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The purpose of this paper is to study management control mechanisms (social, behavioral, and output control mechanisms) and their complementary effects on firm performance in lean manufacturing firms.

The study uses second-order structural equation modeling to analyze survey data from 368 different lean manufacturing facilities.

The paper finds that the complementary effects of management control mechanisms in lean manufacturing firms outweigh their additive effects on firm performance.

Applying isolated lean management control mechanisms leads to inferior performance, as these management control mechanisms are complementary. Thus, to realize the full potential of lean manufacturing, this paper suggests that lean management control mechanisms should be implemented as an integrated control system.

Firms seeking to benefit from the implementation of lean manufacturing should understand the complementarity among the management control mechanisms, as the performance effects of lean management control mechanisms when applied together are greater than their isolated additive effects.

This paper is the first to provide empirical evidence of the superior firm performance effects of complementary lean management control mechanisms compared with their additive effects. This paper also expands the understanding of how to conceptualize lean management control mechanisms. Specifically, this is the first paper to distinguish between social cultural control and social visual control mechanisms as well as between non-financial and financial control mechanisms. This paper is also the first to use a second-order structural equation model to properly test and account for the complementary effects on firm performance that stem from multiple control mechanisms.

This chapter explores the extent to which an innovator is able to capture innovation rents. After examining the two main drivers of such rents, the strength of the appropriability regime and the ownership of specialized complementary assets, the chapter examines how their interaction is so critical in affecting imitation, commercialization options, and firm performance. After reviewing the underlying conceptual framework and empirical evidence, and using a perspective that cuts across both time and industries, the authors then discuss the implications of innovation profits for the resources to be devoted to the discovery of new or improved product and processes.

While the performance benefits of relational resources and managerial ambidexterity have been widely discussed in coopetition literature, there is only limited evidence that illustrates the underlying relationships between these relational resources and managerial ambidexterity. Against this background, this paper aims to investigate how managerial ambidexterity moderates the innovation ambidexterity effects of relational resources (i.e. reciprocal investments and complementary resources).

This study forwards various hypotheses that are grounded within the theoretical tenets of the relational view and the dynamic capabilities perspective. To test the hypotheses, this study uses survey data provided by 313 firms that pursue horizontal coopetition relationships.

The research findings offer important insights in that while reciprocal investments lead to innovation ambidexterity, complementary resources do not result in such benefits. Additionally, managerial ambidexterity complements the relational resources to develop innovation ambidexterity if and only if both managerial exploration and exploitation are applied simultaneously.

As opposed to widely-held beliefs, this study finds that firms' use of complementary resources is not likely to lead to innovation ambidexterity even though such resources can help in developing strong relationships. In addition, although often overlooked, managerial ambidexterity plays a vital role in transforming relational resources into useful innovations for firms involved in coopetition relationships. It is crucial for firms that their managers balance their ambidextrous activities of exploration and exploitation so as to develop innovation ambidexterity.

This paper aims to propose models that capture the own effect of price promotions of virtue and vice products on sales and cross effects within the subcategory, between subcategories and between periods. The hypotheses assume that, due to reverse consumption self-control, the demand for vice products is more price-sensitive than demand for virtue products, but the demand for vice products is less price-sensitive between periods than demand for virtue products; furthermore, due to the degree of impulse-buying and to licensing, the demand sensitivity of the products of a subcategory and of those of other subcategories varies according to the type of promoted product (vice or virtue).

The methodology is based on different econometrical models that estimate the total net effect of price promotions of virtue and vice products on sales.

The results show a greater own effect for price promotions of vice products than for virtue products. However, the complementary sales effect between subcategories for virtue products facilitates greater expansion of the subcategory in virtue products than in vice products.

Although price promotions of virtue products (light) and vice products (regular) have proliferated in recent years, researchers have only estimated their own sales effect. Alternatively, the paper contributes by considering own and cross effects.

The e-business platform has become a major driver for economic growth and development. The economic success of an e-marketplace greatly depends on the extent to which buyers and sellers are attracted to enter and actively participate in the e-business platform. Existing literature lacks empirical examination of factors influencing e-business platform attractiveness (EBPA) from a seller's perspective and understudies the interplay between technical and managerial considerations.

Based on the literature on network economy, modular systems theory, control theory and social exchange theory, the paper proposed that platform flexibility and platform control (PC) would affect EBPA through both direct and interaction effects. From a survey of platform sellers, the paper explored the influencing mechanisms of EBPA using hierarchical regression and fuzzy-set qualitative comparative analysis (fsQCA) to understand the statistical associations and the set relations of the conjunctions and conditions.

The paper found that platform flexibility (PF), process control and clan control (CC) positively affected EBPA. In addition, the interaction between PF and process control demonstrated a substitution effect on EBPA, and the interaction between PF and CC demonstrated a complementary effect on EBPA. Also, the authors found that the interaction between process control and CC demonstrated a complementary effect on EBPA. fsQCA provided the configurations of causal recipes associated with EBPA.

From a seller's perspective, the paper presents both theoretical explanation and empirical evidence for how design factors (e.g. PF) and governance factors (e.g. process control and CC) may interplay to influence EBPA.

Scholars and practitioners increasingly recognize data as an important source of business opportunities, but research on the effect on small and medium-sized enterprises (SMEs) is limited. This paper empirically examines the complementary impact of SMEs' data capability and supply chain capability (SCC) and further tests the mediation effect of SCC between data capability and operational performance. The mediated effect of data capability is also moderated by competition.

This paper analyzes longitudinal data collected from 122 manufacturing SMEs in Finland. Hypotheses were tested by using structural equation modeling (SEM).

The results show that to benefit from the data capability, SMEs require a certain level of SCC to extract the value from the SMEs' data capability and support operational performance. Additionally, competition affects how SMEs benefit from data capability, as competitor turbulence moderates the complementary effect of data capability and SCC on operational performance.

This is one of the first studies examining the longitudinal effect of SMEs' data and SCC on operational performance in the current competitive environment.

The interorganizational environment faced by business organizations presents unique challenges for management accounting and control. Past management accounting research has shown interest in such collaborations because despite their benefits, such relationships pose significant issues of coordination and control. As information and communication systems supplement management control systems in their support of decision facilitation and decision influencing, examining the design of management accounting systems (MASs) in the management of interorganizational relationships and assessing how it affects the attainment of interorganizational exchange partner performance objectives is important. In this chapter, I extend past accounting research to examine the complementary nature of decision-facilitation and decision-influencing objectives of MAS design as enabled by the use of integrated information systems in interorganizational settings. The economic theory of complementarity is employed to examine synergistic effects of complementary MAS objectives. A field survey is used to examine hypothesized relationships, and data were obtained from 116 organizations involved in strategic alliance activity. This chapter reports findings that support the view that the degree of complementarity in decision-facilitation and decision-influencing objectives assists in the development of capabilities that enhance performance in the interorganizational relationship. The study blends theory in the areas of strategy, information systems, and management accounting and extends management accounting research in the context of IT-enabled interorganizational relationships.

The authors aim to measure the effects of ambidextrous innovation and its mix strategy on organizational obsolescence with the moderating roles of environmental turbulence.

Hierarchical regression analysis was used to test the hypotheses on the basis of the survey data of 198 firm employees in China.

Both exploratory and exploitative innovations significantly restrain organizational obsolescence. The complementary strategy of ambidextrous innovation is negatively correlated to organizational obsolescence, but the impact of balanced strategy is not significant. Environmental turbulence negatively moderates the relationship between exploratory innovation and organizational obsolescence, whereas it cannot moderate the effect of exploitative innovation.

The empirical and conceptual findings have important implications for organizations countering obsolescence through the construction of a mix strategy of ambidextrous innovation. This study enriches and extends obsolescence theory by introducing the joint mechanism of ambidextrous innovation and environmental turbulence.

This paper aims to examine the impact of two psychological drivers, namely, psychological capital (PsyCap) and moral courage on internal audit effectiveness (IAE) and whether there is a substitution effect or complementary role of these psychological factors on IAE in the Tunisian setting.

IAE is measured using managers’ perceptions of the internal audit function based on 157 responses received from managers, while the remaining variables (including PsyCap and moral courage) are based on 157 internal auditors’ responses.

Findings suggest that PsyCap has a positive and significant impact on IAE, while moral courage has an insignificant impact on the same variable. Accordingly, PsyCap and moral courage are not playing a complementary role in improving IAE, and PsyCap substitutes for moral courage in increasing IAE. A battery of checks using interaction terms between moral courage and PsyCap corroborate these findings.

To the best of the author’s knowledge, this study fills one of the major research gaps in the auditing literature by emphasizing the role played by PsyCap in improving IAE. The findings may have policy implications for top firm management, especially when recruiting internal auditors who should enjoy efficacy, hope, resilience and optimism to help the organization achieve its strategic objectives and increase its performance.

This paper explores the nonlinear interactions of research and development (R&D) and advertising and their synergistic effect on firm performance using Tobin's Q. This study also aims to investigate differential synergy patterns under varying levels of exports with a precision impact on performance.

Unlike a conventional statistical approach, this study uniquely presents a neural network approach to explore the dynamic interplay of strategic factors. A multilayer perceptron neural network (MPNN) is designed to capture complex interaction patterns through a predictive analytic process.

This study finds that the impact of R&D and advertising is positive, with a greater effect on high-export firms. Moreover, the experiment results show that the synergy of R&D and advertising goes beyond the formatted positive/negative frame and actually has a reinforcing effect.

This study not only conveys the significant nexus of R&D and advertising for firm performance but also provides industry managers' practical means to assess the joint effect of R&D and advertising on firm performance. The proposed analytic mechanism in particular provides pragmatic decision support to managers in harmonizing their R&D and advertising efforts for a foreseeable impact.

This paper presents an innovative analytic process using the MPNN to explore the synergy between R&D and advertising. In addition to offering new perspectives on R&D and advertising, this study presents pragmatic implications for managing those strategic resources to meet performance targets.