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Abstract

Research on strategic decision making has considered advice-seeking behaviour as an important top management team attribute that influences organizational outcomes. Yet, our understanding about how top management teams utilize advice to modify current strategies and pursue exploratory innovation is still unclear. To uncover the importance of advice seeking, we delineate between external and internal advice seeking and investigate their impact on exploratory innovation. We also argue that top management team heterogeneity moderates the impact of advice seeking on exploratory innovation. Findings indicated that both external and internal advice seeking are important determinants of a firm's exploratory innovation. In addition, we observed that top management team heterogeneity facilitates firms to act upon internal advice by combining different perspectives and developing new products and services. Interestingly, heterogeneous top management teams appeared to be less effective to leverage external advice and pursue exploratory innovation. Copyright (c) 2010 The Authors. Journal of Management Studies (c) 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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... Prior research suggests that the composition of the TMT and particularly, its heterogeneity, influences exploratory innovation (Alexiev, Jansen, Van den Bosch, & Volberda, 2010;Koryak, Lockett, Hayton, Nicolaou, & Mole, 2018;Smith & Tushman, 2005;Talke, Salomo, & Kock, 2011). For example, Bantel and Jackson (1989) and Hambrick, Cho, and Chen (1996) argue that a heterogeneous TMT enhances cognitive diversity for decision-making, and this makes the firm more innovative. ...
... These preferences or biases are a function of their background characteristics. Regarding the focus of the current study, a firm's exploration behavior and subsequent outcomes depend on the composition of the TMT (Alexiev et al., 2010;Koryak et al., 2018;Talke et al., 2011). Our particular interest is in TMT heterogeneity, i.e. diversity in the functional, educational, industry, and organization backgrounds of TMT members (Alexiev et al., 2010;Carpenter, 2002;Hmieleski & Ensley, 2007). ...
... Regarding the focus of the current study, a firm's exploration behavior and subsequent outcomes depend on the composition of the TMT (Alexiev et al., 2010;Koryak et al., 2018;Talke et al., 2011). Our particular interest is in TMT heterogeneity, i.e. diversity in the functional, educational, industry, and organization backgrounds of TMT members (Alexiev et al., 2010;Carpenter, 2002;Hmieleski & Ensley, 2007). ...
Article
Past research suggests that although heterogeneity in the top management team (TMT) is associated with exploratory innovation, this may be contingent on factors in the firm’s external environment. In this study, we examine how mimetic and coercive institutional pressures moderate the relationship between TMT heterogeneity and product exploration. Using data obtained from 141 U.S. manufacturers, we show that this relationship is stronger when mimetic and coercive pressures are conflicting. We argue that this occurs because inconsistency between these institutional pressures creates a complex decision-making situation for the TMT. In such situations, a heterogeneous TMT is beneficial. The opposite result occurs when these pressures are consistent (e.g., both are high). Our results have implications for research and decisions regarding TMT composition and exploration strategies. They also highlight the need to appreciate the varied influences of institutional pressures on the firm.
... Bosch, & Volberda, 2010;Carpenter, 2002). Thus, TMT participative decision-making and heterogeneity are important vertical and horizontal ways of information processing. ...
... Because a heterogeneous TMT consists of managers from a range of backgrounds and with varying knowledge and greater connections, it is able to acquire, exploit, and share information horizontally (Alexiev et al., 2010). Thus, TMT heterogeneity reflects a critical horizontal way to process information (Naranjo-Gil, Hartmann, & Maas, 2008). ...
... TMT heterogeneity broadens the TMT's knowledge base, which helps the team identify opportunities, gather and share information, solve problems, and others; it thereby has significant implications (Carpenter, 2002;Naranjo-Gil et al., 2008). For example, Alexiev et al. (2010) find that TMT heterogeneity aids the team in acting on internal advice to develop exploratory innovation. ...
Article
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Drawing on the information processing perspective, this study examines the effects of TMT participative decision-making and heterogeneity on management innovation. It finds that TMT participative decision-making and heterogeneity individual and jointly contribute to management innovation. In addition, the effect of TMT participative decision-making is positively moderated by firm age, whereas that of TMT heterogeneity is negatively moderated by firm age. This study offers insights into how TMTs matter to management innovation, enriching the knowledge of the antecedents of management innovation. It also represents one of the first attempts that introduce firm age as a contingency for the innovation implications of TMTs.
... Established explanations for this increased discretion are related to small firms' reduced resource availability, flatter organizational structures, and to some extent reduced ownership-management separation (i.e., high ownership concentration by executives). Specifically, research suggests that executives in small firms compensate resource and process deficiencies with their skills and abilities (Alexiev et al., 2010), play both strategic and operational roles (Lubatkin et al., 2006), have more direct contact with organizational members due to reduced hierarchy (Freel, 2000;Ling et al., 2008), face reduced board monitoring and oversight (Arzubiaga et al., 2018;de Bakker & den Hond, 2008), and may have mitigated agency conflicts due to higher levels of ownership (Robson & Bennett, 2000;Zahra et al., 2000). These explanations assume that executives of small firms objectively enjoy high levels of discretion, and therefore that they select and implement strategic actions without the challenges and constraints faced by their peers operating in large firms. ...
... First, research has argued that contrary to their large counterparts, which tend to accumulate slack resources usually due to high sales volumes as well as high assets and performance expectations that can be leveraged to acquire new resources (Fuentelsaz et al., 2002;Nason et al., 2015), small firms typically face resource scarcity and are therefore more cautious in how they deploy those resources (Guo et al., 2020). The derived implication for managerial discretion in small firms is that executives may have a more prominent role (more discretion) in firms with limited resources because such firms must rely on their executives to bring the required experiences, abilities, and skills to overcome resource deficiencies (Alexiev et al., 2010;Friedman et al., 2016). ...
... We argue for the need to explicitly discern among the various firm characteristics, in particular resource and structural characteristics, that shape managerial discretion perceptions and incorporate them in research aimed at explaining variation in new firm strategy. As we highlight in our framework, organizational conditions shape discretion perceptions in consequential ways and firm characteristics such as resource availability and structural flatness that are frequently assumed to have unequivocal positive effects on managerial discretion (Alexiev et al., 2010;Lubatkin et al., 2006), and have divergent effects on perceived availability of choices and ability to implement firm strategic actions. Taking this explicit approach and adopting a perceptual lens to managerial discretion may bring us closer to understanding the genesis and evolution of strategy in new, small firms. ...
Article
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A significant body of research assumes that managerial discretion is high in small firms. However, this assertion is based on simplified explanations linking specific firm characteristics, particularly resource, structural, and ownership characteristics, with a unilateral and objective view of managerial discretion. Adopting a perceptual and multidimensional conceptualization of discretion, and employing an information processing perspective, we challenge this assumption and build a theoretical framework that explains how these key firm characteristics shape executives’ perceptions of strategic choice availability (latitude of actions) and strategy implementation ability (latitude of objectives). We contribute to the theoretical development of the managerial discretion construct by providing a more nuanced perspective on the relationship between firm size and managerial discretion. We also point to the importance of incorporating perceptions of managerial discretion in research exploring opportunity recognition, entrepreneurial orientation, and strategy formation and implementation in small firms and family businesses.
... For instance, the elaboration of global supply chains, the adoption of more networked ways of pursuing innovation, and the emergence of digital business models has elevated demands for effective senior leadership. This has raised awareness that senior leaders generally call on different actors, both within and beyond the organization's boundaries, to assist in decisions pertaining to key organizational processes and outcomes (Alexiev et al. 2010(Alexiev et al. , 2020Van Doorn et al., 2017). ...
... Moreover, in recent advances scholars have also included a richer set of potential actors who exert influence on organizational choices (Finkelstein et al., 2009). Influential actors such as middle managers (Heyden et al., 2018;Reimer et al., 2016a;Raes et al., 2011;Volberda, 2017), internal/external advisors (Alexiev et al., 2010;Arendt et al., 2005), and non-executive directors (Westphal, 1999), have been introduced through several auxiliary perspectives and shown to also play a role at times. As a result, the bounds of the TMT have become porous, with a multiplicity of internal and external actors involved in processes and outcomes traditionally attributed to the TMT . ...
... Scholars have used this approach to study strategic change (Boeker, 1997;Wiersema and Bantel, 1992;Sidhu et al., 2021), innovation strategy (Bantel and Jackson, 1989;Qian et al., 2013;West and Anderson, 1996), international strategy (Herrmann and Datta, 2005;Nielsen and Nielsen, 2011), and competitive strategy (Hambrick et al., 1998;Marcel et al., 2010). In this approach, group-level mechanisms have taken center stage, such as different types of conflict (Amason, 1996;Simons and Peterson, 2000), cognitive diversity (Kilduff et al., 2000;Narayan et al., 2021), and informational availability to inform decisions (Alexiev et al., 2010). The role of compositional heterogeneity is central in this model and underlies the presumed mechanisms at play; but mostly it is assumed that heterogeneity in compositional attributes of the group is desirable as, on average, more heterogeneous teams perform better on many desirable strategic choices. ...
Article
Scholarship on strategic leadership has undergone considerable advancement in the 40 years since the introduction of upper echelon theory (UET). In this special issue we engage with the state-of-the-art in the field and categorize the manuscripts along a new typology of what constitutes the dominant coalition in the firm. From traditional models focusing on ‘CEO-only’ or ‘TMT as a group’ we discuss the current range of conceptualizations that exist of the dominant coalition and discuss benefits and drawbacks of each approach. In particular we observe a tendency of scholars to be more inclusive of specific actors, e.g. functional specialists of the TMT, and a natural broadening of the actors thought to be part of, or strongly supporting, the dominant coalition of the firm. This special issue offers guidelines on how to frame scholarship in the strategic leadership tradition going forward and presents an effort to strengthen coherence and clarity in the field.
... These factors reflect manager's experience, sense of worth and other characteristics from different perspectives. They affect the creativity of top management team, the strategic decision and corporate performance (Alexiev et al., 2010, Amason et al., 2006. ...
... On the other hand, debt financing has many merits, such as agency costs reduction and information asymmetry evade, which has a positive impact on financial performance (Masulis, 1983). Alexiev et al. (2010) find that debt financing of listed companies can promote the market value of company. Thus, from the perspective of debt financing scale, this paper argues that there are some links between the characteristics of entrepreneurial team and corporate financial performance, and the links are implemented through debt financing. ...
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Researches on the direct impact of the characteristics of top management team on corporate financial performance have obtained many achievements for a long time. Little literatures studied the relationship between human capital characteristics of entrepreneurial team and corporate financial performance. Based on the Upper Echelons theory, this paper empirically tests the relationship among the characteristics of entrepreneurial team, debt financing scale and corporate financial performance. It collects 1221 valid data from the datasets of listed companies on ChiNext in 2014-2016. Using multiple regression analysis, this paper finds that human capital characteristics of entrepreneurial team have a significant impact on corporate financial performance as well as debt financing scale. Besides, the debt financing scale plays a partial mediating role. This paper enriches Upper Echelons theory by focusing on human capital characteristics of entrepreneurial team in new ventures. Previous studies usually pay their attention to the human capital characteristics of top management team in main board listed companies. Besides, by verifying the mediating effect of debt financing scale, this paper inspires to explore the indirect relationship between human capital characteristics of entrepreneurial team and corporate financial performance.
... Several authors explore the ways in which the TMT works and the activities on which it focuses (e.g., Alexiev, Jansen, van den Bosch, & Volberda, 2010;Li et al., 2007). For example, Heavey and Simsek (2017) find that the TMT's transactive memory-its ability to efficiently generate, distribute, and integrate knowledge based on individual managers' expertise-is positively related to organizational ambidexterity. ...
... Scholars could also attempt to reveal idiosyncrasies in the relationship between strategic leaders and innovation in small and medium-sized firms (e.g., Alexiev et al., 2010;Lefebvre et al., 1997;Qian et al., 2017). ...
Article
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Research Question/Issue We review the literature on the relationship between strategic leadership and technological innovation. Research Findings/Insights We identify the theoretical lenses that researchers apply when studying strategic leadership and innovation, most notably agency theory and upper echelons theory. We review the innovation constructs and measures that scholars employ, and we survey the links among strategic leaders’ characteristics and technological innovation. Ultimately, we organize the literature into an integrative framework that provides a concise overview of the extant knowledge and we outline an agenda for future research. Theoretical/Academic Implications First, we offer scholars a discipline‐spanning overview of the extant knowledge on the topic. Second, by integrating important aspects of corporate governance, such as the role of the board of directors, incentives for the chief executive officer or the top management team, and firm ownership, into the context of technological innovation, we highlight the vital role it plays in the realm of technological innovation. Third, we provide a useful guide for scholars and direct their work towards fruitful avenues for future research. Practitioner/Policy Implications We offer insights for practitioners interested in better understanding the bidirectional relationship between strategic leadership and technological innovation. In particular, our framework and our detailed analysis of the impact of strategic leaders on technological innovation can guide shareholders and board members in matters related to board composition as well as top executive selection and compensation.
... We argue that TMT heterogeneity, a compositional characteristic that signifies differences of its members along various dimensions (Simons, Pelled, & Smith, 1999), is of particular interest when assessing the CEO's impact on REO. Heterogeneity significantly affects the TMT's cognitive and information processing capacity, and was shown to have both positive and negative effects on firm outcome depending on its shape and degree, as well as the circumstances under investigation (Alexiev, Jansen, Van den Bosch, & Volberda, 2010;Barkema & Shvyrkov, 2007;Simons, Pelled, & Smith, 1999). ...
... Arguing from an optimistic perspective, heterogeneity can steer up constructive task-related cognitive conflicts and increases a team's problem solving and decision making capabilities by bringing unique information, knowledge, and perspectives to the table (Milliken & Martins, 1996;Tony Simons et al., 1999). Based on their broad cognitive frames (Crossland et al, 2014), high variety CEOs can incorporate the range of perspectives and the pool of different ideas within their TMTs through internal advice seeking, and enhance exploratory innovation within their organizations (Alexiev et al., 2010;Rodan & Galunic, 2004). Additionally, TMT members might see their views reflected in the CEO's diverse background and experience, making them more willing to share information and embrace radical exploratory strategies (Cao et al., 2010; McPherson, Smith-Lovin, & Cook, 2001;Tsai & Ghoshal, 1998). ...
Conference Paper
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Prior studies demonstrate that firms need to make smart trade-off decisions between exploration and exploitation activities in order to increase performance. Chief executive officers (CEOs) are principal decision makers of a firm's strategic posture. In this study, we theorize and empirically examine how relative exploration orientation of large publicly listed firms varies based on the career variety of their CEOs-that is, how diverse the professional experiences of executives were prior to them becoming CEOs. We further argue that the heterogeneity and structure of the top management team moderates the impact of CEO career variety on firms' relative exploration orientation. Based on multisource secondary data for 318 S&P 500 firms from 2005 to 2015, we find that CEO career variety is positively associated with relative exploration orientation. Interestingly, CEOs with high career varieties appear to be less effective in pursuing exploration, when they work with highly heterogeneous and structurally interdependent top management teams.
... Innovation has often been identified as a critical element for firms to achieve growth (Camis on and Villar-L opez, 2014), especially for firms in emerging economies, such as China (Zhou and Wu, 2010). Understanding the drivers of firm innovation has become an important topic in innovation literature (Damanpour and Schneider, 2006;Alexiev et al., 2010). Given the critical role of chief executive officers (CEOs) in the strategic decision-making and implementation of firms, scholars have begun to shed light on the impact of CEO characteristics on firm innovation (Jansen et al., 2009;Kammerlander et al., 2015;Sariol and Abebe, 2017), especially how CEOs' positive affect influences firm innovation (Delgado-Garc ıa and De La Fuente-Sabat e, 2010; Baron and Tang, 2011). ...
... CEOs with a high level of passion are intrinsically motivated to grow their firm and endeavor to maintain its superior competitive position in the long term (Cardon et al., 2009;Mueller et al., 2017). They would be active in exploring resources from the external environment to support the activities associated with attracting new customers, creating new markets and obtaining high rewards for firms (Alexiev et al., 2010;Strese et al., 2018). For example, passionate CEOs tend to display more positive affect than CEOs with low passion, making it easy to develop trust with their customers (Anderson and Thompson, 2004). ...
Article
Purpose Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on firm innovation, including exploratory and exploitative innovation and examine the moderating roles of market and technological turbulence. Design/methodology/approach This study adopts the methodology of survey and uses multisource and time-lagged data of 146 firms in China. Seemingly unrelated regression (SUR) is used to test the hypotheses of this study. Findings This study finds that CEO passion promotes exploratory and exploitative innovation. Results also indicate that market turbulence strengthens the effect of CEO passion on exploratory and exploitative innovation, whereas technological turbulence weakens such an effect. Originality/value CEO passion is an important, positive affect which inspires CEOs to work for firms, but it has not yet received enough attention in the innovation literature. This study contributes to examining the impact of CEO passion on firm innovation and contributes to the contingency under which CEO passion influences firm innovation. Furthermore, this research finds that the moderating effects of market and technological turbulence are different in the relationship between CEO passion and firm innovation.
... TMT behavioral integration is defined as the degree of team members' participation and interaction in thought and action, which holds the key to the effectiveness of strategic decision-making and execution (Carmeli and Schaubroeck, 2006). The demographic differences of TMT members and their behavioral integration influence the decision-making and implementation of corporate strategy, which can explain the group phenomenon (Alexiev et al., 2010). ...
... TMT heterogeneity reflects the differences of TMT in demographic characteristics, important cognitions, values, and experiences, which can be divided into demographic background variables and latent variables (Mehrabi et al., 2021). Often, heterogeneous teams are better suited to deal with unstructured, creative problems (Alexiev et al., 2010). Therefore, when the diversity among TMT members is large, the team has diversified knowledge, skills, experience. ...
Article
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Prior studies demonstrate the role of resources in shaping a firm’s entrepreneurial orientation from the resource-based view. We expand this line of research by theorising and testing the impact of resource bricolage on entrepreneurial orientation. Based on the data of 295 start-ups, we find that when start-ups face resource constraints, the strategy of resource bricolage has a significant positive effect on entrepreneurial orientation, and the relationship is positively moderated by top management team (TMT) heterogeneity. Meanwhile, the relationship is negatively moderated by TMT behavioral integration. The results are expected to provide theoretical guidance for start-ups to overcome resource constraints and achieve smooth survival and growth.
... This is because the existence of heterogeneity means that members of the top management team can access different information sources and divergent views on the basis of differentiated cognition to solve problems, which is conducive to enterprise learning and performance improvement [24,27]. Other scholars have applied social identity theory to argue that individuals tend to associate more with those who are similar to them, such that heterogeneity will affect top management team members' identity; inhibit the transfer of professional skills within the team [28,29]; increase the likelihood of conflicts; and produce greater differences in the process of formulating strategies, strategic objec-tives, and strategic plans [30,31]. However, studies on the impact of heterogeneity in top management teams have either treated the various backgrounds (gender, age, education background, tenure, etc.) of the top management team as a whole [32] or selected only one background (e.g., gender) as representative of the whole. ...
Article
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Although the importance of the top management team’s characteristics has attracted research attention, its influence remains undetermined. This paper considers the influence of top management team characteristics’ heterogeneity on GEM-listed enterprises’ innovation performance. From the perspective of optimizing top management team human capital and improving enterprise innovation performance, this study analyzes 634 GEM-listed enterprises via regression analysis. The results show that the effect of shallow-factor heterogeneity of the top management team on enterprise innovation performance is not significant, but deep-factor heterogeneity has a negative effect. These findings indicate that deep-factor heterogeneity is more important than shallow-factor heterogeneity and is subject to closer attention. If a GEM-listed enterprise wants to set up a strong top management team that contributes to the improvement of enterprise innovation performance, it must examine the consistency of each member’s educational background and extend their tenure as long as possible without considering the gender ratio or age structure of the team.
... Founding team heterogeneity refers to the extent to which founding team members have diverse backgrounds (Alexiev, Jansen, Van den Bosch, & Volberda, 2010). Prior research indicates that founding team heterogeneity can come from two sources: diverse demographic characteristics or diverse work-related experiences (Meng, Yan, & Cao, 2019). ...
Article
Recent research views narcissism as an important personality trait that can explain the heterogeneity in firm performance. This is particularly relevant in the entrepreneurial context as entrepreneurs have a more direct influence on firm strategies than executives in established firms. This study proposes that narcissism has different implications for venture performance when it is reflected as admiration versus rivalry. Moreover, we suggest that a venture’s learning strategy in new product development (NPD) is an important mediating mechanism that links entrepreneur narcissism and new venture performance. Utilizing data collected from 215 new ventures in China, we find that while narcissistic admiration motivates entrepreneurs to focus more on explorative learning, narcissistic rivalry makes them more likely to promote exploitative learning. More importantly, we find that founding team members can potentially reshape the impact of entrepreneur narcissism on venture learning strategy by participating in venture decision-making and by contributing diverse knowledge resulting from their heterogeneous professional backgrounds.
... We further excluded articles that addressed alternative forms of ambidexterity, e.g., articles that dealt with conflicting business models (Markides, 2013), alliance ambidexterity (Tiwana, 2008), or academic research orientation versus commercialization (Ambos et al., 2008). Also excluded were a good number of articles that focused exclusively on either exploration or exploitation, or similar concepts (e.g., Alexiev et al., 2010, Hashai, 2018Jiang et al., 2010;McGrath, 2001;Miller and Shamsie, 2001;Nadkarni and Chen, 2014;Rosenkopf and Nerkar, 2001;Siggelkow and Rivkin, 2006;Titus et al., 2017;Walter et al., 2016), unless there was a clearly expressed connection to strategic entrepreneurship (Baert et al., 2016). For example, studies focusing exclusively on the determinants of radical or breakthrough innovation do not necessarily reveal anything about how firms balance radical and incremental innovation (Kaplan and Vakili, 2015;Zheng and Yang, 2015;Zhou and Bingxin Li, 2012). ...
... The diversity and heterogeneity of TMT have also been highlighted ( Ndofor, Sirmon & He, 2015 ). A diversified TMT composition has been linked to the order and timing of new product projects ( Alexiev, Jansen, Van den Bosch & Volberda, 2010 ) and strategic changes ( Naranjo-Gil, Hartmann & Maas, 2008 ). Some scholars observed that upper echelons research typically treats CEOs as members of their TMTs, averaging their characteristics as the overall TMT demographic composition ( Jacobs, 1992 ;Peterson et al., 2003 ). ...
Article
This study explores how the designated project manager (DPM) deals with the CEO-top management team (TMT) interface to enable projects for strategic implementation. During the project front-end investment decision, their respective key capabilities in Awareness-Motivation-Capability phases are analyzed through a case study. The evidence showed that the DPM indeed plays a key role in the CEO-TMT interface in the process. He/she plays the role of a communicator in the interface in the motivation phase by the observing, networking, and information-searching capabilities, and plays the role of an integrator in the interface in the capability phase by the coordinating and reconfiguring capabilities. Beside, he/she helps the project owner play the role in developing project business cases aligned with strategic development. It enriches project governance theory, identifies the DPM's role in the project front-end decision-making process before project commencement, and enriches the upper echelons theory into project management fields.
... However, data showed that the networking programme is favoured by male principals compared with female principals and among the experienced principals rather than novice principals. Based on the social network concept, Alexiev et al. (2010) argued that it is the duty of any organisational leader to use their networking skills to obtain external resources and gain new ideas to enable organisational improvement. In fact, if leaders are lacking in networking skills, the organisation will remain in isolation, lack innovation and just recycle old ideas and knowledge (Fleming et al., 2007;Liou and Daly, 2018). ...
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This study reports on the professional development and school leadership programmes requested by principals in Malaysian schools. A total of 557 principals provided feedback on their preferred school leadership and professional development programmes which they believed as essential to be effective school leaders. Based on their feedback, mentoring was named the most needed leadership development programme as it allowed access to the guidance, knowledge and skills of senior principals. As for school leadership courses mentioned by school principals, financial management was considered as most useful. The study concludes by recommending suggestions to improve principals’ professional development programmes in Malaysia.
... Past research asserts that seeking advice from subject matter experts improves a managerial decision's quality and speed (Alexiev et al., 2010;Ma et al., 2020). Knowledge about a decision problem may reside within other individuals (McFadyen & Cannella, 2004); interacting with these individuals and seeking their advice helps to gain knowledge that enhances the quality and speed of decisions (Yaniv, 2004). ...
Conference Paper
Full-text available
Research on supply chain resilience has successfully established flexibility as a firm-level antecedent that contributes to supply chain resilience. However, little is known about the mechanisms that develop flexibility within a firm. Drawing on the social capital theory and social network theory, the authors claim that supply chain managers' advice-seeking plays a critical role in developing this antecedent. Specifically, the authors hypothesize that supply chain managers' structural and relational embeddedness in their reference network, comprised of individuals from whom they seek advice, are instrumental to developing supply chain flexibility, which subsequently enhances the firm's supply chain resilience. The authors use survey data collected from 385 manufacturing firms in Australia and employ Hayes and Preacher's (2014) mediator model to test the hypotheses empirically. Results provides overall support for our theoretical model.
... For example, how do teams (try to) reduce the different types of uncertainty they face? What is the role of a team's efforts to reach out to others to reduce uncertainty in terms of boundary spanning and advice seeking (Alexiev et al., 2010;Faraj & Yan, 2009)? Also, how do these activities interact with intrateam processes, such as information processing and team reflection Nederveen Pieterse et al., 2011)? ...
Article
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While research on entrepreneurial teams has flourished over the past two decades, it has mainly taken a static perspective, neglecting the developments both teams and their ventures undergo over time. To address this issue, we develop a “double life cycle framework” covering entrepreneurial teams’ formation, collaboration, and dissolution phases as well as potential nonlinear sequences of these phases. While this team life cycle is embedded in the venture life cycle, both life cycles can progress independently. We offer research suggestions on entrepreneurial team formation, collaboration, and dissolution in each venture phase, highlighting the role of entrepreneurial teams in advancing their ventures.
... Hence, we hypothesize that individuals learn less for their own employability if their feedback-seeking network is characterized by similarity-attraction. Similar arguments have been advanced in other fields, such as in the context of top management teams' advice-seeking to make strategic decisions (Alexiev et al., 2010). ...
Article
Employees' feedback-seeking networks at work are important for employees' learning and employability. Earlier studies often neglected the specific characteristics of the different relationships an individual employee has at work. We conduct social network analyses in seven samples to study inter-individual differences in feedback-seeking relationships in detail. We investigate 2,058 feedback-seeking relationships of 118 employees to study how similarity-attraction affects the composition of feedback-seeking networks at work and how the composition of these feedback-seeking networks influences employees' employability. This research study aims to contribute by taking into account both the mechanisms that shape feedback-seeking networks and the effects of this on employability. The results show that similarity-attraction affects feedback-seeking in the workplace and that having a largely homogeneous feedback-seeking network has detrimental effects on employability. © 2021 Masaryk University, Faculty of Arts. All rights reserved.
... Weingart, 2001). Through task-related debate, functionally diverse TMTs can thus combine a variety of perspectives, knowledge, and skill-sets to enable sound decisions when faced with unfamiliar circumstances (Alexiev, Jansen, Bosch, & Volberda, 2010;Wei & Wu, 2013). Therefore, TMT functional diversity is highly relevant for EMNEs to achieve desired strategic objectives of FDI. ...
Article
This study examines the international performance of emerging economy multinational enterprises (EMNEs) from a strategic configuration perspective. We propose that the strategic patterns of EMNEs that deliver growth and/or profitability are characterized by different configurations of environment, strategy, and managerial resource factors. Therefore, identifying and assessing strategic configurations is key to understanding EMNEs’ international performance. Employing fuzzy-set qualitative comparative analysis, we analyze a multi-sourced dataset of Chinese firms’ outward investment and identify multiple equifinal strategic configurations that are associated with superior international performance in terms of sales growth and/or profitability. These findings inform the development of a taxonomy of EMNEs’ strategic configurations corresponding with three performance groups, namely profitable growth, profitable niche, and poor performers.
... Alexiev, Jansen, Van den Bosch, and Volberda (2010), Athanassiou and Roth (2006), Boone and Hendriks (2009), Buyl, Boone, Hendriks, and Matthyssens (2011), Cao, Simsek, and Zhang (2010) ...
Article
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The results of prior research on the impact of top management team (TMT) diversity on corporate performance have been varied and inconsistent. In this study, the operational definitions of TMT and diversity were checked in academic papers published between 2005 and 2020 on TMT diversity. The results confirmed three patterns for the operational definition of TMT: (a) extracted by title rank, (b) selected by CEO or equivalent top manager, and (c) executives announced in the company's public information/database. As for diversity, in addition to the studies that use conventional indices that express the various attributes of executives, it was confirmed that there exist many studies that consider diversity from the aspects of separation and disparity. Such “diversity” in the operational definition is considered the cause of the lack of consistency between TMT diversity and corporate performance.
... Past research asserts that seeking advice from subject matter experts improves a managerial decision's quality and speed (Alexiev et al., 2010;Ma et al., 2020). Knowledge about a decision problem may reside within other individuals (McFadyen & Cannella, 2004); interacting with these individuals and seeking their advice helps to gain knowledge that enhances the quality and speed of decisions (Yaniv, 2004). ...
Conference Paper
Full-text available
Research on supply chain resilience has successfully established flexibility as a firm-level antecedent that contributes to supply chain resilience. However, little is known about the mechanisms that develop flexibility within a firm. Drawing on the social capital theory and social network theory, the authors claim that supply chain managers’ advice-seeking plays a critical role in developing this antecedent. Specifically, the authors hypothesize that supply chain managers’ structural and relational embeddedness in their reference network, comprised of individuals from whom they seek advice, are instrumental to developing supply chain flexibility, which subsequently enhances the firm’s supply chain resilience. The authors use survey data collected from 385 manufacturing firms in Australia and employ Hayes and Preacher’s (2014) mediator model to test the hypotheses empirically. Results provides overall support for our theoretical model.
... et al., 2010; Jiménez-Jiménez et al., 2019; Limaj & Bernroider, 2019; Soto-Acosta et al., 2018).Following previous research (e.g.,Alexiev et al., 2010;Jiménez-Jiménez et al., 2019) ...
Article
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Ambidexterity has been linked to firm structures that are typical of organizations with a larger size. However, further research is needed to analyze whether the effect of firm size on ambidexterity is contingent on other aspects. We argue that micro and small firms that have developed some competitive intelligence routines (CIRs) may foster ambidextrous behavior and compensate for the limitations arising from a smaller size and lack of resources. We test our proposal on a sample of 200 firms in the furniture sector. Our results show that CIRs compensate for size constraints in that size is no longer a relevant variable to increase ambidextrous behavior in firms that achieve higher levels in these routines. Our results provide new and important insights into how ambidexterity may be fostered in small firms that lack resource slack or the ability to use separate units to develop knowledge exploration and exploitation activities.
... In terms of the TMT, studies suggest that TMT structure is vital because larger teams are likely to work in complex problems and obtain more resources (Koryak et al. 2018), which may be associated with radical innovations that require new knowledge and more sophisticated solutions than incremental innovations. Similarly, heterogeneous TMTs may have varied resources and skills but confront negative dynamics, including reluctance to novel ideas, resulting from inequality, emotional conflict, and social stratification (Alexiev et al. 2010;. Exploring the BOD, studies suggest that the directors' role of monitoring and advising CEOs allows them to shape risk preferences and R&D spending (Lim 2015), which is likely to determine the extent to which firms focus on short-or long-term innovation activities as well as R&D growth and productivity (Cummings and Knott 2017). ...
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Generating and implementing innovative ideas is a key organizational effort to achieve superior performance and secure competitive advantages. Accordingly, the influence of strategic leaders on organizational innovation is increasingly drawing research attention. In this study, we review and synthesize research on how strategic leaders (chief executive officers, top management teams, and boards of directors) influence innovation and propose a framework to guide future research on this important topic. We explain how existing theories rely on discretional or architectural mechanisms to explain strategic leaders’ influence on innovation and review how current studies relate strategic leaders to the specific stages of the innovation process. We also discuss the role of the internal and external environment in moderating these relationships and provide an overview and criticism of theoretical and methodological issues. Overall, we discuss the most relevant findings of the field, analyze how specific suggestions drawn from our framework can contribute to a comprehensive understanding of the influence of strategic leaders on innovation, and propose multiple research opportunities.
... After the two rounds of the survey concluded and we checked missing data, we had a final sample of 120 firms in which both the CEO and a TMT member answered the survey. Our final 8% response rate is similar to that of strategic leadership studies conducted in SME settings (Alexiev et al. 2010;Koryak et al. 2018;Kraiczy et al. 2015). The final sample of SMEs had, on average, approximately 23 years of age and 132 employees. ...
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Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote an organizational ethical culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership.
... We focused on team composition and internal team processes only, and in this context that may get to the core issues to consider (the variance explained by our models would seem to corroborate this impression). Teams in other organizations that are more firmly embedded in their organizational environment, may also find that their creativity is more affected by their external ties within the organization [117,118]. This is an issue that the current study does not speak to, but the evidence for the importance of external relations, for instance to generate support for the implementation of creative initiatives [119], is substantive enough to integrate this into further research concerning more embedded teams. ...
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One of the most fundamental questions in team creativity research is the relationship between individual member creativity and team creativity. The two answers that team creativity research has advanced–teams are more creative when their average member creativity is higher (the additive model) and teams are more creative when their most creative member is more creative (the disjunctive model) are straightforward. Surprising, however, is that neither the additive model nor the disjunctive model is consistently supported, begging the question of what moderates the predictive power of these models. We address this question by integrating individual-to-team creativity models with team process research. We propose that team information elaboration is a key moderating variable, such that average member creativity is more positively related to team creativity with higher information elaboration, and the highest member creativity is more positively related to team creativity with lower information elaboration. A multi-source study of 60 sales teams (483 employees) in a Chinese bakery chain supported these hypotheses. In addition, the study did not support the prediction that the most creative member’s outgoing advice ties (as a conduit for the dissemination of ideas) would further moderate the joint effect of the highest individual creativity and team information elaboration on team creativity.
... The decision to pursue vicarious search, that is, to seek external knowledge, enables managers to leap over organizational boundaries and gain new specialized insights (Alexiev, Jansen, Van den Bosch, & Volberda, 2010). This mode of search opens up possibilities for new learning and knowledge exchange and integration (Kaplan, Murray, & Henderson, 2003) and is likely to be pursued when the performance gap is too large and internal solutions are not likely to suffice. ...
... As pointed out by Burt (1992), redundant advice deriving from the presence of highly connected groups might lead to a locked-in situation wherein individuals do not benefit (in terms of new knowledge) from establishing additional relationships because they are overburdened by the activities pursued in their current network structure. In this vein, Wong (2008) argues that knowledge overlap is positively related to high intra-group network density; however, Alexiev et al. (2010) claim that heterogeneity in managerial groups should reduce the 'redundancy effect' due to the presence of managers with similar prior knowledge. At the same time, being connected with few actors is risky: if relationships can be easily broken, there may be a disruption in the network structure, leading to reduced ability to exchange knowledge and therefore produce innovation. ...
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In recent years, there has been a growing consensus in management and organisation studies regarding the crucial role played by business model innovation in supporting firms’ competitiveness. However, the intra-organisational processes that aim to develop business model innovation and the antecedents for its conceptualisation remain underexplored. Organisational mechanisms for learning between managers lead to the establishment of intra-organisational advice networks, which facilitate the acquisition and diffusion of knowledge for innovation. Using social network analysis, this study investigates the elements associated with intra-organisational networking intended to innovate business models. We analyse a multiunit cooperative firm as a case study. Within this firm, the conceptualisation of the novel business model activated a collaborative system of advice exchange between managers. We found that networking is supported by active managers who spread advice within the firm and managers who go beyond the boundaries of their organisational role. We propose several managerial recommendations, including that managers can develop sub-groups constituting specific and unique knowledge structures, which represent the real generators of business model innovation.
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In many industries, the traditional sources of competitive advantage tend to evaporate fairly rapidly. Therefore, managers need to continually rethink and reformulate their firm strategies. Likewise, scholars have felt compelled to shift the traditional centre of attention from competitive advantage that is sustainable over time to a focus on how firms compete by achieving a series of temporary advantages. However, the proliferation of research on temporary competitive advantage, far from building a solid body of literature, has produced a series of fragmented studies. This condition calls for detecting the state of knowledge in this realm of strategic inquiry. By leveraging the present status of the literature on temporary competitive advantage, we offer a conceptual map of the current inquiry of the antecedents, management, and consequences of temporary competitive advantage. Then, we identify the key implications for strategy theory and discuss the major challenges for cultivating fertile territories in this intriguing area of research.
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Using executive resume data of China’s listed companies between 2006 and 2016, we investigated the relationship between pay disparities within top management teams (TMT) and firms’ innovation performance. Specifically, we assessed two dimensions of pay disparities: vertical pay disparity between CEOs and non-CEO managers, and horizontal pay disparity among non-CEO managers. Considering the difference in regional marketization progress, we also explored the moderating effect of marketization degree on this relation. It is found that: with vertical pay disparity increasing by 1%, firms’ innovation performance is improved by 2.3%; with horizontal pay disparity increasing, firms’ innovation performance is promoted first and then restrained; higher marketization degree strengthens the incentive effects of both vertical and horizontal pay disparity. But the grouped regression results show that, in state-owned enterprises, horizontal pay disparity is only negatively associated with innovation. The theoretical and practical significance of the research is discussed at the end of the paper.
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A large number of researchers are engaged in studying the determinants and consequences of the China–Pakistan Economic Corridor (CPEC). Although optimism abounds, in particular, little empirical evidence is available for Pakistani businessmen and small and medium-sized enterprise (SME) operators on how to benefit from this tremendous opportunity. Our study examined how top managers/owners of Pakistani energy sector SMEs can innovate their businesses to reap the benefits of CPEC. We have examined the influence of demographic factors (age, education, experience, and financial literacy) of top managers/owners on different forms of innovation (product, process, marketing, and organization) and their consequent chances of success through participation in CPEC.
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It has been observed that project-based firms (PBFs) cause serious environmental problems. In order to reduce the negative impact on the environment, PBFs pay more attention to green innovations. This study investigated how top management team (TMT) cognitive framing (i.e. capability development, organizational identity, and corporate social responsibility) and emotional framing (i.e. threat, ambivalence and opportunity) influence the adoption of green innovations in PBFs. Using the method of multi-value Qualitative Comparative Analysis (mvQCA), the research analyzed the data from 29 cases in China. The results showed that in PBFs, the TMT with an expanded cognitive framing and an ambivalent emotional framing and the TMT with a moderately flexible cognitive framing and an opportunity emotional framing will adopt green innovations. On the contrary, the TMT with a moderately flexible cognitive framing and a threat emotional framing and the TMT with a contracted cognitive framing will not adopt green innovations. Six propositions were proposed based on the results. Findings contribute to theory and research on environmental management by highlighting the configurational effects of TMT cognitive framing and emotional framing on adoption of green innovations in PBFs.
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The overuse of natural resources has caused many environmental concerns. Green process innovation (GPI) has been seen as an effective solution that can benefit both industry and society. However, prior studies have not fully examined the contingent mechanisms of the relationship between GPI and both environmental and financial performance. This study fills this research gap. Using the data of 172 manufacturing firms (including 104 state-owned and 68 non-state-owned manufacturing firms) in China, this work investigates the impacts of GPI on both environmental and financial performance, with a particular focus on the moderating roles of top management team (TMT) heterogeneity and firm ownership. The results present valuable findings. First, we found that GPI has a significant positive effect on firms' environmental performance. We also show that although GPI does not improve firms' financial performance significantly in the short term, additional analysis demonstrated that three-year-lagged GPI does indeed have a positive effect on firms' financial performance. Second, we established that strong TMT heterogeneity enhances the link between GPI and firms' environmental and financial performance. Third, we revealed that the relationship between GPI and firms' financial performance is enhanced for state-owned enterprises (SOEs), but, surprisingly, that the link is weakened for SOEs. Overall, the findings of this study present new implications for academics, managers, and policymakers, as they uncover the impacts of GPI on environmental and financial performance by leveraging levels of TMT heterogeneity and firms' ownership status.
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Background Obesity is a known risk factor for cardiovascular disease risk factors, including hypertension and type II diabetes. Although numerous weight loss interventions have demonstrated efficacy, there is considerably less evidence about the theoretical mechanisms through which they work. Delivering lifestyle behavior change interventions via social media provides unique opportunities for understanding mechanisms of intervention effects. Server data collected directly from web-based platforms can provide detailed, real-time behavioral information over the course of intervention programs that can be used to understand how interventions work. Objective The objective of this study was to demonstrate how social network analysis can facilitate our understanding of the mechanisms underlying a social media–based weight loss intervention. Methods We performed secondary analysis by using data from a pilot study that delivered a dietary and physical activity intervention to a group of participants via Facebook. We mapped out participants’ interaction networks over the 12-week intervention period and linked participants’ network characteristics (eg, in-degree, out-degree, network constraint) to participants’ changes in theoretical mediators (ie, dietary knowledge, perceived social support, self-efficacy) and weight loss by using regression analysis. We also performed mediation analyses to explore how the effects of social network measures on weight loss could be mediated by the aforementioned theoretical mediators. Results In this analysis, 47 participants from 2 waves completed the study and were included. We found that increases in the number of posts, comments, and reactions significantly predicted weight loss (β=–.94, P=.04); receiving comments positively predicted changes in self-efficacy (β=7.81, P=.009), and the degree to which one’s network neighbors are tightly connected with each other weakly predicted changes in perceived social support (β=7.70, P=.08). In addition, change in self-efficacy mediated the relationship between receiving comments and weight loss (β=–.89, P=.02). Conclusions Our analyses using data from this pilot study linked participants’ network characteristics with changes in several important study outcomes of interest such as self-efficacy, social support, and weight. Our results point to the potential of using social network analysis to understand the social processes and mechanisms through which web-based behavioral interventions affect participants’ psychological and behavioral outcomes. Future studies are warranted to validate our results and to further explore the relationship between network dynamics and study outcomes in similar and larger trials.
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A platform is a triadic exchanging system with two-sided customers, it faces heterogeneous or even conflicting consumer needs from both sides. According to the theory of inventive problem solving, needs' contradictions are an important source of innovation. Adopting different customer orientation (CO) strategies will affect the platform's utilization of customer needs and thus influence the results of innovation. Our study divides platform CO into one-sided CO and two-sided CO and compares their relative effects on a platform's radical and incremental innovation. We also assess whether the impacts are conditional on the platform's top management team's (TMT) formal and informal status. Archival data from 126 electronic platforms revealed that two-sided CO promotes both radical and incremental innovation, but one-sided CO influences incremental innovation. Furthermore, TMT formal status positively moderates the impact of CO on radical innovation, but TMT informal status negatively moderates the effect of CO on incremental innovation.
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Purpose Although individual exploration activities have been shown to promote organizational change and innovation, few studies have clarified the factors that quantitatively promote such aspects. This study aims to examine how individual exploration activities are facilitated by goal orientation and individual unlearning. Design/methodology/approach The data are analyzed from 1,474 employees in various jobs in a variety of organizations in Japan. This study uses structural equation modeling to test the research model. Findings The results of this study indicate three findings. First, unlearning is effective in promoting individual exploration activities. Second, goal orientation has not only a direct effect on individual exploration activities but also a significant indirect effect on such activities through unlearning. Third, performance goal orientation has an inhibitory effect on individual exploration activities. Practical implications Managers should encourage team members’ exploration activities by setting learning goals for members and providing opportunities for members to unlearn the outdated knowledge or skills they are familiar with and learn new ones. Originality/value These findings contribute to the existing literature by demonstrating that learning goal orientation and unlearning play important roles in promoting individual exploration activities.
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Firm leaders expect their chief marketing officers (CMOs) to have significant impact on firm performance, and boards of directors (boards) consider marketing-related issues critical board-level priorities. Despite the importance of marketers and marketing to firm outcomes, boards do not appear to value CMOs at the strategy-setting level of the firm as they rarely include CMOs in board discussions and deliberations. The disconnect between the importance of marketing and the marginalization of marketers at the board level prompts the following question: How and in what ways may boards impact CMO performance? This research includes two reviews of the extant literature (from 1984 through 2021): (1) board impact on CMOs, and (2) board impact on the satisfaction, performance, and outcomes of the broader top management team (TMT), including chief financial officers, chief information officers, chief operating officers, chief technology officers, and chief strategy officers. We find that only four articles investigate the impact of boards on any functional TMT member’s performance and that none specifically consider how the board may impact CMO satisfaction, performance, and outcomes. Given the lack of research, we create a conceptual framework that links board characteristics to CMO outcomes and develop a research agenda with over 50 questions as the basis to develop scholarship. Importantly, this research highlights the paucity of insight regarding board-level influence on any functional TMT member, including the CMO. Consequently, the model and research agenda can benefit multiple disciplines including marketing, finance, information technology, operations, management, and human resources.
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Prior research examining the consequences of specific performance measurement system (PMS) design attributes is largely focused on processes and decisions at an individual level. We extend this research by examining how PMS design attributes interact with group socio-cognitive processes to influence firm level outcomes. Specifically, we examine how the interaction between two PMS design attributes related to comprehensiveness – scope and integration – and top management team (TMT) cognitive conflict affect the achievement of innovation ambidexterity. Based on cross-sectional data collected from a survey of TMT members of 90 firms operating in innovative industries, we find that PMSs with broad scope positively interact with cognitive conflict, leading to higher innovation ambidexterity, while highly integrated PMSs negatively interact with cognitive conflict, leading to lower innovation ambidexterity. Overall, our study demonstrates the importance of disentangling the interplay of different PMS design attributes with group socio-cognitive processes for understanding how firms achieve innovation ambidexterity.
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In an era of rapid technological advances, individuals have access to a plethora of open and closed forms of problem solving. We introduce and test a framework that compares different forms of problem solving and determines how individuals make choices among them. Our analyses of 4,556 problems solved by 398 individuals reveal that high problem complexity and strong implicit social norms of open exchange increase the probability that individuals will seek external solutions rather than solve the problems themselves. Our analysis also shows that they prefer individual experts (contacted directly or via open call) over aggregated crowd knowledge. We also find that strong implicit social norms of open exchange weakened the positive impact of complexity on the probability of solving problems externally. Interestingly, this effect is more subtle when the use of aggregated crowds is compared with individual experts: while strong implicit social norms strengthen the positive impact of problem complexity when experts are contacted directly, they otherwise weaken the use of open call experts. We discuss and examine the nuanced effects between problem complexity and social norms of open exchange. The study contributes to a stream of the open innovation literature that uses a problem solving perspective to better understand under what circumstances certain forms of problem solving are utilized, and it then combines it with a novel empirical setting based on real-life experimental data.
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The characteristics of top management teams are one of the main factors affecting the innovation performance of a company. In this study, a fixed effect model is constructed by introducing salary and equity incentives as moderating variables, using growth enterprise market (GEM) listed companies as research samples for empirical analysis to explore the impact of different executive characteristics on enterprise innovation performance and the related influencing mechanism. The results show that the different characteristics of top management teams have different influences on the intensity of research and development (R&D) investment efficiency and innovation output. Importantly, equity incentives play a more significant moderating role than salary incentives. After distinguishing the nature of regions, we found that location factors result in different preferences for executives, which will affect the correlation between executive characteristics and innovation performance. We found that, combined with China's unique political system, the impact of team tenure and education level on innovation performance is opposite based on the nature of property rights. Finally, corresponding management suggestions are made covering three aspects: governance structure, incentive scheme, and measures relating to local conditions.
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Drawing on the resource-based view (RBV) of the firm and the top management team (TMT) structural power framework, we investigate the relationship between Chief Information Officer (CIO) structural power and forward-looking firm performance. In addition, we examine the contingency roles of market turbulence, industry IT intensity, and operating efficiency in shaping the above relationship. Using a sample of 7,185 firm-year observations and a panel fixed-effects model, we find that CIO structural power is positively associated with forward-looking firm performance (proxied by Tobin’s q). Further, our results suggest that the benefits of CIO structural power are higher under greater market turbulence, higher industry IT intensity, and greater operating efficiency. Our empirical results imply that the board of directors should consider endowing CIOs with a higher structural power, especially when an organization faces greater volatility in industry sales, competes in a more IT-intensive industry, and operates at a more efficient level. This research contributes to the RBV literature and integrates RBV and structural power frameworks to offer newer insights into the contemporary role of an important TMT member, the CIO.
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This paper reviews the literature pertaining to the effects of the characteristics of top executives on firms’ decisions and outcomes. We focus particularly on research related to executives’ individual characteristics, including their demographic, psychological, and other characteristics. Thereafter, we discuss the literature related to the relationship among executives, particularly the CEO and the CFO, which may affect corporate performance and accounting outcomes. Finally, we identify the gaps in the literature and provide directions for future research. This article is protected by copyright. All rights reserved.
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Drawing upon the stage model of innovation and the ability–motivation–opportunity (AMO) framework, we hypothesize the mediating role of top management team (TMT) creativity and the moderating roles of external social capital and environmental uncertainty in the relationship between TMT creative team environment and a firm’s administrative innovation. We collected multisource data from 136 TMTs and tested the hypotheses using bootstrap method with SPSS 23.0. As hypothesized, TMT creativity mediated the relationship between a creative team environment and administrative innovation. Moreover, external social capital amplified the effect of a creative team environment on TMT creativity and subsequently its indirect effect on administrative innovation via TMT creativity, whereas environmental uncertainty weakened the effect of a creative team environment on TMT creativity and subsequently its indirect effect on administrative innovation via TMT creativity. We advanced team creativity theory and research by showing how internal and external environment jointly shape creativity and innovation. We not only tested the stage model of innovation by showing TMT creativity as a mechanism linking creative team environment and administrative innovation, but also extended it by revealing external boundary conditions for this mechanism. Finally, we contribute to the upper echelon research by revealing the negative role of environmental uncertainty in the TMT creation stage.
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The severity of the COVID-19 pandemic confronts us with a global grand challenge representing an unprecedented crisis for health, economies, and societies. While digital champions are thriving, a large number of businesses and industries have been facing radical uncertainty, pushing some to the edge of collapse. This emergency calls for new ways to look at organizational ambidexterity and business model innovation. In this paper, we present and discuss a unique case study of a low-cost airline, AirAsia. With their fleet of aircraft grounded, and unable to pursue any incremental innovation opportunities, AirAsia decided to follow a radical ambidexterity path – focusing on exploration by building an innovation ecosystem. This case not only offers insights on a novel way to create value through open innovation but also extends the body of knowledge on entrepreneurial effectuation by introducing the concept of an ecosystem effectuation. AirAsia’s case shows that, in financially distressed times, business model reconfiguration may not be enough, and instead of selecting means to attain goals, the goals may be created upon available means.
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Using time-lagged primary data from entrepreneurs in two developing countries (Ghana, N=261 and Ethiopia, N=166), we examine how institutional voids drive entrepreneurs’ advice seeking behavior. Our findings show that higher levels of institutional voids in these developing countries are negatively related to internal advice-seeking but positively associated with external advice-seeking. The results also show that a heightened perception of environmental dynamism negatively moderates the relationship between institutional voids and internal advice-seeking but positively moderates the effect of institutional voids and external advice-seeking. Furthermore, we find that the negative relationship between institutional voids and internal advice-seeking is positive when entrepreneurs develop ties with politicians. The positive relationship between institutional voids and external advice-seeking is amplified when political network connections are stronger. Implications and direction for future research are discussed.
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Purpose The purpose of this paper is to examine the impact of organizational culture on strategic planning and the role of leadership effectiveness in the association between organizational culture and strategic planning in Indian nonprofit organizations (NPOs). Design/methodology/approach Data were collected from 441 respondents using a structured questionnaire. Common method bias was addressed through the use of multiple surveys. Structural equation modeling was used to process the data. Findings Advice-seeking interactions, collaborative culture and an error management culture positively impacted the creation and conceptualization of strategic plans in Indian NPOs. An error aversion culture did not significantly impact the creation and conceptualization of strategic plans. Leadership effectiveness moderated the relationship between “advice-seeking interactions” and the “creation and conceptualization” of the strategic plan, a “collaborative culture” and the “creation and conceptualization” of the strategic plan and an “error management culture” and the “creation and conceptualization” of the strategic plan. Originality/value Strategic management literature on the determinants of the creation and conceptualization of strategic plans is scant. Further, it does not include the influence of cultural constructs such as advice-seeking interaction (ASI), collaborative culture (CC), error management culture (EMC), error aversion culture (EAC) on the creation and conceptualization of strategic plans. This study extends the debate on the culture–strategy nexus to help practitioners understand the importance of organizational culture (advice-seeking interaction, collaborative culture, error management culture, error aversion culture) in creating strategic plans.
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This conceptual article uses dynamic capability theory in small family firms with an aim to provide insights into the market orientation–innovation relationship. The research article synthesizes existing findings from the existing literature on the streams of strategy, marketing and family firms, and proposes an integrated theoretical framework comprising market orientation, potential absorptive capacity, realized absorptive capacity, explorative and exploitation innovation. Furthermore, it addresses existing research questions on the links among constructs and proposes several relationships that may advance current organizational innovation literature. This research article initiates the process of empirical examination of small family firms’ innovation process through this theoretical model. The dynamic capability theory adopted here provides managers with the knowledge on the market orientation–innovation process relationship and dimensions of absorptive capacity that are important for initiating and successfully adopting the innovation process. This research article also fulfils the identified gap in the literature. To the best of the authors’ knowledge, it is the first that brings together and applies research findings from the strategy and marketing literature in small firms’ context and proposes an integrated approach to understand the market orientation–innovation relationship.
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Taking a strategic cognition perspective, this paper studies how a holistic cognitive frame affects radical innovation through two innovation strategies. The results of an empirical study using survey data from 192 Chinese manufacturing firms show that a holistic cognitive frame has a positive effect on the adoption of an architectural innovation strategy, whereas it has an inverted U-shaped effect on the adoption of a modular innovation strategy. In addition, we tested the moderating effects of technological uncertainty and demand heterogeneity. This paper enriches the literature on the antecedents of radical innovation from a strategic cognition perspective and identifies the boundary conditions of the effects of a holistic cognitive frame on radical innovation.
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This paper investigates the relationship between university alliances and firm exploratory innovation in the context of therapeutic product development. We build on organizational learning theory to elucidate that the use of university alliances is more positively associated with firm exploratory rather than exploitative innovation output. Moreover, we argue that the breadth of a firm's technological expertise strengthens the benefits of university alliances in the development of exploratory innovation output. Our empirical analysis is based on a panel dataset of 220 US therapeutic biotechnology firms from 2003 to 2010. Our findings support the contention that university alliances are differentially related to exploratory and exploitative innovation outcomes, and further indicate that firm technological breadth positively moderates the relationship between university alliances and firm exploratory innovation.
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Innovative startups can bring many benefits to society. Drawing on the social network theory (SNT) and resource-based view (RBV), with mix methods approach, this paper argues that as the primary path for startups acquiring external resources, social networks are beneficial to improving innovative startups’ innovation performance. Using a large amount of data from GEM (Global Entrepreneurship Monitor), this paper first runs correlation analysis and regression analysis to empirically analyze entrepreneurs’ social networks’ impact on China’s innovative startups’ innovation performance. The results show that both formal and informal social networks are positively correlated with innovative startups’ innovation performance. Then we consider the moderating effect of entrepreneurial competence and motivation. And the results show both entrepreneurial competence and motivation positively moderate the correlation above. Second, to explore the above correlation’s internal mechanism, we conduct semi-structured interviews with 14 entrepreneurs. Drawing on the resource management theory (RMT) and the process of cross-border knowledge search and assimilation, the mechanism model of entrepreneurs’ social networks on startups’ innovation performance is proposed through content analysis.
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In this paper, exploration and exploitation are conceptualized in terms of a nonlocal-local search continuum in three-dimensional supply, demand, and geographic space. Using cross-sectional data from a wide range of manufacturing industries, we develop and validate an operational measure of the exploration-exploitation concept. In line with theory-based arguments, our analysis suggests that the value of supply-side, demand-side, and spatial exploration and exploitation is contingent on the environment. While boundary-spanning supply-side search is found to be positively associated with innovation in more-dynamic environments typical of the entrepreneurial regime phase of technology evolution, such exploration appears to hurt innovation in less-dynamic environments. In a reverse fashion, while boundary-spanning demand-side search is found to be favorably associated with innovation in less-dynamic environments, it appears to harm innovation in a more-dynamic context. Interestingly, spatial boundary-spanning search seems to contribute to innovation in more- as well as less-dynamic environments. With the caveat that the substantive findings of this study are based on cross-sectional data, we discuss the implications of our work and future research directions.
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Exploration and exploitation have emerged as the twin concepts underpinning organizational adaptation research, yet some central issues related to them remain ambiguous. We address four related questions here: What do exploration and exploitation mean? Are they two ends of a continuum or orthogonal to each other? How should organizations achieve balance between exploration and exploitation-via ambidexterity or punctuated equilibrium? Finally, must all organizations strive for a balance, or is specialization in exploitation or exploration sometimes sufficient for long-run success? We summarize the contributions of the work in this special research forum and highlight important directions for future research.
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This paper advances the understanding of absorptive capacity for assimilating new knowledge as a mediating variable of organization adaptation. Many scholars suggest a firm's absorptive capacity plays a key role in the process of coevolution (Lewin et al., this issue). So far, most publications, in following Cohen and Levinthal (1990), have considered the level of prior related knowledge as the determinant of absorptive capacity. We suggest, however, that two specific organizational determinants of absorptive capacity should also be considered: organization forms and combinative capabilities. We will show how these organizational determinants influence the level of absorptive capacity, ceteris paribus the level of prior related knowledge. Subsequently, we will develop a framework in which absorptive capacity is related to both micro- and macrocoevolutionary effects. This framework offers an explanation of how knowledge environments coevolve with the emergence of organization forms and combinative capabilities that are suitable for absorbing knowledge. We will illustrate the framework by discussing two longitudinal case studies of traditional publishing firms moving into the turbulent knowledge environment of an emerging multimedia industrial complex.(
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We used computer simulations to examine the role and interrelationship between search processes that are forward-looking, based on actors' cognitive map of action-outcome linkages, and those that are backward-looking, or experience based. Cognition was modeled as a simple, low-dimensional representation of a more complex, higher dimensional fitness landscape. Results show that, although crude, these representations still act as a powerful guide to initial search efforts and usefully constrain the direction of subsequent experiential search. Changing a cognitive representation itself can act as an important mode of adaptation, effectively resulting in the sequential allocation of attention to different facets of the environment. This virtue of shifting cognitive representation, however, may be offset by the loss of tacit knowledge associated with the prior cognition.
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rior reviews of the CEO turnover and succession literature suggest that empirical findings on organizational implications continue to be equivocal. In this paper, we develop a conceptual framework for examining the impact of CEO turnover and succession on organizational capabilities. Using the social network perspective as a theoretical lens, we identify conditions in which CEO turnover is expected to influence organizational exploration and exploitation capabilities. We also identify contingencies under which CEO succession will moderate the impact of CEO turnover on organizational capabilities. Our framework provides a useful lens through which to view the consequences of CEO turnover and succession and sheds some light on the equivocal findings to date.
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Demography research rarely examines the black box within which the cognitive diversity of the top management team is assumed to affect firm performance. Using data from 35 simulated firms run by a total of 159 managers attending executive education programs, the current research tested several hypotheses concerned with (a) the relationship between demographic and cognitive team diversity and (b) the reciprocal effects of diversity and firm performance. Results showed that members of high-performing teams tended to preserve multiple interpretations early in the team's life cycle, but that they moved toward greater clarity near the end of the life cycle. These high-performing teams, therefore, exhibited both early interpretative ambiguity and late heedful interrelating. Cognitive diversity in teams affected and was affected by changes in firm performance. Surprisingly, there was no evidence of any effect of demographic diversity on measures of cognitive diversity.
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Why might firms be regarded as astutely managed at one point, yet subsequently lose their positions of industry leadership when faced with technological change? We present a model, grounded in a study of the world disk drive industry, that charts the process through which the demands of a firm's customers shape the allocation of resources in technological innovation—a model that links theories of resource dependence and resource allocation. We show that established firms led the industry in developing technologies of every sort—even radical ones—whenever the technologies addressed existing customers' needs. The same firms failed to develop simpler technologies that initially were only useful in emerging markets, because impetus coalesces behind, and resources are allocated to, programs targeting powerful customers. Projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources. Because the rate of technical progress can exceed the performance demanded in a market, technologies which initially can only be used in emerging markets later can invade mainstream ones, carrying entrant firms to victory over established companies.
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This analysis considers the impact of the top managers in an organization on the organization's outcomes, specifically strategic choices and performance levels. The focus is not on the chief executive alone, but rather on the entire top management team. Using a macro view, these organizational outcomes are perceived to be related to the values and cognitive bases of those high-power individuals in the organization. In developing the model, emphasis is on the background characteristics of the top managers as opposed to the psychological dimensions. A series of propositions that should be tested to support the upper echelons theory are presented. The topics of these propositions include age, functional track, other career experiences, education, socioeconomic roots, financial position, and group characteristics. The creation of this model is just the beginning of the work that is necessary to evaluate and understand the upper echelons theory. Further input is needed from areas such as the executive recruiting industry. Additionally, clinical and statistical studies are both necessary to fully develop this theory. (SRD)
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Why might firms be regarded as astutely managed at one point, yet subsequently lose their positions of industry leadership when faced with technological change? We present a model, grounded in a study of the world disk drive industry, that charts the process through which the demands of a firm's customers shape the allocation of resources in technological innovation - a model that links theories of resource dependence and resource allocation. We show that established firms led the industry in developing technologies of every sort-even radical ones - whenever the technologies addressed existing customers' needs. The same firms failed to develop simpler technologies that initially were only useful in emerging markets, because impetus coalesces behind, and resources are allocated to, programs targeting powerful customers. Projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources. Because the rate of technical progress can exceed the performance demanded in a market, technologies which initially can only be used in emerging markets later can invade mainstream ones, carrying entrant firms to victory over established companies.
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This article investigates, for leadership research, the implications of new directions in social network theory that emphasize networks as both cognitive structures in the minds of organizational members and opportunity structures that facilitate and constrain action. We introduce the four core ideas at the heart of the network research program: The importance of relations, actors' embeddedness, the social utility of connections, and the structural patterning of social life. Then we present a theoretical model of how network cognitions in the minds of leaders affect three types of networks: The direct ties surrounding leaders, the pattern of direct and indirect ties within which leaders are embedded in the whole organization and the interorganizational linkages formed by leaders as representatives of organizations. We suggest that these patterns of ties can contribute to leader effectiveness.
Article
The assumption that 'local search' constrains the direction of corporate R&D is central in evolutionary perspectives on technological change and competition. In this paper, we propose a network-analytic approach for identifying the evolution of firms' technological positions. The approach (I) permits graphical and quantitative assessments of the extent to which firms' search behavior is locally bounded, and (2) enables firms to be positioned and grouped according to the similarities in their innovative capabilities. The utility of the proposed framework is demonstrated by an analysis of strategic partnering and the evolution of the technological positions of the 10 largest Japanese semiconductor producers from 1982 to 1992.
Article
The global technology strategy of Olivetti, a leading European computer firm, is analyzed over the last decade in order to illustrate how high-tech firms undergo transformations which not only tend to destroy their best core competencies, but also affect their very business identity. Task uncertainty is so pronounced that conventional ways of looking at the organizational structures and processes, such as the transaction costs approach or the strategy-structure link, need to be amended in favor of a more dynamic perspective. Such a perspective looks at organizations as platforms, or contexts, out of which specific structures are extracted, tried out and discarded in a pragmatic manner. A platform is a meta-organization, a formative context that molds structures, and routines shaping them into well-known forms, such as the hierarchy, the matrix and even the network, but on a highly volatile basis. Hence, the platform organization may appear to be confused and inefficient but its value lies in its readiness to sport whatever organizational form is required under the circumstances. Platforms are characterized by surprises, and organization members, no matter how they see themselves after the fact, are busy improvising and tinkering. Drawing on similar studies carried out in Silicon Valley, one can draw the conclusion that high-tech firms can survive if they are smart at doing what "savages do daily," i.e., bricolage.
Article
Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
Article
This article contributes to the social networks literature by examining how corporate governance factors influence CEOs' external advice-seeking behaviors. We incorporate insights from social networks research into an agency theory perspective to predict, and demonstrate empirically, that governance factors recommended by agency theory increase CEOs' tendencies to seek out advice contacts who are likely to offer perspectives on strategic issues that differ from their own; these advice-seeking behaviors ultimately enhance firm performance. Accordingly, this article also contributes to the corporate governance literature by describing how and why CEOs' advice networks mediate the effects of governance factors on firm performance.
Article
The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices. At the invitation of the editor, I recap the AMR article in which the theory was originally presented (Hambrick & Mason, 1984), discuss subsequent refinements of the theory, and lay out several promising avenues for future upper echelons research.
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Extending Hambrick's (1994) concept of behavioral integration, a meta-construct of top management team process, we theorized on the extent to which CEO-, team-, and firm-level determinants shape behavioral integration. Using survey data from 402 firms, we developed a reliable measure of the construct and found strong support for our structural model. Although determinants at each level explained some variance in behavioral integration, considering all three levels in concert explained the most variance.
Article
We compare two alternative approaches for evaluating the potential of a work group or team: one that focuses on team members' demographic characteristics and one that focuses on the members' social networks. Given that people's network contacts often share their demographic attributes (i.e., the network is homophilous), the two approaches seem equivalent and the first seems preferable because it is easier to implement. In this paper, we demonstrate several important limits to this rationale. First, we argue and show, in an analysis of 1,518 project teams in a contract research and development firm, that even when internal organizational networks are significantly homophilous with respect to demographic variables, the very logic of the causal structure that underlies theories of demographic diversity carries ambiguous performance implications. This ambiguity is due to the fact that demographic diversity has opposing effects on two social network variables—internal density and external range—each of which has a positive effect on a team's performance. We also demonstrate that a focus on demographic criteria is problematic because the demographic makeup of an organization can place inherent limits on a manager's ability to shape the demographic composition of a team. The ambiguous performance implications and the inherent limits placed on a manager's ability to manage a team's demography reduce the likelihood that a manager's interventions will be successful. The performance implications of managing a team's social capital, however, are clear.
Article
This study examined how top management team diversity variables and debate interacted to influence two measures of company financial performance. Further, it assessed the degree to which decision comprehensiveness mediated those interaction effects. Multi-informant data from the top management teams of 57 manufacturing companies revealed that more job-related types of diversity interacted with debate to influence financial performance, but a less job-related type (age diversity) did not. Decision comprehensiveness partially mediated those effects.
Article
Boards of directors serve two important functions for organizations: monitoring management on behalf of shareholders and providing resources. Agency theorists assert that effective monitoring is a function of a board's incentives, whereas resource dependence theorists contend that the provision of resources is a function of board capital. We combine the two perspectives and argue that board capital affects both board monitoring and the provision of resources and that board incentives moderate these relationships.
Article
This study examines how the movement of top managers across organizations (executive migration) over an 18-year period in the semiconductor industry influences strategic change, specifically, entry into new product markets. Results support the argument that executive migration brings managers into the organization with prior exposure to different products and strategies, which in turn is reflected in subsequent product-market entry decisions by the executive's new firm. Results also show that the effects of executive migration are influenced by attributes of the executive and characteristics of the top management team of the focal firm. The effects of executive migration on product-market entry are stronger when the new managers came from the functions of R&D and engineering, when they reported to the chief executive in their former organization, and when they had greater industry experience. Attributes of the focal firm's top management team also appear to moderate the influence of the new executive. Smaller top management teams and teams with shorter tenures demonstrate a stronger relationship between executive migration and strategic change.
Article
Top-level planning decisions of an organization are examined in the framework of Cyert and March's A Behavioral Theory of the Firm. Six decisions are studied and analyzed in the Cyert-March framework, and some concepts from the behavioral theory of the firm are revised in the light of the results obtained. Major additional criteria suggested as of major importance in the framework of an extended Cyert and March approach are: the impact of multiple organizational levels on decisions; the bilateral bargaining between project proponents and those managers responsible for review of proposals; the influence of technology and general uncertainty in the environment upon criteria for project evaluation; the nature of an active stimulus for search induced by corporate strategy rather than the more passive, crisis-induced stimulus suggested by Cyert and March; the concept of a threshold-level system by which projects quickly are rated or evaluated on multiple attributes; and the Pollyanna-Neitzsche effect, by which ex post uncertainty absorption can be used by firm members to induce a positive-thinking approach to subsequent performance. Although some writers, for example, Ansoff (1965), have noted the empirical evidence presented by Cyert and March dealt primarily with operating decisions, this single field study offers evidence that a broadened Cyert and March approach is useful for understanding decisions that are partly in the broader field of corporate strategy.
Article
When adaptation requires innovation, or the creation of variety, exploration is crucial. High levels of exploration thus imply variance-seeking rather than mean-seeking learning processes. In a study of 56 new business development projects, given high exploration, organizational learning was more effective when the projects operated with autonomy with respect to goals and supervision. As degree of exploration de creased, better results were associated with less autonomy on both counts. This contingent effect persisted even when I controlled for the emergence of deftness and comprehension.
Article
Organizations evolve through periods of incremental or evolutionary change punctuated by discontinuous or revolutionary change. The challenge for managers is to adapt the culture and strategy of their organizations to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment. They must, in other words, create an ambidextrous organization—one capable of simultaneously pursuing both incremental and discontinuous innovation.
Article
Empirical research has typically rested on the assumption that board independence from management enhances board effectiveness in administering firms. The present study shows how and when a lack of social independence can increase board involvement and firm performance by raising the frequency of advice and counsel interactions between CEOs and outside directors. Hypotheses were tested with original survey data from 243 CEOs and 564 outside directors on behavioral processes and dynamics in management-board relationships.
SUMMARY—As the workplace has become increasingly diverse, there has been a tension between the promise and the reality of diversity in team process and performance. The optimistic view holds that diversity will lead to an increase in the variety of perspectives and approaches brought to a problem and to opportunities for knowledge sharing, and hence lead to greater creativity and quality of team performance. However, the preponderance of the evidence favors a more pessimistic view: that diversity creates social divisions, which in turn create negative performance outcomes for the group.
Article
Innovation is a growing source of strategic advantage across a variety of industrialized cultures. Top managers often seek to influence or champion strategic innovations. This study examined the extent to which executive characteristics explains top management influence on product/market (PM) and administrative (ADM) innovations in four Western cultures. The results support the proposition that different executive characteristics explain influence on each type of innovation. The influence process differed across cultures for ADM but not for PM innovations. The implications of this study for practice and research are discussed.
Article
An inductive study of improvisation in new product development activities in two firms uncovered a variety of improvisational forms and the factors that shaped them. Embedded in the observations were two important linkages between organizational improvisation and learning. First, site observations led us to refine prior definitions of improvisation and view it as a distinct type of real-time, short-term learning. Second, observation revealed links between improvisation and long-term organizational learning. Improvisation interfered with some learning processes; it also sometimes played a role in long-term trial-and-error learning, and the firms displayed improvisational competencies. Our findings extend prior research on organizational improvisation and learning and provide a lens for research on entrepreneurship, technological innovation, and the fusion of unplanned change and order.
Article
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Article
Whether an organization has a certain capability is often a matter of degree. Thus, in the context of initial learning of a capability, there is generally no clear-cut or automatic answer to the question of when an organization should be expected to cut back its learning efforts and affirm that the desired capability has been achieved. This paper offers a simple conceptual model for this question, based on the satisficing principle. More specifically, the question addressed is: ‘When does overt learning stop?’—where ‘overt’ learning is understood as being marked by observable allocation of attention and resources to the task of acquiring the capability. The model provides the framework for a discussion of various influences on the aspiration level in the satisficing model, and hence on the nature of the capability that has been achieved when learning stops.Overt learning efforts may be resumed at some time later if external factors operate to lift aspiration levels relevant to the capability. The paper discusses how such ‘re-ignition’ of learning may occur as a result of an organizational crisis, or of the institution of a quality management program. Copyright © 2000 John Wiley & Sons, Ltd.
Article
We integrate the upper-echelons perspective with the attention-based view of the firm by examining the role of attentional orientation of top management teams (TMTs). In the context of airline deregulation, we find that deregulation caused a shift in managerial attention, but that this shift in attention was the greatest for firms that changed the composition and compensation of their TMTs in ways that favored the deregulated regime. We also find that attention partially mediated the relationship between TMT changes and strategy changes. The results of this study shed light on the transformation of industry attention patterns following an environmental shift, and the role of TMT composition and incentive systems in that process.
Article
This study investigates the types of championing processes that explain the innovativeness of 136 internal corporate ventures. Current theory suggests that bottom-up champions create the most innovative ventures. In contrast, this paper argues that both bottom-up and top-down champions are suitable for developing innovative ventures. Using a broadly based sample of Fortune 1000 firms, the study supports both bottom-up and top-down processes including a special dual-role principal champion, who acts both as product champion and organizational sponsor. The functions or roles of these top management and dual-role champions are quite different from bottom-up champions and represent relatively unexplored top-down championing processes. Preliminary results show support for an emerging theory that top management champions arise when ventures are expensive and visible and when they represent new strategic directions or resource reconfigurations for the firm. In contrast, dual-role champions emerge from the firm's upper ranks when an innovative idea is highly uncertain but not technology-driven. The paper proposes an integrative view of championing in which any one of three types of championing processes may be the most relevant for a particular venture, depending on what it needs to achieve innovative outcomes.
Article
The global technology strategy of Olivetti, a leading European computer firm, is analyzed over the last decade in order to illustrate how high-tech firms undergo transformations which not only tend to destroy their best core competencies, but also affect their very business identity. Task uncertainty is so pronounced that conventional ways of looking at the organizational structures and processes, such as the transaction costs approach or the strategy-structure link, need to be amended in favor of a more dynamic perspective. Such a perspective leaks at organizations as platforms, or contexts, out of which specific structures are extracted, tried out and discarded in a pragmatic manner. A platform is a meta-organization, a formative context that molds structures, and routines shaping them into well-known forms, such as the hierarchy, the matrix and even the network, but on a highly volatile basis. Hence, the platform organization may appear to be confused and inefficient but its value lies in its readiness to sport whatever organizational form is required under the circumstances. Platforms are characterized by surprises, and organization members, no matter how they see themselves after the fact, are busy improvising and tinkering. Drawing on similar studies carried out in Silicon Valley, one can draw the conclusion that high-tech firms can survive if they are smart at doing what ''savages do daily,'' i.e., bricolage.