Author Pavitt, Keith. Title What We Know About the Strategic Management of Technology. Source California Management Review. 32(3): 17-26. 1990 Spring. [References] Abstract There has been increased interest in the 1980s among management scholars, consultants, and practitioners regarding the role of technology in corporate strategy, operations management, global competitions, and strategic alliances. Key characteristics of innovative activities in the firm are: 1. They involve continuous and intensive collaboration and interaction among specialized groups. 2. They remain profoundly uncertain activities. 3. They are cumulative. 4. They are highly differentiated. In production-based and information-based technologies, key opportunities lie in the progressive integration of radical technological advances into products and production systems and in diversification vertically upstream into potentially pervasive production inputs. The successful management of technology requires: 1. the capacity to orchestrate and integrate functional and specialist groups for the implementation of innovations, 2. continuous questioning of the appropriateness of existing divisional markets, missions, and skills for the exploitation of technological opportunities, and 3. a willingness to take the long view of technological accumulation within the firm. Author Roberts, Edward B. Title What We've Learned: Managing Invention and Innovation. Source Research-Technology Management. 31(1): 11-29. 1988 Jan/Feb. [Charts, References] Abstract An overview is presented of what is known about the purposeful management of technological innovation. One definition of the invention and innovation process holds that innovation equals invention plus exploitation. The overall management of technological innovation involves directing human and capital resources toward: 1. creating new knowledge, 2. generating technical ideas aimed at new products and services, 3. developing the ideas into working prototypes, and 4. transferring the ideas into manufacturing, distribution, and use. In regard to staffing the technological organization, suitably creative people must be recruited to generate ideas, and managerial actions must be taken to enhance their productivity. In many studies, the active presence of a product champion or entrepreneur also has been revealed as a necessary condition for success. Strategic management of technology includes strategic planning and strategic implementation aspects as well. Although technological innovation has the potential to alter the competitive status of nations and organizations, its purposeful management is complex and involves the effective integration of people, organizational processes, and plans. Author Van de Ven, Andrew H. Title Central Problems in the Management of Innovation. Source Management Science. 32(5): 590-607. 1986 May. [Charts, Graphs, References] Abstract In the process of innovation, new ideas are generated and implemented through the transactions among individuals within given organizational contexts. Therefore, the critical features of innovation are new ideas, people, their transactions, and the organizational contexts that govern them. Based on these features, a framework is developed for guiding innovation research. The framework addresses 4 interrelated problems in the management of innovation that require longitudinal study, including: 1. encouraging organizational members to focus attention on new ideas, 2. ensuring that new ideas are exploited, 3. coordinating multiple transactions so that each of the proliferating parts of the innovation process is informed by a holistic vision, allowing idea to be transformed into concrete reality, and 4. fostering an organizational context that is conducive to innovation. Author Clark, Kim B. Title The Interaction of Design Hierarchies and Market Concepts in Technological Evolution. Source Research Policy. 14(5): 235-251. 1985 Oct. [Diagrams, References] Abstract A conceptual framework is developed for analyzing the sequence of technological changes that underlie the development of industries. The framework explores the interaction between the choices of customers and design decisions. Using examples from automobiles and semiconductors, it is argued that the logic of problem solving in design and the formation of concepts that underlie choice in the marketplace impose a hierarchical structure on the evolution of technology. The nature of the evolutionary process has ramifications for the dynamics of competition and the management of innovation. Innovation has a rich and varied impact on competition, and effective innovation requires different managerial skills in different contexts. As evolution proceeds, both the focus of innovative effort and the required managerial skills shift. Companies with different products at different stages of evolution face especially complex problems. uthor Abernathy, William J. Utterback, James M. Title Patterns of Industrial Innovation. Source Technology Review. 80(7): 40-47. 1978 June/July. [Chart, References] Abstract The definition and focus of innovation change as a company matures. A produc innovation by a small, technology-based company is often the same process equipment adopted by a large company to improve production. In seeking to understand the variables that determine successful strategies for innovation, it is clear that there are 3 stages in the evolution of a successful enterprise: 1. its period of flexibility, in which the enterprise seeks to capitalize on its advantages where they offer greatest benefit, 2. its intermediate years, in which major products are used more widely, and 3. its full maturity, when prosperity is assured by leadership in several principal products and technologies. Major innovations usually pass through countless minor duct and systems improvements. Incremental innovations typically produce a highly specialized system that depends upon economies of scale and mass marketing for success. Author Abernathy, William J. Clark, Kim B. Title Innovation: Mapping the Winds of Creative Destruction. Source Research Policy. 14(1): 3-22. 1985 Feb. [Graphs, Diagrams, References] Abstract A framework is developed for analyzing the competitive implications of innovation. The framework is based on the notion of transilience, i.e., the capacity of an innovation to affect the established systems of production and marketing. Criteria are developed for categorizing innovation in terms of its competitive significance. The criteria are based on the idea that competitive advantage depends on the attainment or development of certain skills, relations, and resources. The significance of innovation can be gauged by its effects on those requirements. Four different modes of innovation (architectural, market niche, regular, and revolutionary) are identified; these are illustrated with examples from the automobile industry. The different types of innovation are related to the pattern of industry evolution. Special emphasis is given to the role of incremental technical change in shaping competition and to the possibilities for a technology-based reversal in the process of industrial maturity. Implications for practice and further research are discussed. Author Tushman, Michael L. Anderson, Philip. Title Technological Discontinuities and Organizational Environments. Source Administrative Science Quarterly. 31(3): 439-465. 1986 Sep. [Graphs, Equations, References] Abstract Patterns of technological change and the impact of technological breakthroughs on environmental conditions are explored. Employing data from the minicomputer, cement, and airline industries from their origination through 1980, it is shown that technology evolves through periods of incremental change punctuated by technological breakthroughs that either enhance or destroy the competence of firms in an industry. These breakthroughs, or technological discontinuities, significantly raise both environmental uncertainty and munificence. It is demonstrated that, while competence-destroying discontinuities are begun by new firms and are related to increased environmental turbulence, competence-enhancing discontinuities are initiated by existing companies and are associated with decreased environmental turbulence. These effects decline over successive discontinuities. Those firms that begin major technological changes grow more rapidly than other companies. Author Christensen, Clayton M. Rosenbloom, Richard S. Title Explaining the attacker's advantage: Technological paradigms, organizational dynamics, and the value network. Source Research Policy. 24(2): 233-257. 1995 Mar. [Charts, Graphs, Appendix, References] Abstract It is proposed that the value network - the context within which a firm competes and solves customers' problems - is an important factor affecting whether incumbent or entrant firms will most successfully innovate. In a study of technology development in the disk drive industry, it is found that incumbents led the industry in developing and adopting new technologies as long as the technology addressed customers' needs within the value network in which the incumbents competed. Entrants led in developing and adopting technologies that addressed user needs in different, emerging value networks. It is in these innovations, which disrupted established trajectories of technological progress in established markets, that attackers proved to have an advantage. The rate of improvement in product performance which technologists provide may exceed the rate of improvement demanded in established markets. This mismatch between trajectories enables firm entering emerging value networks subsequently to attack the industry's established markets as well. Author Dosi, Giovanni. Title Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technical Change. Source Research Policy. 11(3): 147-162. 1982 Jun. [References] Abstract It is suggested that the procedures and the nature of technologies are broadly similar to those which distinguish science. There seem in particular to be technological paradigms performing a function similar to scientific paradigms. A model is presented which attempts to account for both continuous changes and discontinuities in technological innovations. Continuous changes are frequently linked to progress along a technological trajectory defined by a technological paradigm, while discontinuities are linked with the emergence of a new paradigm. One-directional explanations of the innovative process, particularly those assuming that the market is the prime mover, do not provide adequate explanation of the emergence of new technological paradigms. The latter originates from the interaction among scientific advances, economic factors, institutional variables, and unsolved difficulties on established technological paths. The model attempts to establish a general enough framework, which accounts for all these factors, and to define the process of selection of new technological paradigms among a greater set of notionally possible ones. It is concluded that, in spite of its limitations, the model might be found useful in interpreting some important questions related to the process of technical change. Author Sahal, Devendra. Title Technological Guideposts and Innovation Avenues. Source Research Policy. 14(2): 61-82. 1985 Apr. [Graphs, Diagram, Equations, References] Abstract The integrative view of innovation processes relates to the origin of new techniques rather than their impact. Technology both shapes and is shaped by the socioeconomic environment, and its progress depends upon its size and structure. Technical progress is a process of learning to overcome constraints by scaling. Innovations corresponding to constraints bring new techniques; these may be structural, material, or systemic. Case studies illustrate the theory, and a topography of technological evolution illustrates the progress of innovation. The interplay of chance and necessity determines the process of technological evolution. Public support of research and development activity should be based on careful consideration of the relevant innovation avenues, and management of technology must be based on a mixture of gradualism in the face of necessity and experimentalism in the face of chance. Author Henderson, Rebecca. Title Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry. Source Rand Journal of Economics. 24(2): 248-270. 1993 Summer. [Charts, Graphs, Appendix, Equations, References] Abstract Neoclassical theory suggests that when an industry is shaken by radical technological change, incumbent firms will be replaced by entrants because entrants have greater strategic incentives to invest in radical innovation. Organizational theory suggests that incumbent firms fail in the face of radical innovation because they fall prey to inertia and complacency. It is shown that if organizational effects are significant, tests of neoclassical theory in isolation will yield spurious or noisy results. Using data derived from a detailed field study of the photolithographic alignment equipment industry, it is shown that as neoclassical theory predicts, established firms invested more than entrants in incremental innovation, but that in agreement with organizational theory, the research efforts of incumbents seeking to exploit radical innovation were significantly less productive than those of entrants. Much better models of heterogeneous capability - its evolution and its role in competition - may be needed if the competitive implications of technological change are to be understood fully. Author Henderson, Rebecca M. Clark, Kim B. Title Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms. Source Administrative Science Quarterly. 35(1): 9-30. 1990 Mar. [Charts, Diagrams, References] Abstract The traditional categorization of innovation as either incremental or radical is incomplete and potentially misleading and does not account for the sometimes disastrous effects on industry incumbents of seemingly minor improvements in technological products. Distinguishing between the components of the product and the ways they are integrated into the system that is the product architecture, such innovations are defined as innovations that change the architecture of a product without changing its components. It is shown that architectural innovations destroy the usefulness of the architectural knowledge of established firms and that, since architectural knowledge tends to become embedded in the structure and information-processing procedures of established organizations, this destruction is difficult for firms to recognize and hard to correct. The concept's explanatory force is illustrated through an empirical study of the semiconductor photolithographic alignment equipment industry. Author Rosenberg, Nathan. Title Why Do Firms Do Basic Research (With Their Own Money)? Source Research Policy. 19(2): 165-174. 1990 Apr. [References] Abstract Because it is widely held that social returns from basic research are significant and higher than private returns, such activities continue to be financed by the taxpayer. Therefore, if the goal is to encourage the private sector to spend more money on basic research, explaining why it would choose to do so in the first place is necessary. It is important to think of basic research by private industry as a form of long-term investment. One of the first potential benefits is "first-mover advantages," which could include firms that move down a learning curve first or firms that may be able to acquire valuable assets. One problem in understanding private research is that the output of research is never some final product to which the marketplace can assign a price tag. Instead, the output is some form of new knowledge with no clear dimensionality. Author Bower, Joseph L. Christensen, Clayton M. Title Disruptive technologies: Catching the wave. Source Harvard Business Review. 73(1): 43-53. 1995 Jan/Feb. [Graphs] Abstract One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change. Using the rational, analytical investment processes that most well-managed companies have developed, it is nearly impossible to build a cogent case for diverting resources from known customer needs in established markets to markets and customers that seem insignificant or do not yet exist. In order to spot and cultivate disruptive technologies, companies should: 1. Determine whether the technology is disruptive or sustaining. 2. Define the strategic significance of the disruptive technology. 3. Locate the initial market for the disruptive technology. 4. Place responsibility for building a disruptive-technology business in an independent organization. 5. Keep the disruptive organization independent. Author Christensen, Clayton M. Suarez, Fernando F. Utterback, James M. Title Strategies for survival in fast-changing industries. Source Management Science. 44(12 (Part 2)): S207-S220. 1998 Dec. [Charts, Graphs, Equations, References] Abstract This paper advances the existing literature on innovation by tracing the main technical elements of a dominant design in the rigid disk drive industry over time, and provides a much more rigorous definition of the concept of a dominant design than there has been in the past. It finds the notion of first-mover advantage is not applicable in the rigid disk drive industry. Instead, it proposes the idea of an entry-window tightly linked to the emergence of the dominant product design as defined. Author Rosenbloom, Richard S. Cusumano, Michael A. Title Technological Pioneering and Competitive Advantage: The Birth of the VCR Industry. Source California Management Review. 29(4): 51-76. 1987 Summer. [References] Abstract "Technological pioneering" is the development of an emerging technology in pursuit of future commercial opportunity. A significant example of this is the manufacture of videocassette recorders (VCR) for the mass consumer market. In this instance, the pioneers' efforts resulted in the birth of a major industry. A comparison is made of the actions of 6 firms that were "pioneers" in the development of home video recording technology -- RCA and Ampex in the US and, in Japan, Victor Co. of Japan (JVC), Matsushita, Sony, and Toshiba. Matsushita, Sony, and Toshiba emerged in the late 1970s as the big winners in the growth of this new industry. The real success of the VCR industry rests in the management practices of 3 pioneers, who just happened to be Japanese. The 3 winning companies, over a period of nearly 2 decades, repeatedly focused on more rewarding opportunities, positioned their technical efforts more productively, and executed those efforts more effectively to master the development of various technology. Author Teece, David J. Pisano, Gary. Shuen, Amy. Title Dynamic capabilities and strategic management. Source Strategic Management Journal. 18(7): 509-533. 1997 Aug. [Charts, Equations, References] Abstract The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes, shaped by the firm's asset positions and the evolution paths it has adopted or inherited. Identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than it strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs and excludes new entrants. Author Katz, Michael L. Shapiro, Carl. Title R&D Rivalry with Licensing or Imitation. Source American Economic Review. 77(3): 402-420. 1987 Jun. [Graphs, Appendix, Equations, References] Abstract The research and development rivalry between 2 firms is examined to develop an innovation in a dynamic model that extends the existing literature by incorporating a payoff structure general enough to allow for the possibilities of licensing and imitation. With the more general payoff structure, it is found that a firm may win easily, rather than just edging out its rival as in previous models. In such cases, the existence of rivalry for product development has no impact on the date of development. Moreover, it is shown that a firm may win the deterministic patent race even though industry profits would be higher were the other firm to win. For minor innovations, it is found that the industry leader typically will be the innovator; for markets in which patent protection is strong, the major innovations will be made by industry leaders. If imitation is easy, however, industry followers or entrants will make the major discoveries. Author Freeman, C. Title Networks of Innovators: A Synthesis of Research Issues. Source Research Policy. 20(5): 499-514. 1991 Oct. [Charts, Graphs, References] Abstract Empirical research in the 1960s on the role of external sources of scientific, technical, and market information in successful innovation by business firms demonstrated unambiguously the vital importance of external information networks and of collaboration with users during the development of new products and processes. A review of new developments in the 1980s in industrial networks, regional networks, and government-sponsored innovative activities shows that there has indeed been a major upsurge of formal and semiformal flexible "networks," including some new types of network. It also shows that some older forms of research cooperation have been modified and transformed. It is abundantly clear that the main source of change underlying the new developments in networking for innovation lies in the rapid development and diffusion of new generic technologies, especially information technology. Author Hagedoorn, John. Schakenraad, Jos. Title The effect of strategic technology alliances on company performance. Source Strategic Management Journal. 15(4): 291-309. 1994 May. [Charts, Appendix, References] Abstract Strategic technology partnering between firms has become a growing subject of interest to both companies experimenting with this mode of economic organization and researchers from a wide variety of academic disciplines. In a recent study, an effort is made to measure the effect of strategic technology partnering on companies engaged in such joint efforts. A study of the relevant literature on interfirm cooperation generates some basic understanding of this phenomenon, after which the empirical analysis is expanded with linear structural modeling of a number of relevant explanatory variables setting strategic partnering in a more complex environment. Author Kogut, Bruce. Title Joint Ventures: Theoretical and Empirical Perspectives. Source Strategic Management Journal. 9(4): 319-332. 1988 Jul/Aug. [References] Abstract The perspectives of transaction costs and strategic behavior are compared in explaining the motivation to joint venture. The transaction cost approach is derived from the theory of transaction costs as developed by Williamson (1975, 1985). Its arguments are driven by cost-minimizing considerations, and joint ventures are analyzed as an efficient solution to the hazards of economic transactions. The strategic behavior perspective stems from theories concerning its influence on the firm's competitive positioning. It places joint ventures in the context of competitive rivalry and collusive agreements to enhance market power. A theory of joint ventures as an instrument of organizational learning is proposed. It views joint ventures as a means by which firms learn or seek to retain their capabilities. The perspectives provide distinct and occasionally overlapping explanations for joint venture behavior. The theories probably will apply differently according to contextual factors and the type of research questions being considered. Author Porter, Michael E. Title The Contributions of Industrial Organization to Strategic Management. Source Academy of Management Review. 6(4): 609-620. 1981 Oct. [Charts, References] Abstract Industrial organization theory and strategic management research have been separate because of: 1. differences in purpose, 2. frame of reference, 3. unit of analysis, and 4. differing research values. As a result, the traditional Bain/Mason paradigm has seldom been used in the business policy field. Cross-fertilization is needed. The need for integration between the 2 disciplines is particularly evident to develop models of the competitive interaction among multibusiness firms having business units in partly overlapping markets. A growing interest among researchers on issues such as: 1. completeness, 2. loss function, and 3. oligopoly theory may lead to productive integration. Author Porter, Michael E. Title What is strategy? Source Harvard Business Review. 74(6): 61-78. 1996 Nov-Dec. [Charts, Graphs] Abstract Under pressure to improve productivity, quality, and speed, managers have embraced tools such as TQM, benchmarking, and reengineering. Dramatic operational improvements have resulted, but rarely have these gains translated into sustainable profitability. And gradually, the tools have taken the place of strategy. How that shift has led to the rise of mutually destructive competitive battles that damage the profitability of many companies is explored. As managers push to improve on all fronts, they move further away from viable competitive positions. It is argued that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match. The economic basis of competitive advantage is thus traced down to the level of the specific activities a company performs. Author Roberts, Edward B. Title Stimulating Technological Innovation-Organizational Approaches. Source Research Management. 22(6): 26-30. 1979 Nov. [Reference] Abstract Two gaps that exist in the overall process of achieving effective invention and in converting that invention into profitable innovation are a lack of key inputs to the innovation process and poor follow-up to effective technical research and development (R&D) results. The key inputs needed to achieve innovation are: 1. timely information containing technical data, market oriented data, and manufacturing-revelant data, 2. appropriate skills to handle these inputs, and 3. energy devoted to the advancement of innovation in the organization.Three alternative ways to organize an R&D effort to bridge these gaps are: 1. critical functions staffing that focuses on the input roles that are needed for the organization, 2. the product team approach that focuses both on the needed inputs for innovation and on the question of linking R&D results to commercial exploitation, and 3. the capture of user inputs. While there are no magic answers as to how to organize for effective innovation, this problem continues to concern innovation-seeking organizations. The selection and mixture of approaches appropriate for each situation ultimately depends upon the organization's capability, setting, and heritage. Author Bohn, Roger E. Title Measuring and managing technological knowledge. Source Sloan Management Review. 36(1): 61-73. 1994 Fall. [Charts, Graphs, References] Abstract The vital impact of organizational knowledge on performance is now widely recognized, but the study of how to manage such knowledge is still in its infancy. A framework for measuring and understanding one particular type of knowledge - technological knowledge, that is, knowledge about how to produce goods and services - is presented. The framework can be used to more precisely map, evaluate, and compare levels of knowledge. The level of knowledge that a process has reached determines how a process should be controlled, whether and how it can be automated, the key tasks of the workforce, and other major aspects of management. Better knowledge of key variables leads to better performance without incremental physical investment. Principles for managing knowledge to improve production processes include: 1. Understand how much you know and do not know. 2. Understand and manage the locations of knowledge. 3. Be wary of deskilling the workforce and freezing processes. 5. Learn carefully and systematically. Author Tyre, Marcie J. von Hippel, Eric. Title The situated nature of adaptive learning in organizations. Source Organization Science. 8(1): 71-83. 1997 Jan/Feb. [Charts, Appendix, References] Abstract A paper explores the nature of adaptive learning around new technology in organizations. It is found that adaptation is a situated process, in that different organizational settings contain different kinds of clues about the underlying issues, offer different resources for generating and analyzing information, and evoke different assumptions on the part of the problem solvers. These findings suggest that traditional, decontextualized theories of adaptive learning and of collaboration could be improved by taking into account that learning occurs through people interacting in context - or, more specifically, in multiple contexts. Author von Hippel, Eric. Tyre, Marcie J. Title How learning is done: Problem identification in novel process equipment. Source Research Policy. 24(1): 1-12. 1995 Jan. [Charts, References] Abstract The unit cost of producing manufactured goods has been shown to decline significantly as more are produced. It has been argued that "learning by doing" is at the root of this phenomenon, but the modes of learning actually involved have not been studied in detail. In an attempt to provide a better understanding of the learning behaviors involved in learning by doing, 27 problems that affected 2 novel process machines in their first years of use in production are studied. Two causes for why the problems identified by templating were not discovered prior to field use are found: 1. an inability to identify existing problem-related information in the midst of complexity, and 2. the introduction of new problem-related information by users and other problem solvers who learn by doing after field introduction of the machine. Problems due to information lost in complexity emerge earlier than do problems due to user learning by doing. Author von Hippel, Eric. Title "Sticky information" and the locus of problem solving: Implications for innovation. Source Management Science. 40(4): 429-439. 1994 Apr. [Charts, Graphs, References] Abstract To solve a problem, needed information and problem-solving capabilities must be brought together. Often the information used in technical problem solving is costly to acquire, transfer, and use in a new location, and thus is termed "sticky." The impact of information stickiness on the locus of innovation-related problem solving is explored. It is found that, when sticky information needed by problem solvers is held at one site only, problem solving will be carried out at that locus, other things being equal. When more than one locus of sticky information is called upon by problem solvers, the locus of problem solving may iterate among these sites as problem solving proceeds. When the costs of such iteration are high, then problems that draw upon multiple sites of sticky information will sometimes be task partitioned into subproblems that each draw on only one such locus, and investments will be made to reduce stickiness of information at some locations. Author Allen, Thomas J. Katz, Ralph. Title Age, Education and the Technical Ladder. Source IEEE Transactions on Engineering Management. 39(3): 237-245. 1992 Aug. [Charts, Graphs, References] Abstract A study investigates the preferences of scientists and engineers for managerial and technical careers. Data were collected in 9 US and 2 European organizations, with 2,199 usable questionnaires returned. The analyses reveal that educational background and age play a significant role in the shaping of individuals' preferences. Two distinctly different success orientations are uncovered. These orientations change very differently for technologists with and without doctoral degrees. Ph.D.'s who are not managers are the most likely to be academically oriented. Managers who do not have a doctoral degree are the most likely to have a commercial orientation toward success. Those with neither a doctoral degree nor a managerial position are 1.32 times more likely to have a commercial orientation than are Ph.D. managers. The results are reexamined, but remain strong for different kinds of technical work. Author Bailyn, Lotte. Title Autonomy in the Industrial R&D Lab. Source Human Resource Management. 24(2): 129-146. 1985 Summer. [Graphs, References] Abstract Results of intensive studies of employees in a few central research and development (R&D) laboratories in the US and UK challenge the assumption that conflict between autonomy and organizational goals causes the problems of ''professionals'' in industrial organizations. Strategic autonomy (the freedom to set one's own research agenda) is distinguished from operational autonomy (the freedom to attack a given problem by self-determined means within given resource constraints). This analysis implies that career procedures in the R&D lab should be based on a variety of criteria of successful performance and encompass a variety of rewards and modes of recognition. Technical careers should start lower on strategic than operational autonomy, which should initially show a fairly rapid increase. This should be followed by increases in strategic autonomy and options for a number of career paths. Different proportions of the 2 aspects of autonomy fit with different orientations and tasks and require different career management strategies. Author Katz, Ralph. Allen, Thomas J. Title Project Performance and the Locus of Influence in the R&D Matrix. Source Academy of Management Journal. 28(1): 67-87. 1985 Mar. [Graphs, Diagrams, References] Abstract In research and development (R&D) organizations with matrix structures, project personnel report to both project managers (responsible for developing marketable products) and functional managers (responsible for keeping the organization abreast of new technological developments). A study was conducted to assess how relative levels of influence between project and functional managers affects the performance of R&D teams. Project personnel in 86 project teams from 9 technology-based organizations were surveyed about how project and functional managers influenced: 1. the details of project work and personnel assignments, 2. salaries and promotions, and 3. overall organizational decision making. Measures of project team performance were obtained from managers' superiors. High performance was associated with balanced levels of influence between project and functional managers concerning organizational rewards. However, performance was highest when project managers had greater levels of organizational influence and when functional managers had greater influence over technical project details. Author Katz, Ralph. Tushman, Michael. Allen, Thomas J. Title The influence of supervisory promotion and network location on subordinate careers in a dual ladder RD&E setting. Source Management Science. 41(5): 848-863. 1995 May. [Charts, References] Abstract A longitudinal study examines the impacts of supervisors' promotion paths and gatekeeper status on the career outcomes of technical subordinates in a dual ladder system. Results indicate that project supervisors significantly affect the chances of one's promotion along each track. Professionals reporting to supervisors promoted to the technical ladder were significantly more likely to be promoted up the managerial ladder. Gatekeeper status was more important in influencing subordinates' communication activities and subsequent promotions than supervisors' promotion path. These results underscore the importance of managing socialization and the career paths of gatekeepers and those reporting to them for enhancing the success of dual ladder reward systems. Author Maidique, Modesto A. Title Entrepreneurs, Champions, and Technological Innovation. Source Sloan Management Review. 21(2): 59-76. 1980 Winter. [Chart, Graphs, References] Abstract Successful innovation requires a particular combination of entrepreneurial, managerial, and technological roles. The theory of entrepreneurial roles can be combined with Scott's theory of corporate development to generate some hypotheses regarding the evolution of entrepreneurial roles, as the firm develops from a small size to a large, diversified firm. It can be argued that: 1. The entrepreneurial role is essential for radical technological innovation, but it manifests itself differently, depending on the firm's level of development. 2. Radical technological innovation requires top management participation in the entrepreneurial network if it is to succeed. 3. The executive champion is an important intermediate entrepreneurial role, particularly in diversified firms.An examination of role functions, such as the SAPPHO study, leads to the conclusion that managing radical technological change is a fundamental element of top management's task in the technology-based firm. The chief executive should develop an environment where risk taking by executive champions and product champions will result in new ventures and products. Author Roberts, Edward B. Fusfeld, Alan R. Title Staffing the Innovative Technology-Based Organization. Source Sloan Management Review. 22(3): 19-34. 1981 Spring. [Charts, References] Abstract There are 5 informal but critical behavioral functions which are needed for effective execution of innovative, technology-based projects. These are: 1. idea generating, 2. entrepreneuring or championing, 3. project leading, 4. gatekeeping, and 5. sponsoring or coaching. These roles are unique and demand unique skills. Usually the roles cannot be filled by new recruits to the organization. Beyond these 5 roles, different business environments may demand that additional roles be performed in order to assure innovation. Some individuals may perform multiple roles or change roles over the career span. The critical functions have managerial implications in the areas of manpower planning, job design, objective setting and performance measurements and rewards. They provide a basis for the design of a more effective multiladder system to replace the dual ladder systems prevalent in many research and development (R & D) organizations. There may be applications outside R & D organizations as well. Author Shane, Scott. Venkataraman, S. Title Renegade and rational championing strategies. Source Organization Studies. 17(5): 751-771. 1996. [Charts, Appendix, References] Abstract A study examines how national cultural values influence the preferences of managers in 28 countries for resolving the tension of whether to promote innovation inside (rational championing) or outside (renegade championing) organizational norms, rules and procedures. The study finds that managers in individualistic, high power-distant and uncertainty accepting societies prefer renegade strategies, while managers in collectivist, low power-distant and uncertainty avoiding societies prefer rational championing. Author Leonard-Barton, Dorothy. Title Implementation as Mutual Adaptation of Technology and Organization. Source Research Policy. 17(5): 251-267. 1988 Oct. [Charts, Diagrams, References] Abstract New production technologies are known to be competitive weapons, but their implementation is at least as challenging a managerial problem as their invention. The initial implementation stage is particularly crucial. The process of initial implementation is scrutinized in order to understand its dynamics. A conceptual framework that describes the implementation process is presented. The framework derives from the intellectual interplay between academic literature and empirical fieldwork. The fieldwork consisted of 12 in-depth case studies of new technologies introduced into the operations of large corporations within the last 5 years. It is concluded that implementation is innovation. It is argued that technology transfer requires continuous, ongoing dedication to the process of change and the conscious management of mutual adaptation because the technology will never exactly fit the user environment. Author Tyre, Marcie J. Orlikowski, Wanda J. Title Windows of opportunity: Temporal patterns of technological adaptation in organizations. Source Organization Science. 5(1): 98-118. 1994 Feb. [Charts, Graphs, Appendix, References] Abstract It is contended that the process of technological adaptation is not gradual and continuous, as often argued in the innovation literature, but is instead highly discontinuous. Evidence from 3 manufacturing and service organizations indicates that there exists a relatively brief window of opportunity to explore and modify new process technology following initial implementation. Afterwards, modification of new process technologies by users is limited by the increasing routinization that occurs with experience. Thus, the technology and its context of use tend to congeal, often embedding unresolved problems into organizational practice. Subsequent changes appear to occur in an episodic manner, triggered either by discrepant events or by new discoveries on the part of users. It is suggested that the episodic pattern of adaptation observed may be inherent in users' efforts to deal with new technologies, and not just a function of a given managerial approach. Author Tyre, Marcie J. Orlikowski, Wanda J. Title Exploiting opportunities for technological improvement in organizations. Source Sloan Management Review. 35(1): 13-26. 1993 Fall. [Charts, Graphs, References] Abstract Managers have learned that, to exploit the advantages of new process technologies, they must adapt those technologies to fit the organization and its strategy. But exactly how and when to make those changes is not well understood. It is argued that technological improvement is seldom a steady process but instead alternates between short episodes of intensive change activity and longer periods of routine use. Data from European and US firms show that adaptation to new technologies often occurs in a lumpy or episodic pattern. Examination of several leading Japanese organizations reveals a similar pattern, with one important difference: managers in these operations actively exploit the episodic pattern of adaptation around a given technology. Drawing on these observations, it is suggested that managing the uneven pace of adaptation can yield important benefits to firms pursuing both efficiency and change. Author Van de Ven, Andrew H. Poole, Marshall Scott. Title Explaining development and change in organizations. Source Academy of Management Review. 20(3): 510-540. 1995 Jul. [Charts, References] Abstract Four basic theories that may serve as building blocks for explaining processes of change in organizations are introduced: life cycle, teleology, dialectics, and evolution. These 4 theories represent different sequences of change events that are driven by different conceptual motors and operate at different organizational levels. The circumstances are identified when each theory applies and it is proposed how interplay among the theories produces a wide variety of more complex theories of change and development in organizational life. Author Aghion, Philippe. Tirole, Jean. Title The management of innovation. Source The Quarterly Journal of Economics. 109(4): 1185-1209. 1994 Nov. [Appendix, Equations, References] Abstract An analysis is made of the organization of the research and development (R&D) activity in an incomplete contract framework. It provides theoretical foundations: 1. to understand how the allocation of property rights on innovations may affect both the frequency and the magnitude of these innovations, 2. to rationalize commonly observed features in research employment contracts, such as shop rights, trailer clauses, and the "hired for" doctrine, 3. to discuss the robustness of the so-called Schumpeterian hypotheses to endogenizing the organization of R&D, and 4. to provide a rationale for cofinancing arrangements in research activities. Author Athey, Susan. Schmutzler, Armin. Title Product and process flexibility in an innovative environment. Source Rand Journal of Economics. 26(4): 557-574. 1995 Winter. [Appendix, Equations, References] Abstract Several attributes of a firm's long-run decisions about organizational structure, attributes that affect the firm's short-run innovative activity, are studied. Focus is placed on flexibility, which lowers the future costs of implementing innovations, and research capabilities, which improve the future opportunities for innovation. Two dimensions of innovation are considered: demand-enhancing (product) and cost-reducing (process). These 2 types of innovation are complementary in terms of increasing the firm's net revenue in the short run. The complementarities between the firm's short-run decision variables then lead to complementarities between its long-run decisions about product and process flexibility and research capabilities. Author Brynjolfsson, Erik. Title Information assets, technology, and organization. Source Management Science. 40(12): 1645-1662. 1994 Dec. [Appendix, Equations, References] Abstract The incentive effects of different ownership arrangement are analyzed in the spirit of the Grossman-Hart-Moore (1986, 1990) incomplete contracts theory of the firm. A key departure from earlier approaches is the inclusion of a role for an information asset, analogous to the GHM treatment of property. This approach highlights the organizational significance of information ownership and information technology. Using this framework, one can determine when: 1. informed workers are more likely to be owners than employees of firms, 2. increased flexibility of assets will facilitate decentralization, and 3. the need for centralized coordination will lead to centralized ownership. The framework developed sheds light on some of the empirical findings regarding the relationship between information technology and firm size and clarifies the relationship between coordination mechanisms and the optimal distribution of asset ownership. Author Holmstrom, Bengt. Title Agency Costs and Innovation. Source Journal of Economic Behavior & Organization. 12(3): 305-327. 1989 Dec. [References] Abstract Stylized facts have indicated that small firms are responsible for a disproportionate share of innovative research. An attempt is made to understand this phenomenon as the outcome of an optimal assignment of tasks across individuals and organizations. It is shown that incentive costs associated with a given task depend on the total portfolio of tasks that an individual or an organization undertakes. Combining hard-to-measure activities with easy-to-measure activities is especially costly because it will lead to a misallocation of attention across tasks or a misallocation of risk. Larger organizations are at a disadvantage in conducting highly innovative research due to the costs associated with managing a heterogeneous set of tasks. It is argued that optimal organizational responses to coordination and control of routine tasks will lead to bureaucratization within the firm and to financial constraints imposed by capital markets - both of which are hostile to innovation. Author Milgrom, Paul. Roberts, John. Title The Economics of Modern Manufacturing: Technology, Strategy, and Organization. Source American Economic Review. 80(3): 511-528. 1990 Jun. [Graphs, Appendix, Equations, References] Abstract Manufacturing is undergoing a revolution. The mass production model is being replaced by a vision of a flexible multiproduct firm that emphasizes quality and speedy response to market conditions while utilizing technologically advanced equipment and new forms of organization. A theoretical model of the firm is developed that allows the exploration of many of the complementarities in modern manufacturing firms. The nonconvexities inherent in the problem make it inappropriate to use differential techniques to study the effects of changing parameters. Instead, purely algebraic (lattice-theoretic) methods are utilized that provide an exact formalization of the idea of groups of complementary activities. The firm's optimizing response to assumed trends in input prices in the response to the complementarities is used to explain both the clustering of characteristics and the trends in manufacturing.