Innovation, skills and performance in the downturn: an analysis of the UK innovation survey 2011

The link between firms’ innovation performance and economic cycles, especially major downturns such as that of 2008-10, is a matter of great policy significance, but is relatively under-researched at least at the level of micro data on business behaviour. It is, for example, often argued that economies need to ‘innovate out of recessions’ since innovation is positively associated with improvements in productivity that then lead to growth and better employment (Nesta, 2009). The issues of how individual firms respond to downturns through their investment in innovation, and how this impacts on innovation outputs and ultimately business performance and growth during and after downturns, has been less studied because relevant data has not been readily available. The UK Innovation Survey (UKIS) 2011 now makes this possible. The UKIS 2011 with reference period 2008 to 2010 covers the downturn in economic activity generated by the global financial crash. The build-up of panels over the life of the UKIS also supports analysis of the longer-term interactions between innovation and the business cycle. This report analyses the last four waves of the surveys. Further, the latest survey includes questions on whether firms employ a specific set of skills, which adds materially to the ability to research the role of skills and human capital in innovation at the micro level

Deferred Action: Theoretical model of process architecture design for emergent business processes

E-Business modelling and ebusiness systems development assumes fixed company resources, structures, and business processes. Empirical and theoretical evidence suggests that company resources and structures are emergent rather than fixed. Planning business activity in emergent contexts requires flexible ebusiness models based on better management theories and models . This paper builds and proposes a theoretical model of ebusiness systems capable of catering for emergent factors that affect business processes. Drawing on development of theories of the ‘action and design’class the Theory of Deferred Action is invoked as the base theory for the theoretical model. A theoretical model of flexible process architecture is presented by identifying its core components and their relationships, and then illustrated with exemplar flexible process architectures capable of responding to emergent factors. Managerial implications of the model are considered and the model’s generic applicability is discussed

User acceptance of open enterprise solution: the OSS-ERP case

Organizations implement Enterprise Resource Planning (ERP) systems with the objective of reaching operational efficiency and the incorporation to new markets through the information flow control on time of the entire organization. However, ERP systems are complex tools, mainly for the small and medium size enterprises (SMEs). For these reason, new ERP configurations have arisen for SMEs such as Open Source Software-ERP (OSS-ERP). OSS-ERP is a research topic barely analyzed by the literature. Specifically, this paper’s aim is to focus on the OSS-ERP users’ acceptance and use. The authors have developed a research model based on the Technology Acceptance Model (TAM) for testing the users’ behavior toward OSS-ERP.Las organizaciones implantan Sistemas Integrados de Gestión (ERP, acrónimo de Enterprise Resource Planning) con el objetivo de alcanzar eficiencias operativas y la incorporación a nuevos mercados mediante un mayor control del flujo de información de toda la empresa a tiempo real. Sin embargo, los sistemas ERP son herramientas complejas, principalmente la pequeña y mediana empresa (PYME). Por esta razón, están surgiendo nuevas configuraciones de sistemas ERP para PYME como los sistemas ERP de código abierto (OSS-ERP). OSS-ERP es un tópico de investigación escasamente analizado en la literatura. Concretamente, este artículo se centra en el y aceptación de los usuarios a los sistemas OSS-ERP. Los autores han desarrollado un modelo de investigación basado en Metamodelo de Aceptación de la Tecnología (TAM) para testar el comportamiento de los usuarios hacia los sistemas OSS-ERP

A theory-grounded framework of Open Source Software adoption in SMEs

This is a post-peer-review, pre-copyedit version of an article published in European Journal of Information Systems. The definitive publisher-authenticated version Macredie, RD and Mijinyawa, K (2011), "A theory-grounded framework of Open Source Software adoption in SMEs", European Journal of Informations Systems, 20(2), 237-250 is available online at: http://www.palgrave-journals.com/ejis/journal/v20/n2/abs/ejis201060a.html.The increasing popularity and use of Open Source Software (OSS) has led to significant interest from research communities and enterprise practitioners, notably in the small business sector where this type of software offers particular benefits given the financial and human capital constraints faced. However, there has been little focus on developing valid frameworks that enable critical evaluation and common understanding of factors influencing OSS adoption. This paper seeks to address this shortcoming by presenting a theory-grounded framework for exploring these factors and explaining their influence on OSS adoption, with the context of study being small- to medium-sized Information Technology (IT) businesses in the U.K. The framework has implications for this type of business – and, we will suggest, more widely – as a frame of reference for understanding, and as tool for evaluating benefits and challenges in, OSS adoption. It also offers researchers a structured way of investigating adoption issues and a base from which to develop models of OSS adoption. The study reported in this paper used the Decomposed Theory of Planned Behaviour (DTPB) as a basis for the research propositions, with the aim of: (i) developing a framework of empirical factors that influence OSS adoption; and (ii) appraising it through case study evaluation with 10 U.K. Small- to medium-sized enterprises in the IT sector. The demonstration of the capabilities of the framework suggests that it is able to provide a reliable explanation of the complex and subjective factors that influence attitudes, subjective norms and control over the use of OSS. The paper further argues that the DTPB proved useful in this research area and that it can provide a variety of situation-specific insights related to factors that influence the adoption of OSS

A needs theory of governance

New-institutional economics hypothesizes imperfect rationality, self-seeking preferences, monetary-related needs, and opportunism as fundamental features of human behavior. Consistently, new-institutionalist models of governance highlight the efficiency and transaction costs minimizing features of control rights and governance. Differently, needs theory of governance, as here presented, hypothesizes imperfect rationality, multiple needs, and reciprocity, in which case opportunism is reduced to an exception to individual behavior. Consistently, it presents a theory that links production governance with the wellbeing of those partaking in production. Building on Maslow’s human psychology, the governance model suggested in this paper is aimed at evidencing the self-actualization potential of control rights, organizational structures and practices. The application of Maslow’s theory to the institutional structure of organizations suggests that the deepest organizational layers (control rights and governance) broadly correspond to the most basic needs in Maslow’s theory (survival, security and belonging), while the outer layers (managerial models and employment relations) correspond to the fulfillment of the highest needs (self-esteem and self-actualization). Cooperative firms are used as an illustration of governance solutions consistent with needs theory in human psychology

The innovativeness of the Finnish high technology firms – The role of internal factors, cooperation, and the mobility of labour

Innovation is the driving force of the economy and it is the most important factor to the competitiveness of firms. Firms' capability to innovate, introduce new products to the market and develop new production methods has a significant effect on their success in the domestic and international markets. The role of innovativeness is emphasised particularly in the industries with a high growth rate and rapidly developing technology. This paper investigates the innovativeness of Finnish high technology firms, more precisely their local business units, between 1996 and 2002. Innovativeness of local business units is measured in terms of their ability to introduce both product and process innovations. The role of internal and external factors on the innovativeness of local units is analysed by the means of the probit analysis. An important and novel feature of my paper is that our data provides a unique chance to evaluate the role of two important channels of technological diffusion, R & D cooperation between the firms and institutions and the inter-firm mobility of labour for the innovativeness of high technology establishments. Econometric results reveal that internal factors of local units affect their ability to introduce product and process innovations differently. I find evidence that R & D cooperation, both between firms and between firms and research institutions, can act as a significant catalyst for innovation activity. Moreover, our empirical findings give some evidence that worker inflows, and thereby technology diffusion from other firms, has an effect on the innovativeness of the high technology establishments.

Are systems of innovation in Eastern Europe efficient?

This paper explores the determinants of the productivity in the countries of Eastern Europe (EE) through the perspective of ‘narrow’ and ‘broad’ national systems of innovation (NSI). Based on panel econometrics it examines the extent to which systems in EE could be considered ‘(in)efficient’. Our results suggest that the EE countries have lower levels of productivity than might be expected given their research and development (R&D), innovation and production capabilities. The inefficiencies of ‘broad’ NSI are compounded by the inefficiencies of ‘narrow’ NSI in terms of generating numbers of science and technology publications and resident patents relative to R&D employment, compared to the rest of the world. Our results point to an important distinction between technology and production capability as the drivers of productivity improvements, and provide some policy implications

Globalization and Innovation in Emerging Markets

Globalization brings opportunities and pressures for domestic firms in emerging market economies to innovate and improve their competitive position. Using recent data on firms in 27 transition economies, we test for the effects of globalization through the impact of increased competition and foreign direct investment on domestic firms’ efforts to raise their capability (innovate) by upgrading their technology or their product/service (improving quality or developing a new one), taking into account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation, especially for firms further from the frontier, and that the supply chain of multinational enterprises and international trade are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation and are more likely to display the inverted U relationship between competition and innovation.competition, innovation, emerging markets, spillovers

Globalization and Innovation in Emerging Markets

Globalization brings opportunities and pressures for domestic firms in emerging markets to innovate and improve their competitive position. Using data on firms in 27 transition economies, we test for the effects of globalization through the impact of increased competition and foreign direct investment on domestic firms' efforts to raise their capability (innovate) by upgrading their technology or the quality of their product/service, taking into account firm heterogeneity. We find competition has a negative effect on innovation, especially for firms further from the frontier, and that the supply chain of multinational enterprises and international trade are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on innovation. There is weak evidence that firms in a more pro-business environment invest more in innovation and are more likely to display the inverted U relationship between competition and innovation.emerging markets, globalization, innovation