Speak! Paradoxical Effects of a Managerial Culture of ‘Speaking Up’

We explore the intrinsic ambiguity of speaking up in a multinational healthcare subsidiary. A culture change initiative, emphasizing learning and agility through encouraging employees to speak up, gave rise to paradoxical effects. Some employees interpreted a managerial tool for improving effectiveness as an invitation to raise challenging points of difference rather than as something ‘beneficial for the organization’. We show that the process of introducing a culture that aims to encourage employees to speak up can produce tensions and contradictions that make various types of organizational paradoxes salient. Telling people to ‘speak up!’ may render paradoxical tensions salient and even foster a sense of low PsySafe.     

Crafting business models for conflicting goals: Lessons from creative service firms

The business model construct has become attractive to both managers and academics. It reflects how the most important organization's strategic and tactical choices regarding the allocation of resources interact in order to create and capture value. Yet with the growing entrepreneurial complexity, managers often end up pursuing conflicting and even paradoxical strategic goals, thus rendering the business modelling processes more complex, too. Well-known examples are profit versus social value, stakeholder versus company interests, exploration versus exploitation and environmental sustainability versus economic returns. The academic business model literature so far has provided limited insights on how to implement business models beyond a single goal and focused mainly on the initial strategic choice of a business model, ignoring that such salient tensions are often persistent and resurface within the business practice. In this study we leverage paradox theory to investigate how managers of creative firms make tactical choices to accommodate (not solve) salient tensions within their business models, focusing on the domains like services provided, choice of clients, networking and resourcing practices, revenue models and new venture creation. Based on qualitative case study research, we found four integrating and three differentiating decision-making tactics that managers deploy to create both economic and creative value through their business models. Adding to the business model theory, we show how business models are crafted in managerial practices by making tactical decisions to solve conflicts and paradoxes. The results equally enrich the paradox literature by providing for tactical-level approaches toward working through the paradox.     

Identifying and managing persisting tensions affecting strategic learning from projects

While research recognises that strategic learning from projects helps build organisation-wide knowledge capabilities, learning from projects still remains fragmented and is often prematurely discontinued. Although research demonstrated that persisting tensions affect project-based organising, little is known about specific tensions affecting strategic learning from projects. A single, in-depth case study in a multinational food processing and packaging corporation is used to explore paradoxical tensions affecting strategic learning from projects. The study uncovered three persisting learning tensions: project/organisational identity, short-/long-term-orientation and standardisation/flexibility. Seven strategies are proposed, supported by the empirical data, to respond to these tensions.     

Integration team members' approaches to uncertainty management in M&A

Mergers and acquisitions (M&A) are associated with various uncertainties. Often, large companies designate integration team members to organize post-acquisition integration. However, little is known about what integration team members do in the post-acquisition integration process. This study examines how integration team members deal with uncertainties in post-acquisition integration, specifically how they manage tensions that require different and conflicting approaches. The research is based on an in-depth qualitative case study that examines the post-acquisition integration phase in real-time in the context of two Nordic firms. The study offers three main findings. First, among various uncertainty reduction, coping and balancing approaches observed in this study, the balancing approach emerged as a new method to face uncertainty. The second finding illustrates that the choice among various uncertainty management methods and their approaches is a dynamic process, in which integration team members from both buying and acquired firms are actively involved. Lastly, the study identifies that integration team members use collaboration as the way to address tensions in uncertainty management.     

Embracing the Paradox of Interorganizational Value Co‐creation–Value Capture: A Literature Review towards Paradox Resolution

This study reviews literature on paradoxical tensions between value co‐creation and capture in interorganizational relationships (IORs). The purpose of this review is to make a re‐evaluation of the literature by engaging a paradox theory lens, thereby identifying factors that render tensions salient and factors that lead to virtuous or vicious cycles. This review of 143 articles reveals factors that make tensions salient: these relate to plurality (e.g. coopetition), scarcity (e.g. lack of experience with IORs), change (e.g. changes in collaboration scope) or combinations thereof (e.g. IORs in weak appropriability regimes). Results also uncover factors that resolve paradoxical tensions of value co‐creation and capture, thus spurring virtuous cycles (e.g. carefully mixing trust and contracts), as well as factors that promote vicious cycles, owing to the emphasis on either value co‐creation or capture (e.g. myopia of learning). This review further reveals a new category of factors that may stimulate either virtuous or vicious cycles, depending on the extent to which they are enforced. This finding expands the value co‐creation–capture paradox resolution and brings to light new dynamics in the paradox framework of dynamic equilibrium. This study thus contributes by: (1) reassessing the existing literature and applying paradox theory to the well‐known hazard of value co‐creation and capture; (2) highlighting factors that amplify paradoxical tensions related to this hazard; and (3) outlining factors that help solve the paradox by embracing its contradictory poles and factors that hinder paradox resolution by emphasizing either value co‐creation or appropriation.     

Managing Contradiction: Stockholder and Stakeholder Views of the Firm as Paradoxical Opportunity

Stockholder and stakeholder perspectives have been positioned in the literature as being in tension, and thus a potential source of innovation and change. However, researchers have overlooked a systematic examination of this presumption in theory and in practice. This study explores the ways that stockholder and stakeholder assumptions are presented by theorists and compares these with expressions of stockholder and stakeholder perspectives used by firms in practice. We argue that theoretical entrenchment dichotomizing these perspectives has disrupted the ability of researchers to leverage this tension. While scholarship remains trapped in a vicious cycle, we also argue that firms in practice express only the acceptance dimension of a virtuous cycle. Our empirical research demonstrates that firms accept and accommodate the paradoxical tension between managing for stockholders versus balancing the interests of stakeholders. This is evidenced by strategies we identify as book‐ending, cadence, continuous and simultaneous co‐mingling, and hybridization. We find that in practice these tensions are more integrated whereas in theory they are treated as more distinct and, often, in conflict. We suggest ways in which both scholarship and practice can better leverage tension as paradoxical opportunity.     

Agent or Steward: The Target CEO in a Hostile Takeover: Can a Condemned Agent be Redeemed?

This article examines the differences, tensions and overlaps between agency and stewardship theories of corporate governance. The context is a hostile bid for Blue Circle Industries, a FTSE 100 company, and the focus is upon its Chief Executive Officer’s actions in response. CEOs occupy a position of pivotal importance during such takeover bids, and it is salient to examine their resultant motivations and payoffs. While agency theory suggests that CEOs may act in self-interested ways, diverging from the interests of shareholders, ongoing stewardship theory sees CEOs as fundamentally honest and caring about their company and shareholders’ interests. The hostile bid is an opportunity for the target CEO to fight at any cost, or to act in the best interests of stakeholders.In examining the target CEO’s actions, this article suggests there is more complexity than these two theories acknowledge and the relationship between them is not one of simple opposition. The article identifies a framework for making sense of CEO/stakeholder relationships, and highlights the importance to boards of understanding how CEOs manage differential stakeholder pressures over time.     

“How Much is it Worth to You? Subjective Evaluations of Help in Organizations”

Helping behavior is a fundamental aspect of life in organizations, but subjective evaluations of giving and receiving help often diverge. What one employee believes is a generous act might seem insignificant to another. Such disparity in evaluations of helpful acts can negatively affect interpersonal cooperation among peer employees. In this article, I review research on the topic of subjective evaluation in social exchange, present a preliminary model of how members of organizations construct evaluations of help, and explain how these evaluations may shape their work experiences. I conclude by discussing the implications of this framework for research on employee exchange and outline some directions for future research.     

A process model of establishing knowledge management: Insights from a longitudinal field study

This paper contributes to the discussion on how to manage knowledge in organizations. Taking a perspective which acknowledges the importance of, but does not privilege, IT as the decisive element, it reports the results of a study investigating the process of establishing as opposed to conducting knowledge management. Based on a grounded theory approach to the analysis of the empirical data, a model of establishing knowledge management in organizations is developed. The model emphasizes how the organizational members make sense of the action and behavior of management, and how this understanding influences their own perceptions and actions in the process of establishing knowledge management. This leads to an understanding of knowledge management as an autonomous venturing process. The model is then used to suggest an explanation of why establishing knowledge management was not successful in the case which was investigated. Conclusions are provided on how the model can be further exploited for studying and improving the practice of knowledge management.     

Innovation communities' contributions throughout firms’ innovation processes: An outdoor sports industry case study

Although it is crucial for firms to select openness patterns and strategies to involve innovation communities more effectively, the literature treats innovation communities as homogeneous. However, organizations may mobilize various innovation communities, including external and/or internal members. Similarly, little is known about how firms may involve those different types of innovation community during the distinct phases of their innovation processes. In this context, our main research questions are: For what contributions do companies solicit innovation communities? Do these contributions vary in content and intensity depending on the community and the phase of the innovation process? We distinguish between three types of innovation community (user, practice, and epistemic) and use a dynamic approach, considering four innovation process phases (opportunity recognition, search for solutions, development, and diffusion). The multicase study design includes three iconic firms from the outdoor sports industry and relies on archival data, observations, and 31 semidirective interviews with members of their innovation teams. Our results first show the important involvement of innovation communities during the innovation process. They also highlight the complementary use of those communities to manage their contributions, alongside their dark sides, better. Finally, we emphasize the crucial contribution of internal communities of practice in the firms’ open innovation strategies.     

4 The Physical Environment in Organizations

Abstract

We review empirical research on the physical environment in professional, organizational work settings (i.e., offices, meeting rooms, and design work spaces) from the past several decades. This research reveals no common elements of the physical environment (e.g., enclosures and barriers in work spaces, adjustable work arrangements, personalized work spaces, and ambient surroundings) that are consistently and exclusively associated with desired outcomes in these work settings. Instead, these elements are routinely associated with both desired and undesired outcomes. Based on these findings, we suggest that understanding the role of physical environments in organizations requires an understanding of common trade-offs in organizational life. Further, we suggest that the prevalence of such trade-offs is grounded in tensions that are inherent to the functions that physical environments serve (i.e., aesthetic, instrumental, and symbolic functions). We provide an outline of these tensions and trade-offs in relation to common elements of the physical environment, and suggest that researchers consider these tensions and trade-offs in their future research.     

Learning and innovation in the context of process-focused management practices: The case of an environmental management system

Adoption of process-focused management practices has been associated with inertia and rigidity in adopting firms. By drawing on the literature on routines and using survey data from 192 ISO 14001 certified facilities in the United States, I find that change catalysis or a deep form of learning which presents the opportunity for innovation can happen in this context. I also examine the internal and external determinants of change catalysis. By doing so I contribute to a better understanding of how process-focused management practices can be a source of innovation within firms.     

Audit committee perspectives on mandatory audit firm rotation: evidence from Canada

This study examines audit committee (AC) members’ perspectives on mandatory audit firm rotation (MAFR), mandatory audit partner rotation, ways in which ACs monitor auditor independence and objectivity, and the costs associated with switching audit firms. In-person interviews with AC members in Canada were conducted to improve our understanding of the reasons underlying AC members’ positions on MAFR. All AC members interviewed in this study were adamantly opposed to MAFR. MAFR was perceived as a threat to their shareholder-granted authority to make audit firm appointment decisions. Participants believe that their professional judgment and observations are the most effective means of ensuring auditor independence and view MAFR as an unnecessary intervention. We explain these results using self-determination theory. Our findings were also used to develop a conceptual model of AC relationships with external auditors and financial management.     

Knowledge recontextualization by returnee entrepreneurs: The dynamic learning perspective

Effective knowledge recontextualization is key to successful knowledge transfer in cross-cultural context. This paper explores how returnee entrepreneurs in Vietnam learn to recontextualize their overseas knowledge while establishing new ventures back in their home country. Our dynamic learning process model suggests that (1) in the pre-founding phase, an interactive vicarious learning and intuitive learning mechanism enables returnees to make sense of overseas knowledge; (2) during the founding phase, blended learning mechanism – the balancing act between market response versus market imposing - helps returnees manage the paradoxical cross cultural tension, importantly (3) in the growth phase, the cycling between unlearning and relearning helps them discard, select and recreate new knowledge in the pursuit of sustainable entrepreneurial growth. The study advances the literature on knowledge recontextualization by clarifying key underpinning learning mechanisms essential for ensuring “effectiveness” outcomes. It also contributes to the work on returnee entrepreneurship and entrepreneurial learning by demonstrating how international entrepreneurs learn overtime to thrive in a conflicting cultural context.     

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.     

A SOCIAL IDENTITY MODEL OF LEADERSHIP EFFECTIVENESS IN ORGANIZATIONS

Research into leadership effectiveness has largely overlooked the implications of the fact that leadership processes are enacted in the context of a shared group membership, where leaders, as group members, ask followers, as group members, to exert themselves on behalf of the collective. In contrast, the social identity model of organizational leadership, proposed here, emphasizes the characteristics of the leader as a group member, and the leader’s ability to speak to followers as group members. In salient groups with which group members identify, leadership effectiveness rests on the extent to which the leader is prototypical of the group (i.e. representative of the group’s identity) and engages in group-oriented behavior (i.e. behavior perceived to benefit the group). Explicating the added value of our model and going beyond contemporary approaches to leadership effectiveness, we discuss how our model extends, and may be integrated with, three major contemporary approaches to leadership effectiveness (charismatic leadership theories, Leader-Member Exchange theory, and leadership categorization theories). In addition, we outline how our model provides a viable framework to integrate future developments in research on leadership such as a growing attention to leader fairness and the role of emotions in leadership effectiveness.     

Changing competitive strategies in the telecommunications subscriber equipment industry

This paper will outline recent major changes in the international structure of the subscriber equipment industry and attempt to explain the factors which have caused these changes. The focus will be the strategies and competitive behaviour of the leading telecommunications subscriber equipment firms in the major OECD countries, within the context of the changing technological and regulatory environment.     

Brokering knowledge: Linking learning and innovation

This paper presents a model of innovation, knowledge brokering, that explains how some organizations are able to routinely innovate by recombining their past knowledge in new ways. While existing theories of organizational learning and innovation are useful, the links between them are crucial for understanding how existing knowledge becomes the raw materials from which individuals in organizations construct innovative solutions. This model develops these links by grounding processes of learning and innovation in the larger social context within which they occur. Using a microsociological perspective, this article draws together research spanning levels of analysis to explain innovation as the dissembling and reassembling of extant ideas, artifacts, and people. Previous research has suggested that firms spanning multiple domains may innovate by moving ideas from where they are known to where they are not, in the process creating new combinations of existing ideas. This paper more fully develops this process by linking the cognitive, social, and structural activities it comprises. Knowledge brokering involves exploiting the preconditions for innovation that reside within the larger social structure by bridging multiple domains, learning about the resources within those domains, linking that knowledge to new situations, and finally building new networks around the innovations that emerge from the process. This article also considers the origins of knowledge brokers as firms committed to this innovation strategy, the structural and cultural supports for the knowledge brokering process, and several obstacles to the process that these firms experience. Finally, I discuss the implications of this model for further research on innovation and learning, and the implications for other organizations seeking to establish their own capabilities for brokering knowledge.     

Understanding outsourcing contexts through information asymmetry and capability fit

Outsourcing is a strategic activity that has long been central to operations management research and practice. Yet, there are still many outsourcing management challenges that remain. In this article, we explore two of the outsourcing challenges that motivated this special issue and are central to the 10 articles included. To do this, we develop a theoretical model that examines how variations in capability fit and information asymmetry combine to present firms with four different outsourcing contexts. We then explain how each of the articles included in this special issue relate to our theoretical model and explore several avenues for future research.