Reflections on knowledge-based approaches to the organization of production

Knowledge-based approaches to the firm offer valuable insights into some of the central issues of governance and organizational design—especially into long neglected problems of coordination. I start from the assumption that the fundamental problem of economic organization is reconciling efficiency in knowledge development with efficiency in knowledge application. The paper extends the knowledge-based view of the firm and knowledge integration approach to organizational capability that I outlined in earlier papers (Grant in Strategic Management Journal, 1996a; Grant in Journal of Management Studies 7(4)375–387, 1996b) and draws upon subsequent contributions to the literature. From this basis, I derive implications for the relative efficiencies of alternative institutions of economic organization and for the design of firm structures.     

The international training of expatriates in Western subsidiaries of emerging multinational enterprises: A knowledge-based perspective

There is a considerable gap in academic theoretical literature about the international training of expatriates in multinational enterprises (MNEs). While the majority of research has focused on developed (Western) multinationals operating in developing countries, very limited research has been conducted on emerging multinational enterprises (EMNEs) operating in developed countries and the expatriates who work in them. In this study, we explore the international training of expatriates in Indian MNEs from the information technology industry operating in Australia to examine how they provide training to their expatriate staff who are sent on international assignments. We collected qualitative data in the form of multiple case studies via interviews with senior executives based in the Australian subsidiaries. Our findings reveal that Indian IT MNEs provide a variety of centralised training programmes for their managerial and technical expatriates and use training as a key instrument to leverage and transfer home country knowledge to their Australian subsidiaries. We also found that each stakeholder involved in the training process plays a distinct role in the knowledge transfer process, which allows Indian EMNEs to integrate the training with their people-centred business model to deliver IT services in host countries.     

The impact of hotel size on staffing levels in Hawaii

Using cross-section data from a survey of hotels and apartment hotels in Hawaii, this article examines some influences upon the level of employment per room. The findings confirm that the size, the type (hotel or apartment hotel), the quality of the accommodation, and the kind of guests (group or independent travellers), all have significant impacts on the amount and kind of employment generated.     

Chinese expatriate management in emerging markets: A competitive advantage perspective

Recent research draws attention to the large number of expatriates sent abroad by Chinese multinational corporations (CMNCs), especially to emerging markets. It is generally assumed that their large number, and any competitive advantage this generates, relate predominantly to their low cost, compared to other MNCs' expatriates and/or locally available labour. Our research uses an integrative perspective drawing on the resource-based view (RBV), international human resource management (IHRM) and “country of origin” literature and extensive case-study research on 27 CMNCs in 12 emerging markets. This reveals that the competitive advantage created by Chinese expatriates is closely related to the use of expatriates at both managerial and operational levels. It is achieved through human resource management that exploits their relatively lower cost, higher productivity and hardship tolerance (compared to host or third country counterparts) and their knowledge/resource reconfiguration capability, through a centralised and collective expatriation management system. These together enhance CMNCs' competitive advantage through not only offering cost effective and differentiated products but also transferring the reconfiguration knowledge. This study enhances understanding of the competitiveness of emerging market multinationals (EMNCs) by showing how the competencies, combination and management of their expatriates create a distinct source of competitive advantage. It also advances IHRM research on expatriates by investigating their use from a competitive advantage perspective.     

The hazards of strategic planning for global markets

Global strategic marketing planning has emerged as a key process in managing today's worldwide marketplace. This survey of 90 large American global corporations reveals that most are bottom-up planners. US firms appear to have distinct cost and numbers orientations. Industry and competitive analyses are used in many companies, although managers appear to lack suitable frameworks for SWOT analyses. Economic climate changes tend to be most disruptive to global planning efforts. When faced with non-achievement of goals, most firms reformulate both objectives and strategies.     

The impact of Japanese plants on local labour markets

Japanese direct investment is assuming an increasing importance in the U.K. economy, especially in the manufacturing sector where Japanese management and manufacturing techniques have aroused particular interest. Until recently this investment in manufacturing has been primarily restricted to plants of an assembly-based nature and Japanese companies have sought out labour markets which best satisfy the needs of this type of operation. However, early signs are appearing which suggest that new Japanese manufacturing investment is becoming increasingly sophisticated. In the light of this emergent trend, this paper uses recent research to draw attention to the labour market problems that are likely to occur as the skill requirements of Japanese employers increase. The paper then concludes by discussing strategies which individual firms should adopt to protect themselves from any consequent labour market disruption.     

Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control

Offshoring can increase firms' exposure to product quality risks, such that manufacturing firms need effective tactics to maintain product quality consistency across offshoring subsidiaries. With an agency theory approach, the present study seeks novel insights into three widely used subsidiary control mechanisms for achieving product quality consistency across offshoring subsidiaries in emerging markets and developed home countries. Through surveys of 150 subsidiaries of multinational corporations in heavy industries operating in China, the paper tests a proposed model using hierarchical linear regression, accounting for endogeneity concerns using the Gaussian copula method. The analysis yielded several findings: An inverted U-shaped relationship exists between decision autonomy and product quality consistency; expatriate staffing positively predicts product quality consistency and attenuates the negative effects of excessive autonomy on product quality consistency; and compared with greenfield entry, mergers and acquisitions negatively predict product quality consistency.     

Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda

The impact of institutional environments on firms' strategic decisions has been examined in strategy and international business literature. Yet, the current state of knowledge about how institutional voids affect firms' resource commitment in emerging markets is equivocal. This paper reviews and develops an integrative framework that maps the key conceptualizations, theoretical frames, mechanisms, contingencies and outcomes in the institutional voids – resource commitment literature. Altogether, this paper structures institutional voids and resource commitment research into salient themes to help scholars scope the field and explore value-adding avenues to further our understanding of internationalization and resource commitment decisions in emerging markets.     

Environmental practices and firm performance in emerging markets: the mediating role of product quality

Environmental practices have not received as much research attention in emerging market contexts as traditional topics like quality. However, the importance of environmental practices for a firm’s production strategy has been increasing at an unprecedented level across the globe. Our research objective is, therefore, to investigate the interplay between environmental practices and quality in the pursuit of firm performance. Relying on 492 responses from Turkish manufacturers to test our hypotheses, we show that environmental practices directly improve the quality of products over and above the effect of quality management practices in emerging markets. Product quality, in turn, is important for increasing firm performance, acting as a mediator for the positive effects of environmental practices on performance. Thus, we reveal that product quality functions as an instrumental conduit between environmental practices and firm performance in emerging markets like Turkey where stakeholder pressures are weak, and regulations are often not properly enforced.     

A contingency view on the impact of supplier development on design and conformance quality performance

This study extends contingency theory’s account of organisational size and culture by exploring the relationship between supplier development and internal quality performance. Drawing on supplier development research, the study aims to examine the moderating impact of organisational size and culture on the relationship between supplier development and design and conformance quality dimensions. Using survey data of 518 UK manufacturing organisations, we found that larger organisations with greater access to resources and a strong supply chain orientation culture tend to place the most weight on supplier development programmes which in turn yield higher internal quality performance. These findings contribute to ‘Operations Management Practice Contingency Research (OM PCR)’ and will raise awareness among operations managers of their future sourcing decisions.     

The relevance and impact of business schools: In search of a holistic view

The degree to which business schools are relevant and impactful for society has been disputed. Critics that engage in the so-called ‘relevance problem’ have argued that business schools are preoccupied with academic rigour at the expense of practical relevance, resulting in a lack of societal impact. This systematic literature review synthesizes the fragmented body of knowledge pertaining to the relevance and impact of business schools. Appreciating the contributions of both research and education, this review offers a holistic view that acknowledges the multidimensional nature of business schools. Based on an analysis of 266 journal articles, we present the four main literature streams in this domain. We find limited evidence of cross-fertilisation between discussions of research and education. However, by acknowledging the contribution of applying a multidimensional lens to the study of business schools, we develop a holistic thematic framework that provides theoretical directions for the future. Using this, we demonstrate four avenues for advancing the business school literature. First, we emphasise the potential of an institutional logics perspective to viewing business schools. Second, we offer a novel proposal for understanding the bridge between research and education. Third, we emphasise the application of a value co-creation theoretical lens when considering how business schools engage with stakeholders in research and education. Finally, we propose an all-encompassing stakeholder-centric definition of relevant and impactful knowledge and advocate for this inclusive definition to conceptually bridge the fragmented discussions of research and education.     

Communication accommodation within global virtual team: The influence of cultural intelligence and the impact on interpersonal process effectiveness

The study builds on existing literature on global virtual team (GVT) and focuses on how individual members can achieve higher levels of interpersonal process effectiveness. Anchoring on the theory of intelligence, this study establishes and examines cultural intelligence (CQ) and how it can relate and influence a GVT member's interpersonal process effectiveness. Furthermore, this study extends the literature by drawing from communication accommodation theory in examining how communication accommodation plays an important role in the effective functioning of a GVT member. To test these assertions, data were collected from members of GVTs and their colleagues (n = 262 paired data) in a multinational information technology offshoring firm. Data were analyzed and the results revealed that a GVT member's CQ relates positively and significantly to effectiveness on both interpersonal processes of synergy and direction. Furthermore, results showed that communication accommodation of a GVT member is influenced by CQ which consequently impacts both effectiveness on interpersonal processes of synergy and direction. These results contribute to the growing literature on GVT and offer new practical insights on how to improve overall efficiency and work performance within GVT.     

Financial performance and global start-ups: the impact of knowledge management practices

This paper investigates how knowledge management (KM) practices improve the financial performance of global start-ups (GSs). Using a database of 114 global innovative Italian start-ups, this study is based on the principal component analysis – data envelopment analysis (PCA-DEA) method. In particular, a survey was conducted to investigate KM practices and secondary data was used to evaluate financial performance. This research highlights that the adoption of different knowledge management practices (i.e., acquisition, documentation, creation, transfer and application) has a positive impact on the financial performance of global start-ups. The study contributes to the literature on international entrepreneurship, shedding light on the consequences of KM practices for global start-ups' financial performance, and provides guidelines for business owners, enabling them to understand better how knowledge management can facilitate the achievement of high levels of financial efficiency.     

The development of the resource-based view of the firm: A critical appraisal

Over the last 20 years, the resource-based view (RBV) has reached a pre-eminent position among theories in the field of strategy, but debate continues as to its precise nature. This paper contributes to the debate by critically reviewing the development of the RBV to date. The critical appraisal examines the development of the RBV in terms of theory, method, empirical evidence and practical insights. It is contended that the permeable and eclectic nature of the RBV stems from its being a theory about what firms are and how they function, and that its popularity is due to an absence of limiting behavioural assumptions. Finally, the authors provide their own subjective views on where they think RBV scholars should focus their efforts in the future.     

The impact of acquisitions on firm performance: A review of the evidence

This paper presents a review of empirical research on the impact of acquisitions on firm performance. The evidence suggests that, in the short run, acquisitions have at best an insignificant impact on shareholder wealth. Long‐run performance analysis reveals overwhelmingly negative returns, while the evidence using accounting performance measures is mixed. The review also examines the impact of bid characteristics on performance. The acquisition of hostile targets, transactions that are paid for with cash and acquisitions of larger targets are associated with superior (or at least less negative) performance, while there is mixed evidence on the benefits of related acquisitions. A number of recent studies find that acquirers with superior pre‐bid performance tend to experience significant underperformance in the post‐bid period.     

The changing professional organization: A review of competing archetypes

The aim of this paper is to summarize literature relevant to the professional organization and to present a contemporary analysis of the archetype concept in this field. In order to understand recent and ongoing changes in professional organizations, the paper begins with a review of how the professional archetype evolved from the 1960s to 1990. Then, with examples from contemporary accounting, health care and law organizations, it considers the processes by which an institutionalized archetype can change. Forces for change – such as deregulation, competition, technology and globalization – can challenge the interpretive scheme and eventually delegitimize the existing archetype. At the same time, significant environmental changes can override isomorphic pressures and de‐institutionalize the long‐accepted structures. Thus we herald the emergence a new professional archetype – or perhaps several competing archetypes. Finally, the paper reviews the evolving field of professional organization as a whole, and understands the extant archetypes. A typology of professional organizations is proposed that currently seems to have three clusters of organizations – possibly three competing archetypes – namely, the traditional professional partnership, the specialized ‘Star’ form and the corporate global professional network, or GPN.     

Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship

In this paper we describe three distinct but interrelated processes — spillover and catch up, brokering and bottom up — that link globalization to entrepreneurship in emerging economies. We then outline an ambitious research agenda concerning entrepreneurship in the emerging economy context. Is most of such entrepreneurship Kirznerian or Schumpeterian? How do brokering processes work in this context? What informal and formal institutions will emerge to govern entrepreneurship? Does entrepreneurship at the base of the pyramid represent just another MNE-inspired spillover, or will the severe constraints lead to truly revolutionary innovations in business models, governance arrangements and social relations? Most fundamentally, will the entrepreneurial processes in emerging economies conform to or transform the organization of entrepreneurship as we know it?     

The state of global environmental reporting: Lessons from the global 100

Global economic corporations have global environmental responsibilities that include reporting that extends to their entire global operation. The 1999 Benchmark Survey of The State of Global Environmental Reporting surveys and compares the global reporting practices of the largest one hundred corporations in the world. Global environmental reporting is increasing and is now standard among firms in the electronics, automobile manufacturing, and chemicals sectors. From the 1998 survey to the present, the number of global environmental reporters rose from thiry-nine to forty-four firms. If one discounts the minimal reporting among financial services firms, sixty percent of the Global 100 produced a global environmental report (GER). The quality of reporting also increased dramatically in key areas as Global environmental management system (EMS) standards and specifications and global use of Design for Environment (DfE) and Life Cycle Analysis (LCA) tools increased.