Economies of Scope through Multi‐unit Skill Systems: The Organization of Large Design Firms

From a study of three large design firms in Italy, the UK and the USA, we derive a distinct model of how large knowledge‐intensive business services (KIBS) firms organize to manage growth and realize economies in ways that differ from the organizational techniques that are familiar from scale and scope studies of large manufacturing enterprises. Case studies were compiled from interviews conducted at the three firms. Large design firms were selected as a contrasting context to Chandlerian manufacturing firms. Design firms were expected to differ from manufacturing firms in terms of strategy, organization and the overall possibilities of achieving economies of scale and scope. Our results show that competitive advantage of these large KIBS design firms derives from a particular multi‐unit skill system that enables the firms to exploit economies of scope. There are four distinctive organizational features of such KIBS firms. First, multiple business units within the firm play a dual role. These are able both to engage in inter‐unit coordination and resource sharing and to attract business independently, often with heterogeneous business models among units. Second, these firms develop formal organizational routines for involving multiple business units in client projects, thus facilitating the migration of clients' business from one unit to another. Third, there is an important role for cross‐unit strategic ‘insight’ agents. Fourth, these firms expand through the founding of specialized, even idiosyncratic, new business units (often with the important role of mastering new technological skills).     

Microfoundations of Small Business Tax Behaviour: A Capability Perspective

Small business tax behaviour has received surprisingly little attention. We argue that an organizational capability perspective using microfoundations will allow us to better understand the relationships between different drivers and the dynamics of small business tax behaviour. This study draws on in‐depth interviews with 42 small business owners who are matched with the firms’ factual tax compliance status. Using grounded theory, we build a framework that (a) identifies different microfoundations of small business capability to manage tax and (b) explains the dynamic nature of the relationship between organizational capability and compliance. Findings suggest that high capability does not necessarily translate into high tax compliance and this relationship is mediated by the owner‐managers’ perceptions of taxation as well changes in the economic and regulatory environment.     

Business Groups as Hierarchical Clique Structures: A Conceptual and Methodological Discussion as it applies to the Mexican Experience

The hierarchically nested set of business groups that result from 110 Mexican firms sharing corporate directors (i.e. interlocking directors) is analysed using social network tools. It is argued that these groupings are one of the many dimensions that should be employed to understand the complex nature of ‘business groups’ broadly understood. The hypothesis that business groups are responses ‘to market failures that arise in the particular institutional contexts of emerging economies’ (Khanna and Rivkin, Strategic Management Journal, 22 (2001), p. 46) is tested using the groups constructed from data on interlocking directorates. The results show that as firms belong to more of the same sets of groups, their financial performance tends to be more similar, thus supporting the idea that ‘groups can make up for under‐developed institutions, thereby reducing transaction costs’ (Khanna and Yafeh, Journal of Economic Literature, 45 (2007), pp. 340–341).     

Realizing Benefits from Enterprise Resource Planning: Does Strategic Focus Matter?

A key driver of the recent wave of enterprise resource planning (ERP) implementations was the assumption that the integration of business information would provide firms with a competitive advantage, yet concrete business benefits have been uneven across adopting firms. A possible explanation is that although the resource‐based view holds that competitive advantage is derived from inimitable resources, ERP software has become a commodity. Socio‐technical theory suggests that internal organizational resources based on a foundation of ERP technology may be the true drivers of ERP benefits. A firm's strategic configuration is posited to influence the portfolio of organizational competencies available to leverage the benefits of integrated business information, and a number of hypotheses are developed based on the notion that firms with different strategic objectives will realize different operational benefits from the adoption of ERP systems. Survey data from North American manufacturing firms that have implemented ERP systems demonstrate that ERP adopters seeking operational performance improvements are likely to realize these benefits. On the other hand, those seeking external market and supply chain performance improvements must first establish a foundation of internal operational performance improvements before customer satisfaction and supply chain benefits can be realized.     

Maternity Management in SMEs: A Transdisciplinary Review and Research Agenda

This paper provides a transdisciplinary critical review of the literature on maternity management in small and medium‐sized enterprises (SMEs), embedded within the wider literatures on maternity in the workplace. The key objectives are to describe what is known about the relations that shape maternity management in smaller workplaces and to identify research directions to enhance this knowledge. The review is guided by theory of organizational gendering and small business management, conceptualizing adaptions to maternity as a process of mutual adjustment and dynamic capability within smaller firms’ informally negotiated order, resource endowments and wider labour and product/service markets. A context‐sensitive lens is also applied. The review highlights the complex range of processes involved in SME maternity management and identifies major research gaps in relation to pregnancy, maternity leave and the return to work (family‐friendly working and breastfeeding) in these contexts. This blind spot is surprising, as SMEs employ the majority of women worldwide. A detailed agenda for future research is outlined, building on the gaps identified by the review and founded on renewed theoretical direction.     

How Does Performance Management Affect Workers? Beyond Human Resource Management and Its Critique

While performance management (PM) is pervasive across contemporary workplaces, extant research into how performance management affects workers is often indirect or scattered across disciplinary silos. This paper reviews and synthesizes this research, identifies key gaps and explores ‘recognition theory’ as a nascent framework that can further develop this important body of knowledge. The paper develops in three main stages. The first stage reviews ‘mainstream’ human resource management (HRM) research. While this research analyses workers’ reactions to performance management in some depth, its focus on serving organizational goals marginalizes extra‐organizational impacts. The second stage reviews more critical HRM research, which interprets performance management as a disciplinary, coercive or inequitable management device. While this literature adds an important focus on organizational power, there is scope to analyse further how PM affects workers’ well‐being. To develop this strand of PM research, the third stage turns to the emerging field of recognition theory independently developed by Axel Honneth and Christophe Dejours. The authors focus especially on recognition theory's exploration of how (in)adequate acknowledgement of workers’ contributions can significantly affect their well‐being at the level of self‐conception. Although recognition theory is inherently critical, the paper argues that it can advance both mainstream and critical performance management research, and also inform broader inquiry into recognition and identity at work.     

From Entrepreneurial Orientation and Learning Orientation to Business Performance: Analysing the Mediating Role of Organizational Learning and the Moderating Effects of Organizational Size

Following the organizational learning theory and the knowledge‐based view approach, this contribution aims to study the influence of entrepreneurial orientation and learning orientation on organizational learning, considering the latter as a mediating variable in the relationships between both antecedent cultural values and business performance. We also analyse the moderating role of organizational size on these previous relationships. The hypotheses proposed in our research model are tested on a sample of 140 Spanish industrial companies, applying variance‐based structural equation modelling: partial least squares. In order to assess the moderating effects of organizational size, we adopt a multi‐group approach using two subsamples with large firms and small and medium‐sized enterprises (SMEs). Our findings indicate that organizational learning partially mediates the relationship between entrepreneurial orientation and performance and fully mediates the link between learning orientation and performance. Likewise, the results reveal that the relationship established between entrepreneurial orientation and organizational learning is more intense for the group of large firms than for the group of SMEs. Moreover, the influence of learning orientation on organizational learning is greater in SMEs than in large firms.     

Asian Family Firms through Corporate Governance and Institutions: A Systematic Review of the Literature and Agenda for Future Research

Although the corporate governance model of Asian family firms has recently gained increased attention, it remains unclear how these firms’ corporate governance mechanisms (and their effectiveness) differ from those of family firms in the western world. Drawing upon a comparative institutional perspective, this paper systematically reviews 148 published articles in peer‐reviewed journals from 1980 to 2015. The aim of this paper is to contribute to the understanding of institutional complementarities that constitute informal governance mechanisms adopted by Asian family firms by considering a wider set of institutional factors (i.e. political environment, cultural values and social norms) embedded in the Asian context. The main findings suggest that: (i) given the lack of market‐supporting institutions and the presence of strong political control over Asian economies, family firms tend to cultivate political connections to respond to the failure of legal systems; (ii) Asian family firms still rely heavily on personal networks (e.g. guanxi) to reduce uncertainty, strengthen business ties, and gain access to external resources; and (iii) cultural values and social norms (e.g. ‘face’ saving, reputational concerns and adult child adoption) lead to functionally equivalent corporate governance mechanisms in Asian family firms. The downstream effects of such mechanisms are also discussed, and future research avenues are identified.     

Discovering and Managing Interdependence with Customer‐Entrepreneurs

Research on inter‐organizational relationships has largely focused on the interdependence between formal organizations. In recent years, firms have encountered a new logic in which interdependent parties are not formal organizations but platform‐based ‘customer‐entrepreneurs’ that create value through illegal means. Drawing on a 5‐year‐long qualitative study, we examine how firms recognize and instantiate this new logic and, consequently, respond to their interdependencies with customer‐entrepreneurs. Viewed through the lens of institutional logic, we find that, with the benefit of hindsight, firms recognize the existence of the logic of customer entrepreneurship, which triggers organizational sensemaking that is made up of three elements: interpretation of legitimacy compatibility; interpretation of efficiency compatibility; and integration of stakeholder perspectives. This sensemaking results in either a determined account concluding on the compatibility calculus in a top‐down manner, or an open‐ended account avoiding the construction of a resolute, synthesized view. A determined account leads to a defiance strategy, by which firms attempt to remove the source of interdependencies with customer‐entrepreneurs, whereas an open‐ended account guides firms to espouse a decoupling strategy, whereby firms covertly resort to efficiency maximization enabled by the interdependence. Our results offer implications for the research on inter‐organizational relationships and institutional logic.     

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.     

Collective Intuition: Implications for Improved Decision Making and Organizational Learning

This article establishes the foundation for research on collective intuition through a study of decision making and organizational learning processes in police senior management teams. We conceptualize collective intuition as independently formed judgement based on domain‐specific knowledge, experience and cognitive ability, shared and interpreted collectively. We contribute to intuition research, which has tended to focus its attention at the individual level, by studying intuition collectively in team settings. From a dual‐process perspective, we investigate how expert intuition and deliberation affect decision making and learning at various levels of the organization. Furthermore, we contribute to organizational learning research by offering an empirically derived elaboration of the foundational 4I framework, identifying additional ‘feed‐forward’ and ‘feedback’ loop processes, and thereby providing a more complete account of this organizational learning model. Bridging a variety of relevant but previously unconnected literatures via our focal concept of collective intuition, our research provides a foundation for future studies of this vitally important but under‐researched organizational phenomenon. We offer theoretical and practical implications whereby expert intuitions can be developed and leveraged collectively as valuable sources of organizational knowledge and learning, and contribute to improved decision making in organizations.     

Labour Market Flexibility,Human Resource Management and Corporate Performance

Labour market flexibility is often portrayed as a key to the competitive success of the UK and US economies. We surveyed several hundred firms in the UK, and using the resulting data (on over 200 manufacturing firms) this paper investigates the relationships between firms’ use of flexible work practices, human resource systems and industrial relations on the one hand, and corporate performance on the other hand. The results suggest that ‘low‐road’ practices – short‐term contracts, a lack of employer commitment to job security, low levels of training and low levels of human resource sophistication – are negatively correlated with corporate performance. In contrast, it is found that ‘high‐road’ work practices –‘high commitment’ organizations or ‘transformed’ workplaces – are positively correlated with good corporate performance. It is also found that human resource management practices are more likely to contribute to competitive success where they are introduced as a comprehensive package, or ‘bundle’ of practices. Significant interaction effects between human resource systems, trade unions and flexible work practices add further support to the bundling hypothesis.     

The Meaning,Antecedents and Outcomes of Employee Engagement: A Narrative Synthesis

The claim that high levels of engagement can enhance organizational performance and individual well‐being has not previously been tested through a systematic review of the evidence. To bring coherence to the diffuse body of literature on engagement, the authors conducted a systematic synthesis of narrative evidence involving 214 studies focused on the meaning, antecedents and outcomes of engagement. The authors identified six distinct conceptualizations of engagement, with the field dominated by the Utrecht Group's ‘work engagement’ construct and measure, and by the theorization of engagement within the ‘job demands–resources’ framework. Five groups of factors served as antecedents to engagement: psychological states; job design; leadership; organizational and team factors; and organizational interventions. Engagement was found to be positively associated with individual morale, task performance, extra‐role performance and organizational performance, and the evidence was most robust in relation to task performance. However, there was an over‐reliance on quantitative, cross‐sectional and self‐report studies within the field, which limited claims of causality. To address controversies over the commonly used measures and concepts in the field and gaps in the evidence‐base, the authors set out an agenda for future research that integrates emerging critical sociological perspectives on engagement with the psychological perspectives that currently dominate the field.     

Flow Coordination and Information Sharing in Supply Chains: Review,Implications, and Directions for Future Research

Advances in information technology, particularly in the e‐business arena, are enabling firms to rethink their supply chain strategies and explore new avenues for inter‐organizational cooperation. However, an incomplete understanding of the value of information sharing and physical flow coordination hinder these efforts. This research attempts to help fill these gaps by surveying prior research in the area, categorized in terms of information sharing and flow coordination. We conclude by highlighting gaps in the current body of knowledge and identifying promising areas for future research.     

The Role of Project and Organizational Context in Managing High‐tech R&D Projects

High‐tech organizations often struggle to manage different types of R&D projects. Evidence from research and practice suggests that managers frequently categorize and manage projects based on the extent of change triggered in product, process, technology, and market dimensions. However, this can create challenges in high‐tech organizations. This study investigates how high‐tech organizations manage R&D projects based on their learning goals. First, we argue for the benefits of categorizing R&D projects based on the degree of exploration and exploitation learning goals. A qualitative case study from four high‐tech business units involving 10 R&D projects helps understand the different types of projects based on their learning goals. The case study shows that R&D projects in high‐tech organizations typically fall into three categories based on their learning goals: Radical innovation projects, Incremental innovation projects, and Hybrid projects. Second, we iterate between literature and evidence from our qualitative data to theorize how project context and organizational context affect project performance depending on the type of project. The data for the empirical analysis come from a multilevel survey of 110 R&D projects across 34 high‐tech business units. Results show the importance of designing project and organizational context differently for the three types of R&D projects. Collectively, this study offers a new perspective on how to manage high‐tech R&D projects.     

Small Business Social Responsibility: A Critical Multilevel Review,Synthesis and Research Agenda

Small‐business social responsibility (SBSR) related research is rapidly increasing in quantity, but is found in divergent literatures and disciplines. It is time to offer a comprehensive review that identifies, synthesizes and integrates previous research, and highlights the knowledge gaps and the way forward. This methodical search of the literature helped to identify 115 multidisciplinary peer‐reviewed academic articles appearing in high‐quality journals over the 1970–2016 period. Using a systematic and in‐depth content analysis technique, the authors reviewed the articles and identified the theories used, the national contextual focus and the methodological orientations in these articles. They also identified the predictors, outcomes, mediators and moderators of SBSR at the institutional, organizational and individual levels of analysis. This review helps to identify significant knowledge gaps in terms of the theoretical orientation, the national contextual focus, the core content under study, and the methods used. The authors offer numerous suggestions across these topics to help address the knowledge gaps and raise important questions for future research. The primary contributions of this paper are: delineating and summarizing a multilevel analysis of an emerging literature on SBSR; integrating contributions from a wide range of management disciplines and geographical contexts; extracting the potential theoretical contributions in this field; and informing directions for future research. The authors propose a research agenda that is theoretically relevant and innovative, and call for context‐ and size‐aware research on SBSR, using small‐business‐specific methodologies and measurements.     

Business groups' outward FDI: A managerial resources perspective

Outward FDI strategies are driven by firms' resource endowments, which in turn are conditioned by their home environment. In emerging economies, thus, the pattern of outward FDI is shaped by local firms' idiosyncratic contexts and the resources that these firms developed to fit the contexts. This includes business groups, a dominant organizational form in many emerging economies, competing with context-bound resources. When they wish to transcend their home context, they need internationally valuable resources, especially managerial resources, which may be quite different than the resources that enable domestic growth. This paper thus explores what resources drive this international growth in the case of Taiwanese business groups. Starting from Penrosian Theory, we focus on managerial resources that are shared across the member firms of a group, and thus shape the profile of the group. We find that international work experience favors internationalization while international education does not. Moreover, domestic institutional resources distract from internationalization, presumably because they are not transferable into other institutional contexts, and thus favor other types of growth.     

Managers’ Resources for Authentic Leadership – a Multi‐study Exploration of Positive Psychological Capacities and Ethical Organizational Climates

While authentic leadership is highly valued in today's business world, managers do not necessarily have the resources to attain it. Building on conservation of resources theory, we propose a conceptual model to address how personal and contextual resources predict authentic leadership. Study 1 analyses the day‐to‐day variability in managers’ positive psychological capacities as personal resources in relation to changes in authentic leadership. In addition, it tests ethical organizational climates as stable, contextual resources for authentic leadership. In Study 2, we replicate our results on the between‐person level and extend the research model by exploring promotion focus as a link in the relationship between personal resources and authentic leadership. Evidence from an experience sampling study with 89 managers surveyed daily on 10 consecutive working days (Study 1) and a field survey of 130 managers at two points in time (Study 2) supports the hypothesized role of personal resources and promotion focus for authentic leadership. In both studies, only principled but not benevolent ethical organizational climates emerged as a contextual resource for authentic leadership. We discuss the implications for current management research and practice.     

Introduction: Knowledge Construction and Creation in Organizations*

While adopting a knowledge‐based perspective on organizations has been valuable, since, among other things, it enables us to see links between organizational learning and a firm's competitive advantage through the development of idiosyncratic capabilities, it has nonetheless tended to treat organizational knowledge as ‘given’, exploring how it is related to other ‘given’ variables. The focus of this special issue is to unpack the notion of organizational knowledge by exploring the processes and practices through which knowledge is constructed and created in organizations. A constructivist perspective assumes that ‘knowledge’ presupposes work and seeks to explore how what comes to be considered as organizational knowledge is established and validated (or fails to do so). By seeing organizational knowledge as work we can further probe into how knowledge is shaped by organizational strategies and incentives and, more radically, how power and politics influence the struggle between competing bodies of knowledge in organizations.     

Information Technology and Process Performance: An Empirical Investigation of the Interaction Between IT and Non‐IT Resources*

Drawing on the resource‐based view, we propose a configurational perspective of how information technology (IT) assets and capabilities affect firm performance. Our premise is that IT assets and IT managerial capabilities are components in organizational design, and as such, their impact can only be understood by taking into consideration the interactions between those IT assets and capabilities and other non‐IT components. We develop and test a model that assesses the impact of explicit and tacit IT resources by examining their interactions with two non‐IT resources (open communication and business work practices). Our analysis of data collected from a sample of firms in the third‐party logistics industry supports the proposed configurational perspective, showing that IT resources can either enhance (complement) or suppress (by substituting for) the effects of non‐IT resources on process performance. More specifically, we find evidence of complementarities between shared business–IT knowledge and business work practice and between the scope of IT applications and an open communication culture in affecting the performance of the customer‐service process; but there is evidence of substitutability between shared knowledge and open communications. For decision making, our results reinforce the need to account for all dimensions of possible interaction between IT and non‐IT resources when evaluating IT investments.