Oswald Jones

Conceptualizing the Learning Process in SMEs Improving Innovation through External Orientation

Most attempts to model the process of organizational learning (OL) are based on large organizations. This article represents an attempt to better understand the unique learning processes in small and medium-sized enterprises (SMEs). Such firms are generally limited in both their managerial capabilities and mechanisms for accessing knowledge from external sources. Data were obtained as part of an ongoing Economic and Social Research Council (ESRC) project concerned with the evolution of business knowledge in small firms operating in the North West of England. A conceptual framework was developed and used as the basis for analysing data obtained from interviews with 26 owner-managers. Our findings indicate two distinct groups, which we term innovative and stable firms. Owner-managers in ‘stable’ firms were inward facing, and learning was generally experiential and concentrated on single individuals or small groups. In contrast, owner-managers in innovative firms were outward facing and encouraged the development of ‘deeper and wider’ learning.

Developing absorptive capacity in mature organizations : the change agent’s role

A considerable amount of research into how organizations absorb new knowledge was prompted by the work of Cohen and Levinthal. In a recent literature review Zahra and George identify two distinct elements of absorptive capacity (potential and realized). This article contributes to the study of managerial agency in the absorption of new knowledge and skills. Zahra and George’s model is extended to incorporate key roles associated with knowledge transfer, including gatekeepers, boundary spanners and change agents. Empirical data are drawn from a longitudinal study of a mature manufacturing firm based in North Wales. Change was initiated by the owner in response to the loss of the company’s major customer—the Ministry of Defence. The main change agent was a recently recruited middle manager who used his mass production experience to improve managerial communications and introduce more efficient working practices to the shopfloor.

Building social capital through action learning: an insight into the entrepreneur

According to Woolcock, social capital can be defined as the “norms and networks facilitating collective action for mutual benefit”. Furthermore, Gabbay and Leenders suggest that social capital offers some potential for integrating the proliferation of network research that has been developed over the last 30 years. Examines an innovatory partnership between Manchester Metropolitan University Business School (MMUBS) and a number of agencies including the Princes Trust to provide skills to entrepreneurs from socially disadvantaged backgrounds. The New Entrepreneur Scholarship Scheme (NESS) was the result of an initiative by the Chancellor Gordon Brown to encourage higher education institutes to make a larger contribution to the UKs entrepreneurial culture. MMUBS piloted the first NESS programme for 18 nascent entrepreneurs. It was decided to adopt an “action‐learning” approach concentrating on the development of a realistic business idea as well as creating a supportive environment within the group. This intervention has aided NESS participants by building and strengthening networks that become the basis of their social capital.

Resourcing new businesses: social networks, bootstrapping and firm performance

It is commonly reported that new businesses have difficulty in accessing finance. Such businesses can engage in ‘bootstrapping’ activities as a way of compensating for the lack of finance and other resources. This paper extends prior research on start-up finance by investigating how social networks can help new ventures to acquire bootstrapped resources and how these resources influence business performance. Based on theoretical considerations, the paper proposes a framework linking social networks and bootstrapping activities to the performance of firms during the early stages of operation. The model is tested using structural equation modelling. Results obtained from the longitudinal study based on a sample of 211 entrepreneurs indicate that social networks play a key role in the acquisition of bootstrapped resources. The study differentiates between the roles of strong ties, weak ties and brokerage in accessing three different types of bootstrapped resources: payment related, owner related and joint utilisation techniques. Furthermore, bootstrapped resources make a direct impact on firm performance as well as mediating the impact of social networks. It is suggested that the results of this study have significant implications for scholarly interest in business start-ups as well as those involved with supporting nascent entrepreneurs.

Innovation management as a post-modern phenomenon : the outsourcing of pharmaceutical R&D

The institutionalization of R&D by large, modern organizations is regarded as one of the most significant social and economic factors of the twentieth century. In recent years post-modern organizations have begun to replace bureaucratic control with market control. This approach is particularly attractive in the case of R&D employees who have been relatively successful in resisting direct managerial control. Government statistics are used to demonstrate that external R&D increased from 5% to 16% of internal R&D expenditure between 1989 and 1995. This trend is examined in the context of consolidation within the UK pharmaceutical industry, which has considerable implications for the sustainability of high-technology industry in the UK.

Learning in owner-managed small firms: Mediating artefacts and strategic space

The authors focus on the way in which owner-managers in smaller firms improve their businesses through the creation of ‘strategic space’. The term ‘strategic space’ refers to the process by which owner-managers are able to access resources, motivation and capability to review existing practices. The starting point is the owner-managers human capital and their capacity to engage in critical reflection about their business. We highlight three concepts central to the creation of strategic space, first, social capital, which refers to the network relationships that provide access to a wide range of resources and information. Second, absorptive capacity, which describes the way in which organizational members identify, acquire and utilize knowledge from external sources. Third, mediating artefacts, which represent existing knowledge but also facilitate the translation and transformation of understanding within and between communities of practice. This process is essential to the renewal of knowledge and knowing within firms. The contribution this paper makes is to bring together these elements – human and social capital, absorptive capacity and mediating artefacts – to offer a conceptual model that illustrates the mechanism by which owner-managers create strategic space. This model provides a deeper understanding of the evolution of knowledge in smaller organizations.

Evaluating failure in the innovation process: the micropolitics of new product development

For almost 40 years academics from a wide range of disciplinary backgrounds have sought to improve our understanding of the innovation process. In this paper, we examine the contribution made by those such as Kotler who have attempted to describe a rational approach to New Product Development (NPD). We argue that such frameworks offer a view of organisational activity which substantially understates the political activity associated with managing the innovation process. Most of those writing from a marketing perspective acknowledge external political influences such as government policies and the leverage of ‘special interest groups’. We focus on the work of Burns and Stalker who clearly recognised the way in which internal political struggles to access resources or to improve career prospects impact on innovation. To analyse the role of micropolitics in the NPD process we describe the case of WEL, a medium-sized manufacturing firm, as managers and engineers attempted to develop an important new product. We conclude that it is essential to incorporate the role of internal politics into any framework which claims to offer a realistic account of NPD.

Human Resources, Scientists, and Internal Reputation: The Role of Climate and Job Satisfaction

This paper identifies the factors which determine the human resources reputation of firms involved in R&D. Reputation in this context refers to the extent to which employees regard their organization as a “good” place to work. The sample of 402 respondents was drawn from ten science-based firms. In terms of age, educational qualifications, and years of experience, the sample was representative of scientists employed in the ten organizations. Reputation is regarded as being of importance both conceptually and practically. Organizational reputation has been widely referred to in the literature, but it has not been consistently defined nor its determinants investigated systematically. Innovatory climate and job satisfaction are identified as the main determinants of reputation among R&D scientists.

Entrepreneurial potential: The role of human and cultural capitals

Empirical evidence for links between human capital and entrepreneurship potential is equivocal despite a wide range of studies. This research draws on prospective longitudinal data from the National Child Development Study (NCDS) to offer new theoretical perspectives and empirical evidence on the human capital predictors that drive entrepreneurship. The results suggest that start-up is more likely for those who demonstrate higher levels of analytical and creative abilities in childhood, benefit from a supportive family background, invest in their human capital through diverse and longer work experience and have accrued a solid basic education, albeit not strongly credentialed. This article contributes to a better understanding of human capital acquisition during the unfolding entrepreneurial life-course. Mediators and moderators of the relationship between education, human capital and entrepreneurship are also identified by accentuating the importance of family processes. In doing so, this study bridges the human capital and cultural capital literatures that have tended to evolve on separate tracks.

Object-mediated Learning and Strategic Renewal in a Mature Organization

Knowledge transformation between practice-based communities is reported through a 2-year longitudinal case study. The company, PresMed, was transformed from a moribund and divided organization to one where different practice-based communities engaged in collective learning. However, the transformation involved conflict, politics and power to overcome the influence of localized and embedded knowledge. The nature of practice-based learning means investment in past activities and different organizational communities create tensions. It is suggested that mediating artefacts, or boundary objects, provide an opportunity to develop new shared conceptions of activity and new modes of action. However, at the heart of this transformation, communication, politics and power are central to pragmatic engagement in new practices. Thus, it is the social activities and the political will and skill to influence, cajole and institutionalize systemic changes and not the artefacts or objects per se that are at the heart of knowledge transformation.