Business, Management and Accounting Strategy and Management

Innovation and Knowledge Management

Description

This cluster of papers revolves around the topics of knowledge management, organizational innovation, and strategic capabilities. It encompasses research on dynamic capabilities, knowledge transfer, business models, innovation networks, organizational learning, absorptive capacity, strategic alliances, social capital, resource-based view, and market orientation.

Keywords

Dynamic Capabilities; Knowledge Transfer; Business Models; Innovation Networks; Organizational Learning; Absorptive Capacity; Strategic Alliances; Social Capital; Resource-Based View; Market Orientation

Exploring the factors that explain the choice of governance structures in interfirm alliances, this study challenges the use of a singular emphasis on transaction costs. Such an approach erroneously treats … Exploring the factors that explain the choice of governance structures in interfirm alliances, this study challenges the use of a singular emphasis on transaction costs. Such an approach erroneously treats each transaction as independent and ignores the role of interfirm trust that emerges from repeated alliances between the same partners. Comprehensive multiindustry data on alliances made between 1970 and 1989 support the importance of such trust. Although support emerged for the transaction cost claim that alliances that encompass shared research and development are likely to be equity based, there is also strong evidence that repeated alliances between two partners are less likely than other alliances to be organized using equity.
Recent contributions to strategic management and the theory of the collectively known as the view of the firm provide illuminating insights into the sources of profitability and the nature of … Recent contributions to strategic management and the theory of the collectively known as the view of the firm provide illuminating insights into the sources of profitability and the nature of competitive strategy. This article argues that internal resources rather than the market environment should provide the foundation for a firm's strategy. On the basis of an analysis of the relationships among resources, capabilities, conpetitive advantage, and profitability, this article advances a framework for a resource-based approach to strategy formulation.
Organizational learning has many virtues, virtues which recent writings in strategic management have highlighted. Learning processes, however, are subject to some important limitations. As is well-known, learning has to cope … Organizational learning has many virtues, virtues which recent writings in strategic management have highlighted. Learning processes, however, are subject to some important limitations. As is well-known, learning has to cope with confusing experience and the complicated problem of balancing the competing goals of developing new knowledge (i.e., exploring) and exploiting current competencies in the face of dynamic tendencies to emphasize one or the other. We examine the ways organizations approach these problems through simplification and specialization and how those approaches contribute to three forms of learning myopia, the tendency to overlook distant times, distant places, and failures, and we identify some ways in which organizations sustain exploration in the face of a tendency to overinvest in exploitation. We conclude that the imperfections of learning are not so great as to require abandoning attempts to improve the learning capabilities of organizations, but that those imperfections suggest a certain conservatism in expectations.
Unstable market conditions caused by innovation and increasing intensity and diversity of competition have resulted in organizational capabilities rather than served markets becoming the primary basis upon which firms establish … Unstable market conditions caused by innovation and increasing intensity and diversity of competition have resulted in organizational capabilities rather than served markets becoming the primary basis upon which firms establish their long-term strategies. If the strategically most important resource of the firm is knowledge, and if knowledge resides in specialized form among individual organizational members, then the essence of organizational capability is the integration of individuals' specialized knowledge. This paper develops a knowledge-based theory of organizational capability and draws upon research into competitive dynamics, the resource-based view of the firm, organizational capabilities, and organizational learning. Central to the theory is analysis of the mechanisms through which knowledge is integrated within firms in order to create capability. The theory is used to explore firms' potential for establishing competitive advantage in dynamic market settings, including the role of firm networks under conditions of unstable linkages between knowledge inputs and product outputs. The analysis points to the difficulties in creating the “dynamic” and “flexible-response capabilities” which have been deemed critical to success in hypercompetitive markets.
The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge … The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argument, are identified.
This article outlines the mechanism by which brokerage provides social capital. Opinion and behavior are more homogeneous within than between groups, so people connected across groups are more familiar with … This article outlines the mechanism by which brokerage provides social capital. Opinion and behavior are more homogeneous within than between groups, so people connected across groups are more familiar with alternative ways of thinking and behaving. Brokerage across the structural holes between groups provides a vision of options otherwise unseen, which is the mechanism by which brokerage becomes social capital. I review evidence consistent with the hypothesis, then look at the networks around managers in a large American electronics company. The organization is rife with structural holes, and brokerage has its expected correlates. Compensation, positive performance evaluations, promotions, and good ideas are disproportionately in the hands of people whose networks span structural holes. The between‐group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable. I close with implications for creativity and structural change.
This article introduces the Japanese concept of to organizational theory. Ba (equivalent to place in English) is a shared space for emerging relationships. It can be a physical, virtual, or … This article introduces the Japanese concept of to organizational theory. Ba (equivalent to place in English) is a shared space for emerging relationships. It can be a physical, virtual, or mental space. Knowledge, in contrast to information, cannot be separated from the context—it is embedded in ba. To support the process of knowledge creation, a foundation in ba is required. This article develops and explains four specific platforms and their relationships to knowledge creation. Each of the knowledge conversion modes is promoted by a specific ba. A self-transcending process of knowledge creation can be supported by providing ba on different organizational levels. This article presents case studies of three companies that employ ba on the team, division, and corporate level to enhance knowledge creation.
This paper investigates the mechanisms through which organizations develop dynamic capabilities, defined as routinized activities directed to the development and adaptation of operating routines. It addresses the role of (1) … This paper investigates the mechanisms through which organizations develop dynamic capabilities, defined as routinized activities directed to the development and adaptation of operating routines. It addresses the role of (1) experience accumulation, (2) knowledge articulation, and (3) knowledge codification processes in the evolution of dynamic, as well as operational, routines. The argument is made that dynamic capabilities are shaped by the coevolution of these learning mechanisms. At any point in time, firms adopt a mix of learning behaviors constituted by a semiautomatic accumulation of experience and by deliberate investments in knowledge articulation and codification activities. The relative effectiveness of these capability-building mechanisms is analyzed here as contingent upon selected features of the task to be learned, such as its frequency, homogeneity, and degree of causal ambiguity. Testable hypotheses about these effects are derived. Somewhat counterintuitive implications of the analysis include the relatively superior effectiveness of highly deliberate learning processes such as knowledge codification at lower levels of frequency and homogeneity of the organizational task, in contrast with common managerial practice.
This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core … This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.
As a potential theory, the elemental resource-based view (RBV) is not currently a theoretical structure. Moreover, RBV proponents have assumed stability in product markets and eschewed determining resources' values. As … As a potential theory, the elemental resource-based view (RBV) is not currently a theoretical structure. Moreover, RBV proponents have assumed stability in product markets and eschewed determining resources' values. As a perspective for strategic management, imprecise definitions hinder prescription and static approaches relegate causality to a "black box." We outline conceptual challenges for improving this situation, including rigorously formalizing the RBV, answering the causal "how" questions, incorporating the temporal component, and integrating the RBV with demand heterogeneity models.
A meta-analysis of the relationships between organizational innovation and 13 of its potential determinants resulted in statistically significant associations for specialization, functional differe... A meta-analysis of the relationships between organizational innovation and 13 of its potential determinants resulted in statistically significant associations for specialization, functional differe...
Global competition highlights asymmetries in the skill endowments of firms. Collaboration may provide an opportunity for one partner to internalize the skills of the other, and thus improve its position … Global competition highlights asymmetries in the skill endowments of firms. Collaboration may provide an opportunity for one partner to internalize the skills of the other, and thus improve its position both within and without the alliance. Detailed analysis of nine international alliances yielded a fine-grained understanding of the determinants of interpartner learning. The study suggests that not all partners are equally adept at learning; that asymmetries in learning alter the relative bargaining power of partners; that stability and longevity may be inappropriate metrics of partnership success; that partners may have competitive, as well as collaborative aims, vis-à-vis each other; and that process may be more important than structure in determining learning outcomes.
Abstract Defining ordinary or ‘zero‐level’ capabilities as those that permit a firm to ‘make a living’ in the short term, one can define dynamic capabilities as those that operate to … Abstract Defining ordinary or ‘zero‐level’ capabilities as those that permit a firm to ‘make a living’ in the short term, one can define dynamic capabilities as those that operate to extend, modify or create ordinary capabilities. Logically, one can then proceed to elaborate a hierarchy of higher‐order capabilities. However, it is argued here that the strategic substance of capabilities involves patterning of activity, and that costly investments are typically required to create and sustain such patterning—for example, in product development. Firms can accomplish change without reliance on dynamic capability, by means here termed ‘ad hoc problem solving.’ Whether higher‐order capabilities are created or not depends on the costs and benefits of the investments relative to ad hoc problem solving, and so does the ‘level of the game’ at which strategic competition effectively occurs. Copyright © 2003 John Wiley & Sons, Ltd.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that … Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next challenge is to understand … Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next challenge is to understand how this organizational orientation can be achieved and sustained. The emerging capabilities approach to strategic management, when coupled with total quality management, offers a rich array of ways to design change programs that will enhance a market orientation. The most distinctive features of market-driven organizations are their mastery of the market sensing and customer linking capabilities. A comprehensive change program aimed at enhancing these capabilities includes: (1) the diagnosis of current capabilities, (2) anticipation of future needs for capabilities, (3) bottom-up redesign of underlying processes, (4) top-down direction and commitment, (5) creative use of information technology, and (6) continuous monitoring of progress.
Effective organizations are configurations of management practices that facilitate the development of the knowledge that becomes the basis for competitive advantage. A market orientation, complemented by an entrepreneurial drive, provides … Effective organizations are configurations of management practices that facilitate the development of the knowledge that becomes the basis for competitive advantage. A market orientation, complemented by an entrepreneurial drive, provides the cultural foundation for organizational learning. However, as important as market orientation and entrepreneurship are, they must be complemented by an appropriate climate to produce a "learning organization." The authors describe the processes through which organizations develop and use new knowledge to improve performance. They propose a set of organizational elements that comprise the learning organization and conclude with recommendations for research to contribute to the understanding of learning organizations.
Abstract A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that … Abstract A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that many innovative firms have changed the way they search for new ideas, adopting open search strategies that involve the use of a wide range of external actors and sources to help them achieve and sustain innovation. Using a large‐scale sample of industrial firms, this paper links search strategy to innovative performance, finding that searching widely and deeply is curvilinearly (taking an inverted U‐shape) related to performance. Copyright © 2005 John Wiley & Sons, Ltd.
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as … This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed 'best practice'). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
This paper combines the concept of weak ties from social network research and the notion of complex knowledge to explain the role of weak ties in sharing knowledge across organization … This paper combines the concept of weak ties from social network research and the notion of complex knowledge to explain the role of weak ties in sharing knowledge across organization subunits in a multiunit organization. I use a network study of 120 new-product development projects undertaken by 41 divisions in a large electronics company to examine the task of developing new products in the least amount of time. Findings show that weak interunit ties help a project team search for useful knowledge in other subunits but impede the transfer of complex knowledge, which tends to require a strong tie between the two parties to a transfer. Having weak interunit ties speeds up projects when knowledge is not complex but slows them down when the knowledge to be transferred is highly complex. I discuss the implications of these findings for research on social networks and product innovation.
ThP tiaditinn-Tl catPgori ?:ation nf innovation as t^ithpr "inrrpnipntal " or "radical" is incomplete and fundanient al ly inisl eadi ng ."Generational" innovation - innovation that reconfigures a technical system … ThP tiaditinn-Tl catPgori ?:ation nf innovation as t^ithpr "inrrpnipntal " or "radical" is incomplete and fundanient al ly inisl eadi ng ."Generational" innovation - innovation that reconfigures a technical system without changing its elements -i^; qualitatively different from both incremental and radical innovation and often ha< important and unexpected organisational and competitive consequences.This paper defines generational innovation and illustrates the concept's explanatory force through an empirical study of the technical and competitive history of the semiconductor photolithographic alignment equipment industry.
Abstract A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production … Abstract A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or "preconditions" for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management. Keywords: KNOWLEDGE CAPABILITY KNOWLEDGE CULTURE KNOWLEDGE INEY WORDS AND PHRASES TEGRATION KNOWLEDGE MANAGEMENT KNOWLEDGE MANAGEMENT PROCESSES KNOWLEDGE MANAGEMENT STRUCTURES ORGANIZATIONAL CAPABILITIES ORGANIZATIONAL STRUCTURE SOCIAL CAPITAL STRUCTURAL EQUATION MODELING TECHNOLOGY INFRASTRUCTURE
Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of … Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
This paper differs from previous examinations of organizational learning in that it is broader in scope and more evaluative of the literatures. Four constructs related to organizational learning (knowledge acquisition, … This paper differs from previous examinations of organizational learning in that it is broader in scope and more evaluative of the literatures. Four constructs related to organizational learning (knowledge acquisition, information distribution, information interpretation, and organizational memory) are articulated, and the literatures related to each are described and critiqued. The literature on knowledge acquisition is voluminous and multi-faceted, and so the knowledge acquisition construct is portrayed here as consisting of five subconstructs or subprocesses: (1) drawing on knowledge available at the organization's birth, (2) learning from experience, (3) learning by observing other organizations, (4) grafting on to itself components that possess knowledge needed but not possessed by the organization, and (5) noticing or searching for information about the organization's environment and performance. Examination of the related literatures indicates that much has been learned about learning from experience, but also that there is a lack of cumulative work and a lack of integration of work from different research groups. Similarly, much has been learned about organizational search, but there is a lack of conceptual work, and there is a lack of both cumulative work and syntheses with which to create a more mature literature. Congenital learning, vicarious learning, and grafting are information acquisition subprocesses about which relatively little has been learned. The literature concerning information distribution is rich and mature, but an aspect of information distribution that is central to an organization's benefitting from its learning, namely how units that possess information and units that need this information can find each other quickly and with a high likelihood, is unexplored. Information interpretation, as an organizational process, rather than an individual process, requires empirical work for further advancement. Organizational memory is much in need of systematic investigation, particularly by those whose special concerns are improving organizational learning and decision making.
In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to … In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate … Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management. While the use of signaling theory has gained momentum in recent years, its central tenets have become blurred as it has been applied to organizational concerns. The authors, therefore, provide a concise synthesis of the theory and its key concepts, review its use in the management literature, and put forward directions for future research that will encourage scholars to use signaling theory in new ways and to develop more complex formulations and nuanced variations of the theory.
Researchers have used the absorptive capacity construct to explain various organizational phenomena. In this article we review the literature to identify key dimensions of absorptive capacity and offer a reconceptualization … Researchers have used the absorptive capacity construct to explain various organizational phenomena. In this article we review the literature to identify key dimensions of absorptive capacity and offer a reconceptualization of this construct. Building upon the dynamic capabilities view of the firm, we distinguish between a firm's potential and realized capacity. We then advance a model outlining the conditions when the firm's potential and realized capacities can differentially influence the creation and sustenance of its competitive advantage.
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms … The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is amplified where conditions of increasing returns exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding internally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing internal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
Theorists in various fields have discussed characteristics of top managers. This paper attempts to synthesize these previously fragmented literatures around a more general “upper echelons perspective.” The theory states that … Theorists in various fields have discussed characteristics of top managers. This paper attempts to synthesize these previously fragmented literatures around a more general “upper echelons perspective.” The theory states that organizational outcomes—strategic choices and performance levels—are partially predicted by managerial background characteristics. Propositions and methodological suggestions are included.
Abstract The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth‐share matrices, the concepts of … Abstract The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth‐share matrices, the concepts of resource position barrier and resource‐product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
Journal Article The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin‐off companies Get access Henry Chesbrough, Henry Chesbrough H. Chesbrough and R. … Journal Article The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin‐off companies Get access Henry Chesbrough, Henry Chesbrough H. Chesbrough and R. S. Rosenbloom: Harvard Business School, Morgan Hall T‐35, Boston, MA 02163, USA. Email: [email protected]; [email protected]. Search for other works by this author on: Oxford Academic Google Scholar Richard S. Rosenbloom Richard S. Rosenbloom H. Chesbrough and R. S. Rosenbloom: Harvard Business School, Morgan Hall T‐35, Boston, MA 02163, USA. Email: [email protected]; [email protected]. Search for other works by this author on: Oxford Academic Google Scholar Industrial and Corporate Change, Volume 11, Issue 3, June 2002, Pages 529–555, https://doi.org/10.1093/icc/11.3.529 Published: 01 June 2002
Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition … Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the firm-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical–biotechnology R&D alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. © 1998 John Wiley & Sons, Ltd.
Abstract Given assumptions about the characteristics of knowledge and the knowledge requirements of production, the firm is conceptualized as an institution for integrating knowledge. The primary contribution of the paper … Abstract Given assumptions about the characteristics of knowledge and the knowledge requirements of production, the firm is conceptualized as an institution for integrating knowledge. The primary contribution of the paper is in exploring the coordination mechanisms through which firms integrate the specialist knowledge of their members. In contrast to earlier literature, knowledge is viewed as residing within the individual, and the primary role of the organization is knowledge application rather than knowledge creation. The resulting theory has implications for the basis of organizational capability, the principles of organization design (in particular, the analysis of hierarchy and the distribution of decision‐making authority), and the determinants of the horizontal and vertical boundaries of the firm. More generally, the knowledge‐based approach sheds new light upon current organizational innovations and trends and has far‐reaching implications for management practice.
An expanded paradigm is needed to explain how competitive advantage is gained and held. Firms resorting to 'resource-based strategy' attempt to accumulate valuable technology assets and employ an aggressive intellectual … An expanded paradigm is needed to explain how competitive advantage is gained and held. Firms resorting to 'resource-based strategy' attempt to accumulate valuable technology assets and employ an aggressive intellectual property stance. However, winners in the global marketplace have been firms demonstrating timely responsiveness and rapid and flexible product innovation, along with the management capability to effectively coordinate and redeploy internal and external competences. This source of competitive advantage, 'dynamic capabilities', emphasizes two aspects. First, it refers to the shifting character of the environment; second, it emphasizes the key role of strategic management in appropriately adapting, integrating, and re-configuring internal and external organizational skills, resources, and functional competences toward changing environment. 5 Only recently have researchers begun to focus on the specifics of developing firm-specific capabilities and the manner in which competences are renewed to respond to shifts in the business environment. The dynamic capabilities approach provides a coherent framework to integrate existing conceptual and empirical knowledge, and facilitate prescription. This paper argues that the competitive advan is tage of firms stems from dynamic capabilities rooted in high performance routines operating inside the firm, embedded in the firm's processes, and conditioned by its history. It offers dynamic capabilities as an emerging paradigm of the modern business firm that draws on multiple disciplines and advances, with the help of industry studies in the USA and elsewhere.
Abstract This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an … Abstract This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long‐ run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise‐level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long‐run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright © 2007 John Wiley &amp; Sons, Ltd.
Inside a multiunit organization, units can learn from each other and benefit from new knowledge developed by other units. Knowledge transfer among organizational units provides opportunities for mutual learning and … Inside a multiunit organization, units can learn from each other and benefit from new knowledge developed by other units. Knowledge transfer among organizational units provides opportunities for mutual learning and interunit cooperation that stimulate the creation of new knowledge and, at the same time, contribute to organizational units' ability to innovate (e.g., Kogut & Zander, 1992; Tsai &
Abstract The ability to transfer best practices internally is critical to a firm's ability to build competitive advantage through the appropriation of rents from scarce internal knowledge. Just as a … Abstract The ability to transfer best practices internally is critical to a firm's ability to build competitive advantage through the appropriation of rents from scarce internal knowledge. Just as a firm's distinctive competencies might be difficult for other firms to imitate, its best practices could be difficult to imitate internally. Yet, little systematic attention has been paid to such internal stickiness. The author analyzes internal stickiness of knowledge transfer and tests the resulting model using canonical correlation analysis of a data set consisting of 271 observations of 122 best‐practice transfers in eight companies. Contrary to conventional wisdom that blames primarily motivational factors, the study findings show the major barriers to internal knowledge transfer to be knowledge‐related factors such as the recipient's lack of absorptive capacity, causal ambiguity, and an arduous relationship between the source and the recipient.
Examines how organizations identify and respond to conditions of stability and change and classifies responses as appropriate or dysfunctional. Using case study and historical survey approaches, the authors formulate conclusions … Examines how organizations identify and respond to conditions of stability and change and classifies responses as appropriate or dysfunctional. Using case study and historical survey approaches, the authors formulate conclusions about organizations themselves, individual organization members, and sub-organizational combinations of members. These three perspectives correspond to the organization's goals, individual career aspirations, and internal politicking. Technical progress and development of new organizational forms proceed in tandem; advancement in either field augurs movement in the other field. The inventor requires a suitable milieu and new technology enables further sophisticated forms of organization. Matching the rise of modern industrial concerns, technological research and development has been increasingly professionalized and financially supported by large corporations and government. Firms in (then) newly created industries, such as electronics, face a unique difficulty. Unlike counterparts in established fields, new firms in these industries must respond to rapidly changing market conditions without the benefit of a management experienced in the exigencies of that sector. The authors examine common new-industry responses to planning needs. These include the transfer of technical staff to the sales force and assignment of user needs research to research and development staff. Two important organizational approaches are identified. The mechanistic approach, suitable for stable industries, is marked by precise definition of member function and is highly hierarchical. The organic approach is more appropriate to industries undergoing change and is characterized by fluid definitions of function and interactions that are equally lateral as they are vertical. (CAR)
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed acrossfirms and that these … Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed acrossfirms and that these differences are stable over time, this article examines the link betweenfirm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability-are discussed. The model is applied by analyzing the potential of severalfirm resourcesfor generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
We aim to develop a meaningful single-source reference for management and organization scholars interested in using bibliometric methods for mapping research specialties. Such methods introduce a measure of objectivity into … We aim to develop a meaningful single-source reference for management and organization scholars interested in using bibliometric methods for mapping research specialties. Such methods introduce a measure of objectivity into the evaluation of scientific literature and hold the potential to increase rigor and mitigate researcher bias in reviews of scientific literature by aggregating the opinions of multiple scholars working in the field. We introduce the bibliometric methods of citation analysis, co-citation analysis, bibliographical coupling, co-author analysis, and co-word analysis and present a workflow for conducting bibliometric studies with guidelines for researchers. We envision that bibliometric methods will complement meta-analysis and qualitative structured literature reviews as a method for reviewing and evaluating scientific literature. To demonstrate bibliometric methods, we performed a citation and co-citation analysis to map the intellectual structure of the Organizational Research Methods journal.
Studies on cooperation between science and business often focus on the challenges of knowledge transfer, including assessing the effectiveness of this process. However, such works frequently fail to explicate the … Studies on cooperation between science and business often focus on the challenges of knowledge transfer, including assessing the effectiveness of this process. However, such works frequently fail to explicate the concept of knowledge transfer, even when conceptualizing or operationalizing it is essential. In Russian legislation, “knowledge transfer” is used as a stable term, although its interpretations remain ambiguous and vary depending on a theoretical framework applied. Diverse theoretical frameworks emphasize distinct aspects of knowledge transfer, ultimately forming a comprehensive understanding of the process. At the same time, discrepancies in underlying theoretical assumptions frequently result in inconsistencies across research findings and terminological confusion. Furthermore, the dominance of particular concepts at different stages in academia inevitably shapes not only researchers’ interpretations of results but also policy decisions. Undoubtedly, defining knowledge transfer is inherently complex, owing to the multifaceted and varied interpretations of the foundational concept of knowledge. Nevertheless, terminology must not be overlooked in research or regulatory documents, as ambiguity undermines both theoretical and practical conclusions. Unlike existing overviews of knowledge transfer approaches, this article analyze how differing theoretical assumptions influence the interpretation of the concept “knowledge transfer”. It incorporates firm-level approaches that treat organizations as sets of knowledge. The findings of this study may prove valuable for future research on knowledge transfer and for drafting policies that outline strategies for science–business collaboration, as well as the role of research organizations in the science and technology development of a country.
Purpose This study investigates the influence of environmental, social, and governance (ESG) practices on the performance of project-based organizations (PBOs). It explores how ESG practices contribute to organizational agility and … Purpose This study investigates the influence of environmental, social, and governance (ESG) practices on the performance of project-based organizations (PBOs). It explores how ESG practices contribute to organizational agility and overall performance, using the balanced scorecard (BSCs) framework to assess financial, customer, internal, and learning performance dimensions. Design/methodology/approach The paper employs partial least squares structural equation modeling (PLS-SEM), to test hypotheses grounded in the resource-based view (RBV) and dynamic capabilities view (DCV). We surveyed 212 valid responses from PBO managers, reflecting a response rate of 48.73%. The model examines the direct impacts of ESG practices on PBO performance and the intervening role of organizational agility. Findings The results demonstrate that ESG practices are positively associated with PBO performance across all measured dimensions. Notably, organizational agility mediates the relationship between ESG practices and learning outcomes, emphasizing agility’s critical role in facilitating the effective integration of ESG principles. The study finds also that organizational agility positively moderates the relationship between ESG practices and financial, internal and customer-related PBOs outcomes. Originality/value This research contributes to the literature by showcasing how ESG practices serve as strategic resources that are positively related to competitive advantages and performance in PBOs. It also underscores the importance of organizational agility in leveraging ESG practices. By integrating ESG practices, PBOs are positively associated with significant performance improvements across multiple dimensions.
This paper highlights the importance of integrating complexity theory and complex adaptive systems into the study of international business. Multinational corporations have to cope with complex and rapidly changing environments, … This paper highlights the importance of integrating complexity theory and complex adaptive systems into the study of international business. Multinational corporations have to cope with complex and rapidly changing environments, which requires implementing mechanisms for decentralized evolution of the organization so that they can adapt dynamically while maintaining coherence. Viewing multinational corporations through the lens of complexity theory provides valuable insights for managers and practitioners, equipping them to adapt to modern global business environments more effectively.
Abstract This chapter examines some aspects of learning from failure in the United States Marine Corps (USMC). We interviewed mid-career Marine officers to understand their experiences with learning from failure … Abstract This chapter examines some aspects of learning from failure in the United States Marine Corps (USMC). We interviewed mid-career Marine officers to understand their experiences with learning from failure as leaders of Marine units. Officers emphasize the necessity of allowing subordinates to fail in non-critical situations. Aspects of the institution promote learning from failure; the ethos of “every Marine is a rifleman” underscores a shared purpose and so drives a focus on learning from all tasks. However, a paradox exists: while individual failure learning is promoted, institutionalizing it is difficult. Frequent personnel rotations and a “zero-defect mentality” can hinder the broader acceptance of failure. Initiatives such as wargaming and educational reforms might further institutionalize failure learning, yet challenges remain. The USMC’s experience offers two key lessons for practitioners: fostering environments to encourage individual failure learning and balancing this with organizational goals. Leaders should create environments where failure is viewed as a learning opportunity and work to overcome organizational inertia to build a culture of continuous improvement.
This paper empirically investigates the influence of technological attributes on the sourcing of relevant production technologies by subsidiaries based in the Ibero-American region. We draw on the concept of strategic … This paper empirically investigates the influence of technological attributes on the sourcing of relevant production technologies by subsidiaries based in the Ibero-American region. We draw on the concept of strategic roles, internal embeddedness, capacity, and organizational learning. We gained rich insights into the topic through a focus on case studies of German Multinational Companies and their production subsidiaries based in Peru, Brazil, Colombia and Spain. Semi-structural interviews, observation of the sourced technology and other data collection techniques were applied, and a cross-case analysis was implemented to obtain the results. This paper suggests that across Ibero-American production subsidiaries, production technology with certain complexity related to their strategic roles is internally sourced. Finally, the strategic role of the subsidiary and technology familiarity is low; external sources will be chosen regardless of the complexity of the technology. The findings have important implications for technology managers of Ibero-American based subsidiaries, who are decision makers in the sourcing of production technologies and offer empirical evidence to understand the positioning of some Ibero-American markets in the global innovation map.
Matthias Kipping | Oxford University Press eBooks
Abstract This chapter traces the management consulting industry’s development from modest origins in the late 19th-century United States to the highly visible position it enjoys today, with wide-ranging impacts on … Abstract This chapter traces the management consulting industry’s development from modest origins in the late 19th-century United States to the highly visible position it enjoys today, with wide-ranging impacts on economies, societies, polities, and the lives of individuals around the world, despite increasingly frequent scandals and controversies. Until the 1980s, the industry expanded at a moderate pace throughout the US-dominated ‘free world’. Subsequently, it grew exponentially and now claims a truly global presence. The chapter highlights the shortcomings of the existing academic literature, which (1) has tended to research management consulting as ‘a case of’ rather than a distinctive phenomenon, (2) attributes its recent ‘explosion’ largely to the triumph of neo-liberalism rather than explaining it in terms of contextual and industry-specific factors, and (3) is only beginning to discover its growing role in elite formation. The chapter concludes by discussing how the industry’s rise can be conceptualized.
Purpose This study investigates how organizational failure creates opportunities to foster success. We explore the underexamined interplay between the collective sensemaking of a failure and the selection of coping strategies, … Purpose This study investigates how organizational failure creates opportunities to foster success. We explore the underexamined interplay between the collective sensemaking of a failure and the selection of coping strategies, focusing on how managerial intervention influences capability development. Our aim is to provide insight into the mechanisms through which managerial actions during failure contribute to the transformation of organizational routines and capabilities, ultimately guiding the organization toward recovery and growth. Design/methodology/approach Our research employs empirical analysis of six case studies in the manufacturing industry through interviews, observation, and archival data analyses. Data triangulation through focus group analysis further strengthens the findings' validity. Findings Our study reveals that managerial cognition is crucial in helping organizations learn from failures. It shows that various coping strategies not only mitigate negative consequences but also enable organizations to reinvent themselves by transforming existing capabilities and developing new ones. Reframing routines and strategically selecting new capabilities turn failures into opportunities for growth. Research limitations/implications The case study design limits generalizability, focusing on analytical rather than statistical conclusions. While theoretical sampling aids theory development, it may constrain broader applicability. The findings advance the literature on capability development by highlighting the role of managerial cognition and demonstrating how these processes enable organizations to innovate in response to failures. Practical implications This study provides insights for organizational leaders, highlighting the importance of proactive communication, coordination, and planning in response to failures. By understanding failure causes and developing innovative coping strategies, organizations can enhance resilience and adaptability. Leaders should actively foster new capability development to transform breakdowns into growth opportunities. Originality/value Our research contributes to the dynamic capabilities perspective by showing how breakdowns can catalyze capability development. It offers a nuanced understanding of transforming adversity into opportunity, providing valuable insights for enhancing organizational resilience and adaptability.
In the context of green development and digital transformation, the technological innovation cooperation in megaprojects requires a spanning from policy guidance, technological breakthroughs, and localized pilot projects to driven demand, … In the context of green development and digital transformation, the technological innovation cooperation in megaprojects requires a spanning from policy guidance, technological breakthroughs, and localized pilot projects to driven demand, integrated innovation (i.e., collaborative innovation across sectors, stages, and stakeholders), and comprehensive promotion. Despite the potential benefits, many megaprojects face challenges related to complex relationships, behavioral uncertainties, low performance, and technological innovation risks. A question of practical and theoretical significance is how to facilitate technological innovation cooperation in megaprojects. This study proposes the 3C Theory, which integrates cooperative relationships, behaviors, and performance, and investigates how technological innovation risks moderate these interactions. Using data from 19 megaprojects, we employ a mixed-methods approach involving hypothesis testing through regression analysis. The findings reveal that strong cooperative relationships positively influence cooperative performance through cooperative behaviors and that technological innovation risks play a significant moderating role. This study offers several practical recommendations for megaproject managers, including enhancing cooperative relationships, promoting effective behaviors, managing innovation risks, and developing cooperative innovation platforms. This study introduces the 3C Theory to megaprojects and provides novel insights into how collaboration and risk management can drive sustainable innovation.
Este artigo tem como objetivo analisar os principais conceitos e modelos de ambidestria organizacional, com base em uma revisão de literatura abrangente. A ambidestria, entendida como a capacidade de uma … Este artigo tem como objetivo analisar os principais conceitos e modelos de ambidestria organizacional, com base em uma revisão de literatura abrangente. A ambidestria, entendida como a capacidade de uma organização equilibrar eficiência operacional e inovação, é examinada por meio das abordagens estrutural, contextual, temporal e dinâmica. São discutidas suas bases teóricas, implicações práticas e a possibilidade de articulação dessas abordagens em diferentes níveis organizacionais, como o estratégico, tático e operacional. O estudo evidencia que, diante dos desafios impostos por ambientes de alta complexidade e constante transformação, integrar múltiplas formas de ambidestria pode ampliar significativamente a capacidade adaptativa e a competitividade das organizações, especialmente em setores tradicionais que enfrentam pressões por inovação. Além disso, destaca-se que a ambidestria não é uma escolha pontual, mas uma competência estratégica a ser continuamente desenvolvida. Conclui-se que ela promove não apenas a inovação sustentável, mas também resiliência organizacional frente às mudanças do mercado e da sociedade.
Abstract This counterpoint challenges the view advanced by Yu, Bansal, and Arjaliès (J Int Business Stud 54:1151–1169, 2023), who argue that multinational enterprises (MNEs), by virtue of their cross-border operations, … Abstract This counterpoint challenges the view advanced by Yu, Bansal, and Arjaliès (J Int Business Stud 54:1151–1169, 2023), who argue that multinational enterprises (MNEs), by virtue of their cross-border operations, are inherently detrimental to the environment. While Yu et al.’s call for responsible resource use is commendable, we contend that their framework oversimplifies the complex realities of international business (IB). Drawing on New Internalization Theory (NIT), we examine environmental crises through the lens of multilevel complexity—macro-level institutional interdependencies, firm-level heterogeneity, and individual-level cognitive and behavioral constraints. Our approach underscores the role of bounded rationality and bounded reliability across all relevant actors—not just MNE managers—in shaping environmental outcomes. We find that Yu et al.’s proposed strategies give limited attention to the institutional, industry, organizational, and governance conditions under which environmental value is created. By contrast, we apply comparative institutional analysis to investigate MNEs’ impact on the environment as compared to feasible, real-world alternatives. We argue that meaningful environmental progress hinges not on targeting MNEs, but on fostering multilateral coordination among public, private, and civil society actors, with MNEs being well positioned to lead such collaborations. We call for scholarship that avoids ideological overreach, embraces IB theory, and acknowledges MNEs as key agents in advancing environmental sustainability.
ABSTRACT Research into adapting portfolio practices for large‐scale agile environments has not kept pace with the growing interest in extending agile practices to the enterprise level. Although several agile scaling … ABSTRACT Research into adapting portfolio practices for large‐scale agile environments has not kept pace with the growing interest in extending agile practices to the enterprise level. Although several agile scaling frameworks offer portfolio practice recommendations, their longer‐term effectiveness is unclear, given the lack of rigorous theoretical foundations. Consequently, it is uncertain how these practices sustain agility and optimise value realisation from their Information Systems investments. This study adopts a systems‐theoretic approach to identify causal mechanisms that sustain agility within enterprise IS portfolios. Using a critical realist perspective, we analyse existing IS portfolio practices from three distinct enterprises to evolve an explanatory framework comprising two generative mechanisms and a structural arrangement of portfolio practices that help achieve sustained portfolio agility by sensing, assessing, learning from, and responding to changes in its internal and external environments while ensuring a sustained flow of business value. In addition to being a comprehensive tool for practitioners designing and diagnosing agile IS portfolio capabilities, our results extend existing theoretical approaches to understanding agility at the portfolio level and provide opportunities to refine existing models to address the dynamic complexities of IS portfolio agility.
This study explores the digital transformation (DT) of Chinese Baijiu enterprises, focusing on how institutional logics influence this process. Using Wuliangye as a case study, it examines the stages of … This study explores the digital transformation (DT) of Chinese Baijiu enterprises, focusing on how institutional logics influence this process. Using Wuliangye as a case study, it examines the stages of DT within China's unique policy environment. Findings reveal that DT in the Baijiu industry unfolds through overlapping stages, where market and government logics interact dynamically. This multi-logical framework provides manufacturers opportunities to influence policies and align strategic priorities, fostering effective DT. The study’s insights offer practical guidance for manufacturing enterprises pursuing DT, especially regarding balancing government support and market demands.
Purpose Disruptive business models (DBM) are essential to navigate intense competition and market volatility. Yet, incumbent companies face internal obstacles when trying to develop these models alongside their existing business. … Purpose Disruptive business models (DBM) are essential to navigate intense competition and market volatility. Yet, incumbent companies face internal obstacles when trying to develop these models alongside their existing business. Ambidexterity theory offers solutions, allowing companies to simultaneously explore DBMs while exploiting traditional ones. In this study, we show how tailored approaches to ambidexterity offer substantial potential for addressing incumbents’ obstacles to DBMs, enabling them to remain at the forefront of innovation. Design/methodology/approach This study extends the findings of a recent systematic literature review (Stoiber et al. , 2023) that identified seven approaches to ambidexterity. We enhance these insights by illustrating their practical applicability through case vignettes, featuring seven disruptors operating across industries. Findings The study reveals actionable lessons for incumbents in navigating a set of nuanced ambidextrous structures to address unique obstacles. The roadmap guides practitioners through identifying key obstacles, configuring integration or separation features and applying ambidexterity at structural, temporal or contextual levels. Practical implications This study offers structured guidance to industry practitioners on the selection of appropriate ambidextrous structures by providing a three-step roadmap. Originality/value Our case insights underscore a more nuanced approach to ambidexterity that addresses the often-overlooked practical complexities of implementing DBMs alongside established BMs. Moving beyond structural, temporal and contextual classifications of ambidexterity, we encourage managers to select structures that effectively target inherent obstacles to incumbents’ disruptive potential.
In the context of globalization and digital transformation, small and medium-sized enterprises (SMEs) face increasing resource constraints that limit traditional innovation models. This study investigates how Chinese SMEs’ relational networks … In the context of globalization and digital transformation, small and medium-sized enterprises (SMEs) face increasing resource constraints that limit traditional innovation models. This study investigates how Chinese SMEs’ relational networks influence their open innovation behaviors, examining the mediating role of knowledge transfer and the moderating effect of innovation strategic orientation. Through questionnaire data collected from 329 SMEs’ middle and senior managers, we find that: (1) Firm relational networks significantly enhance knowledge transfer; (2) Innovation strategic orientation positively moderates the relationship between networks and knowledge transfer; and (3) Both networks and knowledge transfer exhibit strong positive impacts on SMEs’ open innovation behaviors, with knowledge transfer acting as a partial mediator. The research reveals the mechanism through which relational networks drive open innovation via knowledge mobilization while highlighting the critical regulatory role of strategic innovation focus. These findings contribute to understanding open innovation dynamics in emerging markets by demonstrating the sequential pathway: network development → knowledge acquisition → innovation outcomes. For practitioners, the study underscores the strategic value of cultivating robust relational networks aligned with innovation objectives, enhancing internal knowledge circulation capabilities, and maintaining adaptive strategic orientations to capitalize on external opportunities. The research provides theoretical and practical guidance for SMEs seeking sustainable competitive advantages through open innovation strategies in knowledge-based economies.
Purpose This study aims to examine the theoretical and epistemological assumptions that underlie strategic decision-making in small-medium enterprises (SMEs) relationships by examining the different organizational frames of reference (OFoR) used … Purpose This study aims to examine the theoretical and epistemological assumptions that underlie strategic decision-making in small-medium enterprises (SMEs) relationships by examining the different organizational frames of reference (OFoR) used in two different cultures – Japan and Qatar. Design/methodology/approach The data were collected from a self-administered questionnaire. The data analysis was conducted on three stages; confirmatory factor analysis, Indices calculation and cluster analysis to examine the cross-national differences in various FoR. Findings Results reveal that SME managers in both Japan and Qatar exhibit aspects of all four OFoR types, but with notable differences in dominant frames by country. This indicates a blend of universal and culturally specific factors shaping strategic decision-making across the two regions. Originality/value By being the rare studies to directly compare OFoR in SMEs across distinct cultural settings, this research contributes a novel perspective on cross-cultural strategic frameworks in SME environments. The findings deepen understanding of how cultural context shapes strategic frames, offering valuable insights for scholars and practitioners aiming to facilitate cross-cultural collaboration and strategic alignment in multinational SME settings.
Acquisitions provide acquirers with opportunities to utilize resources available from target firms and, thereby, to advance their technological inventions. However, acquirers face fundamental challenges in this process due to the … Acquisitions provide acquirers with opportunities to utilize resources available from target firms and, thereby, to advance their technological inventions. However, acquirers face fundamental challenges in this process due to the intrinsic trade-off between accessing new resources and effectively integrating the new resources to facilitate technological inventions. In this study, we investigate multidimensional nature of external resources gained from acquisitions and the interplay between them to better understand post-acquisition performance. Specifically, we maintain that post-acquisition technological inventions are influenced by the interplay between technology relatedness and market relatedness of the acquiring and target firms, and this relationship is further moderated by the acquiring firm’s technology share and its technological environment. Results of empirical analysis using cross-sectional and time-series data of 408 observations by 235 acquiring firms show that technology relatedness and market relatedness are in a substitutional relationship in that post-acquisition inventive performance would increase when either of them is high, not both. The results also show that the extent of the substitutional relationship becomes weaker when the acquiring firm occupies a technologically dominant position in its industry or the industry’s technological environment is dynamic. Our findings provide important insights into the multidimensional nature of external resources gained from acquisitions and contingencies that affect the extent of the interplay between technology and market resources.
Purpose Since the knowledge search process centers on managing distinctive and valuable resources while leveraging a particular technological context, the influences of organizational slack and environmental dynamism on exploration and … Purpose Since the knowledge search process centers on managing distinctive and valuable resources while leveraging a particular technological context, the influences of organizational slack and environmental dynamism on exploration and exploitation have been extensively studied. However, empirical evidence on organizational slack and environmental dynamism has largely developed separately, and little is known about their relative importance and the joint impact on knowledge search. This study aims to compare the different impacts of organizational slack, technological environmental dynamism, and their combined effects on exploratory and exploitative knowledge search, thereby deepening the understanding of related knowledge. Design/methodology/approach Drawing on survey data from 243 high-tech firms, this study applies multiple hierarchical regression analyses to contrast the relative impacts of organizational slack and the frequency and unpredictability of technological changes in the environment on exploratory and exploitative knowledge searches. It also compares the interactive effects of organizational slack and technological environmental dynamism on these knowledge search processes. Findings The empirical analysis demonstrates that technological environmental dynamism exercises more influence on exploratory knowledge search relative to organizational slack. The study also finds that exploratory knowledge search is facilitated more by the interplay of slack resources and technological environmental dynamism than exploitative knowledge search. Originality/value Hence, they provide a clear explanation regarding how to craft a firm’s strategic choice between exploratory and exploitative knowledge search in different configurations of organizational slack and technological environmental dynamism.
Digital transformation (DT) has become a crucial driver of competitiveness in the shipping industry. However, many small- and medium-sized enterprises (SMEs) encounter barriers that result in digital transformation dead zones … Digital transformation (DT) has become a crucial driver of competitiveness in the shipping industry. However, many small- and medium-sized enterprises (SMEs) encounter barriers that result in digital transformation dead zones (DTDZs), where digital initiatives stagnate or fail to achieve the expected outcomes. This study investigates the key factors contributing to digital stagnation specifically within Vietnamese shipping SMEs, adopting the lens of the dynamic capabilities theory (DCT)—a framework that emphasizes firms’ abilities to sense opportunities, seize them, and reconfigure resources to maintain competitiveness in rapidly evolving environments. The DCT provides a dynamic and process-oriented perspective on how organizations adapt to technological change by building flexible and integrative capabilities. Based on quantitative data collected from 588 respondents across the Vietnamese shipping sector, the study employed structural equation modeling (SEM) to empirically assess the relationships among critical digital transformation variables. The findings reveal that inadequate sensing capabilities and a lack of data analytics are the most significant barriers, limiting firms’ ability to identify and act on digital opportunities. Additionally, limited ecosystem collaboration and supply chain fragmentation further exacerbate digital inertia. While poor reconfiguration capabilities and weak seizing capabilities also contribute to digital stagnation, their effects are comparatively weaker. The study offers theoretical contributions by extending the DCT, the resource-based view (RBV), and the ecosystem theory to the maritime sector, emphasizing the interplay between organizational, technological, and external barriers. Practical implications highlight the need for strategic investments in data analytics, ecosystem collaboration, and adaptive leadership to overcome digital stagnation.
Purpose This study analyzes the mediating effects of strategic resilience on the relationship between social control and product innovation performance in startups. Grounded in dynamic capability theory, the research posits … Purpose This study analyzes the mediating effects of strategic resilience on the relationship between social control and product innovation performance in startups. Grounded in dynamic capability theory, the research posits that startups must embed resilience in their strategies to optimize processes and resources amid market changes, with social control influencing innovation performance. Design/methodology/approach Structural equation modeling was applied to the data collected in a survey with 129 managers of Brazilian startups in the traction phase of their life cycle. Findings The results reveal that strategic resilience, through its dimensions of proactive behaviors and improvisational agility, is fostered by social control and contributes to improved product innovation performance. A possible mediating effect is observed in improvisational agility, contrasting with proactive behaviors, in the relationship between social control and product innovation performance. Research limitations/implications The multilevel analysis of strategic resilience has important implications, revealing that proactive behaviors do not show a mediating effect, while improvisational agility does, highlighting the relevance of social and organizational elements in promoting innovation within startups. Originality/value The study advances understanding the role of strategic resilience in the relationship between social control and innovation performance in startups. It addresses a gap in the literature by exploring how the two core dimensions of strategic resilience connect these two research domains. Gaining insight into the importance of startups’ proactive behaviors and improvisational agility in uncertain and dynamic environments can provide valuable guidance for developing strategic resilience in the face of adversity.
ABSTRACT In the current environment of high volumes of data, large established firms are looking for new ways of gaining a competitive advantage through Open Innovation (OI). Sharing unstructured data … ABSTRACT In the current environment of high volumes of data, large established firms are looking for new ways of gaining a competitive advantage through Open Innovation (OI). Sharing unstructured data represents such an opportunity. However, the literature is scarce in understanding how to attract this data and realize more value within the OI funnel. We thus investigated a business model illustrating how large research‐intensive firms can use it to support data sharing for OI. We interviewed 25 professionals in an OI project between a global pharma organization focused on the animal health market, a UK‐based university, and data science firms. Firstly, we provide evidence of the role of data sharing in OI for extracting value. Secondly, we theorize a business model that supports data sharing for inbound and outbound OI using three stages of value realization. We welcome further research to confirm or extend our findings in other industrial settings.
ABSTRACT The adoption of Artificial Intelligence is transforming enterprises worldwide, influencing various aspects of business operations and affecting all dimensions of the triple bottom line. Companies ready to leverage the … ABSTRACT The adoption of Artificial Intelligence is transforming enterprises worldwide, influencing various aspects of business operations and affecting all dimensions of the triple bottom line. Companies ready to leverage the potential of this technology can significantly improve their performance. Therefore, it is crucial to understand the relationship between internal capabilities and contextual factors on one hand, and Artificial Intelligence adoption and its impact on performance on the other. Within this research framework, this study introduces an extended dynamic capability framework to analyze the interplay between internal factors, Artificial Intelligence adoption, and companies performance. The proposed model is tested using Partial Least Squares—Structural Equation Modeling on survey data from 210 Italian innovative startups. The findings indicate that companies with well‐developed dynamic capabilities, enabling them to adapt more effectively to environmental changes, are also better equipped to adopt Artificial Intelligence, leading to positive social, economic, and environmental performance.
ABSTRACT Despite the potential value of involving suppliers in buyers' new product development (NPD) projects, there are challenges in integrating distributed resources and actions across organizational boundaries. Insight from the … ABSTRACT Despite the potential value of involving suppliers in buyers' new product development (NPD) projects, there are challenges in integrating distributed resources and actions across organizational boundaries. Insight from the intra ‐organizational leadership literature suggests that an effective inter ‐organizational leadership model could help address project‐level coordination challenges. Adopting an agency theory view complemented by role theory, this study examines the antecedents and outcomes of rotational leadership (i.e., shifting leadership roles in a process) in a buyer NPD project involving suppliers. The results indicate a U‐shaped relationship between rotational leadership and project performance by analyzing a paired sample of quantitative and qualitative data for 279 NPD projects. In a post hoc qualitative comparative analysis (fsQCA), this study triangulates quantitative results using interview data, showing that buyers adopt boundary buffering to address potential rotational leadership risks while achieving high project performance. Both buyer risk‐taking and supplier relationship‐specific investments contribute to the emergence of rotational leadership. These results enrich supplier involvement in the NPD literature by demonstrating (1) when rotational leadership emerges and (2) how it affects project performance. The findings also provide managerial implications for leadership role arrangements and boundary‐buffering decisions in the context of collaborative innovation in the supply chain.
Purpose Drawing on the resource-based and dynamic capabilities framework, the study examines the influence of market and technology orientation on digital technological opportunism to understand SMEs' future focus and organizational … Purpose Drawing on the resource-based and dynamic capabilities framework, the study examines the influence of market and technology orientation on digital technological opportunism to understand SMEs' future focus and organizational performance given the digital transformation landscape for international expansion. Design/methodology/approach Partial-least-square structural equation modeling was employed to examine the hypothesized relationships using cross-sectional survey data from 322 senior and middle-level executives. Findings The findings highlight the fact that market and technology orientation capabilities positively influence SMEs’ digital technological opportunism, which is shown to positively influence organizational performance by developing a future focus on digital marketing strategy development in the internationalization process. Originality/value The research provides valuable insights into integrating market and technology orientation with digital technological opportunism in SMEs to develop future focus and achieve organizational performance for international expansion.
This article examines to what degree organizations use strategies that focus on maximizing shareholder value (Theory E) as opposed to strategies emphasizing the development of organizational capability (Theory O). Our … This article examines to what degree organizations use strategies that focus on maximizing shareholder value (Theory E) as opposed to strategies emphasizing the development of organizational capability (Theory O). Our main goal is to investigate the extent to which cognitive biases influenced strategic decision-making pertaining to organizational change. Strategic decision-making and organizational change both have a great impact on collaborative behavior. A survey was developed that measured different aspects of the cognitive perspective in strategic decision-making. It was distributed to managers of several medium-sized organizations in Scandinavia (n = 119). The results indicate that managers used mixed strategies (Theory E and O). The results also reveal that illusions of control together with beliefs about change processes skewed the application of strategies towards Theory E. The theoretical and practical implications of the results were finally discussed, expanding the cognitive perspective in strategic decision-making.
The study explores the interaction of two cross-functional distributed actors (HR and project managers), their actions, and how they utilize existing practices to mobilize human capital in projects. The study, … The study explores the interaction of two cross-functional distributed actors (HR and project managers), their actions, and how they utilize existing practices to mobilize human capital in projects. The study, located at the intersection of practitioners and praxis, explores how the flow of different HR activities is constructed during project execution. Based on extensive field-based qualitative research and anchored on the micro foundations’ lens, we find that paired distributed actors (project manager and HR manager) engage in two mutually exclusive strategizing practices (human resource procedurally embedded and human resource interactive and mutual) for shaping the activity flow of HRM implementation. This finding is critical because it explains how the tension between the paired distributed actors is handled during project execution in project-based firms.
Purpose This study aims to evaluate the impact of customers’ ESG performance on suppliers’ digital transformation, with relationship duration and organizational slack as moderating factors. Considering the competitive and cooperative … Purpose This study aims to evaluate the impact of customers’ ESG performance on suppliers’ digital transformation, with relationship duration and organizational slack as moderating factors. Considering the competitive and cooperative relationships between upstream and downstream enterprises, the study aims to investigate the mediating roles of anti-driving effects and knowledge spillover effects. Design/methodology/approach Using panel data from Chinese listed companies, this study employs fixed-effects models and mediation analysis to investigate the relationship between customers’ ESG performance and suppliers’ digital transformation. Heterogeneity is examined through subgroup analyses, while moderating effects are tested by incorporating interaction terms. Findings This study reveals that customers’ ESG performance significantly enhances suppliers’ digital transformation, which is further strengthened by relationship duration and organizational slack. Additionally, customers’ supply chain discourse power and knowledge spillovers mediate this relationship. Notably, the strength of this relationship proves contingent upon suppliers’ strategic aggressiveness and knowledge diversification levels. Practical implications The research provides several insights for corporate managers and governments, which are of great significance for promoting the coordinated development of digitalization and greenization in the supply chain. Originality/value The study makes significant contributions to uncovering the mechanism underlying the relationship between customers’ ESG performance and suppliers’ digital transformation.
Purpose In today’s dynamic market, manufacturing firms are challenged by the need to compete with established players while adapting to rapid change. This study, drawing on the Resource-Based View theory … Purpose In today’s dynamic market, manufacturing firms are challenged by the need to compete with established players while adapting to rapid change. This study, drawing on the Resource-Based View theory (RBV), aims to explore the impact of resource orientation (RO), network orientation (NO), and technology innovation (TI) as mediating factors, along with strategic flexibility (SF) as a moderating factor, on manufacturing firm performance. Design/methodology/approach The research utilizes a sample of 344 manufacturing firms based in the Kingdom of Saudi Arabia (KSA) and employs Smart PLS 4 for data analysis. Findings The results reveal a significant positive relationship between RO, NO, TI, SF, and manufacturing firms’ performance. This study contributes to understanding how RO, NO as resources, TI as a mediating variable, and SF as a boundary condition influence firm performance. Research limitations/implications This study points out practical implications for managers in terms of optimizing the use of their resources, having good networks, and encouraging innovation. These orientations can, therefore, improve firm performance. Additionally, strategic flexibility allows firms to change in correspondence to changing environments and maintain their advantages. This integrated approach provides a comprehensive framework for improving manufacturing firm performance through effective resource management, network building, and technological advancements. Originality/value This study lies in its investigation of how RO, NO, and TI act as mediating factors, with SF as a moderating factor, on firm performance. This therefore presents a new framework that emphasizes the critical role of resource management strategy, robust networking, and innovation in improving firm performance. Such an approach presents valuable insights and practical guidance for manufacturing firms that wish to maintain competitive performance and adjust to market dynamics.
O presente artigo aborda o fenômeno do Shadow IT, caracterizado pelo uso de soluções tecnológicas sem aprovação formal da área de Tecnologia da Informação (TI), analisando seus riscos e potenciais … O presente artigo aborda o fenômeno do Shadow IT, caracterizado pelo uso de soluções tecnológicas sem aprovação formal da área de Tecnologia da Informação (TI), analisando seus riscos e potenciais para a inovação. No contexto da transformação digital, especialmente em setores regulados como o financeiro, o Shadow IT tem se expandido como resposta à lentidão dos processos tradicionais de TI, oferecendo agilidade e aderência às necessidades dos usuários. A pesquisa adota abordagem qualitativa e revisão bibliográfica exploratória, com apoio em estudos de caso e na literatura especializada. Foram identificadas sete práticas essenciais para gestão eficaz do Shadow IT, como o mapeamento ativo de ferramentas, a criação de políticas inclusivas, a adoção de modelos de governança federada, e o fortalecimento da cultura de inovação segura. A análise demonstra que, quando corretamente gerido, o Shadow IT pode ser transformado em alavanca estratégica, desde que alinhado às diretrizes institucionais e às exigências regulatórias. Conclui-se que uma governança adaptativa, participativa e baseada na confiança é essencial para mitigar os riscos associados e potencializar os benefícios dessa prática. A articulação entre autonomia e segurança, inovação e conformidade, deve guiar a construção de uma TI mais ágil, resiliente e orientada ao valor. O estudo reforça a importância de compreender o Shadow IT não como ameaça, mas como oportunidade estratégica a ser integrada aos processos de transformação digital.
Purpose This study aims to explore the role of organizational learning in effective strategy execution among transport firms in Uganda. Design/methodology/approach Qualitative data was collected using a semi-structured interview guide … Purpose This study aims to explore the role of organizational learning in effective strategy execution among transport firms in Uganda. Design/methodology/approach Qualitative data was collected using a semi-structured interview guide from 9 multiple cases that composed 21 key informants. The analysis of transcripts used a thorough thematic analysis approach and QSR NVivo 9 software. Verbatim texts were used to explain the emergent themes. Findings The findings show that organizational learning in the form of knowledge acquisition, knowledge distribution, knowledge interpretation and organizational memory contributes effectively to strategy execution among transport firms in Uganda. Originality/value The study offers initial evidence-based results on the contribution of organizational learning capability toward effective strategy execution from road transport firms that operate in a dynamic environment. This aspect has not been adequately highlighted in previous studies.
Purpose Despite the numerous studies on the significance of business models, research on the enablers of business model innovation (BMI) is still emerging. For this research, we empirically assessed the … Purpose Despite the numerous studies on the significance of business models, research on the enablers of business model innovation (BMI) is still emerging. For this research, we empirically assessed the effect of supply chain ambidexterity (SCA) on BMI. Additionally, we examined the mediating influence of supply chain innovation (SCI) in the SCA-BMI linkage. Design/methodology/approach Four research hypotheses were validated using responses from 200 manufacturing multinational companies in Ghana. Data were gathered through a pre-tested survey-based instrument. The model was assessed using variance-based structural equation modeling (PLS-SEM). Findings The findings revealed that SCA significantly drives BMI. Furthermore, SCI was found to positively mediate the nexus between SCA and BMI. Practical implications The analysis indicates that managers should prioritize SCA as it has the highest impact on BMI. Although SCI also exhibited strong performance, it is less important and should support rather than lead efforts. Managers are therefore encouraged to develop robust SCI but put more effort in boosting SCA. Originality/value The study offers unique contributions to the supply chain management and BMI literature. Through the lens of the dynamic capability theory, the study examines how SCA combines with SCI to drive BMI.