Description
This detailed outline pertaining to managing innovation and entrepreneurship in technology based firms.
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 43, NO. 2, MAY 1996 219
0018-9391/96$05.00 0 1996 IEEE
to consider acquiring technology externally as opposed to developing
it in-house, and the process of implementing and evaluating a
technological strategy. Rather than providing on “cookie cutter”
approach to operationalizing their ideas, Goodman and Lawless
provide a wide variety of alternative assessment and change tools.
Their approach indicates a clear understanding of the importance
of offering practitioners as many opportunities and techniques as
possible to realize their goals.
Technology und Strutegy is one of those rare books that operates
well on two levels: it retains its academic integrity while refusing to
sacrifice managerial practicality. Though well-grounded in the current
theory, the book explores territory that cannot fail to interest the
practitioner reader, including techniques for diagnosing and managing
a wide range of technology strategies. A thoroughly researched
and well-written work, this book should be mandatory reading
in both university classrooms and the executive suites of modern
corporations.
Managing I nnovati on and Entrepreneurship in
Technology Based Firms-Michael J . C. Martin
(New York: Wiley, 402 pp., 1994)
Reviewed by Jeffrey K. Pinto.
The effective management of innovation has always been more
than simply the newest watch word i n the current crop of popular
management literature. That it has achieved the dubious distinction
of “buzz word” status in recent years does not lessen its importance
one iota. In fact, because of the rise in popularity of the term, it
has actually made those books that offer an informative and useful
treatment of the topic that much more rare and valuable. Martin’s
work is one such useful contribution to a growing market in the twin
areas of innovation and entrepreneurship. The author is not newly
arrived on the scene; in fact, in his preface he notes that this book
is an update of one he had written a decade earlier. Consequently,
Martin knows whereof he speaks. He has written and taught in these
areas long before they attained their current high-profile status.
In his book, Managing Innovation and Entrepreneurship in
Technology-Based Firms, Martin sets himself a daunting task. To
attempt to expound, in one volume, both a coherent philosophy
and a practical guide to the effective management of innovation
and entrepreneurship may, on the surface, seem impossible or at
best, hopelessly superficial. In fact, Prof. Martin has created a work
that largely succeeds, thanks to his ability to steer a coherent path
through a densely packed subject while winnowing out most of the
necessary facets of corporate innovation and entrepreneurship. His
goal in writing this book is plainly stated-he notes the widening
rift between two fundamental coalitions in modern corporations,
the managerial core and the technologists (including engineers and
scientists) so key to innovation and new product development. Martin
seeks to bridge the gap between those engineers and technologists
suffering from (as he terms it) “management aversion” and managers
who have allowed themselves to develop “technology aversion” (p.
8). If technology-based organizations continue to allow a polarizing
Manuscript received December 7, 1995.
The reviewer is with the School of Business Administration, Pennsylvania
Publisher ItemIdentifier S 0018-9391 (96)05247-6.
StateUniversity, Erie, PA 16563 USA.
of these two groups, the effects will negate their overall ability to
successfully compete.
The book is divided into six sections. Section I presents something
of a prologue regarding the innovation process, making excellent use
of case examples and well-formulated theory. It lays a groundwork
for establishing the importance of the topic for corporate success.
Section I1 sets, the stage for innovation within the corporate setting. Its
two chapters idiscuss the corporate technological innovation base and
strategies for innovation management. Chapter Four, in particular,
does an excellent job of blending the concepts of technological
innovation with strategic planning, linking a company’s technology
to portfolio analysis. Overall, this is one of the strongest and most
important chapters.
For me, Section 111on the R&D setting is the heart of Martin’s
book and paradoxically, offers both its most important messages and
some of its most obvious flaws. First, Chapters Five and Six, on R&D
Management and Project-Product Evaluation, respectively, are thor-
ough and important treatments of these topics. A clear understanding
of them is essential to corporate technological innovation success
and the autho’r does the topics justice with a discussion that, though
necessarily broad, loses nothing in terms of depth. Readers will find
important information and a timely and highly readable treatment
of these issues. On the other hand, Chapter Seven, “Matching
Organizational and Individual Needs in R&D,” is a hodgepodge of
disparate and often weakly linked issues with no clear unifying theme.
The discussio’n wanders from promotion criteria for R&D scientists,
to project championing, to new idea generation. Finally, almost as an
afterthought, a cursory discussion of matrix organization structures is
thrown in the. last three pages. This discussion adds little additional
value, coming as it does without offering strengths and weaknesses of
this and other types of structures for R&D firms. Likewise, Chapter
Eight, “Project Management,” was disappointingly short, with this
entire critical topic covering only 12 pages of text.
Section IV provides a fine overview of the operational setting of
R&D within the organizational context. Its chapter on transferring the
project from lR&D to operations is a useful, although brief, treatment
of an important area-one the author correctly notes must be attended
to with care given the wide range of practical errors that can occur
in attempting to commercialize the findings of the laboratory.
In Section V, Prof. Martin shifts gears and opens a discussion of
the Entrepreneurial Setting in modem corporations. His discussion in
Chapters 10-12 represents an intriguing balance of practical advice
to fledgling entrepreneurs (including personality characteristics of
successful entrepreneurs, sources of financing, and constructing a
business plan) and a broader discussion of the role of the entre-
preneurial mentality within larger corporations. While perhaps not
for every reader, the material is down-to-earth, comprehensive. and
laden with excellent case examples from some of the most successful
“entrepreneurial” firms.
In Section VI, “Strategic Setting,” the reader is returned to the
broader context of the corporate setting. The two chapters discuss
the role that external technology acquisition and partnering plays
in technology strategies. Issues such as R&D cost sharing and
problems of technology transfer are raised. Finally, the book offers
some strategies for sustaining long-term innovative practices and
entrepreneurship within technology-based firms, drawing from recent
research and real-life examples.
Managing lnnovution and Entrepreneurship in Technology-Bused
Firms largely succeeds in capturing the essence of these difficult
220 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 43, NO. 2, MAY 1996
and complex issues. Its particular strength lies in the author’s ability
to provide just the right amount of depth to go with the extensive
breadth of these topics. Throughout, he makes good use of practical
examples and case discussions. On the other hand, as an update of his
1984 work, this book is likely to frustrate some academic readers due
to its uneven and sometimes dated references. For example, Chapter
Ten, which kicks off the discussion of entrepreneurship, contains 43
references. Yet with all that has been written in recent years on this
topic, only six of those references are less than a decade old. Other
chapters are similar in that their references are predominantly older
and only sparsely scattered with more current cites.
In spite of these concerns, Managing Innovation and Entrepreneur-
ship in Technology-Based Firms is an important work and a plea-
surable reading experience. Practitioners in particular will find the
author’s writing style pragmatic and accessible. Further, he disdains
a purely academic/theoretical approach to this material, grounding
his major points in comprehensive examples that cannot fail to
drive his points home. This book will be particularly welcome
in high-technology firms, especially those currently wrestling with
the problems of coordinating the activities of “technology-averse”
managers with “management-averse” technologists.
World Class-Rosabeth Moss Kanter (New York: Simon
and Schuster, 416 pp., 1995) Reviewed by R. C. Do$
Globalization of business and communities is causing revolutionary
impacts on companies and cities. In World Class, Kanter sends
a message calling for reinvention of business and governments
worldwide. How does globalization change the requirements for
business success and community vibrancy? How can cities and
regions attract and retain the best companies and attractive jobs?
America is a primary business leader, but it is difficult for com-
panies and regions to automatically retain and monopolize power
and remain dominant. The standards to meet and the groups to join
are “world class.” World class, in this context, means meeting the
highest standards of quality and the growth of leadership defined by
its ability to access resources and operate globally. Kanter believes
that the leaders are defined as cosmopolitans who are rich in three
assets: 1) concepts-the best and latest knowledge and ideas, 2)
competence-the ability to operate with the highest quality, and 3)
connections-the best worldwide relationships.
By contrast, locals are defined by place and community rela-
tionships. However, while economies are globalizing, politics are
localizing.
Kantor aptly wonders why any company has to relate to any place
once it joins the world class. Her answer wisely describes cities and
regions that attract world class companies as those that hold and
continuously develop one of three key resources: 1) knowledge, 2)
manufacturing capacity and skills, or 3) trading skills and networks.
Regions such as the Boston area or the San Francisco Bay area
specialize in knowledge building, education, and concept leadership
thus relating best to companies such as Sun Microsystems and Oracle,
which are built on highly educated, intellectually skilled workers.
Manuscript received February 1996.
Thereviewer is with theUniversity of California, Davis, CA 95616 USA.
Publisher ItemIdentifier S 0018-9391(96)05246-4.
Regions such as the Carolinas and Wisconsin emphasize exe-
cutional competence and manufacturing competencies. By contrast,
regions that specialize in trading emphasize connections and normally
are located at a crossroads of cultures, thus assisting the moving of
goods and services across borders. Examples of trading centers are
Hong Kong and Miami.
To grow globally, companies need all three assets: concepts,
competence, and connections. These assets continuously grow from
investments in innovation, education, and collaboration. Regions that
thrive will efficiently provide the underlying assets of education,
intellectual vibrancy, and facilitation of networks. These regions
support constant learning and collaboration, encourage a culture of
enterprise, and foster an openness to change.
Successful global businesses will be world class when they evi-
dence the ability to l ) launch new products and services simultane-
ously worldwide, 2) set and maintain global standards, 3) develop a
global supplier network, 4) produce and maintain products anywhere
in the world, and 4) effectively enable leadership across all of their
world locations. Examples of such companies include Nestlir, Sara
Lee, ABB, Honda, Hewlett-Packard, and Intel.
Cosmopolitan companies win because they stress the value of
exports in order to achieve market share, growth, economies of geo-
graphical scope, and learning. Companies in industries of the future
are born global. In addition, they accentuate the establishment of
interfirm linkages across the world. Examples are Gillette, Powersoft,
and Genzyme.
The real problem for locals is not only globalization, but the
impact of isolation, scapegoating of foreigners, and loss of economic
vitality. Change is feared and corporate reorganization is unwelcome.
Communities that encourage investment in human capital through
education, new venture creation and entrepreneurship remain secure
through change. Examples of companies and communities are Mi-
crosoft (Seattle, WA), EG&G (Boston, MA), and Varian (Palo Alto,
CA). Security for workers and their communities is based on world
class quality, innovation, a clearly known core capability, and wide
reaching networks. With a trend toward decentralized enterprises, the
support of a headquarters for one community declines.
Success elements for lively power cities of world class concept
based innovative companies include: 1) magnets for brainpower
(M.I.T. and Harvard), 2) technology transfer from university to
company (M.I.T. Liaison Program and Stanford Tech Transfer),
3) Availability of venture capital (Boston, New York, and San
Francisco), 4) industry clustering and networks (Silicon Valley and
Austin), and 5 ) quality of life (Portland and Phoenix).
The success elements for the growth of a region with powerful
companies based on competence and execution abilities requires:
1) excellent educational institutions, 2) a solid base of midsize
entrepreneurial support companies, 3) a hospitable business climate,
4) a flexible work force, and 5) an infrastructure for collaboration.
The success elements for the companies relying on trading skills
are characterized by those of sound trading centers such as Miami
and Los Angeles: 1) a modern infrastructure, 2) strong cultural
connections across borders, 3) foreign capital available, and 4)
multinational entrepreneurs.
Kantor suggests that cosmopolitan business leaders should change
the title on their business cards to
Destroyer of Walls. Builder of Bridges.
She notes that a key personal asset is mental agility. World class
cities can attract and retain the appropriate set of companies (concept,
0018-9391/96$05.00 0 1996 IEEE
doc_171641231.pdf
This detailed outline pertaining to managing innovation and entrepreneurship in technology based firms.
IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 43, NO. 2, MAY 1996 219
0018-9391/96$05.00 0 1996 IEEE
to consider acquiring technology externally as opposed to developing
it in-house, and the process of implementing and evaluating a
technological strategy. Rather than providing on “cookie cutter”
approach to operationalizing their ideas, Goodman and Lawless
provide a wide variety of alternative assessment and change tools.
Their approach indicates a clear understanding of the importance
of offering practitioners as many opportunities and techniques as
possible to realize their goals.
Technology und Strutegy is one of those rare books that operates
well on two levels: it retains its academic integrity while refusing to
sacrifice managerial practicality. Though well-grounded in the current
theory, the book explores territory that cannot fail to interest the
practitioner reader, including techniques for diagnosing and managing
a wide range of technology strategies. A thoroughly researched
and well-written work, this book should be mandatory reading
in both university classrooms and the executive suites of modern
corporations.
Managing I nnovati on and Entrepreneurship in
Technology Based Firms-Michael J . C. Martin
(New York: Wiley, 402 pp., 1994)
Reviewed by Jeffrey K. Pinto.
The effective management of innovation has always been more
than simply the newest watch word i n the current crop of popular
management literature. That it has achieved the dubious distinction
of “buzz word” status in recent years does not lessen its importance
one iota. In fact, because of the rise in popularity of the term, it
has actually made those books that offer an informative and useful
treatment of the topic that much more rare and valuable. Martin’s
work is one such useful contribution to a growing market in the twin
areas of innovation and entrepreneurship. The author is not newly
arrived on the scene; in fact, in his preface he notes that this book
is an update of one he had written a decade earlier. Consequently,
Martin knows whereof he speaks. He has written and taught in these
areas long before they attained their current high-profile status.
In his book, Managing Innovation and Entrepreneurship in
Technology-Based Firms, Martin sets himself a daunting task. To
attempt to expound, in one volume, both a coherent philosophy
and a practical guide to the effective management of innovation
and entrepreneurship may, on the surface, seem impossible or at
best, hopelessly superficial. In fact, Prof. Martin has created a work
that largely succeeds, thanks to his ability to steer a coherent path
through a densely packed subject while winnowing out most of the
necessary facets of corporate innovation and entrepreneurship. His
goal in writing this book is plainly stated-he notes the widening
rift between two fundamental coalitions in modern corporations,
the managerial core and the technologists (including engineers and
scientists) so key to innovation and new product development. Martin
seeks to bridge the gap between those engineers and technologists
suffering from (as he terms it) “management aversion” and managers
who have allowed themselves to develop “technology aversion” (p.
8). If technology-based organizations continue to allow a polarizing
Manuscript received December 7, 1995.
The reviewer is with the School of Business Administration, Pennsylvania
Publisher ItemIdentifier S 0018-9391 (96)05247-6.
StateUniversity, Erie, PA 16563 USA.
of these two groups, the effects will negate their overall ability to
successfully compete.
The book is divided into six sections. Section I presents something
of a prologue regarding the innovation process, making excellent use
of case examples and well-formulated theory. It lays a groundwork
for establishing the importance of the topic for corporate success.
Section I1 sets, the stage for innovation within the corporate setting. Its
two chapters idiscuss the corporate technological innovation base and
strategies for innovation management. Chapter Four, in particular,
does an excellent job of blending the concepts of technological
innovation with strategic planning, linking a company’s technology
to portfolio analysis. Overall, this is one of the strongest and most
important chapters.
For me, Section 111on the R&D setting is the heart of Martin’s
book and paradoxically, offers both its most important messages and
some of its most obvious flaws. First, Chapters Five and Six, on R&D
Management and Project-Product Evaluation, respectively, are thor-
ough and important treatments of these topics. A clear understanding
of them is essential to corporate technological innovation success
and the autho’r does the topics justice with a discussion that, though
necessarily broad, loses nothing in terms of depth. Readers will find
important information and a timely and highly readable treatment
of these issues. On the other hand, Chapter Seven, “Matching
Organizational and Individual Needs in R&D,” is a hodgepodge of
disparate and often weakly linked issues with no clear unifying theme.
The discussio’n wanders from promotion criteria for R&D scientists,
to project championing, to new idea generation. Finally, almost as an
afterthought, a cursory discussion of matrix organization structures is
thrown in the. last three pages. This discussion adds little additional
value, coming as it does without offering strengths and weaknesses of
this and other types of structures for R&D firms. Likewise, Chapter
Eight, “Project Management,” was disappointingly short, with this
entire critical topic covering only 12 pages of text.
Section IV provides a fine overview of the operational setting of
R&D within the organizational context. Its chapter on transferring the
project from lR&D to operations is a useful, although brief, treatment
of an important area-one the author correctly notes must be attended
to with care given the wide range of practical errors that can occur
in attempting to commercialize the findings of the laboratory.
In Section V, Prof. Martin shifts gears and opens a discussion of
the Entrepreneurial Setting in modem corporations. His discussion in
Chapters 10-12 represents an intriguing balance of practical advice
to fledgling entrepreneurs (including personality characteristics of
successful entrepreneurs, sources of financing, and constructing a
business plan) and a broader discussion of the role of the entre-
preneurial mentality within larger corporations. While perhaps not
for every reader, the material is down-to-earth, comprehensive. and
laden with excellent case examples from some of the most successful
“entrepreneurial” firms.
In Section VI, “Strategic Setting,” the reader is returned to the
broader context of the corporate setting. The two chapters discuss
the role that external technology acquisition and partnering plays
in technology strategies. Issues such as R&D cost sharing and
problems of technology transfer are raised. Finally, the book offers
some strategies for sustaining long-term innovative practices and
entrepreneurship within technology-based firms, drawing from recent
research and real-life examples.
Managing lnnovution and Entrepreneurship in Technology-Bused
Firms largely succeeds in capturing the essence of these difficult
220 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 43, NO. 2, MAY 1996
and complex issues. Its particular strength lies in the author’s ability
to provide just the right amount of depth to go with the extensive
breadth of these topics. Throughout, he makes good use of practical
examples and case discussions. On the other hand, as an update of his
1984 work, this book is likely to frustrate some academic readers due
to its uneven and sometimes dated references. For example, Chapter
Ten, which kicks off the discussion of entrepreneurship, contains 43
references. Yet with all that has been written in recent years on this
topic, only six of those references are less than a decade old. Other
chapters are similar in that their references are predominantly older
and only sparsely scattered with more current cites.
In spite of these concerns, Managing Innovation and Entrepreneur-
ship in Technology-Based Firms is an important work and a plea-
surable reading experience. Practitioners in particular will find the
author’s writing style pragmatic and accessible. Further, he disdains
a purely academic/theoretical approach to this material, grounding
his major points in comprehensive examples that cannot fail to
drive his points home. This book will be particularly welcome
in high-technology firms, especially those currently wrestling with
the problems of coordinating the activities of “technology-averse”
managers with “management-averse” technologists.
World Class-Rosabeth Moss Kanter (New York: Simon
and Schuster, 416 pp., 1995) Reviewed by R. C. Do$
Globalization of business and communities is causing revolutionary
impacts on companies and cities. In World Class, Kanter sends
a message calling for reinvention of business and governments
worldwide. How does globalization change the requirements for
business success and community vibrancy? How can cities and
regions attract and retain the best companies and attractive jobs?
America is a primary business leader, but it is difficult for com-
panies and regions to automatically retain and monopolize power
and remain dominant. The standards to meet and the groups to join
are “world class.” World class, in this context, means meeting the
highest standards of quality and the growth of leadership defined by
its ability to access resources and operate globally. Kanter believes
that the leaders are defined as cosmopolitans who are rich in three
assets: 1) concepts-the best and latest knowledge and ideas, 2)
competence-the ability to operate with the highest quality, and 3)
connections-the best worldwide relationships.
By contrast, locals are defined by place and community rela-
tionships. However, while economies are globalizing, politics are
localizing.
Kantor aptly wonders why any company has to relate to any place
once it joins the world class. Her answer wisely describes cities and
regions that attract world class companies as those that hold and
continuously develop one of three key resources: 1) knowledge, 2)
manufacturing capacity and skills, or 3) trading skills and networks.
Regions such as the Boston area or the San Francisco Bay area
specialize in knowledge building, education, and concept leadership
thus relating best to companies such as Sun Microsystems and Oracle,
which are built on highly educated, intellectually skilled workers.
Manuscript received February 1996.
Thereviewer is with theUniversity of California, Davis, CA 95616 USA.
Publisher ItemIdentifier S 0018-9391(96)05246-4.
Regions such as the Carolinas and Wisconsin emphasize exe-
cutional competence and manufacturing competencies. By contrast,
regions that specialize in trading emphasize connections and normally
are located at a crossroads of cultures, thus assisting the moving of
goods and services across borders. Examples of trading centers are
Hong Kong and Miami.
To grow globally, companies need all three assets: concepts,
competence, and connections. These assets continuously grow from
investments in innovation, education, and collaboration. Regions that
thrive will efficiently provide the underlying assets of education,
intellectual vibrancy, and facilitation of networks. These regions
support constant learning and collaboration, encourage a culture of
enterprise, and foster an openness to change.
Successful global businesses will be world class when they evi-
dence the ability to l ) launch new products and services simultane-
ously worldwide, 2) set and maintain global standards, 3) develop a
global supplier network, 4) produce and maintain products anywhere
in the world, and 4) effectively enable leadership across all of their
world locations. Examples of such companies include Nestlir, Sara
Lee, ABB, Honda, Hewlett-Packard, and Intel.
Cosmopolitan companies win because they stress the value of
exports in order to achieve market share, growth, economies of geo-
graphical scope, and learning. Companies in industries of the future
are born global. In addition, they accentuate the establishment of
interfirm linkages across the world. Examples are Gillette, Powersoft,
and Genzyme.
The real problem for locals is not only globalization, but the
impact of isolation, scapegoating of foreigners, and loss of economic
vitality. Change is feared and corporate reorganization is unwelcome.
Communities that encourage investment in human capital through
education, new venture creation and entrepreneurship remain secure
through change. Examples of companies and communities are Mi-
crosoft (Seattle, WA), EG&G (Boston, MA), and Varian (Palo Alto,
CA). Security for workers and their communities is based on world
class quality, innovation, a clearly known core capability, and wide
reaching networks. With a trend toward decentralized enterprises, the
support of a headquarters for one community declines.
Success elements for lively power cities of world class concept
based innovative companies include: 1) magnets for brainpower
(M.I.T. and Harvard), 2) technology transfer from university to
company (M.I.T. Liaison Program and Stanford Tech Transfer),
3) Availability of venture capital (Boston, New York, and San
Francisco), 4) industry clustering and networks (Silicon Valley and
Austin), and 5 ) quality of life (Portland and Phoenix).
The success elements for the growth of a region with powerful
companies based on competence and execution abilities requires:
1) excellent educational institutions, 2) a solid base of midsize
entrepreneurial support companies, 3) a hospitable business climate,
4) a flexible work force, and 5) an infrastructure for collaboration.
The success elements for the companies relying on trading skills
are characterized by those of sound trading centers such as Miami
and Los Angeles: 1) a modern infrastructure, 2) strong cultural
connections across borders, 3) foreign capital available, and 4)
multinational entrepreneurs.
Kantor suggests that cosmopolitan business leaders should change
the title on their business cards to
Destroyer of Walls. Builder of Bridges.
She notes that a key personal asset is mental agility. World class
cities can attract and retain the appropriate set of companies (concept,
0018-9391/96$05.00 0 1996 IEEE
doc_171641231.pdf