Showing papers in "Journal of Management Studies in 2000"
TL;DR: The authors examined the resource dependence role of corporate directors and posits that the widely used insider/outsider categorizations do not adequately capture this role of directors, and presented a taxonomy of directors specifically for studying the role of resource dependence.
Abstract: Most research on corporate directors has focused on two roles: agency and resource dependence. While these two roles are theoretically and practically distinct, previous research has used the same classification scheme for measuring board composition regardless of role examined. Our paper examines the resource dependence role of directors and posits that the widely used insider/outsider categorizations do not adequately capture this role of directors. A taxonomy of directors is presented specifically for studying the resource dependence role. We then apply the taxonomy to a sample of US airline firms undergoing deregulation, and examine how board composition changes parallel the changing resource dependence needs of the firms. We conclude that the board’s function as a link to the external environment is an important one, and that firms respond to significant changes in their external environment by altering board composition.
1,437 citations
TL;DR: In this article, the authors examined the content and state of the psychological contract from both the employee and employer perspective, and found that the majority of employees have experienced contract breach and that employees are redressing the balance in the relationship through reducing their commitment and their willingness to engage in organizational citizenship behaviour when they perceive their employer as not having fulfilled its part in the exchange process.
Abstract: The renewed interest in the concept of the psychological contract has come to the fore in attempts to describe, understand and predict the consequences of changes occurring in the employment relationship. Recognizing that the employment relationship includes two parties to the exchange process, we set out to examine the content and state of the psychological contract from both the employee and employer perspective. The two perspectives permit an examination of the mutuality of obligations, which has not received much empirical attention to date. The research methodology consists of two surveys conducted in a large local authority directly responsible and accountable for a range of public services including education, environmental health and social care to the local population. The key findings suggest that the majority of employees have experienced contract breach. This view is also supported by managers, as representatives of the employer, who further indicate that the organization, given its external pressures, is not fulfilling its obligations to employees to the extent that it could. Overall, the results indicate that employees are redressing the balance in the relationship through reducing their commitment and their willingness to engage in organizational citizenship behaviour when they perceive their employer as not having fulfilled its part in the exchange process.
930 citations
TL;DR: In this article, the authors attempt to map the development of organizational learning as a field of academic study by examining the rise and fall of specific debates, and locate the papers in this Special Issue within the context of the developing field.
Abstract: In this paper we attempt to map the development of organizational learning as a field of academic study by examining the rise and fall of specific debates. This does not pretend to be a comprehensive review of the field since there is now far too much material available to allow full coverage in any single publication. Rather, we have identified some of the key debates, and these have been organized along the simplistic time-line of past, present and future. Our purpose is two-fold: first, to note how the nature and language of the key ideas in organizational learning have changed over time; and second, to locate the papers in this Special Issue within the context of the developing field. It is perhaps no accident that we see most of the papers as closely associated with new, and emerging, issues, but we also find it interesting to note that many of these current or emergent issues actually have roots within some of the earlier debates.
802 citations
TL;DR: It is shown that effective integration in these cases was achieved through a two-phase process, where task integration led to a satisficing solution that limited the interaction between acquired and acquiring units, while human integration proceeded smoothly and led to cultural convergence and mutual respect.
Abstract: The paper reports a study of the post-acquisition integration process in three foreign acquisitions made by Swedish multinationals. Detailed interview data and questionnaire responses in both acquiring and acquired firms are presented. The sub-processes of task integration and human integration are separated out and it is shown that effective integration in these cases was achieved through a two-phase process. In phase one, task integration led to a satisficing solution that limited the interaction between acquired and acquiring units, while human integration proceeded smoothly and led to cultural convergence and mutual respect. In phase two, there was renewed task integration built on the success of the human integration that had been achieved, which led to much greater interdependencies between acquired and acquiring units.
695 citations
TL;DR: In this article, the authors treat the significance of organization-based social identity for loyalty versus exit reactions with special reference to knowledge-intensive companies and discuss different kinds of and modes of accomplishing loyalty and also address post-exit management.
Abstract: This paper treats the significance of organization-based social identity for loyalty versus exit reactions with special reference to knowledge-intensive companies. The centrality of network relations and close contact with clients in combination with the sometimes drastic consequences of knowledge workers defecting in many knowledge-intensive companies makes social identification and loyalty crucial themes for management. The paper discusses different kinds of and modes of accomplishing loyalty and also addresses post-exit management, how companies may deal with employees that have left the company.
691 citations
TL;DR: In this article, the effects of ideological control in conventional entrepreneurial discourses and praxis are discussed, and it is shown that the concept of entrepreneurship is discriminatory, gender-biased, ethnocentrically determined and ideologically controlled.
Abstract: This article discusses the effects of ideological control in conventional entrepreneurial discourses and praxis. Following postmodernist, deconstructionist and critical theory traditions, the ideas expressed about the phenomenon of entrepreneurship, and its contiguous notions and concepts, are deconstructed to reveal the dysfunctional effects of ideological control both in research and in praxis. It is shown that the concept of entrepreneurship is discriminatory, gender-biased, ethnocentrically determined and ideologically controlled, sustaining not only prevailing societal biases, but serving as a tapestry for un- examined and contradictory assumptions and knowledge about the reality of entrepreneurs.
686 citations
TL;DR: In this article, a framework of knowledge acquisition by joint venture partner firms is proposed, which identifies various factors that influence the acquisition of learning, its value to the learning organization, and the migration of knowledge from the JV to the parent.
Abstract: Joint ventures (JVs) are becoming an increasingly important organizational form in international business. When JVs are formed, valuable learning opportunities may be created for the venture partners. The primary objective in this paper is to explore the conditions under which firms exploit JV learning opportunities through the acquisition of knowledge. A framework of knowledge acquisition by JV partner firms is proposed. Using JV partner organizations as the primary level of analysis, the paper identifies various factors that influence the acquisition of learning, its value to the learning organization, and the migration of knowledge from the JV to the parent. Two firm specific learning-based concepts are developed: alliance knowledge accessibility and knowledge acquisition effectiveness.
670 citations
TL;DR: The authors argue that COP theory and ANT can enrich each other and together make a stronger contribution to our understanding of organizational learning Specifically, these perspectives question the value in viewing organizations as formal, canonical entities as far as learning and change are concerned.
Abstract: The paper discusses some of the main contributions to the theory of communities of practice (COP theory), especially as it relates to organizational learning The paper does not attempt a full overview but concentrates on the notion of power relations Early COP theory was formulated as part of situated learning theory, and promised to work on issues of social context and unequal power relations Foucault’s work and actor-network theory (ANT) is introduced and forms the basis of a constructive critique of COP theory The paper argues that COP theory and ANT can enrich each other and together make a stronger contribution to our understanding of organizational learning Specifically, these perspectives question the value in viewing organizations as formal, canonical entities as far as learning and change are concerned
580 citations
TL;DR: The psychosocial filter model as discussed by the authors was proposed to describe the cluster of micro-processes that influence knowledge processes associated with organizational learning, with individual perceptions of approachability, credibility and trustworthiness mediating knowledge importing and knowledge sharing activities.
Abstract: This paper reports a segment of broader theory-building case study research exploring organizational learning and knowledge processes in a bio-medical consortium. Its focus is the individual-level factors that influence knowledge processes associated with organizational learning. As we explored how rganizational learning occurred, the underlying knowledge processes came forward as complex and idiosyncratic. In an unanticipated finding, micro-processes emerged as highly influential, with individual perceptions of approachability, credibility and trustworthiness mediating knowledge importing and knowledge sharing activities. We introduce a model –the psychosocial filter– to describe the cluster of micro-processes that were brought forward in the study. Firstly, scientists filtered knowledge porting by deciding whom they would approach for information and from whom they would accept input. The individual’s confidence to initiate information requests (which we termed social confidence) and the perceived credibility of knowledge suppliers both mediated knowledge importing. Secondly, scientists mediated knowledge sharing by actively deciding with whom they would share their own knowledge. Perceived trustworthiness – based on perceptions of what olleagues were likely to do with sensitive information – was the factor that influenced knowledge-sharing decisions. Significantly, the psychosocial filter seemed to constitute a heedful process with high functionality. Its effect was not to block knowledge circulation, but instead to ensure that nowledge-sharing decisions were made in a thoughtful and deliberate way. The psychosocial filter suggests an initial framework for conceptualizing the role that individual-level processes play in organizational knowledge sharing. Building on this, the model provides a platform for more focused exploration of knowledge processes and social relationships in organizational learning.
526 citations
TL;DR: In this article, an empirically grounded conceptualization of strategic decisions as elements of a strategic discourse, operating at both the structural level of social reproduction and the instrumental level of intentional communication, is presented.
Abstract: In this paper we argue that the existing conceptualizations of strategic decision making, while each affording valuable insights, offer only partial and disconnected perspectives of the strategy process that leave important questions un-addressed. To overcome this problem we develop an empirically grounded conceptualization of strategic decisions as elements of a strategic discourse, operating at both the structural level of social reproduction and the instrumental level of intentional communication, and constituting the medium through which choices are discussed and recorded, interpretations developed and expressed, and strategic actions initiated, authorized and acknowledged. This conceptualization opens up a number of research questions concerning the role of strategic decision making in the overall strategy process and leads to a fruitful conceptualization of strategy itself as a technological and appropriative social practice.
400 citations
TL;DR: A framework for organizational memory in geographically distributed settings is developed based on the concept of organizational memory systems and empirically assess the usefulness of this framework in the context of a multinational, business consulting organization.
Abstract: This research examines the concept of organizational memory in the context of multi-unit organizations. It addresses the question: how do organizations collect, store and provide access to their experiential knowledge? I develop a framework for organizational memory in geographically distributed settings based on the concept of organizational memory systems and empirically assess the usefulness of this framework in the context of a multinational, business consulting organization. Multiple memory systems were identified, including social networks, knowledge centers and various computer-based systems. I present and discuss findings with respect to the characteristics and perceived effectiveness of these memory systems.
TL;DR: In this article, the authors explore the topic empirically through a study of one form of alliance, supply chain partnering, and present an interaction model of partnering which shows seven contextual factors that shape, and are shaped by, human action.
Abstract: Many managers attempt to develop collaborative alliances with other organizations. Such strategies are difficult to implement: they are as likely to fail as to succeeed. Implementing and managing an alliance is harder than deciding to collaborate. This paper explores the topic empirically through a study of one form of alliance – supply chain partnering. It presents an interaction model of partnering which shows seven contextual factors that shape, and are shaped by, human action. This context can both help and hinder the emergence of co-operative behaviour. The model is illustrated through a case study of two organizations (customer and supplier) attempting to co-operate more closely. The case shows how the cultural and other differences between the parties at first caused difficulty. Actions were taken to change aspects of the context to facilitate more co-operative behaviour. Improving interpersonal relations led to further actions to create more formal mechanisms which would support future co-operation. These appear to have contributed to the relationship exceeding the initial expectations of the partners. The interaction model illuminates both the content and process of supply chain partnering.
TL;DR: In this paper, it is argued that organizational learning is facilitated by a free and open form of politics in the workplace based on a system of political, social and civil rights and obligations within a framework of legitimate authority, parallel to the system that exists in the wider society.
Abstract: In this paper it is argued that organizational learning is facilitated by a free and open form of politics in the workplace based on a system of political, social and civil rights and obligations within a framework of legitimate authority, parallel to the system that exists in the wider society. The argument is developed by examining issues at three related levels: why ‘psychic’ space is needed to nurture selfidentity and learning; the institutional pressures in the wider social environment that bring about learning within a whole business sector through open political activity; and how existing organizational learning theory and practice reveal numerous ways in which space for learning and innovation can be made available within work organizations through political processes. Finally, suggestions are made for ways of creating a framework within organizations that will enable such processes to develop.
TL;DR: Porter's "Competitive Advantage of Nations" was heralded on publication as a book which could build a bridge between the theoretical literatures in strategic management and international economics, and provide the basis for improved national policies on competitiveness as mentioned in this paper.
Abstract: Porter’s (1990) ‘Competitive Advantage of Nations’ was heralded on publication as a book which could build a bridge between the theoretical literatures in strategic management and international economics, and provide the basis for improved national policies on competitiveness. This review of the papers published in the following six years suggests that the book was enormously rich in its range and scope but that there were too many conceptual flaws, particularly of elision, for the theory to amount to more than a useful taxonomy. The research methodology was also flawed and subsequent empirical studies have tended on balance to refute the theory’s major assertions. Sustained prosperity may be achieved without a nation becoming ‘innovation-driven’, strong ‘diamonds’ are not in place in the home bases of many internationally successful industries and inward foreign direct investment does not indicate a lack of competitiveness. The claimed integration between international economics and strategic management rests upon a mistaken attempt to substitute ‘competitive advantage’ for ‘comparative advantage’. Policy-makers are left with a list on which to base simple SWOT-type analyses of their economies’ positions with respect to the competitiveness of different industrial sectors, but no reliable guide with respect to appropriate policies to pursue. Developing countries in particular are given considerable encouragement to pursue policies which may actually be harmful.
TL;DR: In this paper, the authors explore the links between power, expertise and organizational learning, and suggest that organizational learning can be conceptualized as the movement between familiar and emergent activities and between established and emerging social relations, where skills and imaginations are intertwined with social, technical and institutional structures.
Abstract: The topic of power has not featured strongly in debates about organizational learning, a point that is illustrated in a discussion of influential studies of teamworking. Despite the insights that such studies have provided into the nature of expertise and collaboration they have tended not to explore the relevance of issues of hierarchy, politics and institutionalized power relations. The paper addresses the problem by exploring the links between power, expertise and organizational learning. Power is analysed both as the medium for, and the product of, collective activity. The approach emphasizes how skills and imaginations are intertwined with social, technical and institutional structures. While studies of teamworking have concentrated on situations where imaginations and structures are tightly linked, unexpected developments may occur when these relations are loosened. Such situations occur when the needs of the moment overshadow normal routines and relationships and there is no single overview or centre of control. It is suggested that organizational learning can be conceptualized as the movement between familiar and emergent activities and between established and emergent social relations. Events in a two-year action research project are used to illustrate the approach and explore episodes of decentred collaboration.
TL;DR: In this article, the authors explore the relationship between the operation of management control systems and the mobilization of power resources in multinational companies and argue that formal "bureaucratic" controls depend for their effective operation on informal systems and power relations they embody.
Abstract: This paper explores the relationship between the operation of management control systems and the mobilization of power resources in multinational companies. It argues that formal ‘bureaucratic’ controls depend for their effective operation on informal systems and the power relations they embody. In particular, bureaucratic control systems rely inherently on the deployment of ‘social’ control mechanisms relating to the creation of common value systems, understandings, and expectations about the ‘rules of the game’ among corporate actors. The argument is illustrated by material from case studies of HRM in British and German multinationals.
TL;DR: In this article, the authors demonstrate how the enactment of a discursive epistemology, a process which involves the social construction of a dramatized narrative, can be used to generate insights into organizational learning.
Abstract: Dialogue is often seen as the process through which the gap between individual and organizational learning is bridged. Here we demonstrate how the enactment of a discursive epistemology – a process which involves the social construction of a dramatized narrative – can be used to generate insights into organizational learning. Using extracts taken from the transcripts of 90 hours of tape-recorded dialogue, we illustrate how a small group of organizational stakeholders construct, deconstruct and re-construct meaning in relation to a critical organizational event (i.e. a learning opportunity)through a generative dialogical process. As a result of this analysis the dominant conceptualization of the role of dialogue in organizational learning – exemplified in Peter Senge’s work – is challenged. Here Senge’s output-driven, univocal account is rejected in favour of a polyphonic perspective which enables a deeper, richer and less constrained understanding of organizational learning to be developed.
TL;DR: A managerial behaviour approach that has sought to understand managerial work by analysing the day-to-day behaviour of individual managers: what do managers do? as discussed by the authors argued that this approach is distinctive and that its distinctiveness is valuable and has not received adequate attention.
Abstract: A managerial behaviour approach is identified that has sought to understand managerial work by analysing the day-to-day behaviour of individual managers: what do managers do? It is argued that this approach is distinctive and that its distinctiveness is valuable and has not received adequate attention. The distinctiveness is defined by its research background, object, focus and methodology. The managerial behaviour approach has developed from research over nearly fifty years: long enough for there to have been a variety of disputes about what has, or ought to have been, achieved. The relevance of these criticisms and what later research has done to meet them is assessed. Recent research directions are identified and suggestions are made for building on the distinctiveness. It is concluded that the institutional embeddedness of managerial work should attract further scholarly attention, and that the contribution of researchers in the public sector, who come from a differentdisciplinary background, needs to be integrated with that of researchers from organizational behaviour as they can contribute new conceptual approaches, which could help to revivify this field of research.
TL;DR: In this paper, the role of communication during the innovation process of new financial services from an information processing perspective is examined, and a contingency framework is developed to assess the unique nature of the services context of this study, which depicts the moderating impact of specific services characteristics (intangibility, inseparability, heterogeneity and perishability) on project communication.
Abstract: We examine the role of communication during the innovation process of new financial services from an information processing perspective. A contingency framework is developed on the role of communication and its impact on new financial services success. In order to assess the unique nature of the services context of this study, this framework also depicts the moderating impact of the specific services characteristics (intangibility, inseparability, heterogeneity and perishability) on project communication during the innovation process. Project team communication is conceptualized by three types of communication: (1) intra-project communication, (2) extra-project communication involving (i) organizational liaisons, which refer to the transfer of intra-organizational communication by project members and (ii) gatekeepers of information, which refer to the transfer of extra-organizational information by customer-contact personnel. The relationship between project team communication and the reduction of innovative uncertainty on new financial service success is examined. Our contingency model implies that managers have to recognize the critical communication roles that project members and frontline employees may fulfill. The communication flows mediated by these individuals foster the uncertainty reduction during the innovation process. Moreover, financial service innovation management should conceive the service characteristics as sources of task uncertainty, as they may lower project communication effectiveness, i.e. the reduction of innovative uncertainty. Following the managerial implications of our model, we finally formulate directions for future research.
TL;DR: This paper investigated differences in the clarity of corporate attitudes towards ethical "grey areas" and their influences on managers' ethical decision-making and found that the perceived behaviour of managers' colleagues is far more important in predicting attitudes towards decision making of managers across the nationalities surveyed.
Abstract: This paper reports the results of a cross-cultural empirical study that investigated differences in the clarity of corporate attitudes towards ethical ‘grey areas’ and their influences on managers’ ethical decision making. The study encompassed managers in France, Germany, Britain, Spain and the USA working in over 200 companies operating in these countries. Comparisons are made at both individual manager level and at corporate level. At the former level significant differences are found among nationalities of managers themselves. For the latter, differences are found among companies according to the nationality of their home country rather than the host country. Despite identifying national differences in areas of gift giving and receiving, loyalty to company, loyalty to one's group, and reporting others’ violations of corporate policy, the study presents evidence that clarity of corporate policy has little influence on managers’ reported ethical decision making. The perceived behaviour of managers’ colleagues is far more important in predicting attitudes towards decision making of managers across the nationalities surveyed. This has implications for the efficacy of the growing popularity of corporate codes across Europe. Companies should place more emphasis on intervening in peer dynamics rather than trying to legislate for managers’ ethical conduct.
TL;DR: In this paper, the authors examined factors associated with the board's adoption of a formal process for evaluating the performance of the corporation's chief executive officer (CEO) and found that an independent board chairperson, the level of market competition and the degree of managed care penetration were significant predictors of whether or not the board adopted a formal CEO evaluation process.
Abstract: Using both agency and institutional theories, we examined factors associated with the board’s adoption of a formal process for evaluating the performance of the corporation’s chief executive officer (CEO). Our sample was drawn from the hospital industry. Results show that an independent board chairperson, the level of market competition and the degree of managed care penetration were significant predictors of whether or not the board had adopted a formal CEO evaluation process. These findings imply that initiatives to improve governance effectiveness based on agency theory should take into account the institutional environment of corporate boards.
TL;DR: This article explored the use of managerial language and its effects upon organizational practices and employees' experiences in four UK service organizations and found that managers do not have total discretion over the consequences of their language use.
Abstract: The paper documents the working of the language of total quality management (TQM) and some of its effects in four UK service organizations. By making language central to the ‘production’ and ‘consumption’ of TQM practices, the paper explores the use of managerial language and its effects upon organizational practices and employees' experiences. The semantic use of language, reflected merely in the use of labels and platitudes, is concerned with clarity and specificity while the poetic use of language, reflected in the use of metaphors, emphasizes ambiguity by inviting multiple interpretations from below. The paper argues that both uses of language are directed towards achieving some sort of meaning and order; however, managers do not have total discretion over the consequences of their language use. While they may seek to enrol employees in the TQM language (via a process of interest translation), the responses of the employees cannot be predicted or controlled from the top. EmployeesA discursive responses are themselves riddled with ambiguity and range from open resistance to manipulation to internalization. Indeed, it is impossible to know in advance how TQM language works in practice because such workings are the complex and ambiguous outcome of material and non-material relationships that can never be accurately predicted.
TL;DR: In this article, the authors integrate ideas from the literature on socialization and role theory as well as that on executive succession processes to view new leader integration as a mutual adjustment process between two trajectories.
Abstract: For a new leader, the process of entering and establishing a position of leadership in a complex organization presents a major challenge. This challenge seems particularly acute when authority, goals and technology are ambiguous, as in many professional service organizations. In this paper, we integrate ideas from the literature on socialization and role theory as well as that on executive succession processes to view new leader integration as a mutual adjustment process between two trajectories – that of the organization and that of the new leader. It is argued that this may lead to four possible types of integration outcomes: assimilation, transformation, accommodation and parallelism. Drawing on a case study of a large hospital, the paper identifies several mechanisms that can be mobilized by the new leader to enhance his or her room for manœuvre as the integration process evolves. The mechanisms can be classified as collaborative or affirmative, with each type having different risks and advantages. The case analysis further reveals that leader integration processes may be differentiated between different activity domains, dynamic over time (as the use of one type of integration approach alters the potential for another later), and interactive across different activity domains (as events in one part of the organization have consequences for those occurring in another).
TL;DR: In this article, the authors examined the process of diffusion of Western management ideas through a consumption perspective which treated the foreign MBA as a standardized commodity (much like the foreign car) with particular use, symbolic and exchange values.
Abstract: Increasing academic attention is being given to the role of management gurus, consultants, managers and academic researchers in the international diffusion of Western management ideas. This is part of wider debates on knowledge, power and globalization. Relatively little attention has been paid to the mechanisms through which diffusion takes place and, in particular, the role of academics as lecturers and business schools as disseminators of management knowledge at home and abroad. This paper draws on the authors’ personal experiences and perceptions of teaching on an Executive MBA programme in Malaysia and those of their students.
Management education is growing rapidly in many regions of the world and has become highly commodified and commercialized, with Western universities competing in emerging markets for potentially lucrative local opportunities and foreign students or ‘consumers’. Accordingly, the process of diffusion of Western management ideas is examined through a consumption perspective which treats the foreign MBA as a standardized commodity (much like the foreign car) with particular use, symbolic and exchange values. However, the limits of the consumption perspective in terms of both consumer sovereignty and subordination are also established in revealing deeper and more dynamic relations of power. Moreover, it is argued that while there are parallels with domestic consumption of MBAs, the teaching of MBAs in Malaysia generates added ambivalence among learners founded on global–local and development–imperialism dynamics and tensions.
TL;DR: In this article, the authors examine the collapse of Barings Bank in 1995 as a consequence of the activities of Nick Leeson, a 27-year-old trader, and find that the anxiety associated with the deregulation of the UK financial sector drove senior executives to engage in primitive basic assumption thinking which involved the seeking out of a "saviour" who could be depended on to "rescue" the bank.
Abstract: This paper examines the collapse of Barings Bank in 1995 as a consequence of the activities of Nick Leeson, a 27-year-old trader. It seeks an explanation for this event using psychoanalytic concepts and their application to organizational dynamics. It is argued here that the anxiety associated with ‘Big Bang’– the deregulation of the UK financial sector – drove Barings’ senior executives to engage in primitive basic assumption thinking which involved the seeking out of a ‘saviour’ who could be depended on to ‘rescue’ the bank. Further, their concerns about their own conservatism led these senior executives to create as ‘saviour’ an opposite or ‘shadow’ to themselves. They therefore set up the highly risky ‘Baring Securities’ operation, unwittingly creating a damaging cultural split between it and the conservative heart of the bank. Then – in choosing Nick Leeson to embody the ‘shadow’ role within Baring Securities – they selected an extreme risk taker least able to ‘save’ the bank. In the event, Leeson’s fraud ruined the bank. It is further argued that Leeson was burdened with unconscious guilt, thus leaving clues about his activities with the hope that someone would halt him. However, basic assumption thinking within Barings prevented this from happening.
TL;DR: In this paper, the authors investigated the financial performance impact of strategy and structure changes on the performance of 259 firms over a 36-year period using a quasi-experimental design and found that singular structure changes were associated with the highest performance.
Abstract: The relative importance of strategy and structure lies at the heart of the strategic management field, yet little is known about the associated performance implications of such changes. The purpose of this study was to investigate the financial performance impact of strategy and structure changes. We conducted an examination of 259 firms over a 36-year period using a quasi-experimental design. No significant change–performance relationships were found for tandem changes (i.e. when both strategy and structure were changed). But, we found that singular structure changes were associated with the highest performance. This finding was consistent with the theory: though strategy is important, proper deployment of firm uniqueness is paramount to performance enhancement.
TL;DR: In this article, the authors examined the relationship between the adoption of shark repellents and several mechanisms that, according to agency theory, should align the interests of corporate board members and shareholders and/or make directors more effective monitors of management behaviour.
Abstract: Because shark repellents decrease the vulnerability of firms (and their incumbent managers) to the market for corporate control, the decision to adopt these devices represents an excellent test of agency theory. In this empirical study, we examined the relationships between the adoption of shark repellents and several mechanisms that, according to agency theory, should align the interests of corporate board members and shareholders and/or make directors more effective monitors of management behaviour. Of the variables included, only board stock ownership (especially by employee directors) was linked to a reduced propensity to adopt shark repellents in the predicted manner. Two variables not immediately as- sociated with agency theory — the proportion of inside directors appointed by the incumbent chief executive officer (CEO) and a lower ratio of CEO compensation to the compensation of other top executives — were linked to higher rates of shark repellent adoption. Given that agency theory explains relatively little of the variance in shark repellent adoption, we advocate serious consideration of other theoretical formulations for corporate governance, including two approaches — stewardship theory and agent morality — that take the moral (‘other regarding’) obligations of directors seriously.
TL;DR: In this paper, the authors assess the relevance of theories of increased decentralization in post-bureaucratic organizations for understanding changes in the organization of the research and development (RD) and conclude that inter-functional integration remains a critical issue, for centralized and decentralized organizations alike.
Abstract: We assess the relevance of theories of increased decentralization in post-bureaucratic organizations for understanding changes in the organization of the research and development (RD (2) firms that adopt a more decentralized approach to RD (3) inter-functional integration remains a critical issue, for centralized and decentralized organizations alike; (4) introducing market principles into R&D brings risks of market failure.
TL;DR: In this article, the authors employ theory from market process economics (MPE), namely, Austrian and evolutionary economics, which explains how processes of dynamic change, adaptation, and learning are driven by entrepreneurial creativity, and demonstrate that the patterns in this body of theory match, to a remarkable degree, the patterns of practical knowledge contained in the TQM literature.
Abstract: Born out of management practice, the principles of TQM (total quality management) have had a profound and unparalleled impact on modern business history. However, as a body of practical knowledge, TQM has been largely atheoretical. As a consequence, this important management philosophy has remained amorphous and shrouded in considerable conceptual haziness and ambiguity. Recent theorizing, primarily emphasizing the application of organizational behaviour theories to TQM, has begun to provide greater clarity, but much work remains to be done. This paper attempts to contribute to this nascent theory-building literature by employing theory from market process economics (MPE), namely, Austrian and evolutionary economics, which explains how processes of dynamic change, adaptation, and learning are driven by entrepreneurial creativity. We contend that the patterns in this body of theory match, to a remarkable degree, the patterns of practical knowledge contained in the TQM literature. We demonstrate this ‘pattern-matching’ by showing that MPE effectively provides the theoretical underpinnings of TQM’s three main principles — customer focus, continuous improvement and teamwork — as well as the respective TQM topics of customer perceptions, adaptation in dynamic environments, and knowledge creation. Having established MPE as a credible theoretical lens for interpreting TQM, it can be used to clarify fuzzy areas that have remained in the TQM literature with the potential to take us beyond what we know now. We illustrate this with three examples that show how we can resolve debates in TQM over incentive systems, recognize that TQM embraces methodological pluralism in the collection and analysis of data, and highlight hidden dangers that attend benchmarking. While MPE has no monopoly on theoretical interpretations of TQM, it is unique in its ability to comprehensively cover the incredible breadth of this practical body of knowledge, and in its interpretation of TQM as a dynamic economic endeavour.
TL;DR: Based on an inductive, longitudinal case study, a framework of joint venture development is proposed in this paper, which is comprised of three overlapping stages of development: formation, adjustment, and evaluation with shorter, cyclical periods.
Abstract: Based on an inductive, longitudinal case study, this paper proposes a framework of joint venture development. The framework is comprised of three overlapping stages of development: formation, adjustment, and evaluation with shorter, cyclical periods. These periods, labeled phases, can be described in terms of alternations between divergence and convergence of two types of group relationships: intra-joint venture relations and boundary group relations. Propositions lay out the development from the formation to the evaluation stage explaining the cyclical nature of divergence and convergence. The framework advances the existing literature on joint venture development by pointing out both micro- and macro-level driving forces and the conditions under which certain developmental patterns emerge.