Showing papers in "California Management Review in 2012"
TL;DR: In this paper, changes in the global environment are generating opportunities for companies to build advantage by creating loosely coupled networks or ecosystems, which are larger, more diverse, and more flu...
Abstract: Changes in the global environment are generating opportunities for companies to build advantage by creating loosely coupled networks or ecosystems. Ecosystems are larger, more diverse, and more flu...
264 citations
TL;DR: A framework for a company-internal application of crowdsourcing methods is proposed and a set of five goals companies can pursue employing internal crowdsourcing are presented.
Abstract: Crowdsourcing is typically associated with the incorporation of company-external stakeholders such as customers in the value creating process. This article proposes a framework for a company-internal application of crowdsourcing methods. It presents a set of five goals companies can pursue employing internal crowdsourcing. The practical approach of an Austrian medium-sized technology company is described in detail, including insights on software design and appropriate procedures.
214 citations
TL;DR: In this article, the relevance of corporate social responsibility (CSR) for engaging employees, including its impact on their motivation, identity, and sense of meaning and purpose, is explored. And three different ways that companies engage their employees through CSR: a transactional approach, where programs are undertaken to meet the needs of employees who want to take part in the CSR efforts of a company; a relational approach, based on a psychological contract that emphasizes social responsibility; and a developmental approach, which aims to activate social responsibility in a company and to develop its employees to be responsible corporate citizens
Abstract: This article looks at the relevance of corporate social responsibility (CSR) for engaging employees, including its impact on their motivation, identity, and sense of meaning and purpose. It explores three different ways that companies engage their employees through CSR: a transactional approach, where programs are undertaken to meet the needs of employees who want to take part in the CSR efforts of a company; a relational approach, based on a psychological contract that emphasizes social responsibility; and a developmental approach, which aims to activate social responsibility in a company and to develop its employees to be responsible corporate citizens.
189 citations
TL;DR: A strong reputation is widely acknowledged to be the most valuable asset of a firm, and sustainability has become an important component of corporate reputation as discussed by the authors. But it is difficult for companies to use sustainability to create meaningful differentiation from competitors and thus benefit from their investments.
Abstract: A strong reputation is widely acknowledged to be the most valuable asset of a firm, and sustainability has become an important component of corporate reputation. Many stakeholders, from customers to investors to employees to purchasing managers, report that sustainability is an important factor in their decision-making processes. However, sustainability messages have become ubiquitous–almost table stakes–for most large firms. In such an active marketplace, especially for firms who have not pursued leadership positions, it is difficult for companies to use sustainability to create meaningful differentiation from competitors and thus benefit from their investments. There is often a major gap between stakeholder perceptions and firm performance. Firms that integrate sustainability into their culture and business practices are better able to integrate sustainability messaging into mainstream communications.
142 citations
TL;DR: In this article, the authors propose a framework for companies to address CSR and their brands strategically, whether as entrepreneurs, performers, vocal converts, or quietly conscientious, according to the level of involvement, integration and the key initiator of the CSR focus.
Abstract: Corporate social responsibility (CSR) is changing the rules of branding but it is unclear how. While the literature offers a range of approaches seeking insight to how to manage CSR-related issues, practitioners are left in a state of confusion when having to decide on how to tackle CSR in a way that benefits both the corporate brand and society at large. Based on qualitative empirical research, this article offers a framework for companies to address CSR and their brands strategically, whether as entrepreneurs, performers, vocal converts, or quietly conscientious. We define these categories according to the level of involvement, integration, and the key initiator of the CSR focus. This article concludes with suggestions practitioners should keep in mind when aiming to balance stakeholder tensions and to achieve consistency in their corporate branding and CSR efforts.
138 citations
TL;DR: While there is widespread support for the notion that organizations with better reputations outperform their rivals, there is uncertainty about how to create such a reputation, especially among the general public as discussed by the authors.
Abstract: While there is widespread support for the notion that organizations with better reputations outperform their rivals, there is uncertainty about how to create such a reputation, especially among the...
116 citations
TL;DR: In this paper, a case study of the AC 4 ID Test is presented, which is also informed by the identity-based view of corporate brands from a strategic, diagnostic, corporate brand management framework.
Abstract: Marshaling case study research insights, this article advances our knowledge of the strategic management of corporate brands. Strategic corporate brand management requires commitment to three critically important imperatives: senior management custodianship; the building and maintaining of brand credibility; and the dynamic calibration of seven identities constituting the corporate brand constellation. This article draws on research dating back to the 1990s and is also informed by the identity-based view of corporate brands perspective and by recent scholarship on the AC 4 ID Test—a strategic, diagnostic, corporate brand management framework. (Keywords: Brand management, Corporate strategy, United Kingdom, Brand equity, China, Communication in organizations, Corporate culture, Organizational change)
103 citations
TL;DR: The authors showed that flattening management layers can have the opposite effect from their intention and that flattened firms typically exhibit more control and decision-making at the top of a firm's hierarchy.
Abstract: For decades, management consultants and the popular business press have urged large firms to flatten their hierarchies. Flattening (or delayering) typically refers to the elimination of layers in a firm's hierarchy and the broadening of managers’ spans of control. The alleged benefits flow primarily from pushing decisions downward to enhance market responsiveness and improve accountability and morale. Has flattening delivered on its promise? This article demonstrates that flattening management layers can have the opposite effect from their intention. In fact, flattened firms typically exhibit more control and decision making at the top.
100 citations
TL;DR: In this article, the authors show that the front-end can be understood as comprising three core activities: idea/concept development, alignment, and concept legitimization, which allow firms to create corroborated product definitions.
Abstract: Front-end activities largely influence the outcomes of new product development processes, because it is here that firms create new ideas, give them direction, and set them in motion. We show that the front end can be understood as comprising three core activities: idea/concept development, idea/concept alignment, and idea/concept legitimization, which allow firms to create corroborated product definitions. This article provides important implications for managers interested in front-end management. It devotes specific attention to the differences between incremental and radical front-end development and to the front end in the light of increasingly open innovation processes.
93 citations
TL;DR: The authors developed a conceptual framework for diagnosing two types of strategic language traps and their origins commonly encountered by firms as they attempt to enter new business domains as well as in acquisition driven growth and alliances.
Abstract: While all of us would easily recognize that language matters in the obvious case of different national languages, or in formal strategic communication to employees or stakeholders, the importance of a firm's informal language as an enabler or constraint for growth and strategic agility has not been recognized. Using qualitative data from in-depth empirical comparative studies, this article develops a conceptual framework for diagnosing two types of strategic language traps and their origins commonly encountered by firms as they attempt to enter new business domains as well as in acquisition driven growth and alliances. It proposes solutions for companies to overcome their specific language trap and enable strategic agility.
91 citations
TL;DR: In this article, the authors identify a range of practices that allow organizations to meet these challenges and therefore realize some of the potential of unsolicited ideas for R&D. But, in practice, many organizations find it difficult to deal with unsolicited information because of high quantity, low quality, and the need to transfer IP ownership.
Abstract: Existing academic and popular literature suggests that unsolicited ideas, the non-contractual and voluntary submission of innovation-related information from external sources to the firm, offer the promise of a bountiful and low-cost tool to sustain and extend firms’ R&D efforts. Yet, in practice, many organizations find it difficult to deal with unsolicited ideas because of high quantity, low quality, and the need to transfer IP ownership. This article identifies a range of practices that allow organizations to meet these challenges and therefore realize some of the potential of unsolicited ideas for R&D.
TL;DR: In this paper, the authors argue that three key conditions are necessary for venture capital to successfully open new economic spaces and then apply them to assess the viability of venture capital investment in clean technology.
Abstract: In a search for Schumpeterian solutions, the Obama Administration has made venture capital a cornerstone of its Clean Technology policy, adopting a strategy of providing large loan guarantees to a few venture capital-financed firms. This article argues that three key conditions are necessary for venture capital to successfully open new economic spaces and then it applies them to assess the viability of venture capital investment in clean technology. The article concludes that large loan guarantees are unlikely to be effective. Other government policies such as SBIR grants, university R&D support, certain (de)regulatory actions, large-scale demonstration projects, and/or procurement decisions can better encourage both incremental and Schumpeterian innovation without distorting the turbulent dynamics of new market creation. This analysis can also be applied to other sector- and market-specific innovation policies.
TL;DR: The ecomagination Challenge as discussed by the authors was an open innovation process that solicited energy ideas from individuals and startups to identify potential ventures in green and renewable energy areas for GE to invest in.
Abstract: This GE ecomagination Challenge case study takes place in 2010 when Beth Comstock, chief marketing officer and senior vice president of General Electric, was planning a meeting with GE's CEO Jeffrey Immelt. The pair plan to discuss the company's ecomagination Challenge, an open innovation process that solicited energy ideas from individuals and startups to identify potential ventures in green and renewable energy areas for GE to invest in. By 2011, the ecomagination Challenge had resulted in $140 million (out of its allocated $200 million) of investments in 23 ventures. However, the scale of these results was dwarfed by GE's $37 billion energy business. So the time has come for Comstock to evaluate the results of the ecomagination Challenge more carefully and decide on whether and how to continue this kind of activity within GE's energy business, or in other GE businesses. How should GE measure ecomagination's results in order to justify its existence and possible future investments? What new processes and structures would be required to make sure that some of the Challenge's investments would pay off for GE down the road? Based on the program's results to date, was the program a good investment for GE and something GE should repeat, or was it a noble experiment that should be discontinued?
TL;DR: In this paper, the authors identify the must haves and discuss barriers to competitors such as going beyond functional benefits, finding shared interests with customers, ongoing innovation, superior execution, scaling the concept, becoming an exemplar, and branding the innovation.
Abstract: The only way to achieve real growth is to develop offerings so innovative that they create new categories or subcategories making competitors irrelevant because they lack a “must have” feature or benefit—to win the brand relevance competition. The alternative, engaging in “my brand is better than your brand” brand preference competition, virtually never works because of market inertia. This article, based in part on hundreds of case studies, shows how to identify the “must haves” and discusses barriers to competitors such as going beyond functional benefits, finding shared interests with customers, ongoing innovation, superior execution, scaling the concept, becoming an exemplar, and branding the innovation.
TL;DR: In this article, the authors present a path that executives and managers can follow to become Lean without compromising innovation in an environment characterized by extreme novelty and complexity, drawing on their experiences with a number of processes, and in particular Lockheed Martin's Lean implementation for the F-22 fighter aircraft.
Abstract: Every executive has heard about the importance of Lean as a means of eliminating waste and “fat.” However, when operations are novel and complex—as in product development, research, information technology, and many other kinds of projects—cutting out the “fat” turns out to be much more challenging. To understand Lean in an environment characterized by extreme novelty and complexity, we drew on our experiences with a number of processes, and in particular Lockheed Martin's Lean implementation for the F-22 fighter aircraft. Our findings lead to a path that executives and managers can follow to become Lean without compromising innovation.
TL;DR: Based on multiple case studies with manufacturers in the machine and plant construction industry, the authors examines the key components of a superior spare parts logistics strategy, and suggests that an efficient spare part logistics strategy can be developed with a three-step model that consists of nine components.
Abstract: Strategically aligned and efficiently implemented spare parts logistics can differentiate a business from its competitors, lower costs, increase revenues, and thus help firms generate greater value for customers and ultimately increase profits. Based on multiple case studies with manufacturers in the machine and plant construction industry, this article examines the key components of a superior spare parts logistics strategy. The study suggests that an efficient spare parts logistics strategy can be developed with a three-step model that consists of nine components.
TL;DR: Taboos are a universal feature of social systems as discussed by the authors and even the most avowedly open-minded organizations place tacit constraints on what can be said and even thought, and business leaders ignore these constraints at their peril.
Abstract: Taboos are a universal feature of social systems. Even the most avowedly open-minded organizations place tacit constraints on what can be said and even thought. Business leaders ignore these constraints at their peril. This article examines the role of the sacred, profane, and taboo in society, and links these phenomena to the psychology of moral outrage. In public debates, taboos are rarely as absolute as first assumed and can often be reframed as tragic choices. Leaders must perform a delicate balancing act if they are to prevent taboos from blinding managers to either threats or opportunities. On the one hand, leaders who let their intellectual curiosity get the better of them risk paying a steep career price. On the other, leaders who bury their heads in the sand risk even worse consequences. Navigating this dilemma brings into sharp tension the policy prescriptions of advocates of authentic leadership (who see honesty as a trump virtue) and proponents of Realpolitik (who see organizational hypocrisy ...
TL;DR: In this article, a study of market-based poverty alleviation initiatives for small-holder farmers by a non-governmental organization in a least developed economy is presented, which suggests that meaningful improvements in income can be explained by the enhancement of market practices that redistribute social control toward poor producers and reduce the constraining effects of market failures.
Abstract: Interest in market-based solutions to reduce poverty has grown substantially in the last decade. However, missing from the core of the management conversation has been an adequate understanding of the poor as producers. Drawing on an in-depth study of market-based poverty alleviation initiatives for smallholder farmers by a non-governmental organization in a least developed economy, this article explains how a non-state organization can reduce poverty for poor producers and improve overall market functioning. It suggests that meaningful improvements in income can be explained by the enhancement of market practices that redistribute social control toward poor producers and reduce the constraining effects of market and governance failures.
TL;DR: In this paper, the authors focus on ethicalization at SAB Ltd (South Africa's leading producer and distributor of alcoholic and non-alcoholic beverages, and one of the nation's largest manufacturing firms) and the impact of its efforts on supplier perceptions.
Abstract: The building of Corporate Ethical Identity, a process referred to as “ethicalization,” is an important strategic imperative and represents an integral part of a firm's attempts to build a strong corporate identity across its various stakeholders. This article focuses on ethicalization at SAB Ltd (South Africa's leading producer and distributor of alcoholic and non-alcoholic beverages, and one of the nation's largest manufacturing firms) and the impact of its efforts on supplier perceptions. Leaders and managers must consider six factors that drive the formation of ethical identity across an organization's stakeholders: trusted relationships; organizational citizenship; development and enforcement of ethical policy; procurement contracting; provision of information; and procurement administration.
TL;DR: In this article, the authors describe how powerful technological, regulatory, and economic forces compel the senior executives of multinational corporations (MNCs) to repeatedly re-evaluate and reconfigure value chains in the search for on-line solutions.
Abstract: Powerful technological, regulatory, and economic forces compel the senior executives of multinational corporations (MNCs) to repeatedly re-evaluate and reconfigure value chains in the search for on...
TL;DR: In this article, the authors extract general principles of brand architecture design based on specific examples and then test these principles by applying them more broadly to a wide sample of brand architectures, based on work with dozens of Business-to-Business firms.
Abstract: This article, based on work with dozens of Business-to-Business firms, extracts general principles of brand architecture design based on specific examples, and then tests these principles by applying them more broadly to a wide sample of brand architectures. B2B brand architecture is a function of two key dimensions: the organizational structure, in particular, the extent to which a firm is centralized or decentralized (in terms of its product range, sales, and marketing); and the extent to which the firm's market offerings are standardized versus customized. This framework and the axiom of risk alleviation through the sales process together capture the principal elements of B2B brand architecture design.
TL;DR: In this paper, the authors examine the first examples of such a partnership and track the evolution of the resulting enterprise partnership from the perspective of both the new vendor and the outsourcing firm, and discuss the need for explicit contractual recognition of key phases of the outsourcing life cycle as a means to reduce inevitable in-process conflict.
Abstract: Outsourcing initiatives are key to firm efforts to focus on core competencies, alter engrained practices and attain
significant cost reductions in non-core processes. Extensive thought goes into the selection of outsourcing service
providers, with the aim of enlisting vendors that have the competence and reputation to lower cost and enhance
service levels. However, in addition to traditional fee-for-service outsourcing, another option is to develop a new
enterprise that is wholly or partially owned by the outsourcing entity to take on the activities that are externalized
—a so-called “enterprise partnership.” This article examines one of the first examples of such a partnership: BAE
Systems’ efforts to outsource its HR services in collaboration with Xchanging. It tracks the evolution of the resulting
enterprise partnership from the perspective of both the new vendor and the outsourcing firm. The article also
discusses the need for explicit contractual recognition of key phases of the outsourcing life cycle as a means to
reduce inevitable in-process conflict. Understanding the divergence of interests that naturally emerge is critical to
realizing the long-term promise that enterprise partnerships offer
TL;DR: In this paper, the authors identify the most important role-specific CIO career success factors based on an examination of the careers of fourteen highly successful CIOs selected by a committee of globally respected peers.
Abstract: As the role of the CIO continues to evolve, the determinants of CIO success remain elusive. Numerous articles and books have been written offering solutions to this problem. Is it placement in the organization's reporting structure, a combination of technical and managerial skills, or something more unique? This article identifies the most important role-specific CIO career success factors based on an examination of the careers of fourteen highly successful CIOs selected by a committee of globally respected peers.
TL;DR: In this article, the authors introduce a matrix framework that incorporates four growth scenarios, which firm-units can map themselves on to, and then outline the major barriers they face in each of these scenarios as well as the actions needed to overcome them.
Abstract: Existing frameworks on growth do not distinguish between the managerial challenges of different growth contexts; they place considerable emphasis on the overall quality of companies' portfolios of strategic units, but less on how different units should be managed according to the growth context they are in. The managerial challenges of generating growth in low-growth contexts are very different from those of managing growth in high-growth contexts. This article introduces a matrix framework that incorporates four growth scenarios, which firm-units can map themselves on to, and then outlines the major barriers they face in each of these scenarios as well as the actions needed to overcome them. The results are based on longitudinal research on cross-national samples of small, medium, and large organizations.
TL;DR: This article explored reactions in the blogosphere to health-related announcements by large food companies and found that taste-related announcement generated not only more reactions, but also more positive buzz than knowledge related announcements.
Abstract: Confronted with public concerns about health and obesity, food companies are taking several initiatives. However, it is unclear to what extent they should communicate these policies. This article explores reactions in the blogosphere to health-related announcements by large food companies. Results show that taste-related announcements generate not only more reactions, but also more positive buzz than knowledge-related announcements. Valence is influenced by issue association per company type: those with highest obesity associations generate more negative blog posts. In case of low issue association, there are only limited blogosphere reactions. This analysis has important implications for managing interaction with social media.
TL;DR: In this paper, the authors demonstrate that environmental innovation has played a significant role in changing the maritime industry's innovation paradigm and that demands for increased environment protection can only be achieved by more innovation.
Abstract: The maritime industry is widely seen as less permeable to innovation than other industries. However, the industry is now recognizing that demands for increased environment protection can only be achieved by more innovation. This study demonstrates that environmental innovation has played a significant role in changing the industry's innovation paradigm. It has also been transformed over time.
TL;DR: Alphabet Energy was founded in 2009 with a new thermoelectric technology that had the potential to advance energy efficiency by recovering heat wasted in combustion and mechanical processes.
Abstract: Alphabet Energy was founded in 2009 with a new thermoelectric technology that had the potential to advance energy efficiency by recovering heat wasted in combustion and mechanical processes. Matt S...
TL;DR: The SpeedSim case study as discussed by the authors describes how an intelligent East Coast engineer built an extremely frugal compa- tional compa cation system using the SpeedSim simulator.
Abstract: The SpeedSim case study focuses on how mergers and acquisitions work in startup and entrepreneurial environments. It describes how an intelligent East Coast engineer built an extremely frugal compa...