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1 – 10 of 14Izzet Darendeli, T.L. Hill, Tazeeb Rajwani and Yunlin Cheng
This paper aims to explore the ideas that social legitimacy (acceptance by the public within a country) serves as a hedge against political risk and that the perceived social…
Abstract
Purpose
This paper aims to explore the ideas that social legitimacy (acceptance by the public within a country) serves as a hedge against political risk and that the perceived social value of Multinational Enterprises (MNEs’) products or services improves firms’ social legitimacy and so resilience to political shock.
Design/methodology/approach
Drawing from a unique data concerning global construction activity and taking advantage of the Arab Spring as an exogenous, political shock, this paper teases out the relative effects of pre-shock experience and product/service emphasis.
Findings
The authors find that construction firms that worked on a higher proportion of socially beneficial projects – such as water infrastructure, transportation and telecommunications – recovered more quickly from political shock than did those that worked on projects primarily for manufacturing interests or the oil industry. The authors also find that deep experience in a country had no bearing on a firm’s ability to recover from political shock.
Originality/value
The findings suggest that market behaviors that enhance social legitimacy also enhance MNEs’ ability to survive in volatile political settings. These insights add to the political risk and nonmarket strategy literatures the idea that market strategies that are attentive to nonmarket strategic goals are an important addition to the toolkit for managing political risk. More specifically, when it comes to surviving political shock, pre-shock emphasis on socially beneficial products seems to create a social legitimacy buffer that enhances resilience more than do deep country experience and associated social and political ties with the political elite.
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George O. White III, Tazeeb Rajwani and Thomas C. Lawton
The international strategies of multinational enterprises are increasingly augmented by insights on, and approaches to, external stakeholders and nonmarket dynamics. The rise of…
Abstract
Purpose
The international strategies of multinational enterprises are increasingly augmented by insights on, and approaches to, external stakeholders and nonmarket dynamics. The rise of populism and increased geopolitical uncertainty have accelerated these efforts, particularly for business leaders anticipating and engaging external agents, events, and issues that challenge the strategic objectives of their enterprises.
Design/methodology/approach
In this paper we explain why the increased preponderance of populism and geopolitical uncertainty are concurrently posing an existential threat to the post-Cold War global economy predicated on free trade and (relatively) open borders and, consequently, challenging the structures and strategies of international business.
Findings
We provide an overview of the four papers in our special issue and consider how each advances insights on how multinational enterprises effectively navigate the nonmarket uncertainties of the contemporary global economy. We then advance four important areas for international business research on multinational nonmarket strategies: (i) resilience and legitimacy; (ii), diversification; (iii), market and nonmarket strategy integration; and (iv), institutional arbitrage.
Research limitations/implications
We anticipate that nonmarket strategy scholars can build on these themes to assess how nonmarket strategies can better enable multinational enterprises to survive and thrive in an age of heightened global risk and uncertainty.
Originality/value
This paper and the related special issue provides novel theoretical insights by drawing attention to the relatively under-researched realm of multinational enterprise nonmarket strategy, particularly in populist contexts and during periods of geopolitical uncertainty. Importantly, we identify four promising domains – resilience and legitimacy, diversification, the integration of market and nonmarket strategy, and institutional arbitrage – for international business scholars investigating nonmarket strategy to consider. We anticipate that our paper, as well as other papers in this special issue, contribute further momentum to this burgeoning area of research.
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Edward M. Mungai, S. Wagura Ndiritu and Tazeeb Rajwani
This study aims to investigate the drivers for adopting energy efficiency practices within an emerging market context.
Abstract
Purpose
This study aims to investigate the drivers for adopting energy efficiency practices within an emerging market context.
Design/methodology/approach
Drawing on the shared value theoretical perspective, this study investigates the corporate strategy approaches toward energy efficiency in firms. This paper draws from a sample of 852 Kenyan firms from 14 sectors. This study’s analysis is based on an ordered probit model.
Findings
The findings indicate that companies that conduct energy audits, have environmental performance-based compensation for senior management, provide staff training on energy efficiency and have a written energy policy are more effective in energy efficiency and conservation efforts. Based on the findings, this study recommends that companies and policymakers incentivize corporate actions and strategies to promote energy efficiency. While this study’s findings offer critical insights, the authors recommend future research to make sectorial comparisons.
Originality/value
Studies focusing on drivers of energy efficiency are limited, and those that exist are often either qualitative or focused on large, listed firms. By investigating 852 companies in 14 sectors in Kenya, this study adds to the literature on firms’ energy efficiency management.
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George O. White III, Thomas A. Hemphill, Tazeeb Rajwani and Jean J. Boddewyn
The purpose of this study is to apply the institution-based view and resource dependence theory in arguing that perceived deficiencies in a legal service sector where a foreign…
Abstract
Purpose
The purpose of this study is to apply the institution-based view and resource dependence theory in arguing that perceived deficiencies in a legal service sector where a foreign subsidiary operates will influence the intensity of its political ties with actors in both the regulatory and legal arenas. The authors further theorized that these relationships will vary across governance environments.
Design/methodology/approach
The research context for this study was multinational enterprises (MNE) wholly owned foreign subsidiaries and international joint ventures (IJVs) operating in the Philippines and Thailand. Data for most variables in this study came from primary survey data collected in 2018 from senior managers of MNE WOSs and IJVs operating in the Philippines and Thailand.
Findings
The authors’ analysis of 352 foreign subsidiaries operating in the Philippines and Thailand show that, in a flawed democracy, perceived deficient legal services enhance the intensity of foreign subsidiary political ties with government actors in both the regulatory and legal arena. However, in a hybrid regime, perceived deficient legal services enhance only the intensity of foreign subsidiary political ties with government actors in the regulatory arena. The authors’ findings also suggest that the relationship between perceived deficiencies in legal service sector and the intensity of political ties is stronger for foreign subsidiaries that operate in heavily regulated industries across both a flawed democracy and hybrid regime. Conversely, the authors do not find the market orientation of these foreign subsidiaries to play a role in this process.
Research limitations/implications
The authors’ study was unable to control for whether managerial perceptions of deficient legal services were well informed at the local or federal level. This issue raises the question of will the presence of an in-house legal department influence managerial perceptions with regard to deficiencies within a legal service sector? Based on these limitations, the authors suggest that future research can further extend political ties research by using a fine-grained analysis in investigating the antecedents of managerial perceptions of legal services within different legal jurisdictions.
Originality/value
The political ties literature has largely argued that political ties are more prevalent in environmental contexts comprising institutional voids as MNEs attempt to mitigate volatility associated with the lack of developed institutional infrastructure (e.g. Blumentritt & Nigh, 2002; Bucheli et al., 2018). However, the concept of institutional voids is very broad and still rather abstract in nature. Hence, scholars have yet to fully understand what types of institutional voids may drive MNE foreign subsidiary political tie intensity in varying governance contextsThe authors’ study attempts to contribute to this important line of research by investigating how one type of institutional void, namely, perceived deficiencies in the legal service sector, can influence the intensity of political ties in varying governance environments.
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Arthur Kearney, Denis Harrington and Tazeeb Rajwani
This study aims to systematically review strategy making in the seaport context during a period of hyper uncertainty.
Abstract
Purpose
This study aims to systematically review strategy making in the seaport context during a period of hyper uncertainty.
Design/methodology/approach
A systematic review using the context, intervention, method and outcome (CIMO) framework is conducted in the domains of strategy making and the port sector taking account of hyper uncertainty caused by Brexit.
Findings
Strategy making (under conditions of hyper uncertainty) is shown to evolve from both stakeholder/supply chain embedded relationships and from chief executive officer and extra organisational inputs. Through an iterative process of internal resourcing, stakeholder engagement strategy development can be seen to impact five key outcomes of an emerging strategy making under hyper uncertainty: economic returns; societal and regional impacts; deeper improved market engagement; improved environmental sensing and potential for dynamic capability development.
Research limitations/implications
The systematic review integrates the existing fragmented research landscape regarding strategy making under hyper uncertainty, provides future research trajectories and develops a framework emerging from the review.
Practical implications
The framework offers port management and policymakers a tool to improve their engagement with strategy making under hyper uncertainty and associated outcomes.
Originality/value
The systematic review consolidates the fragmented literature and presents future research trajectories. The framework of strategy making under hyper uncertainty developed from the CIMO framework develops existing knowledge and contributes to academic theory.
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Arthur Kearney, Denis Harrington and Tazeeb Rajwani
Using a state of the art CIMO literature review the paper develops a framework of the relationship between strategy making in the small tourism firm context and four performance…
Abstract
Purpose
Using a state of the art CIMO literature review the paper develops a framework of the relationship between strategy making in the small tourism firm context and four performance outcomes.
Design/methodology/approach
The paper uses the CIMO literature review method, adapted from the wider management literature to structure and integrate the existing fragmented literature base.
Findings
Premised on the literature review, a framework of the relationship between strategy making and firm performance in context is posited. Emerging from a dominant owner/manager in a deeply embedded context strategy making influences firm performance across four dimensions. The influence is dynamic, continually subject to modification in a changing environment often mediated through emerging technology.
Research limitations/implications
The CIMO method provides an integrated framework of the relationship between strategy making and small firm performance in context hence overcoming limitations of the fragmented nature of the research landscape. Emerging from the review key future research trajectories is posited.
Practical implications
While highlighting the relationship between strategy making and performance, the proposed framework implies owner/managers play the key role in strategy making with opportunities and challenges in modifying existing strategy making emerging from owner/manager embeddedness. Opportunities for improved policy interventions are posited.
Originality/value
The paper applies the systematic review to the relationship between strategy making and the small tourism firm.
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Arthur Kearney, Denis Harrington and Tazeeb Rajwani
This paper aims to investigate the interaction of the relationships between group behaviour, group process and learning outcomes in online executive education.
Abstract
Purpose
This paper aims to investigate the interaction of the relationships between group behaviour, group process and learning outcomes in online executive education.
Design/methodology/approach
A systematic review of literature in the relevant conceptual domains is performed.
Findings
A framework is proposed from the systematic review and proposes a dynamic classroom environment where instructor capability interacts with group process and behaviour to generate new learning outcomes. The impact of institutional context and technology infrastructure are highlighted as drivers of both the classroom and instructor effectiveness.
Research limitations/implications
The systematic review highlights several future research trajectories posing the questions: How disruptive innovation impacts on instructor capability development? How alternative theories explain the routines underpinning instructor capability? What is the role of external partners in the development of learning in context? What is the nature of instructor innovation capability? and How does instructor technology capability impact on learning outcomes?
Practical implications
Human resource development practitioners are presented with insights as to their existing and potential future roles in enhancing group behaviour, process and learning outcomes in executive classrooms impacted by technological change. The subsequent potential for practitioner enabled learning innovation is highlighted.
Originality/value
This paper contributes to contemporary debates regarding the interaction of emerging technologies and the executive online classroom, specifically focusing on the area of group behaviour process and learning.
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Thomas Lawton, Tazeeb Rajwani and Conor O'Kane
This paper aims to illustrate how legacy airlines can reorientate to achieve sharp recoveries in performance following prolonged periods of stagnation, decline and eroding…
Abstract
Purpose
This paper aims to illustrate how legacy airlines can reorientate to achieve sharp recoveries in performance following prolonged periods of stagnation, decline and eroding competitiveness.
Design/methodology/approach
The authors use a qualitative analysis of five longitudinal case studies of legacy airlines that embarked on strategic change between 1997 and 2006. Data collection spanned ten years and included archival data, public documents, news clippings, accounts in specialist books and internal company documentation.
Findings
The paper identifies two distinct approaches for reorientation in the legacy airline industry. Companies that have fallen behind and are in risk of failure focus on regaining customer trust and loyalty, and restructuring route networks, business processes and costs in an “improvement and innovation” reorienting approach. Underperforming airlines, for whom growth has declined in traditional markets and who note that opportunities exist elsewhere, focus on product and service development and geographical growth in an “extension and expansion” reorienting approach.
Practical implications
The paper develops a framework for successful reorientation in the legacy airline industry. This framework encourages executives to focus on and leverage profit maximization, quality, leadership, alliance networks, regional consolidation and staff development during periods of strategy formulation and reorientation.
Originality/value
This research addresses the dearth of understanding and attention afforded to the concept of reorientation in the literature on strategic turnaround. The research also serves to emphasize the presence and importance of reorientation as a strategy of change within the legacy airline industry. Furthermore, in demonstrating how this strategy can be implemented in a sharp‐bending or performance improvement context, this study illustrates how reorientation is intertwined with the broader turnaround process.
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Thomas Lawton and Tazeeb Rajwani
The purpose of this paper is to explore how, in unpredictable policy environments, specific managerial choices play a vital role in designing lobbying capabilities through the…
Abstract
Purpose
The purpose of this paper is to explore how, in unpredictable policy environments, specific managerial choices play a vital role in designing lobbying capabilities through the choice of levels of investment in human capital, network relationships and structural modification.
Design/methodology/approach
Using an inductive case study approach, data were collected through 42 in‐depth, semi‐structured interviews and documented archival data. Cross‐case pattern sequencing was used to construct an interpretive model of lobbying capability design. Data were framed by the dynamic resource‐based theory of the firm.
Findings
Heterogeneous lobbying capabilities are adapted differently in private and state‐owned airlines as a result of diverse ownership structures and time compositions that interplay with organizational processes. The result is a divergence between private‐ and state‐owned airlines in how they engage with governmental actors and policies.
Research limitations/implications
The paper contributes to ongoing discourse in and between the dynamic capabilities and corporate political activity literatures, particularly on how state/non‐state‐owned airlines design their political lobbying capabilities. The research is limited in so far as it only studies the European airline industry.
Originality/value
The paper illustrates how a specific and far‐reaching unanticipated external policy stimulus (the 9/11 terrorist attacks) impacted on management choices for lobbying design in the European airline industry.
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