Do firms rely on sources of information for organizational innovation?

The growing literature on knowledge and information has focused on the impact of information sources on technological innovation. Our objective was to explore the use made by firms of internal and external (market, research and generally available) sources of information for their organizational innovation practices? implementation. Furthermore, we studies whether these sources may vary according to whether the firm operates in the manufacturing or service industry. Multivariate probit models? results on 2008 Community Innovation Survey (CIS) data show notable differences between services and manufacturing, for instance that employees? skill levels are more important for manufacturing than for services. Overall, this paper provides strong evidence of the heterogeneity in firms? sources of information to engage in organizational innovation. On one hand, differences appear in the sources of innovation used for the various types of organizational innovation, indicating the appropriateness to differentiate organizational innovation practices rather than using an aggregated measure of organizational innovation. On the other hand, the sources of information vary according to the type of industry, even though some similarities appear. Managerial and theoretical implications for organizational innovation are provided.CIS; manufacturing/services; organizational innovation; sources of information

Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms\u2019 green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance

Corporate governance, enterprise risk management, and inter-temporal risk transfer

This work is an initial attempt to describe the interconnections among corporate governance, enterprise risk management, and the phenomena of inter-firm risk transfer that occurs in combination with firms’ income smoothing. Corporate governance is conceived as a set of rules according to which a firm is managed and governed by its top managers. Extant literature on corporate governance has pointed out the benefits of the adoption, at a firm level, of a comprehensive enterprise risk management process. We note that, although such an adoption favors the smoothing of a firm’s income, in smoothing the income a firm, it also gives rise to an inter-temporal transfer of risk from the firm itself to its stakeholders, specifically to suppliers and employees. Such transfer of risk depends on the strength of a firm contractual power and on the structural relationships established by a firm with its stakeholders. We therefore argue that larger-sized organizations affiliated with a business group are likely to smooth income to a greater extent than smaller-sized organizations unaffiliated with a business group. The paper also offers some discussions of the findings and points out some important issues to be addressed in future studies

Regional Business Networks and the Multinational Retail Sector

In this paper we examine the network relationships of a set of large retail multinational enterprises (MNEs). We analyze under what conditions a flagship-network strategy (characterized by a network of five partners – the MNE; key suppliers; key partners; selected competitors; and key organisations in the non-business infrastructure) explains the internationalisation of three retailers whose geographic scope, sectoral conditions and competitive strategies differ substantially. We explore why and when retailers will adopt a flagship strategy. The three firms are Tesco and The Body Shop, two U.K.-based multinational retailers, and Moet Hennessy Louis Vuitton (LVMH), a French-based global retailer. We find evidence of strong network relationships for all three retailers, yet they embrace network strategies for different reasons. Their flagship relationships depend on each retailer’s strategic use of firm-specific-advantages (FSAs) and country-specific advantages (CSAs). We find that a flagship strategy succeeds in overcoming internal and/or environmental constraints to cross-border resource transfers, which are barriers to foreign direct investment (FDI). We provide recommendations on why and when to use a flagship-based strategy and which type of network partners to prioritize in order to succeed internationally.international retailing, flagship strategy, networks, LVMH, Tesco, The Body Shop, multinational, firm-specific advantages, regional strategy

The Role of Social and Institutional Contexts in Social Innovations of Spanish Academic Spinoffs

Social innovations developed by academic spinoffs (ASOs) are acquiring an ever-increasing relevance in the literature on academic entrepreneurship. Previous studies have considered the importance of the social and institutional contexts of entrepreneurial ecosystems for the development of these innovations, although a greater depth of analysis is required in this field of study. This research analyzes the influence of the frequency of contact with agents of social and institutional contexts of the entrepreneurial ecosystem on the social innovations of ASOs. From a sample of 173 Spanish ASOs, the results indicate that frequent contact with government and academic support units improves this type of innovation of ASOs. Regarding social context, an increase in the frequency of contact with customers, suppliers, and competitors favors the development of social innovation. However, frequent contact with venture capital firms inhibits the development of this type of innovation

What Matters to Whom? Managing Trust Across Multiple Stakeholder Groups

Trust has been widely recognized as a key enabler of organizational success. Prior research on organizational trust, however, has not distinguished between the potentially varying bases of trust across different stakeholder groups (e.g., employees, clients, investors, etc.). We develop a framework that distinguishes among organizational stakeholders along two dimensions: intensity (high or low) and locus (internal or external). The framework also helps to identify which of six potential antecedents of trust (benevolence, integrity, competence, reliability, transparency, and identification) will be relevant to which type of stakeholder. We test the predictions of our framework using survey responses from 1,296 respondents across four stakeholder groups from four different organizations. The results reveal that different antecedents of trust are indeed relevant for different stakeholder types, and provide strong support for the validity of the intensity and locus dimensions. This publication is Hauser Center Working Paper No. 39. The Hauser Center Working Paper Series was launched during the summer of 2000. The Series enables the Hauser Center to share with a broad audience important works-in-progress written by Hauser Center scholars and researchers

Possible kinds of values added by the purchasing department

Value-based purchasing focuses the decisions of purchasing professionals on the creation of value, rather than on the traditional objectives of cost savings and efficiency. Most of the purchasing researchers see purchasing as a strategic contributor to the added value of the organizations. But only a few contributions discuss the possible kinds of values that the purchasing department could actually add to the organization. This paper tries to fill this gap and reviews the traditional and strategic concepts of values added by purchasing and the factors affecting value added. Furthermore the paper presents a conceptual model of factors affecting value added by the purchasing department. In order to discover the influence of these factors on the capacity of the purchasing department to add value to the organization, we conducted an empirical study. The preliminary findings of the empirical research are presented at the end of the paper

Towards an appropriate comprehension of innovation sources in agrifood cooperatives

The existing typologies of innovation sources rely on classification criterions which are excessively generalist and developed under the consideration of private owned organisations. The present paper seeks to shed light on the special structural and operative features of agrifood cooperatives demanding a more comprehensive classification of innovation sources. A sample from the agrifood cooperative industry was selected as the scenario of the empirical research. Findings reveal a classification proposal of innovation sources into four differentiated groups (managers, technology, market and normative context) with regard to the management orientation of change (strategic vs. technical/legal) and the strength motivating the innovation (internal vs. external).Agrifood cooperatives, innovation sources, Agricultural and Food Policy, Q13.,

THE MEASURING FRAMEWORK OF OUTSOURCING SUCCESS: A SOCIAL EXCHANGE PERSPECTIVE

Outsourcing has become a buzz word in strategic management as the competition of modern business is the competition among business networks. The reviews on the measure of outsourcing success are conceptually fragmented due to different theories that have been applied in different studies. The overall aim of this paper is to develop an integrated framework in measuring the performance of services outsourcing. The framework is derived from Social Exchange Theory. Each party responsibility in dyadic relationship over outsourcing success is examined. This is followed by the identification of the mediating effect of compatibility between partners, and moderating effect of partnership quality to the aforementioned relationship. Outsourcing performance is proposed to be evaluated from the perspectives of tactical, strategic and behavioral dimensionsBuyer related factors, Compatibility, Outsourcing, and Partnership quality, Services ,Supplier related factors

International and domestic technology transfers and productivity growth: Firm level evidence.

We examine the drivers of international and domestic technology transfer strategies of firms and the impact of these transfers on firms’ productivity performance in a sample of 440 Flemish innovating firms during 2003-2006. Technology transfers may occur through R&D contracting, purchase of licenses and know how, purchase of specialized machinery, hiring of specialized personnel, and various informal channels. Analysis of the drivers of technology sourcing strategies shows that combined technology sourcing strategies are more likely to be adopted by firms that 1) face resource limitations in their innovative effort 2) have a basic research orientation and conduct more R&D 3) successfully use various technology protection strategies to appropriate the benefits of innovation efforts 4) are engaged in international R&D collaboration. Estimates of a dynamic productivity model show that firms engaging in international knowledge sourcing strategies record substantially and significantly higher productivity growth. The largest impact is found for firms combining foreign transfer strategies with local technology acquisition, suggesting that a diverse external technology strategy combining local technologies as well as know how from abroad is most likely to improve firm performance.Technology transfer; Productivity; Multinational Firms;