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Article
Publication date: 16 June 2022

Xingkun Liang, Yining Luo, Xiaolin Shao and Xianwei Shi

Innovation ecosystem research has highlighted complementors as the critical force to determining focal firm innovation’s success in addition to the traditional value chain or…

Abstract

Purpose

Innovation ecosystem research has highlighted complementors as the critical force to determining focal firm innovation’s success in addition to the traditional value chain or supply chain perspective. However, literature is relatively scarce in terms of innovation ecosystem governance, especially, on how to manage various types of complementors. The purpose of this paper is to fill this theoretical gap by developing a typology of managing complementors from multiple case studies.

Design/methodology/approach

This study conducted multiple case studies of three leading focal firms with ecosystem strategies to understand innovation ecosystem governance. Theoretical themes are inductively generated to reveal their success in managing complementors in their ecosystems.

Findings

The case analysis reveals four generic strategies to manage complementors. These strategies are contingent on the types of complementors and level of interdependence: focal firms tend to engage functional complementors and collaborate with infrastructural complementors when the level of interdependence is higher, and acquire functional complementors and nurture infrastructural complementors when the level of interdependence is lower.

Practical implications

For practitioners, this study can improve their understanding on the mechanisms of innovation ecosystem governance, particularly interdependence between participants in an innovation ecosystem, and developing appropriate strategies to manage different types of complementors in innovation ecosystems.

Originality/value

This study contributes to innovation ecosystem literature by enriching the conceptualization of interdependence in innovation ecosystems and unpacking innovation ecosystem governance with the inductively developed holistic typology of strategies to manage complementors. Meanwhile, this study also suggests underlying mechanisms for how innovation ecosystem governance and, therefore, contributes to a systematic theory on understanding innovation ecosystem governance.

Details

Industrial Management & Data Systems, vol. 122 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 March 2021

Martina Battisti, Joanna Scott-Kennel and David Deakins

Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a…

Abstract

Purpose

Integrating network attributes from studies of social networks, business relationships and small- to medium-sized enterprise (SME) internationalization, this study adopts a perceptual view of a firm’s focal “net” of relationships to examine foreign market entry mode choice. This study aims to examine how the interaction between knowledge-intensive service (KIS) firm’s network ties, embeddedness and position is related to choice of mode and subsequently the firm’s perceived insidership status within its focal net.

Design/methodology/approach

This research is based on qualitative interviews with 25 small- to medium-sized KIS firms engaged in direct exporting or foreign direct investment (FDI). This study derives an empirically grounded framework of four distinct network patterns of these KIS firms through an iterative process of triangulation between cases and theory.

Findings

The four network patterns illustrate the complex interaction between network attributes and entry mode choice by KIS firms. The findings suggest formal ties and centrality in closed network relationships provide the “central controller” firm discretion over their entry mode choice. Resource-intensive FDI by “opportunistic investors” proved essential to securing centrality through formal, institutional ties. Less optimal patterns lacking institutional ties and centrality, however, precluded choice of FDI by “specialized exporters” and “client followers.” The study finds that entry modes are less likely to be influenced by the firm’s embeddedness in open or closed network relationships, but rather by the desire to achieve a more central network position and legitimacy through more formal, less imitable ties.

Research limitations/implications

The findings demonstrate the importance of network structure, a position of centrality, and strength of professional and institutional ties to small KIS firm internationalization. By adopting a more finely grained examination of the interaction between key attributes of the firm’s focal net, this study provides a valuable first step in conceptualizing the complexities associated with networking and adoption of export/investment internationalization modes.

Practical implications

There are a number of implications for the strategic and operational facets of smaller KIS firm internationalization. To avoid excessive network liability for resource-deficient SMEs, practitioners should consider network positioning as a strategic activity, with the costs associated with building and maintaining networks offset against economic- and resource-related returns.

Originality/value

The authors contribute to a better understanding of entry mode choices of KIS by taking a network perspective that accounts for the combined effects of different network attributes. The four network patterns identified extend current theoretical knowledge on the role of networks for entry mode choices of small KIS by highlighting that entry mode choices reflect the particular firm’s focal net and its attempt to achieve insidership status through high centrality and formal ties.

Details

European Journal of Marketing, vol. 55 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 28 August 2007

Felicia Morgan, Dawn Deeter‐Schmelz and Christopher R. Moberg

By outsourcing or partnering with two or more firms to perform certain activities targeted toward customers, firms are engaging in service networks. This research begins to…

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Abstract

Purpose

By outsourcing or partnering with two or more firms to perform certain activities targeted toward customers, firms are engaging in service networks. This research begins to examine how customers evaluate firms in a strategic, B2B service network and how their assessment of firms involved in co‐producing after‐sales service affects their evaluations of a focal selling firm. These evaluations include the key relational outcomes of brand image, satisfaction, and behavioral intentions.

Design/methodology/approach

The conceptual model examines the effects of partner firm performance on customers' evaluations of a focal selling firm. Key factors such as focal brand strength and the strength of the relationship between the partner firm and the focal selling firm are proposed to influence this relationship.

Findings

Post‐sale business services provided directly to the customer are likely to play an important role in building a firm's brand image and equity, whether those services are provided by the firm or its partners.

Research limitations/implications

The individual firm to individual customer dyad approach that currently dominates the literature does not adequately capture the complex nature of today's B2B service relationships. This research develops a conceptual model that directly addresses the way customers evaluate service when it is performed by multiple partners.

Practical implications

Discovering how customers evaluate service experiences in which multiple firms co‐produce the service within a B2B service network can provide firms with the guidance needed to improve the performance of the entire network and the overall service experience of network customers.

Originality/value

This paper presents new theoretical developments in the area of business‐to‐business service networks. This research also addresses several gaps in the industrial marketing literature, particularly B2B services and branding.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 25 July 2023

Brigitte Wecker and Matthias Brauer

Misconduct allegations have been found to not only affect the alleged firm but also other, unalleged firms in form of reputational and financial spillover effects. It has remained…

Abstract

Misconduct allegations have been found to not only affect the alleged firm but also other, unalleged firms in form of reputational and financial spillover effects. It has remained unexplored, however, how the number of prior allegations against other firms matters for an individual firm currently facing an allegation. Building on behavioral decision theory, we argue that the relationship between allegation prevalence among other firms and investor reaction to a focal allegation is inverted U-shaped. The inverted U-shaped effect is theorized to emerge from the combination of two effects: In the absence of prior allegations against other firms, investors fail to anticipate the focal allegation, and hence react particularly negatively (“anticipation effect”). In the case of many prior allegations against other firms, investors also react particularly negatively because investors perceive the focal allegation as more warranted (“evaluation effect”). The multi-industry, empirical analysis of 8,802 misconduct allegations against US firms between 2007 and 2017 provides support for our predicted, inverted U-shaped effect. Our study complements recent misconduct research on spillover effects by highlighting that not only a current allegation against an individual firm can “contaminate” other, unalleged firms but that also prior allegations against other firms can “contaminate” investor reaction to a focal allegation against an individual firm.

Details

Organizational Wrongdoing as the “Foundational” Grand Challenge: Consequences and Impact
Type: Book
ISBN: 978-1-83753-282-7

Keywords

Article
Publication date: 30 May 2023

M. Cristina De Stefano and Maria J. Montes-Sancho

Climate change requires the reduction of direct and indirect greenhouse gas (GHG) emissions, a task that seems to clash with increasing supply chain complexity. This study aims to…

Abstract

Purpose

Climate change requires the reduction of direct and indirect greenhouse gas (GHG) emissions, a task that seems to clash with increasing supply chain complexity. This study aims to analyse the upstream supply chain complexity dimensions suggesting the importance of understanding the information processing that these may entail. Reducing equivocality can be an issue in some dimensions, requiring the introduction of written guidelines to moderate the effects of supply chain complexity dimensions on GHG emissions at the firm and supply chain level.

Design/methodology/approach

A three-year panel data was built with information obtained from Bloomberg, Trucost and Compustat. Hypotheses were tested using random effect regressions with robust standard errors on a sample of 394 SP500 companies, addressing endogeneity through the control function approach.

Findings

Horizontal complexity reduces GHG emissions at the firm level, whereas vertical and spatial complexity dimensions increase GHG emissions at the firm and supply chain level. Although the introduction of written guidelines neutralises the negative effects of vertical complexity on firm and supply chain GHG emissions, it is not sufficient in the presence of spatial complexity.

Originality/value

This paper offers novel insights by suggesting that managers need to reconcile the potential trade-off effects on GHG emissions that horizontally complex supply chain structures can present. Their priority in vertically and spatially complex supply chain structures should be to reduce equivocality.

Details

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

Keywords

Article
Publication date: 1 May 2015

Simone Guercini and Andrea Runfola

This paper aims to study the role of the focal firm in local communities. In particular, it aims at analyzing such firms’ contribution to innovation, proposing a classification of…

Abstract

Purpose

This paper aims to study the role of the focal firm in local communities. In particular, it aims at analyzing such firms’ contribution to innovation, proposing a classification of the interactions and role systems that contribute to determining the innovational impact of focal firms.

Design/methodology/approach

This paper presents a concept-based study. The paper starts with a review of the literature to frame the concepts of local network and focal firm. Two key concepts, related to that of interaction, are then discussed: teaching and learning.

Findings

The paper proposes a taxonomy of the interactions and the roles systems that the focal firm can establish. The status of focal actor for innovation in a network stems, not from an “a priori” central strategic role on which the actor builds its interactions, but “a posteriori”, from the actor’s previously recognized roles in interactions on which network innovation is based. The local system may or may not be present in the interaction set of the business network. The interactions and roles systems define the type of local system.

Research limitations/implications

Research implications regard three main aspects: the different roles in the interactions; the types of actors in the local system; and the types of local systems involved in the processes of innovation.

Originality/value

The paper furnishes an original interpretation by focusing on focal firms as leaders in the innovation process, in the attempt to reconcile the “macro” perspective of local systems with the “micro” perspective of the individual firm.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 3/4
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 15 May 2017

Anupam Kumar, David E. Cantor, Curtis M. Grimm and Christian Hofer

The purpose of this paper is to build and test theory regarding how rivalry in environmental management (EM) affects a focal firm’s environmental image and financial performance.

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Abstract

Purpose

The purpose of this paper is to build and test theory regarding how rivalry in environmental management (EM) affects a focal firm’s environmental image and financial performance.

Design/methodology/approach

The theory is tested with an original panel data set of 2,776 focal-rival dyad pairs. Measures of environmental signals are developed from content analysis of corporate sustainability reports. Environmental performance data are drawn from the Newsweek US 500 Green Rankings database. Financial performance data are drawn from COMPUSTAT.

Findings

The main findings are that focal firm signals have a positive and significant impact on both focal firm environmental image and financial performance. Rival firm signals have a negative effect on focal firm environmental image. Surprisingly, rival firm signals have a positive impact on focal firm financial performance.

Practical implications

This paper can serve as a testament to the value of monitoring rival firm strategies and signaling to counter the impact of rival signals in the environmental domain. Environmental practices can be a source of competitive advantage for firms, and failure to compete in this space can place the firm at a competitive disadvantage.

Originality/value

This study makes several contributions to the EM literature. Leveraging competitive dynamics and the institutional viewpoints, this study builds theory with regard to how signals of competitive EM activity among a focal firm and its rivals affect environmental image and financial performance.

Details

Journal of Strategy and Management, vol. 10 no. 2
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 16 December 2019

Yusi Jiang and Yapu Zhao

The purpose of this paper is to explore the implications of the relative status between two interlocking firms for financial fraud or non-fraud contagion through interlock ties.

Abstract

Purpose

The purpose of this paper is to explore the implications of the relative status between two interlocking firms for financial fraud or non-fraud contagion through interlock ties.

Design/methodology/approach

This study uses a sample of publicly listed firms in China over a ten-year period from 2005 to 2014. Data are collected from the China Stock Market and Accounting Research Database.

Findings

This study finds that non-fraud behaviors of lower-status partners inhibit fraud behaviors of the focal firm, whereas their fraud behaviors have no effect on the focal firm. In contrast, fraud behaviors of higher-status partners facilitate fraud behaviors of the focal firm, whereas their non-fraud behaviors have no effect on the focal firm.

Originality/value

This study provides new insights to the misconduct contagion literature by considering firms’ status differential as an important factor that governs the contagion process of fraud or non-fraud behaviors in board interlocks. It combines role theory and the contagion literature by studying the influence of the match between the status-based role expectations and practices of interlocking firm on the focal firm’s decision to engage in the same type of practice.

Details

Management Decision, vol. 58 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 14 September 2018

Wai Wai Joyce Ko, Gordon Liu, Isaac K. Ngugi and Chris Chapleo

This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the…

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Abstract

Purpose

This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the contingent role of informal control mechanisms in moderating such an effect.

Design/methodology/approach

This study conducts a cross-sectional questionnaire survey of 236 UK-based SME manufacturers.

Findings

Inbound supplier flexibility (ISF) has a stronger positive effect on SMEs’ product innovation performance than outbound logistics flexibility (OLF), and that the strength and direction of both effects depend on informal control mechanisms. Lead supplier influence negatively moderates the relationship between ISF and product innovation performance but positively moderates the relationship between OLF and product innovation performance. Normative integration positively moderates the relationship between ISF and product innovation performance.

Research limitations/implications

This study enriches SC flexibility studies by focusing on understanding the differential effects of ISF and OLF on product innovation performance, as well as the role that contingency factors play in these relationships in the SME context.

Practical implications

To promote product innovation performance, SME managers should focus on building good relationships with their suppliers rather than their logistics service providers. SME managers should be particularly aware of the different types of informal control mechanisms that govern their SC relationships and adjust their managerial approaches accordingly.

Originality/value

This study distinguishes between ISF and OLF and examines their impacts on SMEs’ product innovation performance. This study investigates the differential effects of lead supplier influence and normative integration on the relationship between external SC flexibility and SMEs’ product innovation performance.

Details

European Journal of Marketing, vol. 52 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 March 2007

Rhona E. Johnsen

The purpose of this research paper is to examine the role of focal suppliers in strategic networks for internationalisation from the perspectives of small and medium‐sized Italian…

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Abstract

Purpose

The purpose of this research paper is to examine the role of focal suppliers in strategic networks for internationalisation from the perspectives of small and medium‐sized Italian and Thai silk suppliers.

Design/methodology/approach

Multiple case studies of small and medium‐sized suppliers within the silk industries of Italy and Thailand were undertaken. In total, seventeen interviews and three observations were conducted with directors or managers of silk suppliers and a range of government agencies, associations and institutes involved with the silk industry, to identify significant current issues within the sector. Conceptually clustered and role ordered matrices were used as coding frameworks to reduce, structure and analyse the data.

Findings

Silk suppliers' networks may be co‐ordinated by a focal supplier that assumes the role of strategic leader. The involvement of a focal and strategically‐focused supplier may strengthen and integrate the resources and capabilities of silk suppliers in their networks and enable them to improve their international network development and positioning.

Research limitations/implications

Further investigation is needed on the details of specific roles of focal suppliers in strategic networks.

Practical implications

Silk suppliers, their customers and government agencies involved with silk suppliers should: advocate and actively support the development of focal suppliers in their networks to enhance the effectiveness of their internationalisation process and strategy.

Originality/value

There tends to be a consensus in the literature about the influence of focal customers and larger organisations in strategic networks. This study highlights how small and medium‐sized silk suppliers adopt the roles attributed to focal firms and gain positioning advantages for themselves and other suppliers in their network.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 11 no. 1
Type: Research Article
ISSN: 1361-2026

Keywords

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