Local industrial structure,agglomeration economies and the creation of innovative start-ups: evidence from the Italian case

We explore the local factors associated with the emergence of innovative start-ups fostered by a targeted industrial policy intervention in Italy. We focus on the local industrial fabric and the agglomeration mechanisms, namely localization (specialization) economies, diversification economies and the proximity to large firms. Results show that both localization economies and diversification economies are at play. Notably, a greater presence of large firms at local level seems to support the creation of innovative start-ups. Other factors, such us the presence of technical and scientific universities and the urbanization, are found to encourage their formation. The contribution of local factors to the innovative start-up creation is found to be different depending on the regional development conditions. Our analysis outlines the features of a local ecosystem favourable to the emergence of these firms, providing policy makers with suggestions for moulding industrial policies to regional specific needs and to better exploit the local opportunities.     

Managing knowledge through human resource practices: empirical examination on the Spanish automotive industry

This paper considers the relationship between human resource management (HRM) and knowledge management (KM). Specifically, it examines how the human resource (HR) practices that are expected to impact on employees’ abilities, motivation, and opportunity to engage in KM, do so by enabling knowledge sharing, knowledge maintaining, and knowledge creation within organizations. HRM expected to impact employees’ abilities include training and development practices. HRM expected to impact on employees’ motivation include rewards and appraisal practices. HRM expected to impact on employees’ opportunities including providing the support of trusting collaborative relationships. Therefore, HR practices impacting employees’ abilities, motivation, and opportunities are expected to be positively related to knowledge sharing and maintaining within organizations. HR practices impacting employees’ abilities, motivation, and opportunity are expected to be positively related to knowledge creation through their effect on knowledge sharing within organizations. Our research methodology uses a questionnaire survey approach to collect data from firms belonging to the Spanish automotive industry. Results from a final sample of 64 Spanish automotive firms show that HR practices aimed at motivating and giving employees the opportunity to behave as expected significantly affect knowledge sharing and maintaining. Further, knowledge sharing and maintaining is shown to mediate the relationship between HR practices and knowledge creation. The paper ends with a conclusion, limitations and implications for future research.     

New firm creation and innovation: industrial patterns and inter-sectoral linkages

This article analyzes the linkages between entrepreneurship and innovation behaviour at an industrial level. The research question refers to the extent that the industrial pattern of generation/absorption of knowledge affects the industrial ability to create new firms. An embodied knowledge approach has been applied, by combining the input–output framework with innovation and new firm creation data. As a result, four industrial patterns of innovation/new firm creation have been identified, taking into account the firm size and the model of generation and absorption of knowledge.     

Preparing for distant collaboration: Antecedents to potential absorptive capacity in cross-industry innovation

Cross-industry innovation entails distinctive innovation opportunities and challenges according to the knowledge heterogeneity between the collaborating firms. This heterogeneity yields increases in organizational-level cognitive distance. Whereas recent theory suggests cognitive distance is positively related to exploratory innovation, too much distance can hinder efficient knowledge absorption and results in a reduced effect on novelty value. This paper focuses on the research question of how to build potential absorptive capacity for distant collaboration beyond established industry boundaries to gain radical rather than incremental results. To address this question, we mapped a cross-industry network using survey data on 215 bilateral cross-industry collaborations between firms from a variety of industries and captured cognitive proximity (the inverse of distance) in terms of overall knowledge redundancy between firms. This approach introduces a new method to infer organizational-level cognitive distance from network analysis. Subsequently, based on results from the network analysis, we examined coordination antecedents to potential absorptive capacity for cross-industry innovation with partners at moderate and high distance applying case study analysis. Our study revealed three alternative approaches to coordination antecedents that drive a firm?s potential absorptive capacity for distant collaboration. These findings extend research on absorptive capacity to the field of cross-industry innovation.     

A new editorial order in entrepreneurship & regional development

The aim of this paper is to contribute to international entrepreneurship theory by adopting a foreign market perspective when examining the links between network development and knowledge creation. Network development is argued to enhance the understanding of regional market structures and make firms more inclined ? and better able ? to create knowledge in foreign market business relationships (business relationships represent focal points in networks). The basis of this argument is that networks provide a multitude of opportunities for the exploitation of previously unexploited combinations of knowledge. Data were gathered from surveys conducted with an effective random sample of 188 small and medium-sized enterprises (SMEs) in Sweden. A LISREL-based analysis was performed to test the three hypotheses deduced from theory. Findings showed that network development has a direct positive impact on knowledge creation and that knowledge combination functions as a mediating construct between network development and knowledge creation.     

A tale of two clusters: knowledge and emergence

Cluster emergence is an important topic but weakly conceptualized in the literature. Focusing on the interaction of the local knowledge pool and firm growth, the paper develops a comprehensive framework to understand cluster emergence. In the framework, the cluster formation process starts with the collision of local and external knowledge which generates an innovation and stimulates the creation of local pioneering firms in a new field. To support the growth of follow-up entrants in the new industry, the local knowledge pool needs to be expanded and deepened through local knowledge sharing and external knowledge inflows. The enlarged local knowledge pool enables local firms to grow and explore other fields further. To promote cluster emergence, public policies need to facilitate the interaction of the local knowledge pool and firm growth. The paper illustrates the interactive framework with two aluminum extrusion clusters in China that emerged in different ways over different time periods.     

The impact of technological relatedness, prior ties, and geographical distance on university-industry collaborations: A joint-patent analysis

Empirical studies on R&D collaborations between universities and firms have mainly centered their attention on universities and firms' characteristics that favor the establishment of collaborative agreements. In this paper, I extend the current research framework investigating the role that specific technological and relational attributes may play on the relevance of such collaborations. Specifically, I focus on the effects exerted by three relevant factors, namely technological relatedness, prior collaboration ties, and geographical distance, on university-industry joint innovation value. I develop testable hypotheses about their impact on the innovative performance of R&D university-industry collaborations, and test them on a sample of 796 university-industry joint patents, developed by 33 universities located in 12 different European countries. Our results suggest that partners' technological relatedness has an inverted U-shaped relationship with innovation value. In addition, prior ties and geographical distance between universities and firms are both positively related to the achievement of higher innovative outcomes.     

Absorptive Capacity,Research Output Sharing,and Research Output Capture in University-Industry Partnerships

At present, we have a very limited understanding of how the differences in partner absorptive capacity affect the distribution of innovative outcomes obtained in research-intensive collaborative projects. The current paper addresses this shortcoming by examining how firms and universities maintain the balance between the research output sharing and research output capture modes in their research partnerships. Through introducing a concept of the absorptive capacity gap, this study highlights the role of the relative/comparative dimensions of partner absorptive capacity in establishing the balance between relinquishing and taking control of the marketable innovative results achieved in university-industry collaborative projects. It offers a conceptual framework describing the joint impact of relative absorptive capacity and the absorptive capacity gap on the research output sharing/capture balance in university-industry collaboration. It also explores the potential shifts in this balance stemming from the influence of relationship-specific factors, such as mutual trust, positive prior ties, cognitive proximity, and cultural compatibility between the firms and universities. It concludes with theoretical and practical implications of the proposed framework for enhancing the knowledge-creating potential in university-industry collaboration.     

Counteracting innovative constraints: insights from four case studies of African knowledge-intensive metalworking and automotive clusters – ‘the Akimacs’

We respond to repeated calls over the years to further develop cluster theory specifically in an African context. Our contribution is to construct a framework which integrates theories focusing on path dependency, transaction cost economics (efficiency and systemic interdependency models) and regional development (lock in models). Our focus is on the innovativeness of African clusters and constraints on such innovation. Thus, drawing on cluster literature on constraints to innovation coupled with insights from current empirical work within African automotive clusters, we examine the challenges of counteracting the multilevel constraints which hinder innovation in African clusters. We develop a model for counteracting cluster constraints focusing on the impact of variations in innovative frequency, diffusion of innovations, innovative speed and protection of innovation. The model emphasizes the opportunities that arise when new entrant and incumbent firms interact to neutralize constraints at transactional, social, ecological and knowledge levels.     

Entrepreneurial by Design: How Organizational Design Affects Family and Non‐family Firms’ Opportunity Exploitation

Opportunity exploitation is a key aspect of the corporate entrepreneurship process and is particularly important to maintain a family firm through multiple generations. Drawing on an organizational design perspective, we investigate opportunity exploitation in family versus non‐family firms. The empirical analyses on survey data from a sample of 224 Italian firms reveal that family firms exploit significantly fewer opportunities than non‐family firms, and this result is fully mediated by the organization of their TMT. Our findings show that how family firms organize is crucial for opportunity exploitation, thus extending and enriching prior corporate entrepreneurship research, highlighting the importance of bringing an organizational design perspective to corporate entrepreneurship and family business studies.     

Knowledge Networks and Careers: Academic Scientists in Industry–University Links*

abstract Careers are central to our understanding of the knowledge creation dynamics of network organizations. Based on the example of R&D project collaboration between firms and universities, this paper examines the emerging forms of career models that support knowledge flows between organizations. It explores how some large firms in the high‐technology sectors have sought to break away from the limitations of internal R&D and firm‐based careers for scientists by engaging in external collaborative projects to gain access to the open knowledge networks of university researchers. It examines how the firms seek to forge close institutional ties with their university partners and develop network career structures in order to engage academic scientists in joint knowledge production. It argues that firms have sought to extend their human resource and knowledge boundaries into the established internal labour markets of the universities with which they collaborate, leading to the formation of a pool of joint human resources with work experiences and career patterns straddling the two sectors. The paper develops the concept of an ‘overlapping internal labour market’ to provide a conceptual bridge between internal labour markets and network organizations.     

Improving SME competitiveness reinforcing interorganisational networks in industrial clusters

Drawing on a social network approach this paper proposes a methodology that helps with the empowerment and development of interorganisational networks in clusters. Paper emphasises the necessity of establishing relationships with other firms and external agents in order to empower the creation and diffusion of knowledge, through factors such as innovation. The aim of the proposed methodology is to know how required knowledge should be located and diffused to identify the opportunities motivating the creation of particular interorganisational networks. Similarly, it is also important to know how to determine which agents might to take advantage of these opportunities creating networks.     

Italian industrial districts as cognitive systems: Are they still reproducible?

Adopting a knowledge-based perspective, this study develops a framework of how Italian industrial districts (IDs) operate and evolve as cognitive systems. First, we analyse the mechanisms that facilitate knowledge diffusion across firms within IDs, the enabler of cross-firm knowledge transfer (absorptive capacity) and the process of producing new knowledge by combination. Within this analysis, we consider the formation of new firms resulting from the break-away of human resources from existing district firms (spin-offs) as a particular form of knowledge transfer and production within districts. Knowledge production by combination may take place not only within boundaries of IDs, but also involve external sources. We suggest that innovations made by combining internal and external knowledge have played an important role in shaping the evolutionary trajectories of IDs. Finally, again from the cognitive perspective, we address the issue of how globalization impacts on district systems, concentrating on the positive role that two different types of local actors play in their reproduction and evolution: the global–local firms and institutions providing knowledge-intensive business services.     

Sustainable corporate entrepreneurship

Corporate entrepreneurship has, for a number of decades, been viewed as one approach for generating growth through new product, process, market, or strategy innovation. More recently, and largely in response to rising costs and stakeholder concerns, managers have begun to pay increasing attention to issues of sustainability and corporate social responsibility. This paper demonstrates how sustainability can be embedded into a corporate entrepreneurship framework. In addition, managers who embrace sustainability principles are providing a stimulus for corporate entrepreneurship that may result in the discovery or creation, assessment, and exploitation of entrepreneurial opportunities, an enhanced reputation, and, ultimately, a competitive advantage.     

Capabilities that enhance outcomes of an episodic supply chain collaboration

Firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve supply chain performance. This research examines two capabilities that enable firms to collaborate successfully as a means to combine knowledge and expertise in an episodic collaboration initiative. Building from two theoretical foundations, the knowledge-based and relational views of the firm, we examine the effects of absorptive capacity and collaborative process competence on the outcomes of an episodic collaboration initiative. Using structural equation modeling, we empirically validate the positive effect of absorptive capacity, collaborative process competence and level of engagement on the operational and relational success of a collaboration effort. Results show that collaborative process competence mediates the relationship between absorptive capacity and collaborative engagement, and positively influences both operational and relational outcomes. Finally, we offer suggestions for managers to improve the effectiveness of inter-firm collaboration initiatives and discuss future research opportunities.     

Strategic alliances: managing complementarity to capitalize on emerging technologies

There are many different ways for firms to enter emerging industries and many possible patterns of rivalry within such industries. Although the literature gives prominence to the pioneering role of small start-ups, the fact is that large firms have often tried to pioneer new industries, by leveraging on the achievements of their central research facilities. Some firms have sought an organizational complement to progressiveness in the R&D lab. This complement is the internal venture. However, internal ventures pose the difficulty of internal diversity. Strategic alliances, on the other hand, permit the firm to exploit new technologies in new industries with a minimum of internal diversity. They have the benefit of speedy access to technology or to market expertise, minimizing risk and financial exposure, and providing a greater focus when bringing resources to bear on innovation. Strategic alliances provide alternatives for collaboration between firms with minimal contamination of the pioneering and entrepreneurial spirit of new technology-based firms.     

Social business collaboration at the bottom of the pyramid: The case of orchestration

Social business orchestrators (SBOs) help social businesses of various sizes to tackle major societal issues by filling gaps in knowledge and resources. However, research has overlooked these types of collaboration. Situated within a bottom of the pyramid context in Bangladesh, the current study sheds light on the process of value creation for SBO–social businesses partnerships by comparing different collaboration partners. Multiple case study research through the lens of the relational view were used to ask how SBOs facilitate value creation in social businesses by flexibly adapting resource inputs and governance mechanisms to the specific endowment and size of partners; this approach was informed by interviews and field note analyses. The combined deductive–inductive analysis enhances knowledge of idiosyncrasies of SBO–social business collaborations. Our study draws attention to the role of large orchestrators, whose model could be scaled and transferred to other world regions, including industrialised countries.     

Learning Through Joint Ventures: A Framework Of Knowledge Acquisition

Joint ventures (JVs) are becoming an increasingly important organizational form in international business. When JVs are formed, valuable learning opportunities may be created for the venture partners. The primary objective in this paper is to explore the conditions under which firms exploit JV learning opportunities through the acquisition of knowledge. A framework of knowledge acquisition by JV partner firms is proposed. Using JV partner organizations as the primary level of analysis, the paper identifies various factors that influence the acquisition of learning, its value to the learning organization, and the migration of knowledge from the JV to the parent. Two firm specific learning-based concepts are developed: alliance knowledge accessibility and knowledge acquisition effectiveness.     

Organizational interfaces and innovation: The challenge of integrating supplier knowledge in LEGO systems

Suppliers have become increasingly important as partners in firms' innovation efforts. Reaping potential collaboration benefits is complex due to challenges in combining internal and external knowledge. The paper explores how various types of organizational interfaces between buyer and supplier create both opportunities and problems for their joint actions. The paper is based on a longitudinal case study of attempts to develop an innovative packaging solution for the toy manufacturer LEGO systems. The study shows that buying firms need to carefully analyse what form of organizational interface access to prioritize since each type offers its specific possibilities and drawbacks. Furthermore, the feasibility of organizational interfaces may change over time due to mutual organizational learning.     

Surviving on the Margins of the Economy: Working Relationships in Small,Low‐Wage Firms*

abstract How do small low‐wage firms continue to survive on the margins of a modern economy? Continuous restructuring provides a set of spaces but what sorts of firm occupy them and how far do these firms exercise active choice? Four research projects, embracing data on 123 firms, have offered empirical analysis. The present paper draws together these projects and derives an analytical framework linking the product and labour market contexts of small firms with their family context. Survival reflects the continued supply of labour through kinship networks and the ability of firms to respond actively to product market opportunities. The value of the framework for small‐firm research generally is illustrated through discussion of further lines of inquiry.