RISE

Monday, June 22 2009

RISE Workshop 14.0: The Strategic Management of Innovation

by Florian Bertram @ 10:00 am on Workshops  — Comments Off

The last RISE Workshop took place at F. Hoffmann-La Roche’s headquarters in Basel on June 4th 2009. The workshop was concerned with the strategic management of innovation. In particular, it addressed the challenges of innovation in the pharmaceutical context and how managers cope with these challenges. First, Paul Nagagaki, Head of Group Research Strategy of Roche presented insights on Roche’s particular challenges with investments in new technologies and approaches. Second, Florian Bertram of RISE presented the findings of his dissertation on how managers create and establish new and uncertain opportunities.

Monday, March 16 2009

RISE Colloquium: Overcoming the Stability-Change-Dichotomy

by Florian Bertram @ 9:23 am on Workshops  — Comments Off

David Griessbach, presented his paper project “Overcoming the Stability-Change-Dichotomy” during a RISE Colloquium on March 5th 2009 at the University of St. Gallen. In a first part two papers on the dichotomy of stability and change (Feldman & Pentland, 2003; Garud & Karnoe, 2001) and one paper on the paradox in theory building (Poole & Van de Ven, 1989) have been discussed. In the second part of the workshop, David presented his paper project.

Friday, February 6 2009

RISE Workshop 13.0: The Interplay between Entrepreneurship and Management

by Florian Bertram @ 11:46 am on Workshops  — Comments Off

On Thursday February 5th 2009 RISE organized a workshop together with its company partners on “The Interplay between Entrepreneurship and Management". The workshop took place in Zurich at the headquarters of software company Netcetera AG. After an introduction of RISE Management Director Dr. Daniel Bartl, Netcetera’s CEO Dr. Andrej Vckovski presented the development of the firms strategy from its beginning and the entrepreneurial challenges associated with it. After an extensive discussion Prof. Dr. Johannes Rueegg-Stuerm and Dr. Simon Grand framed this account of managerial practice from a theoretical perspective, introducing their new research program of entrepreneurial management.

Thursday, November 6 2008

RISE Workshop 12.0: From Ideas to Products - Managing the Innovation Process

by Florian Bertram @ 7:59 pm on Workshops  — Comments Off

The last RISE Workshop on November 6th 2008 explored the management of innovation processes that effectively turn ideas into new products and services. Thereby it moved into a new environment being functional consumer and industrial products where innovation management comprehensively integrates design, engineering, manufacturing and customer interaction. Dieter Marxer, Member of the Board of NOVENTA Engineering AG, offered a visual impression of NOVENTA’s way to innovate. Exploring innovation in this particular context is a consequence of the new collaboration between RISE and Prof. Dr. Urs Füglistaller, Director of the Swiss Research Institute of Small Business and Entrepreneurship at the University of St. Gallen. Prof. Dr. Urs Füglistaller contributedn with his expert knowledge in research and practice of small and mid-sized businesses, as well as with his knowledge of NOVENTA Engineering AG.

Friday, October 3 2008

RISE Colloquium: The managerial Knowledge Base underlying the Process of Strategic Renewal

by Florian Bertram @ 3:54 pm on Workshops  — Comments Off

On October 2nd 2008 Steven Floyd presented his work on “The managerial Knowledge Base underlying the Process of Strategic Renewal” in this months’ RISE Colloquium. In the first part Steve and the participants discussed two of Steve’s papers, one published and one in the status of review and resubmit as well as a Burgelman (1991). Purpose of this discussion was to provide the context for the current working paper that was discussed in the second part of the colloquium and to give an overview on Steve’s work.

In the second part, of the workshop Steve presented his current working paper “The managerial Knowledge Base underlying the Process of Strategic Renewal"which was followed by a lively discussion. In a third part the participants discussed current opportunities to contribute to the research program of strategic entrepreneurial competence.

Wednesday, September 24 2008

RISE Colloquium: The Strategic Management of Innovation: Resource Allocation and the Creation of new and uncertain Opportunities

by Florian Bertram @ 4:25 pm on Workshops  — Comments Off

The RISE Colloquium on September 4th 2008 was concerned with “The Strategic Mangement of Innovation: Resource Allocation and the Creation of new and uncertain Opportunities". In a first part two papers of strategy process research where discussed in terms of their contribution to a creation of opportunities in the strategy process. Furthermore Actor Network Theory was discussed as a potential theoretical framework to describe and explain entrepreneurial and strategic action inside the strategy process. In a third part Florian Bertram presented his research on resource allocation to new and uncertain opportunities.

Tuesday, July 8 2008

RISE Colloquium: The Practice Turn in Strategic Entrepreneurship Research

by Florian Bertram @ 5:52 pm on Workshops  — Comments Off

On July 3rd 2008 RISE held a colloquium on the “Practice Turn in Strategic Entrepreneurship Research” at the University of St. Gallen. The colloquium was organized by Adrian Ackeret and Simon Grand.

In a first part central contributions to a strategic entrepreneurship perspective, specifically the papers of Brown & Eisenhardt (1997), Alvarez & Barney (2007) and Schendel & Hitt (2007) were discussed. In a second part Adrian and Simon presented their paper project “Collectivizing Entrepreneurial Agency in adolescent Software Companies".

Friday, June 6 2008

RISE Workshop 11.0: Entrepreneurial Management of Strategic Change

by Florian Bertram @ 5:58 pm on Workshops  — Comments Off

On June 5th 2008 RISE held a workshop at Ergon Informatik AG in Zurich. The workshop focused on the “Entrepreneurial Management of Strategic Change".

In a first part, Charlie Matter (CEO) and Oliver Kaegi (chief designer and member of the management team) described and discussed their perspectives on the successful strategic transformation of Finnova AG Bankware over the last few years, both from a business and a technology perspective. The case of Finnova is particularly interesting because it allows gaining an in-depth insight into the formation and growth of an entrepreneurial company, dealing with a changing customer community, a dynamic competitive setting, a new ownership structure, substantial organizational growth and technological development at the same time.

In a second part, Simon Grand identified major implications for our understanding of the entrepreneurial management of strategic change. With the study on Finnova AG Bankware, RISE Management Research further extended its research on the strategic entrepreneurship and management of software companies and their long-term development and
transformation.

Tuesday, May 6 2008

RISE Colloquium: Managing the Catch 22 of Organizational Change

by Florian Bertram @ 10:55 pm on Workshops  — Comments Off

On May 5th 2008 Harald Tuckermann and Johannes Rueegg-Stuerm presented their paper “Managing the Catch 22 of Organizational Change Processes” that was accepted for the EGOS Summer Workshop 2008 in the context of a RISE Colloquium. The colloquium focused on the topic of “Management Paradoxes". In addition to this paper Barret et al. (1995) and Clegg et al. (2002) where discussed as central contributions to this field.

Wednesday, April 2 2008

RISE Colloquium: Routinizing Innovation

by Florian Bertram @ 10:48 pm on Workshops  — Comments Off

On April 1st 2008 RISE members and affiliated researchers met for a colloquium on “Routinizing Innovation” at the Institute of Management of the University of St. Gallen. Central topic of the colloquium was routinization. Moderated by Kathrin Sele, the participants discussed the seminal contribution of Feldman & Pentland (2003) and the empirical application of the concept in Howard-Greenwill (2005).

In a second part of the event Kathrin presented her paper “Routinizing Innovation - A Practice Perspective” which was accepted at the 24th EGOS Colloquium in Amsterdam which was lively discussed by the particicpants.

Wednesday, December 19 2007

RISE Colloquium: Strategic Entrepreneurship and Actor Network Theory

by Florian Bertram @ 11:56 pm on Workshops  — Comments Off

The next RISE Colloquium will take place on January 10th 2008 at the Institute of Management in St. Gallen. The colloquium will discuss the current research of team members on Strategic Entrepreneurship and Entrepreneurial Management and discuss the application of Actor Network Theory (ANT), also known as Sociology of Translation in Management Research and in particular in the context of the research of RISE.

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Thursday, September 13 2007

RISE Workshop 10.0: Strategic entrepreneurship: resource allocation and technological innovation

by Florian Bertram @ 9:11 pm on Workshops  — Comments Off

We are pleased to announce the RISE Workshop 10.0 on “Strategic entrepreneurship: resource allocation and technological innovation”. The workshop will take place on February 7th 2008 in Zurich. The workshop will explore the idea of strategic entrepreneurship being a new and highly promising perspective in management research for understanding the role of entrepreneurs and managers in the innovation process. Technological innovation, as an uncertain, ambiguous and dispersed knowledge creation process, poses a set of key challenges to managers and entrepreneurs. One of them is to identify the right formats and mechanisms through which financial and non-financial resources can be allocated and invested into this knowledge creation process. The idea of strategic entrepreneurship addresses this challenge by conceptually integrating the logic of strategic resource allocation with the logic of entrepreneurial knowledge creation. The workshop will explore this important interplay which is a precondition for the successful commercialization of technological innovation.

First, Gerhard Passet, Head of Business Controlling at Nycomed, will talk about the role and impact of Private Equity (PE) as a strategic option to financing innovation and value creation in the context of the pharmaceutical industry. While PE has become an important vehicle for restructuring organizations in many industries over the past decade, it has been less frequently applied in the innovation-driven pharmaceutical industry. Based on his personal involvement in a PE-financed corporation and his long standing experience in the pharmaceutical business, Gerhard Passet will put a focus on how PE’s structured approach and time-bound business model deals with the inherent uncertainties and long time horizons of pharmaceutical product development being specific characteristics of this science and innovation-driven industry.

Second, Daniel Vonder Mühll, Managing Director of SystemsX.ch, will present the governance of the Swiss Initiative in Systems Biology, a sort of public start-up of seven Swiss Universities. Systems Biology is a new kind of research in life sciences involving disciplines such as physics, engineering, biology, chemistry, computer sciences, medicine, mathematics. The Swiss Federal Council and parliament decided to invest 200 Mio SFr for 2008-2011 into this field of research. Most important boundary conditions are the additional committment from the involved universities, scientific quality by state-of-the-art reviewing, and the fostering of ways and new forms of public-private-partnership for collaborations between academia and industry. Governance of the initiative has to consider the different stakeholders and topics that cover a wide range from basic science to intellectual property rights, from quantitative research to politics, from solid technology to upcoming innovations. The acceptance of SystemsX.ch will depend largely on a pragmatic set of checks and balances, as well as on the transparency of the application and review processes steering financial resource allocation.

Third, Simon Grand, founder and academic director of RISE Management Research, will talk about recent research on managerial and entrepreneurial strategy making, in particular on the complex interplay between the attraction, generation and allocation of financial and non-financial resources, a central process in successful business and company development, and organizational performance. While most research implicitly or explicitly assumes the existence of general performance measures, in this presentation, the process of defining, realizing and changing organizational performance itself is identified as a fundamental preoccupation and responsibility of entrepreneurs and executives on the board and top management level, both in established corporations and entrepreneurial firms.

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Nycomed AG
Directions to Nycomed WTC Zurich Oerlikon
Restaurant Kreis 6

Monday, May 7 2007

RISE Workshop 9.0 The Creation and Communication of Novelty: How Entrepreneurs and Managers Establish New Perspectives in Scientific Research

by Florian Bertram @ 9:23 pm on Workshops  — Comments Off

The RISE Workshop 9.0 on “The Creation and Communication of Novelty: How Entrepreneurs and Managers Establish New Perspectives in Scientific Research” takes place on June 7th 2006 at the Artificial Intelligence Lab (AILab) in Zurich Oerlikon. The workshop will look at the role of entrepreneurial scientists and science managers in establishing and making others adopt novel perspectives on the key concepts of an academic or business field.

First, Rolf Pfeifer, Director of the Artificial Intelligence Laboratory at the University of Zurich will talk about the establishment of a revised view of intelligence calling for a new paradigm in the field of Artificial Intelligence. More specifically, he will elaborate on the question: “how the body shapes the way we think”. Rolf Pfeifer will present this new theory of intelligence which is based on a set of fundamental “design principles” for intelligence, and also reflect on the challenges he has been facing as a researcher and manager in establishing this innovative and unconventional perspective over the last 20 years.

Second, Kathrin Sele, Research Associate of RISE will offer her views on how new perspectives and research paradigms unfold in a scientific context, thereby elaborating on the empirical findings derived from a running case study on the AILab, as well as discussing current insights in management research on those issues. In her presentation on “Agenda Setting for Innovative Research: Managerial Communication in Practice”, she will especially focus on the ability of manager and entrepreneurs for “agenda-setting” – as a tool and communicative practice they employ to spread new perspectives on central concepts in academic and business fields.

To wrap up the workshop Simon Grand will talk about “Building Intelligent Companies”, a recent joint project with Rolf Pfeifer on the implications of the design principles for intelligence and of related leading-edge research in Artificial Intelligence and Cognitive Science for the creation and development of innovative companies, and in particular for entrepreneurial and managerial agency in this context. The presentation will contribute and connect to one of the areas that have been discussed in the Workshop 8.0 as fundamental for strategic entrepreneurship and management, in fact our understanding of agency under uncertainty and of situational flexibility in contexts of changing priorities.

Participation in the workshop is on invitation only.

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Website AILab University of Zurich
Directions to AILab Zurich
Restaurant “Die Giesserei”

Sunday, November 12 2006

RISE Workshop 8.0 Practicing and Researching Entrepreneurship

by Florian Bertram @ 2:59 pm on Workshops  — Comments Off

The next RISE Workshop will address the topic of “Practicing and Researching Entrepreneurship” and will take place on February 1st 2007 in Zurich. The workshop will cope with the practicing of entrepreneurship and the researching of this phenomenon contrasting and mutually complementing the perspective of the entrepreneur with the perspective of the researcher.

First, Stefan Arn, CEO of AdNovum Informatik AG will talk about the practicing of entrepreneurship in the context of the internationalization of his software company. He will especially elaborate on recent developments in the company and share his fundamental appraisal of the economic, technological and structural changes in the software business.

Second, Dr. Simon Grand, Academic Director of RISE Management Research will present the perspective of the researcher, talking about “Creation and Convention: Researching Entrepreneurship under Uncertainty". In his presentation, Simon will refer to his research in the context of the software industry especially elaborating on the empirical findings derived from the cases of the software companies Adnovum, Ergon, Netcetera and Avaloq. The presentation reaches beyond an analysis of the specific context of the software industry in attempting to generalize on the role of the entrepreneur and manager in innovation under uncertainty and ambiguity drawing conclusions that are also relevant in other high technology contexts.

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Friday, July 7 2006

Wrap-up RISE internal Workshop on Stabilization and Flexibilzation of Patterns of Resource Allocation

by Florian Bertram @ 9:59 am on Workshops  — Comments (9)

Dear colleagues

Thank you very much for your contributions and the stimulating discussion on my dissertation project in our last workshop on Thursday. Three major insights I gained from the discussion and for the further elaboration of the proposal are first, that there are numerous implicit assumptions that have to be made explicitly. Second, that there are important issues concerning the design of the research project and its focus that have to be decided upon in the next steps of the proposal. Third, that from an empirical perspective the research question will circulate around strategic activities or a strategic activity like the notion of success of the firm or its valuation. Specific issues that have to be elaborated on are:

(1) The notion of resource has to be limited to financial resources to gain focus, or a broader understanding that includes non-financial resources has to be explained.

(2) A better delineation of action orientation as an empirical access and as a theoretical premise, also this is difficult in relation to grounded theory. At the moment action orientation is more an empirical access.

(3) The research questions consist of two blocks of questions that are contradictory as one block focuses on the mechanisms that are responsible for stabilization and flexibilization and the second block focuses on what an individual entrepreneur does to stabilize and flexibilize references. Here one has decide which position one does want to take based on research interest and theoretical foundation.

(4) It is not clear at the moment if an event discussion is feasible to elaborate on the questions this research addresses. It is also very important what kind events the focus is on as that has implications for theory and research design.

(5) In the translation from the research question to the conceptualization there are numerous assumptions that have to be made explicit in the next step.

(6) The topic of the research will focus on a topic like how the entrepreneur defines success for his firm or how he negotiates the value of the firm. Then, the research questions in the proposal presented are rather presumptions of how such topic could be conceptualized.

I’m looking forward for a continuation of our stimulating discussion on the blog!

Friday, June 30 2006

RISE internal Workshop Stabilization and Flexibilization of Patterns of Resource Allocation

by Florian Bertram @ 9:13 am on Workshops  — Comments Off

In the next Workshop on July 6th 2006 we will discuss the research proposal of Florian Bertram on the “Role of the Entrepreneur in the Stabilization and Flexibilization of Patterns of Resource Allocation".

Monday, June 5 2006

RISE Workshop 7.0 on Translating Science to Business

by Florian Bertram @ 11:09 am on Workshops  — Comments Off

The workshop on June 1st circulated around the topic of translating science to business with a special empirical focus on biotechnology. (1) Prof. Bernard Witholt of ETH emphasized the importance of incubators illustrating his argument with succes-stories and best practice from the Institute of Biotechnology at the ETH and and the Zernike Science Park Groningen in the Netherlands. (2) Marcos Garcia presented the results of his dissertation project “Translating Life Sciences to Healthcare Business” employing actor network theory to the resource based view of strategy. (3) Florian Bertram introduced his early stage research project on the routinization of strategy in biopharmaceutical ventures.

During the discussions it became obvious that actor network theory could be a feasible theory enriching management research but that it has to be applied more thoroughly and that research will benefit especially from empirical accounts and observations.

Thursday, April 13 2006

Announcement: RISE Workshop 7.0 on Translating Science to Business

by Florian Bertram @ 11:22 am on Workshops  — Comments Off

The workshop will elaborate on the processes and practices of entrepreneurs and managers to exploit scientific knowledge and turn it into successful businesses, drawing on first hand empirical insights from major biotech ventures.

First, Prof. Bernhard Witholt of the ETH Zurich will talk about the “evolution of university strategies in developing high-tech companies in Europe” focusing on the financial aspects and challenges involved in the spin-out of ventures from university from the perspective of a leading polytechnical university. Prof. Witholt will deliver insights into his own experiences as the director of the Institute of Biotechnology and into the distinct cases of companies that have been spin-out of his institute like Cytos and Glycart.

Second, Marcos García Pedraza will present key findings from his dissertation project with four Swiss biomedical companies, namely Actelion, Arpida, Prionics and The Genetics Company. Marcos’ research is led by the research question, how nascent firms in the biomedical industry translate life sciences into business capabilities. His findings present the role of the entrepreneur and the process of developing strategic business capabilities in the context of life science and technological innovation which is characterized by inherent uncertainties and discontinuities.

Third, Florian Bertram will talk about his recent research project on the routinization of strategy formation in new ventures. He will emphasize that the routinization of strategy formation takes place through different organizational learning mechanisms and that those distinct mechanisms have an impact on the resulting strategy. Those effects are supposed to be of high relevance in the context of biotechnology, due to the high degree of newness, uncertainty which makes learning from experience inherently difficult.

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Monday, February 13 2006

RISE Workshop 6.0 on Strategy Formation and Business Creation under Uncertainty

by Florian Bertram @ 10:29 am on Workshops  — Comments Off

Strategy formation and business creation are rare and idiosyncratic events, characterized by high degrees of newness, resulting in inherent uncertainty and ambiguity which makes any attempt of interpretation and legitimation an ambitious project. The sixth RISE Workshop focused on the issue of uncertainty by elaborating its manifestations in two different contexts: First, it considered the problem of new business creation with an contribution of Ergon’s Teddy Graf talking about the building of a new business model; second, Daniel Bartl of RISE referred to Roche’s legitimation and rationalization practices in the context of its “innovation of the innovation model”. A central premise that derived from this discussion is that uncertainty and ambiguity is not only a factor to be reduced in processes of strategy formation and business creation but that they are enablers of innovative action at the same time.

Software factories: a feasible approach? (Teddy Graf, Chairman of the board, Ergon Informatik AG)
Teddy Graf, Chairman of the board of Ergon Informatik AG introduced the concept of the JET software factory with which his company develops software applications. The software factory automates the development of business applications consisting of a platform on which solutions are build and specialized languages for the modelling of the solution. Success demands a deep understanding of both, technical skills and the business model and processes of the customer.

Teddy Graf suggested that the development in the industry will have to change from a technological orientation to a business orientation. Neither standardized products nor offshore software develop-ment are solutions to this problem. Hence, it will not be sufficient to provide separated bundles of standard software but an integration of different software modules which is possible with the concept of the software factory. The goal has to be the fulfilling of the customer needs of an integrated solution and not to deliver software packages which have to be adapted through intense and expensive con-sulting projects. The advantage of the software factory model lies especially in the high efficiency with which integrated software solutions can be developed. Of high importance is also the efficiency with which the software can be adapted and changed after implementation, lowering costs dramatically. Important characteristics with which the result is evaluated by the customers are increasingly quality, accuracy and value added.

The discussion revealed that the concept of software factory not only helps to improve the cost, quality, and efficiency of software development and integration, but that the concept must also be understood as a frame of reference that helps software projects (and the organizsation overall) to structure a highly uncertain and ambiguous process.

Management practice/s under uncertainty: creating continuity in a discontinous environment (Daniel Bartl, RISE Management Research)
Building on intense fieldwork with F. Hofmann-La Roche and in particular on selected artefacts like investor presentations and statements of organizational members, Daniel Bartl’s talk was led by the question why and how high-tech firms, in particular R&D organizations can form coherent and con-tinuous strategies in the context of technological innovation, which is characterized by inherent uncer-tainties and discontinuities. As an empirical example, managerial and research practice at Roche was described as ambiguous, hypothetical, controversial and often contested. Nevertheless, the Roche model appeared to have been logically emerging over time.

The research revealed that the references built into the model are not specified in detail but provide an interpretative flexibility that enables different and diverse internal and external communities to apply and enact these references through creative managerial practices and to replicate them with discipline across events over time and space. Through those practices (historical) continuity can be demonstrated in an persistently changing, i.e. discontinuous environment. Findings point to the central role of man-agers’ interpretative practices for establishing stable references/patterns which normalize perceived discontinuities, and thereby generate a coherent, continuous, and thus credible strategy

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Literature
Software factories: a feasible approach?
Drucker, P. (1994). The Theory of the Business. Harvard Business Review, September-October: 95-104.
Gomez, P., B. Jones. (2000). Conventions: An Interpretation of Deep Structure in Organizations, Or-ganization Science, 11(6): 696-708.
Orlikowski, W. (2000). Using Technology and Constituting Structures: A Practice Lens for Studying Technology in Organizations, Organization Science, 11(4): 404-428.

Management practice/s under uncertainty: creating continuity in a discontinous environment
Suchman, L. (2000). Problematizing ‘Innovation’ as a Critical Project, Technology Analysis & Strategic Management, 12(3): 327-333.
Suchman, M. (1995). Managing Legitimacy: Strategic and Institutional Approaches, Academy of Man-agement Review, 20(3): 571-610.
Wilson, D., P. Jarzabkowski. (2004). Thinking and acting strategically: New challenges for interrogat-ing strategy, European Management Review 1: 14–20.

Saturday, December 3 2005

Key Findings of RISE literature & project workshop

by Dirk Martignoni @ 9:41 am on Workshops  — Comments Off

RISE adopted a new format for its internal workshops. They now comprise two sections. We first present and discuss one of our own recent paper or research projects. Thee second section is similar to what was called “RISE Literature Workshops” in the past. There, we discuss literature relevant the conceptual and empirical research conducted at RISE

In one of their recent projects, Grand and Martignoni (2006) investigated the effects of imperfections in knowledge transfer on the emergence of organizational knowledge. Contrary to common wisdom, the results of our agent based simulation suggest that small perturbations in knowledge transfer can positively affect organizational learning performance even if these biases are stable over time or shared by all members of the organization. In our discussion, we focused on methodological issues. For example, while agent based simulations allow to quantitatively investigate phenomena traditional empirical research can hardly capture the mechanisms resulting in the emergence of these phenomena remain hidden.

In their work, Gomez and Jones (2000) sketch an alternative axiomatic core for economic theory. They argue that in a perfect world envisioned by standard economic theory, a world without asymmetries and imperfections in knowledge, rationality can not be achieved under uncertainty. Under uncertainty, coordination among economic actors can only be achieved through conventions. Thus, deviations from rationality have a social function of coordinating actions among economic actors. Consequentially, coping with uncertainty becomes not a problem of rationality but of rationalization.

Literature:

Grand, S, & Martignoni, D. 2006. Organizational Learning Through Imperfect Knowledge Transfer – An Agent Based Simulation. Working Paper submitted to the Academy of Management Conference 2006

Gomez, P.Y & Jones, B. 2000. An Interpretation of Deep Structure in Organizations, Organization Science, 11(6): 696-708

Saturday, October 1 2005

Key Findings of RISE literature workshop on Latour’s Science in Action

by Dirk Martignoni @ 9:54 am on Workshops  — Comments Off

Latour’s book “Science in Action” sparked much interest in the scientific community, cumulating in the so called “science war”. Most pronounced, he is criticized for his social constructivistic and relativistic perspective on knowledge production. In this workshop, we discussed whether these accusations hold true and, more fundamentally, whether it is not the very essence of Latour’s work to provide a new perspective on such distinctions like, for example, realism and relativism.

Key Finding 1: Knowledge Production
Knowledge is often defined as justified true beliefs. In “Science in Action”, Latour does not provide own definitions for knowledge, belief, and many other philosophical concepts. At first sight, this may appear as a lack of scientific rigor. But given his understanding of how scientific facts are produced, it is only consistent to refrain from providing definitions.

Central to his understanding of scientific knowledge production is the concept of translations. In his view, knowledge does not simply diffuse. Instead, science is constantly “in the making”; it is always transformed by the people involved according to their own interests. Every translation is a fundamentally creative act of re-creation. Thus, knowledge changes as it is passed on and translation processes become a source of innovation.

At the same time, these translations are problematic, each vulnerable to critique. Latour argues that the main mechanism to stabilize and immunize translations against critique is black boxing. There is no way to objectively rationalize a translation; they can always be challenged. Only if they have been turned into taken-for-granted facts, black boxes, critique falls silent.

One could argue that these translation problems are deficiencies to be overcome. Latour, instead, argues that they are essential for the creation of new scientific facts. Without problematic translations, knowledge claims would be even more challengeable. Every claim in the chain of arguments would become apparent and, thus, a subject to criticisms. Furthermore, much more fundamental epistemological concerns would arouse like, e.g., the problem of induction or infinite regress. Thus, Latour suggests that it is rather heterogeneity and imperfect translations which stabilize a knowledge claim than perfect common knowledge and perfect rationality. Consequentially, Latour “black boxes” concepts like knowledge and beliefs in his own writing. By providing definitions, he would have exposed the concepts to criticism.

Key Finding 2: Theory of Action vs. Theory of Actors
The strategy-as-practice literature often refers to Latour’s work. Does this imply that Latour proposes an alternative theory of action? And if so, given his focus on science, do his insights also hold for management?

We would rather argue that Latour describes action but does not advance a theory of action. Furthermore, as the label “actor network theories” implies, he is much more concerned about the actors involved in the production of science, be it human actors or artifacts, and their interaction than offering an alternative theory of action.

There are also some decisive differences between science and management: (1) As vividly described in the first chapters, science is much about producing texts. By contrast, managers rarely produce texts to describe and justify their positions but, instead, rely on oral communication. The managers’ rational behind this approach might be that a position confirmed in writing is much more vulnerable to critique than any position only put forward in oral communication. (2) According to Latour, all laboratories are essentially the same. By replicating prior experiments, all laboratories strive for the same state of the art in equipment, organization etc. Contrastingly, firms seek their own identity, a distinctive position in a market, and unique competitive advantage. Thus, while laboratories converge to a common standard, firms are striving for distinctiveness. Thus, we think, before transferred to a management context, the mechanisms described by Latour for “big science” must be carefully translated.

Key Finding 3: Dichotomies, Dualities, Dualisms, and Latour’s Janus
Research is frequently confronted with the question of how to conceptualize the relationship between two seemingly contradictory and incommensurable perspectives. Most often, they are conceptualized as dichotomies. Others like, for example, Giddens use the concept of duality. Latour uses the two-headed Janus to introduce distinctive and irreconcilable perspectives. The two faces of Janus talk at once and they say entirely different things. In one case, for example, Janus talks on the left side like a realist and one the right side like a relativist. In another case, the two faces represent a “science in action” vs. “ready made science” perspective. Latour introduces these distinctions not to later subscribe to one of the perspectives offered. Rather, he tries to reconcile them. Consequently, new types of research questions arise. Instead of, for example, the traditional questions of whether reality really exists out there or whether reality is just the result of our doing, Latour is much more concerned with the question of how actors actually live, utilize, and constantly switch between these different perspectives.

Literature:
Latour, B. 1987. Science in Action - How to Follow Scientists and Engineers Through Society. Harvard University Press.

Sunday, July 17 2005

RISE Project Workshop 5.0 on The Strategic Management of Entrepreneurial Opportunities

by Philipp Tuertscher @ 1:50 pm on Workshops  — Comments Off

Entrepreneurial opportunities have been the overarching theme of the RISE Project Workshop 5.0 on June 2nd 2005. The common focus of all contributions to this workshop has been on the realization of entrepreneurial opportunities. In contrast to the preceding workshop, the empirical focus was on entrepreneurial ventures rather than on established corporations in the context of both, the life sciences and the information technology industry. During the workshop, it emerged that the recognition and exploitation of entrepreneurial opportunities is a very central and important issue. Hence, the presentations and discussions add to a systematic expansion and development of the fundamental contributions to this debate proposed by Shane (2000) and Shane & Venkataraman (2001).

Seizing Opportunities (Harry Welten, CFO Arpida Ltd.)
Harry Welten, CFO of Arpida, a biopharmaceutical company, gave a deep insight into the development of his company, which is characterized by the continuous pursuit of entrepreneurial opportunities. Mr. Welten shared with us his view on the global market opportunities of Arpida’s products and elaborated on the high dynamics of the market. While coping with the advantages of anti-infectives as business opportunities he presented Arpida’s product pipeline and gave an overview about iclaprim and AR-709, which are both in an advanced stage of development. In essence Mr. Welten provided the audience with insights into the management of entrepreneurial opportunities in a leading pharmaceutical company from a financial perspective. Thereby, it is important to understand financial management of the firm and research and development as loosely coupled systems, mutually determined while permitting reciprocal autonomy. The coexistent independence and collaboration of these two themes, which are both of crucial importance for the prosperity of the firm, is seen as a critical factor of success. A loosely coupled system can be regarded as a coalition of units and interests, each attempting to obtain something from the collective by interacting with others, while each has its own objectives and preferences (see Weick, 1979). Furthermore, we learn from the Arpida case that entrepreneurship must be understood as a complex, dynamic process, in which the entrepreneur is continuously confronted with or proactively creates new opportunities. Seeing entrepreneurship as a consecutive process, these decisions result in path dependencies that constrain the scope of future opportunities. Regarding growth prospects and the proposed business concept of the firm, the business model of established pharmaceutical firms can be seen as a role model, which implies a high an advanced attentiveness towards the strategies proposed by those firms.

Entrepreneurial Opportunities – Impact of Dispersed Information & Knowledge and Influence of Economic Environment (Matthäus Urwyler, RISE)
Identification, evaluation and exploitation of entrepreneurial opportunities are key processes in entrepreneurial activities. Building on his dissertation, Matthäus Urwyler first talked about the role of dispersed information and knowledge and their impact on the entrepreneurial processes. The second part of his presentation dealt with the influence of the economic environment on the identification of new opportunities. While the individual is embedded in the context of the firm, opportunities are embedded in the context of the environment. If something is perceived as an opportunity is dependent on the environmental context it is embedded in. The inherent tension between individual and opportunity, both embedded in its distinct context, results in a dynamic interdependence between the firm and the environment, entailing mutual stabilization.

Evolution of Incubation Models – From Hype to Downturn (Simon Grand & Philipp Türtscher, RISE)
In the preceding presentations the dynamics of entrepreneurial opportunities were emphasized and could be traced back to the interrelationships between entrepreneurial opportunities, economic environment and dispersed information. Similarly, the third contribution to our workshop addressed the dynamic aspects of entrepreneurial opportunities. Simon Grand and Philipp Türtscher introduced the central insights of their research project about the evolution of incubation models which was conducted in cooperation with PricewaterhouseCoopers. While some business incubators have ceased to exist, many of them are still in business. The question that was raised is what has changed for business incubators since the burst of the dot.com bubble and how did they react on the challenges of the downturn? The observations made by the researchers suggest that, both the type of entry and the underlying argumentation at the time of entry during the hype had a strong influence on the development of the business incubators during the downturn: whether the engagement in the incubation business could be continued successfully, it had to be adapted, or an exit was required.

Resources
Workshop program
Reader (password required)

Literature
The core literature which covers the issues discussed in the presentations is listed below. The articles and book chapters represent a brief overview of the current academic discussion about entrepreneurial opportunities and document the insights offered during our workshop.

Entrepreneurial opportunities – the impact of dispersed information and knowledge and the influence of the economic environment
Shane, S. (2000). “Prior knowledge and the discovery of entrepreneurial opportunities”. Organization Science, 11: 448-469.
Shane, S. (2000). “The promise of entrepreneurship as a field of research”. Academy of Management Review, 25: 217-226.
Zahra, S. and G. G. Dess (2001). “Entrepreneurship as a field of research: Encouraging dialogue and debate”. Academy of Management Review, 26: 8-10.
Singh, R. P. (2001). “A comment on developing the field of entrepreneurship through the study of opportunity recognition and exploitation”. Academy of Management Review, 26: 10-12.
Shane, S. and S. Venkataraman (2001). “Entrepreneurship as a field of research: A response to Zahra and Dess, Singh, and Erickson”. Academy of Management Review, 26: 13-16.
Ardichvili, A., R. Cardozo, et al. (2003). “A theory of entrepreneurial opportunity identification and development”. Journal of Business Venturing, 18: 105-123.

The evolution of incubation models - from hype to downturn:
DiMaggio P. J., Powell W. W. (1991). “The iron cage revisited: institutional isomorphism and collective rationality in organizational fields”. In The New Institutionalism in Organizational Analysis, ed. WW Powell, PJ DiMaggio, pp. 63-82. Chicago: Univ. Chicago Press.
Friedland R., Alford R. R. (1991). “Bringing society back in: symbols, practices, and institutional contradictions”. In The New Institutionalism in Organizational Analysis, ed. WW Powell, PJ DiMaggio, pp. 232-66. Chicago: Univ. Chicago Press.
Lounsbury, M. and M. A. Glynn (2001). “Cultural Entrepreneurship: Stories, Legitimacy, and Acquisition of Resources”. Strategic Management Journal, 22: 545-564.
Dorado, S. (2005). “Institutional Entrepreneurship, Partaking, and Conventing”. Organization Studies, 26(3): 385-414.
Santos, F. M. and K. M. Eisenhardt (2004). “Constructing Markets and Organizing Boundaries: Entrepreneurial Action in Nascent Fields”. Academy of Management Best Conference Paper 2004, BPS: J1.

Monday, May 2 2005

Key Findings of RISE literature workshop on Institutional Theory

by Daniel Bartl @ 8:53 am on Workshops  — Comments Off

RISE publishes a summary of the most important findings of its monthly literature workshops (link to wiki) on the RISE.blog. On April 19th and 27th, the RISE researchers discussed a selection of literature on (new) institutional theory. The following presents an extraction of the workshop findings and its implications for RISE management research.

Institutional theory, and neoinstitutional theory in particular, has been one of the most influential approaches to sociology in the past 30 years. Being prominent representatives of this body of literature, Walter Powell and Paul DiMaggio represent the “social constructionist” as opposed to the “rational-choice” version of neoinstitutionalism. As the editors of the seminal book “The New Institutionalism in Organizational Analysis”, they bring together some of the foundational articles in the field and place them in context of the wider organization and sociological theory. In reviewing the book, a number of observations become particularly salient.

Key Finding 1: Core Phenomena and Theoretical Building Blocks
Institutional theory, from a sociological perspective (neoinstitutional theory), emphasizes the role of institutionalized contexts and fields in gaining legitimacy for a firm’s activities from external bodies (Meyer & Rowan, 1977). As such, literature on institutionalism explores the relationship between the organization and its environment. From a institutionalist perspective organizations adopt environmental structures which enables them to conform to the expected behaviour of an organizations within a specific field. Expected institutional behaviours and practices are labelled “rationalized myth”, since their efficacy depends on a collective belief which cannot be objectively evaluated. According to Meyer and Rowan (1977), organizational structures are thus not necessarily designed based on the needs of internal technical operations but derived from the environmental beliefs about the features of a rational and efficient organizational design.
Isomorphism is thereby the umbrella term (DiMaggio & Powell, 1983) that describes a number of fundamental mechanisms of how firms, as a consequence of field-level institutions, incorporate institutionalized rules to facilitate resource attraction, ensure stability, and enhance survival prospects (Meyer & Rowan, 1977). DiMaggio and Powell (1983) identify three isomorphic processes: coercive, mimetic, and normative. Based on these findings, institutional theory not only describes how firms gain legitimacy, but also why they become more similar and homogenous over time with respect to their organizational structures.
At the same time, while in “old institutionalism” researcher tried to explain organizational or institutional change, “new institutionalism” strives for the opposite, in fact, to explore the reasons for stability of organizational design and structure (Powell & DiMaggio, 1991).
However, new institutional theory’s unambiguous focus on homogenity and similarity, leaves open the questions of the role of heterogenity in the process gaining legitimacy. Institutional theory could strongly benefit from insights developed in Actor Network Theoy (ANT) in the version of Bruno Latour and Michel Callon.

Key Finding 2: Sharing the Axiomatic Core or Protecting what is not there?
Based on a set of highly influencial antropologists associated with phenomenology (e.g. Parsons, 1960), ethnomethodology (Garfinkel, 1967; Goffman, 1959, 1977), and also with practice research (Giddens, 1984; Bourdieu, 1990), DiMaggio and Powell suggest a role for the actor within an institutionalized field. However, the inclusion of these authors, and the theory of action itself, appear somehow disconnected from what they present in their book (1991) as the seminal works in new institutional analysis. A positive critique would argue that institutionalist really share the axiomatic core of the theory of action and the respective authors on which it is based. Powell and DiMaggio (in chapter 1 of their book of 1991) complement the early studies of Meyer and Rowan (1977) and DiMaggio and Powell (1983) with a promising layout of a theory of action which cannot be found until that time and which is, unfortunately, hardly taken into focus in today’s research on institutional theory.
The (not entirely) negative account would say that the role of Powell and DiMaggio’s theory of action was to apply in a self-reflective (or maybe unconcious) way what Meyer and Rowan (1977) suggested as the core mechanism to gaining legitimacy: to decouple the technical core (the macro-institutional theory) from the institutionalized and taken-for-granted formal behaviours (the necessity of a micro-foundation within a theory). This allowed them to protect their body of research from being questioned since it took a clearly opposite view on organizational behaviour relative to rational choice theories and intentionality, and also relative to the growing literature on competitive differentiation and variation. This argumentation could explain the enormously comprehensive research program which integrates a number of (commonly perceived as incompatible) positions such as evolutionary theory (Nelson & Winter, 1982), behavioural theory (Cyert & March, 1963), or cognitive theory (Weick, 1995).
In terms of future research, institutional theory still lacks a precise theory of action which elaborates the role of the actor in an institutionalized field. Overcoming the difficulties of combining different levels of analysis would release a number of contradictions in research on institutional theory.

Key Finding 3: Intersections of Institutional Theory with Related Concepts
Stability (and change), as a central and common interest across major theories such as economics, evolutionary theory, knowledge-based views, institutional theory, or cognitive theory and dominant logic, is explained clearly different by these theories. As an example, and in a very generalized form, evolutionary theory is clearly distinct from processes of institutionalization. While evolutionary theory builds on the sequence of variation, selection and retention, strongly framing it as a learning process, institutional theory conceptualizes stability as a conforming, partially mimetic, coercive, or normative behaviour with reference to both the broader environment, and the institutionalized other – thereby pointing to the convergence and similarity of organizations in an institutional field, but also to the aspect of diffusion of institutionalized practices.
Another difference between the two theories can be identified with regard to the levels of analysis. Institutional theory, in particular the new institutionalism based on DiMaggio and Powell (1991) remains clearly on a macro and interorganizational level (and cements its origins in sociology), while evolutionary theory applies the three-phased process on any level, including the cognitive (although such arbitrariness is not a helpful guidance for a researcher).
As a conclusion for relating one theoretical body with another, it is important to distinguish between the central mechanisms proposed by a theory, and its associated terms and labels. The prime interest is not in the vocabulary of a theory (e.g. routines, which doesn’t equal evolutionary theory, or knowledge, which is not equated with a knowledge based view). Rather, the focus lies on the mechanisms based on which the phenomena of interest are explained and discussed.

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