Extension of internationalisation models: drivers and processes for the globalisation of product development – a comparison of Danish and Chinese engineering firms

This paper develops an extension to established production- and supply chain management focused internationalisation models. It applies explorative case studies in Danish and Chinese engineering firms to discover how the globalisation process of product development differs from Danish and Chinese perspectives. The paper uses internationalisation and global product development theory to explain similarities and differences in the approaches. Grounded in case study results, a new model for internationalisation is proposed. The new model expands the internationalisation process model to include steps of product development and collaborative distributed development beyond sourcing, sales and production elements. The paper then provides propositions for how to further develop the suggested model, and how western companies can learn from the Chinese approaches, and globalise their product development activities from the front end of the value chain rather than from the back-end.     

Revisiting the cooperation–competition paradox: A configurational approach to short- and long-term coopetition performance in business networks

Cooperation and competition are often viewed as incompatible, antagonistic forces, thus are operationalized as two extremes on a continuum. However, they can coexist and even enable each other, thus may be operationalized as orthogonal constructs. We address this contradictory phenomenon by developing a more granular view of the cooperation–competition paradox. Building on interdisciplinary research, we develop a three-dimensional model of relational space (fairness–opportunism, sharing–control, and engagement–rivalry), providing a novel tool with which to investigate the paradoxical interplay between cooperation and competition through eight operationalizable configurations. Using fuzzy-set qualitative comparative analysis (fsQCA), we test our model by assessing how different configurations of interfirm relationships influence the short- and long-term success of a sample of 217 firms. Our findings show that only two of the eight possible relational configurations are associated with firm success, one in both the long and short term, and the other in the short term only.     

The effect of charismatic leaders on followers’ memory,error detection,persuasion and prosocial behavior: A cognitive science approach

Adopting a cognitive and follower-centric approach to charismatic leadership, we hypothesized that followers show lower levels of cognitive effort, reflected in superficial processing of factually correct information when listening to and viewing a charismatic leader. We conducted two experiments, using a 2 (charismatic versus neutral) × 2 (female versus male leader) between-subjects design and videos of trained actors delivering a speech. We examined the effects of leader charisma on (1a) followers’ ability to detect factually false information, (1b) accuracy to remember information from the leader (study 1, N = 100), (2a) the persuasiveness of factual messages, (2b) followers’ prosocial behavior and (2c) the mediating effect of the leader’s persuasiveness on followers’ prosocial behavior (study 2, N = 140). We did not find support for the effect of leader charisma on detecting false information, the persuasiveness of messages, or increased prosocial behavior among followers. We found an effect of leader charisma on memory. Participants recognized fewer messages in the charismatic compared to the neutral leader conditions. Exploratory analyses provided mixed results for an interaction effect of leader charisma and sex on detecting and remembering false information. Our studies offer first insights into the cognitive outcomes of the charismatic signaling process.     

Human capital and agency effects on CEO compensation of IPO biopharmaceutical firms and the market’s response

This paper examines the determinants of base pay and total incentive compensation packages of CEOs of biopharmaceutical firms that have recently gone public, and whether human capital and agency factors affect the market’s response to the initial public offering. We find that in terms of net proceeds, the IPO market appears to reward the firms that have founder-CEOs and CEOs with higher incentive compensation. CEOs with prior venture capital experience are associated with receiving higher incentive compensation, while CEOs with a greater ownership interest in the firm receive lower incentive compensation but higher salaries. CEOs of firms with a greater percentage of insiders are associated with lower salaries. The results should add to our understanding related to human capital and agency theories, as well as help firms and investors better understand and structure CEO compensation.     

Managerial incentive, organizational slack, and performance: empirical analysis of Japanese firms’ behavior

The main purpose of this study is to investigate how organizational slack is created and how it affects a firm’s performance. To address these questions, we construct three equations: managerial incentive function, organizational slack formation function and performance function, and we apply 3SLS simultaneously to these functions by using the data sets of 2,791 Japanese firms from the years 2001 and 2006. From the empirical analysis of these Japanese firms, we obtain the following results: a firm’s performance declines as organizational slack increases; organizational slack is affected by annual change rate of revenues but not by managerial incentive; managerial incentive decreases as a firm’s performance improves while it increases as the structure of corporate governance is strengthened.     

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

The illusion of independence: Spun-off firms’ risk-taking as a function of status and attachment to the parent firm

This paper examines the post-divestiture behavior of spun-off firms. Drawing on the spin-off literature and middle-status conformity theory, we argue that spun-off firms—as newly independent and publicly traded firms—tend to limit their risk-taking behavior to match the expectations of a crucial audience, i.e., security analysts. Following the logic of middle-status conformity theory, we hypothesize that firms with mid-level status are particularly susceptible to analysts' pressures, whereas high- and low-status firms are free to take greater risks. Crucially, however, we propose that this relationship is less pronounced for spun-off firms that are more attached to their parent firms, as formal and informal linkages between these two types of firms can endure beyond the separation and limit spun-off firms' independence. Using a dataset of 102 spin-off transactions occurring between 1995 and 2010, we find empirical support for a U-shaped relationship between spun-off firms' status and risk-taking. This relationship is attenuated when spun-off firms are more attached to their parents. We contribute to the spin-off literature by demonstrating that a spun-off firm's post-divestiture behavior is determined by the capital market audience's expectations and the attachment to the parent firm. In so doing, we also contribute to the literature on middle-status conformity theory by identifying a boundary condition of the theory. Additionally, we make a methodological contribution by combining ideas from the spin-off and institutional theory literature to develop a particularly comprehensive measure of attachment.     

Multiple recipes for success – A configurational examination of business portfolio restructurings

This explorative empirical study investigates which sets of portfolio restructuring design characteristics, contingent on individual firm and industry characteristics, lead to successful business portfolio transformations. We draw on insights from the strategic change, strategic fit, and organizational turnaround literature and develop a contingency model for transformation success. To allow for complex configurations, we employ a set-theoretic approach based on fuzzy set qualitative comparative analysis (fsQCA). Our findings suggest that there is no single best strategy for restructuring a portfolio. Rather, there are multiple pathways to success in portfolio transformation, depending on a firm's competitive posture and industry environment. In particular, our results highlight the pivotal influence of prior firm performance and environmental jolts on the design of successful business portfolio restructuring (BPR) strategies.     

Evaluation frequency and evaluator’s experience: the case of venture capital investment firms and monitoring intensity in stage financing

In this paper we analyze the relation between an investor’s experience and the intensity of monitoring activities. Specifically, we consider venture capitalist firms and their choices of time intervals between financing rounds. We hypothesize that more industry investment experience leads to longer time intervals between financing rounds and hence, lower monitoring intensity. Using a unique data set of venture capital firms from Germany during the period from 1995 to 2005 we find evidence for our hypothesis that in a given time frame more experienced investors evaluate and monitor their investments less often than less experienced investors. In addition, VC investors pool their experience and share the risk involved in investing by forming syndicates which reduces the incentives to monitor subsequently. On the basis of our results we argue that the optimal frequency of performance evaluations should take into account the experience of the evaluator.     

Ownership structure,investors’ protection and corporate valuation: the effect of judicial system efficiency in family and non-family firms

Research on the effect of ownership structure on firm performance shows no convergent evidence concerning the sign and form of the above-mentioned relationship. Similarly, there is no homogeneous evidence documenting family ownership concentration is always positively or negatively correlated with firm value, or irrelevant. This paper analyses whether and how the de facto investor protection provided by the judicial system affects the relationship between corporate performance and ownership structure in 1314 firms operating in four European countries (Germany, France, Italy, and Spain) over a five-year period, 2010–2014. Moreover, we analyse whether judicial system efficiency influences if and how family firms in the controlling coalition collude for expropriating minority shareholders. Our findings show that the level of shareholder protection, derived from judicial efficiency, is relevant to the relationship between ownership structure and firm performance, thus corroborating literature in that institutional contexts matter in explaining such relations. The results suggest the need for more efficient external mechanisms of corporate governance to facilitate investment in equity capital, thus decreasing the country risk perceived by investors.     

A new lease for life? The return of vitalism in management and organization studies

This paper starts from a growing interest in the concept of concern, lived experience or “inhabiting” as part of the so-called “affective turn”. My main argument is that the notion of concern cannot be thought or understood without the concept of life. The concept of life, however, is somewhat of a taboo topic in the social sciences. I hold, nevertheless, that in order to reflect on their assumptions and to define concern for their own studies, scholars need to think about life and make a choice regarding the various approaches that can be taken. I therefore present and compare four vitalist approaches: romanticism and Lebensphilosophie, vitalism as ethos and pathos, neuroecosociality as well as vitalism as becoming.     

Institutional support and firms’ entrepreneurial orientation in emerging economies

In recent years, many governments in emerging economies have used macro-level institutional support to boost entrepreneurship, but the actual impact of institutional support on firms’ entrepreneurial orientation (EO) remains unclear. To provide a holistic understanding of this impact, we examine the relationship between institutional support and three specific dimensions of EO—proactiveness, innovativeness, and risk-taking—and we explore how these relationships are contingent on firm ownership and the industry life cycle. A two-study, mixed-methods empirical design confirms our hypotheses. Specifically, Study 1 surveys 303 Chinese firms and finds that institutional support has a decreasingly positive relationship with proactiveness, an increasingly positive relationship with innovativeness, and a positive linear relationship with risk-taking; each of these three relationships is weaker for state-owned enterprises (SOEs) than for non-SOEs and for firms in fast-growing industries than for firms in slow-growing industries. Study 2 conducts a scenario-based experiment using6 133 MBA students, and its results again support the main effects hypotheses.     

The how and why of a firm’s approach to CSR and sustainability: a case study of a large European company

This paper aims to analyse “how” and “why” a company engages in CSR and sustainability. The “how” concerns the features of the firm’s CSR and sustainability approach, defined in terms of a firm’s strategy (implemented issues, initiatives and activities) and organization (organizational structures and roles and managerial systems adopted). The “why” refers to the key determinants, both internal and external, of CSR and sustainability. Finally, how the firm’s CSR and sustainability approach evolves over time and the relation between CSR determinants in various stages of the CSR evolutionary path are also investigated. The research method is based on the longitudinal analysis of a case study concerning a large multinational company operating in the telecommunications industry in Europe. The analysis of the case study shows that sub-cultural differences in the approach to CSR and sustainability may occur across hierarchical levels and functional units. Moreover, embedding CSR and sustainability principles doesn’t follow a linear and continuous process, made by sequential stages. Indeed, it can be characterized by an up and down evolutionary path, based on different stages with a changing emphasis given to CSR and sustainability issues. Finally, we find that the firm CSR and sustainability approach is not an autonomous choice, but it is a consequence of the contingent role played by both the external and the internal drivers and by their relative importance during the company’s CSR history.     

Network management and associated firms’ outcomes: multilevel analysis in the southern Brazilian context

This article seeks to provide theoretical and managerial insights with respect to the following questions: What is the effect of network management on the outcomes of associated firms? Do these effects on outcomes vary among small-firm networks (SFNs)? Do these outcomes vary among associated firms within the same SFN? Which management elements are most influential in the variation of these SFN outcomes? To answer these questions, this study adopts a multilevel analytical approach using SFNs in southern Brazil that benefit from the Cooperation Networks Program, a local public policy initiative that supports the formation, development, and consolidation of SFNs. The findings suggest that the outcomes provided by the networks differ between networks but are similar for firms in the same network. They also indicate that strategy and processes at the network level are related to firms’ outcomes. These findings show that the influence of structure on firms’ outcomes varies among networks and that the market segment is the only network-level variable that is significantly related to firms’ outcomes.     

Comment on ‘A political economy of accounting standard setting’

This comment raises questions about the appropriateness of the model proposed by Königsgruber (J Manag Gov 14:277–295, 2010) in depicting the politics of the standard-setting process in the context of the very different regulatory contexts in the EU and the US.     

The face of wrongdoing? An expectancy violations perspective on CEO facial characteristics and media coverage of misconducting firms

We examine the extent to which CEO facial characteristics matter in media coverage of firms implicated in corporate wrongdoing. We build on literature discussing that leaders’ faces may convey subjective behavioral expectations and that outsiders often over-rely on facial cues when making social judgments. We situate these insights in the context of corporate wrongdoing, where information incompleteness may be particularly high, potentially prompting outsiders to draw on CEO facial characteristics in forming their social judgments. Drawing on Expectancy Violations Theory, we hypothesize that firms led by CEOs expected to be more trustworthy, as inferred from their lower facial width-to-height ratio (fWHR), will draw greater attention and more negative opinions from the media in the wake of corporate wrongdoing. Results of an experiment (Study 1) where CEO fWHR was digitally manipulated support this counterintuitive logic, while findings based on an archival study of corporate wrongdoing of US firms from 2003 to 2016 (Study 2) partly generalize the rationale in the field setting. Our findings suggest that subjective expectations inferred from CEO faces may serve as part of a complex and underexamined source of variation in media coverage of misconducting firms. We discuss implications for theory and practice.     

Does strategic corporate performance depend on corporate financial architecture? Empirical study of European,Russian and other emerging market’s firms

Performance of the firm depends on its structural dimensions: capital structure, ownership structure and corporate governance. Their interactions are known as corporate financial architecture according to S. Myers. In this paper we analyze financial architecture which is a mix of ownership structure, capital structure, control and board’s composition, and therefore, provides the given framework for improving corporate performance. We contribute to the literature by different attributes of our study. In contrast to most empirical papers on performance, we develop integrated rather than segmented approach combining the intrinsic components of corporate financial design in one research model. We introduce new variable to capture the structure of ownership for the purpose of performance analysis. Our third contribution is based on comparative analysis of the influence of financial architecture over corporate performance in rather different capital market environment: developed European and emerging (developing) capital market’s countries. We start with a classic empirical model of the impact of ownership structure, capital structure and other components of financial architecture on the corporate performance. Further we verify the validity of exogenous nature of key variables of the classic model when applying it to companies in developed and emerging market environment. Our results could have some important policy implications for the firms in normal economic environment as well as in the period of global economic crisis. We found that the higher proportion of related ownership which indicates investors with significant voting power and the board’s composition affect firm performance positively. The related shareholders and independent directors seem to add more value to firms while the impact of government ownership differs depending on the country. The emerging market’s sample versus the one from developed countries proves the stronger influence of corporate financial architecture over performance.     

The relationships between firm’s strategy,resources and innovation performance: resources-based view perspective

Besides basic competitive priority (quality, cost, delivery and flexibility), innovation has been recognised as one of the primary sources of competitive advantage for manufacturing industry to compete in global markets. This paper, therefore, presents an empirical study on the relationship between firm strategy, resources and innovation performance. Drawing from the grounded theory of resource-based view, and using 218 responses from Thai production/operation managers, this paper shows that differentiation strategy had a positive relationship with both internal capital or internal resources (represented by knowledge and creativity management) and networks capital or external resources (represented by customer and supplier network). The findings also revealed that only internal capital had a positive effect on innovation performance. Finally, contributions to industry practitioner, academia and national agency in supporting and promoting innovation are presented.     

Do Employees boost opportunities to compete abroad? A longitudinal study of family and non-family firms

This study sheds light on the contingent effect that employee human capital may have on the relationship between family involvement and internationalisation via exporting —both in terms of entry mode (how to export) and degree (how much to export). We formulate several hypotheses by drawing mainly on arguments from the resource-based view and stewardship theory. The empirical setting is a large sample of Spanish manufacturing firms (family and non-family) operating between 1991 and 2016. Our results reveal that the positive (negative) relationship between family involvement and export intensity (direct exporting) is boosted (mitigated) at higher levels of employee human capital. Our findings thus provide statistical support for a positive and significant contingent approach to the effect human capital has on the connection between family involvement and internationalisation.     

M&A and diversification strategies: what effect on quality of inventive activity?

Journal of Management and Governance - The aim of this paper is to examine how an acquirer’s diversification strategy shapes the multiple dimensions of inventive activity. Differing from...