The Art of Invention: The Creative Process of Discovery and Design Steven J. Paley. Amherst,NY: Prometheus Books, 2010. 236 pages. US$20.00.

Books reviewed in this issue:

• The Art of Invention: The Creative Process of Discovery and Design
• Enterprise Excellence: A Practical Guide to World‐Class Competition
• Operations Rules: Delivering Customer Value through Flexible Operations
• Taming Change with Portfolio Management: Unify Your Organization, Sharpen Your Strategy, and Create Measurable Value

     

Erratum: correction to “Family Ownership and Acquisition Behavior in Publicly‐Traded Companies” (D. Miller,I. Le Breton‐Miller and R. H. Lester)

The original article to which this Erratum refers was published in Strategic Management Journal Vol. 31, No. 2 (February 2010) Originally published in Strategic Management Journal, Volume 31, Number 2 (February 2010). Copyright © 2010 John Wiley & Sons, Ltd.     

The disruptor's dilemma: TiVo and the U.S. television ecosystem

Research summary: Firms introducing disruptive innovations into multisided ecosystems confront the disruptor's dilemma: gaining the support of the very incumbents they disrupt. Through a longitudinal study of TiVo, a company that pioneered the Digital Video Recorder, we examine how these firms may address this dilemma. Our analysis reveals how TiVo navigated coopetitive tensions by continually adjusting its strategy, its technology platform, and its relational positioning within the evolving U.S. television industry ecosystem. We theorize how (1) disruption may affect not just specific incumbents, but also the entire ecosystem; (2) coopetition is not just dyadic, but also multilateral and intertemporal, and (3) strategy is both a deliberative and emergent process involving continual adjustments, as the disruptor attempts to balance coopetitive tensions over time. Managerial summary: New entrants confront a dilemma when they introduce a disruptive innovation into an existing business ecosystem, viz., how can they gain the support of the incumbents that their innovation disrupts? Confronting this “disruptor's dilemma”, the disruptor must consider several issues: How might it pitch its innovation to attract end customers and yet reduce the threat of disruption perceived by ecosystem incumbents? How can the innovation be modified to fit into legacy systems while transforming them? Based on an in‐depth analysis of TiVo and its entrepreneurial journey, we explore the strategies disruptors can deploy to address these issues. Copyright © 2015 John Wiley & Sons, Ltd.     

Knowledge Matters: Technology,Innovation, and Entrepreneurship in Innovation Networks and Knowledge ClustersEdited by Elias G. Carayannis and Piero Formica . Hampshire,UK: Palgrave MacMillan, 2008. 267 + xix pages. US$90.00.

Books reviewed in this issue:

• Knowledge Matters: Technology, Innovation, and Entrepreneurship in Innovation Networks and Knowledge Clusters
• Future Search: Getting the Whole System in the Room for Vision, Commitment, and Action
• Take Charge Product Management: Time‐Tested Tips, Tactics, and Tools for the New or Improved Product Manager

     

Erratum: correction to “technological capability,strategic flexibility,and product innovation” (K. Zheng Zhou,and F. Wu)

The original article to which this Erratum refers was published in Strategic Management Journal Vol. 31, No. 5 (May 2010) Originally published in Strategic Management Journal, Volume 31, Number 5 (May 2010). Copyright © 2010 John Wiley & Sons, Ltd.     

Joint product management strategies for E. coli O157 and feedlot profits

The objective of this study was to investigate the associations of management strategies on Escherichia coli O157 and feedlot profits. Management practices that affect cattle performance were identified using ordinary least squares regressions, while a negative binomial regression was used to identify management practices that were associated with E. coli O157 prevalence. Findings support the hypothesis that E. coli O157 occurrences in the feedlot were not directly associated with cattle performance in the feedlot, which suggests potential for a downstream production externality problem. General categories of management strategies were associated with cattle performance and E. coli O157 occurrences and were consistent with past research. As implementation of enhanced food safety regulations potentially shift responsibility of ensuring safety of the food supply from a government based agency onto private firms, a portion of the costs of E. coli O157 outbreaks is likely to shift to feedlots in the future.     

The individual vs. the group? Individualization and collectivity among students in collaborative design

The various modes in which individuals relate to the collectivity of a group have been fruitfully explored in research on group dynamics. The present paper applies a phenomenological interview approach to understand how this dynamic relationship plays out among design students in a collaborative design situation. Through deep-interviews with the members of a temporary design group, a number of dimensions for this relationship were uncovered. These individual-group characteristics related to instrumentality of engagement, experience of ambivalence and threat and finally to the process of individualization in which the group enabled an individual “design self”. After having presented the theoretical underpinnings and the empirical results of this study, the paper ends with suggesting a synthesis perspective of the individual-group relation in collaborative design.     

Structural vs. relational embeddedness: social capital and managerial performance

This paper examines the impact of managers' social capital on managerial performance. Two dimensions of social capital are compared—the structural embeddedness (i.e., configuration) of a manager's network of work relations and the relational embeddedness (i.e., quality) of those relations. Based on a sample of 120 product and sales managers in a Fortune 100 pharmaceutical firm, this paper presents evidence indicating that both elements of social capital influence managerial performance, although in distinct ways: structural embeddedness plays a stronger role in explaining more routine, execution‐oriented tasks (managerial sales performance), whereas relational embeddedness plays a stronger role in explaining new, innovation‐oriented tasks (managerial performance in product and process innovation). This research considers resource exchanges within firms as key to value creating behaviors and contributes a deeper understanding of how social capital influences productive resource exchanges. Copyright © 2005 John Wiley & Sons, Ltd.     

Geography and power in an organizational forum: Evidence from the U.S. Senate Chamber

We examine the role that geography plays in structuring interactions within an organizational setting designed to promote broad patterns of interaction: the organizational forum. We propose that, within a forum, an individual's location structures his or her access to peer support, but individuals with power (i.e., those who control the flow of organizational resources) can transcend these geographic constraints. We examine these propositions with data collected on strategic actors in the U.S. Senate Chamber. Using a dyad fixed effects approach, time‐varying controls, selection‐on‐observables estimation, and quasi‐exogenous shocks to seating arrangements, we find support for our propositions. These results contribute to our understanding of strategic interaction patterns, with an emphasis on the geographic scaffold upon which strategic actions are constructed. Copyright © 2013 John Wiley & Sons, Ltd.     

Ecological uncertainty,adaptation, and mitigation in the U.S. ski resort industry: Managing resource dependence and institutional pressures

We draw on resource dependence and institutional theories to study how firms manage uncertainty in nature (ecological uncertainty) in the U.S. ski resort industry. Through resource dependence theory, we develop the concept of ecological uncertainty and explain its effects on firms' access to and management of natural resources. We then predict that firms adapt to ecological uncertainty with natural‐resource‐intensive practices, as well as practices that attempt to mitigate its underlying causes. Using institutional theory, we also predict that environmental expectations moderate these responses. Our results indicate that firms did manage ecological uncertainty by adopting natural‐resource‐intensive practices, but not mitigation practices. They also show that stronger environmental expectations constrained firms from adopting natural‐resource‐intensive practices and promoted their adoption of mitigation practices in response to ecological uncertainty. Copyright © 2015 John Wiley & Sons, Ltd.     

The relationship between technology and science: Some historical and philosophical reflections. Part II

Dr Paul Gardner was appointed to the Faculty of Education at Monash University in 1967 and is currently a Reader in Education. After graduating from the University of Melbourne with a science degree and teacher qualifications in 1960, he taught physics and chemistry in high schools for six years. He obtained the M. Ed. degree from the University of Melbourne in 1970 for a thesis which involved experimental studies of concept attainment, and in 1972 completed a Ph.D. at Monash for an investigation of student and teacher characteristics which influence students' attitudes to physics. His major field of interest is science education, and he has published extensively on the assessment of cognitive and affective outcomes, the role of language in learning science and (his current major interest) the links between science and technology. He was a founding member of the university's Centre for Science, Mathematics and Technology Education in 1989. He is currently the Editor ofResearch in Science Education, the annual journal of the Australasian Science Education Research Association, of which he was a founding member in 1970. Early in 1993, he presented a paper on science-technology relationships at a UNESCO-sponsored conference in Jerusalem; a revised version of this paper is being published inStudies in Science Education in 1994. He teaches post-graduate courses on statistical analysis, attitude measurement, curriculum issues and science and technology education.     

On the Price Comovement of U.S. Residential Real Estate Markets

We investigate the comovement among Case‐Shiller Home Price Indices for 14 metropolitan areas between 1992 and 2008. We define the portion of this comovement deemed as fundamental (excessive) as the covariation that can (cannot) be attributed to common fundamental factors directly influencing real estate prices. We find that i) comovement among these markets considerably increased over the sample period, especially in the late 1990s; ii) this increase is mostly attributable to underlying systematic real and financial factors, consistent with a greater fundamental integration of those markets; and iii) excess comovement is a less important factor than commonly believed. We discuss the implications of these results for the evolution of U.S. real estate prices over the last two decades and the ongoing credit crisis.     

Build an Industry Hot Rod: The Nuts and Bolts of Leaving Competitors in the Dust by Marvin L. Patterson

Books reviewed in this issue:

• ? Build an Industry Hot Rod: The Nuts and Bolts of Leaving Competitors in the Dust
• ? Innovating at the Top: How Global CEOs Drive Innovation for Growth and Profit
• ? Determinants of Innovative Behaviour: A Firm's Internal Practices and Its External Environment

     

The throne vs. the kingdom: Founder control and value creation in startups

Research summary: Does the degree to which founders keep control of their startups affect company value? I argue that founders face a “control dilemma” in which a startup's resource dependence drives a wedge between the startup's value and the founder's ability to retain control of decision making. I develop hypotheses about this tradeoff and test the hypotheses on a unique dataset of 6,130 American startups. I find that startups in which the founder is still in control of the board of directors and/or the CEO position are significantly less valuable than those in which the founder has given up control. On average, each additional level of founder control (i.e., controlling the board and/or the CEO position) reduces the pre‐money valuation of the startup by 17.1–22.0 percent . Managerial summary: A founder's vision and capabilities are key ingredients in the early success of a startup. During those early days, it is natural for the founder to have a powerful, central role. However, as the startup grows, founders who keep too much control of the startup and its most important decisions can harm the value of the startup. Both qualitative case studies and quantitative analyses of more than 6,000 private companies highlight that startups in which the founder has maintained control (by retaining a majority of the board of directors and/or by remaining as CEO ) have significantly lower valuations than those where the founder has relinquished control. This is especially true when the startup is three years old or more . Copyright © 2015 John Wiley & Sons, Ltd.     

Technology Education in Ontario: Evolution, Achievements, Critiques and Challenges. Part 1: The Context

This article, in seven sections, describes the evolution of technological education in the Canadian province of Ontario. The first section clarifies the meanings of the terms technology and technological education. The second outlines significant events in the history of technical education in the province. The third examines some of the societal factors that have created a climate for change during the past two decades, while the fourth describes the broader context of recent curriculum developments. The fifth reports on the introduction in 1995 of The Common Curriculum and the publication of Broad-based Technological Education. The sixth provides a few case studies illustrating the variety of ways in which technology education is currently implemented. The seventh section offers an evaluation and critique of some aspects of provincial curriculum policy and practice. The article is published in two parts. Part 1, in this issue, contains the first five sections, which describe the current curriculum offerings and their evolution. Part 2, containing the remaining two sections and all references, will be published in the next issue. This revised version was published online in July 2006 with corrections to the Cover Date.     

Learning and product entry: How diversification patterns differ over firm age and knowledge domains in U.S. generic drug industry

This study uses learning theory to show how knowledge domains affect product extension decisions and how these product decisions change as firms age. Faced with the choice of new product‐markets, a firm might decide to introduce a similar product, by leveraging existing firm knowledge, or to experiment with a less familiar product, which requires new knowledge. Using data on new drug introductions in the US generic pharmaceutical industry, the analyses showed clear support for heterogeneous product‐market entry patterns across knowledge domains as the firm ages. Across time, the form of learning shifts from exploration to exploitation. Copyright © 2013 John Wiley & Sons, Ltd.     

Work and Life Integration: Organizational,Cultural, and Individual Perspectives – Edited by Ellen Ernst Kossek and Susan J. Lambert Work‐Life Balance in the 21st Century – Edited by Diane M. Houston

Books reviewed: Work and Life Integration: Organizational, Cultural, and Individual Perspectives edited by Ellen Ernst Kossek and Susan J. Lambert. Lawrence Erlbaum Associates, Mahwah, NJ and London, 2005, xxviii + 570 pp., ISBN 0 8058 4616 6, $42.50, paper. Work‐Life Balance in the 21st Century edited by Diane M. Houston. Palgrave Macmillan, Basingstoke, UK, 2005, xv + 271 pp., ISBN 1 4039 2062 1, £50.00.     

The Impact of Product Market Competition on Employment Determination in Unionised and Non-Unionised Firms: Firm Level Evidence for the U.K.

In this paper we investigate the effect of increasedcompetition on employment inunionised andnon-unionised firms. We model product and labourmarket imperfections, and their interactions, in Nashequilibrium. The model predicts that employment lossin unionised firms in the face of increasedcompetition will be lower compared with non-unionisedfirms. This paradoxical outcome results from anoffsetting beneficial employment effect ofcompetition, which eliminates wage mark-ups inunionised firms. We find empirical support for thetheoretical prediction using U.K. firm level data overthe period 1985–1989.     

Matsushita v. Zenith: An economic analysis

The Supreme Court erred by deciding that the proposition — that the Japanese television manufacturers, the defendants inMatsushita, had acted as independent competitors — had greater plausibility than the plaintiffs' charge that they had conspired to depress U.S. prices and take a large part of the U.S. market. Independent competitors would not have exported to the U.S., where prices were much below those in the home market. Moreover, the record evidence showed collusion in both the home and U.S. markets. Intent was also shown by the construction of large capacity to supply the U.S.Professor of Economics, New School for Social Research. I was co-author of Horace J. DePodwin, David Schwartzman, and Marcio Teixeira, "Economic Study of the Japanese Television Industry, prepared for plaintiffs' counsel in the Japanese Electronic Products Litigation, M.D.L. 189, Civ. Nos. 74–2451 and 74–3247 in the U.S. District Court for the Eastern District of Pennsylvania, September 1979 [hereafter referred to as the DePodwin Report]. The present article is based on David Schwartzman,The Japanese Television Cartel: A Study Based on Matsushita v. Zenith (Ann Arbor, Mich.: University of Michigan Press, 1993).     

PRICE COMPETITION IN U.S. BREWING*

This study utilizes a brand‐level dataset that captures a unique natural experiment, a 100% increase in the excise tax, to evaluate different pricing models in the U.S. beer industry. To assess the plausibility of different models, the increase in marginal cost resulting from the tax increase is exploited: observed prices in the post‐increase period are compared to the prices that should be observed under various pricing models. Three types of models are analyzed: Bertrand‐Nash, leadership, and collusion. Results indicate that extreme cases of collusion can be confidently ruled out while several models may explain the observed prices equally well.