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).     

Determinants and barriers to lean implementation in food-processing SMEs – a multiple case analysis

This study explored contextual or determining factors and their impacts on lean manufacturing in small- and medium-sized enterprises (SMEs) operating in food-processing industries. In order to get an in-depth insight into the real situation at the work floor, this study adopted a multiple-case-study research approach. The inherent characteristics of food industries, such as mandatory quality assurance requirements, low shelf life of food products, and the extremely volatile demand and supply presented barriers to lean manufacturing adoption. In addition, the challenges of ‘change’ in an SME environment are distinct from those faced by large organizations. The small size of the plant, the traditional setup, and inflexible layout make it difficult to implement lean manufacturing in food-processing SMEs. The knowledge of contextual factors influencing lean manufacturing adoption in food processing SMEs will be a contribution to current knowledge. Many studies have explored lean constructs and tools, while far fewer have explored the crucial element of actually implementing these. The study will also help practitioners to anticipate potential obstacles and take proper measures to deal with them during lean implementation.     

Measuring the logistics performance of internal hospital supply chains – A literature study

The patient care processes in hospitals are supported by a range of operational activities including inventory management and distribution of supplies to point-of-care locations. Hospitals carry large amounts and a great variety of items, and the issues of storing and distributing these items throughout the hospital supply chain are of great importance to providing high-quality patient service. Healthcare logistics encompasses the process of handling physical goods (e.g. pharmaceuticals, surgical medical products, medical equipment, sterile items, linen, food, etc.) and the associated information flows, from the reception of the goods within a hospital to their delivery at patient care locations. The medical supply costs constitute the second largest expenditure in hospitals, after personnel costs. A high-performing supply chain may realize improved outcomes (e.g. safe and quality patient service) and greater efficiency. Logistics managers need to identify opportunities to improve the logistics processes in order to lower costs and to improve patient care quality. However, in order to improve the logistics processes, you must understand how the healthcare supply chain is currently performing. Measuring the performance of the supply chain is fundamental to identify and address deficiencies in the logistics activities, and it serves as a good input for managerial decision-making. The purpose of this article is to present existing research on performance measurement at the internal hospital supply chain (e.g. inventory management, distribution activities), and more specifically in the operating theatre since it is among the most critical resources for a hospital. At the operating theatre, the requested items should be available at the right time at the right place, in the right condition, at the lowest cost possible. Furthermore, we will also discuss literature on multi-criteria decision-making techniques. It enables researchers to build a performance measurement framework and to prioritize between multiple performance indicators since a diverse group of stakeholders with conflicting interests is involved in the internal operating room supply chain.     

A multi-level analysis of leader–member exchange and creative performance in research groups

We investigated the effects of LMX in leader and member ratings on leader and member creative performance among 137 leader–member dyads in academic and commercial R&D groups. By using the sub-dimensions of LMX-MDM (affect, loyalty, contribution, and professional respect) we wanted to show which dimensions of the leader–member relationship that is beneficial to creative performance. Analyses were conducted with consideration to nesting and dependencies occurring in the data. Findings indicated that certain sub-dimensions of exchanges between leaders and followers are substantive for creative performance in either positive or negative ways, depending on academic and commercial setting. LMX sub-dimensions were also differently related to creative performance depending on leaders' or members' perspective. The mixed results of this study indicate that LMX theory needs further analysis from a multidimensional, multitarget, and multilevel perspective.     

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.     

Is CSR the panacea for SMEs? A study of socially responsible SMEs during economic crisis

There is increasing research attention as to how SMEs might realize corporate social responsibility opportunities. Most studies focus on the pursuance of responsible business strategies that result in favourable business outcomes. This study investigates SMEs who actively participate in CSR activities in a south-eastern European country during the economic crisis of the Eurozone. Data collected reveals that stakeholder salience and proximity moderate the relationship between CSR and financial performance. The context of this study is important as it addresses the paucity of research carried out in countries during economic crisis and sheds light on the positive aspects of CSR practices adopted during crisis.     

How Do Regulations Affect SMEs? A Review of the Qualitative Evidence and a Research Agenda

The effects of regulations on small and medium‐sized enterprises (SMEs) have garnered significant political attention internationally, yet, in the academic literature, these effects remain contested. This article presents findings from a systematic literature review of qualitative evidence on the effects of regulation on SMEs. It sets out the strengths of qualitative approaches in relation to more prominent and influential quantitative approaches. It conducts a thematic synthesis of the qualitative research to develop a conceptual framework that provides a processual, embedded understanding of the effects of regulations on SMEs. The conceptual framework highlights four key, interconnected processes: identification–interpretation; strategization; negotiation; and adaptation. This conceptual framework generates insights into dynamic and potentially indirect effects of regulations in relation to a complex array of influences external to and within the business. On the basis of these insights a new research agenda is proposed.     

A study of mediating variables of the relationship between 360° feedback and employee performance

The 360° feedback has been linked to several positive outcomes like improved performance, better interpersonal communication and smoother work relationships. Both academicians and practitioners would like more clarity regarding the link between 360° feedback and employee performance and the mediating factors in this relationship. This study empirically examines these mediating effects with a sample of executives (N = 198) working in four organizations in western part of India. The results show that interpersonal communication and quality of working life have a complete mediating effect. Leader–member exchange quality and perceived organizational support were found to have a partial but significant mediating effect. An elementary form of an integrated model, which includes all the four mediating variables and their interrelationships, has been developed conceptually. This model is examined and built up empirically using structural equation modelling.     

The challenge of board composition: Effects of board resource variety and faultlines on the degree of a firm’s international activity

This study explores the relationship between diversity in board composition and the degree of a firm's international activity. Specifically, we posit that board resource variety has a positive relationship with the international activity of the firm and that the strength of board faultlines moderates this relationship. Using data collected from Spanish public companies over the period 2005 to 2010, our analysis shows strong support for our hypotheses. Our work contributes to the literature on board's diversity by demonstrating that board resource variety should be captured by considering “the director profile” rather than any single attribute and that this type of variety can engender subgroups that weakens its benefits. Therefore, our results have implications for the strategic management challenge international firms face when they put together their boards. A corporate board needs to structure itself in such a way as to benefit from the wealth of the variety of its resources, but without succumbing to the risks posed by conflicts between subgroups arising from the presence of faultlines.     

How do industry and country impact firm performance? A national and supranational analysis

We contribute to the literature of the country, industry and firm effects on performance by developing an autoregressive cross-classified mixed-effect linear model that examines heterogeneity in the profitability of corporations in emerging and developed economies, as well as corporations located in different supranational regions. To this purpose, we simultaneously decompose abnormal returns into permanent and transitory components at the firm, industry, country and industry–country levels. We find that firms in emerging countries have significantly higher rates of performance persistence and different sources of persistence compared to firms located in developed countries. These differences are also evident between different supranational regions and countries at different levels of institutional development.

     

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.     

Empowering leadership and contextual ambidexterity – The mediating role of committed leadership for continuous improvement

Organisations nowadays try to be ambidextrous, that is, to balance exploitation and exploration, at the level of the organisational unit, or even at the individual level. Recent studies found that important drivers for contextual ambidexterity are a high level of empowerment and an orientation towards continuous improvement (CI) and innovation. It is, therefore, to be expected that empowering leadership and leader commitment to CI are associated with contextual ambidexterity. However, literature about the relationships between empowering leadership, committed leadership for CI and contextual ambidexterity is scant. Based on two separate survey studies, we validated both the relationship between empowering leadership and contextual ambidexterity, and the mediating effect of committed leadership for CI in the organisational unit level and the individual level. The managerial implications of this research is that organisations that want to facilitate contextual ambidexterity should not only empower employees so that they can decide more independently on how to organise their time and make choices when they conduct exploratory activities and when they perform exploitative activities. Management must also act as committed ambassadors for CI, as CI functions as an integration mechanism to create both alignment and adaptability, and hence contextual ambidexterity.     

Antecedents and effects of individual ambidexterity – A cross-level investigation of exploration and exploitation activities at the employee level

For long-term success, companies need to adapt to technological and environmental change. Organizational ambidexterity, which balances the exploration of new opportunities with the exploitation of existing capabilities, is increasingly viewed as a promising approach to tackle this challenge. However, despite the important role of individuals for firms' ambidexterity and performance, evidence on how exploration of new opportunities and exploitation of existing capabilities are triggered at an individual level and on their subsequent effects on overall performance is still lacking. Accordingly, the present research shifts the focus from organizational ambidexterity to individual ambidexterity. Based on data from 415 employees, the results of structural equation modeling show that both organizational architecture and organizational context can be used to induce individual ambidexterity. Furthermore, positive performance effects of individual ambidexterity across different organizational levels, namely the team and department levels, are confirmed.     

Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity

This study empirically analyzes whether gender diversity enhances boards of directors’ independence and efficiency. Using data from 3,876 public firms in 47 countries and controlling for a wide set of corporate governance mechanisms, we find that firms with more female directors have higher firm performance by market (Tobin’s Q) and accounting (return on assets) measures. The results also suggest that external independent directors do not contribute to firm performance unless the board is gender diversified. These results hold with respect to different estimation models and robustness tests. Overall, our findings provide evidence that the female directors enhance boards of directors’ effectiveness. Finally, we find that firms that are concerned with board independence, and that firms in more complex environments are more likely to have gender-balanced boards.     

Towards an adaptive framework of low-end innovation capability – A systematic review and multiple case study analysis

Low-end innovations, defined as new products or services that expand a market by addressing consumers with a low willingness or ability to pay, have a dual purpose – they can be a prerequisite for firm survival and growth and a major driver of societal change. To overcome the scattered nature of existing low-end innovation research and its lack of an explicit capability conceptualization, which limits academia's ability to move extant knowledge about the domain forward and limits firms' abilities to reliably produce successful low-end innovations, we present the results of a systematic review of the literature (99 journal articles) and a multiple case study analysis (7 cases). The resulting framework helps understand what constitutes a low-end innovation capability. The findings show that firms need a specific and interdependent capability set consisting of internal dimensions (low-end culture and commitment, integrated cost-reducing innovation, high volume scaling), interface dimensions (distant customer needs acquisition, iteration, total solution development) and external dimensions (access creation, low-end support networking) to cope with low-end markets' unique characteristics. The study also identifies market- and firm-specific contingencies for each capability dimension and analyzes the relationship between low-end and “regular” innovation capability.     

Uncovering the factors behind new ventures’ international performance: Capabilities,alertness and technological turbulence

This research is based on the perception that the explanation of International New Ventures' (INVs) performance demands a process view, going deeper than the standard approach, in empirical papers, of testing a direct relationship between company-level antecedents and performance. A three-tier model was developed to investigate the process leading to INVs international performance, emphasizing the role of entrepreneurial alertness. Based on the dynamic capabilities framework, entrepreneurial alertness was envisaged as the mediating element between firms' capabilities and their international performance. Empirical research confirmed the hypothesized model. Firms' capabilities (entrepreneurial orientation, foreign market knowledge, and absorptive capacity) significantly influence the level of entrepreneurial alertness, which impacts on the levels of self-reported satisfaction with the company's international performance. The paper makes four contributions to International Entrepreneurship literature. First, it highlights the key role played by entrepreneurial alertness in explaining INVs' international performance. This is convergent with the dynamic capabilities view on firms' ability to sense and seize specific international business opportunities. Second, this study considers entrepreneurial alertness as a capability that is not limited to the entrepreneur, but it is an organizational capability. Third, it shows that entrepreneurial alertness does not exist in the vacuum, is based on a set of base capabilities, namely entrepreneurial orientation, foreign market knowledge, and absorptive capacity, that simultaneously leverage the INVs to sense possible opportunities and constrain the focus of opportunities to international markets, as a key element to foster INVs' higher performance. Fourth, it underlines the role of technological turbulence as a moderator of the relationship between entrepreneurial alertness and INVs' international performance.     

Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance

Extending research on the performance of Mergers and Acquisitions (M&As), this paper seeks to explain how the post-acquisition integration phase affects acquisition performance. Despite extensive research efforts, there remains a scant understanding of how acquisition implementation, particularly in the post-acquisition integration phase, impacts the performance of M&As. Based on an extensive study of eight acquisitions, in this paper, a grounded model detailing the mechanisms by which the post-acquisition integration phase affects acquisition performance is developed. The model posits that integration-related factors do not bear directly upon acquisition performance. Instead, their effect is mediated by functional organizations in both firms. When focusing into these functional mediating dynamics, we observe that integration-related processual, behavioral and cultural factors affect the identified functional mediators in different ways. Going forward, we echo calls for integrated perspectives to the study of M&A and M&A performance in particular.     

Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies

Based on theories of social capital, in this study, we seek to assess the impact of a board’s social capital on the market value of companies listed on the Brazilian stock exchange. As our indicator of social capital, we use the relational resources identified in the direct, indirect and heterogeneous ties of the board. Employing panel data from 508 observations, our results indicate that heterogeneous relational resources have a stronger and more significant influence than the resources available from board members’ direct relationships. Additionally, as the effects of board interlock are endogenously determined by several factors related to the firm level, we seek to mitigate the endogeneity problem using models of instrumental variables and simultaneous equations. Our hypotheses were consistent after controlling for endogeneity. We also check whether the board’s social capital could present a U-inverted effect on the market value. This relationship was only plausible in social capital by indirect ties. Finally, we isolate the effect of relational resources within and between industries on Tobin’s Q. There was no significant effect through interlocks within the same industry. However, ties with companies in several other industries were significant.     

Sensitisation of SMEs towards the implementation of Lean Six Sigma – an initialisation in a cylinder frames manufacturing Indian SME

This article suggests the adoption of a model on Lean Six Sigma for successfully implementing it in small and medium engineering enterprises (SMEs). This model is given the name Deficiency Overcoming Lean Anchorage Define Measure Analyse Improve Control Stabilise (DOLADMAICS). The DOLADMAICS model has been designed to lift up an SME through the implementation of Lean Six Sigma in five levels. The implementation study on first level of DOLADMAICS model conducted in an Indian SME, manufacturing a component called ‘cylinder frames’, has been reported in this article. After conducting this implementation study, it was found that the first level of DOLADMAICS model would act as a catalyst and guide for sensitising the management of SMEs to successfully implement Lean Six Sigma.