Seed technology ventures require external sources of debt and equity funding, once they have exhausted founders personal resources, to achieve their potential economic impact. The primary source of equity finance for seed ventures is from Business Angels who invest their own money in the company and frequently provide additional sources of assistance to the entrepreneur. Once seed ventures have completed their business plans, however informally, they pitch their opportunity to potential investors, However, less than three per cent of these pitches to Business Angels are successful. It is suggested that a major reason for this low success rates is a lack of understanding by pitching entrepreneurs of how Business Angels make their investment decisions. Investigating how Business Angels make their investment decisions will identify some of the causes of this high failure rate. In turn this will help to suggest ways for entrepreneurs to increase their likelihood of successful interactions with investors. Real-time techniques that involve observing successive interactions between five Business Angels and 150 pitching entrepreneurs are used to gather data on the investment decision-making process. The technique of observational interaction has been used in psychological research to observe interpersonal relationships and their development within the context of a complex process. This complex process can best be understood by breaking down the process into stages. In this research the initial interaction between entrepreneur and Business Angel is investigated. It is found that initially the Business Angels use a filtering technique to expeditiously reject most opportunities. This allows, allow them to concentrate their limited resources on further investigation of a few promising opportunities that appear to offer the highest potential return. The unique data set used in this research is taken from a reality TV show – CBC Dragons’ Den – where entrepreneurs participate in order to receive real investment from five wealthy individuals known as “Dragons”. Using the video material gathered during the recording of the show it is possible to observe how the five Dragons initially filter out most opportunities, before looking at more positive factors when determining their interest in investing in the few opportunities remaining. This filtering process involves a non-compensatory technique - Elimination-By-Aspects, where the presence of a single one of eight potential fatal flaws is sufficient reason for rejection. While this may not be the most accurate technique, it is the most cost effective approach to decision-making for the investors. To increase accuracy at later stages, the investors adopt a more compensatory decision-making approaches. Improved understanding of the staged nature of the process, and how Business Angels identify fatal flaws at the initial stage of the interaction, provides valuable insights to both investors and entrepreneurs. Armed with this knowledge they can take steps to eliminate such flaws and improve the overall efficiency of the decision making process. This in turn will lead to an increase in successful outcomes of such interactions and consequently the number of seed ventures that are successful in raising third-party funding from Business Angels.

Abstract It is widely acknowledged that employees with positive attitudes towards their leaders and working environment can contribute to significant organizational outcomes; which can include customer satisfaction, loyalty, and increased profits. Employee’s service-oriented behaviour has been extensively proposed in literature as the result of a multiple set of organizational variables. However, limited empirical research has explored the links between the behaviour and attitudes of front line employees that lead to constructive service. Based on a sample of 4,220 employees from a well-known Canadian charter bank, this study empirically examined the relationships between rewards and recognition, perceived organizational support (POS), and leader-member exchange (LMX) and its effect on employee’s service oriented organizational citizenship behaviours (COBs). In addition, a theoretical analysis of the relationship between service oriented behaviour, customer satisfaction, and increased company performance explains the importance of empirically investigating the observed relationships. The results provided support for the claim that perceived organizational support and leader-member exchange mediate the relationship between rewards and recognition and service-oriented organizational citizenship behaviours (service COB, loyalty COB, and participation COB) when different sources of rewards and recognition are in effect (e.g.., from manger, non-manager, and understanding of system). This study is relevant to the management of service industries that depend on front-line employees to deliver quality service, and to clarify the environmental and situational aspects that influence employee’s service behaviours. These factors are crucial in face-to-face interactions which can result in business profit or loses.

Board involvement in Information Technology (IT) governance and the antecedents and consequences of such involvement are examined from both a theoretical and practical perspective. Practitioner and academic IT governance literature highlight the need for increased board involvement in IT governance; however, it seems that many corporate boards do not practice a formalized style of IT governance, while those that do, face significant challenges. A gap clearly is seen as in spite of the potential benefits of board IT governance and the costs of ineffective oversight, there has been little field-based research in this area, nor adequate application of theory. This research addresses this gap by developing and testing an exploratory multi-theoretic framework of board IT governance. Drawing upon strategic choice and institutional theories, and Ashby’s Law of Requisite Variety, a model of the antecedents (organization factors and board attributes) of board IT governance and its consequences (financial performance and operational performance) is both developed and tested. Unlike previous studies, board IT governance is designated as a central construct in this model rather than a secondary factor. Constructs of board IT governance and IT competency are explored and multi-item measures for both constructs are developed. Board IT governance is conceptualized as the extent of offensive and defensive board oversight activities, while IT competency is conceptualized as the extent of IT expertise (IT knowledge, experience and training) and IT governance mechanisms (structures, processes and relational mechanisms). Detailed interviews with board members enabled a preliminary examination of the theoretical framework. To further test the propositions in the theoretical framework and to validate the measures for the board IT governance and IT competency constructs, an online survey was administered to corporate directors across Canada. Exploratory Factor Analysis and Ordinary Least Squares multiple regression were used to analyze responses from 188 directors. The board IT governance and IT competency constructs were well supported by the data. In addition, the results show that the organizational factors explain 28% of the variance in board IT governance, and that board attributes explain 39% more of the variance, for a total explained variance in board IT governance of approximately 68%. The results also show that board IT governance has a positive impact on operational performance, explaining 19% of the variance in operational performance. However, the proposed impact of board IT governance on financial performance, and the impacts of ‘fit’ between role of IT and board IT governance approach on financial and operational performance were not supported by the survey results. Overall, this research makes a theoretical contribution by: focusing on the board’s role in IT governance; developing a multi-theoretical model of the antecedents and consequences of board IT governance; developing measures of board IT governance and board IT competency, and; empirically assessing the antecedents and consequences of board IT governance.

What objective should an entrepreneur focus on when starting a new business enterprise? Both a survival orientation and a profit one are important for the continuity of the new venture, but a survival focus is key in the hazardous early months or even years. In this thesis, I identify the conditions under which an entrepreneur should switch from a survival orientation, where the venture’s likelihood of survival is more critical, to a profit orientation where the venture’s profit instead is more critical. I accomplish this task by determining the optimal time to switch from a survival to a profit orientation based on maximizing the entrepreneur’s accumulated utility over a given time horizon. At each time period, the utility is positively associated with the amount of added value to the business venture that entrepreneur owns and manages, and the time horizon is determined by the time at which the entrepreneur’s venture exit – for instance, it is being sold. That added value contains a planned portion (e.g., due to what the entrepreneur can control) and an unplanned portion. The portion of a firm’s added value that is unplanned depends on the entrepreneur’s orientation, whereby, at any time period, the expected added value and its variation are considered to be low under a survival orientation, but they are considered to be high under a profit orientation. I use an approach from the economics literature, known as the LEN model, where the use of an exponential utility function (E), a linear relationship between the utility and random effects (L), and normality of those random effects (N) allow me to transfer the probabilistic objective function into a certainty equivalent that makes the problem tractable. The decision framework and its resulting findings suggest two environmental and two entrepreneurial characteristics that influence the existence of a time at which to switch orientation from survival to profit. Based on these characteristics, I derive sixteen scenarios and discussed some of the necessary conditions for the existence of a switching time. I find that it is not straightforward to determine whether the orientation switch should be delayed or expedited as business environments (or entrepreneurial types) are compared. I thus further develop my analysis by adding more structure to the functional forms that underline the behavior of how the mean of and variation in the firm’s added value are regulated over time, as well as for the risk propensity of the firm’s owner. This exercise allow me to study the conditions under which the switching time should be delayed or expedited, and to numerically investigate the behavior of a firm’s total valuation as changes occur in key model parameters. I use franchising as an application of the sensitivity analysis I perform to identify whether a change in a model parameter (everything else being equal) should delay or expedite the orientation switch. Based on this application, I would advise entrepreneurs to switch their orientation later if they go into entrepreneurship as a franchisee rather than as a franchisor. A simulation analysis allows me to further propose a positive relationship between a firm’s total valuation and the planned added value by the entrepreneur to that firm. That analysis also suggests a positive relationship between a firm’s total valuation and the expected unplanned-added-value growth under a profit orientation, but a negative relationship under a survival orientation. Further, I find a positive relationship between total valuation and the variation in unplanned-added-value growth under a survival orientation, but a negative relationship under a profit orientation. One of the key challenges that have been raised for future entrepreneurship research is how to define an entrepreneur’s objective function. My thesis contributes to this debate by suggesting that, in the early years, there should be an orientation switch, that is, sequentially as opposed to simultaneously consider both survival and profit maximization. My thesis also contributes to the literature on firm growth because using risk-return tradeoffs to characterize the two orientations is unique in the entrepreneurial context, and so is the consideration of a sequential use of these orientations to study firm added value over time and the resulting accumulated total valuation. Characterizing each of the two orientations – survival and profit – based on risk-return tradeoffs and linking these orientations to firm growth open up new avenues for research in entrepreneurial decision making.

Organizational support for cooperative work has been shifted from using Face-to-Face (FTF) communication in collocated groups to using Communication-Mediated-Communication (CMC) in dispersed groups. This new and growing form of communication has stimulated scholars to study the differences of group performance between FTF and CMC. Task categorization has been the methodology chosen for several empirical research studies. These studies conclude that the effectiveness of a communication medium for a given task depends on the degree to which there is a fit between the richness of information that can be transmitted via a system’s technology and the information richness requirements of that task. However, there are numerous problems associated with using task categorization in such studies. One of these limitations is that categorization forces the researcher to enclose a task situation into a general predetermined category that may not describe the real nature of the activity. For instance, task categorization does not capture the dynamic interaction of groups performing tasks that involve variation. This thesis discusses the weakness and limitations of this approach and, using conclusions drawn from experimental results, propose the adoption of a more systematic approach based on the concept of Ashby’s law of requisite variety. Findings on the differences in performance of FTF groups versus CMC groups of 39 three-person groups of engineering undergraduate students revealed that the group performance was not affected by the communication medium but rather by variation in the task (low and high complexity).

Despite significant efforts to boost female enrollment levels and retention rates in engineering programs, females continue to make up only a small portion of the Canadian undergraduate engineering student population. However, this traditionally-male field is undergoing a culture change as a result of the recent establishment of a female minority. New initiatives that are encouraging women to enter the field are also challenging assumed gender differences previously used to legitimize women's low participation. Through a series of multiple-choice, scenario-based questionnaires, this exploratory study seeks to establish whether or not gender differences observed in the broader population are applicable to the unique engineering undergraduate population at the University of Waterloo. In particular, respondents are quizzed on their preferences for specific job attributes and aspects of life outside of work. In addition, short-answer open-ended questions are used to gauge the level of integration experienced by female students in the faculty. Attention is paid to the general academic and social engineering environment as well as the specific dynamics of mixed-gender groups. Although some gender differences, such as higher preference for earnings on the part of males and work-life balance on the part of females, are in line with previous findings, other differences are found to be either absent or reversed. A surprising side effect of our culturally-diverse sample is the emergence of cultural background as a strong factor which, besides gender, affects work and life attribute preferences, especially preferences for task challenge and earnings. Another interesting outcome of the study is the resulting asymmetry between factors that respondents acknowledge as contributing to their happiness, and factors, which when absent, are found to contribute to the respondents' unhappiness. The study also reveals that female engineering students find themselves in a balancing act between perceived privileges due to their minority, and reduced participation and decision making power due to perceptions of engineering projects as stereotypically in the male domain.

Ambulance response time is a key measure used to assess EMS system performance. However, the speed with which ambulances respond to emergencies can be highly variable. In some cases, this is due to geography. In dense urban areas for example, the distances traveled are short, but traffic and other hindrances such as traffic calming measures and high rise elevators cause delays, while rural areas involve greater distances and longer travel times. There are two major components of response time: first, pre-travel delay to prepare for ambulance dispatch, and second the actual travel time to the callers location. Response time standards are often established in order to provide fast and reliable service to the most severely ill patients. Standards typically specify the percentage of time an emergency response team can get to a call within a certain time threshold. This is referred to as “coverage”. This thesis deals with the development of a new response time model that predicts not only the mean response time, but estimates its variability. The models are developed based on historical data provided by the Region of Waterloo EMS and will permit the Region to predict EMS coverage. By analyzing the historical data, we found that response times from EMS stations to geographical locations within the Region of Waterloo are characterized by lognormal distributions. For a particular station – location pair we can thus use this information to predict coverage if we are able to specify the parameters of the distribution. We do this by characterizing the travel time and pre-travel delay times separately, and then adding the two to estimate coverage. We will use a previously proposed model that estimates the mean travel time from a station to a demand point as a function of road types traversed. We also compare the results of this model with another well known model and show that the first model is suitable to apply to the Region of Waterloo. In order to estimate the standard deviation of the response time, we propose a simple but effective model that estimates the standard deviation as a function of mean response time.

This exploratory research investigates students’ responses to innovative instructional methods, focusing primarily on identifying the barriers that discourage students from engaging with methods that are new or not expected. The instructional methods explored are examples of learning-centred teaching and assessment methods, and are considered to be innovative since they are not yet widely used in higher education. To investigate this issue, literature from organizational change management, resistance to change, and higher education is reviewed. Gaps from the higher education literature suggest that no comprehensive framework or model exists regarding students’ barriers to engaging with innovative, learning-centred instructional methods. Additionally, few studies compare faculty member and student perceptions, clarify whether the instructional methods studied are innovative for the students, or apply theories and concepts from the change management literature. This research attempts to address these gaps. Case study methodology is selected to enable a detailed study of a course that employs innovative instructional methods. A modified grounded theory approach is used to inform both research instrument design and data analyses. Data are collected from multiple sources and via multiple methods, and both thematic and comparative analyses are presented. Overall, support is found for the four research propositions posed. The students’ barriers fall into eight key themes, and comprise various codes and properties to provide further understanding. The saliency of the codes appears to vary by time of term and type of instructional method. Other relevant factors include: the students’ year of study and amount of instructional variety, the academic discipline and culture of the innovative course, and misalignments between the students’ and instructor’s perceptions of the barriers to change. The value of course evaluation data as feedback about innovative courses is also questioned. Finally, connections are made between the findings and the Reasoned Action Approach theory for future possible research. The findings provide a new comprehensive barrier framework, analytic fishbone tool, and testable theory to help guide the development of future research projects. Additionally, future practitioners – both faculty members and educational developers – can benefit from knowing what factors to consider when planning for and confronting student resistance to innovative instructional methods.

The facility layout design problem is a fundamental optimization problem encountered in many manufacturing and service organizations that was originally formulated in 1963 by Armour & Buffa. This thesis derives a convex programming model, IBIMODEL, that is designed to improve upon the ModCoAR model of Anjos & Vannelli for the facility layout problem with unequal areas. The purpose of IBIMODEL is to find 'good' initial locations for the departments that a second model then uses to produce a detailed solution to the facility layout problem. The proposed model has four ideas behind it: unlike ModCoAR, it does not improve the objective function as the departments start overlapping, it takes into account the aspect ratio requirements, it introduces a systematic approach to making parameter choices, and it uses a new second stage recently proposed by Luo, Anjos & Vannelli to obtain the actual facility layouts. In this way, IBIMODEL efficiently generates a reasonably diverse set of superior solutions that allow the second stage to provide a wide variety of layouts with relatively low aspect ratios and total cost. The proposed methodology was implemented and numerical results are presented on well-known large layout problems from the literature. To demonstrate the potential of the combination of IBIMODEL with Luo, Anjos & Vannelli's model, our results are compared with the best layouts found to date for these well-known large facility layout problems. The results support the conclusion that the propose a methodology consistently produces competitive, and often improved, layouts for large instances when compared with other approaches in the literature.

The deregulation of energy markets around the world, including power markets has changed the way operating assets in these markets are managed. Independent power asset owners and even utilities operating in these markets no longer operate their assets based on the cost of service approach that prevailed under regulation. Just as in other competitive markets, the objectives of asset owners in power markets revolve around maximizing profit for their shareholders. To this end, financial valuation of physical assets in power markets should incorporate different strategies that are used by asset operators to maximize profit. A lot of observed strategies in power markets are driven by a number of factors, the key among which are: • asset operators are no longer obligated to supply service or manage their assets in certain prescribed ways, rather they have rights to operate, within applicable market rules, using techniques that maximize their profits, • revenues are driven by uncertain market factors, including power price, cost and/or availability of fuel stock and technical uncertainties, and • power assets have physical operating and equipment constraints and limits. Having flexibilties (“options”) to optimize their assets (inline with shareholders’ objectives), rational asset managers react strategically to gradual arrival of information , given applicable equipment constraints, by revising previous decisions in such a way that only optimal (or near optimal) decisions are implemented. As a result, the appropriate approach to valuing power assets in competitive markets must account for managerial flexibilities or “real options” in the presence of uncertainties and technical constraints. The focus of this work is to develop a robust valuation framework for physical power assets operating in competitive markets such as peaking or mid-merit thermal power plants and baseload power plants. The goal is to develop a modeling framework that can be adapted to different energy assets with different types of operating flexibilities and technical constraints and which can be employed for various purposes such as capital budgeting, business planning, risk management and strategic bidding planning among others. The valuation framework must also be able to capture the reality of power market rules and opportunities, as well as technical constraints of different assets. The modeling framework developed conceptualizes operating flexibilities of power assets as “switching options’ whereby the asset operator decides at every decision point whether to switch from one operating mode to another mutually exclusive mode, within the limits of the equipment constraints of the asset. As a current decision to switch operating modes (in the face of current realization of relevant uncertainty factors) may affect future operating flexibilities of the asset and hence cash flows , a dynamic optimization framework is employed. The developed framework accounts for the uncertain nature of key value drivers by representing them with appropriate stochastic processes. Specifically, the framework developed conceptualizes the operation of a power asset as a multi-stage decision making problem where the operator has to make a decision at every stage to alter operating mode given currently available information about key value drivers. The problem is then solved dynamically by decomposing it into a series of two-stage sub-problems according to Bellman’s optimality principle. The solution algorithm employed is the Least Squares Monte Carlo (LSM) method. The developed valuation framework was adapted for a gas-fired thermal power plant, a peaking hydroelectric power plant and a baseload power plant. This work built on previously published real options valuation methodologies for gas-fired thermal power plants by factoring in uncertainty from gas supply/consumption imbalance which is usually faced by gas-fired power generators. This source of uncertainty which has yet to be addressed in the literature, in the context of real options valuation, arises because of mismatch between natural gas and electricity wholesale markets. Natural gas markets in North America operate on a day-ahead basis while power plants are dispatched in real time. Inability of a power generator to match its gas supply and consumption in real time, leading to unauthorized gas over-run or under-run, attracts penalty charges from the gas supplier to the extent that the generator can not manage the imbalance through other means. A savvy gas-fired power plant operator will factor in the potential costs of gas imbalance into its operating strategies resulting in optimal operating decisions that may be different from when gas-imbalance is not considered. By considering an illustrative power plant operating in Ontario, we show effects of gas-imbalance on dispatch strategies on a daily cycling operation basis and the resulting impact on net revenue. Results show that a gas-fired power plant is over-valued by ignoring the impacts of gas imbalance on valuation. Similarly, we employ the developed valuation framework to value a peaking hydroelectric power plant. This application also builds on previous real options valuation work for peaking hydroelectric power plants by considering their operations in a joint energy and ancillary services market. Specifically, the valuation model is developed to capture the value of a peaking power plant whose owner has the flexibility to participate in a joint operating reserve market and an energy market, which is currently the case in the Ontario wholesale power market. The model factors in water inflow uncertainty into the reservoir forebay of a hydroelectric facility and also considers uncertain energy and operating reserve prices. The switching options considered include (i) a joint energy and operating reserve bid (ii) an energy only bid and (iii) a do nothing (idle) strategy. Being an energy limited power plant, by doing nothing at a decision interval, the power asset operator is able to time-shift scarce water for use at a future period when market situations are expected to be better. An illustrative example considered shows the impact of the different value drivers on the plant’s value and dispatch strategies. Results show that by ignoring the flexibility of the asset owner to participate in an operating reserve market, a peaking hydroelectric power plant is undervalued. Finally, the developed valuation framework was employed to optimize life-cycle management decisions of a baseload power plant, such as a nuclear power plant. The applicability of real-options framework to the operations of baseload power plants has not attracted much attention in the literature given their inflexibility with respect to short-term operation. However, owners of baseload power plants, such as nuclear plants, have the right to optimize scheduling and spending of life cycle management projects such as preventative maintenance and equipment inspection. Given uncertainty of long-term value drivers, including power prices, equipment performance and the relationship between current life cycle spending and future equipment degradation, optimization is carried out with the objective of minimizing overall life-cycle related costs. These life-cycle costs include (i) lost revenue during planned and unplanned outages (ii) potential costs of future equipment degradation due to inadequate preventative maintenance and (iii) the direct costs of implementing the life-cycle projects. The switching options in this context include the option to shutdown the power plant in order to execute a given preventative maintenance and inspection project and the option to keep the option “alive” by choosing to delay a planned life-cycle activity. Results of an illustrative example analyzed show that the flexibility of the asset owner to delay spending or to suspend it entirely affects the asset’s value accordingly and should be factored into valuation. Applications can be found for the developed framework and models in different areas important to firms operating in competitive energy markets. These areas include capital budgeting, trading, risk management, business planning and strategic/tactitcal bidding among others.