT assimilation does not automatically promote innovation. Instead, IT assimilation represents a critical resource that enables the effective implementation of CA, which in turn affects innovation. This implies that SMEs cannot fully realize the potential of their IT assimilation and use it to enable innovation without implementing CA. Furthermore, this study differentiates between two different dimensions of knowledge base: knowledge breadth and knowledge depth. This study finds that knowledge breadth moderates the indirect IT assimilation–exploratory innovation relationship by influencing the effect of CA on exploratory innovation. Knowledge depth, on the other hand, moderates the indirect IT assimilation–exploitative innovation relationship by influencing the effect of CA on exploitative innovation. This finding implies that SMEs can benefit from their IT assimilation that enables them to engage in CA, which in turn allows them to perform innovation. However, it is apparent that the dimension of knowledge that SMEs hold internally can determine what types of innovation that they are able to perform.     

Co-production and its effects on service innovation

This study explores the influence of business-to-business (i.e., upstream) co-production on service innovation in the information technology (IT) industry, and examines the antecedents of co-production, based on a survey of sales managers, the seller side of the co-producers, from 157 IT businesses in Taiwan. The findings indicate that co-production positively influences service innovation to a degree that depends on the collaborative partner's compatibility and history of business relations, affective commitment, and expertise. Moreover, the business' innovation orientation enhances (moderates) the relationship between co-production and service innovation. These results have several managerial implications. Businesses should choose co-production partners that are compatible and can contribute toward advancing the relationship. Furthermore, investments in building their innovation orientation will strengthen their efforts in service innovation through co-production.     

New technology and changing organisational forms: implications for managerial control and skills

Changes in organisational forms are central to the way new technologies impact on the future of work and employment. Drawing on case–study evidence of a call centre and its client relations and a multinational IT firm and its partnership with a government department, this paper explores the implications for skill and managerial control.     

Managerial Strategies, Labour and Employment Relations and the State: the Canadian Case and Beyond

This paper addresses: (1) the extent to which changes appear to have occurred in managerial strategies and labour and employment relations in Canadian firms, and (2) the role of the state relative to anonymous economic forces in accounting for Canadian developments. The general findings are that, while there have been a number of significant changes, these have been more moderate than expected by 'transformation' theory; furthermore, the Canadian case is consistent with the argument that state actions play a major role relative to more anonymous economic 'forces' in accounting for developments in labour and employment relations. It also suggests an alternative model to that typically assumed by transformation theory, one in which state policies and economic conditions are considered to be important not only for their direct effects on employer policies, but also for their indirect effects, through their implications for worker expectations and union militancy. Although these conclusions are tentative and call for more systematic, comparative research, they are consistent with arguments by Burawoy and others that state actions can serve as an important source of labour regulation at the level of the firm.     

Using performance-based contracts to foster innovation in outsourced service delivery

While many scholars claim that Performance-based Contracts (PBCs) foster supplier-led innovation, empirical research into their actual use and effects remains limited. We therefore explore two cases of IT outsourcing through such contracts to see whether, and if so how, PBCs foster innovation. Our findings suggest that in both cases, the low degree of term specificity in PBCs (i.e., their openness regarding how to render the contracted services) provides suppliers with autonomy in their daily service operations, which in theory allows them to innovate. However, only one of the suppliers exhibited high innovative performance. Other relevant factors aside, our findings further suggest that a lack of granted autonomy during contract execution is an important factor in explaining the level of supplier-led innovation. Our findings imply that outsourcers that remain too closely involved with the outsourced service delivery and do not allow their suppliers to act autonomously during contract execution limit their suppliers' innovation potential.     

Effects of innovation on employment: A dynamic panel analysis

This paper estimates the effect of innovation on employment at the firm level. Our uniquely long innovation panel data set of German manufacturing firms covers more than 20 years and allows us to use various innovation measures. We can distinguish between product and process innovations as well as between innovation input and innovation output measures. Using dynamic panel GMM system estimation we find positive effects of innovation on employment. This is true for innovation input as well as for innovation output variables. Innovations show their positive effect on employment with a time lag and process innovations have higher effects than product innovations.     

Challenges of open innovation: the paradox of firm investment in open-source software

Open innovation is a powerful framework encompassing the generation, capture, and employment of intellectual property at the firm level. We identify three fundamental challenges for firms in applying the concept of open innovation: finding creative ways to exploit internal innovation, incorporating external innovation into internal development, and motivating outsiders to supply an ongoing stream of external innovations. This latter challenge involves a paradox, why would firms spend money on R&D efforts if the results of these efforts are available to rival firms? To explore these challenges, we examine the activity of firms in open‐source software to support their innovation strategies. Firms involved in open‐source software often make investments that will be shared with real and potential rivals. We identify four strategies firms employ – pooled R&D/product development, spinouts, selling complements and attracting donated complements – and discuss how they address the three key challenges of open innovation. We conclude with suggestions for how similar strategies may apply in other industries and offer some possible avenues for future research on open innovation.     

Unraveling Home and Host Country Effects: An Investigation of the HR Policies of an American Multinational in Four European Countries

This article argues that the institutional "home" and "host" country effects on employment policy and practice in multinational corporations (MNCs) need to be analyzed within a framework which takes more account both of the multiple levels of embeddedness experienced by the MNC, and processes of negotiation at different levels within the firm. Using in-depth case study analysis of the human resource (HR) structure and industrial relations and pay policies of a large U.S.-owned MNC in the IT sector, across Germany, Ireland, Spain, and the United Kingdom, the article attempts to move towards such a framework.     

Information technology impacts on innovation

In this paper, we propose a model of Information Technology (IT) impacts on innovation. We do not intend to generalize a specific model of innovation. Rather, the objective here is to explain how IT can facilitate innovation in a work group. Review of literature suggests that innovative ability of a work group is dependent on the capabilities of the individuals/group, the structure of the work group or organization, and the group/organizational environments. To explore this conceptual model, data were collected from 136 users who used well-established information systems. The data supported that IT enhanced innovation significantly by augmenting individual/group capabilities through: 1) motivation support, 2) resource support, and 3) information support. Motivation support was shown to be the most important contributor of innovation. Group interaction variables, standardization, decentralization, and specialization, were shown to be positively related to innovation. However, the effect of group interaction was secondary in nature; the independent contributions to innovation of group interaction variables, controlling for other factors, were not significant. In addition, the data provided support that innovation was positively related to demand pull via motivation and resource support, and to technology push via information support.     

Employment Rules in German Theatres: An Application and Evaluation of the Theory of Employment Systems

This paper applies David Marsden's Theory of Employment Systems to employment relations in German non‐profit repertory theatres. Constraints in applying Marsden's framework to theatres are taken as a starting point for a reconsideration of its underpinning assumptions. I show that this approach (i) helps us to understand the institutional embeddedness of theatrical employment and (ii) enables a closer look at the strengths and weaknesses of Marsden's theory. Since Marsden supports the idea that the open‐ended employment relationship will persist and will remain prevalent, challenging his theory can contribute to our understanding of ‘new’ forms of employment.     

The Ascendancy of Employment Arbitrators in US Employment Relations: A New Actor in the American System?

In this paper, we survey the underpinnings of the trend towards employment arbitration in the United States, and its implications for the broader industrial relations system. Specifically, we address the question of whether or not employment arbitrators have been substituted for collective bargaining by the government to an extent that warrants their inclusion as an actor in the industrial relations system. We review developments in workplace dispute resolution in the United States, the literature that attempts to explain these developments and posit an assessment of the stability of employment arbitration, and employment arbitrators, as a central feature of the US industrial relations system.     

IT competency and firm performance: is organizational learning a missing link?

Many companies have developed strategies that include investing heavily in information technology (IT) in order to enhance their performance. Yet, this investment pays off for some companies but not others. This study proposes that organization learning plays a significant role in determining the outcomes of IT. Drawing from resource theory and IT literature, the authors develop the concept of IT competency. Using structural equations modeling with data collected from managers in 271 manufacturing firms, they show that organizational learning plays a significant role in mediating the effects of IT competency on firm performance. Copyright © 2003 John Wiley & Sons, Ltd.     

The rise of IT services clusters in India: A case of growth by replication

The Indian IT services sector has grown from small beginnings at the bottom of value creation to a major player in the global information and communications technology (ICT) industry. It commands a 55% share in the global market for IT services. India's IT sector value proposition in terms of low cost with large supply of high quality talent is compelling. As a result, India has become the premier choice not only for outsourcing IT services by the developed-world's multinational corporations (MNCs) but also for locating their own Global In-house Centers (GICs), which simultaneously compete and partner with local firms. This gave rise to six additional clusters beyond the earliest, largest and robust cluster, Bangalore. The paper provides a review of relevant literature; develops a conceptual framework for evaluation of clusters; and presents data and analysis with respect to relative size, growth, specialization, MNC presence and connectivity to local firms through expatriates and returning Indians, ,innovation; and discusses adequacy of ICT infrastructure for future growth. Although there are clear signs that the Indian IT sector has been moving towards a regime of providing high-end value added services, the sector's value proposition – lower cost combined with a large supply of high quality talent – remains the single most compelling reason for the rise and growth of multiple export clusters. Thus the sector's growth appears to be a case of growth by replication rather than innovation. The paper concludes that the Indian IT sector's value proposition in terms of lower cost combined with large supply of high quality talent remains the single most compelling reason for the rise and growth of multiple IT services export clusters. While the old adage, “people follow jobs” still holds for large part of the labor force, there is little doubt that the sprawling IT services clusters in India - with more to come from Tier II and Tier III cities – indicate, in fact, that “jobs follow talent." Both local firms and the MNCs, through their GICs, are pushing the boundaries of location farther and farther to continue to leverage cost advantage and available pools of talent.     

Institutions Are What Actors Make of Them — The Changing Construction of Firm‐Level Employment Relations in Spain

This article analyses the variation and change in firm‐level employment relations in Spain between the transition to democracy and the global financial crisis. Using three auto companies as case studies, I address a crucial puzzle in the institutional literature on comparative employment relations: How do employment relations change and vary, even when national employment relations institutions do not? This article argues that differences in actor ideologies shape the construction of national institutions at the firm level, which explains change and variation of employment relations over time and across cases. The study identifies four drivers of ideological change — generational change, leadership change, identity work and diffusion — that impact the variation and change in employment relations at the firm level.     

Paradigms in Industrial Relations: Original,Modern and Versions In‐between

This article argues that the industrial relations (IR) field has had two distinct paradigms — an original paradigm centred on the employment relationship, and a modern paradigm centred on unions and labour–management relations. In practice, IR scholars in the decades after the Second World War frequently adopted the former as a broad principle but followed the latter in research and teaching. The narrower labour–management paradigm has created a significant survival challenge for the IR field, given the marked long‐term decline in union density in most countries. I join with others in arguing that to survive and prosper in the years ahead, the field needs to return to an updated version of the original ‘employment relationship’ paradigm. To promote this end, I describe the major features of the original paradigm, including its core positive and normative principle. I also outline how this core principle provides the foundation for an integrative IR theory of the employment relationship, which the field greatly needs to move ahead.     

The Politics of Partnership? Innovation in Employment Relations in the Scottish Spirits Industry

Perspectives that emphasize links between workplace innovation and broader HR policies, particularly of a 'mutual gains' nature, have become increasingly influential. This paper analyses the links and tensions between workplace change and industrial relations systems in the context of attempts to create a shop-floor politics of partnership during a period of corporate restructuring in two spirits companies. We argue that interface tensions between the employment relationship, the labour process and organizational governance are inextricably linked to the outcomes of partnership initiatives. While there are positive outcomes to more integrated approaches to partnership, a range of industrial relations issues, notably the ambivalent position of shop-stewards, remains problematic.     

Collective Bargaining and Technological Investment: The Case of Nurses’ Unions and the Transition from Paper‐Based to Electronic Health Records

Does the presence of a unionized nursing workforce retard US hospitals’ transition from paper‐based to electronic health records (EHRs)? After tying archival data on hospitals’ structural features and health information technology (IT) investment patterns to self‐gathered data on unionism, I find that hospitals that bargain collectively with their registered nurses (RNs) appear to delay or forego the transition away from paper, consistent with existing theory and research in industrial relations and institutional economics. However, this relationship is fully mediated by a hospital's payer mix: those serving a larger share of less lucrative, elderly, disabled and indigent patients are more likely to adopt EHRs if they are unionized than if they are not, a result that holds even at the median payer mix. Indeed, this accords with research on the interplay of labour and technology as the aforementioned dynamics are driven entirely by RN‐exclusive bargaining units for whom the new IT serves as a complement rather than as a substitute in production. Given the outsized role that unions play in the US healthcare sector, the overall sluggish performance of the sector, and the expectations that policymakers have for EHRs, evidence that these unions are welfare‐enhancing should be welcome news.     

Developing organizational agility in product innovation: the roles of IT capability,KM capability,and innovative climate

This study investigates how to leverage information technology (IT) capability to build organizational agility in the context of product innovation. A moderated mediating model is proposed from the capability‐building processes perspective. The data collected from 194 senior executives of firms in China show that knowledge management capability partially mediates the relationship between IT capability and organizational agility. Innovative climate also positively moderates the indirect relationship between IT capability and organizational agility in the context of product innovation. Discussion, implications, and direction for future research are offered at the end of this paper.     

Theorizing Chinese Employment Relations Comparatively: Exchange, Reciprocity and the Moral Economy

This paper contrasts the socio-cultural systems underpinning employment relations in the West and in the Overseas Chinese case. The analysis centres on the norm of reciprocity which, whilst taken as a universal phenomena, exhibits significant cross-cultural variation. Western employment relations are characterised by a model of impersonal rational economic exchange in which individuals engage in a utility calculus. Chinese employment relations remain more fully embedded in the wider socio-cultural system of which reciprocity is a vital and integral part. Employment relations are sustained by a personalistic tacit moral order. The implications for managing employment relations in changing and multi-cultural situations are discussed. The sustainabilty of the different employment relations systems are also discussed.     

Union–Member Relations and Satisfaction with Unions in South Korea

This paper uses a large sample of South Korean union members working in different industries and occupations to test a model of union satisfaction. The results suggest that union–member relations — member representation and union leader effectiveness — are more important than the economic results that unions provide to members. These findings are in line with our general argument that, where unions rely on decentralized collective bargaining as the prime method of employment regulation, they depend heavily on internal union relations for their effectiveness. We contend that, if unions are to limit the decline in their influence, assessing and changing internal union relations should be a priority.