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.     

‘We can only request what's in our protocol’: technology and work autonomy in healthcare

This article explores the tension between standardization and autonomy raised by the implementation of new technology in healthcare organizations. The theoretical frame of this study is grounded in the impact of new technologies on work organization, routinization and autonomy across settings. Empirically it presents evidence from two NHS Trusts in England that implemented a national Electronic Patient Record (EPR). The paper aims to reinvigorate the debate on the tension between standardization and autonomy in professional workplaces such as healthcare. It argues that the implication of technology in professional work conditions processes of task routinization that constrain autonomy, and enables reallocation of discretion between professional groups. We argue that routinization is not restricted to low‐skill work but may travel across contexts and be evidenced in high‐skill work environments. The interplay between routinization and autonomy is also useful in drawing insights concerning the dynamics of change that occur in professional work.     

Building dynamic capabilities for innovation: an exploratory study of key management practices

While both the innovation literature and the dynamic capabilities perspective identify loose processes as most appropriate for high uncertainty domains, this produces little reassurance to organizations seeking to improve their ability to commercialize innovations. This paper takes the position that practices for managing innovation project leaders are a key component of an organization's dynamic capabilities for innovation. Our comparative case analysis of divisions of two established Korean organizations suggests that managerial practices include the deployment of entrepreneurial resources having particular skills, characteristics, and motivation. In addition, we identify the relational and decision support roles of managers.     

Managing technology development teams – exploring the case of microsytems and nanosystems

New sensor and actuator concepts based on microelectromechanical systems (MEMS) and nanoelectromechanical systems (NEMS) are increasingly being developed from lab status toward commercialization. The associated technology development for the provision of improved functionalities and cost reduction often requires highly interdisciplinary development teams where scientists and engineers from different disciplines closely work together. Managing these teams is a key challenge for MEMS/NEMS organizations. This research examined eight technology developments in MEMS/NEMS in international companies. Based on in‐depth interviews with innovators, we explored the managerial aspects of development teams. We identified and discuss (1) leadership, (2) market, (3) team structure and culture, (4) innovation motivation, (5) innovation driver, (6) experience and know‐how, and (7) product vision and innovation strategy as key influences on teams in the early development phases of MEMS/NEMS. Our study reveals that integrative and manufacturing know‐how and capabilities are the most critical capacities to be developed by the team from the idea to the concept phase. The team's lived experience during long development times from 5 to 10 years or more may allow a fast response to changes from market and technology (e.g. materials and nanotechnology). The results indicate that the process of how know‐how and capabilities are created by the team is more important than the mere existence of specific expertise.     

Customer Involvement in New Service Development: An Examination of Antecedents and Outcomes*

Customer involvement has been recognized as an important factor for successful service development. Despite its acknowledged importance, a review of the literature suggests that there is little empirical evidence about the effectiveness and outcomes of interacting with customers while developing new services. Similarly, the extant literature shows mixed views about the effect of technological uncertainty on customer involvement and the effectiveness of customer involvement at different stages of the new service development process. Against this backdrop, the present study has three objectives: (1) to investigate the effects of customer involvement on operational dimensions (i.e., innovation speed and technical quality) and market dimensions (i.e., competitive superiority and sales performance) of new service performance; (2) to examine the effect of technological novelty and technological turbulence on customer involvement; and (3) to explore the moderating effect of the stage of the development process on the relationships among technological novelty, technological turbulence and customer involvement, and customer involvement and new service performance. A total of 807 firms with 75 or more employees in a varied set of industries were selected from the Dun & Bradstreet's 2004 listing of Spanish service firms. A questionnaire was mailed to the person in charge of new service development at each company. A total of 102 complete questionnaires were returned. Findings reveal that whereas customer involvement has a positive direct effect on technical quality and innovation speed, it has an indirect effect on competitive superiority and sales performance through both technical quality and innovation speed. The study also finds a positive effect of technological novelty as well as technological turbulence on customer involvement. Contrary to expectations, the study does not find any moderating effects of the stage of the development process. This study has several theoretical and managerial implications. In terms of theoretical implications, the study supports the role of technological uncertainty (novelty and turbulence) as an antecedent to customer involvement. It also provides empirical evidence of the impact of customer involvement on operational and market dimensions of new service performance. In terms of managerial implications, the study offers critical insights on how customer involvement in new service development translates into improved new service performance. Furthermore, it reveals that the importance of customer involvement in technologically uncertain contexts and its impact on new service performance are independent of the stage of the development process, suggesting that managers should involve customers throughout the entire development process.     

Making innovation happen in organizations: individual creativity mechanisms,organizational creativity mechanisms or both?

Marketing managers increasingly face a product innovation dilemma. Managers will have to sell more with fewer new products in an environment where new products are providing lower revenue yields. Therefore, understanding what drives successful innovation is of paramount importance. This paper examines the organizational innovation hypothesis that innovation is a function of individual efforts and organizational systems to facilitate creativity. Our model formulates creativity as a property of thought process that can be acquired and improved through instruction and practice. In this context, individual creativity mechanisms refer to activities undertaken by individual employees within an organization to enhance their capability for developing something, which is meaningful and novel within their work environment. Organizational creativity mechanisms refer to the extent to which the organization has instituted formal approaches and tools, and provided resources to encourage meaningfully novel behaviors within the organization. Using data collected from 634 organizations, we find support for this hypothesis. The results suggest that the presence of both individual and organizational creativity mechanisms led to the highest level of innovation performance. The results also suggest that high levels of organizational creativity mechanisms (even in the presence of low levels of individual creativity) led to significantly superior innovation performance than low levels of organizational and individual creativity mechanisms. The paper also presents managerial and academic implications. This study suggests that it is not enough for organizations to hire creative people and expect the innovation performance of the firm to be superior. Similarly, it is not enough for firms to emphasize management practices to enhance creativity and ignore individual mechanisms. Although it is true that doing either will improve innovation performance, doing both should lead to higher innovation levels. Our understanding of what and how creativity influences innovation performance can be greatly enhanced by additional research that integrates the intrinsic and extrinsic drivers of creativity. Research that examines the role of team creativity efforts in enhancing innovation performance is also vital to an overall improved understanding of creativity, learning, and innovation within organizations.     

An investigation into the role of IT integration,relationship predictability and routinization in interfirm relationships: From the structuration perspective

Recognizing the influence of information technology (IT) in interfirm buyer–seller relationships, the authors draw on structuration theory and its extension as a theoretical basis for understanding the benefits of IT in customer relationships. The authors propose that IT integration gives rise to certain factors in interfirm relationships, i.e., predictability and routinization, which facilitate high quality relationships, i.e., those characterized by reciprocity and stability, which in turn enhance firm performance. Hypotheses are tested on data collected from 152 firms. The results show that relationship predictability is critical in linking IT integration to positive relationship outcomes, and that routinization reinforces the impact on those outcomes.     

Innovating through alliances: expectations and limitations

Abstract
In this paper we have analysed the innovation processes occurring in several cross-industry technology partnerships in order to suggest some key managerial issues pertaining to the effectiveness of these increasingly popular initiatives. Our general proposition, based on an extensive literature review and clinical research, is that the managerial hurdles in partnerships frequently offset, and in some cases eliminate, the expected innovation advantages. We submit that there is a fundamental tension between the dynamics of innovation and the logic of partnering. The extent of the tension, however, depends on the nature of the innovation project and on the characteristics of the partnership. Thus we recommend that managers involved in the formation of joint-R&D agreements should carry out an innovation-partnering assessment to design an appropriate management structure that would minimise the 'tension'. Lastly, we suggest some ingredients for carrying out such an assessment, and directions for further research.
Alliances seem to be today's answer to most management challenges. As recent surveys show, companies all over the world are forming partnerships to alleviate difficulties met in nearly every business activity —design, manufacturing, distribution, service… (e.g. Hergert & Morris, 1987; Urban, 1989), The popularity of such strategic initiatives in the 1980's has led to a dramatic increase in the number as well as in the forms of alliances (Hagedoorn and Schakenraad, 1990).     

Corporate social responsibility as an employee governance tool: Evidence from a quasi‐experiment

Research summary : This study examines whether companies employ corporate social responsibility (CSR) to improve employee engagement and mitigate adverse behavior at the workplace (e.g., shirking, absenteeism). We exploit plausibly exogenous changes in state unemployment insurance (UI) benefits from 1991 to 2013. Higher UI benefits reduce the cost of being unemployed and hence increase employees' incentives to engage in adverse behavior. We find that higher UI benefits are associated with higher engagement in employee‐related CSR. This finding suggests that companies use CSR as a strategic management tool—specifically, an employee governance tool—to increase employee engagement and counter the possibility of adverse behavior. We further examine plausible mechanisms underlying this relationship. Managerial summary : This study examines whether companies employ corporate social responsibility (CSR) to improve employee engagement and mitigate adverse behavior at the workplace (e.g., shirking, absenteeism). We find that companies react to increased risk of adverse behavior by strategically increasing their investment in employee‐related CSR (e.g., work‐life balance benefits, health and safety policies). Our findings have important managerial implications. In particular, they suggest that CSR may help companies motivate and engage their employees. Hence, companies dealing with employees that are unmotivated, regularly absent, or engage in other forms of adverse behavior, may find it worthwhile to design and implement effective CSR practices. Further, our findings suggest that CSR can be used as employee governance tool. Accordingly, managers could benefit from integrating CSR considerations into their strategic planning. Copyright © 2015 John Wiley & Sons, Ltd.     

When does guanxi bolster or damage firm profitability? The contingent effects of firm- and market-level characteristics

This paper advances that a nuanced approach is necessary to understand the effectiveness of managerial ties (guanxi) in improving firms' financial performance. We take a contingency approach to examine how the effects of managerial ties on performance may be moderated by firm-level factors (i.e., firm age and entrepreneurial orientation) and market-based forces (i.e., demand uncertainty and technological turbulence). Using a survey of 289 firms in China, we find that managerial ties are more salient with regard to enhancing performance for more entrepreneurial-oriented and younger firms. Managerial ties fail to provide performance benefits to firms when high demand uncertainty exists or when the level of technological turbulence is high, which suggests a performance limitation of established ties with government officials, buyers, suppliers, and competitors. The theoretical and managerial implications of the findings are further discussed.     

Cultural Competitiveness in Global Sourcing

This study integrates thought on entrepreneurship, innovation, and organizational learning and examines a framework of sustainable competitive advantage as it pertains to global sourcing. The study adopts a chain of customer perspective and focuses on entrepreneurship, innovativeness, and learning in an organization's long-linked chain of interrelationships within the global sourcing process. Using sourcing directors of 200 multinational corporations, entrepreneurship, innovativeness, and learning were found to function as first-order indicators of the second-order construct of sustainable competitive advantage (SCA). SCA, in turn, has a positive effect on cycle time of the global sourcing process and the organization's overall business performance.     

A service science framework to enhance value creation in service innovation projects. An RFID case study

This paper describes an IT-driven service innovation with an in-depth case study. The case study shows the different stages of RFID implementation in the jewellery supply chain of a retailer including all stakeholders. Based on a review of the literature on service engineering, information systems and management, we propose a framework to enhance IT-driven service innovation. Service science lacks procedures, methods and tools for developing new services. The main contributions of this paper lie in proposing a framework that supports service innovation in an IT-driven case. We illustrate our framework with an in-depth case study and infer lessons that can be useful to managers who wish to duplicate IT-driven service innovation for RFID technology. This framework includes both strategic and operational dimensions to help managers anticipate key challenges and pitfalls in service innovation projects.     

Success Factors for Service Innovation: A Meta‐Analysis

Service sectors form a considerable part of the world economy. Contrary to the logical assumption that service innovation research should represent a significant share of all innovation research, the vast majority of innovation studies focus on products as opposed to services. This research presents a meta‐analysis of the antecedents of service innovation performance conducted on 92 independent samples obtained from 114 articles published between 1989 and 2015. This research contributes to our understanding of service innovation in three major ways. First, this is the first meta‐analysis that specifically assesses the relative importance of antecedents of service innovation performance, while also pinpointing the differences in meta‐analytic findings between antecedents of service and product innovation performance. Although there are some universal success factors that transcend the boundaries between services and products, the presence of marked differences implies that it would be wrong to treat the development of new services and new products as the same. Second, the meta‐analysis demonstrates that the antecedents of service innovation performance are contingent on the sector context (i.e., explicit versus tacit services). Comparing results between products and services, and between tacit and explicit services, there appears to be a continuum where explicit services sit interstitial between tacit services on one side and products on the other. Third, the meta‐analysis compares and contrasts the antecedents of two dimensions of service innovation performance (i.e., commercial success and strategic competitive advantage). Previous meta‐analyses treated these two dependent variables collectively, which falls short of identifying issues that may affect management decisions when faced with different objectives. Additionally, this research investigates the effect of several other moderators (i.e., culture, unit of analysis, journal quality, and year of publication) on the relationships between the antecedents and service innovation performance. The results are discussed in relation to their implications for research and managerial practice.     

Agile Stage-Gate Management (ASGM) for physical products

We present a qualitative study of Agile Stage-Gate Management (ASGM),: a hybrid new product development methodology that combines Agile and Stage-Gate Management (SGM) approaches for the coordination of new product development. When applied to software projects, Agile is expected to deliver reduced development times, improved resource utilization, and greater financial success. We examine whether ASGM practitioners realize similar outcomes in a sample of global firms developing complex electro-mechanical products (e.g., automobile components, railway propulsion systems, and medical devices). Our grounded theory approach articulates an understanding of ASGM through extensive interviews of experienced professionals. Our thematic analysis supports many expected benefits (i.e., speed to market, innovation enabling), but also does not encourage others, and reveals new pitfalls that deserve recognition (i.e., resource inefficiency). ASGM is not a panacea for all product development. Overall, physical product firms adopting this method can expect reduced development times and higher levels of innovation but will expend more resources to complete development projects, but a dichotomy exists. Physical product developers using ASGM experience a negative impact on project resource efficiency due to the need for dedicated resources, frequent product demonstrations, and duplicative management structures.     

Managerial trust in new product development projects: its antecedents and consequences

This research examines the impacts of relationship-based antecedents (e.g., procedural justice) and character-based antecedents (e.g., transactional leadership) on managerial trust in new product development (NPD) teams. The moderating impact of environmental turbulence on team performance is also investigated. Using data from 107 NPD projects in Turkey, we find that procedural justice, distributive justice, and transformational leadership are significantly related, and conflict is negatively related to managerial trust. We also find that managerial trust is significantly related to product success and team learning under both high and low environmental conditions, but it is significantly related to speed-to-market only under high-turbulent conditions. We conclude by discussing the theoretical and managerial implications.     

An Organizational Learning Approach to Product Innovation

This article examines product innovation as an organizational learning process. It provides a framework allowing managers and scholars to relate product-innovation learning skills to organizational goals. Daryl McKee shows how different types of organizational learning skills are involved in incremental innovation, discontinuous innovation and institutionalization of innovation within the organization. This conceptualization can help scholars and managers diagnose an organization's learning skills and how they relate to new product management; direct the organization toward learning more efficient and effective product innovation; and provide scholars with a structure for future research.     

Making Virtue of Necessity: The Role of Team Climate for Innovation in Resource‐Constrained Innovation Projects

The effect of financial resource constraints on innovation team performance is ambiguous. On the one hand, the majority of scholars have argued that financial resource constraints have an inhibiting effect on innovation, whereas budgetary slack supports creativity and innovation. Consistent with this notion, in most conceptual models on the management of innovation projects, the availability of slack, or at least adequate (rather than constrained) resources represents an important success factor supporting innovation. On the other hand, popular parlance has it that sometimes “necessity is the mother of innovation,” and literature in cognitive psychology suggests that resource constraints stimulate creativity and innovative behavior. Recent innovation literature indeed provides evidence that remarkable innovation outcomes can be achieved with constrained financial resources. Despite the rapidly growing research on success factors of innovation projects, and the high managerial relevance of budget questions, the influence of financial resource constraints has only very recently started to attract interest. The objective of the present study is to contribute to that research by investigating under what conditions financial resource constraints lead to innovation outcomes. Specifically, team climate for innovation is examined as a potentially important contingency variable of the relationship between financial resource constraints and innovation project performance. By explicitly focusing on team climate for innovation, factors of the work environment in innovation projects are addressed as influential boundary conditions for successfully innovating under financial resource constraints. The hypotheses are tested on a sample of 94 innovation project teams from a variety of industries. To ensure content validity and to avoid a possible common source bias, data from different respondents, i.e., team leaders, team members, and team external managers of the innovation projects, are used. Results of regression analyses show that there is no significant relationship between financial resource constraints and innovation project outcomes in terms of product quality and project efficiency. However, results show a significant interaction term of financial resource constraints and team climate for innovation in that team climate for innovation positively moderates the relationship between financial resource constraints and product quality as well as project efficiency. Thus, the findings of the present study contradict the widespread notion in innovation literature that financial resource constraints have a wholesale inhibiting effect on innovation, thereby providing a differentiated perspective on the relationship between financial resource constraints and innovation. On a practical level, the results of this study highlight a specific condition under which product developers can come up with more innovative solutions despite, or even because of, financial resource constraints.     

The field of radical innovation: Making sense of organizational cultures and radical innovation

Organic organizational structures and cultures facilitate innovation because they allow organizations to shift their understanding of what a product, service or technology means. Yet, organic organizations may have to instill mechanistic structures and bureaucratic processes if they produce successful radical innovations. Thus, the basis of innovation can be undermined by its consequences. To explore this issue, this paper analyzes data from an ongoing longitudinal case study of a SME digital-design agency that developed a radical innovation for the market research industry. The paper observes that founders of the organization shifted their position to become managers as a result of their radical innovation and that other members of the organization have, consequently, re-evaluated their attitude toward the organization. To conceptualize our findings we turn to the work of Pierre Bourdieu. His notion of fields—which structure experiences and are, themselves, structured by experiences—offers a framework to understand the dynamics within an organization that occur as a result of a successful radical innovation. The contribution of our paper is: theoretically, we relate the discussion of innovation to wider social theories of practice and, thus, introduce temporal and cultural dynamics into the account of radical innovation; methodologically, we provide an example of a longitudinal study; and, in managerial terms, we indicate where divisions occur within an organization concerning the construction of meaning between managers and employees after a radical innovation.     

Social capital in the growth of science-and-technology-based SMEs

There is increasing evidence of the positive role social capital plays in accessing resources and capabilities from and with other actors, and in establishing and maintaining business relationships. Yet, surprisingly little is known about how an organization's social capital and its utilization evolve over time. Focusing on this gap, this paper explores the role of social capital and its structural, relational and cognitive dimensions in the growth of science-and-technology-based SMEs. On the basis of our studies on social capital, entrepreneurial networks and SME growth, we develop a conceptual framework to describe their development through four overlapping phases, each of which involves different managerial tasks: innovation assessment, offering development, commercialization and rapid growth. The results of our longitudinal multiple case studies show that; (i) different types of networks and relationships are important in the transitional periods between the growth phases; and (ii) the role of social capital and its different dimensions varies in developing, maintaining and utilizing these partnerships and network relationships. These findings offer several managerial implications.     

Differential effects of ERP systems on user outcomes—a longitudinal investigation

Adopting a model of job enrichment we report on a longitudinal case investigating the perceived impact of an Enterprise Resource Planning (ERP) system on user job design characteristics. Our results indicated that in the context of an ERP geared towards centralisation and standardisation the extent to which users perceived an increase or decrease in job enrichment was associated with aspects such as formal authority and the nature of their work role. Experienced operational employees proficient in the original legacy system perceived ERP system protocols to constrain their actions, limit training and increase dependence on others in the workflow. Conversely, managerial users reported a number of benefits relating to report availability, improved organisational transparency and increased overall job enrichment. These results supported our argument concerning the relationship between ERPs with a standardisation intent and positive job enrichment outcomes for managerial users and negative job‐related outcomes for operational users.