Showing papers in "Journal of Management Studies in 1999"

Affective, Normative and Continuance Commitment: Can the ‘Right Kind’ of Commitment be Managed?

Abstract: This study examines the multi-dimensionality of organizational commitment: affective, normative and continuance (including the sub-components of low perceived alternatives and high personal sacrifice), and how these are differentially related to a set of antecedents and consequences (i.e. turnover intentions, absenteeism and acceptance of change). The results, based on a sample of 505 Australian male fire-fighters, indicate that organizational commitment is best represented by the four-factors of affective, normative, low perceived alternatives and high personal sacrifice. In addition, employees experience different personal, job-related and environmental causes of commitment depending on whether they feel they want to, ought to, or need to remain with the organization. Further, not all facets of commitment enhanced organizational effectiveness, with affective being the most beneficial (i.e. employees are less likely to leave, be absent and are more accepting of change) and low perceived alternatives being the most detrimental (i.e. less accepting of change). The implications of these findings for the management of desirable forms of commitment are discussed.

Trust in Business to Business Relationships: An Evaluation of its Status

Abstract: The concept of trust has been used in a growing number of empirical and theoretical marketing studies of business to business relationships. Examination of a number of influential studies indicates a lack of clarity in their conceptualization of trust. The nature of this lack of clarity is examined and it is proposed that there are a number of features of trust which account should be taken of when conducting such studies.

From Dyadic Change to Changing Business Networks: An Analytical Framework

Abstract: This paper investigates the dynamics of business networks. We distinguish between confined dyadic change and network change and show how change itself may be incremental or radical, using the punctuated equilibrium model of change. The concept of the critical event is introduced to highlight radical change. We propose an analytical framework where the ideas of mechanism, nature and forces of change are integrated. Two circles of network change (incremental and radical) are presented and transfers from one circle to the other are discussed. We believe this conceptual elaboration may have significant implications for future network dynamic research

What corporate boards have to do with strategy: a cognitive perspective*

Abstract: Traditional research on corporate governance has viewed the contribution of corporate directors to strategy making as limited by their lack of independence or firm-specific knowledge. To the degree that directors contribute to strategy, most previous research has viewed their role primarily as dealing with the conflict resulting from divergent preferences of agents and principles. The cognitive perspective this paper proposes suggests that directors contribute to dealing with the complexity and uncertainty associated with strategic decisions. It argues that directors possess valuable problem-solving expertise, which they can apply to a variety of contexts. Directors make their cognitive contributions to strategic decision making by performing along with a firm's managers a set of cognitive tasks: scanning, interpretation and choice.

Cognitive biases and strategic decision processes: an integrative perspective*

Abstract: Previous studies have not adequately addressed the role of cognitive biases in strategic decision processes. In this article we suggest that cognitive biases are systematically associated with strategic decision processes. Different decision processes tend to accentuate particular types of cognitive bias. We develop an integrative framework to explore the presence of four basic types of cognitive bias under five different modes of decision making. The cognitive biases include prior hypotheses and focusing on limited targets, exposure to limited alternatives, insensitivity to outcome probabilities and illusion of manageability. The five modes of strategic decision making are rational, avoidance, logical incrementalist, political and garbage can. We suggest a number of key propositions to facilitate empirical testing of the various contingent relationships implicit in the framework. Lastly, we discuss the implications of this framework for research and managerial practice.

The Consultant–Client Relationship: Critical Perspectives on the Management of Organizational Change

Abstract: The management consultancy industry is attracting more and more attention. The critical literature in particular has questioned how a non-codified body of knowledge like ‘consultancy’ could become so apparently influential. The answering emphasis has been on the symbolic nature of consultant strategies and consultancy as a powerful system of persuasion. However, an emerging structural perspective has developed a rather different view, focusing on the limits of the industry discourse, and the constraints of a consultancy role defined largely by external forces. While it is useful to contrast the two perspectives – strategic and structural – they can also be viewed as complementary, and indeed a number of writers have been well aware both of the importance of consultant strategies and the context of consultancy work. In particular, they have explored the interaction between consultant and client, and called attention to factors like the countervailing power of client organizations and the uncertainty of the management task. The paper aims to contribute to this debate and draws on case studies of consultants' role in the management of organizational change – one of clients with considerable market power, and another of interdependency between consultant and client. The point stressed is that the consultancy process contains no ‘necessary’ structures (which may be implied by pairings such as the dependent client and indispensable consultant, or alternatively the resistant client and vulnerable consultant). Instead the consultant–client relationship is best regarded as part of an overarching managerial structure and a contingent exchange that assumes a variety of forms.

Human Resource Strategy and Competitive Advantage: A Longitudinal Study of Engineering Consultancies

Abstract: Concepts associated with the resource-based view of the firm are increasingly finding their way into the strategic HRM debate. Drawing on this literature, this paper reports one of the first industry-based, longitudinal investigations into the relationship between human resource strategy and competitive advantage. Set in New Zealand, but in an internationally oriented sector, the study examines one of the more neglected spheres of professional services: engineering consultancies. The results indicate that the consultancy firms that survived the major business traumas of the late 1980s and early 1990s adopted similar structural, competitive, operational and HR responses associated with their evolving ‘industry recipe’. In interpreting the relationship between HRM and firm performance, then, it is important to distinguish those features of a firm's HRM which are strategic to ongoing viability from those that might form the basis of a relatively enduring form of competitive advantage. While there is insufficient evidence to conclude that any of the primary subjects in this study have established an enviable form of superiority, the study suggests that opportunities do exist for professional service firms to develop industry leadership through superior HRM. The analysis has implications for the wider work of theory-building in strategic HRM.

Managing Organizational Knowledge Integration in the Emerging Multimedia Complex

Abstract: Due to technological convergence, complexes of interrelated industries are emerging. This paper presents a conceptual framework of the role different organizational forms and combinative capabilities play in the management of organizational knowledge integration in this context. The focus is on firms previously operating in one of the relatively stable constituting industries. We argue that a firm's organizational form has to be matched with appropriate combinative capabilities in order to integrate component knowledge into architectural knowledge that consequently serves as a platform for generating new product-market combinations. The framework is empirically illustrated using the example of two Dutch publishing firms moving into the multimedia complex, which is currently emerging around information and communication technologies. The empirical analysis shows that the framework offers strong potential for improving the understanding of the complex process of organizational knowledge integration, as the prerequisite for developing new business in an emerging industrial complex.

Demographic Dissimilarity and Workplace Inclusion

Abstract: This study examined the relationship between individual demographic dissimilarity from co-workers and three indicators of inclusion by an organization: decision-making influence, access to sensitive information, and job security. Data from 345 individuals in eight work units showed that individual dissimilarity in race and gender were negatively associated with inclusion, and the effect of race dissimilarity was more pronounced for whites than for non-whites. In contrast, individual dissimilarity in tenure and education level were positively associated with inclusion, and these effects were more pronounced for those with greater tenure and greater education, respectively. Overall, the results suggest that whether being different hinders or helps organizational inclusion may depend on whether that difference is visible and whether it reflects job expertise. Further, they suggest that, when being different is a hindrance, it may be hardest on those who have traditionally been the majority in organizations.

HRM as hologram: a polemic

Abstract: В статье анализируется дискуссия, ведущаяся в последние годы относительно того места, которое занимает управление человеческими ресурсами среди других управленческих дисциплин. Фокус дискуссии, по мнению автора статьи, сосредоточен на определении сути управления человеческими ресурсами. Проанализировав несколько определений, автор предлагает следующее. Это такой подход к управлению занятостью, который стремится к достижению конкурентных преимуществ предприятия посредством стратегического размещения вовлеченной в дела предприятия и имеющей перспективы роста рабочей силы на основе использования интегрального набора культурных, структурных и персональных технологий.

Developing a market oriented culture: a critical evaluation

Abstract: This paper presents a critical evaluation of the notion that a market oriented culture can be developed and managed. It documents a critique of prescriptive-based literature of market oriented culture and argues that such literature is flawed in that its conceptualization of organizational culture is incomplete. The paper suggests and discusses five principal areas which are either ignored or insufficiently addressed by extant literature on market oriented culture. These are: (1) the view that organizational culture is pluralistic, (2) the understanding that market oriented culture can be viewed as a family of concepts, (3) the notion of cultural dominance, (4) the question of whether culture can be managed, and (5) the problems of cultural entrenchment. The paper develops a series of conclusions and implications centred on the need for further conceptual and empirical development of the content and processes of a market oriented culture.

‘We Are All Managers Now’; ‘We Always Were’: On the Development and Demise of Management

Abstract: The existence of an identifiable group of people who are labelled ‘managers’ has been one of the most significant aspects of the organization of work and society for well over a century. This separation of managers from others has been questioned for some years by critical writers, not least because it ignores the many managerial activities performed by non-managers both in and outside the workplace. This argument suggests that the development of the ‘special’ status of managers is a construction which requires explanation. Accepting this, three broad types of explanation are reviewed in the paper: technical, elite and political approaches. Notwithstanding these explanations, in recent years the logic – although not necessarily the actuality – of organizational change programmes, and especially of the concept of empowerment, has been suggestive of the ‘demise’ of management, most especially middle management. This demise has implied an erosion of the distinction between managers and managed. Now, organizational members are told that ‘we are all managers’, and the three approaches have various ways of explaining this, which are reviewed. Critics may reply that ‘we always were’, thus welcoming a more democratic notion of management, but this paper argues that such a reply reflects an inadequate, and potentially oppressive, understanding of management

The transition from strategic technology alliances to mergers and acquisitions: an exploratory study

Abstract: This paper studies a number of research topics derived from the basic question: do interfirm alliances change into mergers and acquisitions as companies that were previously co-operating become integrated? The analysis is limited to the group of strategic technology alliances, i.e. those interfirm agreements for which joint technology development or technology sharing is part of the agreement. The paper first explores the literature that refers to the possible transition from strategic technology alliances to mergers and acquisitions. Based on this we formulate a number of hypotheses regarding the change in modes of governance and several dimensions of this process related to the international distribution of transformed alliances, their industry specificity, the size of firms, and the distribution of contractual and equity agreements. The major finding of our research is that the transformation from strategic technology alliance to merger and acquisition hardly ever takes place. This suggests that alliances and mergers and acquisitions are not part of a rather smooth continuum but they are first of all different modes of governance where one mode certainly does not lead to the other

To Come of Age: The Antecedents of Organizational Learning

Abstract: The twin ideas of organizational learning and the learning organization have recently fired the imagination of many academics, consultants and practising managers. There is, however, a pressing need for empirical research to examine the origins and development of these closely related concepts. The qualitative research underpinning this paper was conducted over a three-year period (1994–97) and involved detailed examination of organizational learning aspirations and practices within the UK operations of five major manufacturing companies. Sixty-six interviewees were classified into three groups – strategy, human resources, and research and development – and the data gathered were analysed using the conceptually clustered matrix technique. This led to the identification of a set of six antecedents which together explain the rise to prominence of organizational learning. These six antecedents are: the shift in the relative importance of factors of production away from capital towards labour, particularly intellectual labour; the ever more rapid pace of change in the business environment; widespread acceptance of knowledge as a prime source of competitive advantage; the greater demands being placed on all businesses by customers; increasing dissatisfaction, among managers and employees, with the traditional, command-and-control, management paradigm; and the intensely competitive nature of global business. A model is unfolded which explains the ready acceptance and rise to prominence of the organizational learning phenomenon. A valuable feature of the model is that it demonstrates the interplay of thoughts and feelings between management practitioners and theorists.

Cultural Antecedents of Behavioural Differences Between American and Egyptian Managers

Abstract: Numerous researchers have studied behavioural characteristics typically common to American managers. However, few studies have considered how cultural differences impact behavioural management practice in developing Middle-Eastern countries. This study reports the results of a top executive survey comparing and contrasting American and Egyptian management styles, providing strong support for the argument that management behaviour is deeply embedded in culture. Results also suggest that management behaviours seen positively in one culture are not always viewed as such in another.

Time‐based Experience and International Expansion: The Case of an Emerging Economy

Abstract: Building on the organizational learning theory and international expansion process model, this paper examines the effect of time-based experience on multidimensional performance including return on equity, sales growth, competitive position, and asset efficiency of foreign-invested enterprises (FIEs) in an emerging economy (the People's Republic of China). The analysis, based on a recent survey of FIEs in China, demonstrates that time-based experience has a significantly positive effect on overall and individual dimensions of performance of FIEs. The underlying link between time-based experience and multidimensional performance is, however, moderated by the cultural distance between the host and home countries. Moreover, time-based experience moderates the positive impact of resource contributions, market commitment, and strategic innovativeness on venture performance.

Teams and their Context: Moving the Team Discussion Beyond Existing Dichotomies

Abstract: The dichotomies which have been proposed to distinguish between what can belabelled `sociotechnical' and `Japanese' teams oversimplify the `team discussion'.They combine team characteristics and contextual factors which should beseparated, contain biases, and have an in®rm basis. As an alternative we proposean analytical framework to improve our theoretical understanding of how relevantcontextual factors impact the design of jobs and organizations.

Research in the Strategic Theory of the Firm: ‘Isolationism’ and ‘Integrationism’

Abstract: It has been increasingly often argued that strategy research should aim for a ‘strategic theory of the firm’, that is, a theory explains the existence, boundaries, organization and competitive advantage of the firm within a unified theoretical framework. This paper discusses two archetypal strategies in research in the strategic theory of the firm, namely ‘isolationism’ and ‘integrationism’. While the former is representative of the positions that either the knowledge-based view or the modern economics of organization can develop into full-blown strategic theories of the firm, the integrationist strategy stresses that progress is more likely to emerge from a combination of insights and research procedures from both the knowledge-based view and the modern economics of organization. The paper argues in favour of integrationism. In addition, the paper presents some novel criticisms of both the knowledge-based view and the modern economics of organization.

Practical Reason and Performance Appraisal

Abstract: This paper examines responses of chairs of university departments to the news that they would be required to conduct a formal performance appraisal system. It is suggested that in order to understand resistance to appraisal we need to reject explanations invoking polarized antinomies – formal/informal, rational/political – and interrogate the concept of rationality. Drawing on MacIntyre's work, the paper examines the concept of practical reason to make sense of the chairs' responses and considers its relevance for understanding management and change in universities.

Acquisition Strategy and Dominant Logic in an Engineering Firm

Abstract: This paper presents a dynamic model of acquisition strategy and applies it to the case history of a large engineering firm The paper uses the notion of ‘dominant logic’ first put forward by Prahalad and Bettis (1986) to explain how the firm's acquisition strategy and management approach evolved It is suggested that the core activities and history of the firm led to the development of a management approach that emphasized individual autonomy and development, ad hoc structural arrangements, a short-term focus, and flexibility and opportunism These characteristics persisted over time and tended to inhibit both commitment to intended strategies and extension of core competencies At the same time, this logic encouraged opportunistic acquisitions which snowballed into a major new strategic thrust It is concluded: (a) the firm's ‘dominant logic’ rooted in core activities and in the history of a firm can be used to explain its acquisition management behaviour; (b) the more malleable elements of a dominant logic can be somewhat extended under the thrust of key managers, but permanent change will not occur as long as these shifts conflict with more immutable elements; (c) in a process of growth by acquisition, a firm will tend to preserve its unique dominant logic until the inconsistencies it creates are revealed in a crisis or series of crises One mode of adjustment may then be to operate under more than one dominant logic to accommodate the firm's heterogeneity

Leading Horses to Water? The Impact of Decentralization on Managerial Behaviour

Abstract: This paper offers a critical examination of the assumptions about managerial behaviour which underpin the concept of decentralization. Following an attempt to elucidate the key dimensions of the concept, together with some of their variations and ambiguities, it is shown how the claimed advantages of decentralization flow from assumed changes in managerial behaviour, away from compliance with centrally imposed instruction and regulation and towards seizure of business opportunities which, in turn, rest upon assumptions about the influence of organization structure on managerial behaviour, the constraints imposed by centralized organization, the freedoms afforded by decentralization and managers' ability and willingness to take up these freedoms. These behavioural assumptions are re-examined critically and shown to be problematic. The paper concludes that little change in managerial behaviour may be expected from decentralization which entails no more than formal changes in managers' responsibilities without concomitant changes in managerial selection, development and remuneration

In Search of Commitment‐Oriented Human Resource Management Practices and the Conditions that Sustain Them

Abstract: Drawing on data from a survey of human resource management (HRM) in Irish organizations, the paper examines the incidence of coherent bundles of commitment-oriented HRM practices and deploys loglinear modelling to test a series of hypotheses concerning external and internal factors which sustain such practices. The paper identifies the low overall incidence of cohesive commitment-oriented HRM practices in organizations in Ireland. The analysis establishes that the strategic integration of HRM into corporate strategy strongly favours the adoption of such practices, as does the avoidance of union recognition. No link can be established empirically between sectoral turbulence or dynamism and either the adoption or non-adoption of coherent sets of commitment-oriented HRM practices. Nor does the modelling identify any core set of underlying features which, when observed concurrently, greatly increases the likelihood that commitment-oriented HRM practices will be adopted.

Patterns of Control within Japanese Manufacturing Plants in China: Doubts about Japanization in Asia

Abstract: There remains a paucity of research on Japanese investment in Asia, especially on Japanese management practices in China. The paper draws predominantly on interviews with Chinese managers in 31 Japanese wholly owned and joint-venture manufacturing plants. In order to account for any differences in the perception of operations between Japanese and Chinese managers, interviews were conducted with Japanese managers in three case-study plants. The purpose was to examine the structure and pattern of managerial control in different locations and industries, and with different patterns of share ownership, size and age of investments. The paper argues that the patterns of control in Japanese manufacturing investment in China are not unique, and as a consequence call into question much of the current conventional wisdom concerning the internationalization of Japanese management practices. Instead of Japanese seeking to maintain strong control over overseas plants and attain high degrees of ‘Japanization’ (a term used to indicate the dynamics of the transfer process), a complex and varied array of patterns of control are identified. On the one hand, production appears highly Japanized, but personnel management is not. On the other hand, Japanese multinationals make investment decisions that necessitate ceding a high degree of control to local managers. Moreover, it is shown that such ‘localization’ of control is willingly ceded, if not actively sought, by Japanese multinationals

Managing Consultants in a Small Firm: A Case Study

Abstract: An increasingly noted feature of the small business population is the rise of the small, professional-service firm. Explanations of the emergence, employment potential and economic contribution of such firms have been much debated. But comparatively little is known of the dynamics of managing such enterprises. This paper aims to illuminate the nature of the management process in such settings by examining the case of one particular management consultancy, WhitCo. A broad conception of the management process is argued for that recognizes the tensions of working in a ‘high-trust’ environment. The study, which is based on an intensive investigation in the case-study firm over a year-long period, explores three processes. First, the development of the enterprise, particularly in relation to the recruitment of consultants; this establishes the basis of ‘trust’ in the firm. Second, the management of client relationships and their impact on work relations. Third, the dynamics of ‘project management’. The findings highlight how fragile ‘co-operation’ in such a context can be, and identifies tensions that stem from pressures for organizational efficiency and the need to encourage ‘entrepreneurialism’ among key staff

Executive Values and Decision Making: The Relationship of Culture and Information Flows

Abstract: The effect of culture on work values has been studied in a number of ways, largely from a western perspective. Studies have predominantly employed questionnaires as the principal agent of data collection. Yet the Confucian work ethic attributes greater emphasis to collectivist values which bear more centrally on personal relationships. This research used discourse analysis in order to try to identify the implicit features of cultural values as they affected the transmission of financial information, a problem highlighted by the Asian currency crisis in 1997/98. The international hotel industry operates in a multicultural environment where very often foreign operators manage locally owned premises. In these circumstances, budgetary planning and control is an important mechanism. A sample of the interactions between 18 hotel general managers and their financial controllers were studied in Hong Kong. Financial controllers are already subject to a number of role conflicts and it was found that these may be exaggerated by culture. Chinese financial controllers seem to distort the outputs of budgetary planning and control processes in recognition of important organizational relationships. It is suggested that recognizing the direction and effect of these relationships has implications for leadership and performance judgements generally.

Remember Re‐engineering? The Rhetorical Appeal of a Managerial Salvation Device

Abstract: This paper subjects a contemporary managerial doctrine, business process re-engineering (BPR), to rhetorical scrutiny. Finding analytical inspiration from the writings of the American literary critic Kenneth Burke and adopting an anthropological attitude towards 'history', it seeks to demystify the appeal of BPR rhetoric as represented in various published and unpublished texts. The analysis makes extensive use of 'sacred' motifs in order to gain 'perspective through incongruity' and expose the secular motives at work in BPR literature. An analogy is drawn between ethnographic examples of 'amnesia' drawn from the author's study of a computer installation and 'amnesia writ large' through BPR. On the basis of this comparison, it is suggested that BPR can be read as offering cathartic absolution of the collective guilt associated with information technology mismanagement. Any 'doubts' that a managerial public may be harbouring are rhetorically harnessed by BPR protagonists in their attempts to acquire secular converts. The popularity of BPR may now be on the decline but there will be other similarly instrumental agendas to replace it in the future to which students of management need to be alert.

The Goose that Laid the Golden Egg?: A Rhetorical Critique of Stephen Covey and the Effectiveness Movement

Abstract: Through his best-selling book, The Seven Habits of Highly Effective People (1989, Simon & Schuster), and subsequent publications, Stephen Covey has established himself as the pre-eminent management guru in North America. While there are clear similarities between the ‘Effectiveness’ movement he has spawned and competing organizational improvement programmes such as excellence, TQM, and re-engineering, there are also some important differences in how this movement has been rhetorically constructed, the manner in which it has been organized and the ideological roots upon which it is based. The paper draws on Ernest Bormann's fantasy theme analysis to develop a distinctively dramatistic rhetorical critique of this movement. Three primary fantasy themes are identified that, it is argued, underpin the rhetorical appeal of Covey's work to the individuals who follow and the organizations that sponsor him. The paper lends further support to the emerging argument that, in order to properly appreciate the broad appeal of gurus in management and other fields, we need to better understand how their work resonates with the material, existential and spiritual needs of individuals that are peculiar to the late modern age.

The Organizational Setting, Use and Institutionalization of Argumentation Repertoires

Abstract: Although the association between management and argumentation has been a long-standing one, very little research has been undertaken into the organizational setting, institutionalization and use of argumentation. Argumentation is still considered to be undertaken between isolated individuals or within political communities. This paper aims to provide a first attempt at an organizational theory of argumentation. It suggests that organizations institutionalize very specialized repertoires of arguments, which constrain what their members can say, and which are discourse resources which are subject to appropriation and manipulation by organization members to increase their power and influence. One example of the importance of managerial control of argumentation is during organizational change, where specific argumentation subrepertoires are postulated to facilitate the transition between successive stages of change

Learning, Teamwork and Appropriability: Managing Technological Change in the Department of Social Security

Abstract: Drawing on an extensive case study, we argue that management has to actively manage information flows, both within the organization and between the organization and its environment. Three tasks of knowledge management are, in our view, important in building technological capability: appropriation, teamworking and learning. ‘Appropriation’ includes the retention and effective utilization of internal knowledge. ‘Teamworking’ refers to the integration of diverse knowledge bases. ‘Learning’ embraces the acquisition and exploitation of externally held knowledge

Initial Environmental Conditions and Technological Change

Abstract: This paper provides a theoretical link between the initial environmental conditions surrounding a firm's birth and first few years of operations and its process of technological change. The main argument is that initial environmental conditions influence the technological trajectories of business firms. Four mechanisms through which this influence is carried out are technological paradigm, dominant logic, organizational structure, and configuration. These mechanisms act as carriers of initial influences and constrain the future technological developments, restricting thus the possible technological trajectories a firm can follow. This paper discusses the above mechanisms and a number of propositions concerning the kind of influence different initial environmental conditions have on technological change. The paper concludes with implications for further research.