International Institute for Management Development

status: Published

The authors advance a conceptual model of channel member satisfaction that distinguishes between economic and noneconomic satisfaction. The resulting model then is tested using meta-analysis. Meta-...

Abstract The purpose of this study is to examine the relationship between innovativeness, quality, growth, profitability, and market value at the firm level. Building on concepts from a resource‐based view of a firm and organizational learning, innovation and quality literature, we propose the innovativeness–quality–performance model, which describes how a firm's capability to balance innovativeness with quality drives growth and profitability, and in turn drives superior market value. Results of structural equation models indicate that (1) innovativeness mediates the relationship between quality and growth, (2) quality mediates the relationship between innovativeness and profitability, (3) both innovativeness and quality have mediation effects on market value, and (4) both growth and profitability have mediation effects on market value. Implications for theories and practices are discussed. Copyright © 2005 John Wiley & Sons, Ltd.

We assessed the relationships of environmental policy and supervisory support behaviors to employee environmental initiatives in leading-edge companies. We developed a behaviorally anchored rating ...

Abstract Resource‐based theory maintains that intrinsic characteristics of resources and capabilities, such as their tacitness, complexity, and specificity, prevent imitation and thereby prolong exceptional performance. There is little direct evidence to verify these claims, yet a substantial literature encourages firms to formulate competitive strategies around resources with these attributes. Further, work outside the resource‐based tradition suggests that these attributes can slow innovation, and it is not clear when this effect outweighs the benefits of inimitability. This paper seeks to clarify whether and how the complexity, tacitness, and specificity of a firm's knowledge affect the persistence of its performance advantages. We find that the complexity and tacitness of technological knowledge are useful for defending a firm's major product improvements from imitation, but not for protecting its minor improvements. The design specificity of technological knowledge delayed imitation of minor improvements in this study. Copyright © 2002 John Wiley & Sons, Ltd.

This article examines key success factors for designing and delivering combinations of goods and services (i.e., hybrid offerings) in business markets. Goods manufacturers, unlike pure service providers, find themselves in a unique position to grow revenues through hybrid offerings but must learn how to leverage unique resources and build distinctive capabilities. Using case studies and depth interviews with senior executives in manufacturing companies, the authors develop a resource–capability framework as a basis for research and practice. Executives identify four critical resources: (1) product usage and process data derived from the firm's installed base of physical goods, (2) product development and manufacturing assets, (3) an experienced product sales force and distribution network, and (4) a field service organization. In leveraging these specific resources, successful firms build five critical capabilities: (1) service-related data processing and interpretation capability, (2) execution risk assessment and mitigation capability, (3) design-to-service capability, (4) hybrid offering sales capability, and (5) hybrid offering deployment capability. These capabilities influence manufacturers’ positional advantage in two directions: differentiation and cost leadership. The authors propose a new typology of industrial services and discuss how resources and capabilities affect success across categories of hybrid offers.

Channels research has consistently argued that asymmetric channel relationships are more dysfunctional than those characterized by symmetric interdependence. The authors propose that the degree of both interdependence asymmetry and total interdependence affect the level of interfirm conflict, trust, and commitment. Using survey data from automobile dealers, they demonstrate that, with increasing interdependence asymmetry, the dealer's trust in and commitment to the supplier decline while interfirm conflict increases. In addition, they demonstrate that relationships with greater total interdependence exhibit higher trust, stronger commitment, and lower conflict than relationships with lower interdependence. The effects on conflict are consistent with those predicted by bilateral deterrence theory, and the effects on trust and commitment are in accord with the authors’ bilateral convergence predictions.

The UN COP26 2021 conference on climate change offers the chance for world leaders to take action and make urgent and meaningful commitments to reducing emissions and limit global temperatures to 1.5 °C above pre-industrial levels by 2050. Whilst the political aspects and subsequent ramifications of these fundamental and critical decisions cannot be underestimated, there exists a technical perspective where digital and IS technology has a role to play in the monitoring of potential solutions, but also an integral element of climate change solutions. We explore these aspects in this editorial article, offering a comprehensive opinion based insight to a multitude of diverse viewpoints that look at the many challenges through a technology lens. It is widely recognized that technology in all its forms, is an important and integral element of the solution, but industry and wider society also view technology as being part of the problem. Increasingly, researchers are referencing the importance of responsible digitalization to eliminate the significant levels of e-waste. The reality is that technology is an integral component of the global efforts to get to net zero, however, its adoption requires pragmatic tradeoffs as we transition from current behaviors to a more climate friendly society.

Abstract Two prescriptions dominate the topic of what firms should do next in uncertain situations: planning approaches and adaptive approaches. These differ primarily on the appropriate role of prediction in the decision process. Prediction is a central issue in strategy making owing to the presumption that what can be predicted can be controlled. In this paper we argue for the independence of prediction and control. This implies that the pursuit of successful outcomes can occur through control‐oriented approaches that may essentially be non‐predictive. We further develop and highlight control‐oriented approaches with particular emphasis on the question of what organizations should do next. We also explore how these approaches may impact the costs and risks of firm strategies as well as the firm's continual efforts to innovate. Copyright © 2006 John Wiley & Sons, Ltd.

Abstract Relatively few studies have examined the importance of an entry's sequential position to the choice of foreign entry mode. We use a dynamic model to analyze sequential entries into the United States from 1975 to 1992. Our findings show that several independent variables which explain a firm's initial mode of entry do not explain the modes of subsequent entries. These findings underscore the importance of experience in foreign investment, as companies learn from early entries and adapt the modes of subsequent ones. Copyright © 2001 John Wiley & Sons, Ltd.

The Technology Acceptance Model (TAM) has received considerable research attention in the IS field over the past decade, placing an emphasis on the roles played by perceived ease-of-use and perceived usefulness in influencing technology adoption decisions. Meanwhile, alternative sets of antecedents to adoption have received less attention. In this paper, sets of antecedent constructs drawn from both TAM and the Perceived Characteristics of Innovating (PCI) inventory are tested and subsequently compared with one another. The comparison is done in the context of a large-scale market trial of a smart card-based electronic payment system being evaluated by a group of retailers and merchants. The PCI set of antecedents explains substantially more variance than does TAM, while also providing managers with more detailed information regarding the antecedents driving technology innovation adoption.

This article examines key success factors for designing and delivering combinations of goods and services (i.e., hybrid offerings) in business markets. Goods manufacturers, unlike pure service providers, find themselves in a unique position to grow revenues through hybrid offerings but must learn how to leverage unique resources and build distinctive capabilities. Using case studies and depth interviews with senior executives in manufacturing companies, the authors develop a resource–capability framework as a basis for research and practice. Executives identify four critical resources: (1) product usage and process data derived from the firm's installed base of physical goods, (2) product development and manufacturing assets, (3) an experienced product sales force and distribution network, and (4) a field service organization. In leveraging these specific resources, successful firms build five critical capabilities: (1) service-related data processing and interpretation capability, (2) execution risk assessment and mitigation capability, (3) design-to-service capability, (4) hybrid offering sales capability, and (5) hybrid offering deployment capability. These capabilities influence manufacturers’ positional advantage in two directions: differentiation and cost leadership. The authors propose a new typology of industrial services and discuss how resources and capabilities affect success across categories of hybrid offers.

Abstract A framework is proposed to characterize the different roles that subsidiaries of multinational corporations (MNCs) can play within the firm's overall strategy. The framework is then applied to a sample of 50 Spanish subsidiaries of MNCs. These are found to be pursuing strategies consistent with the framework. At the same time, a strategic evolution is detected towards a closer integration of the subsidiaries with their parent group. It is hypothesized that changes in the Spanish sociopolitical context, especially the country's entry into the European Economic Community, are fueling that process of strategic change.

This paper examines the link between organizational culture and effectiveness for foreign-owned firms operating in Russia. Beginning with a model of organizational culture developed in the United States, the paper presents a multimethod analysis of culture and effectiveness in a transition economy. We argue that effectiveness in Russia relies more on adaptability and flexibility than it does in the United States. Furthermore, the legacy of the Communist era forces firms in Russia to deal with a workforce with a unique time perspective and a unique set of subcultures that often undermine attempts at coordination and integration. We first explore these ideas using survey data on 179 foreign-owned firms operating in Russia and compare the results to those obtained for firms in the United States. We then present four case studies designed to ground the results in the Russian context, and to document cultural dynamics not captured by the model.

The benefits and drawbacks of diversity inside organizations have been the focus of attention for researchers and practitioners for several decades. In our article, we investigate the business case for racial diversity across different hierarchical levels. More precisely, we ask: How does racial diversity within organizations and its asymmetry across hierarchical levels affect their financial performance? From a sample of 143 US law firms from 2008 to 2012, we provide strong support for the business case and show that greater racial diversity for the entire organization is positively associated with firm financial performance. However, contrary to our initial expectations, the benefits of diversity are not more pronounced at the top of the organization, where its effects should arguably be more clearly observable. Diversity seems to have a similar effect across the three levels in law firms: associates, mid-level and partners. Furthermore, we find that the most profitable firms actually have their racial diversity heavily concentrated at the associate level. We discuss alternative explanations for this surprising finding and why the top-performing law firms have both overall higher degree of racial diversity and more concentration of its diversity at the lower level.

In virtually all marketing channel relationships, one of the parties eventually will engage in an action that another channel member considers potentially destructive for the relationship. How a particular channel member reacts to such an act has implications for the long-term viability and success of the relationship. On the basis of a large data set collected from both a focal supplier and its independent dealers, the authors classify dealers' responses to a supplier's destructive acts by extending the response typology of exit, voice, and loyalty, which is based on Hirschman's seminal writings on responses to decline in organizations and states. This study finds that dealers' reactions are influenced by several antecedent factors: perceived intensity of the supplier's destructive act, the attributions relative to the act, relationship quality before the act, and the level of interdependence between dealer and supplier. The results suggest that these more proximal dealer responses affect subsequent dealer performance and overall perceptions of relationship quality after an act. The authors draw several implications for both dealers and suppliers.

The construct of cultural intelligence, recently introduced to the management literature, has enormous potential in helping to explain effectiveness in cross cultural interactions. However, at present, no generally accepted definition or operationalization of this nascent construct exists. In this article, we develop a conceptualization of cultural intelligence that addresses a number of important limitations of previous definitions. We present a concise definition of cultural intelligence as a system of interacting abilities, describe how these elements interact to produce culturally intelligent behavior, and then identify measurement implications.

Purpose The purpose of this paper is to provide instructional guidance on how to increase validity and reduce subjectivity in qualitative studies, such as grounded theory. The paper also demonstrates how different techniques can help management research by including informants/managers in a time efficient way. Design/methodology/approach This paper describes how three complementary triangulation methods can be used for validation and exploration of concepts and themes in qualitative studies. Tree graphs, concept mapping, and member checking are applied in a managerial case study, complementing a conventional grounded theory approach. Findings The paper suggests that naturalistic inquiries, such as grounded theory and thematic analysis, can use mixed methods and multiple sources and coders in order to offset biases and to validate and sort findings. The case study presents three different perspectives on how an organization comprehends diversity as a strategic issue. Originality/value The paper suggests a mixed methods design that addresses some of the potential shortcomings often found in grounded theory and other qualitative studies, their theory development and their documentation of processes. It positions the approach over the range of the triangulation literature and it argues that it is important to be aware of different triangulation mindsets, and these they are not necessarily contradictory.

The authors advance a conceptual model of channel member satisfaction that distinguishes between economic and noneconomic satisfaction. The resulting model then is tested using meta-analysis. Meta-analysis enables the empirical investigation of a model involving several constructs that never have been examined simultaneously within an individual study. More specifically, the authors unify the stream of research on power use—the focus of many satisfaction studies in the 1970s and 1980s—with more recent work on trust and commitment, which usually explores antecedents other than power use. The results indicate that economic satisfaction and noneconomic satisfaction are distinct constructs with differential relationships to various antecedents and consequences. Furthermore, this study demonstrates that satisfaction is both conceptually and empirically separable from the related constructs of trust and commitment.

Abstract This research utilizes the framework of transaction cost economics (TCE) to develop an understanding of how firms manage the costs and risks of offshore outsourcing of professional services. This research examines the perspectives of eight organizations through interviews with 10 high‐ranking supply management executives. The paper first explores the rationale for offshore outsourcing among the organizations studied. Using the tenants of TCE, this paper postulates that fixed costs of establishing the relationship dominate the variable costs of day‐to‐day transactions, and that organizations will not offshore outsource areas where there is high perceived degree of unmanageable risk. The paper expands on themes provided by TCE and offers some lessons learned, and guidelines for managing and controlling offshore outsourced services relationships.