David B. Balkin

Inventors and New Venture Formation: The Effects of General Self-Efficacy and Regretful Thinking

This research assesses two individual differences—general self–efficacy and regretful thinking—in the context of technological innovation. Results, obtained from a random sample of 217 patent inventors show that both general self–efficacy and regretful thinking distinguish inventors who started a business (i.e., technological entrepreneurs) from inventors who did not start a new business (i.e., technological nonentrepreneurs). More to the point, patent inventors, who at the time of our survey were actively involved in new business formation, tended to have significantly higher self–efficacy. Also, while technological entrepreneurs tended to have stronger regrets about business opportunities, technological nonentrepreneurs tended to have stronger regrets regarding career and education decisions. The two groups did not differ in terms of the quantity of these regrets. Implications for theory, practice, and future study of individual differences in entrepreneurship are discussed.

IS CEO PAY IN HIGH-TECHNOLOGY FIRMS RELATED TO INNOVATION?

This study uses the resource-based view of the firm and agency theory to examine the relationship between innovation and CEO pay in 90 high-technology firms. With firm size, performance, and other ...

GAINSHARING AND MUTUAL MONITORING: A COMBINED AGENCY-ORGANIZATIONAL JUSTICE INTERPRETATION

This study examines the behavioral consequences of “gainsharing” using a theoretical framework that includes elements of agency and organizational justice theory. We propose that when gainsharing is used as a collective form of incentive alignment, mutual monitoring among employees is a direct function of procedural and distributive fairness. The hypothesis was supported in a quasi-experimental field study of 221 employees working for two firms. The implications of the study for future extensions of agency theory to intraorganizational phenomena are discussed.

Entrepreneurship from the Ivory Tower: Do Incentive Systems Matter?

There has been a paucity of research to date that has explored whether incentive systems—in the form of monetary payments to inventors, their department or institution, or to university technology transfer office (UTTO) personnel—affect entrepreneurial activities at U.S. universities. To shed light on whether financial incentives to scientists, their departments, and UTTO personnel effect entrepreneurial activity, we used both qualitative data (structured interviews with 128 UTTO directors) and quantitative data from surveys and databases available on the web. Our results show surprisingly and opposite to our theoretical predictions that incentives to scientists and to their departments are negatively related to entrepreneurial activity. In addition and consistent with theory-based predictions, pay to UTTO personnel is positively related to entrepreneurial activity. We conclude with a discussion that offers some implications to research, practice, and theory in the field of technology transfer.

The Role of Organizational Justice in Pay and Employee Benefit Satisfaction, and Its Effects on Work Attitudes

The objective of our study is to provide a complementary approach with regard to organizational justice in the domain of compensation. It presents research undertaken on a sample of 285 employees in three different Canadian organizations. The results reveal that employees distinguish clearly between pay satisfaction and benefit satisfaction, and that distributive justice perceptions are better predictors of pay satisfaction than procedural justice perceptions. This result is reversed for employee benefit satisfaction: Procedural justice perceptions are better predictors than distributive justice perceptions. Lastly, the results show that distributive justice perceptions with regard to pay play a more important role than procedural justice in job satisfaction and satisfaction with the organization.

Influence of venture capitalists on high tech management

Abstract The use of venture capital to finance high technology firms has increased dramatically in recent years. Venture capitalists often decide which high tech firms will receive financial backing; once financing is approved, they may exercise a great deal of influence on the firms management. This study investigates the role of the venture capitalist in the management of the high tech firm. A body of literature on institutional power and organizational dependence is used as the theoretical framework for this research. Attention is directed toward the nature of venture capital influence, extent of influence, and factors moderating that influence. Results show that venture capitalists are deeply involved in establishing policies and monitoring managerial activities in high tech firms. The extent of influence is moderated by such factors as stage in the organizational life cycle, size of the venture capitalist, lead position of the venture capitalist, perceived firm performance, and background of entrepreneur.

Is Nepotism Good or Bad? Types of Nepotism and Implications for Knowledge Management

In contrast to the literature that portrays nepotism as generally problematic, we develop a conceptual model to explain why some family firms benefit from nepotism while others do not. We distinguish two types of nepotism based on how nepots are chosen. We elaborate the differences between entitlement nepotism and reciprocal nepotism. We propose that reciprocal (vs. entitlement) nepotism is associated with three family conditions that indicate generalized (vs. restricted) social exchange relationships between family members. We also suggest that generalized social exchanges are valuable to firms because they facilitate tacit knowledge management that can lead to competitive advantage.

Governing the innovation process in entrepreneurial firms

Abstract We challenge the implicit assumption that entrepreneurs are the sole owners of their young firms and we suggest that because cutting-edge innovation projects are complex, they create substantial information asymmetry between entrepreneurs and their investors. Linking previous research on governance, entrepreneurship, and innovation, we ask what forms of governance and incentive systems are conducive to spur and implement innovation among young entrepreneurial firms. Using agency theory and building on the rich literature on governance, we make eight practical suggestions regarding the governance of young entrepreneurial firms. We suggest that early and effective governance systems may help entrepreneurs and investors work in alignment with each others best interests.

Goal orientations and the motivation to share knowledge

Purpose – The purpose of this paper is to develop a model that takes into account both personal and contextual factors in explaining individuals’ motivation to share their knowledge. Design/methodology/approach – Drawing from research on achievement motivation and social exchange, it is posited that goal orientations provide a framework for individuals’ knowledge sharing by shaping how they cognitively value the costs and benefits associated with sharing their knowledge. It is argued each of the goal orientations is associated with preferences for sharing specific types of knowledge and is that a focus on different aspects of the knowledge provider-recipient relationship. Research limitations/implications – The model provides a possible explanation for some of the inconsistencies in existing knowledge-sharing research on the factors that motivate knowledge sharing as well as expanding understanding of the conditions that facilitate knowledge sharing.

Downsizing without downgrading: learning how firms manage their survivors

Provides a literature synthesis on the impact of downsizing on the survivors and examines the experiences of three large Canadian companies. Results confirm trends that are generally reported in the literature regarding the negative aspects of downsizing. It suggests that where the company had a clear strategy to implement the downsizing, which included scheduling and a well‐specified operational plan, the impact on those dismissed as well as the survivors was buffered. The use of a downsizing plan also mitigated the negative responses on behalf of the remaining personnel. On the other hand, when the company adopts a reactive approach towards the downsizing process, numerous problems associated with the survivors are reported. The firm that applied seniority to layoff decisions received more favorable responses than firms that used criteria other than seniority.