international journal of organizational innovationfinal issue vol 6 num 3 january 2014

8/18/2019 International Journal of Organizational InnovationFinal Issue Vol 6 Num 3 January 2014

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The International Journal of Organizational Innovation Vol 6 Num 3 January 2014 1

THE INTERNATIONAL JOURNAL of

ORGANIZATIONAL INNOVATION

VOLUME 6 NUMBER 3, JANUARY 2014

Table of Contents

3. Information Regarding The International Journal Of Organizational Innovation

4. The 2013 IJOI Board Of Editors

Page: Title: Author(s):

6. Human Resource Management: A Strategic Theoretical PerspectiveDyah Sawitri, Mahlia Muis

21. License Income Of Technology Commercialization: The Case Of U.S. UniversitiesWen-Ling Hsu, Yun Ken

31. Exploring The Relations Between Service Quality And Consumer Behaviors - ACase Study Of 85°C Bakery Café From Taiwan

Chao-Hua Li, Hsien-Bin Wang

42. Developing Research On Vehicle Tire Pressure Detection And Adjustment SystemShu-Lung Wang, Kaie-Chin Chung, Nai-Hao Yin

50. The Relationship Between Package Redesign And Purchase Intention

Ya-Fang Wu, Chao-Sen Wu, Cheng-Jong Lee, Li-Fen Tsai

63. Exploring The Servicing Effectiveness Of Social Media In Customers’ ElectronicWord Of Mouth (EWOM)

Szu-Yuan Sun, Li-Shan Chen

68. The Relationship Among Corporate Social Responsibility, Service Quality, CorporateImage And Purchase Intention

Chun-Chen Huang, Szu-Wei Yen, Cheng-Yi Liu


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85. Technology Evolution, Technology Diffusion, And Regional Development: The FlatPanel Display Industry In East Asia

Kaie-Chin Chung, Shu-Lung Wang*

96. The Effect Of Word-Of-Mouth, Knowledge, And Promotions On Purchase Intention

Of Medical CosmeticsYi-Chih Lee, Wei-Li Wu, Yang-Chu Lin, Chia-Ko Lee

106. The Relationship Among Brand Equity, Customer Satisfaction, And Brand ResonanceTo Repurchase Intention Of Cultural And Creative Industries In Taiwan

Chun-Chen Huang, Szu-Wei Yen, Cheng-Yi Liu, Te-Pei Chang

121. A Framework For A Technology-Organization-Environment Implementation ModelIn Taiwan’s Traditional Retail Supermarkets

Hsin-Pin Fu, Hsiang-Ting Su

130. A Study On The Correlation Between Furniture Product Knowledge And Consumers’Satisfaction By Fuzzy Linguistics

An Sheng Lee

144. Investigating Influences Of Sea-Land Circulation On Ozone Pollution In SouthernTaiwan By Coupling Cluster Analysis With Back - Trajectory Simulation

Kun-Ming Lin, Tai-Yi Yu, Len-Fu Walter Chang

153. Examining The Mechanisms Linking Behavioral Integrity And Affective Commit-ment: The Mediating Role Of Charismatic Leadership

Feng-Hua Yang, You-Shiun Tsai, Wei-Shun Liao

174. Leisure Behavior In Sports Training On Psychological Skill And RefereeingPerformance

Hsiang-Wei Chien , Yu-Lun Hsu, Yu-San Ting, Chun-Te Wu

190. The Influence Of Repetitive Advertising On Effect Of Communication: An EmpiricalStudy On Recycling

Tsung-Kuang E. Ma, Dong Jenn Yang, Hong Ngoc Truong

199. Innovation And Alliance Effects For Tourism Industry In Taiwan

Benjamin C. Parng, Mu-Ke Chen, Tsung-Ting Chung

210. A Study On Design Decision Making Resulted From The Form Features Of FurnitureProducts And The Aesthetic Evaluations Of Consumers Through Fuzzy Logic

An Sheng Lee


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Information Regarding:

The International Journal of Organizational Innovation (IJOI),The 2014 International Conference on Organizational Innovation, and

The International Association of Organizational Innovation (IAOI).

The International Journal of Organizational Innovation (ISSN 1943-1813) is an inter-

national, blind peer-reviewed journal, published quarterly. It may be viewed online for free.(There are no print versions of this journal; however, the journal .pdf file may be downloadedand printed.) It contains a wide variety of research, scholarship, educational and practitionerperspectives on organizational innovation-related themes and topics. It aims to provide aglobal perspective on organizational innovation of benefit to scholars, educators, students,practitioners, policy-makers and consultants. All past issues of the journal are available onthe journal website. Submissions are welcome from the members of IAOI and other associa-

tions & all other scholars and practitioners. Student papers are also welcome.

For information regarding submissions to the journal, go to the journal homepage:http://www.ijoi-online.org/ To Contact the IJOI Editor, email: [email protected]

Note: the format for this Journal has changed with the January, 2013 issue. The journal is

now published in a two-column format (instead of the single column format used in prior

issues). Please see the new Author Writing Guidelines on the Journal’s website, as well as

a sample article showing how they will appear in the new format.

The International Association of Organizational Innovation (IAOI)

IAOI is the publisher of this journal. It also holds an Annual Conference (See Below). Formore information on the International Association of Organizational Innovation, go to:http://www.iaoiusa.org

The International Conference on Organizational Innovation (ICOI)

The 2014 ICOI Conference will be held in Manila, Philippines at De La SalleUniversity, August 13-15, 2014. Complete details will be available soon.

The 2015 ICOI conference location is Jogia/Jogjakarta, Indonesia. Jogja is a famous touristdestination after Bali. For more information, please visit http://www.yogyes.com/ the Air-langga University will be the Host


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THE 2013 BOARD of EDITORS

Position: Name - Affiliation:

Editor-In-Chief Frederick L. Dembowski - International Association of Org. Innovation, USA

Associate Editor Chich-Jen Shieh - International Association of Org. Innovation, Taiwan R.O.C.Associate Editor Kenneth E Lane - Southeastern Louisiana University, USAAssociate Editor Sergey Ivanov - University of the District of Columbia, USA

Assistant Editor Ahmed M Kamaruddeen - Universiti Utara, MalaysiaAssistant Editor Alan E Simon - Concordia University Chicago, USAAssistant Editor Alex Maritz - Australian Grad. School of Entrepreneurship, AustraliaAssistant Editor Andries J Du Plessis - Unitec New ZealandAssistant Editor Anton de Waal - Swinburne University of Technology, AustraliaAssistant Editor Asma Salman - American University in the Emirates, DubaiAssistant Editor Barbara Cimatti - University of Bologna, ItalyAssistant Editor Ben Hendricks - Fontys University of Applied Sciences, the NetherlandsAssistant Editor Bettina Stevanovic, University of Western Sydney, AustraliaAssistant Editor Carl D Ekstrom - University of Nebraska at Omaha, USA

Assistant Editor Catherine C Chiang - Elon University, USAAssistant Editor Chandra Shekar - American University of Antigua College of Medicine, AntiguaAssistant Editor Chung-Hung Lin - I-Shou University, Taiwan, R.O.C.Assistant Editor Dafna Kariv, College of Management Academic Studies, IsraelAssistant Editor Davorin Kralj - Institute for Cretaive Management, Slovenia, Europe.Assistant Editor Denis Ushakov - Northern Caucasian Academy of Public ServicesAssistant Editor Donna S McCaw - Western Illinois University, USAAssistant Editor Eloiza Matos - Federal Technological University of Paraná - BrazilAssistant Editor Earl F Newby - Virginia State University, USAAssistant Editor Fernando Cardoso de Sousa - Portuguese Association of Creativity

and Innovation (APIC)), Portugal

Assistant Editor Fuhui Tong - Texas A&M University, USAAssistant Editor Gloria J Gresham - Stephen F. Austin State University, USAAssistant Editor Hassan B Basri - National University of Malaysia, MalaysiaAssistant Editor Heather Farmakis – Academic Partnerships, USAAssistant Editor Henry T Burley - La Trobe University, AustraliaAssistant Editor Hong-Cheng Liu - I-Shou University, Taiwan R.O.C.Assistant Editor Ilias Said - Universiti Sains Malaysia, MalaysiaAssistant Editor Ileana Monteiro - Portuguese Association of Creativity and Innovation, PortugalAssistant Editor Ismael Abu-Jarad - Universiti Utara MalaysiaAssistant Editor Janet Tareilo - Stephen F. Austin State University, USAAssistant Editor Jeffrey Oescher - Southeastern Louisiana University, USA

Assistant Editor Jian Zhang - Dr. J. Consulting, USA


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Assistant Editor John W Hunt - Southern Illinois University Edwardsville, USAAssistant Editor Julia N Ballenger - Texas A & M University - Commerce, USAAssistant Editor Julius Ndumbe Anyu - University of the District of Columbia, USAAssistant Editor Jun Dang - Xi'an International Studies University, P.R.C. ChinaAssistant Editor Jyh-Rong Chou - I-Shou University, Taiwan R.O.C.

Assistant Editor Kai-Ping Huang - University of Technology, Sydney, AustraliaAssistant Editor Ken Kelch - Alliant International University, USAAssistant Editor Ken Simpson - Unitec, New ZealandAssistant Editor Kerry Roberts - Stephen F. Austin State University, USAAssistant Editor Krishnaswamy Jayaraman, Universiti Sains MalaysiaAssistant Editor Madeline Berma - Universiti Kebangsaan, MalaysiaAssistant Editor Marius Potgieter - Tshwane University of Technology, South AfricaAssistant Editor Mei-Ju Chou - Shoufu University, Taiwan R.O.C.Assistant Editor Melissa Kaulbach - Sarasota UniversityAssistant Editor Michelle Williams - Stephen F. Austin State University, USAAssistant Editor Michael A Lane - University of Illinois Springfield, USA

Assistant Editor Muhammad Abduh - University of Bengkulu, IndonesiaAssistant Editor Nathan R Templeton - Stephen F. Austin State University, USAAssistant Editor Noor Mohammad - Faculty of Law, Universiti Kebangsaan, MalaysiaAssistant Editor Nor'Aini Yusof - Universiti Sains Malaysia, MalaysiaAssistant Editor Olivia Fachrunnisa, UNISSULA, IndonesiaAssistant Editor Opas Piansoongnern - Shinawatra University, ThailandAssistant Editor Pawan K Dhiman - EDP & Humanities, Government of IndiaAssistant Editor Ralph L Marshall - Eastern Illinois University, USAAssistant Editor Ray Thompson - Texas A&M University-Commerce. USAAssistant Editor Richard Cohen - International Journal of Organizational Innovation, USAAssistant Editor Ridong Hu - Huaqiao University, P.R. ChinaAssistant Editor Ronnie Coutinho - AUA School of Medicine, Antigua, West IndiesAssistant Editor Shang-Pao Yeh - I-Shou University, Taiwan R.O.C.Assistant Editor Shanshi Liu - South China University of Technology, Taiwan R.O.C.Assistant Editor Sheng-Wen Hsieh - Far East University, Taiwan R.O.C.Assistant Editor Siriwan Saksiriruthai - Suan Sunandha Rajabhat University, ThailandAssistant Editor Stacy Hendricks - Stephen F. Austin State University, USAAssistant Editor Thomas A Kersten - Roosevelt University, USAAssistant Editor Thomas C Valesky - Florida Gulf Coast University, USAAssistant Editor Tung-Yu Tsai - Taiwan Cooperative Bank, Taiwan R.O.C.Assistant Editor Wen-Hwa Cheng - National Formosa University, Taiwan R.O.C.

Assistant Editor Yung-Ho Chiu - Soochow University, Taiwan R.O.C.Assistant Editor Zach Kelehear - University of South


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HUMAN RESOURCE MANAGEMENT:A STRATEGIC THEORETICAL PERSPECTIVE

Dyah Sawitri

Faculty of Economics and Post-Graduate ProgramGajayana University of Malang

[email protected]

Mahlia Muis

Faculty of EconomicsHasanuddin University of Makassar

[email protected]

Abstract

The development of strategic roles requires a paradigm shift to the program of training anddevelopment, so that it could be obtained the much deeper consideration to the purposes andgoals of the development directions. The initial focus of the department of training and de-velopment was on the products. The staffs would develop the products as many as possible

and offer those products to the organizations. It came to our mind, a little bit, if a programwas needed or in reality, could be used. The objectives were to produce products as many aspossible for being used by a group or an individual as many as possible. The shift of the train-ing program was focused much more on the service aspect and it made the department oftraining and development experiencing much more progress. Here, the department of trainingand development emphasized that both products and services should comply with the form ofactual needs of the users. The concept of the training program was the clients’ involvement,and the service aspect to the customers became the most important thing. With various typesof well-identified customers, the staffs would focus much more on the efforts of assuring thatall customers would be very much pleased with the products and services provided for thecustomers.

Keywords: Human Resource, Strategic Theory, Training and Developing Trends.

Introduction

In recent decades, it has developed aninterest in the field of "Strategic Manage-ment" that resulted in the neglect of theresources owned by an organization. (Hu-tabarat and Huseini, 2006) Training and

development programs are closely linked

to the strategic directions of the organiza-tion. The types of programs and servicesprovided by the training and developmentfunction is more focused on customers andbe proactive because the types of programsand services are supporting the strategicgoals. The success rate of the program is

measured in the amount of outcomes or


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output that connect with other forms ofstrategic initiatives. The objectives of thenew program types suggest the measuresthat support the strategic objectives thatare directly or indirectly.

Strategic Role

Strategic management is a way lead-ing company in the main goals; that is, thedevelopment of corporate values, manage-rial capabilities, organizational responsi-bilities, and administrative systems that areconnecting the strategic and operationaldecision making at all levels of the hierar-chy, and through all business lines of busi-

ness and authority functions of the compa-ny.) Training and development functionsare balanced in the assumed some role indeveloping and supporting the strategytype of organization. In some organiza-tions, these functions only assume one ormore of the role forms, while at the world-scale training and development organiza-tions, the function develop the five formsof role to build a strong relationship withthe strategy aspect. (Jack J. Phillips, 1999)

1. Strategic Planning. The first im-portant role for training and developmentfunction is to develop its own strategicplanning. This effort will bring the strategyaspect to the department level with thetype of planning that must be closelylinked to the strategic planning of the or-ganization, which began with the missionstatement and contain specific types of

strategies that can be understood by mem-bers of staff for training and development,and can implement temporary while theytry to keep in touch with the strategic di-rection of the organization.

2. Strategy formulation. Training anddevelopment department, as an importantfunction within the organization, oftenhelp in developing the strategic planningfor the organization. In this role, the leader

of the training and development section

has a "deep engagement" in which thestrategy was developed and produced animportant input, which heightens the criti-cal issues, put forward the necessary con-siderations that needed, and offer the rec-

ommendations and solutions to establishthe direction. This is perhaps the most im-portant role of the program in relation tothe strategy.

3. Strategy Implementation. As dif-ferent parts of the organization's strategicplanning implementation, training and de-velopment functions often take part in theimplementation process with the specifictypes of programs, services, and process.

Almost every implementation process ofstrategy will require training programs andcare services, because the elements oflearning and application is essential to theachievement of strategic objectives.

4. Strategic Outcomes. Training anddevelopment programs operate strategical-ly when such programs are directing theimportant measures of business and opera-tions performances. When the currenttraining and development programs andservices are achieving the success, its pro-vide business results that usually linked tothe strategic objectives.

5. Strategy Training. The last role as-sumed by a number of training and devel-opment function is used to train the plan-ning and implementation processes strate-gically to the other parties in the organiza-

tion. Dynamic and complex organizationrequires an appropriate level of knowledgeand skills toward the strategic planningand implementation processes. Managers,team leaders, supervisors, and - in somecases - all employees must understand theprocesses, requirements, tasks, and outputsof the strategic planning. Through consult-ing services and training programs, thetraining and development department canbuild the right type of expertise.


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The operational framework can beused to develop a strategic role for the or-ganization of training and development.See Framework in Figure 1. describes thespecific questions about the type of strate-

gic human resources. The development ofstrategic role requires a paradigm shift onthe training and development programs sothat there is a more in-depth considerationto the objectives of the development direc-tion. As illustrated in Figure 2., the initialfocus of the training and development de-partment is on the product. Party staff de-

velop products as much as possible andoffer it to the organization. In a catalogformat, packs in a lot of patterns, trainingand development programs are sellingthese products in a similar process to the

sales program of items which are off-the-shelf in the supermarket. (Jack J. Phillips,1999) There is little thought, when theprograms were needed or virtually work-ing. The goal is to produce as much prod-uct as possible, and be used by groups andindividuals as possible.

Organizational Process Employees

Strategy /End Tar-

gets / Mis-

sion

Organization: Are or-ganizational strategyand budget support stra-tegic HR types?

Organization: Are theorganizational processeshave end goals regardingthe strategic human re-sources?

Organization: Are thegoals of employees arerelated to the need ofstrategic HR?

Department of Training and

Development: Is the P&Pstrategy supports the type ofstrategic HR?


Development: Are the pro-cesses of training and devel-opment programs have goalsthat can be measured toachieve strategic HR?


Development: Are the outputand standard forms of trainingand development programsrelated to strategic humanresource requirements?

Note: (Adapted from: Mc Clernon, Timothy R. dan Swanson, Richard A.. " Redefining HRD's Role in the Corporation: A Case Study on

Becoming a World-Class Business Partner," In Action Leading Organizational Change. Elwood F. Holton dan Jack J. Phillips (eds.), Alex-andria, Va.: American Society to Training and Development, 1997, p. 1-21).

Figure 1. Strategic Human Resource Development Performance Level ofTraining and Development Program

Source: Jack J Phillips, Ph.D., HRD Trends Worldwide, 1999.

Figure 2. Thinking Strategically

Shifting the training programs thatfocuses on the aspects of service makestraining and development department hasdeveloped. In this case, the training anddevelopment department stressed that theproducts and services must meet the actualneeds of the users. The concept of trainingprogram is the client parties’ involvement,and the customer service aspect becomesvery important. With various types of cus-

tomers are identified, the staff is focusedon ensuring that the customer was happywith the product and service that deliveredto them.

As evidence, the function of trainingand development is currently focused stra-tegically, which means that the presence ofconsiderations regarding the products and

Product Focused Service focusedStrategically Fo-

cused


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services that meet the needs of organiza-tional related to the strategic goals.

Thoughts lead to aspects of customersatisfaction levels which ensure that prod-

ucts and services are closely related to thetypes of strategies that are important in theorganization and that the results expected-ly achieved. This form of strategic think-ing helps ensure the training and develop-ment function provides a decent value forthe organization as well as being an im-portant business partner to the manage-ment team.

The Traditional Strategic Planning Model

Various models of strategic planningreflecting various stages, process, and

steps required to develop a strategic planand process for the organization. Themodel shown in Figure 3., from the stand-point of training and development func-tion, is considered as one of the most fruit-ful and practical model. (Jack J. Phillips,1999)


Figure 3. The Strategic Planning Process

Develop a vision. Important part in the ef-forts to develop a strategic direction of thedepartment of training and development isto develop the right vision that reflecting

the type of strategy and the other shifting

forms in the training and developmentfunction. Establish the mission / purpose.The next step of the model is to develop aspecific mission or purpose for the training

and development organization, regardless

Develop Vision

Establish Mission/ Purpose

Set Goals and Objectives

Scan the External Environment

Assess the Organization

Consider the Feasible Strategies

Select a Strategy

Evaluate the Strategy


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of whether the department is positionedwithin the main department, division, unit,subsidiary, or the company as a whole.The mission statement describes why theorganization is real there. The mission

statement is usually simple, sometimes asingle sentence, and serves as a reason fororganizations to maintain its continuity.Set the final goals and objectives. The nextlogical step in the strategic planning modelis to develop goals and objectives. Finalgoals are usually more common than ob-

jective and reflect the ideal descriptionabout where the organizational direction.Goals are usually more focused on specificthings, with the measures, time frame, and

sometimes even some form of responsibil-ity. Goals and objectives of training anddevelopment programs should reflect, tosome extent, the strategic goals and objec-tives for the units of organization serviced.Also, the goals and objectives of the pro-gram should support the strategic objec-tives of organization as a whole.

Observe the external environment . Thenext step is to observe the external envi-ronment for the important issues that willaffect the strategic direction of organiza-tion. For training purposes, this step couldinvolve efforts to examine the quality ofnew recruitments, resources for new em-ployees training programs, resources fordesigning, developing, and distributingtraining programs, market conditions thataffect the type- types of expertise andcompetence in the workplace, technology

department, and the department of law andauthority. For certain types of organiza-tions, the external environment will con-tain a variety of influencing factors thatcan provide major input into the strategicplanning process.

Assess the organization. In this step, thestrength and weaknesses of the organiza-tion will be specified. Weakness indicatesspecific areas where process improvement

should be done to enhance the effective-

ness and efficiency levels of education andtraining functions. Strength was also iden-tified, which is an important asset of thefunction. This step requires an objectivepoint of view to determine which issues

are actual strengths and weaknesses.

Take into account the types of strategies

are feasible. The next step is to considerthe full range of types of potential strate-gies to develop the types of strategic plan-ning. Feasibility is an important element,as well as the relationships forms on stra-tegic needs of the whole business unit andorganization. (Jack J. Phillips, 1999) Inthis step, all types of previously process,

from vision to mission to the goals andobjectives, were integrated to determinethe specific strategic types where appro-priate or suitable.

Choose the type of strategy. Strategies se-lected and implemented through schedules,assignments, and following specific re-sponsibilities. Strategic planning are trans-lated into the forms of operational plan-ning for the training and developmentfunction, while specific programs and ser-vices were developed and distributed. Theimplementation process involves an effortto providing coordination, allocating theresources, developing the policies, and im-plementing the practice, as the strategy isimplemented throughout the organization.

Evaluating strategies. The final step of themodel is to evaluate the degree of success

of the chosen strategy. This is a form ofperiodic view, which is sometimes carriedout annually. The objective of this step isto measure or estimate the level of successof the strategy and planning back whenneeded. Thus, the cycle continues, as theadjustments efforts were made and a newtype of strategy was developed.

The definition of HRM is the policiesand practices that someone needed to run

the "people" or human resource aspect


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from a position of management, includingrecruitment, screening, training, reward,and assessment. While HRM Strategic canbe defined as the combination of HRMwith Organizational Strategic Manage-

ment, or in other words, as the pattern ofhuman resource activities that planned toachieve organizational goals. From theabove definition, there are two importantthings that distinguish Strategic HRM andHRM, namely: (a) Vertically, StrategicHRM practices associated with strategicmanagement processes in an organization;and, (b) Horizontally, Strategic HRM em-phasis on the coordination and linkagesbetween various practices of HRM. In ad-

dition, there are six essential elements instrategic HRM approach (Mangkuprawira,2004) that is: (1) understanding the effectof external environmental; (2) understand-ing the dynamics influence and labourmarket competition; (3) long term focus;(4) focus on choice and decision making;(5) growth of all personnel; and, (6) integ-rity with corporate strategy.

The primary key idea of all strategicmanagement keys is to coordinate all cor-porate resources, including human re-sources and any components that contrib-ute to implement the strategy. If all func-tions are integrated, there will be no coun-ter-productive and each individual worktogether in accordance with a clear direc-tion synergistically. In other words, thereis a perfect coordination and the combina-tion use of managerial and operational

functions, where it will make the entirecompany more valuable than any othercompany.

Differences Between Strategic and

Traditional HRM

Basically, Strategic HRM approachinvolved in strategic planning, decision-

making and coordinating all HR for theentire employee. It is an approach to givefull authority for the head of human re-sources unit in the organization. StrategicHRM also see the HR function as an inte-

gral part of all corporate functions such asmarketing, production, finance, law and soon. Strategic HRM approach puts the dep-uty director of human resources as an inte-gral part of a team. Nowadays, severaltheories developed can be divided into twogroups, namely: (a) the theory of strategicHRM which encompass the Resource-based Theory, Behavior Perspective, Cy-bernetic Systems, and Transaction CostTheory/Agency; and, (b) theory of Non-

Strategic HRM which encompass theModel Dependence, and Institutionalism,can be shown in Table 1. (Mangkuprawira,2004)

Strategic Operations

How the training department to bemore strategic? Some form of action canbe done through training and developmentfunctions for more related to aspects ofstrategy. Some type of action shows a par-adigm shift for training staff, while otherscarry out the necessary actions that neededto develop the special kind of relationship.Ten special form of action are recom-mended. (See Table 2.)

Develop strategic planning. The trainingand development function should developits own strategic planning. The function

will have difficulty in obtaining the rela-tion to overall strategy of organization ifthe function does not have its own strate-gic planning. This condition is often thefirst step in the process. Develop a strate-gic plan that will not only ensure the kindof relationship, but also indicates the typeof competence in the strategic planningprocess.


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Table 1. Differences between Strategic and Traditional HRM

Dimensions Strategic HRM Traditional HRM

Planning and

Strategy Formu-lation

Involved in overall planning and linking

the HR functions with corporate strategy

Involved only in operational planning

Authority Has the function and authority status fortop personnel employees (e.g, deputy di-

rector of HR)

The status and authority for medium

employees (e.g, personnel director)

Scope Concoers with all management and em-

ployees Concoers primarily with employees

daily, operations, and clerical

Decision Mak-

ing Fully integrated with the organizational,

marketing, budget, legal and production

functions

Moserat toward the limited inetgration

with organizational functions

Coordination Coordinate all HR activities, such as re-cruitment, staffing, and fair employment

opportunities

Not all coordinate the HR functions

Source: Mangkuprawira, 2004.

Shift to the role of performance improve-

ment. The shifting trend from trainingfunction to performance improvementfunction is an important step in the devel-opment of strategic relationships. Manytypes of strategic objectives that focus onthe measurement of critical business per-formance, which can be improved throughtraining and development function.

Establishing cooperative relationships

with key managers/principal. Trend to de-velop forms of cooperation with the othermembers of managerial group is essentialin relation with the aspects of strategy. Thekey managers are developing and imple-

menting the major strategic objectives oforganization. Work closely with the man-agers to meet their needs as well as to havesupport, assistance, and direction fromthem which will help ensure that the train-ing function has been associated with theaspects of strategy.

Be focused on the customer. Because theaspects of relationship and satisfactionlevel to the customer are usually the stra

tegic issues, shifting the trend for trainingprograms to be closer with the customerwill help to guarantee the availability ofclose relationships with the aspects ofstrategy. When organizations operate in anenvironment that is mainly oriented to the

customer, training and development func-tion does not only have to work with inter-nal customers to meet their specific needs,but also it have to develop the types ofprograms, product, and services to be con-nected with the issues of relationshipforms with the customer.

Communicate regularly with key execu-

tives. Because of the chief executives setthe strategies, a flow of communicationwith them on a regular basis can ensurethat the types of services and training anddevelopment programs are targeted to as-sist in the achievement of strategic goals.Termination and alliances issues can bequickly adjusted when the top executivesbecome aware of them and when mecha-nisms are placed in adjustments efforts.

Measure the pulse of the organization.

Work climate should be monitored, and


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Table 2. The Concept of the Types of Trend Which Rank Based On Its Interests Properties

Interest-

Based

Ranks

Type of Trend

1 The elements of the cost of training and development programs monitored ac-curately to manage resources and demonstrate accountability

2 Efforts to measure the value of return on investment in training and develop-ment program began to develop in use

3 Evaluation processes measure the success of training and development pro-grams systematically

4 The process of needs assessment and analysis have obtained more suppressionof thought

5 The staff of training and development as well as the line management establishcooperation to achieve the end goals of a general nature

6 The training and development programs are linked to the strategic direction oforganization

7 The concept of “learning organization” has been used8 Implementation of training and development programs change rapidly9 The training process is shifted to the performance improvement process10 Development and training technology is experiencing a rapid development pro-

cess11 The responsibility for training and developments programs shared on a number

of groups12 More training and development programs are carried out to contractors outside

the company13 More training and development programs are designed for the global use14 Training and development functions are added to the ‘profit center’ concept15 The budget amount for training and development programs have increased16 The concept of “corporate universities” gains more recognition


the programs should be developed to im-prove the organization. Some strategic ob-

jectives rotate around the satisfactionlevel of employees, employee involvementlevel, and employee commitment tiers.The pleasant and productive work climateis essential and usually be the part of strat-egy. Training and development functionshould monitor important measures suchas job satisfaction, attitude, organizationalcommitment, and work climate, throughvarious feedback mechanisms to ensurethe climate is consistent with the manage-ment’s expectation level.

Establish programs with core competen-

cies types. Most organizations have devel-oped the types of core competencies need-ed to position the organization forfuture success rates. Some forms of strate-gic initiatives revolve around efforts todevelop the core competencies. A lot oftraining and development programs shouldbe directly linked to the types of the corecompetencies whenever possible.

Consider the results-based approach at all

levels. Elements of return on investment,business influence, behavior change, and

transformation in the workplace, are the


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important strategy categories. When or-ganizations focus on the achievement ofthe primary measures of outcome, it islikely to relate it with the strategic goalsare very high. Also, if the results of which

can be measured were reported to the ap-propriate target audience, it can help en-sure that the training and developmentfunctions are always involved wheneverstrategic issues are discussed.

Link the training and development func-

tions for all steps of the process. Figure 4.shows how the training and developmentfunction may relate to the types of strate-gies within each of the main steps of train-

ing and development cycle, from needs as-sessment level to evaluation level. At thelevel of assessment and needs analysis,strategic issues must be identified, includ-ing specific measures that should be raisedin such programs. The specific types ofprograms and services which can enhanceor develop these measures, are identifiedin the analysis process so that there is adirect relationship between the needs andproposed program.

Objectives that are developed to drivethe impact of business, application, andtransformation, are the general form ofstrategic and operational. Specific goalsprovide direction needed to ensure thatthese programs are on target and help ac-hieve the strategic objectives of organiza-tion. During the design process, each ofthese elements, modules, or activities,

must reflect the vision, values, philoso-phies, and beliefs that involved in theoverall strategic planning of organization.Also, issues such as the purchase vs. de-velop the programs may reflect the strate-gic goals of the organization with respectto the level of use of outsourcing effortsvs. developing the programs internally de-veloped. The distribution process reflectsimportant strategic issues such as the useof technology and performing the timely

distribution of training and developmentfunction. Managers are involved in the dis-tribution of issues when the programs im-plemented in the form of decentralizationin all areas and locations. Evaluation pro-

cess provides an opportunity to measurethe business influence on strategicmeasures and reports on the results ob-tained to the right target audience alongwith other forms of strategic success.Thus, each step in the training and devel-opment cycle is showing opportunities forrelationships on the aspects of strategy inorganization.

Future Outlook

This type of trend is likely to continuein the future, and it is seen as a need bymany stakeholders. This condition hasbeen developed over the years. Drivingfactors for this trend must be sustainableand may be strengthened in the future.Some authorities consider that this type oftrend is needed to maintain the viability oftraining and development function that op-erates correctly. Without any form of stra-tegic relations, training and developmentfunction can eliminate the nonessentialrole in the organization, perhaps throughthe outsourcing process by simply search-ing the processes of training and develop-ment which is essentially needed.

Achievement level of success withthis type of trend gives some importantadvantages. Linking aspects of the strategy

will be to build closer ties between thetraining and development function withsenior management team. This is one ofthe most important elements in the devel-opment of cooperation needed to convincesenior managers that the training programcan add value to the 'bottom line', whilethe strategic objectives were improvedthrough training and development pro-grams.


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PROCESS STEPS

RELATION ON ASPECTS OF STRATEGY

Needs Assessment and

Analysis

- Strategic business needs that identified- The programs / services that relate to needs

Objectives

- Developing the objectives of business-influence (strategic)- Developing the objectives of application / transformation-

al (strategic)

Design/Development

- Design reflects vision / values / philosophy- Development vs purchase reflects the strategic direction

Distribution

- Distribution reflects the strategic issues such as technolo-

gy, just-in-time delivery, and decentralization- Strategic partnership with management

Evaluation/Reports

- Measuring the impact of strategic business- Reporting the results along with other strategic issues


Figure 4. Linking Training and Development Function to Aspects of Strategy

Aspects of budget and funding are of-ten influenced by the degree to which

training and development programs relatedto the aspects of strategy or perceived tobe associated with the aspects of strategy.A clear form of relationships makes mucheasier to obtain the necessary amount ofbudget. No relationship will cause prob-lems in time of budgeting process. Also,strategic training and development pro-grams will ensure that funding for thetraining and development function has uti-lized appropriately. The conditions assure

that the training and development processwill add value in the most problematic are-as - the areas that are closely related to thefuture of organization.

Success with this process moves thetraining and development functions on theimportant and vital position in the organi-zation. While the training and develop-ment program has been upgraded to an

important strategic role, the company willsee it as a necessity to position the organi-

zation in the future. In summary, it wouldappear that this type of trend will be sus-

tained in the future as well as the staff oftraining and development section mustcontinue achieving forms of progress withthis important type of relationship.

Based on the theoretical perspectiveof the study were taken from the HRDTrends Worldwide by Phillips, (1999), thatthe research conducted is comprehensive,to strengthen the strategic theoretical per-spectives if training and development pro-

grams that also based on the form of realpractice of the individuals who lead thefunctions of training and developmentwithin major organizations. As drawn inFigure 5. (see end of article), these studiesinvolve several key elements.

1. The initial list of these types oftrends are developed based on the resultsof direct observation in organizations

through the work ofPerformance Re-

sources Organization (PRO) company, an


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international consulting firm, which main-ly focused on the development of results-based training and development process.In the forms of contact with all clients allover the world, some type of trend was

common for organizations faced in whichidentified and published initially as a formof internal documents in PRO.

2. The initial list that support the re-view of literature to determine the extentto which these trends emerged as some-thing common to face from one region orcountry to another region or country. Thisstudy attempts to produce an additionalnumber of new trends and to support the

adjustments efforts to the initial list.

3. The survey was conducted in thir-ty-five organizations that implement train-ing and development programs and aremembers of the International Federation ofTraining and Development Organizations(IFTDO). All industrialized and emergingcountries displayed in the survey process.This initial survey provides additional in-sight on the major issues facing by thefunctions within these countries.

4. A literature search efforts were in-tensively conducted to all major publica-tions, both domestic and international.This study attempts to show the issues,challenges and additional trends facing bythe organizations that implementing train-ing and development programs.

5. A survey carried out on the manag-ers of training and development depart-ments to determine the existence and na-ture of the interests of each type of trend.The sur-vey was conducted in twentystates on groups of people who have a par-ticular job position as the manager of train-ing and development department, managerof education and training department,manager of the learning department, andmanager of performance improvement de-

partment.

6. Although the elements of this major study provides the basis of the overalltrend of development process, the types oftrend has also been discussed in several

programs that include the workshop pro-cess for officials of training directors,which conducted outside the United Statesby the author.

7. Lists of these types of trends arealso obtaining the validation through thePRO partner when the firm continue towork with clients in all industrializedcountries as well as with several clientswho come from developing countries. This

is an effort to identify trends types of liter-ature, but also attempt to observe trendstypes within an organization or trends areillustrated by the internal staff training anddevelopment.

These types of trends emerging fromorganization to organization, from countryto country, from one culture to anotherculture. Author aims not to make any ef-fort to discuss the various differences ofculture and cultural issues that are uniqueto a particular organization or country.However, this paper focuses on the typesof trends that should be common to en-counter, important, and vital in every ma-

jor organization.

The Process of Training, Learning,Education, Performance

Improvement, Development, Etc.

When shown the types of trends inthis paper, importantly, many shape chang-es and progress rapidly in the scope oftraining and development. These changesinclude that focuses on traditional trainingfunction and use different terminology forthe label over the function. Although manyglobal organizations who still like to usethe words of “education and training” todemonstrate the process for increasing the

types of skills that relate to work assign-


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ments as well as for the preparation of theindividual for the types of jobs in the fu-ture, some other organizations like theterms “learning” and “learning solution” asthe organizations have been an important

part in the development of learning-oriented organizational. Still a number ofother organizations find barriers on ‘learn-ing process’ and prefer to focus on the‘performance’ element or ‘performanceimprovement’, where the overall scope ofthe training program has been expanded tobe a function to improve performance.Even a number of other organizations thatemphasize the development aspects of itsemployees and would prefer to use the

term “development” in this regard.

Although these differences are im-portant, but this condition is consistent, theterms of “training and development”, “ed-ucation and training”, “learning, and per-formance improvement”, will be used forinterchangeable to reflect the functionalitythoroughly. For a particular sentence orparagraph, this terminology is not meant tobe limiting or reflect a different emphasis.Combination will be used for, in reality, acombination contained in the organizationsas well as sometimes occurred in the sameorganization. The concept of the types oftrend which rank based on its interestsproperties can be shown in the followingTable 2.

Application of Theory

As a case for the strategy implemen-tation and training programs, we canexamine from Singapore Airlines andRhone-Poulenc Rorer.

Singapore Airlines. As a company that hasgreatest benefit with a flawless record forcustomer service process, Singapore Air-lines Company has been in operation forover fifty years and is currently servingnetwork airlines in the seventy-four cities

in forty-one countries. In its review, Travel

magazine stated Singapore Airlines hasbeen consistently rated as the best airlinesin the world. Also, the company has themost modern fleet anywhere in the world.Records of its reliability and level of

security is highly guarded, and its recordsof the exact time of departure is at the top.

Singapore Airlines spends approx-imately $ 5.600 per employee per year forthe training program, which is 12 percentof payroll - the largest budgetary commi-tment for training program of any com-pany in the world. By having as many as28,000 employees, the value of these in-vestments demonstrate outstanding com-

mitment to training and developmentprograms. Based on Singapore Airlines'managing director, training and devel-opment functions has become an importantlink in the form in meeting key strategicobjectives of the company. These targetsinclude services for customers, profit--ability, reliability, and security. Trainingprograms for cabin crew, flight operationstraining for executive, management devel-opment, commercial training, and compu-ter training are the main forms of influenceon these strategic goals. Not only to directkey strategic initiatives, the training pro-grams has helped build the reputation ofthe company's successful flight. SingaporeAirlines has gained a first-and second rankin the list of the companies most respectedin Asia since the list was published. Man-aging director attach this impressive notesto the employees and management of the

airline, and the training and developmentprograms have played an important role inthe efforts to develop and establish thelevels of competence in achievin thissuccess.

Rhone-Poulenc Rorer. In the past twentyyears ago, Rhone-Poulenc Rorer (RPR)has transformed itself from a Frenchcompany or companies crawl into a highlysuccessful global corporation with more

than 90,000 employees in more than 140


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countries. The key element in this amazingtransition process is the strategy of globalhuman resource development (HRD). Thecompany strongly emphasizes the the needto recruit managers on a global scale and

move these managers around the world.These international assignments strategiesprovide some benefits for the managers, aswell as the economic payoff values forRPR. For example:

1. The managers become more awareof geographic, industrial, and culturalaspects of the company.

2. There is a great integration over the

types of businesses, as well as ef-fortsto build the appropriate or proper kindof relationship.

3. Increased flow of technicalinformation and marketing.

An important part of the HR strategyis to provide guidance to prospective newmanagers. Mentor on the RPR in general isa senior manager at the central office has abrilliant reputation for technical expertise,is a good communicator, and willing tocarry out the counseling tasks. These newmanagers maintain the relationship withthe mentor or mentor on regular basis andundertake consultation with them on acareer path as well as issues regardingcareer. In actual, the mentor negotiatesassignment forms with other executives onbehalf of the manager. Essentially, the

mentor guides the career path of managerin the company.

The core for RPR is the truly globalscale of managers development process, asthe effort of RPR by recruiting more em-ployees and non-French managers toachieve the ultimate goal of "worldcommunity"’s development efforts - thepeople who think that the world is thecenter of corporate.

Conclusion

A paradigm shift for a closer link be-tween training and development functionsand aspects of strategy has been developed

over the years. For a number of leaders oftraining and development function, it is alogical application of a development pro-cess which is very familiar to the humanresources. If the top executives in the fieldof training and development has under-gone significant experiences within theoperational lines, the strategic planning isoften seen as a necessary and essentialprocess. As a result, the shift process runswith ease, and levels of advancement are

often more substantial and identifiable.

For other leaders, reluctance tochange significantly can emerge in a num-ber of different scope as follows.

First, a significant paradigm shiftmust occur for the training and develop-ment staff. The member of staff had toshift roles and change their thinking andapproach as they assess the needs, designs,and develops programs, distributes prod-ucts and services, as well as evaluate theresults.

Second, the staff member should de-velop a proper understanding of strategicplanning and how this understanding canhelp the organization. This comprehensionoften reduces reluctances and provide thetype of expertise needed to help organiza-

tions with strategic planning issues.

Third, the parts of training and devel-opment process may have to be changed sothat these programs are more closely com-bined with the results of the strategic out-put. Starting with level needs assessment,some steps may require the adjustments sothat the strategic relationships and initia-tives can be integrated.


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Fourth, the HR staff members willneed to form the relationships with majorclients across the entire organization. Formof this relationship is essential for pro-grams and services remain focused on ma-

jor goals and objectives in the organizationand to build the kind of support needed tomake these programs are more effectiveand efficient.

And finally, the staff members oftraining and development departmentshould be more business-minded. They

must develop a better understanding aboutthe business issues, operational consid-erations, and external issues facing by or-ganizations, particularly the strategic is-sues. This condition often requires more

financial and operations knowledge for theentire staff of training and developmentsection.

Prior to strengthen the relationshipbetween training and development func-tions and aspects of strategy, several keyquestions must be raised.

References

Charan, Ram & Wiligan, Geri, (2007),“Know-How: 8 Ketrampilan Yang

Menjadi Ciri Pemimpin Sukses”, Ja-karta, Penerbit PT. Gramedia PustakaUtama.

Dessler, Gary, (2008), ” Human Resource Management”, New Jersey, EleventhEdition, Pearson Education Interna-tional.

Dessler, Gary, (2006), ” Manajemen Sum-ber Daya Manusia”, Jakarta, EdisiKesepuluh, Alih Bahasa ParamitaRahayu, Penerbit PT. Indeks.

Elwood F. Holton dan Jack J. Phillips,(1997), “ In Action Leading Organi-

zational Change”, Alexandria, Va.:American Society fo Training and

Development

Hutabarat, Jemsly & Huseini, Martani,(2006), “ Manajemen StrategikKomtemporer: Operasionalisasi

Strategi”, Jakarta, Penerbit PT. ElexMedia Komputindo.

L. Manthis, Robert & H. Jackson, John,(2001), “ Manajemen Sumber Daya

Manusia” , Jakarta, Penerbit Salemba

Empat.

Mangkuprawira, (2004), “Manajemen Mu-tu Sumberdaya Manusia”, Jakarta,

Penerbit Salemba Empat.

Mosby, David & Weissman, Michael,(2007), “The Paradox of Excellent:Performa Yang Luar Biasa Justru

Akan Membunuh Bisnis Anda”, Ja-karta, Penerbit PT. Bhuana IlmuPopuler.

Pearch, Robinson, (2000), “Strategic Management: Formulation, Imple-

mentation, and Control”, Singapore,McGraw-Hill Hill Book Co..

Phillips, Jack J., (1999), “ HRD TrendsWorldwide: Shared Solution to Com-

pete in a Global Economy”, Texas,Gulf Publishing Company, Houston.

Wright, Patrick M., and McMahan, GaryC., (1992), “Theoritical Perspective

for Strategic Human Resource Man-agement”, Journal of Management ,Vol. 18, No. 2, 295-320.

Yukl, Gary, (2009), “Kepemimpinan da-lam Organisasi” , Jakarta, EdisiKelima, Alih Bahasa: Budi Su-priyanto, PT Indeks.


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The International Journal Of Organizational Innovation Vol 6 Num 3 January 2014 20

Source: Jack J Phillips, Ph.D., HRD rends Worldwide, 1999.

Figure 5. Research Basics on the Types of Trend

16 TYPES

OF TREND

Engage directly withmajor organizations

Literature search inthe research and

professional journals

Survey on the training anddevelopment departments

Literature search intensive-ly in the major publications,both domestic and interna-

tional

Validation through theclients

Held discussions with sen-ior officials of human re-

source development in theform of workshops

Survey on practition-ers


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LICENSE INCOME OF TECHNOLOGY COMMERCIALIZATION:THE CASE OF U.S. UNIVERSITIES

Wen-Ling Hsu*Chaoyang University of Technology, Taiwan, R.O.C.

*corresponding author: [email protected]

Yun KenNational Yunlin University of Science and Technology, Taiwan, R.O.C.

[email protected]

Abstract

After the Bayh-Dole Act launched in 1980, the activities of technology transfer between aca-demic and industries were dramatically boosted thereafter. What factors influence the per-formance of technology transfer were propose by some pervious researches, most of themthought researches expenditure, patents, and published articles had significant weight. Ac-cording to some case studies of famous journal pointed out patent had no contribution, thisstudy uses AUTM licensing survey to figure out the relationship between issued patents, pub-

lished articles, and technology commercialization. The result of the study shows that pub-lished articles do have effect, but patents issued do not make significant effect on technologycommercialization.

Keywords: technology transfer, license income, patent issued, invention disclosure, publishedarticles

Introduction

The status of technology transfer in Amer-

ican universities can be realized by

The Association of University TechnologyManagers (AUTM). The annual investiga-tion data of AUTM show that all Americanuniversities highly emphasize academicresearches. The research funds of all uni-versities in America were 13 billion USdollars in 1991, but it increased almostthree times within 10 years. The level offunds reached to 35 billion US dollars in2002, and there were more outstandingincrease in the following four years. The

research expenditure in 2006 even broke45 billion US dollars. Regarding thedoubts of different inputs of research fundsgenerating different performance of out-

come, AUTM also investigated severalindicative numbers of research results.Based on the issued patent numbers andpatent application numbers, the investiga-tion results suggested that the number ofapplication cases increased year by year,while the patent numbers of each universi-ty don’t grow at the same trend, and theresearch expenditure and license revenueof each universities don’t reduce.

Crepon et al. (1998) put forward thatthere was a positive correlation between


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the output of business patent and the inputof research expenditure. However, Ameri-can universities are non-profit organiza-tions, and they don’t need to be responsi-ble for shareholders. AUTM’s data in 2006

showed that license revenue for College ofWilliam & Mary and University of Mon-tana was zero, but their input of researchexpenditure was even higher than the onesof other universities, whose license reve-nue was not zero, but the two universities’input of research expenditure continuouslyincreased year by year, and there was noactual license revenue. It disclosed thatwhether there is an apparent correlationamong the input of universities’ research

expenditure, the research output, and thelicense revenue or not, it still needs a deepexploration.

On the basis of the motive and back-ground above, the purpose of the study isto treat the mode of license revenue oftechnology transfer in American universi-ties and to try to find out the mediatingfactors, which can raise the license reve-nue, as the preparation direction before thetechnology transfer. And then, there is areview of the affection of research inputand output on license revenue. In light ofthese concerns, this study has three pur-poses: (a) to treat the affection of resourceinput and output on license revenue oftechnology transfer; (b) to find the roles ofpublished articles and issued patent num-bers and invention disclosure numbers inthe process of technology transfer; and (c)

to find out the important factors, whichhave great affection on license revenue.

Literature Review

Technology Transfer

Mansfield (1975) deemed that tech-nology transfer is the technology used by acertain organization or country, and thetechnology is introduced to other coun-

tries, regions or organizations for furtherapplication. Zaleski and Wienert (1980)

thought that technology transfer is a pro-cess, in which, an organization or countrytransfers its new innovative products ortechnology tips to other organizations orcountries for use. Hameri (1996) consid-

ered that technology transfer is an activeand ambitious process to spread or obtaintechnology knowledge, dada or experienceby the procedure of authorization, externalinvestment, and purchase.

Research Input and Research Outputs

Adams and Griliches (1996) tookAmerican universities as research subjects,and studied the relationship among paper

numbers, cited paper numbers, researchexpenditure, and the numbers of scientistsand engineers. The research suggested thatthere are two main outputs, new scientistsand new concepts generated by academicresearches. The number of scientists ismore easily measured. However, new con-cepts are more abstract and difficult to bemeasured so that paper numbers and citedpaper numbers are the measurement indi-cators of new concepts. The research resultproves that the raise of research expendi-ture is helpful to generate more papernumbers, and the β value of cited papernumbers is higher than the one of papernumbers. This means the raise of researchexpenditure is with a positive affection onpaper quality.

Adams and Griliches (2000) furtherexplored related issues of research outputs

and paper numbers. The research expendi-ture was similarly treated as research in-put, and paper numbers and cited papernumbers were treated as research outputs.The phenomenon of decreasing returns toscale was found in the research output ofAmerican universities, and there was ahigher level of output in private universi-ties than in public universities. Neverthe-less, if all schools were analyzed, therewere still fixed returns to scale. Further-

more, data envelopment analysis was em-ployed by Geraint and Johnes (1993) to


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analyze the research efficiency of econom-ic departments of 36 universities in UKfrom 1984 to 1988. The results presentedthat if research expenditure is regarded asinput, it will improve the efficiency of de-

cision-making units, and this explains theaffection of research expenditure on re-search input.

In the research of R & D expendi-tures, invention outputs and patent num-bers, Pakes and Griliches (1980) ever ana-lyzed the data of 121 large-scale enterpris-es from 1968 to 1975. The outcomeshowed that there is an apparent relation-ship between research expenditure and pa-

tent numbers, so parent numbers can beused to measure the economic benefit ofresearch input. Acs and David (1987) veri-fied that patent numbers can be as indica-tors to measure the performance of re-search development. When Griliches(1991) collated American enterprises’ datafrom 1954 to 1987, he found that there wasa link between research expenditure andpatent numbers. Griliches (1994) furtherpointed out that when it’s not easy to getrelated data of R & D, abundant patentnumbers can be an indicator to measurethe invention input and output.

Patent Licensing and License Fees

The so-called patent license meanspatentees still possess the complete rightof patent, and only one or whole part ofthe execution of the patent is licensed to

others under specific conditions. The con-tent of license includes manufacture, sale,importation, usage or some of them, anddepends on different cases. Patentees stillown original rights, so patent license is tomake licensed persons stay in a legal posi-tion of using patent rights and avoid to becharged with patent infringement. Cho(1988) definition of technology license is abehavior that an enterprise sells its tech-nology or management skills to get re-

wards from the other party. Nevertheless,Millman (1983) defined technology li-

cense as a certain period, in which, oneparty transfers proprietary technology,such as patent, trademark, and variousmethods to the other party to obtain re-wards.

The right of license can be divided in-to exclusive license and non-exclusive li-cense. Exclusive license is usually limitedto the application of product or to the salesin certain areas or region. While enterpris-es get the technology license from schools,they still need to have a long-term input inR & D to commercialize the technology.Small or new enterprises have much high-er proportion of exclusive license than

larger ones. Theoretically, more businessesprefer non- exclusive license because it ismuch more competitive and allows inven-tion to have an extensive application. Ow-ing to this, many scholars and expertsquestion the appropriateness of exclusivelicense. Mowery et al. (2001) pointed outthat exclusive license of American univer-sities doesn’t comply with the fair spirit ofpublic investment, and if it can be put intopublic domains, it may generate more ben-efits.

The Establishment of Assumption and theDefinition of Variables

http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=%E8%AE%8A%E6%95%B8

Research Expenditure and Output

Of the Research

According to the above-mentioneddocument, we know that research expendi-ture usually been taken for one of the vari-able of research output. The total numberof dissertation announcement and numberof the published dissertation estimated forobjective evidence of the college researchoutput is an important standard to acquaintwith the performance of college academicresearch. The patent issued number is

also one of the research output indexes.Besides, not every research result will pre-


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sent by patent, so the times of inventiondisclosure could be supplanted the partwhich can’t expound of patent issuednumber. Therefore, this study makes somehypothesis below.

H1：The research expenditure has the

remarkable positive effect on the

research output.

H1a: The research expenditure has

the remarkable positive effect on

published articles.

H1b: The research expenditure has


the number of patent issued.

H1c: The research expenditure has


the number of invention disclo-

sures.

The Research Output and the

License Incomes

To translate the measured method ofenterprise management performance intothe measured method of technology trans-fer performance, university acts just likethe general enterprise. The university re-search output is similar to the product ofindustries. It takes research output as theinput of technology transfer and the li-cense incomes is the output of the technol-ogy transfer. Therefore, we can measure

the technology transfer performance whichcomes from the technology provider bymeasuring the financial index. Base on theabove-mentioned document, this studymakes some hypotheses below.

H2: The research output has the re-

markable positive effect for the

license incomes.

H2a：The result of dissertation an-

nouncement has the remarkable

positive effect on the license in-

comes.

H2b：The number of patent issuedhas the remarkable positive ef-

fect on the license incomes.

H2c：The number of invention dis-

closures has the remarkable

positive effect on the license in-

comes.

This study is about to discuss how the

research expenditure affect the license in-comes, but the research expenditure be-long to research input. Published articles,the number of patent issued and the num-ber of patent issued invention disclosure isthe research output. The research outputcan be license incomes by passing manyprocesses of technology transfer. So theresearch use the this three research outputwhich are published articles, the number ofpatent issued and the number of patent is-

sued invention disclosure for the mediatingvariable between research input and li-cense incomes. Therefore, this makessome hypothesis for the relation betweenmediating variable and license incomesbelow.

http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=%E9%97%9C%E4%BF%82http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=%E8%AE%8A%E6%95%B8

H3: The research expenditure through

mediating effect of research output

has the remarkable effect on li-

cense incomes.

Combining the above mentioned hypothet-ical ratiocination, the structure of thisstudy is shown on Figure 1.


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Figure 1. The Structure of Research

Research Method

The date come form three sources: thedate of research expenditure, patents issued,invention disclosure and License incomescome from AUTM licensing survey, the da-ta of research expenditure comes fromAUTM licensing survey of 2005, the data ofpublished articles, invention disclosure andlicense incomes come from AUTM licens-ing survey of 2006 and the data of publishedarticles come from ARWU’s investigationof 2006.

This study is about to discuss how theresearch expenditure affects the license in-comes which use the data of 2006;The sam-

ples based on the AUTM licensing surveysummary compare with top 500 universitieswhich must be investigated by ARWU. Be-cause of the huge variation of license in-comes among those universities, this studyuses the regression analysis after logging thelicense incomes.

This study finally put the simple data inorder that is the top 102 universities’ out-come of technology transfer. This study uses

simple regression and multiple regressionanalysis. H1 used simple regression and H2which has two more independent variablesuses multiple regression analysis.http://tw.dictionary.yahoo.com/search?ei=UTF-8&p=%E8%87%AA%E8%AE%8A%E6%95%B8

Examining the mediating effect of pub-lished articles, patents issued and invention

disclosure, Baron and Kenny (1986) broughtup the mediating effect method which con

firms the existence of the mediating effectform research output.

Regression Analysis

In terms of hypotheses testing, thisstudy takes the models of hypotheses to dothe regression analysis. The models of eachhypothesis are following.

Model 1: Doing the simple regressionanalysis of single independent variable to-ward three intervening variables (publishedarticles, patents issued, and invention dis-closures). Model 2: Doing simple regressionanalysis of three intervening variables to-ward single independent variable.

Model 1: The result of research input and

research output with regression analysis.

β-value of research expenditure towardpublished articles is 0.788, and after adjust-ing R2 is 0.616. β-value of research ex-penditure toward patents issued is 0.690,and after adjusting R2 is 0.471. β-value ofresearch expenditure toward invention dis-closures is 0.771, and after adjusting R2 is

0.591. The three patterns have positive cor-relation significantly.

According to the results above, the re-sults show the research expenditure towardthe three research outputs have quite bigpositive effects, and the explanatory powerof the three patterns is quietly high. It alsorepresents that the research expenditure isthe important variable of published articles,patents issued, and invention disclosures.

Hypothesis 3 was supported.


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Model 2: The result of research output and

license income with regression analysis.

β-value of published articles toward li-cense income is 0.627, and after adjusting

R2 is 0.386. β-value of patents issued to-ward license income is 0.453, and after ad-

justing R2 is 0.198. β-value of inventiondisclosures toward license incomes is 0.557,and after adjusting R2 is 0.304.

There are all positive effects toward li-cense income, and achieve the significantlevel. Also, the explanatory power is quitehigh. It represents the published articles,patents issued and invention disclosures are

the important variables of license income.Hypothesis 2 was supported.

Hypothesis 3 predicted a mediating ef-fect of research output between research ex-penditure and license incomes.

Step 1: Prove that significant relationshipbetween research expenditure and publishedarticles, patents issued invention disclo-sures. This step of this procedure was sub-

stantiated by the regression results shown inFigure 2.

Step 2: The direct effect of research ex-penditure and license incomes was exam-ined. The result shown in Figure 3.

Step 3: All the three research outputs wereentered solely to its direct effect on licenseincomes. Published articles, patents issuedand invention disclosures are significantly,

positively related to license incomes.

Figure 2 Results of research expenditure and research outputs

Figure 3. Results of research expenditure and license incomes

Figure 4. Results of research outputs and license incomes

Step 4: Both the research expenditure andall the three research outputs were enteredto evaluate the mediating effect. When re-

search expenditure and all of the interac-tion terms of research outputs were en-tered, the results showed just one of the


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interaction item (patents issued) of re-search output variables was not significant.The influence that Research expenditure toLicense incomes is drew by Published ar-ticles and Invention disclosures. It proves

Published article and Mediating effect ex-ist. However, Patents issued turns to be not

evident. That shows patents issued (β＝-

0.121, p＞0.05) is not simultaneously me-

diating variable among published articlesand invention disclosures. Therefore, Hy-pothesis 3 was partly supported.

Conclusion

The purpose of the study is to treatthe affection of research input and outputon loyalty fees of technology transfer andto further realize important factors, whichaffect license incomes, through the re-search output of published articles, issuedpatent number and invention disclosurenumber.

Relationship Between Research Input

and Output

Research expenditure is taken as themeasurement of research input. Researchexpenditure means the amount investedinto research by schools, and research out-

puts are measured by the results of pub-lished articles, issued patent number andinvention disclosure number. The outcomedemonstrates that research expenditure andthe scale of schools have positive relation-ship to the results of published articles,issued patent number and invention disclo-sure number. It suggests that the increaseof research expenditure can make the re-sults of published articles, issued patentnumber and invention disclosure number

go up. Expenditures are important inputsof production. If without considering effi-ciency, more inputs bring more outputs.Although the result in the study is same asthe one of previous scholars, the studyconfirms that the results of published arti-cles, issued patent number and inventiondisclosure number are significant researchoutputs.

Figure 5. The mediating effect result

Relationship Between Research Output and

License Incomes

After the demonstration of regressionanalysis, the above three research outputshave a positive relationship to license in-comes. It signified that the three researchoutputs also affect the license incomes. Thisconclusion is similar to the one of Crepon etal. (1998).

Published articles represent the re-search outcomes of schools, and researchoutcomes can be as a bargaining chip to ne-gotiate royalty fees in the process of tech-nology transfer to raise the amount of royal-ty. Patents are more specific subjects to belicensed. The more patent rights schoolshave, the more subjects they can license,and the probability of license incomes willbe higher. Invention disclosure is a way to

deal with potential licensed patents, butthere won’t be a necessary patent in the end.


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The source of royalty fees is not justfrom patents, but also from commercial se-crets or copyright transfer, and inventiondisclosure enhances the opportunities oftechnology or right to be licensed.

Besides, the analysis outcome of thepublished articles accounts for 40% ex-planatory power, invention disclosure num-ber 30%, and issued patent number 20%.The outcome has a gap with general percep-tion. Published articles were an indicator toevaluate academic achievement in other lit-eratures, and invention disclosure numberand license incomes were seldom discussed.Patent seems to be the most outstanding in-

fluencing factor to license incomes. Howev-er, according to the research result in thestudy, patent number is still apparently re-lated to license incomes though their ex-planatory power is weaker than other twovariables.

Mediating Variables With Effect on

License Incomes.

After the examination, published arti-cles and invention disclosure are really me-diating variables, but issued patent numberis not. That means only parts of the assump-tions are correct. Research expenditure andthe input of human resource of schools willproduce positive affection on license in-comes via published articles and inventiondisclosure number instead of via patentnumber. The outcome is surprising becauseit’s different from the concept of patents

generating revenues. In order to realize thereason, an extra examination of mediatingvariables is made in the study, and a regres-sion analysis is done based on the three var-iables and license incomes.

The outcome shows that the model has42% explanatory power. When the pub-lished articles and invention disclosurenumber are simultaneously considered, is-sued patent number won’t be that outstand-

ing. Even, there is a trend of negative rela-tion to issued patent number, and this im-plies that the affection of issued patentnumber on license incomes is very weak onthe basis of the three variables. The resultreverses the thought of patents creating in-come.

Nevertheless, the study is analyzed bythe sole model of taking patent number asmediating factor. Figure 6 is its extension of

hypothetical model. After the two modelsare testified by mediating effect, the resultequally proves issued patent number not tobe a mediating variable, and this makes therole of issued patent number have differentexplanation in the procedure of technologytransfer. In term of the result, it implies thatthere is still a long way to go by taking ad-vantage of issued patents to proceed withtechnology transfer or even to produce rev-enue. Proprietary of patent is not the guaran-tee of the increase of license incomes.

While other research studies exploredthis topic deeper, similar concepts like thisstudy are found, and the general perceptionof patent being a key in technology transferneeds to be reviewed. Patent may play asignificant role in the procedure of technol-ogy transfer. However, it could be a suffi-cient condition absolutely not a necessary

condition. Some similar researches werefound by Colyvas et al. (2002) after theyundertook a study to American universities.

Figure 6. Extension of hypothetical model


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Consequently, the concept of thestudy is that patent number is not the guar-antee of license incomes in the process oftechnology transfer. Revenues from li-censed patent are affected by the process

of technology transfer instead of the sim-ple concepts that more patents create morerevenues. For the reason, there should beother complementary measures for patent-based technology transfers to bring bene-fits, for instance, excellent technologytransfer personnel or the stimulation ofgovernment policy. Even though it’s gen-erally believed that academic researchesare still far away from the formation ofbusiness opportunity, the results in the

study reveal that more technology transferopportunities could be created by the ap-plication of research expenditure to aca-demic or technology research, and the in-creased effect of license incomes might behigher than general awareness. So, schoolscould then rethink about intellectual strat-egies for technology transfer in accordancewith the results.

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