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Showing papers in "Journal of Management Studies in 2006"


Journal ArticleDOI
TL;DR: In this paper, a variety of perspectives on corporate social responsibility (CSR) are described, which are used to develop a framework for consideration of the strategic implications of CSR. Based on this framework, an agenda for additional theoretical and empirical research on CSR is proposed.
Abstract: We describe a variety of perspectives on corporate social responsibility (CSR), which we use to develop a framework for consideration of the strategic implications of CSR. Based on this framework, we propose an agenda for additional theoretical and empirical research on CSR. We then review the papers in this special issue and relate them to the proposed agenda.

2,782 citations


Journal ArticleDOI
TL;DR: In this paper, a definition of dynamic capabilities, separating them from substantive capabilities as well as from their antecedents and consequences, is proposed, and a set of propositions that outline how substantive capabilities and dynamic capabilities are related to one another, how this relationship is moderated by organizational knowledge and skills, and how organizational age affects the speed of utilization of dynamic capability and the learning mode used in organizational change.
Abstract: The emergent literature on dynamic capabilities and their role in value creation is riddled with inconsistencies, overlapping definitions, and outright contradictions. Yet, the theoretical and practical importance of developing and applying dynamic capabilities to sustain a firm's competitive advantage in complex and volatile external environments has catapulted this issue to the forefront of the research agendas of many scholars. In this paper, we offer a definition of dynamic capabilities, separating them from substantive capabilities as well as from their antecedents and consequences. We also present a set of propositions that outline (1) how substantive capabilities and dynamic capabilities are related to one another, (2) how this relationship is moderated by organizational knowledge and skills, (3) how organizational age affects the speed of utilization of dynamic capabilities and the learning mode used in organizational change, and (4) how organizational knowledge and market dynamism affect the likely value of dynamic capabilities. Our discussion and model help to delineate key differences in the dynamic capabilities that new ventures and established companies have, revealing a key source of strategic heterogeneity between these firms.

2,546 citations


Journal ArticleDOI
TL;DR: In this article, the authors study how differences in the institutional environments of Europe and the United States affect expectations about corporate social responsibility to society and how these differences are manifested in government policy, corporate strategy, and nongovernmental organization (NGO) activism towards specific issues involving the social responsibilities of corporations.
Abstract:  Corporate social responsibility (CSR) is an increasingly pervasive phenomenon on the European and North American economic and political landscape. In this paper, we extend neo-institutional and stakeholder theory to show how differences in the institutional environments of Europe and the United States affect expectations about corporate responsibilities to society. We focus on how these differences are manifested in government policy, corporate strategy, and nongovernmental organization (NGO) activism towards specific issues involving the social responsibilities of corporations. Drawing from recent theoretical and empirical research, and analysis of three case studies (global warming, trade in genetically modified organisms, and pricing of anti-viral pharmaceuticals in developing countries), we find that different institutional structures and political legacies in the US and EU are important factors in explaining how governments, NGOs, and the broader polity determine and implement preferences regarding CSR in these two important world regions.

991 citations


Journal ArticleDOI
TL;DR: In this article, the authors estimate a model of corporate reputation, derived from the assessments of managers and market analysts, to be determined by a firm's social performance, financial performance, market risk, the extent of long-term institutional ownership, and the nature of its business activities.
Abstract: Utilizing data on a sample of large firms, we estimate a model of corporate reputation. We find reputation, derived from the assessments of managers and market analysts, to be determined by a firm's social performance, financial performance, market risk, the extent of long-term institutional ownership, and the nature of its business activities. Furthermore, the reputational effect of social performance is found to vary both across sectors, and within sectors across the various types of social performance. Specifically, our results demonstrate the need to achieve a ‘fit’ among the types of corporate social performance undertaken and the firm's stakeholder environment. For example, a strong record of environmental performance may enhance or damage reputation depending on whether the firm's activities ‘fit’ with environmental concerns in the eyes of stakeholders.

884 citations


Journal ArticleDOI
Joanne Roberts1
TL;DR: In this article, the authors critically explore the communities of practice approach to managing knowledge and its use among management academics and practitioners in recent years, and identify the limits of the approach in the field of knowledge management.
Abstract: The purpose of this paper is to critically explore the communities of practice approach to managing knowledge and its use among management academics and practitioners in recent years. In so doing, the aim is to identify the limits of the approach in the field of knowledge management. The paper begins with a brief description of the communities of practice approach. This is followed by a review of critiques of the approach evident in the management literature. A number of further challenges are then elaborated. The limits of communities of practice are subsequently discussed and brief conclusions drawn

771 citations


Journal ArticleDOI
TL;DR: The authors provide an introduction to qualitative methods and an overview of tactics for ensuring rigor in qualitative research useful for the novice researcher, as well as more experienced researchers interested in expanding their methodological repertoire or seeking guidance on how to evaluate qualitative research.
Abstract: Qualitative methods for data collection and analysis are not mystical, but they are powerful, particularly when used to build new or refine existing theories. This article provides an introduction to qualitative methods and an overview of tactics for ensuring rigor in qualitative research useful for the novice researcher, as well as more experienced researchers interested in expanding their methodological repertoire or seeking guidance on how to evaluate qualitative research. We focus our discussion on the qualitative analytical technique of grounded theory building, and suggest that organizational research has much to gain by coupling of use of qualitative and quantitative research methods.

746 citations


Journal ArticleDOI
TL;DR: The notion of communities of practice is a core concept in situated learning theory as mentioned in this paper, but it is sometimes difficult to distinguish conceptually between the terms 'participation' and 'practice' because of occasional duplication of meaning.
Abstract: Situated learning theory offers a radical critique of cognitivist theories of learning, emphasizing the relational aspects of learning within communities of practice in contrast to the individualist assumptions of conventional theories. However, although many researchers have embraced the theoretical strength of situated learning theory, conceptual issues remain undeveloped in the literature. Roberts, for example, argues in this issue that the notion of 'communities of practice' - a core concept in situated learning theory - is itself problematic. To complement her discussion, this paper explores the communities of practice concept from several perspectives. Firstly, we consider the perspective of the individual learner, and examine the processes which constitute 'situated learning'. Secondly, we consider the broader socio-cultural context in which communities of practice are embedded. We argue that the cultural richness of this broader context generates a fluidity and heterogeneity within and beyond communities. Finally, we argue that it is sometimes difficult to distinguish conceptually between the terms 'participation' and 'practice' because of occasional duplication of meaning. We propose, instead, a refinement of the definition to allow for greater conceptual clarity.

746 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate the status of corporate social responsibility research within the management literature and examine the focus and nature of knowledge, the changing saliency of this knowledge and the academic influences on the knowledge.
Abstract: In this paper we investigate the status of corporate social responsibility (CSR) research within the management literature. In particular, we examine the focus and nature of knowledge, the changing salience of this knowledge and the academic influences on the knowledge. We present empirical evidence based on publication and citation analyses of research published from 1992 to 2002. Our results demonstrate that, for CSR research published in management journals, the most popular issues investigated have been environmental and ethics; the empirical research has been overwhelmingly of a quantitative nature; the theoretical research has been primarily non-normative; the field is driven by agendas in the business environment as well as by continuing scientific engagement; and the single most important source of references for CSR articles was the management literature itself.

711 citations


Journal ArticleDOI
TL;DR: This article used transformational leadership theory to explore the role of CEOs in determining the extent to which their firms engage in corporate social responsibility (CSR) using data from 56 US and Canadian firms.
Abstract: We use transformational leadership theory to explore the role of CEOs in determining the extent to which their firms engage in corporate social responsibility (CSR). We test this theory using data from 56 US and Canadian firms. CEO intellectual stimulation (but not CEO charismatic leadership) is found to be significantly associated with the propensity of the firm to engage in ‘strategic’ CSR, or those CSR activities that are most likely to be related to the firm's corporate and business-level strategies. Thus, studies that ignore the role of leadership in CSR may yield imprecise conclusions regarding the antecedents and consequences of these activities. We also critique transformational leadership theory, in terms of its overemphasis on charismatic forms of leadership. This leads to a reconceptualization of transformational leadership, which emphasizes the intellectual stimulation component in the context of CSR.

696 citations


Journal ArticleDOI
Duane Windsor1
TL;DR: The authors assesses three key approaches and offers a perspective gauging little prospect of theoretical synthesis of corporate social responsibility, concluding that any theoretical synthesis must discover some subset of ethical principles yielding corporate competitive advantage.
Abstract: Corporate social responsibility remains an embryonic and contestable concept. This paper assesses three key approaches and offers a perspective gauging little prospect of theoretical synthesis. Ethical responsibility theory advocates strong corporate self-restraint and altruism duties and expansive public policy strengthening stakeholder rights. Economic responsibility theory advocates market wealth creation subject only to minimalist public policy and perhaps customary business ethics. These two viewpoints embed competing moral frameworks and political philosophies. Any theoretical synthesis must discover some subset of ethical principles yielding corporate competitive advantage. Corporate citizenship language invokes a political metaphor providing neither true intermediate positioning nor theoretical synthesis. Two conflicting interpretations abandon responsibility language without adopting the economic viewpoint. An instrumental citizenship interpretation expands philanthropy as a strategic lever for increasing corporate reputation and market opportunities while retaining managerial discretion. An ideal citizenship interpretation restates ethical responsibility into voluntarism language intended to influence managerial discretion concerning universal human rights.

669 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine the situation of firms that have two objectives: profit maximization and social performance, and show that it is wiser for the firm to act strategically than to be coerced into making investments in corporate social responsibility.
Abstract: This paper examines the situation of firms that have two objectives: profit maximization and social performance. By looking comparatively at the cases of altruism, coerced egoism, and strategy, this paper uses the tools of microeconomics to define the optimal level of social output that should be produced in each case. We show that it is wiser for the firm to act strategically than to be coerced into making investments in corporate social responsibility. In addition, we argue that greater overall social output will be achieved by the strategic approach, than by the altruistic approach.

Journal ArticleDOI
TL;DR: In this article, the authors carried out an exploratory analysis of co-authorships in the field of management from two different approaches: the first one attempts to analyse the reasons why authors collaborate and the consequences of such decision, and the second approach is based on the idea that co-authorship creates a social network of researchers.
Abstract: In recent decades there has been growing interest in the nature and scale of scientific collaboration. Studies into co-authorship have taken two different approaches. The first one attempts to analyse the reasons why authors collaborate and the consequences of such decision (Laband and Tollison, 2000). The second approach is based on the idea that co-authorship creates a social network of researchers (Barabasi et al., 2002; Moody, 2004; Newman, 2001). In this study we have carried out an exploratory analysis of co-authorships in the field of management from the two aforementioned approaches. The results obtained show a growing tendency of the co-authored papers in the field of management, similar to what can be observed in other disciplines. Our study analyses some of the underpinning factors, which have been highlighted in the literature, explaining this tendency. Thus, the progressive quantitative character of research and the influence of the collaboration on the articles' impact are enhanced. The network analysis permits the exploration of the peculiarities of the management in comparison with other fields of knowledge, as well as the existing linkages between the most central and prominent authors within this discipline.

Journal ArticleDOI
TL;DR: In this paper, the authors examined one specific aspect of the resource-based view, intellectual capital, and its three knowledge components -human, organizational, and social capital -and hypothesize that the impact of each component on financial performance is contingent upon the values of the other components, and that these leveraging effects are themselves dependent upon the industry conditions in which a business operates.
Abstract: This study examines one specific aspect of the resource-based view, intellectual capital, and its three knowledge components - human, organizational, and social capital. We hypothesize that the impact of each component on financial performance is contingent upon the values of the other components, and that these leveraging effects are themselves contingent upon the industry conditions in which a business operates. Our hypotheses are supported using line-of-business survey and FDIC data (within-industry/within-geographic region) from two non-competing resource niches of the banking industry (personal and commercial banking).

Journal ArticleDOI
TL;DR: In this article, a new conceptual framework is proposed suggesting that knowledge is in effect created by managers, and non-reflectional behaviour is distinguished from reflective behaviour, the former being associated with tacit knowledge, and the latter with explicit knowledge.
Abstract: Nonaka’s proposition that knowledge is created through the interaction of tacit and explicit knowledge involving four modes of knowledge conversion is flawed. Two of the modes appear plausible but none are supported by evidence that cannot be explained more simply. The conceptual framework omits inherently tacit knowledge, and uses a radically subjective definition of knowledge: knowledge is in effect created by managers. A new framework is proposed suggesting that different kinds of knowledge are created by different kinds of behaviour. Following Dewey, non-reflectional behaviour is distinguished from reflective behaviour, the former being associated with tacit knowledge, and the latter with explicit knowledge. Some of the implications for academic and managerial practice are considered.

Journal ArticleDOI
TL;DR: In this paper, the authors define collective identities as the totality of such narratives and draw attention to their complex, and often fragmented and heterogeneous nature, and propose a conceptual model for theorizing and researching collective identities.
Abstract: From a narrative perspective, organizations' identities are discursive (linguistic) constructs constituted by the multiple identity-relevant narratives that their participants author about them, and which feature, for example, in documents, conversations and electronic media. By defining collective identities as the totality of such narratives I draw attention to their complex, and often fragmented and heterogeneous nature. My approach contrasts with much of the theorizing in this field which has tended to homogenize collective identities by emphasizing what is common or shared, failed to capture the interplay between different communities within organizations, and produced bland, undifferentiated empirical research. In particular, the theoretical framework that I outline focuses attention on the importance of reflexivity, voice, plurivocity, temporality, and fictionality to an understanding of collective identities as locales for competing hegemonic claims. In combination, these notions form a unique conceptual model for theorizing and researching collective identities. This said, a narrative approach also has its limitations, and is proposed as an additional, not exclusive, interpretive lens.

Journal ArticleDOI
TL;DR: In this article, a meta-analysis of several TMT indicators and firm financial performance provides modest support for direct relationships but indicates moderating influences, and a confirmatory factor analysis enrich these findings by examining potential moderating and intervening factors.
Abstract: A considerable amount of research has investigated the linkage between top management team (TMT) characteristics and firm financial performance. Much of this research relies on demographic data. While these data are reliable and accessible, findings across studies are not consistent. Meta-analysis of several TMT indicators and firm financial performance provides modest support for direct relationships but indicates moderating influences. Further meta-analysis and a confirmatory factor analysis enrich these findings by examining potential moderating and intervening factors.

Journal ArticleDOI
TL;DR: This article conducted a meta-analysis of 56 studies (58 samples) conducted in 28 countries and found that market orientation is a generic determinant of firm performance, however, stronger effects were found for studies set in large, mature markets and when market orientation was measured using Kohli, Jaworski and Kumar's (1993) MARKOR scale.
Abstract: Quantitative evidence drawn from a meta-analysis of 56 studies (58 samples) conducted in 28 countries reveals that market orientation is a generic determinant of firm performance. However, stronger effects were found for studies set in large, mature markets and when market orientation was measured using Kohli, Jaworski and Kumar’s (1993) MARKOR scale. The meta-analysis also revealed that the value of a market orientation weakens in proportion to the cultural distance separating the home market from the U.S. This study thus extends previous research by (1) providing evidence of measurement moderators that inhibit the generalization of results obtained from studies using different scales and performance variables, (2) establishing benchmark effect sizes for specific regions around the world, and (3) revealing that the managerial value of a market orientation is significantly affected by the cultural and economic characteristics of the host country.

Journal ArticleDOI
TL;DR: It is argued that the effectiveness of intrafirm knowledge transfer based on the reuse of existing knowledge depends on two key factors: the willingness of individuals to contribute their knowledge to the system and the rate at which individuals access and reuse knowledge within the system.
Abstract: Knowledge has become one of the most important sources of competitive advantage for firms in many industries, particularly those in which firms provide knowledge services to their clients. Many knowledge intensive firms have spent enormous amounts of time and money trying to find ways to better manage their knowledge resources. Effective leveraging of knowledge resources through the transfer and reuse of existing knowledge is an important aspect of most knowledge management systems. In this study we argue that the effectiveness of intrafirm knowledge transfer based on the reuse of existing knowledge depends on two key factors: (1) the willingness of individuals to contribute their knowledge to the system; and (2) the rate at which individuals access and reuse knowledge within the system. Here we use social exchange theory to develop a model of the factors that will impact the frequency with which individuals contribute their knowledge to the system. Additionally, we use expectancy theory to develop a model of the factors that lead to knowledge reuse. Results of hypothesis tests using data collected from a multinational services firm support our multi-theoretical model, and suggest ways in which the model might be refined. We discuss the implications of these findings for further theory building and for managers engaged in the development and improvement of knowledge management systems.

Journal ArticleDOI
TL;DR: In this paper, the authors present a set of theoretical propositions regarding knowledge sharing in China and Russia, and argue that there are important national cultural similarities and differences between the two countries that result in certain similarities, and differences in individual knowledge-sharing behavior in Chinese and Russian organizations.
Abstract: This paper presents a set of theoretical propositions regarding knowledge sharing in China and Russia. We argue that there are important national cultural similarities and differences between the two countries that result in certain similarities and differences in individual knowledge-sharing behaviour in Chinese and Russian organizations. We claim that vertical collectivism and particularistic social relations in China and Russia lead to intensive social relations among organizational members, which facilitate knowledge sharing between in-group members in organizations in both countries. We also maintain that differences in the essence of collectivism as well as in the extent of collectivism in the two cultural contexts lead to different intensities of knowledge sharing in Chinese and Russian organizations. Finally, we discuss theoretical and management implications of this research. [ABSTRACT FROM AUTHOR]

Journal ArticleDOI
TL;DR: The authors examined the relationship between the experiences of newly selected CEOs and their choice of foreign direct investment (FDI) entry modes, and found that CEOs with less firm experience preferred acquisitions and greenfield investments to joint ventures and older CEOs were more likely to opt for joint ventures over green-field investments.
Abstract: Drawing on the strategic management and international business literatures, this study examines the relationships between the experiences of newly selected CEOs and their choice of foreign direct investment (FDI) entry modes. Based on a sample of 380 foreign market entry events involving acquisitions, greenfield investments, and joint ventures, our findings indicate that CEOs with less firm experience preferred acquisitions and greenfield investments to joint ventures and, older CEOs were more likely to opt for joint ventures over greenfield investments. In addition, CEOs with throughput functional experience favoured acquisitions over joint ventures and greenfield investments. Finally, CEO international experience was associated with a greater propensity to choose greenfield investments and acquisitions over joint ventures and also greenfield investments over acquisitions. The implications of the findings from the perspective of theory and managerial practice are discussed, along with possible directions for future research.

Journal ArticleDOI
TL;DR: In this article, the authors use Transaction Cost Economics (TCE) and the Resource-Based View (RBV) of the firm to study outsourcing agreements and develop an original approach of contract complexity and analyse the links among exchange hazards (i.e. specificity and environmental uncertainty), the contractual aspects of outsourcing (control, incentives, penalties, price and flexibility clauses) and level of ex post transaction costs.
Abstract: In this article, we use Transaction Cost Economics (TCE) and the Resource-Based View (RBV) of the firm to study outsourcing agreements. We develop an original approach of contract complexity and analyse the links among exchange hazards (i.e. specificity and environmental uncertainty), the contractual aspects of outsourcing (control, incentives, penalties, price and flexibility clauses) and the level of ex post transaction costs. Both contract complexity and ex post transaction costs are operationalized and measured. Our empirical research analyses 82 outsourcing contracts. This article uses three different dimensions (proximity to the core business, switching costs and adaptation costs) to assess the strategic importance of an outsourced activity. Our findings extend TCE's validity for the outsourcing of activities with a strategic value. Finally, this study offers an indirect measurement of ex post transaction costs. In short, to restrict vendor opportunism, contracts must contain incentives and penalties, as well as pricing and monitoring clauses.

Journal ArticleDOI
TL;DR: In this paper, the authors used agency and network perspectives in developing and testing the relationship between board characteristics and involvement in strategic decision making, and found that board involvement is lower where the roles of company chief executive and chair are combined.
Abstract: Boards of directors have a number of roles. The board's monitoring function has been the subject of much work. Less examined is the role that the board has in setting company strategy. This paper uses agency and network perspectives in developing and testing the relationship between board characteristics and involvement in strategic decision making. Using primary and secondary data, our results suggest that the level of board involvement in strategic decision making is related to a number of governance variables. We demonstrate that involvement is generally lower where boards are highly interlocked. We also show that certain types of board interlocks - namely horizontal (same industry) and those involving direct links with the banking sector - are particularly associated with this negative effect. There is weaker evidence that board strategic involvement is lower where the roles of company chief executive and chair are combined. We find no evidence that factors such as board size, or the percentage of outside directors per se are related to board involvement in strategic decision making. In doing so, this paper adds to the growing literature synthesizing the structural features and processes of boards.

Journal ArticleDOI
TL;DR: In this article, a case study of the China-Singapore Suzhou Industrial Park (SIP), an alliance involving the Chinese and Singaporean governments, their agencies, and various private sector organizations is presented.
Abstract: This paper examines alliance knowledge transfer using a case study of the China–Singapore Suzhou Industrial Park (SIP), an alliance involving the Chinese and Singaporean governments, their agencies, and various private sector organizations. The objective is to extend existing knowledge in the alliance learning area and provide deeper understanding of some process-oriented aspects of alliance learning performance. We found that tacit knowledge was particularly difficult to transfer and that issues involving collaborative interactions between the partners both facilitated and impeded knowledge transfer. We also found that competitive learning occurred, which impacted the partner relationship and knowledge transfer.

Journal ArticleDOI
TL;DR: This paper examined when a firm's members are most likely to promote and defend its reputation and found that firms facing increased visibility among different stakeholder groups will increase corporate reputation management activities towards those groups and decrease activities towards other groups.
Abstract: This study examines when a firm's members are most likely to promote and defend its reputation. Building on past research in impression management theory and the upper-echelons perspective, I argue that firms facing increased visibility among different stakeholder groups will increase corporate reputation management activities towards those groups and decrease activities towards other groups. I further argue that top management group characteristics will moderate these relationships, suggesting that certain top management groups are more attuned to the situational needs of reputation management. A set of hypotheses are tested using pooled cross-sectional time-series data on a set of Fortune 500 companies. Results indicate that firms generally directed reputation management activities towards their more visible stakeholders. However, the type and extent of reputation management behaviour varied. Specifically, for firms whose top management groups were more highly educated or output oriented, highly visible situations with the media were more likely to be associated with a higher use of press releases. Moreover, those same firms devoted more resources to mass media advertising under situations of high consumer visibility compared to firms whose top management groups were less educated or throughput oriented.

Journal ArticleDOI
TL;DR: A comparative study of top executives' work aimed at examining the stability of top managerial behaviour reveals a relatively different pattern of behaviour compared with the study by Henry Mintzberg as discussed by the authors.
Abstract: This comparative study of top executives' work aimed at examining the stability of top managerial behaviour reveals a relatively different pattern of behaviour compared with the study by Henry Mintzberg. The main differences are a much larger workload, a contact pattern to a larger degree oriented towards subordinates in group-settings, a greater emphasis on giving information, and less preoccupation with administrative work. One important finding is that fragmentation of time – in previous studies highlighted as a central tenet of managerial work – was not as prevalent in the new study. The different results can be attributed (with caution) to the impact of the management discourse about leadership and corporate culture, and to factors such as organizational structure and geographical dispersion of companies. However, there are also significant similarities between the two studies which indicate that claims of the emergence of a radically different managerial work are much exaggerated. Instead the empirical data shows that new work-practices are combined with older practices, both in a complex and context-specific ways. Therefore, there is a need for better integration between theoretical development and empirical investigations in this field of inquiry.

Journal ArticleDOI
TL;DR: The authors analyzed how three distinct cohorts of workers in a recently merged UK-based College of Further Education understood their group and their organization's identities, but not exclusively on how the groups' shared understandings of "place" informed their identity accounts.
Abstract: This paper analyses how three distinct cohorts of workers in a recently merged UK-based College of Further Education understood their group and their organization's identities. We focus in particular, but not exclusively on how the groups’ shared understandings of ‘place’ informed their identity accounts. Identities are theorized as being constituted within discursive regimes, and place treated as a discursive resource on which individuals and groups may draw in their attempts to author versions of their selves. In our case, understandings of place were also a resource on which some people drew in nostalgic reminiscence, and others used to fantasize about their preferred futures for the college. Framed by our intention to identify plurivocal native interpretations of place and identity in ways that promote the reading of polysemy back into case research, the contribution this paper makes is threefold. First, it adds to efforts to theorize organizations and identities as unstable social constructions constituted through acts of languaging. Second, it illustrates how different groups of local actors with distinct histories and value preferences may draw on their place of work in order to author contrasting versions of their organization's identity. Finally, our paper analyses the attempts made by senior managers and groups of other staff to define their organization in particular ways, as hegemonic ‘moves’ in an ongoing struggle for control over the organization as a discursive space.

Journal ArticleDOI
TL;DR: In this article, the authors examine Portuguese bank branching decisions between 1988 and 1996 and find that banks imitate their legitimacy-based groups, and not only towards ex ante (firm-specific) attractive locations, but also towards unattractive locations; they also find that mimetic branching produces a negative effect on profitability.
Abstract: The study of interorganizational imitation has been an important strand in the recent literature on institutional theory. This paper offers new insights for our understanding of mimetic isomorphism and its reliance on legitimacy: we suggest that legitimacy-based reference groups guide firms in their mimetic behaviour, that firms undertake imitation even against their own ex ante information, and that legitimacy-based imitation contributes negatively to firms' profitability. We examine Portuguese bank branching decisions between 1988 and 1996 and find that banks imitate their legitimacy-based groups, and not only towards ex ante (firm-specific) attractive locations, but also towards unattractive locations; we also find that mimetic branching produces a negative effect on profitability. We conclude that these results show the importance of legitimacy pressures on organization decisions and the tension between the pressure to conform and the pressure to perform.

Journal ArticleDOI
TL;DR: In this paper, the authors developed a conceptual framework that maps both the value-enhancing and cost-raising impact of HPWP on the overall effect on financial performance and found an overall positive effect of HPW practices on firm profitability.
Abstract: The majority of empirical studies on the HRM-performance link report a positive story. The costs associated with the productivity rise due to high performance work practices (HPWP) have been largely neglected. The purpose of this study is to develop a conceptual framework that maps both the value-enhancing and cost-raising impact of HPWP. In addition, we want to pronounce upon their overall effect on financial performance. To test our model, we rely on a sample of small businesses. Understanding both performance and cost-related effects of the implementation of HPWP is particularly valuable for small businesses since they often lack financial resources to implement HPWP and benefit less from economies of scale compared to their larger counterparts. Study results indicate that although greater use of HPWP is associated with increased productivity, this effect is offset by increased labour costs. However, we find an overall positive effect of HPWP on firm profitability.

Journal ArticleDOI
TL;DR: Issues pertaining to variable measurement and concerns regarding the underlying relationships among variables are discussed and several advances in estimation methodology that may circumvent issues encountered in common practice are highlighted.
Abstract: The paper identifies some common problems encountered in quantitative methodology and provides information on current best practice to resolve these problems. We first discuss issues pertaining to variable measurement and concerns regarding the underlying relationships among variables. We then highlight several advances in estimation methodology that may circumvent issues encountered in common practice. Finally, we discuss approaches that move beyond existing research designs, including the development and use of datasets that embody linkages across levels of analysis, or combine qualitative and quantitative methods.

Journal ArticleDOI
TL;DR: Wang et al. as discussed by the authors found that cooperative goals and the Chinese value of guanxi may be important for overcoming obstacles and developing participative leadership within and across cultural boundaries.
Abstract: Developing participative leadership may be particularly challenging when managers are working cross-culturally and in China. One hundred and sixty-three Chinese employees from various industries in mainland China were surveyed about their relationships and the effectiveness of their participation with American and Chinese managers. Results, including structural equation analyses, support the hypotheses that cooperative, but not competitive or independent, goals helped Chinese employees and their foreign and Chinese managers strengthen their quality relationships as measured by supervisor–subordinate guanxi and leader–membership exchange; quality relationships in turn enhanced effective participative leadership as measured by the opportunity for joint decision-making and the open-minded discussion of opposing views (constructive controversy). Results suggest that cooperative goals and the Chinese value of guanxi may be important for overcoming obstacles and developing participative leadership within and across cultural boundaries.