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Beyond the M-form: Toward a managerial theory of the firm
Abstract
Driven by a set of radical changes in their internal and external environments, large global corporations are innovating a new organizational form. Premised on knowledge and expertise rather than capital or scale as the key strategic resource, this new form is fundamentally different from the multidivisional organization that had emerged in the 1920s and had become the dominant corporate model in the post-War years. In this article, we describe this new organization using Asea Brown Boveri (ABB) as an illustration, and highlight its differences from the classic M-form by contrasting its structure, processes and decision-making mechanisms against the models proposed by Chandler (1962), Bower (1970) and Cyert and March (1963). Our conceptualization of this emerging organization is grounded in a managerial perspective that is very different from the disciplinary foundations of existing economic and behavioral theories of the firm. We conclude by arguing for the need to create a 'managerial theory of the firm' that would be more attuned to the premises of the key actors within the firm so as to be able to illuminate the corporate world as seen by managers and encompass the issues that they perceive to be important.
... À partir de l'analyse critique des différents apports théoriques, la Dans le troisième chapitre nous nous posons la question concernant des acteurs internationaux qui travaillent dans des contextes interculturels d'aujourd'hui. Les profils interculturels ont plusieurs noms, par exemple, « global nomads » (McCaig, 1992), « global soul » (Iyer, 2001), « global identity » (Tajfel et Turner, 1986, « global manager » (Bartlett et Ghoshal, 1993), « expatrié de sang » (Delange et Pierre chez Lee et al., 2007)), « multicultural man » Adler (1975 interculturelle les plus répandus au monde qui, à titre critique, viennent tous du monde occidental. D'autres critiques de ces outils sont également présentes dans le dernier chapitre de cette partie. ...
... Les managers comme êtres humains qui changent d'espace matériel selon des buts, d'une manière ou d'une autre, doivent prendre en considération une valeur significative des échanges interculturels. Bartlett et Ghoshal affirment que l'histoire, de l'infrastructure et la culture du pays imprègnent tous les aspects de la vie dans le pays, y compris les normes, les valeurs et les comportements des gestionnaires (Bartlett et Ghoshal, 2003). Tout cela fait partie du management interculturel, un axe de management né en 1980 avec les travaux fondateurs de Hofstede (1980de Hofstede ( , 1991de Hofstede ( , 2003de Hofstede ( , 2013) et de Hampden- Turner et Trompenaars (2003, dont le rôle est de comprendre le fonctionnement de l'ensemble de la culture et de comprendre les conséquences de leurs interactions dans le cadre d'une gestion où on s'approprie des traditions locales tout en les respectant, il a pour objectif « l'amélioration des interactions (inter)culturelles en milieu de travail » (Loth, 2006, p.12 cité chez Chanlat et Pierre, 2018). ...
... La perspective de base était la question de l'implantation de filiales nordaméricaines ou européennes dans des pays « exotiques », l'envoi de cadres « expatriés » (« des professionnels hautement qualifiés s'établissant à l'étranger pour des raisons professionnelles » (Castree et al., 2013;Harrison, 2016)) ou encore le transfert de technologies du Nord, vers le sud ou vers l'est. Les années 2000 nous ont donné de nombreuses recherches sur les diversités culturelles, les recommandations sur les pratiques managériales dans un pays concret (« top best practices ») : comment développer des stratégies d'adaptation et de persuasion, comprendre la logique de négociation de son interlocuteur, déterminer le profil du leader d'équipe projet multiculturel et gérer une équipe interculturelle, anticiper et prévenir les conflits, etc. (Bartlett et Ghoshal, 2003 ;Brake et al., 2002;Hermel, 1993 ;Lainé, 2009 L'approche principale dans les travaux cités est la volonté des auteurs d'identifier des caractéristiques propres à chaque culture. Parallèlement, avec la mise en relief des spécificités culturelles, les auteurs voulaient également souligner les caractéristiques universelles qui sont similaires pour toutes 23 les cultures et qui sont liées au milieu professionnel. ...
L’évaluation de la compétence interculturelle constitue un enjeu majeur en termes de management, la complexité des éléments qui la composent suppose une analyse plus approfondie. Aussi notre recherche démontre les strates de la compétence interculturelle et la typologie des profils interculturels dans les grilles d’évaluation. Cela permet de valoriser l’expérience à l’international et créer une tradition de transmission des connaissances au sein d’une équipe culturellement diverse. Le cadre théorique mobilise trois ensembles de travaux : le premier ensemble s’est formé autour de la littérature sur les caractéristiques des compétences et plus particulièrement la compétence interculturelle, compétence transverse caractérisée par la durabilité, la transmissibilité, la contextualité, la subjectivité et le dynamisme ; le deuxième ensemble reprend la littérature sur l’expatriation abordant les différents porteurs de la compétence interculturelle permettant de classifier 3 profils interculturels : World Citizen, Millennial et Adult Third Culture Kid ; enfin, le troisième ensemble se base sur des approches de l’évaluation des compétences. En travaillant sur l’ensemble de la littérature mobilisée, deux propositions ont été formulées : la première proposition explore les spécificités de l’acquisition des composantes de la CI pour chacun des 3 profils interculturels ; la seconde démontre que les techniques de mise en situation et la comparaison entre pairs favorisent la contextualisation et la transmissibilité dans l’évaluation de lacompétence interculturelle. Dans une approche épistémologique constructiviste, nous avons choisi la méthodologie qualitative en nous appuyant sur les approches ethnographiques et réflexives, dans une démarche abductive. Le terrain choisi, celui des Institutions européennes, nous donne accès aux fonctionnaires européens hautement qualifiés par leur expérience internationale. Le recueil de données a été réalisé avec des entretiens semi-directifs en trois langues différentes (français, anglais, russe) entre 2017 et 2019. Les données ont été compilées dans une base de données et codées de manière ouverte et axiale à l’aide du logiciel Nvivo. Elles ont été traitées par un processus d’analyse de contenu. Cette recherche a permis d’identifier les similitudes et les différences dans l’acquisition des composantes de la CI chez les trois profils interculturels identifiés. Une évaluation formative par le biais de la transmissibilité entre les collaborateurs expérimentés et les novices, permet non seulement d'évaluer la CI, mais d’assurer son développement et le transfert des connaissances interculturelles spécifiques à une entreprise. Cela crée une synergie interculturelle, qualité recherchée dans le monde professionnel international. Nous concluons notre thèse par un apport managérial en termes de management d’équipes multiculturelles et en termes de pratiques RH permettant l’acquisition et l’évaluation de la CI.
... The interest in the individuals running the firm has been very much part of the scholarly considerations within the theory of the firm (Coase, 1937;Florence, 1934;Harbison, 1956;Kaldor, 1934;Machlup, 1946;Machlup, 1967;Monsen and Downs, 1965;Reder, 1947;Robinson, 1934). However, it has never been put together into a clearly-expressed separate theory of the firm; rather, its 'floating' existence in the literature has been observed by Machlup (1967), and then Bartlett and Ghoshal (1993). The early foundations of the managerial theory note that there are diminishing returns to management (i.e. ...
... Similarly, Simon (1979) stressed that the individual's decision-making is subjected to bounded rationality, which limits the utility-maximising behaviour through cognitive and informational limitations. Bartlett and Ghoshal (1993) engage in the task of theorising the firm by examining a multinational enterprise. In particular, they observe that firms are shaped through the roles played by different layers of management, and specifically, by redesigning these roles the traditional inefficiencies of management could be mitigated. ...
... However, it is not stipulated whether training and development should focus on minimising the decision-making role of non-market-oriented owners, rather than transforming them into a skilled management team. Finally, managerial theorisations fail to capture small firms and rely on the development of management levels (Bartlett and Ghoshal, 1993;Monsen and Downs, 1965). As such, it is difficult to apply all tenets of managerial theory to ASOs, as many of them tend to be small or infant firms (Harrison and Leitch, 2010). ...
This paper reviews the key theories of the firm and considers their relevance to studying and understanding academic spinoffs as a special case of firms. The theory of the firm is an important aspect in entrepreneurship literature, as without clear understanding of the parameters influencing firm's behaviour, it remains difficult to predict its decisions to secure sustainable growth and ensure development of the economy overall. The paper considers the contribution of transaction cost theory, managerial theory, resource-based view, knowledge-based view, and dynamic capabilities, to the understanding of the academic spinoff. In essence, these theoretical explanations lend multiple perspectives that offer a greater insight into the academic spinoff firm by illuminating the issues of its boundaries, entrepreneurs, resources, knowledge, and networks. It is concluded that understanding academic spinoffs requires acknowledging this theoretical plurality. In response to this challenge, the paper proposes the Academic Spinoff Theory of the Firm.
... Thus, stakeholder theory is a pragmatic theory. Such theory development has also been argued for by Ghoshal (Bartlett & Ghoshal, 1993;Ghoshal, 2005) and Follett (Fox, 1968). Bartlett & Ghoshal (1993) emphasize that management theories that are empirical in nature and beneficial for managers i.e., theories that come from looking at organisations and the managers rather than from economic models, are required in the management domain. ...
... Such theory development has also been argued for by Ghoshal (Bartlett & Ghoshal, 1993;Ghoshal, 2005) and Follett (Fox, 1968). Bartlett & Ghoshal (1993) emphasize that management theories that are empirical in nature and beneficial for managers i.e., theories that come from looking at organisations and the managers rather than from economic models, are required in the management domain. More recently, Buchholz & Rosenthal (2005) have put forward a framework for stakeholder theory based on the philosophy of pragmatism. ...
... The importance of informing theory through observation and studying the context well has been practiced by Follett (see Fox (1968)) and Ghoshal (Bartlett & Ghoshal, 1993;Ghoshal, 2005). Ghoshal (2005) argues that better theories can be put forward by academics and managers who are pragmatic and are aware of the context that is being theorized. ...
Farmer Producer Organisations (FPOs) are new generation cooperatives that may take multiple legal forms. These organisations are smaller yet more complex than traditional cooperatives. Their complexities may arise from hybrid institutional logic, multiple ownership, and issues of operation and management by members who are farmers, unskilled in managerial and compliance related issues. These organisations, in order to remain viable, require capital and capacity building support, apart from market linkages. Thus, they are embedded in an environment along with several other institution or actors. These actors may be seen as stakeholders in the FPO and may determine its sustainability or viability. Given such a description of the FPO environment, traditional governance and management theories such as agency theory, transaction cost approaches etc. may be insufficient. I propose a stakeholder theory lens to look at FPOs for understanding their management and governance.
... Existing corporate strategy research has provided substantial knowledge on strategy and alignment. For instance, relatedness of incorporated businesses (Rumelt, 1974); strategy, structure, and culture, as well as global-local balance in multinational corporations (Bartlett and Ghoshal, 1993;Hill, 1994;Egelhoff, 1982;Ma et al., 2020;Prahalad and Doz, 1987;Romelaer and Beddi, 2015); cross-functional processes or projects as facilitators of cooperation (e.g. Galunic and Eisenhardt, 2001;Gupta and Govindarajan, 2000;Hansen, 1999;Jarzabkowski and Balogun, 2009;Martin and Eisenhardt, 2010); corporate control styles to manage a group of businesses (Goold and Campbell, 1987;Govindarajan and Fisher, 1990;Hill et al., 1992;Prahalad and Doz, 1998;Rowe and White, 1997); vertical integration (Williamson, 1975;; allocation of resources across businesses (Arrfelt et al., 2015;Bardolet et al., 2010;Bower, 1970;Gupta and Govindarajan, 1986); control of resources across businesses (Helfat and Eisenhardt, 2004;Sakhartov and Folta, 2014;Sakhartov, 2017;Teece et al., 1994;Wu, 2013); and internal cross business subsidization (Billet and Mauer, 2003;Khanna and Tice, 2001;Ozbas and Sharfstein, 2009) have been studied. ...
... This literature offers plentiful insight into how large complex organizations (whether multinational corporations (MNCs), multi-business firms or multiunit organizations operating in an M-form, U-form, CM-form, N-form, Hform, or otherwise) need to balance some kind of centralized and decentralized management of strategy to optimize their performance (e.g., Bartlett and Ghoshal, 1993;Bender et al., 2018;Enright and Subrahamian, 2007;Friesl & Silberzahn, 2012;Foss et al., 2008;Ma et al., 2020;Mack and Szulanski, 2017;Paterson and Brock 2002;Vancil, 1979). The lion's share of these studies emphasizes strategy content, e.g., strategy and structure, resource allocation, and addresses the balance of a global HQ and local country businesses within the field of international business. ...
... In this particular context, considering how to manage corporate and business strategy alignment, and taking impact on business responsiveness into consideration, is therefore crucial when pursuing corporate synergies through increased corporate alignment. This has previously been highlighted in a global-local context in the MNC-literature (e.g., Bartlett and Ghoshal, 1993;Baumgartner and Tippman, 2019;Egelhoff, 1982;Ma et al., 2020;Prahalad and Doz, 1987;Romelaer and Beddi, 2015), and is thus also valid in multi-business firms within one country. This confirms that strategy alignment in the multi-business firm is a complex phenomenon, as are many other strategy challenges, and approaching it as a balance (Csazar, 2018;Eisenhardt and Piezunka, 2011;Price and Newson, 2003;Nickerson and Argryes, 2018) can help multi-business firms perform better. ...
Abstract
Purpose. This thesis contributes to the strategy literature by investigating how multi-business firm strategizing aligns with corporate and business strategy. To fulfill this purpose, the following research question is posed: how is corporate and business strategy alignment balanced in multi-business firm strategizing? The thesis expands the literature of corporate strategy, strategizing, and strategy as process and practice (SaPP) by providing insights into a real life challenge encountered in a global dominant player in the engineering, construction and real-estate industry (E&C). This challenge was voiced as: “how can we align the group of businesses to leverage on our group’s size and diversity without limiting the individual businesses’ responsiveness?”
Design. I describe my approach design as immersed participatory insider research with retrospective reflection and theorizing. The approach contains elements of action research. It was phenomenon driven rather than driven by a gap in theory. As data and theory were explored, gaps in the literature were identified, and questions were formulated and answered. A single case study design was used to explore the extensive and fine-grained data obtained through the privileged access granted me by my employment in the firm studied. I collected data in real time over the course of a three-year strategy initiative. The data included strategy documents, interviews, work material from strategy workshops and meetings, calendars, meeting minutes as well as field notes. Data was analyzed using qualitative methods.
Findings. Corporate and business strategy alignment could be seen as balanced. This balance aimed at enabling corporate synergies by utilizing the size and diversity of a multi-business firm without limiting the responsiveness of the incorporated businesses. In strategizing, this balance had to be continuously managed. Participation in strategizing influenced the balance and afforded ownership of strategies to the businesses, facilitating learning and subsequently firm-specific knowledge, which could then generate synergies. Employing strategy tools in corporate strategizing facilitated a common language as the tools chosen prescribed the outcome format by defining critical concepts used in strategizing. Tools also facilitated comparison and learning from the group perspective. The strategy professionals managing and facilitating of the strategizing process and practices resulted in synergies through common ways of strategizing while still allowing business managers their own strategy agendas.
Aligning corporate and business strategy in terms of process and practices resulted in cost and growth synergies for the corporation without significantly limiting the businesses’ responsiveness while content alignment primarily results in cost synergies and limited business responsiveness.
Conclusion. The findings of this study contribute to the corporate strategy literature, strategizing theory and the strategy as process and practice research stream by explaining how multi-business firms strategize and how different of firms’ approaches to strategizing manages the balance of corporate and business strategy alignment in a variety of ways. By highlighting and combining the process and practice perspectives with corporate strategy, understanding of the domains, both collectively and individually, is increased.
Managerial implications. The findings of the study provide insights into how multi-business firms can enable corporate synergies without limiting the incorporated businesses’ responsiveness. However, organizations may have different levels of ambition regarding synergies, and consequently have different approaches regarding how to manage the balance of corporate and business strategy alignment. Recommendations as to how participation, strategy tools, and strategy professionals can be used in the organizations’ strategizing are offered.
Limitations and future research. Case studies are suitable for probing ‘how’ questions and providing ‘thick’ descriptions. While empirically rich, the findings of this thesis are limited by the context of the single case. Future research is therefore warranted to confirm, contradict or refine the findings and conclusions of this study.
... 'agents' and 'stewards') may deviate from the interest of its owners (cf. 'principals') (Bartlett & Ghoshal, 1993;Grant, 2013;Jensen & Meckling, 1976;Nickerson & Zenger, 2004;Postrel, 2017). It is thus relevant to be vigilant about potential discrepancies between the objective of a firm (from the perspective of shareholders) and how individuals in the firm act. ...
... Second, the observations indicated that knowledge about the business idea and industry recipe could be applied as a kind of motivation mechanism (Baxter et al., 2013;Grant, 1996b;Kalling, 2003a;Malik et al., 2020;Spender, 2014d), to persuade individuals to act on behalf of and for the benefit of Omega (see 4.6.3.2). This mechanism can hence be part of the resolution of problems described in the principal-agent theory, i.e., that agents and stewards in a firm do not necessarily act in accordance with the objectives of its shareholders (Bartlett & Ghoshal, 1993;Jensen & Meckling, 1976;Nickerson & Zenger, 2004). Also, this can be viewed as a contribution to the discussion on collaboration problems (Adler & Kwon, 2002;Johansson et al., 2011;Lindkvist et al., 2011;Postrel, 2017;Tsai & Ghoshal, 1998). ...
This book offers new insights into the process by which individuals in
a firm combine their knowledge to create new products and services.
Typically, previous research have attempted to explain the management
of knowledge integration through the perspective of how various
problem characteristics make a problem more or less difficult to solve.
In contrast, this study explores the strategic dimension of knowledge
integration as a process of a purposeful combination of knowledge.
|| The study was undertaken with a case study research design, in which
the single case (“Omega”) was a joint venture between two participants
in the automotive industry. The purpose of Omega was to develop and
commercialize active safety technology for advanced driver assistance
systems (‘ADAS‘) and autonomous driving (‘AD‘), colloquially referred
to as ‘self-driving cars.’
|| A central theme in the empirical material was that individuals appeared to synthesize three thematic kinds of knowledge (technological, organizational, and commercial) to solve problems in alignment with the objectives of Omega. Moreover, this kind of knowledge typically involved references to both firm-specific and industry-specific aspects of how to manage knowledge integration. This prompted the approach of applying additional theory regarding the business idea (including business models) and industry recipe in a knowledge integration framework. The resulting analysis produced several findings which are quite novel, relative to prior research on knowledge integration. First, the study explores the knowledge-foundation of the business idea and the industry recipe. Second, the study illustrates how this kind of knowledge was applied by individuals for the purpose of solving problems in alignment with the objectives of a firm. Third, the novel
concepts of ‘business idea evolution’ and ‘industry recipe evolution’ were developed to capture how such knowledge was observed to continually evolve during the Omega-case. Fourth, the approach of applying literature on the business idea, business model, and industry recipe in a knowledge integration framework was found to have benefits in both directions.
|| The resulting picture is a more strategic perspective on the management of knowledge integration. A conclusion from this study, therefore, is that the conventional approach of studying the influence from various problem characteristics (the ‘characteristic-driven mode’) needs to be complemented by an alternative mode of explaining the management of knowledge integration: the ‘objective-driven mode.’ In this objective-driven mode, a firm’s ‘strategic context’ (i.e., the objectives and the circumstances for achieving these objectives) is central to the question of how and how not to integrate knowledge effectively.
... This structure allows units to respond quickly to market demands and innovate within their domains. Decentralization enhances flexibility by empowering units to make decisions quickly, but it also adds complexity by creating challenges in aligning strategies and goals across the organization (Bartlett & Ghoshal, 1993). ...
Enterprises operate as complex systems embedded in dynamic environments characterized by global interdependencies, technological advancements, and systemic challenges. This paper examines the critical components, challenges, and resilience strategies necessary for modern organizations to navigate complexity and uncertainty. The COVID-19 pandemic and the global semiconductor shortage revealed vulnerabilities in interconnected supply chains, financial markets, and digital ecosystems, underscoring the need for systemic adaptability. Technological advancements, including artificial intelligence, the Internet of Things, and big data, add layers of operational complexity, demanding robust data management, cybersecurity measures, and seamless integration with legacy systems. The paper highlights the growing demand for sustainable and ethical practices, driven by regulatory pressures, consumer expectations, and advocacy group influence. Businesses are compelled to balance short-term efficiency with long-term adaptability to thrive in a volatile environment shaped by rapid technological, market, and societal changes. Case studies of organizations such as Toyota, Amazon, and Unilever illustrate how viewing enterprises as interconnected systems allows them to address root causes of challenges, implement resilience strategies, and leverage adaptability as a competitive advantage. Theoretical frameworks, including systems thinking, complex adaptive systems (CAS), and the Viable System Model, provide tools for understanding enterprise complexity. These frameworks emphasize interdependencies, nonlinearities, feedback loops, and emergent behaviors that define organizational systems. The paper explores the concept of resilience, emphasizing adaptability, recovery, and thriving amidst disruptions as critical elements of long-term sustainability. Challenges such as resistance to change, coordination across subsystems, and the trade-off between efficiency and resilience are analyzed within the context of enterprise architecture, Normal Accident Theory, and the Swiss Cheese Model. The study advocates for adopting resilience engineering and collective mindfulness to anticipate, detect, and manage errors effectively, ensuring organizational stability and growth. By framing enterprises as dynamic, adaptive systems, this paper contributes actionable insights for building resilience, fostering sustainability, and managing complexity in an era of unprecedented disruption.
... This structure allows units to respond quickly to market demands and innovate within their domains. Decentralization enhances flexibility by empowering units to make decisions quickly, but it also adds complexity by creating challenges in aligning strategies and goals across the organization (Bartlett & Ghoshal, 1993). ...
Enterprises operate as complex systems embedded in dynamic environments characterized by global interdependencies, technol1ogical advancements, and systemic challenges. This paper examines the critical components, challenges, and resilience strategies necessary for modern organizations to navigate complexity and uncertainty. The COVID-19 pandemic and the global semiconductor shortage revealed vulnerabilities in interconnected supply chains, financial markets, and digital ecosystems, underscoring the need for systemic adaptability. Technological advancements, including artificial intelligence, the Internet of Things, and big data, add layers of operational complexity, demanding robust data management, cybersecurity measures, and seamless integration with legacy systems. The paper highlights the growing demand for sustainable and ethical practices, driven by regulatory pressures, consumer expectations, and advocacy group influence. Businesses are compelled to balance short-term efficiency with long-term adaptability to thrive in a volatile environment shaped by rapid technological, market, and societal changes. Case studies of organizations such as Toyota, Amazon, and Unilever illustrate how viewing enterprises as interconnected systems allows them to address root causes of challenges, implement resilience strategies, and leverage adaptability as a competitive advantage. Theoretical frameworks, including systems thinking, complex adaptive systems (CAS), and the Viable System Model, provide tools for understanding enterprise complexity. These frameworks emphasize interdependencies, nonlinearities, feedback loops, and emergent behaviors that define organizational systems. The paper explores the concept of resilience, emphasizing adaptability, recovery, and thriving amidst disruptions as critical elements of long-term sustainability. Challenges such as resistance to change, coordination across subsystems, and the trade-off between efficiency and resilience are analyzed within the context of enterprise architecture, Normal Accident Theory, and the Swiss Cheese Model. The study advocates for adopting resilience engineering and collective mindfulness to anticipate, detect, and manage errors effectively, ensuring organizational stability and growth. By framing enterprises as dynamic, adaptive systems, this paper contributes actionable insights for building resilience, fostering sustainability, and managing complexity in an era of unprecedented disruption.
... While Bower (1970) argues that middle managers are the architects of change, their contribution to business strategy and even how their strategic perspective (Zahra, 1991;Zahra & Covin, 1995) contributes to entrepreneurship is an important research topic. It is argued that the perspectives of these managers contribute to the creation of strategy (Bartlett & Ghoshal, 1993;Nonaka, 1994), strategy implementation as well as strategic entrepreneurship. This situation, which is also a strategy learning process, is also important in terms of talent discovery and efforts to improve the process. ...
Considering its dual focus on creating competitive advantage and utilizing new opportunities, the interest in Strategic Entrepreneurship (SE) research has increased rapidly over the last two decades, and the relationship of this concept with other fields is also under scrutiny. The literature on middle management has also taken its share from this increasing interest. It is argued in the relevant literature that middle manager roles serve as the foundation of the company’s strategic entrepreneurship. The present study aims at showcasing the relationships between the two basic academic disciplines. In order to test this aim, a total of 330 questionnaires were applied to mid-level managers of medium-sized enterprises in Bursa, Sakarya, Istanbul, Kocaeli and Konya provinces operating in Turkey and leading in the automotive supply industry. It is thought that the four basic strategic roles of middle managers significantly relate to the four dimensions that reveal the SE of the enterprises. The successful integration of these two fields can pave the way for the development of a new and important perspective for both researchers and practitioners. Moreover, the implications of the study will shed light on future research and applications on the integration of these two subjects, which are scarce in the existing literature.
... Hence, with its (unilateral) focus on cost, efficiency, risk mitigation and control, it has little to say about value creation (Zajac and Olsen, 1993). It is widely argued that its behavioural assumptions may imply governance forms that do not properly incentivize learning, innovation and creativity (Bartlett and Ghoshal, 1993;Conner and Prahalad, 1996;Ghosal and Moran, 1996;Madhok, 2002;Mayer and Argyres, 2004). Its delimitation to transactions and their governance, rather than value-adding activities, facilitates only a partial outlook on the internationalization of corporate R&D and resource commitment, as it applies mainly to activities that involve transactions. ...
In a globalized economy, multinational enterprises (MNEs) pursue competitiveness through cross-border knowledge exploitation and exploration in international R&D. It is conventionallyassumed that for subsidiaries to effectively access co-location advantages in knowledge milieusabroad, high levels of resource commitment are required. This paper analyses the relationshipbetween resource commitment and access to co-location advantages, first theoretically and thenthrough a case study of two MNEs in high-tech industries. We disaggregate the composite conceptof resource commitment and demonstrate the dimensions accentuated, respectively, by theresource-based view, transaction cost economics and institutional theory. Next, we analyse therelationship between resource commitment and co-location advantages for 11 R&D subsidiariesof the two MNEs. Based on this analysis, we discuss the relationships between the empiricalfindings and the theoretically differentiated resource commitment dimensions. The study findsthat high resource levels are less important for access to co-location advantages than conven-tionally assumed, while the level of commitment associated with allocated resources appearsconsistently to be important, lending more support for the relevance of institutional theory-related dimensions of resource commitment than the resource-based view-related ones. We alsofind support for the claim that more flexible governance arrangements promote access to co-location advantages in asset exploration.
... Schober et al. 2018;Zou et al. 2003). Linear regressions were conducted between MODIS LST measurements to establish linear models and compute the correlation coefficient between two datasets obtained from distinct sources (Bartlett and Ghoshal 1993). They observed temperature data from two highly elevated and two lower elevated meteorological stations (Fu et al. 2021). ...
The Hindukush-Karakoram-Himalaya (HKH) mountain ranges are the sources of Asia’s most important river systems, which provide fresh water to 1.4 billion inhabitants in the region. Environmental and socioeconomic conditions are affected in many ways by climate change. Globally, climate change has received widespread attention, especially regarding seasonal and annual temperatures. Snow cover is vulnerable to climate warming, particularly temperature variations. By employing Moderate Resolution Imaging Spectroradiometer (MODIS) datasets and observed data, this study investigated the seasonal and interannual variability using snow cover, vegetation and land surface temperature (LST), and their spatial and temporal trend on different elevations from 2001 to 2020 in these variables in Gilgit Baltistan (GB), northern Pakistan. The study region was categorized into five elevation zones extending from<2000 to>7000 m asl. Non-parametric Mann–Kendall trend tests and Sen’s slope estimates indicate snow cover increases throughout the winter but decreases significantly between June and July. In contrast, GB has an overall increasing annual LST trend. Pearson correlation coefficient (PCC) reveals a significant positive relationship between vegetation and LST (PCC=0.73) and a significant negative relationship between LST and snow cover (PCC= −0.74), and vegetation and snow cover (PCC= −0.78). Observed temperature data and MODIS LST have a coefficient of determination greater than 0.59. Snow cover decreases at 3000–2000 m asl elevations while increases at higher 5000 m asl elevations. The vegetation in low and mid-elevation<4000 m asl zones decreases significantly annually. The temperature shows a sharply increasing trend at lower 2000–3000 m asl elevations in the autumn, indicating the shifting of the winter seasons at this elevation zone. These findings better explain the spatiotemporal variations in snow cover, vegetation, and LST at various elevation zones and the interactions between these parameters at various elevations across the HKH region.
... (Orlikowski, 2002) suggests that product development competence is embedded in the daily and routine practices of organizational members (Hutchins, 1991) . Non-managerial employees are expected to recognize opportunities (Mintzberg & Waters, 1985) and drive organizational performance (Bartlett & Ghoshal, 1993 The complexity of HR phenomena; constraints imposed by small data sets (AI works poorly to predict relatively rare outcomes); ethical issues and legal constraints, (HR decisions have very serious consequences for employees and fairness is a primary issue. In addition, the legal framework limits the freedom of employers to decide with algorithmbased analytics); employee reaction to management via data-driven algorithms (Frimousse & Peretti, 2019). ...
This study examines the effect of information and communication technology (ICT) on human resource management performance through the mediating role represented by artificial intelligence (AI) within human resource departments and the IT division. Using survey data including 179 respondents and a factor analysis framework, we find that ICT engagement, as measured by management decision support systems, enterprise resource planning (ERP), data access and analysis (DAA) technologies, process support and improvement (PSI) technologies, and communication technologies, has a positive and statistically significant effect on human resource management performance. Similarly, we find that artificial intelligence and information and communication technologies are positively associated with human resource management performance. The results imply that companies should do their best to promote and facilitate the engagement of ICT and AI to improve their HRM performance as well as their information system, which will produce positive results for the company structure.
... Les travaux de Collins et Porras (1996) Toutefois, selon Bartlett & Ghoshal (1993), les formulateurs de la stratégie et les dirigeants sont devenus développeurs de processus organisationnels qui captent l'initiative individuelle de façon à ce qu'elle serve la compétitivité à long terme de l'entreprise. Pourtant, Hedberg, Nystrom & Starbuck (1976), dans un article sur l'auto-renouvellement de l'organisation portant sur la gestion simultanée, énoncent six conditions issues de la tension créatrice entre deux pôles : Ainsi donc, le but de l'entreprise visionnaire est de guider l'initiative individuelle sur le long terme. ...
Cette recherche se propose de mettre en évidence les différentes configurations des visions des entrepreneurs et les modèles d’affaires associés. La problématique de la recherche traitée met en perspective l’historique du secteur social, et tout d’abord, le cas des associations à but lucratif et social au sein du marché. Pour répondre à notre objectif de recherche, le fait de s’appuyer sur le processus méthodologique est une posture épistémologique qui utilise une méthode triangulatoire combinant typologie et taxonomie: la typologie déductive basée sur le cadre théorique en mobilisant le contexte institutionnel, la théorie basée sur les ressources et le courant stratégique de l’entreprise sociale, pour proposer une typologie à huit configurations des visions stratégiques des entrepreneurs du Business Model des publications. Afin d’arriver à l’induction sur un terrain particulier pour présenter à travers l’analyse de correspondance, les configurations quantitatives d’une analyse taxonomique par une double classification en groupes homogènes et non hiérarchiques sur une base constitué par 14 entreprises sociales. Afin d’élaborer une grille de lecture opérationnelle de la vision stratégique que l’entrepreneur a utilisée dans le modèle d’affaire des organisations sociales. Le processus méthodologique mobilisé a aussi intégré une exploration recentrée sur l’étude de cas des entreprises sociales, et ainsi relever les trois configurations du Business Model Social représentées par les profils des entrepreneurs sociaux dénommés « actifs », « bienfaiteurs » et « dominants ». L’analyse des résultats par l’étude de trois cas sociaux des maisons de retraites colombiennes, a permis de présenter les visions stratégiques des entrepreneurs et de montrer la relation avec l’approche RCOV (Demil & Lecocq, 2010) au moyen de modèles statiques et de modèles transformationnels dans le Business Model Social. Enfin, les résultats obtenus seront des éléments de pistes et de réflexion pour les entrepreneurs dans la conduite de leurs entreprises sociales à travers des diverses configurations du Business Model Social
... The importance of informing theory through observation and studying the context well has been practiced by Follett (see Fox (1968)) and Ghoshal (Bartlett & Ghoshal, 1993;Ghoshal, 2005). Ghoshal (2005) argues that better theories can be put forward by academics and managers who are pragmatic and are aware of the context that is being theorized. ...
Theme: Management of cooperatives and farmers' producer organizations and the changing policy, legal and regulatory ecosystem Abstract The increasing importance of value chains and markets in increasing producers' income, reflects the changing contexts of agrarian systems in the twenty-first century. FPOs are business enterprises with an aim to link the members to the market and put a greater share of the consumer rupee in their pocket. However, these organisations are farmer-owned enterprises often dealing in multiple products with limited understanding of business and markets and are low on equity capital. They also are short on skilled managerial staff and are supposed to be built on cooperative principles yet function like private companies. Tackling the complexity thus arising requires other stakeholders that may include, promoting institutions, government agencies, financing institutions, private buyers and forward partners, APMC mandis, academic institutions etc. Examined from a stakeholder theory lens, the FPO is an organisation that is embedded in a system consisting of several other entities. The relevance of a stakeholder theory lens emerges after review of literature indicated that cooperatives have been mostly studied from a perspective of the transaction cost economics with managerial and strategic rationale based on agency theory. Much of this research comes from European and US context. The Indian small and marginal farmers, for whom the FPOs are an important vehicle, the diverse seasonal produce in the rain-fed areas, the dynamics of Indian agricultural markets, the agricultural finance and credit scene, and the challenges of value addition, are very different from those in the west. Interesting questions emerge from the stakeholder perspective, such as how does the FPO co-evolve with the other stakeholders within a given context? How do the stakeholders change with time? How easy or difficult is it to balance social and ecological goals with financial ones? Last but not the least, how do member farmers, the primary stakeholders (and shareholders) of the FPO, benefit from the interaction with other stakeholders? How Ram Rahim Pragati Producer Company Limited (RRPPCL) has been able to turn into profitable enterprise, while never losing sight of their ecological and social commitments can provide pointers for policy level discussion. The current article looks at RRPPCL, an FPO owned by the tribal women in the state of Madhya Pradesh, to understand how it has evolved over the last decade while interacting with its stakeholders. The FPO is promoted by Samaj Pragati Sahyog, an organisation working on poverty alleviation through women-led Self-Help Groups (SHGs), with interventions in the domains of water, soil health and non-pesticide management (NPM) agriculture. With the recent push for the government to establish 10,000 FPOs across the nation, learnings from cases such as RRPPCL can help refine the policies, not only directly related to FPO formation and management but also for 2 agricultural sector in general in areas such as markets and prices, skilled manpower availability, funding and credit availability, value-chain development and sustainable agriculture.
... Because purpose creates an enduring sense of what is driving the organisation, it helps employees to make decisions more quickly than before. 32 A purpose may be very high-level, there are many decisions for companies to make around how much detail should be emphasised or dictated for employees and stakeholders, and how much should be allowed to emerge. An organisational purpose needs to be specific enough to give direction to all stakeholders, but also broad enough to give individuals the flexibility to determine the best course of action in their specific situation. ...
This white paper utilizes interview data to summarize the What, Why, and How of Organizational Purpose as it is being used in business today.
... In this situation, a single business firm with multimarket or multiproduct activities is more concentrated but still said to be diversified. In the broadest sense, diversification contains the composition of a company's portfolio of business units (Bartlett and Ghoshal, 1993;Goold and Luchs, 1996;Puranam and Vanneste, 2016). As of the latest status, LEGO seems to be more concentrated on its core business (i.e., toy industry). ...
The purpose of this paper is to shed light on the digital transformation of LEGO and to figure it out in innovation-oriented growth decisions. To this end, the study here examines the transformation process of the company from diversification to smart specialization strategy in more detail. Besides, where digital architecture for toys requires many innovations at the same time, authors discuss what LEGO does to add value. More importantly, the typologies of innovation strategy elucidate the changes and improvements that foster digital transformation.
... Thus, 25 (twenty-¯ve) articles (Table 3) that showed the main characteristics de¯ned in Table 2 were identi¯ed. Bartlett, CA and S Ghoshal (1993 [4] Dougherty, D (2001). Reimagining the di®erentiation and integration of work for sustained product innovation. ...
The study sought to understand the relationship among organisations, knowledge and complexity so that managers could develop more effective strategies when working with organisational knowledge and complexity. The theoretical framework of the theme was elaborated from Web of Science and then an analysis of identified approximations, relations and boundaries was carried out. Aiming at greater consistency regarding the approximations and boundaries among the studied themes, we sought complex organisations that contemplated knowledge as a resource. The initial search retrieved 95 articles, and after content analysis was performed, we identified 25 articles considering complex organisations as social organisms and knowledge as a resource. In this sense, difficulties were observed regarding the definition of the concept of complex organisation, as well as regarding the understanding of knowledge as a resource. After the analysis of the 25 articles, eight pointed to some characteristic of complex organisations, and this corpus does now allow to relate and identify the impact of knowledge on complexity, or complexity on knowledge. From these considerations, we discuss ways to manage complexity and knowledge as elements inserted in the organisational context.
... Described as the "givers" and "definers" of adaptive organizational culture (Waldman and Yammarino, 1999), CEOs who are transformational leaders are believed to induce organization members to constantly anticipate and adapt to environmental change (Jung, 2003). Conversely, TMT behavioral integration may trigger manager ambidexterity by increasing managerial participation in decision-making (Duncan, 1976;Egelhoff, 1991;Tushman and O'Reilly, 1996) and challenging the strategic status quo of the firm ( Bartlett and Ghoshal, 1993;O'Reilly and Tushman, 2004). Behavioral integration also fosters a culture that allows for deviant behavior, differing opinions, conflicts and ideas (Ling et al., 2008a(Ling et al., , 2008b. ...
Purpose
This paper aims to investigate the effect of transformational leadership (TL), behavioral integration of top management team (TMT) and team conflict on manager ambidexterity behavior.
Design/methodology/approach
Hierarchical linear modeling has been applied to test the degree of influence of TL and behavioral integration of TMT on manager ambidexterity using data collected from 60 chief executive officers (CEOs) and 322 TMT members of small- and medium-sized enterprises in the Chinese electronic commerce industry.
Findings
The results suggest the following: transformational leadership is positively associated with the behavioral integration of TMT and a high level of TMT behavioral integration strengthens the positive relationship between transformational leadership and manager ambidexterity. Also, team conflict moderates the mediating role of TMT behavioral integration in the relationship of transformational leadership to manager ambidexterity.
Research limitations/implications
First, this study does not directly test whether transformational leadership encourages a focus on manager ambidexterity, although the results on behavioral integration draw attention to the usefulness of such leadership. Second, in focusing on manager ambidexterity, this paper omits key variables, especially skills and abilities.
Practical implications
Given that several aspects of leadership can be learned and adjusted, the findings suggest that organizations can improve their individual ambidexterity by helping the CEOs develop and display transformational leadership through training and mentoring. TMTs were found to rely mostly on the behavioral integration approach (collaborative behavior, quality of information exchange and joint decision-making) and team conflict management. Such reliance, in turn, predicts effective team behavioral coordination and subsequent manager ambidexterity.
Originality/value
First, this study goes beyond the current research that focuses primarily on ambidexterity at the inter-organizational alliance, firm and business unit levels. This earlier research lacks a conceptually and empirically validated understanding of ambidexterity at the level of the manager. In contrast, by investigating and examining the antecedents of manager ambidexterity behavior, the study develops an individual perspective to elucidate the ambidextrous mechanisms. Second, the study also contributes by explaining how transformational leadership relates to manager ambidexterity. To date, only limited research has disentangled how transformational leaders enhance managers’ teamwork (e.g. behavioral integration) and how such leaders affect the ambidextrous orientation of managers.
... Firstly, on the fact that organizational scholars have previously typically referred to purpose as organizationally and managerially defined. It can in this respect be defined as knowledge about "the statement of a company's moral response to its broadly defined responsibilities" (Bartlett andGhoshal 1993 in Rey et al., 2019a, b, p. 33). In this definition, purpose is broadly understood as the managerially defined reason for the being of the business itself. ...
Purpose
The paper seeks to illuminate the intersection between doing greater good in the world and the self-disciplining that comes along with it. The paper raises a discussion on how purpose-driven organizations with a sustainability focus should be concerned about internal social sustainability in order to maintain consistency between external purpose and internal well-being of employees.
Design/methodology/approach
This article investigates the interrelations between purpose-driven organizations' quest for social sustainability and internal work conditions exemplified through experiences with work intensification. A governmentality studies approach is applied to investigate how employees' perceptions of doing greater good in the world also become a productive self-disciplining strategy that potentially increases work intensification and simultaneously result in an instrumentalization of working for greater sustainability.
Findings
Working with an organizational sustainability purpose can, in some situations, create dilemmas that may decrease employee well-being as it demands continuous negotiation of boundaries between paid work and free time, meaningfulness and work devotion, self-management and work intensification.
Originality/value
The paper raises a discussion on how purpose-driven organizations with a sustainability focus should be concerned about internal (social) sustainability in order to maintain consistency between external purpose and internal well-being of employees.
... Thus as an organization becomes a multi-business company, it may be broader or narrower in scope. As a strategic business unit contains a single business (/product), or a line of related businesses (/products) with differentiated market segments, diversification differs consistently in composition of a firm's portfolio of business units (Bartlett & Ghoshal, 1993;Goold & Luchs, 1996;Puranam & Vanneste, 2016). As a result, diversification is not a yes/no decision, but rather a matter of degree that falls somewhere in the firm scope (Furrer, 2016: 3). ...
As a service-oriented industry and with its distinctive characteristics, tourism is based on experiences. It is necessary to provide the highest level of service and to keep the quality of interaction at a certain level. In the tourism industry, differentiation and new perspectives are needed in order to increase the quality of experiences and to have a different position in the minds of individuals than competitors. There is a crucial role of efficient management of business processes in order to ascertain this differentiation. Herein, especially in tourism and hospitality industry, the pursuance of new tendencies will provide substantial benefits to the relevant enterprises at all of these processes. From this point of view, with this book, the aim is to guide tourism organizations in terms of improving service encounter processes and quality of experiences by giving crucial tips about current managerial perspectives and practices.
... 33 L'esperienza di Sloan, mitico CEO di General Motors negli anni '20 e '30, è riportata in Sloan (1963), storico best-seller nel campo del management. 34 Una ampia descrizione del ruolo fondamentale avuto da Barnevik nel definire con successo un purpose unificante di una realtà estremamente diversificata e frazionata come il gruppo ABB si trova in Bartlett and Ghoshal (1993). 35 La vicenda di Mario Schimberni alla guida di Montedison è oggetto del libro di Maifreda (2018). ...
Se si escludono gli istanti prodigiosi e singoli che il destino ci può donare, l'amare il proprio lavoro (che purtroppo è privilegio di pochi) costituisce la miglior approssimazione concreta alla felicità sulla terra: ma questa è una verità che pochi conoscono. Primo Levi, La chiave a stella (1978). La chiameremo "la signora". Innanzitutto, perché appartiene sicuramente al genere femminile. In più, perché il suo fascino è fuori discussione, grazie all'intrigante alone di mistero che continua ad avvolgerla (coloro che la studiano e la frequentano più da vicino ne tracciano profili molto diversi). Ancora, perché possiede indubbiamente una forte personalità, tanto è vero che con lei è difficile fare i conti, in senso sia metaforico che letterale. Infine, perché ha una presenza incombente e pervasiva: praticamente nessuno può considerarsi estraneo alla sua influenza. Abita dovunque, parla qualunque lingua conosciuta, la sua età varia da pochi giorni ad alcuni secoli, le sue dimensioni fisiche sono le più diverse. Il suo nome è "Impresa". Avendo appreso da fonte affidabile che la signora aveva in animo di organizzare una festa in suo onore (non le manca una certa inclinazione al protagonismo, va detto), e spinto dall'iniziativa di ImpresaProgetto di aprire un dibattito su di lei, chi scrive ha pensato di mettere in atto un tentativo del tutto inusuale: chiederle un'intervista. Inaspettatamente, la signora ha accettato, pur ponendo alcune precise condizioni. La prima delle quali è consistita nell'avere totale assicurazione che il testo non contenga alcun elemento che possa permettere di riconoscerne l'identità. Si tratta di una condizione condivisa con le amiche e colleghe con cui ha ritenuto doveroso confrontarsi, prima di concedere la sua disponibilità. Di seguito si dà fedele conto di quanto ha risposto alle domande che le sono state poste. Signora, intanto grazie della sua disponibilità, che so essere del tutto eccezionale. La prima domanda che vorrei porle è: quali obiettivi si propone con la festa che intende organizzare?
... Lateral integrating mechanisms include activities that encourage contact between managers of different foreign subsidiaries (O'Donnell, 2000), helping managers to understand the role of each foreign subsidiary in the achievement of the MNC's overall corporate goals. These mechanisms generate increased contact among managers of different internal locations, creating lateral personal networking (Bartlett and Ghoshal, 1993). Vertical integrating mechanisms stimulate the relationship between HQ and subsidiary managers, improving the subsidiary managers' understanding and identification with the HQ perspective (O'Donnell, 2000). ...
This study develops a conceptual model that compares the intensity of the impact of knowledge inflows from peer subsidiaries and from the headquarters in the promotion of a focal subsidiary's innovation activities, moderated by socialization mechanisms and national cultural distance. The authors test hypotheses with a dataset comprised of survey data from 202 multinational corporations (MNC) Portuguese subsidiaries. The results indicate that although knowledge inflows from both the headquarters and peer subsidiaries promote the focal subsidiary's innovations capabilities, headquarters' knowledge transfer is a superior and more efficient source of knowledge in the promotion of a subsidiary's new product development. Moreover, socialization mechanisms, both lateral and vertical integrating mechanisms, act as critical instruments that facilitate the incorporation of the incoming knowledge flows into innovation. This study extends the literature on knowledge transfer in MNCs by exploring how two sources of knowledge transfer, the headquarters and peer subsidiaries, influence a focal subsidiary's new product development, investigating socialization mechanisms and national cultural distance moderating effects.
This case study critically investigates global strategy, competitive positioning and international expansion approaches at The Walt Disney Company. Employing key theoretical frameworks including Porter’s Five Forces integrated with PESTEL analysis alongside Bartlett and Ghoshal’s Transnational Solution model, the assessment evaluates Disney’s adaptability across diverse international markets and assesses impacts from emerging technological and sustainability trends. Study insights inform recommendations to enhance Disney’s sustained competitive advantage and future global performance. By upholding rigorous adherence to ethical, inclusive and environmental principles fully aligned with brand identity, analysis suggests this iconic $88.9 billion media entity can continue delivering growth and magical family entertainment experiences worldwide. The investigation provides a strategic appraisal of how leveraging synergies between Disney’s stories, consumer loyalty and infrastructure can enable responsibly crafted innovations to capture opportunities in dynamic consumer preferences.
The post-COVID-19 era will be characterized by significant amounts of uncertainty in the regulatory, economic, industrial, institutional, competitive, and market environments. A firm’s managerial capability to navigate a maze of intra-organizational conflicts and a dynamic external environment will be key to business recovery in the “new normal.” We present a model that refines and extends the resource-based view by asserting that middle management behavior is a valuable and unique resource bundle that can be leveraged to increase organizational innovation for business success in the post-COVID-19 era.
This article aims to explain the considerable state ownership in listed companies in Norway (SOiN) at present. The extant literature has pointed to alleged national idiosyncrasies to explain this special feature of Norwegian capitalism. The main contribution of this article is a comparative perspective. It shows that most European countries have pursued selective protectionism (i.e., to secure national ownership in key companies). It also shows that financial capital was not crucial for selective protectionism. On this background, the article discusses why state ownership became the mode of selective protectionism in Norway. It argues that the main reason is that large private (often multinational) companies did not develop in the wake of the second Industrial Revolution. Another key reason is that a specific hybrid ownership model that was developed after 1945 became an available institutional solution for securing national ownership after 1990. A common ground and a compromise were found on this model, based both on trust and distrust toward the state: a trust in that the state could operate as a passive and private owner, and a corresponding distrust in the state as an active industrialist and owner.
This paper reflects on the burgeoning yet fragmented research on corporate purpose. Drawing on three actual situations I experienced, I point to three challenges of purpose research that require our scholarly attention to produce research relevant for practice: purpose justification, implementation, and evaluation.
History: This paper has been accepted for the Strategy Science Special Issue on Corporate Purpose.
M-form firms are multidivisional organizations in which each division is a product or geographic unit responsible for its own operations and profit while the corporate head office sets overall strategy and monitors the divisions. The M-form emerged as the dominant organizational design for large corporations in the twentieth century and continues to be so, with variations that include some decentralization of strategy responsibilities to operating units. A positive performance effect of M-form early adoption has been documented, at least for US and UK firms. The effectiveness of the M-form requires appropriate incentive design, good leadership and a division of labour appropriate to the relatedness of the firm’s diversification.
Purpose
The purpose of this paper is twofold: to analyse what theories assume about multinational enterprises (MNEs) when they claim these are superior and to discuss possible explanations for why MNE superiority seems to be dominant in the international business (IB) research field.
Design/methodology/approach
A common theme in mainstream IB theories is that multinational enterprises (MNEs) are superior in terms of cost efficiency and innovativeness compared with other types of organizations. A closer look at transaction cost economics (TCE)/internalization theory, evolutionary theory and dynamic capability theory reveal a bias toward MNE supremacy because of how MNEs are conceptualized as firms and therefore fail to explain the essence of “multinational advantage”. These revelations and the strong dependence on the benevolence to provide unbiased data means that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.
Findings
Although mainstream theories differ when it comes to the building blocks that constitute MNE supremacy, they have one attribute in common: they are silent as to why MNEs are superior compared with, for example, domestic firms or other types of economic agents. Irrespective of whether the focus is the strength of the hierarchy, the skill of managers or a common identity, nothing in the theories tells us that these factors are more pronounced in MNEs than in other types of economic actors.
Originality/value
The paper deals with the issue of multinational advantage. It claims that mainstream theories of MNEs tend to assume, explicitly or implicitly, that MNEs are superior in terms of cost efficiency and innovativeness compared with other types of economic agents. The analysis demonstrates that this tendency is a consequence of how MNEs are conceptualized as firms in the different theories as well as of the strong dependence in IB research on the benevolence of MNEs to provide unbiased data. It is concluded that MNE supremacy posited by mainstream IB theories is as much a rationalized myth as an empirical fact.
Middle managers play a crucial role in implementing digital strategy. They directly influence the success or failure of an organization's digital transformation. They are the enablers of digital strategy implementation and company transformation and sometimes can cast a sabotaging shadow side when not involved and engaged in the process. However, there are ways to engage them and divert their sabotaging behavior.
Building on recent suggestions that business schools’ instrumental (outcomes-focussed) strategies should be replaced by the pursuit of their purpose to enhance the public good, this paper answers the special edition’s call to consider business school futures by presenting a foresight exercise that first conceives, and then illustrates, ways that purpose-driven business schools can extend (deepen and broaden) their external engagement activity. From our review of previous research, we present a new typology of business school engagement approaches that has two dimensions: (a) strategic focus (instrumental-purposeful), and (b) engagement management (organic-co-ordinated). From our scan of the business school environment in the United Kingdom (UK) and France, we illustrate, with empirical examples, the two purposeful engagement approaches in our typology (organic and co-ordinated). These findings indicate a variety of ways that business schools of the future can better enhance the public good through extended engagement.
The United States Congress in 1987 voted to enact the Malcolm Baldrige National Quality Award (MBNQA) with the goal of encouraging U.S. businesses and other types of organizations to approach and deploy effective quality processes in the delivery of their products and services. The MBNQA provides a framework of internal assessment for companies to use in their planning and implementation of quality initiatives. Through this internal assessment process, company leadership gains a better understanding of the alignments/linkages within its operations to modify its processes for meeting or exceeding customer expectations and requirements.
The purpose of the research is to examine the extent of the alignment between strategic planning processes and human resource processes. Eleven manufacturing companies were selected for a site visit. Each of these eleven companies represents a different industry sector, geographical location, and organizational size. A survey, documents search, and personal interviews were used to collect the data.
The observations of the alignment between the two construct categories show mixed results and are dependent upon the specific statistical analysis used. Therefore, research questions R1 and R2 are not confirmed.
Esse artigo apresenta uma relação entre a comunicação da estratégia na média gerência, e o aumento do comprometimento, do engajamento e do desempenho organizacional. A execução da estratégia alicerçada no comprometimento e engajamento das pessoas, a partir das competências da liderança, pode levar a empresa a maximizar o seu desempenho.
This paper provides insights into the dynamics of mandate loss and subsidiary charter development through exploring two research questions on what the characteristics of subsidiary mandate loss are and what roles do intra-MNE actors have in subsidiary mandate loss? The paper is based on a qualitative study of 17 cases of subsidiary mandate losses. The data revealed four distinct patterns of mandate loss depending upon what phase of mandate development the subsidiary found itself: (1) mandate loss due to a combination of failure in the new mandate or a change in the external environment. (2) mandate loss due to competition with sister subsidiaries (3) Subsidiaries shed peripheral mandates to create space and focus on the core activities (4) mature mandate loss due to misfit between subsidiary skills and that of competition in the local market. This paper contributes to the subsidiary evolution literature by elucidating the multiplicity of subsidiary mandate loss and the “prime mover” involvement in mandate loss.
This research aims to study the Green Supply Chain Management Practices (GSCMPs) adopted and the challenges encountered in achieving a closed-loop supply chain in apparel manufacturing companies in Sri Lanka. By adopting a deductive approach and quantitative survey method and using a self-administered questionnaire, the study collects data from 102 Strategic Business Units of apparel companies located in the Western and North Western provinces of Sri Lanka. Descriptive statistics are used for analysing data. Results indicate that only a few companies have adopted all the considered GSCMPs making the supply chain a closed-loop while the majority of companies are focused on few practices. The most adopted GSCMP among the considered companies is green production, and the least adopted practice is green delivery. High transport cost is identified as the most common challenge that restricted companies from achieving closed-loop supply chain, followed by high inventory cost and lack of staff. These findings imply the lacking areas which need to be addressed in achieving a closed-loop supply chain in the Sri Lankan apparel companies.
In the second chapter, a sound understanding of strategic management and its core concepts, definitions, processes, and applications is provided. This is done by a review of relevant strategic management literature. Firstly, the applied methodology for the literature analysis is presented. This section provides an overview on the exhaustive range of approaches and understandings of the strategic management discipline, academic, and practice literature has developed. Included is an overview of historical developments of strategic management from early ancient concepts to modern strategic management. Further, fundamental concepts and three core theories of strategic management, i.e., market-based view, resource-based view, and the institution-based view, are discussed. The chapter also considers arguments opposing and supporting strategic management’s entitlement to exist. Furthermore, the process of strategic management with its four core process steps is introduced. Additionally, the answer to the research question is prepared by introducing factors that affect strategic management, such as institutional factors, market/industry factors, and organizational factors. Eventually, the strategic management process of multinational corporations in the field of tension between internal and external forces is debated along the two dimensions—structure and actors. Furthermore, procedural justice is discussed as organizational response to ensure efficiency in the strategic management process of multinational corporations as well as coordination and control mechanisms as enabler of multinational corporations’ strategic management processes.
Strategic thinking has evolved from a concept predominantly based on analysis, closely integrated with strategic planning, to a broader mindset, yet it remains strongly ‘head based’. The aim of this paper is to explore a context where a broader, more holistic perspective exists, focused on the connection of small- and medium-sized environmental organizations with the natural world, why and how this relationship influences strategic thinking and how it enables organizations to leverage limited resources. The research methodology reflects the rationale that a holistic perspective of strategic thinking is best understood by adopting an interpretivist research philosophy, using an inductive, ethnographic approach, focused on interpreting deep, rich layers of meaning within participant data to inform new theory and existing practice. The triangulated multi-method approach, within an embedded case study setting, comprised 38 individual interviews and 4 workshops (group interviews, participant observation) drawn from 29 organizations across the United Kingdom. The findings indicate that the strategic thinking process is emergent, complex, interconnected, informal and is embedded within pivotal places alongside governance, strategic planning and other key processes. Participants are driven by a strong embodied personal connection with nature, extending well beyond the cognitive dimension (mind) to a diverse range of sensibilities (heart, body and spirit) and share an experiential process of connection that binds them together as purpose- and value-driven organizations. The implication is that a connection to nature underpins all aspects of the strategic processes within participant organizations and is fundamentally important to decision-making at all levels, both strategic and implementational.
Strategic entrepreneurship (SE) has attracted increased research attention, given its dual focus on creating competitive advantage and exploiting new opportunities. While research interest in SE has grown at a rapid pace in the past two decades, understanding of its microfoundations is limited. This conceptual paper contributes to the development of understating from a middle management perspective. It argues that middle managers’ five strategic roles serve as the microfoundations to firm’s SE. It also drills down to explore individual differences as antecedents in shaping these roles. This paper develops a research framework along with fine-grained propositions, aimed to shed light on future research and implications for practice.
Purpose
The capacity to plan, manage and control small and medium-sized enterprises (SMEs) is critical to realising their organisational goals. This paper assesses the effectiveness and perception of budgeting and budgetary control systems among SMEs.
Design/methodology/approach
Relying on the goal-setting theory (GST) and a methodology that accommodates questionnaires, data were collected from 170 manufacturing SMEs located in Cape Town, South Africa.
Findings
Research results affirm that the deployment of budgeting benefits from a positive perception of the value of budgeting and budgetary controls by key SME stakeholders. The study also finds that the perception of budgeting mirrors the level of education of SME operators, as educated respondents understand the value of implementing robust budgeting systems. Despite its focus on manufacturing SMEs, this study suggests that the manufacturing budget is the least utilised budgeting system among these organisations.
Practical implications
The study reinforces the communication power of budgeting and budgetary controls as SMEs and economic agents are not only aware of corporate objectives but are equally incentivised to support the attainment of these objectives.
Originality/value
Despite the extensive application of GST among scholars, its use in budgeting and budgetary control literature, particularly among SMEs in developing contexts, is limited. In line with GST, this study indicates that when agents establish and implement a plan, they are motivated to pursue and realise the set expectations while consistently evaluating themselves for improvement opportunities.
Purpose – The capacity to plan, manage and control small and medium-sized enterprises (SMEs) is critical to realising their organisational goals. This paper assesses the effectiveness and perception of budgeting and budgetary control systems among SMEs.
Design/methodology/approach – Relying on the goal-setting theory (GST) and a methodology that accommodates questionnaires, data were collected from 170 manufacturing SMEs located in Cape Town, South Africa.
Findings – Research results affirm that the deployment of budgeting benefits from a positive perception of the value of budgeting and budgetary controls by key SME stakeholders. The study also finds that the perception of budgeting mirrors the level of education ofSME operators, as educated respondents understand the value of implementing robust budgeting systems. Despite its focus on manufacturing SMEs, this study suggests that the manufacturing budget is the least utilised budgeting system among these organisations.
Practical implications – The study reinforces the communication power of budgeting and budgetary controls as SMEs and economic agents are not only aware of corporate objectives but are equally incentivised to support the attainment of these objectives.
Originality/value – Despite the extensive application of GST among scholars, its use in budgeting and budgetary control literature, particularly among SMEs in developing contexts, is limited. In line with GST, this study indicates that when agents establish and implement a plan, they are motivated to pursue and realise the set expectations while consistently evaluating themselves for improvement opportunities.
The aim of this paper is to examine the role played by external and internal network embeddedness in the headquarters entrepreneurial orientation of multinational enterprises (MNEs), and the role of the latter in MNE performance. Drawing on responses from CEOs in a sample of 143 European MNEs, our study offers evidence for the antecedent role of network embeddedness on headquarters entrepreneurial orientation on the one hand, and for the positive impact of headquarters entrepreneurial orientation on international performance on the other. Our findings contribute to the network view of MNEs in the international business and international entrepreneurship literature by disentangling the complex phenomenon of entrepreneurship in MNEs, partly explained by its multiple embeddedness in external and internal networks, and by studying its impact on international performance.
Evaluation of employees in recent years has gained importance, becoming one of the key processes in organizations. The study shows that the majority of employees is concerned about the results and approaches to the evaluation with skepticism and caution. It is worth mentioning, that some of them feel that they are carried out only due to the allocation of additional financial benefits. When evaluating it is vital to create values based on justice and appropriate criteria, so that the benefits of periodic assessment were distributed evenly among the employees and employers. It should be also remembered, that the assessment should not be associated only with cash prizes, but it should enable promotion and give an opportunity of professional development of staff as well.
Leadership makes or breaks a lean transformation while mismanagement at the middle management level is likely to impede lean sustainability in particular. Although the role of leadership is widely acknowledged in lean, the middle management role remains fragmented in the literature with a limited focus to date. Taking this into account, the purpose of this paper is to gain a holistic view of the middle management role in lean and its influence on organisational transformation. An integrated literature review methodology was adopted to develop an integrated, conceptual model of the middle management role in lean. The results demonstrate that middle managers are protagonists in lean evolution and indispensable for sustainable success. In acting as cultural change agents, middle managers promote continuous improvement and conduce the transition towards a lean organisation through managerial push and soft lean evolvement, shaping and maintaining a continuous improvement-orientated culture by engaging, inspiring and enthusing the wider workforce. The integrative literature review contributes with a six-point integrative, conceptual model of the middle management role in lean, including policy deployment, leader standard work, continuous improvement promotion, self-development, coaching and gemba walks.
Purpose driven companies have developed their corporate culture with a commitment to stakeholders, Sustainable Development Goals, and social responsibility, prioritizing the management of organizational intangibles over capital. The overall objective of this research is to gain knowledge regarding the attention and emotional intensity registered by young Spanish university students when visualizing corporate purpose versus corporate visual identity, as well as the image of the Chairman of the main Spanish companies quoted on the IBEX 35. The techniques of eye tracking and galvanic skin response have been used with 31 Spanish university students. The results suggest that brands with the highest brand equity in the Interbrand (2019) ranking are also the ones that receive the highest levels of attention and emotional arousal, and that a well-formulated corporate purpose is not enough to satisfy the public if company credibility is low due to previous perceptions of an organization.
Public sector organizations face a changing environment and increasing expectations to enhance public value creation, i.e. create value for the public. Scholars and practitioners have repeatedly suggested that these organizations should become more entrepreneurially oriented as a way to respond to these challenges. While in the private sector, antecedents and consequences of a firm‟s entrepreneurial orientation (EO) have been studied extensively, such research in the public sector is rare. Yet, the private and public sectors differ in important ways, which makes the transferability of concepts difficult. Thus, there is a need to better understand antecedents of EO and how EO is related to public value creation in public sector organizations.
To close this gap, this dissertation draws on the corporate entrepreneurship, public entrepreneurship, and public value management literatures to identify relevant antecedents and develop a corresponding model. The model focuses on the middle management level, which is particularly important in achieving entrepreneurial orientation due to its mediating role. Data from multiple levels of Germany‟s Federal Labor Agency, including 250 middle managers, are used to test the model.
Results based on structural equation modeling suggest that five factors influence EO. These are management support, staff motivation, multitude of expectations, the managers‟ localism, and the managers‟ tenure in the current position/department. Furthermore, the data show a strong positive relationship between EO and public value orientation. This study thereby advances the public entrepreneurship and public value management literatures. Furthermore, it contributes to private sector corporate entrepreneurship research by playing back insights. Finally, this dissertation provides suggestions for HR and general managers on how to help their organizations become entrepreneurially oriented and create public value.
Factors impacting the organizational structure of firms have been analyzed often utilizing organizations theory. However, several other theories and perspectives have been proposed as potential alternative means of analyzing organizational structure and functioning. While previous studies regarding organizational structure have utilized such perspectives as adaptation and exchange theory, few studies have utilized population ecology theory, thus leading to the current study. Although population ecology theory is most often used in the biological sciences, many of its principles lend well to organizational analysis. Due to internal structural arrangements (e.g. information constraints, political constraints) and environmental pressures (e.g. legal and fiscal barriers, legitimacy) of an organization, the inflexibility of an organization limits the firm's organizational analysis utilizing an adaptation perspective. The challenges and discontinuities associated with utilizing an ecological perspective are identified, including issues related to the primary sources of change (selection and adaptive learning) and related to differentiating between selection and viability. Utilizing competition theory and niche theory, several models for analyzing organizational diversity are incorporated to address factors not encompassed by ecological theory. By compiling elements of several theories, a population ecology model applicable to business related organizational analyses is derived. (AKP)
What makes organizations so similar? We contend that the engine of rationalization
and bureaucratization has moved from the competitive marketplace to the state and
the professions. Once a set of organizations emerges as a field, a paradox arises:
rational actors make their organizations increasingly similar as they try to
change them. We describe three isomorphic processes--coercive, mimetic, and
normative-leading to this outcome. We then specib hypotheses about the impact of
resource centralization and dependency, goal ambiguity and technical uncertainty,
and professionalization and structuration on isomorphic change. Finally, we suggest
implications for theories of organizations and social change.
For the past 2 decades the person–situation debate has dominated personality psychology and had repercussions in clinical, social, and organizational psychology. This controversy puts on trial the central assumption that internal dispositions have an important influence on behavior. According to emerging views of scientific progress, controversy serves the function of narrowing the field of competing hypotheses. We examine 7 hypotheses that arose during the course of the person–situation debate, ranging from most to least pessimistic about the existence of consensual, discriminative personality traits. The evidence fails to support the hypotheses that personality traits are (a) in the eye of the beholder, (b) semantic illusions, (c) artifacts of base-rate accuracy, (d) artifacts of shared stereotypes, (e) due to discussion between observers (who ignore behavior in favor of verbal self-presentation or reputation), or (f) by-products of situational consistencies. Evidence also fails to support the hypothesis (g) that although traits are related to behavior, the relationship is too small to be important. Research generated by these hypotheses has allowed us to better specify the circumstances under which personality assessments will be valid. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facilitate cooperation. When a lumber mill employs a cabinetmaker, cooperation between specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across markets (or between firms). Two important problems face a theory of economic organization – to explain the conditions that determine whether the gains from specialization and cooperative production can better be obtained within an organization like the firm, or across markets, and to explain the structure of the organization. It is common to see the firm characterized by the power to settle issues by fiat, by authority, or by disciplinary action superior to that available in the conventional market. This is delusion. The firm does not own all its inputs. It has no power of fiat, no authority, no disciplinary action any different in the slightest degree from ordinary market contracting between any two people. I can “punish” you only by withholding future business or by seeking redress in the courts for any failure to honor our exchange agreement. That is exactly all that any employer can do. He can fire or sue, just as I can fire my grocer by stopping purchases from him or sue him for delivering faulty products.
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This paper proposes the use of blockmodelling, a recent development in the field of network analysis, as a complement to traditional methodologies in studying organization structure. Blockmodelling is considered promising because it studies directly the multiple kinds of interactions which constitute organization structure rather than relying on abstractions of global properties (centralization, formalization, span of control etc.). Tests of some of the propositions of James Thompson and Joan Woodward are proposed as examples of how blockmodelling might be used in the study of organization structure.
The basic functions of the corporate headquarters (HQ) multibusiness firms are both entrepreneurial (value-creation) and administrative (loss prevention). The development and implementation of these HQ functions reflect the industries in which the firms operate. Historically, the ability of the headquarters to carry out these functions has determined both the successful paths to growth for a multibusiness enterprise and the limits to that growth.
Organizational context is created and renewed through tangible and concrete management actions. The context, in turn, influences the actions of all those within the company. In this article, we elaborate this theme of an interactive development of context and action that, we argue, lies at the core of a company's management process and is a key influencer of its performance. Based on a longitudinal field-study in one company, we identify discipline, stretch, trust and support as the primary dimensions of organizational context and we describe how each of these dimensions can be developed and how these dimensions, in turn, influence the levels of individual initiative, mutual cooperation and collective learning within companies. Shaping the organizational context, we suggest, is the central task of general managers and we propose our model of context as a way to assess an organization's quality of management.
Global competition is not just product versus product or company versus company. It is mind-set versus mind-set. Driven to understand the dynamics of competition, we have learned a lot about what makes one company more successful than another. But to find the root of competitiveness--to understand why some companies create new forms of competitive advantage while others watch and follow--we must look at strategic mind-sets. For many managers, "being strategic" means pursuing opportunities that fit the company's resources. This approach is not wrong, Gary Hamel and C.K. Prahalad contend, but it obscures an approach in which "stretch" supplements fit and being strategic means creating a chasm between ambition and resources. Toyota, CNN, British Airways, Sony, and others all displaced competitors with stronger reputations and deeper pockets. Their secret? In each case, the winner had greater ambition than its well-endowed rivals. Winners also find less resource-intensive ways of achieving their ambitious goals. This is where leverage complements the strategic allocation of resources. Managers at competitive companies can get a bigger bang for their buck in five basic ways: by concentrating resources around strategic goals; by accumulating resources more efficiently; by complementing one kind of resource with another; by conserving resources whenever they can; and by recovering resources from the market-place as quickly as possible. As recent competitive battles have demonstrated, abundant resources can't guarantee continued industry leadership.(ABSTRACT TRUNCATED AT 250 WORDS)
It is proposed that, within the population of M-form firms, the control systems necessary to realize economic benefits from interrelationships between subunits o f a firm are incompatible with the systems necessary to realize benef its from an M-form type internal capital market. This hypothesis is t ested on 156 large U.K. firms. Questionnaire data are used to classif y the firms according to their internal control characteristics. The findings provide tentative support for the hypothesis. Copyright 1988 by Blackwell Publishing Ltd.
The Social Psychology of Organiz-ing Markets and Hierarchies: Analysis and Antitrust Implications
- K E Weick
Weick, K.E. (1969). The Social Psychology of Organiz-ing. Addison-Wesley, Reading, MA, Williamson, 0. E. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York.
Essence of Decision The Functions of the Executive Managing the Resource Allocation Process. Division of Research
- G T Allison
- Little
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- Ma Boston
- C I Barnard
Allison, G. T. (1971). Essence of Decision. Little, Brown, Boston, MA. Barnard, C. I. (1938). The Functions of the Executive. Harvard University Press, Cambridge, MA. Bower, J. L. (1970). Managing the Resource Allocation Process. Division of Research, Graduate School of Business Administration, Harvard University, Boston, MA.
Strategy and StructureThe functions of the HQ unit in the multibusiness firm
- A D Chandler
- Ma A D Chandler
Chandler, A. D. (1962). Strategy and Structure. The MIT Press, Cambridge, MA. Chandler A. D. (1991). 'The functions of the HQ unit in the multibusiness firm'. Strategic Management Journal, 12, pp. 31-50.
Leadership in Administration
- P Selznick
Selznick, P. (1957). Leadership in Administration. Harper and Row, New York.
Liberation Management
- T Peters
Peters, T. (1992). Liberation Management. Alfred A.
- Kenrick