Search results
1 – 10 of 47Mara Brumana and Giuseppe Delmestri
This paper aims to unpack the organization of an multinational enterprise (MNE) and confront its meso‐level complexity of structures and strategies. It seeks to uncover how the…
Abstract
Purpose
This paper aims to unpack the organization of an multinational enterprise (MNE) and confront its meso‐level complexity of structures and strategies. It seeks to uncover how the glocalization process unfolds, which are the mechanisms at its base and the outcomes in terms of stability, convergence or divergence in strategies and structures.
Design/methodology/approach
Through a case study research design, the paper investigates strategic change in an Italian MNE from 2005 to 2011. In 2008 and 2010, extensive data on organizational configurations were also collected. Overall, the paper analyses the glocalized blending of corporate and subsidiary strategies and organizational structures. Attention is also paid to the cognitive, political and institutional mechanisms that accounted for this process before and during the late‐2000 financial crisis.
Findings
Glocalization, largely interpreted as an in‐between process compromising between homogeneous global standards and heterogeneous local traditions, unfolds as a beyond process leading to divergent outcomes outside the poles of an imagined local‐global continuum. The mechanisms driving strategic change partly differ from those usually described in strategic change literature emphasizing managerial cognition. Sensegiving from the center is found to be proactive during economic expansion and reactive during economic downturn. Following change initiation, cognitive mechanisms are “taken over” by political and institutional ones. Paradoxically, local societal‐specific patterns of organization and strategy were preserved due to the actions of powerful central HQ actors.
Originality/value
A theory of institutional‐bound strategic change within MNEs is outlined.
Details
Keywords
The aim of this paper is to investigate how political activities and processes influence sensemaking and sensegiving among top management, middle management and employees and to…
Abstract
Purpose
The aim of this paper is to investigate how political activities and processes influence sensemaking and sensegiving among top management, middle management and employees and to examine its consequences for implementing new knowledge.
Design/methodology/approach
Data were collected in a Norwegian bank using in-depth interviews with middle managers and financial advisers. Observations of meetings, informal conversations and verbatim notes were also used in data collection among top managers. A practice-based approach was used as an analytical lens.
Findings
Top managers' political activities of excluding others from the decision process affect their sensemaking and resulted in sensegiving contradictions between spoken intent and how to change practice. Middle managers' political activities were to accept top managers' sensegiving instead of managing themselves in their own sensemaking to help financial advisers with how to change their role and practice. As a result, middle managers' sensemaking affects their engagement in sensegiving. For financial advisers, the political processes of top and middle managers resulted in resistance and not making sense of how to change and implement new knowledge.
Research limitations/implications
A total of 30 in-depth interviews, observations of five meetings and informal conversations might call for further studies. In addition, a Norwegian study does not account for other countries' cultural differences concerning leadership style, openness in decisions and employee autonomy.
Originality/value
To the author's knowledge, no studies identify the three-way conceptual relationship between political activities, sensemaking and sensegiving. In addition, the author believes that the originality lies in investigating these relationships using a three-level hierarchy of top management, middle management and employees.
Details
Keywords
The purpose of this paper is to investigate how executives can rapidly gain employee acceptance for strategic change through reciprocal sensegiving. The author draw on a…
Abstract
Purpose
The purpose of this paper is to investigate how executives can rapidly gain employee acceptance for strategic change through reciprocal sensegiving. The author draw on a processual case study of a transformational European merger to study this question, highlighting the properties of reciprocity in making sense of urgent strategic change, then developing them through the lens of a gift exchange.
Design/methodology/approach
The author draws on several qualitative methods to study sensegiving and sensemaking processes in Alpha and Beta from 2011 to 2014: insider-outsider team meetings at the beginning, mid-way and at the end of the merger integration process, ethnographic field notes during a four-month research internship, one focus group meeting with Alpha and Beta managers after the announcement of the redistribution of managerial positions, interviews with a carefully selected sample of top and middle managers, participant observation in key sensegiving meetings with top managers and “custodians,” triangulation with secondary data from the database Factiva, and finally follow-up insider corroboration of the findings by the research intern who took up a management position at Alpha in 2014.
Findings
Likening executive and employee sensegiving to a gift-giving and gift-returning exchange, the author elucidates how executives induce employees to quickly “give in” to strategic change imperatives. the author single out the key third party role of custodians of reciprocity in the mechanism, using the metaphor of the Trojan horse to illustrate its executive use and point to the underexplored darker side of prosocial sensegiving dynamics.
Research limitations/implications
Further research should clarify the long-term advantages and disadvantages of the mechanism. The Trojan horse mechanism possibly sacrifices long-term reciprocity for short-term purposes. Following the example of executives in this case study, use of the Trojan horse mechanism should be followed by attention to socio-political balance concerns, including new procedures that clarify the link between value creation aims and employees’ collective contribution. Without such a cohesion-building exercise, employees’ feelings of procedural injustice may build up, resulting in negative reciprocity in subsequent change projects.
Practical implications
The work indicates that a leader’s visionary credentials are not the main source of her norm-shaping power in a project of urgent strategic change. Visionary credentials are welcomed by the dominant group of employees as long as they are framed as a symbolic management exercise that will not substantially impact socio-political balance. Substantively, employees make sense of the justice of urgent strategic change primarily through the lens of custodians and their “power from the past.”
Social implications
All in all, executives should use the Trojan horse mechanism sparingly, in contexts of urgent strategic change and institutionalized employee behavior. Working with sources and voices of resistance from lower levels of management is more likely to yield symbiotic integration benefits.
Originality/value
Applied to the problem of rapid strategic change in a non-crisis context, the Trojan horse mechanism is a solution to the question: how can executives avoid lengthy socio-political confrontations and quickly induce employee ownership of painful strategic changes?
Details
Keywords
Jerayr Haleblian and Nandini Rajagopalan
In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and…
Abstract
In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.
Although granted funding from government agencies, Britain’s Northern Rock (NR) Bank experienced a depositors’ bank run in 2007. The purpose of this paper is to explore bank…
Abstract
Purpose
Although granted funding from government agencies, Britain’s Northern Rock (NR) Bank experienced a depositors’ bank run in 2007. The purpose of this paper is to explore bank managers’ and the Triparties’ communications, in their failed attempt to reassure depositors during the crisis.
Design/methodology/approach
The paper is based on content analysis of information given to depositors by bank managers and the Triparties via mass media. The theoretical concepts of rituals and masking were utilized.
Findings
Results suggest that nonfinancial reporting supersedes financial reporting. Rather than hidden losses, bank regulators’ and politicians’ discussions of emergency funding for NR was the crucial incident signaling “something going on.” Even positive statements by prominent organizational actors may have signaled serious problems that compromised NR’s “business as usual” stance.
Practical implications
Collective action manifested in a bank run is triggered by reasons other than numbers in financial reporting. The research results indicate a need to consider how regulatory authorities act during financial crises.
Originality/value
Previous studies concluded that sensegivers must be consistent in framing communication to sensemakers. Sensemaking requires that the crisis communication is also consistent in the sensemakers’ framing. Because it is difficult for sensegivers to reshape the collective sensemakers’ frame, successful crisis communication requires that sensegivers change their communication to match the sensemakers’ frame, including symbolic actions. Additionally, a bank run is characterized first by loss of trust in financial reporting; second, in nonfinancial reporting; and, finally, in the sensegiving actor: a domino effect.
Details
Keywords
Amanda Reid, Evan Ringel and Shanetta M. Pendleton
The purpose of this study is to situate information and communications technology (ICT) “transparency reports” within the theoretical framework of corporate social responsibility…
Abstract
Purpose
The purpose of this study is to situate information and communications technology (ICT) “transparency reports” within the theoretical framework of corporate social responsibility (CSR) reporting. The self-denominated transparency report serves a dual purpose of highlighting an ICT company’s socially responsible behavior while also holding government agencies accountable for surveillance and requests for user data. Drawing on legitimacy theory, neo-institutional theory and stakeholder theory, this exploratory study examines how ICT companies are implementing industry-specific voluntary disclosures as a form of CSR.
Design/methodology/approach
A content analysis of ICT voluntary nonfinancial reporting (N = 88) was used to identify motivating principles, the company positioning to stakeholders, the relevant publics and intended audience of these disclosures and the communication strategy used to engage primary stakeholders.
Findings
Key findings suggest that most ICT companies used transparency reporting to engage consumers/users as their primary stakeholders and most used a stakeholder information strategy. A majority of ICT companies signaled value-driven motives in their transparency reports while also positioning the company to stakeholders as a protector of user data and advocate for consumer rights.
Originality/value
This study enriches the literature on CSR communication strategies and reporting practices by extending it to an underdeveloped topic of study: novel voluntary disclosures as CSR activities of prominent ICT companies (i.e. “Big Tech”). These polyphonic reports reflect varied motives, varied positioning and varied stakeholders. For market-leading companies, transparency reporting can serve to legitimize existing market power. And for midsize and emerging companies, transparency reporting can be used to signal adherence to industry norms – set by market-leading companies.
Details
Keywords
Owing to the inconclusive results of prior studies on the strategic change–firm performance relationship, this paper extends the marketing strategy literature by postulating an…
Abstract
Purpose
Owing to the inconclusive results of prior studies on the strategic change–firm performance relationship, this paper extends the marketing strategy literature by postulating an “inverted U-shaped” relationship and the moderating roles of “organizational learning” (OGL) and “strategic flexibility” (STF).
Methodology/approach
A self-administered survey was employed to collect data from different strategic business units of 550 firms operating in Thailand. The data collection yielded a response rate of 17.27%. Confirmatory factor analysis was used to validate the scales, and path analysis was employed to test the hypotheses in this study.
Findings
Although no significant curvilinear relationship was found, the directions of the path coefficients are consistent with the hypothesis. Both OGL and STF serve as significant moderators in the marketing strategic change (MSC)–business performance relationships. While STF strengthens the relationship, the generative OGL tends to weaken it.
Practical implications
Managers need to understand the type of learning that fits different types of strategic changes in order to enhance business performance. Generative OGL may seem harmful for changes that are less proactive. Furthermore, firms should incorporate flexibility in managing political, economic, and financial risks in their strategies by emphasizing investments and cost sharing, flexible human capital allocation, and spontaneous and impromptu actions.
Originality/value
This study extends international marketing strategy literature by empirically testing the hypotheses in an emerging Asian economy. The research proposes a nonlinear relationship between MSC and business performance as well as introduces the moderating roles of OGL and STF.
Details
Keywords
Guido Grunwald, Jürgen Schwill and Anne-Marie Sassenberg
This paper aims to analyze the requirements for stakeholder integration in sustainability project partnerships in times of sustainability crisis. Referring to the COVID-19…
Abstract
Purpose
This paper aims to analyze the requirements for stakeholder integration in sustainability project partnerships in times of sustainability crisis. Referring to the COVID-19 pandemic as a sustainability crisis that has sensitized consumers and other stakeholders to corporate responsibility for social and sustainability issues, a conceptual framework for stakeholder integration is developed from which implications for designing the potential, process and result quality are derived.
Design/methodology/approach
In this conceptual paper, design options for stakeholder integration are derived from open innovation and service management research. Specific crisis-related determinants of stakeholder integration are derived from current corporate social responsibility (CSR) and crisis research taking into account the opportunities and challenges of the COVID-19 pandemic. Design options and crisis-related determinants are then combined to a conceptual framework for stakeholder integration in sustainability project partnerships in times of crisis. Based on this framework, research propositions are derived that provide insights into the design of the potential, process and result quality of stakeholder integration.
Findings
This paper shows that the COVID-19 pandemic can be viewed as a sustainability crisis, which places special entrepreneurial demands on stakeholder integration in sustainability project partnerships. The pandemic offers potential for integrating a large number of stakeholders and has emphasized the need for integrating a broad range of stakeholders. Higher skepticism of stakeholders toward companies' CSR engagement in the pandemic has raised stakeholder demands for early integration. Higher skepticism and CSR involvement have rendered active forms of integration even more relevant, which, however, should still be adapted to the respective stakeholder prerequisites. The pandemic has increased the need for constant and comprehensive exchange of data on project results between stakeholders and the project leading organization. Measurement of target achievement can be promoted by establishing stakeholder commitment with regard to the target measures on the collective and relationship levels of the partnership. Finally, the pandemic has reinforced the need for more dialogical forms of communicating sustainability project results.
Originality/value
Solving problems and exploiting opportunities in times of crisis require a high degree of entrepreneurship and creative leadership in order to gain new ideas and overcome resource deficits. Sustainability project partnerships in which various stakeholders contribute resources and knowledge to collaborate on idea development and finding solutions to sustainability issues are suitable for this. However, previous approaches to stakeholder integration in open innovation and service management research largely neglect the crisis context and only a few are related to sustainability. In CSR and crisis research, stakeholder-related approaches to coping with crises tend to be underrepresented, and the comprehensive concept of stakeholder integration has so far hardly been considered as an approach to crisis management. By taking into account the COVID-19 pandemic as a sustainability crisis, this paper provides new impulses for the integration of stakeholders in sustainability project partnerships in times of crisis. Recommendations for the design of the potential, process and result quality are derived, which provide insights for project leaders and stakeholders alike. In addition, implications for public policymakers are derived, who are assigned an increasingly active role in the pandemic and who can contribute to the success of sustainability project partnerships by setting suitable framework conditions. The developed concept can be expanded to include further company-related determinants and offers a starting point for empirical analysis in the still underexplored research fields of sustainability-oriented relationship marketing and sustainability crises.
Details
Keywords
Kath Checkland, Stephen Harrison, Stephanie Snow, Anna Coleman and Imelda McDermott
The purpose of this paper is to explore the practical daily work undertaken by middle‐level managers in Primary Care Trusts (PCTs), focusing upon the micro‐processes by which…
Abstract
Purpose
The purpose of this paper is to explore the practical daily work undertaken by middle‐level managers in Primary Care Trusts (PCTs), focusing upon the micro‐processes by which these managers enact sensemaking in their organisations.
Design/methodology/approach
The research took a case study approach, undertaking detailed case studies in four PCTs in England. Data collection included shadowing managers, meeting observations and interviews.
Findings
The research elucidated two categories of enactment behaviour exhibited by PCT managers: presence/absence; and the production of artefacts. Being “present” in or “absent” from meetings enacted sensemaking over and above any concrete contribution to the meeting made by the actors involved. This paper explores the factors affecting these processes, and describes the situations in which enactment of sense is most likely to occur. Producing artefacts such as meeting minutes or PowerPoint slides also enacted sense in the study sites in addition to the content of the artefact. The factors affecting this are explored.
Practical implications
The study has practical implications for all managers seeking to maximise their influence in their organisations. It also provides specific evidence relevant to managers working in the new Clinical Commissioning Groups currently being formed in England.
Originality/value
The study expands the understanding of sensemaking in organisations in two important ways. Firstly, it moves beyond discourse to explore the ways in which behaviours can enact sense. Secondly, it explores the distinction between active and unconscious sensemaking.
Details
Keywords
Roger Moser, Jens Winkler, Gopalakrishnan Narayanamurthy and Vijay Pereira
The purpose of this paper is to critically review and explore how organizations knowledgeably respond to unfavorable institutional environments that exert institutional pressures…
Abstract
Purpose
The purpose of this paper is to critically review and explore how organizations knowledgeably respond to unfavorable institutional environments that exert institutional pressures and thereby limit their decision-making and eventually their actual behavior.
Design/methodology/approach
Based on a thorough structuration and analysis of the literature in management and related fields, the authors present a comprehensive synthesis of organizational knowledgeable responses to institutional pressures.
Findings
Based on the review, the authors categorize organizational knowledgeable responses into three major types – passively responding to avoid non-conformity, reactively mitigating institutional pressures and proactively developing institutional environments toward less interfering setups.
Research limitations/implications
The authors discuss the enabling conditions for the categorized organizational knowledgeable responses as well as limitations to their application. They identify research gaps and formulate research questions to offer promising avenues for future work. The authors expect this detailed synthesis to lay the framework for investigating how the knowledge-based view of the organization influences its knowledgeable response to institutional pressure.
Practical implications
The authors elaborate on distinct passive, reactive and proactive strategies, which firms can apply to cope with institutional pressures. The contribution of this study will be of relevance to practitioners managing organizations in the face of unfavorable institutional setups, as well as to policymakers engaged in the development of institutions and interacting with affected organizations.
Originality/value
This study provides a valuable overview on developments in institutional theory, particularly on contributions to the “nascent literature” that examines heterogeneous organizational knowledgeable responses to institutional pressures.
Details