Organizational structure and success of international joint ventures in emerging economies: the case of Spanish–Moroccan SMEs

One of the most common ways in which SMEs internationalize their business is through the creation of joint ventures; nevertheless, many of these fail. To avoid this risk, it is important to identify the factors that favour the continuity of such enterprises. The aim of this paper is to analyse the factors related to organizational structure that determine the success of international joint ventures between SMEs in emerging economies, taking as the particular area of study the question of joint ventures between Spanish and Moroccan firms, located in Morocco. The research hypotheses were tested using a linear regression model applied to a sample of 210 international joint ventures. The results obtained from a structured survey show that, with respect to the success of the partnership, significant factors include the existence of majority ownership by the foreign partner, management by a local CEO and the effort made by each party to adapt to the management style of the other. This research contributes to the knowledge of the main factors related to the organizational structure of joint ventures that influence the level of success achieved. The value provided by this research lies in the breadth of the sample examined, in its focus on a very common type of partnership between SMEs, on which very little has been previously studied, and in the fact that the results obtained are extensible to other realities, such as partnerships between European companies and those from countries with similar characteristics (located in Africa or in countries where an Arab culture prevails).     

A multiple buyer – supplier relationship in the context of SMEs’ digital supply chain management*

Abstract

By underlining the relevance of the use of ICTs, knowledge sharing and electronic markets for SMEs, it emerges the need for stimulating a debate on digitisation process of supply chain management (SCM). Electronic infrastructure in the service sector are reducing each kind of cost and improving multiply buyer–supplier relationships, facilitating negotiations and transactions. However, since the coordination costs are still high, the use of ICTs is limited. This phenomenon thus attracts the interests of scholars and practitioners. Although it still needs to further investigate. Especially, the optimal use of ICTs within SMEs’ SCM have not been studied yet. Therefore, by leveraging on four proxies: ICTs specialised human resources, knowledge sharing activities, buyer–supplier relationships, adoption of electronic markets this optimal was analysed via structural equation modelling based on a sample of 1254 SMEs operating in the service sector in Italy.     

The effect of buyer pressure on suppliers in SMEs to demonstrate CSR practices: An added incentive or counter productive?

Those promoting the corporate social responsibility agenda to small and medium-sized enterprises (SMEs) are interested in the potential of supply chain drivers as an incentive. This paper presents results from an empirical study into the attitudes and behaviours of 103 UK SME owner/managers in response to buyer pressure to demonstrate CSR activities. Most said that the inclusion of social and environmental requirements as preconditions to supply would increase their motivation to engage in CSR (82% for environmental criteria and 55% for social criteria). However, a quarter would be put off tendering and 12% thought that such criteria would be counter productive.     

Inter-organizational relationships involving SMEs: A bibliographic investigation into the state of the art

The theme of inter-organizational relationships involving SMEs (SME IORs) has generated a relevant body of knowledge that has not been systematized yet. This article carries out a systematic literature review on SME IORs using bibliometric techniques, aiming to provide an overview of the main subfields of research and to identify promising paths for future research that can contribute to develop a more comprehensive body of knowledge around SME IORs.Four factors of thematically connected research emerge, which represents the main subfields of inquiry within the field of SME IORs. Insights regarding the content of these topics, the different theoretical foundations of the literature on SME IORs, and potential paths for future research are discussed.     

11 Evidence in Management and Organizational Science: Assembling the Field’s Full Weight of Scientific Knowledge Through Syntheses

Abstract

This chapter advocates the good scientific practice of systematic research syntheses in Management and Organizational Science (MOS). A research synthesis is the systematic accumulation, analysis and reflective interpretation of the full body of relevant empirical evidence related to a question. It is the critical first step in effective use of scientific evidence. Synthesis is not a conventional literature review. Literature reviews are often position papers, cherry‐picking studies to advocate a point of view. Instead, syntheses systematically identify where research findings are clear (and where they aren’t), a key first step to establishing the conclusions science supports. Syntheses are also important for identifying contested findings and productive lines for future research. Uses of MOS evidence, that is, the motives for undertaking a research synthesis include scientific discovery and explanation, improved management practice guidelines, and formulating public policy. We identify six criteria for establishing the evidentiary value of a body of primary studies in MOS. We then pinpoint the stumbling blocks currently keeping the field from making effective use of its ever‐expanding base of empirical studies. Finally, this chapter outlines (a) an approach to research synthesis suitable to the domain of MOS; and (b) supporting practices to make synthesis a collective MOS project.     

Fundamental Dynamics in Complex Organizational Change: A Longitudinal Inquiry into Hydro-Québec's Management

Co-operation is the essence of an organization's existence and a key condition for its long-term survival: but change efforts can put such co-operation to a harsh test. Too often this is caused not by change itself, but managers' tendency to stick to oversimplified ideas or tools and to pursue their implementation to the exclusion of other factors. Lacking a stable beacon, managers are often led adrift by the momentum of the change they initiate. This article uses a 20 year long longitudinal study of Hydro-Québec, one of the largest power utilities in North America, to show how the dynamics of change led away from the need to maintain co-operation and thus tend to emphasize trivia. We argue that, in a major change effort, co-operation will only be achieved by maintaining a balance between Position in the environment, organizational Context and the behaviour of People in the organization's community. This three-legged PCP framework is proposed as a structure for understanding and managing complex change efforts. The dynamics of the PCP framework are also examined to derive patterns and recommendations for managers keen to avoid a drift towards trivia.     

Effects of constructive politics and market turbulence on entrepreneurial orientation–performance relationship: A moderated mediation model

The study examines the interaction effects of constructive politics and market turbulence on the entrepreneurial orientation–performance relationship. The proposed structural model tests the mediating role of constructive politics between the entrepreneurial orientation and performance constructs and the moderation effect of market turbulence on this mediating relationship. Data were collected from 145 small and medium-sized enterprises (SMEs) in the United Arab Emirates. The results suggest that entrepreneurial orientation indirectly affects performance through constructive politics. Furthermore, the results indicate that the relationship between constructive politics and the firm's performance was stronger during low market turbulence. Findings suggest that entrepreneurial-oriented SMEs should embrace constructive politics where influence and power can be channeled to enhance financial performance, especially in market stability.     

Observers’ Reporting of Sexual Harassment: The Influence of Harassment Type,Organizational Culture,and Political Orientation

The purpose of this study was to examine factors that influence observers’ reporting of sexual harassment. Participants (N = 183) voluntarily took part in a 2 (harassment type: hostile environment, quid pro quo) × 2 (organizational culture: compliant, proactive) experiment. Results indicate that participants were more likely to respond assertively when observing quid pro quo harassment. Participant political orientation moderated the effects of both harassment type and culture. Persons with a more liberal political persuasion intended to respond assertively in situations where help might not otherwise be rendered (i.e., in compliant organizations and in hostile environment harassment). Contributions and implications are discussed.     

Control or Autonomy? A Case Study of two Organizational Forms in the Zhangjiakou Internal Migrant Organization

Control often weakens autonomy in organizational theories. While many scholars focus on the paradox of control and autonomy, few pay attention to how an organization obtains both control and autonomy. By exploring Zhangjiakou Internal Immigrant Organization, this study finds two mechanisms can contribute to the balanced combination of control and autonomy. First, managers play ambidextrous official-merchant roles, which means superiors take both bureaucratic and autonomous management styles. Second, members have dual organizational goals for both political status and network support. In conclusion, the successful combination is shaped by the subjective interaction between the government, superior managers and subordinate members.     

Employee referrals: A study of ‘close ties’ and career benefits in China

This study examines the relationship between employee referrals and employees’ job tenure through the lens of social capital theory. It does so by considering the tie strength (closeness of guanxi) between referrers and referred employees in the Chinese context. In particular, we examine the mediating effect of career benefits. We theorize that close guanxi has a significant and positive impact on the job tenure of referred employees, and that career benefits (such as having a managerial role) mediate the close guanxi effect on job tenure. This highlights the critical need to recognize the tie strength as between referrers and referred employees. The support for our hypotheses comes from the use of personnel records of 4030 employees over 13 years in one large privately-owned manufacturer in China. Our study has theoretical and practical implications for the relational approach to tackling voluntary turnover in the workplace.     

Strategic alliances for corporate sustainability innovation: The ‘how’ and ‘when’ of learning processes

Mounting sustainability pressures challenge established firms to engage with sustainability innovations, which are often introduced by startups. Research on alliance learning has established the potential of learning from startups to advance corporate innovation. Here, scholars have outlined alliance learning processes and outcomes and have distinguished learning about and learning from alliance partners as two key learning types. The saliency of learning from the operational alliance process is stressed. To date, however, no study has investigated alliance learning processes and outcomes for sustainability innovations. This is despite the fact that sustainability research suggests learning processes in the sustainability context have a distinct nature. This study addresses this research gap by analyzing the sustainability-specific learning processes and outcomes of a large European meat producer and wholesaler with a turnover of $2.7bn in the fiscal year 2019/2020. The firm formed alliances with nine startups for sustainable plant, insect-based and cell-based protein solutions. Our analysis (1) identifies three distinct characteristics of sustainability-related alliance learning processes and outcomes, and (2) specifies the temporal occurrence and outcomes of learning types in alliance learning phases. In contrast to findings of prior research, our study reveals that learning about alliance partners is of key importance throughout the whole sustainability-oriented alliance learning process. In addition, the findings highlight that alliance learning outcomes may support an established firm's contribution to the sustainability transformation of mass markets.     

Revisiting the mediating role of trust in transformational leadership effects: Do different types of trust make a difference?

This study examines the mediating effects of cognitive and affective trust on the relationship between follower perceptions of transformational leadership behavior and their work outcomes. Using data obtained from 318 supervisor–subordinate dyads from a manufacturing organization located in mainland China, structural equation modeling results revealed that affective trust fully mediated the relationships between transformational leadership and the work outcomes of followers, including their affective organizational commitment, organizational citizenship behaviors (OCBs), and job performance. In contrast, cognitive trust negatively mediated the relationship between transformational leadership and follower job performance, and had insignificant effects on their affective organizational commitment and organizational citizenship behaviors. These findings highlight the importance of affective trust as a mechanism which translates transformational leadership into positive work outcomes for the organization.     

The influence of learning activity on low-skilled workers’ skill improvement in the South Korean manufacturing industry

The main purpose of this study was to explore how low-skilled worker’s learning activity influences skill improvement. Using a unique 2007 Human Capital Corporate Panel data-set from the South Korean manufacturing industry, we operationalize skill improvement over time among low-skilled workers. A worker is classified as ‘low skilled’ if he or she has a low education level and poor technical skills. Regression models show that low-skilled workers’ informal learning positively influences their skill improvement. In contrast, we note that supervisors negatively influence skill improvement of low-skilled workers when measuring the change in technical skill proficiency. Quality circle programmes also have a positive influence on skill improvement. In conclusion, skills can be improved through planned interventions that increase collaboration on the job. The results from this study help to highlight the importance of designing learning interventions for low-skilled workers that take account of their underlying education and skills.     

Corporate social responsibility and corporate governance in Italian SMEs: the experience of some “spirited businesses”

The study proposes to individuate the relationship between social engagement, social statements and governance of SMEs. Does an adhesion to the philosophy and to the practices of CSR, which are reflected in a firm’s mission and accountability, positively influences its governance? If so, is this influence more or less significant for SMEs with respect to large-sized firms? This paper winds itself around these questions and describes the principle findings that have emerged from a qualitative investigation focused on a selected group of “cohesive” Italian SMEs, in which their management complies with both economic and social issues. The empirical study finds that the diffusion of CSR is tied above all to the entrepreneur’s values and orientation and to the company embeddedness to the local socio-economic environment. The concluding reflections trace the features of a territorial model of socially responsible orientation centered on the best practices of SMEs who are excellent examples of “spirited businesses” and are part of a network (which includes institutions, trade associations, non-profit organizations, etc.) that contributes to the diffusion of an orientation towards CSR and to sustainability across the territory.     

Ownership structure,investors’ protection and corporate valuation: the effect of judicial system efficiency in family and non-family firms

Research on the effect of ownership structure on firm performance shows no convergent evidence concerning the sign and form of the above-mentioned relationship. Similarly, there is no homogeneous evidence documenting family ownership concentration is always positively or negatively correlated with firm value, or irrelevant. This paper analyses whether and how the de facto investor protection provided by the judicial system affects the relationship between corporate performance and ownership structure in 1314 firms operating in four European countries (Germany, France, Italy, and Spain) over a five-year period, 2010–2014. Moreover, we analyse whether judicial system efficiency influences if and how family firms in the controlling coalition collude for expropriating minority shareholders. Our findings show that the level of shareholder protection, derived from judicial efficiency, is relevant to the relationship between ownership structure and firm performance, thus corroborating literature in that institutional contexts matter in explaining such relations. The results suggest the need for more efficient external mechanisms of corporate governance to facilitate investment in equity capital, thus decreasing the country risk perceived by investors.     

The effect of charismatic leaders on followers’ memory,error detection,persuasion and prosocial behavior: A cognitive science approach

Adopting a cognitive and follower-centric approach to charismatic leadership, we hypothesized that followers show lower levels of cognitive effort, reflected in superficial processing of factually correct information when listening to and viewing a charismatic leader. We conducted two experiments, using a 2 (charismatic versus neutral) × 2 (female versus male leader) between-subjects design and videos of trained actors delivering a speech. We examined the effects of leader charisma on (1a) followers’ ability to detect factually false information, (1b) accuracy to remember information from the leader (study 1, N = 100), (2a) the persuasiveness of factual messages, (2b) followers’ prosocial behavior and (2c) the mediating effect of the leader’s persuasiveness on followers’ prosocial behavior (study 2, N = 140). We did not find support for the effect of leader charisma on detecting false information, the persuasiveness of messages, or increased prosocial behavior among followers. We found an effect of leader charisma on memory. Participants recognized fewer messages in the charismatic compared to the neutral leader conditions. Exploratory analyses provided mixed results for an interaction effect of leader charisma and sex on detecting and remembering false information. Our studies offer first insights into the cognitive outcomes of the charismatic signaling process.     

M&A and diversification strategies: what effect on quality of inventive activity?

Journal of Management and Governance - The aim of this paper is to examine how an acquirer’s diversification strategy shapes the multiple dimensions of inventive activity. Differing from...     

The Transfer of ‘International Best Practice’ in a Brazilian MNC: A Consideration of the Convergence and Contingency Perspectives

This study examines the transfer of a Brazilian MNC's HR model to its subsidiaries in the UK, Canada, Switzerland and Norway. It enquires where the model was sourced from, to what extent it bore a distinct Brazilian complexion, and whether it was adapted to meet the strictures of host institutional constraints and traditions. The paper uses these questions to address an important theoretical debate in the international business literature; that is, whether the pattern of diffusion of management practices within MNCs will lead to a convergence of practices across companies and countries à la the convergence perspective, or whether this is unlikely given the variety of social and political constraints limiting such a process as suggested by the contingency perspective. We find that the MNC imposed a unitary (US-sourced) model of HR ‘best practice’ on all of its subsidiaries. Thus our empirical findings support the convergence thesis. However, we argue that these outcomes are largely explained by relations of power and economic dependence; specifically, the co-existence of dominant-country (US) practices and a dominant sectoral firm operating in economically dependent regions. Where similar circumstances are replicated one might foresee convergence within sectors across countries, but otherwise pluralism and eclecticism between sectors and across countries might be the predominant pattern along the lines envisaged in the conceptualization of “converging divergences”.