Engineering Bureaucracy: The Genesis of Formal Policies, Positions, and Structures in High-Technology Firms

[Excerpt] This article examines the impact of organizational founding conditions on several facets of bureaucratization—managerial intensity, the proliferation of specialized managerial and administrative roles, and formalization of employment relations. Analyzing information on a sample of technology start-ups in California\u27s Silicon Valley, we characterize the organizational models or blueprints espoused by founders in creating new enterprises. We find that those models and the social composition of the labor force at the time of founding had enduring effects on growth in managerial intensity (i.e., reliance on managerial and administrative specialists) over time. Our analyses thus provide compelling evidence of path dependence in the evolution of bureaucracy—even in a context in which firms face intense selection pressures—and underscore the importance of the logics of organizing that founders bring to new enterprises. We find less evidence that founding models exert persistent effects on the formalization of employment relations or on the proliferation of specialized senior management titles. Rather, consistent with neo-institutional perspectives on organizations, those superficial facets of bureaucracy appear to be shaped by the need to satisfy external gatekeepers (venture capitalists and the constituents of public corporations), as well as by exigencies of organizational scale, growth, and aging. We discuss some implications of these results for efforts to understand the varieties, determinants, and consequences of bureaucracy

Implementation of virtual manufacturing by a technology licensing company

NoThe paper considers the implementation of a virtual manufacturing system as an alternative to outward technology licensing in a high technology industrial sector. Brief theoretical definition and description of the two strategy options is provided to give background and context. This is followed by empirical material from a longitudinal case study of a company that has developed a virtual manufacturing system in addition to its pre-existing outward technology licensing business stream. A summary account of the company history and development is followed by description of the virtual manufacturing proposal. Analysis of this identified a number of competencies that would be required in order to succeed. The final part of the paper describes the company's response to this analysis and discusses early implementation of the virtual system. It is shown that implementation of the proposal has represented a positive response to the business challenges facing the company

Reforming and privatizing Poland's road freight industry

This study explores options for the restructuring and the privatization of PKS, Poland's main state-owned enterprise for road transport of passengers and general freight. As regards privatization, the focus of the study is on road freight haulage operations of PKS and not on its passenger operations by bus. Privatization of road haulage (trucking) is intended to raise the productivity of resources employed in transport and to thereby assist in the recovery of the economy and of employment. The key to this outcome is the creation of a competitive environment and, equally, the introduction of management by, or under the control of, owners with a clear right to the net income from the business. The process of privatization must therefore allow wide scope for the development of commercially alert and market-oriented management. The scope and form of feasible privatization depend also on how road haulage will be regulated and on financing possibilities for private buyers, investors or tenants. The study therefore also analyzes the general organization of Poland's road haulage, the operations of its different segments, and discusses transport regulation, financing and taxation.Roads&Highways,Banks&Banking Reform,Municipal Financial Management,Transport and Trade Logistics,Common Carriers Industry

Capital Access for Women: Profile and Analysis of U.S. Best Practice Programs

Examines expert-identified best and promising practices in capital access programs for women among nonprofits, private equity investment groups, and banks. Analyzes factors for success and constraints women entrepreneurs face, and suggests improvements

New venture internationalisation and the cluster life cycle: insights from Ireland’s indigenous software industry

The internationalization of new and small firms has been a long-standing concern of researchers in international business (Coviello and McAuley, 1999; Ruzzier et al., 2006). This topic has been re-invigorated over the last decade by the burgeoning literature on so-called ‘born globals’ (BG) or ‘international new ventures’ (INV) – businesses that confound the expectations of traditional theory by being active internationally at, or soon after, inception (Aspelund et al., 2007; Bell, 1995; Rialp et al., 2005). Until quite recently, this literature had not really considered how the home regional environment of a new venture might influence its internationalization behaviour. However, a handful of recent studies have shown that being founded in a geographic industry ‘cluster’ can positively influence the likelihood of a new venture internationalizing (e.g., Fernhaber et al., 2008; Libaers and Meyer, 2011). This chapter seeks to build on these recent contributions by further probing the relationship between clusters and new venture internationalization. Specifically, taking inspiration from recent work in the thematic research stream on clusters (which spans the fields of economic geography, regional studies and industrial dynamics), the chapter explores how the emergence and internationalization of new ventures might be affected by the ‘cluster life cycle’ context within which they are founded. This issue is examined through a revelatory longitudinal case study of Ireland’s indigenous software cluster. The study investigates the origins and internationalization behaviour of ‘leading’ Irish software ventures but, in contrast to many existing studies, it seeks to understand these firms within the context of the Irish software cluster’s emergence and evolution through a number of ‘life-cycle’ stages

Exploring the fit between CSR and innovation

An exploration of the fit or space between CSR and innovation is presented, based on the RESPONSE project, a 15-month study involving 60 SMEs throughout Europe. The main practical output of the project was the Social Innovation model, yet a conceptual understanding of CSR and innovation is best advanced through the three hypotheses that constitute the conclusions of the project: H1) The diffusion of CSR should be modelled on the diffusion of innovation; H2) CSR implementation and innovation can be configured to form a virtuous circle; and H3) There is a maturity path toward true integration of CSR and innovation. These three hypotheses inform, respectively, on the background, results and development of the project. H1 is framed within the context of the original European Commission call and proposal; H2 ties in with the Social Innovation model; and H3 is discussed in the light of a short case involving a high-performing SME. Since the hypotheses were the result of the project, we do not attempt to prove them here, but discuss their significance, with the idea that further research and community development will fully evaluate their accuracy.Corporate social responsibility; innovation; small and medium-size enterprises;

First impressions: introducing the 'Real Times' third sector case studies

‘Real Times’ is the Third Sector Research Centre’s qualitative longitudinal study of third sector organisations, groups and activities. Over a three year period the study is following the fortunes, strategies, challenges and performance of a diverse set of fifteen ‘core’ case studies of third sector activity, and their relations with a number ‘complementary’ case studies. This report introduces the core case studies through summary sketches, and provides a descriptive account of the research up to the end of the first wave of fieldwork

The FairShares Model: a communitarian pluralist approach to constituting social enterprises?

Objectives - This paper is an exploration of the intellectual antecedents and philosophical assumptions that underpin the FairShares Model - a set of brand principles and Articles of Association published by the FairShares Association. It contributes to knowledge of the history of the social enterprise movement and its link to contemporary developments in mutual social enterprises. Prior Work - Previous contributions to the literature on social economy have drawn on communitarian philosophy to develop insights into mutual principles. This paper sets out a theoretical framework to evaluate whether the FairShares Model represents a communitarian pluralist discourse on the constitution of social enterprises. Approach - In January 2013, the FairShares Association published guidance on the FairShares 'brand' and 'model' (drawing on work presented at ISBE) to develop the concept of a ‘socialised’ enterprise . The framework developed from prior work is used to assess which aspects of communitarian philosophy are emphasized in both antecedent model rules (identified by the FairShares Association) as well as the FairShares Model (v1.2a). Results - The FairShares Model is theorised as a predominantly communitarian pluralist discourse with some ‘corporatist’ commitments. It represents an evolving set of guidelines for the ‘socialisation’ of enterprise by devising membership rights for two primary stakeholders (labour, users), and two secondary stakeholders (founders, investors). It is designed to reverse the centralising and accumulating tendencies of the private sector without returning assets to state control. It differs from philanthropic models by offering co-operative (par value) shares to three member classes: founders, labour and users, and (ordinary) ‘investor’ shares to all classes of member. Implications - The FairShares Model contributes to knowledge on the 'socialisation' of enterprise by identifying core characteristics of member-owned enterprises that deploy strategies for multi stakeholder ownership, governance and management. Value – By operationalising a communitarian pluralist discourse in the process of constituting a social enterprise, the FairShares Model offers an alternative to private sector models based on the subordination of labour and mutual models based on the primacy of a single stakeholder group

Loss of control vs. risk reduction: decision factors for hiring non-family CFOs in family firms

Objectives: We examine decision factors of family firm owners for hiring a non-family Chief Financial Officer (CFO). We explore the perceptions of family firm owners towards external managers by analyzing how their family-specific and company-specific goals relate to the employment of a non-family CFO. Furthermore, we analyze the consequences of hiring a non-family CFO on financial policies such as the use of strategic financial plans and initiatives to improve relationships with external capital providers. Prior work: Prior research has acknowledged that the attitude to external managers is a major concern for family firms because of potential problems due to a separation of ownership and management. However, it was shown that non-family CFOs positively influence the operational performance of privately-held family firms. Little knowledge exists to date to explicitly link the decision to hire an external CFO to the goals of family firm owners. Approach: Our study is based on a survey of 237 small- and medium-sized privately-held German family firms in 2007. We use logistic regression analysis to test our theory-driven hypotheses on the relationship between family-specific as well as company-specific goals of the family and the employment of a non-family CFO. Furthermore, we use OLS and logistic regression analysis to analyze hypotheses on how non-family CFOs influence financial policies. Results: The results suggest that family firm owners are reluctant to hire non-family CFOs because of agency type of problems. They decide against an external CFO when their goal of independence and control is high. Furthermore, they do not seem to trust external managers to act in accordance to their goal of enterprise value growth. However, they seem to realize that non-family CFOs are likely to decrease financial risk through the provision of additional capabilities. Non-family CFOs are shown to influence financial policies and, thereby, to bring in value creating resources. Implications: Family firm owners can use the results to understand the relevant factors they should consider when employing an external CFO. In particular, they should focus on establishing incentive structures for external managers to follow goals of the family. Candidates for non-family CFOs are able to better comprehend the underlying objectives of family firm owners in the hiring decision. Value: Our findings are relevant to further disentangle the relationship between external managers and family firm owners. By applying both the agency theory and the resource based view, we are able to offer explanations for and against the decision to hire non-family CFOs in family firms. --CFO,family firms,financial policy,entrepreneurial finance,corporate governance