Journal of Technology Management & Innovation by Chimera Innova Group

J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

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ISSN: 0718-2724. (http://jotmi.org) Journal of Technology Management & Innovation © Universidad Alberto Hurtado, Facultad de Economía y Negocios.

J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

Active Internationalization of Software Enterprises: Scale Development and Validation Maurício Floriano Galimberti1*, Andreia Zanella1 Abstract: A 34-item scale was developed to measure the attributes that contribute to success in the active internationalization processes of small and medium enterprises of software. Data from 103 companies was analysed. The scale was developed and available online in 4 languages. Based on established scale development procedures, such as exploratory and confirmatory factorial analysis, a final version of the research scale was proposed, composed by 15 items grouped in 4 dimensions. Innovation, entrepreneurship, network, and foreign market knowledge appear to be important factors for the success in the active internationalization processes of small and medium enterprise of software. Reliability and validity measures were calculated in order to check the adequacy of the proposed model. Concluding remarks discuss theoretical and managerial implications with limitations and directions for future research. Keywords: active internationalization; small and medium-sized software enterprises; scale development; software SMEs; internationalization of software enterprises. Submitted: May 2nd, 2018 / Approved: June 12th, 2019

1. Introduction Even with large domestic markets, internationalization can be characterized as an efficient strategy, especially in the case of small and medium-sized software enterprises (SMEs). internationalization can be a key instrument for strengthening companies and increasing the competitiveness of countries in an environment of fierce international competition. Factors such as increased access to technology, dilution of R & D costs when there is an increase in the scale of production, incoming of profits and dividends by affiliates, and increased brand visibility in foreign markets may result in increased credibility, both external and internal, which would also be a factor of protection and expansion in the domestic market. Although internationalization of software SMEs is increasing in several regions of the world, the theories and models of internationalization have shown limitations in explaining and providing guidance for the success of these types of SMEs in international markets. The vast majority of studies on internationalization were focused on large manufacturing companies (MNCs –Multinational Corporations), as stated by (Andersen and Buvik, 2002). The internationalization of smaller firms and of the service sector, such as of software, also called new technology-based firms (NTBFs) (Bollinger, Hope and Utterback, 1983), has become more focused on research in the past ten years, generally, with results explained from case studies, but with interesting new concepts. One of these concepts deals with the determinants of internationalization of the “passive” or “active” type, the latter being directly related to innovation and to the qualification of the professionals of the companies. (Roselino, 2006) highlights that in the “active” internationalization, innovation is more concentrated in the host nations, and software products or related services are characterized by high added value, being developed by highly qualified professionals in software

engineering. These aspects are of fundamental importance for the “active” internationalization of software companies. (Ronkko, Ojala and Tyrvainen, 2013) say that “Innovation should also be a guideline for internationalization in the software industry”. Cases such as Airbnb and Uber, for example, with value-added technology and services can corroborate such assertions. In such a scenario, there is a lack of empirical results that allow deepening research on the internationalization of SMEs of innovative or high technology products through the application of quantitative research. This research contributes to the dearth of empirical research on active internationalization in software SMEs context by developing a valid and reliable research scale. The scales were developed in four languages, with reverse translation, and applied in countries whose native languages are English, French, Portuguese or Spanish. Following the scale development and data collection steps, the managers’ perceptions about the internationalization of software SMEs were subject to an exploratory factor analysis (EFA) and confirmatory factor analysis (CFA), enabling the achievement of the final version of the conceptual model (research scale) to assess the internationalization of SMEs. The final research scale is composed by 15 items grouped in 4 dimensions. Reliability and validity measures were also calculated in order to check the adequacy of the proposed model. The paper starts by reviewing the conceptualization and dimensionality of internationalization of SMEs providing the basis for exploring the content domain of software SMEs. It then explains the methodology followed to collect data through a survey, the scale development, and the analysis procedures to present the psychometric properties of the scale. Concluding remarks highlight theoretical contributions, managerial implications and limitations with avenues for further research also being suggested.

1) Department of Informatics and Statistics (INE), Federal University of Santa Catarina (UFSC), Campus Universitário Trindade, Cx.P. 476, Florianópolis, Brazil *Corresponding author: M.F.Galimberti@ufsc.br

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2.Â Literature review on internationalization of SMEs Even though the traditional theories on internationalization of companies do not distinguish small and large companies in the process of expansion into foreign markets, they generally focused on large manufacturing enterprises (Andersen and Buvik, 2002). Nonetheless, within the scope of this paper, it is more appropriate to consider approaches that can be applied to the segment of SMEs, especially software and services. In the beginning, no validated model was found to be applied in quantitative research on the internationalization of SMEs. Thus, this study sought to investigate later internationalization approaches that could better explain the internationalization of software SMEs. In this context, the proposal of a model based on contemporary approaches to internationalization was found in the work of (Galimberti and Wazlawick, 2015; 2016). This model, presented in Figure 1, was applied in a multiple case study, and seeks to explain the internationalization of the active type, that is, one in which the company that internationalises owns the product and the innovation of the product /

service being internationalised. The model is based on the following contemporary approaches: the Innovation-Based Models of internationalization (I-Models) (Bilkey and Tesar, 1977; Cavusgil, 1980; Reid, 1981; Czinkota, 1982); the Networks Model (Johanson and Vahlne, 2003) is an extension to the Uppsala model (Johanson and Vahlne, 1977); the Theory of International Entrepreneurship (Andersson, 2000); and the Born Global approach (Rennie, 1993; Phillips McDougall, Shane and Oviatt, 1994; Madsen and Servais, 1997; Harveston, Kedia and Davis, 2000; Sharma and Blomstermo, 2003; Chetty and Campbell-Hunt, 2004). From such contemporary approaches, and from interviews with software specialists, the model of Figure 1 was proposed by (Galimberti and Wazlawick, 2016) with four dimensions: innovation, entrepreneurship, relationship network and knowledge about the foreign market. These dimensions were defined with 32 attributes that served as the basis for the scale proposed in section 3 of this paper. For this reason, the concepts related to the attributes present in the model of Figure 1 are synthesized below from the analysis of the original sources adopted by the contemporary approaches mentioned above.

Figure 1: Four dimensions for active internationalization of software SMEs

Fonte: (Galimberti and Wazlawick, 2016)

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The first seven attributes of the model try to explain the importance of the Innovation dimension for the internationalization of software SMEs. The first attribute is absorptive capacity (ACAP), which, according to (Zahra and George, 2002; Chetty and Campbell-Hunt, 2004), is a set of four complementary capacities of an organisation, namely acquisition, assimilation, transformation and exploration of knowledge. The second attribute addresses the knowledge base of a company, being the implementation of knowledge assimilation and transformation capacities as determinants for the growth of a company, as discussed in (Jantunen, 2005; Saarenketo et al., 2009). And, although the model is related to absorptive capacity, it treats the first attribute in a disconnected way, as (McDougall, 1989; Rennie, 1993) point out. The following attribute refers to commitment to innovation as the company’s effort undertaken in innovative activities, seeking to develop technologically new or improved processes and services or goods, or yet as a strategic decision to internationalise (Galimberti and Wazlawick, 2016). The fourth attribute, which deals with quality and reliability of products, albeit from a Born Global perspective, also refers to the set of attributes of representative qualities of the software engineering subject, which includes reliability (Ghezzi, Jazayeri and Mandrioli, 2003). Attributes five and six are characterized, firstly, by the degree of use of information technology as a means and not as an end to innovation, while the second refers to the technological advantage as an influencer of technological innovation (Galimberti and Wazlawick, 2016). The last attribute of this dimension comes from the proposal of (Roselino, 2006) on active internationalization and tries to explain the importance of the technical team’s education background for innovation, being that innovation would be the main characteristic of the company that actively internationalises. (Roselino, 2006) states that “[...] the most complex stages of the process are certainly those that comprehend the software engineering activities, concentrating the most critical phases of production, since the activities of greater technological content would reside in those.” The second dimension brings five attributes related to Entrepreneurship characteristics that might help to explain the success of the internationalization process of software SMEs. Attribute number eight addresses the preferences, motivations and expectations to take risks on the international market (Andersson, 2000). The ninth attribute explicitly refers to the entrepreneurial attitude which would be influenced by the individual characteristics of the entrepreneur (Shane, 1996; Whynes, Ennew and Feighan, 1999), and here it represents not only attitudes, but also experiences, motivations, and behaviours of the decision maker. Attribute number 10 is justified due to the definitions of the authors of the Born Global Perspective that consider the great experience and qualification of the entrepreneur for the international market as determinant for internationalization. The following attribute deals with the entrepreneur’s education background for the international market, differing from the know-how of the entrepreneur (previous attribute), but it also relates to the education background in software engineering for designing innovative products, as described above by (Roselino, 2006). The entrepreneur’s level of learning characterizes the last attribute of this dimension and has its origin in the three learning categories of (Shiba et al., 1993) and in the

Network Model of (Johanson and Vahlne, 2003), which advocates that the decisions about the process of internationalization are determined directly or indirectly by learning and by the relationships within the local business networks, and expand towards international markets. The third dimension of research is homonym with the Network model in which (Johanson and Vahlne, 2003) identify the intensity of the company’s engagement in relationship networks with suppliers, consumers, competitors, distributors and governments as determinant for internationalization. (Galimberti and Wazlawick, 2016) also added to those the relationship with professional associations, or trade associations, based on observations about the software market and on the suggestion of experts who participated in the case study research. Although such networks were grouped into a single network-related variable within the country of origin of the company, it was broken down into the six attributes from number 13 to 18 of Figure 1. Thus, the research performed could better map the specificities of internationalised companies in relation to network involvement within the country of origin. The same strategy was adopted to define the other six attributes of this dimension of research that deal with relationship networks outside the country of origin, namely the attributes from number 19 to 24. Besides the Network Model, the Innovation-Based Model (Reid, 1981) and the papers on the Born Global Perspective (McDougall, 1989; Rennie, 1993; Sharma and Blomstermo, 2003) also contributed to the structuring of this research dimension. The fourth, and last dimension, groups five attributes of contemporary literature on internationalization plus the last three that have emerged from direct and indirect observations and suggestions from experts interviewed in the case study research by (Galimberti and Wazlawick, 2016). Attribute number 25 takes into account that knowledge about market niches is considered determinant by (Johanson and Vahlne, 2003) for greater participation in relationship networks, while knowledge about the demand of international markets is relevant for the type of marketing entrepreneur of (Andersson, 2000). The next three attributes are also derived from (Andersson, 2000) when stating that the structure entrepreneur would act in mature industries (attribute 27) and his strategy would be implemented at the corporate level, engaging in the restructuring of industries, motivated by attractiveness (attribute 28) and market competitiveness (attribute 29). As previously mentioned, observations and suggestions have motivated (Galimberti and Wazlawick, 2016) to add to the model attributes that represent cultural aspects, languages and government policies. The first two are justified by recommendations from more than one specialist in the area of software engineering and international software businesses and also because of the importance of the experiences of the born global entrepreneur in other cultures, not to mention the fact that this attribute is also related to specific practices of international markets. As for the last attribute, it would be justified depending very much on the segment in which the software company operates, so they chose to add it to the research model based on the experiences of global software companies. The 32 presented attributes and related concepts constitute the theoretical basis for the construction of the detailed scale of research that follows.

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3. Research methodology and scale development The review of the literature on internationalization focusing on technology SMEs has confirmed the dearth of quantitative studies that would allow a deeper understanding of the subject. Thus, a project was started for the development of research scales and instruments for data collection.

The method used sought to define the criteria for selecting the companies to participate in the data collection, namely those proposed by (Galimberti and Wazlawick, 2016), according to Table 1, adding the criterion that each company must be from a country whose native language is one of the four mentioned, that is English, French, Portuguese or Spanish.

Table 1: Selection criteria of software companies to the research (Galimberti and Wazlawick, 2016)

The next step focused on designing the research scales, followed by validation and adjustments. To validate the instruments at the level of translation and of understanding has been chosen to discuss the data collection instruments by interviewing entrepreneurs of software SMEs. The collection instruments were developed in four languages, namely English, French, Portuguese and Spanish, being initially written in one of the languages and translated to the others afterwards. The translations were done by native speakers of each language. For each language, the translation and back-translation procedure was used to create the other versions of the scale, or cross-national survey instruments, as suggested by (Brislin, 1970). Such procedures were carried out by other people, rather than those who performed the initial translation. After the instruments were available in the four languages aforementioned, the database was structured from a protocol with the following steps: •

•

first, countries from the 4 native languages were selected for the first filter, whether they were technologically central or non-central, but which had a recognized and organized software industry, meaning that they had professional associations or associations of software companies that represented it; then, there was an effort to identify and analyse information from software associations of such countries as a gateway for the identification of companies of interest;

•

in the third stage of the process, companies from the software associations were selected and they were recorded in the database with email addresses and URL;

•

the fourth stage proposed that companies would be filtered from the criteria mentioned above so that the data collection itself could be conducted.

Given the size of the data collection, it was estimated that three attempts would be made with the companies. Firstly, emails were sent with instructions for filling the collection instrument. The research tools were developed in GoogleDocs1, later being transferred to the LimeSurvey2 tool according to the most appropriate resources for analysis and confirmation of the origin of the data, when allowed by the respondents. A second e-mail contact was conducted in order to highlight the relevance of the research and responsible institution. A third and last attempt was planned to be conducted by telephone, but this was not carried out. Table 2 presents the complete scale with 34 research items. The 34 items were derived from the 32 attributes of the research model (Galimberti and Wazlawick, 2016), or possibly from concepts that formed such attributes, as discussed in the review section of the literature. Each item was proposed on a 5-point Likert scale where 1 means Completely Disagree and 5 means Completely Agree.

(1) Google Docs™ web-based word-processing program (2) Limesurvey is a free and open source on-line survey application, distributed under the GNU General Public License. (Documentation, 2009).

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Table 2: internationalization of Software Enterprises Scale Dimension

Introductory Excerpts and Item Statements

Scale Items

Please give a score between 1 and 5 for each statement, where 1 means Completely Disagree and 5 means Completely Agree. The knowledge AQUISITION process WAS ORGANIZED

Innovation

The knowledge ASSIMILATION process WAS ORGANIZED

INV02Assimilation

The knowledge TRANSFORMATION process WAS ORGANIZED

INV03Transformation

The knowledge EXPLORATION process WAS ORGANIZED EFFORTS WERE made by the company to develop and implement technologically new or improved products and/or services

INV04Exploration

There was RELIABILITY in the products and/or services developed in this company

Entrepreneurship

Relationship Network

INV01Aquisition

INV05EffortsNew INV06Reliability

There was USABILITY in the products and/or services developed in this company

INV07Usability

There was TECHNOLOGICAL ADVANTAGE in the products and/or services developed in this company

INV08TecnAdvantage

The INFORMATION TECHNOLOGY for the construction of the products or services WAS UPDATED

INV09TIUpdated

The company KEPT TOOLS to organize KNOWLEDGE

INV10KnowTools

Please give a score between 1 and 5 for each statement, where 1 means Completely Disagree and 5 means Completely Agree. *In the period of internationalization… The ATTITUDES of the entrepreneurs in this firm had a POSITIVE INFLUENCE on the ETP01Attitudes INTERNATIONALIZATION of the company The PREFERENCES of the entrepreneurs in this firm had a POSITIVE INFLUENCE on the ETP02Preferences INTERNATIONALIZATION of the company The EXPERIENCE of the entrepreneurs in this firm had a POSITIVE INFLUENCE on the ETP03Experience INTERNATIONALIZATION of the company The SKILLS of the entrepreneurs in this firm had a POSITIVE INFLUENCE on the ETP04Skills INTERNATIONALIZATION of this company The MOTIVATIONS of the entrepreneurs in this firm had a POSITIVE INFLUENCE on the ETP05Motivations INTERNATIONALIZATION of the company Please give a score between 1 and 5 for each statement, where 1 means Completely Disagree and 5 means Completely Agree. *In the period of internationalization there was strong cooperation with the Networks of… Domestic Suppliers

NTW01nSuppliers

Domestic Consumers

NTW02nConsumers

Domestic Competitors

NTW03nCompetitors

Domestic Distributors/Partners

NTW04nPartners

National Government

NTW05nGovernment

National Professional Associations

NTW06nAssociations

Foreign Suppliers

NTW07fSuppliers

Foreign Consumers Foreign Competitors

NTW08fConsumers NTW09fCompetitors

Foreign Distributors/Partners

NTW10fPartners

Foreign Governments

NTW11fGovernment

Foreign Professional Associations

NTW12fAssociations

Please give a score between 1 and 5 for each statement, where 1 means Completely Disagree and 5 means Completely Agree. *At the time of internationalization, there was international knowledge about... The external market

KFM01Market

The external demand

KFM02Demand

Knowledge About the The maturity of the external market Foreign Market The attractiveness of the external market The competitiveness and the competitors in the external market

KFM03Maturity KFM04Attractiveness KFM05Competitiveness

The specific cultural and linguistic aspects that facilitate or hamper entry into the external market

KFM06CultLanguage

Government policies in the countries of interest to the company

KFM07GovPolicies

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J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

After those steps, and over a year period, 10,059 software SMEs were contacted. For purposes of scale validation, a sample of 103 valid cases was obtained. Although there is a limitation on the size of the sample for the analysis of data results, it is believed to be sufficient for testing the scale itself, as it will be seen in the next section. The next phase is characterized by the activities of greatest interest that are the analysis of data and writing of the results. The strategy of this research encompasses that statistical techniques of multivariate data analysis to be adopted, those that are best suited to the data collected and the purposes of the research have been tested and adopted.

4. Analysis This section presents the results of the exploratory and confirmatory factor analysis conducted to evaluate the quality of the scale proposed in the previous section and to guide adjustments in the model. The section starts by checking the internal consistency of responses obtained during the data collection step and concludes by evaluating the validity of the final conceptual model proposed to evaluate the attributes that contribute to the success in the active internationalization processes of software SMEs. 4.1 Instrument reliability Initially, Cronbach alpha was obtained to assess the internal consistency of the 34-item scale (α=899). Alphas were also computed for every possible version of the scale with a single item removed, the results have shown alpha coefficients ranging from 0.893 to 0.900. All coefficients were above the minimum acceptable value of 0.70 (Nunnally, 1978). No item produced a substantial increase of the value of alpha when removed, suggesting internal consistency of the scale.

4.2 Exploratory factor analysis The suitability of the dataset for exploratory factor analysis was investigated through the Kaiser-Meyer-Olkin (KMO) measure and the Bartlett’s Test of Sphericity, both suggested the data is suitable for factor analysis. The KMO (ranging from 0 to 1) achieved a value of 0.771 and thus exceeds the lower threshold required of 0.5 (Kaiser, 1970). Bartlett’s test (χ²=2177.4, p<0.000, df=56) provided evidence that the correlation matrix has significant correlations among at least some of the items. Exploratory factor analysis (EFA) was performed with the sample of 103 respondents, using principal component analysis (PCA) with Promax rotation, which is an oblique rotation appropriate for cases in which the latent variables might be correlated and the goal of the analysis is to identify theoretically meaningful factors (Gorsuch, 1983; Hair, 2010). The criteria used to indicate the number of factors to retain were the percentage of the variance explained and the Scree plot. Whilst the former criterion suggests a 4-factor or 5-factor solution, accounting to at least 50%–60% of the variance explained (Hair, 2010), the latter suggests the possibility of 4 (steep downward slopes) or 7 (moderate downward slopes) factor solutions (see Figure 2). We chose the 4-factor extraction, which accounted for 52.73% of the total variance. The 4-factor solution corroborated the initial classification of items in four dimensions proposed by (Galimberti and Wazlawick, 2016).

Figure 2: Eigenvalue plot for the Scree test criterion

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the items that did not load significantly in any factor presented low values of communality, confirming they do not share a significant amount of variance with the remaining items. Therefore, they will not be retained in the analysis. The criteria used to retain the items were defined based on (Hair, 2010) and (Wolfinbarger and Gilly, 2003), indicating that items should load at least 0.50 on one factor and no item should load more than 0.50 on two or more factors.

Table 3 presents the factor loadings and the communalities for each item. The loadings higher than 0.50 were highlighted. None of the highlighted items presented cross-loadings, i.e., they are significant to explain a single dimension. Nine of the thirty-four items did not load significantly in any factor. These items seemed to be less important to explain the attributes that contribute to success in the active internationalization processes of software SMEs. As expected,

Table 3: EFA results and cummunalities values Items INV01Aquisition INV02Assimilation INV03Transformation INV04Exploration INV05EffortsNew INV06Reliability INV07Usability INV08TecnAdvantage INV09TIUpdated INV10KnowTools ETP01Attitudes ETP02Preferences ETP03Experience ETP04Skills ETP05Motivations NTW01nSuppliers NTW02nConsumers NTW03nCompetitors NTW04nPartners NTW05nGovernment NTW06nAssociations NTW07fSuppliers NTW08fConsumers NTW09fCompetitors NTW10fPartners NTW11fGovernment NTW12fAssociations KFM01Market KFM02Demand KFM03Maturity KFM04Attractiveness KFM05Competitiveness KFM06CultLanguage KFM07GovPolicies

Communalities

Factor 1

Factor 2

Factor 3

Factor 4

.692 .724 .792 .691 .559 .423 .446 .404 .329 .441 .577 .570 .578 .489 .501 .584 .554 .627 .549 .523 .548 .407 .263 .356 .260 .362 .454 .577 .754 .790 .730 .565 .360 .449

.807 .839 .830 .752 .579 .513 .571 .435 .229 .329 -.065 -.130 -.040 .021 -.051 .073 .270 -.089 .233 -.115 -.136 -.116 .011 .012 -.058 -.116 .003 .089 .171 .132 .049 .115 -.012 -.123

-.255 -.155 -.069 -.113 .362 .260 .224 .364 .498 .403 .764 .707 .610 .647 .704 .041 .029 -.014 -.125 .006 .040 .103 .236 .066 .081 .036 -.033 .183 .074 -.013 -.038 -.063 .083 .005

.151 .083 .016 .100 -.073 -.183 -.131 -.113 .099 .145 .016 -.038 .190 .014 -.071 .808 .743 .833 .697 .602 .653 .488 .160 .488 .190 .414 .362 .012 -.166 -.149 -.130 -.085 -.029 .160

.144 .135 .240 .256 -.146 -.140 -.153 -.184 -.203 .111 .043 .199 .258 .119 .043 -.196 -.393 -.196 -.026 .248 .190 .260 .317 .195 .395 .318 .460 .652 .831 .898 .892 .765 .582 .609

Factor 1 is composed by items exploring the importance of innovation for the internationalization of software SMEs. Seven items (INV01 to INV07) seemed to be important to explain this dimension, following (Galimberti and Wazlawick, 2016), this dimension was named Innovation. Three items (INV08, INV09 and INV10) also exploring features related to innovation did not load significantly in any dimension. The second factor shown at Table 3 was named Entrepreneurship. It is composed by five items exploring some characteristics of the entrepreneur that may help explain the success of the process of interna-

tionalization of software SMEs. All items in this dimension presented high values of factor loading and, therefore, they revealed to be important to explain this dimension. Items exploring the company’s engagement in relationship networks composed the dimension named Relationship Network. Note that only the items are related to the national network (NTW01 to NTW06) seemed to be relevant to explain this dimension. Items related to relationship networks outside the country of origin (NTW07 to NTW12) did not load significantly in any dimension.

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The last column of Table 3 presents the fourth factor. Seven items seemed to be relevant to explain this dimension. These items explored aspects related to the company’s international knowledge about the external market at the time of internationalization. Following (Galimberti and Wazlawick, 2016), it was named Knowledge About the Foreign Market.

Figure 3: Path diagram of the final estimated model.

Despite the presence of some items with low communalities, we retain them in order to evaluate their performance in the new step of the analysis, the confirmatory factor analysis. 4.3 Confirmatory factor analysis After the EFA and reliability analysis, the reduced version of the instrument containing 25 items was submitted to a confirmatory factor analysis (CFA) to empirically assess the quality of the measurement model and to guide adjustments if necessary. The CFA model was estimated via the Maximum Likelihood method, using the IBM SPSS Amos software. Tests on construct validity and reliability were also performed.

After the removal of 10 items, the measurement model demonstrated satisfactory levels of fit. Table 4 shows the values of the fit measures calculated for the final model presented in Figure 3. Table 4: Fit indices for the final estimated model

Following the scale development guidelines, a range of measures were used to assess the model fit, such as Chi-Square statistic, Root Mean Squared Error of Approximation (RMSEA), Standardized Root Mean Square Residual (SRMR), Goodness-of-fit Index (GFI), Adjusted Goodness-of-fit Index (AGFI), Incremental Fit Index (IFI), Normed Fit Index (NFI) and Comparative Fit Index (CFI) (Hair et al., 2006). The Chi-Square value is a traditional measure for assessing overall model fit, the criterion for acceptance varies among researchers, (Hu and Bentler, 1999) consider a relative Chi-Square (X²/df) value lower than 3 as good. (Ullman and Bentler, 2003) is more rigorous and recommends a value lower than 2. For SRMR and RMSEA measures, values lower than 0.09 and 0.05, respectively, are regarded as good (Hu and Bentler, 1999). Concerning GFI and AGFI, thresholds of 0.9 and 0.80, respectively, are an indication of an acceptable model fit (Byrne and M., 1994; Hu and Bentler, 1999; Hair, 2010). For other fit indices like IFI, NFI and CFI, values of 0.9 or higher represent an acceptable model fit and values of 0.95 or higher are an indication of a good model fit (Byrne and M., 1994; Hu and Bentler, 1999). For the initial model composed by 25 items, fit measures indicated an unsatisfactory fit between the measurement model and the data. Thus, an iterative elimination process was carried out. Items were deleted one by one and the fit measures were recalculated based on the low loadings presented by some items, the standardized residuals, and the modification indices. As a result, a total of 10 items were deleted. Figure 3 presents the final path diagram of the estimated model.

106.29 82

²/df 1.30

RMSEA SRMR GFI AGFI 0.05

0.06

0.89

0.84

IFI

NFI

CFI

0.97

0.90

0.97

4.4 Construct validity Finally, the correlations between the constructs, the Average Variance Extracted (AVE), and the Composite reliability (CR) were calculated in order to assess the construct validity of the proposed model. Evidence of construct validity indicates that items measures obtained from the sample represent the real measures that exist in the population (Hair, 2010). The reliability and validity measures were calculated and assessed following the formulas and recommendations presented in (Fornell and Larcker, 1981) and (Hair, 2010). The correlation coefficients between the constructs of the proposed model were all lower than 0.8 (they range from 0.03 to 0.47), satisfying the (Bagozzi, R. P., & Yi, 1988) recommendation. The AVE measures for all factors seemed to be greater than the threshold of 0.5 (Innovation: 0.71; Entrepreneurship: 0.52; Relationship Network: 0.57; Knowledge About the Foreign Market: 0.72). In addition, the AVE estimates for each two factors were always greater than the square of the correlation between the two factors, as recommended by (Fornell and Larcker, 1981). The model presented CRs above the minimum of 0.7 for all dimensions, suggesting the internal consistency of each dimension (Innovation: 0.91; Entrepreneurship: 0.81; Relationship Network: 0.79; Knowledge About the Foreign Market: 0.72). These results, combined with the standardized CFA loadings of the items on their dimensions, support the convergent validity of the scale. As shown at Table 5, all standardized loadings are above the acceptable threshold of 0.5 and almost all of them are above the ideal threshold of 0.7.

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Table 5: CFA results and validity measures Dimension

Innovation

Entrepreneurship

Relationship Network

Knowledge About the Foreign Market

Items

CFA loadings

INV01Aquisition

0.70

INV02Assimilation

0.80

INV03Transformation

0.98

INV04Exploration

0.87

ETP01Attitudes

0.62

ETP02Preferences

0.74

ETP03Experience

0.78

ETP04Skills

0.72

NTW01nSuppliers

0.89

NTW02nConsumers

0.73

NTW03nCompetitors

0.61

KFM02Demand

0.86

KFM03Maturity

0.94

KFM04Attractiveness

0.88

KFM05Competitiveness

0.72

The validity measures calculated are within the acceptable levels, supporting the validity of the construct. Therefore, the 15 items shown at Table 5 compose the final version of the research scale. These items proved to be important to explain the success in the active internationalization processes of software SME. 5.Â Discussion and conclusions The factor analysis, first applied in an exploratory perspective, revealed four meaningful factors to explain the success of software SMEs in active internationalization processes. The first factor aggregated items related to Innovation; the second factor, items related to Entrepreneurship; the third factor, items related to Relationship Network; and, the fourth factor aggregated items related to Knowledge About the Foreign Market. The classification of the items in four factors corroborated the four-dimension research model proposed by (Galimberti and Wazlawick, 2016). The four-factor solution identified 25 of 34 items as the most representative to explain the success in active internationalization processes. These results obtained in the exploratory analysis were subject to a confirmatory factor analysis in order to assess the quality of the measurement model obtained. In this step, following the scale development guidelines, 10 items were deleted in order to achieve a reliable and valid measurement scale. The final version of the research scale, composed by 15 items grouped in 4 dimensions, represent a tested and validated measurement model to explain the success of software SMEs in active internationalization processes, and, therefore, can be used in future surveys. It can be noticed that the analysis performed suggests that the research scale maintains, in the innovation and entrepreneurship factors, almost all attributes of the research model that it is based on.

Average variance extracted (AVE)

Composite Reliability (CRs)

0.71

0.91

0.52

0.81

0.57

0.79

0.72

0.91

On the other hand, the network factor is presented from only 3 attributes, out of a total of 12, with only aspects of national networks being maintained in the research scale. As well as international networks, the attributes of the dimension that deals with knowledge about the international market that had greater relevance refer to knowledge about demand, maturity, attractiveness and competitiveness of the market that seeks to internationalise, out of a total of 8 attributes. It is believed that these particularities observed in the scale tested can characterise important contributions to theories related to the internationalization of SMEs. In managerial terms, it is believed that the article has much to contribute to the segment of software SMEs. Although this segment stands out with new business models and with technological advances, researches that explain the internationalization of software SMEs are scarce or inadequate. The size of the sample can be characterised as a limitation of the present article. However, it should be considered that this limitation is not relevant at this moment of the research, because the data were analysed solely with the intention of validating the research scale itself through a confirmatory factorial analysis, which was satisfactory. validated scale presented in this article opens up many possibilities for future research. The main ones may be the application in surveys that seek to better explain the behaviour of small and medium-sized software companies in international markets with larger samples. Finally, it is envisaged that such research scales may be adapted to companies in other sectors, or yet that they may serve to surveys that deal separately with the attributes of the dimensions of innovation, entrepreneurship, networks, and knowledge about foreign markets.

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Acknowledgments This paper partly sponsored by UFSC – Universidade Federal de Santa Catarina and FAPERGS – Fundação de Amparo à Pesquisa do Estado do Rio Grande do Sul (FAPERGS). The final revision of the English version was done by Letícia Lanius.

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Nunnally, J. C. (1978) Psychometric theory. McGraw-Hill. Available at: https://books.google.com.br/books/about/Psychometric_theory. html?id=WE59AAAAMAAJ&redir_esc=y (Accessed: 29 April 2018). Phillips McDougall, P., Shane, S. and Oviatt, B. M. (1994) ‘Explaining the formation of international new ventures: The limits of theories from international business research’, Journal of Business Venturing, 9(6), pp. 469–487. http://dx.doi.org/10.1016/0883-9026(94)90017-5. Reid, S. D. (1981) ‘The Decision-Maker and Export Entry and Expansion’, Journal of International Business Studies. Nature Publishing Group, 12(2), pp. 101–112. http://dx.doi.org/10.1057/palgrave. jibs.8490581. Rennie, M. W. (1993) ‘Born Global’, The McKinsey Quarterly. McKinsey & Company, Inc., (4), p. 45. Available at: https://www.questia.com/ library/journal/1G1-15424561/born-global (Accessed: 9 April 2015). Ronkko, M., Ojala, A. and Tyrvainen, P. (2013) ‘Innovation as a driver of internationalization in the software industry’, in 2013 International Conference on Research and Innovation in Information Systems (ICRIIS). IEEE, pp. 49–54. http://dx.doi.org/10.1109/ ICRIIS.2013.6716684. Roselino, J. E. (2006) A Indústria de Software: o ‘modelo brasileiro’ em perspectiva comparada. Universidade Estadual de Campinas. Saarenketo, S. et al. (2009) ‘A knowledge‐based view of growth in new ventures’, European Business Review. Emerald Group Publishing Limited, 21(6), pp. 531–546. http://dx.doi. org/10.1108/09555340910998823.

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Framework Proposal for Open Innovation Implementation in SMEs of Regional Innovation Systems Lindomar Subtil de Oliveira1*, Márcia Elisa Soares Echeveste2, Marcelo Nogueira Cortimiglia2 Abstract: In the literature of Open Innovation (OI), some specific themes, such as elaboration of methods, strategies and systematized processes of implementation are still little discussed. In attempted to fill this research gap, this study aims to present a proposal for a framework for the implementation of OI in Small and Medium-sized Enterprises of Regional Innovation Systems (RIS). As such, it can support the theoretical development related to OI implementation methods and tools. The constructivist method was used in the development of the framework, which represents the Implementation Process of OI (IPOI), consisting of 5 stages: (i) diagnosis of RIS; (ii) diagnosis of the enterprise; (iii) preparation; (iv) implementation; and (v) monitoring and control. The unfolding of this process in stages and measurement systems allows us to understand the elements and Critical Success Factors (CSF) that interfere in the improvement of the capacity of innovation in SMEs inserted in RIS. Keywords: Open Innovation process; Critical Success Factors; Small and Medium-sized Enterprises; Regional Innovation System. Submitted: January 12th, 2019 / Approved: June 14th, 2019

Figure 1: Stages of the DSR method

Introduction Although recent research has addressed the development of methods and tools to understand and support OI practices in enterprises (Çubukcu and Gümüs 2015), few report formal, documented and structured strategies for implementing OI in SMEs (Grönlund, Sjödin, and Frishammar 2010; Krause and Schutte 2015). Likewise, there is a shortage of studies that deeply evaluate the CSFs and how these factors can be incorporated into the stages of a process that facilitates and guides the implementation of OI in SMEs of RIS. RIS are potential environments that can favor the implementation of OI in SMEs, by cooperation, partnerships, technological transfers, sharing of knowledge between public and private institutions, approaching of private investors, and legal stimulus for innovation (Cooke 2005; Garcia and Chavez 2014; Oliveira et al. 2017). Given this context, the main objective of this article is to present a proposal of a representative framework of the Implementation Process of OI (IPOI) in SMEs of RIS. Following the steps of the constructivist method, the proposed framework was delineated in 5 stages: (i) diagnosis of RIS; (ii) diagnosis of the enterprise; (iii) preparation; (iv) implementation; and (v) monitoring and control.

Method In this study, the seven main steps of the Design Science Research (DSR) method were adopted (Fig.1), which of used in several studies of the literature (Kasanen, Lukka, and Siitonen 1993; Geerts 2011).

In the sequence, the unfolding of each steps is described. Identification of the problem (1) Currently, there are few studies in the literature that address the proposition of methods, models, systems, technological platforms and structures that offer support and orientation to the implementation of OI (Lee et al. 2010; Wallin and Von Krogh 2010; Grönlund, Sjödin, and Frishammar 2010; Gulshan 2011; Herskovits, Grijalbo, and Tafur 2013; Yoon and Song 2014; Çubukcu and Gümüs 2015).

1) Department of Business Administration, Universidade Tecnológica Federal do Paraná, UTFPR, Francisco Beltrão, PR – Brazil. 2) Department of Industrial Engineering, Universidade Federal do Rio Grande do Sul, UFRGS, Porto Alegre, RS - Brazil. *Corresponding author: lindomar@utfpr.edu.br

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Note that most of the studies and cases presented in the literature emphasize the use of OI mainly among multinationals and large high-tech companies (Wynarczyk, Piperopoulos, and Mcadam 2013). Thus, given the need to explore new fields of OI application, specially in SMEs (Van De Vrande et al. 2009), and to propose models and processes that enable the implementation of this strategy, the following research problem was raised: How should a process be structured to guide the implementation of OI in SMEs of RIS? Understanding the problem (2) The literature review was based on the implementation approach of tools, processes, information and knowledge systems, individual factors, and team formation for implementation (Cormican and Sullivan

2004); process model to assist managers in the implementation of OI projects (Wallin and Von Krogh 2010); assessment of organizational capacities in the product development process and technological evaluation model (Gusberti, Werner, and Echeveste 2011); method and model of knowledge transfer (Frank and Echeveste 2012); OI program and its impacts on value creation of the enterprise (Herskovits, Grijalbo, and Tafur 2013); method of portfolio management of innovation projects (Bagno et al. 2016); model of innovation management systems in SMEs (Bagno et al. 2016); among others. In addition, the research was based on the main CSF of OI literature (Table 1) presented in the work of Oliveira et al. (2016).

Table 1. Main categories and CSF CSF/Description

Culture

Te c h nolog i c a l Strategy management

capaNetworks and Internal city for inno- Leadership relationship vation

Category

Responsible

Basic information

Inventor

Technical Level

Inventor and patent agent

Market

Inventor and Marketing Dept.

Profitability

Inventor and Marketing Dept.

Capacity and resources

Marketing Dept. and the Management

Entrepreneurial tactics

Marketing Dept. and the Management

Number of times the patent is cited in similar intellectual property Number of claims Quality of the claims Size of the patent family Number of patent oppositions Number of similar technologies Patent status (filed or granted) Patent’s lifecycle The term of patent can be extended Geographical coverage Protects a superior technology Uses in other fields Degree of validation Level of novelty Market’s demand Reasonable production cost Access to commercialization channels Increase in the value of the product it is applied to Possible substitute products Lifecycle in the market Time to reach the target market share Market growth Number of acts and regulations in favor of the patent Number of acts and regulations against the patent Real market size Future market size Price the consumer would pay Expected cash flow Expected benefit(s) Technological surveillance skills Financial capacity to support production abroad Resources and capacity to defend the patent from infringing individuals Inventors’ interest in participating Production capacity Potential to be offensively used Exploitation routes (licenses, sell or direct use) Negotiation skills Source: Authors’ own work, based on Angelo et al. (2008); Correa et al. (2011); Edvinsson and Sullivan (1996); European Patent Office (2010); Gu and Lev (2011); Hastbacka (2004); ip4inno (2008); Lai and Che (2009); Leadbeater (1999); Mard (2000); Nielsen (2004); Park and Park (2004); Pavri (1999); Pitkethly (1997); and Plata (2005), among others.

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Besides, interviews were used to collect relevant information and identify the qualitative variables used in practice. Each of the inter-

viewed experts were selected because their profile and occupation were directly related to technology management processes (Table 3).

Table 3. Experts’ profiles. Expert

Profile

Eafit University Economics graduate, Specialist in finances and Master in Financial Management. She currently works as a consultant and technology transfer director for the Innovation, Consultancy and Entrepreneurship Center (CICE, by its initials in Spanish) at Eafit University.

Lawyer, Specialist in Business Law, consultant with experience in contracting, intellectual property, competition law and consumer rights. Consultant and Professor of Intellectual Property at ITM and UPB. Consultant for the Intellectual Property program in Colombia of the InterAmerican Development Bank. Besides, she has been an independent consultant for education institutions and companies in the private sector.

Business Administration graduate and Project Management Specialist from Eafit University. Specialist in Technology Innovation Management from UPB and M.Sc. student in Technology Management at UPB. Entrepreneur and businessman with more than 10 years’ experience in consulting services regrading technology marketing, sales, administration, strategy and management. He is devoted to developing businesses based on R&D results of big companies as founder and senior consultant for Estratek.

Business Administration graduate from Medellín University and Master in Technology Management from UPB, Innovation Manager at Medellín University, experienced in R&D+i project management.

Business Administrator, Specialist in Logistics and expert consultant in Technological Surveillance and Competitive Intelligence (TSCI) with more than 7 years’ experience in studies conducted in the real sector and the academia regarding TSCI. Advanced knowledge of Intellectual Property. She has worked with the WIPO and the Superintendence of Industry and Commerce. External consultant for Tecnnoca, Immagina and Sapiencia, among other organizations, and consultant in Technology Transfer processes.

Product Design Engineer from Eafit University and Industrial Design Associate from ITM with more than 10 years’ corporate experience in research, design, development and promotion of new or enhanced technical solutions to diverse problems in metalworking, polymers and elastomers, furniture, and packaging among other fields. He has participated in negotiation and commercialization processes of patented and unpatented products. He currently works as a Professor in the Industrial Design Department at ITM’s Faculty of Industrial Design. At the same time, he individually develops technical solutions to daily problems. As a result, he has filed a national patent before the Superintendence of Industry and Commerce SIC and needs to know the value of the patent to be able to negotiate it.

Source: Authors’ own work.

Additionally, Table 4 presents the qualitative variables identified in the interviews. The first column presents the identified variable and the second, the expert’s number.

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Table 4. Qualitative variables identified in practice. Expert

Practical qualitative variables Technology Readiness Level (TRL)

1 1

Intellectual property protection status

Dependence on people

Real market

Technology scope (application in other sectors)

Marketing

X X

Potential market

Client’s interest

Degree of novelty

Dependence on suppliers

Legislation and regulations

X X

Access to financial capital

Number of claims

X X

Benefit perception

What the patent protects

X X X X

X X

User’s acceptance or rejection

Technology acquisition

Context

Competitive advantage of the technology

Competitors’ capacity

Competitors’ resources X

Launch time of competing technologies

Protected geographical areas PCT protection resources

X X X X

Strategic alliances

Current stage in the commercial lifecycle

Time to complete the PCT

Knowledge of the PCT process

Commercial lifecycle

Sooner sale Geographic Intellectual Protection

Social improvement Transference capacity

X X

Technological advance likelihood

International Trade

Technical capacity of the applicant

Industrial production likelihood Purchase frequency

Positioning

Availability of inventor(s)

Competitors’ market share

Source: Authors’ own work based on cited references.

(3) They define the matureness of a piece of technology (Mai, 2015). (4) The international Patent Cooperation Treaty (PCT) enables to simultaneously request patent protection in several countries. Said Treaty is managed by the World Intellectual Property Organization (WIPO) and was signed by more than 135 countries in the Paris Agreement (SIC, 2008).

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Discussion Based on the crossed matrix between theoretical and practical qualitative variables, the data was triangulated to be compared and thus determine the Minimum Qualitative Variables (MQVs) for patent valuation. Besides, experts’ opinions were used to categorize the variables as follows: i) Technological. They refer to the basic information and technical-manufacturing development of the technology and determine the possibility of obtaining the resources and capacity to escalate the technology (financial capital, supplies, machinery and intellectual skills). ii) Commercial. This type of variables is concerned with the satisfaction of the market’s needs and commercialization channels to establish the existence of current and potential markets interested in obtaining the technology. iii) Competition. Identifying competitors’ capacity to make some technological improvement enables to judge if direct or indirect competitors have the capacity to equal or enhance the technology to be valued. iv) Legal. The ability to produce and commercialize the technology in a given geographical area depends on the acts and/or regulations that allow the legal production and commercialization of the technology.

The resulting MQVs in this study were obtained by observing the most common key elements among experts in patent valuation that matched theoretical variables. Adopting qualitative patent valuation methods has the advantage of analyzing information about the context where the patented technology could be exploited, which influences the values provided by quantitative methods. This enables to make better decisions during the negotiation. Regarding the level of importance of each variable, some authors in the literature state that the most influential one in any valuation of intangible assets, patents in this case, is the market because it determines the selling success or failure of the developed and patented technology. Nevertheless, and possibly due to the dissimilar profiles of the interviewed experts, the legal and commercial variables may have different importance depending on the patented technology. This is due to the different contexts that may have an influence on the patent (Hunt et al., 2003; Hunt, Thorn, Mitchell, Probert & Phaal, 2007; Shehabuddeen, Probert & Phaal, 2006; Thorn, Hunt, Mitchell, Probert & Phaal, 2011). The MQVs to value patents were divided into four types: Technological, Competition, Commercial and Legal. However, the Legal dimension is not introduced in Table 5 of the MQVs because it is of a filter kind. In other words, if the patent is viable production-wise in the selected territory, there may be people interested in exploiting it. Conversely, if the legal variable is negative, there would be no possibility to exploit the patent and its value would be zero. Finally, each variable was assigned a score that will support decision making for adequate technology transfer.

Table 5: Minimum Qualitative Variables (MQVs). Minimum Qualitative Variables (MQVs)

Technology

Type

Variable

Question

Score 1 Low - 2 Medium - 3 High

Number of claims

How protected is the patent?

1: Less than half of the claims have a broad scope 2: Half of the claims have a broad scope 3: All the claims have a broad scope

Industrial production potential

Can the technology be mass produced?

1: No 2: Only a part can be manufactured 3: Yes

Technical capacity of the applicant

Does the applicant have the technical capacity to develop the technology?

1: No 2: Some 3: Yes

Strategic alliances

Are there strategic alliances to scale the technology?

1: No 3: Yes

Access to financial capital

Are financial support from co-financing entities, loans or funding available?

1: No 3: Yes

Degree of novelty

What is its degree of novelty?

2: Incremental 3: Disruptive

Technology Readiness Level3

What stage is the technology in?

1: Concept - idea 2: Model - prototype 3: Validation

Dependence on suppliers

Are the supplies necessary to develop the technology available?

1: Imported supplies 2: National supplies 3: The supplies are available.

Dependence on people

How many people have the technical and/or scientific knowledge contained in the patent?

1: One 3: Two or more

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Commercial

Competition

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Competitors’ capacity

Do competitors have the capacity to rival the new technology?

1: High 2: Medium 3: Low or none

Competitors’ resources

Do competitors have the resources to rival the new technology?

1: Yes 2: Partially 3: No

Competitors’ market share

What is the market share of the strongest competitor?

1: Between 70 and 100% 2: Between 40 and 69% 3: Less than 40%

International Trade

Are there trade agreements that enable new competitors to enter the market?

1: Yes 3: No

Real market

What is the size of the real market?

1: Small 2: Medium 3: Large

Potential market

What is the size of the potential market?

1: Small 2: Medium 3: Large

Technology scope

What economic sectors is the patent applicable in?

1: 1 sector 2: 2 sectors 3: 3 sectors

Commercial lifecycle

How long is the commercial life of the technology?

1: Less than 2 years 2: Between 2 and 5 years 3: More than 5 years

Social improvement

Does it contribute to the improvement of society’s quality of life?

1: No 3: Yes

Transference capacity

How easy is it to commercialize or transfer the patent?

1: Hard 2: Easy 3: Very easy

Competitive advantage of the technology

Does the technology offer more competitive advantages?

1: Low 2: Medium 3: High

Source: Authors’ own work based on data triangulation.

Conclusions Qualitative methods are not disconnected from quantitative techniques. On the contrary, they work together to increase certainty in the valuation, because a monetary value could be positively or negatively affected by a qualitative value, and the other way around. In that sense, Minimum Qualitative Variables (MQVs) are decisive to establish a patent’s valuation. They contain information regarding where patents are to be exploited and, as a consequence, increase certainty in the monetary value provided by quantitative methods. Furthermore, MQVs to value patents are divided into four types: Technological, Competition, Commercial and Legal. This study concluded that the legal type is a filter because the patent is valuable only if it is viable production-wise in the selected territory. Additionally, the Commercial type enables to establish the possibility of obtaining profit from producing, commercializing or acquiring the patented technology. The Competition variables determine if the patent could have a stable permanence in the market in spite of competitors’

capacity and resources. Lastly, the Technology kind deal with the manufacture or production of the patented technology, i.e. its industrial application. Regarding the levels of importance of the variables, they depend on the context of the valued technology. However, this study assumes the Commercial type to have a higher relevance than Competition and Technology, because if there is no market interested in the patent, its value is low or nonexistent.

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Perceived Function: An Investigation into a Product Advantage between Aesthetics and Function Satoru Goto1*, Yuuki Shigemoto2, Shuichi Ishida3 Abstract: This study involved an empirical comparison of product competitiveness driven by aesthetic and technological innovations in a mature market. This study began with a theoretical idea that users may perceive and evaluate technology development through the visible form of a product. Statistical analyses of user reviews of digital cameras showed that the impact of technology development on competitiveness was greater than that of aesthetic changes. The results demonstrated that users did not leverage product appearance for the recognition of technology development. Moreover, the findings show that specification information had a greater influence on product advantage when users did not visually perceive technological improvement. These results may indicate that manufacturers have not yet fully exploited product design for maximising product advantage in the mature market. Keywords: Function; Aesthetics; Perceived function; Utilitarian and hedonic value. Submitted: March 4th, 2019 / Approved: July 11th, 2019

Introduction In recent years, design has been re-appreciated as a driver of successful new product development (NPD). Many studies have shown that advanced design, or the involvement of advanced industrial designers in R&D processes, results in the improvement of product performance (Gemser and Leenders, 2001; Hertenstein, Platt, and Veryzer, 2005; Rubera and Droge, 2013; Walsh, Roy, Bruce, and Potter, 1992). The studies focused on ‘design’ have particularly emphasised the emotional value represented by aesthetic satisfaction that product forms evoke in consumers’ minds (Creusen, 2011). In contrast, the major focus of studies in the area of innovation management has been on functional value, that is, the practical benefits that product performance offers consumers (Candi, 2006; Candi and Saemundsson, 2011). However, consumers also perceive functional value in the form of a product (Bloch, 1995; Hoegg and Alba, 2011). For example, the transparent body of the Dyson DC01 vacuum cleaner literally shows the functional advantage of the bagless system (Talke, Salomo, Wieringa, and Lutz, 2009). In this sense, consumers actually see the main functional feature as a perceptual icon of the product (see Kreuzbauer and Malter, 2005). This example indicates that functional features presented by product design can be valued by consumers as both emotional and functional (Buganza, Dell’Era, Pellizzoni, Trabucchi and Verganti, 2015; Crilly, Moultrie, and Clarkson, 2004; Hoegg and Alba, 2011). The present paper defines functional features that can be a source of both values as perceived function (see Figure 1).

Figure 1. Perceived Function

Eisenman (2013) emphasised that the role of product form varies depending on the extent to which a consumer understands the functional value of an item. Once consumers understand what a new product in the same category does, they evaluate the evolution of the functions of the new item compared to those of previous models (Crilly, Moultrie and Clarkson, 2004; Kaplan and Tripsas, 2008; Mugge and Dahl, 2013). However, unclear incremental technological developments in product form would make it difficult for users to recognise the upgrades from previous models. Therefore, once new technology has become common in the market, consumers begin to respond to its aesthetic aspects, which continue to be new to them, rather than the functional aspects (Crilly, Moultrie and Clarkson, 2004; Eisenman, 2013). Whilst aesthetic innovation is important at this stage, if a new product form differs distinctly from a dominant design in the market, consumers may have negative impressions because of the high learning cost of familiarising themselves with the new item (Bornemann, Homborg, and Schöler, 2015; Thompson, Hamilton, and Rust, 2005). Therefore, the magnitude of consumers’ positive (or negative) responses towards changes in product form may allow us to gain a better understanding of product advantages achieved through design.

1) College of Business Administration, Ritsumeikan University, Ibaraki, Osaka, Japan. 2) Faculty of Contemporary Society, Toyama University of International Studies, Toyama, Japan. 3) Graduate School of Technology Management, Ritsumeikan University, Ibaraki, Osaka, Japan. *Corresponding author: goto-s@fc.ritsumei.ac.jp

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Nevertheless, most literature on consumer response to products does not address function and perceived function, posing a challenge to researchers seeking the product advantage communicated by the product form. Consequently, the knowledge gap between function and perceived function and aesthetics has rarely been addressed, whilst the synergetic interaction between the form and function of a product has attracted considerable attention (Ravasi and Stigliani, 2012). Furthermore, from a practical perspective, despite investments by companies that have developed new functions, a product with too many functions that increases learning costs does not seem ideal for consumers (Borneman et al., 2015; Hoegg and Alba, 2011; Thompson et al., 2005). As a result, most functions of a product are often not utilised, or even realised, by consumers unless they take the time to examine the product’s specifications (descriptions). For these academic and practical reasons, this paper suggests that issues regarding product form should be addressed and explored through a comprehensive view of their impacts on both aesthetic and functional advantages (product performance). To address this research question, this empirical study examines the extent to which the evolution of function is perceived by consumers through product form and then captures consumer perceptions of product advantages based on product form (aesthetics and perceived function) and function. This study employs a data set to represent users’ evaluations of the product that were made based on all their sensory perceptions of compact digital cameras. The initial exploratory analysis is conducted to identify perceived function and aesthetic impressions in the data. Next, confirmatory factor analysis is employed to examine the extent to which there is a relationship between function and perceived function, which are identified by exploratory factor analysis; then, the extent to which consumers assess the impact of the function, perceived function, and aesthetic impression on product advantage.

In the context of business, the cost that one is willing to pay is determined by the consumer’s judgement of the perceived price and quality (Chang and Wildt, 1994; Shetty, 1987; Steenkamp, 1990; Toivonen, 2012). Consequently, the perception of a product’s features (utilitarian and hedonic) that identify the product quality for a user is a crucial influence on consumer attitudes towards items. A framework that captures product value in utilitarianism and hedonism may therefore be useful for an in-depth consideration of what consumers find beneficial in different situations. However, the value of products may not be fully understood if the goods are regarded as encompassing either utilitarian or hedonic value. For example, certain consumers may purchase automobiles for the purpose of transportation, whilst others may regard the same products as a representation of their artistic sense or as a symbol of their status. Thus, it would be more appropriate to posit that every product innately has both utilitarian and hedonic features that together comprise the perceived value of products and that what matters is the ratio between the two (Steenkamp, 1990; Voss, Spangenberg and Grohmann, 2003). This paper uses the terms utilitarian value and hedonic value to refer to these product features (Figure 2). Figure 2. Structure of Utilitarian and Hedonic Values

Utilitarian value

Literature review and conceptual framework Products offer consumers functional solutions and emotional satisfaction. Innovation studies tend to expand their discussions to a dichotomous view between functionality and product form. However, users do demonstrate sensory reactions to technology and function, which partially comprise the users’ overall emotional response to a product form. The arguments regarding users’ emotional responses to the functional and meaningful features of a product may be better grasped by considering the value that people find in products. Product values Improved descriptions of perspectives regarding product values have been sought (Boztepe, 2007; Elliott, 1997; Kenrick et al., 2009; Lichtenstein and Burton, 1989; Oude Ophuis and Van Trijp, 1995; Sheth, Newman, and Gross, 1991; Sweeney and Soutar, 2001; Turel, Serenko, and Bontis, 2010). This study found that the arguments regarding product value can be summarised by two simple aspects: a value that is provided by the physical function of a product and makes changes in the real world is known as utilitarian value; and that which provides emotional satisfaction and makes changes within one’s mind is known as hedonic value (Chitturi, Raghunathan, and Mahajan, 2008; Hanzaee and Baghi, 2011; Hirschman and Holbrook, 1982).

Sensory responses to product form Researchers have striven to empirically explore the interaction between products and consumers through their senses. Bloch (1995) developed a psychological model of the consumer response to products and indicated the importance of seeking an ‘ideal’ form that must satisfy design constraints and achieve superiority to competitors both in utilitarian and hedonic values. Crilly et al. (2004) particularly focused on the consumer’s visual response to product form. They revised the literature across a wide range of disciplines and concluded that product form visually communicates an aesthetic impression, semantic interpretation, and symbolic association, referring to the beauty of a product’s appearance, the functional features (including perceived function and ergonomics, recognised through product form), and the images and meanings associated with a product. These are major indexes of perception that users obtain through observing the product. In fact, other researchers have discussed these three domains in (innovative) products using different terms. Table 1 provides a summary of the studies and the expressions used in them.

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Table 1. Three-dimensional Segmentation of Sensory Responses to Product Form Aesthetic Aspect

Functional Aspect

Symbolic Aspect

Crilly, Moultrie, and Clarkson (2004)

Aesthetic interpretation

Semantic interpretation

Symbolic association

Norman (2004)

Visceral level

Behavioural level

Reflective level

Candi (2006)

Visceral design

Functional design

Experiential design

Rampino (2011)

Aesthetic

Use

Meaning

Eisenman (2013)

Aesthetic information

Functional information

Symbolic information

These studies regard product form as an important communicator of aesthetic, functional, and symbolic aspects in users’ intuitive understandings (Crilly, Good, Matravers, and Clarkson, 2008; Crilly, Maier, and Clarkson, 2008). Consequently, these studies indicate that technology and product form are not isolated from each other, and we might assume that users recognise the fruition of R&D through product form. Product aesthetic and function—which are main sources of hedonic and utilitarian values, respectively—emerge and shape the product. The product features overlapping both domains are perceived function and ergonomics, as shown in Figure 3.

Figure 4. Framework of Extant Literature

Figure 3. Value and Sensory Response to Product Form

Utilitarian value

Conceptual framework Recent studies have used empirical tests to explore the relationship between product form and functional value. Moon, Park, and Kim (2015) and Borneman et al. (2015) conceptualised product form into ergonomic, aesthetic, and functional values to identify the main drivers of product advantage. The former study found that product innovativeness was highly appreciated when all the aforementioned values were found to be high. However, the latter study claims that consumers evaluate ergonomic and functional value independently based on product advantage. The reason that these findings are inconsistent is that the former examined the consumer perception of functions without providing linguistic descriptions of the functions to survey respondents. Meanwhile, the latter provided text information of the functions when examining the perception responses of consumers to products. In other words, Moon et al., (2015) explored perceived function, whilst Borneman et al. (2015) examined consumer response to function (Figure.4). As such, the absence of the concept of perceived function caused confusion and resulted in contradicting reports.

Meanwhile, Hoegg and Alba (2011), who explored the relationship between function and perceived function, found that consumers even appreciated perceived function when they were provided with less information about function. This finding indicates the limitation of consumers’ ability to understand functional evolution based on product form. Furthermore, Mugge and Dahl (2013) discovered that aesthetic newness had no impact on consumers’ evaluation of the incremental functional evolution explained by text description. In contrast to the previous frameworks regarding the relationships among product aesthetics, function, and advantage, we propose a new conceptual framework (see Figure 5). This framework aims at exploring the extent to which the evolution of function is perceived by consumers through product form and the function, perceived function and aesthetics have impacts on product advantages. The next chapter presents the empirical study based on this conceptual model. Figure 5. Conceptual Framework

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Confirmatory and exploratory factor analysis This empirical test aims to evaluate the extent to which an evolution of the function is perceived by consumers through product form and then capture consumer perceptions of product advantages based on product form and function. The compact digital camera industry is chosen for this study as it provides a compelling setting in which to identify such values because of its high diffusion rate, modularised technology and a strong downward price pressure (Fehder, Nelling, and Trester, 2009). Data set This study employs a data set to represent users’ evaluations of a product that were made based on their sensory perceptions; Kakaku.com is a web-based shopping service in Japan and was chosen as a data source. This website includes user ratings, which are direct feedback from users who have used the products, and descriptions of each item’s technological specifications; it comparatively presents the prices offered by different sellers for the same product. On this website, users can post their five-level ratings to each presented review item for the specified digital camera. Each model has multiple user ratings as well as averaged ratings. Table 2 shows the items of the digital camera that the users review. The indexes include evaluations based on a relatively iconic functional feature for consumer and product form. The product was launched by four Japanese manufacturers (Panasonic, Canon, Sony, and Casio) from 2011 to 2014; it is used because Benner and Tripsas (2012) indicated that a firm’s prior industry affiliation influenced technology choice. As all 112 products include multiple user ratings during this period, this study employs the averaged data of each product’s multiple ratings. Table 2. User Review Items Item

Questions to Users

Aesthetics

How are the aesthetics?

Image quality

How is the image quality?

Mode of use

lens occupies an important role in product design. As a result, users may understand the evolution of the image quality through product form. Moreover, some studies have employed a panel of experts to identify the dimensions of perceived value in a product’s appearance (Dell’Era and Verganti, 2011; Hertenstein et al., 2005; Veryzer, 2005). Users’ functional evaluations through product form likely depend on their limited perception (Hoegg and Alba, 2011), which is driven by their individual experiences and expectations (Kreuzbauer and Malter, 2005). Thus, users’ perceptions may be different when the function is identified theoretically or by a panel of experts. These methodologies are not suitable for this study because of its focus on the users’ actual perception of objective function through product form. Thus, exploratory factor analysis is employed to identify perceived functionality and aesthetic impression in the data. Next, confirmatory factor analysis is employed to examine the extent to which there is a relationship between the function and perceived function, which are identified by exploratory factor analysis; then, consumers assess the impacts of the function, perceived function, and aesthetic impression on product advantage.

Identifying perceived function Exploratory factor analysis is used to identify perceived function and aesthetic impression in the data, which is described in Table 2 with the total satisfaction (Q9) removed. Table 3 displays the factor loadings and variance explained, and the eight items converge on two factors. The first six items—image stabilisation and camera modes (Q6), screen visibility (Q7), battery life (Q4), image quality (Q2), mode-of-use (Q3), and grip performance (Q8)—revealed strong loadings on Factor 1; aesthetics (Q1) and the portability of form (Q5) loaded on Factor 2. The theoretical discussion for each factor is provided as follows. Table 3. Factor Loadings and Variance Explained Item

Factor Loading Factor 1

Factor 2

0.857

-0.004

0.838

-0.066

0.676

-0.370

Battery

Is the menu easy to operate? Is it easy to set up? Is the battery life long enough?

Portability

Is it compact? Is it easy to carry around?

Image stabilisation and camera modes

How is the image stabilisation? How are the camera modes?

0.660

0.325

0.628

-0.018

Display

Is the screen easy to see?

0.534

0.116

Q8 Q9

Grip performance Total

Does it have a good grip? Total satisfaction

0.071

0.901

-0.019

0.488

Variance Explained (%)

45.119

19.865

Research design The initial exploratory analysis was conducted to identify perceived function and aesthetic impression in the data. The evaluative indexes include the following functions: image quality, battery life, compactness, camera modes, screen, and grip performance. There is theoretical identification of their few iconic functions; for example, image quality may be an iconic function that represents a digital camera. In a general way, the size of the image sensor, which the image quality depends on, affects the application of the lenses; thus, the form of the

Extraction method: factor analysis; rotation method: varimax with Kaiser normalisation; total variance explained: 64.984%; N = 112.

As noted above, perceived product quality seems to be structured by utilitarian and hedonic values. A digital camera’s predictive utilitarian values involve functions related to taking a picture. The items strongly loaded on Factor 1 provide an evaluation of these basic functions. These are the functions that users understand as being related to the actual use of the product. Therefore, Factor 1 is defined as utilitarian

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Figure 6. Path Model

value. Meanwhile, Factor 2 is loaded by aesthetics (Q1) and portability (Q5), which relate to the artistic aspects that users perceive in a product’s form. Thus, this factor is defined as hedonic value, meaning that Q5 is not a utilitarian value related to taking a picture for the users, although it is predicted that Q5 is physically influenced by technological specification (weight and thickness). This result also indicates that image quality (Q2) and grip performance (Q8) loaded for both utilitarian and hedonic values, implying that the users perceive such functions through product forms. In general, these functions are the iconic features of the digital camera, which is illustrated in product form. This study therefore identifies these functions mediated by product form as perceived function, whereas visual attractiveness and beauty (Q1 and Q5) are identified as aesthetic impressions.

Analysis of product advantages Exploratory factor analysis identifies the factors that users perceive from product forms. Then, confirmatory factor analysis is employed to examine the extent to which there is a relationship between function and perceived function, and consumers assess the impact of function, perceived function, and aesthetic impression on product advantage. A partial least squares structural equation modelling (PLS–SEM) estimation approach is used to test this theoretical model (Hair, Sarstedt, Ringle, and Mena, 2012). Although the SEM approach also includes covariance-based SEM (CB-SEM), PLS-SEM is more suitable when the theory is less developed and when the goal involves identifying key driver constructs (Hair, Hult, Ringle, and Sarstedt, 2017). Table 4 illustrates the indicators, and Figure 6 describes the path model. Table 4. Indicators Product Advantage (PA) PA_1

Launching price

PA_2

Total satisfaction

Specification (SP) SP_1

Pixel

SP_2

Sensor size

SP_3

Weight

SP_4

Thickness

The perceived function (PF) and aesthetic impression (AI) are quoted from the previous factor analysis results. The specification (SP) has four measured indicator variables obtained from Kakaku.com: pixel and sensor size, on which PF_1 depends, and weight and thickness, on which PF_2 depends. The product advantage (PA) includes the launching prices obtained from Kakaku.com and the users’ total satisfaction (Q9 in Table 2). Product price has a relationship with the characteristics that represent product quality; however, the downward price pressure of the digital camera is independent of technological evolution (Fehder et al., 2009). Therefore, Fehder et al. (2009) used hedonic models to illustrate the relationship between a digital camera’s price and its changes in quality and referred to the price in a product’s first week on the market to analyse technological shocks. Additionally, the total satisfaction obtained from Kakaku.com equals the comprehensive product value as perceived by the users. The path model displays the relationships between PA and SP, PF and AI. SP has a durable path to predict PA; one is a direct effect, and the other is an indirect effect as mediated by PF. The indirect path is the mediating effect to explain how the users perceive the results of technological development from product forms. The data obtained from Kakaku.com include the collection of questionnaires during the same period of time. Therefore, this paper conducted Harman’s single-factor test to confirm the presence of common method effects (Podsakoff and Organ, 1986). The result indicates that the first factor did not account for a majority of the variance (45.939%). Thus, the test failed to identify the common method variance as a problem.

Perceived function (PF)

Result

PF_1

How is the image quality? (Q2)

PF_2

Does it have a good grip? (Q8)

Table 5 illustrates the various constructs’ outer loadings. The two indicators (SP_1 and AI_2) are eliminated in the exploratory analysis process because their outer loadings are less than 0.4 (Hair et al., 2017). The remaining indicators’ outer loadings are all 0.7 or higher. Cronbach’s α is the traditional criterion used to evaluate internal consistency, but it is not suitable for PLS–SEM because of a severe underestimation when using a small number of items in the scale

Aesthetic Impression (AI) AI_1

How are the aesthetics? (Q1)

AI_2

Is it compact? Is it easy to carry around? (Q5)

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(Wong, 2016). Composite reliability is employed instead of Cronbach’s α to evaluate internal consistency reliability (Wong, 2016). The com-

posite reliability results are acceptable because they are all greater than 0.7 and do not surpass 0.95 (Hair et al., 2017).

Table 5. Results of Outer Loadings’ Significance Testing Latent Variables

Indicators

Outer Loadings

t-value

Composite Reliability

AVE

PA_1

0.841

22.204***

0.796

0.661

PA_2

0.784

21.973***

AI_1 PF_1

1.000 0.927

48.974***

0.840

0.725

0.935

0.827

AI PF SP

PF_2

0.769

10.242***

SP_2

0.824

12.265***

SP_3

0.954

61.599***

SP_4

0.945

75.654***

All constructs in average variance extracted (AVE) satisfied the level that should be greater than 0.5 (Hair et al., 2017). Discriminant validity is tested using the Fornell–Larcker criterion (Fornell and Larcker, 1981), and the results provided in Table 6 demonstrate that the discriminant validity

is adequate. We also evaluate the structural model in addition to testing the measurement model. The results of collinearity assessment and the effect size are provided in Appendix A. All variance inflation factor (VIF) values are less than 5, and all f2 values are greater than 0.35.

Table 6. Fornell–Larker criterion Latent Variable Correlations (LVCs) PA

Discriminant Validity Met? AI

0.813

0.761

0.910

Yes

0.511

0.069

0.729

0.377

0.557

Yes Yes 0.852

Yes

Figure 7. PLS Path Model Estimation

Figure 7 presents the relationships between each construct. This result demonstrates that all constructs supported a positive effect on PA (p < 0.001), and SP has the strongest impact. This paper’s theoretical framework indicates that users perceive technological changes through a product’s form, although the R2 value of PF is less than 0.25, and thus SP cannot adequately explain the variance in PF. Therefore, the indirect effect between SP and PA through PF should be considered, and the mediating effect can be examined using Preacher and Hayes’ (2008) procedure. Table 7 presents the results of the mediating effect, which indicate that no indirect effect on PA exists through PF.

Table 7. Mediation Analysis Procedure

Path

Path Coef.

Indirect Effect

Total Effect

VAF

t-values

Direct Effect

SP --> PA

0.611

n/a

7.953***

0.800 0.377

n/a

Indirect Effect

SP --> PA SP --> PF

0.930

0.139

2.741***

PF --> PA

0.345

0.130

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Mediation Effect

Rejected

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Discussion Whilst the specification supported the positive effect on perceived functionality, the R2 value of PF was less than 0.25. Thus, the specification cannot adequately explain the variance in perceived function. Moreover, there is no indirect effect of the specification on product advantage through perceived function. These findings imply that reflecting such incremental technological changes in product form would have a relatively small impact, and perceived function is more likely affected by other factors. Meanwhile, the function described by the specification demonstrated a stronger effect on product advantage than on perceived function through product form. The finding shows that the evolution of function is unlikely to be evaluated by perceived function. According to Hoegg and Alba (2011), the users’ functional evaluation through product form is limited to perceptions structured by individual product experiences (Kreuzbauer and Malter, 2005). For example, a new product imitating the form of another product that has an advanced function would make users perceive the new item as similarly superior to other products, even if it is actually inferior to the others. Hoegg and Alba (2011, p. 356) notes that ‘it is likely that most visual differences in functional performance are not overwhelming and must be emphasised through marketing effort’. Therefore, despite the recent attention to aesthetic innovation, communication of functional advantage to consumers through marketing efforts is nonetheless important. This tendency is also supported by our observation of a stronger effect demonstrated by specification than aesthetic impression and perceived function on product advantage. Moreover, our results highlight that the combination of higher perceived function and ergonomic advantage communicates product innovativeness (Moon et al., 2015) although Borneman et al. (2015) indicated that the impact of ergonomics on product advantage is independent from the level of function. In these studies, ergonomic advantage is the perception that consumers perceive and understand through product form as well as perceived function. Thus, in these studies, the evaluation of the ergonomic advantage perceived by visual sense is influenced by perceived function (Moon et al., 2015) but not by function (Borneman et al., 2015). Although ‘understanding experiential products such as automobiles is not merely a matter of evaluating a list of technical specifications’ (Kreuzbauer and Malter, 2005, p. 169), understanding products through their forms is limited and distorted. The degree of betterment can be perceived through the product’s parameters and the users’ actual use as utilitarian value. This implies the necessity to focus on both technology and product form (Candi and Saemundsson, 2011; Creusen and Schoormans, 2005).

Conclusion Theoretical studies have emphasised that products should reflect technology development in their forms, regardless of radical or incremental innovation. However, empirical studies have yet to explore the

impact of technology through product form on product advantage. Integrating these theoretical and empirical perspectives, this study found that the consumer perception of technology in product form is judged in two domains of product value—utilitarian and hedonic—which consumers evaluate based on product specifications and actual use and based on observing its forms, respectively. This study defined the consumer perception of technology in a product that generates both the utilitarian and hedonic values as ‘perceived function’ and conducted a comprehensive analysis of the impact of functions, perceived function, and aesthetic impression on product advantage. First, this study contributes to the theoretical understanding of a product form’s role in communicating its functional features. Most previous literature neglected the difference between function and perceived function (see Hoegg and Alba, 2011). This conceptual confusion seems to have been a barrier to progressively understanding the trade-offs between ergonomic value and function in product form. The present study found that the evolution of function has a relatively small impact on perceived function that serves as a product’s iconic feature. Thus, the evaluation of the ergonomic advantage perceived by visual sense is influenced not by function but by perceived function. Second, the study contributes to the discussion on the performance of design in innovation management. Previous empirical studies have separately discussed product form and function, but this study comprehensively examined product form and the description of technology development through which consumers perceived utilitarian and hedonic values. The findings reveal that consumers tend to evaluate technology development based on descriptions of technological specifications and the actual use of the product rather than based on observing product forms. Thus, technology development is worth further investigation, although there is an increased emphasis on the power of product form. Additionally, our methodology contributes to developing a comprehensive analysis of function and product form. The existing literature primarily evaluated function as a utilitarian value only through consumers’ visual perceptions of a product’s appearance. Alternatively, this study’s data source involves users’ responses to actual use, which allowed us to identify utilitarian values that users also perceived from product form and then examine how changes in product form and description of technology development generate product advantages. Moreover, the data set involves two methodological advantages compared to the above studies’ data sources—it is accessible to anyone, and it has abundant data (reviews). Fehder et al. (2009) demonstrated the usefulness of such a data set as a novel source for econometric analysis. This empirical analysis is beneficial for managers who struggle to understand the performance of technology and design.

Limitations and future directions Despite the contributions here, we also note a limitation of this study. The exploratory factor analysis failed to categorise the mode of use as an ergonomic advantage, regardless of the indication from theoretical studies (Crilly et al., 2004). The data set has a weakness in that attributes of the survey respondents and their evaluation processes are out of our control, although it has the abovementioned merits.

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Product development is a highly aesthetic and technological activity in which countless, mutually influential factors are involved. Despite the limitation, our introduction of the concept of ‘perceived function’ may shed light on a new aspect of research on technology and design. We hope this study will be a starting point for the emergence of a new stream of research on human–product interactions.

Biographical notes Satoru Goto is currently an associate professor at Ritsumeikan University, Japan. He received his PhD in the Technology Management from Ritsumeikan University. He has an undergraduate degree and a master’s degree in Science and Engineering from Ritsumeikan University. His current research interests are product-service systems and innovation of meaning. His articles have been published in the Journal of Technology Management and Innovation. Yuuki Shigemoto is Lecturer in Marketing at Toyama University of International Studies in Japan. He was a doctoral researcher at the University of Cambridge when this paper was written, and has been a fellow of the Design Management Lab at Ritsumeikan Unviersity, a Senior Project Researcher at Keio University, and a Co-founder, Director and Design Manager at House of Craftsmen. Co., Ltd. His main research interests concern socio-cultural factors that affect consumer perception for designer intent which is shaped as products. Shuichi Ishida is Professor of Technology and Engineering management at Ritsumeikan University. His research focuses on technology strategy and R&D organization, high-tech entrepreneurship, management systems. In particular, his current research concern is based on perspectives of factors influencing Japanese auto suppliers’ predictions about the future of innovative technologies such as electric vehicles.

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Appendix Table A1. Collinearity Assessment VIF

Collinearity Problem

1.206

1.501

1.741

Table A2. Results of f2 Effect Sizes f2 PA

2.184

0.165

0.358

n/a

0.482

n/a

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J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

A Co-evolution Framework towards Stable Designs from Radical Innovations for Organizations Using IT Lakshminarayana Kompella Abstract: The purpose of this paper is to theoretically and empirically explore how organizations can enable radical product innovations to cumulate as stable designs. Radical product innovations are organizational responses to external triggers that cause transitions. To manage in transitions, it is necessary for radical product innovations to cumulate as stable designs. Organizations ability to co-evolve with the environment does influence innovations to cumulate as stable designs; to examine this, the author selected public procurement that uses IT as radical product innovation with pronounced environmental influence, government’s interventionist approach. The author used multiple case-study and obtained diverse analytic and heuristic views. From the cases, the author noted that actors did consider local and contingent factors only that resulted in certain radical innovations cumulating as stable designs. As an initial starting point, such actions are appropriate but organizational actions to expand their initial actions with a co-evolutionary framework that considers social contexts. Keywords: socio-technical systems; radical innovations; open systems; co-evolution; case studies. Submitted: March 27th, 2019 / Approved: June 12th, 2019

Introduction Organizations focus on supply and demand, often, with emphasis on rational decision-making. Along with supply and demand, utility and profit maximization also play a key role. Economic growth is not necessarily based on capital accumulation but also on innovation and knowledge. Both neoclassical and innovative economics focus on optimized utilization of resources while innovative economics emphasizes responses to change. The supply and demand and, in certain geographies, governments interventionist role also decide the organization’s responses to change. Organizations respond to change with radical and incremental innovation. Frameworks such as Multi-level perspective (MLP) defined the origin of both radical and incremental innovations. The latter occurs in the regime level of MLP while the radical innovations occur at the niche level. The external and internal factors influence innovations both at the regime and niche level. The external factors such as interventionist approach, supply-push and demand-pull and internal factors such as profit maximization, knowledge accumulation and so forth decide the extent to which regime supports innovation including the adoption of radical innovations. Organizations deal with socio-technical systems characterized by heterogeneous configurations such as policy, technology, regulatory, user-preferences and so forth. These configurations also decide the extent to which adoption of innovation occur at the regime and niche level actors’ responses to external triggers with radical innovations. The cumulation of radical innovations as stable designs at regime level signals the adoption of radical innovations at the regime level. For radical innovations to cumulate as stable designs, apart from technological advances the actors need to change the configurations by considering external and internal factors. The internal factors

manifest as 1) problems with the existing technology, 2) multiple actors’ acceptance of radical innovation, 3) integrating radical innovation into the socio-technical system architecture with appropriate changes to radical process innovations 4) ease at which changes to organizational culture occur to assimilate both product and process innovations and finally, 5) organizations receptiveness to environmental factors and environment around it. The interoperations, ruleset based interactions, among the stakeholders do compound the internal factors. Moreover, based on the domain of the socio-technical system rule-sets do vary. To examine the cumulation of radical innovations as stable designs, the author selected organizations that have a combination of interventionist approach, latest technology such as IT, supply-push and demand-pull characteristics, and regime actors who have entrenched certain rule-sets over a long period. Therefore, the author selected organizations from Central and state government of India. Moreover, organizations from Central and state governments, for a better response to the external and internal factors, did IT-enable their procurement activities. By examining the procurement activities of government organizations, the author plans to get insights into their adoption of radical innovations. For a better display of supply-push and demand-pull, the author considered only procurement activities of these organizations. These organizations did IT enable their procurement activities. IT innovations address spatial dimension factors, for example, address physical factor by enabling actors to access information from anywhere in the world and various possibilities of search such as keywords, syntactic and semantic processing address knowledge sharing possibilities to address knowledge asymmetries. Indeed, IT-based systems improve interoperations between organizations. In the next subsection, the author discusses expansion possibilities with IT.

School of Management, National Institute of Technology Warangal, Warangal, Telangana, India. E-mail:lnkompella@gmail.com

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Organization and IT IT innovations were initially used for automation of organizational activities. Both IT innovations and the organization’s external triggers influenced and did get influenced by one another. Thereby, IT innovations such as higher processing, memory, storage, distributed systems with localized and centralized functions enabled organizations to move away from work within their organizational boundaries, and, start aligning their work to span multiple organizations. In other words, organizations focused on workflow or the process. However, unlike workflow, information remained within organizational boundaries and based on authentication, authorization, and policies decided the users’ usage of resources (accounting). With the advent of IT innovations such as cloud computing, researchers such as Zammuto et al., (2007) content there is a possibility of organizing around information. Zammuto et al., (2007) feel that organizing around information new forms of interaction are possible, and, organizations can explore new forms of organizing. Zammuto et al., (2007) argue that though IT and organizations exist independently of each other having their own potentials and constraints, we require necessary theories to explain affordances that arise when IT and organizations enact together. Zammuto et al., (2007) identified five affordances 1) visualizing entire work process, 2) real-time/flexible products and services 3) mass collaboration 4) virtual collaboration and 5) simulation representation from the intersection of IT and organization. With these five affordances, Zammuto et al., (2007) want to inspire organization and information science scholars to open the black box of IT and organization for new forms of organizing. To open the black box of IT and organizations, the view through which we view IT and organizations become important. The two predominant views are the lens of realism and constructivism. Realism views that worldly objects have inherent properties that act as constraints on observational accounts. In constructivism, the reality of objects is itself an outcome of discursive practices in relation to the object. Interlinking and intertwining of social processes and technology artifacts do occur and we require to draw conclusions from the ways in which they are. The characteristics of technology and their relationship with social structures result in both being socially constructed. Therefore, Hutchby (2001) states that anti-determinism takes the view of anti-essentialism meaning - opposition to the view that technological artifacts have any inherent properties outside the interpretive work which humans engage. Literature has references where some of the significant constructionist works fall into unwelcome realistic assumptions (Hutchby, 2001). For example, socio-technical interactionism by Mackenzie and Wajcman (1999) say that specific functions and social effects of technology are bound to social factors, resulting in explanations struggling with a dualism between technology and the society. Reconciling between the opposite poles of constructivism and realism, Hutchby (2001) states, ‘it requires seeing technologies neither in terms of their interpretive textual properties nor of their essential technical properties, but in terms of their affordances and this third way opens the way for new analyses in identifying technological artifacts an important element in human conduct’, pg. 444.

The affordances provide organizations to use technological innovations and explore novel avenues. The avenues improve their internal factors such as transactional effectiveness, knowledge management, IT-enabled interactions, eventual information sharing, and so forth. To explore IT-enabled affordances, organizations’ receptiveness to the environment and its openness to assimilate change does become important. Notwithstanding, external factors such as supply-push and demand-pull and interventionist approaches do influence the extent to which organizations assimilate change. Therefore, in this paper, the author examines the research question, ‘In IT socio-technical system, for organizations to exhibit an open system what characteristics do they need to develop for radical product innovations to cumulate as stable designs.’ The composition of this paper is as follows. In the next section, the author discusses the theoretical perspective that provides a heuristic and analytic view to analyze organizations openness in assimilating changes and forms the basis of this study. The phenomena require examination in its setting, so the author selected a case study and discusses the details in section 3. In Section 4, the author discusses the organizational changes that are necessary for radical product innovations to cumulate as stable designs. Finally, the last section concludes the paper with the limitations of this research and directions for future research.

Theoretical perspective Transition theories such as Multi-level Perspective (MLP) analyzed socio-technical transitions of steamships (Geels, 2002), aviation (Geels, 2006); Dutch nuclear energy (Geels & Verhees, 2011), biogas (Raven & Geels, 2010) to name a few. These studies were case study based and were done on successfully effected transitions. The MLP has three levels landscape, socio-technical regime, and nicheinnovation which are structurally separated and not hierarchically. Initially, it had two dimensions structural, temporal dimensions, later Raven et al., (2012) added spatial dimensions and provided MLP with necessary analytic and heuristic views to analyze sociotechnical transitions. In MLP, responses to external triggers at the landscape occur in strategic niche spaces, niche-innovation level, by radical innovations. The timing of the innovation decides the transition, referred to as the temporal dimension. The structuration levels at the regime and niche levels are physically separated and operate at different socio and economic levels. Apart from physical, there are also asymmetry, heterogeneity, and unevenness among actors, information and its flow, and knowledge levels. The physical, asymmetry, unevenness, and heterogeneity constitute the spatial dimension and influences interoperations among stakeholders. Despite the three dimensions, there is a need to arrive at a complete understanding of how the radical product innovations originating at niche-innovation level with interactions at the regime and niche levels cumulate as stable designs (Schot & Geels, 2008). The responses to external triggers cause transition and based on the end-users wants-and-needs the triggers also decide the transition pathways (Kompella, 2017). Geels and Schot (2007) identified pathways or trajectories for socio-technical transitions, namely transformation, re-configuration, technological substitution, de-alignment and

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re-alignment, and reproduction. Based on the domain, for radical product innovations to cumulate as stable designs at the regime level any one or combination of the five pathways come into play. Government systems interact with society and researchers Kompella (2017) modified MLP as shown in Figure 1. The themes specific to

government act at different levels of MLP; at the landscape are changing technologies, human elements, societal trends, and purpose and role of government while at regime are interaction and complexity and information management. The pathways and themes influence the way radical innovations cumulate as stable designs.

Figure 1. MLP framework for an IT related socio-technical system (E-Governance)

Source: Adapted from Kompella (2017)

Open systems Organizations and society influence the adoption of technology and the way they absorb innovation does vary. Organizations and society’s evolution are heuristically and ontologically different (Witt, 2008). Organizations follow neo-Schumpeterian while society follows naturalistic evolutionary theory with marked differences in emergence, dissemination, and retention of novelty. To harness IT innovation benefits both entities need to co-evolve. Governments interact with society and for better responses to external triggers with suitable transition pathways along with cumulation of radical innovations they also need to assist the evolution of society. This requires modifications to configurations of the socio-technical system with appropriate changes to their rule-sets, thereby to their interoperations. Co-evolution of society is essential for the success of E-Governance, and organizations need to take the lead by providing affordances for society to IT innovations. In subsequent subsections of this chapter, the author discusses certain characteristics that organizations can consider for radical innovations to cumulate as stable designs.

Open systems theory developed in the second half of the twentieth century refers to organizations’ survival and its relationships with the environment. For open systems and other theories such as contingency theory, resources dependency, institutional theories encourage information to flow in and out, a source to set goals, explore alternatives and accomplish goals. Open systems tend to devise more than one way to accomplish goals or reach similar results with different conditions and operations, termed as equifinality (Bertalanffy, 1950). More than one way to accomplish goals (variation) leads to selecting from diverse alternatives (selection) and retaining the selected way (retention) when it assists in accomplishing the goal with optimal usage of resources. The variation-selection-retention in organizations leads to differentiation among their competitors leading to bigger market share. For sustainable strategies, it is necessary to include the environment with mutual interaction between organizations and entities in the environment. The process of reciprocal evolutionary change between two organisms that are ecologically dependent is co-evolution.

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Systems that support equifinality encourage alternatives and thereby competition. However, competition alone does not drive systems, humans cooperate with unrelated individuals and in large groups. Some economics refer to it as exogenous preferences and rational optimization. Apart from market forces and competition, cooperative exchanges and interactions would not be possible in self-interested individuals (Waring, 2010). Adoption of specific technological alternatives require cost advantage as compared to the existing technology; for example, cost savings are one of the most important motivations for customers to adopt cloud-based systems (Mital et al., 2015). Economic improvements are one of the reasons for radical innovations in the form of technological improvements and advancing functionalities to cumulate as stable designs. Slayton and Spinardi (2016), in their Boeing example of composite aircraft components, argue that different actors’ views in the conceptualization of risk and their definition of conservative or radical innovations contrasts with several approaches to innovation studies which tend to adopt a structural view rather than a micro view. Therefore, for radical innovations to cumulate as stable designs apart from technological and economic considerations, the author includes necessary process improvements. The process improvements refer not only to technological innovations but also the integration of several organizational systems and their subsystems. The exploitation of economic and process improvements by the interdependent systems decides the acceptance, or cumulation, of radical innovations as stable designs. Organizations create subsystems for reasons such as better management, information flow to and from outside and so forth. The broad classifications of the information flow from outside are economic, technological, socio-cultural and politico-legal. Organizations divide their subsystems in accordance with the four categories of information flow, namely personal (human resources management department), technical (R&D or product development department), commercial (marketing, sales, purchase departments) and controller (controls information flow by providing right tools and each department provides feedback to improve customer services); these subsystems can also assist in providing avenues for co-evolution. The senior management controls all the four subsystems by providing direction by considering the environmental factors and decides the co-evolutionary characteristics of the organization and the other entities with which it interacts. McKelvey (1997) distinguished macro and micro co-evolution as intra- and inter-organizations respectively. Porter (2006) agrees with McKelvey (1997) co-evolution definition, but quotes Malerba (2006) statement and emphasizes the need to identify what is co-evolving with what and how intense this process and whether there is bidirectional of causality. This led to Porter (2006) develop co-evolutionary logic (or macro) and co-evolutionary mechanisms (micro). Porter (2006) identified six traits that define coevolutionary mechanisms and are specificity, reciprocity, simultaneity, genetic fixing, boundary crossing and organically derived. On the other hand, co-evolutionary logic provides sustainable strategies and the basic assumption that the firm has a symbiotic, co-evolving relationship with the greater society and ecosystem (Stead & Stead, 2004) as quoted by Porter (2006). Therefore, for senior management to can

utilize co-evolutionary logic to establish the organization’s co-evolutionary logic by considering environmental factors that influence the organization and enable the organization’s subsystems to develop the six micro co-evolutionary traits. The orchestrating involves senior management considering the external factors and establishing the co-evolutionary logic (macro) and enable organizations subsystems to display co-evolutionary mechanisms (micro). In the subsequent subsections of this section, the author further discusses co-evolution and policy formulation that can provide insights to orchestration by the senior management.

Co-evolution In the biological sphere, species co-evolve to survive in their community while co-evolution in organizations increases their fitness to cope with the environment. The co-evolution driven by environmental changes does bring organizational changes. The scarcity of resources and competition comprise environmental changes. Organizations when going through changes can become isomorphic. The organization studies did explain these changes by considering selection, variation, and retention. On the other hand, strategic studies analyzed the organization’s internal changes by examining managers capability to enhance fitness and survival or focused on adaptation. Both the studies independently analyzed adaptation and selection that occur in organizations. Organizations influence environments and organizational environments (consisting of other organizations) do get influenced by these environments. Therefore, a combined examination of adaptation-selection is necessary. Researchers across the world highlighted the need to go beyond organizational and strategic theories to address adaptation-selection. The work by Lewin and Volberda (1999) using co-evolution framework provides a new lens and directions to advance the adaptation-selection. Porter (2006) developed a co-evolution framework for organizations and the natural environment. Porter (2006) identified three key points that make co-evolution frameworks unique and are 1) does not extend either strategy or organizational theories but makes new assumptions and models, 2) the human meaning-making process occurs more rapidly than biological co-evolution, and 3) the micro level (actor) activities measured by macro-level community effects (organizations interdependence, circular causality, iterative feedback and so forth). The organization’s co-evolution with other entities does define its intent and its actions; and based on external and internal factors can also become a constraint. The organizations selected in this paper are large monolithic systems with a large imprint. These organizations did ICT enable their procurement routines for a combination of reasons such as high-volume transactions, enhance transactional efficiency, procurement for and from multiple locations, and supply chains that involve essential commodities for diverse sections of the society. The managers with their learning process did perform the role of evangelizing and championing ICT initiatives. The learning process did enable them to perform their activities using ICT-enabled routines.

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The learning process referred to as the internal process, did form a coevolutionary logic with the external changes that involved both the organization’s huge imprint and the other entities including society with which the organizations interact. The co-evolutionary logic did assist in improving transactional effectiveness but other aspects such as embedded agency did inhibit from taking further advantages of their ICT-enabled routines. The network collaboration that exists for these organizations also shaped their imprint and contributed to the inability of taking full advantage of their ICT-enabled routines. The external changes include the inclusion of human elements such as privacy, trust, access, learning and so forth. Along with human elements, the reach of IT systems has also increased and is not confined to any select groups or communities. Therefore, societal trends such as digital divide, mobility, political participation, and enabling economic development of various sections do confront IT systems. These do influence the co-evolution of society and IT systems. For organizations need to consider the influence of external changes that include society and the interdependent organizations and consider co-evolution it is imperative to consider both co-evolutionary logic and micro co-evolution. shape the interactions between interoperation rule-sets. This necessitates the need for organizations to drive co-evolutionary logic and micro co-evolution traits and modify interoperations for radical innovations to cumulate as stable designs. Policy formulation can help organizations in achieving the co-evolutionary logic and micro co-evolution drive interoperation rule-sets, and, discussed in the next section.

Policy formulation Selection of radical product innovation invariably requires actors at the regime level to adopt the innovation. The adoption requires certain adaptations or changes to the existing rule sets at regime with policy changes. Policy changes happen either top-down or using an embedded agency with changes occurring at a specific phase (end of the release). When changes occur at specific phases, the feedback from one phase feeds into the next product cycle - ‘policy cycle’ approach. ‘Policy cycle’ approach to account for refactoring the currently developed (released) system with feedback obtained at the end of the release. Reconciliation of these changes with existing product roadmap is necessary when changes are not aligned with current roadmap can result in a state of conflict, affecting the selection-adaptation cycle. Therefore, instead of at the end of the product cycle feedback is necessary at specific intervals from relevant stakeholders. The inclusion of stakeholders for feedback also plays a key role, by considering practices of people who implement the policy. This approach can help in developing a practice-oriented guide to policy instead of ‘policy cycle’ approach. Practice-oriented guide to policy assists in developing a policy that closely represents reality and does not deviate from reality (Colebatch, 2005). Policy changes that impact the wider audience, say, citizens, may also require communication from policymakers to address social and ethical quandaries (Fedorowicz et al., 2010). A socio-technical system that has wider usage with several participating organizations getting

involved at various stages, policy formulation to desist from following concomitant top-down policy formulation and involve embedded agency with inter-organizational collaboration. Organizations to use inter-organizational information system (IOS) for information sharing leading to shared decision-making. To achieve that organizations may also develop capabilities that allow them to coordinate with organizations (coordinative capability) and collaborate with wider stakeholders (combinative capability). The organization’s procedures, systems, manuals, methods (system capability) to assist both coordinative and combinative capabilities. Policies used in socio-technical systems define the business strategies of organizations that develop IT products. These organizations can assist in stabling designs of radical product innovations by using flexible and scalable product architecture that brings the required agility during product development. The developed product is operationalized by customizations/configurations to meet end-users wants-andneeds. For achieving the necessary agility, a unique combination of product development and operationalization (customizations/configurations) are necessary. The agility decides the extent to which radical product innovations stabilize as designs. The policy formulation to strive for and sustain agility. Organizations that develop IT products need to co-evolve with organizations that use their IT products. Both organizations, that develop and use IT products, need to adapt by making necessary changes to their organizational culture. Apart from product architectures influence process innovations, organizational culture does assist in the cumulation of radical product innovations as stable designs, the author has reserved this as future work and out-of-scope for this paper.

Summary Transition theories such as MLP that are beyond the mere ontological representation of reality explain transitions using three structural levels and dimensions. It also explains the reasons for transitions and the levels at which triggers occur, the level at which response for trigger occurs, transition pathways and protected spaces for radical innovations and the location at which incremental innovations occur; however, complementing grand theory of MLP with local theories is essential for a complete understanding of radical innovations cumulating as stable designs (Geels & Schot, 2007). The author identified three themes that assist in stabilization of radical innovations and are 1) organizations function as open systems 2) process innovations that influence and shape product architecture and organizational culture, and, 3) improvements to inter- and intra-organizational interoperations by improving organizational activities and capabilities. The focus of this paper is on the first theme. For sustainability, organizations need to maintain a harmonious interaction with the environment. It is essential for organizations to focus on mutual benefit, at least in the long run, rather than exploiting their relationship for short-term gains. Therefore, organizations to have porous boundaries for receiving signals from the environment or focus their actions for developing an open system. As organizations focus on growth, for a mutual benefit, need to focus on the benefit

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of the environment by providing affordances and co-evolve with the environment. In Figure 2, the author depicts natural, built environment, society, and organization as concentric circles with the four organizational subsystems at the center of the concentric

circles. The concentric circles also depict the hierarchical influence of environments on organizations. In the figure, dashed arrow lines depict macro co-evolution and solid arrow lines micro co-evolution.

Figure 2. Society and Organizations co-evolution with built and natural environments

Source: Adapted from (Porter, 2006)

The forces that drive the organizational subsystems act at regime or landscape levels of the MLP. Organizational actors formulate policy to reflect co-evolutionary logic (macro co-evolution) and devise actions

to represent any or a combination of the six micro co-evolutionary traits. Table 1 lists the six micro co-evolutionary traits, characteristics that require permanent and significant changes are in italics.

Table 1 Six characteristics of micro co-evolution Biological Characteristic

Organizational co-evolution

Specificity

Local, sector-specific and path-dependent.

Reciprocity

Changes to multiple organizational elements.

Simultaneity

Change is mutual, in relation to the response of other elements.

Genetic Fixing

Structural or other permanent forms of replication and identifiable.

Boundary crossing

Involves two or more, unlike entities. Breakdown of cause-and-effect assumptions.

Organically derived

Adaptive, emergent, and distinguished co-evolution from the intended or induced strategy - Self-organizing.

{Source Co-evolution as research framework (Porter, 2006)}

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Case study methodology To better understand and analyze organizational dynamics in a sociotechnical system, it is essential to involve diverse organizations. In this paper, the author selected Central and state government organizations that IT-enabled their procurement activities by involving participating (either public or private) organizations at various stages of procurement. The selected organizations are large organizations that perform high-value procurement activities characterized by both volume and velocity. The organizational size did influence the demand-pull and supply-push in the procurement activities. The procurement occurred with deeply entrenched rule-sets shared by several organizations, and the size did shape these rule-sets. A singleminded focus on improving an internal factor of procurement activities, transactional effectiveness, and an interventionist approach did assist in shaping the rule-sets held by several organizations. An IT organization developed procurement software by considering the functions of the several organizations that participate in procurement; the software application did integrate procurement activities both by product (technical) and process innovations. The deeply entrenched rule-sets, policy, and operational based complexities did influence the integration activities. Selecting a single domain such as procurement does assist in identifying the policy commonalities, affordances that enable other entities, identifying situations for re-use of co-evolutionary traits across organizations (best practices), scenarios that inhibit display of coevolutionary traits, and so forth.

Case selection and protocol Like several studies of transition, the author uses a case study and uses public E-Procurement in India. Public E-Procurement is a multi-faceted socio-technical system that involves information systems, public administration, supply chain, procurement, and policy. E-Procurement finds its application in the procurement of goods, especially where the volumes are large with varying frequencies. The regime involves several organizations with transitions caused by external triggers such as changing technologies, societal trends and human elements. For a multi-faceted system like E-Procurement involving several organizations and external triggers, the pathway or trajectory is transformation. Various industries, namely nuclear industry, oil refineries, warehouse and logistics, collieries, railways, forest produce, and so forth use E-Procurement not only as a marketplace for the purchase or sale of goods but also for the dispatch of goods by rail and/or road transports. In India, there is no legal framework governing public procurement, The Indian Contract Act 1872 and the Sales of Goods Act 1930 govern procurements (Nag, 2013). To capture the complexities and dynamics

in Indian E-Procurement, the author used a multiple case study method (external validity) and selected cases from each of the industries with design following the guidelines mentioned in Yin (2009). Table 2 lists the selected cases along with their objectives and key characteristics. The cases required both public and participating organizations adhering or amending the rule-sets. The case selection considered three types of participating organizations that developed procurement software and managed the procurement activities, namely 1) Indian company with a global presence, 2) internal department and 3) a company that specializes in E-Procurement and performs all procurement activities with its own software. The software product in all the selected cases had product architecture that followed service-orientedarchitecture (SOA). Fieldwork included primary sources from companies and government reports and records, written sources, mainstream media reports to source information. Thereby, construct validity. Using diverse methods, the author achieved data triangulation. The diverse information source helped in triangulating the identified constructs. One reason for relying on the primary source of data is a dearth of secondary literature on transitions from the perspective of the co-evolution of organizations as open systems. The author aimed output of inquiry at explaining specific implications that highlight the challenges at the regime level. Explanations also aimed at identifying scenarios that exhibited and challenges that inhibited co-evolutionary traits. For internal validity, the author used explanation building from the qualitative data and followed coding as suggested by Blair (2015). Interpretivism based on such an approach provides the required deductive processes in qualitative research (Hyde, 2000) and (Hossieni et al., 2012). From the selected cases, it is discernibly evident that organizations perform public procurement as a sequence of steps. The department responsible for procurement analyzes the stock of material across the organization and performs data aggregation and sourcing solicitation strategies. The solicitation (or tender) involves arriving at procurement documents, evaluation criteria and prerequisites to qualify as sellers. Departments take the tender forward by advertising and conducting pre-bidding conferences to clarify any ambiguities and release Request for Proposals/Information/Quotations (RFX). Before proceeding with the tender process, prospective sellers who are eligible to participate in the selection process do pay a refundable deposit amount. IT system with the latest security mechanisms manages sellersâ&#x20AC;&#x2122; response to RFX including their bid price. Forward auctioning (sale of materials) or reverse auctioning (procurement) done using the IT system with the IT system rolling out the tender contract to the bid winner.

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Table 2 Summary of the selected cases Industry

Organizations

Key Characteristics

Nuclear Industry Public: Nuclear Power Corporation of Materials procurements for seven nuclear power India (NPCIL) plants. Participating: Nextenders and TenderStrategic sourcing initiatives with equitable access to Tiger government businesses.

•

Indian Railways 30,000 employees in procurement department.

Public Indian Railways Participating: Indian Company with a Vendors grouped as Part-1 and Part-2. First-time ven- global presence dors in part-2 and on performance move to Part-1.

•

128-bit encryption, PKI, a firewall and intrusion detection, secure socket layer (SSL), non-repudiation} 8000 vendors managed, reduced late bidding issues

• •

Business intelligence on the tendering process Subcontracting after tender allotment

•

Online RDBMS based material management identifies consumption rate and raises intent. Covers all 24 zones and 8 manufacturing units. Manages both stock and non-stock units.

• •

• Collieries Meet coal needs not related to Fuel supply agreements (FSA)

Public: Coal India Limited

• •

Participating: MSTC or Coal Junction •

•

Warehouse & Logistics Agriculture and other produces stored in warehouses

Public: State Government (Madhya Pradesh) Participating Organization: MPOnline (a citizen services initiative)

• • • • • •

Public Distribution System

Public: State Government (Chhattisgarh)

Provide essential commodities to economically challenged sections of society from distribution centers Participating: Internal IT department FPS (Fair Price shops)

• •

Forward (every quarter) and spot auction (twice in a month) E-Auction system integrated with the ERP system Weighing and dispatch by trucks integrated with E-Auction. Non-end-users not allowed to unload coal within 60km of coal dispatch centers. Supply chain: Framer → Cooperative Center → District Collection Center → Central warehouse → Distribution centers Details of produce procurement at cooperative centers sent as electronic messages to registered farmers. On receipt of produce from farmers, banks transfer funds electronically to farmer’s bank accounts. Manual data sync between cooperative and district level collection centers. storage capacity increased from 7.9 MN metric tons to 15.2 MN metric tons in the last five years. Used private warehouses to augment capacity. Beneficiaries issued smart cards with biometrics with checks from the Food and Health departments Text messages sent to beneficiaries/vigilance-team on dispatch of commodities from warehouse to FPS. Addressed pilferage, diversion, wrong/intentional exclusion/inclusions, duplicate/ghost beneficiaries and unavailability at FPS.

Case synthesis From the information gathered from the selected cases, the author used coding, as suggested by Blair (2015), in three phases to synthesize the information. During coding, like in any coding method, it is necessary to follow a methodologically thoughtful approach and identify concepts, categories, and patterns and not use any pre-established tools. The concepts, categories, and patterns are later mapped to established theory, for this paper, the established theories are the transition and co-evolutionary theories. The author identified con-

cepts, as suggested by Corbin and Strauss (1990), by coding concepts and not by lines-of-data. After identification of concepts, the author mapped the codes to categories and further to patterns; the author ensured that the categories/patterns are beyond grouping of concepts and represented certain properties and dimensions of the phenomenon. In the next step, the author used constructs from the established transition and co-evolutionary theory and mapped the patterns. Figure 3 and 4 summarizes the coding process followed by the author for both the actors who used and developed procurement software.

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Figure 3. The coding depicts the categories and the constructs from the transition and co-evolutionary theory - Actors who perform procurement activities

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Figure 4. The coding depicts the categories and the constructs from the transition and co-evolutionary theory - Actors who develop procurement software

Case findings The selected cases had the scale in terms of both the type and volume of materials and IT did assist in meeting scalability. In all the selected cases, the procurement software with its SOA architecture had the necessary memory, storage, and processing power to meet the desired scalability requirements. Each case did exhibit group formations and extended the embedded agency that existed in each of the cases. For example, the groups exhibited by cases that used participating organization (Nextenders, TenderTiger, MSTC or Coal Junction) that managed the procurement process was different from groups exhibited by Indian Railways or Public Distribution System. From the selected cases, the author noted two distinct areas that are worth discussing. Technology. The volumes that existed in each case, a technologybased approach that assisted in meeting objectives and goals. The developments in SOA did resolve the spatial dimension, especially physical factor. Usage of technology to address other spatial factors were less limited. When public organizations outsourced procurement activities to participating organizations, especially managing the selection process, it did allow actors in public organization to focus on upstream activities of procurement. In other words, procurement objects such as forward and reverse auctioning were due to connections of the participating organization, albeit temporary. On the contrary,

in cases Indian Railways and Public Distribution System, the public organization actors performed procurement objects and assigned procurement contracts to their select groups. However, the purpose of the E-Procurement in all the cases focussed on transaction effectiveness, therefore, if the interactions between the actors focussed on performing the activity as transaction oriented, network did perform its activities and the effect of selection activities either performed by the integrated or a separate group did not play a significant role. In some of the selected cases, the author noted no internet connectivity in cooperative centers with limited internet connectivity in district centers, organization locus of control did not extend over the entire length of the supply chain, change of transport logistics were left to the vendor to manage, no integrations with vendorsâ&#x20AC;&#x2122; ERP systems, limited gathering of real-time data and/or automated systems to track, and stock or monitor of commodities at various stages. The feedback did exist and fed into policy formulation but a policy-cycle approach. Feedback does play a key role in evolving the system from its initial design constraints and a practice-oriented guide to policy can assist in better evolution of the system. Local and Contingent forces. Vendors who can meet the volumes or have scope to scale their operations and meet volumes were preferred to get the contracts. The economies of scale do work to their advantage. Vendors did channel their efforts to establish

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themselves in the select vendor lists of the contracting organizations. Apart from quality, it requires making necessary specificity related changes. The changes were positioning delivery centers locally (geographically) close to public organization’s consumption units. The vendors did utilize geographic, social, and political factors to assist them in their path dependency. The path dependency did become obligatory passage points. The forces (agency) from the vendor and the public organizations did drive the actors in the network to perform the ICT-enabled procurement activities, referred to as translation. Indeed, the translation required a contribution from both the vendor and public organization and included calculations, negotiations, persuasion, and some intrigue actions. The translations bring mobilization of resources, albeit, temporarily. In certain situations, translations did bring permanent mobilization of resources; actors formed groups, cartels, or family relationships or investments in vendor organizations and so forth (like keiretsu of Japanese governance); in other words, formed alliances. The new entrants had to work through these alliances and became obligatory passage points. The obligatory passage points did ensure the durability of translation and mobilization of resources, thereby providing sustainability. In all the cases, the objectives of E-Procurement solution were transparency, efficiency, stimulate competition, reduce procurement cost (reduce time), larger vendor/bidder community and improve tracking and monitoring. The presence of obligatory passage points did address some of these objectives and caused certain irregularities. The irregularities were in the form of the award of contracts at exorbitant rates, acceptance of substandard supplies, failure to carry out quality checks, and manipulation at the tender processing stage to eliminate eligible bidders. Despite the award of punishments, we can attribute obligatory passage points to these irregularities. The properties of E-Procurement solution did enable the organizations to achieve transactional efficiency and address the physical aspect of the spatial dimension. The embeddedness of the agency did limit the influence of technology and reflected in the formation of alliances. In other words, the agency did not allow the technology to change its inscription about E-Procurement or the organization’s influence with other entities. The organizations continued with their existing design and did not attempt any changes to their policy, structure, and design; the actors did make policy changes to include changes for IT-based transactions. The actors did use feedback at the end of the cycle to update their methods and not an orchestrated feedback system that brings changes to organizational structure, policy, and design to continuously improve its adaptation. The influence of local and contingent factors was so significant that the actors viewed technology and its properties in a constrained view. The constrained view is the actor’s realistic view of technology and the designs that did fit into their view cumulated as stable designs.

Discussion Unlike other domains, IT is a fast-changing field. Actors in the selected cases used IT to transform the existing socio-technical system. The incumbent technology’s inability to meet transaction volumes

and the reach, IT could easily replace the incumbent technology. The organizations in the selected cases did exhibit considerable influence on the vendors mainly due to their size, volume, and the velocity. Apart from the organizational influence and the associated power and politics, the actors did form groups and assisted in influencing other vendor actors, or in other words did exhibit agency. These organizations being public organizations, the government’s interventionist approach also assisted in actors exhibiting agency. The selected technology (IT) had the property to bridge physical distances and process huge amounts of data and addressed the need to connect geographically separated buyers and suppliers and the associated data volumes. The technology’s properties can also become constraints and the author did notice that in the integration of the buyers and suppliers’ IT systems. The constraints in integration did prevent from complete re-design of the workflow where the technology did confine to select sections of the workflow. In other words, the actors’ discursive practices they had accumulated over a period and the artifacts of technology prevented them in re-design of the workflow. The actors’ constructivist view of procurement activities did result in taking a deterministic view on the role that technology can play. Their approach was ‘technology-deterministic’ and confined it to their realistic view of technology. The properties of technology and the procurement process get intertwined and become interrelated. The incumbent technology did shape the actors’ constructivist view of procurement and their constructivist views got ingrained into the agency. The incumbent technology did play a transformational role until the actors’ formed a constructivist view. Later, when the incumbent technology’s properties became a constraint the actors resorted to substituting the incumbent technology with the IT technology. In doing so, actors intuitively followed a realistic view of IT technology (IT can address physical distances and process huge volumes of data – one of their realistic view) and followed re-configuration trajectory. The actors’ view also reflected their anti-essentialism, i.e. properties of IT technology do not have any significance other than the properties that the actors believed that IT technology possessed. Instead, if the actors had taken a nonrealistic view of IT technology the actors view on the IT-enablement of procurement could have been in the path of anti-determinism. The anti-deterministic view can make the actors to explore transformational trajectory. A transformation trajectory better suits a public procurement system which are multi-faceted systems involving information systems, public administration, policy formulation, supplychain, and procurement. In the subsequent subsections, the author discusses the trajectory followed by the selected cases and the components that a transformational trajectory needs to consider for a coevolutionary framework.

Transition trajectory of the selected cases The agency did assist the actors in using IT and redesigning the routines. As discussed earlier, they followed a realistic view of technology-deterministic approach. Actors used IT specifically during the source selection (tender) process and did bring transactional effectiveness and reduced procurement costs. To harness the advantages

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of IT, a multi-faceted system to achieve transparency, changes to the large vendor/bidder community, competitive bidding, changes in the process from procurement planning to contract management, and changes to the entire procurement supply chain by following a practice-oriented guide to policy. The agency in the multi-faceted system needs to go beyond the outcome that a realistic view of the deterministic approach provides, transactional effectiveness, a practice-oriented guide does assist in achieving that. From the selected cases, the author did note that actors followed a policy-cycle to account for IT enablement of routines. For a multi-faceted system involving diverse organizations and communities, it is necessary for a social construct of policy. In doing so, actors can include relevant social groups and their opinions and different meanings that result in diminishing interpretive flexibility, closure, and stabilization. The groups form networks that consist of actors; the actors have their interpretation of technology formulated policy. When actors merely extend the existing policy for IT-enabling of routines without any social construct of policy, actors do not consider co-evolutionary logic. Co-evolutionary logic can assist in connecting micro level changes (IT-enabled routines) to the strategic, sustainable, and societal goals that government organizations need to consider. In other words, actors did not define any co-evolutionary strategies for the mutual benefit of the society and organizations and attributable to the agency trained in an interventionist approach.

Along with policy formulation, changing actors view of technology properties and its relationship to social structures is necessary. A constructivism approach works for policy formulation, but to change the technology properties as suggested by Hutchby (2001) a conciliatory approach of affordances is suitable. The author from the selected cases did notice that the actors did visualize the entire workflow of the procurement process, thereby implemented the visualize the entire workflow affordance identified by Zammuto et al., (2007). In the procurement process, the other affordances identified by Zammuto et al., (2007), especially, mass and virtual collaboration can assist vendors/bidders and the buyers to collaborate and develop real-time products/services. The selected cases displayed only the procurement activities like tender, auction, and reverse auction that buyers (public organizations) wanted for their select products. Organizations activities assist them to perform micro co-evolutionary traits, where IT-enablement of procurement activities assist them in performing the specificity micro co-evolutionary trait. To achieve other micro co-evolutionary traits, organizations need to re-define their activities by combining affordances identified by Zammuto et al., (2007); the author lists these in Table 3.

Table 3. Affordances and related activities to enhance procurement Type of activity

Affordance [Theme]

Objective

Remarks

Product catalogs

Real-time products/service [Quick search, classification, and so forth]

Type of products procured and the role of the vendor. Availability of detailed product specification – scope for enhancements and improvements.

Large vendor/buyer communities can influence the availability of information

Collaboration – mass/virtual [collaboration for better product specifications]

Better quality products

Local, contingent, and social context can influence collaboration.

Integration of information systems

Visualize entire workflow [supplyEfficient supply-chain; Transparency and increased chain; shorter product delivery throughput for both vendor and buyer. times]

Instead of vertical integration, it is better to have partner ecosystems supported by lightweight architectures.

Visualize entire workflow [supply- Pluggable architecture that provides ease of service chain; shorter product delivery provisioning, deployment, adaptation, integration, times] operation, and exchange.

It is essential to balance ease of exchange, deploy and adaptation with integration.

Visualize entire workflow; virtual collaboration [knowledge sharing among buyer and supplier]

Reduce spatial factors physical, asymmetry, heteroge- Interoperability at technical, syntactic, neity, and unevenness. semantic, and organizational levels.

Post procurement acti- Collaboration – mass/virtual vity – maintenance and [better knowledge management Insights into post procurement activity service towards improved operations]

Transparency into the operational aspects

Post procurement activity Visualize entire workflow [supply- transport chain; tracking of transport]

Global Positioning System (GPS) based tracking

Organize

Efficient supply-chain

Real-time products/services [orOrganize around information instead of tying inforganizations collaborate and share mation to organizational structure information]

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Requires significant changes at all levels.

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Avgerou and Madon (2004) argue that organizational actions apart from considering local and contingent factors need to include social contexts. The constructivist view developed by actors on the procurement activities did include the local and contingent factors. With IT enablement of procurement activities and when organizations plan to expand their activities to achieve other co-evolutionary traits, their actions redefinition to include social contexts. The fifth affordance simulation representation between IT and organization can assist organizations in further refining their actions. From the selected cases, the author did note that organizational actors did develop actions considering local and contingent factors and made necessary translations by bringing the agency into effect. The translations are towards IT-enablement of procurement activities and for improving transactional effectiveness and as envisaged by the interventionist approach. Along with the interventionist approach, the actor’s constructivist view of procurement and their realistic view of technology decided their demand-pull and supply-push actions. These actions are a good initial starting point but unsuitable to manage transitions, cannot sustain strategic actions and do not enable other entities to co-evolve. Therefore, when organizations use IT innovations and aim to go beyond transactional effectiveness, it is necessary to identify activities (as listed in Table 3) and strive for system receptiveness with the outside environment. In doing so, both entities organizations and society need to co-evolve where the co-evolutionary logic enables entities to display the micro co-evolutionary traits. In the next section, the author explains micro co-evolutionary traits and their role in shaping the transformational trajectory.

Co-evolutionary framework and transformational trajectory In the selected cases, the interventionist approach from Government of India did influence organizations policy decisions and other actions. The characteristic of the selected industries is their large partner ecosystem. The supply and demand pressures are so huge that these can assist in the co-evolution of organizations, despite their size and scale, and the partner ecosystems. Apart from the supply and demand pressures, the interventionist approach did influence the co-evolution of the organizations and the partner ecosystem. The co-evolutionary logic does shape the co-evolution of the organizations and partner ecosystems. The organizations did define their co-evolutionary logic, but the constructivist approach present in both organizations and the government (source of interventionist approach) decided their coevolutionary logic. As discussed earlier, the constructivist approach was technology deterministic and confined to their understanding of technology and its properties. For multi-faceted systems, there are diverse triggers that require responses that assist to cumulate radical innovations as stable designs. When actors perform routines with these stable designs, they can meet the diverse wants-and-needs of end-users. For continuously changing end-users wants-and-needs, a continuous generation of radical innovations and cumulate these as stable designs become necessary. In multi-faceted systems, like procurement, actors do develop constructivist views and these views can impede radical innovations and its cumulation as stable designs; therefore, while responding to transition with a trajectory, it becomes

necessary to transition the constructivist views of actors to a conciliatory view on technology and its properties. In this regard, a transformational trajectory that brings changes at multiple levels better suits multi-faceted system like procurement. For organizations to attempt changes, along with activities and related affordances listed in Table 3 it is essential for actors to consider the six micro co-evolutionary traits. These traits provide insights into other entities in the multi-faceted systems and their co-evolution. When organizations design these micro co-evolutionary traits into their system it assists in providing obligatory passage points. Apart from methods that assist in technology adoption, the design requires changes to both personal and organizational changes. In the rest of this section, the author discusses the changes, that assist transformational trajectory, in each of the six traits. Specificity. Organizational routines do perform activities such as create, retrieve, store, and send information. The changes initiated by the organization are specific and confine to the local and contingent factors. In the selected cases, technology is the only visible change in the routines with no change to the constructivist view of actors. In certain selected cases, the local and contingent forces did drive technology adoption. Reciprocity. Apart from the activities mentioned in specificity sharing of information does happen. Information sharing requires both inter-organizational interactions and information systems, IOS. The spatial dimension factors do come into play and require organizations to adjust their internal elements. The changes are towards developing capabilities such as system and absorptive. Simultaneity. The organizations expand the capabilities developed in the trait reciprocity by making changes that correspond to other organizations. As an initial starting point, organizations can attempt specificity, reciprocity, and simultaneity and address the spatial dimensional factors. When organizations address spatial dimension factors by using specificity, reciprocity, and spontaneity co-evolutionary traits it does result in agility. However, agility is a characteristic of the methods used to display the first three co-evolutionary traits. As mentioned by Russo and Fouts (1997), for co-evolution at the organizational level the top management commitment and intent are necessary and realize it at the middle and lower levels. To achieve changes at all the three levels the organizational culture does play a key role. As mentioned by Schein (2010), we can attempt organizational cultural changes at the three levels where artifacts, audios, and videos are at the first level, the employee beliefs, and values at the second, and the assumptions at the third level. To achieve other three micro co-evolutionary traits, changes to organizational culture become necessary. Genetic fixing, Boundary crossing, and Organically derived. The co-evolutionary traits bring agility that is endogenous or emergent, unlike the agility that is characteristic of the method used. The author refers to this emergent as defined by Conboy (2007), ‘readiness to

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rapidly or inherently create change, proactively or reactively embrace change and learn from change while contributing to perceived customer value through its collective components and relationships with its environment’, pg. 340. While organizations strive for emergent agility it requires changes to both personal behavior and organizational structural changes.

Conboy, K. (2009). Agility from first principles: Reconstructing the concept of agility in information systems development. Information systems research, 20(3), 329-354.

Conclusion and limitations

Fedorowicz, J., Gogan, J. L., & Culnan, M. J. (2010). Barriers to interorganizational information sharing in e-government: A stakeholder analysis. The Information Society, 26(5), 315-329.

Radical product innovations are responses that require actions from actors at multiple levels. Transition literature with stabilized transitions has highlighted the importance of radical product innovations but has fewer details regarding cumulation of radical product innovations. The author with procurement case studies did try to highlight the need for actions from multiple levels for radical innovations to cumulate as stable designs. Another characteristic of the selected cases is their interventionist approach. The stable designs are necessary to respond to external triggers; in multi-faceted systems, like procurement, the triggers are diverse and necessitates the need for co-evolution of other entities in the environment. More so, in an interventionist approach defining the co-evolutionary logic becomes important. In this paper, the author developed a framework for the co-evolution of organizations and the environment. The findings indicated that actors considered only local and contingent factors without any changes to co-evolutionary logic and with no focus on the co-evolution of entities in the environment. The approach did not emphasize shaping the engrained constructivist view of the actors. Such an approach does reflect in limited response to the external triggers where the organizations, in the selected cases, exhibited only the micro co-evolutionary trait specificity. IT has become increasingly pervasive in everyday life and supplanted several coordination and control roles of the organizational hierarchy. For organizations to utilize the full benefit of IT, it is essential to explore new forms of organizing and make organizations an open system. Individuals and society are also adopting IT, combining IT with new forms of organizing organizations can also connect with society and the environment. By developing responsive and agile organizational systems co-evolution of both organizations and environment is possible. In this paper, selected cases did display one six micro co-evolutionary traits with no major changes to policy and macro co-evolutionary logic, by considering cases with more examples of co-evolution, it is possible to further expand the co-evolutionary framework.

Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative sociology, 13(1), 3-21.

Geels, F. W. (2002). Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study. Research Policy, 31(8-9), 1257-1274. Geels, F. W. (2006). Co-evolutionary and multi-level dynamics in transitions: the transformation of aviation systems and the shift from propeller to turbojet (1930–1970). Technovation, 26(9), 999-1016. Geels, F. W., & Schot, J. (2007). Typology of sociotechnical transition pathways. Research Policy, 36(3), 399-417. Geels, F. W., & Verhees, B. (2011). Cultural legitimacy and framing struggles in innovation journeys: a cultural-performative perspective and a case study of Dutch nuclear energy (1945–1986). Technological Forecasting and Social Change, 78(6), 910-930. Hossieni, S., Dehkordi, G. J., & Aghapour, H. A. (2012). Insights into case study: A discussion on forgotten aspects of case research. International Journal of Scientific and Research Publications, 2(3), 1-6. Hutchby, I. (2001). Technologies, texts and affordances. Sociology, 35(2), 441-456. Hyde, K. F. (2000). Recognizing deductive processes in qualitative research. Qualitative market research: An international journal, 3(2), 82-90. Kompella, L. (2017). E-Governance systems as socio-technical transitions using multi-level perspective with case studies. Technological Forecasting and Social Change, 123, 80-94. MacKenzie, D., & Wajcman, J. (1999). Introductory essay: the social shaping of technology. The social shaping of technology, 2, 3-27.

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Porter, T. B. (2006). Coevolution as a research framework for organizations and the natural environment. Organization & Environment, 19(4), 479-504.

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Given Enough Eyeballs, All Crimes are Shallow – The Organizing of Citizen Collaboration to Solve an Online Detective Story Björn Remneland Wikhamn1*, Jan Ljungberg2, Bertil Rolandsson3, Magnus Bergquist4 Abstract: This paper theorizes about the organizing of online citizen collaboration. The setting is an Internet forum where people started their own investigations about a crime of animal cruelty. The concepts of commons-based peer production and generativity are utilized to analyse the complex organizing mechanisms of voluntaristic online collaboration in practice. Three general functions are introduced – operational, managerial, and noise – which are intertwined and together make up important basis for organizing generativity. Keywords: Commons-based peer production; citizen collaboration. Submitted: August 29th, 2018 / Approved: May 2nd, 2019

Introduction New distributed organizational forms have emerged in the wake of the Internet and mobile information technologies. Common to these modes of organizing is the collaboration across organizational and social boundaries (Benkler, 2006), facilitated by digital infrastructure (Zittrain, 2008; Baym, 2010) and a participatory (digital) culture (Jenkins, 2006). The term Commons-Based Peer Production (CBPP) aims to describe more fully such distributed initiatives (Benkler, 2006; 2015; Benkler & Nissenbaum, 2006) and to challenge the governance modes of production found in hierarchies, markets or networks. Illustrative examples often linked to CBPP are, for instance, communitymanaged open source software projects (O’Mahony & Ferraro, 2007; Hertel et al., 2003) and the Wikipedia (Loveland & Reagle, 2013). By making software code and encyclopedia content a common shared property instead of a protected proprietary asset, these phenomena have radically reshaped the software and encyclopedia industries. In recent years, examples have also emerged where peer production has taken a crucial role in activities linked to Governmental and Public authorities, such as in areas of e-democracy (Wright, 2012), collaborative public management (Goldsmith & Eggers, 2005) and in citizen engagement e.g., for election campaigns (Cogburn & Espinoza-Vasquez, 2011), in protest manifestations (Mercea, 2012) or in crisis management of natural disasters (Yates & Paquette, 2011). We will in this paper call these ventures online citizen collaborations, due to their attention to topics of societal importance, their participation inclusiveness, and their bottom-up organizing processes. Some of these projects utilize more organization-centric approaches, where one focal actor (e.g., a Governmental agency, a public organization or a non-profit organization) is managing the mobilization and engagement of citizens to participate in certain predefined tasks or problem-solving work. However, an increasing number of citizen collaborations are also exemplifying more ‘pure’ CBPPs, where people set their agendas and self-allocate and self-organize themselves in voluntaristic and informal manners, e.g., in order to search for missing people or in solving crimes (c.f. Goldsmith, 2010).

This paper reports a study about such a CBPP citizen collaboration. The setting is an Internet forum, which we will call The Space, where people started their investigations about a crime of animal cruelty. So far, there is limited research about distributed public organizing in taking on such civic tasks, and more specifically on how these publicly distributed ventures are organized in practice. In order to investigate various forms of collective problem-solving processes, studies have commonly been inspired by the literature on open source, user innovation, and online communities, highlighting areas such as about motivational forces (e.g., Hertel et al., 2003), governance modes (e.g., O’Mahony & Ferraro, 2007) and participatory IT architectures (e.g., West & O’Mahony, 2008). Most studies of open and distributed innovation are technology-driven and focusing on partly commercial projects. Studies that examine online collaborations focusing on broader societal interests were amateurs voluntarily participate in the creative process, are still rare. Hence, we suggest that studying the organizing mechanisms of CBPP in online collaborations (in this case anonymous crime solvers on The Space) will add knowledge about and their possibilities and challenges in contemporary society. The research question is: What mechanisms enable the organizing of online citizen collaborations in order to solve crimes? We will take our theoretical departure in CBPP, and analyze how such organizing is done in practice and also discuss some critical implications this mode of production have on society at large. We concur with Kreiss et al. (2011) in that peer production is too often excessively celebrated for its positive potentials and seldom challenged for its negative aspects. For instance, Kreiss et al. (2011) argue that peer production transforms the social dynamics and governance from State laws and regulations, constituted on fairness, accountability, and inclusivity, to more blurry, ad hoc and anonymous meritocratic relations. By examining a case of citizen collaboration, these societal challenges in organizing dynamics will become more visible, as it will problematize the discussion about which tasks peer production can and should overtake from the State and Governmental actors, for the good of the civil society.

1) Department of Business Administration, School of Business, Economics and Law, University of Gothenburg, Sweden. 2) Department of Applied IT, University of Gothenburg, Sweden. 3) Department for Sociology and Work Science, University of Gothenburg, Sweden. 4) School of Information Technology, Halmstad University, Sweden. *Corresponding author: Bjorn.Wikhamn@handels.gu.se

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The article is structured as follows. First we relate the paper to research on open and distributed innovation. Next, we specifically examine the theoretical notions of commons-based peer production (Benkler, 2006) and generativity (Zittrain, 2008; Remneland Wikhamn et al., 2011) as the basis for the theoretical perspective that will be used to analyze the empirical case. Third, the implications of the study are examined, in line with how theories relate to the empirical case and how studying online collaborations can provide further elaboration on the selected theoretical concepts. The article ends with some final conclusions.

Commons-based peer production and generativity Within the realm of distributed organizational forms, Benkler (2006) introduces the notion Commons-Based Peer Production (CBPP). He describes it as: [R]adically decentralized, collaborative, and nonproprietary; based on sharing resources and outputs among widely distributed, loosely connected individuals who cooperate with each other without relying on either market signals or managerial commands (Benkler, 2006, p. 60) In this production mode, no single actor ‘owns’ the outcome or manages its direction and the process is highly decentralized, providing free and voluntaristic opportunities for action. While open innovation and crowdsourcing add to a long trend in industrial innovation management where firms gain knowledge from external resources and connect to other actors in consortia or networks (Mowery, 2009), CBPP is proposed to be a new modality of organizing production, fully distributed and without governance through traditional hierarchies or markets (Benkler, 2006). As such, it differs from firm-centric open innovation initiatives, which do not separate ownership from governance and which could be considered to be a relatively controlled way of opening up. CBPP, on the other hand, is an organizational form where the initiatives to a large extent lie outside of the firm boundaries. It also differs from crowdsourcing where the tasks are often regimented and pre-specified by the task owner. However, CBPP resemblances with much open innovation- and crowdsourcing activities in its dependency on digitally networked environments provided by the Internet and web-based services for leveraging the distributed resources. To this end, social media and social networking sites (SNS) have become vital resources. Benkler and Nissenbaum (2006) further detail that CBPP relations regularly exhibit three structural attributes: 1) modularity (i.e., that the commons is divisible into independent components), 2) fine granularity (i.e., that the size of these modules can be rather small), and 3) low-cost integration (i.e., effective mechanisms for integrating the modules into a whole). If these characteristics are in place, it opens up the possibilities for a large pool of contributors to engage in production both incrementally and asynchronously. Benkler (2013) has recently also defined peer production organizing in that it combines three core characteristics; 1) the decentralization of both conception and execution of problems and solutions, 2) the harnessing of diverse

motivations and 3) the separation of governance and management from property and contract. Furthermore, Benkler (2013) argues that CBPP is best suited for tasks where the degree of uncertainty in the project is high, where the knowledge required is tacit, creative and intuitive and where the capital cost of execution is low or distributed. A related notion to CBPP and its additive production is that of generativity (Zittrain, 2008; Remneland Wikhamn et al., 2011). Similar to Benkler (2006), Zittrain (2008) takes his start from the technological architecture of the Internet and of traditional PC infrastructure. He explains generativity as “a system’s capacity to produce unanticipated change through unfiltered contributions from broad and varied audiences” (Zittrain, 2008, p. 70). He also argues that “how much the system facilitates audience contribution is a function of both technological design and social behavior” (Zittrain, 2008, p. 71). In that sense, generativity encompasses the technology’s or website’s affordances (Leonardi, 2011), i.e., the designed properties for generating human agency and making the members of the network to relate to each other. Zittrain (2008) argues that a generative system is based on five principal factors; 1) leverage (i.e., the degree that the technology provide help for a set of possible tasks), 2) adaptability (i.e., the level of flexibility that the technology has in performing a range of different tasks), 3) ease of mastery (i.e., the technology’s user-friendliness to newcomers and a wide audience), 4) accessibility (i.e., the technology’s availability to ordinary users), and 5) transferability (i.e., how transferable any changes are to other participants). Concepts such as open innovation (Chesbrough, 2003) and open source (Hertel et al., 2003) are, as mentioned earlier, strongly associated with ‘openness’ as vehicles for value creation, but in line with Zittrain’s argumentation it is possible to suggest that it is instead the level of generativity that facilitates exponential value growth in large-scale collaborative projects (Remneland Wikhamn et al., 2011). We argue that generativity is connected to CBPP in the sense that the former can be seen as a further explanation of the mechanisms of value creation within distributed projects. Benkler (2013) highlights the need to protect users’ ‘freedom to operate’ in the governance of CBPP, since “it is precisely the lack of need of actors to seek permission or await direction before acting that allows peer production to avoid the information and diversity losses associated with price-cleared and hierarchical systems” (Benkler, 2013, p. 110). In other words, successful CBPP ventures generate increasing returns to scale up the value creation and harness people’s creative contributions while still adhering to diverse and multiple individual motivations for engagement. The outcome of such tinkering and remixing projects can be, for instance, labeled as mashups (Weiss & Gangadharan, 2010) or bricolage (Baker & Nelson, 2005), although CBPP is often a continuous iterative process where contributions are fed back to the community. The strength of these collaborative enterprises lies in the diversity of contributors’ knowledge, resources, and associations, but also in the possibilities that these different contributors can elaborate on the works of the others. When this happens on a large scale, strong positive feedback loops can become mobilized which make the outcome exponentially improved.

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We will use CBPP and generativity as theoretical constructs to analyze the empirical case of voluntaristic online collaboration to solve crimes. We show that these mechanisms have potential benefits that go beyond the resources and legal constraints of the police force, but that it also opens up several challenges and problematic issues related to e.g., ethics, personal integrity, and public laws.

Methodology Research design A case study approach (Stake, 2000) is utilized to discuss CBPP and generativity in citizen collaborations for solving crimes on Internet forums. Case study research is a well-established method, particularly suitable when analyzing new and explorative research areas. Case studies can provide valuable illustrations of dynamic processes (Siggelkow, 2007) and act as a basis for theoretical, in-depth insights about a particular topic or concern (Stake, 2000). The gathering of empirical data for the paper was inspired by netnographic methodologies (Kozinets, 2010) in which we in a structured way have downloaded and analyzed written posts from a conversation on the Internet forum The Space, as well as news articles related to the specific case of the pet killer mystery. Walther (2002) suggests that when Internet resources are more frequently used by researchers in social science research, it raises two concerns; 1) how these new research methods may affect ethical protection of human subjects, and 2) the validity of the collected data. Regarding the first issue, we have deliberately used a medium, an open online forum, where the participants are fully aware of that their posts are publicly accessible. We also made our best to make the case and its participants anonymous and since all quotes have been translated to a different language, the texts are not traceable online. Regarding the second issue, we have used an inductive approach to the analysis of qualitative data, and the analysis of these texts is explained further down. The setting: The Space The Space is a highly trafficked Internet forum, with two million unique visitors per week. The community includes almost 1 million members who publish about 20 000 posts per day. The Space has roots from the early 80s when it started as a printed punk magazine. In the 90s it was transformed to an underground magazine with the aim to write about topics which nobody else writes about, such as drugs, death, deviant behavior and various forms of crime. In 1995 it was launched on the Internet, with a large archive of URL-links to morally questionable websites (this was before search engines, such as Alta Vista and Google had emerged). A few years later, The Space started a free web hotel, hosting only websites that had been closed down due to moral reasons. This web hosting immensely increased the diversity of the community to include members such as outlaw bikers, Nazis, anarchists, hackers, antifascists and Satanists. As such, it emerged as a free zone for people with provocative opinions and who would like to discuss these topics anonymously or spread information about various, often abnormal or politically incorrect, information to the community. During the years, the website has faced

many controversies, in the form of public critique, accusations, and even legal impeachments. The community has increased exponentially, and the growth was escalated when the forum also opened to non-registered viewers. The critique toward the activities on the site remained, but also more positive stories started to circulate where the free speech and transparency showed its benefits. In recent years, The Space has even received prizes for the investigative journalism taken place on the forum. Data collection and data analysis One whole conversation thread, including more than 8000 individual posts (including e.g., post id, post time, content, username, and user registration date), was downloaded from The Space in the summer of 2014, using a simple script. The posts were published by users between the spring and fall of 2013, during the time that the crimesolving work took place. Added to this empirical material were also 50 news articles reporting about the case. We imported the posts from the forum into Excel and to a CDA program for further analysis. The empirical data was coded and categorized into analytical themes (Strauss & Corbin, 1990) with the help of these computer programs. During the coding, we assigned codes, classifications, names, and labels to texts that we perceived as significant for the case in the sense that they include information about the organizing of the solving process. This work also included the formation of a timeline for key milestones in the investigation process and an analysis of the different roles and functions of different key users over time. In the data analysis we were inspired by the grounded theory framework (Strauss & Corbin, 1990), where selective coding was used to progressively move constructs to higher and higher levels of abstraction. The analysis work has been conducted in collaboration between the members of the research team in order to enhance sensemaking and critical reflection.

The online citizen detectives and the pet killing mystery The case that this paper will analyze happened in 2013. Within a town district of a middle-sized city, dead (more or less slaughtered) pets turned up, one by one, on various locations. At first, the police were shown little interest in the matter, perceiving it as a minor crime. Local citizens such as the pet owners and their friends, however, started to act in order to identify who the offender was. They also utilized social media, such as The Space and Facebook, to organize their work. The involvement of participants in this search for the perpetrator increased in number as well as commitment, as the killings continued and traditional news media began to report about the case. Now, the police also started to put resources on finding this perpetrator, as well as to inform the local citizens and the media about the process. Groups were patrolling the streets at night, demonstrations were organized, and civilians and organizations offered monetary rewards for information leading to a capture. On The Space, several loosely organized groups worked more actively to solve the identity of the offender. Eventually, the police arrested an under-aged boy for the crimes, and he was later convicted and sentenced to forensic psychiatric care. For the public, the spokespersons from the police highlighted the

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crucial role that the groups on The Space have had during the process, stating that they were crucial for the capture of the offender. “These people were of great help, and we are very grateful that they took their time to assist in the process,” said one of the police investigators to the press afterward. In the aftermath, representatives from a loosely organized group on The Space started to take credit for being the ones who led the police to the right person. They also revealed a bit of the process and activities behind the scene, which they claimed eventually led to the identification of the offender. The killing of pets took place throughout several months, and it turned out that the convicted boy was also an active follower of the posts on The Space. When the groups realized this, they aimed to gain that user´s friendship and trust, in order for him to reveal his real identity. In the news, one of them stated; Several of us have worked on The Space in other cases, but then it has often been about a crime that already has been made. When it happens in real time, and can explode again anytime, or even strike on a human being, then it becomes extra intensive, and one does not want to feel afterward that he killed a woman, and we could have worked harder. To solve the crime, people organized themselves both in the public forum, and through other means, such as writing private PMs or email, using other websites, and meeting in real life. In this paper, we will analyze how the organizing of crime solving was carried out on the online forum. Therefore, we will first explain some basic preconditions that the users need to adhere to when posting on The Space. Everything that is published on the forum is available to read for the public, but individuals who would like to post something must have an own account (free registration, without need for real identification). One person can have several different accounts or aliases, but it takes about three days from registration to being allowed to make postings. There are also several rules for publishing posts, which, if not being followed can lead to warnings or even temporary cutoff from the forum. One such rule, which complicated this specific crime-solving process, is that it is forbidden to look for or reveal information with the purpose of disclosing a user’s identity. It is also not allowed to associate one username with other accounts on the forum or other websites. Hence, although the group knew that the offender was active on the forum, they could not use the forum itself to reveal his identity. They could, however, have discussions about the real person who made the pet killings and use various methods to come up with whom he or she was. Furthermore, the layout of the forum is rather simple, in that it is just a discussion thread where new comments are added in a long list. There are no possibilities to create sub-topics or sorting the posts, but a user can include a previous post to show whom the reply is directed. Also, assigned editors can delete posts that are considered to break the forum rules.

Organizing the investigation In the analysis of the more than 8000 posts on The Space related to our case, we were able to point out several different roles, distributed over the

hundreds of participants active during the six months’ time we studied the process. More broadly we also classified these roles into three general functions: 1) operational functions, 2) managerial functions, and 3) noise. First, we would like to point out that the functions and the roles to some extent can be overlapping, and that a single user can take on various roles. We also need to highlight that although we could by the content of the posts suspect that some highly involved usernames are owned by the same person, we exclude such analysis since it would have required more qualitative inquiries to be sure. The first category is what we call the operational functions, more precisely those users who contribute to the knowledge production of finding the perpetrator and thus solving the crime. This category included different roles, which jointly formed the distributed collaborative search group. There were, for instance, the initiators or idea generators, who took active roles in starting conversations about a specific topic, asking questions to the crowd, or suggesting new activities and methods. One initiator was naturally the user who started the thread in the first place. In this case, the user began by asked some general questions about the incident that he or she had heard about and read in the news and also adding a link to an article in the local newspaper. Another typical example was when a photo of a handwritten letter from the alleged perpetrator was published by a user on the forum, and another user posted: “Does someone have the patience to transcribe this shit so it is possible to read it? I get a migraine when trying to see what the fu*k it says.” This post was followed by a massive collaborative work in trying to interpret the content of the letter. A second and quite common activity was hypothesis formulation, i.e., propositions about key things in the investigation such as who is the offender, what is the general motive, why did things happen as they did, etc. These profiling propositions were made based on available knowledge, previous experiences or just personal beliefs, and ranged from extremely substantiated claims to mere opinions or even blind accusations. These hypotheses formed possible paths for the search work, but they also acted as cues for that user’s legitimacy and credibility within the community. A third important operational role was the information absorbers, who added information from the surrounding environment into the conversation on the forum. Sources for such information could, for instance, be other media (e.g., newspapers, Facebook, similar cases, laws and rules, etc.), but it could also be local information (e.g., incidents, facts, people, moods, etc.). The latter was possible because of the large amount of participating users who actually was from the geographical area of the crimes, and they functioned as local sensors, and also went to look for clues on the crime scenes. These activities are partly overlapping with the role of action interveners, who took own initiatives to not only report secondhand information but also to individually generate new information. Examples of such activities were, for instance, that users made phone calls to involved people or to the police, and afterward report the content of the online forum. They also mobilized night walks or public manifestations, and even tried to start conversations with the perpetrator. One illustrative post:

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I saw a guy on the tram toward [a district] that I also saw on yesterday´s manifestation. He looked nervous and suddenly jumped off at [a tram station]. When you read this, send me a PM, so that I can count you off. You recognized me very well, I noticed. Based on the result of all these different ways of information gathering, there were also crucial synthesizing functions, for summarizing and critically analyzing the content. The summarizing – to descriptively point out key milestones in a timeline or to provide a general progress report – was important especially because of the huge number of posts and that the Internet forum is not designed to help the users to structure or sort them by themselves. It helped newcomers and non-frequent users to be faster updated on the status of the work. The analyzing part included e.g., the generation of patterns of discussion threads and how different activities were linked to each other, as well as to other knowledge generated within the community. The second category we highlight is the managerial functions. These activities aimed not to solve the crime in itself but rather to manage the huge information flow that happened on the forum. Hence, they took on more general facilitating roles where users bring in their leadership and organization skills for guiding and steering the progress or function as a catalyst for other participants’ engagement. People in the thread made such facilitation attempts in various ways, from criticizing ‘bad’ behavior (e.g., “But please, it is enough with all the criminal profiling now. There are three walls of text with ‘I believe the offender is a lone psychopath who lives with his mother and read Strindberg before going to sleep”) to cheering (e.g., “Wake up thread! Perhaps you have seen a weird old man in a cap, or blood stains? Come on! We need you!”) and promoting ‘good’ behavior by concurring with a previous speaker. Much of this facilitating amongst users was made in a quite tough and ‘macho’ manner, such as “Fu*king idiots in this thread. Damn, your line of thoughts is so pathetic that you could as well shut up,” followed by a long exposition about what was wrong in their analyses. It is also important to point out that leadership and influence of a user within this case are not necessarily associated with the frequency of posts being made by that specific user. The user who published, by far, the most posts in the thread (over 350 posts) came to have a marginal impact. Instead, other users started to criticize him for publishing too many irrelevant things, and thus diverting the attention and creating too much noise. In fact, one important managerial function was to critically question other users’ credibility to weed out wrong or misleading information. One example to illustrate this can be seen in this post: I have tried to have a reasonable discussion with [user] but have reached the conclusion that it only leads to more questions and confusion than answers and clarity. I will not waste time on TROLLs. I have good knowledge about the geographical area, and when I asked about detailed descriptions about the surrounding, I just received smokescreens and boloney. The third category we will point out is the noise, and that would arguably be the least productive feature for generativity. Noise includes

nonsense texts, just random speculations, or even unsocial or rude behavior. These acts are in the online vocabulary called trolling. Trolling is when a user repeatedly and deliberately breaches the rules of the forum just for the aim of provocation or to lead the discussion off topic. Such behavior happened a lot in the discussion forum, and was most likely spurred by the fact that the users write anonymously. A typical example is for instance after one user had published a map where key incidences had taken place, another user replied: “You have made a fantastic map. Too bad that it does not mark out locations for chanterelles.” Also, a lot of racist comments were posted, speculating in the color of the skin of the perpetrator or just pointing out an alleged overrepresentation of immigrant criminals. When being too far off the topic these posts were removed by the editors, but to a large extent, they were allowed to continue. Another vocabulary used on online forums is necroposting, which is a message that is posted as new but is just a repetition of previous old discussions. Many of these double-postings happened because of the difficulties for users to get an overview of what previously had been posted, especially when the discussion grew with a rapid pace. Hence, it was often done by the users unintentionally. A typical post to illustrate this: “Perhaps this has been posted earlier, but I anyway through away this link: HTTP://...” Several comments pointed out how negative this ‘noise’ is for the generativity of the community, and its ability to solve the crime. For instance, one user wrote “this thread is definitely starting to lose its earlier power with all the nonsense going on,” and another user stated: “I am sorry, but I have not found the strength to read through one billion posts yet...” However, although it is rather easy to understand the frustration from some users who felt it was an inefficient design of the forum and timeconsuming to keep up with the latest developments, it is also worth to point out two things about this noise. First, as users and editors, it is difficult in the making to separate the noise from important information. Secondly, and related, it is impossible to predict which posts will generate other productive ideas and information further down the line. As an example, for sure one of the groups acting on The Space helped the police with significant knowledge to capture the offender, but there were simultaneously several other groups that also were working on the case but with different paths, which only afterward proved wrong and misleading. As one of the users from this group pointed out in a post; I also believe that it is better if many people run after the same ball, it creates redundancy, which is a comfort. It is a strength and security in that that many engage themselves and act. I am glad that we had the luck to work with a trace that proved correct, but there were many other interesting ideas to work with […] It is perhaps similar to evolution, that many different approaches, and some luck, guaranteeing that at least one life form survives. Diversity in ideas and approaches is a strength that increases the likelihood that someone will reach the target.

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Opportunities and challenges with generative Internet forums The case about the crime solvers on The Space has illustrated a new form of voluntary participation, organized anonymously online and with no hierarchical structure or extrinsic reward mechanisms at play. Much resemblance can, as pointed out, be found with commons-based peer production in the sense that the modes of organizing are radically decentralized and collaborative, based on loose and voluntaristic ties (Benkler, 2006). The work is modular with fine granularity and low-cost integration (Benkler & Nissenbaum, 2006) in the sense that any participant can add to the discussion with whatever content he or she wishes, either by starting new threads or replying on previous comments. This uncontrolled coordination is similar to what Burgess and Green (2013) found in their study on the YouTube community, portraying it as an aggregation of many subgroups, each with their specific practices and purposes, sometimes even at odds with the other groups on the website. Hence, they showed that online communities are far from a single collective, which also resembles the organizing on The Space. Due to the critical mass of active users on The Space, the discussions tend to generate massive activities, and the participants join with different knowledge and resources at hand. A diversity of roles and viewpoints can produce highly generative processes where ideas are created, challenged and remixed in a rapid tempo (Zittrain, 2008). The organizing on Internet forums such as The Space utilizes voluntaristic cognitive surplus (Shirky, 2010) of time and energy which on an aggregated level is providing almost non-exhaustible resources. This large crowd includes ordinary people but also individuals with strong analytical capabilities, experts on specific crime-solving knowledge domains, and people with detailed local knowledge. A concrete result of this abundance of resources is that it is for the community possible to have a vast number of parallel hypotheses and mini-projects open at the same time and that this redundancy of information increases the likelihood that at least one of the paths will have productive outcomes. Compared to normal policing, the amount of work-hours available for the specific task is higher, but arguably also the range of expertise is more elaborated within the large crowd, in comparison to a small police task force. In other words, voluntaristic collaborations for solving crimes online have shown benefits in the case of The Space, both regarding the breadth and depth of enrolled investigation activities. This exponentially additive knowledge-flow among a distributed and fluid network of diverse individuals is arguably the core mechanism in the pet mystery solving. The online forum on The Space would technically be considered generative in Zittrain’s terms, due to its possibilities to leveraging discussions in many different topics simultaneously and the low barriers to entry for non-experts (Zittrain, 2008). The generativity is enhanced because all the participants are anonymous, and that the forum encourages freedom of speech. The anonymity contributed to the creative approaches in the search for the offender, since the users were not bound to laws, nor social and ethical conducts, in contrast to the National Police force or public organizations. It was, for instance, possible to continuously reveal

identities of potential suspects to the crowd and to make traps and take other private initiatives without asking for permission from higher authorities. Compared to regular police work, the online participation on The Space, hence, were not bound to as many restrictions and limitations – ethical as well as practical – that the regular police force faces. However, the technological infrastructure was also considered by many participants to lack a user-friendly design, which made it hard to get overviews of the different discussion threads. Other studies have suggested that technologies can help users in e.g., filtering, sorting, recommending and crediting contributions to enhance production (De Alfaro et al., 2011), but for The Space, technology acted as a general platform for generativity but not as a direct facilitator. Instead, participants had to develop specific organizing mechanisms to sort out the helpful information from the noise. So although there were no hierarchical structures or formal role descriptions, the crimesolving on The Space was highly organized from the viewpoint that certain roles and functions as well as emerged norms and routines informally and fluidly governed the progress. Therefore, we enforce the notion of organizing generativity as a key driver for solving the case through CBPP modes of production. It has been pointed out in research that users on online forums tend to take on specific roles by enacting consistent and systematic behaviors that serve a particular function (Baym, 2010), such as local experts, answering people, conversationalists, fans, discussion artists, flame warriors, trolls. In the analysis of the solvers on The Space, we found similar roles, and we aggregated them into three general functions – operational, managerial and noise – which are all intertwined and together make up important bases for organizing generativity. The various operational roles work together in a somewhat chaotic, unstructured and highly decentralized production flow. Here, the creative generation of hypotheses was followed by testing and analyses, leading to new hypotheses in an ongoing iterative process. Profiling work was fine-tuned among the users, ideas and arguments were supported or criticized, and the collaborative discussions leveraged the motivated crowd to release their co-creative efforts. The operational function shows resemblance with the findings of Bennett et al. (2014) in their study on crowd organization in civic protest manifestations, where they suggest three mechanisms for peer production: production (i.e., creating and publishing content), curation (i.e., preservation, maintenance and sorting of digital assets) and dynamic integration (i.e., enabling switching between different actors, networks, platforms or technologies). The operational function on The Space was backed up by managerial functions and escalated through the redundancy of noise and nonsense that inspired structuring and ordering and as well as creativity in action. Hence, trolling and noise should not only be considered as problematic for the generative process, but if managed well can they also be seen as a prerequisite for escalating the productive flow. At the same time, the huge number of posts on The Space filled the discussion thread with much nonsense, and as the online forum has a rather non-user friendly design, it becomes a substantial investment to engage oneself in the progress. This is why managerial functions become so critical for organizing the generative activities, and also to instill the commitment and engagement from the users.

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Fig. 1: Three functions for organizing generativity in CBPP online collaborations

In viewing the process as a CBPP with highly generative features (organizing rather than technological), it aids the analyst in the understanding of the power of such distributed and additive processes. As already pointed out (e.g., von Hippel & von Krogh, 2006; Poor, 2014), the motivational mechanisms for peer-to-peer contributions vary from intrinsic to extrinsic drives, but since the participation on The Space is anonymous, the extrinsic motivators are highly limited. Instead, just the quest to find the offender, to solve a complex puzzle, to understand what happened, seemed more than enough a stimulus to engage the large crowd in generating positive feedback-loops. These incentives and the creative progress would thus be linked more to the value creation of sensemaking than to the value creation of monetary rewards (Bechmann & Lomborg, 2013). CBPP and generativity are too often associated with positive outcomes such as increased creativity, efficiency or effectiveness (Kreiss et al., 2011). Our case also reveals the problems and challenges involved with such anonymous and uncontrollable ventures. As Baym (2010) puts it: Media with fewer social cues often trigger hopes that people will become more equal and more valued for their minds than their social identities, but also raise fears that interactions, identities, and relationships will become increasingly shallow, untrustworthy and inadequate. (Baym, 2010) Similarly, Nielsen (2014) found in a study on online comments on newspaper websites that the anonymity of commenters tend to downgrade their real impact on journalists’ engagement with readers. Anonymity can thus lead to reduced interconnectedness and increased awkward social behavior among users (Baym, 2010). Also on The Space, the language can be rough, with much curses and personal attacks, and this flaming culture (Lea et al., 1992) possibly also excludes several potential contributors from joining the collaborative work. It is a well-known fact that so-called ‘lurking’ is a common practice in online forums (Schneider et al., 2013), that is, users who follow discussions passively. Preece et al. (2004) found that one of the most common reasons why people ‘lurk’ rather than contribute is that they do not appreciate the group dynamics or because they fear aggressive responses. Arguably, the ethical aspects of the publishing on online forums are often overlooked, with frequent occurrences of false personal accusations, bullying and other forms of defamation coming from the anonymous crowd.

Hence, the ‘open’ climate may lead to creativity and productive, nonorthodox solutions, but the lack of control mechanisms and regulations may also feed hostile and destructive environments (Kreiss et al., 2011). This raises an even more fundamental question, whether these citizen collaborations should be encouraged as a complement or even replacement to ordinary police work. Naturally, it is impossible for the State to stop these types of public initiatives, especially since The Space locates their servers outside of the national borders, but it is anyway important to critically reflect on their legitimacy in the public discourse by examining both the positive and negative potentials. In this specific case, it became even more complicated, since the offender turned out to be an active participator on the forum. A suspicion can be raised that the attention he received triggered him into continuing his pet-slaughtering in order to see the reactions of the crowd. In other words, yes, The Space community collectively helped the police to arrest the offender, but the forum itself might also have escalated the crimes in the first place.

Conclusion In this paper, we have drawn upon the theoretical concepts of CBPP and organizing generativity to analyze online citizen collaborations. A case study was applied, illustrating how users on The Space organized themselves to find and expose a pet killer, and to help the police in bringing him to justice. Although a case study may be seen as having limited generalizability for the overall population of online engagement, we argue that our findings have important empirical and theoretical contributions. First, we provide a detailed empirical account on online citizen collaboration, which is an increasingly important phenomenon in contemporary society but has so far only sparsely been addressed in academic literature. We illustrate in depth the complex organizing mechanisms that take place in these new organizational forms and discuss both their potential benefits and challenges. Second, we proclaim that CBPP is a useful theoretical concept for analyzing such online citizen collaborations and point specifically to the organizing generativity as a key driver for shared problem solving and value creation. CBPP has mainly been used in the domain of open source literature, and we argue that online citizen collaborations in some vital respects differ from such projects. The interplay between the anonymous crowd of private investigators, the public authority of the National Police force, and the traditional media makes the practice of CBPP more delicate as it exposes the positive but also the negative aspects of ‘freedom’ and lack of control in the public discourse. The generative process also involves much more ‘noise’ than in open source projects, as the barriers to entry the conversation are very low (e.g., you do not need to know how to code). In a sense, online citizen collaborations can be seen as even more ‘pure’ CBPP than open source, as they are more inclusive, decentralized and unstructured. Third, in the analysis of The Space, we open the black box of CBPP to discuss how it is organized in practice. Three general functions are introduced – operational, managerial and noise – which are all

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intertwined and together make up important bases for organizing generativity. The case shows that, in order to cope with the abundant information or ‘noise’, various managerial functions emerge to level up the distributed operational activities. These organizational functions are in this specific case arguably also more important for generativity than the rather non-user friendly technological infrastructure. Put differently, we suggest that it is not enough to analyze the characteristics of information technologies to study distributed coordination and the enhancement of intrinsic motivation and engagement of a large crowd per se, but we need to also put it into a social, political, juridical and ethical context. Our study also raises important questions for future research, to further advance our understanding of new organizational forms facilitated by new media and new societal values, and to critically examine and discuss their legitimacy and merits in an increasingly open society.

Bennett, W.L., Segerberg, A., & Walker, S. (2014). Organization in the crowd: peer production in large-scale networked protests. Information, Communication & Society, 17(2), 232-260. Burgess, J., & Green, J. (2013). YouTube: Online video and participatory culture. Cambridge, Malden: John Wiley & Sons. Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, Mass.: Harvard Business School Press. Cogburn, D. L., & Espinoza-Vasquez, F. K. (2011). From networked nominee to networked nation: Examining the impact of Web 2.0 and social media on political participation and civic engagement in the 2008 Obama campaign. Journal of Political Marketing, 10(1-2), 189-213.

Biographical notes: Dr Björn Remneland Wikhamn is an associate professor and lecturer in organizational theory and innovation management at the School of Business, Economics and Law, University of Gothenburg. His research interests include innovation practices and network organizing. Dr. Jan Ljungberg is Professor in informatics at the Department of Applied IT, University of Gothenburg. His research interests include, among others, innovation, social media, and open source. Dr. Bertil Rolandsson is an associate professor at the Department of Sociology and Work Science, University of Gothenburg. His research focuses on ICT and the organization of work, and issues such as governance and trust. Dr. Magnus Bergquist is professor in informatics at Halmstad University. His interests include among others, innovation, open source and governance.

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Bechmann, A., & Lomborg, S. (2013). Mapping actor roles in social media: Different perspectives on value creation in theories of user participation. New Media & Society, 15(5), 765-781.

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Nielsen, C.E. (2014). Coproduction or cohabitation: Are anonymous online comments on newspaper websites shaping news content? New Media & Society, 16(3), 470-487. O’Mahony, S., & Ferraro, F. (2007). The emergence of governance in an open source community. Academy of Management Journal, 50(5), 1079-1106. O’Mahony, S. (2003). Guarding the Commons: How Community Managed Software Projects Protect Their Work. Research Policy, 32(7), 1179-1198. Poor, N. (2014). Computer game modders’ motivations and sense of community: A mixed-methods approach. New Media & Society, 16(8), 1249-1267. Preece, J., Nonnecke, B., & Andrews, D. (2004). The top five reasons for lurking: improving community experiences for everyone. Computers in human behavior, 20(2), 201-223. Schneider, A., von Krogh, G., & Jäger, P. (2013). “What’s coming next?” Epistemic curiosity and lurking behavior in online communities. Computers in human behavior, 29(1), 293-303. Shirky, C. (2010). Cognitive surplus: Creativity and generosity in a connected age. New York: The Penguin Press.

Strauss, A., & Corbin, J. M. (1990). Basics of qualitative research: Grounded theory procedures and techniques. Thousand Oaks: Sage. Walther, J. B. (2002). Research ethics in Internet-enabled research: Human subjects issues and methodological myopia. Ethics and Information Technology, 4(3), 205-216. Weiss, M., & Gangadharan, G.R. (2010). Modeling the mashup ecosystem: structure and growth. R&D Management, 40(1), 40-49. West, J., & O’Mahony, S. (2008). The role of participation architecture in growing sponsored open source communities. Industry & Innovation, 15(2), 145-168. von Hippel, E., & von Krogh, G. (2003). Open Source Software and the “Private-Collective” Innovation Model: Issues for Organizational Science. Organizational Science, 14(2), 209-223. von Hippel, E., & von Krogh, G. (2006). Free Revealing and the Private-Collective Model for Innovation Incentives. R&D Management, 36(3), 295-306. Wright, S. (2012). Politics as usual? Revolution, normalization and a new agenda for online deliberation. New Media & Society, 14(2), 244-261.

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Zittrain, J. (2008). The Future of the Internet And How to Stop it. New Haven, CT: Yale University Press.

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Institutionalization of Research Administration in Brazil: Some Evidences Fernanda Stringassi de Oliveira1*, Maria Beatriz Machado Bonacelli2 Abstract: The arrangement of different research institutions and partners, including public funding agencies, is mandatory to address the current science, technology and innovation challenges. The access and maintenance of research collaboration networks require high level of competence and efficiency by the organizations. The multidisciplinary and multi-institutional research projects require management and administrative activities to achieve project goals in the expected time and cost, and the Research Administration (RA) professionals can be an important facilitator in the implementation of a governance strategy. The two case studies presented in this article illustrates the creation of RA institutional elements in Brazil that is evidence of the willingness to face the bureaucracy and practical consequences of the disconnection of science, technology and innovation policy actors. The searching for more efficiency and impacting results is directly related to the bureaucracy and transaction costs minimization and the maturity of the STI institutional and governance structure. Keywords: research administration; transaction costs; research funding. Submitted: January 29th, 2019 / Approved: June 14th, 2019

1. Introduction This paper will present the current context of Research Administration (RA) and some evidences of institutionalization of the area in Brazil, discussing the potential of these initiatives to improve the efficiency of Science, Technology and Innovation (STI) projects. While the global Research and Development (R&D) capacity doubled in the period from 2001 to 2016, the expansion of business R&D expenditure is facing a slowdown due to the recent weak economic performance, that scarce government budget and resources competition. National governments are, in the most of the cases, the main funder of public research and the tendency is that they continue to be, although business financial contribution and public-private partnerships remain necessary as alternative sources of funding in this cases. Moreover, the focus of science and technology agenda has shifted to societal and environmental challenges since early 2000s, and, boosted by the recent 2030 Agenda for Sustainable Development of the United Nations, reinforced the relevance of the public research, with business partners participation, to the progress of the socioeconomic development (OECD, 2016). Research projects must enable the combination of traditional and distant academic fields (e. g. Physics and Social Sciences) to face the coming challenges since “many of the most significant breakthroughs in science and technology have come at the interfaces between disciplines” (OECD, 2016, p. 137). Furthermore, new research fields are expected to emerge from the combination of current technologies such as cognitive sciences and information and communication technologies. The increasing connections among contemporary technologies and socioeconomic changes bring the necessity of continuing renovation of the Science and Technology Institutions as the relevant component of the Innovation System (IS). The arrangement of diffe-

rent research agencies and actors must the considered in the strategic research priorities to join and combine capacities (Albuquerque & Bonacelli, 2014; OECD, 2016). Chesbrough (2006, p. 3) called as “Open Innovation” the process of combine internal and external ideas to advance firms technology and internal and external paths to market, considering R&D as an open system. The author also affirms that “R&D organizations must identify, connect to, and leverage external knowledge sources as a core process in innovation”. Informal networks among researchers and institutions have always been present in the science and technology organization (OECD, 1992), but since the 1970s the “strategic technology partnering” (STP), which means, the collaborations among competitors, suppliers, customers, universities and others, has increased (Hagedoorn, 2002; Narula & Zanfei, 2005). There are also strategic and cost saving motives to the establishment of STPs such as cost and risk sharing, infrastructure sharing and knowledge acquisition about new markets (e. g. other regions or countries knowledge and regulatory specificities). After the 1980s there is an expressive acceleration in STP growing due to “increased complexity of scientific and technological development, higher uncertainty surrounding R&D, increasing costs of R&D projects, and shortened innovation cycles” (Hagedoorn, 2002). The process of institutional reorganization of R&D is impacted by globalization, budget restrictions, limited resources and the STI complex environment. The access and maintenance of research collaboration networks require high level of competence and efficiency by the institutions and organizations in several areas such as managerial and organizational besides technical and scientific (Salles-Filho, Bonacelli, & Mello, 2000). Research projects executed in collaboration, mainly with public or private funding, usually follow specific management and administration processes, different from internal

1) Embrapa Agricultural Informatics, Campinas-SP, Brazil, and Scientific and Technological Policy Department, Institute of Geosciences, University of Campinas – UNICAMP, Campinas-SP, Brazil. 2) Scientific and Technological Policy Department, Institute of Geosciences, University of Campinas – UNICAMP, Campinas, SP, Brazil. *Corresponding author: E-mail: fernanda.oliveira@embrapa.br

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operational processes of the respective research institutions. The additional knowledge required to prepare project proposals and manage awarded research projects inhibits the prospection of funding opportunities by researchers (Cunningham, O’Reilly, O’Kane, & Mangematin, 2014). Salles-Filho and Bonacelli (2010) highlighted four empirical elements that impact the effectiveness of research organizations: funding strategy and leverage of resources; work sharing, including creation and participation in STI networks; knowledge appropriation and technology transfer; and attraction and maintenance of human resources. The conducted study concluded that Brazilian institutions are forced to search other funding sources, but, simultaneously, the culture of R&D management is very weak due to an absence of internalized routines related to partnering, negotiation, intellectual property management and impacting evaluation in the most of public research organizations. A comparative study conducted by Bin et al. (2013) in four public research institutions from several countries including Brazil, concluded that even though public research institutions have been reorganizing their innovation processes, there is still a separation among R&D and partnership structures and policies. They also noted that the studied institutions are strongly engaged in partnerships but few of these initiatives are related to extramural research funding. A study about “What does Brazilian researcher think about bureaucracy?”, published by National Council of Foundations to Support Federal Institutes of Higher Education and Scientific and Technological Research (CONFIES) pointed that a researcher spends, in average, 33% of his time to solve red tape issues related to complexity and excessive regulation, management, and procurement difficulties. These obstacles increase national research cost and decrease Brazilian competitiveness internationally (CONFIES, MCTIC, & SEBRAE, 2017; Monteiro, 2017). In general, these intrinsic challenges of STI environment are enlarged by the Brazilian context due to historical aspects of the socioeconomic development and delayed scientific and technical progress (De Negri, Zucoloto, Squeff, & Rauen, 2016).

Such specificities request support and coordination structure to deal with researchers autonomy, team conflicts and institutions and partners relationship in knowledge production and appropriation (Bin & Salles-filho, 2008). In general, the multidisciplinary and multiinstitutional projects require management and administrative activities to be able to achieve project goals in the expected time and cost. Transaction Costs Economy (TCE) is an appropriate framework for the analysis of the STI processes as also strategic decisions regarding governance structures related to integration, contracting and collaboration in R&D and Technology Transfer (TT) activities (Bin & Salles-filho, 2008) and will be used as theoretical approach to support this study. The paper objective is to discuss the impact of RA activities to minimize transaction costs in research institutions and their research projects and also the potential impact of the development and institutionalization of RA for STI in Brazil. The justification of this study is to contribute and stimulate knowledge building about Research Administration area and its impacts in Brazil. Initially, it is presented a literature review about RA history since the postwar period until today, and the role of professional associations in the empowerment and recognition of the research administrator professional abroad. Next, the literature review also contemplates the identification of some events in Brazilian history that contributed to the establishment of a favorable environment for RA development such as the creation of public funding agencies for science and technology, and also brings an overview of some Brazilian STI challenges regarding regulations, red tape, and its inexpressive innovative results. In the sequence, the argumentation will be based in two case studies that illustrate recent events that are significant steps in the construction of the RA history in Brazil: the “Training Program for Implementation of an Institutional Support Office for Researchers (EAIP)” of the São Paulo Research Foundation (FAPESP), and the creation of the Brazilian Research Administration and Management Association (BRAMA).

2. Research Administration Historical Review and Current Context The new structure created to coordinate research activities and sustain the research excellence demanded by the new conjecture was called Research Administration (RA). The RA professional is the mediator for different parties in the research process (institution, researcher and sponsor) and responsible for three basic functions performed along research lifecycle, from pre-award phase (before grants or scholarship approval by funding agency) until post-award phase, and also crosswise the research institution and partners: overall administration of research institutions, provision of services for researchers, and support sponsors in goals achievement and compliance (Beasley, 2006). Most of the time, administrate a research project requires knowledge that the principal investigator doesn’t have, which results in a waste of time and effort that is considered a burden to the scientific professionals already overwhelmed with technical activities. STI planning and management processes have specificities: indeterminacy due to R&D and innovation activities uncertainty and high unpredictability; profile of the professionals involved and organizational culture shared by them; and multi-institutionality.

2.1. History of Research Administration The post-World War II “Big Science era” consolidated the role of the State in the research funding. The report “Science the Endless Frontier” officialized the importance of the science and technology for the economic development and proposed a new role and mechanism to the government to maintain incentives to research in industry and universities (Bush, 1945). As one of several outputs of Vannevar Bush’s report, in 1950 the US government created the National Science Funding (NSF), agency focused in basic research projects. In a short time, with the rapid advances of the science and its consequent political success, other science agencies were created or continued, establishing the American network of federal basic research agencies, a large and pluralistic system that is still active (Beasley, 2006; Bonvillian, 2014). All these achievements were the result of the succeeded experience of Vannevar Bush in the direction of the Office of Science Research and Development (OSRD) in the National Defense Research Council (NDRC) where he was responsible for the creation of a central structure to coordinate and support the national scientific research program (Beasley, 2006).

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Arrow (1972) explained in detail the uncertainty and consequent risk involved in the invention process that is the reason behind the importance of the government participation in the research funding. The basic research generates informational input to other research activities and it is unlikely to be rewarded or have commercial value, and, therefore, is usually conducted outside the industrial system. Driven by military needs and the legitimacy of science as an essential key to social and economic development, a new political economy of science was put in place investing in large-scale projects, also called “Big Science”. Such term was firstly introduced in the article “Impact of Large-Scale Science on the United States”, in which Weinberg (1961) also highlighted a relevant effect of large-scale support of science, that is the huge amount of public money that must be wisely administrated and spent. The author recognized at that time the importance of nonscientific roles such as journalism, publicity, finance and administrative people in the staff of these big projects. He expressed concern with the confirmation that large-scale R&D projects were not only happening in industry or laboratories, but also in universities, and consequent burden of science administration to college professors.

and procurement process, financial and reporting requirements of the sponsors and research program coordination, that brought the necessity of skilled people and the establishment of research administrative systems. Seizing the opportunity, the research institutions and universities faced a race to attract research, build facilities and ensure contracts and grants maintenance (Beasley, 2006).

Big Science projects have “led to a large-scale development of contractual relations between producers and a buyer of invention and research” and brought a different economic relation: payment is independent of product and assures efficiency would be a challenge (Arrow, 1972, p. 624). Due to the need to administrate such big research programs, OSRD needed to have people allocated in the management of nonresearch requirements (e. g. contracting, purchasing, accounting, and reporting). At that occasion, the research scientists were trained to be research administrators.

2.2. Research Administration Associations Professional associations contribute to the sharing, definition and promulgation of values, beliefs and norms since they are key arenas for networking and creation of a professional subculture (Galaskiewicz, 1985). Based in Wright (1988), having in mind the concepts regarding “policy community” and “policy network” and the goal of this paper, it is important to emphasize that the RA associations are not only a professional network but also an important policy community in the STI policy network.

Before 1945, the low amount of financial support didn’t create a need for research administration at that moment. But in the postwar period, the science in the US was supported by federal government agencies, universities, industrial research laboratories and private foundations through grants to institutions and individuals (e. g. Rockefeller Foundation). The relevant flow of money required more caring regarding institutional research policy, projects application

The review of literature performed in 2018 identified 22 active associations distributed in all continents of the globe (see Table 1). As already described, the North American associations NCURA and SRAi were the pioneers. Formally created in 2015, the Brazilian association is one of the most recent (BRAMA, 2018a). There are some associations that represent a network of regional or global associations, such as International Network of Research Management Societies (INORMS).

Then, in short time, organizations to discuss research administration practices and share knowledge were created. The first organization, The National Conference on the Advancement of Research (NCAR) was created in 1947; NCAR participants were the pioneers of research administration. In the 1959 annual meeting the idea of a new association specific for university research administrators was conceived and then, National Council of University Research Administrators (NCURA) were created. In 1967, the Society of Research Administrators International (SRAi) was founded after a meeting that occurred at NCAR in 1966. Followed by the creation of the Canadian Association of University Research Administrators (CAURA) in 70’s, together with NCURA and SRAi these were the only associations until the beginning of the 1990s (Beasley, 2006).

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Table 1. List of Research Administration and Management Associations.

*Formerly called EUPMAN, the association was renamed in 2018 (EUPMAN, 2018). Source: Elaborated by the author based in data collected from INORMS members page, associations websites or related paper (ARMA, 2018; ARMS, 2018; BRAMA, 2018a; CARA, 2018; CAURA, 2018; DARMA, 2018; EARIMA, 2018; EARMA, 2018; EUPMAN, 2018; Finn-ARMA, 2018; ICEARMA, 2018; INORMS, 2018; NARMA, 2018; NCURA, 2018; RMAN-J, 2017; SARIMA, 2018; SRAi, 2018; Streete, Henry, Ivey, & Oliver, 2013; URIMA, 2018; WARIMA, 2018).

2.3. Research Administration Professional Although the amount of R&D expenditures and priorities are always changing due to political context, the basic RA core of knowledge is constant (Kulakowski & Chronister, 2008). The RA activities contemplates four areas, according to Certified Research Administration Body of Knowledge (RACC, 2018): project development and administration (collection and dissemination of information, proposal development, administration of awards, ethics and professionalism, intellectual property); legal requirements and sponsor interface (regulation, compliance); financial management (accounting, costs, financial reporting, audit); and general management (facility management, contracts and purchasing, records management, human resource management). Since RA activities are varied and added by STI specificities, the research administrators have diverse origin, formation, work area (e. g. pre-award, compliance, technology transfer, finance) and responsibility level (e.g. vice president, contract negotiator, department secretariat) (Landen & McCallister, 2008). A research project called “Research Administration as a Profession” (RAAAP) was coordinated by Kerridge and Scott (2018)and involved several associations in the constitution of an advisory board to prepare and run the most adequate questionnaire to map the profile of the RA professional. The research was performed in 2016 and collected 2691 responses of research administrators from 64 countries. The study participants were members of associations and mostly females acting as RA manager or leader. US had the highest quantity of respondents with over 20 years of experience, while the rest of the world (participants of a group of less expressive RA associations, that includes Brazil) has the highest proportion of respondents with less than 5 years of experience. Additionally, there was a lower quantity of full-time RA in the rest of the world compared to US, Canada, Europe, Australia and New Zealand, which means that in these locations

the RA activities were usually an additional duty in another function. Finally, the result of the study confirmed the current global coverage of the profession although has also mentioned the difference of maturity among regions. 2.4. History of Research Funding in Brazil Brazil did not start late in the establishment of some important agencies for science and technology compared to the US, even with a totally diverse socioeconomic environment, pushed by the Import Substitution Industrialization (ISI) and consequent demand to technology and know-how. The Brazilian Society for the Advancement of Science (SBPC), created in 1948, was the first scientific association and achieved 352 members only in the first year. Based in promise of “science as production force” in a context of industrial development and nationalist ideology, the science policy is institutionalized with the creation of Brazilian National Research Council (CNPq) and Coordination for Improvement of Higher Education Personnel (CAPES) in 1951. These achievements enabled the development of career in science, providing scholarships and grants to full-time researchers and students. Unfortunately, in the followed decade the budget of such funding agencies decreased and with the increase of the foreign capital investment, the relation of science and industry has become much more distant. In late 60’s and 70’s occurred an additional tentative to strengthen technological and scientific development with the creation of governmental fund for science and technology development and Public Research Institutions such as Brazilian Agricultural Research Corporation (EMBRAPA) and Brazilian Aeronautical Company (EMBRAER) (Morel, 1979; J. J. De Oliveira, 2016; SBPC, 2016). Since then the fund for science and technology development never have achieved the expected budget and economic instabilities have just been aggravated which led to impede any constancy to the STI

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budget. But even with contingencies and low performance and efficiency of the fund, in 2000 and followed years, the finance amount of such fund have increased significantly (50% in 2001 and 30% in 2002) (Bastos, 2003). Additionally, a legal framework of tax incentive to R&D investment by companies was created since 90’s as detailed by Pacheco (Pacheco, 2011). Moreover, Brazilian agenda prioritized innovative actions since the 2000’s when new legal instruments such as Innovation Law (10.973/2004) was established (Pacheco, Bonacelli, & Foss, 2017). Although the questionable efficiency of such initiatives discussed by the cited authors, the finance amount and partnerships established for R&D and innovation projects have increased in Brazil and reinforced the necessity of adequate administration of the research projects and their resources by the STI institutions. Indicators of the Science, Technology, Innovation and Communication Ministry (MCTIC) presented an amount of more than R$12 billion in 2000 and more than R$76 billion in 2015 in R&D expenditures (MCTIC, 2018). 2.5. Current Challenges of R&D and Innovation in Brazil The 2014 Survey of Innovation (Pintec) performed by the Brazilian Institute of Geography and Statistics (IBGE) indicated maintenance of the innovation rate (IBGE, 2016). The survey presented the following factors as the main obstacles for innovation by companies: cost (86% of the industries), risks (82,1%) and scarce funding sources for innovative activities (68,8%). The tax incentives to stimulate R&D investment by companies have limited coverage because of several causes such as unfamiliarity with these incentives and inexistence of innovation strategy by Brazilian companies due to low pressure of local market for differentiation by disruptive innovation (Carvalho, 2010). Pintec also indicated increase in the percentage of product innovations resulted from partnerships with other companies or research institutes from 2011 to 2014, although the percentage of partnerships established by industries had a low decrease (15,9% in 2011 and 14,3% in 2014). Currently, it is generally expected that public research sponsored by funding agencies achieves socioeconomic impact in addition to scientific impact, therefore technology transfer success is also an important activity to generate services, product and process innovation (Cunningham et al., 2014). The most of the governmental initiatives offer financial resources and tax incentive without favorable socioeconomic conditions and without a continuous strategy to build and retain innovative capacity including knowledge, infrastructure and skilled researchers (Pacheco et al., 2017). The market conditions are the main reason why the companies do not innovate, according to Pintec. Although no significative progress in R&D and innovation indicators in the last years, Brazil has had relevant advancements in the last decades that built an important STI infrastructure and institutional environment that need to be maintained and continually evolved. Most of them are dependent on public or private funding. A survey about the Brazilian Science and Technology infrastructure coordinated by De Negri and Squeff (2014) identified 1760 infrastructures including laboratories, monitoring stations, observatories, and pilot plants, and more than 23% of them initiated their activities after 90’s and 56% after 2000’s. About 7000 researchers work in the mapped insfrastructure and

5814 people in the technical and administrative support. The authors also mentioned the importance of public funding collaboration to the implementation of such infrastructures. Another indicator of Brazilian scientific results is the Scimago Journal & Country Rank that shows Brazil in 14th position in the number of academic publications and 24th position in H-index rate in 2017 (SJR, 2018). It is important to notice that at the same time that the lead researcher has prestige when his project is granted, he also incorporates several additional duties that sometimes he is not prepared or motivated to do, such as team supervision, schedule management, technical documentation and progress reporting, finance control, contracts management, and others, while have to deal with dual sets of control mechanisms and bureaucracies: of his own institution and of the funding agency (Cunningham et al., 2014; F. S. de Oliveira, Bambini, Spatti, & Ito, 2017). The previously mentioned survey about bureaucracy in research activities received 301 responses from Brazilian researchers (CONFIES et al., 2017). According to it, 69% of the participants answered that red tape related to submit and manage STI projects increased in the last years, 85% answered that research project management activities are complex and demand much effort and time, 49% answered that project management represents 30% to 40% of the total time spent, and 39% answered that don’t know the last changes in STI laws and regulations. Based in the several facts described before, we can summarize that public funding is mandatory to the continuity of the advancement of science in Brazil, and that it is very important that research institutions and companies know how to have access to funding opportunities and tax incentives and how to manage adequately the resources received. STP and intellectual property management are also relevant to develop and disseminate impacting discoveries or innovation. We can also assume that effort in administration and management of research projects and infrastructure is obviously mandatory, and it is already done in Brazilian institutions in a higher or low efficiency according to their capacity. The RA can have an important role to support lead researchers and research institutions to deal with the previous mentioned challenges of STI in Brazil.

3. Method This is a descriptive and qualitative research conducted applying case study methodology (Yin, 2003). The main objective of this paper is to present two study cases that illustrate relevant initiatives in RA in Brazil: the creation of the Brazilian Research Administration and Management Association (BRAMA), and the preparation and conduction of a specialized training program by one of the most important public funding agencies in Brazil, the “Training Program for Implementation of an Institutional Support Office for Researchers (EAIP)” of the São Paulo Research Foundation (FAPESP). The secondary objectives of this paper are: (i) discuss the importance of the institutions to the performance of the science and technology policies based on transaction costs economy approach, (ii) discuss the impact of RA activities to minimize transaction costs in research institutions and (iii) discuss the relevance of the evolvement of Research Administration to Brazil.

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The proposed discussions were conducted using as main sources of evidence academic literature, institutional websites and data provided by the studied organizations. The organizations provided voluntarily quantitative data about their operation that were important to illustrate the dimension of the cases examined. Moreover, the primary author of this paper is associated member and volunteer of working group at BRAMA and had authorized access to some internal documents that enriched the analysis. The theoretical approach of this study is based in the transaction costs economy. According to Furuthbotn and Richter (1991, p. 3 apud Farina, Azevedo, & Saes, 1997, p. 22), costs are not directly related to production activities, they also emerge from the problems regarding relationship and coordination in any governance structure. North (1991, p. 97 apud Farina et al., 1997) define that “institutions are standards built by human being that structure the social, economical and political interaction. They consist of informal (e. g. traditions, conduct code) and formal standards (e.g. laws)”. The institutionalization of routines and a strong identity are important to the capacity building of the organizations in the network. Trust and reputation are essential to the relationships maintenance and durability, minimizing behavioral uncertainty and consequent opportunism. Trust level is directly related to providing a favorable institutional environment and governance structure to create knowledge sharing routines and minimize transaction costs (Azevedo, 2000; Dyer & Nobeoka, 2000; Dyer & Singh, 1998; Goussevskaia, Milagres, Luiza, Araújo, & Tello, 2004; Williamson, 1985).

4. Results 4.1. Institutional Support Office for Researchers Training Program of the São Paulo Research Foundation (FAPESP) São Paulo Research Foundation (FAPESP) is one of the main public funding agencies in Brazil. Only in 2017, the agency provided R$ 429,7 million for scholarships and R$ 316,4 million for research

projects grants. The management of this amount of budget requires a meticulous process to enable the monitor and control of more than 10 thousand projects and scholarships (FAPESP, 2018b). In response to the demands of the scientific community to minimize difficulties of the pre-award and post-award processes such as project submission and accountability, FAPESP created a “Training Program for Implementation of an Institutional Support Office for Researchers (EAIP)” in 2010 (FAPESP, 2018a). The 27-hour training program has the duration of four days and attends about six participants in each class. The participants return to their institutions with the mission of implement or reorganize local processes to attend the best practices learned in the course. Additionally, they are eligible to use a priority attendance channel to clarify and solve problems and receive news about updates and improvements in the funding agency processes and requirements. After one year, the trained institution is visited by EAIP program managers that get feedback and give support in additional difficulties (FAPESP, 2018a). In the Figure 1 it is possible to perceive the extent of EAIP program. According to information provided by FAPESP, until 2016 the program trained institutions that voluntarily contacted the foundation, but after this date, they had the initiative of contacting research institutions of São Paulo state that were not trained yet to explain the training benefits proven by the last years of experience. In the period of 2010 to 2017, FAPESP trained 538 people originated of 160 units (faculties or departments) from 43 institutions, with an average of 67 people trained per year. In total, the program performed 89 classes that totalized 2403 hours of classes in the period analyzed. The EAIP program managers visited 96 institutions after about one year of the training and identified 62 active institutional support offices according to the EAIP program website accessed in September 2018 (FAPESP, 2018a).

Figure 1. Numbers about EAIP program. Source: Data provided by FAPESP in 24th May 2018. Charts elaborated by the author with www.visme.co.

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The content of the EAIP program course consists of: institutional information about the organization structure and main processes of the funding agency; detailed information about the types of grants, agency standards and regulations; detailed information about administrative, finance, audit and importation processes; detailed information about scientific management and research projects evaluation process; and main procedures related to the information systems used to submit proposals and monitor expenses and accountability. These subjects are directly related to operational pre and post-award processes. If we assume that the most of the participants of the training classes are working directly with the research administration of research projects, we have already identified a network of about 500 research administrators and so many experiences to be shared. Pondering that 160 units from 43 institutions were trained until 2017 and that 1674 state research institutions are eligible to submit proposals to FAPESP (according to data collected from FAPESP Support System (SAGE) in September 2018), there are several institutions not covered by the program yet. Although the major research institutions of São Paulo state were already trained, there is space to find more research administrators and opportunities for improvement in more locations. Marques (2014) described some successful results achieved after the implementation of the Institutional Support Office for Researchers (EAIP) in trained institutions. The Albert Einstein Jewish Institute for Education and Research (IIEP-HIAE), reported in 2014 a 61% increase in the acceptance of projects submitted to funding agencies after two years of the support office creation. Positive outcomes were also described from Support Offices of the University of Campinas (UNICAMP) and São Paulo State University (UNESP). 4.2. Brazilian Research Administration and Management Association (BRAMA) BRAMA1 was founded in July 2013 by a group of research administrators and research managers during an Annual Meeting of the Brazilian Society for Science Progress (SBPC), held in Federal University of Pernambuco (UFPE). Due to bureaucratic delays, the regiment register was done only in June 2015. The association is sister society of SRAi and have been supported by other associations from Australia, United Kingdom, Denmark and other countries (BRAMA, 2018b). The objectives of BRAMA are: promote development and recognition of the research manager and research administrator professionals; encourage studies and researches about scientific research management and administration; disseminate the importance of research management and administration profession; promote the exchange of knowledge and experience through meetings and events locally, nationally and internationally among members, institutions and associations; promote trainings and consulting services; advise private or public agencies (BRAMA, 2018a).

The association is in the moment of bringing their existence to the knowledge of research institutions, research administrators, research managers, and public agencies. The association is still building processes to operationalize core activities to be able to give the next step to promote paid services to guarantee their sustainability. Nevertheless, BRAMA is making efforts to be active and bringing benefits to their associated members. The main activities performed by the association since its creation are: • Support of event about Scientific Research Management in Brazil, held in São Paulo, Albert Einstein Jewish Hospital, 10th May 2016. • Participation of representatives and associated members in relevant international events in the area: SRAi Annual Meeting and International Network of Research Management Societies (INORMS) since 2016. • Participation of representatives and associated members in regional and national events, such as Research Pro-Rector Meetings. • Submission of a proposal to co-host the 2020 INORMS congress in March 2017. The winning proposal was from the Japanese association Research Managers and Administrators Network Japan (RMAN-J) with the collaboration of the SRAi. The event is planned to happen in May 2020 and will be held in Hiroshima, Japan. • Publicity initiatives since 2017: elaboration of a press-release document and organization of meetings with several federal and state public funding agencies. • Creation and maintenance of a new website and a facebook page in 2017. • The planning of the 1st BRAMA Meeting, date and place to be defined. • Creation of the BRAMA online training program in 2018 for associated members. The program started in March 2018 and happenned all year long, totalizing 18 classes. The bi-weekly classes were regarding relevant topics of research administration such as Brazilian law and regulations, public funding agencies regulations, scientific integrity, project management, finance management, and accountability. Even with BRAMA director committee endeavors, the quantity of associated members in April 2018 is still low, 33 participants, as presented in Figure 2. Most of them are female and originated from private and public universities of the Brazilian Southeast region.

(1) The first president of the association, during the period of 2013-2016, was Carlos Graeff Teixeira, current Research Director at Pontifícia Universidade Católica do Rio Grande do Sul (PUCRS). Since 2017 the association is chaired by Aline Pacífico Rodrigues, current Research Support Office Manager at IIEP-HIAE.

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Figure 2. Some numbers about BRAMA in April 2018. Source: Data provided by BRAMA in 23rd Abril 2018. Charts elaborated by the author with www.visme.co.

5. Discussion Based in Williamson (1985) and Farina, Azevedo and Saes (1997), and complemented by RA processes identified during the literature review, the transactional costs involved in the R&D lifecycle are the following: partnership arrangements and negotiation, projects proposal preparation and submission, contract preparation and signing (ex-ante transaction costs); and project management and monitoring, project finance and assets administration, R&D activities execution and follow-up, project accountability, technology transfer activities and publication of the results (ex-post transaction costs). The unfamiliarity of the Brazilian institutions and researchers with the processes required by public agencies to receive grants or tax incentives, and the unfamiliarity with laws and regulations regarding STP establishment and related risks and uncertainty often inhibit the involved actors in doing R&D and innovation projects collaboratively. The novelty factor of research projects difficult the trust building since rarely is possible to maintain relations with only the same partners and suppliers according to research area and type of project. These conditions are responsible for the creation of additional controls by institutions to deal with the limited rationalism, complexity, uncertainty, and opportunism, which impacts directly in the increase of transaction costs related. The research administrator(s) is the person or group prepared to know the knowledge sharing routines including the management of partnerships, access to funding and tax incentive opportunities and the support to the lead researcher in the general administration and management of research projects. This support contributes to increase the knowledge about partners processes and public laws which

contributes to the trust building and, consequently, minimize law uncertainty and transaction costs. The process of institutionalization of RA area in Brazil have started and are relevant to the building of good practices to improve STI efficiency and also to the valorization and recognition of the RA profession. FAPESP EAIP training program is an important initiative of trust building and minimization of transaction costs in the trained institutions. The program has already a good coverage of the major researcher institutions of SĂŁo Paulo state and potential to achieve a higher number of professionals and institutions. It would be very helpful to have similar initiatives in other agencies and states. Currentlly BRAMA does not have an expressive number of participants yet. It was already expected that the origin of them was concentrated in the Southeast region due to the number of institutions and researchers and impact of FAPESP funding opportunities in this location, since it is more expressive when compared with other state funding agencies. It is possible to infer that universities have more awareness about RA or are more organized in relation to administrating project grants and scholarships because of the predominance of members of universities in the EAIP training program and also as BRAMA member. Even with a small number of members, it is interesting to notice that there are BRAMA members from hospitals probably because of the significant volume of research projects in the health area financed by public agencies, and also the higher complexity of management of this kind of projects that have more strict regulations due to risks related to experiences with animals and human patients.

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The association has already begun an online training program to share good practices, knowledge, and experiences that can support initiatives to implement or review processes to minimize transaction costs in the institutions of the BRAMA members.

Federal do ABC. Retrieved from https://www.researchgate.net/profile/ Marko_Monteiro/publication/262914404_Novos_Horizontes_em_ Poltica_Cientfica_e_Tecnolgica/links/00463539333d91616e000000. pdf#page=15

BRAMA creation is very recent, but it is the beginning of the consolidation of the RA policy community. The scientists have been important participants of the policy arena, but we have described in this paper several difficulties regarding Brazilian laws, regulations, contracting, administrative and finance processes which it is not usually their skills. Research administrators hands-on experience can be very helpful in the STI policy analysis, for instance, as pressure force in the review of policies strategies and in the definition of new alternatives to simplify processes and minimize bureaucracy.

ARMA. (2018). Association of Research Managers and Administrators (ARMA) Website. Retrieved June 10, 2018, from https://www. arma.ac.uk/about

The findings showed that important institutional elements in Science and Technology were created in Brazil since the postwar period, some of them with an expected delay in comparison with the US due to national socioeconomic history background. Although institutionalization of science and technology policy and several initiatives to boost R&D and innovation in Brazil, there is a lack of governance initiatives in favor of convergence and alignment among involved actors, policies and strategies proposed. Red tape is not a national issue, but it is aggravated by the Brazilian context of disconnection between these institutional elements, which open space to opportunism and legal uncertainty. The development of RA in Brazil is being pushed by the desire of moving national STI governance to a new level. The searching for more efficiency and impacting results is directly related to the bureaucracy and transaction costs minimization and the maturity of the STI institutional and governance structure. The researchers are usually showing, in several spheres, their discontentment in doing science in Brazil, and, it is improbable that a demotivated team will move the country to reach better STI indicators. The recognition of RA professionals permits to include important hands-on skilled actors in these discussions that pass through the scientific and technological field. Next studies could study how RA organizational structures and practices have being implemented in Brazilian STI institutions, understand their specificities compared to developed countries and also, understand the challenges and gains of the recognition of RA profession to the national STI policy arena.

6. Acknowledgments We wish to thank FAPESP and BRAMA for providing the data used in this paper.

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Literature Review of the Measurement in the Innovation Management Karin Melendez1, Abraham Dávila2, Andrés Melgar2 Abstract: Organizations create innovation strategies to improve their productivity and the competitive advantage. In this sense, innovation management facilitates the realization of innovation. It is known that measurement is important in the management processes; however, there is no classification of the contributions in these subjects. Therefore, in this study we identify publications that involve measurement and analysis in the management of innovation. Our study used a systematic mapping of the literature and it shows that in recent years there has been an increase in research on measurement, however, there are few studies and only for certain industrial sectors, sizes of companies and countries. Hence, there is a little worked research space which can be more developed. Keywords: Innovation management; measurement of innovation management; innovation, measurement; management; metrics, impact; systematic mapping; mapping; review. Submitted: July 25th, 2018 / Approved: June 22nd, 2019

Introduction The business environment is dynamic, accordingly organizations try to improve their performance and become more and more competitive (Taghizadeh, Jayaraman, Ismail, & Rahman, 2014). In this context, innovation, as a way to obtain a new or significantly improved product (goods or services) (OECD, 2005), is a promoter of economic growth, competitiveness and prosperity of organizations (Sillanpää & Junnonen, 2012). Some authors mention that innovations provide a competitive advantage to companies ((Taghizadeh et al., 2014); (Dereli, 2015); (Hervas & Dalmau, 2006)). The innovation management is a mechanism that allows the innovation process to be formalized, facilitating companies to generate new ideas, practices and products in a systematic way (Pinheiro & Tigre, 2015), producing a positive effect of innovation in the performance of small, medium and large companies (Ndubisi, Capel, & Ndubisi, 2015). Therefore, innovation management is strategic for the survival of organizations (Ortt & Van der Duin, 2008). The management of innovation processes involve activities, tools (Bajenescu, 2017) and in general, respond to a structure that relates resources, skills, knowledge, technology, management and business (Murcia Rivera, 2012). If a company intends to be successful in achieving competitive advantage by developing innovation, it must have an effective implementation of innovation management, for which it needs to define strategies and build an administrative structure to support its innovations (Dereli, 2015). The companies can be successful or not when applying their strategies, so it is important to define procedures to measure and analyze the innovation management and identify the improvements needed to contribute to achieving the desired performance (Taghizadeh et al., 2014). However, although some related studies on innovation management are known, some authors agree that there is little research on this topic ((Mir, Casadesús, & Petnji, 2016); (Taghizadeh

et al., 2014)). Following the affirmation of the authors, the present research has as hypothesis the existence of a small population of studies on the measurement of innovation management. The objective of this study is to determine the contributions that researchers have made on the measurement of innovation management in the organizations. For which, an analysis has been carried out using the technique of systematic mapping. Section 2 addresses the systematic mapping process carried out. Section 3 describes the results obtained by answering the research questions. Section 4 presents the conclusions and future work.

Design and execution of the research The study was carried out using the methodology of literature systematic mapping of the Petersen (Petersen, Feldt, Mujtaba, & Mattsson, 2008) and relevant aspects of the methodology of literature systematic review proposed by Kitchenham (Kitchenham et al., 2009). In this section, the research questions, the collection procedure, selection of studies, data extraction and classification of the studies are described

Definition of the research question To achieve the objective of the study, it was defined three research questions (RQ): RQ 1: How have publications on innovation management measurement evolved? This question is to determine how the number of publications related to the measurement of innovation management has varied and what types of research have been used for these studies. RQ 2: What is the contribution of the set of publications in relation to the measurement of innovation management? It is expected to find some model, framework, methodology or analysis that refers to some form of measurement of innovation management. RQ 3: What kind of industrial sectors and sizes of companies are involved in the set of publications? The objective is to identify the industrial sectors and the size of the companies with the most research done.

1) Escuela de Posgrado, Pontificia Universidad Católica del Perú, Lima, Perú, 2) Departamento de Ingeniería, Pontificia Universidad Católica del Perú, Lima, Perú. *Corresponding author: kmelendez@pucp.edu.pe

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Collection of studies The elaboration of the search string followed the PICO strategy (Population, Intervention, Comparison, Results) presented by Santos (Santos, Pimenta, & Nobre, 2007). To achieve a greater breadth of search, we decided to consider two elements of the PICO: (1) Population: set of elements that are subject to revision, for the mapping, the keyword used was “innovation management”; (2) Results: information that is expected from the research, for the mapping, it is all information that involves a measurement exercise, therefore, the keywords considered were: (“measurement” OR “value” OR “measure” OR “impact” OR “metrics”). The search string obtained was (“innovation management”) AND (“measurement” OR “value” OR “measure” OR “impact” OR “metrics”), and it was executed in the libraries: EbscoHost, Emerald, Proquest, IEEExplore, ScienceDirect, and WebOfScience.

to 0.5, if the article partially complies, equal to 0, if the study does not meet the criteria. The articles had a total score greater than three, consequently, all the studies obtained from the second stage were considered as primary for the present research. The execution of the search string returned 2080 studies. In the execution of the first stage 1072 studies were obtained, and in the second stage, 17 primary studies were achieved. The studies obtained scores higher than three in the quality assessment, so they were ratified at the end of the third stage.

Extraction, classification and initial results The relevant data of each primary study were recorded in a form and then classified. The types of data extracted were: the year, the size of the company, the industrial sector, and the country (see Table 1). These types of data allowed to make some classifications and consolidate the results for a better analysis.

Selection of studies The selection of the primary studies was carried out following a threestage process. In the stages, inclusion criteria (IC), exclusion (EC) and validation of the studies were applied. In the first stage, the exclusion criteria (EC) were defined and applied in the following order: (EC1): studies published in journals indexed or presented at research conferences; (EC2): studies published from 2007 onwards, considering that the UNE 166002 is a certifiable standard and its first edition was published in 2006 (CTN 166 - Actividades de investigación, 2014); (EC3): studies that are in languages other than English, Portuguese or Spanish; and (EC4): duplicate studies. The second stage carried out applying inclusion criteria (IC) in the following order: (IC1): studies whose titles and keywords are related to research questions are accepted; and (IC2): studies are included whose summaries; introduction or conclusions are related to the objective of the present study. The third stage consisted of the validation of the primary studies to answer the research questions. The quality assessment criteria (QAC) were applied in the following order: (QAC1): does the study describe topics related to research questions?; (QAC2): do the findings described in the study help answer the research questions?; (QAC3): does the study contain a clear statement of the objectives of the research?; (QAC4): does the study use an adequate research methodology?; (QAC5): do the conclusions address the objectives of the research?; (QAC6): was the study subjected to a rigorous review process? According to the authors (Kitchenham, Mendes, & Travassos, 2007) and (Sulayman & Mendes, 2009) recommend assigning scores in the evaluation of QAC: equal to 1, if the article meets the criteria, equal

Some studies mentioned having done their research in company sizes such as: small and medium enterprises (SME), small, medium and large companies, but there were other studies that did not specify the size (Table 1). The industrial sectors found have been very varied, so we prefer not to make any classification and present them directly in Table 1. In the case of countries, it was also very varied; however, if we classify them based on continents, we observe that the theme developed is not alien to the interests in research and development. The countries of the primary studies of Table 1 belong to the group of countries that stand out in research and development in each continent according to the world bank (UNESCO, 2018).

Answer of the research questions In this section, we present the answers to the RQ based on an analysis from the data extracted from the primary studies. RQ 1: How the publications on measurement of innovation management have evolved? If we look at Table 1 we see that there is a lot of research related to innovation management, however, on the subject related to the measurement only 17 articles were found. A striking fact is that the largest number of articles were submitted between 2014 and 2017, coinciding with the appearance of the second version of the UNE 166002 standard (CTN 166 - Actividades de investigación, 2014), which could explain the increase in the number of articles. It is important to mention that the first non-experimental version of the UNE 166002 standard on requirements for a management system for research, development and innovation (R+D+i) was published in 2006 (CTN 166 - Actividades de investigación, 2014).

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J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

Table 1. Principal information of primary articles. Reference

Company size

Industrial sector

Country

(Wong & Chin, 2007)

Not precise

Manufacture

Hong Kong

(Tien, Chiu, Chung, & Tsai, 2007) (Arzola & Mejías, 2007) (Singh & Markeset, 2008)

Not precise Not precise Not precise

High technology Services Gas and oil

China Not precise Norway

(Salazar, Arzola, Pérez, Gerencia, & Zulia, 2010)

Small and medium

No precise sector

Venezuela

(Sánchez, Lago, Ferràs, & Ribera, 2011)

Not precise

High technology electronics

Spain, Portugal

(Cohn, 2013)

Small, medium and large

Not precise

Canada

(Taghizadeh et al., 2014) (Moreira & Stramar, 2015) (Ošenieks & Babauska, 2014)

Not precise Not precise Small and medium

Malaysia Brazil Latvia

Not precise Malaysia, Bangladesh

(Vitezić & Vitezić, 2014)

Not precise

(Song, Ming, Han, Xu, & Wu, 2015)

Not precise

Telecommunications Information technology Not precise Industrial, Services, Commerce, Financial Manufacture

(Rahman, Taghizadeh, Ramayah, & Ahmad, 2015)

Not precise

Telecommunications

(Dickel & Moura, 2016)

Not precise

Metalworking

Brazil

(Mir et al., 2016)

Small, medium and large

Not precise

Spain

(Alfaro-García, Gil-Lafuente, & Alfaro Calderón, 2017)

Small and medium

Manufacture

Mexico

(Danilevicz & Correa, 2017)

Not precise

Electrical energy

Brazil

The UNE 166002 standard allows the implementation of a system of R+D+i management for organizations, which may opt for a certification granted by AENOR (CTN 166 - Actividades de investigación, 2014). Being a certifiable standard, this implies carrying out measurement activities, and therefore a reason of interest in researchers to address topics of innovation management measurement. RQ 2: What is the contribution of the publications in relation to the measurement of innovation management? The proposals found have been named according to the authors as a model, framework, system, methodology and as an analysis research. In general, the studies have developed the theme of innovation management where they included, in one of their tasks, some measurement activity as it is summarized below: (Arzola & Mejías, 2007): define the 7D conceptual model oriented to the evaluation of internal management in service organizations, measures performance with the objective of exceeding customer expectations. It is based on the criteria of excellence models of management and measurement of innovation, defining seven dimensions and quantitative and qualitative criteria for each. The dimensions are leadership, strategic planning, customer satisfaction, processes, organization, human resource competencies and social responsibility. (Tien et al., 2007): propose a theoretical model that analyzes the impact of the implementation of innovation management in high-tech manufacturing companies in Taiwan. It works with mediating variables, such as type of industry and company level, to demonstrate a significant impact on competitiveness. (Salazar et al., 2010): define a model for the management of innovation in SMEs, allows organizing and systematizing processes, projects

Croatia

and R+D+i resources. It describes five aspects: management responsibility, resource management, processes, R+D+i activities, measurement, analysis and improvement. (Sánchez et al., 2011): define a conceptual model that evaluates the innovative behavior of the company based on the practices that performs on innovation management. It allows to know how innovation management is related to the growth and performance of companies in the medium and long term. The model consists of nine dimensions and 19 factors that characterize the organizational behavior. According to the authors, depending of the industrial environment and company type, different innovation management practices are used. (Moreira & Stramar, 2015): propose a holistic model of innovation management from a social approach. It consists of seven basic values for the analysis and understanding of innovation management: strategy, learning, knowledge, confidence, creativity, power, culture. (Vitezić & Vitezić, 2014): define a conceptual model of sustainable innovation, propose a constant measurement of innovation. It is based on controllers that define metrics and tools for analyzing the effectiveness of innovation. The controllers accompany the innovation process in general and propose adjustments. (Dickel & Moura, 2016): propose a model that measures the performance of the organization based on measurement criteria for two factors: knowledge management and innovation management. In knowledge management, it measures the ability to use the experiences of people, the infrastructure and processes of the organization around knowledge. Innovation management assesses the ability of the organization to focus on innovation development.

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(Mir et al., 2016): define a model that is an adaptation of the proposals of (Lawson & Samson, 2001) and (Saunila & Ukko, 2012). The first proposal considers three dimensions: standardized innovation management system, innovation capacity and business performance. The second proposal establishes a framework for measuring innovation capacity. The model defines as SIMSMA2 (Standardized Innovation Management System Model Analysis) uses six dimensions: the innovation performance, the innovation capacity, business performance, managing innovation through the UNE 166002, financial crisis, and types of innovation. The contributions that the authors present as frameworks: (Wong & Chin, 2007): describe a hierarchical framework for the organizational innovation management (OIM) in the manufacturing industry. The authors define three categories, which are divided into seven focus areas, each area defining a group of critical factors to evaluate OIM best practices. (Singh & Markeset, 2008): define a framework for the management and coordination of service innovation in the oil and gas industry. Develops the service innovation processes in four phases: idea collection, evaluation of ideas, development of service design, and implementation, the latter includes service review and improvements for delivery. (Cohn, 2013): defines a management framework for corporate valueadded innovation. The framework has five levels and develops a tool for assessing competitiveness based on questions. The objective is to analyze the company and progress with respect to its competitors, obtaining aspects to innovate, determine strengths and weaknesses to achieve its goals. (Song et al., 2015): propose a systematic framework for the innovation management of PSS (product–service system). It consists of three levels: strategic, tactical and innovation support. The support level defines the performance management to be able to evaluate and provide feedback to the other levels to improve the future operation. The contributions that the authors present as a system, methodology and analysis research: (Taghizadeh et al., 2014): realize an analysis of the SPOTS model (strategy, process, organization, tools/technology, system) for the telecommunications industry. The model is used to explain how service innovation practices influence market performance, the service development and the delivery process performance. The model defines an innovation process with a control process to help reduce time and cost in the development of new products. (Ošenieks & Babauska, 2014): present an analysis of SMEs in Latvia. The analysis uses success critical factors as the measurement system

performance that involves: growth, stability, profit and market share. Other factors consider the application of knowledge in innovation: competitive advantage through knowledge and collaboration practices, knowledge as a resource to reduce complexity in the innovation process, availability of internal and external knowledge. (Rahman et al., 2015): realize a study on non-financial performance measurement through two models: measurement model and the structured model. The study focused on the activities of measuring the new services development and the delivery process improvement. Conducted a survey to evaluate establishment of standards for the performance of services, mapping processes to reduce activities without value, improvement documentation of process, measurement compliance with the processes, institutionalization of continuous improvement processes. (Alfaro-García et al., 2017): define a methodology of measurement of innovation management based on the seven key areas of innovation measurement proposed by (Adams, Bessant, & Phelps, 2006). It consists of a survey made to small and medium manufacturing companies and an analysis of subjective information. The analysis uses two techniques: (1) the theory of expertons for the review of all opinions, (2) the induced generalized ordered weighted aggregation operator, which complements the result of the first technique. (Danilevicz & Correa, 2017): define an innovation management system (IMS) to guide the decision-making process in the selection of potential projects. In addition, propose indicators to monitor the selected projects. It consists of three pillars: stimulation towards innovation, selection of ideas, and implementation of projects. RQ 3: What kind of sectors of the industries and size of companies are involved in the publications found? The industrial sectors and the sizes of the companies declared in the primary studies were reviewed, finding that the largest population of studies occurs in the manufacturing sector (17.6%), services (11.8%) and telecommunications (11.8%), although a 29.4% of the studies did not specify a sector (Table 1). Likewise, from Table 1 and Figure 1 we can mention that: (i) 70.6% of the studies do not specify the size of the companies involved, (ii) 17.6% of the studies were conducted in small and medium-sized companies, where one of them was from the manufacturing sector, other two studies that did not specify the sector, (iii) for the small, medium and large company, 9.1% were presented but no sector was required, (iv) 70.6% of the studies did not define company size, however some of them do not specify the sector.

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Figure 1. Primary studies according to year and size of company

The Figure 1 corroborates the statement that, in recent years, there has been a greater interest in the issue of measurement of innovation management. Therefore, we find more bubbles from 2014 onwards.

Alfaro-García, V. G., Gil-Lafuente, A. M., & Alfaro Calderón, G. G. (2017). A fuzzy methodology for innovation management measurement. Kybernetes, 46(1), 50–66. https://doi. org/10.1108/K-06-2016-0153

Conclusions and future work The main objective of our study was to determine the contributions that researchers have made on the measurement of innovation management. In RQ1, it has been possible to find an increase in the number of publications on the measurement of innovation management, which suggests an interest in the subject. From RQ2 these publications are very specific to the need and context in which they were developed, and according to RQ3 this occurs in the manufacturing sector. Based on the findings found, it can be concluded that there are few studies on the measurement of innovation management, even though interest in various countries in the world is notorious. There has been an increase in publications in recent years and a variety on the subject in research. While there are some contributions on measurement, these are not for all sectors or sizes of company. The contributions found on the measurement of innovation management were developed in a context related to issues such as performance, effectiveness, competitiveness, improvement, among others, and specific to a sector and company size. As future works, there are several knowledge areas to be developed yet, either to create a model, a methodology or a framework for establishing ways of measuring innovation management. In addition, cases of application of existing contributions can be made, but in contexts that complement or improve the results obtained.

Arzola, M., & Mejías, A. (2007). A conceptual model for innovative management in service sector companies. Revista Venezonala de Gerencia, 12(37), 80–98. Retrieved from http://www.redalyc.org/articulo.oa?id=29003706 Bajenescu, T. (2017). The business value of innovation management. FAIMA Business & Management Journal, 5(2), 40–51. Retrieved from https://search.proquest.com/openview/85342296e757e501303a360e6 acb5314/1.pdf?pq-origsite=gscholar&cbl=2037693 Cohn, S. (2013). A Firm-Level Innovation Management Framework and Assessment Tool for Increasing Competitiveness. Technology Innovation Management Review, 3(10), 6–15. https://doi.org/10.22215/ timreview731 CTN 166 - Actividades de investigación, desarrollo tecnológico e innovación (I+D+i). (2014). UNE 166002:2014. Retrieved May 24, 2018, from https://www.aenor.es/aenor/normas/normas/fichanorma.asp?tipo=N&codigo=N0052892&PDF=Si#.WwduXEgvzIU

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Sulayman, M., & Mendes, E. (2009). A systematic literature review of software process improvement in small and medium web companies. In International Conference on Advanced Software Engineering and Its Applications (pp. 1–8). https://doi.org/10.1007/978-3-642-10619-4_1 Taghizadeh, S. K., Jayaraman, K., Ismail, I., & Rahman, S. A. (2014). A study of service innovation management in the Malaysian Telecommunications Industry. Global Business and Organizational Excellence, 34(1), 67–77. https://doi.org/10.1002/joe.21585 Tien, S. W., Chiu, C. C., Chung, Y. C., & Tsai, C. H. (2007). The impact of innovation management implementation on enterprise competitiveness among Taiwan’s high-tech manufacturers. International Journal of Technology Management, 40(1/2/3), 7. https://doi.org/10.1504/ IJTM.2007.013525

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J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

A Multifold Perspective of Knowledge Sharing and Virtual Teams: The Development of An IMOI Model Cynthia Sénquiz-Díaz1*, Maribel Ortiz-Soto1 Abstract: Knowledge has been recognized as an asset for the competitive advantage of organizations. Finding avenues for augmenting the organization’s value represents a continuous endeavor for managers. Although business tendencies emphasize the core role of teams in the development and implementation of knowledge management strategies, there is limited research on how virtual teams may contribute to the acquisition and distribution of knowledge through sharing dynamics. Accomplishing this shift in perspective requires comprehension of the necessary components leading to these opportunities in virtual teams. This review employs a systems thinking approach and develops an input-mediator-outcome-input (IMOI) model to guide the identification of the factors that organizations must possess to promote and facilitate knowledge-sharing strategies. By building this model based on a literature review from various fields, this study provides practitioners with a multidisciplinary scheme to strengthen the organizational structure and promote innovations based on the exploration and exploitation of this essential resource. Keywords: knowledge; virtual teams; knowledge sharing; systems thinking; IMOI model. Submitted: March 14th, 2019 / Approved: July 1st, 2019

Introduction Knowledge is recognized as a primary resource for sustainable advantage at present (Gonzalez & Martins, 2014; Grant, 1996) and is considered an essential asset in today’s economy (Staples & Webster, 2008). While global competition presents managerial challenges to developing strategies to achieve a flexible organization in response to increasingly competitive markets (Townsend, DeMarie, & Hendrickson, 1998), the success of organizations is mainly driven by knowledge-sharing practices (Riege, 2005). Researchers (Nonaka, 1994; Riege, 2005) contend that sharing tacit knowledge, where most knowledge is in the head of the individual, among people from different backgrounds is a core component in the creation of knowledge in the organization. Teamwork is a relevant strategy for encouraging knowledge (Gonzalez & Martins, 2014). Its value stems from the composition of members with a multidisciplinary background, skills, and experience that increase the opportunities for the development of knowledge (Gonzalez & Martins, 2014). The latest trends of globalization advocate that work is no limited to a particular space because it is becoming collective and is mostly technologically driven (Charlier, Stewart, Greco, & Reeves, 2016). Thus, firms are increasingly adopting new ways of organizing their methods (Yoo & Kanawattanachai, 2001). In this respect, virtual teams (VTs) are becoming a modern way of organizing groups across organizational boundaries. Virtual teaming represents a technique for achieving flexibility because of the composition of individuals dispersed within a geographic area who interact through technological media with the intention of accomplishing goals (Arnison & Miller, 2002; Curşeu, 2006; Ebrahim, Ahmed, & Taha, 2009; Townsend et al., 1998). Indeed, VTs are recognized as an organizational opportunity to overcome the challenges faced in goals of knowledge-sharing advancement (Kauppila, Rajala, & Jyrämä, 2011).

The literature extensively focuses on specific situations encountered by VTs, such as the lack of physical interaction (Arnison & Miller, 2002; Batarseh, Daspit, & Usher, 2017; Ebrahim et al., 2009; Malhotra, Majchrzak, & Rosen, 2007; Schulze & Krumm, 2017; Zakaria, Amelinckx, & Wilemon, 2004), compared to traditional teams. Despite the difficulties of VTs, this modern way of working allows organizations to be exposed to new knowledge (Argote, 2011). Although market competition and challenges call for this domain to be moved forward (Gilson, Maynard, Jones Young, Vartiainen, & Hakonen, 2015; Townsend et al., 1998), research on VTs that analyzes their knowledge management opportunities is limited. Along this line, Figure 1 indicates the most investigated fields in virtual teams within the business context from 2008 to 2018. The findings suggest that behavior and communication have maintained the attention of researchers, mainly due to the difficulties of distance and conflicts. Therefore, it is understandable that trust and technology are often investigated, suggesting a generalized interest in reducing the difficulties in virtual teaming relationships. Meanwhile, knowledge management issues in VTs have hardly been investigated. Figure 1. Major topics in virtual teams, 2008-2018

(Authors’ elaboration based on peer-reviewed journals in the ABI/INFORMS Global database).

1) School of Business and Entrepreneurship, Ana G. Méndez University, Puerto Rico. *Corresponding author: cynthia.senquiz@gmail.com

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Therefore, the purpose of our review is to expand the current literature by identifying relevant factors that promote knowledge management strategies, specifically knowledge sharing, through VT dynamics. Moreover, we employed the systems thinking approach to stress the multidisciplinary factors leading to virtual teaming outcomes by developing an input-mediator-outcome-input (IMOI) model. By applying this methodology, we expect to contribute to a better handling of knowledge-sharing strategies and the structure of virtual teams, while the demands for knowledge creation and resource leverage increase the opportunities to compete effectively in markets. Based on the increased attention to knowledge sharing to assist in achieving competitive advantage and business goals (Riege, 2005), our most important contribution lies in assessing and understanding how VTs promote advancements for the gathering of new knowledge even with geographically dispersed teams. This general review is a reflection on how organizations can better exploit virtual teaming in regard to their knowledge management and organizational learning needs. Therefore, this research does not deepen the types and classification of knowledge, nor does it broadly discuss the development and background of VTs. Further useful readings on these subjects are provided by Bluementritt and Johnson (1999), who compile and discuss researchers’ knowledge categories and establish a distinct differentiation between knowledge and information. Meanwhile, Ebrahim et al. (2009) provide a broad analysis of their research regarding VT development.

Methodology The chosen methodology consisted of extracting investigations from highly ranked peer-reviewed journals using the Boolean search operators AND/OR in the ABI/INFORMS Global database. We relied on this database because it offers worldwide business information coverage and the sources have a high reputation and contain publications from diverse fields (Zhang & Su, 2018). Advanced search Boolean logic was used to obtain more precise results. The keywords employed were “virtual teams,” “virtual teams and knowledge sharing,” “virtual teams and knowledge management,” “knowledge strategies and competitive advantage,” “emergent states,” and “virtual team effectiveness.” Initially, a preliminary review based on the article title and abstract focus, consisting of the business context for different periods (as available) from 2008 to 2018, on this subject was performed using the abovementioned database and keying in the words “knowledge,” “knowledge sharing,” and “knowledge sharing and virtual teams.” Accordingly, research on knowledge sharing and virtual teams seems very limited (Table 1).

We systematized this review of the knowledge-sharing literature in VTs based on (a) organizational factors, (b) team member factors, (c) individual factors, (d) emergent states and processes, (e) moderators, and (f) outcomes. More specifically, we provide a holistic and multidisciplinary perspective based on our review of articles from diverse fields such as human resources, information systems, knowledge management, innovation, organizational behavior, and team performance. The inclusion of various disciplines in this review is ascribed to the generalized conceptualization that “the whole can exceed the sum of its parts,” as stated by Senge (2006, p. 12).

The rationale for knowledge sharing and VTs Organizational knowledge is recognized as a valuable intangible resource for achieving competitive advantage (Grant, 1996). The importance of knowledge sharing makes it necessary to identify ways to enhance knowledge-sharing activities (Bartol & Srivastava, 2002), considering that individuals are the elite movers of knowledge creation (Nonaka, 1994). In this way, the accepted consensus is that the knowledge sharing among individuals not only contributes to knowledge creation at an organizational level (Bartol & Srivastava, 2002) but also results in individual learning that supports organizational learning (Ipe, 2003). Among researchers and academicians, the interest in understanding how to embed knowledge is noticeable, such that different definitions have been used. Some researchers argue there are two categories of knowledge, explicit and tacit (Polanyi, 1996), while others state that knowledge relates to the information an individual possesses in his or her mind and establish its differentiation between data and information (Alavi & Leidner, 2001). To accomplish the objective of this study, knowledge is viewed as a process, with a focus on creation, sharing and distribution (Alavi & Leidner, 2001), to remain competitive in markets. Building on this perspective, organizations are challenged to “create, capture, and locate organizational knowledge” (Gold, Malhotra, & Segars, 2001, p. 91) to encourage sharing activities across boundaries. Knowledge management involves a combination of “people, technology, and culture” (Liebowitz, 1999, p. 39), which makes it necessary to identify ways to make knowledge available to others with the express intention of sharing by the individual possessing the knowledge (Ipe, 2003; Riege, 2005), improving organizational learning and innovation (Riege, 2005). In this respect, teams are key components because they “are the fundamental learning unit in modern organizations” (Senge, 2006, p. 10).

Table 1. Total Published Articles from 2008 to 2018, Business Context Categories

Articles Search Results 2004-2016

Knowledge

3,949

Knowledge sharing Knowledge sharing and virtual teams

Articles Search Results 2008-2018 833

(Authors’ Elaboration Based on the ABI/INFORM Global Database).

This review ascribes this advantage to VTs because they “allow organizations to respond faster to increased competition since they can quickly harness the knowledge employees possess, regardless of location” (Bell & Kozlowski, 2002, p. 14). In this respect, (Kauppila et al., 2011, p. 396) affirm that VTs “are potentially much more viable facilitators of knowledge sharing than individuals or traditional teams.” Virtual teams are intentional learning means that can even connect a considerable number of individuals, allowing the fast diffusion of

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J. Technol. Manag. Innov. 2019. Volume 14, Issue 2

shared knowledge, especially through technology-based systems (Ipe, 2003). Therefore, VTs play an important role in supporting the knowledge-sharing practices in organizations, which have not been sufficiently studied (Kauppila et al., 2011). Additionally, Griffith, Sawyer, and Neale (2003) assert that they represent a valuable opportunity for the organization to capture knowledge.

An IMOI model for knowledge sharing and VTs Organizational designs are more complex today than they were in the past (Mathieu, Maynard, Rapp, & Gilson, 2008). To visualize this versatility, we employ systems thinking analysis in a way to understand what VTs require to accomplish knowledge-sharing goals. Figure 2 presents the IMOI model development suggested by Ilgen,

Hollenbeck, Johnson, and Jundt (2005), where (a) knowledge sharing is apprehended as a process that depends on organizational, team, and individual factors and (b) the nesting arrangement is on the input level, suggesting the impact of complex and nonstatic relations on the performance of teams, as described by Mathieu et al. (2008). Thus, while the input-process-output (IPO) model has often been used to analyze team performance, the IMOI model accounts for the complexity and nonlinear or conditional interactions of cornerstone factors (Ilgen et al., 2005), which is more relevant to the modern challenges in the knowledge management field. Next, we briefly describe these components and present a summarized review, structured for ease of reading and practical convenience, of the articles employed in the development of the conceptual model.

Figure 2. Input-mediator-outcome-input model of knowledge sharing in virtual teams

(Authors’ elaboration based on the literature reviewed)

Inputs As previously mentioned, Figure 2 identifies the factors facilitating VT knowledge sharing in the IMOI model. The first categories, inputs, are the enablers or constraint components in the interaction of team members (Mathieu et al., 2008) and individual members embedded in a large system such as the organization (Curşeau, 2006). The fact that “collaboration and distributed learning technologies allow individuals within the organization to collaborate, eliminating the structural and geographical impediments that may have prevented such interaction” (Gold et al., 2001, p. 188) demands a better management understanding of these critical components. At a glance, the first classification is the organizational factors, which include the infrastructure of the conditions for the initial stage in the knowledgesharing empowerment in VTs. For example, managerial actions that

are intended to reinforce existing knowledge-sharing nodes have a positive impact regardless of the period (Kauppila et al., 2011). The adequacy of human resource practices, such as compensation and incentives, contributes to the leverage of resources and advances the success of the employed knowledge-sharing strategies. Furthermore, trust is a highly related factor at all input levels, implying the importance of delineating plans for its allowance; additionally, a culture for accelerating knowledge-sharing activities and information technology structures are essential for knowledge-sharing processes. The second classification corresponds to the team factors. It includes team characteristics such as knowledge activism to promote a knowledge-sharing culture, and the diversity and connection of experts, which calls for a contextual balance according to the organizational expectations of the VTs and the shared mental models that

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allow the integration of an effective dimensionality, where, according to Senge (2006, p. 9), “people expose their own thinking effectively and make that thinking open to the influence of others”. The third category, individual factors, refers to the characteristics and personalities of members (Mathieu et al., 2008). Individuals are especially important because of the contribution of their expertise to the organization (Malhotra et al., 2007), and they are the core components in virtual teams (Lipnack & Stamps, 1999). In this category, motivation, for example, is a component that drives members to use technology and share knowledge and skills within a context of cultural diversity. While motivation contributes to the development of ideas and creativity, a member’s experience is required to capture the multifaceted nature of virtualities such as technology and the dynamics in dispersed groups (Schulze & Krumm, 2017). Lastly, as acknowledged by Mathieu et al. (2008), the solid lines in one direction presented in our model suggest a stronger influence of the high-level factors throughout the inner layers, rather than in the reverse direction, as shown by the dotted lines acknowledging the fundamental role of the organization in the knowledge strategy design.

Mediators: emergent states and processes Emergent states are variables that describe the team as a whole, and their emergence shapes the local dynamics of the team due to its affective state (Curşeu, 2006; Marks, Mathieu, & Zaccaro, 2001). In our model, they are grouped and recognized as team cognition, teambased trust, and shared understanding, describing virtual members’ interaction. Meanwhile, team processes are regarded as interdependent acts that convert inputs into outcomes via cognitive skills to achieve goals used to monitor tasks dependent on interaction (Marks et al., 2001; Mathieu et al., 2008). Hence, knowledge sharing is acknowledged as a process that is sensitive to the characteristics of the organization, context, and climate (Chouikha & Dhaou, 2012).

Moderators These factors include components that may moderate the direction and strength of factors that influence the relationship between the input components, mediators, and outcomes. Task interdependence is essential because it contributes to the conscious development and needs of one another, impacting the relationship of components (Bell & Kozlowski, 2002). It is a structural element with a strong influence on trust (Staples & Webster, 2008). Transactive memory is also a potential moderator of such relations, as it develops from experiences working together, implying more substantial capabilities of a team to perform efficiently (Argote, 2011).

Outcomes The last component in our IMOI model is the outcomes, which represent the results of transformations derived from the inputs and mediators. In general, teams exist to improve organizational effectiveness. This expectation should be the same for VTs where knowledge sharing is essential (Staples & Webster, 2008). When knowledge-

sharing practices are successfully implemented, improvements in organizational learning are most likely to happen. Teams are complex systems that require adaptation, demanding a continuous cycling and recycling over time of their members and context (Ilgen et al., 2005). Thus, we introduce the feedback loop in our model to state the development sequence in which team effectiveness and organizational learning are the outcomes at one specific time and the inputs of a continuous guiding process at another time (Ilgen et al., 2005). Moreover, it also reflects learning from experience on the organizational side to nurture knowledge creation (Argote, 2011).

Findings of the article review Drawing on a literature review on knowledge sharing and virtual teams, this section presents a condensed summary and an analysis concerning their contribution to the development of the IMOI model. Notably, we stress the features of organizational units to (1) help managers identify the components needed to increase efficiency in sharing practices and (2) understand the nonstatic functionality of VTs, providing new insights into management strategies. We begin this review with the article by Olli-Pekka Kauppila, Risto Rajala and Annukka Jyrämä titled “Knowledge sharing through VTs across borders and boundaries.” In this research, the authors discuss the multifaceted nature of knowledge and explain how VTs contribute to knowledge sharing in multinational organizations across boundaries. Based on a study case, the authors contend that VTs are a mechanism of knowledge sharing that promotes organizational learning more than traditional teams based on their activism role. In addition, the implementation of an open platform as an information repository increased referrals to shared knowledge, reducing the repetition of information and augmenting organizational cohesion. Consequently, the contribution of VTs to the knowledge-sharing process rests on the creation of a transactive memory system where everyone knows who is good at what. Hence, team building and communication interactions are required to develop a transactive memory system (Yoo & Kanawattanachai, 2001). Concerning the model development, the research focus is on the input and moderating factors. The needs and understanding of background diversity (individual level), purposeful managerial actions to reinforce the nodes in existing structures for knowledge-sharing networks, organization-based trust (organizational factors), and knowledge activism at a team level were the most relevant. Regarding transactive memory, the study ascribed its strength to knowledge sharing and team efficiency. The next article, by Atul Arun Pathak, is titled “Effective knowledge management boosts VTs.” In this article, the author presents a discussion of human resource strategies for adapting and increasing the potentialities of VT knowledge sharing and expertise leveraging within the members of VTs. For example, practices aligned with staffing, team induction, training, and member rotation are suggested ways to ensure knowledge-sharing outcomes. A common challenge is virtual team training, which is often ignored and, if it exists, is not rated as useful (Malhotra et al., 2007). Concerning the model, its focus is on the input level (organization) with the implementation of human

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resource strategies in boosting knowledge management through VTs. The application of proper human resource practices allows the openness of the gathering of solutions to complex problems at the individual and team levels. As a result, knowledge-sharing activities are performed. The next article, by Faizuniah Pangil and Joon Moi Chan, is titled “The mediated effect of knowledge sharing on the relationship between trust and virtual team effectiveness.” In this research, different levels of trust (personality-based, institutional-based, and cognitivebased) are empirically challenged for knowledge-sharing behavior and virtual team effectiveness. The authors base the existence of VTs on knowledge-sharing needs and the gathering of novel ideas. For example, the research mentions that work in teams enables knowledge sharing as part of the completion of the tasks assigned. In this context, the findings imply that a trusting climate fosters the idea of collaboration and a learning environment among team members. Trust has been acknowledged as an enabler of the emergence of cognition and performance of the virtual team (Curşeu, 2006), as it enhances team effectiveness. Other researchers (Riege, 2005) base the dependency of knowledge-sharing success directly on the influence of trust on these dynamics. Regarding the model, the article emphasizes the inputs (organizational and individual level), emergent states, process, and outcomes. Thus, organization- and person-based trust is crucial for allowing the knowledge-sharing process to ensure virtual team effectiveness and learning outcomes. Although VTs are influenced by many factors, the development of team trust in knowledge sharing significantly affects the effectiveness and achievement of organizational expectations. In a forthcoming article titled “Virtual team collaboration and innovation in organizations” by Leif Jarle Gressgård, the research discusses VT collaboration when using information and communication technologies in creating and developing knowledge with regard to the innovation capabilities of the organization. The author employed a literature review methodology to develop a conceptual framework and suggests the relation of technology, communication characteristics, knowledge exploitation and access, and innovation. In regard to the model, the article focuses on the input factors (organization and individual level) and emergent states. At the input level, information and communication technology resources increase access to knowledge externally and internally, affecting the innovation capabilities of the organization. The cultural diversity of virtual team members boosts the degree of innovation and creativity for radical solutions, as it addresses the limitations of repertoires. Finally, the emergence and development of a shared understanding are dependent on a platform interaction where both the individuals and the team benefit from the interpretation of new information, the adequacy of teamwork efficiency, and effectiveness. The following article, by D. Sandy Staples and Jane Webster, is titled “Exploring the effects of trust, task interdependence and virtualness on knowledge sharing in teams”. This article empirically examines the effect of trust within teams on the process of knowledge sharing and explains its practical effectiveness. Embracing social exchange theory,

the authors emphasize how knowledge sharing is accomplished by means of low/high task interdependence and trust reward cognition. They assert that there is no forced obligation to share knowledge except for an interpersonal trust relation and cognition. Hence, members’ interactions in the first stages of team development are essential for trust development (Curşeu, 2006). Trust is a crucial enabler, as previously mentioned, whose effect will vary according to the task interdependence and need for knowledge sharing in VTs. Finally, information and communication technology tools are found to support explicit knowledge sharing. Regarding the model, the research focus is on the inputs, mediators, and moderator factors. The relation of interpersonal trust, team cognition, and task interdependence with regard to the voluntary action of knowledge sharing is emphasized. In the following article, “Virtualness and Knowledge in Teams: Managing the Love Triangle of Organizations, Individuals, and Information Technology” by Terri Griffith, John Sawyer, and Margaret Neale, based on a literature review, the authors explain the opportunities of VTs in knowledge management, specifically in the gathering and development process. To that end, they analyze the impact of several factors, such as information and communication technology, the inclusion of diverse expertise from team members, opportunities for knowledge advancement, and team dependency, on the storage of explicit knowledge in retrievable forms. When stored knowledge is shared and used, it contributes to organizational learning through knowledge creation (Aggestam, 2006). Since VTs tend to utilize information and communication technologies at a high level, they can serve as knowledge keeper engines for the organization. Thus, organizational strategies should be aligned with the identification of diverse expertise to nurture the dynamics that increase the explicit knowledge of the team. Regarding the model, the main research focus is on the combination of input factors of information and communication technology (organization level), diverse expertise (team level) and transactive memory (moderator). For example, transactive memory could be created by using technologies by updating, information allocation, and coordination for retrieval. By employing high levels of technology utilization, the explicit knowledge of VTs is expected to increase, with a diminishing tendency of lower levels of individual knowledge contributing to the team’s and the organization’s effectiveness. As a result, the development of transactive memory is largely improved through the use of an appropriate technology structure and the proper selection of members’ expertise. We follow with the article titled “The hierarchical linear modeling of a shared mental model on virtual team effectiveness” by Yu-Chun Xiao and Yang-Hua Jin. These authors examine the effect of shared and distributed mental models on virtual team effectiveness. The researchers empirically measured the relation of the distributed shared mental model with cooperative and satisfactory team effectiveness using size and the time of establishment as control variables in the study. While the literature suggests that shared mental models are part of the emergent states of virtual team dynamics (Mathieu et al., 2008), the authors emphasize the importance of shared mental models as input factors (teams) for improving effectiveness through several strategies, including communication modes. The authors highlighted the effect

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of team size and team time, suggesting better structural planning for VTs to obtain positive results from their cooperation and coordination activities. A better focus on the design of VTs is thus recommended. The next research, by Norhayati Zakaria, Andrea Amelinckx, and David Wilemon, is titled “Working Together Apart? Building a Knowledge-Sharing Culture for Global VTs.” In this research, the authors discuss factors that influence the success of global VTs in knowledge sharing via the use of information and communication technology with the support of the organizational culture, team leadership, and team members’ relationships. Through an extensive literature and analysis review, they explain the challenges for global VTs, suggesting ways to overcome these challenges. Regarding the model, the article focuses on the interrelation of several inputs (organization and team level), processes, and outcomes. At a glance, the characterization of the team leadership role is demanded at the initial formation stage for conceptualization facilitation. This part of team development is important because trust is endowed by the first communication behaviors (Jarvenpaa & Leidner, 1999). The value of information and communication technology is emphasized, but its effectiveness is dependent on the existence of members’ respect, trust, and positive relationships in knowledge sharing. The research explains the opportunities to encounter new methods of organizational learning through the implementation of the knowledge base climate. The first suggestion is the use of information and communication technologies in different ways, for example, as a collaborative and interactive virtual space, for the exchange of cultural ideas to support a proper knowledge-sharing process. Second, the recognition of the importance of organizational culture in fostering the adequate use of information and communication technology by global VTs is discussed in terms of dealing with an intrateam relationship. The authors conclude that both organizational management and leadership have a fundamental role in building an appropriate consensus among members. In this regard, leaders act as facilitators and intermediaries so that global team members engage in a knowledge-sharing culture even across borders and challenges. In the following article, “The knowledge advantage of VTs-processes supporting knowledge synergy” by Violina Ratcheva, the paper discusses the process of knowledge creation, networking, and partnership in VT relationships mediated by technology and emphasizes the views of interaction and communication patterns. Adopting the theory of self-production, the author compares the interactions of VTs to an enabling mechanism to produce and reproduce. The paper explains the opportunities of VTs to develop knowledge collectively. For example, team cognition openness is referred to as a knowledge link for improving organizational learning. Team cognition openness has several implications for our model. First, the knowledge-sharing process appears to be a purposeful action based on internal and external interactions, improving understanding and the acquisition of new knowledge. Knowledge development stems from what the author calls different social interactions, instead of knowledge possession, as a prerequisite for virtual teaming. Hence, the managerial purpose of knowledge creation is dependent on experts’ connections. Second, the blending of individual knowledge into team interactions promo-

tes the creation of knowledge, resulting in products and problem solutions. Therefore, expert connections (at a team level) support the embedded knowledge required for successful project fulfillment. Third, knowledge management is a dynamic process composed of cultural diversity (individual level), interpretations, and interactions. In this process, person-based trust is needed to strengthen team members’ relationships and to trigger knowledge-sharing practices. Lastly, the cyclical inputs with regard to communication and the sharing of ideas nurture new tacit knowledge to be translated into learning for team members and the organization. We conclude this review with the article by Julian Schulze and Stefan Krumm titled “The “virtual team player”: A review and initial model of knowledge, skills, abilities, and other characteristics for virtual collaboration.” Their research discusses why relevant knowledge, skills, abilities, and outcomes (KSAOs) are needed in virtuality facets (technology use, cultural differences, and geographic dispersion in addition to the challenges for teamwork. The research provides an IMO model that emphasizes distal and proximal inputs. Regarding our framework, the analysis focuses on input factors (individual level). Motivation and experience not only influence the teaming challenges but also allow the functionality of input factors, process factors, and emergent states. More precisely, motivation supports the use of technology and the willingness to share knowledge capabilities and to handle cultural diversity at the individual level. Experience, technology use, and intercultural exposure make it possible to encode and decode messages, allowing intelligent collaborative cognition at the personal level.

Concluding remarks This review points out that the knowledge-sharing process in virtual teams requires different factors beyond the use of information and communication technology. We developed an IMOI model based on a literature review based on high-impact peer-reviewed journals to guide managers in identifying these components to enhance knowledge-sharing strategies and to improve their performance while contributing to organizational learning. By providing a blueprint, practitioners can foster the virtual design team to work such that they stimulate willingness and collaboration within these modern groups. Knowledge management strategies are central to a successful organization. We hope that further empirical advancements can be made to enrich the contributions of virtual teams. It is critically important that managers maximize the role of virtual teams in the organization, taking into account boundaries, the scope, and the many opportunities for knowledge augmentation when the systems thinking approach is applied to this technology-based, geographically dispersed group. Biographical Notes Corresponding author: Cynthia Sénquiz-Díaz is a lecturer and is currently pursuing a doctoral degree in management at the School of Business and Entrepreneurship at Ana G. Méndez University (Puerto Rico). Sénquiz-Díaz has participated as a speaker at local and

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international conferences. Her research interest centers on innovation and strategic management, operations management, human resources, and organizational behavior.

Chouikha, M., & Dhaou, S. (2012). The dimensions of knowledge sharing. Proceedings of the MCIS 2012, Mediterranean Conference on Information Systems.

Dr. Maribel Ortiz-Soto is an Associate Professor in the School of Business and Entrepreneurship at Ana G. Méndez University (Puerto Rico). Dr. Ortiz-Soto has a Ph.D. in business development and international business. Additionally, Dr. Ortiz-Soto has participated as a speaker at several international and local conferences. Her main research interests are rooted in entrepreneurship, innovation, management and leadership, and international business.

Curşeu, P. L. (2006). Emergent states in virtual teams: A complex adaptive systems perspective. Journal of Information Technology, 21(4), 249-261. http://dx.doi.org/10.1057/palgrave.jit.2000077

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Innovative HRM. A Review of the Literature Ferry Koster Abstract: This research note summarizes the findings of a literature review of innovative HRM. Based on an analysis of 47 articles, three main approaches to innovative HRM are identified. First, innovative HRM can refer to innovation of HRM. Other studies focus on how HRM responds to innovations. And, thirdly, the term innovative HRM is found in the literature focusing on organizational innovativeness. These three approaches, along with theoretical explanations, are discussed. The note closes with implications for research and practice. Submitted: April 9th, 2019 / Approved: July 2nd, 2019

Introduction In organizations facing increasing global competition and changes in their environment, Human Resource Development (HRD) is more relevant than ever before. Such external pressures ask for employees that have the skills, knowledge, and ability to perform optimally. The facilitate that, organizations may need to apply innovative Human Resource Management (HRM) practices. By using innovative HR policies and practices, organizations aim at ensuring the autonomy and skills enhancement of employees to enable them to perform well in changing circumstances (Agarwala 2003). This means that researchers and HR managers need to have some understanding of what HRM innovation means and how it can be achieved. Prior research may be helpful for that and is reviewed in this research note, which is part of an ongoing project investigating what is known about innovative HRM and how organizations achieve it. This research note is structured as follows. First, the methodology is described. Secondly, the main results are reported. Thirdly, theoretical implications are discussed. The note closes with suggestions for research and practice.

Method The literature review about innovative HRM was conducted in several steps. The first step was to find articles that fit the literature review. An article search was performed using scholar.google.com as the main source. Search terms that were used to find articles investigating innovative HRM are: “innovative hrm”, “innovative hr practices”, “innovative human resources practices”, and so on. As we are interested in what organizations actually do regarding innovations related to HRM, we selected empirical studies. By including qualitative and quantitative studies we aim at generating more insights into the type of innovations that organizations apply. Hence, the selection includes articles that actually investigate innovative HRM rather than theoretical papers. Furthermore, we did not explicitly define the term innovative HRM beforehand, as part of our research focuses on the question what researchers actually mean if they are using the term. The references of the articles that this first search generated were checked

and potential interesting articles were added. To assess whether these articles were indeed of interest to this literature review, a somewhat broader conception of innovative HRM was used. This means that articles focusing on organizational innovation were also scanned on terms like “human resource management” “hr practices”, and so on, to ensure that no relevant articles were missed. The papers were read to assess the information they provide about innovative HRM. Selecting the ones that are published in journals that are indexed in the Social Sciences Citation Index (SSCI) assured that the review includes articles of sufficient scientific quality. This reduced the resulting list of articles. A number of papers were excluded because they did not investigate the concept of innovative HRM, even though the term was used in these articles. In these articles the term is used in a very broad sense, without specifying its content. In such articles, it is for instance stated that organizations need to apply innovative HRM practices, without explaining what is meant either with these practices or what is innovative about them. For the purpose of this article, these articles have little value. In total 47 articles remained that could be included and analyzed in the literature review (Appendix A provide the list of the articles). The articles were analyzed to find general approaches to innovative HRM.

Innovative HRM Table 1 provides the outcomes of the analysis and summarizes the 47 articles included in the review. The table consists of three columns, namely: approach, study and subthemes. With regard to the approach to innovative HRM, three different streams of research are identified in the literature: (1) research focusing on the innovation of HRM; (2) research in which HRM is a response to (technological) innovations; and (3) research showing how HRM is linked to the innovativeness of organizations. The column labeled “studies” provides the numbers referring to the specific studies that belongs to a certain approach (the numbers correspond to the ones in Appendix A). And, in the third column several subthemes are specified, meaning that there are some differences within the three identified streams of research. Bellow, we discuss the approaches and subthemes.

Department of Sociology, Erasmus University Rotterdam, Rotterdam, the Netherlands. E-mail: koster@fsw.eur.nl

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Table 1. Overview of studies of innovative HRM Approach

Study

Subthemes

Innovation of HRM

a) Innovative HR policies and practices 1, 2, 4, 5, 6, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, 23, 25, 26, 27, 28, b) Change of HR policies and practices 29, 30, 31, 32, 34, 35, 36, 37, 38, 39, 40, 41, 43, 44, 45, 46, 47

Innovation →HRM

3, 42

a) Technological change affects HRM b) HRM technologizes a) HRM facilitates innovation HRM → innovation

2, 7, 8, 9, 19, 24, 33 b) HRM contributing to innovation consists of innovative HR policies and practices

Innovation of HRM In most of the studies the term innovative HRM refers to HR policies and practices that are considered to be innovative. Nevertheless, there is a subtle difference within this approach that needs to be taken into account. In a part of the literature, innovative HRM reflects policies and practices that are truly novel and new (in the sense of being radical innovations as they are referred to in the innovation literature, see for example Crossan and Apaydin 2010). In another part of the literature, innovative HRM is a label for change or innovation of existing policies and practices, which is a form of incremental innovation (e,g, Crossan and Apaydin 2010). A large share of the studies aims at finding and investigating radical innovation in HRM. Most of the time, research in this field approaches the issue of innovative HRM by defining innovative HR policies and practices and then trying to measure to what extent these policies and practices are applied by organizations. Common characteristics of such innovative HR policies and practices found in the literature are: • • • • •

Equal treatment Human capital investments Sustainable employability Reward systems (beyond financial incentives) Decentralization and autonomy

A study by Agarwala (2003) serves as a good example of this approach. In this study, 14 HR areas are distinguished, like for example, hiring policies, reward policies and developmental policies. Studies like these are related to “High Performance Work Systems” (or similar terms like HPW-organizations, HPW-practices, HIPOs, and so on) (Appelbaum, Bailey, Berg and Kalleberg 2000, Combs, Liu, Hall and Ketchen 2006). The main theoretical idea in this part of the literature is that HR policies and practices contribute to organizational performance as they increase the performance, satisfaction and commitment of employees if these policies and practices form bundles or systems. This means that the different HR policies and practices that organizations can apply, for example aimed at attracting new personnel, training employees, facilitate career paths, et cetera, need to be

offered as a coherent set of instruments. What follows from this is that focusing on a single instrument is less effective than having a combination of instruments that are aimed at the same goal. According to this logic, organizations that apply instruments with contrasting goals (i.e. combining teamwork with individual pay) function poorer. What this literature furthermore shows is that to be effective, these policies and practices need to be aligned internally (they need to fit together) and aligned externally (they need to fit the organization’s environment) (Huselid 1995, MacDuffie and Kochan 1995). The answer why this is more effective lies for a large part in the answer that employees are able, willing and knowing to do their work if HR instruments are aligned (Koster 2011). Having coherent systems of HR policies and practices has these motivational effects on individuals as organizations signal their expectations and goals more clearly to their employees. Hence, the level of human capital of these organizations is developed and optimized. In addition to that, organizations applying these innovative HR policies and practices are characterized by teamwork, decentralized decision making, systems enabling cooperation between units, and so forth. It should be noted that innovative HRM is a part of such high performance work systems. Besides the management of personnel, it includes a focus on the quality of supportive staff and the overall design and strategy of the organizations. Clearly, innovative HRM is an integral part of this overall strategy. Like already noted, what we have termed the radical innovation subtheme (in the sense that organizations have these HR policies and practices or not) is a common approach in the literature on innovative HRM. The studies found here focus on the content of the practices. In a sense, it is also a static way of looking at innovative HRM, i.e., organizations apply certain practices that can be labeled innovative. Studies that fall in the second subtheme of this approach focus much more on changes, renewal and improvement of the practices that are already present in the organization. Hence, the focus is much more on incremental innovation. In that sense, it can be closely related to classical HRM themes. The research strategy that we see here is that researchers define HRM functions (selection, hiring, training, et cetera) and then ask the question whether organizations have made changes in these functional fields of HRM. What is considered a change

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is left to the respondent to decide, but the usual approach here is to ask about (significant) improvements of instruments that are already applied. The HRM of these organizations is labeled innovative if changes and improvements in these functions and their accompanying HR policies and practices have occurred.

Innovations affect HRM While in the first stream of literature, innovation is an integral part of HRM, studies that fall in the second and third stream make a distinction between innovation and HRM. Studies in the second approach do that by regarding innovation as the independent variable. Hence, the general assumption underlying this part of the literature is that organizations adapt their HR policies and practices in response to their external environment. Innovations (e.g. the introduction of new technologies) are part of the organizational environment and affect it. Again, two subthemes are distinguished. Here the difference between the subthemes relates to the closeness of the relation between technological innovation and HRM. In the first subtheme, in which the external innovations and HRM are two separate variables, this link is relatively weak. In the second subtheme, in contrast, this link is strong because it concerns innovations are directly applied to the HRM policies and practices of organizations. With regard to the first subtheme in this approach to innovative HRM, there are many studies focusing on external trends and their impact on HR policies and practices. Among them are studies that have a broad view on these trends and reflect on what this means for the future of HRM. An example of this subtheme is the study by Colakoglu, Lepak and Hong (2006) who discuss how globalization and technological change affect the organizations and content of work. An even broader discussion is found in Ulrich en Dulebohn (2015). They argue that the future of HRM depends on several broad trends, namely: • • • • • •

Social trends: healthcare, life style, family structures; Technological trends: digitalization; Economic trends: inflations, recessions, labor markets; Political trends: stability, elections; Environmental trends: sustainability; Demographic changes: age, education, diversity, income.

In this very broad approach to HRM innovation, each of these trends can be regarded as trigger for innovation. However, technological changes (along with environmental trends) reflect the link between innovation and HRM most clearly. Recent discussions about the impact of robots on the world of work neatly fit into that research. Nevertheless, the consequences for HRM remain unclear at the moment as the opinions about this impact diverge. While several authors – who are also extensively quoted in the public debate – argue that jobs will disappear (Autor, Levy and Murnane 2003, Frey and Osborne 2013),

others expect that new jobs will emerge because of the introduction of robots (Brynjolfsson and McAfee 2014). Certainly, it is possible that both are true at the same time: some jobs disappear and others emerge. And, this in turn, will have consequences for HRM, for example with regards to the outflow of people, internal employability, training, hiring, and so forth. In what direction this is going in practice hugely depends on the net impact of technological developments. The same holds for the quality of work that remains. At the moment, it remains to be seen whether this involves an up-skilling or down-skilling of jobs (Van den Berge and Ter Weel 2015, Went and Kremer 2015). In both cases, there are consequences for HRM. The second subtheme directly links innovation to HRM. Studies in line with this conceptualization of innovative HRM zoom in on the questions regarding how organizations use new technology to configure their HRM function. One of the directions found here, is that HRM itself technologizes; for instance, the application of E-HRM by organizations. E-HRM refers to the use of information technology to enable organizations to manage their human resources, for example by using web technology (Ruël, Bondarouk and Looise 2004). Whereas the idea of E-HRM has been around for a while, the number of studies focusing on it remains a minority compared to the fields identified here. Marler and Fisher (2013) provide an overview of the literature. They show that research of E-HRM is still a young field. Still, they managed to collect quite a number of studies. The main concern that they mention in their reviews is that the majority of these studies rely on a deterministic view of technology. As Marler and Fisher (2013) state this is in sharp contrast with the field of technology studies that have adopted a more complex and developmental view on the impact of technology. As processes of digitalization and the possibilities it provides for information sharing and other applications, it is likely that this field will catch up with these more general notions of the role of technology in organizations. Another field of inquiry in which HRM and technological change are closely related is that of outsourcing. Developments in information technology enable the outsourcing of HRM, meaning that some organizations rely on other parties for HR practices such as pay, but can also include training and development of employees (Greer, Youngblood and Gray 1999, Gainy and Klaas 2003). By outsourcing (part of their) HRM function, organizations can get access to technologies that are not available in their own company. No doubt, these technological developments will continue in the future and will remain a part of the future of HRM. It may even be that it is the future of HRM. Nevertheless, whether this can be labeled a radical or an incremental innovation cannot be stated beforehand. On the one hand, it may be that the HR policies and practices remain the same and that only the means through which they are organized and who provides them changes. In that case, we can speak of an incremental innovation. If, on the other hand, the scope of E-HRM and the number of functionalities to which it gives access increases considerably, for example if they are linked to digital platforms that also serves as an external labor market, it is a much more radical innovation.

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HRM contributing to innovations The third approach to innovative HRM reverses the link between innovation and HRM. In this part of the literature, certain HR policies and practices are regarded as supportive for or a precondition of the innovativeness of organizations. Organizational innovativeness refers to several improvements that organizations can make, such as the introduction of new products and services, applying new marketing methods or changing production and organizational processes (e.g. Crossan and Apaydin 2010, Pouwels and Koster 2017). In this approach to innovative HRM, these policies and practices are investigated as the independent variable. The kinds of HR policies and practices that are studied here range from traditional ones to the newer ones identified in the literature on high performance work systems. Again, there are two subthemes within this approach. The studies that fall in the first subtheme are those in which researchers have a predefined idea of what constitutes HR policies and practices that contribute to the innovativeness of organizations. In their study of organizations in 32 European countries, Pouwels and Koster (2017) for example find that organizations using training and performancerelated pay score higher on product and service, market and process innovation. The second subtheme consists of studies that are much more exploratory. Instead of defining innovative HRM beforehand, these studies leave it to the data to decide what innovative HRM is; those HR policies and practices that contribute to the innovativeness of organizations are labeled innovative.. This means that in the first subtheme there is a clear distinction between HR policies and practices on the one hand and organizational innovativeness on the other. In the second subtheme this less so, since the outcomes (innovations) are used to label the HR policies and practices. Research by Oladapo and Onyeaso (2013) serves as an example of this approach. They investigate the link between high performance work practices and organizational innovation. The 2 of the 3 dimensions of the work practices that relate to innovation are then regarded as innovative HR practices. What is important in both subthemes is that they focus on the questions to what extent and how HRM contributes to the innovativeness of organizations, while in de other two approaches HRM is regarded as a response to (external) developments. By focusing on this aspect of HRM, these studies provide evidence for the added value of HRM.

Theories and explanations The literature review revealed that there are at least three ways in which innovative HRM is conceptualized in the present literature. As a result, different theoretical frameworks are necessary to explain HRM innovation. Approaches 1 and 2 (innovation of HRM and innovation affects HRM) can be explained using similar theories, but approach 3 (HRM contributes to innovation) requires the use of other theoretical insights as well. Below, we discuss the most central theories under two headings: (1) Explaining the adoption of innovative HRM; and (2) Explaining how HRM contributes to innovation.

1. Explaining the adoption of innovative HRM The HRM literature provides 4 general theories explaining the adoption of HR policies and practices. These are: (1) economic; (2) alignment; (3) decision-making; and (4) diffusion explanations (Subramony 2006, Koster and Wittek 2016). In the literature reviewed, each of these explanations is found. And, in some cases the studies give more than one explanation or contrast these theoretical notions. Economic explanations Economic explanations assume that entrepreneurs weigh benefits and costs in their decisions about the implementation of HR policies and practices. In other words, they are believed to invest in their human resources if they believe this leads to a certain pay-off (in terms of performance or other desired organizational goals, such as employee satisfaction and loyalty). An economical explanation can for example be found in the study by Sels, De Winne, Delmotte, Maes, Faems and Forrier (2006). They show that investments in HRM are related to lower levels of turnover and higher productivity. Alignment explanations Alignment explanations emphasize the importance of fit between the parts that constitute an organization. This means that the strategy of the organization, the technology used, its size, and so forth need to be aligned internally and the organization as a whole needs to fit its external environment. According to alignment theories these arguments also hold for HRM: the different policies and practices need to be consistent, together they need to fit the rest of the organizations and they need to be aligned to the wider organizational environment. A study by Tafti, Mithas and Krishnan (2007) is an example of this explanation. They show that organizations aim to combine HR practices that strengthen each other, while at the same time they look for ways to align these practices to the overall information-technology strategy of the organization. Decision-making explanations Decision-making explanations take into account that choices within organizations are the result of the actions of different actors with their own interests. This also applies to decisions that are made with regard to HRM. Rather than effectiveness and efficiency, the main mechanism in these explanations is power. The HR policies and practices that organizations apply result from a struggle among parties trying to influence the outcome. Whereas economical explanations and alignment explanations assume that the outcomes are rational and that the outcome will be the best objectively, the decision-making explanation shows that this is not necessarily the case. Research by Foster and Harris (2005) illustrates this point. They investigate how organizations device their diversity policies. They argue that having policies to increase the diversity within organizations can be beneficial to these organizations. But, at the same time, many organizations do not adopt these policies. Foster and Harris (2005) show that managers play a vital role in this process. The way in which they handle potential contradictions that can result from having diversity policies affects whether and how such policies are used.

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Diffusion explanations Finally, diffusion explanations focus on legitimization processes. The main argument here is that by using specific HR policies and practices, organizations can be viewed as legitimate actors by others (such as financers, customers, governments and competitors). Here, the focus is on the macro level and the main question is how policies and practices within a country, region or sector diffuse. Murphy and Southey (2003) and Wu, Bacon en Hoque (2014) are examples of studies showing how issues of legitimization help to understand these diffusion processes. In both studies external factors were vital to the diffusion of innovative HR practices. HR practitioners making decisions about adopting (innovative) HRM perceive these external factors and take them into account. One of the main reasons for adopting these HR policies and practices lies in the presence of external networks (such as business advisory networks), showing that HR practitioners may indeed seek legitimacy in these networks by adopting certain practices. 2. Explaining how HRM contributes to innovation To a certain extent, it is possible to make a connection between the aforementioned theories and the approaches that link HRM and the innovativeness of organizations. For example, it can be argued that economic theories apply, because organizations apply certain practices to be able to provide innovative products or services or that allows them to be innovative in their marketing. The study by Cheng and Huand (2009) is an example of this. They argue that organizations that invest in strategic HRM are better able to manage their internal knowledge. This, in turn, has positive consequences for the extent to which these organizations are able to introduce novel innovations. In a similar manner, the other three theories may also be applied. Besides that, there are theoretical insights that can be distilled from the general literature about innovation. For example, the Resource Based View (RBV) (Barney 1991) and Resource Dependency Theory (RDT) (Pfeffer and Salancik 1970) link the availability of unique resources within organizations to their innovativeness. These theories provide an overall explanation why having access to the valuable resources supports organizational innovation. The RBV does so by arguing that organizations that manage to exploit resources that are hard to imitate by others have a competitive advantage. Their innovativeness is part of that advantage. RDT adds that organizational innovativeness depends on the extent to which organizations create links with actors in their environment to get access to valuable resources. These general frameworks that focus on resources can also be applied to HRM since people within organizations are such resources. Developing their skills and offering ways to optimize their work effort (through learning, employability and so on) are mechanisms through which HRM can contribute to the innovativeness of organizations.

Conclusion This research note provides an overview of the literature on innovative HRM. The main insight drawn from reviewing existing studies in this field is that innovative HRM is three distinct meanings: it may refer to innovation of HRM, HRM as a response to innovation and may be about how HRM contributes to organizational innovativeness. This insight has implications for research and for practice.

Implications for research Having a better grip on the concept of innovative HRM helps researchers in the field to position themselves. For those interested in investigating HRM innovation, it can be helpful to formulate their research aim more sharply. Hence, Table 1 also offers a tool to decide what not to include in a study. Besides that, the overview has theoretical implications concerning innovative HRM. It should be noted that the three approaches identified in Table 1 reflect research traditions with very little overlap. This means that they have largely developed separately from each other. Hence, to date, there is very little interaction between the three approaches that are discussed in this overview. It may be worthwhile to integrate these perspectives to get a better grip on technological innovation, HRM innovation and organizational innovation. We already touched upon the difference between radical and incremental innovation, which is common in innovation research. What can be added to that is that it is possible to combine several subthemes identified here to conceptualize organizations that are radical innovators in the field of HRM. Such a conceptualization would, for example, consist of organizations developing innovative HR policies and practices as a response to innovations in their external environment to reach high levels of organizational innovativeness. Such a full integration of the three research approaches reviewed in this article is not available in the literature yet. To date, we have limited information about that, because studies either focus on the link between technological innovation and innovative HRM, as reflected in the theories discussed under the heading “Explaining the adoption of innovative HRM” or they link HRM with organizational innovativeness, following arguments presented under the heading “Explaining how HRM contributes to innovation”. Theories integrating these approaches and perspectives will increase our understanding of these different kinds of innovation (technological, HRM, and organizational) and how they affect each other. One of the research questions following from such a conceptualization is what the consequences of such innovative organizations are for HR development. The present review may help researchers to expand in that direction. Furthermore, this review shows that Human Resource Development and innovative HRM are closely connected. Much of the HR policies and practices that are found in the different parts of the literature are geared towards development. HR instruments such as training and skill enhancement are often mentioned in the articles on innovative HRM. In that sense, HRM and HRD supplement each other. Whereas HRM focuses on the policies and practices of organizations, HRD examines whether they actually lead to learning and skill enhancement of employees. With an increasing emphasis on innovative HRM the question whether the HR policies and practices have an actual effect in terms of human resource development becomes more relevant than ever before. Given that technological changes will affect the workplace now and in the near future and that organizational innovativeness remains a source of competitive advantage, research integrating innovative HRM and HRD will provide one of the core explanations of organizational performance.

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Implications for practice For people active as HR managers, this literature review can also be of value. First, it can help them to clarify what they mean if they say that they want to be innovative. Starting from the three approaches that are identified here and the different subthemes related to them, HR practitioners should be able to have a more informed discussion about HRM innovation and how to achieve it. The studies reviewed here may serve as an inspiration for them how to design their innovative HR policies and practices. Secondly, it may also help practitioners to make informed choices about what they would like to innovate. What Table 1 also clarifies is that HRM innovation does not have to imply that organizations should always start from scratch. The three approaches can help to identify what needs the most attention in the organizations. And, in some cases adjusting existing policies and practices may be enough innovation to keep the organization and employees going.

References Agarwala, T. 2003. “Innovative Human Resource Practices and Organizational Commitment: An Empirical Investigation.” International Journal of Human Resource Management 14 (2): 175-197

Foster, C., and L. Harris. 2005. “Easy to Say, Difficult to do: Diversity Management in Retail.” Human Resource Management Journal 15 (3): 4-17. Frey, C. B., and M. A. Osborne. 2013. The Future of Employment. How Susceptible are Jobs to Computerisation? Oxford: Oxford Martin Publication. Gainey, T. W., and B. S. Klaas. 2013. “The Outsourcing of Training and Development: Factors Impacting Client Satisfaction.” Journal of Management 29 (2): 207-229. Greer, C. R., S. A. Youngblood, and D. A. Gray. “Human Resource Management Outsourcing: The Make or Buy Decision.” Academy of Management Executive 13 (3): 85-96. Huselid, M. A. 1995. “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance.” Academy of Management Journal 38 (3): 635-672. Koster, F. 2011. “Able, Willing and Knowing. The Effects of HR Practices on Commitment and Affort in 26 European Countries.” International Journal of Human Resource Management 22 (14): 2835-2851.

Appelbaum, E., T. Bailey, P. Berg, and A. L. Kalleberg. 2000. Manufacturing Advantage: Why High-Performance Work Systems Pay Off. Ithaca: Cornell University Press.

Koster, F., and R. P. M. Wittek. 2016. “Competition and Constraint. Economic Globalization and Human Resource Practices in 23 European Countries.” Employee Relations 38 (2): 286-303.

Autor, D., F. Levy, and R. Murnane. 2003. “The Skill Content of Recent Technological Change: An Empirical Exploration.” Quarterly Journal of Economic 11 (84): 1279-1334.

MacDuffie, J. P., and T. A. Kochan. 1995. “Do US Firms Invest Less in Human Resources? Training in the World Auto Industry.” Industrial Relations 34 (2): 147-168.

Barney, J. B. 1991. “Firm Resources and Sustained Competitive Advantage.” Journal of Management 17 (1): 99-120.

Marler, J. H., and S. L. Fisher. 2013. “An Evidence-Based Review of eHRM and Strategic Human Resource Management.” Human Resource Management Review 23 (1): 18-36.

Cassell, C., S. Nadin, M. Gray, and C. Clegg. 2002. “Exploring Human Resource Management Practices in Small and Medium Sized Enterprises.” Personnel Review 31 (6): 671-692. Chen, C. J., and J. W. Huang. 2009. “Strategic Human Resource Practices and Innovation Performance. The Mediating Role of Knowledge Management Capacity.” Journal of Business Research 62 (1): 104-114. Colakoglu, S., D. P. Lepak, and Y. Hong. 2006. “Measuring HRM Effectiveness: Considering Multiple Stakeholders in a Global Context.” Human Resource Management Review 16 (2): 209-218. Combs, J., Y. Liu, A. Hall, and D. Ketchen,. 2006. “How Much do High-Performance Work Practices Matter? A Meta-Analysis of Their Effects on Organizational Performance.” Personnel Psychology 59 (3): 501-528. Crossan, M. M., and M. Apaydin. 2010. “A Multi-Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature.” Journal of Management Studies 47 (6): 1154-1191.

Murphy, G. D., and G. Southey. 2003. “High Performance Work Practices: Perceived Determinants of Adoption and the Role of the HR Practitioner.” Personnel Review 32 (1): 73-92. Pfeffer, J., and G. R. Salancik. 1970. The External Control of Organizations: A Resource Dependence Perspective. New York: Harper and Row. Pouwels, I., and F. Koster. 2017. “Inter-Organizational Cooperation and Organizational Innovativeness. A Comparative Study.” International Journal of Innovation Science 9 (2): 184-204. Ruël, H., T. Bondarouk, and J. K. Looise. 2004. “E-HRM: Innovation or Irritation. An Explorative Empirical Study in Five Large Companies on Web-Based HRM.” Management Revue 15 (3): 364-380. Sels, L., S. De Winne, J. Delmotte, J. Maes, D. Faems, and A. Forrier. 2006. “Linking HRM and Small Business Performance: An Examination of the Impact of HRM Intensity on the Productivity and Financial Performance of Small Businesses.” Small Business Economics 26 (1): 83-101.

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Subramony, M. 2006. “Why Organizations Adopt Some Human Resource Management Practices and Reject Others: An Exploration of Rationales.” Human Resource Management 45 (2): 195-210. Tafti, A., S. Mithas, and M. S. Krishnan. 2007. “Information Technology and the Autonomy-Control Duality: Toward a Theory.” Information Technology and Management 8 (2): 147-166. Tansky, J. W., and R. Heneman, R. 2003. “Guest Editor’s Note: Introduction to the Special Issue on Human Resource Management in SMEs: A Call for More Research.” Human Resource Management 42 (4): 299-302. Ulrich, D., and J. H. Dulebohn. 2015. “Are we There Yet? What’s Next for HR?” Human Resource Management Review 252: 188-204.

Van den Berge, W., and B. Ter Weel. 2015. “De Impact van Technologische Verandering op de Nederlandse Abeidsmarkt, 1999-2014.” In De Robot de Baas. De Toekomst van Werk in het Tweede Machinetijdperk edited by R. Went, M. Kremer and A. Knottnerus, 89-112. Den Haag/Amsterdam: WRR/Amsterdam University Press. Went, R., and M. Kremer. 2015. Hoe we Robotisering de Baas Kunnen Blijven. Inzetten op Complementariteit. In De Robot de Baas. De Toekomst van Werk in het Tweede Machinetijdperk edited by R. Went, M. Kremer and A. Knottnerus, 23-41. Den Haag/Amsterdam: WRR/ Amsterdam University Press. Wu, N., N. Bacon, and K. Hoque. 2014. “The Adoption of HighPerformance Work Practices in Small Businesses: The Influence of Markets, Business Characteristics and HR Expertise.” International Journal of Human Resource Management 25 (8): 1149-1169.

Van Dalen, E. J., R. Gründemann, and S. De Vries. 2003. “Onderweg naar Morgen: Ontwikkelingen en hun Betekenis voor Toekomstig HRM.” Tijdschrift voor HRM 3: 63-92.

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Appendix A. Studies about innovative HRM included in the literature review 1.

Agarwala, T. 2003. “Innovative Human Resource Practices and Organizational Commitment: An Empirical Investigation.” International Journal of Human Resource Management 14 (2): 175-197.

13. Foster, C., and L. Harris. 2005. “Easy to Say, Difficult to do: Diversity Management in Retail.” Human Resource Management Journal 15 (3): 4-17.

Bartram, T. 2011. “Employee Management Systems and Organizational Contexts: A Population Ecology Approach.” Management Research Review 34 (6): 663-677.

14. Geary, J. F., and A. Dobbins. 2001. “Teamworking: A New Dynamic in the Pursuit of Management Control.” Human Resource Management Journal 11(1): 3-23.

Bell, B. S., S. W. Lee, and S. K. Yeung. 2006. “The Impact of e-HR on Professional Competence in HRM: Implications for the Development of HR Professionals.” Human Resource Management 45 (3): 295-308.

15. Guest, D., and N. Conway. 1999. “Peering into the Black Hole: The Downside of the New Employment Relations in the UK.” British Journal of Industrial Relations 37 (3): 367-389.

Bondarouk, T., J. K. Looise, and B. Lempsink. 2009. “Framing the Implementation of HRM Innovation: HR Professionals vs Line Managers in a Construction Company.” Personnel Review 38 (5): 472-491.

Cañibano, A. 2013. “Implementing Innovative HRM: Trade-Off Effects on Employee Well-Being.” Management Decision 51 (3): 643-660.

Cassell, C., S. Nadin, M. Gray, and C. Clegg. 2002. “Exploring Human Resource Management Practices in Small and Medium Sized Enterprises.” Personnel Review 31 (6): 671-692.

18. Jain, H., M. Mathew, and A. Bedi. 2012. “HRM Innovations by Indian and Foreign MNCs Operating in India: A Survey of HR Professionals.” International Journal of Human Resource Management 23 (5): 1006-1018.

Chen, C. J., and J. W. Huang. 2009. “Strategic Human Resource Practices and Innovation Performance. The Mediating Role of Knowledge Management Capacity.” Journal of Business Research 62 (1): 104-114.

19. Jiang, K., D. P. Lepak, K. Han, Y. Hong, A. Kim, and A. L. Winkler. 2012. “Clarifying the Construct of Human Resource Systems: Relating Human Resource Management to Employee Performance.” Human Resource Management Review 22 (2): 73-85.

Chen, Y., G. Tang, J. Jin, Q. Xie, and J. Li. 2014. “CEOs’ Transformational Leadership and Product Innovation Performance: The Roles of Corporate Entrepreneurship and Technology Orientation.” Journal of Product Innovation Management 31 (S1): 2-17.

20. Jones, D. C., P. Kalmi, and A. Kauhanen. 2010. “Teams, Incentive Pay, and Productive Efficiency: Evidence from a FoodProcessing Plant.” Industrial & Labor Relations Review 63 (4): 606-626.

De Leede, J., and J. K. Looise. 2005. “Innovation and HRM: Towards an Integrated Framework.” Creativity and Innovation Management 14 (2): 108-117.

21. Keltner, B., and D. Finegold. 1996. “Adding Value in Banking: Human Resource Innovations for Service Firms.” MIT Sloan Management Review 38 (1): 57-68.

10. Decramer, A., C. Smolders, A. Vanderstraeten and J. Christiaens. 2012. “The Impact of Institutional Pressures on Employee Performance Management Systems in Higher Education in the Low Countries.” British Journal of Management 23 (S1): S88-S103.

22. Khatri, N., A. Baveja, N. M. Agrawal, and G. D. Brown. 2010. “HR and IT Capabilities and Complementarities in KnowledgeIntensive Services.” International Journal of Human Resource Management 21 (15): 2889-2909.

11. Eaton, S. C. 2000. “Beyond ‘Unloving Care’: Linking Human Resource Management and Patient Care Quality in Nursing Homes.” International Journal of Human Resource Management 11 (3): 591-616.

23. Koulikoff-Souviron, M., and A. Harrison. 2010. “Evolving HR Practices in a Strategic Intra-Firm Supply Chain.” Human resource management 49 (5): 913-938.

12. Felstead, A., and D. Ashton. 2000. “Tracing the Link: Organisational Structures and Skill Demands.” Human Resource Management Journal 10 (3): 5-21.

16. Holden, R., V. Smith, and D. Devins. 2003. “Using ‘EmployeeLed Development’ to Promote Lifelong Learning in SMEs: A Research Note.” Human Resource Development International 6 (1): 125-132. 17. Holtbrügge, D., C. B. Friedmann, and J. F. Puck. 2010. “Recruitment and Retention in Foreign Firms in India: A ResourceBased View.” Human Resource Management 49 (3): 439-455.

24. Laursen, K., and N. J. Foss. 2003. “New Human Resource Management Practices. Complementarities and the Impact on Innovation Performance.” Cambridge Journal of Economics 27: 243-263.

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25. Lengnick-Hall, M. L., C. A. Lengnick-Hall, L. S. Andrade, and B. Drake. 2009. “Strategic Human Resource Management: The Evolution of the Field.” Human Resource Management Review 19 (2): 64-85.

37. Siddique, C. M. 2004. “Job Analysis: A Strategic Human Resource Management Practice.” International Journal of Human Resource Management 15 (1): 219-244.

26. MacDuffie, J. P., and T. A. Kochan. 1995. “Do US Firms Invest Less in Human Resources? Training in the World Auto Industry.” Industrial Relations 34 (2): 147-168.

38. Som, A. 2007. “What Drives Adoption of Innovative SHRM Practices in Indian Organizations?” International Journal of Human Resource Management 18 (5): 808-828.

27. Martin-Rios, C. 2014. “Why do Firms Seek to Share Human Resource Management Knowledge? The Importance of Inter-Firm Networks.” Journal of Business Research 67 (2): 190-199.

39. Som, A. 2012. “Organizational Response Through Innovative HRM and Re-Design: A Comparative Study from France and India.” International Journal of Human Resource Management 23 (5): 952-976.

28. McDonnell, A., P. Stanton, and J. Burgess. 2011. “Multinational Enterprises in Australia: Two Decades of International Human Resource Management Research Reviewed.” Asia Pacific Journal of Human Resources 49 (1): 9-35.

40. Srinivasan, V., and R. Chandwani. 2014. “HRM Innovations in Rapid Growth Contexts: the Healthcare Sector in India.” International Journal of Human Resource Management 25 (10): 15051525.

29. Morris, S. S., and S. A. Snell. 2011. “Intellectual Capital Configurations and Organizational Capability: An Empirical Examination of Human Resource Subunits in the Multinational Enterprise.” Journal of International Business Studies 42: 805-827.

41. Stavrou, E. T. 2005. “Flexible Work Bundles and Organizational Competitiveness: A Cross-National Study of the European Work Context.” Journal of Organizational Behavior 26 (8): 923-947.

30. Muduli, A. 2015. “High Performance Work System, HRD Climate and Organisational Performance: An Empirical Study.” European Journal of Training and Development 39 (3): 239-257.

42. Tafti, A., S. Mithas, and M. S. Krishnan. 2007. “Information Technology and the Autonomy-Control Duality: Toward a Theory.” Information Technology and Management 8 (2): 147-166.

31. Murphy, G. D., and G. Southey. 2003. “High Performance Work Practices: Perceived Determinants of Adoption and the Role of the HR Practitioner.” Personnel Review 32 (1): 73-92.

43. Wolfe, R., P. M. Wright, and D. L. Smart. 2006. “Radical HRM Innovation and Competitive Advantage: The Moneyball Story.” Human Resource Management 45 (1): 111- 145.

32. Ng, I., and A. Dastmalchian. 2011. “Perceived Training Benefits and Training Bundles: A Canadian Atudy.” International Journal of Human Resource Management 22 (4): 829-842.

44. Wu, N., N. Bacon, and K. Hoque. 2014. “The Adoption of High Performance Work Practices in Small Businesses: The Influence of Markets, Business Characteristics and HR Expertise.” International Journal of Human Resource Management 25 (8): 11491169.

33. Oladapo, V. and G. Onyeaso. 2013. “An Empirical Investigation of Sub Dimensions of High Performance Work Systems that Predict Organizational Innovation.” International Journal of Management and Marketing Research 6 (1): 67-79. 34. Ollier-Malaterre, A., T. McNamara, C. Matz-Costa, M. PittCatsouphes, and M. Valcour. 2013. “Looking up to Regulations, Out at Peers or Down at the Bottom Line: How Institutional Logics Affect the Prevalence of Age-Related HR Practices.” Human Relations 66 (10): 1373-1395. 35. Sahdev, K., S. Vinnicombe, and S. Tyson. 1999. “Downsizing and the Changing Role of HR.” International Journal of Human Resource Management 10 (5): 906-923.

45. Zhang, M., D. Di Fan, and C. J. Zhu. 2014. “High-Performance Work Systems, Corporate Social Performance and Employee Outcomes: Exploring the Missing Links.” Journal of Business Ethics 120 (3): 423-435. 46. Zheng, C., G. O’Neill, and M. Morrison. 2009. “Enhancing Chinese SME Performance Through Innovative HR Practices.” Personnel Review 38 (2): 175-194. 47. Zhou, Y., Y. Hong, and J. Liu. 2013. “Internal Commitment or External Collaboration? The Impact of Human Resource Management Systems on Firm Innovation and Performance.” Human Resource Management 52 (2): 263-288.

36. Sels, L., S. de Winne, S, J. Delmotte, J. Maes, D. Faems, and A. Forrier. 2006. “Linking HRM and Small Business Performance: An Examination of the Impact of HRM Intensity on the Productivity and Financial Performance of Small Businesses.” Small Business Economics 26 (1): 83-101.

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