To Divest or not to Divest: A Meta‐Analysis of the Antecedents of Corporate Divestitures

Corporate divestitures have been identified as important strategic actions with a positive impact on firm performance. Yet, what is still missing in the strategic management literature is an integrative framework that quantitatively synthesizes the relative impact of various antecedents to divestitures, and theoretically reconciles the multitude of theories underlying divestiture research. To fill this gap, the author conducts a meta‐analysis (based on a sample of 35 studies) and develops four broad categories of determinants: corporate governance; firm strategy; performance; and industry environment. Evidence is found that divestitures are driven mainly by prior divestment experience, structural factors (firm size and firm diversification) and weak unit performance. In addition, the relative predictive validity of several theoretical perspectives on divestment decisions is assessed.     

基于企业属性的IT价值多维度研究

目前,业界对于IT为企业所带来的战略价值持有两种观点,一种观点认为,IT已经成为基础设施,是企业的一种纯技术工具,将不再为企业带来竞争优势,企业对于IT只需进行风险管理；另一种观点则认为IT仍然具有战略价值,对于提升企业竞争力仍具有推动作用。本文从组织管理的角度审视IT价值,结合企业特定的内部条件和外部环境探讨了IT带给企业的差异性,从行业、规模、组织结构、管理流程以及企业文化五个企业属性维度分析了IT对企业具有的不同战略价值,认为IT仍然是企业未来发展和提升竞争力的核心动力之一。     

The Alliance Experience Transfer Effect: The Case of Industry Convergence in the Telecommunications Equipment Industry

A central premise of the industry change literature is that firms change their strategic actions when an industry changes. Industry convergence (IC), the blending of boundaries between industries creating competition among firms that previously did not compete, is increasingly impacting many industries and is a salient case of industry change. Acquisitions are an important action shaping the course of IC because they trigger imitation and bandwagon effects further accelerating IC. This paper focuses on why and when learning from alliances reduces uncertainty resulting in acquisitions during IC: an ‘alliance experience transfer effect’. We demonstrate the utility of this mechanism for the substitution‐based form of IC that occurred between the telecommunications equipment and computer networking industries. Our key insight is that when the extent of IC is low there are significant transfer effects but, as the extent of IC increases, firms have access to an expanding volume and diversity of information sources that reduce uncertainty, thus weakening the transfer effect mechanism. We contribute to the alliance–acquisition relationship and learning literatures by demonstrating that the alliance experience transfer effect mechanism explains changes in firm strategic action (alliancing and acquiring) as the extent of IC changes. We also introduce a semi‐convergence perspective by directly measuring the extent of IC.     

基于路径依赖视角的我国MAH制度实施演化博弈分析

MAH制度是国际公认通行的药品上市审批制度,具有生产形式多样化、技术转让自由、节约市场资源以及提升政府行政监管质量等优点。2016年,我国在北京、上海等10个省（市）开展药品上市许可持有人制度（MAH）试点工作。本文根据我国药品上市制度变迁的路径依赖问题,构建演化博弈模型,分别对由药品研发机构、药品生产企业构成的内部制度变迁和由政府、消费者构成的外部制度变迁进行分析,深入研究博弈主体行为的演化路径。研究表明：内部制度和外部制度路径依赖是制约我国医药产业发展和新药研发动力不足的主要原因,药品上市内部制度变迁主要通过规模效应和适应性预期影响药品研发机构和药品生产企业,从而产生药品上市内部制度路径依赖;药品上市外部制度变迁主要通过学习效应和协调效应影响政府和消费者,从而产生药品上市外部制度路径依赖。在此基础上,运用Matlab数值分析对药品制度变迁过程中的最优稳定策略进行探讨,解释了我国MAH制度变迁过程中存在的路径依赖问题,为完善我国MAH制度、破除路径依赖提供了一定参考。     

Does vertical diversification create superior value? Evidence from the construction industry

The discussion of diversification discounts is one of the most controversial in corporate finance and strategic management. We are eager to reexamine this issue from the standpoint of vertical versus lateral diversification, and horizontal growth through construction industry M&A. We build on previous evidence of positive acquirer abnormal returns for vertical M&A, and we add new insight into stock return risk. Considering the high idiosyncratic risk levels of builders, we expect to find considerable informational content in systematic risk (beta) behavior, which has been neglected to date. In fact, we find that vertical M&A experience a negative asset beta shift, lateral M&A experience an increase in systematic risk, and only horizontal M&A exhibit no risk changes. Hence, our evidence on risk and previous evidence on return-induced wealth creation through vertical M&A shows that related industrial diversification is superior to unrelated—at least in the construction industry.     

Agency costs of free cash flow,internal capital markets and unrelated diversification

This paper investigates whether free cash flow arguments or the internal capital market perspective better explains diversification decisions. Based on a unique panel of hand-collected data from listed and unlisted Italian firms for the 1980–2010 time period, the results of this study generally reveal the predominant role of the internal capital market arguments. The benefits of unrelated diversification, which include the avoidance of costly external financing, outweigh its costs, which involve opportunistic problems. Although the literature suggests two distinct forces concurrently affect diversification decisions, in the Italian context, financial benefits appear to be the prevailing motivation for unrelated diversification decisions. Furthermore, the internal capital market argument has a strong effect on decisions to engage in unrelated diversification, particularly with respect to firms that are sensitive to financial constraints.     

基于二维矩阵的个体从成功和失败经历中学习的理论和实践研究

学习是个体实现可持续发展的动力。过去经历是个体学习的重要来源。从不同类型的经历中学习会产生不同的影响，也需要具备不同的条件。本文从实际现象和问题出发，从深入细致的视角，建立了一个由"内部-外部"和"成功-失败"两个维度组成的四种学习类型矩阵图，包括个体从内部成功经历中学习（LISE），个体从内部失败经历中学习（LIFE），个体从外部成功经历中学习（LESE）和个体从外部失败经历中学习（LEFE），希望帮助研究者以更加系统、全面且深入的视角分析不同类型的过去经历对学习有效性的影响及相关问题。基于对实际现象的观察，结合现有研究成果，本研究从两个方面推动组织学习领域的理论进步和发展。一方面，从目标和结果的视角，针对不同学习类型提炼出在学习中"建议采用的实践"和"建议避免的实践"，并结合"交通信号灯"的比喻对对上述"双标杆"加以形象说明，以此来提升学习成效。另一方面，基于文献梳理和实践总结提出，为了避免不良效果，取得好的学习成效，在进行每类学习时，都需具备一定的"内在"条件和"外在"条件，并指出这不仅意味着要有知识、经验等智力储备，即具备"认知"条件，还需有情感、意愿等动机，即具备"动力"条件。最后，希望本研究对从成功、失败经历中学习理论和实践问题的讨论能够为认识和理解相关问题提供系统、完整的理论框架，并为组织学习研究的精细化发展提供启发。     

Investment in Facility Changeover Flexibility for Early Entry into High‐Tech Markets

A model is introduced to analyze the manufacturing‐marketing interface for a firm in a high‐tech industry that produces a series of high‐volume products with short product life cycles on a single facility. The one‐time strategic decision regarding the firm's investment in changeover flexibility establishes the link between market opportunities and manufacturing capabilities. Specifically, the optimal changeover flexibility decision is determined in the context of the firm's market entry strategy for successive product generations, the changeover cost between generations, and the production efficiency of the facility. Moreover, the dynamic pricing policy for each product generation is obtained as a function of the firm's market entry strategy and manufacturing efficiency. Our findings provide insights linking internal manufacturing capabilities with external market forces for the high‐tech and high‐volume manufacturer of products with short life cycles. We show the impact of manufacturing efficiency and a firm's ability to benefit from volume‐based learning on the dynamic pricing policy for each product generation. The results demonstrate the benefits realized by a firm that works with its manufacturing equipment suppliers to develop more efficient and flexible technology. In addition, we explore how opportunities afforded by pioneer advantage enable a firm operating a less efficient facility to realize long term competitive advantage by deploying an earlier market entry strategy.     

Toward a Differentiated Understanding of the Value‐Creation Chain

The conventional view of the value‐creation chain suggests offering high‐value propositions at the product level (in terms of benefits provided by elements of the product) to attain high‐value perceptions at the customer level, which should ultimately result in high‐value appropriation at the firm level (i.e. relationship, volume, pricing and financial success). This study challenges this view and provides a differentiated understanding of the value‐creation chain. With a multi‐industry sample of 339 companies and a sample of 626 customers to validate managerial assessments, the authors apply a configurational approach to identify whether and to what extent offering high‐value propositions at the product level is necessary or sufficient for achieving superior value perceptions at the customer level and high‐value appropriation at the firm level. Taking into account the company‐internal and company‐external environment of the value‐creation chain, the study identifies seven value‐creation chain constellations.     

Shades of gray: effect of external work arrangements on firm performance under operational and strategic contingencies

This study builds on recent research on the external workforce by examining the effects of (1) temporary work (2) independent contracting, and (3) consulting on firm performance, considering the client firms’ tasks, the qualification requirements for carrying out these tasks, and its strategic context. The findings are based on a survey of 261 firms in the German manufacturing industry. At the operational level, the results indicate that the difficulty of the tasks to be performed by external workers influences their performance. Whilst temporary work and consulting are better suited for simple tasks with low qualification requirements, independent contracting increases firm performance when appointing individuals to perform complex tasks. At the strategic level we research effects by two strategic orientations; one generally increasing the internal innovation performance (innovation orientation), the other generally increasing the performance of external relationships (alliance orientation). The innovation orientation here reduces the negative effect of temporary work, whereas a high alliance orientation precipitates a positive effect of consulting on firm performance. This paper demonstrates that clients’ task requirements and their alignment towards innovation and alliances have a significant influence on the benefits to the firm conveyed by highly qualified externals.     

The SERVICE Framework: A Public‐service‐dominant Approach to Sustainable Public Services

In this paper we argue that the new public management has been a flawed paradigm for public services delivery that has produced very internally efficient but externally ineffective public service organizations. Subsequently we develop the SERVICE framework for sustainable public services and public service organizations. This framework is rooted within the public‐service‐dominant business logic and emphasizes the need for a focus on external value creation rather than internal efficiency alone.     

Learning and Organization in the Knowledge‐Based Information Economy: Initial Findings from a Participatory Action Research Case Study

This paper reports on an ongoing, multiphase, project‐based action learning and research project. In particular, it summarizes some aspects of the learning climate and outcomes for a case‐study company in the software industry. Using a participatory action research approach, the learning company framework developed by Pedler et al. (1997) is used to initiate critical reflection in the company at three levels: managing director, senior management team and technical and professional staff. As such, this is one of the first systematic attempts to apply this framework to the entire organization and to a company in the knowledge‐based learning economy. Two sets of issues are of general concern to the company: internal issues surrounding the company's reward and recognition policies and practices and the provision of accounting and control information in a business‐relevant way to all levels of staff; and external issues concerning the extent to which the company and its members actively learn from other companies and effectively capture, disseminate and use information accessed by staff in boundary‐spanning roles. The paper concludes with some illustrations of changes being introduced by the company as a result of the feedback on and discussion of these issues.     

Knowledge Management Using Information Technology: Determinants of Short‐Term Impact on Firm Value*

The importance of knowledge management (KM) processes for organizational performance is now well recognized. Seeking to better understand the short‐term impact of KM on firm value, this article focuses on public announcements of information technology (IT)‐based KM efforts, and uses cumulative abnormal return (CAR) associated with an announcement as the dependent variable. This article employs a contingency approach, arguing that the KM announcement would have a positive short‐term impact on firm value in some conditions but not in others. Thus, it pursues the following research question: What are the effects of contextual factors on the CAR associated with the announcement of an IT‐based KM effort? Specific hypotheses are proposed based on information‐processing theory, organizational learning theory, the knowledge‐based theory of the firm, and the theory of knowledge creation. These hypotheses link CARs to alignment between industry innovativeness and the KM process, alignment between firm efficiency and the KM process, firm‐specific instability, and firm diversification. The empirical study utilizes secondary data on 89 KM announcements from 1995 to 2002. The results largely support the hypotheses. Overall, this article provides empirical support for the theory‐based arguments, and helps develop a contingency framework of the effectiveness of KM efforts.     

Service diversification and growth of professional service firms

This study investigates the impact of service diversification on the rate and mode of firm growth in professional service firms (PSFs). Drawing on the extant PSF literature, we identify differing views regarding the growth impact of service diversification. Specifically, some scholars suggest that the external client benefits associated with service diversification should allow PSFs to expand revenues at a rapid pace and pursue less merger and acquisition activity, whereas others imply that increased diversification can cause internal challenges with respect to learning costs, coordination and innovation that can limit the rate of revenue growth and encourage more mergers and acquisitions. We test these competing views using longitudinal data on 137 accounting firms and cross-sectional data on 125 law firms and find that service diversification is negatively associated with the rate of firm revenue growth and positively associated with the use of mergers and acquisitions.     

学习能力与企业绩效:知识资源是中介变量吗

基于知识观和组织学习理论,本文就以下问题展开研究:其一,探讨学习能力与企业绩效之间的关系;其二,将知识资源视为影响学习能力与企业绩效的中介变量,探讨三者之间的关系;其三,考察组织内、外部学习能力对企业绩效的不同作用路径.研究结果发现,知识资源在内部学习能力与企业绩效之间扮演着部分中介的角色;而在外部学习能力与绩效之间扮演着完全中介的角色.本项研究较为深入地揭示了学习能力、知识资源与绩效之间的关系.     

Choosing a diversification project in a regulated economy

Choosing a diversification project in a regulated economy involves consideration of a large number of micro and macro issues. In order to make an optimal choice of strategy, a formal approach to diversification planning is necessary. This article develops an approach which aims at breaking up the problem of identification and selection of projects into manageable components. The approach involves three steps: identification of broad industry groups: identification of specific projects within each broad industry group; and comprehensive feasibility study. The major benefit of this approach lies in providing a systematic mechanism for reducing the number of alternatives and in recognizing the link between the internal management processes of strategy formulation with the political and administrative processes in government and regulatory bodies. The article is based largely on the Indian experience.     

Technological revolutions and the formation of strategic groups

Technological revolutions transform the dominant geographical market scope of industry and have a corresponding effect on the formation of strategic groups. Large-scale dedicated processes facilitate the formation of producers with a large national scope competing with centralized production capacities, while small-scale flexible processes lead to the formation of strategic groups with medium-size manufacturers competing with a narrower regional market scope and decentralized production capacities. The diffusion of radically new technological changes has a significant impact on the configuration of strategic groups in industry. Changing the nature of the barrier to mobility could facilitate or impedes the formation of strategic groups with specific positioning in the industry in terms of production scale, degree of vertical integration and product diversification.     

Strategic Network Orchestration in Emerging Markets: China's Catch‐up in the High‐Speed Train Industry

Transitioning from catch‐up in production to catch‐up in innovation capabilities is essential to emerging market firms (EMFs) achieving internationalization and a competitive advantage. While some EMFs are now positioned among the world's most advanced firms, many struggle to become independent innovators. Thus, understanding how EMFs can develop internal absorptive capacity and progress towards catching up in innovation capabilities remains important. Our study seizes this research opportunity and develops a network‐based explanation of catch‐up, which complements existing technological and organizational explanations. Specifically, we address the question of ‘How does the orchestration of collaborative networks enable EMFs to catch up in production and innovation capabilities?’ by describing an important yet under‐researched process of strategic network orchestration and showcasing the dynamic interdependencies between network orchestration and organizational learning. Our study provides a detailed account of Chinese high‐speed train (HST) development from 1990 to 2020 and opens the possibility for future research on network orchestration in emerging market contexts. This provides EMF managers with a set of actionable network orchestration mechanisms that can be used when designing and purposefully managing their strategic nets of domestic and foreign partners.     

Following the Herd or Not?: Patterns of Renewal in the Netherlands and the UK

How do large firms conduct their strategic renewal journeys in an increasingly turbulent environment? Are there generic industry patterns, or are these renewal journeys country- or firm-specific? To answer these questions, we examine the relative incidence of external versus internal and explorative versus exploitative renewal actions, and their speed, in leading Dutch and UK financial service companies using longitudinal data. The context, content and process dimensions of strategic renewal are distinguished, and research questions about these attributes are formulated and investigated using new metrics. Findings show that while exploration/exploitation ratios are fairly similar for firms across the entire industry, systematic differences are evident between the external/internal renewal ratios of Dutch and UK firms, and that speed of renewal is largely determined at the firm level. Thus we find that industry-, country- and firm-specific factors all influence journeys of strategic renewal in distinctive and complementary ways.     

An Analysis of Strategic Determinants,Learning and Decision‐Making in Sino‐British Joint Ventures

This paper examines how partners’ strategic objectives, inputs and competencies affect the learning they achieve in joint ventures and their ability to influence decision‐making in such ventures. Quantitative and qualitative research in 20 Sino‐British joint ventures permits an investigation of these factors for both British and Chinese joint venture partners. Findings indicate that the transfer by British partners of technology and managerial expertise to joint ventures enhances their ability to achieve their strategic objectives by influencing decisions in such ventures. The learning achieved by British partners depends on their commitment of strategic inputs to joint ventures and is therefore associated with their influence. The case of Chinese partners is different, because they look to learn from the knowledge and resource inputs provided by the British partners. They therefore rely more on legal ownership rights to retain an influence over joint venture decision‐making. The achievement of Chinese partners’ strategic objectives depends more critically on the quality of the partnership itself.