Employee mobility,spin‐outs,and knowledge spill‐in: How incumbent firms can learn from new ventures

Research summary: We consider conditions in which incumbent firms are particularly poised to benefit from knowledge spilling in from new ventures that employ individuals previously employed by the focal incumbent firm. We distinguish between inventors who leave their incumbent employers to found spin‐outs and those who become non‐founding employees of existing new ventures. Using a sample of new ventures and incumbent firms in the U.S. information technology (IT) sector, we find that incumbents are more likely to benefit from patented knowledge that spills in from their spin‐outs than from new ventures that employ non‐founding inventors formerly employed by the respective incumbent. Any advantage that parent firms have in reaping such knowledge quickly dissipates, however, when these parents have a history of misappropriating the intellectual property of others. Managerial summary: It has long been acknowledged that new ventures can acquire valuable knowledge from their larger and more established counterparts by hiring away their talented employees. We consider the possibility of a reverse flow of knowledge where established firms learn from those new ventures that have poached employees from them. We find that established information technology (IT) firms are more likely to learn and build on the technology of their spin‐outs (i.e., new ventures founded by their former inventors) than from new ventures that simply employ non‐founding inventors formerly employed by the respective IT firm. Any advantage that these IT firms had in reaping technical know‐how from their spin‐outs quickly dissipated, however, when they had a history of misappropriating the intellectual property of others. Copyright © 2016 John Wiley & Sons, Ltd.     

On the inversion of moving averages

Abstract

1. Let an infinite sequence of real numbers be given by (1) {η_t } =[…, η _t-2, η _t-1, η _t , η _t+1, η _t+2, . . . ] and let (b) = (b ₀, b ₁,.., b_h ) represent real constants. The sequence(2) {ζ _t } = […, ζ _t-2, ζ _t-1, ζ_t , ζ _t+1, ζ _t+2,…] defined for every t by the relation(3) ζ _t = b ₀ · η _t + b ₁ · η _t-1 — . . . + b _h-1 · η _t-h+1 + b _h · η _t-h is said to be a moving average of {η _t } with weights (b _i ) The variable t, which is restricted to integral values 0, ± 1, ± 2 etc., will in the sequel be spoken of as representing time.     

Using meta‐analytic structural equation modeling to advance strategic management research: Guidelines and an empirical illustration via the strategic leadership‐performance relationship

This paper demonstrates how meta‐analysis can be combined with structural equation modeling (MASEM) to address new questions in strategic management research. We review this integration, describe its implementation, and compare findings from bivariate meta‐analyses, a direct‐effect structural equations model, and two mediating frameworks using data on the strategic leadership and performance relationship. Results drawn from 208 articles that collectively included data on 495,638 observations demonstrate the new insights available from MASEM while also suggesting a revision to conventional thinking on strategic leadership. Whereas some theories posit that boards of directors influence firm performance through monitoring and disciplining the top management team, MASEM provides more support for the view that boards mediate the top management teams' decisions. Implications for applying MASEM in strategic management are offered. Copyright © 2014 John Wiley & Sons, Ltd.     

Test development and use: New twists on old questions

Over the past several decades, there have been some significant advances in psychological science, specifically in our knowledge about important questions to address with respect to the development and use of assessment tools. This article focuses on developments in research and guidelines for practice in five selected areas that, if applied, will lead to more informed use of assessment tools. The five areas that we discuss are validity generalization, statistical significance testing, criterion measures, cutoff scores, and cross‐validation. © 2005 Wiley Periodicals, Inc.     

Semi‐nonparametric competing risks analysis of recidivism

In this paper we specify a semi‐nonparametric competing risks (SNP‐CR) model of recidivism, for misdemeanors and felonies. The model is a bivariate mixed proportional hazard model with Weibull baseline hazards and common unobserved heterogeneity. The distribution of the latter is modeled semi‐nonparametrically, using orthonormal Legendre polynomials on the unit interval, and integrated out to make the two durations dependent, conditional on the covariates. The SNP‐CR model involved corresponds to a Logit model for felony arrest; hence the validity of the SNP‐CR model can be tested by testing the validity of the implied Logit model. The latter will be done by using the integrated conditional moment (ICM) test. In the first instance we have estimated and tested two versions of the SNP‐CR model, without and with fixed state effects. However, the ICM test rejects these models. Therefore, we have estimated and tested the model for each state separately. These state models are not rejected by the ICM test. Indeed, the estimation results vary substantially per state. Copyright © 2007 John Wiley & Sons, Ltd.     

Delivering effective performance feedback: The strengths-based approach

Performance feedback has significant potential to benefit employees in terms of individual and team performance. Moreover, effective performance feedback has the potential to enhance employee engagement, motivation, and job satisfaction. However, managers often are not comfortable giving performance feedback and such feedback, if improperly relayed, causes more harm than good. In this installment of HUMAN PERFORMANCE, we describe a shift from traditional weaknesses-based feedback (which relies on negative commentary focused on employees’ shortcomings) to the more constructive approach of strengths-based feedback (which relies on employee affirmation and encouragement). We explain why a strengths-based approach to performance feedback is superior to the weaknesses-centered approach, and offer nine research-based recommendations on how to deliver effective performance feedback employing a strengths-based method.     

Avoiding a “me” versus “we” dilemma: Using performance management to turn teams into a source of competitive advantage

Teams are pervasive in today's world of work. Unfortunately, in many cases teams do not live up to their promise and, instead, lead to disappointing results. In this installation of Human Performance, we discuss how to design and implement performance management systems that include a good combination of both “me” and “we” considerations. We offer the following research-based recommendations: (1) use measures of individual and team performance, (2) use measures of processes and outcomes, (3) develop performance measures using input from inside and outside the team, (4) gather performance information using sources from inside and outside the team, (5) foster team learning and development, and (6) reward both individual and team performance. We discuss implementation guidelines for each of these recommendations that will help maximize individual and team performance as well as alignment among individual, team, and organizational goals. Implementing performance management systems following our recommendations will help organizations turn teams into an inimitable and sustainable source of competitive human capital advantage.     

Facility design consequences of different employees’ quality perceptions

An important challenge for facility management is to integrate the complex and comprehensive construct of different service processes and physical elements of the service facility into a meaningful and functional facility design. The difficulty of this task is clearly indicated by the present study that shows that different employee categories for interpersonal services have quite different perceptions of the facility design that stem from different but coherent needs and interests. Employees with management perspectives (i.e. top managers and facility managers) were significantly more positive about the facility design than frontline employees and their supervisors with providers’ perspectives. Also, providers attributed a more important role to facility design with respect to delivering interpersonal services than management did. We found strong indications for the need for cross-functional cooperation in decision making about the facility design, creating a more balanced setting and possibly empowering providers for the service encounter.     

Forecasting the Downturn of the Great Recession

We examine the quantitative forecasts of Wall Street Journal economists made during the Great Recession. The recession was not predicted in advance, and the severity of the decline was not recognized immediately. An important problem was that the real-time data did not reflect the actual state of the economy and contributed to the forecast errors. At times there was substantial disagreement among the forecasters. A time-series forecast disagreement might provide valuable information about impending recessions.