We appreciate the opportunity to respond to the provocative Dialogue pieces of Read, Sarasvathy, ... more We appreciate the opportunity to respond to the provocative Dialogue pieces of Read, Sarasvathy, Dew, and Wiltbank (2016; henceforth, “RSDW”); Reuber, Fischer, and Coviello (2016; henceforth, “RFC”); Gupta, Chiles, and McMullen (2016; henceforth, “GCM”); and Garud and Gehman (2016; henceforth, “GG”), each of which makes several claims in defense of effectuation, as well as describes several ways forward in entrepreneurshipand process-related theorizing. We respond in a manner consistentwith the traditional perspective in management theorizing that “good theory is practical” (Lewin, 1945), where “theory is theory” (Simon, 1967; Van de Ven, 1989) based on our discipline’s collective commitment to knowledge production (Suddaby, 2014). In fact, we respond in the traditionofscientific theory—itsbuilding, itscritique, and its defense. Leveraging the logic behind that tradition, we thus refute every point contained in RSDW’s,RFC’s,GCM’s,andGG’scommentariesand attempt to build on what is co...
Among scholars, policy makers, and practitioners, there is considerable interest in the dynamics ... more Among scholars, policy makers, and practitioners, there is considerable interest in the dynamics associated with regions, including their emergence, decline, and regeneration. Such interest is well justified given the role that regions play in contributing to social well-being at a variety of scales—from individuals to communities and even nation-states. In this article, we examine the processes that unfolded during the regeneration of a region in Denmark that was known for its competence in manufacturing equipment and is now known as a world leader in wind turbines. We highlight three mechanisms that led to the regeneration of this region: repurposing, experimentation, and collective learning. Based on these findings, we propose a neo-design approach to the regeneration of regions.
R&D investments drive competitive advantage of firms and whole economies. However, banks as t... more R&D investments drive competitive advantage of firms and whole economies. However, banks as the main provider of external funds for the vast majority of firms seem ill-equipped to provide funding. We question the dominant assumption that all banks suffer equally from information uncertainties and asymmetries in the evaluation of R&D. We argue that information externalities emerge from the other firms in a bank’s portfolio. This positive effect of information access needs to be balanced with correlated risk concerns in the portfolio. We test this model for more than 7,000 German firm observations, their main bank’s client portfolio and their R&D expenditures over a six year period. The theoretical predictions are supported. Firm potentials for altering the bank risk assessments through signaling are limited to patenting.
... designing and deploying this gigantic magnet system turned out to be much greater than had be... more ... designing and deploying this gigantic magnet system turned out to be much greater than had been anticipated. While scientists were already working on the designs of other ATLAS components based on the original specifications, the ATLAS toroid was scaled down to have ...
S ustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts... more S ustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts of many actors to facilitate (1) the recombination of ideas to generate novelty, (2) real-time problem solving, and (3) linkages between present innovation efforts with past experiences and future aspirations. We propose that innovation narratives are cultural mechanisms that address these coordination requirements by enabling translation. Specifically, innovation narratives are powerful mechanisms for translating ideas across the organization so that they are comprehensible and appear legitimate to others. Narratives also enable people to translate emergent situations that are ambiguous or equivocal so as to promote real-time problem solving. With their accumulation, innovation narratives provide a generative memory for organizations that enable people to translate ideas accumulated from particular instances of past innovation to inform current and future efforts.
Sustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts ... more Sustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts of many actors to facilitate (1) the recombination of ideas to generate novelty, (2) real-time problem solving, and (3) linkages between present innovation efforts with past experiences and future aspirations. We propose that innovation narratives are cultural mechanisms that address these coordination requirements by enabling translation. Specifically, innovation narratives are powerful mechanisms for translating ideas across the organization so that they are comprehensible and appear legitimate to others. Narratives also enable people to translate emergent situations that are ambiguous or equivocal so as to promote real-time problem solving. With their accumulation, innovation narratives provide a generative memory for organizations that enable people to translate ideas accumulated from particular instances of past innovation to inform current and future efforts.
Researchers influence the development of technologies based on their frames of reference and leve... more Researchers influence the development of technologies based on their frames of reference and levels of inclusion. The authors employ these constructs to study the emergence of one technology: cochlear implants. Their description reveals the roles that researchers play in negotiating the institutional fabric of a technology.
We appreciate the opportunity to respond to the provocative Dialogue pieces of Read, Sarasvathy, ... more We appreciate the opportunity to respond to the provocative Dialogue pieces of Read, Sarasvathy, Dew, and Wiltbank (2016; henceforth, “RSDW”); Reuber, Fischer, and Coviello (2016; henceforth, “RFC”); Gupta, Chiles, and McMullen (2016; henceforth, “GCM”); and Garud and Gehman (2016; henceforth, “GG”), each of which makes several claims in defense of effectuation, as well as describes several ways forward in entrepreneurshipand process-related theorizing. We respond in a manner consistentwith the traditional perspective in management theorizing that “good theory is practical” (Lewin, 1945), where “theory is theory” (Simon, 1967; Van de Ven, 1989) based on our discipline’s collective commitment to knowledge production (Suddaby, 2014). In fact, we respond in the traditionofscientific theory—itsbuilding, itscritique, and its defense. Leveraging the logic behind that tradition, we thus refute every point contained in RSDW’s,RFC’s,GCM’s,andGG’scommentariesand attempt to build on what is co...
Among scholars, policy makers, and practitioners, there is considerable interest in the dynamics ... more Among scholars, policy makers, and practitioners, there is considerable interest in the dynamics associated with regions, including their emergence, decline, and regeneration. Such interest is well justified given the role that regions play in contributing to social well-being at a variety of scales—from individuals to communities and even nation-states. In this article, we examine the processes that unfolded during the regeneration of a region in Denmark that was known for its competence in manufacturing equipment and is now known as a world leader in wind turbines. We highlight three mechanisms that led to the regeneration of this region: repurposing, experimentation, and collective learning. Based on these findings, we propose a neo-design approach to the regeneration of regions.
R&D investments drive competitive advantage of firms and whole economies. However, banks as t... more R&D investments drive competitive advantage of firms and whole economies. However, banks as the main provider of external funds for the vast majority of firms seem ill-equipped to provide funding. We question the dominant assumption that all banks suffer equally from information uncertainties and asymmetries in the evaluation of R&D. We argue that information externalities emerge from the other firms in a bank’s portfolio. This positive effect of information access needs to be balanced with correlated risk concerns in the portfolio. We test this model for more than 7,000 German firm observations, their main bank’s client portfolio and their R&D expenditures over a six year period. The theoretical predictions are supported. Firm potentials for altering the bank risk assessments through signaling are limited to patenting.
... designing and deploying this gigantic magnet system turned out to be much greater than had be... more ... designing and deploying this gigantic magnet system turned out to be much greater than had been anticipated. While scientists were already working on the designs of other ATLAS components based on the original specifications, the ATLAS toroid was scaled down to have ...
S ustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts... more S ustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts of many actors to facilitate (1) the recombination of ideas to generate novelty, (2) real-time problem solving, and (3) linkages between present innovation efforts with past experiences and future aspirations. We propose that innovation narratives are cultural mechanisms that address these coordination requirements by enabling translation. Specifically, innovation narratives are powerful mechanisms for translating ideas across the organization so that they are comprehensible and appear legitimate to others. Narratives also enable people to translate emergent situations that are ambiguous or equivocal so as to promote real-time problem solving. With their accumulation, innovation narratives provide a generative memory for organizations that enable people to translate ideas accumulated from particular instances of past innovation to inform current and future efforts.
Sustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts ... more Sustaining innovation is a vital yet difficult task. Innovation requires the coordinated efforts of many actors to facilitate (1) the recombination of ideas to generate novelty, (2) real-time problem solving, and (3) linkages between present innovation efforts with past experiences and future aspirations. We propose that innovation narratives are cultural mechanisms that address these coordination requirements by enabling translation. Specifically, innovation narratives are powerful mechanisms for translating ideas across the organization so that they are comprehensible and appear legitimate to others. Narratives also enable people to translate emergent situations that are ambiguous or equivocal so as to promote real-time problem solving. With their accumulation, innovation narratives provide a generative memory for organizations that enable people to translate ideas accumulated from particular instances of past innovation to inform current and future efforts.
Researchers influence the development of technologies based on their frames of reference and leve... more Researchers influence the development of technologies based on their frames of reference and levels of inclusion. The authors employ these constructs to study the emergence of one technology: cochlear implants. Their description reveals the roles that researchers play in negotiating the institutional fabric of a technology.
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Papers by Raghu Garud