The new class of chief executive officer

This article summarizes the results of research into the ways in which environmental forces are changing the management task of chief executive officers of large corporations. The article comments on the changing business environment; on the time spent by managers on environmental forces; changes in the basic strategies of managers concerned with major social and political environmental forces; the characteristics which chief executive officers believe their successors must have to be effective managers; major ways in which the impact of environment on the CEO is changing the infra-structure and decision-making process; and, finally, a brief look at the future.     

Internal knowledge generation: the research laboratory and innovative productivity in the pharmaceutical industry

As firms face increasing pressures associated with new forms of knowledge-based competition, researchers have begun to focus on knowledge acquisition strategies to the point of ignoring knowledge creation strategies. This paper investigates the impact of research centers in the pharmaceutical industry upon this neglected form of knowledge creation–innovation productivity. We find that firms with separate research facilities are more innovative than firms without such facilities. The results diverge when locational distance of the laboratory is considered for patent versus drug innovations, and vary across diversification types. These findings suggest that managers and researchers need to consider the relationship between the research center and corporate headquarters — and the role of the corporate headquarters — when developing knowledge generation strategies.     

French and British Top Managers' Understanding of the Structure and the Dynamics of Their Industries: a Cognitive Analysis and Comparison

This paper presents the findings of an exploratory study of the content of and differences between managerial frames of references with regard to the structure and dynamics of competitive environments. These frames of references are examined and compared at both the industry level and the country level; and the paper shows the influences of both industry and institutional structures and national culture on managerial thinking. It therefore contributes to the field of comparative management, as well as the growing interest in cognitive analysis in the field of management. The study is particularly significant since (a) its context is the rapidly changing industry environment of Europe, and (b) the managers are all involved in the development of strategies for their firms. Thirty three top managers (16 English and 17 French) were interviewed in four industries (brewing, car manufacturing, retail banking and book publishing) on their understanding of their industry and the strategy of their company. Content analysis of the transcribed interviews surfaces cognitive constructs which facilitate the identification of similarities and differences between managers, (a) within industries, (b) across industries, (c) within countries, (d) between countries and (e) between countries within the different industries. The analysis also provides means whereby the constructs can be represented in the form of cognitive maps.     

Emerging trends in US retailing

This article examines the trends shaping the retail environment as we enter the next century. A modified delphi approach was used to access managerial perceptions of the changing retail landscape. Changes in consumer markets, price and branding strategy, store formats, retail institutions and applications of technology were derived from the analysis. From this, a series of managerial considerations are proposed to focus retail managers on developing new strategies to position themselves effectively in the new global marketplace.     

Managing strategies incrementally

When sophisticated large organizations make significant changes in strategy, the approaches they use frequently bear little resemblance to the rational-analytical systems so often touted in the planning literature. Such systems are rarely the source of overall corporate strategies. Instead, the processes used to generate major strategies are typically fragmented and evolutionary with a high degree of intuitive content. Although one usually finds imbedded in these fragments some very refined pieces of formal analysis, overall strategies tend to emerge as a series of conscious internal decisions blend and interact with changing external events to slowly mutate key managers' broad consensus about what patterns of action make sense for the future. Based on a multi-year study of how large companies change their strategies, this article summarizes why strategic managers do proceed incrementally and how they manage the complex process of generating an overall strategy.     

Beyond appearances – Do dynamic capabilities of innovative firms actually differ?

Dynamic capabilities are the higher-order capabilities needed for changing operational-level capabilities and learning in new domains, and thus they are critical for innovation activities. The aim of this study is to explore heterogeneity of dynamic capabilities in a comparative setting. We chose four innovative case firms representing a single industry, namely magazine publishing. The similarity of the cases provided a solid foundation for comparing their dynamic capabilities. Based on the results it seems that the practices comprising sensing capabilities are likely to be similar across firms within a single industry, while practices comprising seizing and reconfiguring types of capabilities may differ more between companies. Thus dynamic capabilities have both idiosyncratic and common features across an industry. These findings are relevant to practicing managers in that they illustrate that competing companies within the same industry tend to develop similar types of practices to match the changing requirement of the operating environment. Hence, managers should not be falsely comforted by the current situation within their firms, but proactively develop their unique capabilities to gain advantage over their competitors.     

Information Specificity and Hazard Risk Potential as Moderators of Trust Asymmetry

Trust in risk managers appears to be an important antecedent of public acceptance for many hazards. However, such trust may be fragile since research suggests that negative performance information has a greater impact than positive performance information (Slovic, 1993). Closer examination of these findings suggests two potential moderators of this valence-related asymmetry-information specificity and hazard risk potential. First, we predicted that the asymmetry would be less evident for low versus high specificity information (risk management policies vs. concrete events). Second, we predicted that it would also be less evident for a low- versus high-risk hazard (pharmaceutical vs. nuclear industry). Study 1 reanalyzed Slovic's original trust asymmetry data for the nuclear industry. In line with Prediction 1, trust asymmetry was less evident for policy than event-related information. Using a new set of items with more clearly defined levels of specificity, Study 2 replicated and extended these findings for the high-risk hazard (nuclear power). In line with Prediction 2, trust asymmetry was even less evident for the low-risk hazard (pharmaceuticals). Positive policies in this industry actually had a greater impact on trust than negative ones, in contrast to previous findings. Results support an information diagnosticity account of earlier findings and suggest that trust in risk managers may be more robust than previously believed.     

Greening the health care supply chain: Triggers of change,models for success

A historic agreement signed in July 1998 between the American Hospital Association (AHA) and the U.S. Environmental Protection Agency (EPA) signals changes in waste management in the health care industry. The agreement, which calls for a fifty percent reduction of hospital waste by 2010, will not only have an impact on hospital facility managers, but throughout the entire healthcare supply chain. As this article argues, improving the environmental impact of the health care industry should start with the health care delivery institutions themselves. The health care industry has a long way to go in addressing its environmental impacts, compared to the energy and chemical industries, for example. One reason is that these industries are raising their suppliers' environmental performance. Health care delivery institutions can effectively pull environmental performance requirements through the entire supply chain as well. This can be accomplished by examining supply chain strategies of leading industries and firms and considering the role of environmental management systems such as a ISO 14001 throughout the entire chain.     

Managing international business operations in a changing institutional context: The case of the St. Petersburg hotel industry

This article advances the institutional view of business strategy by analyzing the post-socialist institutional transition in Russia and its implications for business strategies in the St. Petersburg hotel industry. The development of the institutional context is divided into three periods: socialist, early transition and late transition. The strategies of foreign hotel enterprises characteristic of each period are investigated with respect to entry/ownership mode, product, supply and human resource management strategies, and sales and marketing. The study is based on 24 semi-structured interviews with hotel managers, and a variety of local archival sources.The analysis shows how tightly companies are integrated with the formal and informal macro- and industry-level institutional context of Russia. In the case of the hotel industry, the impact of the change in the institutional context from a centrally planned to a market economy centers on the connections of the hotel enterprise with public and private sector actors. Here, empirical analysis shows that first, the degree of integration varied between the three time periods examined, second, many relevant institutional effects are observed at industry level, and third, foreign and local enterprises differ especially during the period of rapid institutional change.     

How to beat early movers: The role of competitive strategy and industry dynamism on followers’ performance in the telecommunications industry

The idea of first-mover advantages is frequently used by both managers and academics alike. Despite its importance for understanding the performance of entry in new markets, the evidence remains mixed. Our study advances research on the entry timing-performance relationship by adopting a contingency perspective that includes both micro (competitive strategies) and macro (industry dynamics) dimensions to explain differences in entrants' profitability. In this paper we focus on follower firms and propose that cost leadership is the best strategy for them to successfully entering a market. In addition, recognizing the contingency effect of industry dynamism, we also examine how market growth and technology evolution affect the effectiveness of followers’ competitive strategies. Specifically, we propose that followers will be better off by using cost strategies in growing markets, while when operating in contexts of technological change the performance of the cost leadership strategy will be lower.     

Mining the Periphery for New Products

Revolutionary products often come from upstart players or companies outside the industry, while mainstream operators follow a risk-averse path of concentrating on their current business. This article urges companies to channel resources into looking at the periphery for ideas that could be profit-drivers of the future. It suggests three strategies for finding new products: frame the landscape; develop game-changing hypotheses; and use targeted hunting. It concludes by saying that these approaches will encourage managers to combine broad searching and thinking with focused evaluation and execution.     

With a little help from my fans: the transformative role of the consumer in music co-production

This paper examines how the transformative role of the consumer in co-production is affecting key stakeholders within the music industry. The study explores the changing consumer role in co-production, how it is affecting content quality, the implications for music artists and record labels, and how they are approaching (and should approach) co-production. The research methodology consists of a three-stage interview design of 52 in-depth, semi-structured interviews with senior members of music organisations (including artist managers and major labels). An inductive, data-driven four-phase constant comparison analysis technique is used to analyse the data. The findings contribute to the co-production research domain by offering new insights from a music industry context and presenting new theoretical models for how co-production is affecting industry stakeholders. Implications for industry, policy and future research are also provided.     

Changing risk preferences in supply chain inventory decisions

The risk preferences of managers may cause their inventory ordering decisions to deviate from the optimal policy. Past studies in operations management have produced mixed results. This study examines this proposition using decision data collected from a supply chain experiment. This article finds that changing the risk preferences of managers with respect to demand changes and supplier failures is a significant behavioural factor in explaining deviations in ordering decisions. This result provides an additional behavioural cause in explaining the bullwhip effect in supply chains. It also provides insights on the challenges for reducing the bullwhip effect in supply chains.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

Evaluating barriers to implementing green supply chain management: An example from an emerging economy

Abstract

This study proposes a fuzzy-based VIKOR (VIseKriterijumska Optimizacija I Kompromisno Resenje) framework for evaluating barriers to implementing green supply chain management (GSCM) in the context of an emerging economy. The methodology uses a mix method approach combining literature review and opinions of some selected managers from the plastic industry of Bangladesh to identify four main-barriers and twenty-five sub-barriers relevant to GSCM implementation. Fuzzy-VIKOR approach was applied to aid in the analysis of the barriers in the plastic industry of Bangladesh. The findings of the study show the order/rank of intensity and severity of the main-barriers to implementing GSCM practices in the plastic industry of Bangladesh as follows: ‘inadequate knowledge and support’, ‘insufficient technology and infrastructure’, ‘financial constraints and unsupportive organizational’ and ‘operational policies’. The results also show the rankings of the sub-barriers under each main barriers. This research contributes to the literature in a number of ways. First, it identifies multi-levels of barriers to GSCM implementation. Secondly, it identifies and proposes alternative action plans (strategies) to help mitigate and implement GSCM practices. Though this study has significant contributions, a number of limitations do exist. The barriers in this study were identified using the extant literature review and industrial managers’ opinions. A more scientific approach and empirical validation is required, especially in the plastic manufacturing industry of Bangladesh to identify more new challenging barriers. However, this study can provide managers with a better understanding of the barriers to implementing GSCM practices and motivate the researchers to further extend the investigation on the insights for developing strategic plans for implementing GSCM practices in the plastic industry of Bangladesh.     

Internationalizing managers: Speeding up the process

Most multinational companies agree that their managers need international expertise; but a recent survey surprisingly revealed that more than half of the large European corporations participating in the study lacked a strategy — either in writing or as a commonly articulated value — for internationalizing their managers (Price Waterhouse/Cranfield, 1991, p. 14). Not only must cutting-edge companies implement this process, but they have to find ways to speed it up to stay competitive.Brooklyn Derr and Gary Oddou report a 1991 survey conducted with 105 European multinationals employing an average of 30,000 workers each. The respondents, usually directors of human resource management and management development, identified the current strategies most frequently used to internationalize their firms, the importance assigned these strategies (not necessarily the same thing), and short-range trends. The article also explores the different challenges presented by attempting to internationalize senior managers as compared to junior managers.Expatriation/repatriation has been the traditional means of internationalizing managers, but companies are not doing a uniformly able job in preparing their managers for expatriation nor in taking advantage of their expertise after they return. In addition to making recommendations about expatriation/repatriation, the authors suggest newer, faster practices for internationalizing managers.     

Complacency in Process Safety: A Behavior Analysis Toward Prevention Strategies

ABSTRACT

Complacency inhibits safe behaviors of workers and managers. This is of concern to industries where process safety is needed to reduce the chance of catastrophic events such as fires and explosions. A behavioral definition of complacency is offered as trending behavioral variation that eventually exceeds safety boundaries. Behavioral processes that contribute to these patterns of variability are discussed and analyzed, including habituation, extinction, unprogrammed reinforcement, the avoidance paradox, rule-governed behavior, and competing contingencies of production. Solution strategies are suggested that address this analysis of behavioral variance, including pinpointing behavioral variation related to safety, changing training design, strengthening positive reinforcement for process-related behaviors of workers and management, reducing sources of unprogrammed reinforcement for dangerous variation, strengthening rule-governed behavior, and changing contingencies for managers and executives whose decisions affect behavior and process safety at many levels in the company.     

IT服务企业中文化对知识共享与创新行为关系的影响

在全球一体化进程加速、IT服务企业员工文化价值取向趋于多元化的背景下,有必要了解员工文化观念对企业的影响。本文研究员工的集体主义观念和权力距离观念对IT服务企业中知识共享与创新行为之间关系的影响。在北京、西安的具有不同文化特色的IT服务企业进行问卷调查,收集了484份问卷,运用SPSS及SmartPLS进行数据分析。研究结果表明:员工的集体主义观念增强时,知识共享对创新行为的影响会增加;权力距离增大时,知识共享对创新行为的影响会减弱。对实践的启示是:管理者应培养、提高员工的集体主义文化价值观;根据公司的企业文化特色,区分对待员工权力距离对知识共享与创新行为之间关系的影响作用。     

A Contradiction in Terms? Making Sense of Emotional Intelligence in a Construction Management Environment

Emotional intelligence (EI) has been hailed as being critical to individual performance within organizations. However, recent theoretical debates indicate that scholars need to apply a more differentiated lens when examining the utility of EI in a particular organizational context. In this study, we seek to contribute preliminary empirical evidence to this debate. Drawing upon an interpretivist approach and a narrative analysis, we examine how UK construction project managers make sense of EI, and how this shapes their receptiveness to the construct. Our data analysis suggests that there are enduring, albeit changing, characteristics of the industry and the sensemaking processes of project managers that renders the construct, at least for the time being, of limited utility. Thus, our analysis is a cautionary tale for those management scholars and practitioners who argue for the ‘trainability’ of EI.     

“U.S. Pharmaceutical Gray Markets: Why Do They Persist—and What to Do about Them?”

This article illustrates how a traditional U.S. pharmaceutical industry supply chain operates, beginning with pharmaceutical compounds and ending at patient‐dispensing hospitals or pharmacies. Furthermore, to place the problem of U.S. drug shortages in historical perspective, a review of the annual volume of such shortages over the last decade is undertaken. Following this review of recent drug shortages is an analysis of the market forces and business decisions that drive the creation of a pharmaceutical gray market, its attendant “price gouging” and product integrity issues, and the alterations in the traditional pharmaceutical industry supply chain model. In response to persistent drug shortages, the U.S. Food and Drug Administration (FDA) has recently been empowered by the executive and legislative branches of the U.S. government to actively address this issue. To reflect these FDA challenges, a thorough review of these new agency charges and responsibilities is undertaken. Lastly, an analysis of the results of recent FDA public policy actions on mitigating drug shortages, as well as recommendations tor market‐based solutions to the gray market problem that pharmaceutical manufacturers, hospitals and pharmacies could institute as industry‐wide standards of business practice, are discussed in the conclusion.