On boundary spanners and interfirm embeddedness: The role of guanxi institution in China

Based on social embeddedness theory and institutional theory, we construct a research model that depicts how boundary spanners’ personal relationships affect dyadic embeddedness at the organizational level, under the varying influence of guanxi institution across different regions in China. We empirically test our model by analyzing data collected from 225 retail gas stations within the distribution network of a major Chinese petroleum company. Our analysis shows that boundary spanners need to first establish relational ties, which, in turn, influence interfirm dyadic embeddedness. Additionally, the results indicate that the informal institutions, such as guanxi in China, exert an indirect effect on personal trust through personal closeness. The informal institutions also moderate the effects of personal level trust on organizational level trust, which is a key linkage between personal relationship and interfirm embeddedness.     

Enhance environmental commitments and green intangible assets toward green competitive advantages: an analysis of structural equation modeling (SEM)

This study explores the positive effects of environmental commitments and green intangible assets on green competitive advantages of companies in Taiwan. The results show that environmental commitments and green intangible assets are positively associated with green competitive advantages. Investments in the environmental commitments and green intangible assets are helpful to businesses for the enhancement of green competitive advantages. Furthermore, this study finds that environmental commitments, green intangible assets, and green competitive advantages of small & medium enterprises (SMEs) are all less than those of large enterprises in Taiwan. Hence, there is the advantage of firm size with respect to environmental commitments, green intangible assets, and green competitive advantages in Taiwan, and it is imperative for SMEs to develop their environmental commitments and green intangible assets to strengthen their green competitive advantages.     

Competing for scarce talent in a liberalised environment: evidence from the aviation industry in Africa

Although the last few years have witnessed a burgeoning stream of research on interfirm mobility of employees, the extant research has remained relatively silent on both its dynamics and effects on the performance of firms domiciled in emerging economies. Using a qualitative case study approach, this article attempts to illuminate our understanding of both issues. It places particular emphasis on the examination of the dynamics of employees' interfirm mobility in the airline industry in Africa. The findings reveal the diverse ways in which the liberalisation in the industry has created a new competitive landscape with far-reaching consequences for firms. Essentially, firms now have to compete intensely for the scarce human capital. The theoretical and managerial implications of these findings are discussed.     

Crisis spillover of corporate environmental misconducts: The roles of perceived similarity,familiarity, and corporate environmental responsibility in determining the impact on oppositional behavioral intention

Negative impact of a firm's environmental misconduct can spread to other firms under the same category due to stakeholders' categorization. Such problem implies a sociocognitive process that has yet to be explored. Therefore, this study extends the current literature by exploring how interfirm similarity affects the spillover effects through stakeholders' engagement. We propose that interfirm similarity can be perceived by stakeholders as a categorization standard, which can lead to their opposition to other firms. Spillover of misconduct is caused by the decreasing stakeholders' trust, wherein the negative effect is contingent upon stakeholders' perceptions. A questionnaire study is conducted to investigate how people resist an innocent firm in China when a chemistry firm experienced an explosion accident. Our findings confirm that interfirm similarity increases stakeholders' opposition to the innocent firm by decreasing their trust. However, the negative effect is alleviated when the innocent firm is perceived as highly environmentally responsible. Our work contributes to the crisis spillover literature and carries important implications for the management of innocent firms that may lose from an industry peer's misconduct.     

Institutional investors' corporate site visits and aggressive financial reporting

This paper investigates the impact of institutional investors' corporate site visits on financial reporting aggressiveness. While prior research has shed light on the monitoring impact of institutional shareholding on firms' financial reporting practices, institutional investors' preference regarding financial reporting remains unclear. Using a sample of Chinese firms listed on the Shenzhen Stock Exchange from 2012 to 2019, we find that institutional investors' on-site visits significantly increase financial reporting aggressiveness of hosting firms. The on-site visit effect is more salient in firms that are more sensitive to the influence of institutional investors, for example, firms with a less powerful chief executive officer, financially constrained firms, and firms operating in competitive industries. Our study highlights that under a setting of weak minority shareholder protection such as in China, managers are likely to recognize revenue aggressively to please powerful shareholders who paid intensive attention to them.     

The nature,consequences, and management of emotions in interfirm paradoxical relationships—A conceptual framework

We develop a theory of emotions in interfirm paradoxical relationships with a focus on coopetition and emotional ambivalence. We suggest that appraisals of paradoxical coopetition situations lead to the arousal of multiple, oppositely valenced emotions of various intensities, combinations of which correspond to different states of emotional ambivalence. We explicate how emotional ambivalence, through managers’ appraisal and emotional contagion processes becomes collective and how it impacts coopetition performance. We further theorize how the negative effect of ambivalence on performance could be minimized and the positive effect could be amplified through emotional capability. Our theory provides a nuanced understanding of the complex nature of emotions, and how they arise, manifest, and impact outcomes in interfirm paradoxical relationships.     

The Inside Track: On the Important (But Neglected) Role of Customers in the Resource‐Based View of Strategy and Firm Growth*

abstract This paper argues for the important role of customers as a source of competitive advantage and firm growth, an issue which has been largely neglected in the resource‐based view of the firm. It conceptualizes Penrose's (1959 ) notion of an ‘inside track’ and illustrates how in‐depth knowledge about established customers combines with joint problem‐solving activities and the rapid assimilation of new and previously unexploited skills and resources. It is suggested that the inside track represents a distinct and perhaps underestimated way of generating rents and securing long‐term growth. This also implies that the sources of sustainable competitive advantage in important respects can be sought in idiosyncratic interfirm relationships rather than within the firm itself.     

Can interfirm trust improve firms' cooperation on environmental innovation? The moderating role of environmental hostility

Based on the logic of “trust‐behavior,” we examined the relationship between interfirm cognitive trust, emotional trust, and firms' cooperation on environmental innovation, as well as the moderating role of environmental hostility on the relationship between two dimensions of interfirm trust and cooperation on environmental innovation. Data for the study were collected from 216 firms in China. The results indicated that both interfirm cognitive trust and emotional trust were positively correlated to firms' cooperation on environmental innovation, and the effect of emotional trust on firms' cooperation on environmental innovation was negatively moderated by environmental hostility. Finally, the results were discussed and future directions put forward.     

Bank loan commitments and Material Adverse Change clause

As Ergungor (2001) indicated, some critical problems still exist in the valuation of bank loan commitments. One of them is the Material Adverse Change (“MAC”) clause as a contractual discretion that may be exercised by banks. We explain how the MAC clause can affect the value of bank loan commitments in the competitive loan market.     

DO INSTITUTIONS AFFECT CITIZENS' SELECTION INTO POLITICS?

Political economy has primarily paid attention to the principal‐agent relationship between citizens and politicians and the role of competition and institutions in disciplining political agents. However, as the electoral control of politicians and the credibility of policy commitments are limited, this perspective needs to be complemented with an economics of political selection that takes into account the heterogeneity in the quality of those elected to political office. We review the emerging literature, which investigates the institutional determinants of political selection. We discuss pay in politics, parties, their candidate selection procedures and electoral rules, institutions enhancing transparency in politics, and institutions which govern dual office holding in different branches of government. We argue that further comparative analyses are essential in order to gain an improved understanding of the impact that institutions have on political outcomes, not only via the channel of accountability, but also via the channel of selection.     

NOTES ON CONTRIBUTORS

Abstract

Within public administration and policy sciences the concept of policy networks nowadays is well accepted. Not much attention has been paid so far to strategies aimed at institutional design. Therefore, in this article, we develop a conceptual framework to study institutional design more thoroughly. We do this by specifying the nature and variety of institutional rules that guide the behaviour of actors within networks. Given this categorization of rules, we identify possible strategies to change network rules. Next, we focus on the strategic context of attempts to influence the nature of institutional rules: the process of institutional design. We conclude with suggestions to apply the conceptual framework to empirical research into the forms, impacts and implications of attempts to change the institutional features of policy networks.     

民营企业跨国并购战略的制度创业过程研究

本研究采用案例研究方法,通过对中国林德集团收购德国帕西姆机场过程的分析,探索了新兴市场企业在成熟市场跨国并购过程中通过制度创业实现资源整合从而创造竞争优势的过程。本研究从制度视角探索了跨国并购的制度创业动因、机制和资源整合路径。突破了以往基于成熟市场的交易成本理论和组织学习理论通过股东收益和组织学习能力获取的传统跨国并购理论认识范式。研究发现,制度环境会影响组织通过制度创业建构合法性从而获得竞争优势资源;企业决策者的创业意愿和能力会影响企业制度创业成果;决策者意愿和能力与制度环境的互动机制影响制度创业效率;企业场域位势的嵌入程度较低以及处于业务和制度边界交界地带的企业,会实施制度创业改变企业的场域位势;企业通过制度创业跨越制度障碍形成的合法性成为企业新的竞争优势资源。     

What drives firms' commitment to fighting corruption? Evidence from the UK

The recent leak of the FinCEN files has highlighted the widespread presence of corruption in developing and developed economies, including the UK. Accordingly, this study aims to investigate the factors that drive companies to implement measures for preventing corruption in developed countries using FTSE 350 nonfinancial firms. Specifically, the research examines the influence of corporate social responsibility (CSR) commitments, board structure, and shareholding structure on adopting strategies, policies, and procedures aimed at countering corruption. Drawing upon agency, stakeholder, and legitimacy theories, our empirical evidence supports that CSR commitments and board independence positively influence firms' engagement in anticorruption measures. Conversely, institutional and managerial shareholdings are found to have a negative association with firms' efforts to combat corruption. In addition, the study shows that the effect of board characteristics became more pronounced following the enactment of the UK Bribery Act 2010, indicating risk-averse behavior. Various models, including cross-sectional and two-stage least squares (2SLS), are employed to analyze the data. Our findings have significant implications for understanding the complex relationship between CSR, corporate governance, and the ethical infrastructure of organizations. Ultimately, our results provide valuable insights for policymakers, companies, and other stakeholders in developing effective strategies, policies, and procedures to combat corruption activities.     

The impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcome

This research examines the influence of government financial support on new firms' performance. Extant empirical research on the topic has found mixed results, which warrants an exploration of the theoretical basis for the impact of support policies on new firms' performance. Grounding the theoretical model in the resource-based view and institutional theories, this study contends that performance outcomes – e.g. revenues or profits – should not be the first outcomes of public policies to be examined. Instead, competitive advantage formation is suggested as a link between support policies and new firms' performance. Using new firms from the USA, we examine the impact of government financial support measures – government loans, guarantees and government equity – on firms' overall competitive advantage and more specific types of competitive advantage based on innovation, licensing-in, marketing and human capital. Controlling for family funding, bank financing, equity of business angels and venture capitalists, industry, size as well as entrepreneur's characteristics, the results reveal that government guarantees and government equity have a direct effect on new firms' competitive advantage and only an indirect impact on performance. Our results suggest to policy-makers to focus on helping new firms build the necessary capabilities to compete successfully in the marketplace.     

Climate cooperation from Kyoto to Paris: What can be learnt from the CDM experience?

The mitigation of greenhouse gas concentration has become a first-order issue for decision making in environmental sustainability. Countries can meet their mitigation commitments and environmental objectives through multiple instruments. A key role is played by cooperative mechanisms, such as the Clean Development Mechanism (CDM), under the Kyoto Protocol, and a similar mechanism established by the Paris Agreement (Art. 6), whose implementation rules are still under negotiation. However, another form of cooperation was already established under the different framework of the Official Development Assistance (ODA), potentially sharing abatement purposes. This paper aims to compare the mitigation actions implemented either as CDM or ODA projects. We conduct a multi-criteria econometric analysis, based on an originally created, harmonised dataset that merges renewable energy CDM projects and comparable ODA projects to investigate the role of the institutional framework in influencing the effectiveness of reducing emissions worldwide. Results show that the Kyoto Protocol had a positive impact in terms of cost-effectiveness for renewable energy projects and that it stimulated policy actions for environmental sustainability. Accordingly, in view of the implementation of Article 6 of the Paris Agreement, it is extremely important both to look to the past to draw lessons from Kyoto's successes and failures and to apply multi-criteria decision-making approaches for the design of environmental policies.     

MNC practice transfer: institutional theory,strategic opportunities and subsidiary HR configuration

Human resource (HR) practice transfer is an important topic in the domain of strategic international human resource management (SIHRM). Previous research in practice transfer has emphasized the challenges arising from the institutional distance between the home and host countries. However, potential opportunities due to this distance have been largely overlooked. Shifting the focus away from looking at institutional distance as a constraint, we examine the possibilities of strategic opportunities that exist because of institutional distance. We argue multinational corporation (MNC) subsidiaries can exploit these opportunities to gain competitive advantage. Building upon SIHRM literature, institutional theory and the resource-based views, we propose a conceptual framework explaining how institutional environments present strategic opportunities. We argue that these strategic opportunities are most abundant in the case of moderate institutional distance between the two countries. Building upon the conceptualization of strategic opportunities, we propose a model of subsidiary HR configuration, and then we explain how an HR configuration could be a source of competitive advantage. Further, we examine the role of MNCs' overall SIHRM orientation in relation to the identification and exploitation of strategic opportunities.     

JOB EVALUATION AS INSTITUTIONAL MYTH

This article argues that the real function of job evaluation technique lies not in the rational claims upheld in the managerialist literature but rather in the more diffuse area of meaning management. the argument is based on an intensive case-survey analysis of the introduction of a formal job evaluation plan to one of Canada's ten provincial governments. From the complementary perspectives of social construction theory and institutional theory, job evaluation is ultimately defined as a rationalized institutional myth. First of all, job evaluation is rationalized because it takes the form of rules, specifying the procedures necessary to accomplish the end goal of determining an internally equitable and externally competitive pay structure. Job evaluation is institutional because actions are repeated and given similar meanings by the custodians of the system and those who fall under its administration. the set of meanings which evolves from job evaluation is expressed in a belief (ideology), an activity (norms and rituals), language and other symbolic forms through which the members of an organization both create and sustain views and images about the value of one job over another. Job evaluation is a myth because it is a process based on widely held beliefs that cannot be tested objectively. Despite a number of unexamined assumptions, the technique is accepted as ‘true’because it is believed.     

Vertical quasi-integration revisited: The role of power

Vertical quasi-integration is differentiated from other forms of interfirm organization and the issue of power is examined drawing from the theoretical and empirical literature on interorganizational relations. The firm's power is described in terms of its dimensions and the various types of power which may be manifested under conditions of vertical quasi-integration are discussed. The nature of the link between power and dependence is considered and a number of influences are identified which may inhibit the effectiveness of power attempts in interfirm relationships.     

Reviewing interfirm relationship quality from a supply chain management perspective

With the overlap of the interfirm relationship quality and supply chain management research in mind, this paper reviewed 100 recent, scientific, English-language papers on interfirm relationship quality based on a categorisation schema derived from a conceptual framework of supply chain management. We aim to contribute to the existing supply chain management literature by providing an insight into the connections of supply chain performance with buyer–supplier relationship quality from the relationship quality scholars’ perspective. Through content analysis, frequency and contingency analysis, we evaluated how the three relationship quality dimensions—information, operational, and relational dimensions—and the three types of supply chain performance—financial and market, operational, and relational performance have been reflected in the current interfirm relationship quality papers and how the scholars have tended to link them to each other. The results reveal that relational dimension plays a key role in SC relationship management and influences performance significantly. Information dimension will affect performance indirectly through relational dimension. However, the impact of the operational dimension on performance varies. In addition, buyers’ and suppliers’ perspectives on the relational drivers of their financial performance may differ. Based on the findings, we suggest promising avenues for future investigation of supply chain relationship and performance.

     

Corporate Entrepreneurship Activities through Strategic Alliances: A Resource‐Based Approach toward Competitive Advantage*

abstract Corporate entrepreneurship (CE) activities may significantly benefit from interfirm strategic alliances, although such benefits have not been sufficiently examined in the literature. In this paper, a resource‐based framework is presented to examine how strategic alliances offer entrepreneurial firms needed resources that may not otherwise be available. We argue that CE activities are likely to lead to resource gaps. We compare various options to fill resource gaps, and identify the pros and cons of the alliance approach. We then discuss the resource conditions that provide competitive advantage for a firm, if alliances are properly used to help implement CE. Finally, we examine how different types of alliance (e.g. joint ventures, R&D alliances, and learning alliances) facilitate various CE activities, including innovation, corporate venturing, and strategic renewal.