Showing papers in "Journal of Management Studies in 1993"

From transaction cost to transactional value analysis: implications for the study of interorganizational strategies*

Abstract: This article examines interorganizational strategies from a transactional value, rather than transaction cost, perspective. It argues that the transaction cost perspective has at least two major limitations when used to analyse interorganizational strategies: ( 1) a single-party, cost minimization emphasis that neglects the interdependence between exchange partners in the pursuit of joint value, and (2) an over-emphasis on the structural features of interorganizational exchange that neglects important process issues. We propose instead a transactional value framework for analysing interorganizational strategies that addresses (1) joint value maximization, and (2) the processes by which exchange partners create and claim value. We discusses the implications of the present approach for the study of interorganizational strategies and for the transaction cost perspective itself.

Organization as rhetoric: Ambiguity in knowledge-intensive companies

Abstract: This article discusses the concepts of knowledge-intensive workers and firms. the functional view is questioned and a perspective on knowledge as institutionalized myth and rationality-surrogate is proposed. the ambiguity of knowledge work is emphasized and it is argued that a crucial dimension of a knowledge-intensive organization concerns the struggle with this ambiguity, which leads to efforts to refine various rhetorical strategies. Besides those stressing knowledge, science and rationality, the article points to rhetoric describing employees in knowledge-intensive firms as possessing other personal qualities and orientations than personnel employed in bureaucracies.

Knowledge and the theory of organizations: organizations as activity systems and the reframing of management*

Abstract: Recent developments in the theory of knowing and doing contrast with conventional rational-cognitive assumptions about management and organization. This, and the emphasis that is currently being placed on the importance of esoteric knowledge for business success, suggests that a review of the relationship between knowledge, organization and management is timely. Activity theory offers a way of synthesizing and developing relevant notions. the approach has its origins in Russian psychology which endeavoured to avoid the dichotomies between thought and action and between individuals and society which have characterized Western theory. Activity theory examines the nature of practical activities, their social origins, and the nature of the ‘activity systems’ within which people collaborate. Modifications to Engestrom's contemporary presentation of the approach are suggested, and a theory of organizations as activity systems is offered. the theory reframes management by modelling the recurrent and embedded nature of human activities, by revealing the tentative nature of knowledge and its action orientation, and by highlighting the opportunities for individual and collective development that engagement and dilemma can provide. the article concludes by reviewing implications for the management of knowledge work, organizational capabilities and organizational learning.

Challenges to theory development in entrepreneurship research

Abstract: Why do some new ventures succeed while others fail? What is the essence of entrepreneurship? Who is most likely to become a successful entrepreneur and why? How do entrepreneurs make decisions? What market, regulatory, and organizational environments foster the most successful entrepreneurial activities? Entrepreneurship research is plagued by these and other fundamental unanswered questions, for which there does not exist a cohesive explanatory, predictive, or normative theory. In this article we identify major challenges for entrepreneurship theory development, and offer insights into promising directions for future research. Our conclusion suggests that it may be too ambitious to expect a complete and robust theory due to the interdisciplinary nature of entrepreneurship. However, we show that by integrating perspectives and by applying analytic, empirical and experimental tools from a range of fields, some of the fundamental questions can be answered.

Procedural rationality in the strategic decision‐making process*

Abstract: Despite the central place of rationality in the organization theory, strategic management, and decision-making literatures, we know relatively little about why some strategic decision-making procedures are more rational than others. This question was addressed in a study of 57 strategic decisions in 24 companies, using a multiple-informant, structured interview protocol. Results indicate that environmental competitive threat, perceived external control of the organization, and the uncertainty of the strategic issues being addressed are related to procedural rationality. Surprisingly, some of these relationships were in the opposite direction from our predictions. These results are interpreted within a framework that emphasizes the link between procedural rationality and managerial discretion.

Management, masculinity and manipulation: from paternalism to corporate strategy in financial services in britain*

Abstract: This article is concerned to demonstrate that paternalism and strategic management as forms, styles or ‘techniques’of managing people and organizations, are both constitutive of and embedded in what we term a ‘discourse of masculinism’. Within the context of the UK financial services industry, we examine how this discourse reflects and reproduces management practices, and reconstitutes individuals in accordance with masculinist priorities. This has the effect of privileging men vis-a-vis women, serves to rank some men above others, and maintains as dominant certain forms and practices of masculinity. We identify two of these as ‘paternalistic masculinity’and ‘competitive masculinity’respectively, regarding them as concrete manifestations of the interplay between historically shifting forms of management and masculinities in operation.

Assessing porter's (1980) model in terms of its generalizability, accuracy and simplicity

Abstract: The Porter (1980) model of generic strategies is evaluated in terms of simplicity, accuracy (i.e., predictive and explanatory power), and generalizability, through an empirical analysis of PIMS data. Results lead to the following conclusions: (1) the simplicity of Porter's model captures much of the complexity inherent in strategic gestalts; (2) Porter's framework could be improved by viewing it as providing three important dimensions of strategic positioning rather than three (or four) distinct strategies; (3) performance norms vary significantly across strategic types, though Porter's predictions of performance are not entirely accurate; (4) strategies such as those described by Porter are possibly more contingent than generic, thus limiting the generalizability of some prescriptions implicit in the model.

Host‐country managerial behaviour and learning in chinese and hungarian joint ventures*

Abstract: Close similarities in the behaviour reported of host country managers in Chinese and Hungarian joint ventures have emerged from recent research. an assessment is offered of four perspectives which purport to account for managerial behaviour in these contexts, namely those referring to the system of industrial governance, the nature of industrialization, national culture and resistance to change. the system of industrial governance provides the most direct and comprehensive explanation, and is also linked with influences from national culture and industrialization. the article concludes by examining the modes of host country learning in process within the joint ventures as foreign partners endeavour to change the behaviour of local managers.

Management by panacea: accounting for transience

Abstract: The cyclical nature of much consultant-led activity designed to improve managerial effectiveness is explored through three consultant-driven approaches to organizational improvement - management by objectives, organization development and total quality management. Such packaged programmes seem to proceed through phases of high enthusiasm and much activity followed by a period of disillusionment, to be replaced by the next stage panacea. an attempt is made to offer some explanation of the transitory nature of much managerial activity which is believed to lie fundamentally in cultural and psychodynamic phenomena. Such an analysis may provide some clues to the search for remedial steps which might be taken to find more enduring ways to bring about increased managerial effectiveness in organizations, although by the very nature of our diagnosis we remain pessimistic.

Interpretations on automatic: a different view of strategic issue diagnosis*

Abstract: Models of strategic decision-making and environmental scanning typically assume that decision-makers diagnose issues actively, using conscious and intentional effort to identify and to interpret potentially significant events, developments and trends. This article establishes that conditions in organizations put decision-makers ‘on automatic’in their diagnosis of strategic issues, with direct implications for the process and content of strategic action. Implications for theory and practice are established.

Performance appraisal and the emergence of management

Abstract: This article addresses the debate concerning the study of management. Arguing that definitions of management have suffered from conceptual obscurity, it advocates that an understanding of management must address relational, constitutive and political dimensions of its operation. the work of Michel Foucault, particularly the concept of power/knowledge and his ascending analysis of power, offers such an approach. the relevance of Foucault for recasting the study of management is illustrated through an analysis of performance appraisal systems introduced into UK universities.

Keeping a butterfly and an elephant in a house of cards: the elements of exceptional success*

Abstract: The paper is a case study of an extremely successful law firm. The paper explains why one must study examples of extreme success in order to learn the factors that make exceptional success possible. In this case, success appears to have resulted from some unusual leaders, who learned from experiences and converted their individual abilities into an organizational system. In a way, the firm became a post-graduate course in how to succeed in solving very difficult problems.

Strategic orientation, strategic planning system characteristics and performance*

Abstract: This article examines the differences in strategic planning system characteristics such as planning implementation, market research competence, key personnel involvement, degree of assistance provided by the planning staff and innovativeness of strategies between the Prospector and Defender strategic archetypes. the study also tests whether deviations from a defined ideal profile of strategic planning system characteristics has implications for performance within each strategic archetype. the findings reveal significant differences in strategic planning system characteristics between Prospectors and Defenders, as well as suggest negative performance implications for deviating from a defined ideal profile of strategic planning system characteristics among Prospector organizations.

The role of competitive groups in strategy formulation: a dynamic integration of two competing models*

Abstract: Alternative conceptualizations of competitive groups have been developed in the strategic management literature, namely, the ‘strategic group’and the ‘cognitive group’. These two views each have their own paradigm base and are often seen as incompatible explanations of intra-industry structure. This article analyses these two views and presents a model for each. It then goes on to develop an integrated model which uses both concepts as tools in framing strategy research. Propositions about the new model are also presented.

Industry and strategic group dynamics: competitive strategy in the insurance industry, 1970–84

Abstract: This article focuses upon dynamic aspects of strategic groups in the context of the US insurance industry from 1970–84. It examines the longitudinal structure of industry strategic groups and identifies the strategic patterns followed by these strategic groups over time. the mobility rates of firms between strategic groups are also assessed. It appears that three dominant groups are present throughout the period of the study while other group positions emerge and disappear over time. the evidence suggests that the quantum theory of strategic adaptation (i.e. dramatic and concerted change) satisfactorily models the processes of strategic group change. And, a low level of firm mobility is found to exist between strategic groups consistent with the presence of inertia and mobility barriers.

Strategic decisions in organizations: rational and behavioural views

Abstract: Various models or lenses have been used to predict and understand strategic decisions in organizations. This article examines four classes: (1) the unitary rational; (2) the organizational; (3) the political; and (4) the contextual. They are conceptualized as stemming from different assumptions about goal congruency and co-ordinative efficiency. the contextual view is especially highlighted, as it is a relatively new perspective, both organizationally and cognitively. A brief discussion is offered of disciplines and findings that either support or refute some of these models. Possible syntheses and reconciliations of the four views are explored, focusing on: (1) assumptional fit; (2) level of analysis; (3) cost of fashioning collective rationality; (4) information processing limits in organizational design; and (5) the role of adaptation lags and disequilibrium. the article concludes with a call for a meta-theory that places the various perspectives in a larger framework.

The effects of employee ownership on employee attitudes: an integrated causal model and path analysis*

Abstract: Research on employee-owned organizations to date has utilized alternative theoretical perspectives and has examined varying attitudinal outcomes. This study reviews previous research and attempts to integrate the findings into a causal model that combines the results of prior studies. the resulting causal model was tested empirically with a sample (N= 181) of employees from a firm that adopted an employee ownership programme. Financial value of the ESOP was positively related to satisfaction with the ESOP plan, but was not related to other attitudinal variables. Perceived influence from ownership was positively related to ESOP satisfaction, job satisfaction, and organizational commitment. ESOP satisfaction, job satisfaction, and organizational commitment were negatively related to turnover intention. ESOP satisfaction and turnover intention were related to actual employee turnover behaviour over an extended time period.

Information processing in strategic alliance building: a multiple‐case approach*

Abstract: Strategic alliance building has proliferated in many industries in recent years This research focuses on the dynamic aspects of the alliance building process that have been neglected in previous research the study examines how organizations process information during strategic alliance building and how the effective management of uncertainty and equivocality is linked to alliance success Analysis of qualitative and quantitative data from a multi-case study leads to a proposed model of information processing in strategic alliance building and research propositions the research propositions suggest that strategic alliance success is facilitated or impeded by a number of factors including the selection of information-processing mechanisms, the management of alliance building momentum, political activity, and information-processing structure These factors collectively form information-processing environments that are linked to the success or failure of the alliance Successful alliance building efforts seem to require adaptive information-processing environments that alter information-processing mechanisms to match information-processing needs

Transaction Costs, Clans and Corporate Culture.

Abstract: For a long time it has been recognized that traditional bureaucratic modes of control are not very efficient in many highly uncertain, rapidly changing or otherwise troublesome situations.Inspired by transaction cost thinking different authors have suggested that clan form control or certain types of corporate cultures should do better in these circumstances. Among these, Ouchi (1980) and Wilkins and Ouchi (1983) stand clearly in the foreground and the transaction cost related clan developed by these authors is discussed at length in the article.Further we examine some empirical case studies indicating that other types of mechanisms than suggested by transaction cost reasoning seem to be involved. As a result we propose an extension of the clan concept to include three different kinds of clans: (1) the Economic-co-operative Clan, (2) the Social-integrative Clan, and (3) the Blood-kinship Clan.Next we discuss how clans or local cultures become established, including the possibilities for management to develop these kinds of patterns intentionally. Finally we set up some tentative hypotheses concerning the significance of‘economic’and ‘social’types of clans in ambiguous situations and the limits of the ideas of the transaction cost approach in explaining complex exchange issues in organizations. (Less)

In search for the unique: can firm-specific advantages be evaluated?

Abstract: Strategy, whatever its different definitions, entails an attempt by a firm to achieve and sustain competitive advantage against other firms. Competitive advantage can be achieved if the firm is able to be different. Success is based on using a unique strategy. Success is defined as the ability to gain abnormal profits, not simply to stay alive in a competitive industry. the ability to protect the uniqueness against imitators ensures continued success. Strategy theory research is diverse, and can be divided into distinct schools of thought. Certain researchers describe the process of strategy formation. Others are prescriptive, concerned with analytical tools for strategy formulation. Among strategy content researchers, much recent research concentrates on industry analysis techniques. Since strategy is defined as the ability to gain an advantage, a cross-sectional study of industry conditions can show the constraints on such a strategy, but is far less useful in defining how to achieve and sustain a competitive advantage. A critical aspect in understanding competitive advantage is that of the identification of firm-specific advantages, particularly in an outlying rather than the average ‘representative’firm. the process by which managers of such firms gain insights on strategic vision often affects the results. This article calls for understanding the unique or - as a minimum -learning to recognize uniqueness (e.g. as someone running a venture fund reviewing proposals for investment). It is concerned with how a strategy can be evaluated ex ante by outsiders to predict its probability of success. The strategy research field is not mature enough to settle on only some conceptual boxes. the article also calls for several accepted modes of investigation, including history and political behaviour, to understand better the process by which firms attempt to achieve unique advantages and the evolution of resource deployment.

Executive reward systems: a cross-national comparison*

Abstract: This article examines executive compensation in the United States, France, and the Netherlands. A brief review of executive compensation literature is conducted to expose its implicit value systems. Next, a qualitative study examines the interpretive schemas that executives express about the pay-performance relationship; US-developed expectancy theory and agency theory serve as a benchmark. the results indicate that US executives understand compensation in different terms from those employed by their European counterparts.

Strategic management and determinism: sustaining the conversation*

Abstract: This article suggests that strategy research should concern itself with continuing the conversation of the field rather than insisting upon a place for universal methodological criteria within that conversation. It attempts to sustain the dialogue begun by Bourgeois, Bowman, Jemison, Huff, and others, who recommend the pragmatic approach of methodological and theoretical pluralism as the best way forward in increasing empirical content. the article draws heavily on the philosophical writings of Dewey, Kaplan, and Rorty and the methodological essays of economists such as Boland, Caldwell, and McCloskey in an effort to persuade others in the strategy field that ‘good science is good conversation’. … once or twice she had peeped into the book her sister was reading, but it had no pictures or conversation in it, ‘and what is the use of a book,’thought Alice, ‘without pictures or conversation?’ Lewis Carroll (1865, p. 5)

Flexible decision styles and the choices of top executives

Abstract: Managers who have access to several modes of understanding have been described as ideal decision-makers. This article reports on research that explored how flexible styles of decision-making, defined by the number and kinds of accessible modes of understanding, influence the choices of top executives. Instruments were used to measure attitude toward ambiguity and uncertainty and to determine the style of the participating top executives. the participants were asked to evaluate eight capital expansion projects in terms of adoptability and risk. Inferences about decision-making were drawn from these evaluations. the tolerance for ambiguity and uncertainty scores and the adoptability and risk ratings were associated with the participant's style. Top executives with a flexible style who have access to each of the modes of understanding were found to be aggressive decision-makers with a high tolerance for ambiguity and uncertainty.

Challenges in researching corporate restructuring

Abstract: This article reviews research on corporate restructuring by examining representative studies of acquisitions, divestitures and management buyouts. Theoretical arguments used in prior research on these aspects of restructuring are presented and the empirical evidence is reviewed. Three challenges in researching corporate restructuring are identified: trading off theoretical abstraction for institutional detail, defining strategically meaningful research questions, and the pursuit of partial models versus development of a comprehensive theory of restructuring. the conclusion is that theoretical and methodological pluralism are essential for advancement of research on this topic. the article concludes with a call for more research involving institutional detail and linking modes of restructuring to performance.

Leader style in strategy and organizational performance: an integrative framework*

Abstract: By means of reviewing existing literature about the role of leaders in determining organizational strategy, an integrative analytical framework is developed. the framework considers the leader to be key to both the formulation and implementation of strategy. It further identifies factors that moderate the leader's impact on strategy. Hypotheses are presented along with implications for future research regarding the role and impact of leadership.

Manufacturing reform and the changing role of the production supervisor -- the case of the automobile industry.

Abstract: This research assesses current changes in the nature of the supervisory role in the automobile industry. It locates these changes in the context of a transition from mass production to lean or just-in-time production. the emergence of a supervisory role, with supervisors performing critical functions as effective managers of integrated work areas is explored by focusing on two lean producers, Nissan UK and Mazda's Flat Rock plant in the US. Noting the increased responsibility of the supervisor under lean production, the extent of the supervisors’enhanced status and authority are considered. However, a case study of an established vehicle producer in the UK, involving interviews with a sample of forty supervisors draws out the structural and organizational difficulties faced by existing manufacturers in their attempts to reformulate the role of the supervisor.

Managing for autonomy in joint ventures: a longitudinal study of upward influence*

Abstract: This article explores the relationships among influence, autonomy and control in a joint venture setting. It addresses the mechanisms available to joint venture (JV) managers to influence and gain compliance from parent firms. Control categories derived primarily from research on unified structures are explored in a new domain, an international joint venture. the beginning of new theory specific to relationships in joint ventures is developed based on causal maps of managerial perceptions. the results suggest that the use of upward influence to gain autonomy in a joint venture is different and more complex than in unified structures or among independent organizations.