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Innovation, Sustainability, and the Levels of Process Management:

Cultural, Corporate, and Global Considerations

Week 6-7 Group A Joy Carter December 2010

COMPONENTS OF THE PROCESSES


Finances
Define budgets, accounting processes, timelines, regulations Assign responsibilities Measure performance Highlight areas for improvement

Human
Study the cultural landscape of the firms in your network, as well as that of the individual actor/agents within it. Establish universally respectful processes and precedures Compensate employees fairly at all levels

Research
Establish research resources, including collaboration and outsourcing options.

THE LITERATURE

Assigned Literature and Readings:

Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptations of Social Capital. Gargiulo, M., & Benassi, M. (2000). S.E.A.: Strategic Evolutionary Advantage. World Futures: The Journal of General Evolution, 60(1/2), 99-114. Laszlo, A., & Laszlo, K. (2004) Match Your Innovation Strategy to Your Innovation Ecosystem. Harvard Business Review, 84(4), 98-107. Adner, R. (2006). Innovating our way to the next Industrial Revolution. MIT Sloan Management Review, 42(2), 2438. Senge, P., & Carstedt, G. (2001). Managing Creativity and Innovation: Chapter 3, Idea Generation: Opening the Genies Bottle. Harvard Business Review (2003) Closing the Innovation Gap. Chapters 5, 6, and 7. Estrin, J. (2009).

SYNTHESIS OF THE LITERATURE

The assigned readings for this presentation provide many details on the ideas of innovation and process management. Complexity and Chaos theories were minimally discussed, but it is clear that a paradigmatic shift in thinking and processes will need to be disseminated across the global business landscape to achieve true innovation and sustainability. The debate over network cohesion and structural holes leads to the obvious conclusion that one approach may fit a particular firm better at a particular time, but there is no blanket prescription or process for choosing. According to Garigiulo and Benassi, The right balance between safety and flexibility may also depend on the stage of the managerial career. Existing research suggests that the relationship between network structure and managerial performance may be contingent on the particular situation of the manager (p. 193, para 4). Fundamentally there is an issue of trust between collaborators, which must be tested, established and measured to create sustainable innovative processes. This point is further illumined by the consideration of globalization, knowledge management, and the concept of evolutionary development. Lazlo (2004) and Adner (2006) delve into the required mechanisms, processes and areas of change necessary to recognize and support a process of evolutionary development which can or should lead to an environment of sustainable innovation. To accomplish this, we must begin at the firm level and utilize the tools of organizational learning to disseminate and manage this new knowledge economic era. Senge & Carstedt (2001) provide comprehensive reflection on past and future waves of innovation, noting, though, as did Estrin (2009) and the Harvard Business Review (2003), that successful innovation can only be achieved when a financial, ecological and social syntony of processes in this global economy are operating in a consistent state of balance.

SYNTHESIS OF THE LITERATURE:

KEY THEMES AND CONCEPTS


Process Management Structural Holes vs. Network Cohesion Knowledge Management (Phases/generations) Globalization Evolutionary Development Sustainable Competitve Advantage Organizational Learning Economy of Nature Syntony Innovation Ecosystems Initiative Risks Interdependence Risks Integration Risks

LEVELS OF PROCESS MANAGEMENT

Individual/Human Level
Personal Belief Systems Cultural Expectations Individual Ambitions

Corporate Level Global Level


Ecologically beneficial practices Accountability systems Nationalism Product development and innovation Knowledge management Collaborative Networks Accountability Systems

Product innovation

Open Systems

GAPS IN THE LITERATURE


Actors who adopt both or mutant forms of social capital relationships and the effect this dual approach has on each individual actors goals and strengths, as well as the effects this dual approach has on their co-op players as well as their competition.

What are the risks and benefits of each form of social capital relationship? And how can firm managers know when to follow one or the other?

What are the costs of adopting this new era evolutionary knowledge management system? How do smaller, marginalized consumers, nations and firms fit and operate within this evolving ecosystem?

GAPS IN THE LITERATURE, cont.


How does nationalism affect the progress and process of globalization and innovation? How does nationalism affect the social capital choices and timing of various actors?

How do corporations and managers properly cherry pick the processes to help them innovate and promote sustainability?

How can governments, regions, companies and consumers perceptions of business and knowledge management be successfully changed en masse to accept this new paradigm and affect sustainability? What processes have to change?

PROPOSED TOPIC AND BACKGROUND

How do culture, nationalism and economic inequalities affect the main process management choices of individuals and firm managers? The background of this topic is rooted in my belief that individuals and their choices, skills and culture underlie every aspect of process management and even business in general. Where choices, skills and information are limited, processes are limited or inaccessible. For example, entrepreneurs in parts of African are working to innovate the process of making Internet purchases. Currently, some parts of Africa are cut- off from

services such as Amazon, EBay or Pay-Pal. For fascinating insights into the process of
accommodating human needs and business innovation thru technology please refer to the CNBC Executive Series link here: http://www.cnbc.com/id/15840232?video=1614209333&play=1

ANNOTATED BIBLIOGRAPHY
Bozionelos, N., & Kostopoulos, K. (2010). What Accounts for Job Satisfaction Differences Across Countries?. Academy of Management Perspectives, 24(1), 82-84. Retrieved from Business Source Complete database. The authors provide a macro, meso, and micro level view of the variances in job satisfaction around the globe and the possible explanations for those variances. It is established that indeed job satisfaction levels are different in different parts of the world. Additionally, the difficulty or intricacy of determining the reasons for these differences is discussed, with possible explanations lying in the types of workforce compositions and the percentage of professional level jobs available in a particular area.

Cappelli, P. (2009). The Future of the U.S. Business Model and the Rise of Competitors. Academy of Management Perspectives, 23(2), 5-10. Retrieved from Business Source Complete database. Cappelli aptly lays out the case for past domination of the U.S. model of business in the areas of finance and mass production. He deftly explains the currently faltering state of U.S. dominance in light of and in response to the financial management scandals which have been creating headlines for more than a decade. These scandals have also created some headway for other business models and governmental competitors, especially in Asian markets to come to the forefront of global business concerns.

ANNOTATED BIBLIOGRAPHY, cont.


Delios, A. (2010). How Can Organizations Be Competitive but Dare to Care?. Academy of Management Perspectives, 24(3), 25-36. Retrieved from Business Source Complete database.

Delios explores the notion that socially responsible practices might harm or jeopardize the competitiveness of a caring firm. He goes further though, to explain how corporations can take the initiative to change the nature of the competitive environments they operate in. Delios asserts that firm leaders and managers can exert pressure and influence on policy makers and power players to create normative and accepted processes across the global business landscape.

George S Yip, Johny K Johansson, & Johan Roos. (1997). Effects of nationality on global strategy. Management International Review, 37(4), 365-385. Retrieved December 10, 2010, from ABI/INFORM Global. (Document ID: 25531807). An older resource which provides a very insightful look at the concepts of global strategy and how such strategy is influence by nationality. The authors correctly surmised that management processes drive the use of global strategy. They also correctly indicated that Americans have lagged behind our European (and more than ever) our Asian (Japanese) counterparts in fully adopting global strategy processes.

ANNOTATED BIBLIOGRAPHY, cont.


Karelaia, N. (2009). Predictably Irrational: The Hidden Forces That Shape Our Decisions. Academy of Management Perspectives, 23(1), 86-88. Retrieved from Business Source Complete database. In this review of the book by Dan Ariely, the authors examine the topics of bias, judgemental heurtistics and decision making. This article and the book are important to any study about huhman process management and culture. It provides insightful perspectives on how human beings make choices at myriad levels.

Ming-Jer, C., & Miller, D. (2010). West Meets East: Toward an Ambicultural Approach to Management. Academy of Management Perspectives, 24(4), 17-24. Retrieved from Business Source Complete database. The authors endorse the idea of non-nationalistic views and expectations in managing businesses. Successful practices from both Western (United States) and Eastern (Asian) cultures are examined for compatibility and best practices.

ANNOTATED BIBLIOGRAPHY, cont.


Pfeffer, J. (2010). Building Sustainable Organizations: The Human Factor. Academy of Management Perspectives, 24(1), 34-45. Retrieved from Business Source Complete database. Pfeffer presents a cogent and timely examination of the literature ( or lack thereof) on the subject of organizations and the effects their choices have on the quality of life, living conditions and socialization of employees. Recommended for support to a study on culture, process management and human capital concerns.

Wyld, D., & Maurin, R. (2009). Keys to Innovation: The Right Measures and the Right Culture?. Academy of Management Perspectives, 23(2), 96-98. Retrieved from Business Source Complete database.

The authors compare and contrast the value of the outputs of radical innovation versus registering patents. They suggest more of a focus on measuring success by the commercialization of new products and services moreso than the number and types of patents owned by a firm. National and corporate culture are viewed as influential to the process of measuring innovation.

ANNOTATED BIBLIOGRAPHY, cont.


Yadong, L., & Huaichuan, R. (2009). An Ambidexterity Perspective Toward Multinational Enterprises From Emerging Economies. Academy of Management Perspectives, 23(4), 49-70. Retrieved from Business Source Complete database. In this article, the authors explore the necessity, benefits and possible outcomes of businesses becoming more aligned with multinational alliances and workforce compositions. After studying this concept in China, the authors believe that for businesses in emerging markets, being ambidextrous in the areas of dompetition and cooperation (collaboration) makes for stronger, businesses with more options and opportunities.

Yunxia, Z., & Jianmin, F. (2010). Does the Relationship Between Job Satisfaction and Job Performance Depend on Culture?. Academy of Management Perspectives, 24(1), 86-87. Retrieved from Business Source Complete database. The research completed by these authors provides solid evidence for the relevance of studying national culture in relations to job satisfaction and performance. This article is vital to a proposed research topic on culture and process management. Job satisfaction and performance can be directly tied to the success or failure of a firm.