Showing papers by "Henk W. Volberda published in 2015"

Regulatory focus as a psychological micro-foundation of leaders' exploration and exploitation activities

Abstract: In recent years, there has been strong interest in leaders' exploration and exploitation activities, especially because of their positive effects on performance. Most prior research in this area has focused on the organizational antecedents of leaders' exploration and exploitation activities, with less consideration given to the psychological precursors. This paper draws upon insights from the behavioral strategy literature to inform our theoretical perspective on leaders' exploration–exploitation activities. In particular, by conceptually linking leaders' regulatory focus and exploration–exploitation, we provide a theoretical framework to explain these activities from a psychological viewpoint. Moreover, we employ two moderator variables to better understand the different properties and boundaries of this framework. All in all, this paper has a number of implications for strategic leadership theory and practice.

Board background heterogeneity and exploration-exploitation: The role of the institutionally adopted board model

Abstract: Boards of directors are in a position to contribute vital knowledge resources to strategy-making. We propose that the relation between board functional background heterogeneity and exploration-focused versus exploitation-focused strategy is contingent on the extent to which the institutionally adopted board model enables or constrains inclusion of the board's knowledge resources in strategy-making. We empirically juxtapose the Anglo-Saxon (‘one-tier’) and Rhineland (‘two-tier’) board models in the U.K. and Germany, respectively, and find support for our assertion that the influence of board functional background heterogeneity on relative exploration orientation is more pronounced when the adopted board model accommodates inclusion of the board's knowledge resources into strategy-making. Implications for theory and practice are discussed.

Strategic levers of port authorities for industrial ecosystem development

Abstract: Major ports such as Rotterdam, Antwerp, Houston and Singapore’s Jurong Port host large industrial complexes of (petro)chemical and other energy-intensive process industry firms. Port authorities face the challenge to contribute to both greater international competitiveness and better environmental performance of these complexes. The development of industrial ecosystems, in which firms located in port areas use one another’s residual energy and chemical effluents as input for their own production process, appears to be a promising strategic response to this challenge. In this article, we contribute to port research by examining how port authorities can foster this development within their port-industrial complex. We present a case study of the Port of Rotterdam to empirically capture how the Port of Rotterdam Authority has done so in the last decade by strategically making use of two generic types of policy instruments: (i) investments in physical and knowledge infrastructure and (ii) land allocation. On the basis of the case study and previous literature, we derive a set of strategic levers of port authorities to foster industrial ecosystem development. We discuss implications and challenges for port authorities.

Power and paradigms: the Dutch response to pressures for shareholder value

Abstract: Manuscript Type Empirical Research Question/Issue In recent years, research aimed at identifying and relating the antecedents and consequences of diffusing organizational practices/ideas has turned its attention to debating the international adoption and implementation of the Anglo-American model of corporate governance, i.e., a shareholder value orientation (SVO). While financial economists characterize the adoption of an SVO as necessary and performance-enhancing, behavioral scientists have disputed such claims, invoking institutional contingencies in the appropriateness of an SVO. Our study seeks to provide some resolution to the debate by developing an overarching sociopolitical perspective that links the antecedents and consequences of the adoption of the contested practice of SVO. Research Findings/Insights We test our framework using extensive longitudinal data from 1992–2006 from the largest listed corporations in the Netherlands. We find a negative relationship between SVO adoption and subsequent firm performance, although this effect is attenuated when accompanied by greater SVO alignment among major owners and a firm's visible commitment to an SVO. Theoretical/Academic Implications This study extends prior research on the diffusion of contested organizational practices that has taken a sociopolitical perspective by offering an original contingency perspective that addresses how and why the misaligned preferences of corporate owners will affect (i) a company's inclination to espouse an SVO, and (ii) the performance consequences of such misalignment. Practitioner/Policy Implications This study suggests that, when board members are considering the adoption of new ideas/practices (e.g., SVO), they should consider the contextual fitness of the idea/practice with the firm's owners and their interests.

Reframing the Compositional Capability: A resource-based view on 'A composition-based view of firm growth'

Abstract: This commentary targets the core ideas of the composition-based view (CBV). First, we argue that the deployment of compositional capabilities (CCs) to combine ordinary resources fits the resource-based view (RBV) and that there is therefore no need for a CBV. Second, we argue that the CCs should be presented as a specific type of dynamic capability (DC). We show that even where ordinary resources are being combined, superior combinatory capabilities are needed as competitive advantage cannot otherwise be achieved. Third, we argue that Luo and Child (2015) focused too much on the emerging economy enterprises (EEEs) as the conceptual setting. We conclude with a future research agenda to prepare the ground for research on compositional capabilities within the composition-based view of the firm.

A co-evolutionary analysis of longevity: Pakhoed and its predecessors

Abstract: In this study of the warehousing company Pakhoed and its predecessors over a period of 200 years, we analyse the configuration of environmental forces, exploitation and exploration, and three firm-level longevity factors: a tolerant management style and decentralised structure; a strong sense of identity; and a conservative financial policy. The idiosyncratic set-up of Pakhoed's forerunners enabled their long-term survival through co-evolution with an environment that both compelled them to be responsive and provided them with scarce resources. In the most recent period, failed explorations helped Pakhoed to strengthen its sense of identity and to focus on a well-chosen field of exploitation.

Entrepreneurial orientation and performance: investigating local requirements for entrepreneurial decision-making

Abstract: Entrepreneurial orientation (EO) plays an important role in explaining firm performance. In this study, we investigate the relation between EO and performance at the strategic business unit (SBU) level and examine the influence of decision-making mode and social capital of the focal business unit manager. Adopting the attention-based view (ABV) as our main theoretical perspective, we examine the impact of decision-making mode (i.e., participative vs. autocratic) on the EO–performance relation. In addition, we investigate the extent to which strong network ties with actors at lower, similar, and higher hierarchical positions, respectively, enable SBU managers to effectively engage in participative decision-making processes when leveraging EO. Our findings based on 119 SBUs of one large international company provide nuanced insights into how local conditions interact to shape EO’s influence on performance.

How does co-creation with customers influence innovation performance? The role of connectedness

Abstract: Co-creation with customers is considered to be an important source of competitive advantage. However, prior research has provided mixed results to what extent it increases innovation performance and mainly included the role of formal coordination mechanisms within an organization in it. To contribute to address these gaps in the co-creation literature, we examine how co-creation, conceptualized by relationship learning, influences exploitative and exploratory innovation and how these effects are contingent upon an important informal coordination mechanism: connectedness within a unit. Based on a survey among Dutch care organizations, our findings indicate that relationship learning with customers has an inverted U-shaped effect on exploitative innovation, while its effect on exploratory innovation is positive. Additionally, connectedness flattens the negative effect of higher levels of relationship learning with customers on exploitative innovation, while it has a negative effect on exploratory innovation...