Showing papers in "Academy of Management Perspectives in 2013"
TL;DR: Organizational ambidexterity refers to the ability of an organization to both explore and exploit, to compete in mature technologies and markets where efficiency, control, and incremental improvement are prized and to also compete in new technologies as discussed by the authors.
Abstract: Organizational ambidexterity refers to the ability of an organization to both explore and exploit—to compete in mature technologies and markets where efficiency, control, and incremental improvement are prized and to also compete in new technologies and markets where flexibility, autonomy, and experimentation are needed. In the past 15 years there has been an explosion of interest and research on this topic. We briefly review the current state of the research, highlighting what we know and don't know about the topic. We close with a point of view on promising areas for ongoing research.
1,421 citations
TL;DR: In this paper, a meta-analysis of prior studies on organizational ambidexterity and performance is conducted to reconcile the mixed results of prior research, and the authors find that positive and significant Organizational ambideXterity-performance relationships are to a large extent moderated by contextual factors and methodological choices.
Abstract: A growing number of studies argue that organizational ambidexterity is increasingly important for the sustained competitive advantage of firms. However, organizational ambidexterity studies have been conducted in a wide variety of industries and methodological settings, and the empirical results have been mixed. The purpose of this article is to systematically examine the organizational ambidexterity–performance relationship to reconcile the mixed results of prior research. By conducting a meta-analysis of prior studies on organizational ambidexterity and performance, we find that positive and significant Organizational ambidexterity–performance relationships are to a large extent moderated by contextual factors and methodological choices: Organizational ambidexterity is particularly important for performance in nonmanufacturing industries and at higher levels of analysis. Also, the performance effects are stronger when “combined” measures of organizational ambidexterity and perceptual performance are use...
647 citations
TL;DR: The authors chart the evolution of ambidexterity since its inception, analyzing the diversity in the views held on the topic, and suggest some key areas where it can make a unique contribution.
Abstract: The concept of organizational ambidexterity has been applied to a wide variety of phenomena in recent years. Its growing appeal is a reflection of its versatility, but this versatility carries the risk of a lack of clarity in meaning and measurement. In this paper, we attempt to bring a sense of perspective to the field of ambidexterity by documenting its growth and usage in scholarly work. We chart the evolution of ambidexterity since its inception, analyzing the diversity in the views held on the topic. We conclude by discussing how ambidexterity research can benefit from greater focus, and we suggest some key areas where it can make a unique contribution.
566 citations
TL;DR: A review of the history of the micro-foundations discussion can be found in this article, where the authors argue that questions of social aggregation and emergence need to be center stage in any discussion of microfoundations.
Abstract: In the extant organizational, management, and strategy literatures there are now frequent calls for microfoundations. However, there is little consensus on what micro- foundations are and what they are not. In this paper we first (briefly) review the history of the microfoundations discussion and then discuss what microfoundations are and are not. We highlight four misconceptions or "half-truths" about microfoundations: (1) that microfoundations are psychology, human resources, or micro-organizational behavior, (2) that borrowed concepts constitute microfoundations, (3) that microfoundations lead to an infinite regress, and (4) that microfoundations deny the role of structure and institutions. We discuss both the partial truths and the misconceptions associated with the above understandings of microfoundations, and we argue that questions of social aggregation and emergence need to be center stage in any discussion of microfoundations. We link our arguments about microfoundations and aggregation with closely related calls for new areas of research, such as "behavioral strategy" and the domain of multilevel human capital research. We discuss various forms of social aggregation and also highlight associated opportunities for future research, with a specific focus on the origins of capabilities and competitive advantage.
525 citations
TL;DR: In this article, the authors propose that the challenge of managing two different and conflicting business models simultaneously can be framed as an ambidexterity challenge and apply this idea to explore four specific areas where the ambideXterity literature could guide research on managing two business models.
Abstract: One of the issues addressed in the growing literature on business model innovation is how to compete with two business models simultaneously. Unfortunately, this body of work lacks a theoretical foundation. I propose that the challenge of managing two different and conflicting business models simultaneously can be framed as an ambidexterity challenge. This implies that ideas and theoretical concepts from the ambidexterity literature can be used to explore issues pertinent to the business model literature. I apply this idea to explore four specific areas where the ambidexterity literature could guide research on the challenge of managing two business models simultaneously and identify several insights that can guide future research on business model innovation.
320 citations
TL;DR: In this article, the authors identify the principal components of corporate environmental performance and find that two distinct factors (process and practices implemented by firms and the environmental outcomes they generate) explain 80% of the variance of the data.
Abstract: The emergence of socially responsible investing has led to the development of a large number of methodologies for rating corporate social responsibility and to a growing body of research exploring the link between environmental and financial performance. Increased availability of information potentially generates an abundance of riches upon which to base investment decisions, but it also raises issues of commensurability, information overload, and confusion. Using a unique data set combining environmental ratings from three leading purveyors, we identify the principal components of corporate environmental performance. We find that two distinct factors—the environmental processes and practices implemented by firms, and the environmental outcomes they generate—explain 80% of the variance of the data. We also find corporate financial performance to be associated to process but not to outcome measures.
236 citations
TL;DR: The authors make the case that a suitable individual-level foundation can be found only in an account of individual psychology that gives due weight to habit and clearly distinguishes habit from deliberative decision making.
Abstract: The proponents of the “microfoundations project” have advanced a number of criticisms of theories of organizational routines and capabilities. While the criticisms derive in part from philosophical or methodological premises that are open to serious question, and tend to ignore the empirical research on the subject, there remains a valid core concern about the foundational characterization of human nature and particularly about the relationship of the individual level of analysis to the organizational level. This paper makes the case that a suitable individual-level foundation can be found only in an account of individual psychology that gives due weight to habit and clearly distinguishes habit from deliberative decision making. Insight is drawn from the writings of John Dewey and from recent research in psychology.
193 citations
TL;DR: In this paper, the authors argue that the management of motivation is first and foremost a management of cognitions of organizational members, an insight found in goal-framing theory, an emerging perspective based on cognitive science, behavioral economics, and social psychology.
Abstract: Scholars increasingly seek to proffer microfoundations for macro management theory, notably strategic management theory. These microfoundations naturally revolve around human resources. We argue that proper microfoundations for strategic management theory must recognize that the management of motivation is first and foremost a matter of the management of cognitions of organizational members, an insight we found in goal-framing theory, an emerging perspective based on cognitive science, behavioral economics, and social psychology. Building on this insight, we argue that a key reason why strategic goals matter to firm performance—that is, firm-level value creation and value capture and sustained competitive heterogeneity—is that such goals influence value creation rooted in employee motivations. Unfolding this idea allows us to generate new insight into the relations among value creation, strategic leadership, and strategic goals.
180 citations
TL;DR: In this article, the authors argue that corporate social responsibility is not systematically correlated with companies' economic fundamentals and that opportunistic managers are incentivized to distort information provided to market participants about their firms' corporate social concern.
Abstract: Organizational signals about corporate social responsibility may have a harmful impact on equity markets for two main reasons. First, corporate social responsibility is not systematically correlated with companies' economic fundamentals. Second, opportunistic managers are incentivized to distort information provided to market participants about their firms' corporate social responsibility. Either causal force, by itself, makes it difficult for market participants to interpret information about corporate social responsibility accurately. This greater noise in financial markets typically invites more noise trading, which in turn leads to excess market volatility (among all publicly traded firms) and, in a particular context of social-institutional processes and structures, to excess market valuations of firms that are widely perceived as socially responsible.
142 citations
TL;DR: This article carried out a multistage qualitative study designed to provide an understanding of a new generation of organizational citizenship behaviors as expressed at Google, a high-innovation, fast-paced firm, characteristic of the new form of work common to the high-technology industry and knowledge economy.
Abstract: Organizational citizenship behaviors are discretionary employee behaviors that are helpful but not absolutely required by employers. While a great deal of information has been gleaned about the importance of organizational citizenship behaviors in the workplace, the nature of work has fundamentally changed; with this shift, the nature of organizational citizenship behavior for modern workers is also likely to have changed. Thus, the field is ready for an evolution in how we conceptualize organizational citizenship behavior that considers the contemporary nature of work. We carried out a multistage qualitative study designed to provide an understanding of a new generation of organizational citizenship behaviors as expressed at Google, a high-innovation, fast-paced firm, characteristic of the new form of work common to the high-technology industry and knowledge economy. Our findings indicate that some established organizational citizenship behavior concepts map onto knowledge workers' conceptualizations of ...
120 citations
TL;DR: Using organizational power and influence as a focus, the authors argues that fundamental theoretical processes remain largely unchanged in their explanatory power, in part because such phenomena can be linked to survival advantages.
Abstract: Changes in the values and careers of particularly younger employees and changes in organizations, including the reduction of hierarchical levels and greater use of teams and matrix structures—combined with new communication technologies and more social networking—have produced calls for new organization theories for these new realities. Using organizational power and influence as a focus, I argue that fundamental theoretical processes remain largely unchanged in their explanatory power, in part because such phenomena can be linked to survival advantages. The new workers–new work arguments are consistent with the continuing emphasis on novelty and theoretical innovation in the organization sciences, an emphasis that, while promulgated in virtually all the journals, may poorly serve the development of reliable and valid knowledge and hinder our ability to provide useful advice for both organizations and their employees.
TL;DR: An introduction is presented to articles in this issue including "What are microfoundations?," "Rational and Reasonable Microfoundations of Markets and Institutions" and "MicroFoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action" as discussed by the authors.
Abstract: An introduction is presented to articles in this issue including "What Are Microfoundations?," "Rational and Reasonable Microfoundations of Markets and Institutions" and " Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action."
TL;DR: For example, the authors aggregates the results of 143 studies via meta-analysis to better understand the extent to which transaction cost economics' core predictions are supported and whether more recent theoretical developments shed additional light on organizing decisions.
Abstract: Transaction cost economics has long been a key perspective on the organization of economic activity. Over the past three decades, numerous studies have examined transaction cost economics' assertion that the costs surrounding exchanges, called transaction costs, direct managers' decisions about whether to organize activities via market, hybrid, or hierarchy, and whether organizing this way enhances performance. By aggregating the results of 143 studies via meta-analysis, we take a step toward better understanding the extent to which transaction cost economics' core predictions are supported and whether more recent theoretical developments shed additional light on organizing decisions. Our results reveal that transaction cost economics explains organizing decisions and resulting performance, but the size of the effects reveals that there is still much to learn. Overall, our findings suggest that transaction cost economics must be augmented with other perspectives to explain how firms organize economic acti...
TL;DR: Behavioral strategies are a potentially promising micro-foundation of management research as discussed by the authors, and evidence is mounting for each one, and the combination of evidence, consequentiality, and generative power for future research argues for giving behavioral strategies a role in the microfoundations of management theory.
Abstract: Behavioral strategies are a potentially promising microfoundation of management research. Organizational scholars are investigating strategies involving momentum, feedback, inference, and anticipation, and evidence is mounting for each one. These strategies are interesting because they reflect how boundedly rational decision makers reach different levels of collective rationality in organizational action, and they have consequences for organizational learning and adaptation. They also serve as windows into decision-making processes and sources of puzzles that can guide direct investigation of decision-making processes. The combination of evidence, consequentiality, and generative power for future research argues for giving behavioral strategies a role in the microfoundations of management theory.
TL;DR: The authors suggest that observers are inclined to problematize conflict among women at work relative to conflict among men, and that this tendency might be partly responsible for perceptions that women have difficulty working with one another.
Abstract: We propose that individuals are inclined to believe that women have difficulty working with one another. Management researchers have reinforced this assumption by propagating concepts such as the queen bee syndrome and by neglecting to provide balanced perspectives with accounts of conflict among men at work. We suggest that observers are inclined to problematize conflict among women at work relative to conflict among men, and that this tendency might be partly responsible for perceptions that women have difficulty working with one another. We provide empirical evidence to support this notion. We first review the literature on conflict between women at work and address its shortcomings to set the stage for our study.
TL;DR: A review of the relevant literature on workplace romance and sexual harassment policies, and discusses evolving social media policies, legal perspectives, and privacy issues is provided in this paper. But, the focus of this paper is not on romantic relationships, but rather the risks of social media spillover and harassment from romance in the office.
Abstract: “Textual harassment”—sending offensive or inappropriate text messages to coworkers—is on the rise (Baldas, 2009; Hunton & Williams LLP, 2009; Parker-Pope, 2011). Contemporary social media technologies (e.g., Facebook, Twitter, Tumblr, blogs, Instagram, Foursquare) carry numerous risks associated with personal and professional connectivity, privacy, and intimacy, and these risks require a new look at policy formulation concerning the boundaries of workplace romance versus harassment in the Internet age. This article includes a review of the relevant literature on workplace romance and sexual harassment policies, and discusses evolving social media policies, legal perspectives, and privacy issues. We advocate the concept of “love contracts” to aid human resource professionals, legal experts, and romantic couples concerning the risks of social media spillover and harassment from romance in the office.
TL;DR: The authors analyzed the employment, wages, human resource management, and industrial relations impact of private equity, drawing on empirical evidence from various countries and institutional contexts, and concluded that regulating private equity in favor of the organizational model of managerial capitalism is unlikely to necessarily further workers' interests.
Abstract: We analyze the employment, wages, human resource management, and industrial relations impact of private equity, drawing on empirical evidence from various countries and institutional contexts. We identify different types of private equity-backed buyouts and highlight the impact of creating value through long- and short-term ownership and strategies emphasizing increased efficiency or growth. We show that the effects may vary between buyout types and that it is inappropriate to regard most private equity leveraged buyouts as a zero-sum game with value transferred to shareholders at workers' expense. We conclude that regulating private equity in favor of the organizational model of managerial capitalism is unlikely to necessarily further workers' interests.
TL;DR: In this paper, the relationship between eldercare responsibilities and work outcomes is investigated in the management literature, and the results are inconclusive, however, the authors identify some noteworthy advances that have implications for future research directions and the ways in which organizations respond to the eldercARE needs of their employees.
Abstract: As countries around the world experience the graying of their populations, longer life expectancies mean greater possibility of illness and incapacitation. At the same time, demographic trends are altering the traditional arrangements for eldercare. Given that a high percentage of caregivers are employed outside the home, the tension between employment and caregiving responsibilities is likely to increase. However, the relationship between eldercare responsibilities and work outcomes is understudied, especially in the management literature, and the results are inconclusive. This article analyzes 31 empirical studies on the relationship between eldercare and work published in peer-reviewed academic journals since 1995. Although methodological limitations exist in the current literature, a number of noteworthy advances have been identified that have implications for future research directions and the ways in which organizations respond to the eldercare needs of their employees.
TL;DR: In this article, the authors explore the evolution and strategic positioning of private equity firms (general partners) themselves (versus previous research focused on buyout portfolio firm implications), and provide a conceptual configuration of PE firms along two dimensions: their financial structure emphasis (the strategic use of debt versus equity among private equity portfolio firms) and the diversified scope of their portfolio firms.
Abstract: This paper explores the evolution and strategic positioning of private equity firms (general partners) themselves (versus previous research focused on buyout portfolio firm implications). Specifically, we provide a conceptual configuration of private equity firms along two dimensions: their financial structure emphasis (the strategic use of debt versus equity among private equity portfolio firms) and the diversified scope of their portfolio firms. Using these dimensions, we create a typology classifying private equity firms into short-term efficiency niche players, niche players with long-term equity positions, diversified players with focused groups of portfolio firms, and short-term diversified efficiency-oriented players. We also use resource dependence theory and resource-based theory to form our model, and discuss theoretical and managerial implications as well as public policy suggestions.
TL;DR: In this article, the authors propose that individual rational behavior (from neoclassical economics) and collective reasonable behaviour (from jurisprudence) serve as the microfoundations of markets and institutions, respectively.
Abstract: This paper proposes that individual rational behavior (from neoclassical economics) and collective reasonable behavior (from jurisprudence) serve as the microfoundations of markets and institutions, respectively. We propose that incorporating a collective standard of reasonable behavior can significantly enrich mainstream theories of organization and management that are based largely on a model of individual rational behavior. We examine this proposition in the cases of behavioral theory of the firm, transaction cost economics, organizational institutional theory, and population ecology theory. In each case we find that important new advances can be made in these maturing theories by incorporating both rational and reasonable models of behavior.
TL;DR: In this paper, a review highlights the occurrence and complexities of strategic sexual performances and discusses the important implications of sexual performances on managers, employees, and workplace policies, highlighting the positive and negative consequences that may follow.
Abstract: Organizational research on workplace sexuality generally focuses on sexual harassment or workplace romance to the exclusion of strategic forms of sexuality (i.e., the instrumental use of sexuality to influence others or gain desired ends). We consider men's and women's strategic sexual performances as a form of social influence and address the positive and negative consequences that may follow. This review highlights the occurrence and complexities of strategic sexual performances and discusses the important implications of sexual performances on managers, employees, and workplace policies.
TL;DR: In this paper, the authors argue that private equity is best regarded as a governance structure that, like all forms of organization, has benefits and costs that vary according to circumstances, and that managers of privately held firms, as owners, exercise a strong degree of entrepreneurial judgment over the use of assets, unlike salaried executives of publicly held companies.
Abstract: Private equity is best understood not as a financing method but as a governance structure, one that emphasizes strong performance incentives, rules over discretion, and a strong alignment between ownership and management. Briefly, private equity governance makes owners into active managers and makes managers behave like owners. As such, private equity is often regarded as a more “entrepreneurial” form of governance than that associated with the publicly traded corporation. We argue for a balanced view in which private equity is best regarded as a governance structure that, like all forms of organization, has benefits and costs that vary according to circumstances. Building on the “judgment-based” view of entrepreneurship, we note that managers of privately held firms, as owners, exercise a strong degree of entrepreneurial judgment over the use of assets, unlike salaried executives of publicly held companies. At the same time, however, privately held firms are often constrained from pursuing potentially at...
TL;DR: In this article, the authors argue that one consequence of pursuing the new is a neglect of politics and "theories of power" that are symptomatic of a lack of scientific progress in management research.
Abstract: In “You're Still the Same: Why Theories of Power Hold Over Time and Across Contexts,” Jeffrey Pfeffer argues that one consequence of pursuing the “new” is a neglect of politics and “theories of power” that are symptomatic of a lack of scientific progress in management research. I agree that politics is an omnipresent feature of organization(s) and of management practice, but power and influence reach well beyond the surface mechanisms identified and naturalized by Professor Pfeffer. They extend to practices of sexism, racism, and colonialism as well as class. Thus, what is absent from “You're Still the Same” is a consideration of how, historically, power and influence are institutionalized in such practices, and how they may be diminished through emancipatory effort, including scientific practice.
TL;DR: In this article, the authors address the need to consider the systematic evidence on the managerial and strategic aspects of private equity (PE), in relation to both portfolio firms and PE firms, and develop a framework to differentiate PE firms' strategic positioning and consider the role of such positioning in regard to potential performance and the impact on portfolio firms.
Abstract: This symposium addresses the need to consider the systematic evidence on the managerial and strategic aspects of private equity (PE), in relation to both portfolio firms and PE firms. Bacon, Wright, Ball, and Meuleman draw on evidence from empirical studies from different institutional contexts to identify factors that may affect the nature of human resources management (HRM) and employment in PE-backed deals. The authors consider deals conducted within a particular country and those involving financing by foreign private equity firms. Hoskisson, Shi, Yi, and Jin develop a framework to differentiate PE firms' strategic positioning and consider the role of such positioning in regard to potential performance and the impact on portfolio firms. Klein, Chapman, and Mondelli argue for a more balanced perspective on the managerial impact of PE-backed buyouts with a particular focus on entrepreneurial issues.
TL;DR: In this article, the authors focus on Attention Deficit/Hyperactivity Disorder (ADHD), which affects a substantial proportion of the adult population and often remains undiagnosed.
Abstract: The article focuses on Attention Deficit/Hyperactivity Disorder (ADHD), which affects a substantial proportion of the adult population and it often remains undiagnosed. Because of its symptoms, which include inability to focus and maintain attention, problems in time management and procrastination, ADHD is suspected as a cause of poor performance in the workplace. A recent contemplation suggests a mechanism for that: employees with ADHD may perform less well because they are unable to focus their attention at tasks that have a long-term consequence for job accomplishment, but they instead pay attention at tasks that require immediate attention, such as responding to a low priority e-mail, but are of less long-term importance for the job. In essence, this means that employees with ADHD may still demonstrate strong effort, but they are unable to translate that effort into actual work performance because they focus on low value-adding tasks. A series of studies have provided substantial support for that reasoning. The studies not only confirmed that ADHD is associated with reduced job performance, but they also demonstrated that ADHD does not allow employee effort to translate into performance on the job. What the findings also implied is that those with ADHD are probably unaware that their effort does not translate into performance, so they keep working inefficiently, albeit hard. The findings make important implications for practice and how to deal with ADHD in the workplace, given that ADHD may be affecting one in ten workers.
TL;DR: Bauer et al. as discussed by the authors investigated the decision-making behaviors of sales managers and found that managers typically rely on their experience, tend to be over confi dent, and employ rule-of-thumb approaches that may result in a faster, acceptable decision.
Abstract: Good customer relationships are more critical than ever to business strategy and success. As such, the maxim “the customer is always right” is valued by managers who understand the benefi ts of acquiring and retaining quality customers. But how do these managers get it right when it comes to making important, tactical decisions about their customers? That was the general question that Johannes Bauer (University of St. Gallen), Philipp Schmitt (Goethe University Frankfurt), and their New York University colleagues Vicki Morwitz and Russell Winer, set out to answer in their investigation of the decision-making behaviors of sales managers. The team acknowledged that companies are fi ne-tuning their efforts to collect and process massive amounts of customer data aimed at increasing the lifetime value of individual customers to their fi rms and maximizing the overall asset value of their customers, yet they asserted that there is still much to learn about how managers actually make decisions about customers, particularly the steps involved and the factors that shape their decision making. Their study was guided by the concept of bounded rationality—the idea that individuals make decisions based on a limited amount of information about the task at hand, using their own limited mental capabilities, and according to the environmental constraints in which the task is undertaken (Simon, 1955). Bauer and his colleagues surmised that managers typically rely on their experience, tend to be over confi dent, and employ rule-of-thumb approaches that may result in a faster, acceptable decision. However, this may come at the expense of decision accuracy while foregoing optimal returns on the resources invested in the task. Bauer and his colleagues compared two approaches to decision making that illuminate bounded rationality: (a) adaptive decision making, which suggests that managers would respond differently and fl exibly to a task depending on the variables in the environment in which the decision is being made (Payne et al., 1993); and (b) fast and frugal decision making, where the managers would prefer a tested, simplifi ed mental calculus based on a limited set of information about the issues at hand (Gigerenzer & Goldstein, 1996).
Journal Article•
TL;DR: In this paper, the authors investigated whether profitability depends on the institutional environment of the host country, and they found that rule of law is associated with greater MFI profitability while corruption makes it harder for MFIs to realize profits.
Abstract: There have been profound changes in both political and economic institutions in Africa economies over the last 20 years. These changes vary from one country to another. This study contributes to the literature on microfinance profitability by examining whether profitability depends on the institutional environment of the host country. System GMM Estimator in Dynamic Panel Data Models is applied to determine the extent to which institutions affect microfinance profitability. We test the robustness of the models with different specifications that confirm the general result. Our estimation shows that microfinance profitability is non-negligibly driven by the surrounding institutional environment. Specifically, the results indicate that on average, microfinance institutions (MFIs) are more profitable when there is political stability. Upon interaction with MFI age, we show that political stability may make it more conducive for young MFIs to form relationships with reliable new borrowers. Rule of law is associated with greater MFI profitability while corruption makes it harder for MFIs to realize profits, irrespective of age. Well developed institutions may therefore make it less costly for MFIs to operate in a fully compliant way. Based on the study findings, it is prudent that policymakers prioritize institutional reforms that are critical for microfinance development in Africa.