Developing a tool for intellectual capital assessment: an individual‐level perspective

This paper aims to develop a model for assessing and valuing the intellectual capital of an organization by gathering data from individual employees. Also, the paper empirically investigates the relationship between intellectual capital and a specific dimension of employees’ performance. Two surveys were conducted on employees of a leading company in the Italian food product market. The sample analysed comprises 1117 observations. A structural equation modelling (SEM) methodology was used to define the measurement model and to determine the relations between intellectual capital and employees’ performance. The model for intellectual capital assessment developed in this paper may integrate already existing intellectual capital frameworks. The three dimensions of intellectual capital identified mutually affect and have a positive effect on employees’ performance. Our findings contribute to the discussion in the promising research stream of intellectual capital management. As limitations, this study focuses on a single company, and it exclusively adopts individual‐level perceptual indicators. These elements make it difficult for any inter‐company comparison.     

Making the most out of the innovation of meaning: The importance of inclusion for creativity in inside-out envisioning

Innovation of meaning (IoM) is one of the streams that has attracted attention in design thinking research. Inside-out envisioning aims to assist non-designer employees practice IoM in a similar manner to how visionary executives and designers perform. The process starts with exposing their intrinsic visions to innovate the dominant social or organizational meanings. This makes the employees' creativity that comes from intrinsic goals and values an important driving force of inside-out envisioning. Thus, it is crucial to foster an organizational culture that encourages employees to engage in inside-out envisioning and enhance their creativity. This study explores whether inclusion, as an organizational culture, is an antecedent of creativity in inside-out envisioning. Inclusion refers to a state in which an individual's uniqueness is valued by other group members and externalized to improve group performance. Based on data from a survey conducted with 1104 Japanese employees, this study reveals that inclusion significantly impacts creativity in inside-out envisioning. A multigroup analysis demonstrates differences in the effects of the mediating variables of this relationship based on the successful experience of inside-out envisioning. This study concludes that it is important for design thinking researchers to study inclusion more deeply as a way to implement inside-out envisioning.     

A metric for rating the effectiveness of industrial automation systems using a derivative of function point analysis

This paper describes the on-going design of a factory automation performance and satisfaction metric that is based on variations to the function point analysis (FPA) algorithm used in software engineering and analytical hierarchy process methodology common to systems engineering. The paper asserts that a satisfaction rating can be obtained for completed automation projects based on this tautology. The metric uses five high-level functional ratings, which are subdivided according to complexity criteria. The value of the metric is modified by calculating the effect of 14 appropriate adjustment factors. A level of configurability is added by weighting these factors to suit any specific installation. The scores and configuration data are elicited by averaging results obtained from a multi-part survey administered to four or five company employees selected from a wide range of job titles and responsibilities. A simple implementation of the algorithm was completed and an extension of the work will provide an Internet-based version and a diagnostic tool for company use.     

Sustainable development of a suggestion system: Factors influencing improvement activities in a confectionary company

Although the use of continuous improvement (CI) is widespread today, many organizations face problems maintaining high and sustained employee involvement in such programs. The purpose of this study was to identify factors influencing employee involvement in submitting suggestions within a suggestion system in a Swedish production company. The company had maintained a successful suggestion system for about 10 years. The study builds on a database containing all the suggestions submitted (2343 in number) within the suggestion system. The following factors were identified to influence employee involvement in submitting suggestions and hence the sustainability of the suggestion system as well: (a) Situations when the employees had a personal benefit from submitting suggestions, e.g., concerning their own work environment, contributed to long‐term sustainability of the system; (b) campaigns emphasizing different themes encouraged employees to become more active within the suggestion system; (c) employees having some of their suggestions rejected were more active in submitting suggestions than employees having most suggestions rejected or accepted; (d) a high monetary reward (80 euros and above) was not found favorable for submitting new suggestions, compared to lower rewards; (e) increased support of group suggestions contributed to a sustained and high level of activity of the suggestion system. © 2007 Wiley Periodicals, Inc. Hum Factors Man 17: 79–94, 2007.     

Integrating service quality evaluation model to improve employees' satisfaction for high‐tech iindustry

This study addresses the deficiency research of service quality by integrating the importance–satisfaction model (I‐S model) and the performance control matrix to provide a more comprehensive assessment model for improving specific quality attributes. The study applies this integrated measuring instrument in a Taiwanese high‐tech industry by using a questionnaire survey of production‐line employees to assess importance and satisfaction in their capacity as internal customers of the company. The study thus identifies and prioritizes quality attributes that require improvement. The findings are significant for service providers because they take into account: (i) the relative importance of quality attributes; (ii) the relative satisfaction level of these attributes; and (iii) the resources available for improvement. The study demonstrates that the I‐S model and the performance control matrix, taken together, provide an excellent measuring instrument for assessing priorities for quality improvement. © 2011 Wiley Periodicals, Inc.     

Organizational Learning Mechanisms and Creative Climate: Insights from an Italian Fashion Design Company

This paper investigates the relationship between different types of organizational learning mechanisms and creative climate. In the context of an action research study, this paper focuses on insights from a survey that was administered to all the employees of the Product Design and Development unit of the company. The results demonstrate that the three different types of organizational learning mechanisms considered in the study (cognitive, structural and procedural mechanisms) are associated with creative climate. The study generates new scientific knowledge about the role of organizational learning mechanisms and provides specific recommendations for organizations that aim to enhance creative climate.     

Keeping secure to the end: a long-term perspective to understand employees’ consequence-delayed information security violation

Employees’ violation of information security policies is a major threat to an organisation. Some violations such as using an easy-to-guess password or storing confidential data on personal unencrypted flash drives usually do not cause immediate harm; instead, these actions create security flaws that can be attacked in the future and cause delayed consequences. We call such behaviour consequence-delayed information security violation (CDISV). The ignorance or denial of the possible delayed consequences is the main reason employees engage in such insecure behaviour. Due to the delay between the action and the consequence, a long-term mindset could play an important role in employees’ current decision-making. Specifically, in this study, we propose that long-term orientation is an influential factor in decreasing CDISV. The long-term orientation includes three dimensions: continuity, futurity, and perseverance. In addition, based on the stewardship theory and the needs theory, we further propose that value identification and the fulfilment of higher-order needs (trusted relationship and growth) are important drivers for employees to have a long-term orientation. We collected survey data using the 170 responses we received from a global company’s employees. The empirical results support our arguments. Our findings provide implications to organisations to encourage employees’ information security behaviours.     

The ERP challenge in China: a resource-based perspective

Abstract. This paper introduces a resource‐based perspective (RBP) model on enterprise recourse planning (ERP) challenges to help make ERP decisions in China. While ERP aims at integrating functional‐area information systems within a company into a coherent, enterprise‐wide, and web‐enabled network, its implementation is especially challenging to enterprises in China because of high implementation costs, technical complexity, lack of information technology infrastructure, lack of well‐trained employees, lack of incentives to state‐owned enterprises, and a corporate culture different from that in the West. A RBP of a firm, however, posits that firms should compete on the basis of unique corporate resources that are valuable, rare, difficult to imitate, and unsubstitutable. Thus, this research assesses major ERP challenges in China based upon a three‐tier decision process in pursuit of a sustainable competitive advantage. This RBP model is then embedded with data from a survey research to illustrate potential applications and managerial implications.     

Success of software packages in small businesses: an exploratory study

In this paper we develop and use a framework for evaluating the success of microcomputer based integrated administrative software packages in small businesses. The results of an exploratory survey of 66 small business organizations show that small businesses have often been disappointed with their software packages. The disappointment is frequently a result of the inability of the package to adapt to the needs of the company, especially in small businesses of more than 50 employees. For small businesses of less than 20 employees the packages are too difficult to use. These findings indicate that small businesses should place more emphasis on the acquisition, especially the requirements specification, and developers should improve user-friendliness, the quality of support and documentation to fulfil the needs of the smallest of small businesses. The successful implementers—because of their experience—knew their needs, carefully acquired the package, and implemented various parts of it, benefiting from integration. There seem to be no shortcuts to success, but a determined and eager attitude of the personnel can produce success with any of the software packages in our study.     

Understanding the Role of Value‐Focused Thinking in Idea Management

In a couple of classical studies, Keeney proposed two sets of variables labelled as value‐focused thinking (VFT) and alternative‐focused thinking (AFT). Value‐focused thinking (VFT), he argued, is a creative method that centres on the different decision objectives and how as many alternatives as possible may be generated from them. Alternative‐focused thinking (AFT), on the other hand, is a method in which the decision maker takes notice of all the available alternatives and then makes a choice that seems to fit the problem best. The impact of these two methods on idea generation was measured using a sample of employees. The results revealed that employees in the value‐focused thinking condition (VFT) produced fewer ideas. Thus, value‐focused thinking (VFT) is not only able to facilitate ideation fluency but also to constrain it. Factors such as cognitive effort and motivation may play a part here. However, the quality of the ideas was judged to be higher in terms of creativity and innovativeness. Hence, value‐focused thinking (VFT) seems to have a positive impact on the quality of ideas in terms of creativity and innovativeness regardless of ideation fluency. Implications for the design of idea management systems are discussed.     

Dancing between theory and practice: Enhancing work engagement through work stress intervention

This quasi‐experimental and longitudinal study assesses the effectiveness of a work stress intervention (i.e., Team Redesign) to increase job and personal resources and to consequently reduce job strain and increase employee psychosocial well‐being in an enamel manufacturing company following the Resources‐Experiences‐Demands Model (RED Model) and within the Action‐Research approach. The sample consisted of 108 employees at Time 1 and 72 employees at Time 2. Repeated‐measures multivariable analysis of variance (MANOVA) showed that the Time × Intervention interaction had reliable, positive, and incremental effects on job resources (i.e., innovation climate), personal resources (i.e., professional self‐efficacy and perceived competence), and motivational outcomes (i.e., work engagement, vigor, and dedication) on the intervention group (laboratory team, n = 9) when compared with the control group (n = 63 employees from different departments). Finally, we discuss the theoretical and practical implications based on the RED Model, including the feedback from Intervention (Action) to Theory (Research). © 2010 Wiley Periodicals, Inc.     

Prospective intervention opportunities regarding device ownership and the reduction of damage to handheld ruggedized devices with shift workers

Industrial equipment such as ruggedized handheld computers, scanners, and label printers used within asset tracking environments are expensive to purchase and costly to repair. For organizations that use this equipment, there is value in understanding when and why damage occurs and how much of those costs are potentially associated with the employees’ own sense of psychological ownership and organizational pride. Given the connection between psychological ownership and pride, the purpose of this study was to analyze employee surveys to determine what methods, tools, or programs could reduce repair and replacement while developing a stronger sense of ownership for ruggedized devices used in material‐handling industries by shift workers. Unstructured interviews about device repair with management from a large industrial company were utilized to create a multiple‐choice, anonymous online survey (n = 353). Of the six interventions proposed, assigning the same device to the same employee every shift appeared to have the most consistent and positive response. Destruction rates and costs should be posted for employee viewing and managers of workgroups with consistently high destruction rates should receive additional training. An incentive‐based program for employees responsible for the least amount of device damage as well as an individual‐assignment of devices to employees may be considered. Applications for this student include providing a tool with which organizations can use to gauge employee ownership of equipment as well as to identify interventions that may aid in mitigating expenses associated with industrially rugged equipment.     

The effect of social media use on work‐related learning

The increasing use of social media at work offers organizations new opportunities for employee learning on the job. This study investigated the relationship between social media use and learning activities undertaken by employees. It was expected that social media use relates to higher levels of learning and that this relationship is stronger when employees perceive higher levels of an organization culture that stimulates dialogue and inquiry. A total of 590 respondents of three multinationals based in the Netherlands completed a survey. As expected, results showed that the more often employees used social media in their job, the more often they participated in learning activities. Contrary to expectation, this relationship was not influenced by culture of dialogue and inquiry. Instead, the perception of a culture of dialogue and inquiry directly related to learning on the job. The findings suggest that organizations could consider stimulating the use of social media among employees to support work‐related learning.     

The role of leadership cognitive complexity in software development projects: An empirical assessment for simple thinking

Simple thinking (or simplicity) is a way of coping with complexity. It is especially important in the software development process (SDP), which is an error‐prone, time‐consuming, and complex activity. This article investigates the role of the thinking style—namely, simple thinking—which has been found effective in solving complicated problems during software development. For this purpose, it reviews and discusses simplicity issues from a general perspective and, then, reports the findings of a survey concerning the assessment of simplicity in SDP. The survey was conducted among information and communication technologies senior professionals and managers from government and private‐sector organizations. Relevant hypotheses have been developed under different empirical categories for analysis. Statistical analysis techniques were then used to draw inferences based on these hypotheses. The results have proved simplicity to have a significant role in the SDP to a certain extent. © 2011 Wiley Periodicals, Inc.     

Measuring and evaluating IS expectations and benefit success from B2B electronic trading: a new survey approach

This article demonstrates a survey approach for measuring and evaluating IS benefit success from business-to-business (B2B) electronic trading. This article is of significance in demonstrating practical benefit success mechanisms for evaluating complex IS projects. A new survey approach is used to help evaluate the IS benefit success for each participating organisation. Disconfirmation theory and the expectations paradigm are used to justify the overall approach taken. A central tenet of the overall evaluation approach has been the need for a combined evaluation of benefit success based on interpreting or diagnosing two outcomes: (a) the ‘realised benefit outcome’ (RBO), or the actual number of realised strategic and operational benefits a company has achieved, regardless of initial expectations, as well as (b) the ‘benefit state outcome’ (BSO), or the extent of benefit planning gap (BPG) experienced within each company relative to their original expectations. This article demonstrates in detail how to measure benefit success from survey data using a perceptual self-assessed rating instrument. The approach will be useful for other academics and practitioners in the development of usable IS benefits evaluation mechanisms.     

Does Age Have an Impact on Having Ideas? An Analysis of the Quantity and Quality of Ideas Submitted to a Suggestion System

Demographic changes in recent years indicate that the personnel structure of the workforce will change considerably, as will typical career patterns. The need to innovate in order to guarantee the effective functioning and long‐term survival of firms will remain unchanged. Suggestion systems are one means to actively solicit voluntary constructive ideas from employees. Based on the deficit model and SOC theory, this paper explores the role of age in the quantity and quality of ideas submitted through suggestion systems. Data from the suggestions systems of two German locations of a large European company were analysed. A total of 633 submitted ideas led to a monetary reward between summer 2005 and February 2007. To test the hypotheses, linear regression analysis was used. The results of the current study do not support the deficit model as all hypotheses based on the deficit model were rejected. In one location, an increase in the quality of ideas with age was observed, in contrast to the hypothesized relationship. Consequently, managers should question assumptions of declining innovativeness with age when it comes to assessing their employees.     

Collectivism and employees' innovative behavior: The mediating role of team identification and the moderating role of leader‐member exchange

Based on the social identity theory and leader‐member exchange (LMX) literature, the present study examined the underlying relationship between employees' collectivism and their innovative behavior. Specifically, we explored the mediating role of team identification and the moderating role of LMX in the above relationship. Results from a survey of 457 employees in 30 organizations indicate that employees' team identification partially mediates the relationship between their collectivism and innovative behavior, and that this mediating relationship has conditional effects on the moderator variable LMX. The findings contribute to the literature by clarifying how (through team identification) and when (based on LMX) employees' collectivism is related positively to their innovative behavior.     

Packaging software process improvement issues: a method and a case study

Software process improvement is a challenge in general and in particular for small‐ and medium‐sized companies. Assessment is one important step in improvement. However, given that a list of improvement issues has been derived, it is often very important to be able to prioritize the improvement proposals and also look at the potential dependencies between them. This paper comes from an industrial need to enable prioritization of improvement proposals and to identify their dependencies. The need was identified in a small‐ and medium‐sized software development company. Based on the need, a method for prioritization and identification of dependencies of improvement proposals was developed. The prioritization part of the method is based on a multi‐decision criteria method and the dependencies are identified using a dependency graph. The developed method has been successfully applied in the company, where people with different roles applied the method. The paper presents both the method as such and the successful application of it. It is concluded that the method worked as a means for prioritization and identification of dependencies. Moreover, the method also allowed the employees to discuss and reason about the improvement actions to be taken in a structured and systematic way. Copyright © 2004 John Wiley & Sons, Ltd.     

Employee Creativity and Suggestion Programs: An Empirical Study

This paper takes a closer look at a functional strategy known as the innovation or creativity strategy. It is used by growing numbers of companies to take advantage of the imaginative capacities of their entire workforce instead of relying on a handful of specialists or fostering the emergence of a few marginal “heroes” within the organization. The strategy involves the introduction of an improvement program based on employee suggestions. The goal of the research described in this paper was therefore to document twenty two such programs introduced by manufacturing companies in Quebec, to describe the operating methods used, and to summarize and analyze the results. Twelve large companies (more than two hundred employees) and ten SMEs (Small and Medium Sized enterprises with between twenty five and two hundred employees) took part in the survey.