Alternative operations strategy processes: do they matter?

Abstract

With the increasing significance of business model innovation, and due to the ongoing difficulties encountered in executing formally developed strategies, there is a strong case for studying the functional-level strategy processes from fresh perspectives. This paper examines the significance of alternative operations strategy (OS) processes and organisational context and explores how they relate to operations performance. The empirical evidence was drawn based on the statistical analysis of data collected through 242 survey responses from the senior management staff of the Canadian oil and gas industry. The evidence drawn from the empirical study confirmed that alternative forms of OS development do indeed exist in practice and that certain organisational factors have a direct influence on OS processes. The analysis discerned four strategy process configurations representing singular and multiple combinations of the three process modes identified through the literature review. The results explain the differences between these process configurations in terms of certain contextual factors and operations performance. The findings of this study help advance the understanding of OS processes and may contribute to theory building, particularly what is known as ‘mid-range’ theory, as the evidence was built through the analysis of a relatively large sample of data drawn from an industry sector that has not been reported on in previous studies.     

Can subordinates benefit from Manager’s gossip?

Every story has two sides, so does gossip. Unlike prior studies that condemn gossip, our research analyzes whether managers’ gossip benefits subordinates. Gossip is informal conversation about other people who are absent at the scene, and gossip may be positive or negative. Positive gossip contains positiveness and appreciation, whereas negative gossip encloses negativeness and depreciation. We propose that managers’ positive gossip acts as commitment facilitator, implying a sense of recognition to subordinates. We also propose that subordinates appreciate such recognition by showing commitment toward managers. Research data are gathered from anonymous questionnaires that are distributed to 117 managers and 201 subordinates from five industries in Taiwan. Bootstrapping and structural equation modeling techniques are used to analyze the data. Managers’ positive gossip is found to be correlated with subordinates’ commitment toward managers, which also mediates subordinates’ perception of well-being, team empowerment, and job embeddedness. Yet, manager’s negative gossip is not correlated with any research variables. Our research is the first of its kind to explain why managers’ gossip has potential to be a commitment facilitator, and has brought news insights into gossip literature. Implications of the research findings also help reduce the bias associated with workplace gossip.     

What do we Expect from our Friends?

We conduct a field experiment in a large real‐world social network to examine how subjects expect to be treated by their friends and by strangers who make allocation decisions in modified dictator games. Although recipients' beliefs accurately account for the extent to which friends will choose more generous allocations than strangers (i.e., directed altruism), recipients are not able to anticipate individual differences in the baseline altruism of allocators (measured by giving to an unnamed recipient, which is predictive of generosity toward named recipients). Recipients who are direct friends with the allocator, or even recipients with many common friends, are no more accurate in recognizing intrinsically altruistic allocators. Recipient beliefs are significantly less accurate than the predictions of an econometrician who knows the allocator's demographic characteristics and social distance, suggesting recipients do not have information on unobservable characteristics of the allocator. (JEL: C73, C91, D64)     

How can MNEs benefit from internationalizing their R&D across countries with both weak and strong IPR protection?

Although MNEs internationalize their R&D not only in developed countries but also in emerging economies that typically feature weak protection of intellectual property rights (IPR), it remains unclear how this strategic decision affects their productivity performance. This limitation has resulted in a rather incomplete understanding of why some MNEs become more productive through R&D internationalization while others do not. This study develops a new explanation, suggesting that R&D internationalization does not affect the productivity of all MNEs equally because of differences in the idiosyncratic way in which MNEs geographically distribute their R&D units across weak and strong IPR protection countries. In advancing this explanation, the study challenges the view that weak IPR protection is disadvantageous for MNEs by showing that (and specifying how) it: 1) increases the efficacy of MNEs' internal R&D, 2) strengthens the advantages of accessing globally dispersed knowledge, and (3) improves MNEs' ability to exploit cross-country differences in IPR protection. The study enhances understanding of the complex role of IPR protection, shifts scholarly attention from the degree of R&D internationalization to how MNEs should internationalize their R&D, and clarifies how the IPR context of their location choices matters.     

Lessons from the flipside: How do acquirers learn from divestitures to complete acquisitions?

We examine whether experience from prior divestitures is associated with higher completion likelihood in subsequent acquisitions. We argue that through divestitures, firms could extract meaningful knowledge that is helpful for completing their acquisitions, such as a general understanding of acquisition deal-making stages, and the stories and aims of the target in an M&A transaction. In addition, viewing divestitures as the flipside of acquisitions, we conjecture that the selling firm can observe how the divested component of their business is acquired, and vicariously learn from these observations. We also investigate the relative importance of learning from divestiture vis-à-vis acquisition experience in determining acquisition deal completion. Finally, we contend that the effect of learning from divestitures on acquisition deal completion depends on acquisition experience and deal value. We find evidence supporting our conjectures in a sample of 2164 M&A transactions from the worldwide computer and printing industries between 1991 and 2010.     

Residential Mortgages and Public Policy: What to do with Fannie and Freddie?

The current debate on U.S. housing policy focuses on the role of the government in supporting the mortgage market. Existing organizations (Fannie Mae/Freddie Mac) are in conservatorship status, and Congress is considering alternative structures and guarantees including the Johnson‐Crapo bill, to provide catastrophic insurance in support of the coverage from private companies. The resolution of this issue is complicated by the various activities involved in the issue—investment securities, public policy, macroeconomics, accounting, and insurance. This article reviews the impact of these activities on U.S. housing, with a discussion of the feasibility of creating a catastrophic insurance program similar to that of the Federal Deposit Insurance Corporation. The federal government has successfully operated catastrophic insurance programs in support of private sector initiatives, and this experience—while certainly not perfect—may be a reasonable approach to the current Fannie/Freddie dilemma.     

A review of hedge funds and their investor activism: do they help or hurt other equity investors?

Hedge funds tend to be highly activist investors who exercise their ??principal power?? over their portfolio firms. We observe that, compared to other investor types, hedge funds appear to be even more activist than is predicted by a comprehensive Investor Activism Model, due to the unexpectedly large role of several antecedent variables. This conclusion suggests that the relatively lightly regulated environment of hedge funds affects the weighting of conventional activism-antecedent variables. We explore how their access to several investing and trading strategies is allowing hedge funds to redefine investor activism. In the process, we find that, while hedge funds and their activism tend to benefit fellow investors, the potential exists for some specific hedge fund types to expropriate value from minority shareholders, creating ??principal?Cprincipal?? conflict. The potentially detrimental impact of hedge fund activism on other equity investors is demonstrated, illuminating several current policy concerns.     

Education,training and development policies and practices in medium-sized companies in the UK: do they really influence firm performance?

This paper sets out to examine the relationship between training and firm performance in middle-sized UK companies. It recognises that there is evidence that “high performance work practices” appear to be associated with better performance in large US companies, but argues that this relationship is less likely to be present in middle-sized companies. The paper's key contribution is to justify the wider concept of education, training and development (ETD) as applicable to such companies. It then finds that clusters of some ETD variables do appear to be associated with better middle-sized company performance.     

When do host country nationals help expatriates? The roles of identification with the multinational enterprise and career development support by the subsidiary

In this study, we examine the roles of the host country nationals (HCNs)' identification with the MNE and perceptions of subsidiary's career development support as key factors in explaining the HCNs' decisions to provide help to expatriates. Using data collected in four countries (Australia, China, India, and Singapore), we show that HCNs' identification with the MNE and subsidiary's career development support are positively related to their extra-role helping behavior toward the expatriates. Further, the positive relationship between MNE identification and extra-role helping behavior becomes stronger when HCNs perceive that their career development is well supported by the subsidiary. We also provide post-hoc analyses to explore the potential differences of the four host countries in these relations.     

Is the Preference for Children so Low,or is the Price of Time so High? A simultaneous model of fertility and participation in Italy with cohort effects

ABSTRACT: This paper presents a simultaneous model of fertility and female participation in Italy, estimated with a sequence of cross-sections of micro data. Cohort dummies are used to capture permanent effects, including cohort changes in preferences. The cohort effects turn out to be not very significant, the point estimates suggesting a decreasing trend in participation and an increasing trend in fertility. The wage effects are instead rather strong and significant. The model produces simulations which are close to actual trends, which would seem largely explained by wage incentives. The explanation for a particularly high elasticity of fertility with respect to female wage should ultimately be searched for in the specific differences which characterize the Italian social and institutional environment.     

Is there a glass ceiling for ethnic minorities to enter leadership positions? Evidence from a field experiment with over 12,000 job applications

We conducted a field experiment to analyze if there is a glass ceiling for ethnic minorities entering leadership positions in organizations. We submitted over 12,000 job applications, to over 4,000 job advertisements, to investigate hiring discrimination against six ethnic groups for leadership positions. Drawing on implicit leadership theory, we argue that ethnic discrimination is particularly pronounced in the recruitment of leadership positions. The results confirm this hypothesis. For leadership positions, applicants with English names received 26.8% of positive responses for their job applications, while applicants with non-English names received 11.3% of positive responses. This means ethnic minorities received 57.4% fewer positive responses than applicants with English names for leadership positions despite identical resumes. For non-leadership positions, applicants with English names received 21.2% of positive responses for their job applications, while applicants with non-English names received 11.6% of positive responses. This means ethnic minorities received 45.3% fewer positive responses for non-leadership positions despite identical resumes. Ethnic discrimination for leadership positions was even more pronounced when the advertised job required customer contact. In contrast, hiring discrimination for leadership positions was not significantly influenced by whether the job advertisement emphasized individualism or learning, creativity, and innovation. Our findings provide novel evidence of a glass ceiling for ethnic minorities to enter leadership positions.     

How does a component from a supplier with high reputation for product innovation improve the perception of a final offering? A process perspective

An excellent reputation for product innovation (RPI) is an intangible asset for any company and promises a sustainable competitive advantage. This study empirically analyzes the spillover effects of a high component supplier's RPI to the offering of the original equipment manufacturer (OEM). The results show that there are positive effects to be gained from the innovativeness of a component supplier, which increases the perceived performance of the final offering containing the supplier's product. In addition, the study demonstrates that such a strategic partnership between a component supplier and an OEM has the potential to influence the purchase intention of the final consumer in a positive manner, thereby creating value for both parties. Contributions are made to a better understanding of strategic options for such a partnership and to an on-going discussion on RPI and the importance of intangible attributes in innovation management.