Multimarket pioneers: Does multimarket contact improve their performance?

First-mover advantages (FMA) and multimarket contact (MMC) have evolved independently in the strategic management literature. This is surprising because FMA erode as a result of competition which, in turn, is affected by MMC. This paper links these literatures through the concept of spheres of influence and analyses the effect of MMC on pioneers' profitability. We use the order of market entry to identify spheres of influence and to determine their distribution among multimarket firms. The distribution of spheres of influence allows us to distinguish between reciprocal MMC and non-reciprocal MMC and to study how each of them determines pioneers' profitability. We test our hypotheses in the mobile telecommunications industry. Our findings show that reciprocal MMC has a positive effect on pioneers’ results, but non-reciprocal MMC negatively affects them.     

Rivalry and strategic groups: what makes a company a rival?

Strategic group literature has generated a significant amount of research over recent decades. However, the rivalry implications of strategic group have remained unclear. This paper analyses rivalry and strategic groups in the house building industry in a small town from a cognitive approach. We consider rivalry as a subjective and directional phenomenon. Estimating rivalry as the direct identification of competitors we try to explain whether similarity affects rivalry and what factors make a company a “rival”. Results show that perceived rivalry is strongly related to size, past performance, subjective similarity and strategic group structure.

The strategic planning matrix—a quantitative approach

This article introduces a new strategy formulation analytical tool called the Quantitative Strategic Planning Matrix (QSPM). QSPM represents an objective approach for evaluating and choosing among alternative strategies in both small and large organizations. Several practical applications of QSPM are provided. The positive features and practical limitations of QSPM are described. A number of useful tips for effective strategy formulation are presented.     

Does customer or competitor performance drive operations prioritisation?

The purpose of this research is to identify the impact on operations managers of their perceptions of customer requirements and competitor performance on their determination of operations priorities. Data were obtained from a multiple respondent survey. Analysis involved an ordered choice model. The process of strategic prioritisation differs according to the specific performance dimension. Quality-based objectives are focused on the voice of the customer; cost-based objectives are influenced by a balance of importance to customer and performance against competitor. Other criteria (flexibility, dependability, speed) objectives are more influenced by perceptions of competitive benchmarking. This large sample survey of operations managers’ perceptions offers a valuable insight into their motivation for focusing on different operations criteria.     

Do environmental management systems improve business performance in an international setting?

With the worldwide increase in the adoption of environmental management systems (EMSs), some research has emerged that evaluates the reasons why facilities adopt them. However, there is little information about how these motivations extend to different international settings, and the link between the comprehensiveness of an EMS and business performance has yet to be demonstrated. While both institutional pressures and resources and capabilities may encourage EMS adoption and improved business performance, questions remain about whether organizations that are motivated mainly by their resources and capabilities benefit to the same extent as organizations that are driven to adopt an EMS mainly because of institutional pressures. We analyze these relationships using OECD survey data from manufacturing facilities operating in Canada, Germany, Hungary, and the United States. Our results show that facilities that are motivated to adopt more comprehensive EMSs because of their complementary resources and capabilities, such as export orientation, employee commitment and environmental R&D, (as opposed to institutional pressures) observe greater overall facility-level business performance.     

Does strategic corporate performance depend on corporate financial architecture? Empirical study of European,Russian and other emerging market’s firms

Performance of the firm depends on its structural dimensions: capital structure, ownership structure and corporate governance. Their interactions are known as corporate financial architecture according to S. Myers. In this paper we analyze financial architecture which is a mix of ownership structure, capital structure, control and board’s composition, and therefore, provides the given framework for improving corporate performance. We contribute to the literature by different attributes of our study. In contrast to most empirical papers on performance, we develop integrated rather than segmented approach combining the intrinsic components of corporate financial design in one research model. We introduce new variable to capture the structure of ownership for the purpose of performance analysis. Our third contribution is based on comparative analysis of the influence of financial architecture over corporate performance in rather different capital market environment: developed European and emerging (developing) capital market’s countries. We start with a classic empirical model of the impact of ownership structure, capital structure and other components of financial architecture on the corporate performance. Further we verify the validity of exogenous nature of key variables of the classic model when applying it to companies in developed and emerging market environment. Our results could have some important policy implications for the firms in normal economic environment as well as in the period of global economic crisis. We found that the higher proportion of related ownership which indicates investors with significant voting power and the board’s composition affect firm performance positively. The related shareholders and independent directors seem to add more value to firms while the impact of government ownership differs depending on the country. The emerging market’s sample versus the one from developed countries proves the stronger influence of corporate financial architecture over performance.     

Who influences strategic decisions?

Drawing on information provided by 407 European top managers, the results of this study indicate that the influence process varies for different types of strategic decisions. Each of three types of strategic decisions—product-market, technological and administrative—was primarily influenced by a different set of departments. Only the managing director maintained moderate influence over all decisions. The patterns of effective power bases also differed for each type of decision. Environmental scanning was a more important source of departmental influence on product-market decisions while formal position and access to resources proved more important for influencing technological and administrative decisions.     

An integrative spatial capital-based model for strategic local planning – An Israeli case

This paper presents an integrative model for strategic local planning based on the concept of spatial capital. The model bridges the gap between vision and reality by stimulating actions that are directed at mitigating challenges to the vision. The model uses the concept of ‘spatial capital,’ which is based on the accumulated assets and capabilities of a region. In addition, ‘development engines,’ which are alternative macrostrategies designed to help achieve the major goals set by the plan’s vision, are offered for use by the model. The developed model aims to achieve a better integration of the region’s overall capital resources.     

Does shareholder protection affect the performance of analysts as a gatekeeper?

This paper investigates the effect of shareholder protection on analysts’ performance. The important corporate governance role analysts can play by monitoring management has largely been ignored in the literature. Using a newly constructed index, we are for the first time able to analyse how changes in shareholder protection over time affect analysts’ performance as a gatekeeper. We find that strengthened shareholder protection improves analysts’ performance as a gatekeeper, i.e. analysts’ ability to reduce information asymmetry improves with strengthened shareholder protection. However, we also find a substitution effect: Strengthened shareholder protection makes analysts’ services less valuable to investors, thereby leading to a reduction in the number of analysts following firms.     

The governance of strategic networks: how do different configurations influence the performance of member firms?

Journal of Management and Governance - The purpose of this paper is to analyze how different configurations of network governance influence the performance of member firms. To achieve this...     

Human resource strategy to improve organizational performance: a route for firms in Britain?

Performance, in the context of organization, is not only a broad concept which has been used synonymously with productivity, efficiency, effectiveness and, more recently competitiveness, it has also been a subject of study for social scientists from a wide range of disciplinary perspectives. More recently, efforts have been made by human resource management (HRM) theorists to try to establish a causal link between HRM and performance. This has led to a growing number of studies which examine the potential contribution that good human resource policy can make to improving organizational performance. This paper is not concerned with the conceptual debate of HRM and performance. Rather, it explores whether adopting good HR practices to improve performance is a practicable approach to organizations in the UK. Drawing on existing empirical evidence from other studies, the paper reviews the strategies British firms deploy to improve labour productivity. In particular, the issue of whether they use the 'high-road' HRM or 'low-road' HRM strategy to enhance performance is investigated. This paper concludes by suggesting that high-road HRM may lead to better organizational performance, but it may not be a strategy that firms opt for, given the historical, social and institutional context of employment relationships in Britain.     

Does task-related conflict mediate the board gender diversity–organizational performance relationship?

The board gender diversity–organizational performance relationship has been criticized for the absence of tests of the underlying mechanisms of this relationship. This study aims to empirically investigate whether task-related conflict – one of the prime theorized mechanisms of board diversity – indeed mediates this relationship. Consistent with the literature, we theorize how board gender diversity affects task-related conflict, and how task-related conflict in turn affects organizational performance. We test our hypotheses in the Dutch water authority sector 2009–2014, where we have access to the detailed board meeting minutes of 27 organizations. Our results find support for a partial mediating effect of task-related conflict in the board gender diversity–organizational performance relationship. We conclude by discussing the implications for the board gender diversity literature.     

Should government and company planners influence each other?

With the National Plan of 1965, government planning in Britain got off to a poor start. Now, with the Governement's green paper, The Task Ahead, it seems about to be reborn. In this article the author argues the case for closer co-operation between planners in government and planners in business along the lines of the planning dialogue which occurs in NEDC. He answers critics who complain of government pressure on industry and the undue influence of business on government, and suggests that “consultative planning is essential if national plans to be made flexible and realistic, and if company plans are to be made with the national interest in mind”.     

Chief executive officers' appearance predicts company performance,or does it? A replication study and extension focusing on CEO successions

In this article, we aim to replicate and extend a study that has revealed a link between naïve personality and leadership judgments and company profits. Rule and Ambady (2008) found that power- and leadership-related perceptions derived from CEOs' faces were significantly related to company profits. In our follow-up study and extension, we focus on CEO succession events to explore the longitudinal relationship between personality- and leadership-related perception ratings and company performance. We study the context of CEO successions to test whether variations in personality- and leadership-related perceptions from CEO faces are related to company performance and whether variations in company performance are associated with the type of CEO that is chosen. We can replicate the original correlative leadership effect using a temporal extension of the analysis horizon but fail to replicate the link between CEO leadership perceptions and company performance when using a different measure of performance and a different analytical approach to account for the longitudinal nature of our data. Our results have important implications for further theorizing on the relationship between subjective leadership perceptions and objective performance measures.     

Strategic vision or strategic con?: Rhetoric or reality?

Major companies devote considerable effort to communicating corporate visions and missions. Yet three recent surveys suggest that much of this effort has been counter-productive. A gap has emerged between rhetoric and reality. Arenas of confrontation have arisen between directors and managers, head offices and business units, holding companies and their subsidiaries, and between specialists and generalists. A widespread desire for corporate transformation is not matched by understanding of how to bring it about. The lack of top management commitment and of communication skills are major barriers to change. More competent directors and more effective boards are needed. The article suggests key roles for the chairman and the chief executive. It examines how best to share a compelling vision, and identifies a requirement for new attitudes and approaches to communication.     

Does corporate and country corruption risk affect CEO performance? A study of the best-performing CEOs worldwide

By combining upper echelon theory with meso theory of management, this study investigates the relationship between both corporate and country corruption risk and the performance of CEOs, while controlling for a set of individual-level variables. We used a sample of 455 observations related to 249 listed companies from a list published by the Harvard Business Review of the world's best-performing CEOs, in both developed and emerging countries, over the 5-year period between 2013 and 2017. We implemented hierarchical linear models in a three-level approach based on country- (macro), firm- (meso), and individual-level (micro) variables. We found that corporate corruption risk negatively impacts CEO performance, although this relationship is also significantly moderated by the corruption risk at the country level. Our results support the view that corporate corruption prevention devices play a strong governance role in countries with high corruption risk. By exploring the interplay between these macro- and meso-factors in explaining the micro-level of CEO performance, our paper aims to build a contextualized meso-theory of corruption risk.