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Although individual and business actors are often mentioned as an important part of clarifying the stages that firms and their networks go through from starting up to becoming established, most studies have emphasised activities and resources rather than actors. Therefore, more needs to be known about how actors shape and are shaped through and within firms’ networks.

To clarify the process of reshaping business in networks, the focus of this study is on the role of actors in firms’ networks during the main stages of development. The major events for each stage are described in terms of how these events affect the interaction, alignment and interfaces between individual actors and business actors with a focus on individual and collective interests.

The individual actor plays a key role in the start-up stage, whereas the business actor has a key role in the final stage when the firm has become an important player in the industry. In later stages, the individual actor plays a gradually decreasing role and the business actor an increasing role. However, it appears that an analysis of the interplay between the two levels of analysis provides deeper insight into the shaping.

This study provides new insights into the role of the actor and how the actor shapes and is shaped by a firm and its network in different stages. Further, the study contributes by clarifying actors’ roles on two levels of analysis and shows the roles of interests, conflicts, interfaces and alignment in shaping firms and their networks.

The purpose of this paper is to examine the relationship between board alignment with shareholder interests using a new measure of perceived board effectiveness, which is designed to capture the alignment of the directors with the interests of shareholders.

Specifically, the paper looks at the Rotman/Clarkson (CCBE²) Canadian Board Shareholder Confidence Index as the measure of shareholder's perceptions of the board's efficiency as it relates to company performance. The index is ostensibly designed to capture the essential factors affecting shareholders' confidence in the boards' abilities to fulfill their duties. The CCBE² Board Shareholder Confidence Index assigns scores to companies based on the consideration of the following three perspectives: potential of individual board members; potential of the board as a group and past practices of the board. The measure of performance is the firm's Economic Value Added™ (ER), which is a metric for a company's ability to generate economic profits that enhance the wealth for shareholders.

Based on regression analysis, it is found that high shareholder confidence index values are generally associated with higher ER, although the relationship is not monotonic for higher graded boards. This suggests that while highly graded boards are generally beneficial, there may be diminishing returns to efforts to design “optimal” boards in the sense of their alignment with shareholder interests. The performance gap between firms with high vs low expected agency costs as reflected in terms of higher differentials between board members' interests alignments with those of shareholders amounts to almost 30 percent.

This paper is the first study to appear that looks at how a new, comprehensive measure of board alignment with shareholder interests relates to company performance. The findings should be of considerable interest to investors, policy makers, and firms looking at the incentive structures for directors, and how aligning directors interests with those of shareholders can create economic value for firms.

The purpose of this paper is to test hypothesized relationships within and between the domains of action and social alignment based on a sales perspective in business relationships.

This study is based on a cross-industrial sample of Norwegian companies consisting of 213 key informants corresponding to a valid response rate of 40.7 percent.

The findings validate that coordination relates positively to economic satisfaction (ES); coordination does not relate to non-economic satisfaction (NES); coordination relates positively to cooperation; cooperation relates positively NES; and cooperation mediates between ES and NES.

This study tests and successfully validates an action and social alignment model based on a sales perspective in seller business relationships, providing additional insights into the field of relationship quality and the sales literature. Suggestions for further research are provided.

According to sales practitioners, the research model makes sense in relation to managerial implications for seller business relationships.

This study contributes to incorporating a seller perspective in relation to existing theory and previous studies on a buyer perspective to quality constructs in business relationships.

This study aims to study research on franchise chain performance that has focused on franchisors’ efforts to align their interests with those of franchisees to address partner uncertainty. In contrast, the question of what a franchisor should do to address another type of uncertainty and task uncertainty remains understudied. The authors suggest a franchisor’s coordination as a key means of alleviating task uncertainty and ongoing support and plural form as two mechanisms of coordination. The authors also posit that aligned interests between the franchisor and the franchisee improve, whereas one-sided interest impedes, chain performance. Furthermore, providing greater ongoing support or deploying plural form amplifies the positive effect of aligned interests on chain performance.

The authors relied on secondary data to test the hypotheses. The authors collected data for analysis from Bond’s franchisee guide and Nation’s Restaurant News restaurant database. They also tested the framework by analyzing 17-year, panel data of 71 restaurant chains operating in the USA and Canada using system generalized method of moments.

Results show that aligning interests does improve chain performance, but that the positive effect is amplified when aligned interests are matched with a chain’s provision of ongoing support or use of plural form.

The authors explicate why it is not enough to address the misaligned interests or lack of coordination alone; a chain manager needs to address both of these problems together. In addition, the authors explicate how two franchisee coordination mechanisms – ongoing support and plural form – help a chain augment the beneficial effect of aligning interests on chain performance. Without solving the twin problems of misaligned interests and coordination simultaneously, a chain is unlikely to achieve its full performance potential.

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.

The purpose of this paper is to develop a theory based on transaction cost economics to help explain how firms venturing into different foreign markets should properly formulate and implement contractual governance mechanisms to create greater efficiency, lower costs, and minimize conflict with partners.

Defines and discusses a conceptual framework of the determinants regarding contracts and strategies used to manage conflict in foreign ventures through the integration of foreign venture conflict resolution, contract, and transaction cost economics literature.

Suggests that perceived transaction costs will predict which contractual governance mechanism and which conflict resolution strategy a partner firm will choose when resolving conflict in a foreign venture. Postulates that consistency of conflict resolution strategy with contract type will impact the performance of the foreign venture, and that cultural distance, relative power, and interest alignment will all play a moderating role in this process.

The model demonstrates the necessity of examining how coupling certain conflict resolution strategies and contract types will impact foreign venture performance.

This paper aims to develop a conceptual model that systematically interprets how key governance factors drive the alignment and the rent-extraction effects of executive stock options (SOs) as proxied by plan characteristics.

The authors draw on the review of 202 articles published in international academic journals. They collect data from library databases and by hand-searching and citation-tracking relevant papers on the topic. Moreover, the authors review and classify the studies as related with determinants or proxies of alignment and rent-extraction effects of SOs.

The conceptual model systematically interprets the results of the literature review and identifies the relationships between archetypes, driving factors and proxies of the rent/alignment effect of executive SOs. It highlights that, given ownership archetypes, effective (ineffective) governance practices drive the alignment (rent) aim of SOs as proxied by the optimal (non-optimal) plan design.

This paper supports compensation committees in selecting the SO characteristics that better attract investors and retain executives. Moreover, it guides future policy making interventions aiming at mitigating the rent-extraction effect of SOs.

The paper highlights that the governance determinants of SO aims can be effectively classified as archetypes or drivers of rent-extracting and aligning outcomes of these remuneration tools. Moreover, it offers a useful framework to guide future research efforts by providing a comprehensive interpretation of the relationships between ownership archetypes, driving factors and proxies of SO effects.

The purpose of this paper is to investigate the effect of family ownership on investment-cash flow sensitivity and on firm performance.

The author uses panel data to examine the relationship between investment and cash flow and between family ownership and the firm performance of Thai listed firms from 2001 to 2008. To account for the endogeneity of the lagged dependent variable, the investment equation is estimated by the generalized method of moments, following Arellano and Bond (1991).

The presence of family owners reduces the sensitivity of investment and cash flow. At low and high levels of family ownership, an increase in family shareholding leads to lower investment-cash flow sensitivity. In contrast, firms with medium family ownership levels have higher investment-cash flow sensitivity. Only at high levels of family ownership is firm performance positively related to family shareholding.

The ownership levels of family shareholders affect the investment-cash flow sensitivity in an S-shaped relation, supporting the interest alignment and entrenchment effects. When family shareholders have high ownership incentives, their interest alignment reduces the agency costs of free cash flow problems and leads to higher firm performance.

The purpose of this paper is to find alignment concerns (e.g. requirements, restrictions and issues) and addressing them into the design and development of domain-specific information systems (ISs) supporting product manufacturing.

The approach is based on two metamodels of the Strategic Alignment Model that formalise its underlying concepts. The metamodels are used to build specific alignment models that define the elements to be aligned and the corresponding alignment sequences. The models and alignment sequences are intended to guide the design and development of an “aligned” domain-specific IS. An industrial case study for the manufacturing industry shows the feasibility of this approach.

The instantiation of the alignment models components with information about the specific-domain IS project enabled us to deal with current and future concerns into the design of ISs aligned with the manufacturing strategy and infrastructures.

IS alignment is generally tackled at a strategic level, in this paper the operational and tactical levels are also addressed.