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Intentional leadership development: Ensuring senior leadership continuity for community colleges

Author: Meadows Deborah
Publication venue: University of Maryland University College (UMUC)
Publication date: 06/07/2012
Field of study

The purpose and the scope of this study is to identify strategies that will help provide prepared high quality community college applicants in sufficient numbers for the projected increased number of community college CAO and CEO openings. Integrate management theory into a community college leadership sustainability model. assist community colleges in developing a compelling case for action. Identify the skills, knowledge, and competencies needed for successful CAO, CEO, and other community college leadership positions for the 21st century community college. Provide a theory driven model for succession planning/talent management and the delivery of leadership development programs; and identify best practices in succession planning/talent management and leadership development programs for community colleges.Intentional Leadership Development: Ensuring Senior Leadership Continuity for Community Colleges July 6, 2012—DMGT 892 SOARS Presentation Deborah Meadows Doctorate of Management Candidate University of Maryland University College Keywords: Community Colleges; Leadership; Leadership Development; Succession Planning; Talent Management Purpose and Scope of the Research The purpose and the scope of this study is to: • identify strategies that will help provide prepared high quality community college applicants in sufficient numbers for the projected increased number of community college CAO and CEO openings; • Integrate management theory into a community college leadership sustainability model • assist community colleges in developing a compelling case for action; • identify the skills, knowledge, and competencies needed for successful CAO, CEO, and other community college leadership positions for the 21st century community college; • provide a theory driven model for succession planning/talent management and the delivery of leadership development programs; and • Identify best practices in succession planning/talent management and leadership development programs for community colleges. Research Question In community colleges facing massive retirements among senior administrative personnel, how can management theory, leadership development, and succession planning models best be leveraged to assure that community colleges will have the senior level leadership they need in the 21st Century? Significance of this Research for Management This study led to the development of a comprehensive model of succession planning/talent management and higher education leadership development that was guided by identified community college leadership competencies, best practices, and management theory. Promotion of research and evidence-based practice to support the preparation of quality applicant pools needed for replacements of retiring community college CEOs. Main Literature Themes and Authors Theme 1--Higher Education Leadership Crisis Authors: Boggs; Campbell; Leubsdorf; Plinske; Shults; Romero; Steinberg, Snyder, & Klein-Collins; Weisman & Vaughn Theme 2--21st Century Community Colleges Leadership Challenges and Competencies Authors: Amey & VanDerlinden; Goff; Hassan, Dellow, & Jackson; Hockaday & Puyear; Fulton-Calkins & Milling; Knapp & Siegel; Luna & Beaman; Phelan; Shults; Sullivan Theme 3--Higher Education Leadership Theory Authors: Birnbaum; Bolman & Deal; Bolman & Gallos; Eddy; Farnsworth; Knapp & Siegel; Kouzes & Posner: Mumford, Campion, & Morgeson Main Literature Themes and Authors (continued) Theme 4--Intentional Strategies Succession Planning/Talent Management and Leadership Development Programs Authors: Cook; Fulton-Calkins & Milling Hull & Keim; Knott; Ip; Jeandron; Leubsdorf ; Mackey; McDade; Mercer; Neal; Piland & Wolf; Reille & Kezar; Richards; Rothwell; Roueche; Ullman Key Propositions Distilled from the Literature P 1 Leadership can be learned, P 2 Many members of a community college can lead, P 3 Effective leadership is a combination of effective management and vision, P 4 Learning leadership is a lifelong process, and P 5 The leadership gap can be addressed through a variety of strategies Conceptual Framework Thesis Statement Using an evidence-based research methodology approach, this study led to the creation of a comprehensive higher education leadership development and succession planning/talent management model designed to support the development of quality applicant pools to replace retiring community college CEOs. Research Approach & Formation of Argument Identify the Problem Define Research Question Review Literature Evaluate the Selection and the Quality of the Studies Develop Conceptual Model Analysis and Synthesis of Evidence Interpreting the Evidence Presentation of Findings Expert Panel ReviewFindings Finding #1: Large numbers of higher education presidents will retire by 2016 with evidence that similar levels of CEO retirements will continue for several years beyond 2016. 1a. In 2011, higher education CEOs’ average age was 61 and 58% of college presidents were 61 or older. 1b. With so many higher education presidents retiring, the demand for CEO replacements will surpass the supply of well-qualified applicants. 1c. The demands on and the challenges for the 21st century community college increases the difficulty to prepare well-qualified applicants and access a high quality applicant pool. 1d. Since many of the CEO replacements are from other community college leadership positions such as the CAO, the leadership crisis extends beyond the CEO position to throughout the community college leadership pipeline. Finding #2: There are a wide range of challenges affecting the 21st century community college and a surprising range of diversity between different community colleges. 2a. There are challenges that are affecting most community colleges including: budget constraints, enrollment pressures, competition for students, increased tuition rates for students, calls for innovative practices, greater accountability, increased student demographic diversity, technological impacts, and the need for expansion of educational program offerings. 2b. The geographic location, size, and culture of a community college have a large impact on the leadership needs and consequently the leadership development needs of the college. Findings (continued) Finding #3: Finding #3: CEOs are expected to be able to contend with the complexity needed and the many presenting challenges to successfully lead the 21st century community college. 3a. Research has revealed many variations in leadership competency lists. 3b. The AACC seeks to identify their list of six competencies as the one standard for competencies. Finding #4: Well designed and effectively delivered succession planning and leadership development programs are two important strategies to prepare high quality employees and expand replacement applicant pools. 4a. Succession planning and leadership development programs should have institutional wide commitment, be specifically endorsed by both senior administration and faculty leadership, and be integrated into the community college’s vision statement and strategic plans. 4b. Succession planning and leadership development programs, when utilized together, are more effective. 4c. Because of their critical need, succession planning and leadership development programs funding should be maintained during budget constraints. 4d. Succession planning and leadership development programs result in an agile and responsive internal leadership pipeline. Findings (continued) Finding #5. Succession planning/talent management are effective business strategies community colleges have been slow to adopt. 5a. Succession planning/talent management can be adapted to meet higher education’s needs. 5b. Research has identified many best practices for succession planning/talent management. Finding #6. Although there are a number of national, regional, and statewide community college leadership development programs, as well as university-base leadership degree programs, it is still recommended to deliver a locally delivered leadership development program. 6a. The important element of locally identified context such as size and location of a community college and the community college’s culture can be integrated into the local leadership development program. 6b. Research has identified many best practices for leadership development programs. Finding #7: Expansion of leadership and management theory literature relating specifically to community colleges needs. 7a. Calls for research-driven decision making, the use of best practices, research-practitioner models, and the integration of theory into practice for community colleges. 7b. Suggestions that knowledge transfer from business practices and management theory can be adapted and utilized in colleges. Leadership Sustainability Model Implications for Management Practice Illustrates how the transfer of knowledge from business management, leadership theory, and evidence based research can inform higher education leadership development programs Business practices of Succession Planning and Management can be modified to support higher education efforts to meet replacement needs for future leaders There are multiple different strategies to enhance higher education leadership development training such as mentoring, coaching, job shadowing, structured job assignments, and experience in cross-functional team assignments Future Research Agendas • Conduct a survey to identify community colleges that have combined the practice of succession planning/talent management and leadership development programs. • Conduct case studies in community colleges that are integrating the use of succession planning/talent management and leadership development programs. • Research the efficacy of different elements of community college leadership development programs including elements such as mentoring, team projects, job shadowing, job rotation, etc. • Survey and conduct follow-up focused interviews with colleges that have recently sought senior leadership replacement(s) regarding the quality and quantify in their applicant pools

eCommerce management research

Author: Beidleman Timothy L.
Publication venue: University of Maryland University College (UMUC)
Publication date: 26/10/2012
Field of study

Purpose: To provide research for a definitive successful strategy for eCommerce Significance: To establish a new milestone in methodologieseCommerce Management Research • Timothy L. Beidleman ([email protected]) • October 26, 2012Overview • Dissertation Title Current – eCommerce for Business Success and Sustainability: The Organization and Development of an integrated “How To” Tool Box • Purpose To provide research for a definitive successful strategy for eCommerce • Significance To establish a new milestone in methodologiesQuestions to Answer • What are the advantages to developing eCommerce as a primary strategy to provide goods & services? • What can the organization do to prepare for the successful implementation and operationalizing of eCommerce? • Looking at eCommerce and eGovernment from the point of view of possessing the qualities of a new paradigm, how can one allow it to mature faster nationally or globally?Research Overview • Problems Difficulty in setting predictors for adoption Managing Risk involved with eCommerce • Concepts Diffusion of Innovation Technology Technology Acceptance Model Innovation Diffusion Model Innovation Paradigm Systems TheoryeCommerce Mini-Meta-Analysis 1997 2000 2003 Int. Journal of eCommerce 0 6 15 Mgmt Science 0 2 16 Electronic Markets 0 23 11 Comm. Of ACM 0 13 18 Academic Journals 8 39 71 Practitioner Journals 16 66 69 Wareham, et al. (2005). Synthesis Positive growth Identified • Growth in revenues as reported by the US Dept of Commerce. • eCommerce cases validity, Kappa = 0.768 • Outside the US, UK and Asia have higher frequency of eCommerce researcheCommerce effects organizational relationships • Research primarily related to Business 34%30%20%10%6%BusinessInd. AppsIT Infra.Social Iss.Cross DomainBusiness Issues relate to • B2C • Marketing • Strategy • Business Model • ManagementStrategy • Strategy DIT TAM Systems Theory • Schedule (Systems Life Cycle) Adoption Implement Evaluate MonitorIdentifying relevance for this study • Traditional Sigmoid Curve cannot provide necessary relevance for determining outcome.Findings • Developed investigation to determine relevance of various eCommerce methodologies, DIT & TAM showed most relevant in SMEs in hybrid approach • eCommerce shows successful implementation in private and public institutionsAssessing Evidence • Determining relevance • Weighing literature Assessing Evidence (Critical) • Wareham, et al (2005) shows growth in Scholarship and Practice • Pham, et al (2010) shows successful demonstration of DIT and TAM implementation Leverage Information • Each model addresses problems specified in study • Each model answers questions proposed in study Recommendations based on Research • eCommerce implemented with DIT & TAM • eCommerce virtualizes the value chain • eCommerce provides better quality (eGov) • Use proper requirements analyses in assessing • Set up Initiatives to promote technology acceptance (TAM

Organization learning framework for managing massive airline flight disruptions

Author: Larsen Tulinda Deegan
Publication venue: University of Maryland University College (UMUC)
Publication date: 26/10/2012
Field of study

Airlines continue to mismanage massive flight disruptions, despite government intervention, impacts on customer service, and related costs. This study argues that by considering massive flight disruptions through a crisis management lens and layering organization development (OD) interventions with organization learning (OL), airlines can improve the management of events that result in massive flight disruptions to improve passenger satisfaction, reduce costs, and mitigate additional government intervention.Organization Learning Framework for Managing Massive Airline Flight Disruptions Presented by Tulinda Deegan Larsen Candidate, Doctorate of Management [email protected] SOARS Fall 2012 Dissertation Advisors: Dr. Michael A. Evanchik, Dr. Dennis Winters Search Words: flight disruptions, airline operations, airlines, irregular operations, airline passengers, airline delays, crisis management, organization development, organization learning, resiliency, innovative culture Problem Statement • This study argues that by considering massive flight disruptions through a crisis management lens and layering organization development (OD) interventions with organization learning (OL), airlines can improve the management of events that result in massive flight disruptions to improve passenger satisfaction, reduce costs, and mitigate additional government intervention. • Airlines continue to mismanage massive flight disruptions, despite government intervention, impacts on customer service, and related costs. Research Question How can airlines adapt organization development (OD) and organization learning (OL) to better manage massive flight disruptions to increase passenger satisfaction, minimize costs, and mitigate government intervention? Definition: Massive Flight Disruptions A disruptive event that results in multiple flights being delayed, diverted to another airport, or canceled throughout the airline route network Massive flight disruptions negatively impact customer service, create additional costs for airlines, and have led to government intervention Limitations: These events are weather or natural disaster related and include snowstorms, thunderstorms, hurricanes, tropical storms, and volcanic eruptions. Does not include Emergency Events, such as crash, terrorism, hijackings, bomb-threat, etc. Study is limited to U.S. mainline airlines (AA, DL, UA, US) domestic operations. Purpose and Scope of the Research • Design a conceptual framework for managing unexpected, yet recurring events, which can be viewed as a crisis to the operation of the organization • Apply this conceptual framework to airline management of events that led to massive flight disruptions • Management implications for other industries (health care and power companies) in managing unexpected, yet recurring events, which can be viewed as a crisis to operation of the organization Relevance: The Missing Management Perspective • Previous research lacks a management perspective • Massive flight disruption literature falls into four dimensions: Economics and financial cost (Ball, et al., 2006; Jenkins, 2010) Tactical decision management (methods and tools) (Irrgang, 1995; Rogers & Hoyme, 2000; Zang, 2006; Jenkins, 2010; Hoyt, et al., 2010: Bruce, 2011) Robust schedule planning and recovery (Baker, 1995; Clark, Lettovsky & Smith, 2000; DeArmon, Wanke, Beaton, & Miller, 2000) Impact on the travelling public (Ball, et al., 1995; Mether & Rospenda, 2000, Marks & Jenkins, 2010; OIG 2000, 2001, 2007, 2008, 2010; GAO, 2011; U.S. Senate JEC, 2008) • This study focuses on behavioral dimensions to the airline management of massive flight disruptions. Disruption management is a human process based on judgments in Ops Center and technology based decision-making tools 6 Literature Review 4.Airline Management of Flight Disruptions 2.Organization Development 1.Crisis Management 3.Organization Learning 7 Foundational Theories • Change Theory: Lewin (1947) Crisis is an agent for change • Double-loop decision making: Argyis (1976) Seek root cause • Systems Thinking: Senge(1940) Impact across organization • Innovative Culture: Drucker(1995) New solutions Un-FreezeMovementRe-FreezeUnderlying Organization AssumptionsTheoretical Framework: Crisis Management • Crisis is “any situation that has the potential to affect long-term confidence in an organization or product, or which may interfere with its ability to continue operating normally”(Malhotra and Venkatesh, 2009) • Despite differing definitions of crisis, there is consensus on its major characteristics (Lalonde, 2011; Pearson and Clair, 1998). These include: Events that have low probability of occurring, but have a major potential impact on an organization and individuals both inside and outside the organization There is uncertainty about resolution; and There is a limited time in which to act • Crisis management is a “systematic attempt” for management to prevent a crisis and mitigate impacts (Pearson and Clair, 1998) Theoretical Framework: OD & OL • Organization development (OD) is a system-wide application and transfer of behavioral science knowledge to planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness (Yeager & Sorensen, 2009) Both “culture and operational soundness” A set of methods to “address issues of changes, process, and relationships” Open systems approach fostering innovation • Organizational learning (OL) is the process of creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge and insights (Argyis, 1976; Lalonde, 2007, 2011) Integration of the acquired knowledge and lessons learned Double feed-back loops to address root issues Goal: Avoid repeating same errors and minimize impact Lalonde Conceptual Framework My study adapts LaLonde’s crisis management framework to airline management of massive flight disruptions, combining methods of Crisis Management and Organizational Development Source, Lalonde, 2011 PLANNING Crisis Management • Assess capacity to prepare • Risk Analysis OD Intervention • Integrate into corporate strategy • Include all stakeholders LEADERSHIP Crisis Management • Sensitive to external environment • Rapid decision-making and risk-taking OD Intervention • Leadership development • Coaching & Training COORDINATION/ TECHNO-STRUCTURAL Crisis Management • Communications • Collaborative structures OD Intervention • Mainly techno-structural • Networks/Collaboration CIVIL SOCIETY Crisis Management • Civic behavior • Role of media OD Intervention • Community Development CRISIS RESILIENCE - Individual - System Conceptual Framework with Organization Learning 12 Crisis Management: Catalyst for Change Organization Learning Sustainability for Change Organization Development Process for Change RESILIENCE Individual/Controller; Expertise; Innovative; Resourceful System/Airline; Responsive; Focused; Learning RESULT Improved Passenger Satisfaction Minimized costs Mitigated government intervention Organization Learning Quantification and plan for vulnerabilities based on probabilities of massive flight disruptions Collaboration with between planning and Op Center; Integration of Op Center with other departments Real time situational analysis tools with integration to single platform Top management commitment to fostering collaboration across the airline and innovation Crisis Cells, rapid decision making, risk taking based on Op Research tools Passenger understanding through communication Communication with media Operate within 3-Hour Tarmac Rule regulatory constraints Feed-back loops Learning from previous massive flight disruptions Learning from preparation and response to Emergency Events Tools to understand the root causes Learning from tools from other departments Culture of innovation Fostering open systems and culture of innovation Encouragement of knowledge transfer Learn from customer experience Learn from government hearings and studies Conceptual Framework Applied To Airline Management of Massive Flight Disruptions PLANNING COORDINATION/ TECHNO-STRUCTURAL LEADERSHIP CIVIL SOCIETY Organization DevelopmentPropositions • Proposition 1: Planning for periods of high probability that events leading to massive flight disruptions may occur, the identification of the airlines’ vulnerabilities, and planning for events that may lead to massive flight disruptions including “triggering events” that may be precursor to massive flight disruptions, could mitigate the impact on airline operations of events resulting in massive flight disruptions • Proposition 2: Collaborative approach to the management of events that may lead to massive flight disruptions, including the development of a crisis cell and technological solutions driven tools, could mitigate the impact on airline operations and improve customer service • Proposition 3: Crisis leadership and followship skills could be adapted to the management of events that may lead to massive flight disruptions resulting in improved management of passenger issues, minimization of costs to the airline, and mitigation of government intervention • Proposition 4: Improvements in communications with passengers and government agencies prior to, during, and following incidents that lead to massive flight disruptions could be an OD intervention that would improve the management of events that lead to massive flight disruptions • Proposition 5: As an organization, airlines could become more resilient at times of massive flight disruptions by being responsive, focused, and learning from events that may lead to massive flight disruptions Answer to Research Question “The resources required to manage massive flight disruptions are enormous and not practical to have on stand-by” - Russell Chew, Former president JetBlue, FAA COO, AA Operations Hence the need for a behavioral management approach Massive flight disruptions are viewed as an operations problem, but they’re actually a crisis involving the entire airline Solution: Collaboration across the airline Behavioral approach: Crisis management tools integrate with Organization Development interventions Operations staff have no experience across other departments and are risk adverse Solution: Develop a culture fostering innovation, which includes other airline departments Behavioral approach: Organization Learning interventions Methodology • Evidenced Based Research (EBR) with Systematic Review Management research approach adapted from health care industry A systematic review and analysis of existing research to identify gaps and to produce new knowledge Scholarly research, case studies, white papers, dissertations, etc. • Expert panel: Academic experts validated the need to intersect crisis management with organization development and organization learning Aviation experts validated the lack of behavioral research in to airline management of massive flight delays • I supplemented EBR and Expert Panel through discussions with airline operations experts and visits to airline operations centers Findings Crisis is a Catalyst for Change • Organization development provides tools to implement change • Organization learning provides culture for sustainable change Airlines Do Not Address Massive Flight Disruptions as a Crisis •Massive flight disruptions are isolated to a single department issue, i.e., operations •Risk-adverse: Operations staffing have deep operations experience, but no experience across airline departments Implications Management Theory • The theoretical intersection of crisis management with organization development (OD) and organization learning (OL) can lead to resiliency of the individual and organization in responding to unexpected, yet recurring, events that impact operations • Crisis provides the agent for change, OD provides the method for change, and OL provides for sustainability of change Management Practice • Behavioral management concepts can be applied to organizations faced with unexpected, yet recurring, events that impact operations. • Viewing through crisis management lens and layering organization development (OD) interventions with organization learning (OL), can improve the management of unexpected, yet recurring, events that impact operations Management Research • Research to understand how the long-term incorporation of learning that takes place in organizations during unexpected, yet recurring events, that impact operations, leading to improved resiliency of the individual and organization in times of crisis. • Application to other industries: health care, utilitie

Closing the funding gap for African-American: Theoretical foundations for access to capital and minority economic development.

Author: Mathis Marc C.
Publication venue: University of Maryland University College (UMUC)
Publication date: 06/07/2012
Field of study

The purpose of this study is to gain a deeper insight of the specific management practices that MBEs need to employ to be successful candidates for VC funding and a better understanding of the problems they face in securing venture capital funding.Closing the Funding Gap for African Closing the Funding Gap for African Closing the Funding Gap for African Closing the Funding Gap for African Closing the Funding Gap for African Closing the Funding Gap for African Closing the Funding Gap for AfricanClosing the Funding Gap for African Closing the Funding Gap for African -American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access American: Theoretical Foundations for Access to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development to Capital & Minority Economic Development Marc C. Mathis Marc C. MathisMarc C. Mathis Marc C. MathisMarc C. Mathis Marc C. Mathis [email protected]@yahoo.com [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation UMUC Doctoral SOARS Format Presentation Key Words: Key Words: Key Words: Key Words: Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Minority Entrepreneurship, Venture Capital, Information Asymmetry, Social Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development.Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development. Capital Theory and Economic Development.Capital Theory and Economic Development. Capital Theory and Economic Development.Purpose Purpose The purpose of this study is to examine how African The purpose of this study is to examine how AfricanThe purpose of this study is to examine how AfricanThe purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how AfricanThe purpose of this study is to examine how African The purpose of this study is to examine how AfricanThe purpose of this study is to examine how African The purpose of this study is to examine how AfricanThe purpose of this study is to examine how AfricanThe purpose of this study is to examine how AfricanThe purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how AfricanThe purpose of this study is to examine how AfricanThe purpose of this study is to examine how African The purpose of this study is to examine how African The purpose of this study is to examine how African -American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably American entrepreneurship invariably drives Africandrives African drives Africandrives African drives African -American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of American economic development, and how reversing the historic lack of access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority 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enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step access to capital that has affected minority business enterprises represents a vital step forward in advancing African American economic development.forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development. forward in advancing African American economic development. forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development. forward in advancing African American economic development.forward in advancing African American economic development.forward in advancing African American economic development. forward in advancing African American economic development. ThesisThesis Thesis Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business Entrepreneurs are widely recognized for their innovation and development of new business 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Outsourcing and long-term competitive advantage in Taiwan electronics manufacturing industry: A resource-based view

Author: Ming-Huei Chang
Publication venue: University of Maryland University College (UMUC)
Publication date: 20/08/2012
Field of study

This study examines manufacturer and non-manufacturer firm’s long-term competitive advantage from both a theoretical and practical perspective. Research questions include: 1. Does outsourcing still play the major role now and the future? 2. How can outsourcing win both the short-term and long-term competitive advantage? The potential problems of outsourcing practices are not only simply to gain a low labor wage but also more complex in tangible and intangible means. Theoretical basis of this study are including Transaction Cost Economics, Resource-based Theory, Strategic Perspectives and Institutional Theory. Some relevant approaches of contracting, joint ventures, alliance and absorptive capacity have been discussed. Whereas the dilemma between outsourcing and self-made in many firms thus, I proposed a conceptual model of outsourcing from a manufacturing firm point of view and an outsourcing model from a resource-based view to emphasize an organization’s absorbability during the sourcing processes. Furthermore, a flexible organization structure is proposed to lead selfadvancement and maximize resources efficiency. Information disclosing during the outsourcing practices will not be negative to company because of the firm's real competence is accumulated by all resources not individual skill or knowledge disclosing. Data collection of this study uses qualitative and quantitative data analysis research hypotheses through detailed questionnaires which include 279 Taiwan manufactures with a certain percentage of high level leaders of R&D, marketing, project managers, purchasing, and outsourcing leaders. A broad level of product inputs included 31% component, 41% semi-manufactured good and 26% finished product companies. Various industry types include General Manufactures, Components, Technology, Semiconductor, Computer, Communication and Information Industry. Detailed discussion results have been made that and include the following 1. When the task is tactical and not prepared internally, outsourcing would be more effective than completing the task internally. 2. Outsourcing would be more effective when closer interactions between organization and partners occurs. 3. Outsourcing is positive to increase organization's profits, lowing costs and business opportunities. 4 Outsourcing is still playing the major role now and for the future. 5. Outsourcing is positive to increase both company’s and partner's internal knowledge and know-how through proper technical information disclosing.i ABSTRACT Title of Dissertation: OUTSOURCING AND LONG-TERM COMPETITIVE ADVANTAGE IN TAIWAN ELECTRONICS MANUFACTURING INDUSTRY: A RESOURCE-BASED VIEW Ming-Huei, Chang, Doctor of Management,2009 Dissertation Directed By: Ph.D. , Dermod Wood This study examines manufacturer and non-manufacturer firm’s long-term competitive advantage from both a theoretical and practical perspective. Research questions include: 1. Does ii outsourcing still play the major role now and the future? 2. How can outsourcing win both the short-term and long-term competitive advantage? The potential problems of outsourcing practices are not only simply to gain a low labor wage but also more complex in tangible and intangible means. Theoretical basis of this study are including Transaction Cost Economics, Resource-based Theory, Strategic Perspectives and Institutional Theory. Some relevant approaches of contracting, joint ventures, alliance and absorptive capacity have been discussed. Whereas the dilemma between outsourcing and self-made in many firms thus, I proposed a conceptual model of outsourcing from a manufacturing firm point of view and an outsourcing model from a resource-based view to emphasize an organization’s absorbability during the sourcing processes. Furthermore, a flexible organization structure is proposed to lead self-advancement and maximize resources efficiency. Information disclosing during the outsourcing practices will not be negative to company because of the firm's real competence is accumulated by all resources not individual skill or knowledge disclosing. Data collection of this study uses qualitative and quantitative data analysis research hypotheses through detailed questionnaires which include 279 Taiwan manufactures with a certain percentage of high level leaders of R&D, marketing, project managers, purchasing, and outsourcing leaders. A broad level of product inputs included 31% component, 41% semi-manufactured good and 26% finished product companies. Various industry types include General Manufactures, Components, Technology, Semiconductor, Computer, Communication and Information Industry. Detailed discussion results have been made that and include the following 1. When the task is tactical and not prepared internally, outsourcing would be more effective than completing the task internally. 2. Outsourcing would be more effective when closer interactions between organization and partners occurs. 3. Outsourcing is positive to increase organization's profits, lowing costs and business iii opportunities. 4 Outsourcing is still playing the major role now and for the future. 5. Outsourcing is positive to increase both company’s and partner's internal knowledge and know-how through proper technical information disclosing. iv OUTSOURCING AND LONG-TERM COMPETITIVE ADVANTAGE IN TAIWAN ELECTRONICS MANUFACTURING INDUSTRY: A RESOURCE-BASED VIEW By Ming-Huei, Chang Dissertation submitted to the Faculty of the Graduate School of the University of Maryland University College, in partial fulfillment of the requirements for the degree of [Doctor of Management] [2009] Advisory Committee: [Your Dissertation Director], Chair [Committee Member 2] [Committee Member 3] [Committee Member 4] [Committee Member 5] v © Copyright by [Ming-Huei, Chang] [2009] vi Table of Contents List of Tables ................................................................................................................................ ix List of Figures ................................................................................................................................ x List of Abbreviations .................................................................................................................... xii Chapter 1: Introduction and Research Problem.............................................................................. 1 Purpose of This Study................................................................................................................. 1 Current Economic Environment ................................................................................................. 1 Research Questions..................................................................................................................... 1 The Potential Problem................................................................................................................. 2 The Possible Solution and Data Collection ................................................................................ 2 A Resource-Based View............................................................................................................. 3 Learning from Outsourcing......................................................................................................... 3 Theoretical Base.......................................................................................................................... 4 Chapter 2: Literature Review.......................................................................................................... 5 Outsourcing and Resources......................................................................................................... 5 Outsourcing and Alliance ..................................................................................................... 10 Outsourcing and Joint Venture ............................................................................................. 10 Outsourcing and Absorptive Capacity.................................................................................. 11 Transaction Cost Economics..................................................................................................... 12 TCE and Contracting ............................................................................................................ 14 Resource-Based Theory............................................................................................................ 16 Strategic Perspectives ............................................................................................................... 21 Institutional Theory:.................................................................................................................. 23 vii Contract Imperfect .................................................................................................................... 25 Chapter 3: Conceptual Framework and Research Method ........................................................... 29 Conceptual Model..................................................................................................................... 29 Conceptual Model of Success Outsourcing .......................................................................... 29 Organization Structure of an Outsourced-Based Manufacturing Firm................................. 31 Reinforce Causal Loops by Using an Outsourcing Approach.............................................. 32 Spiral Causal Loop of Self-made Approach for Non-Core Business Activity ..................... 34 The Outsourcing Model vs. a Firm’s Long-Term Competence............................................ 35 Outsourcing and Knowledge Generation.............................................................................. 39 Firm’s Knowledge and Competence..................................................................................... 40 Research Method ...................................................................................................................... 42 Hypotheses........................................................................................................................... 42 Reserach Methodology ............................................................................................................. 56 Research Scope ..................................................................................................................... 56 Product Range Researched ................................................................................................... 57 Companies Capital Size Researched..................................................................................... 58 Industry type Researched...................................................................................................... 59 Chapter 4: Discussion, Results and Conclusions.......................................................................... 61 H1. When the task needs specific resources that are not prepared internally, outsourcing would be more effective than completing the task internally .............................................................. 62 H2. Outsourcing would be more effective when there were more close interaction between organization and partners.......................................................................................................... 66 Importance of Outsourcing Components and Component Technology ............................... 67 viii H3. Outsourcing is positive to increase organization's profits, lowing cost and business opportunities ............................................................................................................................. 71 H4. Outsourcing is positive to increase organization performance, lowing investment risk and shorten time to market .............................................................................................................. 78 H5. Outsourcing is positive to increase a company's resources ............................................... 85 H6. Outsourcing is still playing the major role now and in the future...................................... 88 Positive Inference Factors of Outsourcing to Company’s Core Competence ...................... 91 Negative Inference Factors of Outsourcing to a Company’s Core Competence .................. 93 H.7 Outsourcing is positive to increase both a company’s and partner's internal knowledge and know-how through proper technical information disclosing .................................................... 95 Important of Core Technology of The Product Design, Manufacture Skill and Knowledge Disclosing ............................................................................................................................. 96 Knowledge Transfer and Disclosure to Succeed Mass Production Need............................. 99 Others findings:...................................................................................................................... 103 Chapter 5: Recommendations and Future Work........................................................................ 106 Recommendations.................................................................................................................. 107 Future Work........................................................................................................................... 111 Appendices................................................................................................................................. 113 Survey Instrument Design....................................................................................................... 113 References.................................................................................................................................. 126 ix List of Tables Table 4 The Summary of survey results to each hypotheses 61 Table 4.1 Decision factors for In-House made and Outsource 63 Table 4.2 The degree of important factors influencing firm’s outsourcing activities 69 Table 4.3 Degree of important of the factors influencing firm’s outsourcing decision 71 Table 4.4 The positive influence of outsourcing to firm’s business opportunity 74 Table 4.5 The negative influence of outsourcing to firm's business opportunity 75 Table 4.6 Percentage of firm's outsourcing 77 Table 4.7 The positive influence of outsourcing to company's competitiveness 78 Table 4.8 The negative influence of outsourcing to company's competitiveness 79 Table 4.9 Importance of In-House manufacturing in year 2007 81 Table 4.10 The positive influence of outsourcing to your company's resources 83 Table 4.11 The negative influence of outsourcing to company’s resources 84 Table 4.12 Importance of outsourcing manufacturing in year 2007 88 Table 4.13 The positive influence of outsourcing to your company's core competence 90 Table 4.14 The negative influence of outsourcing to company's core compete 92 Table 4.15 Degree technology, knowledge and skill vs. firm's competitive 96 Table 4.16 The positive influence of outsourcing to your company's internal knowledge and Know-How 99 Table 4.17 The negative influence of outsourcing to your company's internal knowledge and Know-How 100 x Table 4.18 The factors influencing firm's outsourcing decision 103 List of Figures Figure 3.1 The concept model of success outsourcing 29 Figure 3.2 Organization structure of an outsourcing based manufacturing firm 31 Figure 3.3 Reinforce causal loop diagrams from outsourcing perspective 33 Figure 3.4 Spiral causal loop of self-made approach from non-core business activity viewpoint 34 Figure 3.5 An outsourcing model vs. manufacturing firm’s long-term competence 36 Figure 3.6 Knowledge generation process from a routine-based view 39 Figure 3.7 Firm’s knowledge and competence 41 Figure 3.8 Top Talent challenges 50 Figure 3.9 Percentage of participant’s job function 57 Figure 3.10 Category of outsourced input 58 Figure 3.11 Company’s capital size of participants 59 Figure 3.12 Various industries type of participants 60 Figure 4.1 Decision factors of In-House made and outsourced 64 Figure 4.2 Outsourcing vs. In-House Made when skill not available internally 64 Figure 4.3 Outsource vs. In- house when skill is uniquely internally 65 Figure 4.4 The degree of important factors influencing firm’s outsourcing activities 68 Figure 4.5 Major Factors of Firm’s Outsourcing Decision Making 71 Figure 4.6 Outsourcing vs. Positive of Company’s Business Opportunity 73 Figure 4.7 Outsourcing vs. Negative to Company’s Business Opportunity 75 xi Figure 4.8 Revenue Contributed by Outsourcing Activities 77 Figure 4.9 Outsourcing vs. Positive of Company’s Competitiveness 79 Figure 4.10 Outsourcing vs. Negative to Company’s Competitiveness 80 Figure 4.11 In-House Manufacturing in 2007 81 Figure 4.12 Outsourcing vs. Positive of Company’s Resources 84 Figure 4.13 Outsourcing vs. Negative to Company’s Resources 85 Figure 4.14 The Comparison of Year 2007 to 2006 Outsourcing 87 Figure 4.15 Outsourcing Statuses in Year 2007 88 Figure 4.16 Positive Factors of Outsourcing 91 Figure 4.17 Negative Factors of Outsourcing 93 Figure 4.18 Degree of Important to Company’s Competitiveness 97 Figure 4.19 Outsourcing vs. Positive of Internal Knowledge 100 Figure 4.20 Outsourcing vs. Negative of Internal Knowledge 101 Figure 4.21 Outsourcing Factors of Decision Making 102 xii List of Abbreviations AVL Approved Vendor List BOM Bill of Material CM Contract Manufacturing EMS Electronic Manufacturing Services FDI Foreign Direct Investment ICT Information and Communication Technology MNE Multinational Enterprise ODM Original Design Manufacturer OEM Original Equipment Manufacture OLI Ownership/Location/Internalisation RBV Resource-based View ROI Return on Investment SOP Standard Operation Procedure TEC Transaction Cost Economics WTO World Trade Organization 1 Chapter 1: Introduction and Research Problem Purpose of This Study This study examines manufacturer and non-manufacturer firm’s long-term competitive advantage in Taiwan’s electronic manufacturing industry through proper outsourcing activities and information disclosing between outsourcing partners from both theoretical and practical perspectives. Thus, by utilizing outsourcing to gain cost effectiveness is not adequate to the firm's long-term benefits, but continuously learning from external resources through proper technology and information disclosing. Current Economic Environment From current economic recession started from quarter four of 2008, many mid or large sized companies were affected by the bad financial situation and caused short-term financial losses through higher operation costs and investment. These companies cannot bear during the changing and uncertain environment when compared to their ordinary operation costs in the past. It is especially very visible in the current bad economic depression that many companies encountered an economic crisis, their financial report changed from positive to negative on its profits; essentially, it is caused by low income and gross profit which can not cover total expense. Research Questions The research questions include 1. Is outsourcing still playing a major role now and in the future? 2. How can outsourcing win both short-term and long-term competitive advantage? This 2 study will prove outsourcing is an inevitability and growing trend of current globalization environment today and in the future. Many articles discuss protecting a product’s property, technical or marketing information to reduce the risk during the outsourcing processes. However, this study will test if the proper product technical information disclosure will succeed and lead the firm to gain newer knowledge and technological skills between both outsourced partners and customers through outsourcing practices and further ensure and sustain a firm’s long-term competitiveness even in an economic depressed environment. The Potential Problem The potential problems such as outsourcing practices are not just simply to gain a low labor wage as before, it is more complex in the tangibility of physical products and also intangible processes and knowledge that are transferred to fulfill various tasks in every industry. How to establish an outsourcing model with better knowledge absorbability capability than a partners’ did during the outsourcing processes is vital to an organization's long-term competitive advantage, especially in today's economic depressed environment. The Possible Solution and Data Collection This study uses a possible solution for data collection that was applied for both qualitative and quantitative data analysis research hypotheses method in my dissertation. Other data will employ institutional, Internet research data together with related theories from the literature review, detailed questionnaires and recommendations have also been investigated and proposed. 3 A Resource-Based View From the resource-based viewpoint that total resource costs should be less than its total value generated from those resources, the resources are including company owned fixed assets of equipment, facilities, and inventory However, those will become low efficiency or high cost during an economic environmental change. Thus, a company’s long term combativeness advantage should rely on a minimum of resource cost and maximum resource value. New knowledge generated from outsourcing practices through proper information disclosing and interaction with partners will be the best way to ensure a firm's long-term competitive advantage. Learning from Outsourcing Learning from outsourcing practices to generate and keep up-to-date knowledge into new company’s know-how that gains not only short-term finan

Process mapping of CMMI for services (CMM-SVC) and IT infrastructure library (ITIL)

Author: DeSot Julie A.
Publication venue: University of Maryland University College (UMUC)
Publication date: 20/08/2012
Field of study

The purpose of this study was to examine whether there were enough commonalities between two service process frameworks in which to create a conceptual model in the form of a comprehensive map. The two service process frameworks chosen for this study are the Information Technology Infrastructure Library (ITIL) and the Capability Maturity Model Integration for Services (CMMI-SVC). The research was focused on service process frameworks as they related to delivering services to customers. As organizations adopt service process frameworks to realize cost savings and performance efficiencies, organizations and service professionals are exposed to numerous frameworks to choose from and in which to work. Employees do not stay with one firm throughout their careers, and service professionals will most likely be employed by several organizations throughout their careers. With this movement to different organizations through their career, service professionals will more than likely need to work with different frameworks. Organizational mergers and partnerships provide experiences of the knowledge gap of the two frameworks that needs to be bridged. The research set out to determine what similarities exist to map the two processes to each other. The research was conducted by reviewing the publications provided by the developers of the service process frameworks, research articles, books, white papers, case studies, and industry journal articles. The data was compiled into matrices, analyzed and reviewed. What emerged was a comprehensive matrix that was converted into a graphic conceptual model. The conceptual model is a graphic map of the two service process frameworks. The conceptual model is anticipated to provide corporate managers and service professionals with a device to determine the commonalities between ITIL and CMMI-SVC, as well as the uniqueness of the two service process frameworks. The findings determined that there were indeed direct commonalities that can map each of the 24 CMMI-SVC Process Areas to ITIL's five Core Components. The conceptual model, mapping, can be utilized as a tool for organizations and professionals to apply, understand and work with either or both of the service process frameworks.PROCESS MAPPING OF CMMI FOR SERVICES (CMM-SVC) AND IT INFRASTRUCTURE LIBRARY (ITIL) By Julie A. DeSot Dissertation submitted to the Faculty of the Graduate School of the University of Maryland University College, in partial fulfillment of the requirements for the degree of Doctor of Management 2011 Advisory Committee: James P. Gelatt, Ph.D. Kathleen F. Edwards, Ph.D. i Abstract Title of Dissertation: PROCESS MAPPING OF CMMI FOR SERVICES (CMM-SVC) AND IT INFRASTRUCTURE INFORMATION LIBRARY (ITIL) Julie A. DeSot Doctor of Management, 2011 Dissertation Advisory Committee: James P. Gelatt, Ph.D. Kathleen F. Edwards, Ph.D. The purpose of this study was to examine whether there were enough commonalities between two service process frameworks in which to create a conceptual model in the form of a comprehensive map. The two service process frameworks chosen for this study are the Information Technology Infrastructure Library (ITIL) and the Capability Maturity Model Integration for Services (CMMI-SVC). The research was focused on service process frameworks as they related to delivering services to customers. As organizations adopt service process frameworks to realize cost savings and performance efficiencies, organizations and service professionals are exposed to numerous frameworks to choose from and in which to work. Employees do not stay with one firm throughout their careers, and service professionals will most likely be employed by several organizations throughout their careers. With this movement to different organizations through their career, service professionals will more than likely need to work with different frameworks. Organizational mergers and partnerships provide experiences of the knowledge gap of the two ii frameworks that needs to be bridged. The research set out to determine what similarities exist to map the two processes to each other. The research was conducted by reviewing the publications provided by the developers of the service process frameworks, research articles, books, white papers, case studies, and industry journal articles. The data was compiled into matrices, analyzed and reviewed. What emerged was a comprehensive matrix that was converted into a graphic conceptual model. The conceptual model is a graphic map of the two service process frameworks. The conceptual model is anticipated to provide corporate managers and service professionals with a device to determine the commonalities between ITIL and CMMI-SVC, as well as the uniqueness of the two service process frameworks. The findings determined that there were indeed direct commonalities that can map each of the 24 CMMI-SVC Process Areas to ITIL’s five Core Components. The conceptual model, mapping, can be utilized as a tool for organizations and professionals to apply, understand and work with either or both of the service process frameworks. iii Acknowledgements I would like to thank my husband, Charles DeSot, for his support during the quest for my doctoral degree. Your passion and support for my education and professional growth is unwavering. Chuck, you have been my guiding light and pillar to lean on. Thank you for understanding when research and studying occupied my time. Thank you to my dissertation committee, Dr. James Gelatt, Dr. Kay Edwards, Dr. Irmak Renda-Tanali and Dr. Rana Khan. You provided many insights that pushed my thinking beyond what I thought were my limitations. Dr. James Gelatt, as my dissertation chair, you supported me through the past three years and countless versions of my dissertation. Thank you for your support and guidance; I am looking forward to the lessons you have taught me and beginning the next chapter of my professional career. Thank you to my professors throughout my journey: Dr. Malcolm Odell, Dr. Saad Laraqui, Dr. Husein Abdul-Hamid, Dr. Mara Alexander, Dr. Patrick W. Fitzgibbons, Dr. Thomas Mierzwa, Dr. Subash Bijlani, Dr. Irmak Renda-Tanali, Dr. Rana Khan, Dr. Kay Edwards and Dr. James Gelatt. Thank you to Dr. Batsheva Salberg and Ken Williams for your reviews, honest comments and feedback, and insight. I would also like to thank the University of Maryland University College for providing the practitioner with such a wonderful doctoral program. UMUC has been a pillar in my education beginning with my Associate Degree that I earned while Overseas when my husband was stationed at RAF Upper Heyford. UMUC’s dedication to providing education to all aspects of students, to include military family members stationed overseas and non-traditional students is just one way that UMUC stands out among the crowd. I would like to add an additional thank iv you to Monica Graham whose dedication to the DM program is apparent in all the assistance she has provided through the past three years. Lastly, I’d like to thank my DM program colleagues. You have all been so wonderful in your support and studying for our comprehensive exams. I have cherished the time I have spent with you and in getting to know you. Good luck in your future endeavors. v Contents Abstract ........................................................................................................................................... i Acknowledgements....................................................................................................................... iii List of Figures & Tables ................................................................................................................ vi Chapter 1: Introduction.................................................................................................................. 1 Abbreviations & Acronyms ........................................................................................................ 1 Research Problem ....................................................................................................................... 2 Management Significance........................................................................................................... 5 Research Methodology ............................................................................................................... 6 Organization of the Dissertation ................................................................................................. 7 Chapter 2: Review of Literature ..................................................................................................... 9 Introduction................................................................................................................................ 9 Critical Review ........................................................................................................................... 9 Business Process Frameworks................................................................................................. 9 Information Technology Service Management (ITSM)........................................................ 10 ITIL....................................................................................................................................... 13 CMMI for Services (CMMI-SVC) ........................................................................................ 18 Case Studies .............................................................................................................................. 22 Case Studies – ITIL............................................................................................................... 22 Case Studies – CMMI............................................................................................................ 24 Summary of Findings................................................................................................................ 25 Chapter 3: Analysis & Discussion ................................................................................................ 26 Research Question and Findings Warrant................................................................................. 26 Findings & Conclusions............................................................................................................ 28 Conceptual Model..................................................................................................................... 32 Summary.................................................................................................................................. 37 Chapter 4: Conclusion & Future Implications.............................................................................. 38 Analysis.................................................................................................................................... 38 Implications of Trends .............................................................................................................. 41 Implications for Management Practice ..................................................................................... 44 vi Areas for Further Research ....................................................................................................... 47 Summary.................................................................................................................................. 48 References.................................................................................................................................... 49 Appendix A – Sample Page from CMMI-SVC Decision Analysis and Resolution..................... 53 List of Figures & Tables Figure 1 - ITIL v3 Components .................................................................................................... 15 Figure 2 - Scope of Research........................................................................................................ 27 Figure 3 - Conceptual model......................................................................................................... 33 Figure 4 - Sample Page from CMMI-SVC Decision Analysis and Resolution............................ 53 Table 1 – ITIL Core Components................................................................................................. 15 Table 2 - CMMI® for Services, Version 1.2 (CMMI-SVC, V1.2) .............................................. 19 Table 3 - ITIL V3 Core Components............................................................................................ 34 Table 4 - CMMI-SVC (V1.2) Process Areas................................................................................ 34 Table 5 - Companies receiving CMMI Appraisals, by Company Size......................................... 41 1 Chapter 1: Introduction Abbreviations & Acronyms The Abbreviations & Acronyms section is provided prior to any discussion based on the heavy usage of abbreviations and acronyms due to the nature of the subject information. . Abbreviation / Acronym Meaning CMMI-SVC Capability Maturity Model Integration for Services IT Information Technology ITIL Information Technology Infrastructure Library ITSM Information Technology Service Management OGC Office of Government Commerce PM Project Management or Project Manager PMI Project Management Institute PMBOK® Project Management Book of Knowledge (published by PMI) PMO Project Management Office SCAMPI Standard CMMI Appraisal Method for Process Improvement SDLC Systems Development Lifecycle SEI Software Engineering Group 2 Research Problem The services industry is dominating the global economy. As a result, organizations and service professionals are exploring opportunities to improve their services and service offerings. The services industry comprises more than 80% of the US and global economy (Forrester, 2008). Improvement of services can lead to attracting and retaining customers, allowing an organization to meet its financial and strategic goals. Organizations need to meet the needs of their customers while also maintaining their economic goals. The IT industry is not immune to this economic trend. IT service customers expect the systems to be available when they need the system and receive a high-level of customer and technical support. Organizations are trying to meet their strategic and financial goals, and attract and keep customers. Service process frameworks are one such method that organizations can use with Porter’s Five Competitive Forces, and meet strategic and financial goals. Frameworks provide a means for organizations to view their systems and process as a whole, rather than individual tasks and areas. This is in line with Senge’s (1990) Fifth Discipline and systems thinking, regarding the breakdown of brilliant and innovative organizations due in part to the lack of working as in a holistic manner and functions to continue to be worked in a diverse manner. Adopting a service orientated process framework or model of industry best practices and processes is a viable solution. There are numerous process frameworks available to a services department or organization. Organizations need tools and resources to understand and compare/contrast the different frameworks to understand which frameworks best suits their particular situation. Although not a service process framework, a quick discussion of the Systems Development Life Cycle (SDLC) provides insight into the reasoning behind the growing desire to design the services offering holistically within the development of the product. The SDLC is 3 a methodology with a set of 5 to 10 phases used for the development of systems and applications. SDLC supports many different development methodologies and models. The phases may be given different names and some may be combined, depending on the organization’s beliefs and usage. Phases include: 1. Initiation 2. System Concept Development 3. Planning 4. Requirements Analysis 5. Design 6. Development 7. Integration & Test 8. Implementation 9. Operations & Maintenance 10. Disposition The service management of IT is typically associated with the operations and maintenance phase of the SDLC, although service process frameworks promote a holistic approach in which service management should be addressed in all phases of the SDLC. Over the past few years, the focus being given to the service management of IT has been increasing. In the past, focus was more on the development and implementation/deployment of IT systems and less focus was provided throughout the operations and maintenance (O&M) phases. Typically when issues arose, IT support personnel fixed the issue to get the system back online without focusing on the root cause analysis of the issue(s). The research conducted by Partners in IT (2007) showed that 80% of the respondent companies experienced system downtime issues; and of those, 38% experienced serious downtime issues. IT support personnel are spending a large amount of their time fixing problems and “putting out the fires.” SDLC can be utilized in a variety of manners. To measure and improve IT processes, as well as to align IT services to business requirements, the IT industry has accepted several process frameworks. These frameworks include: 4 Capability Maturity Model Integrated (CMMI) Information Technology Infrastructure Library (ITIL) Six Sigma ISO 9000 CobiT Each of these frameworks has an area of focus, such as: services, IT development, business process, manufacturing process, etc. CMMI consists of several constellations depending on the focus area, such as software development (CMMI-DEV), acquisitions (CMMI-ACQ), and services (CMMI-SVC). Some of the frameworks are more flexible in their applicability, such as CMMI-SVC can be applied to any service industry. Other frameworks are not as flexible, yet practitioners have tried to apply processes to industries or areas of focus that the framework was not designed. For example, Six Sigma is a business process framework, not IT development; when applied to IT projects it is a difficult application because there is less quantifiable data available for many IT projects. ISO 9000 is considered more of a management standard and not specific to IT. ITIL is specific to IT services management (ITSM). These process frameworks may overlap in a few areas and may be complementary, and for that reason, many organizations that adopt frameworks tend to adopt more than one framework (Violina, 2005 & Anthes, 2004). The focus of this paper is on services frameworks and determine if they are similar enough to create a direct mapping. The chosen frameworks are the Information Technology Infrastructure Library (ITIL) and Capability Maturity Model Integration for Services (CMMI-SVC). Both frameworks have a related focus surrounding services management. Each is a framework for service organizations and process improvement in providing those services. CMMI-SVC was created to be utilized by any service organization, regardless of industry or service focus. However, ITIL is specific to providing IT-related services. This paper is not technology focused, although ITIL is focused in the IT services domain; the paper is focused on 5 service process frameworks. In addition to providing an overview of each framework, a mapping of the two frameworks will be presented as a conceptual model to analyze the correlation of the two models. The expectation is that the mapping will provide a correlation between particular CMMI Process Areas and ITIL Core Components. The mapping of these two service process frameworks is not intended to build a completely new framework. The intent is to present the commonalities and uniqueness of the two frameworks. This mapping can be utilized to determine which framework best suits an organization’s unique needs and to bridge the knowledge gap between the two frameworks. While the Software Engineering Institute (SEI) considers CMMI-SVC as a framework for all service industries and ITIL is a framework focused on the IT service industry, the components and core process areas of both frameworks can be directly correlated. Management Significance The reason for creating this mapping is to show the similarities and differences between the two frameworks. This mapping is intended to help both individuals (service professionals) and organizations (corporate managers). Senge (1990) contends that to change habits of fragmented views of the world, organizations and professionals need to use a language that consists of system-wide connections. This mapping provides a translation guide of the languages of two service process frameworks. As an individual leaves an organization that has been using either of the frameworks, and begins work for another organization that uses another framework, the mapping will assist the individual in making a successful and efficient transition. Individuals no longer stay with one or 6 two organizations their entire career and must be flexible enough to learn different ways of conducting business based on the organization’s strategy, culture, and techniques. Combining the mapping and the information garnered during a review of Porter’s (2008) Five Competitive Forces can influence the strategy of an organization regarding the adoption of a service process framework. Organizations that are merging and use different frameworks will be able to use the mapping during the stages of merging the two organizational cultures and also to set up a framework for after the merge. The map can be utilized as a tool to bridge the language differences between two services frameworks, such as when two companies are partnering for a temporary assignment and each company uses the other framework. The map can also

Collaborate to innovate: Innovative capacity index for effective open innovation

Author: Greenwood Dorothea G.
Publication venue: University of Maryland University College (UMUC)
Publication date: 20/08/2012
Field of study

In today's economy, enlightened firms collaborate to innovate openly across the entire innovation chain. To sustain competitive advantage in today's fast moving open innovation ecosystem, the executive leadership of a firm should create and sustain a new business model for open innovation. The four building blocks of an open innovation business model are capacities that allow it to accumulate social capital, organically build network ties, span boundaries of firms to access knowledge, and maintain absorptive capacity crucial for organizational learning and knowledge transfer. This paper develops the Innovative Capacity Index (ICI), based on these four building blocks, to provide executive leadership with a dashboard mechanism to track and cultivate the innovative behaviors and actions of the firm for competitive advantage. The ICI measures provide visibility into a portrayal of "who is talking to whom about what" and give leaders the insights needed to reinforce and redirect priorities, resources, recognition and rewards to influence desired activities and behaviors. Executive leadership can then adapt and refine the corporate strategy, investments, practices and culture to achieve and sustain enduring competitive advantage.Collaborate to Innovate: Innovative Capacity Index for Effective Open Innovation Dorothea G. Greenwood A Thesis Submitted to the Graduate Faculty of University of Maryland University College in Partial Fulfillment of The Requirements for the Degree of Doctor of Management 6 December 2010 Dissertation Chairs: James P. Gelatt, Ph.D. Kathleen F. Edwards, Ph.D. Page | 2 Table of Contents List of Figures …………………………………………………………………………………….3 List of Tables .……………………………………………………………………………………..3 Abstract .......................................................................................................................................... 4 Chapter 1: Introduction .................................................................................................................. 5 Statement of Problem .................................................................................................................. 5 Thesis ......................................................................................................................................... 5 Research Questions ..................................................................................................................... 6 Summary .................................................................................................................................... 9 Organization of the Dissertation .............................................................................................. 10 Chapter 2: Literature Review ....................................................................................................... 12 Open Innovation.................................................................................................................... 12 Absorptive Capacity .............................................................................................................. 23 Network Relationships .......................................................................................................... 27 Boundary Spanning and Knowledge Brokering ................................................................... 31 Social Capital........................................................................................................................ 36 Summary of Findings ............................................................................................................ 38 Chapter 3: Analysis and Discussion ............................................................................................. 40 Social Capital........................................................................................................................ 41 Network Ties ......................................................................................................................... 42 Boundary Spanning ............................................................................................................... 43 Adaptive Absorptive Capacity ............................................................................................... 45 Innovative Capacity Index (ICI) ........................................................................................... 46 Innovative Capacity Index Measurement.............................................................................. 57 Open Innovation Conceptual Framework Propositions ........................................................... 59 Proposition 1 ......................................................................................................................... 61 Proposition 2a, 2b, 2c ........................................................................................................... 61 Proposition 3 ......................................................................................................................... 62 Proposition 4 ......................................................................................................................... 62 Proposition 5 ......................................................................................................................... 62 Proposition 6 ......................................................................................................................... 63 Summary .................................................................................................................................. 63 Chapter 4: Conclusions ................................................................................................................. 65 References .................................................................................................................................... 69 Page | 3 List of Figures Figure 1. Open Innovation Conceptual Framework ……………………………………….....41 Figure 2. Open Innovation Causal Effects …………………………………..……………..…41 Figure 3. Innovative Capacity Index ………………………………………………………….47 Figure 4. Initial MIMIC Model for Innovative Capacity ……….............………………..….. 47 Figure 5. Innovative Capacity Index Spider Chart …………………….……………...…….. 58 Figure 6. Open Innovation Framework Mapped to Propositions ………..……………..……. 60 List of Tables Table 1. Innovation process phases and characteristics (Hsin-Min, et al., 2008) ………….….. 16 Table 2. Innovation business models (Viskari et al. (2007), adapted from Chesbrough (2006)) …………………………………………………………………………………………………...18 Table 3. Forms of Collaboration ……………………………………………….………………21 Table 4. External knowledge sourcing (adapted from Von de Vrande, 2006) ……………...... 22 Table 5. Innovative Capacity Indicators ………………………………………….…………....48 Table 6. Innovative Capacities, Levels and Metrics …………………………….………….….50 Table 7. Open Innovation Propositions ………………………………………………………. 60 Page | 4 Abstract In today’s economy, enlightened firms collaborate to innovate openly across the entire innovation chain. To sustain competitive advantage in today’s fast moving open innovation ecosystem, the executive leadership of a firm should create and sustain a new business model for open innovation. The four building blocks of an open innovation business model are capacities that allow it to accumulate social capital, organically build network ties, span boundaries of firms to access knowledge, and maintain absorptive capacity crucial for organizational learning and knowledge transfer. This paper develops the Innovative Capacity Index (ICI), based on these four building blocks, to provide executive leadership with a dashboard mechanism to track and cultivate the innovative behaviors and actions of the firm for competitive advantage. The ICI measures provide visibility into a portrayal of “who is talking to whom about what” and give leaders the insights needed to reinforce and redirect priorities, resources, recognition and rewards to influence desired activities and behaviors. Executive leadership can then adapt and refine the corporate strategy, investments, practices and culture to achieve and sustain enduring competitive advantage. Keywords: open innovation, social capital, network ties, knowledge spanning, absorptive capacity, knowledge management, innovation management. Page | 5 Chapter 1: Introduction Statement of Problem The globalization and mobility of workers in the knowledge-based economy has increased the speed of innovation and the cost of research and development (R&D). Open innovation is an emerging business model for leveraging knowledge across corporations to speed innovation at reduced costs while sustaining competitive advantage. Open innovation business models and practices challenge conventional strategies for competitive advantage. While research in this area is increasing in the last decade, there is little research addressing the innovative capacities needed for a corporation’s effective management of open innovation for competitive advantage in the knowledge-based economy. Thesis To innovate after the shift from manufacturing to knowledge-based economy requires speed and flexibility in leveraging new information in the innovation network (Hsin-Min, Se- Hwa, Chao-Tung, & Feng-Shang, 2008). Corporations need new business models for innovation in the new knowledge-based ecosystem and new capacities to identify and access external knowledge and take action internally for business opportunities to sustain competitive advantage (Chesbrough, 2007, 2008; Chesbrough & Schwartz, 2007). Four interrelated factors influence a firm’s capacity to master and leverage external knowledge in pursuit of selected market opportunity in the open innovation ecosystem and the management of resulting tensions. These four factors are (1) social capital, (2) network ties, (3) ability to span innovation network boundaries and (4) the agility of its internal absorptive capacity. A firm’s innovative capacity is a consequence of the corporate behaviors and business practices associated with a firm’s management effectiveness regarding these factors. These factors provide the formative indicators Page | 6 of the latent variables of “Innovative Capacity” of a firm (Sanchez-Perez & Iniesta-Bonillo, 2004). This research proposes the Innovative Capacity Index (ICI) to provide the measures and metrics for latent variables to manage the effectiveness of a corporation’s open innovation. Research Questions This study researches the conditions and factors of open innovation for sustained competitive advantage. It develops a conceptual framework for the open innovation factors with propositions for management effectiveness. In response to this framework, it researches the measures and metrics to form an index for a corporation to use to monitor, assess and cultivate its open innovation effectiveness. Innovation is the driver of economic growth in today’s business ecosystem (Bullinger, Auernhammer, & Gomeringer, 2004). Multinational firms are increasingly globalizing their innovation activities in response to the ever shifting global landscape (Li & Kozhikode, 2009). The pace and costs of economic, social and technological change have increased dramatically through innovation and globalization (Gopalakrishnan, 2000). The cost of R&D to discover new products has risen tremendously. New products are developed now in 12-18 months from 24-36 months during 1989-1998 with diminishing economies of scale in US industrial research and development (R&D) (Smith & Reinertsen, 1992). Companies under 1000 employees spent five times more in R&D in 2003 compared to expenditures in 1981 and companies with over 25,000 employees are spending almost half as much (Chesbrough, 2008). R&D for an new drug was estimated to cost less than

50 million twenty-five years ago compared to over

800 million today (Chesbrough, 2008). Similarly, R&D for a new consumer product was less than

10 million twenty-five years ago compared to

50 million today (Chesbrough, 2008). Page | 7 In this knowledge-based economy, firms are increasingly exploring new business models for innovation and working collaboratively with other firms to share intellectual property, expertise and resources to lower costs and increase the speed of innovation for sustained competitive advantage (Chesbrough & Schwartz, 2007). Open innovation and its potential to accelerate corporate innovation for competitive advantage at lower cost has increased in the last decade through the leverage of the knowledge and resources of other firms for internal R&D (Enkel, Gassmann, & Chesbrough, 2009). Academic research and business practices, however, offer little to guide corporations in developing the capacities needed for the practice of open innovation. As a result, research is needed to understand the conditions and factors for business practices that create and sustain competitive advantage with open innovation. Innovation has traditionally been accomplished in the Industrial Age through vertical integration within multinational corporations with internal research and development leading to new products that are marketed and sold by the firm (Chesbrough, Vanhaverbeke & West, 2006). Knowledge needed to innovate today either has to be developed internally or acquired from external sources (Hall & Andriani, 2002, p. 32). Open innovation provides an opportunity to innovate collaboratively exchanging knowledge with other firms across the business ecosystem offering the advantage of sharing knowledge, expertise and resources to lower costs and increase speed of innovation. Pursing external sources of knowledge increases the spillover pool of knowledge available to a firm (Knott, Posen, & Wu, 2009). Innovative companies are now leveraging knowledge and ideas of external firms within in-house R&D to accelerate the speed and number of innovative products they bring to market (Chesbrough, 2003; Munsch, 2009). These changes and the mobility of global knowledge workers are driving firms to rethink fundamental innovation business models for competitive Page | 8 advantage (Teece, 2004; Chesbrough, 2003). Innovation, in the new knowledge economy, improves not just the technologies but the frameworks and business models in which enterprises discover knowledge and pursue opportunity across the innovation network to produce and deliver new goods and services (Chesbrough & Schwartz, 2007; Zuboff, 2010). Companies today are increasingly considering open innovation as the emerging paradigm where firms use external ideas as an integral part of internal business processes to discover, develop and market products and services that create value (Hansen & Birkinshaw, 2008; Chesbrough, 2003). Porter (1985) states that a firm sustains its competitive advantage by constantly upgrading its facilities and capabilities for innovation. Porter’s theory addresses the cost and differentiation advantage of a corporation for competitive advantage but does not address the open interplay among corporations to trade and leverage knowledge assets. Porter (1985) did not account for the value of external sources of knowledge that a company gains from innovation communities and networks, open publications and social networking websites (Chesbrough & Appleyard, 2007). With open innovation, the concept of competitive advantage shifts from ownership to value capture and creation through leveraged knowledge in external corporations (Dyer & Singh, 1998). Dyer and Singh (1998) found that the relationship between firms is a key variable in competitive advantage. Von Hippel (1988) found that it was the knowledge transfer mechanisms in the production network that permit firms to “out-innovate” others. Open innovation has been shown to increase the tensions in the balance of corporate priorities, resources and funding between exploratory efforts and the use of unfamiliar external knowledge in search of breakthrough opportunities over the conventional corporate profit-oriented exploitation of incremental products and markets (Andriopoulos & Lewis, 2009; Raisch, Birkinshaw, Probst, & Tushman, 2009). Open innovation requires new corporate capacities to Page | 9 mediate tensions like these with new corporate business practices to create sustainable market opportunity (Cohen & Levinthal, 1990). The four factors that influence the practice of open innovation in a corporation are (1) social capital, (2) network ties, (3) boundary spanning and (4) agile absorptive capacity. A framework for these factors with propositions for effective open innovation is needed. This framework and propositions provide the intellectual foundation for an index with latent variables to measure a corporation’s business practices and provide a management tool for a corporation’s effective open innovation. This research provides a framework and posits six propositions. First, higher social capital leads to more network ties and boundary spanning. Second, appropriate network ties lead to more boundary spanning with more reciprocal exchange. Third, more network ties and boundary spanning result in activation triggers and higher social capital. Fourth, more activation triggers lead to higher agile absorptive capacity. Fifth, agile absorptive capacity produces more selected market opportunities. Sixth, higher Innovative Capacity Index correlates with more differentiating market opportunities advocated by executive leaders. Summary Management effectiveness for open innovation comprises four factors: (1) social capital, (2) network ties, (3) boundary spanning and (4) agile absorptive capacity. Social capital reflects the willingness and motivation of individuals in the firm to collaboratively share information (Reagans & McEvily, 2003). Social capital can be an asset of a firm used to pursue and induce relevant network ties with other corporations for the relationships needed to span the boundaries of external knowledge inter-firm and across the innovative network to access other firms’ intellectual property (Ahuja, 2000a). A firm’s social capital leads to the formation and Page | 10 maintenance of the network ties that can provide the ability to span the boundaries of other firms’ intellectual property to access external knowledge. The availability of external information triggers a firm’s internal agile absorptive capacity with collaborative internal processes for developing novel combinations of new external knowledge with internal knowledge leading to ideas for new products and market opportunities (Hargadon, 2005), Absorptive capacity becomes a set of knowledge-based capabilities embedded within a firm’s routines and strategic processes to respond to the dynamic nature of innovation and the industry network (Zahra & George, 2002). These four capacities drive a firm’s new market opportunities and competitive advantage. This dissertation reviews the literature related to open innovation, identifies the four key factors for innovative capacity and develops an integrated framework with propositions for a corporation’s open innovation management effectiveness. This dissertation proposes an Innovative Capacity Index with measures and metrics for a corporation to assess and monitor the latent variables of social capital, network ties, knowledge boundary spanning and agile absorptive capacity. Further research is needed to validate the effectiveness of this index in measuring and predicting effective open innovation. Organization of the Dissertation Chapter 1 provides an introduction to the problems associated with open innovation, the research questions and behaviors and business practices of a corporation for management effectiveness of open innovation. Chapter 2 provides a literature review of research related to open innovation for competitive advantage. Chapter 3 provides a conceptual framework for open innovation, propositions for management effectiveness and proposes the Innovative Capacity Index for use by corporation’s to measure the effectiveness of a its open innovation. Page | 11 Chapter 4 summarizes key findings and offers implications of future trends and management practices with areas for future research. Page | 12 Chapter 2: Literature Review There are five areas of research literature related to open innovation. The first addresses what open innovation is, the business shifts as a result of the emerging business models and strategies of open innovation, frameworks and their implications. The second addresses absorptive capacity as the business processes used to identify valuable external knowledge, bring this knowledge into a corporation, and integrate the new knowledge into a firm’s internal research and current internal knowledge to produce new products or services to bring to market. The third is network relationships with others in the innovation network. The fourth is spanning boundaries of corporations to access the knowledge in the innovation network. The fifth is the social capital described as the culture of a firm that becomes a firm’s asset based on the firm’s reputation for willingness and motivation to collaborate externally and share intellectual property. Open Innovation Henry Chesbrough (2003) coined the term “open innovation” in his seminal research observing that companies were increasingly generating ideas and bringing them to market by harnessing the ideas and R&D from other firms at lower cost and in shorter times. He found the drivers for open innovation to be the increased costs of R&D, shorter product lifecycles and smaller product revenue. He provides a theoretical foundation for the principles of closed and open innovation with a key difference in the recognition that being first to commercialize an innovatio

Examining the relationships between organizational communication and conflict management, and the Leader-Member Exchange (LMX) theory

Author: Ihidero Solomon O.
Publication venue: University of Maryland University College (UMUC)
Publication date: 20/08/2012
Field of study

This study examined the potential threats to an organization’s quest for effectiveness from destructive conflict and poor communication among employees in a workplace. This study proposed that quality leader-member exchange (LMX) promotes cooperative and effective communication, effective communication mitigates conflict situations, and well managed conflict situations promote organizational effectiveness. The purpose of this dissertation therefore, was to draw attention to the need for a replication of the LMX model organization-wide as an effective means of fostering communication, enhancing conflict management, and promoting positive organizational outcomes. The LMX theory was reviewed to describe leadership as centered on productive interactive processes and interpersonal relationships between superiors and subordinates. This research reviewed several empirically grounded studies to confirm the relevance of quality LMX in explicating organizational phenomena. In addition to the significant input from the Dissertation Committee members, insights from three expert panelists were applied to add value to the evidence-based approach of this dissertation. The findings were conclusive on the correlation of the triadic LMX-communication-conflict management construct.Examining the Relationships between Organizational Communication and Conflict Management, and the Leader-Member Exchange (LMX) Theory by Solomon Olufemi Ihidero, MBA, MPA A Thesis Submitted to the Graduate Faculty of University of Maryland University College in Partial Fulfillment of The Requirements for the Degree of Doctor of Management Dissertation Committee: James P. Gelatt, Ph.D. Kathleen F. Edwards, Ph.D. 2 ABSTRACT This study examined the potential threats to an organization’s quest for effectiveness from destructive conflict and poor communication among employees in a workplace. This study proposed that quality leader-member exchange (LMX) promotes cooperative and effective communication, effective communication mitigates conflict situations, and well managed conflict situations promote organizational effectiveness. The purpose of this dissertation therefore, was to draw attention to the need for a replication of the LMX model organization-wide as an effective means of fostering communication, enhancing conflict management, and promoting positive organizational outcomes. The LMX theory was reviewed to describe leadership as centered on productive interactive processes and interpersonal relationships between superiors and subordinates. This research reviewed several empirically grounded studies to confirm the relevance of quality LMX in explicating organizational phenomena. In addition to the significant input from the Dissertation Committee members, insights from three expert panelists were applied to add value to the evidence-based approach of this dissertation. The findings were conclusive on the correlation of the triadic LMX-communication-conflict management construct. KEYWORDS: Communication; Conflict Management; LMX; Organizational Effectiveness 3 TABLE OF CONTENTS ABSTRACT ................................................................................................................................................. 2 TABLE OF CONTENTS .............................................................................................................................. 3 ACKNOWLEDGEMENTS .......................................................................................................................... 6 CHAPTER 1: INTRODUCTION ................................................................................................................. 7 1.1. Background ........................................................................................................................................... 7 1.2. Statement and Significance of the Problem ........................................................................................... 8 1.3. Importance to Management/Educational Administration .................................................................... 10 1.4. Research Assumptions and Questions ................................................................................................. 12 1.4.1. Research Assumptions .............................................................................................................. 12 1.6. Research Questions .............................................................................................................................. 15 1.7. Organization of the Dissertation .......................................................................................................... 15 CHAPTER 2: LITERATURE REVIEW ................................................................................................... 17 2.1. Critical Review and Analysis ............................................................................................................... 18 2.1.1. Organizational Effectiveness, Measurement, and Definitional Issues ...................................... 18 2.2. Conflict Management ........................................................................................................................... 20 2.2.1. Organizational Conflict ............................................................................................................. 20 2.2.2. Empirical Perspectives on Organizational Conflict .................................................................. 23 2.2.3. Positive Views of Organizational Conflict ............................................................................... 24 2.2.4. Negative Views of Organizational Conflict .............................................................................. 32 2.2.5. Conflict Classification: Types and Levels ................................................................................ 37 2.2. 6. Conflict and Communication Parallels .................................................................................... 39 2.3. Discussion of Theoretical Lenses ........................................................................................................ 43 2.3.1. Information Richness Theory: Media Richness ........................................................................ 43 2.3.2. Social Exchange Theory ........................................................................................................... 46 2.3.3. LMX ......................................................................................................................................... 49 2.3.4. LMX: Background .................................................................................................................... 49 2.3.5. Defining LMX .......................................................................................................................... 53 2.3.6. Validating the Significance of LMX ......................................................................................... 55 4 2.3.7. Multi-Dimensionality of LMX: Extending the Validity of LMX ............................................. 62 2.3.8. LMX and Communication ........................................................................................................ 70 2.3.9 LMX and Organizational Structure ............................................................................................ 75 2.4. Summary ............................................................................................................................................. 77 CHAPTER 3: CONCEPTUAL FRAMEWORK ........................................................................................ 78 3.1. Graphical Analysis and Synthesis ........................................................................................................ 78 3.1.1. Conflict Model .......................................................................................................................... 78 3.1.2. Model Overview ....................................................................................................................... 79 3.1.3. Communication Models ............................................................................................................ 81 3.2. LMX Model ........................................................................................................................................ 86 3.3. A Model of LMX-Communication-Conflict Management .................................................................. 88 3.3.1. Integration of scholarship into the framework .......................................................................... 89 3.3.2. Linking the triadic concepts ...................................................................................................... 89 3.4. Conclusion .......................................................................................................................................... 94 CHAPTER 4: METHODOLOGY .............................................................................................................. 95 4. 1. Discussion of theory and practice of evidence-based research ........................................................... 95 4.1.1 Evidence-based research (EBR) ................................................................................................. 95 4.2. Discussion of the Scholarly Research Evidence .................................................................................. 96 4.2.1 Web of Science and LMX-Communication-Conflict Management Literature .......................... 96 4.3. Discussion of the Use of the Expert Panel as Evidence or Support ................................................... 100 4.4. Summary ........................................................................................................................................... 102 CHAPTER 5: ANALYSIS & DISCUSSION ........................................................................................... 104 5.1 Summary of Findings .......................................................................................................................... 104 5.2 Research Propositions in light of findings .......................................................................................... 105 5.3. Summary of Analysis and Discussion ............................................................................................... 114 CHAPTER 6: CONCLUSIONS, IMPLICATIONS & TRENDS ............................................................. 116 6.1. Overall Conclusions ........................................................................................................................... 116 6.1.1. Conclusions on Conflict and Communication ........................................................................ 116 6.1.2. Conclusions on LMX and Group Differentiation ................................................................... 116 6.1.3. Conclusions on LMX and Issues of Fairness .......................................................................... 117 6.2. Implications for Management ............................................................................................................ 118 5 6.3. Implications for Trends ...................................................................................................................... 120 6.3.1. Overview ................................................................................................................................ 120 6.3.2. Trends .................................................................................................................................... 120 6.4. Limitations and Areas for Future Research ....................................................................................... 123 6.5. Summary ........................................................................................................................................... 126 APPENDIX A: EXPERT PANEL ............................................................................................................ 127 APPENDIX B .......................................................................................................................................... 128 REFERENCES ........................................................................................................................................ 131 Figures Figure 1: Communication Quadrant……………………………………………………………..60 Figure 2: A Model of Organizational Conflict…………………………………………………..79 Figure 3: Mechanistic Model of Communication: The Shannon-Weaver Construct…………...83 Figure 4: The Chapman-White Model…………………………………………………………..85 Figure 5: Differentiated Dyadic LMX……………………………………………………..…….86 Figure 6: Conceptual Model: Linking the Triadic Concepts……………………………………89 Tables Table I: Relationship and Task Conflict Measurement Instruments…………………………….26 Table II: Conflict Consequences…………………………………………………………………42 Table III: LMX and its Positive Outcomes………………………………………………………56 6 ACKNOWLEDGEMENTS TO GOD, JEHOVAH ELOHIM, THE OMNISCIENT, BE THE GLORY. 7 CHAPTER 1: INTRODUCTION 1.1. Background Constructive conflict management, effective communication, and enhanced leader-member exchange (LMX) are areas of interest that have been studied empirically as having the potential of producing results that promote organizational effectiveness. According to Nicotera (1995), effective communication is closely associated with conflict management and both concepts “simultaneously define each other” (p. 8). In other words, communication and conflict management are inextricably linked. For example, Jae-Hwa’s (2009) review of 512 articles on the study of conflict in the health care setting identified lack of communication as a major consequence of workplace conflict among the 431 articles that addressed conflict outcomes. Communication, as conceptualized by Thomas and Pondy (1977), is the basic element “with which we are most concerned in understanding conflict management” (p. 1100). These referenced articles are discussed in detail in Chapter 2. Communication involves interactive processes. High levels of interactive processes between leaders and members are crucial aspects of the LMX model (Graen & Uhl-Bien, 1995). The terms “leader-members,” “leader-followers,” and “supervisor-subordinate employees” are used interchangeably in this dissertation. “Subordinate” in this context is used descriptively, not disparagingly, to identify the position of the referenced employees in the organizational chart. Research propositions are stated as part of the effort to illuminate the triadic (a group of three closely related) concepts – LMX, communication, and conflict management. The word “triadic” is employed to underscore the correlation of the LMX-communication-conflict management concepts. For the sake of brevity, “triadic concepts” is used interchangeably with the LMX-communication-conflict management construct. The emphasis of this study is that 8 interactive information exchange processes and interpersonal relationship attributes in LMX help mitigate conflict escalation in the workplace. This dissertation adopts a macro-level approach to examining the assumed linkage in the triadic concepts. Therefore, analyses of micro-level issues and related phenomena are limited. For example, cause and effect issues, as they relate to conflict and LMX, are examined from a communicative perspective. Two basic elements that underscore communication, “appropriateness and effectiveness” (Gross, Guerrero, & Alberts, 2004, p. 252), are highlighted to reflect their influence on conflict management. The unit of analysis of this dissertation is an organizational situation with a functionally interdependent system. In other words, emphasis is on those organizations in which the leader/supervisor and the subordinate employees are in mutual dependence in task execution. The supervisor is dependent on the behavior of his or her members – or at least some of them – and the members, on the other hand, are dependent upon the behavior of the supervisor. 1.2. Statement and Significance of the Problem The debate over the desirability of workplace conflict spans several decades. Works of classical theorists in the early 1900s, such as Henri Fayol, Frederick Taylor, and Max Weber, discouraged organizational conflict (Shafritz, Ott, & Jang, 2005) on the basis that nothing good ensued from conflict. However, a few other scholars in this period, such as Mary Parker Follett, interpreted workplace conflict from a slightly different perspective. Not averse to conflict, Follett (1940) proposed cooperation as a good moderator of organizational conflict. Recent scholars, such as Rahim (2001), conceptualize workplace conflict as inevitable. According to Rahim, “When two or more social entities (i.e., individuals, groups, organizations, and nations) come in 9 contact with one another in attaining their objectives, their relationships may become incompatible or inconsistent” (p. 1). Suggesting that workplace conflict may be inevitable, Ruben (1978) argued that conflicts are “not only essential to the growth, change, and evolution of living systems, but [also] a system’s primary defense against stagnation, detachment, entropy, and eventual extinction” (p. 206). In other related studies, scholars such as Van de Vliert (1985) encouraged deliberate instigation of conflict into the workplace. Dahrendorf (1959) believed that deliberate conflict instigation spurs creativity and change. The common theme in these studies, therefore, is that conflict is unavoidable in the life of an organization and considered as a positive indicator of an effective way of managing an organization. Chapter 2 of this dissertation reviews in detail the differing perspectives on organizational conflict. Several organizational issues can lead to workplace conflict. For example, Rahim (2001) conceptualized organizational structure and organizational processes, such as change-management process, as leading causes of workplace conflict. Gido and Clements (2009) identified “poor or ambiguous project communication, lack of information sharing, or failure to make a timely decision” (p. 353) as causes of conflict among work groups in an organization. This communication-conflict association is particularly relevant to this dissertation because it suggests that “the communication process also provides a means for successful conflict resolution, or alternatively, the escalation of conflict with negative outcomes” (Jae-Hwa, 2009, p. 79). Conflict management process may include a deliberate instigation and encouragement of a conflict situation, but judiciously controlled to prevent such conflict from escalating and producing negative outcomes. Aula and Siira (2010) argued that “conflict [is] an 10 important force in bringing out the differences among agents’ opinions, logics and worldviews, which, in turn, leads to more creative and novel outcomes” (p. 126). Barry and Crant (2000) recommended communication as the major bridge to social distances. “Social distance” describes the setting in which interpersonal relationships or dyadic interactions occur. Rahim (2001), applying the Rahim Organizational Conflict Inventory (ROCI) instrument designed to measure organizational conflict, suggested also that high frequency of information exchanges and open communication can reduce psychological distances between contending parties. This dissertation strives to contribute to scholarship by highlighting how the superior-subordinate relationship, as a social system, “is an ambient message environment for members” in that system (Lee, 1997, p. 266). Ambiance, in this context, describes an atmosphere in which information exchanges are fundamental in the superior-subordinate relationship. According to Lee (1997), employees in this atmosphere “exchange more information; share ideas and resources; show concern and interest in what others want to accomplish; provide assistance; are more responsive, supportive, and open to each other’s needs; and consult and discuss issues to reach mutually satisfying agreements” (p. 268). 1.3. Importance to Management/Educational Administration This study reviews three important concepts that influence the proper functioning of an organization. Reviewed literature in this dissertation reinforces the knowledge that conflict, left unmanaged or mismanaged, has the potential to escalate and produce immensely destructive results. Such destructive outcomes can undermine an organization’s quest for continuity and sustainable development. A salient aspect of conflict management – communication - is brought 11 to the fore in this dissertation. Beyond the importance of communicating through conflict as integral to conflict resolution, this dissertation contributes to management and the academe in the area of interpersonal communication as a credible way of building work relationships among employees. Emphasis on interpersonal communication is done by reference to the LMX theory. This study also reinforces the possibility for multiple routes of communication in an organization. This dissertation brings to the fore the importance of the fundamental assumptions in high-quality LMX partnerships. High-quality LMX refers to the level of relationship between the leader and the in-group members in a dyad. Reciprocal support, mutual trust and respect, and positive organizational outcomes usually characterize the exchanges in this group. The reference to the group differentiation in LMX is descriptive. The intent is not to recommend that managers should apply this differentiation in managing their work groups. For the sake of emphasis, the inclusion of group differentiation in

Senior management directing foster care in social services: Intentional use of empathy in quality improvement

Author: Lee Rosalind C.
Publication venue: University of Maryland University College (UMUC)
Publication date: 20/08/2012
Field of study

This study examines the relationship between empathy, as a neuropsychological phenomenon, and quality improvement decision-making by senior management directing foster care. This study seeks to formulate an innovative quality improvement process model for senior management who are engaged in improving consumer and organizational outcomes in the social service programming dedicated to foster care. A systematic review will be conducted of interdisciplinary literature and research centering neuroscience, psychology, management, business and the social sciences. From this review, an identification and articulation of a correlative relationship between the psycho-social characteristic of empathy and senior management quality improvement efforts in foster care is suggested. By utilizing an organizational learning framework, this study aims to develop an innovative quality improvement process model which engenders and reinforces high quality sets of senior management change actions and practices. The findings of this study suggest that empathy and its affirming relationship building attributes has a positive influence on quality improvement decision-making by senior management governing foster care organizations. Moreover, when senior management employs and understands a social work model of empathy (affective, cognitive, empathic action) it can cultivate trusting and creative environments for employees and consumers; this kind of social and cultural motivation leads to settings where both employees and consumers can authentically communicate, take risks and create viable relationships capable of impelling desired outcomes for consumers and organizations. The study indicated that the use of empathy and its impact on quality improvement decision making by senior management progressively influence organizations to reexamine their current management practices and reevaluate their use and implementation. In this regard, this paper presents a humanistic quality improvement model that compels organizations to refocus and realign their quality improvement efforts to meet the needs and goals of its consumers and stakeholders. Properly managed this ―adaptive empathy‖ model can be perpetuated throughout social services to support and empower personnel to increase their contribution to the achievement of consumerSenior Management Directing Foster Care in Social Services: Intentional Use of Empathy in Quality Improvement By Rosalind C. Lee, MA A Dissertation submitted to the Faculty of the Graduate School of the University of Maryland University College In partial fulfillment of The requirements for the degree of Doctor of Management 2011 Dissertation Committee: Dennis Winters, Ph.D. Kathleen Edwards, Ph.D. 2 Abstract This study examines the relationship between empathy, as a neuropsychological phenomenon, and quality improvement decision-making by senior management directing foster care. This study seeks to formulate an innovative quality improvement process model for senior management who are engaged in improving consumer and organizational outcomes in the social service programming dedicated to foster care. A systematic review will be conducted of interdisciplinary literature and research centering neuroscience, psychology, management, business and the social sciences. From this review, an identification and articulation of a correlative relationship between the psycho-social characteristic of empathy and senior management quality improvement efforts in foster care is suggested. By utilizing an organizational learning framework, this study aims to develop an innovative quality improvement process model which engenders and reinforces high quality sets of senior management change actions and practices. The findings of this study suggest that empathy and its affirming relationship building attributes has a positive influence on quality improvement decision-making by senior management governing foster care organizations. Moreover, when senior management employs and understands a social work model of empathy (affective, cognitive, empathic action) it can cultivate trusting and creative environments for employees and consumers; this kind of social and cultural motivation leads to settings where both employees and consumers can authentically communicate, take risks and create viable relationships capable of impelling desired outcomes for consumers and organizations. 3 The study indicated that the use of empathy and its impact on quality improvement decision making by senior management progressively influence organizations to reexamine their current management practices and reevaluate their use and implementation. In this regard, this paper presents a humanistic quality improvement model that compels organizations to refocus and realign their quality improvement efforts to meet the needs and goals of its consumers and stakeholders. Properly managed this ―adaptive empathy‖ model can be perpetuated throughout social services to support and empower personnel to increase their contribution to the achievement of consumer and organizational outcomes that maintain business continuity and sustainability. Keywords – Empathy, quality improvement, foster care, senior management decision-making 4 Dedication In loving memory of Nora and Thomas Nowlin, Bellah and William Lee, Vivian and Otis Nowlin and Hayward T. Ford, I dedicate this dissertation to my deceased loved ones who demanded and implored that I follow my passion and thirst for knowledge and commitment to serving others. 5 Acknowledgements To my expert panel of practitioners in the field of social services, Dr. Laurence Jackson, Dr. Henry Gregory and Maisha Davis, to my illustrious UMUC faculty members who directly impacted my growth and development, Dr. Claudine SchWeber, Dr. Jim Gellatt, Dr. Kathleen Edwards and with unceasing appreciation to Dr. Dennis Winters who initially inducted me into this challenging and enriching journey of doctorial scholarship and finally to the person who has inspired me to live on purpose from birth, my mother - Ruby L. Nowlin. 6 TABLE OF CONTENTS Abstract……………………………………………………………………………………...2 Dedication…………………………………………………………………………………...4 Acknowledgements………………………………………………………………………….5 Table of Contents…………………………………………………….……………………...6 CHAPTER 1: INTRODUCTION ….……………………………………………………….9 Statement and significance of the problem………………………………………….9 Importance to the Field of Management.……………………..……………………13 Research Questions and Propositions……………………………………………...15 Organization of the dissertation……………………………………………………17 CHAPTER 2: LITERATURE REVIEW………………………………………….………18 Critical Review and Analysis of the literature……….…………………………….18 Empathy and Its Origins…………………………………………………...18 Empathy and Relationship Development ……………………………….....19 Psychological/Sociological……………………...............................19 Neurological/Physiological………………………………………...26 Empathy in the Workplace…………………………………………………28 Historical Overview……………………………………………......28 Empathy and Foster Care ………………………………………………….30 Senior Management Decision-Making…………………………….30 Quality Improvement in Foster Care/Human Services………….....32 Discussion of Theoretical lens ………………………………………………….....35 Research Proposition………………………………………………………………36 7 CHAPTER 3: CONCEPTUAL FRAMEWORK ………………………………….………37 Overview of Conceptual Framework………………………………………………37 Graphical Analysis and Synthesis of the Conceptual Framework…………………38 The Neuro-physiological Indicators of Empathy…………………………..38 The Psycho-social Indicators of Empathy…………………………............45 Socialization and Relationship Building …………………………..45 Empathic Decision-Making...……………………………...48 Integration of Scholarship into the Framework…………………............................51 Intentional Empathy: A Quality Improvement Model……………..51 Summary…………………………………………………………………………...53 List of Tables Table 1- The Social Work Model of Empathy……………………………………..46 List of Figures Figure 1 – Neural Circuits Representing Affective Pain-related States………..….39 Figure 2- Emotional Contagion Mapping………………………………………….42 Figure 3 – Empathy-Related Perspective Taking Process…………………………43 Figure 4 – The Neurodevelopment of Empathy…………………………………...49 Figure 5 – Intentional Empathy: A Quality Improvement Model…………………52 CHAPTER 4: METHODOLOGY…………………………………………………………54 Theory and Practice of Evidence-Based Research………………………………...54 Scholarly Research Evidence………………………………………………...........55 Expert Panel Support………………………………………………………………60 Summary…………………………………………………………………………..62 8 List of Tables Table 1: Keywords & Term Phrases Chart…………………………..…………….55 Table 2: Rationale for Inclusion and Exclusion of Articles and Publications……..57 Table 3: Quality Criteria…………………………………………………………...58 List of Figures Figure 1: Research Design………………………………………………................59 CHAPTER 5: ANALYSIS & DISCUSSION Presentation and Summary of Findings …………………………………………...62 Research Questions in light of findings……………………………………………63 Empathy and Relationship Building……………………………………………….63 Contrary Findings………………………………………………………….65 Empathy and Organizational Environments……………………………………….66 Contrary Findings………………………………………………………….68 Empathy and Senior Management Decision-Making in Foster Care……………..69 Summary of Analysis and Discussion…….….……………………………………71 CHAPTER 6: CONCLUSIONS, IMPLICATIONS AND TREND………………………72 Overall Conclusions…………………………………………………………..……72 Implication for Management……………………………………………………….74 Implications for Trends…………………………………………………………….79 Limitations and Future Research…………………………………………………..80 Summary……………..…………………………………………………………….81 REFERENCES…………………………………………………………………………….83 9 Chapter 1: Introduction Statement and Significance of the Problem In the field of social work, individuals within organizations seek to assist and serve consumers in a manner that inspires, encourages and motivates them to desist from actualizing maladaptive behaviors. A shift to employing productive, life sustaining actions that stimulate growth and renewal in the life of the consumer or family is the ultimate goal. More specifically, in the area of foster care, natural families, clinical practitioners, foster families, contracting entities, kinship caregivers, court systems, the medical community, educators and legislators, all consist of the network of helping service providers. In 2010, the U.S. foster care system reported that approximately 408,425 children and teens were ―in care‖ on the last day of federal fiscal year. These children and teens were placed in temporary out-of-home placements due to parental abuse and neglect. (ARCARS, 2010) During FY 2010, 254,375 children entered foster care due to alleged maltreatment, abuse, neglect or lose of a primary caregiver. (National Data Archive on Child Abuse and Neglect) Commensurate with this number of children and teens in foster care, was their average length of stay of 25.3 months (ARCARS, 2010). Consequently, this extended period of stay is not the desired outcome for temporary foster care; and foster care agencies that are charged and funded to monitor, supervise and safeguard children while in care. The responsibility of reducing the length of stay for children and teens, providing safe and nurturing temporary foster homes, obtaining wellness, educational and extracurricular services and identifying alternative permanency placements, when needed, is the primary task of foster care agencies and their helping provider organizations. These providers share and contribute to reunifying children with 10 their natural families. When that is not possible, these same service providers identify, support, fund and recommend alternative permanency opportunities for children and teens when reunification is a determent to the life chances of children and teens. As a result of this major human service undertaking, foster care agencies who have an inward sensitivity and intimate understanding about how out-of-home child placement can interrupt, traumatize, and emotionally damage a child and the family of origin is vital when developing wrap-around services to protect and provide for the child in care and to support and encourage families of origin who were unable to stabilize their children while at home (Jones & Gallop, 2003; Glisson & Hemmelgarn, 1998; Megivern, McMillen, Proctor, Striley, Cabassa & Munson, 2007). An empathic awareness of what families and children need to heal from trauma, excel in crisis and reunite as families learn how to manage their life stressors and challenges. Exhibiting empathy, with regard to the children and families in care, the personnel working with this deserving population and the contracted community-interest outcomes desired by federal and local social service contractors is paramount in effectively providing quality services (Gerdes & Segal, 2009). Decision-making models pertaining to foster care programming, hiring qualified personnel, advocating in the child and family court systems and the like require human-centered, people empowering influence and contemplation. Organizations that are experienced at mining for the challenging truths in families and apt at identifying viable resources/services that genuinely meet the needs of children and families in care are what governmental and private funding contractors desire to employ. However, with oscillating shifts in federal and local regulations in social services, increased reports of abuse, neglect and depravity in families and the reduction of funding 11 and support for social service organizations in the United States by governmental entities and charitable organizations, social service organizations have been in a perpetual state of flux, uncertainty and unrest (Menefee & Schagrin, 2003). Service contractors, government and citizens desire more supportive services while providing much less funding and resources. In this present financial climate, many foster care organizations have closed their doors as a result of exhausting restrictive and confining budgets for child and family services that often did not cover real costs e.g., infrastructure, employee, client. (Foley, 2004) As a result, a number of children and families requiring reunification support, job readiness and housing referral assistance, individual and family therapy and adoption services suffer from waning community resources. Traditionally, child and family service organizations have been under tremendous pressure to produce quality services for consumers and stakeholders that positively impact the life chance and choices of consumers (Wimpfheimer, 2004; Hopkins, 2002). Consequently, in the current economic downturn, these service organizations, which were traditionally managed on shoestring governmental budgets and minor altruistic gifts from stakeholders and philanthropic organizations, are now finding themselves without alternative funding and majorly dependent on governmental support and resources. In the face of this predicament, senior management in foster care, whose primary responsibility is to maintain and sustain organizational capacity by improving and growing services, are scrambling to identify alternate funding and innovative measures to stay afloat. To reduce costs and govern organizations where employees have the resources required to provide quality services to deserving and challenging consumers, senior management has a overwhelming responsibility of generating, balancing and increasing resources to meet the 12 demands and needs of policy and regulatory mandates, workforce, consumers and stakeholders (Martin & Kettner, 1996; Menefee & Schagrin, 2003). Organizational continuity and sustainability is the driving force behind senior management decision-making and strategic engagement (Lee, McMillen, Knudsen, Woods, 2007). These executives are charged with the duty of safeguarding operations and creating healthy organizational environments where employees and consumers understand their respective roles in achieving consumer and organizational outcomes (McPherson, 2007). This resource generating and motivationally inspiring role, for senior management, is an enormous one and has the potential to expand or contract organizations if critical and substantive measures and decisions are not soundly considered and effectively deployed. In the field of social work a ―strong manager must be an expert in many fields and must be able to make decisions that are based on knowledge that is varied and multi-faceted‖ (Wimpfheimer, 2004, p.46). Innovative approaches to quality improvement decision-making by senior management can potentially motivate and ensure the delivery of quality core services and expands core competencies of staff. For this reason, senior management is commissioned to acknowledge and resolve organizational silos of internal systems, culture, employee relations and skill/proficiency to ensure progress. Innovativeness, in organizations, is a mindset that requires openness and readiness to meet and surpass needs (Patnik, 2010, 2009). Whether the need emanates from employees, stakeholders or consumers, meeting the needs and desires of others typically navigates and propels the innovation process. Importance of Study to the Management Field 13 Organizationally, it has been confirmed that effective innovation is the life blood that sustains competitive advantage in and customer loyalty to organizations (Patnik, 2010, 2009; Holmen, Pedersen & Torvatn, 2005; Panayides, 2006). ―Innovation is about growth and growth takes empathy, creativity and execution.‖ (Patnik, 2010, p. 5) When operationalizing empathy, an organization seeks the acquisition of a ―shared intuition‖ that reports what consumers need and value in their lives (Patnik, 2010, p. 5). Companies that institutionalize empathy identify opportunities quicker, have the courage to innovatively approach new solutions and devise better decision-making strategies that contribute to organizational and consumer outcomes in the industry (Patnik 2010). However, in organizations, senior management‘s ability to be innovative has been a major dilemma and has attributed to the demise of many companies (Christensen, 2001; Ahlstrom; 2010). It may be argued that focusing on the psycho-social benefits and exploring the managerial uses of empathy in quality improvement interventions, in social service organizations, could revitalize and inspire pro-social relational connections that increase individual and organizational learning. Senior management in organizations, if intentional and purposed, have the ability to sanction, influence, and invest in organizational cultures/systems/practices that inspire, ignite and fuel employees, consumers and stakeholders to reach and strive for improved performance, increased quality in services and receptively participate in achieving shared goals and outcomes. An organic and mindful model of quality improvement could significantly benefit senior management charged with achieving organizational outcomes and resiliency. In the field of psychology, empathy is considered a human acquisition of sensitivity to individuals and their feelings and experiences (Rego, Sousa, Cunha, Correria & Saur-14 Amaral, 2007). This sensitive and receptive competency often yields significant benefits for relationship building and trust (Kohut, 1971; Rogers, 1975; Smith, 2006). When examining the benefit of empathy in relationship development, it is often associated with positive social interaction and is identified as major building blocks for cultivated and planned evolution and maintenance of healthy relationships (Bunker, 2005; Goleman, Boyatzis & McKee, 2002). In social work, possessing the awareness and ability to understand and be inwardly compassionate toward the mental, emotional and physical state of others is classically considered a person-centered competency and as such invaluable in creating healthy relationships and human bonding/attachment. Healthy attachments are the connections that sustain relationships and promote positive interaction (Rogers, 1975). Viable connections/relationships can level situations/disagreements where intellect and reason can not compete. In relationship enrichment and the sustainability of healthy relationships, empathy has been documented as a reliable source of relationship maintenance (Davis & Newstrom, 1989; Duan & Hill, 1996; Gerdes & Segal, 2009). Conversely, the lack of empathy has been often linked to poor health (neurological/ psychological) and as a deterrent to relationship enhancement (Bornstein, 2001; Schein, 1991; Kellett, Humphrey, & Sleeth, 2006; Skinner & Spurgeon, 2005). When empathy is devalued or stifled, neurologically people have difficulty connecting and sharing authentic human exchange and emotionally people reduce their commitment to care and support one another (Blair, Jones, Clark & Smith, 1997; Bootzin, Acocella, & Alloy, 1993; Decety & Jackson, 2006). Accordingly, the value of empathy has often been overlooked and diminished in the field of business and management. Historically, the immediate and long term advantages derived from empathetic management in organizations has been 15 undervalued and mocked for its purported soft skills deficiencies (Hicks & Dess, 2008). Similarly, a lack of empathy also has the potential to disrupt the health, welfare and prosperity of an organization and any acquired competitive advantage. In the field of management, many researchers have identified correlative relationships between the lack of empathy in management and a reduction in organizational performance (Schmid, 2006; Scott, 1999; Kellett, Humphrey & Sleeth, 2006; Goleman et al., 2002). As a result, empathy, as an organizational management competency, can play a vital role in contributing to an organization‘s ability to succeed or fail

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