The knowledge spillover theory of entrepreneurship

Contemporary theories of entrepreneurship generally focus on the recognition of opportunities and the decision to exploit them. Although the entrepreneurship literature treats opportunities as exogenous, the prevailing theory of economic growth suggests they are endogenous. This paper advances the microeconomic foundations of endogenous growth theory by developing a knowledge spillover theory of entrepreneurship. Knowledge created endogenously results in knowledge spillovers, which allow entrepreneurs to identify and exploit opportunities.

From an information consumer to an information author: a new approach to business intelligence

ABSTRACT

Self-Service Business Intelligence (SSBI) enables business users, such as executives, managers, analysts, and knowledge workers to build reports on a need-basis to support their decisions and actions toward business success. This suggests that business users are empowered not only to consume information but also to author it. Yet, research on SSBI is mainly concentrated at the industrial level, and furthermore little is known on the way SSBI is changing the current state of BI. To address this lack of knowledge, this study explores the attributes of SSBI that are necessary to extend the role of a business user beyond that of an information consumer by drawing on the literature of Self-Service Technologies (SST). This study provides a new definition of SSBI as a new approach to BI. Furthermore, it highlights the duality of high levels of co-production and low levels of dependency as key to the SSBI approach.     

The development and use of machine tools in historical perspective

Improvements and diffusion of machine tools have had a major impact on productivity in manufacturing industry since the Industrial Revolution. The impact has been both direct and indirect. The direct impact consists of rising labor productivity through the use of faster, more accurate, more mechanized machines, and of the higher capital productivity through higher operating rates, greater reliability, and higher utilization rates. The indirect impact arises as the use of new or improved machine tools has necessitated or facilitated organizational changes affecting both labor, capital, raw materials, and energy. The magnitude of these impacts has varied over the years with the areas of application as new production methods have made possible entirely new products or lowered the cost of existing products sufficiently to create new markets. The first part of the paper contains a review of the historical development of machine tool technology since the Industrial Revolution, paying particular attention to the role of interaction between producers and users of machine tools. The second part focuses on the way in which recent development differs from that in earlier periods. In particular, it is found that the major changes in machine tool technology, from the so-called American System of Manufactures in the early 19th century to the development of ‘Detroit Automation’ in the 1950s, have tended to improve mass production methods. By contrast, the development of numerical control, beginning in 1948, has opened up the possibility of extending industrial production methods and automation to areas previously characterized more by handicraft methods. Even though this technology is not yet fully utilized, it is clear that the economics of industrial production has been revolutionized by the cost reduction of small scale production relative to large scale and the degree of flexibility offered by the technology. The third section of the paper deals with the present development trends, particularly discussing the increasing importance of flexibility and the shifting emphasis from development of individual pieces of machinery to integration and control of entire manufacturing processes, i.a. through the use of industrial robots. The reasons for the need for greater flexibility in manufacturing are also identified.     

Optimal Release Dates Of New Product Breakthroughs: A Simple Inverse Relationship

Based on a theoretical discussion of user-supplier relationships in the innovative process and on a historical analysis of such relationships in the machine tool industry, we propose the following hypothesis: In order to have an engineering industry at the forefront in terms of production technology, it is of primary strategic importance to have user firms on the technological frontier, i.e., firms which have the competence to formulate technical problems whose solution is generalizable to a larger set of problems and firms. Because of their size and technical leadership, these firms are attractive for any supplier, domestic or foreign, to assist them in finding technical solutions to new problems. Without such leading users, there is no basis for a domestic supplier industry. For these technological leaders it may not be vital, although still advantageous, to have domestic suppliers of automation. But users which are not on the technological frontier depend to a much greater extent on domestic suppliers which can therefore be considered strategic. Empirical evidence in support of the hypothesis is presented for the Swedish automation industry. Implications for public policy are discussed.     

Statistical approximation of plane convex sets

Summary

Given a convex set F in the plane with a sufficiently smooth boundary we try to approximate it by polygons in the following way. Using some specified sampling procedure we pick out n points on the boundary. Through each such point we draw the tangent. Consider the polygon F*_n spanned by all these tangents. If n is large we would expect F*_n to be close to F. Measuring the deviation by the area of F*_n — F we will derive an asymptotic expression for this area when n becomes large. This expression can be used to choose the optimum sampling procedure in the sense of smallest asymptotic deviation.

The problem arose from a problem of statistical approximation in propositional calculus, see section 1.     

Easy come, easy go

A growing number of experimental studies focus on the differences between the lab and the field. One important difference between many lab and field experiments is how the endowment is obtained. By conducting a dictator game experiment, we investigate the influences of windfall and earned endowment on behavior in the laboratory and in the field. We find subjects donate more in both environments if the endowment is a windfall gain. However, although the experimental design was intended to control for all effects other than environment, there are significant differences in behavior between the lab and the field for both windfall and earned endowment. This points to the importance of discussing the context when interpreting both laboratory and field experiment results as well as when conducting replication studies.     

On the nature,function and composition of technological systems

This paper suggests that the economic growth of countries reflects their developmental potential which, in turn, is a function of the technological systems in which various economic agents participate. The boundaries of technological systems may or may not coincide with national borders and may vary from one techno-industrial area to another. The central features of technological systems are economic competence (the ability to develop and exploit new business opportunities), clustering of resources, and institutional infrastructure. A technological system is defined as a dynamic network of agents interacting in a specific economic/industrial area under a particular institutional infrastructure and involved in the generation, diffusion, and utilization of technology. Technological systems are defined in terms of knowledge/competence flows rather than flows of ordinary goods and services. In the presence of an entrepreneur and sufficient critical mass, such networks can be transformed into development blocks, i.e. synergistic clusters of firms and technologies which give rise to new business opportunities.     

Cognitive Maps and a Hyperknowledge Support System in Strategic Management

Strategic management is defined as the system of action programs which form sustainable competitive advantages for a corporation, its divisions, and its business units in a strategic planning period.We have developed a system called Woodstrat to serve as a support system for these action program activities on both the corporate, the divisional, and the business unit levels. The system is modular and is built around the logic of strategic management, i.e., the main modules cover the market position; the competitive position; the production position; and the profitability, investment, and financing positions. The innovation in Woodstrat is that these modules are linked together, i.e., when a strong market position is built into some market segment, it will have an immediate impact on profitability through links running from the assumptions on an expected development to the projected profit/loss statement. There are similar links making the competitive position interact with the market position, and the production position interact with both the market and the competitive positions, and with the profitability and financing positions.The intermodular links are based on expert knowledge of strategic management; expert knowledge is also worked into the modules such that the logic of strategic management guides the user through the process of working out sustainable competitive advantages. The process is made user-supportive with a hyperknowledge user interface. The support is made intuitive and effective with the use of object-oriented expert system technology. The basis for this is rather unusual: the Woodstrat system was built with Visual Basic, in which the objects to create a hyperknowledge environment were built.It is shown that the conceptual constructs which form strategic management can be described with cognitive maps, and that these can be adequately represented with our hyperknowledge objects. It is also shown that the knowledge formation which takes place in a management team when strategic plans are formed can be described and validated with a hyperknowledge support system. It is finally shown that a support system with hyperknowledge features, which are close to the cognitive maps of a management team, will have a profound impact on the depth and the structure of its strategic management processes.     

Risk Management as Passionate Imitation: The Interconnections Among Emotions,Performance Metrics,and Risk in a Global Technology Firm

This paper traces the evolution of risk management practices in a global technology company between 2000 and 2015. We extend recent research that has highlighted the emotional aspects of riskwork. We detail how a passionate interest—‘we can do better at risk management’—emotionally ‘hooked’ the staff in the company's Sourcing Unit. Risk management, emotion, and management controls were intertwined. When top management singled out one of the key metrics clearly as a risk‐related metric for the Sourcing Unit, the employees felt a strong sense of relief, which gave rise to subsequent extensive risk measurement. We also contribute to the more general debate about accounting and its entanglement with emotions. Little is known about the ‘birth’ and the reasons for durability of passionate interests. Following Tarde (1903/2013), such ‘birth’ and endurance can be explained by analyzing how passionate imitation emerges as a result of a series of dislocal events—in our case a fire, new performance metrics, and natural disasters. These events triggered emotions that provided the necessary energy for three forms of passionate imitation: a) ‘we need to imitate our main competitor’ and risk mapping; b) ‘others in the organization are imitating us and our suppliers should imitate us’ and risk measurement; and c) ‘others in the organization (more specifically the Product Development Unit) should imitate us’ and proactive risk avoidance. This passionate imitation helped explain why the sourcing staff continued to be emotionally ‘hooked’ to risk management, that is, how the passionate interest endured and became vested.