Collaborative projects (social media application): About Wikipedia,the free encyclopedia

Collaborative projects—defined herein as social media applications that enable the joint and simultaneous creation of knowledge-related content by many end-users—have only recently received interest among a larger group of academics. This is surprising since applications such as wikis, social bookmarking sites, online forums, and review sites are probably the most democratic form of social media and reflect well the idea of user-generated content. The purpose of this article is to provide insight regarding collaborative projects; the concept of wisdom of crowds, an essential condition for their functioning; and the motivation of readers and contributors. Specifically, we provide advice on how firms can leverage collaborative projects as an essential element of their online presence to communicate both externally with stakeholders and internally among employees. We also discuss how to address situations in which negative information posted on collaborative projects can become a threat and PR crisis for firms.     

Innovation, organizational learning, and performance

Literature examines the relationship between innovation and performance and asserts a positive relationship between organizational learning and both performance and innovation. However, few empirical studies analyze these relationships together. This article explores those relationships using SEM with data from 451 Spanish firms. The findings show that both variables — organizational learning and innovation — contribute positively to business performance, and that organizational learning affects innovation. Another finding of this study is that size and age of the firm, industry and environmental turbulence moderate these relations.     

Managing supply-demand risk in global production: Creating cost-effective flexible networks

Globalization has led to the creation of hyper-efficient supply chains that work well in a predictable world. However, with globalization comes a world full of uncertainties, and these efficient supply chains often cannot cope with unpredictable fluctuations in demand and supply. These supply-demand imbalances are a major business risk in a vast array of industries—including aerospace and defense, automobiles, chemicals, engineered products, pharmaceuticals, and semiconductors—because capacity is very expensive. Mix flexibility—whereby a plant can produce more than one kind of product—is an attractive antidote to this risk. In this article, we discuss better and worse ways to embrace mix flexibility. To begin, senior executives need to answer two key questions: How do we create flexible plants? And how do we go from flexible plants to a cost-effective flexible network? Successful companies will not blindly apply the same flexibility tactic throughout their business: they will tailor the Four Ps—product design, process design, production technology, and people—to fit the different characteristics of different tiers in their production chains. Successful companies will not sacrifice cost at the altar of flexibility: they will create cost-effective flexible networks by strategically configuring partially flexible networks in a way that delivers almost all the benefits of totally flexible networks.     

Chinese foreign direct investment in the United States: Location choice determinants and strategic implications for the State of Indiana

Identifying the unique U.S. state-level factors that more often give rise to Chinese firm-led investment is the central focus of this article. Looking at Chinese investment in the United States between 2007 and 2011, this article (1) explores the determinants underlying the locational choices of Chinese firms, (2) seeks to understand why some U.S. states receive relatively greater amounts of investment from China, (3) assesses whether prior trends are likely to continue into the future; and—perhaps most importantly—(4) seeks to identify what (if anything) the state of Indiana can do to better position itself to capture greater amounts of Chinese investment moving forward. We recommend the following actions for the state of Indiana: (1) firm targeting—Indiana is a prime FDI target for private, firm-led, greenfield investment; (2) differentiation— Indiana has distinct advantages over other locations in the Midwest; (3) promotions—trade missions and overseas office locations are investments, not costs; (4) investments in relationships—cultural sensitivity and friendship make the difference.     

You’ve been tagged! (Then again, maybe not): Employers and Facebook

Social networking sites, such as Facebook, have exploded on to the cultural and business landscape. Not only can firms use social networking sites to present organizational information to interested parties, but also perhaps gather information regarding job applicants. As an employer, checking out an applicant's Facebook page—much like Googling a candidate's name—is very tempting. It is understandable that managers would like to know as much about a candidate as possible. Facebook pages can provide a wealth of information beyond, or even possibly contradicting, an applicant's submitted documents. While this may represent a potentially useful tool, there are several reasons for caution. For instance, an organization's selection process may be biased if an applicant's Facebook page contains inaccurate information, if some applicants do not have Facebook pages, and/or if legally protected demographic information ends up being part of the selection process. Facebook's own policies suggest that an organization may face legal challenges if it considers an applicant's Facebook page as part of the selection process. Just as importantly, there are ethical issues—in particular, an individual's right to privacy—which must be considered. We wish to encourage organizations to develop guidelines regarding the use of social networking sites in the application process, based on the practical, legal, and ethical issues covered in this article.     

Aligning strategic processes in pursuit of firm growth

Strategy formation mode refers to the way organizations devise their strategies. While some organizations do so through an explicit, formalized, and planned method, other organizations unintentionally create patterns in their strategic decisions—a strategy formation route that is more emergent in nature. This research explores the relationship between strategy formation mode and firm growth. Further, this article explores two strategic processes—forecasting and long-range objective setting—and their efficacy in association with particular strategy formation modes. Primary and secondary data collected from 103 manufacturing firms were used to test the hypotheses. Results indicate that the relationship between strategy formation mode and firm growth is curvilinear (inverted-U shape). Further, a three-way interactive effect is found between strategy formation mode, forecasting, and long-range objective setting on firm growth.     

Embracing the whole individual: Advantages of a dual-centric perspective of work and life

In today's often complicated and fast-paced world, individuals are pulled in many different directions. Balancing work and personal roles—including those of parent, spouse, caregiver, volunteer, and so forth—can be a daunting task. In the literature, identity theory speaks to the multi-faceted existence employees face, beyond that of just “worker.” The differing roles individuals occupy have traditionally been viewed as competing, implicitly suggesting that attention to one area of a person's life necessarily detracts from the others, and that juggling and managing multiple roles causes stress and emotional strain. To explore the verity of this notion we conducted a study, which is described herein. Of significance, 55% of our sample indicated that they were dual-centric; that is, individuals who value both their work and non-work roles equally. In this article, we build on extant research and find support for the belief that dual-centrics experience more overall satisfaction, greater work-life balance, and less emotional exhaustion. Given the seeming increase in employees’ dual-centric focus, it is rational to suggest that one way in which organizations can improve and enhance employee well-being is by embracing them as whole individuals. This article explores that notion, and provides innovative examples from Fortune magazine's “100 Best Companies to Work For” list regarding how this objective can be accomplished.     

Impulse buying and variety seeking: A trait-correlates perspective

Impulse buying and variety seeking are low-effort feelings-based behaviors, yet the similarities and differences in their socio-psychological origin are under-explored. This article addresses this gap with a conceptual framework incorporating several individual and situational factors with a focus on three relevant consumer traits — consumer impulsiveness (CI), optimum stimulation level (OSL), and self-monitoring (SM). Findings from a survey with retail shoppers about their actual purchase decisions show that both CI and OSL have a positive association with the level of impulse buying and variety seeking. However, CI is more strongly associated with impulse buying and OSL with variety seeking. Moreover, SM relates negatively with impulse buying and positively with variety seeking; it also moderates the influence of CI and OSL on both the behaviors in opposite directions. Finally, the article discusses the contribution of this research, its limitations and some directions for future research.     

Crossing the great divide of strategic entrepreneurship: Transitioning between exploration and exploitation

Managing uncertainty effectively is perhaps one of the most significant challenges a firm's decision makers face today. Strategic entrepreneurship—defined as exploration for future sources of competitive advantage, combined with exploitation of current sources of competitive advantage—has been proposed as a means via which decision makers can manage uncertainty. In this article, we discuss the transition between exploration and exploitation activities within organizations as a vital part of strategic entrepreneurship; this transition process can involve various types of internal firm challenges. Additionally, we highlight various sources for these internal challenges and mechanisms through which firms can overcome them.     

If you can’t beat them, let them join: The development of strategies to foster consumers’ co-creative practices

Faced with the challenges of consumer resistance due to the separation of roles between producer and consumer, as well as overpowering marketing tools and techniques, a company can resolve the problem by letting consumers join in the process of value co-creation. Advocating the consumer-oriented perspective, this article explains how and why consumers co-create, which leads to the development of a typology of consumers’ co-creative practices. Four interrelated categories (participation-for-self, creation-for-self, participation-for-others, creation-for-others) are illustrated with the proposed four Cs strategies—choice, complement, cause, and communality—to foster these different practices accordingly. From well-established to newly-developed, these consumer-oriented strategies work to enhance deeper consumer involvement yielding a possibility to attain continual and interconnected benefits for a company. However, implementation is based on a company's readiness and willingness to achieve different degrees of commitment. This article promotes collaborative efforts between consumers and companies, and highlights mutuality of benefits which leads to sustainable relationships.     

How can we make this work? Understanding and responding to working parents of children with autism

As autism spectrum disorder (ASD) escalates in prevalence, organizations are likely to encounter employees whose lives are touched and reframed by this intense, pervasive, and lifelong condition. Families are dramatically affected as emotional and financial challenges are heightened. Employees want and need to remain productive members of their organizations, but some adjustments are necessary. However, little is known regarding the needs and expectations of employees whose children have been diagnosed with ASD. Even less is known about how organizations, managers, and co-workers can respond to provide sensitivity, maintain overall team equity, and ensure high-quality performance. This article reports the results of an in-depth study of working parents of children with ASD as they openly and candidly share perspectives on workplace needs and accommodations. Employees—adamant that performance expectations should not be mitigated—discussed the support and the primary accommodation they sought: flexibility. Guides for both managers and co-workers are offered herein.     

Process completeness: Strategies for aligning service systems with customers’ service needs

Increasingly, customers are expecting more and better service. As such, enterprises need guidelines and frameworks for addressing these expanding requirements. The concept of process completeness helps us to consider service from the customer's viewpoint; arguably, the only perspective to take. Process completeness is achieved when a firm's service delivery system matches the typical customer's breadth of expectations. While customers think in sets of services (e.g., I need a flight, a hotel, airport parking, wireless Internet), firms think in terms of single services (e.g., we can provide a flight). There are four basic service systems: (1) transaction—execute a basic request and nothing else, (2) process—handling all firm-related service requests through one touch point, (3) alliance—handling service requests through a single touch point via stitching together a static firm-selected alliance of service partners, and (4) agility—handling service requests through a single touch point via stitching together a dynamic customer-selected alliance of service partners. In addition to exploring the four service systems, this article guides executives regarding the selection and implementation of the appropriate service strategy that meets their typical customer's process completeness expectations.     

Marketing avatars revisited: A commentary on facial recognition and embodied representations in consumer profiling

In this Executive Digest, we review and extend our original Business Horizons article (May 2013) addressing marketing avatars (i.e., mavatars ¹): digital embodied, biometric profiles. In the original article we offered our marketing avatar framework, which classified existing and predicted types of mavatar applications according to data collection and application domains. However, because of the quick pace of change in this domain, we must review newly introduced mavatar applications that complete the original framework. These new applications—as well as industry and regulatory actions—paint a picture of where and how mavatars will be used, and where opportunities exist for application development. For that reason, we discuss current applications and additional predictions for future use.     

The changed legality of resale price maintenance and pricing implications

From 1911 until 2007, minimum resale price maintenance agreements between manufacturers and resellers were illegal under federal antitrust law. This handicapped manufacturers which sought to exert control over how their products were priced and promoted through the distribution channel. In June 2007, the United States Supreme Court—via the Leegin case—ruled that bilateral minimum resale price maintenance agreements would no longer be automatically illegal. Rather, they would be legal if their net impact is pro-competitive, and illegal only if the net impact is anti-competitive. This ruling empowers manufacturers to use resale price maintenance to create value for their customers and consumers. However, not all stakeholders—including some state legal systems—have embraced the Leegin ruling, thereby creating uncertainty regarding its final impact. Despite this uncertainty, the opportunities created by Leegin are worth exploring and acting upon. Since the Leegin ruling 3 years ago, a new landscape for resale pricing maintenance has been evolving. We discuss this landscape and the considerations for using resale price maintenance within its ambit. For many manufacturers, the chance of benefitting from Leegin outweighs any potential risks.     

Exploring the dark side of pet ownership: Status- and control-based pet consumption

Desire for status or control may motivate some consumers to own certain types of pets. In the light of recent debates surrounding “designer pets,” this article examines the dark side of pet ownership through interpretive interviews with dog owners. The findings compare and contrast two types of ownership motivation — pets as companions to love versus pets as toys, status markers, and brands. This latter category forms part of the dark side of pet ownership. Owners differ in their motivation for ownership, their appreciation of the pet, the nature of human-animal interaction, breed choice, and the purchase of pet-related paraphernalia.     

Pathways to entrepreneurial growth: The influence of management, marketing, and money

Business growth is considered a worthy goal for firms and a measure of entrepreneurial success, as well as important for economic development. Why some firms grow and others do not, though, remains a subject of debate. Of the small proportion of firms that do grow, it is often assumed that they follow a similar growth trajectory and/or encounter certain stage thresholds; however, the evidence base on this is wanting. The new study of business growth presented here provides an in-depth analysis of 19 New England-based firms. Our findings reveal that fast-growing companies exhibit different rates and patterns of growth: some display rapid growth trajectories (Rapid Growth Pattern); some, slower, more measured rates (Incremental Growth Pattern); others, episodic periods of quick growth followed by sharp retrenchment (Episodic Growth Pattern); and, while no firm actively chose to stop growing, some reached points of stagnation (Plateau Growth Pattern). We found that three key factors—management, marketing, and money—affected company growth across these patterns. While not every factor was critical at each moment of growth for each firm, every entrepreneur cited the relative importance of each factor at some time during the growth of their firm. Thus, fast-growing firms do not grow in the same manner, at the same rate, or with the same outcomes. This article has implications for those seeking to understand the processes of development and patterns of fast-growth businesses.     

Imperfect tax competition for profits, asymmetric equilibrium and beneficial tax havens

We present a model of tax competition for real investment and profits and show that the presence of tax havens in some cases increases the tax revenue of countries. In the first part of the paper, we argue that tax competition for profits is likely to be imperfect in the sense that the jurisdiction with the lowest tax rate does not necessarily attract all shifted profits. Under this assumption, tax competition between a large number of identical countries may lead to either a symmetric equilibrium with no profit shifting or an asymmetric equilibrium where firms shift profits from high-tax to low-tax countries. In the second part of the paper, we introduce tax havens. Starting from a symmetric equilibrium, tax havens unambiguously reduce the tax revenue of countries due to a ‘leakage effect’ — tax havens attract tax base from countries — and a ’competition effect’ — the optimal response to the increased tax sensitivity of tax bases involves a reduction of tax rates. Starting from an asymmetric equilibrium, however, tax havens also raise the tax revenue of countries through a ’crowding effect’ — tax havens make it less attractive to compete for profits and thus induce low-tax countries to become high-tax countries. We demonstrate that the latter effect may dominate the former effects so that countries, on balance, benefit from the presence of tax havens.     

Speculative attacks: unique equilibrium and transparency

Models with multiple equilibria are a popular way to explain currency attacks. Morris and Shin (1998) have shown that, in the context of those models, unique equilibria may prevail once noisy private information is introduced. In this paper, we apply the method of Morris and Shin to a broader class of probability distributions and show—using the technique of iterated elimination of dominated strategies—that their results continue to hold, even if we allow for sunspots and individual uncertainty about strategic behavior of other agents. We provide a clear exposition of the logic of this model and we analyze the impact of transparency on the probability of a speculative attack. For the case of uniform distribution of noisy signals, we show that increased transparency of government policy reduces the likelihood of attacks.     

What a difference a word makes: Understanding threats to performance in a VUCA world

VUCA is an acronym that has recently found its way into the business lexicon. The components it refers to—volatility, uncertainty, complexity, and ambiguity—are words that have been variously used to describe an environment which defies confident diagnosis and befuddles executives. In a ‘VUCA world,’ both pundits and executives have said, core activities essential to driving organizational performance—like strategic planning—are viewed as mere exercises in futility. VUCA conditions render useless any efforts to understand the future and to plan responses. When leaders are left with little to do other than wring their hands, organizational performance quickly falls at risk. In this installment of Organizational Performance, we demonstrate that by overlooking important differences in the conditions that volatility, uncertainty, complexity, and ambiguity describe, we have disempowered leaders. We show how leaders can appreciate the differences among each of these challenging situations in order to properly allocate scarce resources to preserve and enhance organizational performance.