The ‘ART' of knowledge:: Systems to capitalize on market knowledge

The authors argue that current knowledge management practice, which focuses on managing explicit data and information technology, is not enough. Tacit knowledge, such as subjective insights or emotions must also be considered.Converting between these forms of knowledge is important, and the concept of ART (action–reflex–trigger) systems is introduced to enable this to take place. ART systems enable companies to implement a multi-dynamic approach to knowledge management.The complex concept of ‘ba' is introduced—a shared mental space for knowledge creation—which provides a foundation for knowledge creation. The authors explore the nature, context and enabling conditions for ART systems and show how ba can be employed in ART systems.A case study—of the Seven-Eleven Japan corporation is presented, whose outstanding success is based on the capitalization of market knowledge, striking a balance between supportive IT and human insight, to achieve a multi-dynamic approach to knowledge management. The company integrates several interlinked ba and ART systems.     

Guided product idea generation

This article describes a successful method for getting many good product ideas during a short period of time, which was developed by the patent broker New Products NordInvent (NP) to be used instead of the normal method of spontaneous idea generation. The article is based on a project ‘Swede Innovation '81’ in which 12 large Swedish companies formulated 64 search profiles and asked all Swedish inventors to invent new products with this guide. NP formulated the original model—which has advantages for the companies, the patent broker and the inventors—and carried through the project on commission from these companies. Out of 2710 product idea contributions sent for evaluation, about ten products will go into production. This figure could have been higher if the companies had been better prepared to receive new products and had had a better knowledge of managing innovations.     

Future of European human resource management: A contingent approach

The ability to cope with an increasingly open European Market, enhanced mobility between nation states and the threat of competition from the Far East will be highly prized organisational skills in the third millenium. Many commentators have argued that ‘Europeanisation’ (broadly defined) is an irreversible process and companies will have to cope proactively with this or perish. However, in this article we argue that many of these predictions are based on an uncritical acceptance of the ‘internationalisation’ thesis, and on subjective assessments of possible future trends — rather than on sound empirical research within strong theoretical frameworks. Accordingly, this article takes a critical look at some widely-held assumptions about internationalisation, Europeanisation and the (potential) development of European Human Resource Management (EHRM). It then goes on to suggest a framework of research which will be more able to capture future developments in EHRM and thereby facilitate more robust exchanges on strategic HRM with those companies operating in a European setting.     

Implementing global strategies

Setting up a corporate global strategy is only half the story. Implementing it successfully involves much skill and is a very challenging task. Lawrence Hrebiniak reviews both the general issues and specific needs of global strategy. Next, he categorizes four stages that companies go through in pursuit of their global destiny. In the last, and most important of these — co-ordinated global strategy — there are routes to success, used separately or together. These are: creating a cadre of effective global managers, forming strategic alliances, and employing lateral or matrix type structures. A final check-list itemizes implementation requirements by stage of global strategy.     

Internationalizing managers: Speeding up the process

Most multinational companies agree that their managers need international expertise; but a recent survey surprisingly revealed that more than half of the large European corporations participating in the study lacked a strategy — either in writing or as a commonly articulated value — for internationalizing their managers (Price Waterhouse/Cranfield, 1991, p. 14). Not only must cutting-edge companies implement this process, but they have to find ways to speed it up to stay competitive.Brooklyn Derr and Gary Oddou report a 1991 survey conducted with 105 European multinationals employing an average of 30,000 workers each. The respondents, usually directors of human resource management and management development, identified the current strategies most frequently used to internationalize their firms, the importance assigned these strategies (not necessarily the same thing), and short-range trends. The article also explores the different challenges presented by attempting to internationalize senior managers as compared to junior managers.Expatriation/repatriation has been the traditional means of internationalizing managers, but companies are not doing a uniformly able job in preparing their managers for expatriation nor in taking advantage of their expertise after they return. In addition to making recommendations about expatriation/repatriation, the authors suggest newer, faster practices for internationalizing managers.     

An Improved Approximation Algorithm for Multicast <Emphasis Type="Italic">k</Emphasis>-Tree Routing

An improved approximation algorithm is presented in this paper for the multicast k-tree routing problem. The algorithm has a worst case performance ratio of (2.4 + ρ), where ρ is the best approximation ratio for the metric Steiner tree problem (and is about 1.55 so far). The previous best approximation algorithm for the multicast k-tree routing problem has a performance ratio of 4. Two techniques, weight averaging and tree partitioning, are developed to facilitate the algorithm design and analysis.Research supported by AICML, CFI, NSERC, PENCE, a Startup Grant from the University of Alberta, and NNSF Grant 60373012.     

Developing strategic alliances: A conceptual framework for successful co-operation

Due to dramatically increasing global competition and in the light of Europe '92, companies have to concentrate on their particular competitive advantages and on those business activities they know well. The market, however, asks for an ever increasing range of products and services. ‘System deals’ include — along with a product — attractive sideline services, like project management, system implementation or supply of related products. In many cases, entering these markets or achieving technological breakthroughs is only possible with a strong partner.These recent developments forced corporations to consider alternative company structures. The failure of many strategic alliances, however, has clearly shown that understanding the development process of the alliance is critical for success. Christoph Bronder and Rudolf Pritzl present a structured procedure for developing strategic alliances that outlines four critical phases: strategic decision for an alliance, alliance configuration, partner selection, and alliance management.     

Patent portfolios for strategic R&D planning

Empirical research has found a discrepancy between the perceived importance and the actual level of information on competitor's R&D strategies. It has been argued in the literature that patent information might be used to overcome this information deficit. However, empirical research further reveals that patent information is rarely used in strategic R&D planning. The present paper explores this issue and introduces two types of patent portfolios for strategic R&D planning. In patent portfolios on the company level, patenting strategies are identified and the quality of overall technological positions is benchmarked against relevant competitors. In addition, we present a patent portfolio on the technological level, which, as it is known from various technology portfolios, helps companies to manage the allocation of R&D resources effectively. Based on patent data from 21 German, European and Japanese mechanical engineering companies we show the application of both patent portfolios for strategic R&D planning purposes. The patent portfolios prove to be a very valuable tool for R&D decision makers in companies. Based on the experiences made in the case study, recommendation for the effective use of patent portfolios are formulated.     

Transformational leadership and performance outcomes: Analyses of multiple mediation pathways

Transformational leadership (TFL) has been shown to affect employees' job performance, and the literature offers a large variety of explanatory processes. Integrating the diverse literature related to the mechanisms that mediate the TFL-performance relationship, the current study identified five core mechanisms—affective, motivational, identification, social exchange, and justice enhancement—that are consistent with established social and psychological theories. Meta-analysis involving > 600 samples was conducted to test these mechanisms. General support was found for each of the five mechanisms. The findings showed that TFL was related to variables that represented these mechanisms, which in turn were associated with non-self-report measures of employees' task performance, citizenship behavior, and innovative behavior. An integrative model was further proposed and tested to show the central role of leader-member exchange in the relationships between TFL, other mediating variables, and performance outcomes. This study contributes to the literature by strengthening researchers' theoretical understanding of the major social and psychological processes by which transformational leaders promote followers' job performance.     

财务特征对担保方定价策略影响的实证研究

2007年证监会和银监会联合发布《120号通知》要求强制披露上市公司对外担保实施以来,详细查阅上市公司信息披露公告获知,2007至2014年间超过40%的上市公司存在对外担保业务;提供担保公司的资产负债率均值54.07%、资产收益率均值为3.07%,未提供担保公司的资产负债率均值43%、资产收益率均值4.5%,揭示担保公司财务特征对担保行为选择具有一定影响。为深入诠释该现象,本文基于"担保价格不仅取决于担保是否给公司带来正净现金流,而且取决于提供担保后所有者权益占公司比例的变化程度"的理性担保方定价策略,构建担保供需理论模型,逻辑推理给出研究假设。利用2007至2014中国A股主板非金融类上市公司的样本进行检验发现:(1)提供担保公司数量先随公司所有者权益占资产总额比重的增加而增加,但当超过某一阈值后随公司所有者权益比重的增加而减少,特别资产负债率影响对外担保行为由增到减拐点的阈值:国有上市公司在80%左右,非国有公司在70%左右。(2)提供担保公司数量先随公司盈利能力增强而增加,但超过某一阈值后随公司盈利能力增强而减少,特别公司盈利能力影响对外担保行为由增到减拐点的阈值:国有上市公司在11%左右,非国有公司在13%左右;给出国有上市公司由于政府的隐性担保带来的资信福利,导致国有上市公司在同等条件下,资信水平较非国有公司高估,导致担保契约增加拐点和担保契约减少拐点都比非国有公司财务状况要差。     

Local, regional, or global? Geographic orientation and relative financial performance of emerging market multinational enterprises

We extend the regional/global strategies literature by analyzing the relative performance of emerging market (EM) multinational enterprises (MNEs) based on their geographic orientation. We develop a framework showing that firms adopt three geographic orientations—local, regional, and global—and test our framework with the market penetration strategies (sales) of 701 MNEs from 28 EMs during 2000–2006. Our analysis shows that distinguishing among these three geographic segments is important, as not all of these geographic segments enhance firms’ financial performance relative to their industry: a combination of local and global orientations enhances while regional orientation reduces the relative financial performance of EM MNEs.     

Relation between market orientation and market environment et al., in Korean firms entering to North American markets

This study was conducted to test the antecedent factors of market orientation and the relationship between market orientation and business performance of overseas subsidiaries. The author also investigates whether competitive strategy might affect the strength or weakness of the market orientation—performance relationship. The results of research show that the magnitude of the firm and market turbulence have significance as antecedent factors of market orientation, and competitive strategy can also moderate the relationship between market orientation and performance. Lastly, the results show that the relationship between market orientation and performance has a positive significance.     

Reconsidering the exploration of power distance: an active case study approach

In this paper, we present what we call an “active case study” and we theorize specifically on the relevance hereof for an exploration of power distance (as conceptualized by Hofstede (Culture's Consequences: International Differences in Work-Related Values, Sage, Beverley Hills, CA, 1980)). As Hofstede conceives it, the notion of “power distance” enables an understanding of the predominant ideas about inequality prevalent in a (national) culture, which in turn infuse work relationships. An active case study approach—as we elucidate in the paper—implies an acknowledgement on the part of those organizing the research of the manner in which their intervention might affect the way “respondents” experience their work relationships. We suggest that our proposed active case study approach offers novel possibilities for exploring power distance and should be added to the repertoire of approaches used to examine this in organizational life. We develop our argument in this regard by offering a detailed account of the application of this approach to a Taiwanese organization (the Kaohsiung Harbor Bureau in Taiwan).     

Private Equity and Bank Capital Requirements: Evidence from European Firms

Using firm-level data from 16 euro-area countries over 2008–2014, we investigate how the performance of bank-affiliated private equity-backed companies evolves after the European Banking Authority increased capital requirements for their parent banks. We find that portfolio companies connected to exposed banks reduce their level of investment and experience weaker asset growth, employment growth and profitability following the capital exercise. We further show that the effect is stronger for companies likely to face financial constraints. Finally, the findings indicate that the negative effect of the capital exercise is muted when the private equity sponsor is more experienced.     

Employee Involvement in Support of Corporate Values in Successful Organizations: Groups, Cooperative Interaction, and Influence

Employee involvement can supplement strong corporate cultures to develop innovative organizations. Executives from forty successful companies responded to interviews on the organization's values and involvement practices. Structural equation analysis indicate that effective involvement – measured by the use of employee problem solving groups, cooperative interaction, and employee influence – was a critical mediating mechanism between people-oriented values and firm performance. These results suggest the complex challenge of developing a successful organization and guides for making an organization both value-driven and productive.     

The multinationalization of developing country MNEs: The case of multilatinas

I study the multinationalization — the decision to establish foreign direct investment (FDI) — of developing country firms, in particular Latin American ones or “Multilatinas”. Despite a long exporting tradition, many firms in Latin America have only recently become multinational enterprises (MNEs). The analysis of case studies reveals three insights. First, Multilatinas take a long time to become MNEs, reflecting the additional challenges and need for sophisticated advantages for establishing FDI. Second, Multilatinas are induced to become MNEs after changes in the home country that follow structural reform induce them to upgrade their competitiveness to international levels. As a result, they can overcome the difficulties of establishing FDI and become MNEs. Third, Multilatinas follow four strategies in their selection of the country where to establish FDI first depending on the interplay between difficulties and advantages of operating abroad. These three arguments build on and link the notion of advantages of internationalization put forward by the eclectic paradigm of international production and the idea of difficulties in internationalization presented by the incremental internationalization model. The strategies are explained by the balancing of the ease of overcoming difficulties and the advantages derived from foreign operations.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

Organizational innovativeness: Exploring the relationship between organizational determinants of innovation, types of innovations, and measures of organizational performance

This research study examines the relationships between innovativeness of firms, their organizational characteristics, and organizational performance. Previous studies that have examined these relationships have yielded conflicting results. A fundamental assumption of this research is that these conflicting results may be due to a narrow definition of the construct of innovativeness. This research demonstrates that by using a multidimensional measure of innovativeness, the reasons for the conflicting findings of past research becomes evident. The results of this study show that substantive relationships do exist between organizational factors, organizational innovativeness, and organizational performance. These relationships, however, are complex, and can only be detected if innovativeness is measured as a multidimensional construct. Each of the organizational factors examined in this study showed significantly different effects on each dimension of two types of organizational innovativeness — technical and administrative innovativeness. Further, the results show that innovativeness does improve organizational performance. However, each dimension of the two types of innovativeness affects different aspects of organizational performance.     

Why communities of practice succeed and why they fail

A specific form of intra-organizational networks – a community of practice (COP) – is increasingly regarded as an important structure within organizations. This network structure is well suited for the development and sharing of knowledge and practices across divisions. Our research explores the most salient reasons for the success and failure of such networks. An investigation of 57 COPs from major European and US companies led to the discovery of 10 “commandments” that lead to the successful development and sharing of best practices. It also identified five main reasons for failure.