Amazon has invested over $10 billion into Texas since 2010. Photo via blog.aboutamazon.com

Amazon opens newest Tech Hub in Houston and plans to hire

It's 'zon

A year and a half after Houston was left off the list of 20 cities Amazon was pursuing for its second United States headquarters, the tech giant chose the Bayou City to house its 18th North American Tech Hub.

Amazon opened the doors of the hub on Friday, July 26, in 25,000-square-feet of space in CITYCENTRE, and the company has plans to hire to round out its team of 150 Amazon Web Services employees to work out of the hub.

"We're looking forward to becoming a bigger part of the Houston community," says Kris Satterthwaite, Gulf Coast enterprise sales leader of AWS, in a release. "Houston is a fantastic place to live and work, and has a strong local economy that we look forward to investing in and growing together."

The city of Houston, along with the Greater Houston Partnership, has worked to make Houston appealing to big business and tech giants, says Susan Davenport, senior vice president of economic development at the GHP.

"The expansion of Amazon's Houston workforce is indicative of a larger trend we are seeing of the major cloud players opting to locate their teams closer to their customers here in Houston," Davenport says in an email to InnovationMap. "Our energy, life sciences and manufacturing sectors are data-intensive, and this move makes a lot of sense. This is not the first, and I doubt it will be the last. A great portion of the digital tech industry's activity to this point has been focused on business-to-consumer, and is now shifting to business-to-business. Houston is largely a B2B city, so we stand to gain from this trend."

The Tech Hubs in North America have over 20,000 employees. Around 1,000 of those are from Amazon's Austin Tech Hub, which opened around four years ago and was recently announced to be in the process of expanding to include another 800 Austin employees, per the Wall Street Journal.

The company has invested $10 billion into Texas since 2010, according to the release, and Houston's diversity, universities, and quality of life were attractive to Amazon.

"Houston is such a culturally diverse city, with so many international companies based here," says Eddie Murray, global accounts lead, in a release. "We're excited to create great jobs and hire locally to boost the local economy while also giving back to the community through programs like Amazon Future Engineer."

The Amazon Future Engineer program is an initiative to help propel kids from under-served areas into careers in computer science. The program is in 35 Houston schools. Amazon also provided disaster relief aid after Hurricane Harvey in 2017.

"We have worked for the last couple of years to accelerate the growth of Houston's digital tech ecosystem, and we've got quite a bit of momentum with The Ion, TMC3, The Cannon, and so many others," Davenport adds. "The opening of Amazon's tech hub is another indicator of Houston's growing presence as an innovation-focused city."

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Rice University research shows the importance of coworker and leadership trust within businesses

Houston Voices

While U.S. soldiers battled in Vietnam, inside the White House, President Lyndon Johnson grew increasingly suspicious of those closest to him. The legendary political dealmaker now believed that any opposition to the war was part of a conspiracy against him; aides who questioned his policy might be part of it. According to research using newly available interviews and telephone transcripts, Johnson's distrust may have been triggered by the very experience of being in power.

But how, exactly? In a recent paper, Rice Business professor Marlon Mooijman and a team of colleagues delve deeply into the interaction of power and trust, seeking answers about when and why wielding power degrades leaders' belief in those around them.

The question has deep implications not only in politics, but also in business. "Managers must trust employees' willingness to comply with instructions and keep the company's best interest in mind," Mooijman notes. Without that trust, past research shows, workplace productivity, reciprocity and cooperation break down. Leaders who successfully craft trusting bonds with their coworkers and employees, on the other hand, are more effective than those who don't.

To learn why leaders might abandon that trust, Mooijman's team set up four studies. First, though, they had to establish a working definition of trust. Trust, they proposed, is the willingness to be vulnerable to another party's actions, based on the expectation that the other party will perform a specific action important to the truster — even without the truster's ability to monitor or control the activity. Essential to a trusting relationship: the expectation of the other party's goodwill, and the willingness to expose themselves to possible exploitation if that goodwill fails.

Whether you work in an indie coffee shop or a giant software company, most workers can name a leader who lacks that kind of trust. Many also have had the good luck of a leader who isn't lacking in that department. The difference between such managers, Mooijman's team found, may be the stability of their power.

There are plenty of reasons for wanting to keep power, obviously. In relationships, power holders are able to disregard others' wishes and pursue their own. Within the individual, power boosts self-esteem and encourages behaviors such as expressing amusement and happiness. Less obvious, however, is the effect of fearing a loss of power. Leaders whose power feels unstable experience this physically, with changes in heart rate and blood pressure. They have a heightened awareness of colleagues they perceive as threats, and are more prone to divide coworkers and disrupt their alliances.

When power holders or leaders perceive their power to be unstable, it's that prospect of power loss that erodes their trust in those around them, even helpful and often unsuspecting colleagues. So strong is this effect that it occurs even when the loss of power comes with an economic benefit, Mooijman notes. "Unstable power decreases trust," the team found, "regardless of whether we provided participants with a justification of their unstable position."

To reach their conclusions, Mooijman's team first surveyed 206 participants assembled through Amazon's Mechanical Turk software. Each participant was randomly assigned a power ranking (high or low) and asked to imagine being a VP of sales at a mid-sized firm. Some were told that as part of a productivity initiative they would be reassigned to other divisions. The participants were then asked to rank their perception of their power at their firm and their perception of their job stability there. Regardless of whether their job reassignment was explained or not, the researchers found, the participants who perceived their jobs — that is, their power — to be unstable showed more mistrust of their coworkers.

A final study, a field experiment with real life managers and subordinates, reinforced these findings. Managers in positions of relatively high power who perceived their jobs were unstable were more prone to voice distrust about their subordinates.

While instability is built into political careers, Mooijman's findings have practical implications in other industries. For example, the common practice of moving workers between departments, meant to build insight and productivity, may backfire. Instead of strengthening team spirit, the strategy will likely foment distrust. Similarly, at high levels of power, emphasizing job instability with tactics such as high-stakes, winner-take-all performance metrics might be counterproductive.

Power doesn't always erode trust, the researchers found. Leaders who felt their power was secure didn't show the same level of suspicion as those who felt their roles were insecure. But when power seems fragile, the research revealed, even the most seasoned leaders are prone to abandon trust in their colleagues and see work as a battlefield.

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This story originally ran on Rice Business Wisdom.

Marlon Mooijman is an assistant professor in the management department (organizational behavior division) at Jones Graduate School of Business at Rice University.

Here were Houston's top 5 fundraising stories in 2019

2019 IN REVIEW

Editor's note: As 2019 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. When it came to the money raised in Houston, five stories of new funds and closed rounds trended among readers.

These 7 Houston startups closed millions in funding in September

Seven Houston startups are beginning October with fresh funding. Photo by Tim Leviston/Getty Images

September was a busy month for several Houston startups. Seven companies closed rounds throughout the month and are now beginning the fourth quarter of 2019 with fresh funds.

InnovationMap has rounded up these seven deals based on previous stories as well as new information. Scroll through to see which Houston startups are catching the eyes — and cashing the checks — of investors. To continue reading this top story, click here.

3 TMCx companies have raised funds while completing the Houston accelerator

Three companies in TMCx's current cohort are leaving the program with new funds. Courtesy of TMCx

The Texas Medical Center's accelerator program is wrapping up its Digital Health cohort this week with the culmination of its TMCx Demo Day, and, while all of the companies have something to celebrate, three have announced that they are leaving the program with fresh funds.

Meru, Roundtrip, and Sani Nudge have raised over $10 million between the three companies. All three will be presenting at the TMCx Digital Health Demo Day on June 6 with the 16 other companies in the cohort. To continue reading this top story, click here.

5 Houston startups beginning 2019 with new capital

These five companies are starting 2019 out with some cash, and here's what they plan on doing with it. Getty Images

Finding growing Houston startups is as easy as following the money, and a few local companies are starting 2019 strong with a recent round of funding closed. InnovationMap has rounded up a few recent raises to highlight heading into the new year. To continue reading this top story, click here.

Exclusive: Houston-based stadium ordering app closes near $1.3 million Seed round with plans to scale

Houston-based sEATz has closed a funding round and plans to reach more fans than ever this football season. Courtesy of sEATz

Fans across the country are headed to football stadiums this weekend to cheer on their teams, but only a few will have the luxury of ordering food, beer, and even merchandise from the comfort of their seats.

Houston-based sEATz has created a platform where fans can order just about anything their stadium has from an app. Much like any other ordering app, once the order is placed, a runner will pick up the food and deliver it to the customer for a small fee and a tip.

The startup is now preparing to scale up from seven venues to 10 before the year is over as well as launching a new version of the app thanks to an oversubscribed near $1.3 million Seed round led by Houston-based Valedor Partners. Houston-based Starboard Star Venture Capital also contributed to the round. SEATz has plans to launch its Series A round before the new year. To continue reading this top story, click here.

Female-led venture capital firm launches in Houston to move the needle on investment in women-owned companies

A new venture capital firm launched in Houston to focus on female-led startups. Courtesy of The Artemis Fund

Three powerhouse investment minds have teamed up to launch a female-focused seed and series A venture capital firm in Houston.

In its first $20 million fund, The Artemis Fund will invest in around 30 women-led companies, and will award a $100,000 investment prize at the Rice Business Plan Competition, which takes place April 4 through 6. According to the company's press release, The Artemis Fund is the first of its kind — being female-led and female-focused — in Houston.

"There is a wealth of female leadership in the Houston innovation ecosystem, and we would like to see the same representation in the investor the investor community to help female founders thrive," says Stephanie Campbell, co-founder and principal of The Artemis Fund. To continue reading this top story, click here.


Houstonians have access to ordering liquor at their fingertips — thanks to a new Texas law

There's an app for that

It's about to be a lot easier to order your favorite handle of booze straight to your door, thanks to new legislation. The Texas Alcoholic Beverage Commission just began accepting applications for permits enabling services like Favor and Instacart to bring alcohol to your home.

In June, Governor Greg Abbott signed legislation that widens the door for liquor delivery across the Lone Star State. Any third-party company seeking to launch the service can now obtain a so-called consumer delivery permit from TABC. Chris Porter, a TABC spokesman, tells CultureMap that the first permits should be issued during the third week of December — just in time for Christmas Day and New Year's Eve parties.

In a December 5 news release, TABC executive director Bentley Nettles says this law is "an important step forward for Texas consumers, as well as alcohol retailers. For years, Texans across the state have relied on third-party services to deliver everything from clothing to vehicles. Now, at long last, alcohol can be delivered as well."

Before enactment of the law, certain businesses like liquor stores could distribute beer, wine, and liquor in Texas to homes and businesses. But through this year's legislative update, third-party companies now will be permitted to pick up beer, wine, and liquor from a state-licensed retailer such as a bar, restaurant, or liquor store and then take it to customers — either as solo purchases or along with food orders.

"We primarily see this as appealing to third-party delivery services," Porter says. "There are laws on the books which became effective in September that allow restaurants with the proper permit to deliver alcohol along with food on their own. Of course, if these businesses opt instead to contract that delivery to a third party, then the third party would need the new consumer delivery permit."

The new law mandates that drivers and booze buyers be at least 21 years old, which is the legal age for alcohol consumption in Texas.

Among the businesses and organizations that backed the legislation are San Antonio grocery chain H-E-B, which owns the Austin-based Favor delivery app; Instacart; the Houston-based Landry's restaurant conglomerate; e-commerce giant Amazon; TechNet; the Texas Restaurant Association; Beer Alliance of Texas; Wholesale Beer Distributors of Texas; and the California-based Wine Institute.

"This law will allow more businesses to take advantage of on-demand delivery apps that enable them to reach more customers, while ensuring deliveries of alcohol are carried out safely and responsibly," David Edmonson, TechNet's executive director for Texas and the Southeast, said in a June news release.

The Texas Restaurant Association applauds the law as a way for restaurants to better compete in the on-demand economy.

"With customers increasingly craving convenience, and hotels, grocery stores, and package stores already permitted to allow alcohol to be taken or delivered off the premises, this legislation [levels] the playing field for restaurants," the association says in a statement.

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This article originally ran on CultureMap.