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The purpose of this paper is to examine the role of cognitive diversity on strategic issue interpretation among the boards of directors making sense of sustainability management. The study also investigated the centrality of the corporate sustainability issues to identify common interpretative patterns in the shared cognitive maps among the companies. In addition, the aim was to advance quantitative methods for the analysis of decision-makers’ cognition.

The research was an exploratory study analyzing 43 individual cognitive maps collected through surveys from the boards of nine cleantech companies. For the elicitation of the cognitive maps, the study used the hybrid cognitive mapping technique. The diversity of the shared cognitive maps was analyzed using the distance ratio formula and the graph analysis method with eigenvector to measure the centrality of the strategic issue interpretation in the maps.

This study provides evidence through the analysis of distance ratios on the existence of cognitive diversity among companies within the same industry. Surprisingly, despite the cognitive diversity, the study identified strong common patterns on strategic issue interpretations among the companies. In addition, the study shows that the sustainability management issues have gained minor attention from the boards of directors.

The initial industry sample provided relatively restricted perspectives on managerial cognition, and to confirm the findings regarding the effects of industry on the shared cognitive maps of top decision-makers, wider industry-level data are needed.

This study provides an approach to facilitate the process of strategic decision-making for top decision-makers by identifying the shared beliefs of the selected strategic theme and to concentrate on the most central strategic issues in the company and industry. It reveals asymmetry between the significance of sustainability issues in an open agenda and the real position of sustainability concepts in the shared cognitive maps in the green industry. Also, the study advances cognitive mapping techniques for application in the board’s decision-making.

This paper contributes to brightening the black box of corporate governance by shedding light on the interaction of the concepts of corporate sustainability and other key strategic issues within the shared cognitive maps of the boards. It also provides new empirical knowledge on top decision-making processes and the effects of cognitive diversity on the strategic issue interpretations within the corporate boards of the green industry, and it further develops the methodology for the quantification of cognitive diversity and the content of cognitive maps.

The purpose of the paper is to examine empirically Granger causality relationships between corporate social performance (CSP) and corporate financial performance (CFP) in four different industries.

The paper uses the Granger causality test to analyse the causality relationships between CSP and CFP in clothing, energy, food and forest industries in the USA. The panel data used combined CSP and CFP measures over the years 1991-2009. CSP strengths and concerns are handled as distinct constructs.

There is some evidence of bidirectional causality between CSP and CFP in the clothing, energy and forest industries; but in the food industry, CSP appears not to Granger-cause CFP. The results encourage accounting for the industry in empirical analyses, as well as the use of more than one measure for CFP in the analyses.

The direction of causality between CSP and CFP has been specifically addressed in only a few studies. Because the causality relationship may, in addition, be concealed when multi-industry data are used, this paper contributes to the literature by examining the Granger causality between CSP and CFP in four different industry contexts using two different measures of CFP.

The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider both costs and benefits of different governance choices and to examine which of the activities could be outsourced and which it is preferable to keep in‐house. The study makes a distinction between the electricity retail services and electricity distribution network activities and focuses solely on the network business.

The study is based on a four‐staged process and utilizes the extended transaction cost economics as a theoretical framework. The research design includes in‐depth interviews with ten managers and CEOs of Finnish electrical utilities, analysis and interpretation of findings and verification of results by electricity network business experts.

The extended transactional cost economics theoretical framework and research design support analysis of governance structures and make‐or‐buy decisions. The findings demonstrate that the activities of the companies operating in the electricity distribution business differ in terms of potential long‐term efficiency effects when sourced from the market or made in‐house. The determinants of the governance choice depend partly on the nature and strategic importance of the activity in question. Operations management seems to be a function to be kept in‐house in the current market situation, whereas there are clear potential benefits that can be obtained by outsourcing field work activities. The results related to the governance of control room activities are more complicated.

This study brings not only the transaction costs but also the benefit‐side and the dynamic aspects of boundary choices under assessment.

Organizations are finding it more and more difficult to stay in balance with the pace of change. The continuous rise of business opportunities and the increase in global competition demands proactive knowledge management tools, new capabilities and an ability to renew and reconfigure existing capabilities. This paper presents a framework of the scenario process as a management tool for creating and sharing future‐oriented tacit knowledge in knowledge networks and describes how dynamic capabilities can be developed in view of future scenarios. The theoretical framework was tested in an inter‐industrial research project resulting in very promising findings about managing tacit, future‐oriented knowledge.

The purpose of this paper is to shed light on the boundary choices of firms operating in the pulp and paper industry.

Explorative interviews were conducted with senior managers of pulp and paper companies, and comparative data on other industries were collected. The theoretical approach was based on extended transaction‐cost economics (TCE).

The results demonstrate that when company decision makers consider the governance choice for different activities, i.e. make or buy, the determinants implied in traditional TCE are not the only relevant factors. Transaction or management benefits are also important, and managers also take into account the long‐term effects of boundary choices. The determinants of governance choices depend on the nature and strategic importance of the activity in question: when it is a question of outsourcing marginal activities, for example, management costs and dynamic transaction benefits seem to be of most significance. On the other hand, transaction costs and dynamic management benefits have a major role in the definition of boundary choices related to core activities.

This research paper is explorative. Further quantitative research would enhance the generalizability of the findings.

This paper demonstrates that the factors managers implicitly take into account when considering firm boundaries could be explicitly assessed through the application of extended transaction‐cost logic. This would help to make the decision making more structured and would highlight the relevant factors affecting these boundaries.

Traditional transaction‐cost theory has been criticised for neglecting value‐creation issues that may also be essential in terms of explaining the firm's boundary choices. This study brings not only transaction costs but also the benefits and dynamic aspects of these choices under scrutiny.

Knowledge‐based assets and organizational learning capabilities are recognized to be critical for firm's innovation activities. The process of creating new knowledge requires acquiring useful data and information, and utilizing it effectively in its internal innovation activities. To manage external knowledge, firms need absorptive capacity. The purpose of this study is to present the concept of the firm's absorptive capacity as a multidimensional, dynamic construct consisting of capabilities for organizational knowledge processing.

The paper draws on results from a large‐scale survey. The empirical data used in the study comprises of 217 Finnish firms from seven different industry sectors. The hypotheses were tested by means of hierarchical linear regression analysis.

The results of the empirical tests give some support to the view that it is not only the firm's knowledge stock but also its knowledge flows that are crucial for sustaining innovative performance. The regression estimation shows that knowledge‐utilization capabilities were reflected in the firm's innovative performance.

As the data used in the study was cross‐sectional, the causal relationships and the sustainability of innovative performance cannot be captured. Avenues for further research include the interaction between the firm's knowledge base, knowledge processes and innovativeness.

This study emphasizes the importance of the firm's ability to utilize and renew its knowledge base effectively. In order to utilize externally generated knowledge, firms need an ability to internalize it and then combine the information and new insights with the existing knowledge base.

As only little empirical research has been conducted on the impact of knowledge‐processing capabilities on the firm's innovative performance, the empirical evidence reported here makes a valuable contribution in this highly important area.

The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.

A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.

The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.

It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.

Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.

The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.

Firms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).

A quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.

Results showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.

One of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.