IMPACT ON FIRMS OF THE USE OF KNOWLEDGE EXTERNAL SOURCES: A SYSTEMATIC REVIEW OF THE LITERATURE

This study summarizes the main conclusions from a systematic review of the empirical literature regarding the impact on firms of the use of knowledge external sources (universities, research institutes and knowledge intensive business services). With the aim to organize the literature, we classify the different works according to the research question addressed: (i) which firms use knowledge external sources?; (ii) Do firms using knowledge external sources achieve better results?; And (iii) which firms benefit the most from using knowledge external sources? Stylized facts are that larger, more R&D intensive and high tech firms are more likely to use knowledge external sources and that use of knowledge external sources is associated to firms higher technical results. Less attention has been paid to the third question and evidence is not conclusive. Several recommendations for future research emerge. First, to take in greater consideration methodological issues so that potential biases in the results caused by sample selection and endogeneity are handled properly. Second, to pay more attention to heterogeneous outcomes. Third, to use continuous indicators of depth and breadth of links allowing for non‐linear relationships and fourth, to extend evidence for developing countries and service industries.     

A NEW VISION OF THE KNOWLEDGE ECONOMY

Abstract.  To date, more than half of the output in the major OECD countries has been knowledge based. This paper argues, however, that the current growth-oriented exposition of the knowledge economy rooted in the conventional concept of free competition is insufficient for promoting the long-term development of human societies. Although we now live in a knowledge economy, most countries have been concurrently characterized by serious phenomena such as environmental degradation and growing economic inequality. The prospect of meeting global commitments, for instance, to reducing inequality, as outlined in the 1995 World Summit for Social Development in Copenhagen and endorsed in the United Nations Millennium Declaration, is bleak and the global society as a whole has become less and less sustainable. Indeed, the world is better seen as composed of numerous (but finite) knowledge economies. To take up the challenge of sustainable development of human societies, we have to develop a pluralistic perspective of the knowledge economy and fully acknowledge the characteristics of each unique knowledge system (such as indigenous knowledge possessed by a small tribe). Once we can help each individual knowledge system develop into a specific set of economic institutions that freely exchange concepts and beliefs with each other in a global environment, we will be able to develop a global economy that embodies a value-committed basis that assures a sustainable path of development on earth.     

BIBLIOMETRIC ANALYSIS OF THE QUANTITATIVE METHODS APPLIED TO THE MEASUREMENT OF INDUSTRIAL CLUSTERS

Literature on methods for analysing interindustry interdependence and geographical concentration of firms began to multiply since the 1990s. The aim of this paper was to systematize the literature on methods and measures applied to the analysis of industrial clusters, as well as to identify trends in this knowledge field. The method used was bibliometrics, which consisted of a frequency evaluation of the publications and the relationship network between them. It was verified an exponential increase in the number of papers that composed this area, based mainly on the theories of New Economic Geography. Recently, the literature has focused on the geographic location in relation to interindustry linkages, and the frontier of knowledge has shifted from traditional methods of regional science to areas such as spatial statistics, econophysics and artificial intelligence. There are still relevant questions being explored, as Modifiable Area Unit Problem (aggregation bias), nevertheless, spatial anisotropy (directional bias) is still neglected and indicates a new research path.     

KNOWLEDGE AND THE THEORY OF ORGANIZATIONS: ORGANIZATIONS AS ACTIVITY SYSTEMS AND THE REFRAMING OF MANAGEMENT*

Recent developments in the theory of knowing and doing contrast with conventional rational-cognitive assumptions about management and organization. This, and the emphasis that is currently being placed on the importance of esoteric knowledge for business success, suggests that a review of the relationship between knowledge, organization and management is timely. Activity theory offers a way of synthesizing and developing relevant notions. the approach has its origins in Russian psychology which endeavoured to avoid the dichotomies between thought and action and between individuals and society which have characterized Western theory. Activity theory examines the nature of practical activities, their social origins, and the nature of the ‘activity systems’ within which people collaborate. Modifications to Engestrom's contemporary presentation of the approach are suggested, and a theory of organizations as activity systems is offered. the theory reframes management by modelling the recurrent and embedded nature of human activities, by revealing the tentative nature of knowledge and its action orientation, and by highlighting the opportunities for individual and collective development that engagement and dilemma can provide. the article concludes by reviewing implications for the management of knowledge work, organizational capabilities and organizational learning.     

THE EFFECT OF KNOWLEDGE ACCESSIBILITY ON INTERNATIONAL INCOME INEQUALITY

Using a structural model of new economic geography, we estimate the effect of accessibility to foreign knowledge on international income distribution. Whereas previous literature has mainly focused on the importance of geographical accessibility to foreign markets, this paper emphasizes the role of accessibility to foreign knowledge in determining international income inequality. Using cross-country data of income per worker, bilateral trade flows, and number of flight passengers, we find evidence that the accessibility to foreign knowledge raises per capita income significantly.     

USING WEB 2.0 TO SHARE KNOWLEDGE OF CONSTRUCTION SAFETY: THE FABLE OF ECONOMIC ANIMALS

Gone are the days when knowledge sharing depended solely on face‐to‐face meetings. With the help of Web 2.0, rapid and dynamic cross‐border knowledge sharing among construction safety researchers has become possible. Nevertheless, empirical observation has shown that researchers are falling behind the curve. Generally speaking, there are two major types of motivations: intrinsic and extrinsic. Introducing extrinsic motivators on top of intrinsic motivators can produce better results than relying solely on intrinsic motivation.     

DISCIPLINING THE PROFESSIONAL: THE CASE OF PROJECT MANAGEMENT*

Despite its rapid growth in recent years, Project Management has received very little critical attention, particularly when compared to the more ‘hyped’ managerial fashions such as TQM (cf. Wilkinson and Willmott, 1995 ) and BPR (cf. Grey and Mitev, 1995 ; Grint, 1994 ). My intention in this paper is to critically examine the ongoing construction of Project Management as a professional discipline in modern organizations. Drawing on an understanding of ‘discipline’ based in Foucauldian work, I will briefly trace the historical construction of Project Management as a form of managerial knowledge, outlining the key models and techniques which make up contemporary Project Management. Through an empirical study of the articulation and reproduction of Project Management within two Financial Services institutions, the everyday construction of Project Management as an ‘objective’ and ‘abstract’ body of knowledge will be described. I then contrast this with the embodied and power‐laden operation of Project Management, with disciplinary effects not only on those employees whose work is restructured in line with Project Management principles but equally upon self‐professed Project Management professionals themselves.     

THE INTERSUBJECTIVITY OF ISSUES AND ISSUES OF INTERSUBJECTIVITY

This paper describes research concerned with assisting groups in organizations handle their complex, ill-structured policy issues in ways which we believe are significantly different from many typical policy analysis projects. It is our belief that many systems research, operational research and management science projects have concentrated on 'objective', usually quantitative data at the expense of losing their clients' interest and commitment. Our work is concerned with taking account of intersubjectivity in policy analysis and evaluation. It is orientated to the construction of models that will be owned by our clients because they recognize as legitimate, and explicitly take account of, the subjective and particular knowledge of individuals within organizations. They also explicitly take account of the interaction of shared and individual knowledge as a group comes to define an intersubjective group issue.     

THE APPLICABILITY OF THE TRADITIONAL THEORY OF ECONOMIC POLICY

Abstract. The traditional theory of economic policy requires targets, instruments, an empirical economic model, and a social welfare or criterion function to be specified in order to derive the optimal economic policy. Empirical studies of reaction functions suggest that economic policy is carried out in some systematic manner, subject to interference from political factors. This survey addresses the problems of specifying, estimating and applying an economic model when economic policy is following a path specified by a reaction function. Attention is paid to rational expectations, the Lucas'critique, and the policy neutrality proposition. Lack of knowledge of the policy maker's objective function poses the most serious difficulty when applying the theory of economic policy. Various methods of determining this function are reviewed, and the possibility that policy makers might be satisficing is discussed. The role played by political factors is considered in the light of the public choice literature.     

A TIP OF THE ICEBERG? THE PROBABILITY OF CATCHING CARTELS

Reliable estimates of crime detection probabilities could help in designing better sanctions and improve our understanding of the efficiency of law enforcement. For cartels, we only have limited knowledge on the rate at which these illegal practices are discovered. In comparison to previous works, this paper offers a more parsimonious and simple‐to‐use method to estimate time‐dependent cartel discovery rates, while allowing for heterogeneity across firms. It draws on capture–recapture methods that are frequently used in ecology to make inferences on various wildlife population characteristics. An application of this method provides evidence that less than a fifth of cartelising firms are discovered. Copyright © 2013 John Wiley & Sons, Ltd.     

THE STATUS RANKING OF INDUSTRIES

This paper is concerned to establish the status ranking of ten different sectors of manufacturing and non-manufacturing industry through analysis of the background and education of managers in these sectors. The ranking is then given confirmation by salary data. It is suggested that this ranking is based on differences between industries in science and technology, with corresponding differences in knowledge and skill needs and thus in the meaning of ‘management’, in sources of managerial recruitment, and in qualifications and requirements for education and training.     

RESEARCH ON THE MOTION PICTURE INDUSTRY: STATE OF THE ART AND NEW DIRECTIONS OFF THE BEATEN TRACK AWAY FROM THEATRICAL RELEASE

The motion picture industry has been subject of extensive academic research over the last decades. However, most scholars focused on the U.S. theatrical motion picture market. The number of research activities regarding even more profitable release windows, such as home video or television, has been substantially lower. Although international distribution is essential for a motion picture project to break even, there has been little significant re-search on most other markets. This paper aims at summarizing the current state of research on the motion picture industry, particularly from marketing and management perspective, revealing research gaps, and proposing recommendations for future research endeavors. Therefore, a three-pillar scheme is developed to systemize previous findings: Research on intraorganizational decision making, contractual relationships between national stakeholders, and international market competition are differentiated. Since these insights are mainly derived from U.S. theatrical exhibition, they can hardly be applied to other markets and exhibition windows. Thus, potential research areas are identified to expand knowledge of posttheatrical and international markets.     

THE ECONOMIC SCIENCE FICTION OF CLIMATE CHANGE: A FREE‐MARKET PERSPECTIVE ON THE STERN REVIEW AND THE IPCC

The Stern Review and the IPCC believe that anthropogenic climate change is a serious global threat and demands an urgent response. Examining the IPCC's projections of future climate change and Stern's estimates of its costs from a free‐market perspective shows that they are based on flawed methodological assumptions and reflect an excessively optimistic approach to knowledge of the future. The foundations of reliable knowledge for a sound policy framework have not been put in place.     

THE DYNAMICS OF INTERACTION BETWEEN INDUSTRY AND POLITICS. THE INTRODUCTION OF ECOTAXES IN BELGIUM

In 1993 the Belgian Government introduced product charges on drink containers, batteries, certain industrial packaging, paper and disposable razors and cameras. Simultaneously, an expert commission was installed to follow up the implementation process and to propose new ecotaxes. Because the preparation of the law was not well done and only limited knowledge and experience existed, the implementation encountered serious difficulties. The commission revised the law in a global and systematic way in co-operation with the actors involved: industry, environmentalists and the administration. The methodology that was followed is explained and some important conclusions with respect to the interaction between business, politics and science considered. There is a great gap between textbook theory and the realities of the implementation process.     

THE DERIVATION OF A SKILLS AND KNOWLEDGE INVENTORY

Barbara Young, who is Director of Short Courses in the Department of Civil Engineering and Construction at the University of Salford, shows how it is possible to develop an inventory of management skills and knowledge using a factor analysis approach. The example is taken from the construction industry, but the approach can very easily be applied in other industries.     

OPEN KNOWLEDGE DISCLOSURE: AN OVERVIEW OF THE EVIDENCE AND ECONOMIC MOTIVATIONS

Abstract.  This paper reviews current literature on open knowledge disclosure strategies used by firms. It is usually acknowledged that for an innovative firm that does not benefit from a natural protection (such as lead time advance) the best strategy is to keep an innovation secret as long as possible or to protect it through an exclusive patent. However, in apparent contrast to this traditional view, many studies suggest that firms often disclose important parts of their knowledge through scientific publications, conferences, the Internet, etc. This paper aims to provide an overview first of the evidence supporting the existence of open knowledge disclosure and second of the economic motivations that encourage rational, profit seeking firms to adopt these behaviours.     

THE DETERMINANTS OF RESEARCH GROUP PERFORMANCE: TOWARDS MODE 2?*

This paper explores the determinants of performance of research groups in the context of the emergence of knowledge as a key intangible asset. It focuses specifically on how best to configure knowledge producers for optimal effectiveness in the current research environment. It explores the under‐researched area of the organization and management of research groups located in and at the interface of university research and focuses on medical and medical‐related research groups. The discussion is embedded within the current debate concerning modes of organization in knowledge production. Factors identified with high‐achievement are: strong leadership; finding, motivating and retaining talent; strategies of related diversification; strongly linked theory and practice and, in particular, network connectedness. Such groups exhibit an increasingly complex internal environment, facilitating a flexible response to an increasingly complex external environment. It finds evidence of Mode 2 working, with increasing use of collaborative strategies and some evidence of a thematic emphasis emerging, although to a lesser extent than the literature suggests, since participants are still working from a strongly disciplinary base. Driven by the more competitive environment, both intellectual and commercial forms of entrepreneurship are present. At the hub of this complex web of inter‐related factors is network connectedness, which proves to be centrally facilitative in mobilizing the other necessary resources.     

THE KNOWLEDGE INHERITANCE THEORY OF DISTRIBUTIVE JUSTICE

This article criticises the 'knowledge inheritance theory of distributive justice' presented by Gar Alperovitz and Lew Daly in their Unjust Deserts: How the Rich Are Taking Our Common Inheritance and Why We Should Take It Back; Wealth and Inequality in the Knowledge Economy (New York: The New Press, 2008). The authors claim that since innovation depends far more on accumulated knowledge than on any individual's contribution, most resulting wealth is deserved equally by all members of society. Their redistributive conclusion is not justified. Illegitimately applying the concept of justice to contexts where it is at best metaphorical, the 'knowledge inheritance theory' massively undervalues the role of individual intellectual activity, and relies on confusions concerning the nature of society, rights, causality, and gifts.     

THE NEED FOR MIDDLE-OUT DEVELOPMENT OF MARKETING STRATEGY

The current tendency to move decision making closer to those concerned with implementing decisions in order to make use of their local market and customer knowledge is timely, particularly in relation to marketing strategy. This tendency is reflected both in the shift away from broad strategic analysis and towards encouraging strategic thinking throughout the organization; and in the emergence of more decentralized strategy development through structural innovations such as Strategic Business Units. For the manager-in-the-middle who has historically had the task of relating the broad corporate strategies to the detail of delivering products and services to the customer, this shift in emphasis creates new stresses, for it is not possible for him to assume, even in the most established consumer goods companies, that the strategic development of such activities can be construed within the traditional marketing mix (4Ps) framework. Under such circumstances, he needs a framework which enables him to take account of the crucial interactions going on within the market's infrastructure itself between customers, competition and channels (3Cs). If the manager-in-the-middle is then to be effective in responding to his increasingly complex responsibilities in relation to such markets, he must also be given the ability to manage the micro-organizational context within which he delivers products and services. This micro-organizational context is crucial because it determines the quality of the relationship that can be sustained with the customer. The higher the quality of the relationship, the tighter the coupling that can be maintained with the local market. Such tight coupling makes the relationship with the customer more defensible against competition. It therefore provides the basis for sustaining and developing the profitability of value-adding products and services so necessary to long term corporate survival.