THE ROLE OF SUPPLY MANAGEMENT CAPABILITIES IN GREEN SUPPLY

Managers realize that they should avoid complex green supply initiatives when they do not have the capabilities to implement them. However, they have little guidance on how these capabilities can be developed. This paper provides an initial analysis of the role of supply management capabilities in green supply. We argue that the implementation of green supply is better explained by focusing on the development and deployment of an organization's specialized internal resources, rather than by the more usual focus on external environmental pressures on a firm. Further, we argue that capabilities appropriate for green supply are developed by a proactive corporate environmental stance and by a more strategic purchasing and supply management approach. We test our model using data from a two‐phase survey of 70 operating units within UK public limited companies. Our results indicate support for our conjecture that supply management capabilities are jointly developed by a proactive corporate environmental approach and a strategic purchasing and supply process. Our study results should be useful to business strategists, regulators, and researchers interested in the predictors of corporate green behavior. They should also assist future researchers in many branches of environmental management who are seeking to explore the role of the internal capabilities of firms in supporting environmental management.     

Supply-Chain Strategy: Organizational Influence Through Supplier Alliances

The role of supply-chain management as an integral element in corporate strategy has been discussed in prior research, mostly at a broad conceptual level with relatively little empirical validation. This paper uses data from a longitudinal study of buyer-supplier relationships to evaluate the impact from firms' recent initiatives in developing strategic supplier alliances on the role played by the supply management effort in the corporate hierarchy. Contrary to anticipated results, the use of an alliance approach did not lead to any appreciable improvement in status and respect for supply management's role in developing corporate strategy. While several suggestions are offered to explain these results, the major conceptual models of supply-chain strategy are reassessed and a more appropriate and grounded framework for study is proposed. Further research is called for to empirically verify the link between strategic consideration for supply issues and firm success.     

我国上市公司治理结构与战略绩效的相关性研究

本文研究了我国上市公司治理结构安排的现状与代表公司战略绩效的公司价值指标的关系。在105家上市公司的相关资料基础上,具体考察了公司治理结构的股权结构、高层管理人员持股、两职兼任与分任、董监事会规模等几个方面对于公司相对价值和公司价值成长能力的影响。结果表明,我国上市公司的治理结构与公司战略绩效间存在一定的相关关系,但总体相关度低。这对于从提高公司战略绩效角度认识和改善我国上市公司的治理结构可以提供一些有益的启发。     

Manufacturing Proactiveness and Performance*

Since Skinner's [40] landmark article depicting the manufacturing function as the “missing link” in corporate strategic processes, a portion of the blame for inferior performance in many firms has been attributed to the subordinate strategic position of manufacturing. It has been argued that part of the solution to misalignments between the capabilities possessed by manufacturing and the requirements dictated by customers is for manufacturing to take a more proactive stance. However, little research has been reported which examines manufacturing proactiveness empirically. In this paper, we address this gap by developing an operational definition of manufacturing proactiveness and testing empirically whether a link exists between proactiveness and performance based on data collected from a sample of manufacturers. Based on the manufacturing strategy literature, we identify two major dimensions of manufacturing proactiveness: (1) the degree of manufacturing's involvement in the strategic processes of the business unit; and (2) the degree of commitment to a long-term program of investments in manufacturing structure and infrastructure aimed at building capabilities in anticipation of their need. We develop reliable scales for measuring each of the dimensions of proactiveness and use the data to provide evidence of a clear link between manufacturing proactiveness and business performance. We show that investments in structural programs coupled with either high levels of manufacturing involvement in strategic processes or planned investments in infrastructural programs correlate with higher than average performance.     

Developing strategic thinking in senior management

Chief Executive Officers have recently stated that their greatest staffing challenge for the 1990s is the development of strategic leadership in their senior management. In order to do this, it is necessary to identify the substance of strategic thinking, and the capabilities that must be mastered. Writers on strategy have identified six major elements of strategic thinking and these have been organized to reveal the tasks, questions, decisions, and skills that senior executives must acquire in order to lead their organizations strategically. Finally, the article identifies training programme elements which are used by Directors of Manpower Development to develop strategic leadership ability.     

动态能力如何影响企业绩效——基于中国企业的实证研究

本研究以中国企业为样本对动态能力如何影响企业绩效的问题进行了分析和探讨。数据分析结果表明,战略过程对动态能力与企业绩效的正向作用关系具有明显的中介作用。但是,不同的动态能力维度对绩效的不同方面影响程度也不同,动态外部协调能力对企业绩效各个方面影响的显著程度在所有维度中最为突出,是企业在超竞争环境中树立竞争优势的关键。此外,动态能力构成维度间的路径关系表明,动态信息利用能力在企业动态适应外部环境变化过程中具有非常重要的节点作用,是企业培育动态能力路径的关键。     

Conjoint effects of interacting strategy-making processes and lines of defense practices in strategic Risk Management: An empirical study

The ability to contain adverse effects of major risks under turbulent conditions and exploit the opportunities they present are fundamental concerns in strategic management and various institutions promote enterprise risk management (ERM) to deal with these challenges. Yet, our knowledge about how ERM affects performance and interacts with corporate strategy-making processes is limited. The ERM frameworks impose first and second lines of defense practices to integrate business operations and corporate risk oversight. Emergent strategies generate responsive initiatives and strategic planning coordinates updated actions. Hence, this study analyzes the conjoint effects of these ERM practices and strategy-making processes based on a large corporate sample and finds that ERM practices depend on strategy-making to attain effective risk outcomes. The application of ERM frameworks can, therefore, not be assessed in isolation, but must consider corporate strategy-making. This has implications for the way we conduct research on strategic risk management, how executives approach risk oversight and policy-makers impose formal risk governance requirements.     

Building Organizational and Scientific Platforms in the Pharmaceutical Industry: A Process Perspective on the Development of Dynamic Capabilities

In this paper, we examine the process of dynamic capability development in a large pharmaceutical firm. Using interviews with multiple managers at different organizational levels, we developed two narratives of the process of developing two separate dynamic capabilities in the same firm. We focus on three areas that prior research has shown to be critical in the early stages of the process of implementing new strategic initiatives: the cognitive orientations of key personnel, managerial action undertaken within the firm, and the firm's internal and external contexts. We provide evidence that managers undertake specific initiatives based on their own particular cognitive orientations , and that senior managers play a major role in the development of capabilities by imprinting the organization with their specific cognitive orientation and then orchestrating the multilevel organizational routines necessary for actualization of a capability. These replicable actions by senior management during the early stages of capability development can lead to the development of a capability that is not initially in the cognitive frames of lower level employees. Finally, we will show that internal and external contingencies have a profound impact on the decision to develop a capability, and to discontinue its development. Our findings thus suggest that the process of developing new capabilities shares common elements with other strategic initiatives.     

Is there an Expectations Gap in the Roles of Independent Directors? An Explorative Study of Listed Chinese Companies

This paper investigates whether an expectations gap exists in the control, strategic and resource provision roles that independent directors play in the corporate governance of listed Chinese firms and the factors that affect their performance of these roles. For this purpose, we interviewed Chinese executive directors, independent directors, institutional investors and stock exchange regulators. We find a performance gap but no reasonableness gap with respect to the control and strategic roles. The results suggest that the performance gap may be attributed to such factors as the ill‐defined roles, independent directors' limited amount of time commitment and their lack of competence and objectivity. Interestingly, there is disagreement over the protection of minority interest as the objective of the control role. We find no consensus on the desirability, reasonableness and effectiveness of independent directors' resource provision role, perhaps because of a pejorative interpretation of this role as an exercise of guanxi.     

Board governance of Strategic Change: An assessment of the literature and avenues for future research

Boards of directors play a central role in governing corporate strategic change. We systematically review corporate governance research on strategic change published over the past 40 years, differentiating between strategic change types and board characteristics. We identify three developments: a focus on specific strategic change types, board composition and structure, and North American listed firms as a dominant study context. Yet, our analysis of the literature shows that research on board governance of interrelated strategic changes, on different board roles and behaviour, and on the governance of strategic changes across different contexts remains underdeveloped. To address these research gaps, we suggest three future research avenues: (1) examining how boards govern interrelated changes in a strategic change portfolio and its evolution over time; (2) studying the mediating relationship between board governance (particularly different board roles and behaviour), strategic changes, and corresponding outcomes; and (3) gaining a better understanding of the role of context in board governance of interrelated strategic changes. We contribute to corporate governance research by developing a framework that synthesizes extant research on the relationships between different board governance variables and strategic change types, highlights important research gaps, and outlines several future research directions to address these gaps. Our framework and literature overview serve as analytical tools to examine whether boards are well-designed and prepared to govern multiple and interrelated strategic changes.     

战略性大股东的公司治理

吸收战略性大股东加盟是当前我国资本市场的新生事物,也是国有企业实行股权主体多元化的具体表现。本文从理论模型上探讨了战略性大股东加盟的基础条件、战略性大股东与公司价值之间的关系,以及战略性大股东的公司治理方式和对我国经济的启示。     

Environmental scanning—Does it help the chief executive?

Firms must correctly identify and analyze the nature of their strategic environments, their strategic oppurtunities and problems, and, formulate the precise strategy sets for corporate strategy for accomplishing the chosen organizational objectives and goals. This articles reports on a survey. Chief executives of industrial corporations provided their insights and experience (see Appendix I) and the findings are analyzed for the implications for other practising chief executives. The nature of environment which is strategic to a particular firm has considerable influence upon the firm's choice of strategies. The correct understanding of this influence is critical to the firm's organizational effectiveness. Only after a correct understanding can the chief executive formulate the precise mix of strategies and meld them in the strategy sets of the corporate strategy.The major findings indicate that the levels of difficulty experienced in accomplishing firm's objectives and goals depend upon the perceived nature of complexity, unpredictability and dynamism of the firm's strategic environments. The levels of clarity on strategic issues also depend upon these same attributes of environments. The formulation of strategy sets of corporate strategy are indicative of the ways by which the chief executive and his management team expect the firm to achieve its major objectives and goals by monitoring the strategy sets to keep in tune with the changing realities of the firm's strategic environments. General management, marketing and finance, were the vital group strategies, followed by production and research and development. External relations, personnel and procurement were the least important strategies. Firms operating in simple and stable environments experienced the least difficulty in achieving corporate goals, while firms in dynamic and complex environments experienced the greatest difficulty.     

Exploring information technology governance and control of web site content: a comparative case study

Information technology (IT) governance is a key component of corporate governance. Effective IT governance can support web-based strategic initiatives such as the dissemination of information on corporate web sites. However, the IT governance literature does not provide insights about the role of IT governance in controlling this information. There is also a lack of research in the web-based reporting literature on the important issue of control of web site content. This comparative case study aims to explore the relationships between IT governance and the control of web site content. In doing so, IT governance structures, processes and relational capabilities, as well as web site content control, are first described for each of four cases. Then, profiles of relationships between IT governance and web site content control are identified and key attributes characterizing the profiles are outlined. Findings suggest that IT governance within firms is more developed than the control of web site content. Moreover, IT governance structures, processes and relational capabilities can be related to control of web site content processes. IT governance structures can also be related to control of web site content structures and relational capabilities. This study contributes to the governance, control and web-based reporting literatures as an exploratory step before building a theory of relationships between IT governance and web site content control. Further, the study has practical implications as it enhances the understanding of the role of Boards of Directors, senior executives and internal auditors in IT governance and the control of web site content.     

A fundamental approach to strategy development

The problem of developing sound business strategy is probably more difficult now than it has been at any time since the war. In the midst of conflicting pressures of inflation, recession, unemployment, business failures, and social and political upheaval, today's businessman faces an environment which is both unfamiliar and uncertain. The lack of predictability concerning economic affairs can make it seem impossible to plan effectively for the future. Yet without sound strategy today, corporate survival itself may be called into question. What should be done?In this, the first of two articles, the author suggests that the key to strategy development now is to focus more than ever before on ‘fundamentals’. For the individual business, market share appears to be paramount, as is shown by the ‘experience curve effect’, a concept developed by the Boston Consulting Group in the course of its international work in advising companies on corporate strategy problems. Relative competitive position thus becomes the required simple but fundamental strategic goal. However, the quest for a superior market share must take place within the confines of an appropriately defined strategic business segment.In a further article in the February 1977 issue of LRP the author will go on to expand these conclusions concerning individual businesses, considering their implications for the sound development of strategy for the multi-business company.     

International corporate social responsibility and post-entry performance of developing market INVs: The moderating role of corporate governance mechanisms

Building on the stakeholder, agency, and resource dependence theories; this paper investigates the role of international corporate social responsibility (CSR) for the post-entry performance of developing market international new ventures (INVs) in the presence of corporate governance mechanisms to overcome their agency and environmental problems. We test and validate the conceptual model using survey data collected from 110 INVs operating in the developing market of Pakistan. Our results show that international CSR promotes the post-entry performance of developing market INVs. Further, we found that this association is moderated by corporate governance mechanisms of ownership, board independence, and returnee board members. Specifically, the relationship between international CSR and post-entry performance is weaker when ownership is concentrated but stronger when outsider and returnee board members are present in developing market INVs. The findings of this study have important theoretical and practical implications for INVs' social strategies and international performance contingent upon corporate governance.     

The role of strategic planning in small business

One of the important reasons for the tremendous interest in corporate strategy and strategic planning is that managers realize that a good strategy greatly increases the likelihood of a firm's success. Strategic planning is not the only reason for success, but there have been several studies which show that firms that plan their strategies are more effective. Taking the relationship of strategy and success as given, this paper considers the need to develop strategic planning for small businesses, and summarizes the findings of a recent survey on strategy of small businesses.Sixty-two minority and 58 non-minority small businesses were studied in this survey. A Likert-type questionnaire was used for the study. The survey indicates that the small businessmen fail, cope, and learn in the struggle for survival. Judgment, experience and intuition seem to play a more important role than any well structured technique of strategic planning. The businessmen were found to be ‘growth maniacs’, since growth may be the most tangible manifestation of achievement. The study leads to the conclusion that efforts should be made to improve the planning knowledge of this vital sector of economy.     

The interface of the top management team and the board: A dynamic managerial capabilities perspective

Although top management teams use their human capital, social capital, and cognition (i.e., dynamic managerial capabilities) to drive strategic change in their firms, faultlines within these teams may dampen the strategic change that they produce. While boards can enable but also restrict these change efforts, we know little about how precisely a board's monitoring and advice-giving condition the impact of the top management team's dynamic managerial capabilities on strategic change. We clarify how intense monitoring and advice-giving affect strategic change when faultlines between the top management team's and board's dynamic managerial capabilities are more or less salient. We explain that intense monitoring further stifles both the breadth and speed of strategic change that can be accomplished, and that this is more pronounced when the faultlines between the two bodies are strong. Furthermore, we outline that intensive advice-giving can be beneficial in improving the breadth of strategic change, but more so when these faultlines are weak and less so when they are strong. Notably we illuminate that the reverse happens in terms of speed of strategic change: intensive advice-giving can be detrimental engendering a further dampening of strategic change speed which is more pronounced when these faultlines are strong but less when they are weak.     

Strategic planning for distribution

The process of long range planning is relatively new to both the corporation and the distribution area. Until recent years the distribution function was considered a functional area which reacted to, rather than anticipated, corporate marketing effort. New technology in data processing and other areas has provided the support capability for developing both tactical and strategic planning. With this increased capability has come a new responsibility for distribution management to be future oriented—to anticipate the appropriate support role of physical distribution in supporting both short term and long term corporate goals.     

Strategic planning in a turbulent international environment

What we have argued in this paper is that fundamental changes in the multinational corporate environment are taking place raising proaches to multinational environmental surveillance and multinational strategic management. We arenot offering this as a forecast of what the future will bring. Instead, we are proposing this framework to point to the need for greater environmental orientation and adaptation. MNCs are now in a double squeeze and managers must unlearn past models and criteria to understand problem. But the challenge is more than conventional corporate planning. The problematique can be decribed as one of multinational strategic management. In the area of environment we need research and learning to address three basic questions:What is the MCE? What concepts of the environment should be considered for strategic management? What parameters should be monitored? What are some consequences of the concept of interdependence and turbulence?What multinational environmental surveillance should be done? What methodologies are needed? How can these be made operational? How can the corporation be educated to behave in the new mode required in view of these changes?What new strategic issues and challenges lenges emerges from the MCE? What new demands must be factored into the multinational corporate planning processes? What new content does the changing environment procedure? How can the broadening field of opportunities and threats be systematically mapped and understood?