Search results

Change readiness (CR) is viewed as a multidimensional behavior that reflects the firm's competencies to do three things in response to environmental opportunities and threats in its industry: trigger identification; gearing up to take action (preparation); and the action's degree of novelty. The main purpose of this study is to propose and test an alternative conceptualization for CR.

Data were collected from 217 organizations in 14 countries. All respondents were in charge of, or involved with, their firms' strategic decisions and implementations thereof and filled out a structured questionnaire.

It was found that CR is influenced by both internal and external variables, including management orientation (entrepreneurial, centralization), environmental barriers, and technology and innovation roles in firms' business strategies. In addition, a higher degree of CR was correlated with better performance and with higher management evaluation of success in coping with environmental triggers.

The size and selection of the sample may pose limits in generalizing the study findings. Future studies may increase the number of interviews per firm, use objective assessments of performance and provide more specific information about threats and opportunities, as well as the type of industry.

The proposed CR concept is based on specific behavior rather than on attitude. CR is perceived as a strategy‐oriented construct that demonstrates the capacity of an organization to respond effectively to new developments in its environment.

Sabaf, a world‐leading manufacturer of components for domestic gas cooking appliances, went through a transformation process between 1993 and 2005 to develop a strategic approach to corporate responsibility that embedded social, environmental and governance issues into its organisation, its approach to business and its overall performance. This case describes the learning and change process within the company that set the ground for today's success.

This teaching case builds on data gathered through sites visits, interviews and company materials. The case research protocol explored the notion that the company was learning how to interact, and respond to its changing context, while its responses were creating the ground for internal organisational change that in turn would impact the relationship between the company and its context.

While on the surface the change process which Sabaf experienced can be regarded as a move from an implicit to a more explicit approach to corporate responsibility, it is also possible to take the view that the company was engaged in developing a more “humanistic” approach to management that permeated the whole organization. What became explicit at Sabaf was not corporate responsibility but rather the term “corporate responsibility” used to describe much older concepts of business that valued people and the natural environment alongside economics. The case also shows the process of organizational leadership for learning, management innovation and change that supported the processes through which this approach was developed and integrated into the company.

This case provides unique insights into the approach Sabaf adopted in its pioneering transformation to become a leading corporate responsibility company and a world leader in its sector. This case can be used as a benchmark for other companies that might embark on the process of integrating corporate responsibility and business performance as a strategic process that has effects that cut across the business as a whole.

The literature on corporate responsibility (CR) increasingly recognizes the importance of leadership in support of organizational change. This is particularly the case when CR provides the basis for the business contribution to sustainable development, which is understood to involve organizational and social innovation leading to change. The paper draws on theoretical and empirical studies to examine leadership for CR as a particular example of management innovation.

The paper develops a model of leadership for CR as the business contribution to sustainable development by confronting and integrating the literatures on management innovation and leadership for CR. The proposed model is consistent with the direction, alignment, commitment (DAC) framework that fosters a culture of organizational leadership relevant to the specific case of business and sustainable development.

The process model described in the paper connects leadership in organizational change with literature on management innovation. The paper draws on theoretical and empirically grounded literature on management, corporate responsibility and organizational psychology. It puts forward a sequence of mechanisms that contribute to successful change and discusses how they are linked. This sequence provides a process model of leadership practices for CR as the business contribution to sustainable development viewed as a particular form of management innovation, which involves the advancement of leadership practices for CR as organizational and social change.

The model is useful as a reference to practice and as a basis for leadership development. In terms of theory the model needs to be more thoroughly tested in empirical settings to understand better the interdependencies between leadership practices for CR and management innovation.

This process model is the first attempt to develop a comprehensive understanding of CR in a management innovation framework. In doing this it moves beyond the recent focus on leadership skills and competences of individuals.

As family and nonfamily businesses differ in how they do business, the focus of this manuscript is on understanding how strategy-level models can be misinterpreted if family involvement is not considered. Thus, in this manuscript, the focus is on understanding the extent to which strategic orientations (market orientation and technology orientation, which reflect strategic approach), strategic performance metric focus (financial-based, optimization-based and market-based, which reflect strategy evaluations) and strategic audacity (which reflects boldness in envisioning and delivering strategic outcomes) play a role in driving firm performance – in family businesses vs nonfamily businesses. Understanding how these drivers impact performance differently in family vs nonfamily businesses enables companies to better direct their strategic efforts.

After presenting theoretical concepts, authors use regression analysis on a sample of companies in a developing European Union (EU) country (n = 282) to evaluate the impact of strategic orientation, strategic performance metric focus and strategic audacity on firm performance separately in three samples: the full sample (consisting of both family and nonfamily-owned firms), sample of family businesses and the sample of nonfamily businesses.

The role of strategic orientation, strategic audacity and focal goals in driving firm performance differs depending on the company type (family vs nonfamily). In the case of nonfamily businesses, strategic audacity and technology orientation with the focus on efficiencies and markets are driving firm performance. In the case of family businesses, both market and technology orientation are important drivers of performance; the focus on financial and market indicators of performance is positively impacting performance, while the focus on efficiency indicators is diminishing the performance of family businesses. Thus, results show that of the performance drivers for family businesses, some are insignificant (strategic audacity), while some even have a negative impact (focus on optimization-based measures of performance) on family businesses' performance. Moreover, results show that some of the drivers of performance in case of family businesses (market orientation and focus on financial-based measures of performance) are not drivers of outstanding performance in the case of nonfamily businesses.

Best practices differ for family vs nonfamily businesses. In case of family businesses, comparing them to nonfamily businesses, market orientation and the focus on financial-based measures of performance have a greater impact on firm performance, while, at the same time, family businesses should refrain focusing on pursuing optimization-based measures of performance as such pursuit drives down their performance. Understanding the drivers of performance specific to family businesses will enable such firms to better navigate contexts characterized by ambiguity and uncertainty.

The manuscript evaluates how models, generally researched in the overall firm metrics, differ between family businesses and nonfamily businesses, thus delivering new insights into the important marketing concepts.

The purpose of this paper is to examine the association of different configurations of intellectual capital (IC) and knowledge management practices (KMP) with firm performance. Do firms with different profiles concerning their overall levels of IC and KMP differ in terms of innovation and market performance?

First, the firms were distributed into four distinct profiles based on their overall level of IC and utilization of KMP. Then, the four different IC/KMP profiles were evaluated with regard to their innovation and market performance.

Consistent with the extant research, this study finds that the firms characterized with high levels of IC and high use of KMP are likely to outperform the firms with low overall levels of IC and KMP. On more interesting note, this study also demonstrates that firms characterized with high level of IC but only low utilization of KMP can match the innovation performance of the firms with high levels of IC and KMP.

While the results indicate that the level of IC alone could predict the innovation potential of the firm, the firms should use KMP to leverage the IC and to capitalize the knowledge potential. This result shows the merits of letting innovation flourish without strict managerial control, while pinpointing the relevance of knowledge management (KM) in exploitation of IC.

As one of the first attempts to merge the IC and KM approaches to find out which configurations could influence firm performance outcomes, this study provides the research community with valuable insights and sets the tone for further discussion.

Purpose – This chapter seeks to theoretically demonstrate that authentic corporate strategy is entrenched in an ethical responsibility, and ethical responsibility requires a strategic framework to qualify as a sustainable value co-creation process that determines the long-term success of the firm.Design/methodology/approach – Through economic philosophical analysis and content analysis, we critically reviewed literature which argues for the integration of corporate responsibility (CR) and corporate strategy both in theory and practice by putting the concept into a proper context of institutional and time-based dynamics.Findings – The chapter delineates the salient dimensions of the dominant logic (D-L) of strategic corporate responsibility (SCR). The traditional notion of CSR is explained, compared and contrasted with the transitioning process of strategic CSR and the D-L of SCR which is at the civic level. We also identified four global forces that serve as enablers of strategic CR logic.Practical implications – The D-L of SCR explains how a firm defines and redefines itself and not what a firm does. We underscore what firms are in the ‘process of becoming’ through a co-evolutionary process with markets and institutions. Firms which want to go beyond mere survival in the 21st century must see the D-L of SCR not as a choice but as an imperative constrained by these global forces.Originality/value of chapter – The novelty of this chapter is that it challenges traditional CSR and provides a shift in thinking about the concept of CR where sustainability and innovative strategies become the source of institutional and market legitimacy and hence a competitive advantage.

Although the importance of trust in creating and maintaining interorganizational relationships has been acknowledged, little research has focused on the processes leading to the development of trust in international strategic alliances. This article addresses this shortcoming and reports the results of field research on the evolution of AMRAD Pharmaceuticals, a strategic alliance between U.S. and Australian biomedical firms. Based on this case study, a process model of trust is developed which describes how trust can be created and expanded between strategic alliance partners, and its implications for alliance performance. Propositions are developed to motivate and guide future empirical investigation.

This paper examined the relationships between national culture and strategic behavior in the banking industry in Jordan and U.S. The study first developed a strategic posture and secondly a cultural profile for the top management of the research domain. The strategic posture suggested the readiness for strategic response from managers. The degree of readiness was correlated with the constructed cultural profile of the managers and financial performance of the banks. The study found significant relationships between certain national cultural strategic characteristics, (risk propensity, time orientation, and openness to change, uncertainty avoidance and managerial perception of control over the environment) strategic behavior and financial performance.

This paper aims to explore the relationship between community relations (CR) and the concept of place branding (PB) by analysing several companies in a developing sub-Saharan country – Ghana, and developing a framework that links the selected concepts together.

The paper provides an analysis based on a multiple case study approach, with an interpretivist analysis of secondary and primary data derived from archival documents and in-depth interviews of corporate social responsibility (CSR) and brand managers from purposefully selected cases of private financial institutions. The data gathered were qualitatively analysed to identify and interpret common themes about CR, PB and other relevant factors such as culture. Based on analysis of the qualitative data, a comprehensive framework for CR and PB was formulated.

Findings show that in the developing sub-Saharan country Ghana, the process of establishing a place brand is complex because of influences exerted on CR practices by culture, management agenda of private organisations, government intervention and the fragmentation of efforts to generate a coherent dialogue with numerous stakeholders.

The study shows that managers can leverage on an array of CR elements, including moral and ethical obligations of the company, provision of economic benefits, integration, common goals between the corporation and its communities, responsibility to stakeholders, proactive action, partnerships across sector lines and active leadership, to boost PB. Thus, this research will help policymakers, country brand managers and communication professionals in structuring a proper PB starting from the efforts made in the CR field.

This research can be considered one of the few studies undertaken with a view to understanding and developing a CR framework that links with PB in a developing country. The study identifies several important moderators of PB and factors influencing CR. All issues are approached from the study of PB that promotes economic, commercial and political interests at home and abroad.

Scholars have widely asserted that a firm’s manufacturing technologies must be aligned with its competitive strategy. This study tests the existence of such a strategy‐technology “fit”, determines whether good fit results in better performance, and examines the nature of fit in light of computer controlled or “advanced manufacturing technologies”. For a sample of 399 metal machining firms, a strategy‐technology alignment was found to exist and relate to higher financial performance. Advanced manufacturing technologies were found to both reinforce and alter conventional thinking about the flexibility‐efficiency tradeoff. Specific technologies were found to be uniquely bundled or combined to support specific competitive requirements.