The impact of supply chain management practices on competitive advantage and organizational performance

Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance.     

Emergent Marketing Strategies and Performance: The Effects of Market Uncertainty and Strategic Feedback Systems

Although many process‐based studies appear in the strategic management literature, little attention has been devoted to the formation process of marketing strategies. Drawing on enactment and information‐processing theories, this study views the external environment as a source of information (i.e. enacted) and organizations as information‐processing entities. We propose a conceptual framework of antecedents and market performance consequences of emergent marketing strategies and test it with a sample of 214 UK enterprises. The results suggest that dimensions of market uncertainty (i.e. dynamism and complexity) and strategic feedback systems influence the formation of emergent marketing strategy. Furthermore, the data reveal that market uncertainty aspects condition the association between emergent marketing strategies and market performance in different ways. These findings provide new insights into how emergent marketing strategies evolve and influence organizational outcomes.     

Knowledge Management and Balanced Scorecard Outcomes: Exploring the Importance of Interpretation,Learning and Internationality

The topics of shared interpretation, organizational learning and firm internationalization have been studied extensively. Though considered important factors that shape the international competitive landscape, research synthesizing these interrelated areas has been limited to date. We use the balanced scorecard as a framework for assessing how organizational learning and sensemaking influence actions relating to a global marketing strategy and subsequent financial performance. Using data from 169 multinational corporations, findings indicate that a specific set of knowledge activities is related to balanced scorecard outcomes (e.g. customer performance, innovation and learning performance, and internal process performance). The hypothesized importance of customer performance is confirmed as the only balanced scorecard outcome significantly related to financial performance. A post hoc analysis revealed further insights for future research opportunities. Overall, these results suggest that firms can improve their competitive position by emphasizing shared interpretation within the organization and including balanced scorecard elements when assessing performance.     

Implementing Operations Strategy: How Vertical and Horizontal Coordination Interact

We study the implementation of operations strategy at six German manufacturers in mature businesses. Search theory argues that vertical coordination (i.e., unilateral top‐down adjustment of lower‐level search actions) balances stability against the improvement potential enabled by frontline search and also that horizontal coordination (i.e., bilateral adjustment among lower‐level search actions) is required to ensure compatibility among the initiatives generated in various organizational subunits. Much less is known about how vertical and horizontal coordination interact in operations strategy implementation—that is the focus of this study. We first study how horizontal and vertical coordination affect the compatibility and creativity of distributed search, triangulating our cross‐level interviews with data on the manufacturers' productivity gains and their strategic projects. We then examine whether and how vertical and horizontal coordination interact. Our case comparisons suggest that leaving either one of them “loose” and keeping the other one “tight” results in a useful balance between compatibility and creativity; in contrast, tightening both types of coordination suppresses creativity and loosening both types risks incompatibility of initiatives across units. These results lead to a theoretical framework that identifies vertical and horizontal coordination as partial substitutes for operations strategy implementation.     

Assigning migrants to customer contact jobs: a context-specific exploration of the business case for diversity

Ethnic diversity of both their labor forces and customer bases presents a challenge for companies and fuels debate on the business case for diversity: the view that diversity positively impacts firm performance. This study enriches the business case debate by focusing on a particular organizational activity, customer contact. It combines theory from strategic human resource management (SHRM), research on diversity, and research on marketing to analyze what drives companies to assign migrants to customer contact jobs and which performance impacts ensue. We test our hypotheses in data from 338 German business companies. Companies that recognize the value in ethnic diversity and seek to respond to customer diversity are especially likely to assign migrants to customer contact jobs. The analyses reveal a positive impact of migrants in customer contact jobs on company profitability. This impact is enhanced by a broad range of equality and diversity practices and a supportive works council. These moderators have stronger effects than two other moderators related to business strategy: the market served by a company, and its competitive strategy. The paper contributes to SHRM research in general and diversity research in particular through its original examination associating the business case for ethnic diversity with the role of equality and diversity practices and institutions. The study findings can help managers to decide whether to leverage staff ethnic diversity and show that collaboration between HR management and marketing functions is useful to achieve a strategic fit among practices.     

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.     

Real Options in Management and Organizational Strategy: A Review of Decision‐making and Performance Implications

This paper contributes to the debate on the role of real options theory in business strategy and organizational decision‐making. It analyses and critiques the decision‐making and performance implications of real options within the management theories of the (multinational) firm, reviews and categorizes the organizational, strategic and operational facets of real options management in large business settings. It also presents the views of scholars and practitioners regarding the incorporation and validity of real options in strategy, international management and business processes 1 . The focus is particularly on the decision‐making and performance attributes of the real options logic concerning strategic investments, governance modes and multinational operations management. These attributes are examined from both strategic and operating perspectives of decision‐making in organizations, also with an overview of the empirical evidence on real options decision‐making and performance.     

Does governance confer organisational resilience? Evidence from UK employee owned businesses

Current economic crisis has highlighted the importance of an organization’s ability to withstand economic shocks. This has rekindled interest in organization resilience on the one hand, and the relationship between alternative governance forms such as employee owned businesses (EOBs) on the other. We explore this relationship using performance data on 204 publicly traded non-employee owned businesses and 49 EOBs prior to the economic downturn (2004–2008), and during the economic downturn (2008–2009). This data is complemented with a survey of resilience related governance and organizational practices in 41 EOBs and 22 non-EOBs. Our results show that: (a) employee ownership that is combined with employee involvement in firm governance is associated with greater stability in business performance over a business cycle; (b) EOBs have longer investment payback horizon when compared to non-EOBs across a number of activities; (c) Top management in EOBs are more likely to seek employee input in strategic decision making; (d) EOBs are more likely to use employee involvement to achieve tighter coupling between feedback from operations and the setting of strategic direction for the firm. These results suggest that employee stock ownership programs alone are not sufficient to develop higher levels of organizational resilience. Managers must combine employee stock ownership with employee involvement in governance if they wish to build up resilience in advance of adverse economic conditions.     

Integrating the Content and Process of Strategic MIS Planning with Competitive Strategy*

This paper presents a framework that links strategic MIS planning and business strategy and relates it to competitive advantage and company performance. To achieve this objective, the paper first delineates the dimensions of strategic MIS planning, focusing on both content and process issues. The notion of fit within dimensions, between sets of dimensions (process and content), and between MIS planning and competitive strategy is also introduced. Next, employing the Miles-Snow typology of business strategy, the paper posits normative differences in the dimensions of strategic MIS planning along different business (or competitive) strategies. The implications of our study for both decision makers and scholars are discussed. Propositions that tie competitive strategy, strategic MIS planning, and company financial performance are then presented. The paper concludes by providing direction for future research.     

From Customer‐Oriented Strategy to Organizational Financial Performance: The Role of Human Resource Management and Customer‐Linking Capability

Drawing on the organizational capabilities literature, the authors developed and tested a model of how supportive human resource management (HRM) improved firms’ financial performance perceived by marketing managers through fostering the implementation of a customer‐oriented strategy. Customer‐linking capability, which is the capability in managing close customer relationships, indicated the implementation of the customer‐oriented strategy. Data collected from two emerging economies – China and Hungary – established that supportive HRM partially mediated the relationship between customer‐oriented strategy and customer‐linking capability. Customer‐linking capability further explained how supportive HRM contributed to perceived financial performance. This study explicates the implication of customer‐oriented strategy for HRM and reveals the importance of HRM in strategy implementation. It also sheds some light on the ‘black box’ between HRM and performance. While making important contributions to the field of strategy, HRM and marketing, this study also offers useful practical implications.     

Customer Learning Processes,Strategy Selection,and Performance in Business‐to‐Business Service Firms*

Learning about customers takes place through relevant dialogues with those customers, also known as customer relationship management (CRM). As relationships develop, information about the customer is gathered in the firm's customer information systems (CIS): the content, processes, and assets associated with gathering and moving customer information throughout the firm. This research develops a measure of CIS management capabilities based on learning organization theory and measured by the ability to get, store, move, and use information throughout the business unit. This measure is then used to analyze customer learning processes and associated performance in the context of marketing strategic decision making. This study of 209 business services firms finds that generic marketing strategy positioning (low‐cost and differentiation) and the marketing tactics of personalization and customization are related to CIS development. Customer information systems development in turn is associated with higher levels of customer‐based performance, which in turn is associated with increased business growth. Since the strongest association with customer‐based performance is strategy selection, the long‐term benefits of the knowledge gained from the CIS may be in the ability to assist in measuring customer‐based performance, rather than in the ability to immediately contribute to performance. Finally, for these firms, customization and personalization are not directly associated with performance and thus may not be necessary to support every firm's marketing strategy.     

CEO proactiveness,innovation, and firm performance

Chief Executive Officers (CEOs) are essential in driving firm innovation. However, despite existing research on CEO personality characteristics and firm innovation and performance, we know relatively little about how personality characteristics reflecting anticipatory action and strong outcome-oriented components, such as proactiveness, shape firm innovation and performance. We explore the relationship between CEO proactiveness and three facets of organizational innovation, as well as its impact on firm performance. We suggest that CEO proactiveness is manifested in different network-building, problem-solving, and feedback-seeking behaviors with different implications for exploratory innovation, exploitative innovation, and organizational ambidexterity, and that its effect on firm performance is partially mediated by organizational ambidexterity. By examining the influence of this important CEO personality characteristic on key firm strategic choices and performance, we extend research on strategic leadership and firm innovation and performance.     

Marketing as an Investment in Shareholder Value

We present resource‐based and capability‐based arguments of marketing investment intensity to offer a strategic view of marketing as an investment in shareholder value. We find that marketing investment intensity has a U‐shaped quadratic effect on shareholder value creation (Tobin's q) that calls for marketing investment to be protected and increased, not surrendered. We show how marketing investments interact with investments in R&D, human capital and operations to reveal how strategic co‐investments can alter the shareholder value of marketing. Finally, we show how competitive intensity and failings in the firm's investment productivity (its ability to convert investment expenditure into sales) point to malaise in the firm's own strategic architecture as a fault for perceived poor returns from marketing investments. Our findings suggest that marketing investment should not be scapegoated when its contributions to shareholder value are not as expected. When invested in strategically and in combination with other investments, marketing can unlock exciting improvements in shareholder value.     

知识管理战略、组织能力与绩效的关系实证研究

本文在文献研究的基础上归纳出描述和测量知识管理战略的六个主要维度:外部导向、内部导向、显性导向、隐性导向、探索导向和利用导向.基于397家中国企业的问卷调查所得数据,本文检验了知识管理战略、组织能力和企业绩效三者的关系,发现知识管理战略能显著地提升组织能力,而组织能力对企业绩效有显著的促进作用,组织能力在知识管理战略与企业绩效的关系中起完全中介作用.     

A Resource‐Based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage

A critical decision problem for top management, and the focus of this study, is whether the CEO (chief executive officer) and CIO (chief information officer) should commit their time to formal planning with the expectation of producing an information technology (IT)‐based competitive advantage. Using the perspective of the resource‐based view, a model is presented that examines how strategic IT alignment can produce enhanced organizational strategies that yield competitive advantage. One hundred sixty‐one CIOs provided data using a postal survey. Results supported seven of the eight hypotheses. They showed that information intensity is an important antecedent to strategic IT alignment, that strategic IT alignment is best explained by multiple constructs which operationalize both process and content measures, and that alignment between the IT plan and the business plan is significantly related to the use of IT for competitive advantage. Study results raise questions about the effect of CEO participation, which appears to be the weak link in the process, and also about the perception of the CIO on the importance of CEO involvement. The paper contributes to our understanding of how knowledge sharing in the alignment process contributes to the creation of superior organizational strategies, provides a framework of the alignment‐performance relationship, and furnishes several new constructs.     

International Strategy and Knowledge Creation: The Advantage of Foreignness and Liability of Concentration

International business scholars increasingly emphasize regional strategies based on an optimal location of downstream sales. There has been less scholarly attention, however, to the relationship between international strategy and upstream knowledge creation including R&D. Building on contemporary strategic management theory and the knowledge‐based view we remedy this. The viability of home‐regional or bi‐regional strategies is based on common assumptions that imply negative consequences of distance and foreignness for downstream sales and marketing and benefits from agglomeration for upstream knowledge creation activities including R&D. In contrast, we propose that upstream knowledge creation, radical innovation in particular, rather gains from distance and foreignness and from being dispersed, suggesting the effectiveness of a global strategy. Based on the resource‐based view and recent research on the economics of strategic opportunities and competitive advantage, we provide theoretical explanations for this. We demonstrate how a global multinational corporation is uniquely equipped with knowledge extensity including heterogeneous social‐identity frames in multiple sub‐units. Thanks to arbitrage advantages between the sub‐units’ separate and often locally embedded knowledge, a global multinational corporation can address complex interdependences and interactions between knowledge sets required for knowledge creation. This suggests that maximum exploration capabilities are made possible by a global rather than a home‐regional or bi‐regional strategy.     

Consumer Behaviour and Order Fulfilment in Online Retailing: A Systematic Review

This paper provides a systematic review of consumer behaviour and order fulfilment in online retailing. The objective of this review is threefold: first, to identify elements of order‐fulfilment operations that are relevant to online consumer behaviour (purchase, repurchase, product return); second, to understand the relationship between order‐fulfilment performance and consumer behaviour; and third, to inspire future research on developing consumer service strategies that takes account of these behavioural responses to order‐fulfilment performance outcomes. The paper is based on a systematic review of literature on online consumer behaviour and order‐fulfilment operations, mainly in the fields of marketing and operations, published in international peer‐reviewed journals between 2000 and September 2015. This study indicates that the current literature on online consumer behaviour focuses mainly on the use of marketing tools to improve consumer service levels. Very little research has been conducted on the use of consumer service instruments to steer consumer behaviour or, consequently, to manage related order‐fulfilment activities better. The study culminates in a framework that encompasses elements of order‐fulfilment operations and their relationship to online consumer behaviour. This paper is the first comprehensive review of online consumer behaviour that takes aspects of order‐fulfilment operations into account from both marketing and operations perspectives.     

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.     

Organizational dynamics and global integration: A perspective from subsidiary managers

This study establishes a relationship between organizational dynamics and overall integration within MNEs from the perspective of foreign subsidiaries in a dynamic environment. While previous empirical studies have emphasized that overall integration is determined by environmental and industrial pressures, we propose that integration is also affected by strategic capabilities, organizational infrastructures and strategic needs of foreign operations. Analysis of survey data including 168 foreign subsidiaries in a large emerging foreign market suggests that the resource distinctiveness committed to local operations is positively associated with overall integration, while the strength of networking with local businesses and governments is positively associated with overall responsiveness. The effectiveness of established information flow and coordination between a focal subsidiary and the rest of the network has a favorable effect on integration. Moreover, strategic needs in exploitation of factor endowment contribute to higher levels of integration. These needs also moderate the relationship between dynamic capability and overall integration.     

The Effects of Transformational Leadership on Organizational Performance through Knowledge and Innovation*

Today's information and knowledge society requires new leaders who can confront a reality based on knowledge and foster innovation to achieve improvements in organizational performance. However, organizations sometimes fail to achieve sustainable competitive advantage due to their limited understanding of the relationships between these strategic variables. To date, very little research has analysed the direct and indirect relationships between these variables. Our study seeks to fill this research gap by analysing theoretically and empirically how the leader's perceptions of different intermediate strategic variables related to knowledge (knowledge slack, absorptive capacity, tacitness, organizational learning) and innovation influence the relation between transformational leadership and organizational performance. Based on the literature, we develop a theoretical model that shows the interrelations between these variables. We then test the model using data from 408 Spanish organizations, discuss the findings and provide several implications for business practitioners.