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Proceedings IFKAD 2015

Culture, Innovation and Entrepreneurship: Connecting the Knowledge Dots
List of Included Articles:
The Cultural Antecedents of Successful Innovation
Kenneth Dovey, Stephen Burdon

This paper outlines the leadership practices that support an organisation’s strategic intent to innovate through the creation of an innovation-conducive culture. By surveying the opinions of member organisations of the Australian Information Industry Association (AIIA), four companies (each within a particular revenue category) were selected by AIIA members as having the most innovation-friendly cultures. The paper explicates the cultural basis of effective innovation within these four companies by drawing on survey data; analyses of the presentations given at the awards ceremony by senior members of each of the winning companies; and follow-up interviews with the leaders of these companies. The results point to the vital role that leadership plays in the creation of an appropriate cultural platform for successful innovation; and indicate how the execution of the strategic intent to innovate depends on the appropriateness of the cultural assumptions held by a stakeholder community. In particular, the study shows that within companies that are recognised as having innovation-supporting cultures, innovation is assumed to be a human/social process that is enhanced by open and honest communication, strong interpersonal relationships, mission-pertinent learning, and permission to experiment and fail.

Intellectual Capital and Key Factor for Competitiveness: SMEs Manufacturing Industry in Mexico
Jose Sanchez-Gutierrez, Juan Mejia-Trejo, Elsa Georgina Gonzalez-Uribe

Purpose – The main purpose of this research is to analyse the impact of the intellectual capital on the competitiveness in the SMEs manufacturing in Mexico. Design/methodology/approach – The approach of this investigation is developing a theoretical construct to determine the correlation between intellectual capital and competitiveness, and find the most relevant factors that impacts it. To determine the variables involved in this research, were analysed for the intellectual capital: the information obtained, intellectual capital developed and learning and feedback; and the competitiveness with other three factors: Financial Performance, Costs Reduction and Technology Use. The questionnaire was designed considering the competitiveness as dependant variable, and as independent variable the intellectual capital. Using the Likert scale in order to determine the degree of agreement or disagreement, and the survey was applied to 420 SMEs. The results were analysed using confirmatory factor analysis (CFA), Cronbach’s alpha and subsequently structural equation models (SEM). Originality/value – This study shows the effects of the dimensions of intellectual capital that are directly impacting the competitiveness of SMEs, these factors influence a lesser or greater degree, so that each factor of the dependent and independent variables should be analysed separately to propose improvements in implementing CI to seek higher level of competitiveness. Practical implications – The results obtained measure the level of correlation between the variables in study, hence to design the strategies and key factors needed to integrate the intellectual capital and develop competitive synergies in the SMEs manufacturing.

Organizational culture and green management: innovative way ahead in hotel industry
Petr Scholz, Jan Voráček

Knowledge based economy forces companies to reconsider strategic impact of different components of internal capital on their performance. Traditional extensive value drivers, based mainly on structural capital, are gradually extended with more intensive utilization of relational and human-resources oriented alternatives also in hospitality industry. Although hotels are considered as labour intensive companies with higher proportion of low-skilled jobs, many of them have already recognized value-adding potential of organizational knowledge and intellectual capital. They implement these innovative features especially through the development of partnerships with loyal customers and systematic introduction of innovative managerial practices. Applying the elements of environmental management and sustainable development principles are characteristic trends in accommodation services. We can find them particularly in large hotel chains but accommodation facilities with small capacity are also interested in this green way. These accommodation facilities are aware that the importance of environmental protection is necessary; moreover they use this concept as a useful marketing tool for distinguishing from other accommodation facilities. The current approach to hotel management is mostly revenue-oriented, i.e. strives to generate profit from temporally and locationally specific combinations of internal, technical and social capabilities, including, e.g. market segmentation, pricing, capacity allocation, aligned incentives, organizational structure or vocational training. Accordingly, present managers maximize metrics like occupancy (OCC), average daily rate (ADR), revenue per available room (RevPAR), revenue per available customer (RevPAC), gross operating profit per available room (GOPPAR) and many others. Consequently, our research was to identify perspective and feasible combinations of the existing revenue-driven methods with still more pervasive features of knowledge-based management and green management in hotel industry. We believe that the key path to success is in even closer, i.e. daily personal orientation on customers, specifically on their satisfaction in both functional and emotional dimensions. So far, hotel managers use mainly simple analytic and planning tools, which cannot cover the practical complexity of surrounding market and internal processes. In comparison with purely revenue-based principles, advanced managerial practices, considering also qualitative and human-related matters require additional viewpoints. We enhanced the hospitality domain with introduction of dynamic hypotheses – feasible explanations of temporal behaviour of complex structures. With the resultant interactive system dynamics (SD) model, we designed and tested several scenarios, comparing the purely revenue-oriented hotel management with its customers-oriented and organizational knowledge-supported enhancement.

Engaging facts and feelings in management accounting practices
Teemu Laine, Petri Suomala, Natalia Saukkonen

Purpose – This paper seeks to elaborate on how facts and feelings can be engaged in management accounting (MA) practice. The paper discusses a blueprint of new MA to be used in value and profitability management. The need for such a blueprint is defined in the following way: What does the interaction between facts and feelings mean for managing customer value and profitability, and how such interaction can be established? Such a blueprint ought to be at least widely and emotionally desirable, ergonomic and effective, durable and repairable, which have not been sufficiently addressed as design characteristics in the MA literature. Design/methodology/approach – Besides a literature review on the processes of co-thinking and co-feeling in management accounting literature, we propose a more detailed approach for identifying the needs for accounting development and responding to them with a relation to the aforementioned challenges. In practice, we identify timely management challenges in different case environments, ranging from industrial operations to health care services. After that, we elaborate on the desired role of MA practice in responding to the identified challenges, as a basis for the proposed blueprint of new MA. Originality/value – The paper is among the rare attempts to extend the theory and practice of management accounting with an approach that combines both analytical and emotional aspects of value and profitability management. The paper provides both a description of the needs for accounting development in different environments and an aggregate level agenda for turning such blueprint into action, i.e., the blueprint of new MA. Moreover, the paper responds to the need for better supporting managerial work by means of accounting information, with an explicit connection to the processes of value and profitability management in the companies. Practical implications – The research gap underlying this paper is closely connected to the needs for developing management accounting practice according to the timely management challenges and recent technological advancements. After reading this paper, practitioners will be able to identify the needs for accounting development in their organizations, and translate the blueprint of new management accounting into a set of practical questions related to their own business context.

Key Inventors and Teams in Cultural Industries: Evidence from the Italian Haute Cuisine
Tommaso Savino, Antonio Messeni Petruzzelli, Vito Albino

Purpose – In cultural industries, the innovation process is increasingly realized by a key inventor which is sustained by a dedicated team (e.g. Cillo and Verona 2008; Glaveanu and Lubart 2014). In fact, the key inventor, who remains central in cultural industries, needs to interact with a team in the cultural products development (Taylor and Greve 2006; Tran 2010). Nevertheless, the characteristics of this particular team remain unclear (Stierand et al. 2014; Tan 2015). Thereby, the present paper aims to understand the composition of a team which has to support key inventors. Design/methodology/approach – The setting of our research is the haute cuisine, which belongs to cultural industries (Ferguson 1998; Messeni Petruzzelli and Savino 2014). In particular, we conducted an in-depth case study of “Dal Pescatore”. This is the Italian restaurant keeping the highest award previewed by Michelin Guide from the longer period of time. The main figures of the restaurant are the chefs: Nadia and Giovanni Santini. The former was the world’s best female chef in 2013, the latter received the “chef de l’avenir” prize in 2012. Furthermore, many chefs learned the basics of the haute cuisine in this kitchen before the opening of their own restaurants. Originality/value – Scholars have hugely emphasized the centrality of key inventors’ creativity for company’s success (e.g. Stierand et al. 2014). However, a growing stream of literature has underlined how teams and their composition affect creativity (Taylor and Greve 2006; Perretti and Negro 2007). Nevertheless, existing research has treated teams and key inventors as alternative solutions (Taylor and Greve 2006). Conversely, recent studies have revealed cases in which key inventors are supported by a team (Cillo and Verona, 2008; Tran 2010). Accordingly, we focused on the composition of this particular team underlining the necessity to combine the experience of aged people with the suggestions of young foreign apprentices. Practical implications – We advance the managerial investigation in cultural industries, which are now attracting an increasing interest by both scholars and policy makers as an important source of economic growth (Chaston and Sadler-Smith 2012). In particular, this research provides useful implications to face the key challenge of innovation development in cultural industries (Taylor and Greve 2006; Cillo and Verona 2008). Hence, this study provides relevant suggestions to the increasing number of cultural firms which adopt an innovation process based on a key inventor sustained by a dedicated team.

Managing Cultural Knowledge in Project Execution
Heli Aramo-Immonen, Helinä Hietaoja, Jari Jussila, Salvatore Ammirato

The purpose of this study was to explore the factors through which the project implementation phase could be enhanced by cultural knowledge. The importance of studying this subject is that the exploitation of cultural knowledge (Hofstede & Hofstede 2005, Schwartz 1999, Ng et al. 2006, Hall 1976, Lewis 2006) and competence (Koskinen 2001) is still limited in the constantly increasing project-based business (Turner 1999, Artto et al. 2011, PMBOK 2004) in the international field. Two objectives exist in this study: understanding project complexity through the main challenges in project implementation and evaluating the impacts of the cultural factors behind them. We propose the multiple case study approach (Eisenhard & Graebner 2007, Yin 2014). The prominence of cultural knowledge in project implementation is difficult to determine, so the research design has exploratory features. Case project A was implemented in Sub-Saharan Africa and Case project B in the Near East. Interviewed managers worked either from distance and only visited the target country periodically or represented the perspective of an operational level manager working in the host country. The main cultural challenges that occurred in the projects are defined by these interviewees. This methodology gives evidence of the main challenges in the two case projects and clarifies the multiplicity of cultural issues in the project context. The importance of the subject was highlighted and the interviewed managers demonstrated that cultural knowledge can offer benefits. Numerous studies exist concerning the challenges in the project business (Deresky 2014, Turner 1999). The outcomes of the research stressed the uniqueness of projects and the situational need for cultural knowledge. The results highlighted the pervasive nature of culture in the international playing field. Companies are obliged to adjust their operations according to environments with multifaceted requirements. National cultures not only prevail within the borders of geographical areas, but are also reflected in company procedures. Therefore, their overall impact needs to be considered in international projects.

Exploring Knowledge Integration in a Wine Research Project
Vincenza Esposito, Paolo Canonico, Ernesto De Nito, Mario Pezzillo Iacono, Marcello Martinez

Purpose – This paper studies the role of knowledge integration mechanisms adopted in a wine research project. The paper develops the theoretical literature on the concept of knowledge integration, with particular reference to the adoption of different organizational mechanisms at the inter-organizational level. The main research question is to try to understand what combinations of coordination mechanisms are best suited for promoting knowledge integration within a strategic collaboration between a company and different Academic Departments. Design/methodology/approach – Our study relies on a case study. The project experience selected for case study provides a consistent, differentiated and information rich setting for studying the phenomenon under scrutiny. We adopted three data collection techniques: internal document analysis, observation/site visits and semi structured interviews. Documentary analysis was used to obtain a rich understanding of the organizational structure and to identify peculiar issues related to coordination and control implications on knowledge creation. Observation and site visits at university research laboratories and at corporate headquarters were undertaken to infer on cultural issues, as well as on responsibility and control related issues. Interviewed staff included top managers and academic researchers. Originality/value – The implications of this study are primarily related to a better understanding of choices adopted at the inter-organizational level in terms of knowledge integration processes. The study was able to expand the understanding of project inter-organizational cooperation in two respects. First, it should be noted that only a few studies have adopted the project framework to investigate the inter-organizational coordination mechanisms among University and firms. Secondly, the study has an explorative role of analysis, which can be useful for generating research hypotheses in future works, connecting the features of inter-organizational projects with the development of knowledge integration processes. Practical implications – Our results could be useful for other firms operating in the same sector, but also to the policy maker who want to stimulate this industry. Wine producers are currently affected by a global slowdown of wine consumption and by increased competition, and this has spurred them to intensify their efforts to improve product quality and to enter higher value niches in international markets. So, the wine industry has been involved in a deep process of innovation within which the processes of knowledge integration have taken on a much more significant role. We try to understand how the linkages between universities and firms may have a higher potential to create knowledge.

Managing multi-agent knowledge for urban microclimate planning: A case-study in Bari (Italy)
Domenico Camarda, Irene Pluchinotta

Purpose – In environmental planning, urban spaces and ecological systems are increasingly modelled on sets of human/non-human agents, acting either together or individually toward the accomplishment of routinary, new and/or occasional tasks. In urban systems, the complexity of thermodynamic processes and the agents’ behaviours generate remarkable impacts on the environment. The phenomenon of Urban Heat Islands (UHI) is pronounced in urbanized areas, where interactions between humans and local environments are not linear. A Multiple Agents System (MAS) approach attentive to agents’ behaviours represents an interesting research field. A wide range of ecological or environmental issues may take advantage from models built on the cognitive involvement of stakeholders. This paper aims to explore the system architectures building up to support knowledge-based decision-making processes in managing urban microclimate policies Design/methodology/approach – In order to deal with the multifarious and multiple source knowledge embedded in complex urban systems, we propose a MAS approach to handle climate features and behaviours of human, natural and artificial agents, within a knowledge-based sustainable perspective of urban microclimate comfort. The paper methodology starts from a knowledge base collected through focus-group experimental sessions. Then we applied the Fuzzy Cognitive Mapper (FCM) tool to stakeholders’ belief system representation. A FCM methodology allows the use of stakeholders local knowledge or ecological modelling and management in a bottom-up decision-making process. This approach leads to evaluate the complexity of hierarchies and non-formal relations for the constitution of social and environmental management models Originality/value – The paper is the result of investigation on a knowledge interaction arena, focused on the perceptions and behaviours of agents concerning climatic and thermal comfort. The context of interest is the study of impacts among events or trends generated from the elements variation in the urban ecosystem through sensitivity analysis. The attempt carried out is to envision and evaluate possible changes of policies and decisions, so as to envisage possible impacting areas and modify or fine-tune planned policies to attain more effective results Practical implications – The paper works on analyses carried out in a public multifamily building in Bari, toward the attempt to formalizing the energy consumption perception and the users’ behaviours concerning UHI phenomena. The study is part of the Apulian research project Ecourb funded by EU (2010-2013) and aimed at building up hybrid scenarios for the management of urban microclimates in the region of Bari, Italy

What do we know about KIBS? Results of a systematic literature review
Enrico Scarso

Purpose – Since its introduction, the notion of Knowledge-Intensive Business Services (KIBS) has raised the interest of scholars from different disciplines. Currently, a substantial body of research on KIBS is available, and we need to take stock of what has been done until now. This paper illustrates the findings of a systematic literature review aiming at: a) assessing the interest in the topic; b) analysing what disciplines have used the concept, and what research approaches and methods have been employed; c) identifying what topic areas have been investigated; d) ascertaining what are the main findings achieved so far, the open issues, and the possible future research directions. Design/methodology/approach – This study make use of a systematic review of the literature. Three criteria were followed to select the databases where to look for the papers: they had to cover up a comprehensive range of business and economic-related peer-reviewed journals; their coverage had to extend through the timeframe of the investigated topic; their search function had to provide reliable results. Accordingly, three widely known databases were chosen: Scopus, Business Source Premier and EconLit. The relevant papers were found by searching the terms KIBS and “knowledge intensive business service” either the title of the paper, in the abstract, and in the keywords. In total 190 papers were examined, published from 1999 to 2013. Originality/value – The paper offers an updated picture of the state of the art of the research about KIBS. Particularly, it classifies the examined articles according to the main discipline they belong to, their research approach and research method, the countries involved and the investigated sub-sectors. They are also categorised in some topic areas, and the main results achieved by the research in each area are discussed. Practical implications – The findings of the review are particularly significant for scholars who can find indications about some open questions as well as suggestions on crucial issues that could be the object of future research.

Knowledge Management Tools and Practices alignment in SMEs
Roberto Cerchione, Emilio Esposito

Purpose – The main aim of this paper is to provide a taxonomy of knowledge management systems and investigate the alignment between the intensity of use of relevant tools and practices supporting small and medium enterprises in the process of knowledge management. Design/methodology/approach – The paper is based on a literature review on knowledge management systems in SMEs, which allows to identity two research questions that are addressed through a face-to-face survey carried out in a sample of SMEs operating in high-tech industries such as aerospace, engineering, ICT, management training and consulting. Originality/value – In the literature there is not a common definition of knowledge management system but a variety of definitions. The main value of the paper is to explore and systematise the existing literature on knowledge management systems and provides a novel definition that includes both the IT-based tools and the organisation practices. In addition, the paper provides empirical evidences on knowledge management tools and practices adopted in SMEs and highlights the level of alignment between tools and practices. Practical implications – From the practical point of view the paper shows the difficulties that SMEs have to be responsive to the rapid technological changes as well as the lack of support from ICT vendors in the decision making process for choosing adequate knowledge management tools. From the SMEs point of view, this paper has highlighted that small firms could further increase the impact of knowledge management by better exploiting the opportunity offered by the new ICTs (such as, cloud computing, crowdsourcing system collaborative filtering, wiki, etc.). From KMSs provider point of view, this paper has stressed that SMEs typically do not have dedicated resources to monitor the process of innovation in the field of knowledge management systems. Nevertheless, they could represent a significant market. To catch this opportunity, it is necessary create not only a new market segment dedicated to small and medium enterprises but also direct channels of communication even virtual between SMEs and KMSs providers.

Knowledge management driven leadership and culture and innovation success – an integrative model
Malgorzata Zieba, Bruno Schivinski

Purpose – This article examines the relation between knowledge management (KM) driven leadership, culture and innovation success of knowledge-intensive small and medium sized companies. By building on the previously reported research on leadership, culture, innovation, and knowledge management, we synergistically integrated KM-driven leadership and innovation success while exploring the meditational role of culture in that. Design/methodology/approach – A conceptual model comprising three constructs was developed, namely KM-driven leadership, culture and innovation-based success of the company. To examine the conceptual model, quantitative research was conducted among selected companies from the SMEs offering knowledge-intensive business services. The companies were contacted by telephone and interviews were carried out with 111 key informants. The data was later analysed with exploratory and confirmatory statistical methods. We applied structural equation modelling techniques (SEM) with Mplus 7.2 software package to investigate the effects of KM-driven leadership on culture, and consequently its effect on innovation-based success of the company. To investigate the meditational role of culture between KM-driven leadership and innovation-based success of the company a post-hoc analysis was undertaken. Originality/value – On the basis of the previous studies analysis, the following research gap has been identified. How does leadership based on knowledge management influences the innovation success of companies and what is the role of culture in this relation? By answering this question, the study contributes to the building of literature on the above topic twofold. First, it analyses the influence of KM-driven leadership in the creation of organizational culture, which in turn contributes to the innovation success of the company. Second, this research pioneers in that it explores the meditational role of culture among KM-driven leadership and innovation success. The results of the mediation analysis confirm that culture fully mediates the relationship of KM-driven leadership with innovation success. Practical implications – The paper proves the relation between KM-oriented leadership, culture and innovation-based success of the company. The analysis of the conceptual model confirms that culture mediates the relationship of leadership with innovation success. It highly contributes to the understanding of these phenomena in the context of small and medium-sized companies offering knowledge-intensive business services – still a topic at its early stage of research. The study also shows that KM-oriented leadership is a very important factor helping in the achievement of innovation success by companies. The relationships examined indicate the potential areas on which SME managers and executives should concentrate to achieve better innovation results.

An illustration of a novel approach to classifying and selecting knowledge diagrams: case study
Dmitry Kudryavtsev, Tatiana Gavrilova, Lev Grigoriev

Purpose – Visual modeling is a powerful tool for knowledge sharing, design thinking and decision making. There are many methods for visual modeling, but the selection of the right ones – is not evident for non-specialist. The authors previously suggested the approach for diagram classification and selection based on a semantic analysis, which links various knowledge types (know-what, know-how, etc.) with corresponding diagram type. The current paper provides and illustrates the resulting method for knowledge diagram classification and selection. The case-study shows the selection and usage of different diagram types within organizational development project in marketing domain of a medium-sized repair service company. Design/methodology/approach – the paper is in line with design science research – a research paradigm in which a researcher answers questions relevant to human problems via the creation of innovative artifacts, thereby contributing new knowledge to the body of scientific evidence (Hevner, Chatterjee, 2010). As Moody (Moody, 2003) and Rescher (Rescher, 1977) emphasized, the validity of a method can only be established by applicative success in practice. The authors demonstrate the use of the method to solve practical problem, so case study was used (Hevner, Chatterjee, 2010). This study involved project document analysis and interviews with project participants. Originality/value –The suggested case study for marketing domain of the medium-sized repair service company demonstrates relevance and applicability of a novel method for knowledge diagram classification and selection. This demonstration also helps to clarify how to use the method and gives directions for future research. Practical implications –The method and its demonstration helps manager to understand the potential of knowledge diagrams, to select and apply diagrams more effectively, to structure complex situations systemically and to shape future prospects clearly.

Innovation and Entrepreneurship in the IT-multimedia sectors: Inter-Sectoral Collaborations
Diane-Gabrielle Tremblay

Research in economics and social sciences has established that innovation has a territorial dimension which determines its dynamics. Therefore, companies may be more or less innovative depending on the characteristics of the territory where they are established or embedded. (Tremblay et al, 2010;. Matteaccioli and Muriel, 2007; Camagni and Maillat, 2006; Maskell, 2001; Porter, 1990). In recent years, the concept of industrial cluster has attracted interest and investment. Inspired by Michael Porter, the term cluster refers to a geographic concentration of interconnected companies, specialized suppliers, related industries and associated institutions in a particular field, also called intermediate bodies. They are not only in competition, but they cooperate together and support firms in training, financing, etc. In our article, we focus on the contributions of close relationships or networks to knowledge development, innovation and business management by relying on a survey of corporate actors in the field of information technology (IT) and mainly multimedia. We will analyze in particular the role of intermediary organizations and their impact on the knowledge development and innovation process of companies in the sector, and their role in entrepreneurship development, including incubator activities. Purpose – The goal of our research is to highlight the role of intermediary bodies, their roles in training or supporting learning in the workplace, as well as the development of companies, in entrepreneurship development in IT and multimedia. We also wanted to identify the role of proximity and to determine if relational or physical proximity is more important. Do firms need to be close to each other physically in order to develop cooperation, entrepreneurship and innovation ? Or is relational proximity, exchanges and interactions, more important? Design/methodology/approach –We conducted a study of the computer industry, multimedia and video game based on the consultation of the literature and semi-structured interviews with representatives of the sector between 2009 and 2015. Interviews with representatives companies focused on their vision of intermediary organizations, innovation policies and their contribution to innovation in the Montreal economy and their business. We achieved a good sixty interviews over the years, but retain here a set of 23 interviews, the latest interviews, which focus more on knowledge development and training, enterprise collaboration and competitiveness of the IT sector. The interviews were all transcribed, coded and analyzed in depth. Not to reveal the identity of the companies surveyed, we indicate that about half were in the area of video games, or more broadly interactive services and digital media (video games often providers), while others are in the broader IT sector. Originality/value – Our study seeks to demonstrate that there is an ongoing effort to value and promote the importance of knowledge development and cooperation for development of the IT, gaming and multimedia industry. We highlight the importance of the concept of cluster, and the determining effect of its dynamics. Practical implications – This study situates itself within an ongoing attempt in Quebec, where for several years the actors and intermediaries, political as well as from civil society, have thought together and sought the establishment of a local metropolitan cluster of fashion in which creativity and innovation are encouraged.

Culture and Innovation and Entrepreneurship : challenges in the fashion industry
Amina Yagoubi, Diane-Gabrielle Tremblay

Purpose – The goal of our research is to highlight the role of creativity within the fashion sector and its importance in entrepreneurship issues in general as well. Design/methodology/approach – Our analysis of the fashion sector in Montreal is based on participant observations (Peneff, 1996) and a survey which was conducted from 2009 to 2013 by semi-structured and open interviews (approximately sixty, 28 designers and 32 Intermediate Sectorial& Intersectorial Actors). The study was based on interviews and internal data (reports, corporate documents, press articles, etc.). The interviews lasted between one hour and half to two hours each, and were done in four rounds, then fully transcribed. The first round is based on a guide to trace the trajectories of Emerging Designer (ED) (semi-structured interviews); the second round takes place in open interviews aimed to collect the story of Renowned Designer (RD) and pioneers (DP) (Bernier, Perrault, 1987).The third round follows a guide developed towards Intermediate Sectorial Actors (ISA), Intermediate Intersectorial Actors (IIAS) and Political Intermediaries (IP) (semi-structured interviews). Finally, the fourth round follows a guide geared towards Intermediate Promoter Industry (IPI) representatives (semi-structured interviews). We triangulated data (Royer, 2007) from our various sources (interviews, official documents, information in social networks including Facebook, Twitter, etc.). Originality/value – Our study seeks to demonstrate that the creativity of local actors contributes largely to entrepreneurship and local development, and this creativity development responds to the needs of territories to distinguish themselves from one another. Practical implications – This study situates itself within an ongoing attempt in Quebec, where for several years the actors and intermediaries, political as well as from civil society, have thought together and sought the establishment of a local metropolitan cluster of fashion in which creativity and innovation are encouraged.

The role of culture in open innovation processes through intermediaries: towards a theoretical framework
Barbara Aquilani, Tindara Abbate, Anna Codini

Purpose – The paper aims at analysing the role of culture in open innovation processes supported by open innovation intermediaries, mainly from a seeker’s point of view, creating a new framework linking open innovation processes and open innovation intermediaries based on different types of knowledge. Design/Methodology/Approach – Starting from the assumption that culture matters in the knowledge transfer processes, we relied on extant literature on open innovation processes, open innovation intermediaries, and types of knowledge to build a new framework to understand which open innovation intermediary types are more suited to support the different open innovation processes supported by intermediaries and how they can help firms in overcoming cultural barriers. Originality/Value – The role of culture in open innovation has already been studied, though not in relation with its processes. Moreover, culture has not been analysed when open innovation intermediaries support open innovation processes. In order to fill this gap in literature, our paper focuses on the support that different types of open innovation intermediaries could give in overcoming the cultural barriers more likely to occur when implementing different open innovation knowledge transfer processes. Practical Implications –The framework built can help seekers to overcome cultural barriers, to open up their internal R&D activities, and to improve their innovation processes by taking advantage of external knowledge sources, choosing the right open innovation intermediary type, and making its support fully effective.

Managing Cultural Diversity for Innovation: The Experience of Italian International Corporation
Paola Castellani, Chiara Rossato, Zvi Josman

Purpose – With increased globalization trends, more companies operate internationally and are compelled to appreciate the importance as well as complexity of cultural diversity (CD), and consequently take up the challenge of managing it appropriately. Studies on multicultural management in organizations recognize the relevance of CD and the positive relationship between diversity and corporate performance. However, only a paucity of literature addresses the issue of CD and its value for innovative firms. We strongly believe that CD is a key driver for innovation. Based on this assumption, our paper aims to highlight the relationship between CD and innovation, and pinpointing the role of how knowledge is managed towards the enhancement of innovation. The paper also aims to identify some effective policies for managing CD in the service of promoting innovative behavior. Methodology – This study is based on an inductive approach according to which, proposing specific company experiences, one may try to draw more general considerations. The paper initially comprehensively reviews the existing literature on management of CD within organizations. Thereafter, an analysis of the experiences of three innovative and competitive companies that operate internationally has been conducted. To collect data we consulted secondary sources and the websites of each company. The data collection will provide target information on the approach and the policies adopted by companies to deal with success CD in terms of innovation. Integrating the literature analysis with the data collection, we propose a conceptual framework to explain the links between CD and knowledge management (KM), and the ways in which they impact upon innovativeness. Originality – This paper highlights the value of CD for innovative firms and how it can promote the ability of companies to expand their knowledge horizons in order to promote and support innovativeness. Practical implications – The proposal of a conceptual framework that links CD, KM and innovation, and the analysis of some business experiences that can be a benchmark in the field, can yield important insights for management. Enhancing management awareness and appreciation of corporate orientation to CD, may have significant implications in terms of innovation and human resources.

Audit and Quality Issues – Intellectual Capital Reporting and ISO 9001
Manfred Bornemann

Purpose – Organizations are competing on intangible resources. In order to support management processes, some organizations are establishing methodologies to evaluate their Intellectual Capital. Since the beginning of the millennium, various approaches were suggested and some of them supported with large public funds to get promoted and implemented. In order to raise awareness, some institutions offer to audit Intellectual Capital Reports. This article compares experiences of evaluating the performance of IC Management in different contexts of specialization and identifies strengths and weaknesses of audits as a means to improve legitimacy for ICR. Additionally, this article covers the challenge of how to address the new requirements of the quality management guideline in ISO 9001 in Intellectual Capital Reporting and Management. Design/methodology/approach – Because of the inherent strategic importance of Intellectual Capital Reports, public availability of documents is low. Hence, an alternative, action-research-oriented approach is chosen, even though this might result in some limitations of generality or bias. Building on literature (Mertins, 2008; Wang 2012) as well as vast practical experience from teaching and consulting projects, the authors reviewed recent developments in auditing ICRs as a means to increase legitimacy. This article focuses on case anecdotic evidence lessons learned on auditing Intellectual Capital reports and relates the finding to the suggestions of the to be released new guideline for ISO 9001. Originality/value – Four years after establishing audit guidelines for Intellectual Capital Reports, a review of initial experiences seems to be quite interesting for the science community. This article focuses on empirical experiences based on narratives from case studies and reflects on quality and audit issues with special emphasis on “Intellectual Capital Reporting – made in Germany”. Practical implications – The discussion on reporting on intangibles gained popularity with the initiatives of “global reporting” as well as “integrated reporting” or quality management in general. Audits or “testimonies” on Intellectual Capital Reports in a general interpretation therefore will find a growing market for various reasons. Additionally, the new requirements for quality management in ISO 9001 address these challenges of managing intangibles and thus will have an impact on almost all part of the business community. This paper concludes with some recommendations to be as well as requirements for audits on ICS as a challenge for further research.

Innovation and culture and family firms
Anna Maria Biscotti, Eugenio D’Amico

Purpose –This paper aims to address the question of the innovation propensity of family firms relative to non-family firms, within an institutional setting characterized by a high proportion of listed family firms. Design/methodology/approach – Using a sample of family and non-family firms listed on the Milan Stock Exchange over a period of 6 years (2008-2013), we empirically test the two alternative hypotheses of “innovation enhancing” and “innovation stifling” by performing a multiple regression analysis. Following previous research, we use firm-level R&D expenditures to capture the firms’ creative and inventive activities. As independent variables, we consider the family involvement in ownership and management. We control our results for a set of control variables that likely affect the firm innovation propensity, namely: firm age; growth opportunities; capital intensity; size; profitability, cash flow, leverage and industry. Originality/value – This study analyzes the innovation strategies of family firms compared with non-family firms, within an institutional setting characterized by a high presence of listed family firms. To the best of our knowledge, this is the first study analyzing the R&D spending behaviour of all Italian listed companies (financial and football firms excluded). Our empirical results are based on a sample of 982 firm-year observations covering the period of 2008–2013. Practical implications – The findings may lead the investment community to reevaluate the effectiveness of management policies adopted by family members running the company. In particular, our results are valuable to investors and other stakeholders, suggesting that in setting characterized by high percentage of listed family firms, the involvement of family members in top management could not be detrimental to the value-maximization of the firm, at least in the long run; thereby favoring not only the future well-being for family members but also for other firm stakeholders.

Zones of intensity: reinforcing a sense of place
Monica Biagioli

This paper addresses the current state of work and its adherence to free market principles that override considerations of culture and sustainability at the local levels. It posits that globalisation encourages fragmentation and dislocation of the senses by emphasising the visual bias through disembodied structures and communication. In a globalised economy guided by free market principles, it is the systems that matter rather than the individuals using the systems. The visual bias reinforces this favouring of the systemic and programmed over the holistic and organic. The creative work proposed here attempts to address this imbalance by creating zones of intensity in and around areas of work. These areas of artistic production/installation/performance would operate on the informal level of cultural transmission, as set out by Edward T. Hall in his theory of culture, where cultural knowledge and assimilation happen on three distinct but porous levels that can influence each other: the informal, the formal, and the technical. “Zone of intensity” is a term coined by Russell West-Pavlov and deployed by Darko Radovic to address the visual bias of urban planning. By researching spaces through the artistic inquiry of dérive from the Situationists and encouraging modes of recording those investigations through artistic forms such as drawing and poetry, Radovic champions the importance of the subjective in expressing the meaning of spaces. This notion is a key focus point of the work presented here to give equal weight and importance to the qualitative (experience) as that of the quantitative (data) in designing spaces, assigning function to those spaces, and creating the organisational structures for people to live and work in those spaces.

Collective Mindfulness: Art & High Reliability
Susana Vasconcelos Tavares, João Viera Cunha

Purpose – The purpose of this paper is to carry out a literature review on collective mindfulness and identify the key conditions and processes under which it can be developed within organizations. Design/methodology/approach – Systematic analysis of published empirical studies and theoretical models about mindfulness in organizational contexts. The summary of analysis is listed below. Collective mindfulness, defined by Weick et al. (1999) as the “capability to induce a rich awareness of discriminatory detail and a capacity for action” is a fundamental resource for effectively respond to environment changes (Tsoukas and Chia, 2002; Levinthal and Rerup, 2006; Weick and Sutcliffe, 2006). If so, in an ever-changing environment to promote collective mindfulness is to develop and support a crucial key to organizational success and survival. Therefore, one might ask what can organizations do to cultivate collective mindfulness? What are the fundamental conditions under which it emerges? The body of literature on collective mindfulness describes two different ways of fostering mindfulness within organizations. One answer rests in Weick’s and colleagues (Langer 1989 and Weick et al. 1999) theory about mindfulness in High Reliable Organizations (HRO). In this approach mindfulness is promoted through processes of improving quality and quantity of attention towards work processes and organizational environment. A different answer argues that artistic processes can also promote collective and individual mindfulness, by removing objects from the automatism of perception, by defamiliarizing predominant beliefs and assumptions and allowing people to “see more” and “see differently” (Langer 1989, 2005; Barry & Meisiek, 2010. Moreover, art as one of the most important ways of expression of human feelings and values can provide processes and tools to approach emotional dynamics and aesthetic aspects within organization, which are also expected to broaden people’s perception and people’s willingness to be open to new ways doing things (Schiuma, 2011; Barry, 1994; Barry, 1996; Berthoin Antal, 2009). Originality – We integrate into a single model of mindfulness in organizations, two separate and apparently disparate theories about mindfulness in organizations which hitherto have been developed separately (Arts and High Reliability Organizations). Practical implications – The most important implication is to identify the key conditions and processes under which collective mindfulness can be developed within organizations.

Proceedings IFKAD 2015
Culture, Innovation and Entrepreneurship: Connecting the Knowledge Dots

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