Home country institutions and exports of firms in transition economies: Does innovation matter?

We draw on institutional theory and the resource-based view to analyze the relation between home-country governance imperfections and the export intensity of firms in transition economies, including an examination of the moderating role of innovation. We propose that greater governance imperfections result in lower export intensity and that innovation mitigates the constraints of operating with weak home-country institutions. Analyses of panel data from the Business Environment and Enterprise Performance Survey (BEEPS) on firms from transition economies provide support for our arguments. Our findings allow us to conclude that although firms from transition economies face difficulties to export due to the regulatory constraints of their home countries, a strategy based on innovation represents a viable way of overcoming these limitations.     

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.     

Does age diversity boost technological innovation? Exploring the moderating role of HR practices

We shed new light on the linkages between age diversity and technological innovation, and explore the moderating effect of human resource practices on such relationships. Based on a linked dataset that contains cross-sectional survey data and longitudinal employer–employee data from Luxembourg, we show that the effect of age diversity on innovation depends on the age distribution pattern of employees: positive for firms characterized by heterogeneous age groups (variety), negative for those dominated by polarized age groups (polarization). HR practices such as information sharing mitigate the adverse effects of age polarization on innovation. Practices enhancing development such as training are found to play a significant and negative role in moderating the relationship between age diversity and innovation. We illustrate how academics and practitioners may use HR practices within the context of a heterogeneous aging workforce and the age-related differences in values and abilities between generations.     

Complementarity between CSR dimensions and innovation: behaviour,objective or both?

This research assesses the impact of combining the economic, social and environmental dimensions of the corporate social responsibility (CSR) on firm innovation. In particular, we test whether the three dimensions of CSR (economic, social and environmental) are interrelated (behavioural complementarity), and whether their joined adoption will generate super-additive innovation performance effects (objective complementarity). To that end, we draw on the Community Innovation Survey (CIS) for Spain during the period 2009–2014. The analyses confirm behavioural complementarity among the three dimensions of CSR, as well as differences on objective complementarities depending on the innovation performance measure considered. In particular, the combination of the social dimension with any of the two others (economic and environmental) is the one that gives the best results in terms of radical innovation, whereas both the economic and environmental dimensions of CSR seem to be fundamental to foster incremental innovation. These results have implications for academics and practitioners, since they provide useful guidelines for the design of CSR in order to enhance firm innovation.     

Realizing Benefits from Enterprise Resource Planning: Does Strategic Focus Matter?

A key driver of the recent wave of enterprise resource planning (ERP) implementations was the assumption that the integration of business information would provide firms with a competitive advantage, yet concrete business benefits have been uneven across adopting firms. A possible explanation is that although the resource‐based view holds that competitive advantage is derived from inimitable resources, ERP software has become a commodity. Socio‐technical theory suggests that internal organizational resources based on a foundation of ERP technology may be the true drivers of ERP benefits. A firm's strategic configuration is posited to influence the portfolio of organizational competencies available to leverage the benefits of integrated business information, and a number of hypotheses are developed based on the notion that firms with different strategic objectives will realize different operational benefits from the adoption of ERP systems. Survey data from North American manufacturing firms that have implemented ERP systems demonstrate that ERP adopters seeking operational performance improvements are likely to realize these benefits. On the other hand, those seeking external market and supply chain performance improvements must first establish a foundation of internal operational performance improvements before customer satisfaction and supply chain benefits can be realized.     

Strategic Planning in the Malawi Public Sector: Potential Tool for Progress or Regression?

The process of developing strategic plans in the public sector is regarded as one indicator of positive reform in the system. The assumption is that strategic planning ensures that (just like in the private sector) public sector organizations’ operations should cost less but deliver better service. Ultimately the argument is that public sector institutional governance and responsiveness to the citizenry is not only seen but felt. However, strategic planning has to be done in an appropriate manner for it to deliver. For instance an analysis of the underlying motives, the role of leadership in the process as well as the relevance or viability of the guiding strategic planning model significantly affect the nature of expected results. In the early 2000s, the Malawi public sector embarked on a serious drive towards strategic planning process as part of its reform package. In order to ascertain it’s potential to transform the Malawi public service, this paper focuses at critically analyzing the strategic planning process in the Malawi public sector by among other things asking: who initiated and led the process? What approach determined the process? What is the possible potentiality of the adopted strategic planning approach in enhancing the reform agenda in Malawi? Based on interviews with senior officers in key Malawi public sector institutions, the paper concludes that the strategic planning process is ‘transitional and fluid’ hence lacks the clout to effectively enhance reforms in this sector. Another finding is that lack of effective leadership has largely contributed to the status quo.     

The effect of buyer pressure on suppliers in SMEs to demonstrate CSR practices: An added incentive or counter productive?

Those promoting the corporate social responsibility agenda to small and medium-sized enterprises (SMEs) are interested in the potential of supply chain drivers as an incentive. This paper presents results from an empirical study into the attitudes and behaviours of 103 UK SME owner/managers in response to buyer pressure to demonstrate CSR activities. Most said that the inclusion of social and environmental requirements as preconditions to supply would increase their motivation to engage in CSR (82% for environmental criteria and 55% for social criteria). However, a quarter would be put off tendering and 12% thought that such criteria would be counter productive.     

Does location influence executive compensation? Evidence from Canadian SMEs

We examine the impact of geographic location on the level and structure of executive compensation of small and medium enterprises (SMEs) in Canada, using a panel data sample between 2008 and 2011. Our results show that SMEs pay a higher price for talent by paying a large proportion (71%) of compensation as guaranteed cash pay to their executives. We also report a strong influence of location on compensation structure. Specifically, rural firms pay 13% more incentive based equity pay to their executives compared to their size matched urban counterparts. However, there is no difference between the total compensation for managers of rural and urban firms after controlling for the cost of living index. In cross-sectional tests, we observe that total compensation is positively related to CEO/Chair duality and family ownership but is not related to management quality. In addition, we find that rural firms display a higher pay-performance sensitivity.     

The importance of key celebrity characteristics for customer segmentation by age and gender: Does beauty matter in professional football?

This paper examines through the lens of sport whether male and female customers as well as differently aged customers focus on different celebrity characteristics and whether they are influenced by celebrities’ facial attractiveness. Drawing on psychological and sociological theories like attachment theory, social role theory of gender, or social norm theory as well as on the academic literature on celebrity endorsement in general, we develop several hypotheses regarding how a fan’s age and gender affect the importance of key characteristics of football stars—namely experience, personality, exemplary behavior, and skills. Using a proprietary dataset that combines archival data concerning professional football players and clubs with survey data of more than 2100 football fans, we find evidence that female fans attach more importance to a player’s personality and behavior while male fans seem to focus on experience and skills. We further find that when fans get older, the importance of a player’s behavior and experience increases. Moreover, our results show that the facial attractiveness of players clearly influences fan perceptions. Our results contribute to existing research on customer segmentation by providing a more differentiated picture of the effects of key celebrity characteristics on different customers.     

Strategic alliances for corporate sustainability innovation: The ‘how’ and ‘when’ of learning processes

Mounting sustainability pressures challenge established firms to engage with sustainability innovations, which are often introduced by startups. Research on alliance learning has established the potential of learning from startups to advance corporate innovation. Here, scholars have outlined alliance learning processes and outcomes and have distinguished learning about and learning from alliance partners as two key learning types. The saliency of learning from the operational alliance process is stressed. To date, however, no study has investigated alliance learning processes and outcomes for sustainability innovations. This is despite the fact that sustainability research suggests learning processes in the sustainability context have a distinct nature. This study addresses this research gap by analyzing the sustainability-specific learning processes and outcomes of a large European meat producer and wholesaler with a turnover of $2.7bn in the fiscal year 2019/2020. The firm formed alliances with nine startups for sustainable plant, insect-based and cell-based protein solutions. Our analysis (1) identifies three distinct characteristics of sustainability-related alliance learning processes and outcomes, and (2) specifies the temporal occurrence and outcomes of learning types in alliance learning phases. In contrast to findings of prior research, our study reveals that learning about alliance partners is of key importance throughout the whole sustainability-oriented alliance learning process. In addition, the findings highlight that alliance learning outcomes may support an established firm's contribution to the sustainability transformation of mass markets.     

International coopetition for innovation: Are the benefits worth the challenges?

International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm’s innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.     

Boards in microfinance institutions: how do stakeholders matter?

Microfinance Institutions provide financial services to poor people. Governance of these organizations is important so that they can operate efficiently and sustainably. This study analyzes the influence of stakeholders (donors, employees, customers, and creditors), on board structure (board size and CEO duality), and on organizational performance. We use a global data set of 379 microfinance institutions from 73 countries, collected from rating organizations. Supported by stakeholder theory, agency theory and resource dependence theory, we find stakeholders to be important and have various influences on microfinance institutions. We find donors to be associated with small boards, non-duality and better performance. Employees are associated with large boards, while customers are associated with duality and good financial performance. Creditors opt for duality and better social performance. Implications and areas for future research are discussed.     

The diversity gap in leadership: What are we missing in current theorizing?

Relational models of organizational inequalities offer numerous insights around the role of micro, meso and macro processes that drive differential progress of diverse individuals into senior leadership roles. We propose that the Bourdieusian relational framework of capital, habitus and field, and Bourdieu's conception of symbolic violence, provide a powerful explanatory lens for understanding the continuing lack of diversity among our corporate leaders. In applying this framework, we highlight critical shortcomings in current conceptions of leadership development and significant implications for leadership theory. We highlight the ways in which gendered and racialized structures are created and reinforced preventing access to opportunities for corporate leadership to diverse individuals. Future leadership theorizing needs to place greater attention upon the context in which development occurs, how valuable capital comes to be prescribed, as well as the forces at work in generating structures that perpetuate differential access to the capital necessary to progress as leaders.     

Supervisor commitment to employees: Does agreement among supervisors' and employees' perceptions matter?

Using 322 matched employee–supervisor dyads, we investigate how level and direction of employee–supervisor (dis)agreement on supervisor's affective commitment to the employee relate to organizational commitment, emotional exhaustion, leader–member exchange, and job performance. Results from polynomial regression and response surface analyses indicate that level of employee–supervisor agreement matters: the most beneficial outcomes appear when supervisors and employees agree that the supervisor is highly committed to the employee whereas the least favorable outcomes appear when dyads' members agree that the supervisor has low commitment to the employee. Direction of employee–supervisor disagreement is also important as employee overestimation of supervisor commitment is associated with more favorable outcomes than employee underestimation. However, for two of the outcomes (organizational commitment and emotional exhaustion), the effect of employee–supervisor disagreement was attributable to a main effect of employee perceptions of supervisor commitment. We discuss the implications of these findings for the understanding of employee–supervisor relationships.     

Does proactivity matter? the importance of initiative selling tactics for headquarters acceptance of subsidiary initiatives

By integrating literature on proactive behavior, in particular voice behavior theory, with the attention-based view of the firm, we examine how the use of a set of initiative selling tactics influences the acceptance of subsidiary initiatives by MNC headquarters. The findings suggest that the initiative selling tactics that matter most for the headquarters acceptance of subsidiary initiatives are related to proactive efforts such as the preparation and the packaging of the subsidiary initiative. The paper contributes to academia and practice by providing a richer understanding of proactive behavior among subsidiaries in terms of the “voice tactics” used to get their subsidiary initiatives recognized and accepted by headquarters. The study uses data from a questionnaire survey of 110 MNC subsidiaries and qualitative interview data.     

Your direct reports loathe you. Does it matter?

Chalk it up to the labor shortage or to growing worker independence, but today almost everyone agrees that management effectiveness rests heavily on grass roots support. Why do subordinates despise a superior? Indecisiveness, non-support, expense account abuse, and arrogance are some of the documented reasons. Your direct reports can cause you to fail and their perfidy will never be detected. They can question your competence and decisions often-through the grapevine-bombarding top management with derogatory information it ultimately can't or won't ignore. Moreover, the movement of workers from organization to organization means that negative gossip will be repeated in dozens of grapevines. What is the worst thing disgruntled workers do to a manager's career? Not only will victims protest and flack your sins in the grapevine, they'll vote with their feet. Worker shortages mean that turnover is watched as closely as salary expenses. Explored herein are some signs that should cause a manager to examine how he or she stands with the troops.     

Fixed or variable demand? Does it matter when locating a facility?

In most competitive location models available in the literature, it is assumed that the demand is fixed independently of market conditions. However, demand may vary depending on prices, distances to the facilities, etc., especially when the goods are not essential. Taking variable demand into consideration increases the complexity of the problem and, therefore, the computational effort needed to solve it, but it may make the model more realistic. In this paper, a new planar competitive location and design problem with variable demand is presented. By using it, it is shown numerically for the first time in the literature that the assumption of fixed demand influences the location decision very much, and therefore the selection of the type of demand (fixed or variable) must be made with care when modeling location problems. Finally, two methods are presented to cope with the new model, an exact interval branch-and-bound method and an evolutionary algorithm called UEGO (Universal Evolutionary Global Optimizer).     

Strategic renewal: Can it be done profitably?

Industry transformation requires strategic renewal at the level of individual firms. Executives then face the dilemma of choosing renewal paths in the face of uncertainty over the competitive environment of the future, and hence the profitability of potential strategies. This dilemma motivates us to study industry transformation from the perspective of strategic renewal among 208 large firms in the global pulp and paper industry. The findings of our qualitative comparative analysis show that only a minority of firms in our sample succeeded in profitable proactive renewal. Content-wise, there were similarities in the pursued strategies over the wider population, but only a few maintained superior profitability while proactively renewing. Our results, overall, highlight the importance of understanding the processual nature and execution of strategic renewal.