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This paper illuminates the distinction between individual and organizational actors in business-to-business markets as well as the coexistence of formal and informal mechanisms of coordination in multinational corporations. The main questions addressed include the following. (1) What factors influence the occurrence of personal contacts of foreign subsidiary managers in industrial multinational corporations? (2) How such personal contacts enable coordination in industrial markets and within multinational firms? The theoretical context of the paper is based on: (1) the interaction approach to industrial markets, (2) the network approach to industrial markets, and (3) the process approach to multinational management. The unit of analysis is the foreign subsidiary manager as the focal actor of a contact network. The paper is empirically focused on Portuguese sales subsidiaries of Finnish multinational corporations, which are managed by either a parent country national (Finnish), a host country national (Portuguese) or a third country national. The paper suggests eight scenarios of individual dependence and uncertainty, which are determined by individual, organizational, and/or market factors. Such scenarios are, in turn, thought to require personal contacts with specific functions. The paper suggests eight interpersonal roles of foreign subsidiary managers, by which the functions of their personal contacts enable inter-firm coordination in industrial markets. In addition, the paper suggests eight propositions on how the functions of their personal contacts enable centralization, formalization, socialization and horizontal communication in multinational corporations.

Since the 1980s the U.S. has experienced a variety of partnership arrangements between labor and management focused on improving industrial relations and organizational performance (Ichniowski et al., 1996; Kochan et al., 1986; McKersie, 2002; Rubinstein & Kochan, 2001). Yet there is an absence of research comparing these partnerships across industries and evaluating the factors that: (a) contribute to their success; (b) seem to be barriers to achieving their stated goals; or (c) predict which ones will stand the test of time. (For exceptions see Preuss & Frost, forthcoming 2003; Rubinstein, 2001b). This paper summarizes recent U.S. experience with partnerships; identifies factors that seem to influence the formation and sustainability of partnerships, including the development of network ties across traditional boundaries; and suggests theoretical and empirical implications of this experience in building and sustaining partnerships at work. We draw on a variety of types of evidence from the authors’ cumulated experience and research with more than 50 such partnerships in the U.S., spanning multiple industries and multiple decades.

A cognitive view of implementing strategic innovation sees individual learning of senior managers became organizational only when Operating Logic shifted to Innovating Logic at the operating level, which required recognition at the operating level that change was needed. Organization learning concepts extend the account, while simpler explanations of entry threat and changing division management collapse organizational cognition to top-management, directing attention away from proactive strategic innovation. The cognitive view emphasizes broader cognitive resources and participation to enable organizational learning by doing.

In light of the current state of organization of public service provision and the growing importance of civil society in this area, this chapter examines the importance of an appropriate governance concept. This chapter argues that cooperation between organizations can be a key success factor and at the same time be regarded as an applied governance practice and the link between theoretical considerations and practical implementation.

The chapter describes the theoretical and conceptual ties between cooperation and governance. Based on an organizational development project, the potential applications and their implementations are illustrated.

Based on theoretical considerations, practical research, and demonstrated using a case study, some factors of success of collaboration are identified. Using these success factors as a framework, the concrete case study is reviewed and conclusions for interventions and the behavior of consultants are named.

The findings of this chapter can serve scientists but especially practitioners such as senior executives, managers or organization development (OD) experts as helpful guidelines and orientations when it comes to implement sustainable organizational solutions cooperatively in the field of public governance. In addition to the illustration of practical applied essential process and implementation steps, the chapter provides conceptual information for the anchoring of sustainable development in cooperative relations in the field of public governance.

Environmental uncertainty, turbulence, and heterogeneity create a host of strategic and operational challenges for today’s organizations (Brown & Eisenhardt, 1998). To cope with the challenge of simultaneously developing and nurturing both today’s and tomorrow’s core competencies, firms increasingly rely on effective use of corporate entrepreneurship (Covin & Miles, 1999). These facts make it imperative that managers at all levels actively participate in designing and implementing a strategy for corporate entrepreneurship actions. The recent literature reveals that there is a general although certainly not a complete consensus around the position that successful corporate entrepreneurship (CE) is linked to improvement in firm performance (Ireland et al., 2001). Covin, Ireland and Kuratko (2003) suggest that corporate entrepreneurship is increasingly recognized as a legitimate path to high levels of organizational performance and that the understanding of corporate entrepreneurship as a valid and effective practice with real, tangible benefits is occurring across firm type and managerial levels. Other researchers cite corporate entrepreneurship’s importance as a growth strategy (Kuratko, 1993; Kuratko et al., 1993; Merrifield, 1993; Pinchott, 1985; Zahra, 1991; Zahra & Covin, 1995; Zahra, Kuratko & Jennings, 1999). As an example, Dess, Lumpkin and McGee (1999) note that, “Virtually all organizations – new start-ups, major corporations, and alliances among global partners – are striving to exploit product-market opportunities through innovative and proactive behavior” – the type of behavior that is called for by corporate entrepreneurship. Barringer and Bluedorn (1999) suggested that in light of the dynamism and complexity of today’s environments, “…entrepreneurial attitudes and behaviors are necessary for firms of all sizes to prosper and flourish.” Developing an internal environment that cultivates employees’ interest in and commitment to creativity and the innovation that can result from it contributes to successful competition in today’s competitive arenas. A valuable and appropriate internal organizational environment is a product of effective work (often within the context of corporate entrepreneurship) by managers at all levels (Floyd & Lane, 2000).

In this paper, we consider the relationship between the investment decision process and returns to investments in capabilities. We draw on characteristics of capabilities to develop a framework that identifies four components of the returns to an investment that are derived from industry-based versus firm-specific elements, and option and non-option elements. We then link these components to elements of the resource allocation process. In taking this approach we place the study of real options into the larger investment context, recognizing that they co-exist with and should be understood in conjunction with other investment characteristics. These arguments highlight the importance of connecting the investment process with realization of returns, thereby providing the conceptual foundations for a decision tool.

Since 1973, the pharmacy operations division of the Kaiser Permanente Medical Care Program (KPMCP) has used long-term action research programs as the principal method for orchestrating change. This chapter covers the evolution of action research theory within large, complex organizations, with particular attention to health care organizations. Four case examples from KPMCP are discussed in depth and mapped to the recently advanced Roth model of insider action research. This model considers external and internal business context, the perceived need to create new organizational capabilities, as well as insider action research theory and learning mechanisms used in change programs. Issues posed by the Roth model are explored, and new theory is advanced regarding the need for a long-term perspective, the advantages and difficulties posed when managers act as insider action researchers, and the quality of data gathering that takes place during insider action research change programs.

Part IV provides readers with the extant requirements for the application of materiality to recognition, measurement, presentation, and disclosure in the financial statements. This part also includes a detailed critical review of the recent Practice Statement on materiality, the FASB’s proposed ASU on the notes and the amendments to the Conceptual Framework proposed by the IASB and the FASB.

The part expands to issues that are typical of Management Commentary, including the SEC guidance on materiality in Management Discussion and Analysis.

It informs about the complexities and subtle differences between financial statements and bookkeeping and the different standards of reasonableness versus materiality.

A section moves from materiality to material misstatements and covers the application of materiality in auditing.

Another section goes in depth on internal control over financial reporting, showing the linkages between materiality and risk appetite and risk tolerance and the related application guidance.