Individual,Organizational, and Institutional Determinants of Formal and Informal Inter‐Firm Cooperation in SMEs

Inter‐firm cooperation has been considered an important strategy for SMEs to overcome competitive difficulties. Despite the relevance of this strategy there are no studies that jointly consider how entrepreneurs' characteristics, organizational factors, and institutional features influence SMEs to establish cooperative agreements. In order to bridge this gap, we analyze what factors at these three levels explain inter‐firm cooperation and whether formal and informal inter‐firm agreements are explained by different factors. Our research is based on a survey of 1,587 Spanish SMEs and the results show that individual, organizational, and institutional factors contribute to jointly shape the decisions concerning inter‐firm cooperation.     

Antecedents of firm performance in emerging economies: Business groups,strategy, industry structure,and state support

A rich literature has investigated the antecedents of firm performance in developed economies, resulting in a consensus view that firm resources and strategy are the key determinants. Several arguments, however, suggest that in emerging economies other factors are more important for firm performance. This study analyzes the impact of firm strategy and industry structure as well as business group membership and state support on firm performance in an advanced emerging economy, Turkey. Using a data set compiled from a selection of the 1000 largest manufacturing firms in this country, the study employs several regression models to identify the main determinants of firm performance as measured by productivity and net profit margin. In contrast to studies of developed economies, the investigation finds that firm-related factors (competitive strategies) do not significantly influence performance; instead factors related to industry structure and business group membership are the strongest determinants of firm performance; further, state support interacts with business group membership and is positively related to productivity.     

Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle

The term “entrepreneurial orientation” has been used to refer to the strategy-making processes and styles of firms that engage in entrepreneurial activities. A popular model of entrepreneurial orientation (EO) suggests that there are five dimensions of EO—autonomy, innovativeness, risk taking, proactiveness, and competitive aggressiveness (Lumpkin and Dess 1996). This paper reports on two of those dimensions—proactiveness and competitive aggressiveness. Proactiveness refers to how firms relate to market opportunities by seizing initiative in the marketplace; competitive aggressiveness refers to how firms react to competitive trends and demands that already exist in the marketplace. Despite these distinctions, prior research has tended to equate these two concepts and argued that they have a similar effect on firm performance. This paper investigates how these two approaches are related to each other, how they are related to performance, and how their function differs in the environments in which firms exhibit these approaches to strategy making. These distinctions are important because proactiveness and competitive aggressiveness represent distinctly different avenues to entrepreneurial success.A field study was conducted in which 124 executives from 94 firms were surveyed. These were executives from non-affiliated, non-diversified firms who were actively involved in strategic decision making at the top level of the firm. All firms reporting had at least one respondent who was an owner. Analysis of the data was conducted in two phases. In phase 1, factor analysis was used to examine the distinctions between different dimensions of EO. Proactiveness and competitive aggressiveness emerged as two separate factors indicating that these two strategy-making modes were perceived differently by the executives in the study. In the second phase, the relationship of these two dimensions to performance was analyzed in various contexts. Initial tests found that proactiveness was positively related to performance but competitive aggressiveness tended to be poorly associated with performance.Subsequent tests of the EO-performance relationship indicated that the stage of industry life cycle tended to favor one entrepreneurial orientation over another. The performance of firms in the early stages of industry development was stronger when their strategy making was proactively oriented. In contrast, a competitively aggressive frame of mind was helpful to firms in more mature stages of industry development. These findings were supported by other tests of the business environment. In dynamic environments, characterized by rapid change and uncertainty, proactive firms had higher performance relative to competitively aggressive firms. In hostile environments, where competition is intense and resources are constrained, competitively aggressive firms had stronger performance.The findings suggest that these two different approaches to entrepreneurial decision making may have different effects on firm performance. The differences were particularly apparent in the way firms relate to their external environment. Proactiveness—a response to opportunities—is an appropriate mode for firms in dynamic environments or in growth stage industries where conditions are rapidly changing and opportunities for advancement are numerous. But such environments may not favor the kind of combative posturing typical of competitive aggressiveness. Firms in hostile environments, or in mature industries where competition for customers and resources is intense, are more likely to benefit from competitive aggressiveness—a response to threats. A further implication of this research is that the dimensions of an entrepreneurial orientation, often considered to be positively related to performance under all conditions, may not always be associated with successful outcomes. This study indicates that the dimensions of EO often vary independently rather than covary, suggesting that the extent to which an entrepreneurial approach to strategy making is useful will frequently depend on the organizational or environmental conditions under which such decisions are made.     

An Empirical Analysis of Motives for Offshore Outsourcing by U.S. Firms

In light of the political debate on offshore outsourcing, this article examines firm financial characteristics associated with the probability of being identified as an outsourcer. In a sample of S&P 500 firms, we find that firms identified as outsourcers operate in more competitive industries and have relatively worse operating performance, higher administrative overhead, and higher labor overhead. These firm characteristics are consistent with cost-cutting objectives and the need to respond to competitive pressures. We find that the need to lower labor costs is a significant determinant of manufacturing firms locating operations overseas, while lowering administrative overhead influences service firms' outsourcing decisions. From a policy perspective, our results suggest that the political pressure to limit firms' ability to offshore outsource will likely reduce their flexibility to respond to operating and competitive challenges.     

Effectiveness of some simple pricing strategies under varying expectations of competitor behavior

A firm needs to tailor its pricing strategy to the particular competitive setting it faces. We show how a firm can select a pricing strategy that yields higher expected profit than other simple pricing strategies for the competitive conditions encountered. We show that no one strategy yields the highest expected profit for all competitive settings. In particular, we find that a more aggressive pricing strategy is needed for those markets that are either very cooperative or very competitive, while a more cooperative pricing strategy is preferred for markets which have a moderate degree of competition. We also find that a more aggressive pricing strategy is needed as the number of competitors increases. Our results suggest how to choose the pricing strategy that yields the highest expected profit given the likely behavior of a firm's competitors.The authors thank Terry Elrod and Robert Lusch for their comments on earlier versions of this paper.     

The interface of market and nonmarket strategies: Political ties and strategic competitive actions

We focus on corporate political connections as a critical nonmarket strategy and propose that political ties can facilitate firms’ strategic competitive actions but may also hurt the outcomes of such actions, depending on whether the ties are associated to central versus local political actors. Studying China's television manufacturers at the onset of deregulation and globalization, we find that central and local political ties have contrasting effects on firms’ competitive actions and their performance outcomes. To further shed light on theoretical mechanisms, we examine the impact of China's WTO accession on firm actions and contrast domestic-based and internationalization competitive actions.     

The impact of internal,external, and competitor factors on marketing strategy performance

ABSTRACT

Strategy formulation is commonly understood as the match between a firm’s internal resources and skills and its external environment. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The study aims to assess the impact of competitor actions on marketing strategy performance. We develop a model that accommodates the effects of 29 variables (comprising internal marketing strategy variables, external environmental factors and competitors’ marketing mix variables) on business performance. We empirically test the model using simultaneous equation modelling of time-series data on UK car manufacturers collected from publically available resources and annual reports. The results show that external factors, in particular competitors’ marketing mix elements, have a greater influence on a company’s business performance than internal (marketing and non-marketing) strategy variables. Implications for marketing theory and management are discussed.     

Relationship Between Competitive Intensity,Internal Resources,and Firm Performance: Evidence from Indian ITES Industry

The purpose of this article is to investigate how competitive intensity impacts the relationship between crucial firm resources (human capital, organizational capital, management capability) and firm performance. Using a sample of 105 service providers from the Indian information technology–enabled services (ITES) industry, I find that competitive intensity positively moderates the relationship between firm resources and firm performance such that the relationships become stronger when competitive intensity is high than when it is low. Results imply that top managers' evaluation of the performance implications of internal firm resources are significantly shaped by the perceptions of intensity of competition encountered by their firms. © 2013 Wiley Periodicals, Inc.     

Organizational Culture,Competitive Strategy,and Performance in Ghana

The influence of competitive strategy on the organizational culture and performance relationship in Ghana is examined in this study using structural equation modeling. Results suggest evidence of both direct and indirect effects of organizational culture on firm performance. Firms with a predominantly clan or market culture were more likely to be directly associated with performance, whereas firms with adhocracy or hierarchy cultures were more likely to be indirectly associated with performance, depending on their alignment with a differentiation strategy or cost leadership strategy. However, only the link with differentiation strategy resulted in market performance. Managerial and theoretical implications are discussed.     

Outside directors,firm life cycle,corporate financial decisions and firm performance

We investigate whether directors with multiple outside board directorships are related to corporate financial strategy across firm life cycle stages. Using a large sample of firms from the Gulf Cooperation Council (GCC) countries, we find that when the number of directors with multiple board seats increases, firms' level of cash holdings rises, capital expenditure declines, selling, general and administrative (SG&A) expenses increase, and firm performance decreases. We further demonstrate how the relationship varies across different stages of their life cycle. Our findings have significant implications for policy makers, regulators and stockholders in GCC countries and in other emerging markets.     

Competitive advantage and the transformation of value chains over time: The example of a South Korean diversified business group, 1953–2013

We examine the historical evolution of different elements in value chains that create value-added and competitive advantage. This is achieved by using the conceptual model of the ‘smile curve’ with a longitudinal case study of a diversified business group, CJ Group, a former affiliated firm of Samsung Group. We found that the value-added structure graph in the industrialisation period displayed an ‘upside-down U shape’, indicating that production and manufacturing were the most value-adding sectors. However, in the more recent knowledge-based economy period, the graph shows a quite different shape, indicating R&D, firm infrastructure, manufacturing, logistics, service, and marketing as sources of value-added. This shows that competitive advantage diversified into other fields to fit with the changed economy. We also investigate what type of organisational structure, strategy, and capabilities were adopted for organisational change. We found an evolution, with an unrelated diversification strategy by altering capabilities from contacts and generic to organisational and technological capabilities.     

Hedging,liquidity, and the competitive firm under price uncertainty

In this paper, the behavior of the competitive firm under price uncertainty when the firm has access to an intertemporally unbiased futures market is examined. Futures contracts are marked‐to‐market and thus require interim cash settlement of gains and losses. The firm is subject to a liquidity constraint in that it is forced to prematurely close its futures position on which the interim loss incurred exceeds a threshold level. It is shown that the liquidity constrained firm optimally opts for an under‐hedge should it be prudent. Furthermore, the prudent firm cuts down its optimal level of output in response to the presence of the liquidity constraint. As such, the liquidity risk created by the interim funding requirement of a futures hedge adversely affects the hedging and production decisions of the competitive firm under price uncertainty. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:697–706, 2004     

Board Attributes,Corporate Social Responsibility Strategy,and Corporate Environmental and Social Performance

In this paper, we draw on insights from theories in the management and corporate governance literature to develop a theoretical model that makes explicit the links between a firm’s corporate social responsibility (CSR) related board attributes, its board CSR strategy, and its environmental and social performance. We then test the model using structural equation modeling approach. We find that the greater the CSR orientation of the board (as measured by the board’s independence, gender diversity, and financial expertise on audit committee), the more proactive and comprehensive the firm’s CSR strategy, and the higher its environmental and social performance. Moreover, we find this link to be endogenous and self-reinforcing, with superior CSR performers tending to further strengthen their board CSR orientation. This result while positive is also suggestive of the widening of the gap between the leads and laggards in CSR. Therefore, the question arises as to how ‘leaders’ are using their superior CSR competencies seen by many scholars as a source of corporate (at times unfair) competitive advantage. Stakeholders of corporations therefore need to be cognizant of this aspect of CSR when evaluating a firm’s CSR activities. Policy makers also need to be cognizant of these concerns when designing regulation in this field.     

Responding to the challenges of global markets: Change,complexity, competition and conscience

In developing global marketing strategy to compete in world markets, managers must address the challenges of constant change, increased complexity and intense competition, while, at the same time, responding to calls of conscience. However, the appropriate response to these challenges depends on the stage of involvement in international markets, i.e., whether the firm is just entering international markets, is aggressively expanding its international presence or attempting to rationalize far-flung operations. The paper suggests how a firm should respond to these challenges, and shows how using different tools such as information systems technology, creating new organizational forms providing administrative and organizational flexibility, and effective resource deployment at various stages of the value chain can help a firm to cope with them.     

The impact of firm strategy on performance measures used in executive compensation

We investigate the relationship between firm strategy and the use of performance measures in executive compensation. Our analysis shows that there is an increased emphasis on sales in the determination of executive compensation for firms pursuing a cost leadership strategy, which seek to achieve their competitive advantage through low price and high volume. In contrast, there is a decreased emphasis on accounting measures in firms pursuing a differentiation strategy, which require investments in brand recognition and innovative products, investments that are subject to unfavorable accounting treatment. These results indicate that compensation committees link executive rewards to firm strategy.     

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.     

先进制造技术与企业竞争优势——基于企业资源观的述评

本文认为,企业资源观理论为我们研究先进制造技术如何影响和形成企业竞争优势提供了非常好的理论框架.企业在先进制造技术资源的应用方面能够做到差异化,企业的先进制造技术资产对其他有形或无形资产的杠杆作用可以成为形成企业持续竞争力的异质性资源,这些异质性资源的结合还会产生更强的先进制造技术动态能力.要取得有竞争力的先进制造技术资源,需要企业花费大量的时间学习和积累.先进制造技术资源难以模仿和复制,具有社会复杂性,可以成为持续竞争优势的源泉.     

Corporate Philanthropic Giving,Advertising Intensity,and Industry Competition Level

This article examines whether the likelihood and amount of firm charitable giving in response to catastrophic events are related to firm advertising intensity, and whether industry competition level moderates this relationship. Using data on Chinese firms’ philanthropic response to the 2008 Sichuan earthquake, we find that firm advertising intensity is positively associated with both the probability and the amount of corporate giving. The results also indicate that this positive advertising intensity-philanthropic giving relationship is stronger in competitive industries, and firms in competitive industries are more likely to donate. This study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is strategic.     

人力资源管理系统形成影响因素的实证研究

在战略人力管理研究中,一直强调人力资源管理系统形态的形成需要和企业外部环境、企业特征和竞争战略保持匹配。在此基础上,文章建立了企业人力资源管理系统形成的影响因素模型,提出研究假设,并选取133家企业对假设进行了检验。研究发现,外部环境、企业规模对人力资源管理系统形成具有显著的影响,而人力资源管理经理是否专任和竞争战略并没有对企业人力资源管理系统形成产生显著的影响。最后,在对研究结论进行讨论的基础上,分析了研究的局限性并提出未来研究建议。