Ecosystem model approach to assessing if Effective Enterprise Engagement Occurring at IADT via the...

I

National Strategy for Higher Education Is Effective Enterprise Engagement

Occurring at the Institute of Art, Design and Technology (IADT), Dun Laoghaire?

Eoin Killian Costello

Student Number: B00570977

2011

Dissertation submitted in partial fulfillment of the requirements

for the degree of Masters in Business Development and Innovation

Supervisor: Professor Audrey Gilmore

Department of Marketing, Entrepreneurship and Strategy

Ulster Business School

University of Ulster

II

Table of Contents

Table of contents........ II

List of Tables............ VI

List of Figures........... VII

Acknowledgements. VIII

Abbreviations........... IX

Declaration of Access to Contents.. X

Abstract..................... XI

Chapter Page

1.0 INTRODUCTION. 1

1.1 Introduction.................. 1

1.2 The Changing Role of Institutes of Higher Education in Ireland.. 5

1.3 Small and Medium Sized Enterprises the Innovation Interface with HEIs. 6

1.4 Rationale for the Research ............ 7

1.5 Aims and Objectives of the Research 7

8

1.7 Research Outcomes Outline. 9

1.8 Conclusion.............. 10

2.0 LITERATURE REVIEW ........... 11

2.1 Introduction.............. 11

2.2 Review of Foundation Literature ........ 12

2.2.1 The Irish Higher Education Sector..................... 12

2.2.2 The Changing Role of the Sector............... 13

2.2.3 Small & Medium Sized Enterprises............................................................................... 16

2.3 Review of Core Literature 18

2.3.1 What constitutes effective engagement at the innovation interface

between HEIs and Enterprise?.........................................................................................................

18

1.6 The Structure of the Research.....

III

2.3.2 Defining what is meant by Effective Enterprise Engagement.. 21

2.3.3 Obstacles to effective enterprise engagement............................................................... 24

2.4 Identification of Need for Empirical Research. 28

2.5 Identification of the Objectives of this Study..... 29

2.6 Conclusion.............. 30

3.0 METHODLOGY................. 32

3.1 Introduction............ 32

3.2 What is Research?............................................................................................

3.3 The Research Strategy - Justification for the Research Philosophy, Approach

and Method................................................................................................

33

3.3.1 Research Approach Deduction and Induction. 35

3.3.2 Research Methods 36

3.3.3 Research Strategies.. 36

3.3.4 Tine Horizon. 37

3.4 Research Procedures Employed in this Study....... 37

3.4.1 Data Collection Techniques. 38

3.4.2 Selection of Case Study Organisation.. 39

3.4.3 Selecting the Sample Populations at the Case Study Institute for

Interview..

40

3.4.4 Selecting Interview Respondents for this Study............................................................. 43

3.4.5 Research Technique Interview Strategy Adopted for the Research 45

3.4.6 Secondary Research Methods Employed in this Study 46

3.5 Research Analysis............. 47

3.5.1 Coding of Interview Transcripts... 47

3.6 Limitations ............................................................................ 49

3.6.1 Validity and Reliability of the Research.. 50

3.7 Conclusion........... 52

4.0 FINDINGS AND ANALYSIS.......... 53

4.1 Introduction.......... 53

IV

4.2 Analysis Explained. 53

4.3 Profile of the Respondents.......... 54

4.4 Findings and Analysis in respect of Research Question 1. 55

4.4.1 Coding Guide and Transcript Analysis for Research Question 1 56

4.4.2 Content Analysis. 56

4.4.2.1 Networking. 57

4.4.2.2 Growth Resources 59

4.4.2.3 Professional Collaborative Services.. 60

4.4.3 Analysis and Conclusion. 62

4.5 Findings and Analysis in respect of Research Question 2 65

4.5.1 Coding Guide and Transcript Analysis for Research Question 2... 65

4.5.2 Content Analysis 65

4.5.1.1 Misalignment 66

4.5.1.2 Culture Gap 68

4.5.1.3 Disconnect. 70

4.5.1.4 Collaborative Commercial Research 72

4.5.1.5 Competition or Restriction by Competitor . . 75

4.5.2 Analysis and Conclusion 75

4.6 Findings and Analysis in respect of Research Question 3.. 78

4.6.1 Coding Guide and Transcript Analysis for Research Question 3.. 78


4.6.2.1 Individual initiative.. 79

4.6.2.2 System. 80

4.6.2.3 Structure.. 82

4.6.3 Analysis and Conclusion 83

4.7 Findings and Analysis in respect of Research Question 4... 86

4.7.1 Coding Guide and Transcript Analysis for Research Question 4 86


4.7.2.1 Positively Disposed 87

4.7.2.2 Enabling Requirements. 88

4.7.2.3 Benefits Sought. 90

4.7.3 Analysis and Conclusion.. 91

4.8 Summary of Findings and Conclusion.. 94

V

4.0 CONCLUSION. 98

5.1 Introduction....... 98

5.1.1 Outline solution to research problem, aim & objectives.. 98

5.2 Conclusion 1 and Recommendations 99

5.2.1 Recommendations 100




5.4.1 Recommendations.. 103

5.5 Conclusion 4 and Recommendations. 104


5.6 Implications for Theory/Policy/Practice 105

5.7 Limitations and Future Study. 106

5.8 Conclusion.. 107

APPENDICES ................ 108

References........................ 108

Appendix 1 Definition of Terms. 118

Appendix 1 Interview Questions......... 120

Appendix 2 Interview invitation issued to respondents.. 121

Appendix 3 Sample coded interview transcript.. 123

Appendix 4 Letter of introduction from President of IADT.. 126

Appendix 5 Identifying sample intrinsically motivating enterprise engagements

for testing. 127

Appendix 6 Coding Guide and Transcript Analysis framework for Key Issue 1 131

Appendix 7 Coding Guide and Transcript Analysis framework for Key Issue 2 135

Appendix 8 Coding Guide and Transcript Analysis framework for Key Issue 3.. 138

Appendix 9 Coding Guide and Transcript Analysis framework for Key Issue 4.. 140

Appendix 10 The Strategic Approach to the Choices facing IADT....... 142

Appendix 11 Analysis of Income for IADT in 2010. 146

VI

List of Tables

Table Page

1. Profile of interview respondents .. 43

2. Current activity levels for Innovation Voucher activity at IADT..................................... 61

3. Analysis of Innovation Vouchers processed by Knowledge Providers in Ireland. 74

4. Sample Activities for enterprise in the IADT literature..................................................... 126

5. Research Question 1 coding analysis framework............................................................. 130

6. Research Question 1 content analysis............................................................................... 132







VII

List of Figures

Figure Page

1. The Expansion of the University Mission....................................................... 14

2. The revenue portfolio for UK universities..................................................... 15

3. The emerging new economics of Higher Education 19

4. Components of the Innovation & Knowledge Ecosystem Model 42

5. The process whereby IADT may achieve successful alignment of its

Specialist Industry Expertise specialisations................................................... 142

VIII

Acknowledgements

There are many people to whom I owe thanks for supporting me in a personal and

professional capacity during the completion of this dissertation:-

My supervisor Professor Audrey Gilmore for her helpful comments and advice. My course

director Dr. Adele Dunn who posed the challenge which ultimately provided me with the

subject for this dissertation. Gerard McFall at University of Ulster was a constant help with

literature.

The President at IADT, Dr. Annie Doona, for allowing me the opportunity to use the subject

of my dissertation to be of service to IADT. I am also very grateful to the Presidents office

assistants, Elizabeth Stunnell and Elaine Dominguez.

I am also grateful to Marian OSullivan, Muiris OConnor, Richard Thorn, Jim Devine and

Claire McBride for their help and advice.

The interview participants were extremely generous with their time and suggestions.

My partner Ania was a great help to me with the structure of my dissertation, I am deeply

grateful to her.

IX

Abbreviations

HETAC Higher Education and Training Awards Council

HEIs Higher Education Institutions

HEA Higher Education Authority

IADT Staff Member of Academic/Management staff sample population

IADT Institute of Art, Design and Technology, Dun Laoghaire

IC Incubation Centre called the Media Cube at IADT

Incubator Incubation Centre enterprise owners sample population

IoTs Institutes of Technology

IP Intellectual Property

K&EI Model Knowledge and Innovation Ecosystem Model

KPIs Key Performance Indicators

NFQ National Framework of Qualifications

SMEs Small and Medium Enterprises

X

Declaration on Access to Contents

DECLARATION

-------------------------

I hereby declare that, with effect from the date on which this dissertation is deposited in the

library or other department / school / faculty of the University of Ulster, I permit the

dissertation to be copied in whole or in parts without reference to myself, in the

understanding that such authority applies to single copies made for studying purposes and

which are not published. An additional condition is that acknowledgement is credited to the

actual source.

This restriction does not apply to the copying or publication of the title, abstract or

introduction to this dissertation. It is a condition that anyone who consults this dissertation

must recognize that the copyright rests with the author and no quotation from the dissertation

or information derived from it may be published unless the source is properly acknowledged.

Signed .............................................................................

Date ................................................................................

XI

Abstract

Irish Higher Education Institutions (HEIs) are under pressure to transform their activities,

structures and management systems in response to an increasing range of contemporary

challenges. Small and Medium sized Enterprises (SMEs) are the dominant business form in

Ireland and are key engines of growth in modern economies, research shows them to be a

significant source of applied innovation and job creation. However Ireland remains an

Innovation Follower in European league tables partially because insufficient numbers of

Irish SMEs engage in innovation and the professional training and development necessary for

its exploitation. The Irish government sees the innovative, export led growth of indigenous

SMEs as essential to building the recovery of the national finances and employment.

The recently published National Strategy for Higher Education to 2030 (commonly known as

the Hunt Report) states that HEIs have a key role to play as innovation enablers for

indigenous SMEs. It requires that HEIs reduce their dependence on the exchequer by

prioritising the mission of engaging with the innovation needs of Irelands SMEs in a manner

that creates diversified revenue streams for HEIs. However the Hunt Report has been

criticised for a lack of empirical guidance on the quantum of such engagement or how it

should be effected operationally.

In order to address this gap an exploratory case study is conducted at IADT. IADT is in an

ideal position to respond flexibly to the Hunt enterprise engagement objective due to it being

one of Irelands newest, smallest Institutes of Technology (IoT) with a recently appointed

President from outside the Irish IoT sector, the nature of the disciplines it teaches in the key

growth area of digital media and the institutes stated pioneering culture.

In order to provide the research instrument for the study effective enterprise engagement is

defined as genuine collaborative activities occurring within an effective network which yield

symbiotic outcomes to the participants.

The primary research comprised twelve in-depth semi-structured interviews with key

informants and decision makers drawn from IADTs enterprise ecosystem over a period of

three months in the summer of 2011. The primary research was supplement by two

unstructured interviews with education policy experts and relevant secondary research. The

research is limited to one academic institution, a focus on one industry sector with

respondents drawn from a limited geographical area. In order to ensure the validity of

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conclusions the findings are triangulated throughout with evidence from the literature and

informed sources.

The research finds that effective enterprise engagement is not currently occurring at IADT.

Furthermore the research indicates that IADT is failing in its mission to meet the

collaborative innovation, training and professional development needs of SMEs. A recurring

theme throughout the data is that the most significant obstacle to effective enterprise

engagement is the internal culture at IADT. From the data enterprise engagement appears to

be a relatively low priority internally at IADT despite public announcements to the contrary.

Despite a number of cases of individual initiative the data suggests that IADT is

predominantly reactive in respect of enterprise engagement. This results in valuable resources

(such as the large population of IADT alumni in key positions in digital media enterprises,

the enterprises located in the on-campus incubation centre and the state funded Virtual Lab

facility) being neglected as a source of revenue and growth for IADT, its staff and students.

This is occurring in spite of the fact that very little progress has been made to date on the

institutes declared target of raising twenty percent of IADT revenue from non-exchequer

sources by 2013.

The findings of this study suggest serious adverse consequences for the ability of IADT to

generate non-exchequer revenue streams in the absence of deep rooted internal culture

change. In this context effective enterprise engagement may be deemed to be a key priority

for the new President and management of IADT. The study identifies that many assets and

supports are available to the management team in commencing this process.

In terms of future research it is suggested that this exploratory research may aid in providing

a conceptual framework working hypothesis for further research in respect of the Hunt

enterprise engagement objectives.

1

CHAPTER 1 INTRODUCTION

1.1 Introduction

Chapter 1 of this research study commences with an examination of the changing role of

HEIs, particularly in respect of becoming innovation enablers for Small and Medium sized

Enterprises. The pressures and challenges shaping structural change in the HEI sector

towards an enterprise orientation (with a particular focus on the Hunt Report (Hunt 2011)) are

examined with a view to framing the research question. Critics of the Hunt Report state that

is not clear on the means which be pursued in achieving the multi-faceted objectives it

contains particularly those in respect of the engagement objectives. This provides the

rationale for this research study. The aims and objectives of the research are then addressed.

The structure of the research is outlined, namely an exploratory case study at the Institute of

Art, Design and Technology (IADT), Dun Laoghaire. Primary data is collected during the

summer of 2011 via twelve semi-structured interviews with opinion leaders, decision makers

and key informants drawn from the enterprise ecosystem of IADT. The primary research was

supplement by two unstructured interviews with education policy experts and relevant

secondary research. The research outcomes are then presented in summary form.

The objective of Chapter 2 is to serve as a foundation for this dissertation. In order to support

the aim of this study the method of Gibbs (2008) is adopted by using the literature review to

examine themes, trends and previous research in order to provide a framework and structure

for an analysis of the data collected to answer the research question.

The review of foundation literature establishes that HEIs are undergoing a period of change

due to policy, technical, competitive and economic challenges. On the other side of the

innovation interface SMEs are the most common form of business unit in the European

Union but, due to resources issues, suffer from an inability to engage in innovation. National

policy identifies that HEIs are well positioned to address this failure and seeks to require that

HEIs do so. The conclusion of the review of core literature examines the aspiration of the

National Strategy for Higher Education in respect of enterprise engagement.

However such engagement must be purposive and Hunts desired purpose is that enterprise

engagement creates diversified funding course for HEIs while meeting the innovation,

training and professional development needs of SMEs. Such effective behaviour has the

potential to create symbiotic engagements. However critics of the Hunt Report state it lacks

2

specific indicators of how any of its recommendations might be implemented nor is it clear

on the means to be pursued in achieving the multi-faceted objectives it contains particularly

in respect of enterprise engagement.

This provides the research question for this study. By seeking to measure effective enterprise

engagement at IADT this study attempts to provide a conceptual working hypothesis

(Shields and Tajalli 2006) for future work in respect of operationalising Hunts enterprise

engagement objective. Using the synthesis developed in the literature review the research

instruments for the progressive test of effective enterprise engagement are:

1. Does an effective network exist: This is characterised by regular and intense

interaction as opposed to one off transactional engagements. The goal of this test is to

establish if the relationship is embedded within the enterprise activities of the

participants.

2. Is actual collaboration taking place within the effective network? This is

characterised by equal intensity of engagement across all categories of engagement.

The goal of this test is to establish whether any embeddedness identified is broad

enough to constitute genuine engagement.

3. Is symbiotic engagement evident in the actual collaborations? The goal of this test

is to establish whether collaborative innovation, training and professional

development is occurring in a manner that creates equal revenue and benefits to all

parties. The purpose of this test is to identify conditions for increases of transivity and

homophilly creating the conditions for growing the effective network. This in turn

provides the potential for a virtuous circle developing, the greater the effective

network the greater the opportunities for creating actual collaboration.

Therefore for the purposes of this study effective enterprise engagement is defined as

genuinely collaborative activities within an effective network which yield symbiotic

outcomes to the participants. Chapter 2 identifies obstacles to such effective enterprise

engagement which include Culture Gap, Misalignment and Disconnect. Instruments for

mitigating the effect of obstacles in biological and business ecosystems are systems and

structures which facilitate the key processes. The Hunt report makes a similar statement that

outward-facing systems and structures should be embedded into institutional activity to

underpin engagement.

3

In conclusion of the summary of Chapter 2 the research question is justified on the basis of

the literature and a series of instruments are identified to help operationalise the aims and

objectives of this research.

Chapter 3 describes and justifies the research methodology used in the study.This study

adopts the interpretivist philosophy on the basis that the research question seeks to gain an

understanding of certain dynamic human processes at the case study institution through

capturing feelings and personal opinions of people in respect of the subject being examined.

The research approach employed in this research is inductive due to the fact that the concepts

or variables to be measured in the research are not currently sufficiently defined to be

expressed in a testable hypothesis and measured quantitatively.

Following from the choice of the inductive research approach this study seeks to collect

qualitative data in order to seek to answer the research question. Qualitative data is

appropriate to this research study because exploratory research often relies on qualitative

approaches such as in-depth interviews, focus groups, projective methods, case studies or

pilot studies in addition to secondary research. Finally the case study research strategy is

chosen due to the nature of the research question and the fact that exploratory studies are

generally better served by single cases.

In respect of the research procedure the primary technique of semi-structured interviews are

justified in order to find out what is happening and to seek new insights Robson (2002

p59). The selection of case study organisation, sample populations and sample participants

from the IADT enterprise ecosystem are justified. The secondary methods are briefly outlined

and justified.

Chapter 4 presents the findings and analysis of this study. The key findings are presented

under each of the objectives and subsequently linked to the relevant literature in order to

triangulate the findings and contrast results.

The overall finding of this research is that effective enterprise engagement is not occurring

at IADT. Furthermore the research indicates that IADT is failing in its mission to meet the

collaborative innovation, training and professional development needs of SMEs (minimal

evidence is found in the data of satisfactory interactions in these categories of engagement

amongst the respondents).

4

This finding has serious adverse consequences for the ability of IADT to generate non-

exchequer revenue streams and needs to be addressed as a matter of urgency. The finding is

corroborated by the fact that in the period to December 2010 non-exchequer income

accounted for 1.5% of IADTs 23million income as opposed to an internal strategic target

of twenty percent by 2013.

The purpose of Chapter 5 is to present a further discussion of the findings presented in

Chapter 4 and to provide a set of recommendations to IADT and relevant policy making

bodies based on the findings of this study. Implications for the practice of enterprise

engagement and for future research in this domain are presented. Lastly a brief conclusion of

the study is presented.

The next section will commence the overview of the justification and rationale for the

research question.

5

1.2 The Changing Role of Higher Education Institutes in Ireland

The key purpose of economic development is to support individual wellbeing, to promote

equity in society and to enable national government to deliver on the aspirations of its

citizens. As disseminators and creators of knowledge Irelands higher education institutions

(HEIs) play a key role in the economic development of the country. Irelands economy is

highly dependent on its ability to convert knowledge and expertise into products, processes

and services for export. The value of Irish exports reached 161 billion in 2010, the highest

annual figure ever recorded (Irish Exporters Association 2011) and constituted approximately

eighty per cent of gross domestic product (being the market value of all final goods and

services produced in a country in a given period). In recognition of the key role HEIs play in

the modern, knowledge-based economy a number of recent government stimulus

programmes have focused on leveraging the HEI sector as provisioning agents (the

Springboard Programme for example).

Irish tax-payers provide the bulk of the funding to the higher education sector in Ireland via

state funding. As a result of current economic difficulties state funding bodies are seeking

increased accountability and alignment of IoT strategies with national priorities and

objectives (Government Publications Office 2007). Marginson (2008) finds that many HEIs

internationally are trending towards more corporate-style forms of organisation. The

characteristics of this trend are increased executive steering at institutional level, greater

administrative and policy autonomy and higher levels of income raising at institutional level.

This is coupled with systems which are based on information and communications which

ensure greater transparency, performance measurement and the accountability of HEIs to

national agencies.

However in Ireland existing models of HEI organisation in respect of research outputs and

enterprise engagement are not suitable to the task national government wishes the sector to

fulfil. In terms of addressing this putative disconnect, between national policy objectives and

the HEI sector, the National Strategy for Higher Education to 2030 was published in January

2011. This report was commissioned by the Irish Government and seeks to create the

framework and conditions for a re-structuring of Irish higher education. The expert group

report was chaired by economist Dr Colin Hunt and as a result the National Strategy is

commonly referred to as the Hunt Report.

6

The objective of the restructuring proposed in the Hunt Report is to cater for the broad social

and cultural requirements of Ireland in the next twenty years. The scale of the reports

ambitions for the breadth and quality of Irish higher education over the coming decades

demands more coherence, symbiosis and considerable improvements in the operational

efficiency throughout the organisation and financing of Irelands HEI system.

One of the key finding of the report is that the Irish HEI sector requires a dramatic increase in

funding to enable it to deal with predicted record levels of student demand and to enable it to

play a pivotal role in the economic recovery of Ireland. The report proposes that the source of

this funding be new student contribution fees and the creation of revenue streams from the

provision of collaborative innovation, training and professional development services to

enterprise, particularly Small and Medium Enterprises (SMEs). The report formulates a

number of processes that it wishes to see underpin HEIs new ways of working particularly in

respect of engagement with SMEs across the innovation interface (Lanciano-Morandat et al

2006).

1.3 Small and Medium Sized Enterprises the Innovation Interface with HEIs

SMEs are the dominant form of business organisation in Ireland and the European Union.

However they exhibit low productivity and little design, process or organisational innovation

or use of Information & Communication Technologies (EU Cordis 2003). Irelands Report of

the Innovation Taskforce (2010) states that the education system is pivotal in making

innovation happen and should be a key facilitator and enabler of SME innovation. While

HEIs have many functions, missions and commitments in the current recessionary

environment many expect them to play a key role in helping return the national economy to a

growth orientation.

There are ample models in HEI sectors internationally for the systems and structures which

underpin effective engagement across this interface. According to The Expert Group on

Future Skills Needs (2006) symbiotic enterprise engagement is common in the HEIs in the

United States. Industry linkages in the US colleges in terms of course design/delivery,

structured guest lecturer programmes, software company testing relationships with colleges

and their students, and extensive joint industry research programmes are well developed. The

structured fostering of informal industry linkages in the US takes place through standing

mechanisms such as Programme Boards and Presidents Panels.

7

1.4 Rationale for the Research

The emergence of the impetus to become enterprising HEIs and increase engagement with

enterprise is relatively new in Ireland (as is the requirement to earn revenue from such

engagement). Nevertheless a reforming Irish Minister for Education expects HEIs to achieve

transformation on the broad criteria identified in the Hunt Report in a short time scale.

However the Hunt Report has been the subject of a number of criticisms since its publication.

Begley (2011) states, inter alia, that the report lacks strategic thinking and is not clear on the

exact means which are to be pursued in achieving the engagement objectives. This criticism

is echoed by The Irish Federation of University Teachers (IFUT 2011, p.1) who express the

view that the report is singularly lacking any specific indicators of how any of its

recommendations might be implemented".

Therefore while internationally many HEIs are undergoing transformation towards the

enterprise model of operation, there is no guidance for the operational implementation of the

Hunt Report enterprise engagement objectives contained in the report. Based on a review of

the current Irish literature there appears to be an absence of research addressing this question.

In light of the current policy and economic environment the researcher believes that the

research question which underpins this study is opportune.

1.5 Aims and Objectives of the Research

In order to address the gap identified in current literature an exploratory case study at a

sample IoT is proposed. Therefore the aim of this research is to use an exploratory case study

to evaluate whether effective enterprise engagement is occurring at IADT where effective

enterprise engagement is defined as actual collaborative activities occurring within an

effective network which yield symbiotic outcomes to the participants.

The objective of this research is to address the following research questions:

1. Is there evidence for effective enterprise engagement at IADT?

2. Are there obstacles preventing effective enterprise engagement at IADT?

3. Are systems and structures embedded within IADT to overcome obstacles to

effective enterprise engagement?

4. Can higher levels of effective enterprise engagement be achieved at IADT?

8

This exploratory research may aid in providing a conceptual framework working hypothesis

for further research on the Hunt enterprise engagement objectives.

1.6 The Structure of the Research

The method of research selected is an exploratory case study. Therefore a subject Institute of

Technology (IoT) was carefully selected on the basis of a number of defining characteristics.

The fact that IADT is one of the smallest IoTs in Ireland suggests that the case study method,

with a relatively small number of interviews, has the potential to provide relevant, informed

insights on the research question.

The primary research comprised qualitative data collection via twelve semi-structured

interviews with opinion leaders, decision makers and key informants drawn from those

populations within IADTs enterprise ecosystem that relevant to the research question

(namely IADT Staff, Business Owning Alumni and Incubator companies). To seek further

insight on the policy environment of the Hunt Report and the Higher Education Authority

two further respondents were interviewed from the Higher Education Authority. The

interviews were carried out over a period of three months during the summer of 2011.

Secondary research primarily focussed on reports, conference proceedings and journal

articles.

The research strategy of Gibbs (2008) is employed in this study whereby the literature review

is used to examine themes, trends and previous research to provide a framework and structure

for analysis of the data collected to answer the research question and to enable comparison

for the identification of consistent themes. Analytic codes and categories/themes are

identified in the theory and models examined in the literature review. This framework

provides the basis for the analysis of the qualitative data.

The interview transcripts were analysed for descriptive codes. These descriptive codes were

sorted into the relevant analytic codes and themes drawn from the literature review. The

resulting data was compiled into tabular form. The researcher then examined the coded data

for trends, patterns and themes in the tabulated data. The key findings that emerged from the

above process are presented under each of the research questions and subsequently

triangulated against the relevant literature in order to compare and contrast results. The

research is limited to one academic institution, a focus on one industry sector with

respondents drawn from a limited geographical area.

9

1.7 Research Outcomes Outline

The answer to the research question is that effective enterprise engagement is not occurring

at IADT within the sample respondents. This finding emerges from the progression of

answers to the tests of the research instruments employed in the research study. Research

Question 1 finds that enterprise engagement is occurring at IADT however once the

instruments of effective network, actual collaboration and symbiotic engagement tests

are applied to the tabulated data it is found that effective enterprise engagement is not

currently occurring at IADT. Research Question 2 identifies that the obstacles undermining

effective engagement include Misalignment, Culture Gaps, and Disconnect. Research

Question 3 examines the systems and structures currently underpinning enterprise

engagement at IADT. The data suggests that there is excessive dependence on individual

initiative in this activity at IADT. The finding from the data is that the systems and structures

do not currently exist at IADT to overcome the obstacles to effective engagement.

The majority of enterprise engagements occurring at IADT are informal and not required by

the President to be formally captured or reported. The matter of enterprise engagement

appears from the data to be a relatively low priority internally despite public announcements

to the contrary. While the prospect of short term change is not evident within the data, when

assessing prospects for future improvements Research Question 4 found that there is

enthusiasm for an increase in effective engagement. However in order to increase transivity

and homophilly within the IADT enterprise ecosystem a range of enabling conditions need to

be addressed in advance. These enabling requirements were identified by IADT staff as

internal culture change and the necessity for enterprise engagement activities to be recognised

in their employment contacts. Incubators and Alumni were concerned about quality control

and the overhead of learning curves on each side being identified as something that they

would require to be addressed. The hidden costs of ineffective interfacing between IADT and

enterprise were cited as an inhibitor currently.

Turning to the types of benefits sought by Incubators and Alumni as an incentive for

increases in engagement, a significant finding is that all the benefits identified are

engagements that would improve the effective network for IADT and would not necessarily

cost a significant amount of money to implement. The benefits they cited included the

opportunities to help build their personal profile and their network, networking with most

promising students at IADT and finally being offered networking opportunities with high

profile people to provide potential opportunities for their business.

10

Therefore Research Question 4 finds that an increase in effective enterprise engagement is

conditional on the commitment of the new President and senior management to implement

deep rooted internal culture change at IADT. The cumulative impact of the above answers to

the research question is that effective enterprise engagement is not occurring at IADT.

Furthermore the research indicates that IADT is failing in its mission to meet the

collaborative innovation, training and professional development needs of SMEs (minimal

evidence is found in the data of satisfactory interactions in these categories of engagement

amongst the respondents).

This finding has serious adverse consequences for the ability of IADT to generate non-

exchequer revenue streams and needs to be addressed as a matter of urgency. The finding is

corroborated by the fact that in the period to December 2010 non-exchequer income

accounted for 1.5% of IADTs 23million income as opposed to an internal strategic target

of twenty percent by 2013.

It is noted that exploratory case study research is not typically generalisable to the population

at large therefore the limitations noted in Chapter 3 concerning these findings should be

borne in mind.

1.8 Conclusion

This chapter outlined the structure of this research study. It considered the topics of

introducing the subject matter of the research question and provided the rationale for the

research. The aims and objectives of the research were stated. The research strategy,

procedure and method of analysis were introduced. These topics are important to enabling the

research to be communicated to the reader in an understandable manner and to enable critical

assessment.

The next chapter will consider topics concerning the nature and structure of the organisations

on both sides of the innovation interface, HEIs and SMEs. It will then examine the interface

between the two for typical obstacles encountered. These topics relate to this thesis by

providing the framework for supporting the choice of the research question and the related

research instruments required to answer the research question.

11

CHAPTER 2 LITERATURE REVIEW

2.1 Introduction

The previous chapter provided a detailed overview of this research study. It considered the

rationale for the research, the aims and objectives and how the research is to be conducted. It

also presented a summary of the structure of the research and the outcomes of the research.

The purpose of this chapter is to serve as a foundation for this dissertation. In order to support

the aim of this study the method of Gibbs (2008) is adopted by using the literature review to

examine themes, trends and previous research in order to provide a framework for posing the

research question and a structure for an analysis of the data collected to answer the question.

This introduction will provide a short overview of the structure and layout of the chapters

contents.

The chapter commences by investigating the foundation literature. Through an examination

of the broad issues and challenges facing HEIs and SMEs the basis for establishing the

research question is identified (i.e. the necessity for collaborative engagement between HEIs

and SMEs). The research question is further refined and operationalised via the core

literature. The core literature seeks to examine the nature of collaborative engagement at the

interface between HEIs and SMEs. It seeks to identify in the literature the typical obstacles to

engagement between HEIs and SMEs. A detailed examination is then conducted of the Hunt

Report model for the broad instruments and process for enterprise engagement which it

prescribes.

The identification of the need for empirical research draws on the foundation and core

literature to argue the case for research into effective enterprise engagement being

necessary and relevant at this time. The final outcome of this chapter is the formulation of a

framework and set of research instruments for identifying the existence of effective

enterprise engagement in a research study. Based on these research instruments a definition

of effective enterprise engagement is then formulated. The objectives of this study in

support of the research aim are then identified.

12

2.2 Review of Foundation Literatures

2.2.1 The Irish Higher Education Sector

Ireland has seven universities and fourteen Institutes of Technology (fifteen if the Dublin

Institute of Technology is included however it is not a member of the IoT association and has

the status of a university in terms of academic conferrals) serving a population of over four

and a half million. Each has its own academic structure and administration. According to the

Institutes of Technology Research Coordination and Support Office (2010) the IoTs work to

a three-fold mission of teaching & learning, research & development and enterprise support.

IoTs award their own degrees under delegated authority from HETAC. They provide Higher

Certificates (National Framework of Qualifications (NFQ) Level 6) or Ordinary Bachelors

degrees (NFQ Level 7) and Honours Bachelors degrees (NFQ Level 8 and 9) to students.

Many of the IoTs provide a range of postgraduate programmes at Masters and Doctoral

level. The Institutes also provide part-time programmes catering for the continuing

professional development and education of the workforce. In 2006 a new Institutes of

Technology Act 2006 put the IoTs on the same footing as the universities in their interaction

with HEA.

The Institute of Art Design and Technology, Dun Laoghaire (henceforth IADT) is located in

the county of Dun Laoghaire Rathdown. The current County Development Plan (2010, p.275)

identifies IADT as an important asset to the county in stating:

Strong evidence exists internationally to suggest that successful cities are those that

achieve strong linkages and synergies between their universities and businesses.

An IADT Staff respondent stated to the researcher that The Media Cube (IADTs incubation

centre) has become part of the enterprise support system in the county and all support

agencies see it as a location where anyone that wants to start a business goes.

IADT occupies a differentiated role within the Institutes of Technology sector. It has

significant strengths in arts, technology and enterprise, sectors where employment demand

for students is growing. As a result IADT courses experience high popularity with potential

students. Non teaching activities at IADT are predominantly organised via the Development

Office and include industry interaction, collaborative commercial research (innovation

13

partnerships and commercialisation), applied research/collaborative research, joint initiatives

with other Institutions in or outside the state, incubation services, consultancy,

programmes/training for industry and for those in employment, facilities rental, international

students, Erasmus student mobility and placements, undergraduate student placements,

marketing and public relations.

Within the Irish higher education sector IADT is one of the smallest, placed thirteenth out of

Irelands fifteen IoTs on the basis of graduate numbers in 2010 (when DIT is included as an

IoT) and tenth in terms of post-graduate student numbers. According to HETAC (2011) there

were 340 academic members of staff or 117 Full Time Equivalents employed at IADT in

2010. In that year IADT educated 3.3% of all under-graduates in the IoT sector and 2.6% of

post-graduates in the IoT sector (HEA Enrolment 2010). It is also one of the newest having

received its IoT status in 1997 (as against the average of the mid to late nineteen seventies for

the IoTs comprising the sector).

It might be argued that these relatively small percentages reflect the niche specialism of

IADT (many IoTs provide a full range of disciplines whereas IADT concentrates on the

creative arts, creative technologies and business and humanities) and reflect the fact that the

Institute has no Level 6 undergraduate programmes (which comprise a considerable

proportion of the programmes offered at some IoTs). At IADT the majority of programmes

are at Level 8 and 9 which may reflect the high concentration of the ABC social-economic

grouping in the area in which IADT is located. In May 2011 IADT appointed Dr. Annie

Doona as President. Dr. Doona spent most of her adult life working in the UK's HEI sector

before returning to Ireland in 2007.

2.2.2 The Changing Role of the Sector

In respect of the changing nature of the mission of higher education Von Prondzynski (2011)

sees the journey HEIs have made from teachers to creators of economic value as commencing

with their original teaching and scholarship mission. Subsequently pressure to develop new

knowledge, as well as disseminating it, saw scholarship evolve into research thereby creating

a second mission. This involved a focus on published research which enabled the academic

community to share information. The desire of funding governments to secure a transfer of

knowledge via a move effective linkage between HEIs and the needs of society and industry

created a third mission of technology transfer. Elements of this third mission are the focus of

this research study. Figure 1 below illustrates the progression of the mission of HEIs.

14

Figure 1: The expansion of the University mission. The figure below shows the migration

from teaching (i.e. received knowledge) through research and entrepreneurship to a potential

corporate model, which incorporates elements of vocational training (Adapted from

Etzkowitz 2003 p.115).

A range of political, technological and economic pressures are converging on the higher

education sector. Political in the form of policy reforms envisaged in a number of

government initiated reports from statutory constituted bodies. These include, but are not

limited to, the National Strategy for Higher Education to 2030, Research Strategy for

Science, Technology and Innovation 2006 and the High Level Group report on International

Education 2010.

Economic pressures exist in the form of government funding cutbacks and the imminent

introduction of student fees at a time when educational qualifications are extremely important

(Cedefop 2008). As illustrated in Figure 2 below data from the UK university sectors

illustrates that the HEI sector is over dependent on government funding in the form of

teaching grants and research grants. It is thought that a similar situation prevails in Ireland.

An HEI recruitment embargo has been in place for the past two years and other cut-backs

have restricted HEIs in their ability to respond to the challenges which the economy and

enterprises face. According to Durkin et al (2011) fees are expected to increase the pressure

on students to become discerning consumers of education whereby HEIs are perceived as

service providers from which they are making a purchase and expectations rise accordingly.

15

An increased insistence on the direct relevance of course content to employability and

innovation in teaching methods is expected from fee paying students.

Figure 2: The revenue portfolio for UK universities (PA Consulting 2011 p.4).

Technological pressures are emerging in the form of e-learning, mobile learning (via smart

phones or tablet computers) and a trend towards just in time learning, all of which have the

potential to reduce the demand for formal, accredited qualifications, the stock in trade of

HEIs. Liburd and Hjalager (2010), in addressing collaborative open source education, refer to

the declining role of higher education institutions as knowledge monopolies and their

emerging role as open knowledge mediators. Market place pressures take the form of new,

private sector entrants (such as recently launched Institute of Business and Technology with

campus facilities in a number of locations in Dublin) which are highly focussed in terms of

course content, post-graduation employability and the use of technology in the provision of

learning to reduce overheads and increase student satisfaction.

It is argued (Upton, 2011; Durkin et al, 2011) that due to the convergence of these perfect

storm circumstances the higher education sector is experiencing a strategic inflection point

(Grove 1996) whereby the structure and basis of competition within the industry are

undergoing radical change. In response the limits to an entrepreneurial response imposed by

the traditional nature of higher education structures (Brennan and McGowan 2006) may have

to be rapidly dismantled.

However Upton (2011) also points out that the combined challenges faced by HEIs create a

unique opportunity for transformation. Educational institutions willing to think laterally can

position themselves to outperform into the future. This sentiment is echoed by Archbold

16

(2010) who highlights the need for sustained creativity and innovation across all sectors of

society due to the current economic circumstances.

Having identified at a high level a number of the issues that HEIs face the literature review

now examines the nature of SMEs on the other side of the innovation interface and the issues

they face.

2.2.3 Small & Medium Sized Enterprises

International research has identified small & medium sized enterprises (SMEs) as a key

driver of economic growth (Birch 1979). They are the key source of innovation in a capitalist

economy (Acs and Audretsch 1990) and bring more innovation to the market than large

enterprises. SMEs are the dominant form of business organisation in Ireland and the

European Union. They make up 99% of the 22 million businesses in Europe, contribute 57%

of European GDP and employ close to 120 million people (EU Grants Advisor 2006).

To avoid undue dependence on multi-national enterprises a number of national policy

initiatives see growth, innovation and internationalisation by SMEs as the medium term

solution to Irelands current economic difficulties. However it is open to question how

realistic this expectation is in light of the difficulties that SMEs face (European Union

Information Society 2004 p2):

SMEs are struggling every day for economic survival lack of time, lack of

resources, lack of skilled employees, lack of easy to use technology adapted to SMEs

The lack of training and lack of access to relevant resources (including design, know how,

intermediaries, networks) undermines the enterprises capacity to absorb and capitalise on

innovation (European Regional Development Fund 2009).

The benefits of an ability to be innovative are well established. Research conducted by the

European Union in respect of the innovation behaviours of two hundred SMEs in the Irish

Border Regions identified that the benefits of the innovation discipline as gains of up to thirty

percent consistent growth in sales, greater longevity (the average age of innovative firm was

28 years) and are more profitable than non-innovating firms in the sample (European

Regional Development Fund 2009). However there are distinct differences in participation in

innovation by different sized SMEs. Just 38.9% of small firms with between ten and forty

nine employees engage in either product or process innovation compared to 75.8% of

17

companies with in excess of two hundred and fifty employees (Forfas 2011). The research

suggests that smaller sized SMEs are unable to fund/supervise research and development

(R&D) to the extent needed to remain competitive in rapidly changing environment.

The exploitation of innovation normally depends on access to knowledge and the ability to

synthesise and successfully exploit it. According to Nachira et al (2007) SMEs and local

clusters are now competing in a global and dynamic market where they need more

interrelations, more specialised resources, more research and innovation as well as access to

global value chains and knowledge. In response Irelands Report of the Innovation Taskforce

(2010) states that the education system is pivotal in making innovation happen and should be

a key facilitator and enabler of SME innovation. When one surveys the landscape in search of

the best potential candidate to address the issues that enterprises face Irelands Institutes of

Technology (IoTs) would appear, due to their specific mandate, to be the best candidates.

Forfas (Irelands state policy advisory board for enterprise, trade, science, technology and

innovation) states that IoTs are assigned the role of providers of applied and multi-technology

solutions to industrial needs (2010). The Hunt Report refines this mandate to a prioritisation

of the needs of small and medium enterprises. This mandate arises from the crucial role these

enterprises play in innovation and job creation in the modern economy. According to the

Department of Enterprise, Trade and Employment (2006) the multi-regional nature of IoTs

and their openness to working with industry provides a platform upon which real industrial

impact can be built.

Therefore in conclusion of the foundation literature section it has been established that HEIs

are undergoing a period of change due to economic, policy, technical and competitive

challenges. It has been identified that SMEs are the most common form of business unit in

Ireland and the European Union and are a key source of jobs and innovation in the economy.

Due to resources issues SMEs predominantly suffer from an inability to engage effectively in

innovation and growth. National policy identifies that HEIs are well positioned to address this

failure and seeks to require that HEIs do so via the objectives contained in the National

Strategy for Higher Education to 2030.

18

2.3 Review of the Core Literature

2.3.1 What constitutes effective engagement at the innovation interface between HEIs and

Enterprise?

The Hunt report requires HEIs to diversify their funding streams from an over-dependence on

government sources and to seek to phase in funding from engaging in the provision of

professional, collaborative services to SMEs across what may be termed the innovation

interface.

In the context of sustainable engagement between HEIs and enterprise Kaur-Gill (2011, p.3)

defines engagement in this context as:

Engagement implies purposive, considerate and productive interaction with both

internal and external stakeholders for the establishment of mutually beneficial

partnerships.

The Hunt Report (Hunt 2011 p. 12) defines the process of engagement as:

Outward-facing systems and structures should be embeded into institutional activity,

so that there are inward and outward flows of knowledge, staff, students and ideas

between each institution and its external community.

As noted in Kaur-Gill (2011) enterprise engagement should be purposive. In this context

Hunt states that a key purpose of engagement must be the reduction of dependence on

exchequer funding by earning revenue from responding to the relevant innovation and

training needs of SMEs.

Similar goals have driven recent government higher education policy in other countries.

According to PA Consulting it is no longer sustainable for HEIs in the UK to be over-

dependent on exchequer funding in the new realities. They state that HEIs need to change

internal culture to create portfolios of earned income (see Figure 3 below).

19

Figure 3: The emerging new economics of Higher Education This figure illustrates the need

for HEIs to move from supply-side entitlement to earning revenue from a range of responsive

activities (PA Consulting 2011 p.3).

On the issue of HEIs creating new sources of income Hunt (2011 p. 16) states:

Diversifying funding sources should be linked to a more responsive and open

engagement with key stakeholders, particularly students and enterprise, and a drive

to find new ways to link higher education research and innovation capacity to the

needs of the public and private sectors.

In order to create conditions to drive such responsiveness the Hunt Report (Section 5.6, p79)

recommends that the Higher Education Authority conduct a survey of employers, which

would be used as part of an assessment of quality outcomes for the system.

The IoT sector would appear to be broadly in agreement with the objective of increased

responsiveness to SME needs. According to the minutes of the meeting of the Minister of

Education with a group representing the IoT sector, the Minister queried the use of time by

IoT academic staff in light of the low academic publication record in the IoT generally

observed in the IoT sector.

20

The group responded by saying that the IoT mission (Department of Education 2011 p3) is:

...more focussed on engagement with business and industry (including enterprises,

purpose-driven research, new business incubation and support) than academic

publications.

However there are a number of criticisms of the Hunt Report in respect of its engagement

objectives. Begley (2011) states that the report lacks strategic thinking and is not clear on the

means which be pursued in achieving the multi-faceted objectives it contains particularly in

respect of engagement. Von Prondsinski (2012) states that the major idea in the report is

that there should be a centrally determined national strategy for higher education, and a set of

structures to ensure that this gets implemented by the HEIs. His criticism is that this approach

may not be successful, in his opinion universities are at their most innovative and creative

when they are allowed to pursue their own vision. The Deans office at National University

of Ireland Maynooth (NUIM 2011) states that universities engagement with its external

stakeholders has been almost too routinised within the fabric of its operations to be

extracted and quantified.

The Dean (NUIM 201, p.12) goes on to focus criticism on the potential threats to the

autonomy of HEIs in the Hunt engagement mandate. Specifically noting that:

When considering forms of wider engagement for the university sector, it will be

crucial to consider ways of engaging that exploit rather than compromise this

cherished autonomy.

The Dean sees this autonomy as potentially threatened when the Hunt Report speaks of

facilitating employer input into curriculum design and development as neither the nature or

the level of employer input into curriculum design is clarified nor how this input would be

compatible with pre-existing levels of refereed academic scrutiny. The Deans final

concern in respect of engagement relates to the fact that, in respect of inward and outward

flows cited in Hunt, the mobility envisaged is overwhelmingly between the university and the

world of work and business. In respect of achieving the diversified funding streams from

this mobility the Dean believes that such responsiveness should not lead to a dilution of

scholarly and professional standards in the interests of flexible expediency.

21

The Irish Federation of University Teachers (IFUT 2011, p.1) criticise the report for

singularly lacking any specific indicators of how any of its recommendations might be

implemented". They also state that the panel comprising the reports fifteen members did not

include representatives of academic staff and as such does not take sufficient conscience of

the practicalities of how the HEI sector operates.

Having identified a number of criticisms of the Hunt Report this chapter now examines what

is meant by effective enterprise engagement.

2.3.2 Defining what is meant by effective enterprise engagement

Research by Perkmann et al (2011) has found that existing measures of engagement activities

at the HEI-Enterprise interface are typically too narrow. Their research finds that the

academic literature focuses excessively on commercialisation activities as a measure of

engagement. They find that this measure is too superficial and not indicative of genuine

engagement (or what they title actual collaboration). They state that to measure genuine

engagement the degree of engagement across the entire range of potential collaborations (i.e.

collaborative research, contract research, consulting etc.) must be examined.

The Hunt Report appears to be in sympathy with this position and identifies a broad range of

collaborative services that it expects to underpin HEIs engagement with SMEs. In this

respect Hunt identifies these as research and innovation activities across the entire spectrum

from applied research and commercialisation to development and consulting activities. It also

includes educational services such as Continuous Professional Development and Industry

Training to improve the growth and sustainability of SMES.

From the sampling carried out by the researcher the journal literature on the subject of Irish

HEI enterprise engagement appears to focus on technology transfer (McAdam et al 2009,

Bradley et al 1995, Lai Chun and Garvin 2001) and at the other end of the spectrum on how

student learning outcomes can be improved by use of entrepreneurship education and

interaction (Hegarty 2006). Little research appears in searches on the conditions necessary for

creating actual collaboration in an Irish setting at the innovation interface.

Therefore in the absence of insights from the Irish literature how might one identify if actual

collaboration is occurring within the network of participants at the case study IoT? To seek

to answer this question one must commence by examining elements of Social Network

Theory. Interactions between different participants in a network, and the propensity for this to

22

draw in other uninvolved participants, are measured transivity. If there is a tie between A and

B and one between B and C then, in a transitive network, A and C will also be drawn in to

interacting (Granovetter 1973). However different ties within a network have different

degrees of density with concomitant results for the effectiveness and embeddedness of those

in the network. Epstein (1969 p 110) defines the "effective network" as those with whom one

"interacts most intensely and most regularly".

Homophilly is an important concept to appreciate when one considers how an effective

network may be grown to incorporate a larger number of businesses in embedded

relationships with an IoT. Homophilly describes the positive relationship between the

similarity of two constituents in a network and the propensity of a tie being created between

them. This propensity increases in line with the degree that the other constituent mirrors their

interests (i.e. it is the tendency of individuals to associate and bond with similar others). So

for example in the case of IADT their stated specialisation in digital media attracts digital

media companies to their incubation centre and shapes a cluster of organisations with similar,

mutually reinforcing goals. Therefore transivity and homophilly are key characteristics

evident in effective networks.

Now that the conditions supporting the existence of an effective network have been

established (i.e. that there is intensely and regularly interaction between the participants) one

may now progress to seeking to understand what is meant by actual collaboration in a

network context. For the purposes of this research Perkmann et al (2011)s definition of

actual collaboration as equal intensity of interaction across all categories of engagement is

adopted.

A final component of arriving at a definition for effective enterprise engagement is to seek

an understanding of the motivations of the participants. A key motivation for engaging in

effective collaborative networks is the desire by the participants to achieve resource

efficiency. A key driver of the Hunt Report is to achieve resource efficiency for HEIs and

their collaborative partners, the outcomes it envisages seek to create better results for both

participants, i.e. better meeting the growth needs of SMEs which in turn generates revenue

streams for the HEI. Such behaviour is characterised as symbiotic.

23

The concept of symbiosis is normally associated with biological and business ecosystems. A

biological ecosystem contains complex relationships and engagements among its members.

Plants and animals that depend on a particular ecosystem for survival also contribute essential

ingredients/resources to that environment. A tree's roots draw nutrients and water from the

soil but then contribute fallen leaves for next year's soil. These symbiotic exchange

relationships underpin the ecosystem (US Army Corps of Engineers 2009). The research of

Iansiti and Levien (2004) found that a business ecosystem similarly contains a high rate of

interdependency among member firms and the member firms normally benefit from any

value-creating member of the ecosystem.

A key driver of the Hunt Report is to achieve resource efficiency for HEIs and their

collaborative partners, the outcomes it envisages seek to create better results for both

participants, i.e. better meeting the growth needs of SMEs which in turn generates revenue

streams for the HEI. The resource efficiency created by symbiosis is evident where the

companies composing an ecosystem group exhibit the ability to consistently transform

technology and other raw materials of innovation into lower costs and new products (Iansiti

and Levien, 2004, p. 72).

Therefore in the context of this study symbiotic engagement is defined as the ability to

collaboratively transform technology and other raw materials of innovation into lower costs

and new products that benefit both parties simultaneously, the SME in, inter alia, increased

revenue and the HEI in increased license revenue and other ancillary benefits. The key

advantage of the presence of symbiotic engagement in the network is that it encourages

increases in transivity and homophilly thereby creating the conditions for network growth to

include larger numbers of participants.

Summarising the above discussion the series of instruments to be applied in progression

which provide the test for the presence of effective enterprise engagement are as follows:

1. Does an effective network exist: This is characterised by regular and intense

interaction as opposed to one off transactional engagements. The goal of this test is to

establish if the relationship is embedded within the enterprise activities of the

participants.

2. Is actual collaboration taking place within the effective network? This is

characterised by equal intensity of engagement across all categories of engagement.

24

The goal of this test is to establish whether any embeddedness identified is broad

enough to constitute genuine engagement.

3. Is symbiotic engagement evident in the actual collaborations? The goal of this test

is to establish whether collaborative innovation, training and professional

development is occurring in a manner that creates equal revenue and benefits to all

parties. The purpose of this test is to identify conditions for increases of transivity and

homophilly creating the conditions for growing the effective network. This in turn

provides the potential for a virtuous circle developing, the greater the effective

network the greater the opportunities for creating actual collaboration.

Therefore for the purposes of this study effective enterprise engagement is defined as

genuinely collaborative activities within an effective network which yield symbiotic

outcomes to the participants.

At this point it is important to examine the factors that can prevent effective engagement

occurring at the innovation interface between HEIs and enterprise.

2.3.3 Obstacles to effective enterprise engagement

Literature documents that many HEI-Enterprise interactions are undermined by obstacles of

various types at the points where they engage, termed the innovation interface. Obstacles to

actual collaboration undermine effective networks forming through the undermining of

trust. The specific obstacles documented in the literature concerning the engagement of HEIs

with small and medium enterprise will now be identified.

In terms of the nature of obstacles identified in the literature one theme reflects what might be

termed as a culture gap. According to Ruben (2005) academic institutions are on occasion

criticised for inefficiency, indifference to external constituencies and resistance to change. In

HEIs the reward structure has traditionally been based primarily on success in teaching,

publishing and in acquiring grants (Pera 2009) while in the private sector the focus is on

profit. These motivations are not mutually aligned so it is believed to be difficult for HEIs to

engage effectively in innovation collaboration without changing its organisational focus.

According to the Expert Group on Future Skills Needs (2006) as long as a commonality of

interests does not exist the challenges and difficulties associated with ensuring industry

engages effectively will persist. IADT School of Creative Technologies (2010, p.7) cites:

25

The Enterprise Ireland representative was of the opinion that a culture gap may exist

between IADT and industry in general, with a lot of companies not being aware of the

colleges existence.

IADTs current strategic plan states that a key challenge that the institute face is that of

securing effective industry engagement (IADT President 2008).

Another common theme identified in the literature is misalignment. The Report of the

Innovation Taskforce (2010) finds that small and medium enterprises individually, in groups,

and as part of industry associations have been poor at interpreting, co-ordinating and defining

their research needs and communicating them at a range of levels to the academic sector. As

a result they are not easy partners for HEIs to align collaborative activities with. This obstacle

is compounded by the fact that the struggles which small and medium enterprises experience

have many direct parallels within HEIs. According to The Institutes of Technology Research

Coordination and Support Office (2010) managing and facilitating the relationships between

the varied activities taking place at the typical IoT (including undergraduate and postgraduate

education, lifelong learning, research, innovation, enterprise support, knowledge transfer etc)

are complex and inter-dependent. As such they leave little internal capacity for addressing

external agendas such as the uncoordinated needs of SMEs.

Pera (2009), Nesta (2009) and Atkinson and Wial (2008) find that the alignment of many

educational institutions strategic objectives and resources with the commercial world is

currently sub-optimal due to HEI bureaucracy, disagreements over intellectual property,

university researchers motivations and the long term orientation of university research De

Jong, et al (2008 p232) also identify similar alignment obstacles in their study of HEIs in the

Netherlands, Belgium and Estonia noting that:

Relationships between universities and business need active management. Barriers

between business and universities are rising as businesses are frustrated with

university bureaucracy and the unrealistic expectations of universities about how

much research discoveries are worth.

A number of specific obstacles to engagement were identified in the IADT literature which

were consistent with a theme of what may be termed disconnect in respect of enterprise

engagement. IADT School of Creative Arts (2009) notes Staff acknowledged the need for a

26

stronger dialogue with Industry across the School. And HETAC (2011, p.14) makes a coded

reference to disconnect in noting:

It recognises the Media Cubes engagements with the wider Institute and considers

that there is further scope for enhancement by building on the relationships with three

schools within IADT.

In light of the obstacles to the formation of effective networks one must examine the

literature to identify how the impact of these obstacles can be mitigated, if not removed. In

terms of seeking solutions from within HEIs Houston et al (2006) note that, in the context of

culture change within the university sector, there was a lack of problem-solving or creative

thinking by academics who, he presumed, would apply their professional skills to their

organisational work. Feedback from the focus group meetings in his study suggested that

staff in the university had retreated to a culture of blame stance rather than proactive

problem-solving or advocacy to address difficulties in workloads management.

Looking for guidance from biological ecosystems processes in a biological ecosystem are

characterised by systemic behaviour. The US Army Corps of Engineers (2009) state that the

function of a biological ecosystem must be considered as a whole as every part of the

ecosystem has a functional effect on the others. The key defining process involves a cycle of

exchange of materials between living things and the environment the parameters of which are

set by feedback loops within the system. Processes in business are also characterised by the

systemic behaviour where it is argued that the only way to fully understand why an element

occurs and persists in a business environment is to understand the parts in relation to the

whole (Capra 1996). Deming (2000) identifies a system as a network of interdependent

components that work together to try to accomplish the goal of the system. He states that in

organisational behaviour without aim there is no system (i.e. it has no defining identity).

Therefore in order for activity to be systemic it should be organised behaviour geared towards

a defined goal.

Therefore the systemic nature of the processes evident in biological and business ecosystems

help mitigate obstacles to the operation of the process. If correctly regulated, systems have

the potential to overcome or prevent obstacles from limiting the effectiveness of the relevant

process (George 2003). In respect of systems to drive effective enterprise engagement the

Hunt Report (2011 p. 12) notes that Outward-facing systems and structures should be

27

embedded into institutional activity with the objective of creating a permanence of patterns

and relationships of constituents.

However for any system to be effective in respect of human processes it must seek to address

the intrinsic motivations of the participants to ensure their participation to a degree where

effective networks may be formed. The review of relevant IADT literature identified a

number of sample interactions identified as occurring with the groups selected from the

IADT enterprise ecosystem (see Appendix 5 for the specific references identified).

They include access to resources such as opportunities to network with academics, access to

resources such as the physical resources of the HEI, student work placements and internships,

Innovation Vouchers (a collaborative research funding programme managed by Enterprise

Ireland), work based training and staff training programmes, guest lecture opportunities and

access to students to carryout projects/assignments on opportunities/issues that confront the

business.

In conclusion of the review of core literature the aspiration of the Hunt report in respect of

enterprise engagement has been identified as inward and outward flows of knowledge, staff,

students and ideas. Based on a synthesis of the concepts of effective network, actual

collaboration and symbiotic engagement effective enterprise engagement is defined as

genuine collaborative activities within an effective network which yield symbiotic outcomes

to the participants. The units of such engagement at IADT include student work placements

and internships, Innovation Vouchers, work based training and staff training programmes,

guest lecture opportunities and access to students to carryout projects/assignments on

opportunities/issues that confront the business.

Obstacles to such effective enterprise engagement include culture gap, misalignment and

disconnect. Instruments for mitigating the effect of obstacles in biological and business

ecosystems are systems and structures which underpin the key processes. The Hunt report

makes a similar statement that outward-facing systems and structures should be embedded

into institutional activity to embed engagement within HEIs.

28

2.4 Identification of the need for Empirical Research

The foundation literature review identified the nature, structure and challenges faced by HEIs

and SMEs in their respective domains of operation. It is evident that both face similar issues

(while of a different scale) and share common objectives in respect of sustainability of their

organisations in the current environment. However the literature suggests this commonality

of interests has not yet percolated to the level of operational behaviour. The foundation

literature also identified the key Hunt Report objective of what may be termed effective

enterprise engagement as having the potential to play a key role in the national recovery of

Irelands SME population.

However as noted earlier the Hunt Report has been the subject of a number of criticisms since

its publication. These criticisms focus, inter alia, on the fact that it does not contain metrics or

clear structural guidance as to how the enterprise engagement objectives are to be met by

Irish HEIs. This question is deserving of further investigation given its key importance on

two levels, addressing the pressing innovation and growth requirements of SMEs and the

diversified funding requirements of HEIs.

As noted in the core literature an investigation of current literature on enterprise engagement

yields results which appear to focus on technology transfer at one end of the spectrum and at

the other extreme on how learning outcomes can be improved by use of guest lecturers.

While academic research has identified obstacles at the interface little research appears to

exist in an Irish context on the measures and conditions necessary for the existence of actual

collaboration which has the potential to create engagement of the type required by Hunt.

Now that a definition of effective enterprise engagement has been formulated how might

the question of measuring it be operationalised (i.e. converted in a way that enables putative

facts to be measured quantitatively) to facilitate research? In order to seek an answer the

research question must be operationalised into a number of key issues with their associated

tests.

Given that the aim of this study is to evaluate whether effective enterprise engagement is

occurring at IADT one would also seek to examine current interactions, identify any

obstacles, identify existing systems and finally attempt to identify the conditions for

improvement.

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2.5 Identification of the Objectives of this Study

In order to address the gap identified in current literature on the subject of effective

enterprise engagement at Irish HEIs an exploratory case study is proposed at IADT. The aim

is to seek to identify whether effective enterprise engagement is occurring at IADT. In

terms of operationalising this aim the objective of this research is to seek answers to the

following research questions:

1. Is there evidence for effective enterprise engagement at IADT?

2. Are there obstacles preventing effective enterprise engagement at IADT?

3. Are systems and structures embedded within IADT to overcome obstacles to

effective enterprise engagement?

4. Can higher levels of effective enterprise engagement be achieved at IADT?

The first research question relates to identifying evidence for effective enterprise

engagement at IADT. In order to address this question the tests identified in the literature

review will be applied. Therefore in respect of Research Question 1 the researcher is seeking

to identify in primary research with interview respondents evidence of the units of

engagement identified in the literature review. This will be augmented by any further

interactions that emerge during the analysis of the interview transcripts.

In order to seek to identify if the respondents are in an effective network with IADT the

researcher is seeking evidence from the interview transcripts for regular and intense

interactions between the respondents as opposed to once off transactional engagements.

Once the data is compiled in tabular form the actual collaboration test (that engagement is

evident in the sample across the entire range of interactions) is applied to the results of the

data analysis.

The final test instrument is for the presence of symbiotic engagement. This test seeks to

identify the degree to which engagements identified are, or have the short-term potential, to

generate revenue for IADT while meetings the relevant needs of SMEs.

In seeking to address the second question of whether there are there obstacles preventing

effective enterprise engagement at IADT the researcher is seeking evidence in the primary

research data of obstacles identified in the interview responses. During the research analysis

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stage this will be assessed by reference to the framework of obstacles identified in the

literature review namely misalignment, culture gaps and disconnect.

In respect of Research Question 3 the researcher is seeking evidence of systems and

structures embedded at IADT that have the potential to overcome obstacles to effective

enterprise engagement. Here the primary data will be assessed for evidence of whether

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