The Blinders of Dominant Logic

This article argues that the dominant logic embedded in an organisation may keep it on the road ahead, but it also acts as a blinder to peripheral vision. It says that managers need to look at beyond the borders of their industries and geographies to find new opportunities and rethink the logic of the business. It refers to corporate examples where shifts in organisations’ dominant logic allowed traditional assumptions about value creation to be reassessed and resulted in successful forays into the periphery.     

Mining the Periphery for New Products

Revolutionary products often come from upstart players or companies outside the industry, while mainstream operators follow a risk-averse path of concentrating on their current business. This article urges companies to channel resources into looking at the periphery for ideas that could be profit-drivers of the future. It suggests three strategies for finding new products: frame the landscape; develop game-changing hypotheses; and use targeted hunting. It concludes by saying that these approaches will encourage managers to combine broad searching and thinking with focused evaluation and execution.     

Beyond Planning:: Strategies for Successfully Implementing Strategic Decisions

This article brings strategy back to managers and their organizations. It argues and demonstrates empirically that what managers do, and the kind of organization they lead, matter in terms of achieving stated objectives. Managerial action involves a set of activities from assessing the problem to prioritising action, and takes place within an organizational context which has two important elements for decision-making. First, organizations have an accumulated stock of experience, and the more managers can access and utilise this experience base the better. Secondly, the culture and structure of an organization may exhibit more or less readiness for the changes that decisions bring about, and contexts less ready for change pose problems for managers in the implementation of decisions.This long-term study of 55 decisions in UK firms shows that careful managerial planning does not of itself guarantee successful outcomes: the organizational context is crucial in framing actions and influencing achievement, and decisions may send a firm on a trajectory beyond the point at which it can plan with confidence. Where experience and readiness are strong, decisions achieve stated objectives—where both are lacking, decisions tend to fail. But, as examination of two illustrative cases indicates, strength in either domain may be enough: sound experience may win out in comparatively unreceptive situations, and decisions may still succeed where experience is lacking but the organization is ready for change. The article closes with some implications for managers.     

Social Loafing: A Field Investigation

Social loafing was investigated by testing a multilevel model among 23 intact work groups comprised of 168 employees representing two organizations. Results demonstrated that as hypothesized at the individual level, increases in task interdependence and decreases in task visibility and distributive justice were associated with greater occurrence of social loafing. At the group level, increased group size and decreased cohesiveness were related to increased levels of social loafing. Of particular interest was the finding that group member perceptions of perceived coworker loafing was associated with reduced social loafing, opposite of our predictions. We suggested that this unexpected finding may provide evidence of a social compensation effect.     

Volatility-based Effects on Shareholder Value: Alliance Activity in the Computing Industry

We use an event-study analysis to understand how alliance activity affects firm risk. The risk measure is the implied volatility of a firm’s stock price and the events are alliance announcements to the market. We build on the previous event-studies in the alliance literature that focus on the change in shareholder value by taking the first step in delineating what part of that value arises from the changes in the firm’s risk. The analysis reveals that a number of factors within a firm’s control can be used to manipulate risk exposure in an alliance, including the similarity of the firm’s and the alliance’s core activities, the governance form of the alliance, and the function of the alliance.     

The Applicability of Porter’s Generic Strategies in the Digital Age: Assumptions, Conjectures, and Suggestions

Because current management theories evolved in the context of brick-and-mortar firms, this paper examines three key questions raised by the advent of e-business: (1) Will the strategy types found among e-business firms resemble Porter’s (1980) generic strategies? (2) Will we find performance differences among e-business firms pursuing different types of strategies? (3) Will we find differences in the strategy-performance relationships of pure online firms (pure plays) and firms with both online and offline operations (clicks-and-bricks)? We conclude that integrated strategies that combine elements of cost leadership and differentiation will outperform cost leadership or differentiation strategies. We also argue that, regardless of business strategy type, clicks-and-bricks firms that closely integrate their on- and offline operations will enjoy performance advantages over their pure play counterparts.     

Understanding Community Resilience from a PRA Perspective Using Binary Decision Diagrams

Probabilistic risk assessment (PRA) is a useful tool to assess complex interconnected systems. This article leverages the capabilities of PRA tools developed for industrial and nuclear risk analysis in community resilience evaluations by modeling the food security of a community in terms of its built environment as an integrated system. To this end, we model the performance of Gilroy, CA, a moderate‐size town, with regard to disruptions in its food supply caused by a severe earthquake. The food retailers of Gilroy, along with the electrical power network, water network elements, and bridges are considered as components of a system. Fault and event trees are constructed to model the requirements for continuous food supply to community residents and are analyzed efficiently using binary decision diagrams (BDDs). The study also identifies shortcomings in approximate classical system analysis methods in assessing community resilience. Importance factors are utilized to rank the importance of various factors to the overall risk of food insecurity. Finally, the study considers the impact of various sources of uncertainties in the hazard modeling and performance of infrastructure on food security measures. The methodology can be applicable for any existing critical infrastructure system and has potential extensions to other hazards.     

全球化时代发展中国家与跨国企业的角力

全球化是国际关系研究中的重要现象,跨国企业则是全球化现象的重要媒介和载体。直至上世纪80年代初,跨国企业仍被大部分发展中国家的政府视为发达国家经济侵略发展中国家的工具。现在政府对跨国企业的友善态度,可以说是服从于全球化进程中的世界经济深刻转变局面下所出现的逻辑变化。这些相关过程充分改变了跨国企业与发展中国家的关系,双方不断调整本身的方针及策略,争取与全球新形势下的现实接轨。本文尝试回顾及检视跨国企业与发展中国家两者关系中出现的转变,并进而指出考虑跨国企业的问题时,需要将有关研究视角放置于全球经济整体增长的背景当中。在全球化时代,发展中国家及跨国企业应视双方之间的关系为一种互补的关系,这种互补性有助国家提升资源运用及相关素质能力。发展中国家只有正确认识及合理利用跨国企业,才能积极推动政治建设和社会经济的持续发展。     

Modeling population and subject-specific growth in a latent trait measured by multiple instruments over time using a hierarchical Bayesian framework

Psychometric growth curve modeling techniques are used to describe a person’s latent ability and how that ability changes over time based on a specific measurement instrument. However, the same instrument cannot always be used over a period of time to measure that latent ability. This is often the case when measuring traits longitudinally in children. Reasons may be that over time some measurement tools that were difficult for young children become too easy as they age resulting in floor effects or ceiling effects or both. We propose a Bayesian hierarchical model for such a scenario. Within the Bayesian model we combine information from multiple instruments used at different age ranges and having different scoring schemes to examine growth in latent ability over time. The model includes between-subject variance and within-subject variance and does not require linking item specific difficulty between the measurement tools. The model’s utility is demonstrated on a study of language ability in children from ages one to ten who are hard of hearing where measurement tool specific growth and subject-specific growth are shown in addition to a group level latent growth curve comparing the hard of hearing children to children with normal hearing.KEYWORDS: Bayesian hierarchical models, psychometric modeling, language ability, growth curve modeling, longitudinal analysis