Search results

Smart industry initiatives focus on intelligent and interconnected cyber-physical systems. These initiatives develop complex technical architectures that integrate heterogenous technologies, causing significant organizational complexity. Tapping into the digital capabilities of distant partners while capturing profit from such innovation is demanding. Furthermore, firms often need to establish and orchestrate inter-organizational collaborations without prior relations or established trust. As a result, smart industry initiatives bring together disparate organizational forms and institutional environments, distinctive knowledge bases, and geographically dispersed organizations. We conceptualize this organizational capability as ‘distant capabilities integration’. This research explores the governance mechanisms that support such integration and their relation to value capture. We analyse 11 IoT case studies organized in three categories (process, product and technologies) of smart industry initiatives. Building on existing literature, we consider different ways to describe distance, including knowledge heterogeneity and organizational, geographical, institutional, cultural and cognitive distance. Finally, we describe the governance mode appropriate for upstream (developing foundational technologies) and downstream (leveraging existing distant technologies) smart industry initiatives.

Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local search constraints, bounded rationality, uncertain imitability, and causal ambiguity. Under high levels of uncertainty, dynamic capabilities are often externally oriented, involving acquisitions and alliances. However, nonunique but competitive predictions about the behavior of these capabilities arise from the evolutionary theory. We test these competitive hypotheses analyzing portfolios of acquisitions and alliances made by pharmaceutical firms in search of portfolios of biotech capabilities. The analysis of portfolios enables us to better identify “common practices” in the pharmaceutical industry than using a transactional‐level focus. We develop implications for the evolutionary theory and for managerial practice.

Amidst offshoring and reshoring trends, the purpose of this paper is to explore why business practitioners, especially from the labour-intensive clothing industry, choose to manufacture some products in proximity to the high-cost European market. Moreover, the rise of sustainability concerns led us to further explore whether these reasons relate to triple bottom line (TBL): business, environment and society.

The content analysis was adopted for within-case and cross-case analysis of data from semi-structured interviews of managers from 12 clothing companies.

Within-case analysis showed enablers and barriers (factors) of proximity manufacturing within each company’s characteristics under TBL. Cross-case analysis showed the most-mentioned enablers (high-quality suppliers, short lead-time and fast replenishment) and barriers (expensive production cost and lack of industrial set-up and seamstresses). The findings revealed both common and different factors from existing studies.

Besides being motives for companies to bring manufacturing back to Europe, the results can be used by researchers and companies to develop criteria and performance measures of manufacturing locations for enhancing the TBL sustainability. Future research may explore different locations and industries for possibilities of proximity–manufacturing generalisation.

Findings show that governments could focus on eliminating barriers of proximity manufacturing and creating favourable institutional infrastructure for the European clothing industry and sustainability.

This paper highlights updated proximity–manufacturing factors from practices in relation to TBL sustainability, including support for proximity manufacturing as a practice for TBL enhancement.

The purpose of this paper is to provide a more robust understanding of the development of dynamic capabilities (DCs) in service multi-units with different cultural distances (CD) (high (HCD) and low (LCD)) through the routines of embedded social capital (structural and relational) and knowledge archetype (exploitative and exploratory) learning.

The authors used survey questionnaires and structural equation modeling to discriminate the relationships among variables.

The authors found that structurally embedded social capital has a positive influence on exploratory knowledge learning in HCD service multi-units; relationally embedded social capital has a positive influence on knowledge archetype (exploitative vs exploratory) learning in both HCD and LCD service multi-units; and knowledge archetype learning has a positive influence on the development of DCs in both HCD and LCD service multi-units.

The results identify the central role of social capital (structurally and relationally embedded) in enabling knowledge archetype learning and the development of DCs in service multi-units. In addition, this study provides a description and comparison of how structurally and relationally embedded social capital are key antecedents in knowledge archetype learning and the development of DCs in the context of service multi-units with different HCD and LCD.

The results provide a practical trajectory for the development of DCs in multi-units of multinational corporations in the service industry with different HCD and LCD.

This paper aims to present a model of how incentives enhance competitive advantage by improving the sourcing, development and leveraging of firm capabilities.

The author first reviews the key findings of prominent academic and managerial papers on capability building and incentives. The author then proposes a model that advances our understanding of how incentives affect competitive advantage through capability building. The author applies this model to the empirical setting of private equity, where buyouts – by adopting the “carrot and stick” approach – improve the alignment of managerial and firm interests and, in turn, encourage capability building.

The model shows how incentives act on capabilities in three areas: the leveraging of existing capabilities, the sourcing of capabilities internally and the sourcing of capabilities externally.

The model is useful for focusing executives on how incentives impact the development of firm capabilities, which are at the core of competitive advantage.

This paper expands on existing literature by providing a model linking incentives to the competitive advantage of the firm. The model will encourage new ways of thinking about incentive programs, casting them as a method for developing firm capabilities and thereby sustaining firms’ competitive advantage.

Two major trends – demographic shifts in the working-age population, and the proliferation of web technologies – are having a profound and generally unrecognized effect on the nature and characteristics of work, and on opportunities for the mature workforce. Key features of the workplace point to seven broad work trends. These trends have significant implications for organizations and for older workers. Six interdependent organizational changes are central to the far-reaching effects on enterprises and operating approaches. These changing work characteristics require certain essential behaviors for mature workers to be successful in the contemporary work environment. Such a dynamic workplace provides opportunity to introduce new thinking and propose new models. Realigning organizational and workforce interests calls for developing solutions beyond the individual level, reorienting enterprise capabilities, and reframing of the organization development practitioner role as work ecosystem advisor. High-leverage strategies and systemic interventions, such as multiconstituent initiatives and action research, can be used to influence constructively the multifaceted world of work.

This study aims to investigate the use of mobile phones in enhancing human capabilities and agricultural development among small-scale farmers in selected rural districts of Tanzania. The study assessed the potential capabilities acquired by farmers, factors that influence farmers in building their capabilities and achieving development outcomes.

The study used Sen’s capability approach as a guiding framework to investigate the link between mobile phones and agricultural development. A case study design was employed whereby focus group discussions were used to collect data.

The use of mobile phone services enabled rural farmers to build their financial, human and social capabilities. Rural farmers faced personal and non-personal conversion factors that influenced them in building capabilities and achieving development outcomes. The use of mobile phones led to various development outcomes. The typical development outcomes were related to access to information and communication services and reduction of transport costs. Rural farmers experienced family conflicts due to protectiveness exercised by couples through the use of mobile phones, criminal incidences such as theft and the fear of being recorded when making a phone call.

The study findings have the potential of influencing policy and practice. The findings are useful in promoting the value of mobile phones usage in empowering rural farmers and communities. The telecommunication sector and other key stakeholders can use the study findings in setting the basis for prioritising the improvement of telecommunication infrastructure in the rural areas.

The global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.

The paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.

CBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.

The research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.

The influence of security practices is increasingly common in the supply chain management and logistics literature. However, an under-researched area exists within the logistics service provider (LSP) selection process. The purpose of this paper is to introduce a security capability into the LSP selection process. Specifically, this research seeks to understand partner willingness to compensate and collaborate with service providers that possess a security capability.

Adaptive choice modeling is adopted to assess the influence of a security capability in the LSP selection process. This study represents the first use of this method in supply chain management and logistics research. Cluster analysis is also performed to uncover specific buyer segments along with traditional regression-based significance testing and counting analysis.

The findings indicate that security can have an important influence on the LSP selection process. In particular, the findings note a willingness to pay for a security capability in LSP selection. Applying segmentation techniques to the findings, three LSP buying segments are determined, each placing different importance and value on LSP capabilities.

This research notes an ongoing provider deficiency in security offerings. Partner firms sometimes maintain a cost focus, but others show a willingness to pay higher prices for access to partners with a security capability. Key practitioner findings include the need to include security with other traditional selection variables. The study walks the researcher and manager through the development of segments based on LSP capabilities.

This manuscript investigates logistic service provider selection. The authors detail an advanced form of conjoint analysis, adaptive conjoint modeling, for first time consideration. Additionally, this is the first study to integrate security into the LSP selection process. This is also the first study to identify a willingness to pay for a security capability.

Using behavioral theory of the firm, the purpose of this paper is to examine how a small firm’s performance relative to historical and social aspirations is related to its international entrepreneurial orientation (IEO). This study also explores two environmental factors, liability of foreignness (LoF) and host-country market potential (HMP), as the moderators for the relationship of performance and IEO.

This study uses survey for data collection from Canadian small firms and employs regression models for data analysis.

The results show that small firms demonstrate stronger IEO when their performance is below aspirations, but their IEO diminishes when their performance exceeds aspirations. The authors also found that a small firm’s LoF does not moderate the impact of its performance feedback on IEO. However, the authors found HMP plays a moderating role when a small firm’s performance is below aspirations.

This study investigates the relationship of IEO to aspiration and found that this relationship is moderated by HMP. The study advances our knowledge on small firms’ international behavior.