Efficiency and effectiveness of knowledge management systems in SMEs

This paper proposes a 3D fuzzy logic methodology to assess the efficiency and effectiveness of knowledge management systems (KMSs) adopted by small and medium enterprises (SMEs) and identifies a classification bringing together the behaviour of SMEs when adopting KMSs. The proposed methodology was previously tested on an individual SME and then implemented on a sample of SMEs. The results highlight that there is an ample variety of behaviours related to the nature of knowledge and the KMSs used. Specifically, four typologies of behaviour are identified: the efficient and effective SME, the effective but inefficient SME, the efficient but ineffective SME, and the inefficient and ineffective SME. The results show that only 18% of surveyed SMEs are efficient and effective for both KM-Tools and KM-Practices, the remaining 82% are inefficient or ineffective for KM-Tools and/or KM-Practices. Lastly, the paper shows how this methodology may be used by an SME as a managerial tool to suggest appropriate changes to improve the efficient and effective adoption of KMSs supporting SMEs in the knowledge management processes.     

Interactive profit-planning systems and market turbulence: A dynamic capabilities perspective

This article describes, theorizes and empirically investigates the concept of interactive profit-planning systems (PPS) through the lens of the dynamic capabilities logic. With this conceptualization: interactive PPS capabilities comprise budgeting, forecasting and results-reporting routines, in which top and middle managers interact to create knowledge for sensing, seizing, and business model reconfiguring (to manage strategic business change). Survey data from 331 Australian firms is analyzed employing partial least squares structural equation modeling. The data provides support for two hypotheses: (1) greater market turbulence strengthens the positive effect of interactive PPS capabilities on business unit performance; and (2) greater market turbulence strengthens the positive effect of flexibility values (of organizational culture) on interactive PPS capabilities. Our findings show that interactive PPS capabilities function according to the salient tenets of the dynamic capabilities logic, and clarify the beneficial roles of formal cybernetic control systems and the intertwined involvement of top and middle managers in using dynamic capabilities.     

Value drivers of social businesses: A business model perspective

Hybrid organizational forms that combine commercial and welfare institutional logics play an increasingly important role in addressing the grand societal challenges we face today. Building on the literatures on hybrid organizations and social business models, we explore the characteristics of social businesses from a business model perspective. This study seeks to better understand the particularities and value drivers of hybrid social purpose in contrast to purely commercial business models. We follow a grounded theory approach and our findings are based on interview data from 17 social business firms. Building on social businesses' identified particularities, we propose four value drivers of social business models: 1) responsible efficiency, 2) impact complementarities, 3) shared values, and 4) integration novelties. We link our findings to the literature, contributing new insights into social businesses models and implications for practitioners.     

Role of Leaders as Agents of Negotiation for Counterbalancing Cultural Dissonance in the Middle East and North Africa Region

This study provides a unique perspective in the field of cross-cultural management by exploring the relationship between “cultural dissonance”—the gap between cultural values and actual practice—and effective leadership attributes in the Middle East and North Africa (MENA) region. Incorporating cultural dissonance into implicit leadership theory, the study uses measurements of dissonance on nine cultural dimensions to identify particular leadership preferences in seven MENA countries. The overall findings suggest that societies prefer leaders who counterbalance cultural dissonance by allowing space for negotiations by members of society to reduce disparities between cultural values—“the way things should be”—and actual practices—“the way things are.” The greater the disparity between cultural values and practices, the greater the citizens' desire that leaders act as agents of change by creating space for negotiation.     

Effects of Firm-specific and Country-specific Advantages on Relative Acquisition Size in Service Sector Cross-Border Acquisitions: An Empirical Examination

Using a sample of 348 service sector cross-border acquisitions by U.S. firms in 44 countries during 1990–2006, our study seeks to identify factors that influence relative acquisition size (acquisition transaction value as a percentage of acquiring firm's asset value). Our findings indicate that firm-specific advantages (FSAs) in the form of available financial slack and target industry knowledge were positively associated with relative acquisition size. However, contrary to expectations, we observed a negative relationship between cross-border acquisition experience and relative acquisition size. In addition, our results suggest that country-specific advantages (CSAs) associated with higher market potential, lower political risk, and greater cultural similarity contributed to increased relative acquisition size in service industry cross-border acquisitions. Finally, our analysis reveals that the relationship between available financial slack and relative acquisition size is contingent on cultural similarity with the relationship being more pronounced when cultural similarity is high.     

和而不同:管理学者争鸣与反思的价值贡献

通过回顾《管理学报》近3年争鸣与反思的系列文章,总结了这些争鸣与反思的价值贡献,同时在这些价值贡献的基础上进一步提出了本文的观点,包括:1直面中国管理实践,不仅仅是一种理念,更是一种行动;2讨论现有管理理论,不仅仅是批判,更要做到发展;3发展中国管理学,做好对中国优秀企业的评价是必要前提;4管理研究方式没有高低对错,关键在于能否让成果更加贴近实践。     

The Effect of Demand–Supply Mismatches on Firm Risk

A supply chain management (SCM) system comprises many subsystems, including forecasting, order management, supplier management, procurement, production planning and control, warehousing and distribution, and product development. Demand–supply mismatches (DSMs) could indicate that some or all of these subsystems are not working as expected, creating uncertainties about the overall capabilities and effectiveness of the SCM system, which can increase firm risk. This article documents the effect of DSMs on firm risk as measured by equity volatility. Our sample consists of three different types of DSMs announced by publicly traded firms: production disruptions, excess inventory, and product introduction delays. We find that all three types of DSMs result in equity volatility increases. Over a 2‐year period around the announcement date, we observe mean abnormal equity volatility increases of 5.62% for production disruptions, 11.19% for excess inventory, and 6.28% for product introduction delays. Volatility increases associated with excess inventory are significantly higher than the increases associated with production disruptions and product introduction delays. Across all three types of DSMs, volatility changes are positively correlated with changes in information asymmetry. The results provide some support that volatility changes are also correlated with changes in financial and operating leverage.     

Quality Risk Ratings in Global Supply Chains

Extended enterprises face many challenges in managing the product quality of their suppliers. Consequently characterizing the quality risk posed by value‐chain partners has become increasingly important. There have been several recent efforts to develop frameworks for rating the quality risk posed by suppliers. We develop an analytical model to examine the impact of such quality ratings on suppliers, manufacturers, and social welfare. While it might seem that quality ratings would benefit high‐quality suppliers and hurt low‐quality suppliers, we show that this is not always the case. We find that such quality ratings can hurt both types of suppliers or benefit both, depending on the market conditions. We also find that quality ratings do not always benefit the most demanding manufacturers who desire high‐quality suppliers. Finally, we find that social welfare is not always improved by risk ratings. These results suggest that public policy initiatives addressing risk ratings must be carefully considered.     

Did small and medium enterprises maintain better jobs during the early years of the recession? Job quality multidimensional evidence from Spain

While the literature has indeed confirmed a general tendency linking small and medium enterprises (SMEs) to a dynamic of greater job creation, there is little available evidence on what has happened to job quality since the financial crisis. Through a representative sample of 5311 employees in 2008 (first year of job destruction) and 4925 employees in 2010 (last year for which data were available), and using a two-stage structural equation model, this article empirically analyses the multidimensional determinants of job quality, by enterprise-size class, in Spain. The research has revealed three main results. First, job quality in Spain improved in all enterprises, regardless of their size, during the early years of the recession. Second, the greatest improvements were found in SMEs. Although job quality was already better in SMEs than in large enterprises in 2008, the differences between them subsequently widened. Third, this accelerated divergence was explained by the following dimensions: working conditions, work intensity, health and safety at work, and work–life balance. These dimensions were much more positive in SMEs. Employment-related public policy should therefore focus more specifically on SMEs. There are two reasons for this. First, despite the recession, SMEs have shown themselves to be key factors in the explanation of job quality. Second, by making changes to their value generation model, they could continue to drive the creation of better quality jobs.