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We combine insights from the strategic management and international business literatures in order to explore the moderating role of business group characteristics on the link between innovation and internationalization in the context of the pharmaceutical sector in India. We test our three hypotheses on a sample of 219 Indian pharmaceutical firms affiliated with business groups, over a five-year period (2005–2010) in a panel of 1,096 firm-year observations. Results indicate that, contrary to our contention, research expenditure is negatively associated with export intensity, implying that firms in the Indian pharmaceutical sector may face a trade-off between investing in innovation and international expansion. As expected, business group characteristics significantly impact the strength of the relationship between innovation and internationalization. Theoretical and practitioner implications are discussed.

The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. The present study applies complexity theory tenets and a “neo-configurational perspective” of Misangyi et al. (2016) in proposing complex antecedent conditions affecting complex outcome conditions. Rather than examining variable directional relationships using null hypotheses statistical tests, the study examines case-based conditions using somewhat precise outcome tests (SPOT). The complex outcome conditions include firms with high financial performances in declining markets and firms with low financial performances in growing markets – the study focuses on seemingly paradoxical outcomes. The study here examines firm strategies and outcomes for separate samples of cross-sectional data of manufacturing firms with headquarters in one of two nations: Finland (n = 820) and Hungary (n = 300). The study includes examining the predictive validities of the models. The study contributes conceptual advances of complex firm orientation configurations and complex firm performance capabilities configurations as mediating conditions between firmographics, firm resources, and the two final complex outcome conditions (high performance in declining markets and low performance in growing markets). The study contributes by showing how fuzzy-logic computing with words (Zadeh, 1966) advances strategic management research toward achieving requisite variety to overcome the theory-analytic mismatch pervasive currently in the discipline (Fiss, 2007, 2011) – thus, this study is a useful step toward solving the crucial problem of how to explain firm heterogeneity.

The dynamic capabilities perspective focuses on the ability of an organization to develop its resource base in order to meet environmental expectations. Therefore, it is closely interrelated to the issue of managing the interaction of exploration and exploitation. The competence of continuously optimizing the interaction of exploration and exploitation has been referred to as organizational ambidexterity. Managing this interaction implies resolving a firm's permanent struggle to overcome the barriers related to the right configuration between exploration and exploitation.

By incorporating the concept of combinative capabilities as balancing routines into the conceptualization of ambidexterity we distinguish structural, interaction, and socialization capabilities that are deployed in overcoming these barriers to resource (re)configuration.

Drawing on knowledge management and barriers to resource configuration we expect that the way organizations deploy combinative capabilities to manage the interaction between exploration and exploitation depends on the observed barriers to resource (re)configuration. By combining the constructs of barriers to resource reconfiguration, ambidexterity, and combinative capabilities we intend to gain more insight in the way organizations manage the actual interaction between exploration and exploitation. Our paper will introduce a set of propositions indicating the relationship between ambidexterity, barriers to resource (re)configuration, and combinative capabilities as balancing routines.

This study investigates the role of functional area-specific managerial schemas on the attempt of strategic renewal at a large medical devices developer and manufacturer during a period of high environmental dynamism. Using data from a 16-month field study on managerial work related to the strategy process, I examine how functional area managers attempted to (re)configure organizational capabilities in response to various environmental challenges. While I did not find any disagreement between functional area managers related to what those challenges were, I did find fundamental disagreements related to what capabilities the organization can muster as a response. More specifically, disagreements surfaced in relation to how these capabilities should be assembled, and ultimately acted as triggers for the contestation of existing shared frames between functional area managers. These findings add to a growing body of evidence suggesting that there exist large differences between how managers within an organization interpret what the organization is capable of, and more specifically link these differences to the organization’s ability to adapt to environmental changes by showing how they impact the assembly of new capabilities deemed necessary for a successful response.

To maintain and enhance innovation performance, many firms nowadays look for resources from external sources such as strategic alliances and regional network embeddedness. While considering the important interdependencies among different alliances, research has established an alliance portfolio perspective. From an alliance portfolio perspective, firms can consciously configure the dimensions of their alliance portfolios such as partner characteristics, relational properties, or structural properties. However, within the context of alliance portfolio configuration, the role of regional networks has been largely overlooked. As most high-tech firms are regionally clustered, this is an important research gap. In addressing this gap, this study explores the link between regional network density, alliance portfolio configuration, and its contribution to firm innovation performance. We examine how regional network density and alliance partner diversity influences firm level innovation output. We also investigate the moderating effect of overall network partner status and partner diversity on the link between regional network density and innovation performance. Our empirical evidence is derived from a longitudinal quantitative study of 1,233 German biotechnology firms. We find that regional network density and alliance partner diversity has an inverted U-shape effect on firm level innovation performance. However, overall network status as well as alliance partner diversity negatively moderates the link between regional network density and innovation output. Thus, our study contributes to a better understanding of the link between regional networks, alliance portfolio configuration, and firm level innovation performance.

Firm’s operating contexts and asymmetric perspectives of success versus failure outcomes are two essential features typically absent in research on firms’ implemented strategies. The study here describes and provides examples of formal case-based models (i.e., constructing algorithms) of firms implemented strategies within several of 81 potential context (task environments) configurations – large vs small, service vs production orientation, low vs high competitive intensity, low vs high technological turbulence, and ambiguous settings for each. The study applies the tenets of complexity theory (e.g., equifinality, causal asymmetry, and single causal insufficiency). The study proposes a meso-theory and empirical testing position for solving “the crucial problem in strategic management” (Powell, Lovallo, & Fox, 2011, p. 1370) – firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. A workable solution is to identify/describe implemented executive capability strategies that identify firms in alternative specific task environments which are consistently accurate in predicting success (or failure) of all firms for specific implemented capabilities/context configuration. The study shows how researchers can perform “statistical sameness testing” and avoid the telling weaknesses and “corrupt practices” of symmetric tests such as multiple regression analysis (Hubbard, 2015) including null hypothesis significance testing. The study includes testing the research issues using survey responses of 405 CEO and chief marketing officers in 405 Hungarian firms. The study describes algorithms indicating success cases (firms) as well as failure cases via deductive, inductive, and abductive fuzzy-set logic of capabilities in context solutions.

This study aims to explore the relationship between IT and HRM in the context of manufacturing SMEs, more specifically the relationship between strategic HRM and e-HRM as well as the performance effects of this relationship. The conceptual framework is founded upon the resource-based view (RBV), specifically upon the strategic HRM and e-HRM capabilities of SMEs and upon the strategic alignment of these capabilities in the form of capability configurations or “gestalts.”

To answer the research questions, a questionnaire was constructed and mailed to 1854 manufacturing SMEs in the province of Quebec, Canada, producing 216 valid responses that were used for statistical analysis purposes. Capability configurations were identified through a cluster analysis of the e-HRM and strategic HRM capabilities developed by these firms.

Using structural equation modeling to validate the research model, a causal analysis confirmed a positive influence of the sampled SMEs’ strategic orientation upon their development of strategic HRM capabilities. More importantly, a higher level of alignment between the SMEs’ strategic HRM and e-HRM capabilities was associated to a higher level of strategic HRM performance.

To our knowledge, ours is the first study to show interest in the effect of the strategic alignment of HRM and IT capabilities upon HRM performance, by adopting a configurational perspective and considering organizational IT from a functional point of view. Given the specific context of SMEs, the focus was on e-HRM capabilities related to the IT infrastructure of these organizations and the IT competencies of individuals related to HRM.

This chapter shows how to construct and test case-based macro models. The chapter makes use of national data to examine influences on quality-of-life of national cultures as complex wholes and entrepreneurship activities in Brazil, Russia, India, China, Germany, and the United States (the six focal nations) plus Denmark (a small-size, economically developed, nation). The study tests McClelland’s (1961) and more recent scholars’ proposition that some cultural configurations nurture entrepreneur startups, while other cultures are biased toward thwarting startups. The study applies complexity theory to develop and empirically test a general theory of cultures’, entrepreneurship’s, and innovation’s impact on quality-of-life across nations. Because culture represents a complex whole of attitudes, beliefs, values, and behavior, the study applies a set-theoretic approach to theory development and testing of alternative cultural configurations. Each of 28 economical developed and developing nations is scored for the level of the national cultures for each of six focal countries. The study selected for the study enables multi-way comparisons of culture-entrepreneurship-innovation-QOL among large- and small-sized developing and developed nations. The findings graphically present the complex national cultural configuration (x-axis) with entrepreneur nurture/thwart (y-axis) of the 28 nations compared to the six focal nations. The findings also include recognizing national cultures (e.g., Switzerland, the United States) nurturing entrepreneurial behavior versus other national cultures (e.g., Brazil and India) thwarting entrepreneurial behavior. The study concludes with a call to recognize the implicit shift in culturally implicit thinking and behavior necessary for advancing national platforms designed to successfully nurture entrepreneurship. Entrepreneur strategy implications include the observation that actions nurturing firm start-ups by nations low in entrepreneurship will unlikely to be successful without reducing such nations’ high levels of corruption.