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Inter-organizational trust has a vital role in any external trade relationship. However, there are not many studies relating to growth strategies and inter-organizational trust in firms in emerging markets. The purpose of this paper is to identify and compare the effect of external growth strategies on the organizational performance of companies and to examine the mediating role of inter-organizational trust between growth strategies and organizational performance.

Data were collected from 240 senior managers from public listed companies (PLCs) in Malaysia and were analyzed using analysis of a moment structures.

The findings indicate that growth strategies have a significant effect on organizational performance. Strategic alliances and acquisitions also have significant effects on organizational performance. Moreover, inter-organizational trust fully mediates the effect of growth strategies on organizational performance.

As purposive sampling was used, selecting only managers with experience of the issues concerned, any common findings are likely to be generalizable to managers in similar situations.

Building inter-organizational trust among companies and relying on strategic alliance and acquisition, rather than merger, will sharpen their competitiveness and enable them to survive and thrive.

The increase in organizational performance of PLCs will have a significant effect on employment and on gross domestic product (GDP), which will have a beneficial effect on citizens.

Studies that are related to these variables in emerging economies are still in their infancy. This study compared the effect of external growth strategies and contributed to the literature in the area of trust and external growth strategies.

Contingency models have enabled researchers to develop system‐based decision‐making approaches to organizational studies. Two contingency decision‐making models ‐ rational and political choice ‐ have been applied to identify those organizational characteristics and strategic leadership qualities associated with acquisitive growth through “absorption” and “diversification”. A study of the International Telephone and Telegraph Company (ITT) organizational growth strategies from 1920 to 1997 reveals that senior managers adopt the rational decision‐making model when organizational growth through acquisition involves absorption, and the political model when organizational growth calls for diversification. A contingency historical study of ITT demonstrates two important periods in ITT’s organizational life cycles ‐ one of growth (1920‐early 1970s) and one of consolidation/stability (from mid‐1970 to the present time). Contingency models indicate that differences in organizational growth strategies arise due to differences in environmental factors characterizing each period as organizations pass through several stages of growth in their life cycles.

This paper aims to study the effects of innovation on the profitability of large wineries. In particular, organic growth is evaluated versus external growth.

Data from balance sheets over more than a decade are used. The analysis is limited to large Italian wineries to include firms that constantly invest in R&D in the sample. The analysis focuses on 25 Italian wineries observed over eight years. Panel data estimation is used to analyse these data.

The paper shows that investments in R&D increase the profitability of innovative wineries in the long run but decrease it in the short run. Moreover, because of financial constraints, some wineries may invest too few resources in R&D.

The main limitation is that the focus is restricted to large wine producers, while many small producers that do not generally invest in R&D exist in the market. The practical implication is that governments should support R&D investments of wineries.

The main contributions are to show empirically the effects of investing in R&D on the profitability of large wineries and to highlight the possible presence of severe financial constraints, which require policy interventions.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Growth has become key to organizational performance and competitiveness. Companies can achieve such goals through the adoption of a suitable external growth strategy such as strategic alliance and development of mutual trust with partner firms.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

This study aims to examine the mediating effect of four antecedents of competitive advantage on the linkage of risky strategy to firm performance, measured by revenue dynamics. It considers the roots of competitive advantage to highlight different patterns and foundations of achieving superior performance. It investigates whether pursuing a risky strategy fosters revenue dynamics growth and whether different mediators are included in that relationship.

Path analysis (structural equation modeling) method is used to analyze data from 122 companies of various sizes and industries. All respondents were responsible for executing strategic management processes. The paper used the subjective perspective, which is based on the individual opinion of senior company managers and owners.

The authors find a positive relationship between risky strategy and firm performance, but no evidence of a mediating role of competitive advantage and dynamic growth in this relationship. Competitive advantage should be perceived as a set of integrated factors that can be analyzed from an aggregated perspective. Integrating all antecedents requires a holistic and systematic approach and the development of a particular mindset. Aggregated competitive advantage is related to setting dynamic growth as a priority. However, no relationship between risky strategy and achieving competitive advantage, or between implementing a risky strategy and setting dynamic growth as a priority, is observed, which was assumed to explain the revenue dynamics growth.

Secondary data should be analyzed to explore how risky strategies are manifested, and which managerial decisions are reflected in high-level risk. A multidimensional scale could be developed to check how risk shapes the constructs’ interdependence. Therefore, the dynamic capabilities approach could be further expanded.

This research offers insights into the short-term relationship between risky strategy and revenue dynamics, although competitive advantage does not mediate that relationship. Special attention should be paid to the selected antecedents of competitive advantage, as they influence dynamic growth.

This work provides insights into different antecedents of competitive advantage, which is not necessarily based on making risky decisions, and into factors that facilitate firm performance measured by revenue dynamics.

An organization’s entrepreneurial orientation will relate directly to its efficiency strategies, market development strategies (growth), and its product development strategies (innovation). A firm will develop appropriate strategic control systems according to these chosen strategies. In order to be competitive and balance efficiency, growth and innovation strategies, the purpose of this paper is to discuss the most appropriate strategic controls to implement these strategies.

The eight variables under study were measured using 22 psychometric survey items obtained from responses of 101 FDIC-registered banks.

The results show a more entrepreneurial orientation is associated with an efficiency strategy, a market development strategy, and a product development strategy. The efficiency strategy was not associated with formal controls, contrary to expectations. A market development strategy was associated with formal rules, but was not found to be associated with formal targets. Finally, product development strategies was associated with all four strategic control archetypes.

The limitation of this study is that, it only examined banking institutions, and did not consider long-term financial performance implications. This paper supports and extends current research pertaining to company key success factors. Success requires effectively balancing cost reduction objectives, growth objectives, and innovation objectives, in order to achieve sustainable competitive advantage. A more entrepreneurial orientation necessitates a focus on innovation, traditional growth patterns, as well as cost cutting.

This paper demonstrates that an organization’s entrepreneurial orientation will relate directly to its efficiency, growth, and innovation strategies. Also, it finds the most effective strategic controls to implement these strategies.

The aim of this paper is to investigate the role of boundary management when firms should implement open innovation.

The relevant literature on strategic management, firm boundaries and open innovation fields is revised and critically assessed. An interpretive-qualitative methodology is applied to analyse empirical data obtained from a questionnaire and subsequent interviews of a sample of Italian listed firms. By critically integrating literature review and empirical analysis, a framework is provided with the objective of supporting open innovation implementation.

The study shows that on the one hand, open innovation and many modern paths of growth are connected to a firm's boundaries and that on the other hand, boundary management plays a key role in the implementation of open innovation.

The paper has implications for practitioners by driving them to shift the focus of open innovation implementation towards the management of boundaries, in which boundary capabilities and activities play a key role.

This paper sheds light on the advantages and risks that can jeopardize a successful opening up innovation processes without the effective management of boundary studies. Thus, the authors identify and propose causes for reflection and tools maximizing potentiality and reducing risks in the implementation of such processes.

This chapter introduces the term “interpreneurship” to refer to entrepreneurship that occurs through inter-organizational alliances, which represent a salient vehicle for combining complementary resources and capabilities across firms in order to gain a competitive advantage. The interpreneurship concept implies the integration of internal (firm) and external (network) resources through alliance formation and management. The purpose of this research is to introduce social structure to the rational action paradigm by examining the complementarity of entrepreneurial and relational resources in achieving organizational goals in an alliance context. In this study, interpreneurial capability is operationalized as the combination of entrepreneurial resources (via an internal growth strategy) with relational resources (via an external growth strategy). These effects are assessed through the examination of three competing research models. The hypothesized interaction-only model tests the impact of complementarity of entrepreneurial and relational resources on firm-level performance for both partners to an alliance. A second model tests relational resources as a mediator of the relationship between entrepreneurial resources and the alliance partners’ performance. Finally, a third model assumes that the two resources have independent effects on the alliance partners’ performance. We find that the interaction-only model yields the strongest relationship to organizational performance, supporting the interpreneurial perspective we proffer in this chapter.

The purpose of this paper is to advance a firm boundary perspective of operations strategy linking strategic management and business process management.

Relevant operations strategy, business process management and boundary perspective literature is reviewed and critically assessed in order to advance a firm boundary-based approach to operations strategy. Within this perspective, a multi-disciplinary and cross-functional framework is provided with the objective of supporting the process of operations strategy formulation and implementation.

The boundary perspective has the potential to inform a wide range of operations strategies. Strategic management of operations should be increasingly based on boundary operations. The proposed framework clarifies that the adoption of a spanning boundary perspective should improve the operations strategy process and content.

This paper offers implications of interest to managers, noting that the adoption of a new perspective in operations strategy should contribute to innovation in operations strategy development and implementation. Specifically, the framework suggests models and tools useful to support the spanning boundary perspective.

This paper allows operations and process management scholars to focus on key phenomena, such as boundary management. At the same time, the framework responds to the needs of managers who are engaged in operations management for a new perspective that can assist in the strategic management of operations.

Previous studies primarily focus on how to achieve better performance in the international markets, but few centers on whether internationalization is a promising strategy for new ventures’ growth and development. Based on two pioneering frameworks Conservative, Predictable, and Pacemaker (CPP) model and the 7-P model, this paper fills this gap by analyzing how exporting exert heterogeneous effects on two types of growth, sales growth and employment growth. Accordingly, this paper aims to favor market-oriented new ventures to make a strategy on expanding international markets.

This study is based on firm-level data from the Chinese Industrial Enterprises Database. The year 2005 was used as the shock year. By conducting the propensity score matching method, 793 couples of matched new ventures were collected with sales growth and 686 couples with employment growth. The difference-in-differences method was applied to analyze the various influences that exporting has on new ventures’ sales growth and employment growth.

The main finding of this paper is that new ventures that exported can achieve better sales growth than their counterparts that only operated domestically, whereas new ventures that remain in the domestic market have no difference in employment growth from those that exported.

This study shows that exporting is especially beneficial for market-seeking new ventures. Because the study is based on Chinese data, scholars of international business can conduct further research on other countries with different economic structures.

Theoretically, this paper contributes to both international business theory and entrepreneurship theory by combining the CPP model and the 7-P model. Practically, this paper shows that exports mainly benefit the sales growth of new ventures. This suggests that business practitioners should consider their growth goals before they choose to enter the global market.