This paper estimates a model of potential to enter self-employment based on individual, household and community-level factors. This paper focuses on the impact of segregation on the likelihood of black and white working-age adults to be self-employed workers rather than wage or salary workers. A multilevel analysis combined answers of over 400,000 respondents to the 1990 and 2000 Integrated Public Use Micro Sample (IPUMS) [Ruggles, S., Sobek, M.,Alexander, T., Fitch, C.,Goeken, R.,Hall, P.,King, M.,Ronnander, C., 2004. Integrated Public Use Microdata Series: Version 3.0 [Machine-readable database]. Minnesota Population Center [producer and distributor], Minneapolis, MN] with structural measures from 327 metropolitan areas from the U.S. Census Bureau's Housing Patterns files [Iceland, J.,Weinberg, D., Steinmetz, E., 2002. Racial and ethnic residential segregation in the United States, 1980-2000. Special Report Series, CENSR no.3, U.S. Census Bureau, Washington, DC] to test the influence of each segregation process. The two residential segregation processes (relative clustering and exposure) were found to limit and enhance potential entry into self-employment, but in unique ways for each group.

A key role of corporate managers is to encourage subsidiaries to adopt innovative practices. This paper examines the conditions under which corporate managers use information provision to encourage subsidiaries' adoption of advanced management practices. Focusing on the distribution of expertise across subsidiaries, we propose that corporate managers elect an information provision strategy when (i) subsidiaries, on average, possess moderate levels of related expertise, (ii) subsidiaries exhibit significant heterogeneity in this expertise, and (iii) the subsidiaries are more diversified and less concentrated. We examine the efforts to diffuse pollution prevention practices exhibited by manufacturing firms in the information and communication technology sector in the United States, and find empirical support for the four hypotheses developed here. The research presented in this paper has implications for our understanding not only of who adopts advanced environmental management practices, but more broadly, of when firms adopt information provision strategies to encourage knowledge transfer within the organization.

Component sharing-the use of a component on multiple products within a firm's product line-is widely practiced as a means of offering high variety at low cost. Although many researchers have examined trade-offs involved in component sharing, little research has focused on the impact of component sharing on quality. In this paper, we examine how component sharing impacts one dimension of quality-reliability-defined as mean time to failure. Design considerations suggest that a component designed uniquely for a product will result in higher reliability due to the better fit of the component within the architecture of the product. On the other hand, the learning curve literature suggests that greater experience with a component can improve conformance quality, and can increase reliability via learning from end-user feedback. The engineering literature suggests that improved conformance in turn increases reliability. Sharing a component across multiple products increases experience, and hence, should increase reliability. Using data from the automotive industry, we find support for the hypothesis that higher component reliability is associated with higher cumulative experience with a component. Further, we find support for the hypothesis that higher component reliability is associated with a component that has been designed uniquely for a product. This finding suggests that the popular design strategy of component sharing can in some cases compromise product quality, via reduced reliability.

Human artifacts lie on the interface between their inner environments and their outer environments. Organizations, therefore, are apt subjects to be studied through a science of the artificial. Furthermore, organizational design happens at two interfaces: first, at the interface between organizational founder(s) and the firms they design, and second, between the firms and the environments in which they operate. We use recent developments in the study of entrepreneurial expertise to show why an effectual logic of design is necessary at the first interface, and what its consequences are for designing at the second. In particular, we use the exemplar case of Starbucks to codify three key characteristics of the design problem at the first interface - namely, Knightian uncertainty, goal ambiguity and environmental isotropy. We then use an `alternate histories' method to trace four strategic options - namely, planning, adaptation, vision and transformation - for designing at the second interface. In the final analysis, organizational design is important because effectuators using transformational approaches not only design organizations, but concurrently end up designing the environments we live in.

In their article on entrepreneurship, effectuation, and over-trust, Goel and Karri suggest relationships between effectuation, over-trust, and certain psychological characteristics of entrepreneurs. In this response we debate their article. Goel and Karri are correct in claiming that effectuation supposes over-trust. However, we argue that effectual logic works in a different way than they presented because it neither predicts nor assumes trust. Goel and Karri's article also draws attention to the behavioral assumptions underlying constructs such as over-(under) trust. Our suggestion is that effectuation is based on alternative behavioral assumptions that open up interesting avenues for future research in entrepreneurship.

In an excellent recent paper on Ludwig Lachmann's contributions to entrepreneurship, Chiles, Bluedorn and Gupta draw parallels between Lachmann's work and later contributions in the entrepreneurship literature, including Sarasvathy (2001), suggesting that, 'Sarasvathy's economic approach to entrepreneurship is decidedly Lachmannian' (Chiles et al. 2007: 487). Our purpose in responding to the Chiles et al. article is twofold. First, our interpretation about how effectuation works differs in certain ways from the interpretations placed on it by these authors; we therefore wish to clarify our views on these matters. Second, we view the relationship between effectuation and Lachmann's perspective on entrepreneurship somewhat differently than Chiles et al.; in this note we lay out this alternative view. The crux of our presentation is that, although Lachmann and Sarasvathy have much the same starting point (entrepreneurial action in the face of true uncertainty) and several overlaps in terms of the overall implications for dominant economic theories, there are crucial differences that draw upon recent developments in our understanding of how the human mind works and what knowledge is constituted of.

This book aimed at practitioners shares the stories of innovation portfolio directors and other industry leaders who have experienced the challenges and rewards of new product development. Along with practical examples from varied corporate settings, the authors present a set of key principles that are integral to success when managing the new product portfolio. Case studies from Walt Disney to Mars, Inc., Whirlpool, UTC, and IBM help illustrate in practical ways what it takes to successful lead product development starting with idea generation and extending through process design and architecture all the way to the creation and management of innovative partnerships.

In modern societies entrepreneurship and innovation are widely seen as key sources of economic growth and welfare increases. Yet entrepreneurial innovation has also meant losses and hardships for some members of society: it is destructive of some stakeholders' wellbeing even as it creates new wellbeing among other stakeholders. Both the positive benefits and negative externalities of innovation are problematic because entrepreneurs initiate new ventures before their private profitability and/or social costs can be fully recognized. In this paper we consider three analytical frameworks within which these issues might be examined: pre-commitments, contractarianism, and an entrepreneurial framework. We conclude that the intersection of stakeholder theory and entrepreneurial innovation is a potentially rich arena for research.

The term "emerging domestic markets" (EDM) has generated considerable practical and scholarly interest in economic opportunities in communities that have largely been overlooked by the investment community as a whole. The explicitly economic perspective offered by EDM and the positive associations with international emerging markets have contributed to growing investor interest in low-income and minority communities. However, the lack of clarity in definitions may have created unintended consequences for the investment professionals attempting to develop these markets. In this essay, I describe three examples of how loose definitions have created dilemmas for private equity professionals managing what have been termed EDM-targeted funds. If we agree that language matters, then these cautionary tales call for a greater degree of clarity among opinion leaders when discussing these opportunities.

The ability to see new possibilities is fundamental to creating innovative designs - but what do we know about state-of-the-art possibility thinking? The purpose of this paper is to look at this topic, which the strategy field has largely ignored in favor of analytics, by examining a selection of breakthrough engineering projects. Out of these, the paper aims to draw eight different ways of illuminating new possibilities - challenging, connecting, visualizing, collaborating, harmonizing, improvising, re-orienting, and playing - and discuss what each of these might look like if applied to business strategy. The paper explores eight different engineering projects that are regarded as especially innovative. It then explores the lessons of these for business strategists. The paper finds that innovative business strategy development has many parallels with engineering approaches.

Today's preoccupation with cost shifting and cost reduction undermines physicians and patients. Instead, health care reform must focus on improving health and health care value for patients. We propose a strategy for reform that is market based but physician led. Physician leadership is essential. Improving the value of health care is something only medical teams can do. The right kind of competition-competition to improve results-will drive dramatic improvement. With such positive-sum competition, patients will receive better care, physicians will be rewarded for excellence, and costs will be contained. Physicians can lead this change and return the practice of medicine to its appropriate focus: enabling health and effective care. Three principles should guide this change: (1) the goal is value for patients, (2) medical practice should be organized around medical conditions and care cycles, and (3) results-risk-adjusted outcomes and costs-must be measured. Following these principles, professional satisfaction will increase and current pressures on physicians will decrease. If physicians fail to lead these changes, they will inevitably face ever-increasing administrative control of medicine. Improving health and health care value for patients is the only real solution. Value-based competition on results provides a path for reform that recognizes the role of health professionals at the heart of the system.

A rigorous two-year study of the top 800 value-creating public companies found that growth generated internally through a commitment to customer satisfaction, employee engagement, and profitability resulted in consistent employee retention, stock value improvements, and better returns on investment. In The Road to Organic Growth, Edward Hess shares the full results of his breakthrough study, providing fresh, and often-surprising perspectives on what it really takes to foster organic growth. Using instructive examples from leading companies such as SYSCO, Best Buy, Tiffany & Company, Outback Steakhouse, and Stryker Corporation, Hess reveals the strategies these trailblazers used to achieve long-term growth from within.

To remain successful, companies must respond to the challenge of achieving continual internal or core growth. But how is this done, and why do some strategies work better than others? In The Search for Organic Growth, leading writers on business strategy and organization offer authoritative analysis and practical guidance on implementing a strategy for organic growth. All businesses go through life cycles, and momentum can be created in many ways from new products and market extensions, to add-ons and enhancements. The book also answers crucial questions such as how to keep customers happy during periods of change, how to foster an entrepreneurial environment and satisfy individual potentials, and how to turn the immense short-term revenue pressures of a push towards growth to your advantage. A lively resource for business school faculty, MBAs and executives, this book is ideal for any reader interested in connections between latest business thought and practice.