Boundary-crossing and the localization of capabilities in a Japanese multinational firm

We conducted a case study to explore the challenges encountered by a foreign subsidiary of a Japanese multinational firm when localizing its organizational capabilities in China. Drawing on the concepts of boundaries and boundary-crossing, we identify pragmatic and cultural knowledge boundaries, which denied opportunities for the host-country employees to contribute their local expertise to augment the firm's core capabilities within the domains of research and development and operational protocols. However, within those domains that were regarded as complementary to or peripheral to the firm's core capabilities, host-country employees were granted more scope to cross the associated pragmatic boundaries.     

Employee Participation in Cause-Related Marketing Strategies: A Study of Management Perceptions from British Consumer Service Industries

The purpose of cause-related marketing (CRM) is to publicise and capitalise on a firm??s corporate social performance (CSP) by enhancing its legitimacy in the eyes of its stakeholders. This study focuses on the firm??s internal stakeholders ?C i.e. its employees ?C and the extent of their involvement in the selection of social campaigns. Whilst the difficulties of managing a firm that has lost or damaged its legitimacy in the eyes of its employees are well known, little is understood about the extent to which managers and their social partners listen to and involve their employees in the legitimation process. Through telephone interviews with non-profit organisations and senior managers of service sector firms, the extent of employee involvement in CRM campaigns and the perceived benefits of doing so are investigated.?Amongst other things, we find that (i) the extent of employee participation varies significantly across firms; (ii) larger CRM campaigns tend to be managed centrally with relatively less employee participation than smaller ones and (iii) financial services firms are more likely to make CRM decisions centrally, with relatively less employee participation than retail services firms.     

Road safety perspectives among employees of a multinational corporation in urban India: local context for global injury prevention

In rapidly developing economies, like urban India, where road traffic injury rates are among the world's highest, the corporate workplace offers a non-traditional venue for road safety interventions. In partnership with a major multinational corporation (MNC) with a large Indian workforce, this study aimed to elicit local employee perspectives on road safety to inform a global corporate health platform. The safety attitudes and behaviours of 75 employees were collected through self-report survey and focus groups in the MNC offices in Bangalore and Pune. Analysis of these data uncovered incongruity between employee knowledge of safety strategies and their enacted safety behaviours and identified local preference for interventions and policy-level actions. The methods modelled by this study offer a straightforward approach for eliciting employee perspective for local road safety interventions that fit within a global strategy to improve employee health. Study findings suggest that MNCs can employ a range of strategies to improve the road traffic safety of their employees in settings like urban India including: implementing corporate traffic safety policy, making local infrastructure changes to improve road and traffic conditions, advocating for road safety with government partners and providing employees with education and access to safety equipment and safe transportation options.     

Ambidexterity in MNC knowledge sourcing in emerging economies: A microfoundational perspective

Innovation performance of multinational corporations (MNCs) derives from access to and utilization of a combination of explorative and exploitative knowledge across heterogeneous settings. These settings increasingly encompass flagship industries in emerging economies. There is limited research, however, that scrutinizes the processes of knowledge sourcing within such dynamic host environments, taking into account MNCs’ differing location capabilities. We draw on the concept of ambidexterity – the combination of exploration and exploitation – and the microfoundations approach to study eleven MNCs in the Bulgarian software development industry by focusing on their local R&D projects. We extend the explanatory capacity of ambidexterity at the micro level and clarify the relationship between exploration and exploitation by identifying four types of ambidexterity: global knowledge differentiator, global-local knowledge integrator, emerging local-global integrator, and local knowledge integrator. Our typology is underpinned by three specific dimensions of R&D capabilities: technical know-how, scope of expertise, and market potential.     

Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth

While established firms can efficiently manage their resource portfolio, new ventures must construct resource boundaries by assembling resources. In doing so, new ventures are often pushed to utilize resources that are owned by other actors. These inter-organizational relationship strategies do not expand organizational boundaries, but rather create permeable boundaries. We theorize that boundary permeability confers greater access to resources, but limits control over them. Therefore, new ventures face a risky option: utilize fewer but fully controlled resources or access a broader range of resources under limited control. We examine the effects of R&D boundary permeability across growth dimensions of sales, profitability, and employees using a sample of young knowledge intensive ventures. In doing so, we explore early stage boundary management decisions and reveal opportunities and threats to opening venture boundaries.     

Putting market-facing technology to work: Organizational drivers of CRM performance

A large proportion of firms that adopt customer relationship management (CRM) technology find it challenging to integrate CRM technology into their core marketing processes and utilize CRM strategically to appreciably improve their performance. The authors conceptualize a model to understand the drivers of superior CRM performance after CRM technology has been adopted by a firm and examine strategic utilization of CRM technology as driven by user acceptance and proficiency in the form of employee buy-in and expertise. Top management championship practices, employee information technology (IT) skills, and CRM knowledge are identified and examined as key building blocks toward strategic utilization. The empirical test of the conceptual model is based on a mail survey of North American firms that have adopted information technology-based CRM systems. The results, based on random effects model, show that strategic utilization of CRM technology leads to higher performance when there is an emphasis on using it to manage business-to-business rather than business-to-consumer relationships, user expertise (but not buy-in) impacts CRM performance through strategic utilization, and top management championship practices, CRM knowledge, and employee IT skills impact strategic utilization through buy-in and expertise.     

Small firm innovation performance and employee involvement

It is known that small firms rely mainly on the CEO’s individual knowledge for developing innovations. Recent work suggests that this approach is inefficient since it underutilizes other employees’ knowledge. We study to which extent using CEOs, managers and non-managerial employees’ ideas enhances small firms’ innovation performance. A Heckman selection model on 305 small firms shows that not only CEO’s and managers’, but also non-managerial employees’ ideas contribute to innovation performance. However, contributions depend heavily on the individuals’ area of expertise and on whether product or process innovation is desired. Our findings enrich the current view on the entrepreneurial team, but also warn against the implementation of one-size-fits-all employee involvement programs in small firms.     

Knowledge sharing and subsidiary R&D mandate development: A matter of dual embeddedness

Sharing knowledge across borders has proven to be especially relevant to multinational corporations (MNCs). Foreign subsidiaries have become active players in these knowledge flows. However, the network effects of interacting with multiple agents on the evolution of the R&D role played by subsidiaries are still undeveloped. The present study focuses on changes in subsidiary capabilities and on the dynamic mechanisms by which their R&D role might evolve, especially, as a consequence of their interaction with a variety of knowledge networks. We examine this issue by conducting four longitudinal case studies of subsidiaries operating in Spain. Using an inductive approach to theory building, we develop a general theoretical framework considering the subsidiary's embeddedness in the knowledge networks within the MNC (internal) and within the host country (external). We find that evolving towards a competence-creating mandate is characterised by the simultaneous growth of embeddedness in both internal and external networks; otherwise, a subsidiary may gravitate away from upgrading its R&D role. Thus, the contribution of this paper is to present a dynamic model that sheds light on how internal and external knowledge embeddedness interact in generating outcomes for subsidiary R&D roles.     

The Role of Social Mechanisms in Demand and Supply Integration: An Individual Network Perspective

In many industries, including retail, increased complexity of marketing strategies needs to be met with increased efficiency in product delivery, requiring integration across demand and supply facing functions of the firm. For frontline logistics employees (FLEs) of manufacturing firms who are delivering and marketing products in retail stores daily, the ability to understand both the marketing and supply implications of their actions is essential. Despite the importance of cross‐functional integration at the retail frontline, little logistics research has explored how logistics frontline employees interact with managers and each other to integrate knowledge and information. The purpose of this research is to examine the antecedents to cross‐functional integration across demand and supply functions in multiple social networks of the FLE. Mixed methods, including social network analysis, structural equation modeling, and analysis of variance, are applied to test social capital theory hypotheses regarding the impact of relational embeddedness and social mechanisms, socialization and shared interpretation, on individual demand and supply integration across friendship, key enabler, and ideation networks of the frontline employee.     

How On‐the‐Job Embeddedness Influences New Venture Creation and Growth

This study aims to answer why some employees choose to start their own ventures, whereas others choose to seek jobs in other organizations after leaving their current employment. Drawing insights from knowledge‐based view and social capital theory, we examine the impact of on‐the‐job embeddedness on the decision of employee entrepreneurship, industry choice, and new venture growth. We argue that on‐the‐job embeddedness provides key resources for employees to start new ventures and grow them. We test our hypotheses with Panel Study of Entrepreneurial Dynamics (PSED) data. Our results show that on‐the‐job embeddedness increases the probability of employees becoming entrepreneurs. Once they decide to become entrepreneurs, those employees with high on‐the‐job embeddedness are more likely to start new ventures in the industry in which they worked before. Moreover, employees' on‐the‐job embeddedness has a positive impact on new venture growth.     

The Impact of Distance (External) and Organizational Factors (Internal) on the Knowledge Chain of Multinational Corporations: South Africa as a Host Country

The geographic dispersion of multinational corporations (MNCs) implies that while it gives them access to new and different knowledge from diverse localities, it also adds to the costs and complexities of managing that knowledge and its effective dispersal across geographies. The purpose of this article is to examine how knowledge is transferred within MNCs and provide a framework for this process, particularly focusing on the role that distance (external) and organizational (internal) factors plays therein. A qualitative study is utilized, focusing on two technology companies from different cultural home countries and the technology transfer process with their South African subsidiaries. We find that the standardization of knowledge impacts the creation and diffusion of knowledge; expatriates impact on the creation, diffusion, and adoption; and, finally, relevance and localization impact on the adoption and utilization of knowledge. We present a conceptual framework around trust and rationalization as regards transferring knowledge within MNCs and find some evidence of the impact of distance, particularly cultural, on the methods employed in this transfer. The article illustrates the practical ways in which MNCs organize their internal resources and overcome various dimensions of distance in ensuring knowledge transfers. By choosing companies from such divergent home countries (one industrialized and one newly industrialized, with very different cultural settings) and examining their knowledge transfers with their South African subsidiaries, we are able to unpack various dimensions of distance and how organizational mechanisms affect this process. © 2017 Wiley Periodicals, Inc.     

The impact of internationalization degree on cash levels: Evidence from Latin America

Although cash management has been extensively studied, the cash policies of multinational corporations (MNCs) outside of the U.S. market have been underexplored. We fill this gap in the literature by comparing the cash policies of MNCs to those of non-MNCs in a Latin American setting (Argentina, Brazil, Chile, Colombia, Mexico and Peru). Using different proxies for multinationality, we find evidence that the cash holdings of multilatinas are significantly higher than those of their domestic counterparts. Overall, given that foreign markets may offer the best investment opportunities for many MNCs, our results are consistent with the argument that multilatinas maintain higher cash levels to take advantage of the greater growth opportunities abroad. We contribute to the literature on cash management and international business by expanding knowledge regarding the efforts of MNCs in emerging markets. Our results hold following a series of robustness checks and endogeneity concerns.     

The Long-Term Sustenance of Sustainability Practices in MNCs: A Dynamic Capabilities Perspective of the Role of R&D and Internationalization

What allows MNCs to maintain their sustainability practices over the long-term? This is an important but under-examined question. To address this question, we investigate both the development and sustenance of sustainability practices. We use the dynamic capabilities perspective, rooted in resource-based view literature, as the theoretical basis. We argue that MNCs that simultaneously pursue both higher R&D intensity and higher internationalization are more capable of developing and maintaining sustainability practices. We test our hypotheses using longitudinal panel data from 1989 to 2009. Results suggest that MNCs that have a combination of both high R&D intensity and high internationalization are (i) likely to develop more sustainability practices and (ii) are likely to maintain more of those practices over a long-term. As a corollary, MNCs that have a combination of both low R&D and low internationalization usually (i) end up developing little or no sustainability practices and (ii) find it difficult to sustain whatever little sustainability practices they might have developed.     

The entrepreneur identity assimilation process: It's not all work and no play

We develop a comprehensive entrepreneur identity assimilation process model by drawing on in-depth interviews with 30 employees who completed the process and 12 employees who initiated but did not complete it. Extending identity process and identity-play theories, we uncover the mechanisms of daydream-play and substantive play undertaken in phases of broad, focused and specific exploration leading to identity assimilation. Extending prior knowledge of possible selves, we also find that the dynamic pairing of undesirable employee possible self and aspirational entrepreneur possible self builds commitment to entrepreneur identity assimilation over time. Implications for theory and practice are discussed.     

The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms.     

Employee emotional resilience during post-merger integration across national boundaries: Rewards and the mediating role of fairness norms

This article presents a conceptual framework to advance the understanding of the process and pitfalls of post-merger integration (PMI) across national boundaries. We argue that successful PMI is contingent on employee emotional resilience, which, in turn, depends on the efficacy of reward systems and of the underlying equity. The paper documents the key role played by financial and non-financial rewards, and of reciprocal behaviors conditioned by fairness norms, on employee emotional resilience during PMI, and the impact on them of contextual dynamics. We draw out the implications for theory and practice, again taking into special account of mergers across national boundaries, and those involving multinational enterprises (MNEs).     

Formal Development Opportunities and Withdrawal Behaviors by Employees in Small and Medium‐Sized Enterprises

This study explores direct and indirect relationships between involvement in formal training and development events, employee attitudes and withdrawal responses including turnover intentions and neglectful behavior for those employed in small and medium‐sized enterprises (SMEs). Questionnaire data were obtained from 185 staff employed in a diverse range of SMEs. Our results suggest that employees that participate in more training and development events are less likely to be considering leaving their employer and less likely to engage in neglectful behavior. However, the analysis revealed that the effects of participation in formal training and development are fully mediated by perceptions of organizational support and job satisfaction. In contrast to results from studies in large organizations, affective commitment was not found to be an influential determinant of employee exit intentions or neglect.     

Knowledge and Perceptions of Superannuation in Australia

Least squares and binary logit models are used to predict knowledge and perceptions of superannuation (private pensions) in Australia on the basis of demographic, socioeconomic and financial characteristics. The data is drawn from the ANZ Survey of Adult Financial Literacy in Australia and relates to 2,516 superannuation fund members. Knowledge of superannuation is defined, amongst other things, in terms of understanding superannuation fees, charges and statements, recognising the voluntary and compulsory nature of additional employee and employer contributions, and being aware of the lower taxation of superannuation compared to other investments. Factors examined include gender, age, ethnicity, occupation, educational level, and family structure, along with household income, savings, and debt. In terms of specific superannuation knowledge, substantially more than half of respondents knew that employers are obliged to make contributions on behalf of employees and that employees can make additional voluntary payments above these payments. Slightly more than half knew that superannuation is taxed at a lower rate than other investments. However, only one-third of fund members knew how to read and understand their statements or the approximate rate of contribution employers were required to make on their behalf, or had worked out how much they needed to save for retirement. Overall, about 60% of respondents could correctly answer only 50% or less of the questions posed. The evidence also suggests that knowledge of superannuation is unevenly spread across respondents. Such knowledge is generally lowest for females, those from a non-English speaking background, those with low levels of education and persons aged less than thirty. Knowledge is generally better for professionals, those aged over 40 or nearing retirement and the university educated. The models best predict the compulsory nature of employer contributions, the voluntary nature of employee contributions, and knowledge that the government will not make up any gap arising from a failure to undertake retirement planning.     

Knowledge and entrepreneurial employees: a country-level analysis

According to the knowledge spillover theory of entrepreneurship, knowledge created endogenously results in knowledge spillovers, which allow independent entrepreneurs to identify and exploit opportunities (Acs et al. in Small Bus Econ 32(1):15–30, 2009). The knowledge spillover theory of entrepreneurship ignores entrepreneurial activities of employees within established organizations. This ignorance is largely empirical, because there has been no large-scale study on the prevalence and nature of entrepreneurial employee activities. This article presents the outcomes of the first large-scale international study of entrepreneurial employee activities. In multiple advanced capitalist economies, entrepreneurial employee activity is more prevalent than independent entrepreneurial activity. Innovation indicators are positively correlated with the prevalence of entrepreneurial employee activities, but are not or even negatively correlated with the prevalence of independent entrepreneurial activities.     

Political Skill,Gender, and Social Network Positioning of Chinese Employees

We collected data from 156 Chinese hospital employees to investigate how political skill and gender affect their advice and friendship network positioning. We found employees with high levels of political skill are more likely to proactively seek friendship ties, while political skill does not affect employees’ advice networks overall. In addition, results show that for men, those with high levels of political skill have lower in-degree centrality in advice and friendship networks than those with less political skill. Political skill does not affect women’s network positions.