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Article
Publication date: 1 April 2005

Roberto S. Vassolo, Filipe De Almeida Ravara and John M. Connor

This study analyzes the trade‐off between strategic flexibility and commitment for cases of simultaneous and related strategic investments under high levels of…

Abstract

This study analyzes the trade‐off between strategic flexibility and commitment for cases of simultaneous and related strategic investments under high levels of uncertainty. It develops a model that, using a Cournot game and real option theory, demonstrates that (1) a correlated strategic investment adds value to a portfolio of ongoing strategic investments in a decreasing marginal fashion, and (2) the new investment delays the development of the other investments. Managers who fail to recognize these properties may make strategic commitments that destroy value, even in the presence of options with individual positive values. An important feature of the model is that competitive advantages may flow from market power or from the capability of managing the portfolio.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 3 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 1 April 2008

Roberto S. Vassolo and Jaideep Anand

Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines…

Abstract

Firms frequently need to update their capabilities in changing environments but face significant barriers to accomplish this goal due to the stickiness of their routines, local search constraints, bounded rationality, uncertain imitability, and causal ambiguity. Under high levels of uncertainty, dynamic capabilities are often externally oriented, involving acquisitions and alliances. However, nonunique but competitive predictions about the behavior of these capabilities arise from the evolutionary theory. We test these competitive hypotheses analyzing portfolios of acquisitions and alliances made by pharmaceutical firms in search of portfolios of biotech capabilities. The analysis of portfolios enables us to better identify “common practices” in the pharmaceutical industry than using a transactional‐level focus. We develop implications for the evolutionary theory and for managerial practice.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 6 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Book part
Publication date: 13 August 2007

Jaideep Anand, Raffaele Oriani and Roberto S. Vassolo

This study analyses the determinants of the value of a portfolio of real options and explores implications for strategic management. It focuses the analysis on four…

Abstract

This study analyses the determinants of the value of a portfolio of real options and explores implications for strategic management. It focuses the analysis on four elements: the number of real options in the portfolio, constraints on the number of options that can be exercised, the volatility of underlying assets, and the correlation between underlying assets. These elements are articulated around a trade-off between growth options and switching options and are applied to different strategic situations of technological, market, and macroeconomic uncertainty.

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Article
Publication date: 12 August 2014

Adrian Caldart, Roberto S. Vassolo and Luciana Silvestri

The purpose of this paper is to revise Burgelman’s idea (1991, 1994) that induced strategic processes is necessarily variation-reducing. In doing so, the authors explore…

Abstract

Purpose

The purpose of this paper is to revise Burgelman’s idea (1991, 1994) that induced strategic processes is necessarily variation-reducing. In doing so, the authors explore whether major change in a firm’s administrative system can be managed in an evolutionary fashion via induced variation-increasing mechanisms. In particular, the authors focus on a multi-business multinational firm in which different administrative systems were experimented simultaneously as a way to determine which of these systems provided the most conducive context for innovation and capability development.

Design/methodology/approach

The authors adopted an inductive perspective and developed a single case research project aimed at documenting the process of experimentation and subsequent selection and adoption of a new administrative system by a large multi-business multinational firm.

Findings

The paper’s main contribution is the concept of “induced variation”, understood as intra-organizational variation-increasing mechanisms deliberately created at the top level of the organization to trigger an intra-organizational evolutionary process of management innovation. This finding extends and modifies Burgelman’s discussion of induced and autonomous strategic behavior by showing that induced processes need not necessarily be variation-reducing, but may actually be variation-increasing. Additionally, the authors explain how an evolutionary process aimed at learning about the relative merits of alternative administrative systems through in vivo “reflection in action” (Schön, 1983) unfolds in a complex global organization.

Research limitations/implications

While the work provides several insights on the development of an evolutionary process leading to management innovation, its inductive nature limits its external validity and requires the development of further work for such purpose.

Practical implications

The authors explore the roles of regional organizations in creating new corporate capabilities for the MNC.

Social implications

The authors show how management capabilities developed in the Latin American context were rolled out to other locations.

Originality/value

The authors' findings confirm that major drastic reorganization initiatives can actually be approached using an evolutionary approach.

Details

Management Research: The Journal of the Iberoamerican Academy of Management, vol. 12 no. 2
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 29 June 2012

Andrés Hatum, Luciana Silvestri, Roberto S. Vassolo and Andrew Pettigrew

There is little doubt that organizational identity – that which is central, distinctive, and enduring about an organization – mediates in adaptive processes. Exactly how…

Abstract

Purpose

There is little doubt that organizational identity – that which is central, distinctive, and enduring about an organization – mediates in adaptive processes. Exactly how this mediation takes place, and whether it is favorable or unfavorable to adaptation, must still be fully established. The purpose of this paper is to add to the literature on identity and adaptation by exploring the relationship between these two constructs in family firms operating in an emerging economy. Based on measures of strength of identity, the authors examine how identity affects the adaptive processes of issue identification, strategic impulse definition, and implementation, where the authors look at pace of adjustment.

Design/methodology/approach

Longitudinal and comparative case studies were conducted of polar types presenting two pairs of organizations in two separate industries. These organizations faced the challenge of founder succession and a radical shift in macroeconomic conditions over a period of three decades. Through these four cases the authors hope to provide clear pattern recognition of strength of identity and adaptation – and of the relationship between these two constructs – in the face of severe internal and external shocks. The approach seems adequate in the larger context of inductive theory development and particularly suitable to the exploration of theoretical constructs, as it allows the researcher to unravel the underlying dynamics of path dependencies and/or evolutionary processes.

Findings

It is found that strong‐identity organizations are able to foresee relevant changes in their industries, define adequate strategic responses, and implement them in an evolutionary (i.e. smooth) manner. Conversely, loose‐identity organizations misread industry trends, incur strategic paralysis, and must eventually enforce revolutionary (i.e. violent) changes in order to ensure survival.

Originality/value

The paper addresses a critical issue for the advancement of organizational theory: the relationship between organizational identity and adaptation in emerging economies. In addition, it has important practical implications for managers doing business in turbulent environments. It makes a sound theoretical contribution and has important managerial implications.

Details

International Journal of Emerging Markets, vol. 7 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 4 June 2010

Natalia Weisz, Roberto S. Vassolo, Luiz Mesquita and Arnold C. Cooper

The purpose of this paper is to examine the influence of team member diversity and internal social capital on project performance within the context of business plan…

1187

Abstract

Purpose

The purpose of this paper is to examine the influence of team member diversity and internal social capital on project performance within the context of business plan competitions (BPCs).

Design/methodology/approach

The paper uses survey data on 95 nascent entrepreneurial teams enrolled in an open‐to‐the‐public BPCs. It assumes that higher levels of functional diversity as well as higher levels of internal social capital enhance the performance of nascent entrepreneurial teams in the crafting of their business plans (BPs).

Findings

Under this particular context, where the needs for information processing and decision‐making requirements are so high, teams having higher levels of functional diversity attained better performance. Inversely, teams with higher levels of internal social capital did not show a significant advantage in the development of the BP.

Research limitations/implications

Limitations are associated with the exclusion of external social capital measures and not considering demographic faultlines, which might have some impact on the results. Besides, this paper has the limitation of basing its analysis upon teams within a BP contest. Theoretical implications stress that under contexts maximizing the difference between potential upside gains and downside losses, team diversity is expected to play a larger role for BP effectiveness and success than team members' internal social capital.

Practical implications

Recognizing team prevalence and the impact of social dynamics amongst team members within entrepreneurial settings.

Originality/value

The paper contributes with the impact of social dynamic processes on nascent entrepreneurial teams.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 8 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 12 August 2014

Francisco Diaz Hermelo, Hernan Hetiennot and Roberto S. Vassolo

The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country…

Abstract

Purpose

The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects.

Design/methodology/approach

The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component.

Findings

The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

Originality/value

To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

Details

Management Research: The Journal of the Iberoamerican Academy of Management, vol. 12 no. 2
Type: Research Article
ISSN: 1536-5433

Keywords

Content available
Article
Publication date: 4 June 2010

Rita Campos e Cunha

359

Abstract

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 8 no. 1
Type: Research Article
ISSN: 1536-5433

Book part
Publication date: 13 August 2007

Abstract

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Article
Publication date: 24 January 2022

Guilherme Tortorella, Tarcisio Abreu Saurin, Flavio Sanson Fogliatto, Diego Tlapa, José Moyano-Fuentes, Paolo Gaiardelli, Zahra Seyedghorban, Roberto Vassolo, Alejandro Francisco Mac Cawley, Vijaya Sunder M, V. Raja Sreedharan, Santiago Alfredo Sena and Friedrich Franz Forstner

In this paper, the authors examine the impact of Industry 4.0 (I4.0) technologies on the relationship between total productive maintenance (TPM) practices and maintenance…

Abstract

Purpose

In this paper, the authors examine the impact of Industry 4.0 (I4.0) technologies on the relationship between total productive maintenance (TPM) practices and maintenance performance.

Design/methodology/approach

Data collection was carried out through a multinational survey with 318 respondents from different manufacturing companies located in 15 countries. Multivariate data techniques were applied to analyze the collected data. Diffusion of innovations theory (DIT) was the adopted theoretical lens for our research.

Findings

The authors’ findings indicate that I4.0 technologies that aim to process information to support decision-making and action-taking directly affect maintenance performance. Technologies oriented to sensing and communicating data among machines, people, and products seem to moderate the relationship between TPM practices and maintenance performance. However, the extent of such moderation varies according to the practices involved, sometimes leading to negative effects.

Originality/value

With the advances of I4.0, there is an expectation that several maintenance practices and performance may be affected. Our study provides empirical evidence of these relationships, unveiling the role of I4.0 for maintenance performance improvement.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 3
Type: Research Article
ISSN: 1741-038X

Keywords

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