Innovation in Family Firms: A Systematic Literature Review and Guidance for Future Research

Through a systematic review of 118 peer‐reviewed journal articles published between 1961 and 2017, this article provides an integrative picture of the state of the art of the family firm innovation literature. Our aim is to widen existing understanding of innovation in family firms by building a theoretical bridge with studies in the mainstream innovation literature. Specifically, in identifying the main gaps in the literature and providing future research directions, our critical and dynamic picture of family‐specific determinants of innovation is intended to advance the debate on innovation in general, and family firms in particular.     

Evaluating and Visualizing the Economic Impact of Commercial Districts Due to an Electric Power Network Disruption

Critical infrastructure networks enable social behavior, economic productivity, and the way of life of communities. Disruptions to these cyber–physical–social networks highlight their importance. Recent disruptions caused by natural phenomena, including Hurricanes Harvey and Irma in 2017, have particularly demonstrated the importance of functioning electric power networks. Assessing the economic impact (EI) of electricity outages after a service disruption is a challenging task, particularly when interruption costs vary by the type of electric power use (e.g., residential, commercial, industrial). In contrast with most of the literature, this work proposes an approach to spatially evaluate EIs of disruptions to particular components of the electric power network, thus enabling resilience‐based preparedness planning from economic and community perspectives. Our contribution is a mix‐method approach that combines EI evaluation, component importance analysis, and GIS visualization for decision making. We integrate geographic information systems and an economic evaluation of sporadic electric power outages to provide a tool to assist with prioritizing restoration of power in commercial areas that have the largest impact. By making use of public data describing commercial market value, gross domestic product, and electric area distribution, this article proposes a method to evaluate the EI experienced by commercial districts. A geospatial visualization is presented to observe and compare the areas that are more vulnerable in terms of EI based on the areas covered by each distribution substation. Additionally, a heat map is developed to observe the behavior of disrupted substations to determine the important component exhibiting the highest EI. The proposed resilience analytics approach is applied to analyze outages of substations in the boroughs of New York City.     

The Use of Simulation to Reduce the Domain of “Black Swans” with Application to Hurricane Impacts to Power Systems

Recently, the concept of black swans has gained increased attention in the fields of risk assessment and risk management. Different types of black swans have been suggested, distinguishing between unknown unknowns (nothing in the past can convincingly point to its occurrence), unknown knowns (known to some, but not to relevant analysts), or known knowns where the probability of occurrence is judged as negligible. Traditional risk assessments have been questioned, as their standard probabilistic methods may not be capable of predicting or even identifying these rare and extreme events, thus creating a source of possible black swans. In this article, we show how a simulation model can be used to identify previously unknown potentially extreme events that if not identified and treated could occur as black swans. We show that by manipulating a verified and validated model used to predict the impacts of hazards on a system of interest, we can identify hazard conditions not previously experienced that could lead to impacts much larger than any previous level of impact. This makes these potential black swan events known and allows risk managers to more fully consider them. We demonstrate this method using a model developed to evaluate the effect of hurricanes on energy systems in the United States; we identify hurricanes with potentially extreme impacts, storms well beyond what the historic record suggests is possible in terms of impacts.     

Who is a Distracted Driver? Associations between Mobile Phone Use while Driving,Domain‐Specific Risk Taking,and Personality

Mobile phone use while driving (MPUWD) is an increasingly common form of distracted driving. Given its widespread prevalence, it is important for researchers to identify factors that may predict who is more likely to engage in this risky behavior. The current study investigates associations between MPUWD risk behaviors, domain‐specific risk perceptions, and broad personality dimensions. An Italian community sample (n = 804) completed a survey regarding MPUWD risk perceptions and engagement in MPUWD, in addition to the HEXACO‐PI‐R, a broad six‐factor personality inventory (honesty‐humility, emotionality, extraversion, agreeableness, conscientiousness, openness to experience), and the DOSPERT, a six‐factor domain‐specific self‐report risk‐taking measure (health/safety, recreational, social, ethical, gambling, and investment). With respect to domain‐specific risk taking, greater frequency of SMS use while driving most strongly was associated with greater risk taking for the health/safety, gambling, and ethical risk domains. Further, greater honesty‐humility and conscientiousness, two traits related to cognitive control and risk behaviors, and to a lesser extent openness to experience, were associated with less frequent MPUWD, and positively associated with MPUWD risk perceptions. With growing public safety concern surrounding MPUWD, understanding associated personality factors is not only important for identifying psychological mechanisms underlying risk behavior, but also for more effective prevention and intervention programs.     

The role of the board in shaping foundations’ strategy: an empirical study

This paper investigates the relationships of the choice of philanthropic strategy with board capital (diversity and networks), board activities (board processes, internal board committees, and board effectiveness), and CEO leadership. Using a sample of 110 Italian foundations, the research shows that board processes have the strongest positive association with an evolved strategic approach to philanthropic institutional grant-giving, while board diversity and strong CEO leadership are associated with the strategic approach only under certain conditions. In particular, good governance processes (e.g., training the board, self-evaluation of trustees, setting the stage for effective board and committee meetings, implementing control software, and steering meetings to improve the board’s analysis) are positively associated with evolved strategic approaches to philanthropy (e.g., signaling other funders for the best grantees, improving the performance of grant recipients, and advancing selected social fields’ state of knowledge and practice).     

The implementation of digital technologies for operations management: a case study for manufacturing apps

Abstract

Manufacturing applications address business to business (B2B) with highly customised applications developed for specific requirements, offering highly specialised solution-oriented and service-based software components, systems, and digital tools that aim at a fast and accurate decision-making support system. The purpose of this paper is to describe the implementation of digital technologies for operations management using manufacturing or engineering apps (eApps), for product design and manufacturing processes. In particular, starting from the specific needs of two companies from mature European industries as automotive and food, this work depicts how this kind of solutions can support companies and improve their operations. In particular, related benefits and challenges faced for the full implementation of the developed tools are highlighted. Moreover a business model to exploit the manufacturing apps is also proposed. The business model proposed for the exploitation of the eApps supports the commercialisation of all the revenue streams offered by this rapidly growing sector taking into account the specific needs of the concerned stakeholders through a diversified value proposition.     

Nonexclusive Competition in the Market for Lemons

A seller can trade an endowment of a perfectly divisible good, the quality of which she privately knows. Buyers compete by offering menus of nonexclusive contracts, so that the seller can privately trade with several buyers. In this setting, we show that an equilibrium exists under mild conditions and that aggregate equilibrium allocations are generically unique. Although the good for sale is divisible, in equilibrium the seller ends up trading her whole endowment or not trading at all. Trades take place at a price equal to the expected quality of the good, conditional on the seller being ready to trade at that price. Our model thus provides a novel strategic foundation for Akerlof's (1970) results. It also contrasts with competitive screening models in which contracts are assumed to be exclusive, as in Rothschild and Stiglitz (1976). Latent contracts that are issued but not traded in equilibrium play an important role in our analysis.     

Networks within Industrial Districts: Organising Knowledge Creation and Transfer by Means of Moderate Hierarchies

This paper furnishes evidence of innovative modes of organisationof inter-firm relationships and knowledge management within industrialdistricts. With the aid of a district firm, we first highlight the marked tendency among the largest companies to eschew an exclusively endogenous innovative process. Next, we analyse how the leading firm can play an active role within a network by assigning outside its boundaries tasks that were once undertaken in-house. This happens gradually with the moderate hierarchisation of originally destructured network relationships. In its attempt to organise innovative modes of design and manufacturing, without losing control and strategic legitimisation, the leading firm elects a coordinating agent withdirect responsibility over a selected team of specialist suppliers.     

The Evolution of Knowledge and the Dynamics of an Industry Network

The paper moves a step forward in the direction of establishing a connection between the structure and evolution of knowledge bases and the structure and evolution of organizational forms in innovative activities in a science-intensive industry. The paper has an explicit focus on the dynamics of the network of collaborative agreements in R&D in the pharma/biotech industry after the “molecular biology revolution”. Using a comprehensive dataset, built by the authors integrating several sources in the industry, the dynamics of the network over time is extensively analyzed. With regards to network structure, it is found that, while the size of the network increases over time due to net flows of entry, its topological properties remain relatively unchanged. The evolution of the network has occurred without relevant deformations in the core-periphery profile. With regards to age-dependent propensity to collaborate, the paper finds that the extent of inter-generational collaboration is much more significant than intra-generational collaboration. In addition, the propensity of firms of a given generation to enter into collaboration with firms of a different generation increases with the distance between the two, while the total number of intra-generational collaborations decreases over time and, moreover, tends to decrease for most recent generations. In the paper a unitary and coherent explanation of the evidence is developed, coming to reveal the existence of a striking isomorphism between structural properties of the dynamics of knowledge and of the evolution of network structure. This revised version was published online in July 2006 with corrections to the Cover Date.     

The British Docks: A Test of Alternative Models of Wage and Employment Determination

In this paper we compare two well-known models of union bargaining: labour demand and efficient bargains. We use data on the British docks which belonged to the national Dock Labour Board, abolished in 1989. The docks industry is particularly well-suited for a test of the competing models: in fact it had a long tradition of union bargaining on manning levels and, at the same time, it experienced a long-run decline in employment. Also, jobless dockers were granted some form of unemployment compensation. The institutional features of the industry allow to test a strong version of the efficient bargain model, where the union equates the utility of those who work and those who do not. Our evidence supports the strong efficiency hypothesis: employment depends only on the opportunity cost of working. The secular decline in employment in the industry is explained mainly by technological progress, i.e. the introduction of containers.