Corporate accelerators: Building bridges between corporations and startups

Today's startups are a major source of innovation, as they employ emerging technologies to invent products and reinvent business models. Corporations that embrace an open innovation strategy increasingly look to startups as a source of external innovation. Corporate accelerators offer a potent approach to nurturing innovations from entrepreneurial ventures. However, the vast differences between corporations and startups make collaboration a challenge. Corporate accelerators need to be designed effectively to add value for startups and create innovation benefits for the company. Based on information obtained during interviews with managers and participants of corporate accelerators (n=40), managers receive a framework and strategies for designing corporate accelerators. To leverage startups’ innovation and to make corporate accelerators an effective part of a firm's overall innovation strategy, managers need to systematically and thoughtfully consider the design dimensions of proposition, process, people, and place.     

Every story tells a picture: Lessons from cartoons on corporate governance

While pictures tell stories, in the case of cartoons, stories also tell pictures. A theory of cartooning suggests that cartoons reflect public sentiment toward issues. As such, cartoons are a useful way of gauging and tracking public sentiment over time. This article uses a historical cartoon analysis to track public sentiment toward issues surrounding corporate governance. Specifically, it compares what cartoons reflected prior to the economic crash of 2008 and what they portrayed after. The criteria of narrative, location, binary struggle, and normative transfer were used as a framework to analyze 258 cartoons. We found that three major changes emerged after the 2008 crash that hold important lessons for those who govern corporations: the public's concern is no longer so much about corporate and individual fraudulent behavior as it is about corporate and individual greed; there is an impression that corporations do not do bad things so much as they do not do any good things; and ordinary people, workers, and taxpayers are those who suffer most when corporations are not governed well.     

Online communication of Corporate Environmental Citizenship: A study of New Zealand's electricity and gas retailers

This paper presents a study of how companies in New Zealand's electricity and gas retail sector communicate their Corporate Environmental Citizenship (CEC) on the World Wide Web. The natural environment is the focal issue for analyzing the way these companies present their commitment to the community and society in general, for two reasons. First, concern for and management of the natural environment is one of the most important social issues facing corporations. Second, prior empirical studies of corporate communication of social responsibility initiatives have investigated the extent and content of these messages without focusing on a particular issue. A content analysis of the web pages of 18 companies in an environmentally sensitive industry was chosen to investigate which environmental issues and stakeholder groups are given priority and how companies' attitudes to stakeholders and relationships with them are described. The results demonstrate an instrumental reformist moral position underlying their online communications. This philosophy was present in the environmental issues most frequently mentioned and in the principles motivating their Corporate Environmental Citizenship activities. While the majority of companies presented their environmental initiatives on their web sites, most did not employ interactive features to encourage dialogue with stakeholders and enhance these relationships.     

Innovation and efficiency: It is possible to have it all

A firm that simultaneously engages in a high degree of both innovation and efficiency follows an approach that is often referred to as an ambidextrous strategy. Surprisingly, relatively few firms are able to balance these two emphases. Internal battles for resources often tip the scales in favor of efficiency over innovation, or vice versa. Management gurus frequently warn that simultaneously pursuing both can set the firm up for mediocre performance, yet the turbulent nature of today’s markets and cut-throat competition create a renewed need for firms to reconsider this dual approach for longer-term success. Unfortunately, practical insights from empirical studies regarding performance benefits and implementation issues are still scant. Perhaps this is one reason why few firms are successful in both efficiency and innovation. In this article, we provide evidence—using a cross-industry survey of senior marketing managers in publicly-traded U.S. firms—that firms which successfully employ an ambidextrous strategy outperform those which overemphasize either efficiency or innovation. Furthermore, we highlight marketing’s role as an example of the often overlooked need for successful functional implementation. Finally, we provide useful methods for managers to answer three key questions: (1) Is my firm ambidextrous?; (2) Should my firm be ambidextrous?; and, if so (3) How can my firm become ambidextrous?     

Corporate social responsibility and employee volunteerism: What do the best companies do?

Employee volunteerism as a practice of corporate social responsibility aids corporations by strengthening employee satisfaction and retention internally and by strengthening corporate reputations and connections with stakeholders externally. Of particular interest are the specific practices and procedures used by companies to encourage and support volunteer activities of their employees. We reviewed publicly available documents of Fortune's 100 Best Companies to Work For ranking to gain insight into how these best companies practice employee volunteerism and whether they link employee volunteerism to their corporate social responsibility strategy. We propose a connection of the position and importance of employee volunteerism in the corporate practices of social responsibility. Our findings suggest that many highly regarded companies specifically link employee volunteerism to their corporate social responsibility strategy. These companies also utilize similar practices to encourage and support employee volunteerism. We highlight the practices that managers could consider to support their corporate social responsibility efforts and offer several suggestions for future consideration.     

B2B branding: A financial burden for shareholders?

Is branding an effective tool for generating shareholder wealth for companies that are active in a business-to-business environment? Or, do other factors such as innovation and manufacturing efficiency—or the lack thereof—create or destroy shareholder wealth? Based on an examination of almost 1,700 companies listed either on the United States or European stock exchanges, this study reveals this crucial relationship could be described as a W-shaped curve with five distinctive phases, depending on the strategic branding position of the company. Used strategically, business-to-business (B2B) companies with a balanced corporate brand strategy generally yield a return to their shareholders that is 5%-7% higher. It is therefore vital that key executives, including the board of directors, systematically assess and monitor the strategic branding position of their company and how their branding investments are performing against key competitors. This study reveals that shareholders should insist on systematic performance feedback from the corporation regarding all key items in the balance sheet—including branding. As disclosed herein, very few of the companies analyzed possessed an optimal balance between branding and financial performance.     

Corporate Relations with Environmental Organizations Represented by Hyperlinks on the <Emphasis Type="Italic">Fortune</Emphasis> Global 500 Companies’ Websites

This study investigates corporate relationships with environmental organizations by examining hyperlinks in the corporate environmental responsibility (CER) sections of the Fortune 2008 Global 500 corporate websites. It is assumed that hyperlinked organizations either represent their current inter-organizational relationship or create symbolic relationships among organizations. Results show that Asian companies have fewer hyperlink relations with other organizations compared with those in North America and Western Europe. Network analysis also confirms that U.S. companies are explicitly connected with stakeholders for CER practices, and governmental organizations have a relatively central role in the global CER system. Nonprofit organizations are the most frequently hyperlinked with Fortune Global 500 corporations.     

Worried about strategy implementation? Don’t overlook marketing's role

Many executives and scholars have argued that effective strategy implementation is at least as important as—if not more important than—developing a brilliant strategy. While there are several extant viewpoints regarding what is required for successful strategy implementation, perhaps the most influential perspective is that business success requires a fit between strategy and organizational architecture. Organizational architecture subsumes structural variables and capabilities. For the past 10 years, we have studied the performance implications of matching marketing's organizational architecture to four generic business strategies: Prospectors, Analyzers, Low-Cost Defenders, and Differentiated Defenders. Through six empirical studies we have identified best practice matches between these strategy types and: (1) marketing organization culture, (2) marketing strategy, (3) market strategy formation process, (4) market-focused strategic organizational behaviors, (5) marketing organization structure, and (6) marketing control systems. In this article, we bring together findings from each of these studies to provide a comprehensive overview of those marketing actions and policies that are associated with superior firm performance.     

Investigating the direct and indirect effects of corporate hypocrisy and perceived corporate reputation on consumers’ attitudes toward the company

Consumers are placing increasing importance on the social responsibility of firms when making purchase decisions. Nonetheless, corporate irresponsibility has become more prevalent in the corporate world. Through corporate social responsibility (CSR), companies can showcase their virtues and appear as good citizens while ignoring many internal standards. Hence, the primary purpose of this study was to explore the impact of corporate hypocrisy on CSR belief, corporate reputation, and consumers’ attitudes toward a company that may have a bad reputation. Second, we investigated the mediating effect of CSR belief and perceived corporate reputation on the relationships between corporate hypocrisy and consumers’ attitudes toward the company. We asked a sample of respondents in Australia (n =518) to respond to a real CSR campaign launched by a beer company. The results showed that CSR belief mediates the relationship between corporate hypocrisy and consumers’ attitudes toward the company. The results indicated a perception that companies may use CSR to try to shift the blame from producers to users. The results of this study provide guidelines for managers, social marketers, and public policy makers on how to create and evaluate companies’ CSR campaigns. The results of this study contribute to the debate on how consumers respond to various CSR campaigns as well as the intended or unintended consequences of CSR in directing consumers’ attention away from the negative impacts businesses have on society.     

Corporate communication,sustainability, and social media: It's not easy (really) being green

This empirical research explores how 16 global corporations from four different industry sectors—retail, technology equipment, food/beverage/tobacco, and consumer goods—use social media platforms and corporate social responsibility (CSR) reports to communicate about sustainability. Facebook, Twitter, CEO letters from annual reports and CSR/sustainability reports, and other company documentation are examined to compare the content and scope of these firms’ corporate communication. The sample is divided into two subsamples (Green and Not Green firms) using Newsweek's Greenest Company 2012 rankings, and compared for differential use of social media and corporate reports. Results show that communication varies across firm and industry regarding types of sustainability initiatives reported, metrics employed, and communication media utilized, and that Green firms are more active than Not Green firms both in addressing sustainability and in general social media activity. Implications are discussed herein and recommendations are presented for companies seeking to better understand the effective use of social media and sustainability communication.     

The double bottom line: Profit and social benefit

There is an important shift in business focus in the United States that is empowering companies to not only declare their intent to be ethical firms which do good while making a profit, but also to submit proof of that commitment for annual review by outside evaluators. A new business model is providing structure for non-profits that wish to grow, for for-profits that wish to be socially responsible, and for individuals who wish to invest in companies with a commitment to corporate social responsibility and sustainability. B Lab has taken the lead in providing the models necessary for this shift to a focus on the double bottom line: profit and social benefit. It has created the legal documents for state legislatures to use to pass a new corporate structure called the ‘benefit corporation.’ In the 3 years of its existence, legislatures in 19 states and the District of Columbia have ratified the new corporate structure. Likewise, B Lab offers a performance assessment program to become a Certified B Corporation, independent of legal corporate status, which also serves as an evaluation program for benefit corporations. Additionally, it has created a ratings agency and analytics platform, the Global Impact Investing Rating System (GIIRS), to help institutional investors evaluate the impact of companies’ corporate social responsibility initiatives. This article discusses the requirements and benefits of the new models and addresses the issues that have been raised about them. It also identifies companies that are incorporating the benefit corporation structure and are becoming Certified B Corporations.     

麦当劳:"营"在文化,"赢"在本土化

本文认为,良好的企业文化及成功的本土化策略会给企业带来丰厚的收益。文章指出,麦当劳取得成功的关键就在于其善于经营企业文化并实施了一系列成功的本土化战略。它在进行管理尤其是人力资源管理时,重视培训,利用文化因素实现人与文化的融合,使企业文化成为员工、公司与社会之间的纽带。在将自己的品牌推向其他国家市场的时候,能够根据所在国的民族特点,促进产品标准化与本土化融合,通过促销、价格和服务的本土化,给自己的品牌注入新的创意,迎合所在国国情,立足文化,行动本土化。     

Rethinking the new corporate philanthropy

More than ever, corporations are expected to practice “citizenship” by engaging in various community or social philanthropy programs. These corporate social responsibility (CSR) programs have broad appeal among business scholars, business executives, and the public. After first setting some theoretical boundaries for CSR as it relates to the legal and strategic management fields, the authors examine how CSR (both its implementation and expectations) can lead to unintended results, compromising the distinct roles business and government play in market-driven, democratic systems.     

Overcoming corporate rigidities in the dynamic Chinese market

Companies often bring in what they believed and utilized in the past when they invest in the dynamic market of China, where changing environmental conditions often render existing beliefs and practices irrelevant. Over-generalizing from past situations could become a source of corporate rigidity, which results in a company's inability to anticipate the rapid changes that require evolution in its established systems, products, and market orientation. Companies must overcome corporate rigidities if they are to respond to the huge opportunities in China in a timely manner. In our research, we identified four distinct corporate rigidities—mindset rigidity, strategic rigidity, operational rigidity, and HRM rigidity—to help managers identify and assess the impact of rigidity on their China businesses. We provide four practical strategies for overcoming the four types of corporate rigidities.     

Financial Markets: A Tool for Social Responsibility?

Objectives of socially responsible investment (SRI) are discussed with reference to the two main mechanisms of the SRI ‘movement’: shareholder advocacy and managed investments. We argue that in their current forms, both mechanisms lack the power to create significant corporate change. Shareholder advocacy has been largely unsuccessful to date. Even if resolutions were successful, shareholder advocacy may still be ineffective if underlying economic opportunities remain. Marketing material and investment prospectuses issued by socially responsible mutual funds (SRI funds) commonly contain the claim that, by affecting corporations' access to capital funding, SRI funds can change corporate practices. This paper makes a contribution by presenting the market share of SRI funds in the regions where they are most developed, being Europe, the U.S. and Australia, to show that this claim is unlikely to eventuate. SRI funds also commonly claim that they will outperform conventional active mutual funds. That the economic performances of both are similar might be explained by their similar portfolio compositions. The paper makes an innovation in the SRI literature by adopting a legitimacy framework to explain the continued presence of SRI funds. To achieve desired social and environmental outcomes, SRI funds are urged to address issues at a more systemic level. A suggested mechanism is the collective lobbying of corporations and, especially, governments.     

How should a company respond to a product harm crisis? The role of corporate reputation and consumer-based cues

Product harm crises such as Vioxx and Firestone can be devastating events for companies. Although lawsuits by victims tend to draw most of the attention, observers, who typically learn of product harm crises through media outlets, can also cause extensive damage to the companies involved, as they represent current and potential customers of the product.This article provides guidance to practitioners in choosing the appropriate strategy to effectively deal with a product harm crisis. The authors recommend that corporate reputation and consumer-based cues, such as gender and nationality, be incorporated in the decision-making process regarding the choice of a corporate response.     

Good directors and bad behavior

Because financial frauds are not uncommon, and CEOs and/or CFOs are most often directly involved in them, directors of public corporations should be constantly concerned with monitoring their officers’ legal and ethical behavior. This is the case for three primary reasons. First, due to a variety of organizational pressures and decision making missteps, even people who wish to be ‘good’—as most corporate officers presumably do—often make serious ethical mistakes. Second, top corporate officers are particularly susceptible to making several of these errors. And third, for various psychological reasons, corporate directors often find it difficult to adequately police those officers. This installment of Business Law & Ethics Corner explores the issue of good directors and bad behavior.     

U.S. corporations are from Mars,Chinese corporations are from Venus

Relations between U.S. and Chinese corporations are increasingly strained. In this article, we examine how differences in the key domains of corporate governance, underlying corporate philosophy, innovation, and dispute resolution contribute to this strained relationship. We illustrate these differences by examining the relations between Skyworks Solutions (U.S.) and ZTE (China). We discuss the three broad strategies available to U.S. managers in engaging with Chinese corporations, depending on the extent of their involvement and comfort with discord: (1) playing ball, (2) straddling the middle ground, and (3) decoupling.