The Effects of Interfirm Ties on Illegal Corporate Behavior

Although numerous benefits are associated with interfirm ties, these external relationships can also have negative consequences. Theoretically based in the relational component of social capital, we identify one potentially serious consequence of interfirm ties, propensity of firms engaging in illegal behavior. Results of our study of S&P 500 firms suggest that companies benefit from a lower likelihood of illegal behavior when they have numerous weak ties to other firms. Conversely, when they become overly embedded in a network of strong ties, they are more likely to engage in illegal behavior. We also found evidence that reciprocity and status similarity influence firms’ propensity to engage in illegal behavior.     

How smart cities transform operations models: a new research agenda for operations management in the digital economy

Abstract

The notion of smart cities is growing in prominence in the digital economy. The integration of urban infrastructures with information and communication technologies enables the development of new operations models. Digitised infrastructures offer opportunities for public and private organisations to design and deliver more customer-centric products or services, particularly for those that require geographical proximity with consumers in the online to offline (O2O) context. A framework is developed and used to analyse three case examples. These cases illustrate the emergence of new operations models and, demonstrate how smart cities are redefining the characteristics of operations models around their scalability, analytical output and connectivity. We also explore the feasibility, vulnerability and acceptability of each new operation. This paper contributes to our understanding of how smart cities can potentially transform operational models, and sets out a research agenda for operations management in smart cities in the digital economy.     

Organizational Computing as a Facilitator of Operational and Managerial Decision Making: An Exploratory Study of Managers' Perceptions*

Much of the current knowledge pertaining to information technology (IT) and decision making is based on decades old technologies that revolved around a central computing function and application-specific systems. The purpose of this research is to examine the IT decision-making relationship within the emerging organizational computing (OC) environment permeated by spontaneous utilization of both application-and nonapplication-specific computing and communication technologies. Specifically, this study seeks to explore managers' perceptions of the emerging OC environment as a facilitator of their decision-making activities. To achieve a higher level of clarity than previous works, a two-dimensional research framework is developed with the IT dimension consisting of computing and communication, and the decision-making dimension differentiated between operational and managerial decisions. A survey instrument was constructed that measured the computing and communication dimensions of information technology use and their perceived effects upon operational and managerial decisions. The major findings of the study confirmed that managers recognize the value of general, nonapplication-specific information technologies in decision making, and that this recognition is highly associated with how intensively these information technologies are used. Additionally, it was found that the two dimensions of IT differ in their relationships to decision making, and that IT usage relates to managerial decisions differently than operational decisions. These study findings have significant implication for practice and research, especially in the context of information resource management in which the primary purpose of the IS function is the delivery of general information service to users rather than the development of specific IS applications.     

Social ties, task-related communication and first job performance of young engineers

This study investigated the relationships among social ties, task-related communication, and first industrial job performance of a group of young engineers by utilizing a cooperative (coop) engineering program as a natural study. The coop arrangement allowed the researcher to examine the work behavior of these young engineers with similar academic training who were working on comparable work assignments in the same set of organizations.The study found that the job performance of the coop engineers was related to the pattern of work- related communication but not the total number of contacts. Specifically, high performance new engineers were integrated more broadly into the interpersonal communication networks than low performance new engineers. Moreover, high performance new engineers exhibited communication patterns similar to those of high performance veteran engineers working on similar types of technical work. Social ties with the company staff was found to be related positively with job performance, but social ties with other coop engineers was found to be related negatively with job performance, a result which challenges an implicit assumption often made by researchers and managers about the organizational socialization of newcomers. Overall, this study provides an integrative framework for relating social ties and communication as key factors for understanding the job performance of young engineers and presents a methodology for assessing their organizational assimilation.     

Power imbalance and value creation in joint ventures

Joint ventures (JVs) often do not create expected value due to power imbalance between partners. Despite the fact that JV partners are embedded in relational constraints, prior research has largely relied on economic reasoning by focusing on equity ownership difference between JV partners as the main source of power imbalance. We extend prior research to also consider important relational factors represented by repeated ties between partners and network openness, as well as institutional status difference and network status difference as two additional dimensions of power imbalance. Our findings indicate that ownership power imbalance by itself does not have a significant effect on value creation. However, value creation is facilitated when there is ownership power imbalance between partners with more repeated ties. In contrast, value creation may be hindered when JV partners with unequal ownership are embedded in more open interfirm alliance networks. Furthermore, value creation is facilitated if JV partners that have unequal ownership also have network status power imbalance in the same direction.     

Strategy implementation and organizational change: How formal reorganization affects professional networks

Strategy implementation is difficult, particularly as it often requires changes in formal organization structures. Prior research has shown that change in the formal structure may affect employee networks. Yet, we know relatively little about how such changes affect different network ties. This paper considers how formal structural change affects senior managers’ ability to maintain their intraorganizational networks. The hypotheses are tested on sample of 884 work-related relationships of 96 partners in a global professional services firm. This firm had recently implemented a new strategy, which led to a change in the product-market focus and the resulting formal structure. Our findings reveal that the characteristics of a specific network tie determine whether it is affected by formal structural change. In particular, we find that network ties that are highly embedded in the social structure are more likely to be affected by change in the formal structure. In contrast, ties that are relationally embedded are less likely to be affected by change in the formal structure. We discuss the theoretical and practical implications of these results. In particular, the findings may have consequences for the success of strategy implementation and strategic transformation efforts.     

网络嵌入结构对企业创新行为影响的实证研究

本文基于网络结构嵌入理论,研究了网络结构不同维度对企业创新行为的影响。利用331份企业有效样本数据进行统计分析,对本文的理论模型进行了检验。实证研究结果表明:关系强度、网络位置和网络密度均对渐进式创新产生显著正向影响,而对突变式创新产生显著负向影响;网络异质性对渐进式创新产生显著负向影响,但对突变式创新产生显著正向影响。     

Embedded Networks and Suboptimal Resource Matching in Alliance Formations

Interest has been growing in alliance networks, and research has demonstrated several advantages of embedded networks, including joint problem solving. How embedded networks function as social capital and promote alliance formation has also been explored. However, less is known about constraints that they impose on firms’ extensive search for partners. In this study, we advance our understanding of the downsides of embedded networks by proposing that embedded networks facilitate alliance formations, but they may also cause suboptimal resource matching in alliance formations. Specifically, we predict that, in alliances where initial resource matching is more important than ex post collaborative activities, suboptimal resource matching is more likely when firms ally with partners with which they have pre‐existing direct or indirect ties and that such alliances decrease firm‐level resource utilization performance in operations. Using codeshare alliance data from the global airline industry, we find support for our predictions.     

A framework for evaluating the benefits of collaborative technologies in engineering innovation networks

In times of rapid economic change, the decrease in knowledge value becomes inversely proportional to its speed of obsolescence, with successful organisations seeking to connect more rapidly and more effectively with others in the creation of new knowledge. The past decade has seen a growing interest in communities of practice as a method for transferring and generating knowledge within product development, rooted as they are in the nature of knowledge creation as a socially embedded process. Given the widespread adoption of collaborative technologies as facilitative platforms for innovation in the interactions of contemporary communities of practice, the objective of this research is to develop an evaluation paradigm and employ it to examine how such interaction is facilitated through the medium of Web 2.0 technologies. The contribution of this research to theory and innovation technology practice will be to further the understanding of collaborative technologies by examining the impact of Web 2.0 technologies on engineering innovation networks. Furthermore, it brings together the three diverse research areas of technology innovation, internet collaborative tools and psychological barriers and enablers.     

Risk Management and the Responsible Corporation: How Sweeping the Invisible Hand?

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep.     

基于社会网络视角的企业社会责任行为相似性研究

本文利用国泰安数据库和锐思数据库中2010年-2012年的我国上市公司管理层数据、公司财务数据,以及润灵环球责任评级2010年-2012年我国A股上市公司的企业社会责任评级数据,从社会网络的角度出发,探索我国上市公司社会责任履行行为的相似性。研究结果发现,公司之间存在的社会网络会造成企业社会责任履行行为具有一定的相似性。当企业越是处于核心地位,越是容易传播信息,控制能力越强的时候,该公司同与之相关联的公司在社会责任履行行为方面越是具有相似性。这一结论为改善我国企业社会责任履行现状提供了一个全新的思考方向。     

Sentiments

This paper develops a new theory of fluctuations—one that helps accommodate the notions of “animal spirits” and “market sentiment” in unique‐equilibrium, rational‐expectations, macroeconomic models. To this goal, we limit the communication that is embedded in a neoclassical economy by allowing trading to be random and decentralized. We then show that the business cycle may be driven by a certain type of extrinsic shocks which we call sentiments. These shocks formalize shifts in expectations of economic activity without shifts in the underlying preferences and technologies; they are akin to sunspots, but operate in unique‐equilibrium models. We further show how communication may help propagate these shocks in a way that resembles the spread of fads and rumors and that gives rise to boom‐and‐bust phenomena. We finally illustrate the quantitative potential of our insights within a variant of the RBC model.     

The reconstitution of broken interfirm relations

Why do firms re-establish previously dissolved relations with other firms? In this paper we explore this phenomenon in a customer-supplier context. Organization and strategy theorists have focused primarily on the formation, evolution, and dissolution of interfirm ties, but few have examined their reconstitution, despite evidence that tie reconstitution can have benefits for firms. We address this gap through an examination of strategic customer-supplier relations among 26 Scandinavian firms. Based on 95 open-ended interviews with executives of these firms, we show that four factors promote the reconstitution of previously dissolved ties: the existence of relation-specific investments in the earlier tie, accompanied by a history of reliability and coordination; concerns regarding the uncertainty and risk associated with the initiation of a new relation from scratch; the maintenance of social ties between firm officers during the period of dormancy; and a major structural change such as a reorganization, merger, or acquisition in one or both firms. The results suggest that reconstituted interfirm relations represent a type distinctly different from newly-formed, currently active, or repeated ties. Successful reconstitution requires that the firms overcome whatever difficulties led to the cessation of their relation in the first place. How the ties were dissolved has an impact on their reconstitution at a later stage. A dormancy stage may provide new and unexpected knowledge, novel information, and other new resources that can lead to substantial benefits after the firms achieve a successful reconstitution.     

ICT-enabled time performance: an investigation of value creation mechanisms

The study presented in this paper aimed at checking whether companies that embed information and communication technologies (ICT)-enabled time performance into their product offering can achieve better economic outcomes from technology adoption. Indeed, it is still questionable whether technology adoption results in a superior profitability, especially if such an improvement is achieved through the use of functional ICT applications. In this study, we assume that a better alignment among ICT investments, improvements of the logistics process and the value proposition of the firm can lead towards a superior economic performance. A survey was conducted and 180 usable questionnaires were collected from companies engaged in the electronics and vehicle manufacturing industries. Data were analysed through the structural equation modeling approach. The results show that improvements in speed and dependability, achieved through technology adoption, can lead to a better economic performance if they are embedded into superior after-sales services and/or into an improved product offering.     

When managers become leaders: The role of manager network centralities,social power,and followers' perception of leadership

We explore how formal managers' centralities in both positive and negative networks predict followers' perceptions of their leadership. By incorporating social networks and social ledger theory with implicit leadership theories (ILTs), we hypothesize that formally assigned group leaders (managers) who have more positive advice ties and fewer negative avoidance ties are more likely to be recognized as leaders by their followers. Further, we posit that managers' informal networks bring them greater social power, an important attribute differentiating leaders from non-leaders. We conducted two survey-based studies in student and field teams to test the hypotheses. Based on nested data in both studies, we found support for our hypotheses. These results remain robust across the two studies even though they used different designs (cross-sectional versus longitudinal), different samples (field versus students) across different countries (United States versus India), and a host of control variables at both the leader and follower levels. We find that managers who are central in the advice network are socially powerful and are seen as leaders by individual followers. In contrast, managers who are avoided by followers lack informal social power are not seen as leaders. We conclude by discussing the theoretical and practical implications of our findings and the ways in which our theory and results extend ILTs and social network theory.     

Narrative persuasion and psychological distance: Analyzing the effectiveness of distance-framed narratives in communicating ocean plastic pollution

Narratives have been identified as an effective tool to communicate seemingly abstract and uncertain risks. This study integrates the construal level theory of psychological distance and narrative persuasion to examine how distance-framed narratives influence young adults’ attitude, behavioral intention, and policy support related to ocean plastic pollution. Results from an experimental survey (N = 889) indicate that the narrative featuring socially close characters and spatially close location is least effective in producing persuasive effects. Instead, the narrative depicting socially close characters’ encounters at a spatially distant location is more persuasive. Within narrative conditions, the findings support the mediating role of identification and transportation in facilitating narrative effects. Serial mediation of identification/transportation and psychological distance perception was also observed. Findings from this study offer meaningful theoretical and practical implications for strategic communication on ocean plastic pollution.     

NERJIT: Using Net Requirement Data in Kanban‐Controlled Jumbled‐Flow Shops

The bold lines that have separated the application of specific production planning and control techniques to specific production systems are being blurred by continuous advances in production technologies and innovative operational procedures. Oral communication among dispatchers and production units has given way to electronic communication between production planners and these units by continuous progress in information technologies. Current production literature alludes to the idea that, collectively, these advances have paved the way for application of Just‐In‐Time (JIT) production concepts, which were originally developed for mass production systems, in intermittent production systems. But this literature does not actually consider the possibility. This article presents a modification to JIT procedures to make them more suitable for jumbled‐flow shops. This article suggests providing real‐time information about net‐requirements for each product to each work center operator for setting production priorities at each work center. Simulation experiments conducted for this study show that using Net‐Requirements in JIT (NERJIT) reduces customer wait time by 45–60% while reducing inventory slightly. The analysis of work centers’ input and output stock‐point inventories shows that using the information about net‐requirements results in production of items that are in current demand. NERJIT results in smaller input stock‐point inventory and availability of products with higher priority in the output stock‐points of work centers.     

Operational Networks: Adaptation to Extreme Events in China

Natural hazards pose an increasing challenge to public administrators, as the frequency, costs, and consequences of extreme events escalate in a complex, interdependent, world. This study examines organizational networks as instruments for mobilizing collective response to extreme events, but effective design has been elusive. Governments have focused on planned networks to anticipate risk before hazards occur; communities have formed emergent networks as voluntary efforts after the event. Using a framework of complex adaptive systems, we identify operational networks that adapt to their immediate context in real time, using technologies to support the search, exchange, and feedback of information to enable informed, collective action. Applying mixed research methods—documentary analysis of laws, policies, and procedures; content analysis of news articles; onsite observation; and semistructured interviews with experienced personnel—we document operational networks as a distinct form of multiorganizational response to urgent events that combines the structure of designated authority with the flexibility of information technologies. The integration of planned and emergent organizational forms into operational networks is measured through External/Internal (E/I) index analysis, based on empirical data collected on response systems that formed following the 2008 Wenchuan and 2013 Lushan earthquakes in the centralized administrative context of China. Findings show that planned networks provide the organizational structure and initial legitimacy essential for operational networks to form, but ready access to information technology—cell phones, short-wave radio systems, internet access—enables rapid communication and exchange of information essential for flexible adaptation in real time to meet urgent needs.     

The ties that lead: A social network approach to leadership

This article investigates, for leadership research, the implications of new directions in social network theory that emphasize networks as both cognitive structures in the minds of organizational members and opportunity structures that facilitate and constrain action. We introduce the four core ideas at the heart of the network research program: the importance of relations, actors' embeddedness, the social utility of connections, and the structural patterning of social life. Then we present a theoretical model of how network cognitions in the minds of leaders affect three types of networks: the direct ties surrounding leaders, the pattern of direct and indirect ties within which leaders are embedded in the whole organization and the interorganizational linkages formed by leaders as representatives of organizations. We suggest that these patterns of ties can contribute to leader effectiveness.