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Abstract

Inter-departmental innovation collaboration facilitates innovation performance. At the same time, it has been identified as source of increased coordination costs. Using organizational information processing theory, this paper builds and tests hypotheses on the costs and benefits of innovation-related collaboration within firms. Based on a sample of 433 German manufacturing firms we show inter-departmental innovation collaboration to increase process innovation performance, but also to produce costs in terms of project delay and project termination. These costs, however, do not affect innovation performance at the firm level. This finding suggests firms to be well able to balance the costs and benefits of interdepartmental collaboration across their innovation project portfolio. Theoretical and managerial implications are discussed.

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... Besides the risks associated with the uncertainty of results, innovation projects are subject to specific forms of failure or malfunctioning, associated with the nature of such projects (Radas and Bozic 2012). The literature has identified two main problems associated with innovation projects that may be considered as failure or malfunctioning (Cuijpers et al. 2011;Lhuillery and Pfister 2009;Lokshin et al. 2011;Radas and Bozic 2012): abandonment and delay. 2 The most important form of failure is the abandonment of a project before its conclusion, when the firm has already invested resources in it. Abandonment of an innovation project may occur because of a revision of the initial expectations about its results due to unexpected changes of market conditions. ...
... Less attention has been paid, instead, to the relation between collaboration, project failures and innovation performance (Cuijpers et al. 2011;Lokshin et al. 2011). Up to now, empirical analysis does not provide conclusive results. ...
... The relation between project failure and innovation performance has also received little attention (Cuijpers et al. 2011;Lokshin et al. 2011). When referring to a specific project we can expect a negative relation between its failure and the resulting innovative output (failure effect). ...
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The main aim of this paper is to analyze the factors affecting the likelihood of the failure of innovation projects (delay or abandonment) and the relation between project failure and innovation performance. Specific emphasis is given to the role of collaboration in general, and to collaboration with universities and public research institutions (PRI) in particular. We use data about German firms for the period 2002–2005, merging the results of two successive Community Innovation Surveys. We show that collaboration is associated with the Delay and, to a lesser extent, the Abandonment of innovation projects. Collaboration with PRI does not increase either the likelihood of project failure or the innovation performance, compared to collaboration with firms. We also show that there is a positive relation between the delay of projects and the innovation performance of firms. The occurrence of delays can be considered as a sort of ‘necessary’ cost in order to raise the level of innovation performance.
... Companies like Google and IBM have claimed the application of quantum computing for digital innovation (Cho, 2018;Malina and Woerner, 2019). To achieve technological supremacy the innovation and new technological developments definitely address the uncertainty and complexity in an organization (Cuijpers et al., 2011). The new unknowns in the quantum leap are foreign for processing the information for all functions of any firm. ...
... Startups disrupt incumbents' stand in the market with new technological innovation and implementation capabilities (Barlow et al., 2006;Martínez-Román et al., 2020) in the marketplace, which leads to dealing with uncertain factors with respect to technology implementation quite frequently (Tatikonda and Montoya-Weiss, 2001). Organizations have to streamline processes with numerous uncertain factors, viz., internal information processing structure (Winkler et al., 2015), inter-departmental collaboration (Cuijpers et al., 2011), end user demand (Arifiani and Arifiani, 2019), infrastructure demand (Gupta et al., 2018a,b), etc. End user satisfaction in healthcare is the resultant of internal information processing structure, inter-departmental collaboration and utilization of infrastructure and technology. To bring into line these factors, one significant approach is to re-align the organizational design thereby increasing their information processing capacity (Cuijpers et al., 2011). ...
... Organizations have to streamline processes with numerous uncertain factors, viz., internal information processing structure (Winkler et al., 2015), inter-departmental collaboration (Cuijpers et al., 2011), end user demand (Arifiani and Arifiani, 2019), infrastructure demand (Gupta et al., 2018a,b), etc. End user satisfaction in healthcare is the resultant of internal information processing structure, inter-departmental collaboration and utilization of infrastructure and technology. To bring into line these factors, one significant approach is to re-align the organizational design thereby increasing their information processing capacity (Cuijpers et al., 2011). Organizational Information Processing Theory (OIPT) given by Galbraith (1973) paves way for a strategic alignment within firms. ...
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Involvement of multiple stakeholders in healthcare industry, even the simple healthcare problems become complex due to classical approach to treatment. In the Covid-19 era where quick and accurate solutions in healthcare are needed along with quick collaboration of stakeholders such as patients, insurance agents, healthcare providers and medicine supplier etc., a classical computing approach is not enough. Therefore, this study aims to identify the role of quantum computing in disrupting the healthcare sector with the lens of organizational information processing theory (OIPT), creating a more sustainable (less strained) healthcare system. A semi-structured interview approach is adopted to gauge the expectations of professionals from healthcare industry regarding quantum computing. A structured approach of coding, using open, axial and selective approach is adopted to map the themes under quantum computing for healthcare industry. The findings indicate the potential applications of quantum computing for pharmaceutical, hospital, health insurance organizations along with patients to have precise and quick solutions to the problems, where greater accuracy and speed can be achieved. Existing research focuses on the technological background of quantum computing, whereas this study makes an effort to mark the beginning of quantum computing research with respect to organizational management theory.
... While the initial keyword search focused specifically on literature sorted by relevance that used the term cross-functionality (2,660 hits), other related terms were more specifically helpful as they narrowed down the search. These included terms such as "inter-functional collaboration" (235 hits; Canacott et al., 2018;Belasen and Rufer, 2014;Abraham and Reddy, 2010;Ashnai et al., 2019), "inter-departmental integration" (206 hits; Kahn, 1996) and "inter-departmental collaboration" (1,240 hits; Cuijpers et al., 2011;Danowski, 2010;Lee, 2020). Further terms identified included "organizational configuration" (3,490 hits; Lohmann and zur Muehlen, 2019; Mohsen and Eng, 2016) and "cross-group collaboration" (176 hits; Kwan, 2019). ...
... Other well-known organizational theories have also been examined and used to explore cross-functionality. Cuijpers et al. (2011) as well as Rosado Feger (2014) specifically refer to organizational information processing theory (Galbraith, 1974), Engelen et al. (2012) consider resource dependency theory (Pfeffer and Salancik, 1978) and Neill and Jiang (2017) draw on stakeholder theory (Freeman, 1984). This suggests that there are a wealth of different theories that already considered in this inter-disciplinary and multi-disciplinary domain. ...
... There are a number of potential benefits associated with cross-functional integration according to the existing literature. Outcomes of cross-functional efforts have been reported in relation to innovation (Belasen and Rufer, 2014;Centindamar et al., 2016;Cuijpers et al., 2011;Marasquini Stipp et al., 2018;Miller et al., 2020;Su et al., 2019;Yang and Tsai, 2019) and innovation management (Hausberg and Leeflang, 2019). Frequent, related links are also made with creativity (Ng et al., 2012), new product development (Belasen and Rufer, 2014;Graner and Mißler-Behr, 2014;Hirunyawipada et al., 2010;Hemonnet-Goujot et al., 2019;Hendler, 2019) and product innovation (De Clercq et al., 2011;De Clercq et al., 2013;Engelen et al., 2012;Ghobadi et al., 2010;Hirunyawipada et al., 2010;Nakata and Im, 2010;Pérez-Luño et al., 2019;Hsu, 2012, 2014). ...
Article
Purpose Structural and technological changes are driving functional reorganization in many organizations. To date, there are very few articles that explicitly, consistently and cumulatively focus on cross-functional integration. This paper aims to review and explore the literature that does directly address cross-functional integration. Design/methodology/approach The authors conducted a literature review within the general management domain for the time frame 2010 to 2020 and identified 71 relevant articles that provide an overview of current practices and trends. Findings This conceptual paper reviews this identified literature and outlines key trends, noteworthy articles and a summary of relevant theories, and provides an overview of outcomes linked to cross-functional integration in the literature. The paper concludes with a set of recommendations for practitioners and an outline of potential research areas for academic researchers, including a call for more theory integration, building and testing in the area of cross-functionality. Originality/value This paper is the first of its kind to attempt to summarize the literature on cross-functionality (published between 2010 and 2020), a currently very fragmented field of study spread out across different management disciplines.
... 2 These problems may arise for a plurality of reasons such as the partners' cognitive distance, their different aims, and the effects of opportunistic behaviour in sharing the economic results of the collaboration (Bruneel, D'Este, and Salter 2010). There is a consolidated literature on the relations between innovation collaborations and project failures (Lhuillery and Pfister 2009;Cuijpers, Guenter, and Hussinger 2011;Lokshin, Hagedoorn, and Letterie 2011), although this literature is less abundant compared with the literature analysing the positive impacts of innovation collaborations. A neglected field of investigation is the analysis of the reverse relationship between the failure of innovation projects and future innovation collaborations, i.e. whether and to what extent innovation partnerships are the consequence of previous failures with the aim of overcoming the problems that determined such failures. ...
... There is an abundant literature addressing the positive impact of partnerships in innovation activities. There is also a consolidated literature addressing the drawbacks and risks arising from these partnerships (Lhuillery and Pfister 2009;Cuijpers, Guenter, and Hussinger 2011;Lokshin, Hagedoorn, and Letterie 2011). These kinds of failures can be subsumed under two general categories (Bruneel, D'Este, and Salter 2010): 'orientation-related barriers' and 'transaction-related barriers'. ...
... Radas and Bozic (2012) by using data from 2006 Croation CIS find, among others, that for SMEs that experienced innovation failures (in terms of abandonment and delays), collaboration in innovation activities has a positive impact on the probability of innovation. Cuijpers, Guenter, and Hussinger (2011) is the only paper considering the possibility of a 'reverse' relationship between innovation collaboration and innovation failures, i.e. the fact that innovation failure may have a positive impact on the decision to collaborate. Indeed, Cuijpers, Guenter, and Hussinger (2011, 571) also consider the possibility that firms could decide to engage in collaboration (in this case, interdepartmental collaboration) to overcome innovation problems. ...
Article
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The aim of this paper is to investigate the hypothesis that there is a complex and bidirectional relation between collaboration and failure in innovation projects. On the one hand, collaboration in innovative activities may increase the likelihood of project failure. At the same time, the failure in innovation projects may induce the firm to collaborate in order to overcome the problems that determined the failure of innovation projects (induced collaboration). Up to now, we are not aware about the existence of any empirical paper analysing the interaction between these two mechanisms. This paper aims at filling this gap by providing a motivation for the induced collaboration and testing its empirical relevance in a dynamic framework. The empirical analysis is carried out by using two consecutive German Community Innovation Surveys referring to the period 2006–2010. The empirical results support the hypothesis of a bidirectional causal relationship between collaboration and failure.
... However, they do not measure the effect of collaboration on the probability of projects being abandoned or delayed. Cuijpers et al. (2011) explicitly examine the contrasting role of collaboration on the probability of project failure: on the one hand, collaboration is expected to raise the likelihood of project abandonment or delay as a result of coordination problems; on the other hand, collaboration reduces the probability of failure thanks to the acquisition of superior knowledge and capabilities. However, Cuijpers et al. (2011) refer to interdepartmental collaboration within the same firm and not to collaboration with other firms or pris. ...
... Cuijpers et al. (2011) explicitly examine the contrasting role of collaboration on the probability of project failure: on the one hand, collaboration is expected to raise the likelihood of project abandonment or delay as a result of coordination problems; on the other hand, collaboration reduces the probability of failure thanks to the acquisition of superior knowledge and capabilities. However, Cuijpers et al. (2011) refer to interdepartmental collaboration within the same firm and not to collaboration with other firms or pris. ...
... We notice that the variable Internal sources positively affects the probability of a failure in terms of Delayed. This result can be explained by considering that the more internal sources the firm has developed, the greater its innovation intensity, and thus the greater the likelihood of innovation delays (Cuijpers et al., 2011). This interpretation is in accordance with the fact that, taking the sector Retail as reference, more «innovative» sectors such as Manufacturing high-tech and Knowledge intensive services positively affect the likelihood of observing an innovation failure. ...
Article
In addition to its advantages, collaboration for innovation might increase the cost of innovation because of leakages of strategic information, appropriability problems and coordination difficulties. When collaborating with public research institutions (pris) the latter problem is expected to be more severe, thus raising the probability of project failure. The aim of this paper is to investigate whether and to what extent collaboration for innovation raises the probability of failure, i.e. delay or abandonment of innovative projects. It also aims to verify whether and to what extent collaboration with PRIs increases the likelihood of failure. We use data from the fourth Italian Community Innovation Survey (cis 4), which collected data for the three-year period 2002-2004. The empirical results support the hypothesis that collaboration significantly affects the probability of delay or abandonment of innovative projects. However, collaboration with PRIs does not increase the likelihood of failure compared to collaboration with other partners. Moreover, we find that delays are influenced by cost factors (such as lack of financial resources) or knowledge factors (such as lack of qualified personnel) while abandonment is significantly associated with market factors (such as uncertain demand).
... Collaboration harvests its benefits from differences in perspectives, knowledge and approaches, solving problems while at the same time offering benefits to all those involved in the process (Lozano, 2007). Collaboration requires exchange of information (Troy et al., 2008) and coordination of activities across interdependent organisational units, such as research and development, procurement, and sales (Cuijpers et al., 2011). ...
... Some of the benefits of collaboration include the ability to optimise both financial and human capital, including better access to markets and knowledge, enriched creativity, avoidance of confrontation, a decrease in the time needed to accomplish objectives, increased trans disciplinary learning, and making processes more efficient (Fadeeva, 2004). However, collaboration has inherent difficulties (Lozano, 2007) and costs (Cuijpers et al., 2011), such as: (1) Coordination costs, referring to operational dependence between the activities of the different actors (Genefke, 2000); (2) Vulnerability costs, referring to the safeguarding of important and unique resources (Genefke, 2000); (3) Information, referring to who gets the benefits and the real, or hidden, agenda (Chilosi, 2003); (4) Bargaining, how to split the gains (Chilosi, 2003); and (5) Free riding, where those who choose not to participate still get the benefits (Chilosi, 2003). ...
Article
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Sustainability aims at addressing environmental and socio-economic issues in the long term. In general the literature on sustainability has focused mainly on the environmental issues, whereas, more recently, a Circular Economy has been proposed as one of the latest concepts for addressing both the environmental and socio-economic issues. A Circular Economy aims at transforming waste into resources and on bridging production and consumption activities; however, there is still limited research focusing on these aspects This paper addresses the link between procurement and supply practices, and proposes changing from a traditional public procurement process, based on product-selling business models, to a more service- oriented system. The paper proposes a framework to include technical and non-technical specifications of product/service combinations that improve resource usage efficiency through recovery. The framework also considers socio-cultural specifications and physical and social proximity between the stakeholders in the procurement process. The framework is based on collaboration, which is a vital link between the public procurement process and the development of more sustainable business models, where the experience gained in the collaboration process serves as the bases for suppliers and procurers in improving their contribution to CE, whilst at the same time securing economic benefits for both parties. Although, in this process, the specification setting may take longer, the relationships between procurer and supplier tend to be longer lasting and stronger. This research shows that collaboration between procurers and suppliers throughout the procurement process can lead to reductions in raw material utilisation and waste generation, whilst promoting the development of new, more sustainable, business models.
... Thus, our goal is to explore the differences between the usage of ESM in China and that in other countries and to find innovative forms of its usage in Chinese organizations, which will provide implications for ESM designers and organizations. To investigate the innovative features of ESMs in China, we employ organizational information processing theory (OIPT) as the fundamental supporting theory in this research because this theory: 1) emphasizes the fit between the information processing needs and capabilities; and 2) is one of the main theories to explicate innovations in organizations [24]. Since information systems (ISs) (e.g., Enterprise Resource Planning (ERP) and ESM) can be viewed as the mechanisms of information processing, OIPT indicates that the innovative forms of ESM usage will emerge from the process of seeking the fit between the information processing needs and capabilities, which depends on organizational and environmental characteristics. ...
... This information processing perspective emphasizes that task performance is influenced by the level of fit between the information processing requirements of an organization's task and its information processing capabilities [27]. Existing research has widely used this theory in various fields, including supply chain management [57], innovation management [24], multinational enterprises management [58], and especially for IS research [29], [59], [60]. ...
Article
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Recent years have witnessed great progress in the adoption and use of emerging information technologies (ITs) in China. The growing popularity of enterprise social media (ESM) in Chinese enterprises and the resulted innovation practices offer a great opportunity to unearth and explicate related theories and assumptions. In this article, we employ the organizational information processing theory (OIPT) to study the innovative use cases of ESM in China and explore their possible contributing factors through a multicase-analysis approach. Specifically, we collect the data about the organizations using DingTalk in China as well as those using Workplace in other countries. After classifying generic use cases into two categories (basic and application), we apply this proposed classification scheme to analyze our collected case data. We identify and investigate the innovative use cases of ESM in the Chinese workplace and discuss the possible factors contributing to such innovations in Chinese enterprises. Our research makes significant contributions to the literature by studying the innovative use cases in the ESM context. In addition, our study provides valuable insights for practitioners to learn how to effectively design and implement ESM.
... In achieving continuous innovation that leads to sustained competitive advantage, firms need to coordinate resources available within the firm at its optimum level by strategically economising resources without wastage (Barney, 1991;Williamson, 1991). In fact, new product development (NPD) involves collaborative efforts from different functions across a firm, relying on the inputs of each employee with their expertise and knowledge (Tatikonda and Rosenthal, 2000;Gibson and Gibbs, 2006;Cuijpers et al., 2011). Human capital across different functions in firms, along with their knowledge acquired over time, is known to be a source of sustained competitive advantage (Hall, 1993;Coff, 1997). ...
... When a family firm takes innovation within firm, it reduces the transaction costs on the market, but brings the transaction costs within the firm. Existing research has shown how transaction costs occur during the process of innovation, as different functions are put to work together (Olson et al., 2001;Troy et al., 2008;Cuijpers et al., 2011). In this paper, I examine the transaction costs incurred in the process of NPD and how human assets can be economised in family firms to achieve innovation effectively and efficiently. ...
Article
Prior research has shown that family firms can innovate despite investing less in R&D. But research on how family firms effectively turn innovation input to innovation output is scant. Using a qualitative single case study of a family firm needing to constantly innovate to keep up with the competition and government regulations, I examine how a family firm collaborates internally through integration of human assets to achieve innovation. Using transaction cost economics approach, an inductive analysis from process research suggests that the process of economising non-family employees involves identifying the 'specificity' and 'deployability' of human assets in assessing new ideas for new product development. Failure to identify the deployability of human assets would result in high transaction costs, thus hampering innovation. This study contributes to existing literature about how family firms can do more with less by economising highly specified non-family human assets through the operationalisation of transaction cost economy.
... Management commitment is a key element to creating innovative environments in firms, often acting as a catalyst in innovation processes (De Brentani and Kleinschmidt, 2004;Daellenbach et al., 1999;Kleinschmidt et al., 2007). Previous studies report the positive influence of innovation strategies and information-sharing on innovation performance (Cuijpers et al., 2011;Peeters and Van Pottelsberghe, 2006), as well as the importance of culture (Hogan and Coote, 2014) and leadership in shaping firms' innovation outcomes (Love and Roper, 2015;Garcia-Morales et al., 2012). In this paper, we explore the influence of the organisational context on innovation outcomes. ...
... Creativity is enhanced if employees are exposed to a broad range of perspectives and information (Nonaka and Takeuchi, 1995), and the importance of information sharing and knowledge sourcing activities is well documented in the innovation literature (He and Wong, 2012;Love et al., 2011). Management can change structures and systems to facilitate inter-departmental and external collaborations which have been shown to positively influence innovation performance (Cuijpers et al., 2011;He and Wong, 2012). A workforce with diversity in skills, knowledge and experiences increase the possibilities for new combinations of internal knowledge through interaction and learning and the ability to exploit knowledge from external sources (Østergaard et al., 2011;Cohen and Levinthal, 1990), indicating the importance of encouraging collaboration and networking. ...
Article
The focus of this paper is on the relatively under-researched area of the influence of management on innovation activities for firms in emerging economies. Many emerging economies adopt a strategy of outward-oriented development with the aim to enhance innovation performance through Foreign Direct Investment (FDI) and international trade. However, attention should be paid to firm mechanisms, including intangibles, that may enable a firm to benefit from the more tangible performance-enhancing effects. It is through such a lens that we examine firm innovation in emerging economies, focusing on how variations in management experience, management practices and management incentives impact innovation performance. We employ a production function approach to identify the effect of the management environment on innovation diversity for firms in emerging economies. Our diversity of innovation measure takes account of five types of innovation activity, and is indicative of the degree of ‘innovativeness’ that the firm possesses. A Tobit estimation technique is employed. Innovation decisions typically involve managers as filtering mechanisms to consider a range of external and internal factors that enhance the likelihood of innovation outcomes. Our results indicate that management experience, management practices and management incentives are all important in determining innovation activities in firms from emerging economies. Our analysis reveals the importance of the management environment in explaining innovation differences at the level of the firm in emerging economies. Therefore, strategies to empower and support managers in emerging economies should be considered alongside outward-orientated development strategies.
... While a moderate body of research is concerned with cooperation management in general (Håkansson and Snehota, 1989;Henneberg et al., 2010), research on cooperation that aims specifically at fostering innovation has just recently received more attention (Clauss and Spieth, 2016;Gemser and Leenders, 2011;Rampersad et al., 2010). Several studies have examined how cross-functional and thus internal cooperation throughout the different stages of the innovation process influences project, innovation and/or firm performance (Cuijpers et al., 2011;Leenders and Wierenga, 2008). However, only a few studies have yet examined how external cooperation at different stages of the innovation process affects innovation success. ...
... Thus, compared to past research on external cooperation, we can give a more holistic view on cooperation patterns and thereby reveal that innovation capabilities play an important role in improving innovation success by external cooperation. This finding also addresses a recent call made by (Dahlander and Gann, 2010) for an extended conceptual framework to explain the collaborative activities in the innovation process. ...
Article
In times of saturated markets and decreasing product life cycles, the continuous development and successful launch of innovations are essential for profit-oriented organizations of any kind. Interorganizational cooperation enables companies to get better access to knowledge and capabilities in order to generate and successfully introduce innovations. While scientific research and management practice have acknowledged the importance of cooperation, little research effort is dedicated to empirically determine the effectiveness of cooperation intensity within different stages of the innovation process (cooperation stage) and with different partners (cooperation type). This article aims to fill these gaps by empirically examining the effects of cooperation intensity with different kinds of partners (horizontal, vertical and institutional cooperation) in different stages of new product development (concept and product development as well as implementation stage) on innovation capabilities and success of individual companies. Drawing upon a sample of 154 high-tech companies from the German B-2-B sector, our results reveal that it is in general beneficial for a company to cooperate. However, cooperation in concept and product development primarily improves a company’s innovation capabilities while cooperation in the implementation stage primarily enhances innovation success of a company. With respect to cooperation type, vertical, horizontal as well as institutional cooperation significantly enhance innovation capabilities and success of a company. However, cooperation with institutional partners was found to be the most important contributor throughout all stages.
... According to this stream of literature, integration plays an important role in producing more successful new products (Griffin and Hauser, 1996;Hoopes and Postrel, 1999;Ittner and Larcker, 1997;Pattikawa et al., 2006;Dayan, 2010). However, several other studies suggest that integration has a weak, or at best conditional, relationship with new product performance (NPP; Green et al., 2005;Rodriguez et al., 2007;Troy et al., 2008) and that there may be fundamental trade-offs and costs involved (Cuijpers et al., 2011). ...
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Purpose The purpose of this paper is to study the relationship between changes in relative influence between marketing and R&D and new product performance (NPP). The aim is to theorize and test whether relative influence changes are beneficial for NPP. Design/methodology/approach An international survey was sent out to pharmaceutical companies worldwide, resulting in 106 usable questionnaires from knowledgeable senior managers. A model is estimated that relates recent and historic changes in relative influence to NPP. Findings There is a positive relationship between recent relative influence changes and subsequent NPP. Moreover, this paper finds that having a history of adaptation with respect to relative influence can serve organizations to build up capabilities that, in turn, strengthen the positive effects of recent relative influence changes on NPP. Finally, the paper shows that relative influence changes and integration between marketing and R&D positively affect NPP jointly. Originality/value A core finding, that is quite counterintuitive, is that instability with respect to relative influence changes can help organizations to become more competitive in new product development.
... The importance of information sharing and knowledge sourcing activities is well documented in the innovation literature (He and Wong 2012;Love, Roper, and Bryson 2011). Firms can introduce and/or change management structures to facilitate inter-departmental and external collaborations which have been shown to positively influence innovation performance (Cuijpers, Guenter, and Hussinger 2011;He and Wong 2012). Firms may also introduce practices which delegate decision-making authority and responsibility down the hierarchy and facilitate employee participation through upward feedback mechanisms (Subramony 2009). ...
Article
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This paper identifies which types of organisational HRM changes are most beneficial for firm innovation by using a treatment effects analysis and a large dataset of firms from emerging economies. The paper finds that organisational changes have a positive disruptive effect on firm product innovation outcomes. However, there is an organisational change hierarchy - where some HRM practices are more important than others. HRM practices that involve engaging with external partners, via collaboration and outsourcing have the largest effect on product innovation outcomes.
... Changes in work procedures, if needed, are proposed by managers. Structures that are more bureaucratic and rigid inhibit employees from exchanging knowledge (Cuijpers et al., 2011). Greater importance and value is attributed to internal knowledge, experience and skills (Burns and Stalker, 1966). ...
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Purpose The purpose of this study, which consists of two parts, is to bring together literature on organizational design and learning of individuals in organizational settings. The literature suggests that learning takes place in organic and less-structured organizational designs, whereas empirical research provides conflicting evidence. This first part theorizes about the influence of mechanistic vs organic designs on three different aspects of employees’ learning behavior: knowledge sourcing, learning styles and learning loops. Design/methodology/approach This paper is built on previous research on the impact of structure on learning and theorizes about the relationship between mechanistic/organic design and specific learning behavior at work. Findings Four propositions are developed in this paper, regarding how a different structure leads to a different learning behavior. Mechanistic structure is associated with internal learning, independent learning and single-loop learning, whereas organic design leads to external learning, collaborative learning and double-loop learning. Research limitations/implications Because the paper is conceptual in nature, the propositions are in need of empirical validation. Some directions for empirical testing are proposed. Practical/implications For an organization design practice, managers should be aware of the distinct impact different structures have on individual learning at work. Furthermore, the appropriate organizational structure for learning must be considered in the broader context of contingencies. Originality/value This paper contributes to the organizational design literature and to the organizational learning theory by conceptualizing the relationship between structure and learning of individuals at work.
... Such forms of departmentation (Young et al., 1981) or departmentalization (Moon, 2013;Raju et al., 2011), however, have often been found to have a negative impact on organizational and management performance (Mastenbroek, 1990), and some scholars have even gone as far as stating that functionalist perspectives, structures, and activities necessarily lead to decline (Fowler, 2003, p. 139). Crossfunctional approaches to-former-management functions (Cooper et al., 2008;Perez-Freije and Enkel, 2007;Ragatz et al., 2002;Wind, 2005) therefore appear as promising alternatives, however, not always unambiguously so (Cuijpers et al., 2011). ...
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In this article, we draw on theories of social differentiation to show that functional differentiation is not about the division of work and organization, but rather about a multiplication of horizons for decision-making. We argue that a systematic management of functional differentiation makes organizations smarter and more flexible. We corroborate this claim by demonstrations of how a functional approach to functional differentiation facilitates the design of new or the further development of well-established management tools and research agendas in fields such as entrepreneurship, strategy, and human resource management. Keywords: Functional differentiation; social theory; management theory; strategy; entrepreneurship; human resource management.
... Among the drawbacks of ODMI, one could enlist the organizational costs, time and efforts for collaboration (e.g. meetings, workflow coordination, handling decision making by teams with conflicting goals), conflicts over resources and technical issues, budget overruns and project failure (De Luca and Atuahene-Gima, 2007;Troy et al., 2008;Ernst et al., 2010;Cuijpers et al., 2011). These drawbacks are likely to affect several manufacturing performance dimensions negatively. ...
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Purpose The purpose of this paper is to propose that the effectiveness of organizational design-manufacturing integration (ODMI) practices is contingent upon the degree of complexity of the manufacturing environment. The paper submits that the level of use of ODMI ought to match the level of complexity of the manufacturing environment. The paper puts forward the hypothesis that when a misfit occurs between ODMI and complexity (high use of ODMI practices in low complexity environments or low use of ODMI practices in high complexity environments) manufacturing operational performance declines. Design/methodology/approach The paper tests the hypothesis based on a survey database of 725 manufacturers from 21 countries. The measurement model was assessed with confirmatory factor analysis and the hypothesis was tested with linear regression. Findings A misfit between the level of ODMI use (job rotation and co-location) and manufacturing complexity (product and process complexity) has a negative effect on manufacturing operational performance dimensions of quality, delivery and flexibility. Post hoc analyses also suggest that firms that operate in different environments in what concerns the rate of change in process technologies suffer differentiated negative impacts of ODMI-complexity misfit. Research limitations/implications Future studies could extend this research to other dimensions of design-manufacturing integration, such as technological practices. Practical implications Manufacturers with high levels of complexity should invest strongly in ODMI practices. However, manufacturers with low levels of complexity should invest in these practices with caution since the expected payoffs may not outweigh the effort. Originality/value The study assesses fit as a simultaneous set of contingency factors, applying profile-deviation analysis to ODMI and operational performance relationships. By focusing on plant-level manufacturing complexity, this study complements existing studies of product development complexity which tend to focus on project-level complexity.
... Rubera et al. (2012) propose that excessive integration could result in negative effects for the NPD, such as overwhelming people with many meetings; agreeing about a group decision; and generating premature decisions. Cuijpers, Guenter, and Hussinger (2011) note that cross-functional integration facilitates innovation performance, but can increase product development time. ...
Article
The literature on new product development (NPD) contains several studies of management practices involved in different types of innovation. However, few studies focus on how cross-functional integration affects incremental and radical innovation product projects. The purpose of this study is to explore this aspect, from a qualitative perspective, through case studies of four high-tech firms in Brazil. Eight NPD projects were studied. The findings suggest that radical and incremental innovation NPD projects require different management practices in the studied cases. In incremental NPD projects, greater integration efforts may not be necessary. However, the following practices should be adopted in projects involving radical innovation product projects: intense involvement of technical teams, flexibility in the early stages of NPD, and geographical separation between the development team and other departments of the firm. Moreover, the application of these same practices in projects of incremental innovation in NPD may not bring positive results.
... Some of the benefits of collaboration include the ability to optimise both financial and human capital, including better access to markets and knowledge, enriched creativity, avoidance of confrontation, a decrease in the time needed to accomplish objectives, increased trans disciplinary learning, and making processes more efficient (Fadeeva, 2005). However, collaboration has inherent difficulties (Lozano, 2007) and costs (Cuijpers, Guenter, & Hussinger, 2011), such as: (1) Coordination costs, referring to operational dependence between the activities of the different actors; (2) Vulnerability costs, referring to the safeguarding of important and unique resources; (3) Information, referring to who gets the benefits and the real, or hidden, agenda; (4) Bargaining, how to split the gains; and (5) Free riding, where those who choose not to participate still get the benefits (see Chilosi, 2003;Genefke, 2000;Lozano, 2008). Figure 3 presents the ProBiz4CE framework, which includes technical, non-technical and socio-cultural specifications and sharing responsibility of the product/service combination. ...
Technical Report
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As part of the Life+ REBUS project in the Netherlands, organisations and consultants working on pilot evaluations in the Green Deal on Circular Procurement collaborated to have access to knowledge and experience on sustainable procurement and find the case study companies.Utrecht University researchers Sjors Witjes and Rodrigo Lozano analysed two case studies by carrying out each five interviews with people related to the procurement process.. Framework This report presents the framework that was developed to link sustainable public procurement with the delivery of Circular Economy (CE) in the Netherlands. The framework emphasises the promotion of Resource Efficient Business Models (REBM) through Sustainable Public Procurement (SPP) by defining technical, non-technical specifications for improved recovery rates, and socio-cultural specifications for improved collaboration during the procurement process. The collaboration between procurement and business models for Circular Economy (ProBiz4CE) framework was developed through a literature review on SPP, Sustainable Business Models and CE. The ProBiz4CE framework was designed to be holistic, dynamic, and practice oriented, and be applicable to different cases in the Netherlands and the EU. Three conclusions From the application of the framework in these two case studies we can draw three major conclusions. Firstly, integrating sustainability into the procurement process specifications and the organisational system of companies will have to be adjusted on four levels. First, their products or services. Second, the processes leading to these products/services; followed by the business models enabling these processes and product/services, and lastly the strategy and vision of each company. The experiences and knowledge coming from a sustainable procurement project are not communicated efficiently throughout the organisation. More focus on these learning processes can help companies realise greater financial and organisational benefits from their involvement in circular procurement processes. Secondly, collaboration with other companies, leading to alliances in the value chain, network or the wider society, is an important first step towards contributing to CE. Alliances determine business models and can lead to a formal business transaction. The informal alliances between actors serves for, for example, network building and knowledge exchange, as a preparation for formal alliances in the future. Collaborative relations increase the level of cohesion in groups and their members and emphasise the trust between value chain actors as well as transparency of the information between different actors as a prerequisite for sustainable public procurement. And lastly, uncertainty about the future makes it complicated to know with certainty possible levels of resource efficiency of products or services during the requirement development phase of the procurement process. Despite the current focus on indicators for circular products and service, non-technical specifications on depreciation of the products and shared risk for residual value should be included emphasising the need for an indicator based on scenario planning on both environmental and economic issues. Creativity, flexibility, and cooperation of legal advisors and lawyers are key to challenge current procurement legislation.
... Typical market information includes information about customer needs and complaints as well as information about buyer behavior, market segment characteristics, competitor moves and business development (Jüttner, Christopher, & Baker, 2007). Recent studies confirm that better utilization of market information in operational planning and in new product development results in considerable improvements in customer service satisfaction, more successful product launches and cost savings (Cuijpers, Guenter, & Hussinger, 2011;Korhonen-Sande & Sande, 2014). ...
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This study aims to enrich international business theory and practice by being the first study to investigate how both inter- and intra-organizational managerial trust in the source of market information contributes to its’ perception and use and by examining the contingent role of structural fluctuations and market turbulence. Structural equation modelling of cross-sectional survey data of 158 firms in Hungary shows that trust is an important driver of utilization of market information. Perceived information quality mediates the effect of trust on information use partially when it derives from intra- and fully when from inter-organizational source. When unpredictable changes occur due to structural fluctuations of the firm, the role of trust in quality perception of market information becomes more prominent. However, changes in the environment due to market turbulence do not moderate the effect of trust on perceived quality of information from inside, only from outside the firm.
... This enables an efficient processing of information and sharing of existing knowledge, which form the basis for exploitative innovation (Jansen et al., 2006). However, overly crossfunctional interactions may also entail distinct costs caused by, for example, more time-consuming decision-making processes or an increased failure rate of innovation projects (Cuijpers, Guenter, & Hussinger, 2011;Slotegraaf & Atuahene-Gima, 2011). Moreover, a cooperation that is too intense might lead to a lack of tensions or rivalry, both of which are required to promote the innovative behavior of the cooperating partners (Bengtsson et al., 2010). ...
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Despite the growing number of articles on coopetition, research in the area still lacks insights into this phenomenon on an intraorganizational level. Therefore, this study examines the effect of cross-functional, firm-internal coopetition on organizational ambidexterity (i.e., exploitation and exploration) and the moderating role of social cohesion. Drawing on organizational learning theory and analyzing survey data obtained from 392 department heads and project leaders of new product development teams, we demonstrate that cross-functional coopetition has a significant positive effect on exploratory innovation. Moreover, we find support for the moderating influence of social cohesion on the relationship between coopetition and exploitative innovation. These results not only provide valuable insights for managers in the fields of new product development and innovation, they also highlight the need for further research on the dynamic interplay of competitive and cooperative elements within firms.
... Despite the benefits of efficient cross-functional coordination in terms of improved ability to handle complexity and enhanced responsiveness (Holland et al., 2000), cross-functional coordination can encounter obstacles simultaneously from different functions such as conflicting organizational goals and lack of cooperation (Wall and Lepsinger, 1994). In this instance, crossfunctional coordination can be both difficult and inefficient (Galbraith, 1994, Kahn andMentzer, 1998), which may negatively impact on efficient decision-making, and increase new product development failures and conflict over resources (Cuijpers et al., 2011, Troy et al., 2008. For example, the rapid flow of information from various functional units may affect the ability of firms to make decisions, process information and prioritize tasks (Eppler andMengis, 2004, Klingberg, 2009). ...
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As the gap between accelerating rate of change and organizational capability in responding to it widens, managers face increasing challenges to coordinate and align diverse intra-firm functions. Although coordination across functions in an organization is necessary for integrating complex resources, little is known about the internal conditions of a firm in which cross-functional coordination influences marketing adaptiveness. We use fuzzy-set qualitative comparative analysis to analyze survey data of 274 managers in Egyptian firms operating in uncertain environments based on the motivation–ability–opportunity framework and configuration theory. The findings show that the causal pathways leading to cross-functional coordination and marketing adaptiveness can be enhanced by resource dependency, cross-functional teams, multifunctional training, and management support. In particular, management support is a crucial condition for cross-functional teams and multifunctional training. While resource dependency is an important internal factor for coordination, a high resource dependency can result in a negative effect on marketing adaptiveness.
... (1) within the same BU; (2) across different BUs. The former entails local interactions with colleagues of other FDs that are co-located (Song et al., 1997;Cuijpers et al., 2011); whereas the latter require distance communication and interactions between colleagues that are located in different countries, hence implying cultural communication distance, as well as physical distance and travel costs (Kogut and Zander, 1993;Asmussen et al., 2013;Reilly and Scott, 2014). This means that the latter type of centrality may admittedly be subject to higher costs associated with innovation search than the former type. ...
Article
Recent research on employee-level innovation focuses on scientists’ ability to source advanced knowledge and use it to create new ideas and innovation within a firm. The present paper introduces a new dimension to this literature: functional departments. We argue that functional centrality, namely the extent to which a functional department is central in the intra-organizational network, affects employees’ innovation intensity. We make use of a rich novel dataset at the employee-level for the Telenor Group, based on a large-scale survey among nearly 16,000 employees in all business units and functions of the company. The empirical results point out that employees’ innovation intensity is higher in departments that are centrally positioned in the company's internal network. Task characteristics such as quality orientation, entrepreneurial attitude and result pressure moderate the relationship between centrality and innovation.
... Differences in thought worlds, however, can also pose a challenge for companies (Keller 2001). In this context, some researchers have investigated the negative relationship between cross-functional cooperation and new product development (Olson et al. 1995;Sethi 2000;Keller 2001;Cuijpers et al. 2011;Homburg/Kuehnl 2014;Huang/Tsai 2014). ...
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This paper empirically examines the relationship between sales-service cooperation quality and annual total salesperson profit. Moreover, this paper investigates the moderating role of salesperson’s attitude towards service engineers. Based on qualitative interviews, the authors developed a conceptual model. To test the proposed model, the authors analyzed survey data from almost 300 salespeople of a solution provider in the construction industry.
... The options are: (i) "Introduce new technology and equipment(s) for product or process improvements" (ii) "Introduce new quality control procedure in production or operations" (iii) "Introduce new managerial/administrative processes" (iv) "Provide technology training for staff" (v) "Introduce new product or new service" (vi) "Add new features to existing products or services" (vii) "Take measures to reduce production cost" and (viii) "Take actions to improve production flexibility". According to Cuijpers et al. and Zhai et al. [36,37], we use the options (v) and (vii) to indicate the emblematical innovation of enterprise because the conversion of creative ideas into new products and processes has long been considered a central challenge in innovation [38]. The two kinds of activities basically represent the two categories of technological innovation, namely, product innovation and process innovation. ...
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Common acts of corruption such as bribery and informal payments are virtually illegal everywhere and prevalent in every corner of the world. This paper aims to contribute to the literature by considering the influences of corruption and female top management on the likelihood of technological innovation by using a nationwide survey and a sample of private small-medium sized companies (SMCs) in China. Interestingly, we find that female top managers have less enthusiasm for innovation than their male counterparts. Corruption, when measured by informal payments, poses a positive effect on the possibility of innovation after controlling for firm-level characteristics. However, female executives may weaken the positive innovation effects caused by corruption. Furthermore, one of our implied findings is that a firm with a female top manager is less likely to engage in corruption because this may raise the costs of doing business without any benefits for innovation. The results collectively illustrate the role that female top management and corrupt actions have in shaping innovative activities of private SMCs, and suggest that bribe-combating actions in firms are necessary, such as a framework for rationalizing the proportion of female executives involved in management.
... As such, incremental inventions tend to be more extensively rooted in the same industry, whereas more complex, path-breaking inventions are likely to have a long list of antecedents from different sectors. A successful combination of knowledge from multiple technological domains requires a certain level of absorptive capacity that firms may not have or the assimilation of external knowledge may take extra investment and considerable time to develop (Cuijpers et al. 2011). Thus, if firms lack complementary assets such as human and financial capital, the benefits of the resulting inventions are likely to be difficult to sufficiently appropriate (Nemet and Johnson 2012). ...
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This paper analyzes the relative importance of the spatiality of inventor collaboration links for the quality of invention. It uses patent citation and renewal data to estimate (expected) economic values for a sample of US biotechnology patents, controlling for a set of inventor and owner characteristics. The investigation extends the research by differentiating the quality of knowledge flows while at the same time refining patents as a source of innovation information. The results of the clustered logistic regression and continuation ratio models provide some support for the hypothesis that interregional (non-local) collaboration results in commercially more valuable inventions relative to patents that are product of intraregional (local) collaboration. The same empirical results also indicate that (1) inter-industry (related) knowledge flows contribute to the patent value more than inter-industry (unrelated) or intra-industry knowledge flows and (2) general-purpose technologies/products as measured by citations of patented inventions received from diverse sets of industries are indicative not only of technological/scientific quality, but also of the economic value of patented inventions. These results are robust in different citation-window designations, exclusion of self-citations, different regional definitions and different patent classifications.
... But, whether it is about higher education institutions or business organizations, research in the field of collaboration has admitted that, despite thorough existing studies, there are certain delicate areas which have not been investigated extensively. Most of them are related to the following issues (Cen, Ruta, Powell, Hirsch, & Ng, 2016;Cuijpers, Guenter, & Hussinger, 2011;Golovchinsky et al., 2009;Webb, Nemer, Chizhik, & Sugrue, 1998): identifying motivators for people's collaboration, identifying the additional tools required to enhance existing methods of collaboration, given a specific domain; ways to evaluate various aspects of collaboration, including system and user performance; ways to measure the costs and benefits of collaboration; when collaboration is beneficial and when it is not; ways to measure the performance of a collaborative group; ways to measure the contribution of an individual in a collaborative group; the types of algorithmic mediation that can improve team performance. The extent to which people use modern collaboration tools can also explain their work engagement, as those who are more involved and want to get high performances focus on interdisciplinary work teams, for instance. ...
Article
Over the recent years, the communication and collaboration based on online applications has been ubiquitous, being used in teaching, learning and research. In this context, the present study analyses the attitudes and perceptions of the teaching staff and researchers from several higher education institutions in Romania with respect to online collaboration and communication applications, and the impact these applications have on their work (teaching and research). The findings have revealed that the email is still the main communication and collaboration application in both teaching and research, but other, newer applications are not far behind. The extent to which these applications are accepted and used seem to depend directly on personal variables, the most significant ones being the technology anxiety and self-efficacy. The relationship between personality traits and the use of online communication and collaboration applications in the professional academic life has been shown to be mediated by work engagement, which enhances the teachers' personal resources, enhancing their levels of achievement. The findings have also demonstrated that the use of online communication and collaboration applications is part of the factors predicting the teachers' and researchers’ success in academic life.
... It is well documented in the literature that firms' ability to improve efficiency, productivity and to innovate depends upon the entrepreneur's abilities and their innovative behavior through knowledge and skills (He & Wong, 2012;Love et al., 2011;Roper et al., 2008). Management experience and skill workforce influence innovation positively and increase the possibilities to exploit knowledge (Cohen & Levinthal, 1990;Cuijpers et al., 2011). Moreover, employees with skilled human capital upsurge creativity and innovation (Kang et al., 2007;Lepak & Snell, 1999). ...
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It is widely believed that innovation drives growth at macro level and improves firm's productivity and performance at micro level. The Middle East and North African (MENA) region lagging behind in terms of innovation activities. The objective of the study was to investigate the effect of managerial experience on innovation activities in Middle East and North African (MENA) region using World Enterprise Survey data. The study utilized the multilevel logistic regression model. The innovation is measured through the survey question "during the last three years, has this establishment introduced new or significantly improved products or services" and the managers' experience is measured by "how many years of experience working in this sector does the top manager have". The results of multilevel logistic model indicate that experience of the manager has positive impact of the innovation.
... In addition, financial management practices (FMPs) cover vast bodies of literature. Several business organizations, either financial or non-financial, deal with financial matters as identified by the earlier researchers (Cordón-Pozo et al., 2006;Cuijpers et al., 2011). Various factors play their role in affecting the departmental collaboration (Quinlan & Åkerlind, 2000;Maldonado-Guzman et al., 2018). ...
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The purpose of this research is to investigate the relationship between strategic planning as business management dimensions and financial management (FM) practices. To achieve this objective, employees from various firms working in Kuwait are under observation. A survey questionnaire is developed, considering fifteen items of strategic planning and five for financial management practices. A final sample of 276 respondents is considered for investigating the empirical relationship between the selected variables. Both descriptive and traditional linear regression modelling techniques are applied. However, the study findings are pre-tested through model specification for all five items of FM. It is found that various strategic planning items are significantly associated with financial management proxies including staff turnover, safeguarding physical and financial assets, and development of financial budgets in selected firms. Significance of the study can be viewed as emerging contribution in the present literature while assimilation strategic planning with financial management too. Besides, the study findings are useful for both strategic planning and finance departments in the business organizations for their better future development. Limitations of the study cover limited sample size and application of traditional method of analysis. Future studies should be in direction while addressing these boundaries.
... he collaborative development of manufacturing services industry and manufacturing industry is a practical problem in economic development [1][2]. As a pillar industry of economic growth, the manufacturing industry has not got rid of the issues of low technological content, low added-value products, the low-end quality, so the innovation of manufacturing industry is imminent [3]. The disparity of innovative resources, poor coordination and other issues in the new situation are particularly prominent, which have become the key obstacles in the implementation of innovation-driven countries [4]. ...
Article
Collaborative innovation has a significant impact on the efficiency of manufacturing services and manufacturing innovation. In this paper, a collaborative innovation model of manufacturing services and manufacturing is constructed based on the two-dimensional asymmetric evolutionary game basic model. The stable evolution strategy of the model is to be found through the solutions to the replicator dynamic differential equation of both sides of the game. The results show that on the one hand, producer services can rely on the carrier of knowledge capital and human capital to link to the manufacturing process from front to back, and form the forward and backward spillover effect. On the other hand, the knowledge elements in producer services, especially tacit knowledge, are transmitted through the modern network under the common industrial culture atmosphere in the process of continuous industrial interaction and industrial integration, which can promote the sharing and transfer of knowledge, produce interactive innovation, and finally promote the innovation of value chain.
... Although there are some studies investigating the connection between interfirm linkages and managerial (Meuer, 2014) and process (Cuijpers, Guenter, & Hussinger, 2011) Despite an increasing number of studies exploring how firms deal with external relationships with diverse innovation partners (Laursen & Salter, 2006), the interplay of internal and external linkages and their impact on innovation performance are still poorly explored (Colombo et al., 2011). As Tödtling, Lehner, and Kaufmann (2009) volume of exchange and frequency of interaction between firms-are likely to be useful in guarding against opportunism and facilitating sustainable alliances, which brings about a renewal in institutional and managerial innovation (Dyer & Singh, 1998;Tomlinson, 2010). ...
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Few studies have researched how the linkages of tourist firms are related to the types of tourism innovation. Therefore, an organizational information processing theory perspective, a case study approach, and a focus group method were adopted in the Pearl River Delta area (China) to discover how different types of firm linkages influence tourism innovation. The findings reveal that tourist firms have four main forms of linkages and that they have differentiated impacts on innovations. Intracompany linkages are beneficial for institutional, managerial, and product innovations; both intercompany and intrasectoral linkages encourage marketing and product innovations, whereas intersectoral linkages facilitate process innovation and product innovation. These findings fill a research gap in the knowledge of firm‐based innovative linkages and explore the importance of linkages between tourism services and tourism manufacturing.
... new behaviors (Jassawalla and Sashittal, 1999). Second, designing the structural and infrastructural mechanisms necessary for high levels of integration among collaborative groups can be costly and time-consuming (Cuijpers et al., 2011). Finally, previous evidence shows that frictions between different functional backgrounds (e.g., technical and non-technical personnel) and perspectives are commonly observed in cross-functional collaborations (Cronin and Weingart, 2007;Majchrzak et al., 2012). ...
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Purpose – The authors examine the extent to which a controller ’ s involvement in project functions (namely definition and scope, organization, constraints management and risk management) cascades down to project performance. Design/methodology/approach – The authors test the study ’ s framework using survey data from a sample of project leaders in German and Swiss firms. Responses were analyzed using the partial least squares (PLS) technique. Findings – The authors find that controllers contribute to project success via the previously described project functions. Further, the study reveals the crucial role of controllers in managing uncertainty and project risks. Research limitations/implications – Although the arguments used in this research were not country specific and suggest that the findings of this study also apply to the controller professional in general, this study clearly acknowledges that further research is needed to address the effects of this role in different jurisdictions given the specific characteristics of controllers acting in German-speaking countries. Practical implications – The authors provide insights on the role of controllers at an operational level, like project management, highlighting the need for controllers to support an effective project governance. Originality/value – The authors add to the literature by examining the role of controllers in highly knowledge-intensive, highly pressured, task-driven, interdependent and dynamic operational settings, thus contributing to a better understanding of how controllers function at an operational level. The authors also strengthen a broader role of controllers in project management that goes beyond their historical controlling activities to include more modern functions, extending previous studies analyzing their professional identity.
... It is well documented in the literature that firms' ability to improve efficiency, productivity and to innovate depends upon the entrepreneur's abilities and their innovative behavior through knowledge and skills (He & Wong, 2012;Love et al., 2011;Roper et al., 2008). Management experience and skill workforce influence innovation positively and increase the possibilities to exploit knowledge (Cohen & Levinthal, 1990;Cuijpers et al., 2011). Moreover, employees with skilled human capital upsurge creativity and innovation (Kang et al., 2007;Lepak & Snell, 1999). ...
Article
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South Asian Association for Regional Cooperation (SAARC) is lagging behind in terms of human capital and innovation activities. The ability to innovate depends upon the knowledge, skills, training and experience of the worker. It is widely believed that innovation drives growth and play important role in firm survival. The objective of the study was to investigate the effect of a firm's level human capital on innovation activities in South Asian Association for Regional Cooperation (SAARC) region using World Enterprise Survey data. The study utilized the multilevel logistic regression model. The innovation is measured through the survey question "during the last three years, has this establishment introduced new or significantly improved products or services" and the human capital is measured by "proportion of skilled workers out of all production workers". The results of the multilevel logistic model indicate that human capital has positive impact on the innovation.
... Similarly, with other AI technologies being deployed in the public sector, we argue that, while the peculiarities of a given technology might be distinct, it is important to design a single BMC that is versatile and comprehensive enough to cover all relevant key components. By following the standardized design principles, the BMC of public agencies contributes to achieving economies of scale and facilitates the pooling of resources [10]. We suggest that the BMC of public agencies be generic enough to be applied to various levels and types of public agencies. ...
... It also exists beyond the firm-level at lower organizational levels as well, such as the department-level. Without a sufficiently high degree of AC, the costs of coordination associated with integration can have negative effects on innovation performance that are not outweighed by its benefits, like overspending, project delay, and project termination (Cuijpers et al. 2011). However, while research intensely investigated AC (e.g. ...
Article
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Integration of organisational units has been extensively researched in various streams of management and organization sciences. It is very important whenever knowledge differences have to be overcome due to functional departmentalisation and the ensuing knowledge specialisation. However, extant literature does not yet appreciate the mediating role of absorptive capacity (AC) in this context. We argue that departments use integration mechanisms in order to develop and maintain such an organisational capability to absorb knowledge from other departments, so that integration can succeed to increase innovation performance. Our unique dataset of Italian manufacturing firms from various industries allows us to study this in the context of the integration of research and development (R&D) and marketing and sales (M&S) departments. Thereby, we provide empirical evidence on the mediating role of AC. We find evidence that R&D departments build AC via formal cross-functional integration, while M&S departments do so through informal integration. Moreover, we provide evidence of AC’s mediating role for the relationship between cross-functional integration mechanisms and innovation performance. Our findings also reveal significant differences between R&D and M&S functions in terms of effect sizes and significance levels. AC of R&D departments has a significant and substantial effect on innovation performance and thus effectively acts as a mediating variable, while in case of M&S departments we observe a significant direct effect between formal cross-functional integration and innovation performance without any mediation by AC.
Article
Purpose This study aims to show how to improve supply chain performance through the relationship between firms and their customers. In doing so, this study examines the impact of a firm’s relationship commitment and customer integration on supply chain performance. The aim is to detail a way to increase supply chain performance through the relationship between companies and their customers. Design/methodology/approach The empirical analysis was based on a survey on 205 corporate-Egypt multi-industry businesses including manufacturing, retailing, wholesaling and shipping services firms. Data collection was through a questionnaire survey distributed to 1,264 senior managers with responsibilities in the field of supply chain, logistics, purchasing, marketing and operations and with a 16% response rate. A conceptual model was designed, and hypotheses were analysed with covariance-based structural equation modelling. Findings This study makes a significant contribution to the supply chain management (SCM) literature by examining the influence of firms’ relationship commitment on supply chain performance in the supply chain management context by means of the disaggregation of customer integration into two dimensions: integration with customer (IWC) and integration by customer (IBC). The findings indicate that firms’ relationship commitment does not relate directly to supply chain performance, but rather indirectly through integration both with and by customers. Research limitations/implications This paper outlines a conceptual model in which firms’ relationship commitment relates indirectly to supply chain performance. The model also sheds light on the fact that IWCs precedes IBCs in supply chains. This finding suggests that firms should focus on customer integration to improve supply chain performance. Practical implications This study offers a particularly refined understanding of the reasons behind and situations in which supply chain integration (SCI) enables firms to gain superior supply chain performance. In fact, firms focusing on customer integration may improve their supply chain performance, thus enhancing the value of the supply chain. Originality/value This study contributes to the literature by considering a relational view of the SCI-Performance path. In particular, by disaggregating customer integration into IWCs and IBCs, this paper verifies customer integration acting as a mediator between relationship commitment and supply chain performance in supply chains.
Article
Project design has to be coordinated in an inter-functional team. This is critically challenging due to the knowledge-intensive nature of project design, the occupational boundaries between functions and time pressure facing project teams. This study aims to tackle this challenge by identifying the configurations of coordination mechanisms, i.e. mechanistic and organic coordination, adopted by inter-functional teams in the face of a high level of time pressure. A questionnaire-survey of 311 respondents from 46 building design projects was undertaken in China. Data were analyzed through a configurational analysis approach. The results show that two configurations could equally lead to high performance. Under a high level of time pressure, the configuration of formal coordination, digitally-mediated structured coordination, and cross-functional meetings is helpful to achieve high project design performance. If mechanistic coordination is absent, team members could equally accomplish superb design performance through organic coordination. This research contributes to the body of knowledge by presenting how inter-functional teams configure coordination mechanisms to deal with knowledge-intensive project design in the face of time pressure.
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A real-life case study presented in this chapter reports on how organizational network analysis approach was used in a medium-sized Italian company with circa 100 employees to examine how the company employees were connected by shared values at work, what these values are, and whether and how their value connectedness impacted the quality of their collaboration. The findings indicate that there was a positive correlation between shared work values and work collaboration, present benchmarks for network parameters, as well as propose macro-categories of work values. To the best of the authors' knowledge, this is the first study to use the network-analysis approach to explore shared values and employee collaboration at work. The chapter should be of substantial interest not only to academic scholars but also to organizational leaders and HR practitioners.
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Organizational survival, success and effectiveness depend on the ability of the organization to adapt to continuous challenges, competition and change. However, improving and changing organizations demand properly understanding and diagnosing them. So, where does diagnosis start and how can we measure effectiveness? Diagnosis starts with assessing key tasks, structure, people relationships, motivation, support, management leadership, attitude towards change and performance to identify gaps towards effectiveness. Effectiveness is evaluated in terms of the extent to which people have the right skills and competencies and are trained and strategically managed to enhance profitability (finance), the organization’s marketing strategy, operations/service and, measurement of the corporate/business development and growth achieved as a result of planned efforts to ensure organizational viability, stability and maturity. This study uses an integrated system evaluation process to diagnose the extent to which key tasks, structure, people relationships, motivation, support, management leadership, attitude towards change and performance impact on organizational effectiveness respectively. The population for the study comprised of all staff in a provincial trade and investment promotion agency in South Africa and a consensus approach was used through a cluster sampling technique, which secured an 85.4% response rate. In this quantitative, cross-sectional study data was collected using questionnaires and analyzed using both descriptive and inferential statistics. The results reflect that the diagnostic variables impact on organizational effectiveness in varying degrees. The important diagnostic dimensions and areas for improvement are identified and suggestions for corrective action are presented in order to enhance overall organizational effectiveness.
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A stakeholder approach to innovation is concerned with people and organisations that make innovation emerge and with the views of all those who are affected. Because value is a perception developed among internal and external stakeholders, not an objective feature of an innovation, the key question is ‘who’ rather than ‘what’ creates value. Who perceives the value created by innovation? And who participates in creating the conditions in which this value is developed and perceived? Abundant attention has been paid to the value perceived by the construction industry, but there has been significantly less interest in the value perceived by external stakeholders – those who are not traditionally considered as residing inside the construction sector. Based on data from a large number of case studies, the role of different stakeholders in the process of value creation is analysed empirically.
Article
This article presents empirical research that seeks to investigate the principles of management that lead towards successful multi-sector collaboration through the analysis lens of effectuation theory. The target of this empirical research is a destination marketing organization (DMO) considered to be a classic example of multi-sector collaboration focusing on the destination management performed by DMO as a case study. DMO Roppongi in Tokyo has been selected as the sample for this empirical research, and in particular, Nogi Shrine (Nogi-Jinja) has been selected as a venue for inbound meetings and a successful case of destination management. In Japan, shrines are considered as sacred sites; hence, the research began with the question: ‘Why was Nogi Shrine provided as a venue?’. We interviewed both the executive director of DMO Roppongi and the contact person at Nogi Shrine and conducted a qualitative analysis by focusing on the management features emerged during the process of venue selection. In the world of start-ups, entrepreneurs are required to search for business opportunities proactively, but this research has investigated that in the multi-sector collaboration, the abundant resources are mainly possessed by the participating stakeholders that can be associated with the business opportunities. Hence, the key management point in this case is the impartial use of the resources ‘that are already there’ and available for use. This research has formulated this discovery, as ‘the O-Bento principle’ in line with the effectuation theory.
Article
Purpose This article provides the first systematic review of literature on effective organisational practices for reducing innovation project uncertainties to promote project performance. Innovation is the lifeblood of organisations, while simultaneously being one of the most challenging processes to manage. This systematic review seeks to examine best practice for reducing uncertainties and thus mitigate the high failure rates in innovation projects. Design/methodology/approach This paper provides a systematic review of the literature on innovation project management and encourages an understanding of how intra-organisational collaboration reduces uncertainty and thus increases project performance. Findings Based on an analysis of the systematic literature review findings, the impact of intra-organisational collaboration in reducing uncertainties in innovation projects is uncovered. Three types of project uncertainties were found to be dominant in the context of innovation project management: task, technological and market uncertainties. Five dimensions of intra-organisational collaboration are also identified, namely collaborative relationship, collaborative leadership, communicating and sharing information, trust formation and joint decision-making. Originality/value The authors situate five intra-organisational collaboration dimensions as key mechanisms that yield organisational learning as an outcome. On the other hand, they also uncovered that organisational learning is a key enabler in the relationship between intra-organisational collaboration and task, market and technological uncertainties reduction. Therefore, intra-organisational collaboration is identified as a critical practice in enhancing the performance of innovation projects. The study proposes a multi-dimensional conceptual model, providing a mechanism for furthering a research agenda for improving the performance of innovation projects.
Article
Purpose Increasing demographic diversity within societies and workforces causes challenges with regard to the innovation performance of companies. By definition, innovation communities nowadays are composed of members with diverse function background and age diversity. The challenging question is how to manage diverse corporate innovation communities. The purpose of this paper is to find out which factors determine the success of corporate innovation communities in times of demographic shifts. Design/methodology/approach The empirical field to answer the research question are three corporate innovation communities in companies of different industries and size. Multiple case study methodology is applied to gather and analyse the data. Findings The study presents an empirically derived framework to structure success factors of diverse corporate innovation communities chronologically in the three phases of preparation, execution and finalization of a community work process. The success factors are described in detail and finally a time sequential guideline for those who are responsible for community management in demographic change is provided. Research limitations/implications It is contributed to the literature on innovation communities and it is shown that innovation communities are not only an instrument to solve innovation tasks but are also a promising means to tackle other challenges of recent demographic changes. As limitation must be considered, that the analysed innovation communities only received corporate support for a short period of time and the supporting organizations operate in manufacturing industries in Germany only. Practical implications The paper highlights that managers need to be aware that diversity in corporate innovation communities per se does not lead to success. Furthermore, a guideline of success factors for managers of diverse corporate innovation communities is presented which highlights important aspects that managers need to consider during the community work process. Social implications Due to demographic shifts in Germany and other European countries, societies in general and workforces in particular have modified. Most pervasive shifts take place with regard to age structures and diversity. Implications how manager could handle diversity successfully are therefore of high relevance for societies. Originality/value This study provides a theoretical understanding of the implications of organizational and age diversity on corporate innovation community management. Extant authors have already focussed on success factors in innovation communities and diverse settings isolated, but have not merged these issues.
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This chapter develops and demonstrates a technology mapping process, which explores collaborative innovation mechanisms. The framework is applied to the case of nanotubes. Through the use of extensive patent analysis followed by expert interviews, this chapter maps the collaborations in real time. The results indicate that Asian organizations are leading the nanotube field by leveraging small to medium enterprises (SMEs) and the electronics industry. We found that mono-linkage collaborations are an effective model which considers development progress of both parties. Furthermore, firms in this sector seem to be at the initial stages of developing robust collaboration and innovation mechanisms, while they leverage new funding systems to work together with others right from the start of the collaboration.
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This research presents a state of the art in university-business cooperation. First, it presents the factors that determine the propensity of the business sector and the university to deepen a cooperative relationship in the promotion of research and innovation. The quest to improve competitiveness is a determining factor in the success of this cooperation with the university, conditioned by a strong absorption capacity. On the university side, our results show that strategic orientation and the promotion of technology transfer are important factors that encourage collaboration with the company. Finally, relational collaboration mechanisms have a positive and significant impact on business innovation.
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Purpose – The purpose of this paper is to explore the link between causes of corporate collapse/demise and the concept of quality. Design/methodology/research – The paper is informed by a review of literature on corporate collapse and quality management. A literature review and global web search of corporate demises is then conducted. Actual causes of corporate demise are established and compared/contrasted with those in the literature to ascertain any similarities/dissimilarities. The link between causes of corporate demise and the concept of quality is then explored and appropriate implications and conclusion drawn. Findings – Evidence from the research suggests a clear linkage between causes of corporate demise and the concept of quality. Quality deficiencies/flaws if unattended may occasion corporate demise, which may be instant or gradual depending on the degree of corporate resilience. Practical implications – Corporations can only afford to ignore the concept of quality at their own peril. The linkage between the causes of corporate demise and the concept of quality requires managers to prioritise the concept quality and by extension quality management more seriously than ever before. Originality/value – The line of inquiry pursued by this paper provides additional insights into the phenomenon of corporate demise from a quality management perspective, thereby broadening its understanding.
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Successful new product development is fundamentally a multidisciplinary process. While this view has helped lead management to the wide-spread adoption of cross-functional new product development teams, in this study we question whether simply increasing the level of functional integration is truly a guarantee for enhancing the performance of new products. To assess this we examined patterns of cooperation between marketing, R&D, and operations at both early and late stages of the new product development process for 34 recently developed products whose level of innovativeness ranged from high to low. A unique feature of this study is that data were collected from four sources for each project. This included personal interviews with a project leader and written surveys from marketing, operations, and R&D personnel on each project.
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This paper investigates project management methods used during the execution phase of new product development projects. Based on prior field observations, organizational theory and product development literature, we pose hypotheses regarding the effectiveness of the project execution methods of formality, project management autonomy and resource flexibility. A cross-sectional survey sample of 120 completed new product development projects from a variety of assembled products industries is analyzed via hierarchical moderated regression. We find that the project execution methods are positively associated with project execution success. Further, these methods are effective singly and collectively, suggesting that firms can ''balance firmness and flexibility'' in product development via appropriate execution methods. Surprisingly, the effectiveness of these methods is not contingent on the product or process technology novelty inherent in a given development project. The findings suggest that firms should adopt high levels of these approaches, and that a variety of projects can be managed using broadly similar project execution methods. The findings also suggest limitations on the application of organizational information processing theory to the context of product development projects. Directions for additional theory development are outlined. q 2000 Elsevier Science B.V. All rights reserved.
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Through a parallel examination of literatures on new product development termination and entrepreneurial cognition, this study explores a specific form of human capital development: learning from failure. Specifically we advance the literature on entrepreneurial human capital by linking cognitive scripts used by corporate entrepreneurs in project termination decisions to corresponding levels of learning. Our longitudinal investigation of technology-based firms suggests that corporate entrepreneurs use three types of termination scripts: (1) undisciplined termination, (2) strategic termination, and (3) innovation drift. We illustrate the presence of each script and analyze learning implications during innovation projects (action learning) and after termination (post-performance learning). Based on our analysis we suggest that organizational learning is dependent upon the type of termination script individuals employ.