Innovation in Business Groups

Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in industries that rely more on external finance and have a higher degree of information asymmetry. We also find that the innovation of affiliates is less sensitive to operating cash flows. We interpret our results as supporting the 'bright side' of business group internal capital markets and explain how legal boundaries between group affiliates mitigate the inefficiencies found in internal capital markets of US conglomerates.business groups, innovation, internal capital markets

The Structure of Intra-Group Ties: Innovation in Taiwanese Business Groups

Business groups are a network form of multi-business firm that play central economic and technological roles in many emerging economies. We draw from the technology studies literature, complemented by concepts from studies of organizational networks, to investigate how equity, director, and operating ties between firms within groups shape their innovation opportunities. Technology studies suggest that such ties create both opportunities and constraints that influence innovative activity by affiliates and, in aggregate, by a group as a whole - opportunities that arise from access to information, people, money, and other resources, but also constraints that arise from entrenched relationships among different actors. The network literature, in turn, suggests that centrality and density of ties between firms within a group will shape the benefits and constraints. We find that the overall density and individual centrality of the three types of ties affects affiliate and group innovativeness among about 2,000 firms within 263 business groups in Taiwan between 1982 and 2000. Groups that offer affiliates focused access to financial resources and operating knowledge, coupled with autonomy from intra-group competition and strategic interference, often generate fertile opportunities for innovative activity by some of their members. The results also offer implications for multi-business firm innovativeness.

Two Faces: Effects of Business Groups on Innovation in Emerging Economies

This paper argues that business groups in emerging economies exert dual effects on innovation. While groups encourage innovation by providing institutional infrastructures, groups also discourage innovation by creating entry barriers for small and non-group firms and inhibiting the proliferation of new ideas. Using OLS and panel data estimation techniques, followed by nonparametric analysis and semiparametric kernel regression, we find evidence of an inverted-U relation between group market share and innovation in industrial sectors of both Korea and Taiwan, during the 1981-1995 period. Institutional differences between Korea and Taiwan in terms of market structure and industrial policies provide useful conceptual implications from the empirical comparison.

Job creation in business services:Innovation, Demand, Polarisation.

The patterns and mechanisms of job creation in business services are investigated in this article by considering the role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an empirical test is carried out with parallel analyses on a group of selected business services, on other services and on manufacturing sectors,considering six major European countries over the period 1996-2007. Within technological activities a distinction is made between those supporting either technological competitiveness, or cost competitiveness. Demand variables allow identifying the special role of intermediate demand. Job creation in business services appears to be driven by efforts to expand technological competitiveness and by the fast growing intermediate demand coming from other industries; conversely, process innovation leads to job losses and wage growth has a negative effect that is lower that in other industries. Business services show an increasingly polarised employment structure.Business Services, Innovation, Employment.

The supply side of innovation diffusion - A UK SME broadband adoption perspective

Recent research suggests that the majority of the Small and medium sized enterprises (SMEs) e-business research focusses primarily on studying innovation diffusion within the SMEs themselves with limited research into the supply-side of innovation diffusion This study examines the supply side of innovation diffusion to SMEs in south east United Kingdom (UK). It aims to examine and provide an indepth view of the broadband diffusion process to SMEs in UK by exploring the views and activities of the various groups involved in the process with a particular focus on the supply side. Innovation diffusion and social construction of technology theory are applied to extend a framework with a view to address some of the issues not covered in previous literature. Our research results suggest that even though the various social groups are working towards the same goal, both sides have a very different view of what the expectations are from the supply side of innovation diffusion. We believe that our results are useful to providers looking to diffuse broadband as well as other IT innovations to SMEs

The Emerging Market Manufacturing Business Groups (EMBGs) and the Interplay between Innovation in Environmental Sustainability, Digitalization, Internationalization and Corporate Governance Structures: The Case of Turkish Holding Companies

Abstract. The purpose of this research is to explore the Emerging Market Manufacturing Business Groups’ (EMBG’s) innovation processes through their internationalization activities and the interplay between innovation in environmental sustainability, digitalization, networks, and corporate governance structures. This study focuses on the business dynamics of manufacturing Turkish Business Groups, namely Turkish Holding Companies. It gives a clear illustration of how manufacturing can be innovative in environmental sustainability while internationalizing and exceling its competitive advantage through utilizing both foreign and domestic resources and digitalization. The paper also demonstrates how these companies share continuous knowledge across subsidiaries and other network systems with the support of their organizational forms and/or corporate governance structures. The study comprises Turkish manufacturing multinationals that operate in the continent of Europe. It examines 15 parent firms and 200 subsidiaries that conduct manufacturing operations in countries, such as United States, Germany, Spain, Italy, Netherlands, and United Kingdom.Keywords.Emerging market manufacturing business groups, Environmental sustainability, Innovation, Digitalization, Network systems.JEL.O31, O32, O35, G34, F23, D21

Teamwork and organizational innovation: the moderating role of the HRM context

Evidence is accumulating on the role of teams in shaping a variety of business outcomes, but our knowledge on the effect of teamwork on organizational innovation is still evolving. This study examines whether the extent to which two staff groups are organized in teams (production staff and management/administrative staff) affects organizational innovation and whether human resource management (HRM) systems, which can be of facilitating or con- straining nature, enhance the teamwork/innovation relationships. Hypotheses were tested with lagged and longitudinal data derived from 18 to 45 organizations from the UK manufacturing sector. Results suggest that the more widespread the use of teamwork in organizations, the higher the level of organizational innovation. Furthermore, this effect depends, particularly for production teams, on the overall quality of the HRM systems that exist in their organizations. Teamwork/innovation relationships are further moderated (for management and administrative teams) by an HRM practice that provides teams with time for thoughtful reflection. Thus, HRM systems can be of more or less facilitating or constraining nature for teams in organizations

Innovation dialogue - Being strategic in the face of complexity - Conference report

The Innovation Dialogue on Being Strategic in the Face of Complexity was held in Wageningen on 31 November and 1 December 2009. The event is part of a growing dialogue in the international development sector about the complexities of social, economic and political change. It builds on two previous events hosted the Innovation Dialogue on Navigating Complexity (May 2009) and the Seminar on Institutions, Theories of Change and Capacity Development (December 2008). Over 120 people attended the event coming from a range of Dutch and international development organizations. The event was aimed at bridging practitioner, policy and academic interests. It brought together people working on sustainable business strategies, social entrepreneurship and international development. Leading thinkers and practitioners offered their insights on what it means to "be strategic in complex times". The Dialogue was organized and hosted by the Wageningen UR Centre for Development Innovation working with the Chair Groups of Communication & Innovation Studies, Disaster Studies, Education & Competence Studies and Public Administration & Policy as co; organisers. The theme of the Dialogue aligns closely with Wageningen UR’s interest in linking technological and institutional innovation in ways that enable ‘science for impact’

MENINGKATKAN KINERJA KARYAWAN DENGAN INNOVATION BUNDLE PADA IKM KAIN BATIK DI KALIMANTAN TENGAH

Research in the field of management, regarding the importance of improving the performance of employees' human resources in maintaining business. Uncertain business conditions require small and medium industry players to quickly make changes with product innovation. The main thing in HRM in innovation theory is to create an innovation bundle business strategy, so that it specifically gets opportunities from product groups and customers. The research method is to explain and distribute questionnaires to 200 batik IKMs in Central Kalimantan, and analyzed by SPSS 24.0. The results of the study prove that work knowledge and job skills have a positive and significant effect as a bundle innovation in improving employee performance by 71.3%. The results of this study can be used as input for batik IKMs in Central Kalimantan to pay attention to workers' abilities so that they can provide good results for businesses in terms of work knowledge and job skills. The research implication is to improve employee performance by paying attention to work knowledge and job skills to sustain the business in the midst of uncertain business conditions, through a bundle innovation business strategy. Future research can adopt an innovation bundle business strategy to increase business revenu

Business Model Evaluation: A Systematic Review of Methods

Background: As a result of factors such as digitization and rapid technology change, organizations are compelled to innovate their business models at an accelerated pace. While the domain of business model innovation has focused on understanding and structuring the process of innovation, it offers limited guidance for evaluating business models during the innovation process. Business model evaluation plays a vital role in supporting decision-making about the performance or viability of new business models and motivating continued investments. Existing literature on methods for business model evaluation and their application is limited and available information is scattered. Furthermore, as the BMI process covers a broad spectrum of activities - from business model initiation to implementation - the evaluation challenges and the effectiveness of evaluation methods vary across the phases of innovation. Thus, there is a need for a better understanding on methods for business model evaluation, and their timing and application for business model innovation. Method: Through a systematic literature review, we have investigated the methods available for business model evaluation and focused on understanding their characteristics and effective timing of application in the business model innovation process. Results: We have identified six groups of methods used for business model evaluation. Additionally, we find that early phase business model evaluation is predominantly qualitative in nature, whereas late phases of business model innovation are generally supported through quantitatively-oriented methods. Moreover, we observe that limited evaluation support is available in the literature to support the initiation phase of business model innovation. Based on our findings, we propose a guiding structure for aligning the available methods with the respective innovation phases. Conclusion: The proposed guiding structure offers guidance for business model evaluation in practice and serves as a basis for future research in developing more effective methods and tools for business model evaluation and development