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The purpose of this paper is to propose a model of competitiveness for small and medium-sized enterprises (SMEs) by investigating the structural relationship between organizational structure, knowledge quality (KQ) dimensions, improvisational creativity, compositional creativity and innovation in an emerging market – Malaysia – grounding in sense-making and organizational improvisational theories.

A total of 358 valid questionnaires administered among SMEs’ top management were used in examining the measurement model and structural relationship between latent constructs using partial least squares (PLS) path-modelling approach.

The findings indicate that a flat organizational structure influences business entities’ sense-making activities in the way they realize the intrinsic value of knowledge (intrinsic KQ) and take action to apply the organizational knowledge (actionable KQ). These sense-making activities are also conducive to SMEs’ improvisational creativity, compositional creativity and innovative capabilities. All KQ dimensions are positively interrelated, thus supporting sense-making theory.

A sustainable competitive advantage for SMEs requires a setting that is based on a lean, decentralized and cooperative organizational structure that shapes organizational KQ. As a contribution to the literature, accessibility KQ is introduced as a KQ dimension. Even though previous research was unclear on the reflectiveness/formativeness of KQ, by applying confirmatory tetrad analysis-PLS, this study empirically supports that KQ is a formative construct.

Prior accounting research views impression management predominantly though the lens of economics. Drawing on social psychology research, this paper seeks to provide a complementary perspective on corporate annual narrative reporting as characterised by conditions of “ex post accountability”. These give rise to impression management resulting from the managerial anticipation of the feedback effects of information and/or to managerial sense‐making by means of the retrospective framing of organisational outcomes.

A content analysis approach pioneered by psychology research is used, which is based on the psychological dimension of word use, to investigate the chairmen's statements of 93 UK listed companies.

Results suggest that firms do not use chairmen's statements to create an impression at variance with an overall reading of the annual report. It was found that negative organisational outcomes prompt managers to engage in retrospective sense‐making, rather than to present a public image of organisational performance inconsistent with the view internally held by management (self‐presentational dissimulation). Further, managers of large firms use chairmen's statements to portray an accurate (i.e. consistent with an overall reading of the annual report), albeit favourable, image of the firm and of organisational outcomes (i.e. impression management by means of enhancement).

The approach makes it possible to investigate three complementary scenarios of managerial corporate annual reporting behaviour: self‐presentational dissimulation, impression management by means of enhancement, and retrospective sense‐making.

Companies inevitably interact and entrench in complex organic systems of business relationships with other. These business networks are not objectively defined, instead they are shaped by the subjective perception of actors. This inherent subjectivity is associated with the notion of network pictures, that is, a research tool that researchers or managers can use to grasp practitioner theories. In this chapter, we discuss how the importance of identifying these theories results mainly from underlying principles of sense-making theory, as well as from the idea around performativity. Drawing on these theoretical groundings, this chapter has two objectives: to explore how practitioners actually perceive their business surroundings and to assess the extent of overlapping between (IMP Group) academic theories and practitioner theories. To achieve these objectives, the researchers use a dimensional network pictures model previously developed in the literature to analyze the network pictures of 49 top-level managers across 17 companies from two very distinct contexts or networks: a product-based network and a project-based network. Among other practices, findings illustrate how practitioners tend to simplify what is going on in their complex surroundings, to personalize their relationships with those surroundings, and to think in a stereotyped way. Moreover, the juxtaposition between the captured practitioner theories and academic (IMP Group) theories show that these are not always overlapping, and are in some cases quite the opposite. This research contributes to the ongoing discussion of the importance of grasping actors’ views of the world, arguing that sense-making theory and the notion of performativity are the two main conceptual drivers justifying the urgency in making those views more visible. This research also adds to the research on the impact and suitability of IMP Group theories on managerial thinking and practice. Finally, this research reinforces the current call for further practice-based research in business network contexts.

The purpose of this paper is to examine the processes of knowing and sense‐making in small client‐based firms.

The paper adopts a qualitative approach to the case studies of two small firms in the public relations sector located in the North West of England. The paper also assumes that the firms are “activity systems” and thus draws on the “activity theory” as a framework for conducting the empirical study.

The data and analysis highlight the firms' ability to survive, grow and innovate, drawing on knowing and sense‐making recipes shaped mainly by the extent and nature of the managers' networks and “significant others” including policy makers, customers, suppliers and competitors.

The paper is based on two case studies. Although in‐depth analysis is achieved through narratives of rich data, it cannot be generalised across firms. Increasing the number of cases will certainly add validity for pattern recognition and this is the future direction of research.

Managerial knowledge and experience gained from past events and incidents are important inputs of decision making. The paper argues that managers naturally draw on their “intuition” in their enactment of events. Such intuitions and judgments are complemented by intended courses of action. It is reflection on such incidences that realises the experiences. Reflective and reflexive attempts provide valuable learning moments for managers and organisations.

The paper notes that there is a limited account and understanding of the processes of knowing and sense‐making in SMEs. It therefore offers a framework for illustrating the dynamic interactions between managers' enacting, knowing and the development of sense‐making recipes. It is an attempt to contribute to the understanding of “knowing” in SMEs.

This paper aims to explore the mechanism of brand internalisation when a brand transcends national borders. It focuses on the ways international and local managers interpret the brand, develop brand understanding and enact it through communication with other colleagues.

The research is based on a case study of IKEA in Russia and China during 2003‐2004.

The processes of brand conceptualising, comprehending and activating are identified, characterised by a weakening collective sense making amongst employees locally. Brand activating represents a discontinuity stage of brand internalisation when a shared brand understanding by employees becomes increasingly difficult to achieve. As such managers should broaden their brand contexts to include cultural elements and cues, involve local staff as well as adopt roles which facilitate collective sense‐making processes.

New research should explore local employees' brand experiences throughout their brand internalisation. It should also delve deeper into the ways they enact their brand in relationships with other local stakeholders.

The study argues that international managers need greater awareness of theirs' and local employees' roles in brand internalisation. Managers need to create common frameworks for sense making and work towards partnership relationships with local stakeholders.

This is an original paper of value to global retailers and other branded organisations.

Past studies of lean have failed to sufficiently address the importance of social factors for successful lean implementations. This paper aims to broaden and deepen the understanding of lean as a socio-technical paradigm by conceptualizing lean implementation as an organizational change process.

This study draws on the organizational sense-making literature to conceptualize and validate lean implementation as an organizational change process that necessitates a focus on the ability of organizational actors to construct a shared meaning of lean. This study posit that this shared understanding shapes the collective behaviour and attitudes of people towards a future desired organizational state such as a successful implementation of lean. Survey data were collected from various manufacturing and services firms to test the hypothesis derived from literature using a structural equation modelling approach.

The mutual social interactions of organizational actors contribute to an enabling lean organizational attitude that has a dominant effect on the lean practices of employee involvement, internal technical practices, supplier and customer management. This study also established boundary conditions for these relationships by identifying firm size as a moderating variable.

The findings establish a supportive organizational attitude as an antecedent for lean implementation, which goes beyond the current socio-technical characterization of lean management. This conceptualization draws the attention of researchers and practitioners towards the critical role of the cooperative behaviours of organizational actors in lean implementations.

The statistical results add a novel perspective to the discourse on the social dimension of lean implementation by conceptualizing and validating lean management as a combination of organizational attitude and the process facilitators comprising of employee empowerment, internal technical practices, supplier and customer management.

Why did a powerful department of hospital doctors support a merger with a rival hospital that they knew would ruin their beloved workplace?

This ethnographic study draws on 12 months of fieldwork consisting of 24 one-on-one interviews as well as 26 h of observations, informal conversations and archival records research to answer its research question. Grounded theory and the discourse analysis were employed to analyze all data.

Data reveal how participants' belief in a “merge or go bankrupt” narrative contributed to widespread support for a merger that seemed unthinkable on the surface. Although each doctor believes the merger will jeopardize or ruin their workplace culture, none resisted the merger nor did any ask hospital executives to provide evidence in support of their claims regarding the benefits of the merger (namely, that it would save their organization from inevitable bankruptcy).

The author relied on a family relative to introduce the author to and gain entry into this workplace. One potential consequence is biased interpretations of data. To address this, the author constantly revisited the data and compared the author’s interpretations with interviewees' words (i.e. “grounded” theory).

This study provides empirical and theoretical contributions to organizational storytelling scholarship.

The purpose of this paper is to illustrate how social representation theory (SRT) can be used to understand the concept of resistance to change. SRT is a growing theory in social psychology research. SRT is about how individuals co-construct representations of various objects in different social settings. These social representations govern the attitudes and actions of individuals and groups. In spite of the growing interest in SRT in various fields, no studies have used SRT to understand resistance to organizational change.

This study reviews the relevant literature on resistance to change and SRT to develop a conceptual framework for understanding resistance from the standpoint of SRT.

The authors develop a model that illustrates how three interrelated objects, i.e. the organizational process and the pre-and post-change situation, are co-constructed in social contexts. Also, the authors discuss how representations of these objects can co-exist (cognitive polyphasia). Our study illustrates the complexity of resistance to change by deconstructing the concept.

Application of SRT to analyze resistance to organizational change is a novel approach that provides several new insights. For example, where most publications regard advocates of change as sense-givers in the change recipient’s sense-making process, the authors argue for a more constructionist approach. Thus, all actors involved in the change process will affect each other and together co-construct the social representations. These social representations govern attitudes to change.

The promotion of US exports has been a priority for the US Department of Commerce, with the aim of reducing the trade deficit. This, combined with the worldwide reduction in trade barriers, has opened up a number of foreign markets for US companies. A key element of export sales development is successful sales negotiations between US exporters and potential foreign buyers. This study examines sales negotiations between US exporters and foreign buyers from 47 different countries. A large‐scale model of the determinants of satisfaction in exporter‐importer sales negotiations is developed and tested. This model incorporates a series of antecedents (cultural divergence, contextual familiarity, goal compatibility, interdependence, trust, social orientation, cooperative orientation) and two major process variables (sense‐making and sense‐giving) which bring in a communications perspective. The effects of sense‐making and sense‐giving on flexibility and conflict and the impact of flexibility and conflict on satisfaction, the ultimate outcome variable, are also examined. The proposed model is tested with data gathered from 179 respondent US export/international sales managers. The fit was found to be excellent. Implications are provided for US export sales executives, along with a discussion of suggestions for future research.

In the extant organizational change literature scant attention has been given to the communication and cognitive processes consequential to organizational transformation. From the communication and sense-making perspectives, this study discusses the role of positive communication involving stories, metaphors or axioms in fostering socio-cognitive routines necessary for organizational change. The study further examines the empirical link between positive communication and organizational transformation with the survey data from professionals who have experienced the organizational change episode. The paper aims to discuss these issues.

The study examines the empirical link between the positive communication and organizational transformation with a survey data collected from 174 management professionals who have recently experienced the organizational change episodes such as restructuring, reengineering, TQM adoption or new strategy implementation. With the content analysis of narratives containing metaphors, axioms and stories, the study unravels the underlying clusters of organizational and socio-cognitive dimensions associated with organizational transformation.

The study results affirm the importance of positive communication and its effects on the emotional buy-in, learning and transformation occurring at the individual level, and attest to the transformational effect of positive axioms, metaphors or stories on the organization. The study also revealed that the positive communication diffusing social, cognitive or emotional attributes such as commitment, trust or optimism produces the desired transformational effect.

It is imperative for managers to understand the relationship between socio-linguistic processes and cognitive attributes such as trust, commitment and learning. With the help of right metaphors, stories and axioms that resonate with changing industry conditions, managers can effectively orchestrate the strategic intent and organizational transformation.

Most studies on the relationship between managerial communication and organizational transformation are primarily qualitative case studies focusing on the dialectics of organizational change. This study carries the strong external validity by capturing the connection between managerial communications and their transformational effect with the help of data collected from the management professionals across multiple industries.