This paper develops a theoretical model to examine the relationship between the input elasticity of (technical) substitution and both farm total factor productivity and size. In the presence of ongoing technical change and its factor bias, the ‘income effect’ arising from farms' cost minimising behaviour enables them to increase productivity by saving inputs or, through the dual equivalent, enlarging farm size. As such, farms with higher elasticities of substitution tend to grow larger and become more productive, which provides a new mechanism through which farm heterogeneity in productivity growth can be examined. Empirical evidence from Australian broadacre agriculture supports this theory and points to important policy implications.

A widespread interest in organizational learning has been precipitated by the need for radical change and strategic renewal in many institutions. “Learning laboratories” or “microworlds” have been proposed as powerful tools for enhancing learning through experience. As costs of technology decline, and software becomes more accessible, the use of customized computer simulations in microworlds will become a feasible option for many management development programmes. Describes a leadership development programme in the telecommunications industry in which a customized microworld computer simulation was used to promote managerial learning, teamwork and co‐operation. Goals of the programme include development of a new paradigm for competition in the industry and a new vision for the organization. A unique feature of the programme was that success of the microworld was measured and systematically evaluated. A significant impact on improved co‐operation, individual and group learning was observed. Discusses characteristics of microworlds and challenges to simulation designers. Finally, presents some guidelines for successful microworld design, together with suggestions for future microworld application.

Purpose – One approach for CEOs seeking to improve the effectiveness of their company’s innovation initiatives is to imitate the role that a “Scrum Master” has in high speed software development projects. Fundamentally, a Scrum Master is in the business of speeding up the rate of innovation in a software project. Design/methodology/approach – By championing Agile methodology, CEOs can focus innovation initiatives upon developing what customers prioritize and value. Pushing the organization to involve customers, and in some cases suppliers, increases the value added and value creation of the project. Findings – When a CEO practices acting like a Scrum Master, he or she does so by pursuing four goals: Keeping innovation work cycles or “Sprints” short. Focusing upon value creation and customer involvement throughout the development process. Removing barriers to development that prevent the software programmers from doing their job. Attempting to shelter developers from counterproductive interventions by external managers. Practical implications – By championing Agile teams, the CEO can communicate his or her expectation that innovations will be tested on clients and be available as a “court of last resort” to cut through the barriers and delays that prevent a development team from moving forward.” Originality/value – This article is unconventional in that it suggests that CEOs need to be particularly aware of how their actions in support of Agile teams can build medium and long term organizational capabilities. Top management oversight of Agile teams can strengthen strategic relationships with internal stakeholders, customers and suppliers.

where he has worked on high tech pricing. A former CEO of a number of hi-tech firms, he is the author of three books on strategy and technology and a contributing editor of Strategy & Leadership. Mike Simonetto (msimonetto@deloitte.com) is a principal with Deloitte Consulting LLP who specializes in pricing and profitability strategies. He is the author of several articles on pricing execution and strategy and has led numerous large pricing projects.

Consulting specializing in strategy and technology strategy. A Strategy & Leadership Contributing Editor, his article "Pricing strategy and execution: an overlooked way to increase revenues and profits" (co-authored with Mike Simonetto) appeared in Vol. 34, No. 1. Jonathan Copulsky, a Deloitte Consulting principal,