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Article

Cheng-Kui Huang, Kwo-Whei Lee and Chien-Huei Chou

Since business competition has become more intense throughout the world, most enterprises are seeking to engage in business cooperation with other partners in order to…

Abstract

Purpose

Since business competition has become more intense throughout the world, most enterprises are seeking to engage in business cooperation with other partners in order to enhance their competitive strengths. However, they do not necessarily develop mature information technologies’ (ITs) capabilities and skills internally but rather outsource them to IT providers. Therefore, the benefits received by firms which adopt the approach of business cooperation with IT providers have become an interesting issue for managers and shareholders.

Design/methodology/approach

This study adopted an event study methodology for apprising the short-term business value from the stock market. The authors predicted that investors will react as they receive news coverage about the strategy of business cooperation between outsourcing firms and an IT provider, International Business Machines (IBM) Corporation. The authors then collected all news coverage regarding the firms which had announced business cooperation with IBM and observed different types of abnormal returns.

Findings

On analyzing 53 announcements of cooperation with IBM from 2008 to 2016, the authors found that the announcement of business cooperation had a significantly positive influence on companies' market value.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the issue for market reaction to the announcement of business cooperation with IBM.

Details

Managerial Finance, vol. 46 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

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Article

Elias Hadjielias and Panikkos Poutziouris

The purpose of this paper is to investigate the conditions underpinning the cooperative relationships between family businesses. The role of trust is also explored, given…

Abstract

Purpose

The purpose of this paper is to investigate the conditions underpinning the cooperative relationships between family businesses. The role of trust is also explored, given the focus on informal conditions nested within the cooperation between firms.

Design/methodology/approach

A case study research method is adopted in this paper. This research is conducted within a cooperative association in Cyprus where 40 retail family businesses trade under the same brand.

Findings

The findings suggest that cooperation between family businesses emerges and unfolds as a result of the presence and interrelationships between a number of critical conditions: trust, altruism, collective thinking, stewardship, friendship, and family values congruence. The work illustrates that trust becomes a catalyst to the emergence and maintenance of cooperative relations between family businesses. Trust between family leaders is important in building altruism, collective thinking, and stewardship norms amongst them, and helps in sustaining the cooperation between their respective firms. At the same time, trust (stemming from past friendship and values congruence between diverse family leaders) becomes important in bringing family businesses to cooperate together at first instance. Further, the findings stress the role of critical events and self-interest in moderating the role and influence of trust on the cooperation between family businesses.

Originality/value

This paper contributes to the family business field through new knowledge on the relations between family businesses and the unique conditions that shape their long-term cooperation.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 21 no. 6
Type: Research Article
ISSN: 1355-2554

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Article

Cristian Geldes, Jorge Heredia, Christian Felzensztein and Marcos Mora

This paper aims to use the proximity approach of economic geography with its spatial dimension (geographic) and their non-spatial dimensions (social, institutional…

Abstract

Purpose

This paper aims to use the proximity approach of economic geography with its spatial dimension (geographic) and their non-spatial dimensions (social, institutional, cognitive and organizational) to shed light on the determinants of business cooperation with other organizations. It is also examined whetherthis cooperation is a determining factor for business innovation (innovation networks), drawing a distinction between technological and non-technological innovations.

Design/methodology/approach

The study has a quantitative approach; it analyzes the case of 312 companies in a cluster of agribusinesses in an emerging economy (Chile). The proposal model and its interrelations are tested with exploratory factor analysis, confirmatory factor analysis and structural equation modeling.

Findings

The results show that cognitive-organizational proximity is a positive determinant of business cooperation with other organizations, whereas social and institutional proximity are negative determinants. It is also established that business cooperation is a positive determinant of business innovation. It is more relevant in the case of technological innovation unlike non-technological innovations. In addition, it is noted that business cooperation levels are lower in micro-enterprises, a result that differs from developed countries.

Practical implications

For business managers, it is best to cooperate with companies that are similar in terms of cognitive and organizational levels for innovation. At the same time, it is necessary develop strategies to reduce the social and institutional barriers to cooperation, especially in the agribusiness sector.

Originality/value

The contributions of the study are as follows: an in-depth quantitative examination of the relationships of various non-spatial proximities as determinants of business cooperation; an analysis of whether business cooperation with other organizations is a determining factor for business innovation, distinguishing between technological and non-technological innovation; and testing these relationships in the context of agribusiness in an emerging economy such as Chile’s because most of studies are related to high-tech sector and developed economies.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 1
Type: Research Article
ISSN: 0885-8624

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Article

Valeriano Sanchez-Famoso, Myriam Cano-Rubio and Guadalupe Fuentes-Lombardo

This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of…

Abstract

Purpose

This study aims to identify the mediating role of cooperation agreements in the relationship between family involvement in international firms and their level of international commitment.

Design/methodology/approach

The study focuses on Spanish international wine and olive oil companies that have varying levels of family involvement. The final sample consists of 263 companies. SmartPLS was used to perform the analysis.

Findings

A higher level of family involvement in business implies greater difficulties with cooperation agreements. Additionally, family involvement is negatively associated with the firm’s level of international commitment, and the perceived difficulties of cooperation agreements mediate this relationship.

Practical implications

This study is of interest to business managers with different levels of family involvement. The study clarifies their perceptions of cooperation agreements and international business commitment. Managers of firms with a high level of family involvement should emphasize the multiple benefits of cooperation agreements for international strategy performance rather than the drawbacks of cooperation. Additionally, through cooperation, companies can learn about destination markets, which may help them to focus their resources effectively in those markets.

Originality/value

This study contributes to the literature on the internationalization strategies of family businesses. This study is the first to address the mediating role of cooperation agreements in the relationship between family involvement and international commitment.

Details

International Journal of Wine Business Research, vol. 31 no. 4
Type: Research Article
ISSN: 1751-1062

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Article

Lars Ehrengren and Bengt Hörnsten

The purpose of this paper is to investigate if business practices for performance through risk control methods can be applied by defence forces in peace missions called…

Abstract

Purpose

The purpose of this paper is to investigate if business practices for performance through risk control methods can be applied by defence forces in peace missions called for by the United Nations (UN) in order to improve the efficiency of such missions.

Design/methodology/approach

Extensive studies of existing theories on business cooperation risk control were performed as well as studies of the organizational and legal structures for Swedish participation in international military missions. These studies were followed by interviews with politicians and military officers of high ranks regarding cooperation in such missions and the interviews were analyzed with respect to the theoretical methods and their validity for the military sector.

Findings

The authors' conclusion is that an adoption of some of the existing business risk control management methods could improve the efficiency of military risk management. The first step in such organizational knowledge transfer is to improve the form for and the formulation of more stringent objectives for the military mission.

Originality/value

The study indicates how the performance of international peace missions can be improved by application of risk control methods from the business sector.

Details

International Journal of Productivity and Performance Management, vol. 60 no. 4
Type: Research Article
ISSN: 1741-0401

Keywords

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Article

Anthony Ayakwah, Leandro Sepulveda and Fergus Lyon

An efficient policy supporting clustered business operations necessitates an appreciation of the dynamics of rivalry and collaborations among businesses. This paper…

Abstract

Purpose

An efficient policy supporting clustered business operations necessitates an appreciation of the dynamics of rivalry and collaborations among businesses. This paper postulates that variation in competition and cooperation can significantly influence the nature of business relationships among clustered businesses, which is essential for cluster policy particularly (Newlands, 2003) as most research on rivalry and cooperation in clusters have been in developed economies. The purpose of this paper is to seek to fill the gap in the literature in African clusters based on original empirical research.

Design/methodology/approach

The study adopts a mixed-method research design allowing for data triangulation to study two food processing clusters. The approach comprises a survey and in-depth interview with key actors along the supply chain.

Findings

The findings show that business clusters with more formal business structures tend to have minimal horizontal competition but higher vertical cooperation. Comparatively, clusters with more socially embedded milieu tend to have higher levels of cooperation and minimal competition in both vertical and horizontal relationships. The research also shows that such variations in inter-business relationships have an effect on cluster operations in terms of business access to finance, formal contract, sharing of innovation and the way they relate to different stakeholders in their supply chain.

Originality/value

This paper advances a critical case for international business theory on clusters in Africa to incorporate the distinctive business relationships in small and medium enterprises (SME) clusters. It also demonstrates how unique location-specific attributes of developing economies hold the key to sustaining the operations of SME-based clusters.

Details

critical perspectives on international business, vol. 14 no. 2/3
Type: Research Article
ISSN: 1742-2043

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Article

Mukhamad Najib and Akira Kiminami

The purpose of this paper is threefold: to understand the cooperation activities of small and medium enterprises (SMEs) in food processing industry clusters; to understand…

Abstract

Purpose

The purpose of this paper is threefold: to understand the cooperation activities of small and medium enterprises (SMEs) in food processing industry clusters; to understand the role of cooperation in improving innovation; and to understand the relationship between cooperation, innovation, and business performance of SMEs in food processing industry clusters in rural areas of Indonesia.

Design/methodology/approach

An empirical survey was conducted on SMEs in food processing industry clusters. Primary data collected in five SMEs clusters were analyzed by regression and correlation analyses using the path‐analytic approach. In this study, the following two hypotheses were examined: cooperation is positively related to innovation; and innovation of SMEs is positively related to business performance.

Findings

Using the path analytical method, this paper provides evidence that cooperation is significantly related to innovation of SMEs in food processing industry clusters. Moreover, business performance is a function of innovation, in which research results show that innovation significantly affects the business performance of SMEs.

Originality/value

This paper contributes to the extant literature by providing empirical evidence that the cooperation of SMEs with universities and other firms, which are activities more likely to occur within clusters, is positively associated with innovation. Such a contribution is very important for completing the explanation of innovation phenomena that exists in the clusters, since empirical research exploring the role of cooperation in the innovation of SMEs in food processing industry clusters is still rare.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 1 no. 1
Type: Research Article
ISSN: 2044-0839

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Book part

Maria Alejandra Pineda-Escobar and Fabian Garzon-Cuervo

The purpose of this chapter is to call for a better cohesion between development cooperation, on the one hand, and inclusive business, on the other. This contributes to…

Abstract

Purpose

The purpose of this chapter is to call for a better cohesion between development cooperation, on the one hand, and inclusive business, on the other. This contributes to the existing post recessionary debate on development cooperation, in which, (i) traditional aid and partnership effectiveness are being revised and, (ii) the role of the private sector in development is being emphasized. It builds on recent discussions that call for a more strategic use of development cooperation to leverage other development-oriented flows, particularly those coming from the private sector.

Methodology/approach

The chapter corresponds to a conceptual chapter. Results were obtained through the study and comparison of secondary sources and a literature review. It first explores donor-private sector relations, paying particular attention to the OECD Development Assistance Committee (DAC), and then moves on to the study of inclusive business in relation to development aid.

Findings

The study first reflects upon shifts perceived in development cooperation since the Great Recession, and analyses how foreign donors have engaged more widely with businesses for addressing global development challenges. The concept of inclusive business is then introduced, describing how although the development community acknowledges the potential of the private sector as a driving force for development, inclusive business have hitherto been developing, to a great extent, aside of broader development efforts. The final section presents a typology that proposes various ways in which donor agencies may integrate inclusive business support into their private sector programs.

Practical implications

The chapter is of use for both academics and practitioners with an interest in development cooperation and/or inclusive business.

Originality/value

Proposing a conceptual study that tends toward a greater cohesion between inclusive business and development cooperation is a contribution to the literature that has emerged on Base of the Pyramid markets since early 2000s. It is argued that such cohesion may prove valuable for the betterment of public-private relations, turning them more responsive to the challenges of sustainable development in the post-2015 world.

Details

Lessons from the Great Recession: At the Crossroads of Sustainability and Recovery
Type: Book
ISBN: 978-1-78560-743-1

Keywords

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Article

Annoch Isa Hadjikhani and Cecilia Lindh

This study aims to hypothesize that the implementation of information technology (IT) in industrial business relationships entails both positive and negative effects for…

Abstract

Purpose

This study aims to hypothesize that the implementation of information technology (IT) in industrial business relationships entails both positive and negative effects for the relationship’s continuation. The purpose is to study the digitalization of business relationships with a focus on effects on commitment in context with uncertainty and cooperation.

Design/methodology/approach

Hypotheses are tested with data from 353 customer relationships in the industrial market. The model suggests the impact of IT on business relationship commitment.

Findings

The results show that IT use in industrial relationships has a direct impact on commitment, as well as an indirect effect via uncertainty and cooperation, which both can increase as a result of IT use. When IT use increases uncertainty, it negatively impacts commitment, and when it increases cooperation, the effect on commitment is positive.

Research limitations/implications

IT use in industrial relationships has a direct impact on commitment, as well as an indirect effect via uncertainty and cooperation, which both can increase as a result of IT use. When IT use increases uncertainty, it negatively impacts commitment, and when it increases cooperation, the effect on commitment is positive.

Practical implications

Awareness of the effect of IT use and the factors involved entails working with cooperative activities to counteract the negative impact there may be if the IT leads to increased uncertainty. Companies need to have knowledge regarding the effect of IT use in each of their business relationships to manage them according to their given situation.

Originality/value

This study contributes to industrial marketing by demonstrating that digitalization can increase uncertainty and cooperation (differently), and they have different effects on commitment, thus that there is a “bright,” as well as “dark” side to it, evident in the business relationship dynamics.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Raymond P.M. Chow and Oliver H.M. Yau

This paper seeks to develop a business model depicting the relationship between harmony, cooperation, and international joint ventures (IJV) performance.

Abstract

Purpose

This paper seeks to develop a business model depicting the relationship between harmony, cooperation, and international joint ventures (IJV) performance.

Design/methodology/approach

The paper takes the form of a quantitative empirical study with the aim of making a contribution to the knowledge of the effects of harmony and cooperation on IJV performance. An interviewer‐administered questionnaire survey method was used for data collection.

Findings

The business model supports the proposed existence that harmony has both direct and indirect effects on IJV performance. While interorganizational harmony directly affects the performance of the company, it promotes cooperation and in turn enhances performance.

Research limitations/implications

Owing to the exploratory nature of this study, the findings are indicative rather than conclusive. Future studies should be conducted to examine the validity and generalizability of this model in other cultural contexts.

Practical implications

This study provides empirical support for the importance of harmony and cooperation in conducting business in China, and it has significant implications for international marketers. When formulating new venture strategies in the greater China market, the model developed in this study can help to gauge the degrees of harmony and cooperation held by IJV partners.

Originality/value

This study demonstrates and validates the importance of harmony and cooperation in business ventures in general and in the Chinese business environment in particular. This study also signals that there are important implications for future research in emerging or transitional economies.

Details

Cross Cultural Management: An International Journal, vol. 17 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

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