Juhana Peltonen

Selective or Parallel? Toward Measuring the Domains of Entrepreneurial Bricolage

Abstract Entrepreneurial bricolage has been proposed as a method of alleviating resource constraints of entrepreneurial firms. However, the outcomes of bricolage for a firm may vary greatly. One of the most pressing issues is to clarify how bricolage may enhance firm growth. Based on case studies, Baker and Nelson (2005) propose that applying bricolage in limited areas (“selective bricolage”) may enable firms to grow, whereas excessive (“parallel”) bricolage may lead to the opposite outcome. However, the process of testing the generalizability of this relationship using quantitative methods has just begun. In this chapter, we describe our efforts to develop a scale that measures bricolage manifestation in firms by using the “environmental domains” of Baker and Nelson (2005) to facilitate quantitative testing of the bricolage–growth relationship.

Internationalization of Software Firms

This paper presents the results of a large sample survey of internationalizing firms in the Finnish software industry. We analyze the data descriptively with plots and tabulations and as more analytically with regression analyses. The results support the conclusion that internationalization can be considered as a natural stage in the firm life-cycle, but patterns of internationalization differ across firms. Considering the current theorizing of software firms as prototypical international new ventures, we find it surprising that many firms seem to choose to internationalize only a little and gradually.

Board Interlocks in High Technology Ventures: The Relation to Growth, Financing, and Internationalization

The significance of boards of directors is often considered minor in unlisted companies due to the low degree of agency problems. Research on the topic has also been limited due to data access issues. However, networks are essential to the success of internationalizing new ventures and interlocked boards of directors have the potential to act as important information and resource conduits. To improve understanding on these dynamics, we performed an exploratory cluster analysis on board interlocks of Finnish software companies using board data we obtained from the Finnish Trade Registry and a custom survey. Our results indicate that companies that have international revenue are often interlocked with each other. In addition, companies without international revenue plan to internationalize if they have an interlock to a company that has international revenue. Our results are mirrored against management theory and future research is outlined.

Examining the Effects of Agile Methods and Process Maturity on Software Product Development Performance

This paper examines the effects of agile methods and software process maturity on software product development performance. Through a mail survey, we obtained data from 72 small and medium-sized software firms that predominantly were not CMMI-certified. Findings from our partial least squares analysis suggest that the use of agile methods has a positive impact on product development efficiency and effectiveness, but CMMI practices do not have this effect. Our results suggest that software process improvement initiatives in software product firms create the highest benefits through first adopting agile methods and only then moving on to implementing CMMI-like process improvement initiatives.

Behavioral theory of the networked firm in value network environment: Foundations and a preliminary approach

Theoretical foundations are presented for the construction of a Behavioral Theory of the Networked Firm (BTONF) and considered within the context of the firms value networks. Different basic network candidate models are used to reveal relevant firm behaviors. The approach suggests requirements for the BTONF and guidelines for discovering the fundamental behavioral elements of the networked firm.

Value capture and value creation in high-velocity networked environments

The core function of any profitable firm is capturing a share of the value that customer perceives in the firms offering. Value capture is traditionally considered to relate to a competitive advantage at the firm level, but not the firm network level. However, the ever increasing role of information and knowledge in todays economy is profoundly changing how firms can create competitive advantages. Among these changes, we highlight reducing transaction costs in various areas of the economy, which drives the economy to organize more toward rapidly evolving networks or smaller firms. There is also an opposite trend for some internet firms to become larger due to economies of scale and due to network externalities. In this position paper, we examine the issue of value capture by firms that are increasingly small and operate in rapidly changing and evolving networks. We conclude by outlining future research on firm-level capabilities that are required to enable value capture in new forms of dynamic networks.

The Case for Software Business as a Research Discipline

Software industry has served as an important empirical setting for research in management. Subsequently, some scholars have proposed that software business constitutes or is poised to become its own research discipline or topic area. We argue that this is without solid grounding: First, there is a lack of evidence behind this claim, and some of the favoring arguments are simply fallacious. Second, there seems to be a misunderstanding of what constitutes a research discipline. Third, proponents of this thesis apparently ignore much of extant research in relevant disciplines and other research fields. In our view, the case for a software business discipline has been fueled by knowledge transfer problems between researchers primarily identifying with software business and mainstream management research. We conclude that software business does not constitute a discipline of its own and it is highly unlikely that this will ever happen.

The role of knowledge-intense high-impact firms in city innovation systems

Abstract Past studies on city innovation systems acknowledge the important role of firms, but rarely study them explicitly. This paper shifts attention to the firm level, and proposes that knowledge-intensive high-impact firms are especially important in shaping the economic development of local economies by creating industry-specific micro pathways. This argument follows from their central role in city innovation systems: we propose that knowledge-intense high-impact firms (KIHIFs) have a relatively high absorptive capacity and therefore make better use of knowledge spillover, but also play a role in distributing international knowledge spillover in return. To empirically investigate this thesis, we examine firms operating in the computer-programming activities, and engineering and technical consultancy industries in the capital area surrounding Helsinki, Finland. In line with our theoretical arguments, we find that the relative within-industry concentrations and rates of internationalisation of KIHIFs vary greatly over small geographic distances. Future research and implications for policy-makers are discussed.

On the behavioral theory of the networked firm

Theoretical foundations are presented for the construction of a Behavioral Theory of the Networked Firm (BTONF). Basic network candidate models are described as lenses to firm behavior and their theoretical and practical contribution is evaluated. The approach outlines the challenges and requirements for the BTONF and offers guidelines for discovering the fundamental behavioral elements of the networked firm, especially in the dynamic value network environments.

Peer-to-Peer Service Quality in Virtual Communities

Virtual communities are an increasingly popular way to conduct business over the Internet. However, from the service provider’s point of view they pose special challenges. In particular, unless the provider itself engages in content or service provision, the service relies entirely on its members for provision of services. The members should thus be seen as resources for service provision. This type of networked service production system implies challenges in terms of service quality management and, subsequently, value creation for community members. This paper explores these issues by revisiting service marketing and service operations literature on service quality. Analysis of the literature indicates that firms facilitating virtual communities need to ensure the quality of their service by not only ensuring technical quality but also by nurturing the social aspects of the community that have an impact on the willingness of community members to provide service to each other.