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In this article, we apply the UN Guiding Principles on Business and Human Rights to the private equity (PE) business model. PE firms often adopt a controversial, ‘value extractive’, business model based on high debt and extreme cost-cutting to generate investor returns. PE firms own large numbers of companies, including in many rights-related sectors. The model is linked to increased human rights risks to workers, housing tenants, and in privatized health and social care. We map these risks and analyse the human rights responsibilities of PE firms. Our analysis has major implications for understandings of human rights responsibility. We argue that value extractive methods are the root cause of eventual harm to human rights, even though they may not harm rights directly. To respect human rights, PE firms must mitigate the risks of these value extractive methods. We define how human rights due diligence (HRDD) could achieve this and argue that given the extent of harm and the lack of a business case for adopting such a view of human rights responsibility, business strategy level HRDD should be a core component of forthcoming HRDD laws.

States hold international human rights obligations to protect rights-holders from infringements by third parties and to fulfil access to rights. States also increasingly rely on businesses to provide essential human rights resources, including for housing, food, and healthcare. How these obligations apply where States rely on businesses has not been adequately conceptualised, particularly regarding the scope of business infringements in this context, and how the obligation to fulfil relates to market regulation. The Committee on Economic, Social and Cultural Rights has not directly addressed these questions, but recent General Comments develop ambitious regulatory obligations in this area. However, their methodology is questionable, often collapsing the distinction between obligations to protect and to fulfil. This article reconstructs the obligations to provide distinct content under each. It delineates State duties to protect from profiteering and to fulfil human rights through market regulation. It concludes by arguing that this reconstruction may challenge central aspects of globalised capitalism based on the human rights harm inherent therein.

This article analyses the recent exchange of letters between two UN human rights mandate-holders and the Blackstone Group LP, a private equity firm with significant investments in the rental housin...

Corporate actions often adversely impact human rights in ways that are not easily justiciable. Such actions include the production and use of fossil fuels, contributing to climate change and its im...

The profitability of commodified housing is driving extreme levels of corporate investment. To boost profits investors are exploiting “undervalued” low-income housing, evicting vulnerable individuals, hoarding land and charging exploitative fees. This is causing severe harm to individuals’ right to housing across the globe, including, inter alia, rapidly increasing prices and debt, increasing evictions, homelessness, and increased recourse to substandard accommodation. The harm is endemic, but the human rights response has been tepid.\ud This paper argues that both state obligations and the content of the right to housing under the International Covenant on Economic, Social and Cultural Rights (ICESCR) can usefully address the problem. However, in communications with State Parties the Committee on Economic, Social and Cultural Rights (CESCR) addresses issues of commodification and affordability in vague terms that fail to generate meaningful obligations. The paper grounds the CESCR’s approach in theories of enforceability which argue that enforcement is more practicable when “clear violations” can be established. The CESCR offers clear statements of breach only when identifying explicitly wrongful practices, such as discriminatory laws. This approach, however, almost entirely occludes harm caused by the marketization of human rights. It skeletonizes the “protect” limb of state obligations, permits the long-term retrogression of affordability and enables the serious subsequent effects. The paper proposes that “clear violations” can be constructed from the results of, and laws constituting, harmful marketization. A three-stage process of identification of breach, standard-setting, and policy suggestions is recommended that can turn the long-term retrogression of access to housing into specific, measurable statements of violations and recommendations. This same approach is advocated for business responsibilities under the UN Guiding Principles on Business and Human Rights, with the content of these responsibilities also evaluated.

This chapter reviews the role of civil society and human rights defenders in holding corporations to account. Civil society plays numerous roles in corporate accountability. It is civil society that is often first to take heed of a situation, first on the ground, and first to expose the issue to the wider public. The mobilization of civil society therefore often foreshadows shifts in both legal and business practices. Civil society uses a wide variety of tactics, from engagement in multistakeholder regulation and intracorporate consultancy and collaboration, through to exposing wrongdoing and organizing protests. The chapter takes a broad understanding of the definition of civil society, allowing it to introduce a range of actors including, inter alia, benchmarking organizations, labour movements, public interest law groups and shareholder activists. Human rights defenders are viewed more narrowly to focus on those at the dangerous frontlines of human rights protection. Case studies of Pavel Sulyandziga in Russia and Berta Caceres in Honduras are used to demonstrate the evident risks from both state and private sector actors. The chapter also discusses some of the tactics business uses to weaken civil society participation, and concludes with a discussion of the rationales and possibilities for more positive engagement by businesses in protecting the protectors of human rights.

In this article, we identified processes associated with strengthening the alignment between information assurance, information systems and corporate strategies so that organizations could more effectively address legal and regulatory challenges. Our results are based on data gathered from 43 preliminary interviews and a subsequent Delphi exercise. The Delphi panel rated these processes in terms of desirability and feasibility. After three rounds a consensus of opinion was achieved. The results of the Delphi together with some practical implications are presented.

Small and medium-sized enterprises (SMEs) create a dynamic and successful European economy. Existing skill deficiencies in sales, management and administrative staff are adversely affecting competitiveness in almost a third of those small firms surveyed (Bolden, 2001, 2007). Additionally, attending face-to-face and classroom-based development courses is problematic for time-poor SME managers. Thanks to the development of new technologies online learning is becoming commonplace due to wireless and mobile devices, together with the Internet boom, are providing the infrastructure necessary to support the development of new learning forms. Collaborative learning, especially as represented by an action learning approach, would seem ideal for SME managers. But can collaborative learning be adopted as a blanket approach in the case of SME managers? Or should one first take into account the contextual influences on learning, networking and collaboration?

PurposeThe main aim of this paper is to present the results of a study examining managers' attitudes towards the deployment and use of information and communications technology (ICT) in their organisations. The study comes at a time when ICT is being recognised as a major enabler of innovation and new business models, which have the potential to have major impact on western economies and jobs.Design/methodology/approachA questionnaire was specially designed to collect data relating to three research questions. The questionnaire also included a number of open‐ended questions. A total of 181 managers from a wide range of industries across a number of countries participated in the electronic survey. The quantitative responses to the survey were analysed using SPSS. Exploratory factor analysis using Varimax rotation was used and ANOVA to compare responses by different groups.FindingsThe survey showed that many of the respondents appeared equipped to work “any place, any time”. However, it also highlighted the challenges managers face in working in a connected operation. Also, the data suggested that many managers were less than confident about their companies' policies and practices in relation to information management.Originality/valueA next step from this exploratory research could be the development of a model exploring the impact of ICT on management and organisational performance in terms of personal characteristics of the manager, the role performed, the context and the ICT provision. Also, further research could focus on examining in more detail differences between management levels.

PurposeInformation security is becoming increasingly more important as organisations are endangered by a variety of threats from both its internal and external environments. Many theorists now advocate that effective security policies should be created at senior management level. This is because executives are able to evaluate the organisation using a holistic approach as well as having the power to ensure that new systems and procedures are implemented in a timely manner. There is, however, a continuing lack of understanding regarding the strategic importance of managing information security. In addition, there is a gap in the literature on the relationship between directors and information security strategy. This paper attempts to close this gap by exploring how directors perceive their organisation's security and what factors influence their decisions on the development and implementation of information security strategy.Design/methodology/approachThe research is based on constructivist grounded theory. Forty‐three interviews were conducted at executive level in 29 organisations. These interviews were then coded and analysed in order to develop new theory on directors' perception of risk and its effect on the development and implementation of information security strategy.FindingsThe analysis shows that senior managers' engagement with information security is dependent on two key variables: the strategic importance of information systems to their organisation and their perception of risk. Additionally, this research found that these two variables are affected by both organisational contextual factors and the strategic and operational actions undertaken within the business. Furthermore, the results demonstrated that the two board variables also have an impact on the organisation's environment as well as its strategic and operational actions. This paper uses the data gathered from the interviews to develop a model of these factors. In addition, a perception grid is constructed which illustrates the potential concerns that can drive board engagement.Practical implicationsThe paper illustrates the advantages of using the perception grid to understand and develop current and future information security issues.Originality/valueThe paper investigates how organisational directors perceive information security and how this perception influences the development of their information security strategy.

Small and medium-sized enterprises (SMEs) are seen as vital to economic development. However, managers in these organizations generally have fewer opportunities for training and development than their counterparts in larger organizations. In this paper, the authors argue the need for development opportunities based around ‘virtual’ learning and develop a conceptual framework. The increasing penetration of broadband technologies offers the opportunity to create learning communities to engage SME managers with peers facing similar challenges. For a meaningful experience to be achieved in a virtual community, the role of the facilitator is established as important; however, an area largely overlooked in prior research into networked learning is that of the role of trust and how facilitators can generate it. In order to develop the framework for this paper, the authors review prior research into trust, learning, facilitation and virtual learning communities – the main aim being the identification of ...

PurposeThe paper seeks to investigate how the information assurance (IA) efforts of organisations should be aligned with their business strategy. From this analysis, a conceptual model of alignment is presented. This framework shows several organisational factors that can influence alignment.Design/methodology/approachA number of published works on alignment are discussed in order to develop a conceptual model of IA fit. In addition, Venkatraman's six perspectives of alignment are used as a framework to suggest future research in this area.FindingsThe paper presents a definition of information assurance and proposes various reasons why IA is a strategic issue and should be aligned with both IT and corporate strategy. From the literature, a conceptual model illustrating the variables that can influence alignment is presented.Research limitations/implicationsA clear conceptualisation of alignment is needed. Six potential research models and associated research questions are proposed.Practical implicationsThe paper concludes with a number of management and research implications. In looking at the implications for managers, it is argued that any alignment framework should include adequate metrics for checking the strategic fit on a continuous basis.Originality/valueThis paper is an initial attempt to fulfil an identified gap in the literature, namely the lack of research undertaken on IA and corporate strategy alignment. It offers practical help for management so that they can improve the fit between IA and business strategy. It also offers several avenues of potential future research using Venkatraman's six perspectives of fit.

Transfer of learning from management development pro- grammes has been described as the effective and continuing application back at work of the knowledge and skills gained on those programmes. It is a very important issue for orga- nizations today, given the large amounts of investment in these programmes and the small amounts of that investment that actually translates into an improved individual and organiza- tional performance. This paper describes the testing of the Hol- ton model of learning transfer and suggests amendments to the model where appropriate. A sample of participants on a man- agement development programme within the Irish health ser- vice completed the Learning Transfer System Inventory based on the Holton model. The data obtained were analysed using multiple regression and partial correlation techniques. Results indicate that the model does adequately represent the effects of its factors, although a slightly revised model is presented. Important relationships between factors are identified, and the central role of the learners' personal capacity for transfer (hitherto unreported in the literature) and their motivation to transfer in facilitating transfer is highlighted. In practical terms, the tested model can be used as a diagnostic tool by identifying individual, training design and work environment transfer issues in need of attention and by developing strate

PurposeThe purpose of this paper is to study the relationship between project success factors and actual project success. It reports on an investigation into those factors within the direct influence of project managers that can make a real difference to the outcome of project endeavours.Design/methodology/approachUsing principal components analysis (PCA) on 60 questions about actual project work performance collected from four culturally different regions (UK, France, Norway and China), nine distinctively different critical success factors were found. Similarly, using PCA on ten project success items, three distinctively different project success criteria were extracted.FindingsThe most important factors in improving managerial ability to deliver results in time and at cost were strong project commitment, early stakeholder influence, stakeholder endorsement of project plans and rich project communications. To secure project impact, strong project commitment and rich project communications were the main contributors. A well‐structured and formal project approach and well understood and accepted project purpose, implying high quality management, also scored high. Captured experience was best supported by a well‐structured and formal project approach and rich project communications.Practical implicationsAs the project approach increases as a means for implementing strategic goals, project managers should devote increasing energies into rich communication both within the project and towards the project environment.Originality/valueThe study is cross‐cultural. It shows that successful project management, regardless of cultural differences, still depends on “hard features” such as professional planning and cost control, but that “soft skills” such as rich communication and learning from experience are prerequisites for project management to achieve superior project success.

PurposeThis paper reports on the development of a workplace‐based e‐learning programme for small and medium enterprise (SME) managers in five European countries. The course is designed to address the specific needs of SME managers who, it has been noted, represent a significant proportion of the EU workforce but often experience difficulty in finding time or resources to undertake relevant training. The aim of this paper is to present the design principles developed to underpin the programme. These principles were developed specifically to address the need for greater pedagogic structure in the design of e‐learning courses.Design/methodology/approachThe course design was informed by a literature review of e‐learning and management learning and by a set of focus groups conducted to identify the specific concerns of SMEs with regard to accelerating their learning in the workplace. The course structure was further refined through trial workshops in all five partner countries.FindingsThe paper presents a pedagogic framework and a structured set of design features, both of which were built into the course as a result of the research undertaken. It also provides reflections on the efficacy of the design process that resulted in the formation of the design principles, and also the prospects for e‐learning programmes in supporting accelerated learning in the workplace.Practical implicationsThe design process and reflections may usefully be extracted to inform other cross‐national or SME‐focused e‐learning programmes.Originality/valueThe paper draws on theory and research data to demonstrate the importance of thorough research in e‐learning course development.

Security concerns are on the increase in all organizations worldwide and there is a growing number of calls urging senior managers and top executives to take greater interest in information security (Fourie, 2003). These calls are mainly based on the premise that the engagement of senior managers and directors with the information security responsibility is key to achieving good security (ISO, 2000; Thomson and von Solms, 2003). But are these calls being heard? Unfortunately, there is evidence that the issue is not reaching the top layers of organizations, or that it only does so at irregular intervals and on an adhoc basis (Ezingeard et al., 2004b), with the attention of senior managers for information security centered around incidents, either published in the press or internally identified.

The diversity and sometimes‐sporadic nature of research in the area of knowledge management (KM) points towards the need for a better understanding of the underlying framework of issues and potential research topics. This paper describes the search for a research agenda in this fast developing area. Important issues were identified through a general review of the KM literature followed by a survey of business practitioners, consultants and academics at a one‐day conference dedicated to the subject. The investigation was carried out in the context of a feasibility study for a proposed KM Centre at Henley Management College in the UK. The survey followed an interpretivist approach employing open‐ended questions that sought to establish important issues in KM and to examine the benefits that participants would seek from a such a forum of practitioners and academics. A conceptual framework of disciplines and key topics was developed from the literature review and applied to the issues identified in the survey. The results point towards three areas of significant interest, namely: (i) implementation issues, (ii) best practice, and (iii) measurement. Additionally, the nature of the fast evolving field of knowledge management points to the need for more interactive research that brings together the different players in the field into a tighter and faster learning cycle.

Some staggering figures can be found if one looks, for the numbers of individuals whoare working, but may not be receiving training. However, if we listen to some of the players in the ‘Learning’ market, we may hear that HRD is a very competitive area and that colleges, practitioners, consultants, and the Business Support Network are vying for position in satisfying the need, whilst complaining about the poor take up or response to developmental programmes by the most prolific area of the economy, the Small&Medium Sized Enterprise (SME). But should we really be surprised? In this article the author questions existing polciy/practice and presents a number of facts, with anecdotal evidence to bring to ‘the table’ for discussion some concerns which he believes deserve more research. The objectives are to establish the current position, promote a learning culture within SME's, and by better understanding of the SME by practitioners, create a climate for growth and the ability to tap into a major market for ed...

This chapter focuses on the collaborative use of computing resources to support decision making in industry. Through the use of middleware for desktop grid computing, the idle CPU cycles available on existing computing resources can be harvested and used for speeding-up the execution of applications that have “non-trivial” processing requirements. This chapter focuses on the desktop grid middleware BOINC and Condor, and discusses the integration of commercial simulation software together with free-to-download grid middleware so as to offer competitive advantage to organizations that opt for this technology. It is expected that the low-intervention integration approach presented in this chapter (meaning no changes to source code required) will appeal to both simulation practitioners (as simulations can be executed faster, which in turn would mean that more replications and optimization are possible in the same amount of time) and management (as it can potentially increase the return on investment on existing resources).

A number of recent high-profile organizational failures have been compounded by the inadequacy of the data, information, and intelligence available to decision makers at key moments. In several other cases, the interpretation and communication of information to key stakeholders later was seen to have been distorted, if not downright dishonest. Whilst executives are being required to pay more attention to aspects of information assurance(IA) and security, few understand how to ensure its proper management and how to develop an IA strategy.

Innovation is indisputably one of the most important strategic and operational levers available to managers for creating competitive advantage. Recent studies suggest that there remains a serious disconnect between what firms are hoping for, and what they, in fact, are reaping from their investments in innovation. Conventional approaches to performance measurement have as yet had little impact in the area of innovation management. The purpose of the research reported in this paper has been to address some of the more pertinent of the many questions raised by innovation practitioners and managers today concerning the measurement of innovation performance.

In this chapter the authors propose a framework based on team characteristics to assess the trust requirements in virtual team-based organisations. They start off by looking at what is meant by new forms of organisation and the drivers for new forms by reviewing relevant literature. They proceed to an examination of factors impacting on the effective working of the virtual organisation emphasising the role of virtual teams in such organisations. This leads to a discussion of the reliance on trust rather than on management through control systems and processes. It is then recognised that there is considerable diversity in the form and purpose of virtual teams. This leads to the development of a conceptual framework for assessing the need for trust for a team to be effective rather than managerial processes and control mechanisms. Finally, areas for further research and exploration are put forward.

Innovation is high on every managerpsilas agenda today. Innovation is seen as a key differentiator in markets that are increasingly hard-fought; it is destined to become ever more so as competitive pressures increase across all industry sectors. Innovation separates the winners from the also-rans. It manifests itself in a variety of forms. Innovation can drive new service and product offerings, but it can also be at the root of new business opportunity creation and the launch of entirely new business models.

Innovation presents many challenges to organisations, one of the trickiest being its measurement. However, the old saying `If you can't measure it you can't manage it' emphasises the importance of performance measurement to enable effective management. This seems to be essential in developing the innovation path, although many see it as a `chaotic' process. Previous research has produced a considerable number of potential metrics but only limited outcomes in relation to the challenges one has to face when trying to match the metrics framework to overall innovation strategies. Recent studies on practitioner experiences by the authors have resulted in five scales covering Future Focus, Market Impact, Capabilities and Image, Process, Sustainability and Overall Effectiveness. Dependent upon the firm's primary purpose in measurement, different scales were emphasised. This research has also identified dilemmas facing those confronted with designing and justifying a measurement approach. The research reported here extends the earlier research by canvassing `academic experts' in innovation management and comparing and contrasting their views to those of practitioners. The reported outcomes should be of particular interest to those involved in delivering educational programmes and training in innovation management.

High skills are today seen as being of vital importance to economies, industries, companies and individuals. The engineering industry is no exception and the graduate engineer has a key position in this regard. In the research reported in this paper, the authors use in-depth interviews with industry experts to investigate the provision of undergraduate engineering education in the UK. The current and future skill needs of industry are examined. A typology of future engineering roles and their requisite attributes is proposed. Implications for undergraduate engineering are also discussed.

ISO/IEC 17799 is a standard governing Information Security Management. Formalised in the 1990s, it has not seen the take up of accreditations that could be expected from looking at accreditation figures for other standards such as the ISO 9000 series. This paper examines why this may be the case by investigating what has driven the accreditation under the standard in 18 UK companies, representing a fifth of companies accredited at the time of the research. An initial literature review suggests that adoption could be driven by external pressures, or simply an objective of improving operational performance and competitive performance. It points to the need to investigate the influence of Regulators and Legislators, Competitors, Trading Partners and Internal Stakeholders on the decision to seek accreditation.

University-industry collaboration is seen as an important contributor to innovation as new thinking is transferred from seats of learning into practical products and services. In particular, this seems to be the case where firms seek access to knowledge of new technologies and technical problem solving. However, is it relevant in the case of business schools? The study reported in this paper is based on insights gained from membership of a long standing network between business schools and firms in the automotive industry supported by the EU's Leonardo project. The research reported in based on a detailed examination of practical cases of joint business school-firm activities. Based on this case analysis, a model is presented along with emerging critical success factors for sustainable joint activities across the different modes identified. Finally, areas for further research are highlighted.

International audience; Creating outstanding products is vital for a company's endurance in competitive markets. A mix of functionality, ergonomics, aesthetics, symbols and price aspects all play a role in making a product desirable.Some products carry a personal meaning for its user. Others communicate its user's identity or the company's brand image. This study concentrates on communicative and meaningful aspects in a product's design. It examines how the creation of a communicative design occurs during the new product development process. The present research has an exploratory nature. For the field research, the case study method was chosen and a guideline for semi-directed interviews developed. This interview guideline was used to analyse multiple product development projects in two distinct companies. In two projects, specific attention was given to communicative aspects in the product‘s design. These two projects are examined in this paper.In the two selected projects, the product development teams carefully studied the users' preferences for aesthetics and product messages. A user-centred approach was used in both development processes. The choice to purposely improve the communicative value of the product's design was on the one hand influenced by the limited possibilities to create other advantages, such as improving the product's functionality or reducing its cost price. A weakness in the competitor's design strategy allowed the successful improvement of the product's communication on the other hand.

We are living in a time of broad and sweeping change. Knowledge frontiers are moving forward more quickly than they ever have. It has been pointed out that in almost every major discipline up to 90 percent of relevant knowledge has appeared in the past 15 years. Terabytes of data (for comparison purposes, one terabyte approximates the entire scope of Shakespeare’s collected works) are added to the every discipline’s database every day (Quinn 2002: 96). This trend is set to continue. The situation challenges our very conception of strategic advantage and what firms need to do in order to achieve a position of competitive advantage.

It is widely recognized that successful entrepreneurs and intrapreneurs demonstrate their strength in networking and using their network to gain business advantage. In networking one of their key strengths is an ability to form relationships with people of diverse backgrounds and a wide range of capabilities. They then exhibit great skill in using these networks to help solve the challenging problems they face in developing sustainable businesses. But more than this, entrepreneurs and intrapreneurs often need to form strong relationships with companies in the form of alliances and partnerships in order to achieve their ends. Clusters, based on common interests such as a shared commercial sector, seem to offer a more formalized grouping than do networks, and they offer certain attractions to the innovative firm. Entrepreneurs exhibit skills, not only in identifying the need to engage other individuals and businesses in appropriate forums, but also in exploiting these relationships at the appropriate time. Within any innovation team there is the need for strong networking skills, and recognition of the need to spend time fostering, maintaining, and capitalizing on networks.

In this chapter we examine the nature of alliances in their various forms. There is no doubt that alliances have become important to all sizeable organizations. But they are also important to smaller and medium-sized companies (SMEs), as these firms offer the large organization access to entrepreneurship and exciting new technological developments, and the SME can in turn gain through access to the expertise which resides in the large firm. In the knowledge economy, one of the key reasons for alliancing is to access capabilities not available or readily accessible within the organization itself. This can compensate for the lack of capability within the organization; it can lead to greater leverage of existing capabilities, a greater degree of control over key technologies, and a spreading of risk in development. But learning is a key motivator for firms.

The ultimate test of the effectiveness of innovation is its success in the market place in giving the firm greater profits than the investment costs. So it seems logical that an understanding of what the market wants is a good starting point for the innovation process. This was recognized by Cooper who, writing as early as 1993, stated, “one should seek the customer input and feedback at every step of the way throughout the entire development phase as the product takes shape.” Rothwell et al (1974) had earlier put forward a similar viewpoint when they said, “User needs must be precisely determined and met and it is important that these needs are monitored throughout the course of the innovation since they rarely remain completely static.”

The latter part of the twentieth century saw a burgeoning interest in the measurement of organizational performance. “What gets measured gets done” is a well-worn saying used by many management gurus as they encourage the use of a wider range of different measures, and particularly the adoption of performance management systems. Frameworks have been developed and have gained wide acceptance: for example, a 2003 study by Bain & Company of the use of management tools by business reported that 62 percent of the respondents across the world had adopted the widely accepted balanced scorecard first proposed by Kaplan and Norton in the Harvard Business Review (1992).

Rapid change in the global competitive environment is continually challenging firms to manage their portfolio of capabilities for maximum impact. Managers are being challenged to exploit their current capabilities while nurturing the development of new ones in anticipation of emerging and future markets. The firm’s knowledge is its “key economic resource and the dominant—and perhaps even the only—source of competitive advantage” (Drucker 1999). The firm’s knowledge manifests itself in its set of strategic capabilities. The strategic management of these demands deliberate and focused effort on the part of managers; it is a task that cannot be left to chance.

Evolutional innovation, we argued in the last chapter, provides the firm with the most viable basis for exploiting its capabilities toward capturing competitive advantage through innovation. Evolutional innovation seeks to derive opportunity from disruption by enabling the firm to bring into strategic balance the right mix of institutional and revolutional innovation strategies. It ensures the proper organizational context for building the requisite capabilities that enable the firm to capture market opportunity ahead of its competition. For this, firms are increasingly depending on secondary organizational capabilities such as innovation partnering and strategic networking, which enable them to fully exploit their primary capabilities.

At any one time organizations will have many projects underway. Some will be scoped to have major strategic impact, but many will be localized and focused on operational improvement. Not all projects will be aimed at bringing about innovation. But all need to be managed either as individual projects or within portfolios.

Innovation is undoubtedly one of the most crucial strategic levers available to the firm. As firms are moving out of the difficult economic period brought on by the collapse of the dot.com bubble, innovation, it appears, is being “rediscovered.” Many firms are now poised to venture beyond measures that are focused purely on retrenchment and cost reduction to embrace innovation as the engine for driving their new business growth. Innovation, however, is intimately linked with the firm’s capabilities and ability to mobilize new knowledge through learning. The grouping of innovation, capabilities, and organizational learning is growing more important as business environments change more rapidly and the production of new knowledge accelerates as never before.

In this paper we adopt an intellectual capital framework to support research into the current state of the UK engineering industry. We describe the development of the framework and present a snapshot of the industry based on the views of leading industry practitioners and observers.

Strategic alliances that succeed in merging and integrating new knowledge streams do not just happen by chance. In fact, most attempts to do so fail. Competitive knowledge embedded in the strategic capabilities brought to the party by alliance partners is sticky. It is inextricably bound to the inherently nontradeable 'soft' assets of each of the partner organizations. 'Soft' assets include the values, culture, and the depositories of tacit knowledge in the form of hard-won experience of each of the respective partners. Due to their complex and tacit nature, these capabilities, in reality, cannot be 'acquired'. Successful alliances have shown, however, that knowledge streams can indeed be merged to form new strategic portfolios. Successful merging of strategic capabilities requires deliberate engineering. A number of critical factors come in to play. These must not be left to chance. In this paper, the authors identify and describe two of these: (1) complementarity of capabilities, and (2) fit of organizational culture and practices. A conceptual framework describing the role and interplay of these factors is developed. The paper uses the example of Syntheseas, the new joint venture between ABB and Schlumberger to illustrate the concepts developed.