Formal versus informal knowledge networks in R&D: a case study using social network analysis

The existence of informal social networks within organizations has long been recognized as important and the unique working relationships among scientific and technical personnel have been well documented by both academics and practitioners. The growing interest in knowledge management practices has led to increased attention being paid to social network analysis as a tool for mapping the nature and membership of informal networks. However, despite the knowledge-intensive nature of research and development (R&D) activities, social network analyses of the R&D function remain relatively rare. This paper discusses the role of informal networks in the development, exchange and dissemination of knowledge within the R&D function. A case study using social network analysis is used to compare and contrast formal and informal knowledge networks within ICI. Marked differences between the informal organization and ICI's formal structures for knowledge exchange are revealed and a series of insights into the working habits of technical staff are presented. The implications for managers are clear: through a better understanding of the informal organization of R&D staff, they can more successfully capture and exploit new ideas; more efficiently disseminate information throughout the function; and more effectively understand the working habits and activities of employees.     

R&D subsidiary isolation in knowledge-intensive industries: evidence from Austria

We investigate R&D subsidiary isolation within Multinational Corporations (MNCs) competing in knowledge-intensive industries. For such MNCs, accessing knowledge and nurturing the innovative potential of R&D subsidiaries is vital for on-going competitiveness. This, according to conventional thinking, requires integration of the subsidiary within the host country as well as internally within the MNC. Recent studies have shown, however, that overseas subsidiaries can become isolated (i.e., losing requisite integration), even in high-technology sectors. We tackle this issue by focusing on organizational factors at corporate and subsidiary levels that have the potential to explain subsidiary isolation. We analyze a sample of 45 foreign-owned Austrian subsidiaries undertaking R&D in knowledge-intensive industries using a combination of questionnaire and secondary data. The results suggest that parent and subsidiary experience, the degree of early-stage research conducted by the subsidiary and the use of training and rotation practices by the subsidiary, all act to counter isolation. Interestingly, we find that proximity between parent and R&D subsidiary does not play a significant role in predicting isolation. We also show how these factors influence communication frequency between the R&D subsidiary and various actors within the internal and the external networks in different ways.     

Career orientations of R&D professionals in Korea

This study empirically examined the relationships between career orientations of R&D professionals in Korea and other personal characteristics such as demographic factors, work-related outcomes, and reward preferences. The results, based on the survey about 1,240 technical people in 15 R&D organizations, revealed five distinctive and independent career orientations: technical, manager, project, technical transfer, and entrepreneurial orientations. The career orientations of R&D professionals are found to be different between private and public sectors and to be associated with their education level and organizational tenure. It is also observed that R&D professionals with different career orientations exhibit different work-related outcomes and reward preferences. For instance, technical-oriented professionals tend to be more educated, to exhibit better job attitudes and technical performances, and to favor professional rewards. While those with manager and transfer orientations are longer-tenured, have more positive job attitudes but lower technical performances, and prefer social status and prestige and career rewards in their organization. Both project- and entrepreneur-oriented professionals exhibit a less positive attitude toward their organizations, but seek different reward schemes: the former pursues challenging R&D projects with autonomy and the latter favors financial returns. Finally, the implications of these findings for managing careers of R&D professionals are discussed.     

Relative absorptive capacity and interorganizational learning

Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the firm-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical–biotechnology R&D alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. © 1998 John Wiley & Sons, Ltd.     

Knowledge sharing mechanisms in industrial research

Previous research has firmly established the importance of knowledge sharing in Research and Development (R&D) settings. However, current theories provide only fragmented insights into the origination of knowledge sharing, and thus offer limited guidance for knowledge management practices in R&D. To integrate and extend these fragmented insights, we undertook two exploratory field studies of knowledge sharing in industrial research organizations. The contributions of this study are the following. First, we introduce three dimensions that differentiate origination mechanisms for knowledge sharing. Second, we show that some of these mechanisms correspond to mechanisms assumed in particular streams of literature, whereas others have been neglected till now. Third, based on our field studies, we show that each of these knowledge-sharing mechanisms have a different value for industrial research practices. Therefore, knowledge management in R&D should facilitate and stimulate a broad portfolio of knowledge-sharing mechanisms.     

Managing and reporting intangible assets in research technology organisations

In the last couple of years, new instruments and methods for measuring, valuing and managing different forms of intangible assets have been proposed. Firms started to implement comprehensive management techniques to identify and value different forms of intangible assets based on an integrative framework, incorporating different forms of intangible assets such as R&D and human capital. Research Technology Organisations (RTOs) present an interesting case for studying different forms of intangible assets, their interdependencies and their impact on outputs. The main business of these organisations is R&D; thus, nearly all forms of investments are related to the R&D process. Their outputs are knowledge-intensive products, services and public goods with the aim of improving the innovation output of their various customers. Some European RTOs have started to introduce new instruments for measuring and managing their intangible assets more explicitly. The paper investigates the general background, a specific model and empirical experiences of an Austrian RTO, which introduced an intellectual capital management system.     

Pursuing opportunities in distance: the determinants of overseas R&D by Chinese multinationals

This study investigates two relevant dimensions of institutional distance – knowledge and economic distance – that influence the overseas research and development (R&D) intensity of emerging market multinational enterprises. We undertake a longitudinal analysis of 121 listed Chinese manufacturing multinational enterprises for the period 2011–2016. The results reveal that the enterprises' overseas R&D is more intense in host countries with greater knowledge and economic distance. Moreover, as the strength of intellectual property rights protection in host countries grows, the positive effects of knowledge and economic distance on the enterprises' overseas R&D intensity become weaker. We also find that political ties with home country governments strengthen the positive relationship between knowledge distance and the enterprises' overseas R&D intensity, while its moderating effect on the relationship between economic distance and overseas R&D intensity is insignificant.     

Experience matters: The role of academic scientist mobility for industrial innovation

Research Summary: A learning‐by‐hiring approach is used to scrutinize scientists' mobility in relation to the recruiting firms' subsequent innovation output. Our starting point is that among firm hires, individuals with university research experience—hired from universities or firms—can be particularly valuable. However, conflicting institutional logics between academia and industry makes working with academic scientists challenging at times for firms. We suggest two solutions to this difficulty: hiring “ambidextrous” individuals with a mix of experience of university research and working for a technologically advanced firm, and a strong organizational research culture in the recruiting firm reflected by the presence of a scientist on the top management team. We track the mobility of R&D workers empirically using patent and linked employer‐employee data. Managerial Summary: An important way to make organizations more innovative is hiring individual researchers with the right types of skills and experience. We show that individuals with university research experience beyond their final degree are particularly likely to help boost firm‐level innovation output after hiring compared to R&D workers with other types of skills and experience. However, to obtain good returns to innovation from hiring such individuals, firms need a university research–friendly organizational culture when hiring individuals with university research experience, from either firms or academia.     

Knowledge management capabilities in R&D: a UK‐‐Japan company comparison

This paper uses a 'knowledge‐based' approach to compare the management of R&D in two leading chemicals companies, one British (ICI plc) and one Japanese. It describes key differences in the ways they integrate the 'near‐market' knowledge of business units and the scientific knowledge and technical expertise of R&D personnel in central R&D facilities. It shows that the same management practices that underpin superior 'integrative capabilities' in the Japanese firm, including central funding of R&D, job‐rotation and career structures and multidisciplinary project teams, also result in significant R&D weaknesses. The comparison demonstrates that different organisational mechanisms are needed to support (1) the development and (2) the leveraging of specialist knowledge within different innovation contexts . Firms must be able to strike a balance between integrative and specialist capabilities to get the most from their R&D. Moreover, the above characteristics which underpin these capabilities are often 'embedded' in the broader organisation making them difficult to emulate when they represent 'best‐practice' but also making them difficult to change in response to new threats and opportunities.     

Assessing the impact of university interactions on an R&D organization

Large R&D organizations of firms operating in rapidly changing environments invest sizeable amounts to acquire knowledge through interactions with universities. The impact of these interactions on R&D organizations has received little attention in the literature. In this paper we propose a framework for evaluating the firm's investment in universities and in internal university interaction programs. The framework is comprised of three elements: objectives, relevant collectivity and structure. Objectives for the interaction are linked to the specific objectives of the R&D organisation. Individuals in the firm engaged in activities leading to the acquisition, assimilation and commercial exploitation which can potentially benefit from the new knowledge define the collectivity of interest. Structure is specified in terms of five components: network of relationships, technological guideposts, coordination arrangements, distribution of power, and shared beliefs and norms. Use of the framework is illustrated with four examples.     

University – industry collaboration in R&D: the role of labor market rigidity

We investigate how R&D university – industry collaboration (R&D UIC) is influenced by labor market rigidity. While it is well-established that an educated and skilled workforce will facilitate R&D UIC, another aspect of these alliances has been under-researched: the role of labor market rigidity, in particular the difficulties employers face in hiring and firing workers. We hypothesize that the size of the R&D labor pool in a country will encourage R&D UIC, and that the ease with which employers are legally allowed to hire and fire will directly and indirectly influence R&D UIC. Integrating data from various sources, we test our model on a sample of 73 countries for which information on the size of the R&D labor pool and labor market regulations are available. We also conduct a robustness test using a different proxy for R&D labor pool on a larger sample of 109 countries. Results confirm the strong link between a country's R&D labor pool and R&D UIC, as well as direct negative impacts of hiring and firing rigidity and an indirect negative impact of hiring rigidity. The findings have implications for managers, policy makers, and researchers of R&D collaboration between universities and industry.     

The link between managerial style and the job characteristics of R&D professionals

Despite a growing body of evidence as to the importance of linking job design to supervisory practices, almost no empirical studies have been conducted on the issue specifically for R&D professionals. The effectiveness of supervisors should differ primarily with respect to their leadership styles. Data obtained from three major types of R&D organizations in Taiwan were used to examine how leadership styles affect the job characteristics of R&D professionals with personal attributes of professionals themselves as the concomitant variables. The leadership styles were defined in terms of a two dimensional construct with the supportive dimension focusing on enhancing relationship and participatory decision making, and the directive dimension emphasizing telling and directing to get tasks accomplished. The results supported most of the hypotheses proposed in the study. In particular, the high correlation of the supportive leadership style and overall job characteristics, across the three types of organizations in the test, demonstrates the importance of incorporating the role of supervision in the R&D job design. The findings have implications for enhancing the leadership effectiveness in managing R&D professionals. Such findings are not only important for R&D managers in newly industrialized countries, but are also valuable to their counterparts in industrialized countries.     

The growth and management of R&D outsourcing: evidence from UK pharmaceuticals

Outsourcing of research and development (R&D) activities has become a major management issue for R&D and technical managers within firms. It has also been of growing concern to academics who are trying to chart the implications of the increasingly distributed nature of research and innovative activities in advanced economies. This study is based on a survey of research-based pharmaceutical companies operating in the United Kingdom conducted in 2004–2006. The aim of this paper is to outline the main reasons for pharmaceutical firms to outsource R&D and the management practices followed by such companies in relation to outsourcing. The research results provide interesting findings in relation to, for example, the reasons behind outsourcing, the decision-making processes behind such practices and barriers to outsourcing arrangements. These issues are evaluated together with the characteristics of the firms and the specific project outsourced.     

A contemporary justice perspective on dual ladders for R&D professionals

Research and development (R&D) professionals play a key role in companies' innovation performance. Whereas prior research has indicated the potential benefits of dual ladder career systems to retain and motivate R&D professionals, there is a lack of knowledge regarding the design properties of dual ladders that facilitate such positive effects. The purpose of this study is to address this research gap by exploring how organizations can design dual ladders to enhance R&D professionals' organizational commitment and career satisfaction. Drawing on contemporary justice theory, we point to two factors integral for the successful application of dual ladders: the perceived equality of the technical ladder and the transparency of the dual ladder. These factors are related to R&D professionals' organizational commitment and career satisfaction. Furthermore, this study investigates whether these relationships are moderated by R&D professionals' age and self‐directedness in career management as well as firm size. The hypotheses are tested in a cross‐level study with 9 heads of R&D departments, 32 human resource managers, and 382 R&D professionals from 32 organizations. Based on the analyses, this study finds positive relationships between the perceived equality and the transparency of the dual ladder with R&D professionals' organizational commitment and career satisfaction. In addition, the findings show that the effects of the perceived equality of the technical ladder on R&D professionals' career satisfaction are weaker at high levels of self‐directed career management. The study contributes by developing theory on the consequences of dual ladders' design properties and moderating influences thereon. Thus, this research has implications for the literature on innovation management by expanding the knowledge on the interplay between career management and the human side of innovation.     

The Effects of Knowledge Depth and Scope on the Relationship between R&D Alliances and New Product Development

In this study, we extend the new product development (NPD) literature that proposes that firms' knowledge depth, defined as the reuse of well understood technical knowledge, and scope, defined as the use of newly acquired technical knowledge, and new knowledge accessed from R&D alliances all positively impact NPD. Building on the knowledge‐based view of the firm, we posit that the impact of firms' R&D alliances is limited when their internal knowledge depth and scope are adequate for NPD needs. We suggest that although firms form R&D alliances to gain the right to access external knowledge of R&D alliance partners, they are not obligated to invest in resources to integrate external knowledge from R&D alliances. We propose that they wait to see if their internal knowledge depth and scope prove sufficient for NPD. If the external knowledge proves to be unnecessary, firms choose not to invest the resources required to integrate this knowledge with their internal knowledge. Alternatively, we suggest an increased impact of R&D alliances on NPD when firms are more limited in their internal knowledge depth and scope. We propose that when knowledge depth and scope prove insufficient, firms make the additional investments required to integrate external knowledge from R&D alliances with their internal knowledge stock. This reasoning is consistent with real options theory as it has been applied in alliance research, where strategic alliances are characterized as real options. We find support for our hypotheses using panel data of 738 firm year observations for 143 U.S. biopharmaceutical firms operating in 2007. Our study contributes to the NPD literature and suggests new directions for future research.     

Evaluating internal and external knowledge sources in firm innovation and productivity: an industry perspective

Both internal knowledge – investment in internal R&D and information and communication technologies (ICT) as well as external knowledge – knowledge spillovers and active collaboration with partners are rapidly fostering firm productivity and innovation. In this study, we investigate the role of internal and external knowledge in firm productivity and innovation. In addition, we test interactions between investment in R&D and ICT as well as between knowledge spillovers and knowledge collaboration in their association to firm innovation and productivity. We use a recombinant innovation approach and four samples for firms in manufacturing, creative, ICT and science, and professional services industries during 2002–2014 and for pre-and post-crisis periods to perform our analysis. In addition to innovation and productivity, we also examine the role of internal and external knowledge as a conduit to the development of innovation internally and the co-creation of innovation with external partners. Our results lead to managerial and policy implications.     

How Internet technologies impact information flows in R&D: reconsidering the technological gatekeeper

Previous studies have firmly established the technological gatekeeper to be a key node in the innovation process – acquiring, translating, and disseminating external information throughout the R&D unit. However, the gatekeeper concept has received modest attention in recent times. We argue that the concept needs to be re‐examined in light of the recent advances in Internet technologies that have dramatically altered how knowledge workers source and share their information. Drawing on social network analysis and interview evidence from a medical devices R&D group, we find that the gatekeeper role is still vital, but no longer needs to be performed by a single individual. Instead, the modern R&D group can keep abreast of the latest technological advances through a combination of Internet‐enabled internal and external communication specialists. This study makes a number of important contributions. The gatekeeper theory is extended through the development of an updated conceptual framework. We also discuss the practical implications of our findings and advise R&D managers on how to organise resources to maximise optimal information flows.     

Problems faced by R&D managers in Canadian federal government laboratories

The paper conducts a critical review of the problems faced by middle to first-line managers in managing R&D in Canadian government laboratories. The data come from the published literature, interviews with R&D managers, and information obtained from government employees undergoing training as R&D managers.
The problems are numerous and serious. They arise from a multiplicity of causes related to underfunding and bureaucratic management practices that do not allow for the special nature of R&D. Hiring freezes, staff reductions, travel restrictions and reductions in training budgets are all consequences of underfunding, resulting in an aging workforce and technological obsolescence. Bureaucratic administration rules set by central agencies constrain the freedom of R&D managers to manage effectively, and limit low-level participation in policy-making and planning. The result is that too many management posts are filled by under-achieving scientists and engineers, with resultant consequences for originality and efficiency.
The authors believe that the only cure is to undertake proper funding, recognise the special operational needs of R&D management, and select managers for managerial ability in addition to technical competence.     

Fostering knowledge management deployment in R&D workspaces: a five-stage approach

In recent years, R&D institutes have encountered various intensified challenges. New instruments are needed to manage knowledge-related activities more effectively and efficiently. This paper presents and discusses the lessons learned from a case study in fostering knowledge management (KM) initiatives and systems in a research-oriented institute serving the metal industry, specifically the Metal Industries Research and Development Centre (MIRDC) in Taiwan. We perform a comparative review of the experience of embarking on KM among Taiwanese R&D institutes, a very rarely performed job. Following this, we investigate, by conducting the primary and secondary researches, how MIRDC has adopted a five-stage approach to develop a deliberate framework of KM deployment in order to manipulate the KM operations in the context of a Chinese R&D institute. The MIRDC case demonstrates a sophisticated KM process that provides an activity-based perspective of the plan, control, coordination and evaluation framework in an R&D workspace. This paper argues that well-defined deployment frameworks embody qualities of goal pursuing that are important to KM activities and compel managers to examine more closely how to realize the KM initiatives. This paper also reveals that a rigid hierarchical R&D structure inhibits the dynamics of the knowledge cycle due to technology segmentation. A parallel R&D structure supported by mission offices and a 'pioneer and innovation program' that is cross-departmental and industry-focused can positively motivate horizontal 'coopertition' networking so as to better exploit and leverage knowledge assets. The practices applied in these elemental KM activities are useful to other R&D organizations by suggesting how each of the KM activities can be configured and implemented.     

Contingency Organizations and Shared Values: Multiple Logics in Managing Diversification

Two logics of managing diversification have been suggested in the strategic management literature. The first is a very economic and structural approach that emphasizes the contingency fit between strategy and structural arrangements to maximize organizational effectiveness, while the second is a cultural approach that focuses on the use of strong shared values to minimize opportunistic behaviors of members. This paper empirically examines and compares the efficacy of two approaches to managing diversification, by using Taiwanese business groups as the sample. It is found that both approaches can lead to satisfied economic performance and they are supplementary. Diversified firms employing simultaneously two management logics will outperform firms with only one logic.