Search results

1 – 10 of over 7000
Article
Publication date: 28 August 2020

Chethan D. Srikant and Bethany Lessard

Changes in societal preferences can have a significant impact on the business strategy of companies. This paper aims to illustrate the utility of strategic alliances in…

1887

Abstract

Purpose

Changes in societal preferences can have a significant impact on the business strategy of companies. This paper aims to illustrate the utility of strategic alliances in channelizing societal preferences.

Design/methodology/approach

LEGO and its many strategic alliances are carefully examined to illustrate the need for considering strategic alliances from a societal preference perspective. LEGO’s strategic alliances are juxtaposed with two major societal trends of the past few decades, environmental movement and multiple efforts toward greater inclusivity.

Findings

The following important lessons are elaborated for helping business organizations pursuing strategic alliances: long-term orientation should not become an excuse for complacency, need for alignment of organizations within the strategic alliance, strategic alliances should be viewed as a bidirectional channel for influence and attending to internal transformations is crucial for success.

Originality/value

This paper deviates from the traditional treatment of strategic alliances as a business arrangement that only drives financial performance but instead provides insights into how strategic alliances can be connected to changing societal preferences. It also challenges the received wisdom in the academic literature on strategic alliance, which is dominated by some very restrictive theoretical perspectives.

Article
Publication date: 20 March 2020

Divesh Sharma and Umesh Sharma

The purpose of this paper is to examine the factors related to the use of the balanced scorecard (BSC) by private companies. Specifically, the authors examine how foreign…

2257

Abstract

Purpose

The purpose of this paper is to examine the factors related to the use of the balanced scorecard (BSC) by private companies. Specifically, the authors examine how foreign ownership, focus on a global market beyond the local company’s geographic region and other sophisticated management accounting practices (MAPs) (activity-based costing, just-in-time and total quality management) are related to the use of the BSC.

Design/methodology/approach

The paper takes a contingency theoretic perspective. The data in this study is based on responses to a survey questionnaire that was mailed to 300 non-listed private companies in Singapore. A total of 135 responses were received, but 23 were incomplete, and thus, rendered unusable. Therefore, the final sample for the study is 112 private companies yielding a 37.3 per cent response rate that is considered high for survey research.

Findings

The authors find significant associations between the use of BSC and foreign ownership, focus on a global market and other sophisticated MAPs. The authors find that foreign ownership and a global market focus are significantly and consistently related to the extent to which the BSC is used across seven different management control purposes. The authors also find some evidence of associations between other sophisticated MAPs and the extent to which the BSC is used for management control purposes.

Practical implications

Private companies can use the BSC to better manage risks and use it for purposes such as communicating strategy and objectives, setting targets, evaluating performance, rewarding employees and managers, motivating employees and managers, controlling performance and coordinating across activities, departments and/or functional areas. The study has limitations such as the model is limited and excludes the effects of other significant contingency factors such as organisational culture. It may be appropriate to interview organisational participants to learn more about how their national and organisational culture affects the decision to use the BSC.

Originality/value

The findings fill a critical void in the literature by providing new evidence on the determinants of the use of the BSC by private companies.

Details

Pacific Accounting Review, vol. 33 no. 1
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 24 March 2021

Xuan Bai, Shibin Sheng and Julie Juan Li

This paper aims to examine alliance governance at different hierarchical levels.

Abstract

Purpose

This paper aims to examine alliance governance at different hierarchical levels.

Design/methodology/approach

The data is collected from both top-level and operating-level managers in 286 strategic alliances in China (a total of 572 managers). Hierarchical moderated regression models are adopted to test the hypotheses and two-stage regression analyzes are used to correct for endogeneity.

Findings

This paper finds that relational governance has a greater impact on alliance performance than contract utilization at the top level. Furthermore, the simultaneous use of relational governance at the top and operating levels have a detrimental impact on alliance performance. Finally, top-level contract utilization has a negative interaction with operating-level relational governance but a positive interaction with operating-level contract utilization.

Research limitations/implication

First, the cross-sectional nature of the data collection approach provides only a snapshot of how each type of governance mechanism and its interactions affect alliance performance. Second, the sample is limited to firms located in emerging markets.

Practical implications

Managers should realize that the effectiveness of contract and relational governance mechanisms varies across different management levels and they should be cautious about the cross-level governance mechanism alignment.

Originality/value

This study advances the interfirm governance literature in that this paper examined alliance governance at different hierarchical levels and provides new insights into the ongoing debate on whether the contract and relational governance mechanisms function as complements or substitutes by exploring the governance alignment across different alliance hierarchies.

Article
Publication date: 19 April 2013

Francesca Riccobono, Manfredi Bruccoleri and Giovanni Perrone

Many research studies in operations management (OM) and strategic management (SM) investigate how different kinds of firm decisions regarding business relationships can positively…

Abstract

Purpose

Many research studies in operations management (OM) and strategic management (SM) investigate how different kinds of firm decisions regarding business relationships can positively affect a firm's operations performance, resource endowment, and competitive position. Very few studies exist, however, that have attempted to illuminate the actual behaviors of managers when making strategic decisions about their intercompany relationships; rather, most existing studies focus on normative theory. The purpose of this paper is to explore linkages between the “set” of strategic objectives that managers are willing to pursue, the “set” of networking decisions they make, and the “set” of business agreements they sign.

Design/methodology/approach

In order to investigate and explore actual managerial behaviors with respect to networking strategy, the study adopts a field research approach based on multiple case studies. Data were collected on 13 business agreements from three manufacturing firms in the mechatronics industry in Italy. Within‐case and cross‐case analyses are used for theory‐building purposes.

Findings

The empirical data allow identification four different archetypes of networking strategy. The archetypes capture different connections between the “set” of strategic objectives that managers are willing to pursue, the “set” of networking decisions that they consider, and the “set” of strategic agreements that they actually adopt. Specifically, the identified archetypes are named multi‐alignment, multi‐agreement (diversification), multi‐objective, and mono‐alignment (focus), and these are related to different association multiplicities among objectives, decisions, and agreements. The implications related to these archetypes are three‐fold. First, the multi‐alignment archetype suggests a focus not just on one kind of agreement, but also on the firm's overall portfolio of agreements, in order to facilitate understanding of how different kinds of agreements and networking decisions can play a complementary role in achieving a firm's predetermined business objective/s. Second, the multi‐agreement (diversification) archetype suggests that managers can minimize the risk of losing the potentiality of network collaboration by undertaking different kinds of agreements for the same strategic objective. Third, the mono‐alignment (focus) and multi‐objective archetypes suggest that just one agreement can potentially pursue one or multiple strategic objectives, and thus can allow managers to minimize the cost of managing several networking relationships.

Originality/value

The originality of this study lies in its exploration of linkages between objectives, decisions and networking agreements. Unlike most of the existing papers in OM and SM, however, it does not specifically focus on: vertical or horizontal relationships; operations performance (positioning school) or resource endowment (resource‐based view) strategic objectives; or any specific kind of agreement contract (outsourcing, alliance, joint venture, etc.). This paper presents four different networking strategy archetypes that represent different ways of matching a “set” of networking decisions, strategic objectives and business agreements. These are not related to either vertical or horizontal relationships, operations performance or resource endowment objectives, or any specific contract agreement form.

Article
Publication date: 3 June 2022

Lisha Huo, Yunfei Shao, Simeng Wang and Wei Yan

This study explores how firms develop innovation ecosystems through forming alliances with suppliers and the effects on innovation, economics and consumer welfare.

Abstract

Purpose

This study explores how firms develop innovation ecosystems through forming alliances with suppliers and the effects on innovation, economics and consumer welfare.

Design/methodology/approach

This study develops two game theory models to compare supply chain structures with and without ecosystem alignment. (1) A single supplier provides components to two competing manufacturers (one innovative and one non-innovative). (2) An innovative manufacturer (focal firm) aligns with a supplier that also supplies components to a competing manufacturer.

Findings

An ecosystem construction strategy that alliances use to reconfigure coopetitive relationships and ecosystem alignment is identified. A manufacturer aligning with a supplier will strengthen the monopoly of the alignment, which is beneficial to both Allies but always harmful to the competitor. Interestingly, such an ecosystem construction strategy may be beneficial to future innovation, the industry and consumers.

Research limitations/implications

The findings raise several topics that warrant further exploration. For example, scenarios with multiple suppliers were not considered. Furthermore, the implementation of regulatory measures to mitigate the harmful effects of alignment on innovation should be investigated.

Practical implications

This paper provides a guide for enterprises seeking alignment and to the corresponding measures required to stimulate innovation within ecosystems. What’s more, the aligned firm should not always attempt to win the race but should instead take measures to encourage the competitor to share demand information.

Originality/value

Firstly, most research on supply chain management has focused on its economic impacts. There is a lack of research on the influence of ecosystem alignment on the innovation incentives of firms. Furthermore, the literature still lacks evidence of how ecosystem construction strategies can increase consumer welfare. In the present study, the authors model a complex market structure that includes a competitor, which is becoming increasingly common in high-tech markets. Thirdly, this paper is one of the few that examines the impacts of market-structure changes on innovation incentives. Most importantly, this study extends the current literature by studying coopetition in the ecosystem context.

Details

Management Decision, vol. 60 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 March 2001

R.J. Mockler

The article concerns the decision‐making process involved in determining the strategic need and use of multinational alliances for a specific company. In theory the process is a…

4393

Abstract

The article concerns the decision‐making process involved in determining the strategic need and use of multinational alliances for a specific company. In theory the process is a linear one moving from the situation analysis (company and competitive market) through evaluation of the impact of external and internal situation factors on the alliance entry choice. In practice, however, the process is an emerging one, as is shown in the company experiences described in this paper. In this sense, this study concerns the application of planning decision theory to actual company decision‐making practices.

Details

Management Decision, vol. 39 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 June 2002

Birgit Leisen, Bryan Lilly and Robert D. Winsor

Recent research illuminates the important contribution of organizational culture and market orientation to organizational effectiveness. In an attempt to increase the conceptual…

13398

Abstract

Recent research illuminates the important contribution of organizational culture and market orientation to organizational effectiveness. In an attempt to increase the conceptual and empirical body of knowledge, explores the links between organizational culture, market orientation, and marketing effectiveness in the context of strategic marketing alliances. Analyzes responses to self‐administered questionnaires returned by 128 such organizations. The findings suggest that organizational culture significantly affects marketing effectiveness, although the individual dimensions of organizational culture have varying degrees of influence upon the dimensions of marketing effectiveness. Among mechanistic or non‐adaptive cultural dimensions, increased internal culture enhances an internal market effectiveness dimension, whereas increased external culture enhances an external market effectiveness dimension. This internal/external alignment is not found for the organic or adaptive cultural dimensions. This same internal/external alignment is found, however, when examining the relationship between market orientation and market effectiveness. Internal aspects of market orientation enhance an internal market effectiveness dimension, whereas increased external orientation enhances an external market effectiveness dimension. Discusses managerial implications.

Details

Journal of Services Marketing, vol. 16 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 29 November 2018

Priscila Rezende da Costa, Sergio Silva Braga Junior, Geciane Silveira Porto and Marta Pagán Martinez

The purpose of this paper is to focus on evaluating relational capability regarding the configuration of a network of technological partners in Brazilian technology-based firms…

Abstract

Purpose

The purpose of this paper is to focus on evaluating relational capability regarding the configuration of a network of technological partners in Brazilian technology-based firms (TBFs).

Design/methodology/approach

The data were collected using an online questionnaire made available to technology-based companies resident in Brazilian Technological Parks. A total of 73 companies responded. The data were analyzed using bivariate and multivariate statistical techniques and were processed using Statistical Package for Social Sciences software. The statistical tests included factor analysis, Cronbach’s α and multiple regression.

Findings

The paper shows that the strategic alliance portfolio is influenced by organizational learning, diversity of partners, governance structure, intensity of partnership relations and configuration. In particular, the portfolio of alliances with competence orientation is characterized by tacit knowledge exchanges and learning exploration, homogeneity of partners, informal governance mechanisms, strong bonds of trust and reciprocity with partners and low diversification of actors’ profiles, their attributions and the results obtained in the portfolio. Meanwhile, the characteristics of alliance portfolios with legitimacy orientation include explicit knowledge exchange and learning exploitation, heterogeneity of partners, formal governance mechanisms, weak bonds of trust and reciprocity with partners and high diversification of the profile of the actors, their attributions and the results obtained from the portfolio.

Practical implications

The configuration of the alliance portfolio plays an important role in innovation. To stimulate the creation of new technological skills, the executive of a technology-based company from emerging countries such as China, Russia and India, can configure the portfolio of strategic alliances with more homogeneous partners in terms of profile and attribution. However, if this executive is challenged to seek legitimacy and complementary resources in these markets he can invest in the diversification of the strategic alliance portfolio, prioritizing partners with differentiated profiles and attributions.

Originality/value

The originality of the research lies in the adoption of a complementary and multidimensional theoretical prism, considering the relational capacity of TBFs in the configuration of alliances, both in the intra-firm and portfolio perspective. Furthermore, it was considered that the configuration of alliances can be based on both competence and legitimacy factors.

Details

International Journal of Emerging Markets, vol. 13 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 20 July 2021

Rishabh Rajan, Sanjay Dhir and Sushil

This study aims to identify critical factors and examine their impact on alliance performance from an organizational learning point of view.

1103

Abstract

Purpose

This study aims to identify critical factors and examine their impact on alliance performance from an organizational learning point of view.

Design/methodology/approach

A modified total interpretive structural modeling (M-TISM) methodology was used in this study. The different paths/links in the developed M-TISM model were further validated by using the Mahindra-Ford alliance case study.

Findings

In this study, a total of seven critical factors were identified using an extensive literature review, and a hierarchical model was developed. Results show that prior alliance experience, inter-partner learning, knowledge transfer, absorptive capacity and knowledge internalization have a positive on the alliance productivity and performance. Furthermore, the findings indicate that prior alliance experience remains essential for alliance productivity and performance, while knowledge transfer and absorptive capacity can contribute to inter-partner learning and knowledge internalization in strategic alliances.

Research limitations/implications

This study can help managers and policymakers to understand the identified critical factors from an organizational learning perspective and understand their impact on the alliance performance in a competitive environment. The managers should know that previous alliance experience, learning from partner firms, building an absorptive capacity, etc., are necessary to achieve superior alliance productivity and performance. For academicians, the M-TISM methodology used in this study can provide a mechanism to perform exploratory research and build a hierarchical model in different management research fields.

Originality/value

The study fills research gaps by identifying key factors, developing a hierarchical model, and examining their impact on the performance of strategic alliances in the Indian automotive industry.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 14 August 2017

Bianca B.M. Keers, Paul C. van Fenema and Henk Zijm

The purpose of this paper is to examine an organization’s operational alignment in the process of alliance formation.

1186

Abstract

Purpose

The purpose of this paper is to examine an organization’s operational alignment in the process of alliance formation.

Design/methodology/approach

A literature study was conducted on the strategic importance of assessing and aligning organizations’ operations for alliancing. Furthermore, an instrumental case study was conducted to provide insight in the degree of operational alignment required for a maritime organization to form a service alliance.

Findings

Managers indicate a complex set of organizational capabilities required for improving operating process to successfully execute their alliance strategy. Two improvement trajectories were found to be used by alliance managers for aligning operations with alliance strategy: development of a corporate alliance infrastructure, and nurturing a collaborative business culture.

Research limitations/implications

The research is limited to one public organization establishing a vertical service alliance with one of its suppliers.

Originality/value

The paper introduces a new conceptual model of the alliance formation process, addressing the cyclical character of the pre-formation stage in which intra- and interorganizational management considerations alternate.

Details

Journal of Organizational Change Management, vol. 30 no. 5
Type: Research Article
ISSN: 0953-4814

Keywords

1 – 10 of over 7000