J. Open Innov. Technol. Mark. Complex., Volume 5, Issue 1 (March 2019) – 20 articles

Despite a growing interest in the effects of arts-based interventions on organizational change, concepts aiming at business innovation and product development other than residencies are rare. Furthermore, little is known about the role and impact of artists involved in idea-generating formats. How does the personal presence of artists in a heterogenous working group influence the procedure? To what extent do artists unfold their creative qualities while dealing with such a non-artistic challenge? The paper introduces a method named Art Hacking that applies professional labour attitudes typical for artists and artistic modes of thinking to business problems and enhances the approach by having artists attend the whole intervention. One of these events was taken as a case for exploring the role of four artists in the collective idea-generation process. The results of participatory observation along critical incident technique substantiate the thesis that in interdisciplinary “playgrounds” artists implicitly become process leaders. They are catalysts for awareness, sensemaking and change of perspective. Full article

The role of venture capital as mediator and gatekeeper is well acknowledged and geographical barriers for open innovation have been questioned, but venture capital firms’ distant investments have been investigated only rarely. The strategic benefits accrued from corporate venture capital (CVC) investment depend on the selection of target ventures. Prior research, however, overlooked the incurred information cost for identifying a potential target. Considering that innovative ventures often reside in distant locations, this paper aims to investigate what factors alleviate the information cost for CVCs when identifying target ventures in distant locations. We expect a CVC’s target selection in distant locations will be limited to the ventures under a tight appropriability regime, ventures within the same industries as a CVC’s business units, and ventures with pre-existing investors that a CVC has prior ties with. The hypotheses are tested with the data on CVC investments in the U.S. between 2006 and 2013. The results empirically support the hypotheses. Full article

To gain the potential benefit of autonomous intelligent systems, their design and development need to be aligned with fundamental values and ethical principles. We need new design approaches, methodologies and processes to deploy ethical thought and action in the contexts of autonomous intelligent systems. To open this discussion, this article presents a review of ethical principles in the context of artificial intelligence design, and introduces an ethical framework for designing autonomous intelligent systems. The framework is based on an iterative, multidisciplinary perspective yet a systematic discussion during an Autonomous Intelligent Systems (AIS) design process, and on relevant ethical principles for the concept design of autonomous systems. We propose using scenarios as a tool to capture the essential user’s or stakeholder’s specific qualitative information, which is needed for a systematic analysis of ethical issues in the specific design case. Full article

Culture is a key driving force in enhancing organizational performance. The results of recent studies indicate the importance of managers having the capacity to understand organizational culture and link it to organizational performance improvement. This study aims to examine the relationship between organizational culture and performance improvement in social enterprises. In the past, organizational culture was described in terms of a single dimension, but it is now understood that different cultures reflect different values and beliefs, in a seemingly contradictory manner, and can coexist within any given organization. We analyze the relationships among social enterprise networking, performance, and organizational culture, using the four organizational culture classifications of the competing values framework, which reflects recent perspectives. A survey was conducted among 100 social entrepreneurs, and latent profile analysis was applied to the data. The analytical results identify four latent profiles—namely, strong-balanced, weak-balanced, hierarchical, and group-dominant—and show that a balanced culture fosters high-level socioeconomic performance. Full article

Integrating the relational approach and social exchange theory, the authors conceptualize the quality of leader‒member and team member exchanges as mediators for understanding the role of transformational leadership in employee proactive behaviors (e.g., voice, taking charge, and innovative behaviors). The results based on data collected from 352 full-time employees working in pharmaceutical companies in Vietnam largely support the proposed theoretical framework and shed light on the mechanism through which leadership style influences employee proactivity in a manufacturing context. Using the results, the authors discuss research limitation and, managerial implications, and suggest future research directions for the relationship between leadership style and employee proactive behavior. Full article

Changes in workplace demographics in the oil and gas industry have raised a concern about the risks of a knowledge-loss crisis due to mass retirement. The industry response has often consisted of strategies aimed at mapping knowledge across organizational units, codifying knowledge in databases, and mentoring new staff. However, such common managerial responses show important limitations in terms of grasping tacit and network-based dimensions of knowledge in complex oil production operations. Therefore, there is an industrial need for innovative knowledge management practices. In this conceptual article, we look at the knowledge-loss crisis from the perspective of network resilience in complex systems. A central assumption here is that it is important to look at retiring staff not only in terms of their explicit knowledge, but also in relation to their roles in evolving networks of interactions. Why do some social systems adapt to the departure of some individuals, recover from eventual knowledge-loss crises, and keep performing its functions? From an anticipatory logic, network analysis may show the initial conditions of a system and identify possible loss scenarios. From an adaptive logic, network analysis may inform interventions aimed at facilitating processes of interactions from which new knowledge may emerge and spread. Integrated operations may be a step in this direction. Full article

In the last few years, the monstrous fan has gained attention in this country for large space buildings and areas. The continuity of this product technology is important to allow it to be able to survive in the current and future market. However, there are limited studies on the present and future scenario of the monstrous fan, especially in Malaysia. Thus, the objective of this paper is to forecast its present technology, evaluating the market demand and future of the monstrous fan. For these reasons, an online survey was used to obtain feedback from suppliers and manufacturers to forecast the future of this product. In conclusion, the monstrous fan has been discussed and predicted, which can be beneficial for various parties including policy makers, government, business and technology players by representing a specific knowledge on the technical specificities of monstrous fans in Malaysia. Full article

Public R and D management agencies have been taking on key roles in the national R and D ecosystem. The purpose of this study is to suggest ways to improve the operational efficiency of public R and D management agencies based on analysis of their current status. We approached this study from a life-cycle perspective as it applies to the plan-management evaluation of R and D. Data-collection sources included documents, surveys, and interviews with staff members in agencies responsible for national R and D management. Based on the analysis results, we present suggestions for improvement in three areas: (a) unification of R and D planning and evaluation of individual ministries; (b) establishment of a panministerial management system for public R and D management agencies; (c) improvement and development of public R and D agencies’ expertise and management services. Finally, we discuss possible improvements and the limits of this study. Full article

Despite the widespread agreement on the importance of dynamic capabilities to the success of mergers and acquisitions, little is known about how these capabilities may contribute to the business model’s innovation of an acquirer. The purpose of the paper is to clarify the role of dynamic capabilities in business model innovation of acquirer’s company in mergers and acquisitions of technology-advanced firms. Empirically, the author examined the role of dynamic capabilities in the transformation of operationalized components of the business model of the two acquirers (Samsung and Microsoft) by means of the acquisition of technology-advanced firms (Harman and LinkedIn) in 2016. Drawing on extensive qualitative data, the author developed a practice-driven model as a practical guide for scholars who have been studying dynamic capabilities and business models, as well as for those who are new to the field. The resulting model advances the discourse on dynamic capabilities. The presented conceptual model encourages practitioners to grasp an exact relationship between the micro-foundations of each perspective. Overall, the paper deepens the conversation at the nexus of dynamic capabilities and business model innovation in pursuing a new customer value proposition in the merger and acquisition processes and thereby exploiting a competitive advantage. Full article

This paper considers a carbon emission cap and trade market, where the carbon emission cap for each entity (either government or firm) is allocated first and then the carbon trading price is decided interdependently in the carbon trading market among the non-cooperative entities which make their production decision. We assume that there are n entities emitting carbon during the production process. After allocating the carbon (emission) cap for each participating entity in the carbon cap and trade market, each participant makes a production decision using the Newsvendor model given carbon trading price determined in the carbon trading market and trades some amount of its carbon emission, if its carbon emission is below or above its own carbon cap. Here, the carbon trading price depends on how carbon caps over the entities are allocated, since the carbon trading price is determined through the carbon (emission) trading market, which considers total amount of carbon emission being equal to total carbon caps over entities and some fraction of total carbon emission should be from each entity participating in the carbon cap and trade market. Thus, we can see the interdependency among the production decision, carbon cap and carbon trading price. We model this as a non-cooperative Stackelberg game in which carbon cap for each entity is allocated in the first stage and each entity’s production quantity is decided in the second stage considering the carbon trading price determined in the carbon trading market. First, we show the monotonic property of the carbon trading price and each entity’s production over the carbon cap allocation. In addition, we show that there exists an optimality condition for the carbon cap allocation. Using this optimality condition, we provide various results for carbon cap and trade market. Full article

This research is to analyse the existing cooperation between universities and the construction industry and to investigate what is the most effective model for long-term cooperation between an academic university and the private construction sector. The current article describes the human resources management tools to be used by employers to create interrelations between the paid salaries and productivity, thus providing both individual and corporate results. The suggested different tools contribute to keeping employees satisfied and motivated, simultaneously properly balancing productivity and individual earnings. The researchers conclude that it is necessary to create a new model for personnel selection and a new approach to stimulate motivation and maintenance within the construction industry. In order to respond to the needs of the sector for professionals and the required increase of the qualifications of the mentioned specialists, it is necessary that the country improves the level of education of the future professionals for the construction industry and changes the system of testing their professional qualifications, which means cooperation between the educational institutions and the industry. The suggested cooperation model by authors may provide a general guideline for further detailed researches and its implementation may help similar-sized economies to make possible national adjustments. The implementation of this model in bigger and/or developed economies should be justified by separate additional research. Full article

In Korea, cooperation between university and company is mainly encouraged by government policy as the Triple Helix’s statist model. Since 2003, the government started a variety of university financial support program, and in 2014, it reached to the point that 31 ministries conducted 408 programs in total. Most projects focused on training human resources and supporting Research and development, which is considered as the core function of universities, but some of the projects are designed to support the industry–academia cooperation. For instance, the Ministry of Education ran ‘Leaders in University and Industry Cooperation (LINC)’ program. LINC is a follow-up project of Human Resources Development for the Leading Industries, Industry–Academia Cooperation-oriented University, and Focal Point Research program. Accordingly, it aimed to create university–industry cooperative models, and nurture talents based on regional economy’s demand. The program provided approximately $230M per year for over 50 universities across the country. It was one of the highly influential grant programs considering the fact that there are about 200 universities nationwide and an annual budget of university is $900 billion on average. In this context, this study is to assess the influence of resources of universities capacity on the achievement of university–industry cooperation and explore whether a government-initiated policy has a significant effect using data from government information disclosure system on education. Full article

Business model dynamics is important, because high-tech companies, the technology that they commercialize, and the market in which they operate all change over time. We build on the dynamic capability view of the firm to explain business model evolution and innovation, looking particularly at the dynamics that are created by interactions between business model components over time. We use the following four criteria to assess the degree of dynamics in business model frameworks: completeness of business model aspects, interrelationships between aspects, interrelationships over time, and framework changes over time and across contexts. Business model completeness involves internal company aspects and external environmental aspects. Interrelationships of business model aspects are required to assess business model coherence, which is an important indicator of business model quality. Interrelationships between the environment and business model aspects are required to assess the fit of a particular business model in its context. Interrelationships of these aspects over time are needed to understand business model evolution. Finally, business model frameworks need to be adapted over time and across contexts to keep frameworks simple and useful yet complete. Our analysis shows that current business model frameworks do not meet all four criteria, and thus only partly incorporate dynamics. Full article

Essential oil and aromatherapy industry is increasingly gaining prominence in the global market. Previous studies have been carried out on the benefits of essential oils in healthcare and as part of the healing arts of many cultures, as a proven method of caring for our physical, spiritual and mental health. To enter an open market and promote the awareness of essential oils and aromatherapy, strategic planning capability is important to drive business growth. This paper utilizes a simulation-based strategic decision support system (SSDSS) to conduct a real-world case study with empirical data and examine the effectiveness of SSDSS applications in supporting market development and business growth with service innovations. Through iterative computer simulations and scenario analysis of healthcare promotion and business development for performance improvement, the effects of strategic business innovations could be systematically analyzed to identify different stages of adopters and effective approaches to achieve the established objectives with market value creation. Full article

Open source software and open innovation are an important resource for today’s industries. Communities collaboratively create different kind of publicly available value, boosting innovation and also technology. However, whereas this value is generated and captured by various involved parties, the outcomes are, in many cases, commercialized by companies who build their business models on this openness. Thus, current business model representations used for these open systems mainly focus on the commercial side of companies, not directly regarding the value creation and distribution by the underlying communities. This results in a lack of potential representation of alternative value created by individuals and communities that are not necessarily aiming for direct monetary compensation. In this work, we show, by the example of open source projects, how communities create value and their potential to be represented by the upcoming domain of new business models. The emerging idea of new business models, based on sharing, collaboration, and the circular economy, not only considers economical viewpoints, but also social and ecological. New trends in research are intensively starting to investigate these models and how they can be brought to practice. The co-creation of value, collaboration of various actors, and following a shared vision are just some of the identified overlaps that are also essential for a potential representation of open communities. This first review unveils that new business models and open source software projects have a variety of aspects in common. We highlight the potential of open communities to be seen as new business models themselves, instead of just being a pure enabler for firms’ business models. This approach is leaving room to explore new organizational and economical aspects of open ecosystems, enhancing the understanding of co-creative communities and the definition of collaborative value. Full article

We proposed and created a methodology to solve a real-world problem, which is a special case of the generalized assignment problem. The problem consists of assigning drivers to harvesters, which will then be assigned to harvest sugarcane in order to maximize daily profit. A set of drivers have various levels of experience. Therefore, a different capability to harvest sugarcane leads to a range of daily wages. Each harvester has different operating years and engine size, which affects its fuel consumption rate and capacity to harvest sugarcane, respectively. Assigning a worker to a harvester can improve the fuel consumption and efficiency of the harvester. We developed a mathematical model to reflect this problem and to solve it to find the maximum outcome using Lingo v.11 commercial optimization software. Since Lingo v.11 is limited to solving only small-size test instances, for medium to large test instances, four modified differential evolution (MDE) algorithms were used to solve the problem: MDE-1, MDE-2, MDE-3, and MDE-4. MDE-2 was found to be the best proposed heuristics because it has intensification and diversification ability. MDE has been tested with the case study. We tried to increase the daily profit by implementing three strategies: (1) change all harvesters that are more than five years old, (2) train drivers to reach maximum capacity, and (3) a combination of 1 and 2. Each strategy has a different investment. The breakeven point (number of days) to return the investment was calculated from the increase of daily profit. The computational results show that strategy 2 is the best because it has the quickest rate of investment return rate. However, this strategy has a disadvantage, since it is possible that drivers may leave the company if they have been highly trained. Moreover, strategy 1 has an acceptable break-even point at 392 days. Full article

Non-ferrous metals are widely used as basic materials in various industrial fields, and zinc is a metal that is produced and used next to iron, aluminum, and copper. In this study, DEA (data envelopment analysis) was applied to measure the efficiency of 43 zinc smelters in three countries in East Asia: Korea, China, and Japan. The constant returns to scale (CRS) and the variable returns to scale (VRS) models, and the slack-based measure (SBM) were used for the analysis. As a result of the efficiency analysis, there were three efficient zinc smelters in the CRS model, 14 in the VRS model and 14 in the SBM. The average efficiency was 0.458 based on the SBM, which indicates that there is room for improvement in efficiency. In addition, the average scale efficiency value was 0.689, showing the scale to be inefficient. Therefore, it can be seen that the labor cost and the energy cost must be brought to an appropriate level. The Tobit regression analysis was used to analyze the causes of efficiency. The greater the capacity and the larger amount of bonus Zn of the refinery, the higher the efficiency of the refinery. Full article

Universities are considered as a source of open innovations by producing new technology. The innovations need to be tested in licensed laboratories in order to create certified products if they are to be commercialized to the market. Many universities have established laboratories that provide testing services to society and act as a revenue-generating source. Universitas Sebelas Maret (UNS) owns an accredited center laboratory that provides testing services to external parties. In addition, the university owns other laboratories in several faculties to conduct academic activities and research and yet provide testing services, but have not been accredited. Therefore, the laboratories have the potential to be developed as part of the testing service business to support the incubation process of new technology and provide testing services. In this article, we chose UNS, one of the universities in Indonesia, to develop a framework of readiness level measurement instrument, to evaluate the readiness and to suggest improvements for laboratories to achieve accreditation. A framework of laboratory readiness measurement was developed using integration of management approach and laboratory approach. Descriptive statistics were used to create a radar chart to determine the readiness level. Based on findings and evidence analysis, we proposed improvement planning using ISO 17025 and management concept. Full article

Not only with respect to the common overlaps within the market of urban air mobility, but also in terms of their requirement profile with regard to the systemic core, all mobility industries are converging. This article focuses on the required patterns of learning in order to cope with these changes, and what automotive managers can learn from the aerospace industry in this context. As organizational learning is the central parameter of economic evolution, and technology develops over trajectory shifts, companies are, at the very least, cyclically forced to learn ambidextrously, or are squeezed out of the market. They have to act and react as complex adaptive systems in their changing environment. Especially in these dynamics, ambidextrous learning is identified to be a conditio sine qua non for organizational success. Especially the combination of efficiency-oriented internal exploitation with an explorative and external-oriented open innovation network turns out to be a superior strategy. By combining patent data, patent citation analysis and data on the European Framework Programs, we show that there are temporal differences, i.e., position of the product in the product, technique, technology, and industry life cycle. Furthermore, we draw a conclusion dependent on the systemic product character, which enforces different learning requirements concerning supply chain position and, as an overarching conclusion, we identify product structure to be decisive for how organizational learning should be styled. Full article