Fostering SME's co-development of innovative projects in biotech clusters: Extending the sets of enablers for the knowledge creation process

We explore the linkage of specific sets of enablers for the knowledge-creation process (KCP) mobilized in innovative projects co-developed by biotech SMEs and the role of industrial clusters in easing the access to enablers. Two French and one Brazilian high-tech SMEs belonging to two biotechnological clusters were investigated. Deductive and inductive approaches were applied in a complementary manner. Findings revealed a larger set of enablers at the company's level than predicted in the literature. We identified two sets of KCP enablers at the cluster's level, classified as open access and restricted access, which are used for different purposes and simultaneously. These dynamics enabled the studied SMEs to improve their co-developed innovative projects in a more effective way. Data also revealed that the enablers that benefit SMEs are more likely provided by the cluster organisations.     

The responsiveness of Italian small-to-medium sized plants: dimensions and determinants

This paper presents a quantitative study carried out on more than 200 manufacturing plants located in Italy. The study aimed to explore whether small-to-medium sized enterprises (SMEs) in Italy are more responsive than large enterprises and determine what the levers are that these enterprises would employ to achieve their responsiveness. Logistic responsiveness has been considered a key driver of competitiveness. Several studies have suggested that company size is a major determinant of responsiveness and that SMEs have both strengths and weaknesses that influence their ability to promptly react to customer needs. The evidence of this study indicates that SMEs are more responsive than large companies in terms of delivery. This performance advantage is mainly the result of a rather narrow product range and a simpler product structure that allows SMEs to enjoy shorter manufacturing and assembly lead times. On the other hand, this study also shows that SMEs perform worse than large enterprises with respect to longer set-up times.     

SMS for decision making of SMEs

To pursue the high environmental performance, economic and social effectiveness of the companies, including small and medium enterprises (SMEs), is the key goal of the sustainable development concept. Sustainable development is based on preventive management principles, and their application in SMEs has become an important issue for enhancing competitiveness. Unfortunately, most of the sustainable development-related research is focused on large companies rather than SMEs, especially in the industrial sector. The importance of SMEs often remains unnoticed. Besides, SMEs themselves often have inadequate knowledge about their environmental and social impacts and management, and apply voluntary preventive measures less frequently than large companies. To make sustainable decisions and to improve the environmental performance, economic and social effectiveness of SMEs, an integrated sustainable management system (SMS) based on financial analysis is necessary, oriented to strategic sustainability goals, not requiring significant financial and human resources. Integration of sustainability management accounting and composite sustainable development index methodologies forms the basis of SMS for SMEs decision making. SMS was applied in three pilot SMEs (small-scale wood parquet, medium-scale wood pallets, medium-scale beverage producing companies). In this article, an extensive analysis of a small-scale wood parquet manufacturing company’s case is presented. The application of SMS enabled to identify key sustainability problems and to find solutions to improve the companies’ sustainability performance. SMS application resulted in reduced input materials consumption and the reduction of sustainability costs.     

Dancing with the pygmy elephant: The Canadian space program,future directions amid challenges

Since the inception of the space age, Canada has pursued a partnership with the U.S. through NASA including participation from the Apollo era forward to the International Space Station. Canada joined the European Space Agency as a participating state since 1979. While these cooperative activities continued over the years, Canada also carved out areas of technology that both created economic returns but were valuable in terms of the joint projects. In a change that impacts Canada, NASA began restructuring its mission profile while it grappled with the shuttle program's termination and a downturn in the national economy. For Canada, finding a way forward for its space program is essential given the economic benefits and the international cache that accrues to a middle sized state that operates an independent space program. Finding its way forward is not easy given the costs associated with such endeavors. This paper examines Canada's current program development and its direction given the U.S. decline relative to other space powers. It also places Canada's program in the context of the debate over space technology utilization for economic development and competitiveness.     

Strategic Opportunities for Engineering Management

Abstract:

In recent decades, intangible assets have become crucial to competitiveness, not only for large companies, but also for small and medium-sized enterprises (SMEs). Despite the existence of multiple methods and techniques for measuring firms' intangible assets, few practical applications are described in the literature, particularly in the context of SMEs. Thus, the objective of this study is to develop a modular, multi-purpose, forward-looking tool and test it in three small firms in Italy. The results of our analysis show that the model's application in the companies was useful in enhancing managers' awareness about intangible assets and in improving the management of these assets.     

Assessing the scientific and technological output of EU Framework Programmes: evidence from the FP6 projects in the ICT field

This paper provides a quantitative assessment of the scientific and technological productivity of FP6 projects by exploiting a new database on articles and patents resulting from EU funded projects. Starting from the FP6, the design of the European technology policy has undergone significant changes with the introduction of new funding instruments aimed at achieving a “critical mass” of resources. Our empirical results provide support to the concerns, expressed by several observers, regarding the fact that the new funding instruments may have resulted in artificially “too large” research consortia. The available empirical evidence shows that scientific productivity increases with the number of participants following a U-inverted shape, thereby indicating the existence of decreasing marginal returns to an increase in the size of research consortia. A second key result of the paper is related to the existence of significant differences of performance among funding instruments. In particular, after accounting for the larger amount of resources allocated to them, Integrated Projects perform less well in terms of scientific output than both STRePs and Networks of Excellence and they do not exhibit a superior performance than STRePs in terms of patent applications.     

Performance measurements in the implementation of CIM in small and medium enterprises: An empirical analysis

If a company has a strategic goal of achieving better productivity and quality, it is not only necessary to have action programmes that support productivity and quality, but also score-keeping system in manufacturing must integrate both the strategy and the actions. Performance measurements must appraise, reinforce and reward improvements in terms of action programmes being used to pursue productivity and quality. Performance improvement in small- and medium-sized enterprises (SMEs) can be achieved through the implementation of computer-integrated manufacturing (CIM). Many SMEs do not consider the implications of long-term benefits of CIM, but only consider short-term financial benefits when they decide about the implementation of CIM. They simply ignore the strategic benefits and intangibles. However, performance measurements considering financial, non-financial, tangible and intangible costs, and benefits have not received significant attention from SMEs while deciding on CIM. Nevertheless, CIM plays an increasingly important role in all aspects of competitiveness both in terms of product development and production techniques in SMEs. Therefore, considering the importance of investment in CIM by SMEs, an attempt has been made in this paper to study the implications of performance measurements on the implementation decisions. A framework has been developed to study the investment justification on CIM in SMEs with the help of an empirical study conducted in British SMEs. Finally, the conclusions are presented.     

Clusters and Regional Management Structures by Western MNCs in Asia: Overcoming the Distance Challenge

Recent literature suggests that multinational companies pursue regional rather than global strategies. Therefore, this study investigates regional management structures, using French multinational companies (MNCs) in the Asia–Pacific region as an empirical context, to address two research questions: first, do MNCs split Asia into subregions and, if so, what are the resulting clusters of countries and clustering criteria? Second, what kind of regional management structures do MNCs establish in Asia, and what are their roles and functions? Factors, such as MNC size, the size of host markets, or the nature of their activities, might explain some differences. The authors conducted 77 face-to-face interviews with expatriated managers in charge of the subsidiaries or regional management structures of 47 French MNCs located in 11 countries in Asia, then crossed these data with secondary sources of information. Nearly half the MNCs subdivide the Asia–Pacific region into clusters of countries, where they locate regional management centres (regional headquarters, regional offices, distribution centres, local offices) with substantial functions and roles. The main drivers of a regional Asian strategy and organisation are the overall size of the MNC and its sales in Asia; the presence of manufacturing activities does not exert any influence. This research identifies ten clusters of countries in Asia, determined by the French MNCs in our sample, on the basis of four main criteria: market orientation/economic logic, geographical and institutional proximity, cultural differences, and the MNC’s own characteristics. Smaller MNCs do not slice Asia into clusters but rather centralise regional decisions and control procedures, implementing few regional management centres in Asia and giving them limited roles and functions.     

The Performance of Venture-Backed Firms: The Effect of Venture Capital Company Characteristics

This paper deals with the empirical investigation of the question as to which type of venture capital (VC) companies determines the growth and survival of istics of VC companies as additional factors that explain the high variation of the employment growth rate of portfolio firms and their probability of surviving. Surprisingly, venture- backed firms financed by independent VC companies are not among the most successful firms. Independent VC companies are some of those with the greatest profit orientation and hence, a high quality of the value chain process is to be expected. Significantly higher employment growth rates are evident for firms financed by locally active VCs. Changes in the board of directors do not have a positive effect on firms' performance. Syndicated investment strategy seems to be a successful strategy.     

Setting competitiveness indicators using BSC and ANP

In this paper a new approach to assess companies' competitiveness performance in an efficient and reliable way is presented. It introduces a rigorous methodology, based on multi-criteria techniques, which seeks to assist managers of companies within a specific industrial sector in providing information about their relative position in order to define improvement action plans. The approach combines the use of the analytic network process (ANP) method with the balanced scorecard (BSC) to achieve competitiveness indicators. The ANP method allows the aggregation of experts’ judgments on each of the selected indicators used into one company competitiveness index (CCI). To demonstrate the goodness of the methodology, a case study of the plastic sector of Venezuela has been carried out. Three companies have been analysed using the CCI proposed. The participating experts agreed that the methodology is useful and an improvement from current competitiveness measurement techniques. They found the results obtained coherent and the use of resources significantly less than in other methods.     

What does return on investment (ROI) mean to the pharmaceutical/biotechnology industry?

Abstract

Return on investment (ROI) calculations are common tools used by pharmaceutical and biotechnology companies in evaluating product returns, guiding decisions on further product development or terminating programs prior to company losses. ROI calculations compare the estimated profits from a product to the investments necessary to get the product developed, approved and marketed. Risk factors are incorporated into the ROI, which consider multiple factors including competitor products and market demand. ROI calculations enables a company to set and apply metrics for the evaluation of projects that can be applied consistently, across a portfolio, and goes beyond simple profitability assessments. When coupled with additional financial tools and strategic evaluations such as strengths, weaknesses, opportunities and threats (SWOT) analysis, ROI can provide invaluable and comparable insight into the value of potential projects and products. Here, we present a framework for executing ROI calculations to enable investment or termination decisions for research and development projects. This is augmented with insight on how to apply the framework to academic, government and NGO evaluations where ‘profits’ are not always measured in purely economic terms. Implementing ROI in the evaluation process facilitates go/no go decisions and the comparison of projects using a simple, consistent financial approach.     

Have information technologies evolved towards accommodation of knowledge management needs in Basque SMEs?

This paper categorizes in terms of size, the behaviour of the Basque small and medium-sized enterprises (SMEs) in the use of information technology (IT) tools as enablers of knowledge management practices. As part of this research, this article concludes as well about the suitability of collaborative tools in organic and flexible less informal organizations, such as small enterprises. The evolution of technology trends towards the use of collaborative platforms to support knowledge capturing and sharing in a less standardized way. Therefore, this characteristic of collaborative tools allows the smallest SMEs to have at their disposal a flexible tool for knowledge sharing.     

Effect of firm characteristics,supplier relationships and techniques used on Supply Chain Risk Management (SCRM): an empirical investigation on French industrial firms

Recent years have witnessed a focus on managing risks in supply chains. On the one hand, there are many cases where events like natural disasters, strikes and terrorism have significantly influenced the performance of organisational supply chains and in turn their competitiveness. And on the other hand, operational activities and strategic decisions of the firms (concerning, for e.g. supply, procurement, production, delivery, commercialisation, demand management, planning, etc.) can be different than expected and so create uncertainties. Uncertainties, whether they are external or internal, impact organisations leading to increased supply chain risk. Realising the potential implications of these situations on supply chain competitiveness, an attempt has been made to define risks and their sources and to identify the management that can help reduce the negative impact of risks on supply chains. In this paper, a framework for supply chain risk management (SCRM) is proposed and is applied using the data collected from 164 French companies, in manufacturing sector. The literature review, theoretical framework and empirical research undertaken in this work have led to identifying critical success management for SCRM. The focus of this paper is the inter-organisational management of supply chain risk: the collaborative relationship (with industrial and supply partners) can be considered as an efficient way to make SCRM. The paper finishes with a summary of the findings and conclusions, along with suggestions for future research projects.     

Integrating Six Sigma Culture and TPM Framework to Improve Manufacturing Performance in SMEs

Worldwide, small and medium enterprises (SMEs) have been accepted as the engine of economic growth, especially in the emerging economies, and for promoting equitable development their contribution as a component to nation's infrastructure is relatively high. Global competition forces SMEs to improve their competitiveness by enhancing their manufacturing performance. Hence, they have to pay attention to the reliability of their production processes as well as their commitment to quality management practices. In present times, because of automation and large‐scale mechanization, higher plant availability, better product quality and longer equipment life had assumed considerable significance among the SMEs. In order to meet the above challenges, adoption and practice of proactive maintenance strategies along with execution of best management practices, i.e. lean Six Sigma (LSS), has become essential for organizations to bring down maintenance and production costs. As evident from literature, both total productive maintenance (TPM) and Six Sigma are key business process strategies employed by SMEs to enhance their manufacturing performance. However, whilst there is significant research information available on implementing these systems in an independent manner, there is little information available relating to the integration of these approaches to provide a unified and highly effective implementation framework. The purpose of this paper is thus to develop an integrated model based on Six Sigma and TPM framework focusing on adding performance indicators. The goals of the study were achieved by utilizing various tools such as ‘brainstorming sessions, pareto analysis fish‐bone diagrams, histograms, FMEA, box plots, control charts and process capability plots for analysis’. While implementation of such twin framework requires greater management commitment in terms of training, resources and integration, they are also expected to provide higher levels of equipment and plant performance as evident from the results. The results show significant improvement in OEE level (Before 50, 54 and after 76, 83 for M/C –I and M/c‐II), reduction in rework (from 22% to 10%), reduction in maintenance versus operation cost (from 30% to 10%) and reduction in defect rate (from 24.82% to 5%) and average outgoing quality level (from 30% to 5%). The substantial improvement in sigma level from 2.16 and 2.64 to 4.01 and 4.12 for M/C –I and M/C‐II resulted in financial savings of approximately $2 m per annum. Copyright © 2013 John Wiley & Sons, Ltd.     

Reflection of cross-disciplinary research at Creative Research Institution (Hokkaido University) in the Web of Science database: appraisal and visualization using bibliometry

This study describes the results of a preliminary bibliometric analysis of 611 research items, published between 1996 and 2011 by researchers affiliated with Creative Research Institution (CRIS) and the Center for Advanced Science and Technology (CAST), Hokkaido University (HU), retrieved from the Web of Science (WoS) database. CRIS has a primary mission to promote cutting-edge, world-class, trans-departmental research within HU, and it conducts fundamental, commercialization-related, cross-disciplinary research and nurtures young in-house/recruited researchers through targeted, innovative tenure-track programs in multiple disciplines. Its research output derives from 3- to 7-year-long time-bound projects funded strategically by HU, external grants [e.g., MEXT Super-COE HU Research and Business Park Project (FY2003-7)], industry-university collaboration with regional businesses, and endowments (e.g., Meiji Dairies). Analyses using co-words, bibliographic coupling, overlay map aided with visualization, etc., lead to the following inferences: (i) The published items comprise a dozen well-defined (inter-)disciplinary clusters, dominated by 3 macro-disciplines (biomedical science, 33%; chemistry, 21%; agricultural science, ca. 10%) that constitute 18 clusters used for mapping; (ii) research conducted by externally funded or endowed projects in the biomedical, physical and environmental science and technology fields (3 broad areas of aggregation derived from the Science Overlay Map) is interdisciplinary; and (iii) there is an apparently low visibility of publications from projects jointly executed with industries to an almost complete absence of output from CRIS in the fields of social sciences in the WoS database.     

Cost management through product design: target costing approach

The purpose of this study is to explore the role of target costing in managing product costs while promoting quality specifications that will meet customer requirements. In addition, it aims to develop a target costing module that will simplify implementation of target costing especially in small and medium enterprises (SMEs). Tools of operations management such as quality function deployment (QFD) and value engineering (VE) have been considered and evaluated in terms of their integration into the target costing. In order to investigate the total effect, an implementation of the QFD deployment–target costing process (QFD–TC process) was conducted in a small manufacturing company. Previous studies on target costing were mostly conducted in lead companies. This study focuses on implementation of the QFD–TC process in SMEs. Overall, it was found that the QFD–TC process was an essential technique in managing the costs of both a product and the overall production process. Combining target costing with QFD and VE techniques provides companies with a competitive cost advantage.     

Rescher's Principle of Decreasing Marginal Returns of Scientific Research

In his book "Scientific Progress", Rescher (1978, German ed. 1982, French ed. 1993)developed a principle of decreasing marginal returns of scientific research, which is based, interalia, on a law of logarithmic returns and on Lotka's law in a certain interpretation. In the presentpaper, the historical precursors and the meaning of the principle are sketched out. It is reported onsome empirical case studies concerning the principle spread over the literature. New bibliometricdata are used about 19th-century mathematics and physics. They confirm Rescher's principleapart from the early phases of the disciplines, where a square root law seems to be moreapplicable. The implication of the principle that the returns of different quality levels grow theslower, the higher the level, is valid. However, the time-derivative ratio between (logarithmized)investment in terms of manpower and returns in terms of first-rate contributors seems not to belinear, but rather to fluctuate vividly, pointing to the cyclical nature of scientific progress. Withregard to Rescher's principle, in the light of bibliometric indicators no difference occurs betweena natural science like physics and a formal science like mathematics. From mathematical progressof the 19th century, constant or increasing returns in the form of new formulas, theorems andaxioms are observed, which leads to a complementary interpretation of the principle of decreasingmarginal returns as a principle of scientific "mass production".     

The Recent Growth Performance of US Firms in the Industrial Design Sector: An Exploratory Study

This paper assesses the competitive factors associated with company growth in the US industrial design sector. This small but technologically advanced sector delivers critical innovation inputs to firms that produce durable goods. Evidence from a survey of 85 US design companies suggests that competitive success hinges upon service diversity. Specifically, the most commercially buoyant companies have diversified their service offerings beyond product or component design. These firms have developed strategic competencies in fields such as contract research, prototype development, product testing, technological forecasting, market analysis and even advertising. Although most US design companies are small-to-medium-sized enterprises, successful firms do not differ from their less successful counterparts in terms of employment size, occupational structure, regional location or market focus (client sectors). Instead, the key differences lie in service diversity and the quality of human capital. The paper concludes with a brief discussion of the implications of the empirical findings for future research on the dynamics of the design industry.     

An Exploratory Study on the Transition from OEM to OBM: Case Studies of SMEs in Korea

This study investigates how the transformation of latecomer small- and medium-sized enterprises (SMEs) in emerging economies from dependent or subcontracting original equipment manufacturing (OEM) firms into independent or original brand manufacturing (OBM) firms is possible to achieve a significant catch-up in their share of regional or global markets. Given that SMEs are rarely able to make such a transition, we elaborate this dynamic process by performing case studies on eight Korean SMEs. These SMEs created their own paths instead of following their forerunners. These paths are neither entirely new nor take the form of leapfrogging, but are characterized by new combinations of existing paths. We identify several risk factors, such as counterattacks and intellectual property lawsuits, that latecomer SMEs face from incumbent SMEs. In addition, we emphasize the importance of cultivating firm-specific knowledge by engaging in a continuing process of trial and error type in-house experiments.     

Comparison and evaluation of domestic and international outputs in Information Science &; Technology research of China

Summary The purpose of this paper is to evaluate the basic research performance of key projects in the field of information science & technology funded by National Natural Science Foundation of China (NSFC) from both international and national perspectives during the period 1994-2001, based upon the Science Citation Index (SCI) and China Scientific and Technical Papers and Citations (CSTPC) databases. We compare the international and domestic outputs of the key projects by applying various scientometric indicators and techniques. The findings indicate that, as a whole, the research performances of the key projects have, to different degrees, increased in both international and domestic papers during the period of study. Semiconductor is the internationally most productive sub-discipline and Automatization is the domestically most productive sub-discipline, measured on average per project. The Combination Impact Factor (CIF), which integrates the CSTPC-IF and the SCI-IF into the evaluation process, is further proposed for the combined evaluation of domestic and international outputs of the key projects. In terms of ratio of CIF relative to the funds in each sub-discipline, results also show that Semiconductor is the most productive sub-discipline and Computer is the least productive one. Using correlation analysis a significant and positive relationship between the SCI-IF and the CIF has been found for the evaluated projects.