Article

A Case for Contextual Intelligence

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Abstract

In this perspective, I make a case for entrepreneurs and academics alike to focus on what I have referred to elsewhere as Contextual Intelligence, the ability to understand the limits of our knowledge, and to adapt that knowledge to a context different from the one in which it was developed. As befits this special issue on India, my work was originally motivated by the observation that some patterns, derived from analysis and introspection of data from a small sample of (typically OECD) countries were being presented as being valid ‘out of sample’, that is, applicable more universally, but these did not accord with my own intuition, largely shaped by Indian examples. I review how confronting such anomalies led to the articulation of the idea of institutional voids. This framework helps understand enduring differences in how economies are structured, and in the nature of the entrepreneurial opportunities and pitfalls they present. Superimpose on such enduring but underestimated differences the idea that mental models often persist unaltered, and the case for contextual intelligence becomes clear.

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... In this view, foreign market entry, like other forms of market entry, is explained as a process of opportunity development (Jones, Coviello, and Tang, 2011), which is certainly an entrepreneurial act (Knight and Cavusgil, 2004). EO, defined as the firm's strategic posture relating to the processes and decision-making activities that lead to new market entry (Lumpkin and Dess, 1996), plays a particularly critical role because entering a foreign market requires a completely different mind-set and a business model that enhances the firms capability to adapt to new environments (Khanna, 2014). ...
... Accordingly, foreign market entry can be seen as a learning process in which internationalizing firms experientially learn how to build trust and develop commitments as a precondition of international opportunity exploration (Johanson and Vahlne, 2011;Schweizer et al., 2010). Reflecting on international experiences helps firms realize limits of their existing knowledge on other contexts and adapt their knowledge to different environments (Khanna, 2014). As knowledge about different aspects of business and management play out differently in different countries, existing knowledge will not automatically translate into successful entry to every foreign market. ...
... As knowledge about different aspects of business and management play out differently in different countries, existing knowledge will not automatically translate into successful entry to every foreign market. Therefore, internationalizing firms have to revise their assumptions about foreign markets and key resources, and adapt their operation models by experimenting with new market entry strategies (Khanna, 2014). They can achieve this adaptation with reflective thinking, i.e. rethinking experiences, including both grand experiences of deals and disasters and everyday experiences of minor actions (Gosling and Mintzberg, 2003). ...
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... Most RE practices play out differently in different contexts [15]. Hence, determining effective ways to deal with a given design problem requires contextual intelligence: the ability to recognize and diagnose the plethora of contextual factors inherent in an event or circumstance and then intentionally and intuitively adjust behavior in order to exert influence in that context [16]. ...
... We believe that contextual intelligence can help to overcome paradigm paralysis. The first steps in that adaptation are the toughest: jettisoning assumptions about what will work and then experimenting to find out what actually does work [15]. ...
... Some of the important competencies increasing contextual intelligence and ability to act in complex situations include: 1. Learning to learn [26]. We tend to have very persistent mental models that are not rooted in the facts and that hinder progress [15]. 2. Sensemaking [27], the ability of: 1) coming up with a plausible understanding; 2) testing this understanding with others through data collection, action, and conversation; and then 3) refining or abandoning the understanding depending on how credible it is [28] 2) listening as a participant; 3) respecting the coherence of others' views; and 4) suspending their certainties [29]. ...
... In this view, foreign market entry, like other forms of market entry, is explained as a process of opportunity development (Jones et al., 2011), which is certainly an entrepreneurial act (Knight and Cavusgil, 2004). EO, defined as the firm's strategic posture relating to the processes and decision-making activities that lead to new market entry (Lumpkin and Dess, 1996), plays a particularly critical role because entering a foreign market requires a completely different mindset and a business model that enhances the firms capability to adapt to new environments (Khanna, 2014). ...
... Accordingly, foreign market entry can be seen as a learning process in which internationalising firms experientially learn how to build trust and develop commitments as a precondition of international opportunity exploration (Johanson and Vahlne, 2011;Schweizer et al., 2010). Reflecting on international experiences helps firms realise limits of their existing knowledge on other contexts and adapt their knowledge to different environments (Khanna, 2014). As knowledge about different aspects of business and management plays out differently in different countries, existing knowledge will not automatically translate into successful entry to every foreign market. ...
... As knowledge about different aspects of business and management plays out differently in different countries, existing knowledge will not automatically translate into successful entry to every foreign market. Therefore, internationalising firms have to revise their assumptions about foreign markets and key resources, and adapt their operation models by experimenting with new market entry strategies (Khanna, 2014). They can achieve this adaptation with reflective thinking, that is, rethinking experiences, including both grand experiences of deals and disasters, and everyday experiences of minor actions (Gosling and Mintzberg, 2003). ...
Article
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... Firstly, this entails an ex-ante focus on understanding and structuring the business environment and specific decision-making context. This draws on extant streams of literature, including situational awareness (Endsley, 1995) and contextual intelligence (Khanna, 2014). The business environment can be evaluated on various dimensions. ...
... A recent example here is the work on alternative frameworks for strategy formulation and implementation in a digitized world in the context of new business realities (Gottschalck & Günther, 2017). This translates into the need for senior executives to refocus efforts to develop customized decision-making models, instead of simply trying to replicate existing frameworks with an insufficient appreciation of the contextual factors in which they succeeded in the past (Khanna, 2014;. Senior executives with Framework Proficiency thus focus on the development of tailored decision-making models which place emphasis on the most relevant and impactful questions. ...
... The strategy teams at AutoIntel built and leveraged their local networks to gather not just contextually relevant intelligence, but also in collaboratively building decisionrelevant knowledge in the form of strategic insights. The local networks served as a socio-cultural bridge to provide them with the contextual intelligence (Khanna, 2014(Khanna, , 2015 to understand and interpret developments. Subsequently, AutoIntel continues to leverage the local Intelligence has transformed into a regular and ongoing practice complementing conventional strategy development and implementation. ...
Article
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Dynamic business environments throw up many challenges for senior executives. To make strategic decisions in such environments, it is crucial for them to find the right fit between the intelligence required for decisions, and how their companies gather and process intelligence. This paper conceptualizes a ‘ Decision Intelligence’ framework for achieving such a fit. The four major elements constituting the framework place the emphasis explicitly on senior executives adopting the right decision context, tailoring appropriate decision-making frameworks, innovating the access to diverse sources of intelligence and implementing the decisions proficiently. These elements are illustrated and elucidated by drawing on multiple firm experiences from automotive, agritech, pharma, banking and farming sectors. The paper concludes with a discussion on the major implications on intelligence processing capacity challenges of companies, and what this implies for management education and strategy research.
... Hence, an appropriate research philosophy based on the case method must take into account the complexity of the underlying object in its environment. This is our understanding of creating and developing contextual intelligence based on grounded learning as introduced in the next sections (Mosca & Howard, 1997;Schwarz, 1985; see as well Kutz, 2008;Khanna, 2014). We call this approach the 'Integrated Case Method'. ...
... This does not only include conditions of economic development but of institutional character, physical geography, educational norms, language, and culture (cf. Khanna, 2014;Voigt, 2019). For this reason, in section 3, we develop a wheel of circular knowledge transfer in as a further integral part of the 'Integrated Case Method' to ensure that the business ecosystem is recognised in a casebased curriculum of higher education institutions. ...
... Shortcomings are an oversimplifying "best practice" thinking showing a deficiency in theoretical background or research competence (cf. McKeachie, 1994;Mayo & Nohria, 2005;Khanna, 2014) and a too narrow perspective on a few existing thought patterns and models of a number of big companies (cf. Argyris, 1977, Argyris, 2017. ...
Conference Paper
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In the field of management science and business administration, the case method is gaining ground in research as well as in teaching. Case studies support on the one hand exploratory research and on the other hand problem-based teaching. However, we find that case research and case teaching remain unchained in management study programs and propose to close this gap. We identify an untapped potential of boosting the case method by integrating case-based research and teaching into a discovery and learning journey of applied science. We suggest embedding the 'Integrated Case Method' in the ecosystem of universities to the end of enhancing and intensifying the knowledge transfer between business and the higher educational sector better thereby achieving better learning objectives in higher education. As a result, this approach enables the development of a high level of contextual intelligence and thus helps to avoid the fallacies of teaching based on uniform theoretical content.
... Most RE practices play out differently in different contexts [15]. Hence, determining effective ways to deal with a given design problem requires contextual intelligence: the ability to recognize and diagnose the plethora of contextual factors inherent in an event or circumstance and then intentionally and intuitively adjust behavior in order to exert influence in that context [16]. ...
... We believe that contextual intelligence can help to overcome paradigm paralysis. The first steps in that adaptation are the toughest: jettisoning assumptions about what will work and then experimenting to find out what actually does work [15]. ...
... Some of the important competencies increasing contextual intelligence and ability to act in complex situations include: 1. Learning to learn [26]. We tend to have very persistent mental models that are not rooted in the facts and that hinder progress [15]. 2. Sensemaking [27], the ability of: 1) coming up with a plausible understanding; 2) testing this understanding with others through data collection, action, and conversation; and then 3) refining or abandoning the understanding depending on how credible it is [28] 2) listening as a participant; 3) respecting the coherence of others' views; and 4) suspending their certainties [29]. ...
Preprint
Full-text available
Many of the requirements engineering (RE) difficulties have been argued to be due to the evolving nature of design problems in dynamic environments, characterized by high levels of uncertainty, ambiguity and emergence. It has also been argued that these challenges cannot be solved by focusing primarily on notations, tools, and methods. The purpose of this vision paper is to understand better what kinds of new competencies are needed when expanding RE practices to cope with complex systems in dynamic environments. We intend to achieve our goal by discussing: 1) how increased complexity affects RE practices, and 2) what viewpoints have been found most salient when aligning RE practices with the design problem at hand. Based on our findings, we argue for the importance of contextual intelligence, the ability to recognize and diagnose contextual factors and then intentionally and intuitively adjust behavior. We also outline some of the important competencies that need to be developed for future RE practitioners to deal with complex problems.
... Therefore, in the future, successful leadership will not result from the old paradigms of traditional leadership frameworks (Bolden, 2011;Elkington, Pearse, Moss, Van der Steege, & Martin, 2017;Mehra, Smith, Dixon, & Robertson, 2006), as they are not fully equipped to handle technology's impact on social and business structures. Instead, research reflects that new leadership strategies are required, such as systems thinking (Osborn, Hunt, & Jauch, 2002;Ramosaj & Berisha, 2014;Rios et al., 2018;Schneider, Wickert, & Marti, 2017;Senge et al., 2015) contextual intelligence (Khanna, 2014(Khanna, , 2015Kutz, 2008aKutz, , 2017Kutz & Bamford-Wade, 2013;Leavy, 2013;Masciulli, 2011) and metacognitive strategies (Avolio & Hannah, 2008;Black, Soto, & Spurlin, 2016;Chua, Morris, & Mor, 2012;Davis, Curiel, & Davis, n.d.;Swart, Chisholm, & Brown, 2015). ...
... Understanding the context of leadership is eloquently described in the words of Plato, "the true pilot must pay attention to the year and seasons and sky and stars and winds, and whatever else belongs to his art if he intends to be really qualified for the command of a ship". To lead effectively in today's complex global environment that is reliant on layers of networked systems, context is vital (Khanna, 2014;Masciulli, 2011). Global leadership does not occur without a surrounding ecosystem, and contextual intelligence fosters an understanding of how a leader and context mutually impact each other allowing the leader to consider the dynamic nature of their environment (Osborn et al., 2002). ...
... In their (2005) article, Mayo and Nohria note that, in order to capitalize on the spirit of the times, a leader must have contextual intelligence. In addition, Khanna (2014) posits that to understand the spirit of the times within a leader's sphere, the knowledge that this context shifts based on culture, demographics, economics, as well as other factors, is crucial to effective global leadership. The concept of contextual intelligence was popularized by Yale psychologist Robert Sternberg (1984) in his work on the Triarchic ...
Thesis
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As the world becomes increasingly interconnected through intricate networks in technology-laden environments, leadership has become exponentially more complex. This VUCA (volatile, uncertain, complex, and ambiguous) context disrupts long-held leadership constructs. Historically, leaders have been able to reflect on past decision making to guide their current and future decisions. No longer is this practice viable; leaders now require new skills to lead competently in this rapidly iterating ecosystem. With its challenges, this dynamic environment also offers opportunities for those who are able to capitalize on the next waves of disruption. Social entrepreneurs, tackling the world’s most pressing challenges, are leading systems-wide changes within this technology-driven context. With a heightened awareness of these global issues, employing contextual intelligence to capitalize on new and innovative social solutions through creative destruction enables leaders to exploit this technology-rich landscape to expand their social impact. Consequently, this phenomenological qualitative study utilized semi-structured interviews to investigate the best practices and strategies employed by Ashoka Fellow social entrepreneurs who are leading change successfully within this VUCA context. In addition, this study explored the challenges these entrepreneurs encountered while leading, the ways in which they evaluated their success, the role that technology played day-to-day, and what recommendations they would make to future leaders of systems-wide change. Through this study, 30 key findings surfaced in relation to successful practices and strategies for leading systems-wide change in a technology-rich VUCA ecosystem.
... As our focus is very much on guidelines for forward-oriented contextualization, we contend that this is a suitable theory to underpin the ideas that follow. However, we also acknowledge other important contributions from Brannen (2004) and Khanna (2014Khanna ( , 2015 on contextualization, recontextualization, and contextual intelligence. ...
... By combining phronesis and techne in these activities, we propose a distinct threshold capability that we term translation intelligence. Translation intelligence complements Khanna's (2014Khanna's ( , 2015 contextual intelligence. Although Khanna defines contextual intelligence as the "ability to understand the limits of our knowledge and to adapt that knowledge to a context different from the one in which it was developed," Khanna leaves room for the exploration of the different ways in which knowledge can be adapted to context. ...
Article
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This article presents contextualization as a pedagogic response to the issues of cross-cultural relevance associated with Western management education in non-Western contexts, and with regard to the needs and expectations of non-Western students. Building on a synthesis of threshold concepts and threshold capabilities, this article demonstrates in principle how contextualization is a threshold concept that can help educators and students address the issue of relevance. Translation intelligence is introduced as a distinct threshold capability, which can enable the development of the knowledge handling skills necessary for students’ future management practice. This article posits that contextualization and translation intelligence are valuable to business schools and management educators because they address issues of cross-cultural relevance and by facilitating learning beyond content they equip students with skills which can be employed in their future management practice.
... "Design" does not only refer to a product, so the intelligence that is gathered can contribute to all aspects, including the broader vision on the sustainability problem at hand. The common strategy with emphasis on deep intelligence from one context (Khanna 2014) is well intentioned but problematic since not explicitly considering (global) interconnections implies sacrificing real-life relevance. This negatively affects the quality of the product as well as required time and costs for implementation in multiple markets. ...
... This suggestion respects the importance of contextual intelligence (Khanna 2014) and captures the benefit of the collective intelligence. Improving operational synergy between units during implementation might be worth a consideration. ...
Chapter
If a company aims to contribute to a better world it wants to achieve positive sustainability impact on a large scale. It should then foresee that this large, up till global, scale includes many different and often interconnected manifestations. The authors in this chapter discuss a design approach that takes these different manifestations and connections into account from the start. The resulting architecture for the innovation (product, service and business model) is then more adaptive towards different requirements and settings. This positively affects the scalability for implementation and thus impact in multiple markets. The authors also discuss the implications for the management approach needing to be in line with this design approach, in particular regarding goal setting and level of (de)centralisation. They encourage practitioners as well as researchers to further explore this alignment.
... Context related factors can be influential and even disruptive: for example, a loud background noise within a virtually recreated operating room in e-REAL impacts negatively on the surgical team's ability to communicate and may consequently contribute to their committing an error. The most effective learning occurs through being immersed in context, requiring the ability to understand the limits of our knowledge and action, and to adapt that knowledge to an environment different from the one in which it was developed (Khanna 2014, Guralnick 2018. ...
... Effective team management during a crisis is a core element of expert practice. Medical simulation can contribute enormously to enhance teamwork during a crisis (Gaba, Fish & Howard 1994), fostering situational awareness and contextual intelligence (Khanna 2014) which refers to the abilities to apply knowledge to real world scenarios and situations, as well as cognitive retention of essential steps and procedures to be performed during an ongoing crisis. ...
Chapter
Enhanced reality for immersive simulation (e-REAL®) is the merging of real and virtual worlds: a mixed reality environment for hybrid simulation where physical and digital objects co-exist and interact in real time, in a real place and not within a headset. The first part of this chapter discusses e-REAL: an advanced simulation within a multisensory scenario, based on challenging situations developed by visual storytelling techniques. The e-REAL immersive setting is fully interactive with both 2D and 3D visualizations, avatars, electronically writable surfaces and more: people can take notes, cluster key-concepts or fill questionnaires directly on the projected surfaces. The second part of this chapter summarizes an experiential coursework focused on learning and improving teamwork and event management during simulated obstetrical cases. Effective team management during a crisis is a core element of expert practice: for this purpose, e-REAL reproduces a variety of different emergent situations, enabling learners to interact with multimedia scenarios and practice using a mnemonic called Name-Claim-Aim. Learners rapidly cycle between deliberate practice and direct feedback within a simulation scenario until mastery is achieved. Early findings show that interactive immersive
... Context related factors can be influential and even disruptive: for example, a loud background noise within a virtually recreated operating room in e-REAL impacts negatively on the surgical team's ability to communicate and may consequently contribute to their committing an error. The most effective learning occurs through being immersed in context, requiring the ability to understand the limits of our knowledge and action, and to adapt that knowledge to an environment different from the one in which it was developed (Khanna 2014, Guralnick 2018. ...
... Effective team management during a crisis is a core element of expert practice. Medical simulation can contribute enormously to enhance teamwork during a crisis (Gaba, Fish & Howard 1994), fostering situational awareness and contextual intelligence (Khanna 2014) which refers to the abilities to apply knowledge to real world scenarios and situations, as well as cognitive retention of essential steps and procedures to be performed during an ongoing crisis. ...
Chapter
Enhanced reality for immersive simulation (e-REAL®) is the merging of real and virtual worlds: a mixed reality environment for hybrid simulation where physical and digital objects co-exist and interact in real time, in a real place and not within a headset. The first part of this chapter discusses e-REAL: an advanced simulation within a multisensory scenario, based on challenging situations developed by visual storytelling techniques. The e-REAL immersive setting is fully interactive with both 2D and 3D visualizations, avatars, electronically writable surfaces and more: people can take notes, cluster key-concepts or fill questionnaires directly on the projected surfaces. The second part of this chapter summarizes an experiential coursework focused on learning and improving teamwork and event management during simulated obstetrical cases. Effective team management during a crisis is a core element of expert practice: for this purpose, e-REAL reproduces a variety of different emergent situations, enabling learners to interact with multimedia scenarios and practice using a mnemonic called Name-Claim-Aim. Learners rapidly cycle between deliberate practice and direct feedback within a simulation scenario until mastery is achieved. Early findings show that interactive immersive visualization allows for better neural processes related to learning and behavior change.
... Entrepreneurship faces multiple contexts -both locational and chronological -yet this is sometimes not evident in research (Wadhwani & Jones, 2014;Welter, Gartner, & Wright, 2016;Zahra & Wright, 2011). Khanna (2014) has commented on how little attention management scholars more generally have given to context, often suggesting that management practices can be applied uniformly across geographies. Khanna stressed the need instead of contextual intelligence, which recognized that context is usually different between regions and countries, as well as over time. ...
... Khanna stressed the need instead of contextual intelligence, which recognized that context is usually different between regions and countries, as well as over time. Khanna argues that institutions, broadly defined, form an important component of the context, but so do "aesthetic preferences, attitudes towards power, beliefs about the free market, and even religious differences" (Khanna 2014). ...
Chapter
International business (IB) as a discipline has given limited attention to contemporary grand challenges of inequality, global warming, aging populations, endemic health crises, and de-globalization, in all of which multinationals are either central to the problem or may offer some solutions. A historical perspective makes clear the reason for this neglect. IB theory and implicit assumptions were shaped during the discipline’s formative period during the 1960s and the 1970s. This has left it excessively focused on the growth of manufacturing multinationals, and with naïve assumptions about the linear and benevolent progress of globalization. This mental toolkit is ill-equipped to understand the present. Engaging deeply with history can also enhance the contextual intelligence of IB. IB’s founders barely questioned the positive impact of multinationals, yet historical evidence points to many negative outcomes, and to globalization driving inequality. Understanding how implicit assumptions and biases arose is the first step to re-set IB with research questions and methodologies relevant to a turbulent and de-globalized age.
... Technical practices could be leveraged when behavioral practices are a firm's foundation. This argument implies that advanced technologies or equipment may not necessarily lead to best practices in emerging markets, but best practices depend on contextual and behavioral factors (Khanna, 2014). Empirical evidence from companies in developed countries has shown that behavioral GSCM practices play a strategic role in improving performance (Cho et al., 2017). ...
Article
Recently, companies in emerging markets have implemented green supply chain management (GSCM) practices to tackle environmental issues. Drawing upon socio-technical systems theory, this study develops a conceptual model suggesting a sequential effect between two distinct categories of GSCM practices, namely behavioral (human and soft aspects) and technical (tangible and hard aspects) practices, on performance. We employ structural equation modeling method to test hypotheses based on survey responses from 200 Chinese manufacturers. The categorization of behavioral and technical GSCM practices and research findings contribute to the GSCM literature. Statistical results demonstrate the complete mediation effect of technical GSCM practices (e.g., green design, green manufacturing and reverse logistics) on the relationship between be-havioral GSCM practices (e.g., relationship with customers and suppliers) and organizational performance. Such results recommend that companies in emerging markets should highlight behavioral GSCM practices first and then implement necessary technical GSCM practices to reap economic, environmental and operational performance.
... Although this procedure is fairly common, it belongs to one of the most rewarding ones in scholarship: "There is nothing wrong with the analytic tools we have at our disposal, but their application requires careful thought. It requires contextual intelligence: the ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed" 19 . ...
Article
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In 2016, experts estimated that there were still over 43000 cruising locations worldwide, but the numbers have decreased considerably by now. This article intends to provide a theory that can help to understand this trend as well as the evolvement of cruising since its modest beginnings in the 18th century. It analyzes the impact of publications by flâneurs in the following centuries and that of the Situationist movement in the 1950s. In addition, the impact of social media on the significance of public queer space is discussed.
... 77 And when companies create insight from data, and use it to drive business decisions, this implies so-called context-based intelligence, i.e.; The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed". 78 Context-based intelligence and the convergence of personal data are closely related, as the later enables the former and that every time an app or service is used, it creates additional data that feeds into services in what can be likened to a feedback loop. ...
Preprint
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We analyze mobility within cities from the perspective of data acquisition and how location-based-services enable companies to set demand and preferences in a geographic context. A key aspect is that movement creates context-based-intelligence when it becomes possible to adjust advertisement and offers based on location, activity and social-context. In terms of impact on on business modeling, we find that a primary impact is that on value proposition and marketing. Smart-devices enables a constant connection and a two-way dialog between company and customer. It will be increasingly important for retailers to effectively reach customers with offers that are continuously updated to maximize the likelihood of a purchase through behavioural-based pricing. Data driven business models are transforming the insurance industry as data from wearable devices and social-media activity determine life-insurance premiums, and car insurance is set by where and when a car is driven. Similarly, credit-risks are now determined through an understanding of purchasing patterns and account-flows, rather than credit-scores. Another category of business impact is that created by the ability to measure device performance and usage. This impacts the entire corporate value chain – notably through outcome-based contracts and servitization when large data and increasingly advanced analytics makes it possible decrease risks associated with guarantees, insurance and leasing contracts. Incrasingly, concerns are raised over both the impact on privacy and cybersecurity, in addition to fairness when pricing is becoming increasingly individualized. We cover the risks, implications and the challenge associated with the fact that even as consumers state that they are concerned about privacy, they also value getting relevant content that is enabled by consumer profiling.
... The most effective learning occurs through being immersed in context. Experience is lived and perceived as a focal point and as a key crossroad (Guralnick, 2018;Khanna, 2014). ...
Article
Full-text available
e-REAL is enhanced reality for immersive simulation. It is a system where physical and digital objects co-exist and interact in real time, in a real place and not within a headset. e-REAL allows for an advanced simulation within a multisensory scenario, based on challenging situations developed by visual storytelling techniques. The e-REAL immersive setting is fully interactive with 3D holographic visualization, talking avatars, electronically writable surfaces and more: people can take notes, cluster key-concepts or fill questionnaires directly on the projected surfaces. Learners rapidly circle between deliberate practice and direct feedback within a simulation scenario until mastery is achieved. So far, the early findings show that visualization, if linked in interactive ways to the learners, allows for better neural processes related to learning and behavior change. Keywords: enhanced reality; augmented reality; virtual worlds; advanced simulation.
... In fact, in a rapidly changing complex environment and in global marketplaces, there is a need for a model that helps to understand the limits of one's knowledge and adapt that knowledge in a different context from the original one (Khanna, 2014). This is what Contextual Intelligence (CI) means. ...
... The paper also makes a theoretical contribution by providing an understanding of institutional pressure on BIM implementation in an infrastructure project within the context of a developing country. Since knowledge from developed countries might be invalid in developing ones (Khanna, 2015), more studies in developing contexts are necessary to improve our understanding of institutional theory. The findings illustrate how different institutional pressures combined to ensure the implementation of innovation in the case study. ...
Article
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Many of today's building designs are created based on three‐dimensional modeling technology. Architects and engineers use so‐called building information modeling (BIM) systems to create digital representations of buildings. Inspired by the improvements in building construction projects, a Vietnamese construction project team decided to use the system to model a large‐scale bridge crossing the Saigon River in Ho Chi Minh City, Vietnam. This paper provides an understanding of how the project team adopted BIM as the first BIM pilot project in Vietnamese infrastructure construction and analyzes the influence of institutional pressures. The findings reveal how the BIM champion of an international engineering consultancy led the project team to overcome challenges posed by local construction requirements and how the local partner adopted BIM technology under strict time and quality constraints. The case study presents an example for other infrastructure projects that involve BIM.
... Although these studies point to the contribution of management to performance in specific settings and industries, it may be inappropriate to apply management practices uniformly across nations, or even industries. In addressing this question, Khanna (2014) stresses the importance of context, claiming that, "[t]rying to apply management practices uniformly across geographies is a fool's errand, much as we'd like to think otherwise." Examining cross-country differences, Crossland and Hambrick (2011) emphasize the role of formal and informal institutions in determining managerial discretion across nations. ...
Article
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We investigate the international transfer of managerial know‐how by analyzing manager migration patterns in the setting of international soccer. We characterize a country's managerial know‐how by estimating a stochastic frontier model, which relates the country's soccer performance to socio‐economic and climatic conditions. We find evidence of learning‐by‐hiring in that hiring a migrant manager hailing from a high know‐how country is beneficial to the destination country's performance. Larger cultural distance between the migrant manager and destination country reduces the effectiveness of learning‐by‐hiring, but this effect is moderated by the migrant manager's prior international experience. The transfer of managerial know‐how contributes to the overall convergence of low performing versus high performing soccer countries. In this study we ask whether firms in developing countries, which often suffer from having low quality management practices, can improve their performance by hiring managers from developed countries, who may implement better management practices. We investigate this in the context of national soccer team competition because this allows us to track the performance of migrant managers very precisely over time. We find that hiring a migrant manager from a developed soccer country improves the performance of the developing host country. This performance improvement is smaller when the migrant's country of origin is culturally very different from the host, but migrant managers with extensive international experience are able to overcome this negative effect of cultural distance. This article is protected by copyright. All rights reserved.
... Too often, seemingly generalisable market-based solutions which require entire ecosystems to succeed stumble at the myriad obstacles along the fault lines of socioeconomic disparities (Rodríguez and Urbanos-Garrido, 2016). To design workable solutions to new crises rooted in intractable problems, contextual intelligence must be added to sound strategies and scientific management (Khanna et al, 2010;Khanna, 2014). ...
Book
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The Special Edition of European Scientific Journal with title "Public Policy in times of Pandemics" in which we are Guest Editors, is ready. In 266 pages of the Special Edition, the authors analyse the public policies which are tackling the pandemic. We want to thank the Editorial Office of ESJ and the authors who submitted their papers. We are looking forward to continuing the research. #politicalscience #publicpolicy #publichealth #healthpolicy #efficiency #covid19 #ethics #research #health #healthcare #covid #management #medicine #economics #work #medical #security #administration
... To investigate these questions, we need contextual intelligence (Khanna, 2014) and also contextual variations of terms such as political hazards and experiential learning (Delios & Henisz, 2003;Muehlfeld et al. 2012). EMFs and their managers need to establish relations with well-connected brokers or intermediaries within regional networks to compensate for their inadequate experience due to their nascent MNC status (Kemeny et al., 2016;Shi et al., 2014). ...
Article
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The growth of outward foreign direct investment from emerging markets has led to increased scholarly attention on the internationalization of emerging market firms (EMFs). We break from the recent strategic approach on internationalizing EMFs to develop a problematization approach, which permits us to introduce a geographic relational perspective. We use this perspective to highlight process thinking, complex social realities, and relational practice as means by which to better develop theory on the internationalization of EMFs. Our emergent approach emphasizes the need to view EMF internationalization as deeply situated in multifaceted contextual influences, as influenced by path dependence and as manifested in practice. These three relational tenets (contextuality, path dependence, and practice) are central to our geographic relational approach’s ability to generate new challenging research questions for understanding EMF internationalization. Consequently, we add novelty to the international business domain by bringing space and process to the forefront of the EMF research agenda.
... The country in which the firm operates relates to its macroenvironment, determining the behavior of a firm ( Khanna, 2015 ). Different countries are associated with political and environmental differences ( Hansen and Coenen, 2015 ). ...
Article
As industrial sustainability measures and interventions play a central role in enhancing the sustainability performance in industrial firms, it is of great importance to properly understand the factors that might influence the decision-making process leading to their adoption, namely barriers and drivers. However, there is scarce empirical literature discussing barriers and drivers to industrial sustainability as well as the effect of contextual factors or of the firm's approach towards sustainability issues. For this reason, we conducted an exploratory investigation in 26 small and medium enterprises operating in the chemical and metalworking manufacturing sectors across Germany and Italy. Our preliminary findings show that the sampled firms are mainly hindered by economic barriers and fostered by external drivers. The investigation highlighted the influence of the contextual factors sector, country, and size on the perception of barriers and drivers. Moreover, the presence of a dedicated manager for sustainability, the number of certifications held by a firm, and a holistic definition of sustainability, seem to affect the barriers and drivers perceived by the sampled industrial decision-makers. The paper concludes by offering insights to both theoretical and practical discussion over the adoption of industrial sustainability measures, while also providing additional knowledge to practitioners and policy makers on critical areas for the improvement of industrial sustainability.
... These learnings result in shared knowledge, which, in turn, helps network members explore and exploit internationalization opportunities (Johanson and Vahlne, 2009;Sarasvathy et al., 2014). As experiential knowledge is developed through long-time experience of working under specific conditions and enhanced with relevant skills and capabilities (Khanna, 2015), it provides a solid foundation for firms' successful performance (Johanson and Vahlne, 2009). Experiential knowledge also facilitates SMEs' adaptation to the international markets (Vahlne and Johanson, 2017) because reflections upon their direct experiences enable SMEs to handle uncertainty (Blomstermo et al., 2004;Cope, 2011) and to cope with failure (Politis and Gabrielsson, 2009) in the foreign contexts with insufficient information. ...
Article
Purpose This paper aims to investigate the mediating role of founders/managers’ logic of control in transforming experiential knowledge and human capital into successful international performance of small- and medium-sized enterprises. Design/methodology/approach Using a quantitative methodology, this study used hierarchical regression analysis to test the hypotheses. Findings Drawing upon effectuation theory, the study proposed and found empirical evidence for the logic of control as an important mechanism that transforms experiential knowledge and human capital into international performance. Originality/value This study contributes to the international entrepreneurship (IE) research by investigating how the application of logic of control by SME founders/managers enables them to make use of their experiential knowledge and human capital as important intangible means to achieve successful international performance. The study tested the model in New Zealand wherein SMEs play a central role in economic development and depend heavily on international markets for survival and growth.
... Too often, seemingly generalisable market-based solutions which require entire ecosystems to succeed stumble at the myriad obstacles along the fault lines of socioeconomic disparities (Rodríguez and Urbanos-Garrido, 2016). To design workable solutions to new crises rooted in intractable problems, contextual intelligence must be added to sound strategies and scientific management (Khanna et al, 2010;Khanna, 2014). ...
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The special edition Public Policies in times of Pandemics constitutes a special anniversary edition of the European Scientific Journal (ESJ). The outbreak of the pandemic caused by the new coronavirus COVID-19, threatened the life and health of individuals and especially the vulnerable groups of the population. In the face of this threat, governments have designed and implemented public policies to halt the development of the pandemic and to adapt individuals to the new strict labor and social requirements. These policies have been implemented in a wide range of activities in the fields of health, economy, travel, research against the pandemic, public awareness as well as fight against misinformation and solidarity among states. These policies have been implemented with specific measures aimed at ensuring acceptable results in terms of epidemiological indicators. The modification of the process of providing health services by the primary and secondary units of the health sector, the restriction of the movement of the citizens, distance work, the modification of the budgets, the acceleration of the research for the forthcoming vaccine, the information provision and the treatment of the opposers’ movement, are some of the measures taken in accordance with the policies for the combat of the pandemic. The implementation of the measures that have been taken in accordance with the health policies has caused specific results in tackling the pandemic, but has also caused a wide range of potentially adverse effects on work and social activities. The special edition intends to study in detail the public policies designed and implemented by governments to tackle the pandemic. In this context, it intends to study the history of these policies in similar cases, the discussion and decisions leading to these policies and the comparative study of these policies among different countries or groups of countries. Both the beneficial results of these policies as well as their side effects. The methods that will be used in the papers of the special edition, can be extended in a wide range. The topics that will be studied and for which manuscripts will be submitted, indicative and not exhaustive can be the following: 1) Health policies employed by governments to face the pandemic. 2) Economic policies implemented by governments to address the particular economic conditions that occur under the influence of the pandemic. 3) Policies that affect the travel and movement of individuals (including refugee groups) to limit the spread of the coronavirus. 4) Policies that affect the work landscape (distance working, protection of special groups of the population) for the prevention of the coronavirus infection. 5) Health research policies as modified under the particular conditions created by the pandemic. 6) Information provision policies applied to inform the public and ensure that appropriate measures are taken to prevent the coronavirus. 7) What are the public policies during the pandemic and how are the procedures for their design and implementation modified. 8) Public policy analysis and pandemic conditions. 9) Policies to combat misinformation. 10) Policies for supranational (European or International) solidarity.
... Too often, seemingly generalisable market-based solutions which require entire ecosystems to succeed stumble at the myriad obstacles along the fault lines of socioeconomic disparities (Rodríguez and Urbanos-Garrido, 2016). To design workable solutions to new crises rooted in intractable problems, contextual intelligence must be added to sound strategies and scientific management (Khanna et al, 2010;Khanna, 2014). This paper takes a capability-based approach to supply-chain optimisation and crisis management. ...
Article
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Background: The distribution of healthcare resources across local and global communities has triggered alarms throughout the COVID-19 pandemic. Injustice and inefficiency in the transfer of lifesaving medical supplies are magnified by the urgency of the public health crisis, ramified through pre-existing socioeconomic tensions, and further aggravated by frictions that plague international cooperation and global governance. Aim: This article explores the ethical and economic dimensions of medical supplies, from the microcosm of distributive algorithms to the macroscope of medical trade. Methods: It first analyses the performance, strategy, and social responsibility of ventilator-suppliers through a series of case studies. Then, the authors seek to redress the need-insensitivity of existing distributive models with a new price-based and need-conscious algorithm. Next, the paper empirically traces the exchange of medical supplies across borders, examines the effect of trade disputes on medical reliance and pandemic preparedness, and makes a game-theoretical case for sharing critical resources with foreign communities. Conclusion: The authors argue that the equitable allocation of medical supplies must consider the contexts and conditions of need; that political barriers to medical transfers undermine a government’s capacity to contain the contagion by reducing channels of access to medical goods; and that self-interested public policies often turn out to be counterproductive geopolitical strategies. In the post-pandemic world, the prospect of medical justice demands a balanced ethical and economic approach that cuts across the borders of nation-states and the bounds of the private sector and the public sphere.
... A growing body of literature on frugal innovations may contribute to both literature on SCs in developing countries and humanitarian and development aid SCs research. This type of research would encourage researchers to understand the limits of their knowledge and to adapt their knowledge to an environment different from the one in which it was developed (Khanna, 2014). In line with Saldanha et al. (2015), we believe we should shift toward changing our mental models developed primarily in western industrialized countries and begin conceptualizing context-specific models that are sensitive to the local institutional environments. ...
Article
Purpose The institutional logic in developing countries is changing from aid toward trade, having implications for institutionally embedded supply chains (SCs) and their members. The purpose of this study is to investigate the transition from aid toward trade through a theoretical lens of institutional logics and the implications of changing logics for SC members and designs. Design/methodology/approach This is a large-scale qualitative study of the SCs of maintenance and repair operations (MRO) of water points. Empirical data were collected via 53 semi-structured interviews, observations, including photographs, and field notes from several echelons of MRO SCs in ten different Ethiopian districts. Findings In spite of the same underlying tenet of a unidirectional trajectory toward a business logic, the study shows that the co-existence or constellation of different institutional logics resulted in diverse practices that impacted SC design. Research limitations/implications The research was carried out in the MRO SC at a time of changing institutional logics, thereby being able to study their transition or constellation of logics. Practical implications The research has implications for policymakers and development practitioners: when designing and implementing rural water supply programs, the presence of co-existing logics and the lack of uniform SC designs should not be viewed as a hindrance. In fact, the study showed how constellations of logics can provide ways through which water points continue functioning and providing clean drinking water to the communities. Originality/value Few studies so far have focused on institutional logics and their implications for SC design.
... Early simplification enabled them to focus and develop a solution that worked with the particular user group in mind. That solution was then based on contextual intelligence (Khanna, 2014), i.e., deep knowledge of a specific context. By reasoning in this way however, a system that is open was simplified into a closed system that can be controlled much better because of its limited scope. ...
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Today, most challenges designers face are complex. One way industrial design engineers have learned to deal with this complexity is to simplify the problem early on—for example, by focusing on one particular context, e.g. user group. Variations are typically addressed, but preferably inside the simplified design task or even after initial success has been achieved and a path has been set out. A range of authors have suggested ways to address variations during the design process. This paper contributes to exploring this notion of variation by presenting an approach that emphasises contextual variation early on, clarifying the design task before the design process, in a narrow sense, begins. This enables designers to seize opportunities that reveal themselves before a final path is set. Based on real-life cases and discussion of existing literature, the value of this approach for an industrial designer’s arsenal is explored and guidance for next steps is offered. Keywords: context variation, complexity, design arsenal, variation of the design task, design approach
... As a result of cost-cutting, frugal innovation fits within the low-medium cost of development and overlaps with copycat, reverse, and value innovations (see Figure 2). The market novelty of such products may vary from low (e.g., the Jaipur artificial prosthetic foot, which was created using rubber, wood and tire cords for under US$45 (Arshad et al., 2018)) to high (e.g., Narayana Health in Bangalore, which offered heart bypass surgeries for US$1,500 by introducing just-in-time, an 'assembly line' medical staff rotation combined with cost cutting in all aspects of operations) (Khanna, 2014). ...
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Research conducted in the innovation field lags behind organizations' general technological development and innovativeness. Literature that previously depicted innovation types in developed markets is markedly different from progressively publicized emerging market innovation types. While capital-abundant firms tend to engage in respective pioneering and incremental innovation loops, resource-constrained firms and firms in emerging countries may partially free-ride on existing products and services through innovations such as copycat and frugal. To date, there have been no attempts to holistically consolidate product and service innovation types into one overarching typology. Using novel methods of text mining and co-citation analysis, this study systematically maps three decades of product and service innovation scholarship to provide a typology of eight major product and service innovation types. This is further supported by case study analysis to demonstrate how these innovation types fit into the cost vs market novelty matrix. This study is unique in its methodological proposition to systematically review the innovation scholarship of more than 1,400 articles through comprehensive, quantified, and objective methods that offer transparent and reproducible results. The study provides some clarity regarding the classifications and characteristics of the innovation typology.
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This essay contends that honors education should seize the opportunity to expose our students to the horrors of our society such as “the violence against those among us with the least amount of power.” We can affirm our curricular foundation (writing, reflection, and critical thinking) by supplementing it with histories of oppression in order to better equip our students with the tools necessary to become change agents. Such a shift in curricular content and pedagogies could engender changes in our institutional practices that model successful collaboration across races, cultures, and disciplines for our students, ultimately leading the way to a more just university. Our investment in our students’ ability to take the lead in interrupting oppressive patterns, challenging the status quo, and becoming change agents will lead to a more just society.
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Despite the vast amount of research on business model innovation, little is known about what decision-makers must consider while innovating access-based business models in the context of frontier markets. To address this research gap, we develop a comprehensive framework for access-based business model innovation in frontier markets. A participative observation approach is adopted to collect the data on the case study of Microlets, a shared mobility service in Timor-Leste, for validating the framework. We successfully demonstrate the application of the proposed framework to show how access-based business model innovations can minimize issues such as accessibility and affordability, and spur economic growth by giving importance to the factors of contextual intelligence. Three different business model innovation options were compared across the differentiating factors surrounding the contextual requirements of the frontier market to validate the relevance of our framework. By examining factors such as the institutional environment, industry dynamics and infrastructural development, the proposed framework will guide decision-makers to cope up with the inherent uncertainty of frontier markets while developing access-based business models.
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According to the springboard perspective, emerging market multinationals seek strategic assets aggressively from the outset. In this paper, we investigate the role of firms’ institutional embeddedness in terms of age and affiliation to business group on their aggressive internationalization pursuits, an issue which has remained less explored in international business scholarship. This study, based on 8163 Indian listed firms over 18 years, identifies a trend that younger firms founded in the liberalized era, post 1991, and unaffiliated firms are more likely to pursue aggressive internationalization by conducting their first cross-border acquisition (CBA) faster. Among affiliated firms, younger ones are relatively faster in conducting their first CBA. Furthermore, the evidence signals a moderating impact of inter-group heterogeneity in terms of group-level assets and foreign investments on the relationship between firm age and aggressive internationalization.
Chapter
It remains to be seen how the recent October 2018 election will affect Brazil’s economy and foreign multinational corporations aiming to enter and operate in this market. The election has offered Brazilian voters two extreme political choices: Fernando Haddad of the left-wing Partido dos Trabalhadores (PT) party, supported by the popular former president Luiz Inácio Lula da Silva who campaigned for Haddad out of prison while serving his 12-year sentence, and Jair Bolsonaro of the Partido Social Liberal (PSL), a right-wing populist. The election of the latter as the new president, which resulted in a drastic shift of Brazilian politics to the right, raised both concerns and hope in the country. President Bolsonaro’s populist campaign, which has widely been compared with the populist campaign and political rhetoric of US President Donald J. Trump, and the selection of a far-right former army captain as Vice President, one who shares Bolsonaro’s nostalgia for Brazil’s military dictatorship from 1964–1985, are reasons for considerable concerns about a new wave of far-right, authoritarian-style government in the country as well as in Latin America (a wave that has also recently been evident in other parts of the globe). However, the country’s moribund economy and systemically corrupt political environment called for a change in Brazil after nearly 15 years of left-wing rule. The new president’s selection of a University of Chicago-trained free-market economist, Paulo Guedes, as his economic advisor and new finance minister is sending signals of hope that the long-needed economic and financial reforms will be realized, similar to the Milton Friedman-style free-market reforms that were implemented in Chile under General Augusto Pinochet, who came to power in 1973 after overthrowing socialist president Salvador Allende.
Chapter
This chapter outlines some of the basic opportunities, conditions, and strategic options for firms operating in emerging markets. Increasing FDI figures show that emerging markets offer many opportunities for foreign investors, but also pose specific challenges for doing business. Some factors are more abundant and less expensive, especially low to medium-skilled labor and natural resources, while sophisticated services are more difficult to obtain. A specific characteristic of emerging markets is the lack of business-enabling intermediaries. Therefore, foreign MNEs frequently need to fulfill tasks that are not within their range of activities in their home countries. Additionally, many governments in emerging economies act slowly and erratically; and laws are often not enforced systematically. In this context, foreign MNEs can choose between acquiring a local company, partnering up, or going it alone. The chapter looks at the pros and cons of these modes of internationalization and presents some concluding comments on the flexibility required by working under such conditions.
Chapter
Multinational Corporations (MNC) face the challenge of compete in the new interconnected business environment. In particular technology is recognized as a factor that boost productivity and competitiveness and drives the business connectivity which in turn involves cross-borders goods, services and financial flows. MNC is recognized as being possessed of high-tech assets, and also, resources including capital, management skills and R&D capabilities and subsidiaries can get them, from its holding company, and they transfer technology to local businesses. A knowledge transfer, running parallel to the technology transfer take place benefiting to the local economy. Foreign Direct Investment (FDI) is considered as the primary vehicle to facilitate technology transfer (and underlying knowledge flows) toward emerging countries. The ultimate goal of the MNC is related to leverage technology and knowledge transfer in order to maintain a competitive edge and move toward even higher value-added activities.
Article
Purpose In this paper, the authors undertake a systematic analysis of multinationality–performance ( M-P ) literature published in the last decade, when antecedents for internationalization and moderators of the M - P relationship had attained a center stage in international business and international management research. Though M - P relationship is one of the most widely studied topics within international business literature, so far synthesis of the entire theoretical landscape is missing in extant literature. Design/methodology/approach Through keywords search process, the authors found 111 studies in management literature that look at internationalization, its antecedents, performance of internationalized firms, and moderators of the M - P relationship. The focus of this study is to identify theoretical foundations used to explain the antecedents and moderators in M - P relationship, in order to suggest the future research direction for the field. The authors classify the antecedents and moderators based on their theoretical underpinnings not only to identify commonly used theoretical foundations in the last 10 years of international strategy research but also to highlight potential areas for future research. Findings The authors’ analysis indicates that research on international strategy in the last decade was dominated by theory testing in the context of developed economies. The authors’ review suggests that majority of the antecedents and moderators in the M - P relationship are anchored within institutional theory, organizational structure, resource-based view, social capital, and upper echelon theory. Originality/value The authors’ findings are indicative of a rich research potential of M - P relationship in the contextual research setting of emerging markets while leveraging more diversified theoretical bases and multiple levels of research design.
Article
In this paper, we show how international tenders act as defining moments in building asymmetric coevolution-based mechanisms between Chinese multinational enterprises and local institutions in developing African countries. We used a case study methodology to explore how three Chinese multinationals – Citic, Sinopec, and Chinalco – developed non-market relations with the institutions of three African countries, namely, Algeria, Gabon and the Republic of Guinea, both during and after the submission of international tenders, to win strategic contracts and securely embed the company in question within the target host country. We found that Chinese companies not only submit tenders, but also develop multiple kinds of alliances in order to influence local institutions over the long term, transplant new business practices and standards, and expand in an unparalleled way, with host-country institutions and Chinese MNEs acting as partners in the new ecosystem. Based on our findings, we propose a model which highlights the specific mechanisms through which successful coevolution processes emerge and prosper between Chinese multinationals and developing country institutions. This study contributes to the international management literature by extending the field of institutional theory to co-evolutionism in international business.
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In the field of management science and business administration, the case method is gaining ground in research as well as in teaching. Case studies support on the one hand exploratory re-search and on the other hand problem-based teaching. However, we find that case research and case teaching remain unchained in management study programs and propose to close this gap. We identify an untapped potential of boosting the case method by integrating case-based re-search and teaching into a discovery and learning journey of applied science. We suggest em-bedding the ‘Integrated Case Method’ (ICM) in the ecosystem of universities to the end of en-hancing and intensifying the knowledge transfer between business and the higher educational sector better thereby achieving better learning objectives in higher education. As a result, this approach enables the development of a high level of contextual intelligence and thus helps to avoid the fallacies of teaching based on uniform theoretical content.
Chapter
Multinational Corporations (MNC) face the challenge of compete in the new interconnected business environment. In particular technology is recognized as a factor that boost productivity and competitiveness and drives the business connectivity which in turn involves cross-borders goods, services and financial flows. MNC is recognized as being possessed of high-tech assets, and also, resources including capital, management skills and R&D capabilities and subsidiaries can get them, from its holding company, and they transfer technology to local businesses. A knowledge transfer, running parallel to the technology transfer take place benefiting to the local economy. Foreign Direct Investment (FDI) is considered as the primary vehicle to facilitate technology transfer (and underlying knowledge flows) toward emerging countries. The ultimate goal of the MNC is related to leverage technology and knowledge transfer in order to maintain a competitive edge and move toward even higher value-added activities.
Article
We explore the implications of social cognitive and contact theories as applied to leader effectiveness in a global context. Specifically, we test a multilevel, moderated mediated model using a sample of 755 global leaders and their supervisors from 43 countries. These leaders were drawn from mostly senior executive ranks in large global corporations. Our findings support hypotheses confirming the indirect relationship of intense multicultural life exposure through global mindset in the prediction of global leader effectiveness, as well as the moderating role of home country culture tightness. These findings have implications for the selection and development of leaders in global roles.
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Information overload has always been a challenge for businesspeople as well as professionals from other types of organizations. And today with search algorithms and artificial intelligence (AI) such an ever-present part of daily life and media consumption, the challenges in learning how to filter information for oneself for effective processing, interpretation and analysis have only increased. This article presents several frameworks that were created for instructing students to assist with addressing this. They were tested and refined over four years in a core MBA course focused on decision making and project-based work. They include ways to conceptualize the broad areas of information available for business decision making as well as how to identify information by thinking about who is producing it, why they are producing it and who their key customers are. Other frameworks presented deal with ways to identify pertinent information and how to process and work with it as part of a research investigation. These frameworks are presented as tools that can be used by business school instructors, but certainly have a broader application as useful guidelines for anyone hoping to be a better collector and processor of relevant information for decision making and project work.
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Drawing on foundational arguments from the literature on emerging market institutional strategies, and employing a realist historical analysis, we present a retrospective on the Russian automotive industry. We begin by tracing the origins of the sector and synthesizing salient post World War II developments. We then recount the subsequent expansionary decade of the 1960s, followed by the stagnation of the late 1980s, culminating in the eventual collapse of socialism and the breakup of the USSR. Attracted by both the rapid growth in the local market, and the preferential tax rates that accompanied investments, we then document the swift expansion of production facilities in Russia by major global manufacturers in the 2000s. We show how eventually an ensuing sharp halt in local market growth, and an accompanying rise in spare production capacity, saw most manufacturers pursue institutional strategies aimed at obtaining new tax concessions and leveraging intraindustry cooperation, rather than divesting their recently established production facilities. Overall, our retrospective, in particular, calls attention to how global manufacturers were not only to acquire able and rejuvenate existing production facilities or install new greenfield ones, but also to exercise their agency in shaping the broader policy framework and in fashioning new sectoral institutions designed to buttress and sustain the industry.
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This study aims to develop a model for the enablers, critical success factors (CSF) and barriers to frugal innovation (FI). A systematic literature review (SLR) conducted on 372 documentaries of five databases and semistructured interviews conducted with active industrial and academic experts in the innovation field. Then, factors obtained from SLR and interviews placed in two questionnaires with Likert spectrum and the questionnaires were submitted to 200 convenient samples to determine the importance of factors and then ranked through the Friedman test. Based on the findings, ‘optimization of energy consumption in industries, collaborating with local companies, management supports, paying attention to the needs of the local market and reducing the profit margin’ are among the enablers and CSFs of FI. ‘Lack of business acumen among local partners, senior management reluctances, challenging in R&D, challenges of prototyping in product development and currency fluctuations’ are among the barriers of FI.
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To improve our understanding of the strategic role of the board in emerging market firms (EMFs), we investigate the role of the board’s human capital resource in a firm’s internationalization. Integrating the monitoring role (to reduce agency costs) and the resource provisioning role (to augment strategic resource base) of the board, we propose that the board’s aggregate education and professional experience influence the degree of international expansion of EMFs. Further, the board’s knowledge heterogeneity and skill heterogeneity play a contingent role from a resource orchestration perspective. Based on a dataset of 906 firm-years drawn from 201 Indian firms (2008–2012), we find support for the proposed hypotheses that the board’s aggregate education and professional experience have a U-shaped effect on international expansion, and that this relationship flips to an inverted U-shaped relationship at higher levels of knowledge and skill heterogeneity, respectively, within the board.
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Research examining emerging economy inward and outward foreign direct investment (FDI) flows is on a significant upward trajectory. In this bibliometric analysis covering 806 articles published between 1994 and 2019, we map key aspects of its contours. Our analysis proceeds in two sequential phases involving a performance analysis, followed by a thematic analysis. Our performance analysis unveils fundamental elements of the structure of the knowledge base. Our subsequent thematic analysis identifies three focal topics arising from identifiable shared qualities characterizing this literature. Firstly, we distinguish scholarship focused on inward FDI into emerging economies formed by two particular classes, namely 'innovative FDI' and 'capital flows'. Our second theme covers outward FDI from these emerging economies and also comprises two specific classes referring to the 'institutional environment' and the 'theoretical framework deployed'. Our final theme relates to an integrated body of knowledge explicating aspects of the location choice decision. Building on this analysis, we isolate a number of opportunities for future research.
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This paper examines the customer value creation framework and discusses the design of the key elements for product development in emerging markets. A scientometric/bibliometric scoping literature review identifies a clear gap in the current research in studying prerequisites for customer value creation in emerging market contexts. Observing experiences of Daikin and Renault in the context of India, the purpose of this paper is to identify value creation strategic choices following which comprehensive customer value offerings in products and services can be successfully created by firms across the four facets of the framework in emerging markets. Value creation strategies include having a nuanced understanding of the latent contextual needs to offer localized high-quality products that embody distinct functional attributes that provide a functional value and being responsive to specific emotional needs and epistemic experiences of the target customers in product and service offerings to deliver a greater experiential value. Furthermore, the products should adopt a localized operational excellence strategy throughout the value chain to reduce costs for competitive price offerings in order to deliver superior cost value and develop brand image and equity strategy, thereby allowing for the provision of a greater symbolic value. Experiences of successful firms demonstrate the need for extensive local research into the emerging market followed by localization of production and development of a distribution network to be able to offer customized products at competitive prices whilst maintaining the brand value. We thus extend the customer value creation framework by introducing localization as a necessary condition for successful organizational performance in emerging markets.
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Companies collect customer information, store the information in databases, and analyze it to generate customer insights. The study focuses on the roles of customer relationship management (CRM) in making proper usage of the information, marketing analytics, and the marketing intelligence generated to develop fruitful customer relationships. Companies employ advanced marketing analytics and big data to understand customers and implement CRM effectively. The customer insights generated should be distributed and used properly. Although companies benefit from implementation of CRM, the implementation has its own drawbacks. Implementation of CRM will not solve all issues related to customers. It has its own drawbacks. However, proper implementation and effective utilization of CRM will help companies in developing customer relationships, in growing their businesses, and in achieving business excellence in the long run.
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Purpose The purpose of this paper is to explore the existing mechanism through which business group affiliated firms in emerging markets (EMs) continue to generate superior performance. Design/methodology/approach The authors build our argument on the basis of how business group affiliation in EM facilitates internationalization and investment into innovation in affiliated firms compared to un-affiliated firm, resulting in higher firm performance. The authors use advance statistical modeling – causal mediation analysis to separate direct effect and indirect effect of business group affiliation in EM on performance through internationalization and investment into innovation of business group affiliated firms as mediating variables. Findings Based on 122,479 observations (firm year) from 17,235 Indian business group affiliated and un-affiliated firms, the findings help to identify that internationalization and investment into innovation of business group affiliated firms do have a mediating role in affiliation–performance relationship for EM business groups. Originality/value This study unravels the existing causal chain between business group affiliation in EMs and subsequent performance of affiliated firms. The authors complement institutional argument for superior performance of business group affiliation and focus on the performance implication of mediating strategic decisions in affiliated firms.
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From the Preface: The research journey for this book began fifteen years ago when we were teaching in a Harvard Business School Executive Program, Managing Global Opportunities in China and India. The program targeted Western multinationals and investors interested in business opportunities in the then rapidly growing Chinese market and the newly liberalizing Indian market. In Mumbai, as part of that executive program, we invited Ratan Tata, chairman of Tata Sons Limited, to share with the group Tata's strategy for the new Indian market. We were surprised to see Western executives' reaction to Tata's ambitious plans for exploiting the new ambient opportunities. Their experience in Western markets had convinced these executives that emerging market business groups like the Tata's, consisting of several dozen companies in disparate, seemingly unrelated businesses, were anachronisms, doomed to go the way of the dinosaurs unless they radically restructured and focused on one or two core businesses. The disconnect between how emerging market senior leaders like Ratan Tata and leaders of Western multinationals in our executive program thought about the strategic implication of emerging market opportunities was truly fascinating to us. The crux of this book is to advance a structural framework for thinking about the nature and extent of differences between emerging markets and mature markets on the one hand, and among emerging markets on the other. That is, the so-called BRIC economies—Brazil, Russia, India, and China—differ from the United States, the United Kingdom, and Japan on the one hand, but they also differ from each other quite extensively. We specify how. In particular, we articulate a framework to calibrate the differences in soft and hard institutional infrastructure— we refer to the absence in emerging markets of things we take for granted in our backyard in Boston as institutional voids—that permeate emerging markets, and then offer solutions for dealing with these. Tarun Khanna is the Jorge Paulo Lemann Professor at Harvard Business School and the author of Billions of Entrepreneurs: How China and India Are Reshaping Their Future and Yours (Harvard Business School Press, 2008).
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The transfer of productive technologies from the industrial nations of the North Atlantic to the rest of the world underlay dramatic economic and social transformations in the 19th century. Technology transfer has continued to play a central role in both international economics and national development policy through the late 20th century. Yet efforts to transfer novel technologies across national borders have varied widely, with outcomes ranging from success, to significant adaptation, to failure. This article offers a conceptual model for examining cases of technology transfer, illustrated with examples from Mexico's historical experience of 1870 through 1911. Although this approach comes from an historian's perspective, it is broadly applicable to interdisciplinary interest in technology transfer.
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In this paper, I review the concept of "institutional voids" that provides a way to understand the structure of emerging markets. These voids impede would-be buyers from getting together with would-be sellers, and hence compromise the functioning of markets. Entrepreneurs must respond to these voids. Their endeavors, however, are also the means through which the voids are progressively removed. I review my work on the contours of such entrepreneurship in many emerging markets, with the greatest research emphasis on China and India. I conclude with a focus on attempts to circumvent a particularly insidious class of institutional voids, those that prevent the marginalized two-thirds of the world's population from participating in the economic mainstream. Cumulatively, my work calls for our profession to think more creatively and eclectically about our research and teaching in a way that displays greater contextual intelligence toward ubiquitous and socially costly voids.
Article
It is now widely accepted that the lower castes have risen in Indian politics. Has there been a corresponding change in the economy? Using comprehensive data on enterprise ownership from the Economic Census of 1990, 1998 and 2005, this paper shows there are substantial caste differences in entrepreneurship across India. The scheduled castes and scheduled tribes are significantly under-represented in the ownership of enterprises and the share of the workforce employed by them. These differences are widespread across all states, have decreased very modestly between 1990 and 2005, and cannot be attributed to broad differences in access to physical or human capital.
Article
Purpose Institutional voids – the lack of institutions that can facilitate the functioning of markets – are ubiquitous in emerging markets. Because of their newness, entrepreneurial ventures are especially susceptible to institutional vacuums. This research seeks to shed light on the role that business groups can play in the development of entrepreneurial ventures in emerging markets. Design/methodology/approach Based on detailed fieldwork, the study describes and analyzes the creation and evolution of two biotechnology start-ups that were affiliated to a major Latin American business group. The research cov ers the period between their foundation and later acquisition by a multinational company. Findings The article discusses the role that the business group affiliation had in terms of helping the start-ups to interact with multiple institutional voids. The analysis shows that the start-ups benefited from the group's reputation and connections, experience and know-how in managing different types of businesses in the country, strong resource base, long-term vision, and strong organizational culture. Originality/value The main contribution of this work is to show that business group affiliation can be an interesting solution that facilitates the development of entrepreneurial ventures in emerging markets.
Article
Economic growth in the Western world increasingly depends on meaningful engagement with emerging markets, such as Brazil, China, India, South Africa, and Turkey. Business schools are responding in their research and curriculums with increased attention to these markets. However, to understand and leverage these opportunities for teaching and learning, it is apparent that students and executives require a major transformation of their mental models, not simply incremental adjustments or extensions. Institutional economics can help prospective and established managers recognize the role of formal and informal institutions and enable them to work around the "institutional voids" in emerging markets (Khanna & Palepu, 2010). We draw on this framework to identify critical shifts in mental models required for managing effectively in emerging markets and suggest core elements of the management learning process required to accomplish such a change.
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This paper offers an analytical structure to pinpoint the behavioral roots of superior performance, where “behavioral” denotes “being about mental processes.” Such roots are identified in behavioral deviations from market efficiency. The causes of these deviations are behavioral factors that bound firms' ability to pursue and compete for superior opportunities. Because these bounds are systematic and diffused among firms, they ensure that latent opportunities are not competed away. In this setting, the behavioral bases of superior performance stem from a superior ability to overcome focal behavioral bounds. This analytical structure is used to identify the mental processes especially important to firm performance that strategic leaders can reliably manage. Its key insight is that superior opportunities are cognitively distant. They rarely correspond to common ways of thinking. The reason for this is that it is necessary to overcome strong behavioral bounds to pursue these opportunities. This insight contrasts with mainstream behavioral approaches to strategy, which focus on the virtues of local action, and it has two implications: the behavioral essence of superior performance corresponds to strategic leaders' superior ability to manage the mental processes necessary to pursue cognitively distant opportunities; and pursuing the cognitively distant implies a more expansive conception of strategic agency (e.g., the role of strategic leaders) than is acknowledged by mainstream behavioral approaches to strategy. The challenges posed by this conception require a model of human cognition that goes beyond the understanding of bounded rationality that is diffused in current behavioral strategy research. The second part of the paper assesses the traits of a model of human mind that can support the behavioral conception of strategic agency advocated and proposes a unified model of the human mind that centers on associative processes.
Article
This paper offers an analytical structure to pinpoint the behavioral roots of superior performance, where "behavioral" denotes "being about mental processes." Such roots are identified in behavioral deviations from market efficiency. The causes of these deviations are behavioral factors that bound firms' ability to pursue and compete for superior opportunities.Because these bounds are systematic and diffused among firms, they ensure that latent opportunities are noLcompeted away.In this setting, the behavioral bases of superior performance stem from a superior ability to overcome focal behavioral bounds. This analytical structure is used to identify the mental processes especially important to firm performance that strategic leaders can reliably manage. Its key insight is that superior opportunities are cognitively distant. They rarely correspond to common ways of thinking. The reason for this is that it is necessary to overcome strong behavioral bounds to pursue these opportunities. This insight contrasts with mainstream behavioral approaches to strategy, which focus on the virtues of local action, and it has two implications: the behavioral essence of superior performance corresponds to strategic leaders' superior ability to manage the mental processes necessary to pursue cognitively distant opportunities; and pursuing the cognitively distant implies a more expansive conception of strategic agency (e.g., the role of strategic leaders) than is acknowledged by mainstream behavioral approaches to strategy. The challenges posed by this conception require a model of human cognition that goes beyond the understanding of bounded rationality that is diffused in current behavioral strategy research. The second part of the paper assesses the traits of a model of human mind that can support the behavioral conception of strategic agency advocated and proposes a unified model of the human mind that centers on associative processes.
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The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically. While one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.
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We demonstrate variation in the extent to which firms benefit from their affiliation with Chilean business groups in the 1988-1996 period. The net benefits of unrelated diversification are positive if group diversification exceeds a threshold level, though this threshold increases with time. We find evidence of non-diversification related group benefits, which atrophy over time. We conjecture that the evolution of institutional context alters the value creating potential of business groups, though it does so slowly.
Book
Industrial Efficiency in Six Nations continues the pioneering research begun in Caves and Barton's Efficiency in U.S. Manufacturing Industries, extending it to the international sphere and laying the empirical groundwork for a deeper understanding of the sources of inefficiency and their cost in productivity. This extended project is the first to apply the stochastic frontier production function routinely, with results that are both meaningful and sophisticated. Of particular interest are substantive results concerning the effects of exposure to competition, both domestic and foreign, and of organizational factors such as corporate diversification and unionization on productive efficiency. Caves and his colleagues investigate the gaps between average and best-practice efficiency of plants in the manufacturing industries of the United States, Canada, Great Britain, Australia, Japan, and Korea. They show that the resulting measures of industrial efficiency can be used to test many hypotheses about how efficiency differs from industry to industry. They confirm the generally favorable effects of competition on efficiency and also test many effects of organizational choices, while controlling for dynamic disturbances and sources of intrinsic diversity. They also explore what happens to the typical industry's efficiency over time, show how much and why the efficiency of large and small units differs, and probe the relation of the gap between an industry's average and best-practice efficiency and its international standing in average productivity.
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We examine the effect of the institutional environment (IE) on the mortality of overseas subsidiaries. We develop hypotheses to study the impact of political openness and social openness, two dimensions of the institutional environment and how joint venture status moderates these relationships. We test our hypotheses using a sample of 12,000+ Japanese overseas investments from 1986–1997 in 25 countries, using Cox hazard models. Our results suggest that the sociopolitical context has a strong influence on the mortality of overseas subsidiaries. We theorized a negative main effect for political and social openness and positive interaction effects with openness when the FDI is through a JV. The results are consistent with the hypotheses. However, political and social openness show significantly different influences on subsidiary mortality.
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Behavioral scientists routinely publish broad claims about human psychology and behavior in the world's top journals based on samples drawn entirely from Western, Educated, Industrialized, Rich, and Democratic (WEIRD) societies. Researchers - often implicitly - assume that either there is little variation across human populations, or that these "standard subjects" are as representative of the species as any other population. Are these assumptions justified? Here, our review of the comparative database from across the behavioral sciences suggests both that there is substantial variability in experimental results across populations and that WEIRD subjects are particularly unusual compared with the rest of the species - frequent outliers. The domains reviewed include visual perception, fairness, cooperation, spatial reasoning, categorization and inferential induction, moral reasoning, reasoning styles, self-concepts and related motivations, and the heritability of IQ. The findings suggest that members of WEIRD societies, including young children, are among the least representative populations one could find for generalizing about humans. Many of these findings involve domains that are associated with fundamental aspects of psychology, motivation, and behavior - hence, there are no obvious a priori grounds for claiming that a particular behavioral phenomenon is universal based on sampling from a single subpopulation. Overall, these empirical patterns suggests that we need to be less cavalier in addressing questions of human nature on the basis of data drawn from this particularly thin, and rather unusual, slice of humanity. We close by proposing ways to structurally re-organize the behavioral sciences to best tackle these challenges.
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Includes bibliographical references (leaf [111]). Carbon-copy of original thesis. Thesis--Cambridge University.
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We develop a model that, at the aggregate level, is similar to the one sector neoclassical growth model, while, at the disaggregate level, has implications for the path of observable measures of technology adoption. We estimate our model using data on the diffusion of 15 technologies in 166 countries over the last two centuries. We evaluate the implications of our estimates for aggregate TFP and per capita income. Our results reveal that, on average, countries have adopted technologies 47 years after their invention. There is substantial variation across technologies and countries. Over the past two centuries, newer technologies have been adopted faster than old ones. The cross-country variation in the adoption of technologies accounts for at least a quarter of per capita income differences.
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Diversified business groups dominate the private sectors of most of the world's economies. Several of these economies have undergone sudden policy changes that significantly increase domestic competitive intensity. The authors demonstrate how the changes in corporate scope that accompany such 'competitive shocks' can be used to weigh the importance of different explanations for the existence of diversified business groups. The authors illustrate their reasoning by studying the restructuring of two of India's largest business groups following a comprehensive post-1991 package of policy reforms. The case studies also elucidate aspects of the restructuring process that should inform larger-sample empirical analyses. Copyright 1998 by Blackwell Publishing Ltd
Article
Diversified business groups, consisting of legally independent firms operating across diverse industries, are ubiquitous in emerging markets. Groups around the world share certain attributes but also vary substantially in structure, ownership, and other dimensions. This paper proposes a business group taxonomy, which is used to formulate hypotheses and present evidence about the reasons for the formation, prevalence, and evolution of groups in different environments. In interpreting the evidence, the authors pay particular attention to two aspects neglected in much of the literature: the circumstances under which groups emerge and the historical evidence on some of the questions addressed by recent studies. They argue that business groups are responses to different economic conditions and that, from a welfare standpoint, they can sometimes be "paragons" and, at other times, "parasites." The authors conclude with an agenda for future research.
The weirdest people in the world? Working Paper Series des Rates für Sozial-und Wirtschaftsdaten
  • J Henrich
  • S J Heine
  • A Norenzayan
The structure of profitability around the world. Unpublished manuscript
  • T Khanna
  • J W Rivkin
Freedom from want: the remarkable success story of BRAC, the global grassroots organization that’s winning the fight against poverty
  • I Smillie