This study analyzes the impact of ownership structure on R&D investments in the United States and Japan. It begins with the premise that U.S. and Japanese firms have distinct patterns of ownership that may result in disparities in R&D investments. Agency theory and stewardship theory are used to hypothesize about the relationship between ownership and R&D investments. Empirical evidence shows that the level of ownership concentration, and its impact, differ across countries. We argue that these differences result from a mixture of motives and incentives. With communism laid to rest. .. it has become fashionable to talk of numerous capitalist "models"-the American model.., .in which firms feed on a huge and liquid stock market; the Japanese one, in which groups of firms and banks are bound together through complex webs of crossholdings.

Although an entrepreneur's initial strategy choices have a critical effect on a new venture's survival, growth, and long-term performance, few studies have explored how pre-founding experience influences these choices. Founders who over rely on their historical industry experiences may simply replicate the strategies of legacy firms. In turn, little is known about how founders can break these experience-based constraints, if they exist. In an empirical analysis of 120 prospective entrants in air transportation from 1995-2005 we find that a founder's past experience strongly constrains choices, and the effect depends on the form of experience and type of strategy choice. Diversity of experience, at the level of the founder and founding team, lessens these constraints. Our results have valuable implications for research in strategy and entrepreneurship.

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Current innovation literature provides a very limited understanding of the potential impacts of innovative culture on employees. Building on resource‐based view theory, the authors investigate theoretically and empirically how a perceived innovative culture can be a building block for a firm's competitive resource and advantage by creating superior employee‐level outcomes and how a market information‐sharing process may moderate these effects. The authors identify three distinct types of individual‐level outcomes stemming from an innovative culture. The three outcome variables—job satisfaction, organizational dynamism perception, and firm performance perception—reflect employees’ psychological and cognitive reactions to the process of creating organizational innovation and innovative culture. The authors collect survey data from 3960 individual employees in China. Their findings first show that a perceived innovative culture significantly and positively affects employees’ job satisfaction and perceptions of organizational dynamism and firm performance. Moreover, organizational dynamism perception plays an important mediating role among three employee‐level outcomes by converting job satisfaction into firm performance perception. The authors also find support for the direct, positive effect of a perceived market information‐sharing process on job satisfaction but not on perceptions of organizational dynamism and firm performance. Most importantly, their findings on the significant moderating role of a market information‐sharing system contribute to innovation theory by emphasizing the importance of the innovation/marketing interface: bundling market information sharing and innovative culture together enhances employees’ positive attitudes and perceptions. This result also suggests that examining only the direct effects of innovative culture and market information sharing may lead to incorrect conclusions as to how to manage the cultural infusion process: the market information‐sharing process shows only a weak effect on job satisfaction and no effect on perceptions of organizational dynamism or firm performance. Organizational designs should ensure simultaneous consideration of both variables in the cultural transformation process to enhance employees’ derived benefits in the process of creating an innovative culture. We offer a new insight: a perceived market information‐sharing process may strengthen the effect of an innovative culture on employees’ job satisfaction and organizational dynamism perception, while it may weaken the effect of an innovative culture on firm performance perception. This more nuanced view of market information sharing in the cultural infusion process presents new wisdom and calls for further studies in entrepreneurial innovation.

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