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Book part
Publication date: 25 April 2013

Gregory Jackson and Na Ni

The growing literature on complementarities has drawn attention to how the effects of different organizational structures, practices, and institutions are interdependent…

Abstract

The growing literature on complementarities has drawn attention to how the effects of different organizational structures, practices, and institutions are interdependent. Rather than one best way of organizing, complementarities suggest that the effectiveness of one organizational element may be dependent on the presence or absence of another particular element. Consequently, organizational arrangements often display “multiple equilibria” or what is known as equifinality, whereby multiple pathways may lead to the same or similar outcomes. While being a source of theoretical innovation, the configurational nature of complementarities has posed a number of challenges. This chapter reviews the emerging literature on complementarities to identify a series of conceptual challenges related to understanding complementarities as organizational configurations, and examines the methodological challenges in studying how such elements combine to produce joint effects on performance. The chapter argues that new set-theoretic methods using Qualitative Comparative Analysis (QCA) may present a very useful methodological alternative to studying complementarities. The chapter illustrates this potential by re-analyzing past work by Aoki, Jackson, and Miyajima (2007) on relationships between ownership structure, board structure, and employment practices of listed firms in Japan to show evidence of complementarities associated with hybrid configurations that combine market and relational forms of organization.

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Configurational Theory and Methods in Organizational Research
Type: Book
ISBN: 978-1-78190-778-8

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Book part
Publication date: 15 July 2020

David Kryscynski, Russell Coff, Benjamin A. Campbell and Brittany Mallory

In the context of worker–firm complementarities, the extant literature has focused primarily on worker–firm dyads that generate additional revenue for the firm. However

Abstract

In the context of worker–firm complementarities, the extant literature has focused primarily on worker–firm dyads that generate additional revenue for the firm. However, we extend the study of worker–firm complementarities by examining matches that create value through the generation of additional nonpecuniary utility for employees. Through this lens, we hypothesize that mobile employees will receive lower wages to offset the benefits they receive from these nonpecuniary complementarities. Further, we hypothesize that star employees who create unique revenue-generating complementarities receive higher wages than otherwise predicted as they can capture a share of the additional revenue they generate. We test this conceptualization using panel data on all US National Basketball Association players from 2000 to 2009. We demonstrate that NBA players accept lower than predicted wages to play for their home teams which reflects worker utility-generating complementarities. We also show that superstars receive higher than predicted wages to play for their home teams, consistent with firm revenue-generating complementarities.

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Employee Inter- and Intra-Firm Mobility
Type: Book
ISBN: 978-1-78973-550-5

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Article
Publication date: 1 March 2021

Javad Feizabadi, David M. Gligor and Somayeh Alibakhshi

Drawing on complementarity theory, this paper aims to examine the type and effect of interdependencies/interaction (i.e. complementarity or substitutability) between the…

Abstract

Purpose

Drawing on complementarity theory, this paper aims to examine the type and effect of interdependencies/interaction (i.e. complementarity or substitutability) between the supply chain capabilities of agility, adaptability and alignment.

Design/methodology/approach

A survey research design is adopted to collect primary and secondary data from 182 international firms. The complementarity (or substitutability) of three As (agile, adaptable and aligned) were analyzed in three-way and pairwise interactions; both, correlation and performance differences methods of testing the type of interactions among the system’s elements were used. Supply chain-centric and firm-centric performance metrics were used to examine the interaction types.

Findings

The study did not find empirical evidence of three-way complementarity between the three As. However, this paper did find evidence of complementarity in bivariate interactions for alignment and adaptability. Moreover, in the performance difference method, the study found a substitute relationship between all pairs of As.

Practical implications

The findings related to the substitutability between the three As offer managers guidance on how to allocate their limited resources to avoid unnecessary over-or under-investing in either one of the three As.

Originality/value

This study helps refine prior findings related to the three As by offering evidence that firms can still achieve their performance-related goals with reduced investment commitments by taking advantage of the substitutability relationship existent between these capabilities. That is, instead of concomitantly developing all three As as past studies have suggested, managers can use the findings to determine how to prioritize their resource allocation better. Furthermore, understanding the actual interaction among the supply chain variables generally provide insights for designing the supply chain, change management in the supply chain, developing supply chain strategy and adopting best practices in the supply chain.

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Supply Chain Management: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 2 March 2020

Yong Liu, Xiaoying Wang and Wenwen Ren

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales…

Abstract

Purpose

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales strategies for a two-stage supply chain.

Design/methodology/approach

With respect to two-stage supply chain consisting of two manufacturers who produce imperfect complementary products and one retailer who sells the products, aiming at bundling sales strategy, the authors define complementarity elasticity of products and use it to measure the degree of complementary between two products. Based on Stackelberg game and cooperation, the authors analyze the relationship between the complementarity degrees of imperfect complementary products and appropriate sales strategies.

Findings

As the impact of complementarity degree on sales strategy decision-making is better, the authors can pinpoint out which sales decision-making is optimal and which bundling sales strategy is the best for a two-stage supply chain. Considering that the degree of complementarity has a significant impact on the product sales strategy, the authors can point out which sales decision-making is optimal, that is, which bundled sales strategy is the optimal in the secondary supply chain of selling complementary products.

Practical implications

An innovative bundling can expand the sales of existing products and new products. It helps a retailer transcend and defeat competitors by reducing marketing expenses while increasing profits. Proper use of bundling can improve consumers utility and create an overall positive effect for both the enterprises and consumer.

Originality/value

The research can help some retailers to make many appropriate bundling sales strategies.

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Journal of Business & Industrial Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 19 July 2011

Andrea Furlan, Andrea Vinelli and Giorgia Dal Pont

The paper aims to test and validate the complementarity effects on operational performance of two of the main lean manufacturing bundles, just‐in‐time (JIT) and total…

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Abstract

Purpose

The paper aims to test and validate the complementarity effects on operational performance of two of the main lean manufacturing bundles, just‐in‐time (JIT) and total quality management (TQM). The paper also explores the role played by the human resource management (HRM) bundle as an enhancer of the complementarity between JIT and TQM.

Design/methodology/approach

The paper is based on statistical analysis on the high performance manufacturing round III database, a survey that involves 266 plants in nine countries across three different industries (electronics, machinery and transportation components).

Findings

The paper proves the existence of complementarity between JIT and TQM and shows the enabling role of HRM on such complementarity.

Research limitations/implications

The paper provides analytical and empirical argumentations showing that JIT and TQM mutually reinforce each other's marginal returns on operational performance. The study also indicates that only those plants characterized by a significant implementation of HRM practices enjoy the complementarity effects of TQM and JIT on operational performance.

Practical implications

The research suggests a pattern of improvements where JIT and TQM have to be implemented hand‐in‐hand to take full advantage of their complementarity. HRM, the soft part of lean initiatives, provides the ground over which complementarity originates, spreading its benefits throughout the organization.

Originality/value

The study represents one of the few attempts trying to operationalize and empirically validate the concept of complementarity. The study also provides original suggestions to practitioners on how to make the most out of lean initiatives.

Details

International Journal of Operations & Production Management, vol. 31 no. 8
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 10 October 2016

Valentin Gattol, Maria Sääksjärvi, Tripat Gill and Jan Schoormans

Previous research in the context of feature fit has examined the effects of congruence (i.e. more specifically, the extent to which a new feature and the product are…

Abstract

Purpose

Previous research in the context of feature fit has examined the effects of congruence (i.e. more specifically, the extent to which a new feature and the product are similar in the hedonic-utilitarian benefits they provide to consumers). The purpose of this paper is to examine a second dimension of feature fit: complementarity (i.e. the extent to which a new feature is related and contributing to the main functionality of the product).

Design/methodology/approach

The role of feature fit is examined in two experimental studies (n=593) in the context of feature additions, and also for feature deletions.

Findings

The results showed that complementarity adds value to a product as an additional dimension of feature fit beyond congruence, complementarity matters more for a hedonic than for a utilitarian product, and complementarity can compensate for lack of congruence.

Originality/value

For a product developer, adding new features to a product offers an array of choices in terms of what feature(s) to include. Although having a large pool of potential features to choose from is attractive it can also prove problematic, as products may become overly complex and features do not fit well together. The results demonstrate the importance of both congruence and complementarity as predictors of feature fit when features are added to or deleted from products.

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European Journal of Innovation Management, vol. 19 no. 4
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 25 October 2019

Pedro Torres and Mário Augusto

The purpose of this paper is to better understand complementarities-in-performance of three forms of innovations: product innovation, process innovation and organizational…

Abstract

Purpose

The purpose of this paper is to better understand complementarities-in-performance of three forms of innovations: product innovation, process innovation and organizational innovation. Additionally, complementarities-in-use for product innovation are examined, considering an additional condition: manufacturing flexibility.

Design/methodology/approach

Using data from 223 unlisted Portuguese industrial firms, and a fuzzy-set qualitative comparative analysis, different combinations of different forms of innovations were examined to identify complementarities-in-performance and complementarities-in-use.

Findings

Through the configurational analysis, a path to achieve high performance was uncovered, which includes the presence of both product and organizational innovations. The study also reveals that the joint absence of two conditions (from the three that were considered in the analysis) can lead to low performance. This result indicates that the relationships among the antecedent conditions are non-linear. The configurational analysis also shows that the combination of manufacturing flexibility with either process innovation or organizational innovation can lead to high product innovation. This result confirms that manufacturing flexibility is an important condition for product innovation.

Research limitations/implications

The empirical evidence reported in this paper may be influenced by the definitions that were considered. Further conceptual and empirical research is encouraged to corroborate (or refute) or consolidate the findings presented herein. Moreover, although the obtained results present a high empirical coverage, other antecedent conditions beyond the scope of this study can also play an important role; for instance, marketing could influence innovation performance. Furthermore, radical innovation was not distinguished from incremental innovation when analyzing firm performance.

Practical implications

This study provides some clues for policy makers who aim to enhance firm performance through innovation. Managers should focus on both organizational and technological innovations, in particular product innovation, to improve firm performance. Moreover, they should be aware of the complementarities-in-use for product innovation. Considering the importance of developing product innovation to enhance performance, firms should promote high levels of product innovation. To achieve this outcome, manufacturing flexibility should be present.

Originality/value

Focusing on a very complex and still under-researched topic, this study contributes to the complementarities literature in several ways. This study employs a configurational approach to better understand complementarities and to integrate technological and organizational innovations. By taking this approach, this study acknowledges the existence of non-linearity and identifies not only the strategies to achieve high performance, but also the configurations that lead to low performance.

Details

European Journal of Innovation Management, vol. 23 no. 5
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 4 September 2019

Gordhan K. Saini, Arvind Sahay and Gurumurthy Kalyanaram

This paper aims to examine three important questions: What would be the effects of pricing at the lower end of a wide vs narrow latitude of price acceptance (LPA) on…

Abstract

Purpose

This paper aims to examine three important questions: What would be the effects of pricing at the lower end of a wide vs narrow latitude of price acceptance (LPA) on consumer choice of the bundle? How would the nature of a bundle frame (i.e. discount on bundle vs discount on components) and discount frame (i.e. discount as absolute off vs discount as percentage off) influence the preference given to a price level that is at the wide or narrow end of the LPA? Would the effect be significantly different if the bundle components were complementary vs if they were non-complementary?

Design/methodology/approach

The authors carried out two studies using between-subject experimental design. In Study 1, the authors used 2 (LPA: wide/narrow) × 2 (complementarity: yes/no) × 2 (bundle frame: together/separate) design, and in Study 2, the authors replaced bundle frame with discount frame (i.e. absolute off/percentage off).

Findings

The authors find that the LPA effect is likely to outweigh the complementarity effect; however, a combined effect of complementarity and bundle frame is stronger than the LPA effect. Also, for a wide (narrow) LPA product bundle, absolute off (percentage off) discount frame is more attractive.

Practical implications

Managers should use bundling strategy with complementary products having wider LPA. In case of wide LPA and complementary products, both together and separate frame could be the best bundling strategy while in case of narrow LPA and complementary products, together frame could be the best bundling strategy.

Originality/value

The main contribution relates to the role LPA plays in consumer evaluation of a bundle offer and its interaction with complementarity and discount frame. The authors apply the range hypothesis principles (i.e. price-attractiveness judgments are based on a comparison of market prices to the endpoints of a range of evoked prices) in the bundling context and extend the earlier work in the area of complementarity and discount frame.

Details

Journal of Consumer Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 3 August 2015

Hao-Chen Huang, Mei-Chi Lai and Wei-Wei Huang

This study aims to examine the potential impact of external complementary resources on inbound open innovation and whether transformative capacity acts as a mediator in…

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Abstract

Purpose

This study aims to examine the potential impact of external complementary resources on inbound open innovation and whether transformative capacity acts as a mediator in the process. If small and medium enterprises (SMEs) are to successfully implement inbound open innovation, they require injections of external complementary resources.

Design/methodology/approach

Structural equation modeling was used to conduct confirmatory factor analysis to evaluate measurement model, while ordinary least squares regression analysis was used to test the hypotheses; research data are collected using surveys of 200 Taiwanese-owned SMEs in mainland China.

Findings

Empirical results indicate that when SMEs seek to implement inbound open innovation, technological complementarity is the most important factor in resource complementarity. In addition, transformative capacity has a significant mediating role on the relationship between resource complementarity and inbound open innovation.

Originality/value

The contribution of this paper lies in explaining the role played by transformative capacity in the process of inbound open innovation for SMEs through empirical analysis.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 7
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 October 2008

Elena Bonel, Paolo Pellizzari and Elena Rocco

The concept of coopetition is founded on the complementarity‐based nature of this strategy. However, coopetition research has devoted relatively little attention to…

Abstract

The concept of coopetition is founded on the complementarity‐based nature of this strategy. However, coopetition research has devoted relatively little attention to complementarity issues and their impact on coopetition results. By bridging the coopetition and economics of complementarities research fields, we develop a model representing a classical optimization problem in complementarities as applied to coopetition in order to evaluate potential risks deriving at an operational level from implementing a coopetition strategy. The model we develop is a situated one and is based on empirical data from a longitudinal case study of coopetition in the mineral water and soft drinks industry. The results highlight a potential risk of coopetition strategies – namely, thresholds effects – as well as the associated risks a wrong understanding of complementarities in a coopetition setting may entail.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 6 no. 3
Type: Research Article
ISSN: 1536-5433

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