Experiential drivers of foreign direct investment by late-comer Asian firms: The Chinese evidence

Focusing on the cognitive process of managerial decision making, we argue that both organizational and personal international experiences contribute to managerial knowledge structure which in turn influences firms' foreign direct investment decisions. Given the decision task context of late-comer Asian firms, the two types of experiences can lead to decision outcomes that compete for limited decision making resources, and therefore their interaction effect is expected to be negative. Based on a sample of 164 Chinese electronic manufacturing firms over an eight-year period (2001–2008), we found substantial support for our hypotheses. While both organizational and personal international experiences increase the foreign direct investment propensity of a firm, these experiences also weaken each other's effects.     

Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making

Artificial intelligence (AI) has penetrated many organizational processes, resulting in a growing fear that smart machines will soon replace many humans in decision making. To provide a more proactive and pragmatic perspective, this article highlights the complementarity of humans and AI and examines how each can bring their own strength in organizational decision-making processes typically characterized by uncertainty, complexity, and equivocality. With a greater computational information processing capacity and an analytical approach, AI can extend humans’ cognition when addressing complexity, whereas humans can still offer a more holistic, intuitive approach in dealing with uncertainty and equivocality in organizational decision making. This premise mirrors the idea of intelligence augmentation, which states that AI systems should be designed with the intention of augmenting, not replacing, human contributions.     

Organizational and Interorganizational Determinants of EDI Diffusion and Organizational Performance: A Causal Model

Electronic data interchange (EDI), a specific form of interorganizational systems, has the potential to significantly influence business operations and the exchange of business documents in a number of industries and to provide substantive tangible and intangible benefits to the participating firms. However, successful implementation and diffusion of these systems innovations requires the cooperation and commitment of all participating member firms. A number of interorganizational as well as internal, organization-specific factors can influence both the extent to which EDI is diffused and used and the level of subsequent benefits that accrue to the firms.

Research from sociopolitical process framework in marketing, organizational theory, innovation theory, use of information technology for competitive advantage, and information systems (IS) implementation was used to identify 3 interorganizational variables (customer support, customer expertise, competitive pressure) and 4 organizational variables (internal support, EDI's benefits potential, EDI compatibility, resource intensity). In this study, we develop a multidimensional measure for EDI diffusion to capture both external integration and internal integration. We then examine the influence of these 7 variables on the extent to which EDI adopter firms pursue diffusion and whether more diffusion leads to superior organizational-level outcomes.

Two senior executives (the chief executive officer and a senior manager responsible for the IS function or EDI) from 83 firms in the motor carrier industry participated in a field survey. The results from a structural equation model (SEM), developed using LISREL, provide quite a strong support for the hypothesized relations. All 4 organizational variables and 2 of the 3 interorganizational variables (customer support and competitive pressure) influence EDI diffusion. The results also indicate that external integration dimension of diffusion enables adopter firms to achieve improved operational and market-oriented performance, whereas internal integration contributes only to operational performance.     

Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source

Although a strong organizational identity (OI) is important for venture success, the impact of negative feedback on a new venture's OI is poorly understood. Drawing on human capital theory we argue that founding teams with more founding and industry experience can more effectively defend OI after negative feedback. Using literature on intra-group bias we further theorize that these benefits of founding and industry experience are more pronounced when feedback emerges from sources external rather than internal to the venture. A multi-period research design and data on 1528 survey responses from 598 members of 81 ventures support our model.     

Organizational Role and Environmental Uncertainty as Influences on Ethical Work Climate in Military Units

In addition to a person’s character and training, the organization’s ethical work climate (EWC) can assess how the organization influences an individual’s ethical decision-making process by examining the individuals’ perception of “what is the right thing to do” in a particular organizational environment. Relatively little research has explored which EWCs dominate military units and the impact of organizational role and environmental uncertainty on individuals in the military and their ethical decision making. In this study, we examined the predominant EWCs among military units and found that certain organizational influences are associated with the specific EWCs. Based on these discoveries, we discuss the implications of EWC studies and the influence of organizational role and environmental uncertainty for researchers, as well as military leaders.     

How knowledge management mediates the relationship between environment and organizational structure

Literature examining how knowledge management (KM) capability helps organizational structures cope with uncertainty is limited. Thus, this study builds and tests an integrated model to investigate the relationship among environmental uncertainty, KM capability, and organizational structure. Data from 161 firms were collected and analyzed. The results from structural equation model analysis support a mediating KM capability between environmental uncertainty and structural attributes. Environmental uncertainty tends to require firms to increase their KM capability, which in turn manifests itself in structural changes.     

Bridging the Gap Between Strategy and Performance: Using Leadership Style to Enable Structural Elements

Successful leaders create structural elements in order to achieve the performance objectives set forth by organizational strategy. Supply chain oriented structural elements are reflected in an organization's relationships, both within the firm and with supply chain partners. In this research effort, we examine how such structural elements can be created as a means through which to enhance performance. Our hypothesized model is rooted in strategy‐structure‐performance theory and integrates elements of servant leadership theory and social exchange theory to explain how building organizational commitment via servant leadership behaviors can ultimately impact performance. We use a survey method to collect data from 158 motor carriers. The results of our structural equation model support our hypotheses and serve to extend the discussion of supply chain structural elements and the role of leadership style in achieving organizational performance.     

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.     

Social Influence and Contextual Utilization of Customer Relationship Management Technology in an International Field Sales Organization

Building from related interdisciplinary theories, this research identifies social influence–related variables that are linked to customer relationship management (CRM) technology utilization within an international business-to-business field sales force. Field sales employees (n = 147) in a multinational organization from Australia, Canada, New Zealand, the United Kingdom, and the United States were surveyed to test the research model. Four of 7 primary hypotheses were supported, predicting more than 65% of the variance in the research model. Effort expectancy, uncertainty avoidance, collective performance expectancy, and internal/organizational social influence all showed antecedent significance to contextual utilization of CRM technology. The results of this study suggest that group-oriented individual decision making and the related concept of institutional collectivism are equally as important as individual-oriented decision making in the international utilization of organizational technology. Based on the strong significance shown in the results of this study, it would also be wise to consider cultural value–derived uncertainty avoidance in practical development of training and implementation of multinational CRM systems.     

Unpacking the effect of exploration during environmental uncertainty: Evidence from the information technology sector

Environmental uncertainty can render managerial decision‐making about resource deployment particularly difficult. Integrating the knowledge‐based view of the firm and the organizational learning literature, we make a case for deploying specific knowledge‐based resources to cope with specific types of environmental uncertainty. We unbundle knowledge‐based resources into technology‐based and social‐network‐based resources and, using Milliken's (1987) typology of environmental uncertainty, we hypothesize that (a) technological exploration will be more effective during state uncertainty and (b) while being generally beneficial, social exploration will prove more effective during response uncertainty. An analysis of the financial performance of information technology (IT) firms in the United States over the period 1995–2004 generally supports our hypotheses. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Labor process control in modern organizations: Subtle effects of structure

Labor process control in today's work organizations is more subtle and sophisticated than in previous eras. Mechanisms such as personnel selection, training and socialization, organizational technology, organizational architecture, organizational structure, and organizational ideology and languages produce strong compliance pressures, often without appearing part of an intricate control network. Studies of organizational control intellectually grounded in systems theory have focused on processes designed to correct the occasional “deviant” action, leaving unfocused mechanisms which tend to ensure routinely compliant behavior. This article identifies subtle controlling influences resulting from the structuring of organizations. Three major dimensions of organizational structure—specialization, hierarchy of authority, and formalization—are analyzed to determine their effects on patterns of employee compliance. Although modern organizational control processes such as structural design subtly produce powerful compliance pressures on employees, conflict in organizations between capital and labor is not suppressed. Workplace struggles are an inevitable aspect of modern organization and emerge even within the confines of sophisticated controls.     

If the Supplier's Human Capital Walks Away,Where Would the Customer Go?

Purpose: Professional service firms' clients often develop stronger attachments to their key contact employee than to the service firm. Since professionals are highly mobile, buyers of professional business services constantly have to decide whether to follow their key contact employee or remain with their incumbent firm, while service firms face the threat of losing customers if the employee leaves. This study examines how the key contact employee's human capital, the social capital between the contact employee and the client, and the service company's structural capital affect the decision whether to follow the key contact employee to another professional service firm.

Methodology/approach: The model is tested on a sample of 120 organizational buyers of advertising services by using partial last squares, a structural equation modelling technique.

Findings: Professional service firms' investments in company-specific structural capital create a deterrent for clients to follow the contact employee, because remaining with the service firm will increase clients' return on the service providers' structural capital. Furthermore, higher levels of structural capital reduce the value of the contact employee's investments in human capital should the employee leave. Conversely, human capital creates motivation to follow the contact employee, while social capital only provides value in combination with human capital.

Research implications: This study employs concepts developed in economics and economic sociology rather than relationship marketing variables to examine attachments to individual professional service providers and to professional service firms.

Practical implications: The findings underline the importance of competence, both at the company and individual level, for retaining clients of professional services. These results contrast previous studies emphasizing close interpersonal relationships and service firms' relationship-building activities.

Originality/value/contribution: Human, social, and structural capital provide value to clients and therefore apply well to professional services. Hence, these variables provide alternative explanations to service firms' client retention or desertion than traditional relationship marketing variables do. The findings add to our understanding of service provider–client relationships in professional services and knowledge intensive firms.     

Four supply chain management systems: From supply chain strategies to human resource management

This article develops a conceptual model that supports and aligns supply chain strategies with organizational culture and leadership styles. We examine various supply chain theories and organizational behavior concepts to develop an integrated supply chain: the human factor model. Based on the underlying dimensions of environmental uncertainty and product complexity, we propose a 2x2 typology to identify four different supply chain systems that can be used by organization leaders to identify suitable supply chain strategies and compatible people management practices. We provide a useful and practical framework to analyze the alignment between the external environment and the internal organization of a supply chain system.     

Medical error reduction: the effect of employee satisfaction with organizational support

The problem of medical errors as a factor of service quality has become critically important for healthcare providers. The research model in this paper describes how employee satisfaction with organizational support (ESWOS) and organizational systems supported by an organizational culture impact medical error reduction. The proposed research model was tested using structural equation modelling for hypotheses, based on data collected from 186 respondents in four selected hospitals. The results of the study strongly support that medical error reduction is associated with ESWOS. Also, organizational culture which supports ESWOS and organizational systems as preventive and corrective systems is important for reducing medical errors.     

The impact of corporate and national cultures on decentralization in multinational corporations

We develop and test a model of multinational corporation (MNC) decentralization in which the allocation of decision rights to subsidiaries is explained by aspects of both internal corporate culture as well as external national cultures. We extend the literature on MNC decentralization by testing the impact of both of these factors as determinants within the same model. Drawing on management control theory as a conceptual platform, we argue that the assignment of decision rights to a subsidiary in the MNC is impacted by corporate innovativeness and shared values, as well by aspects of home and host country cultures. We test our model on a sample of 119 MNC subsidiary managers drawn from a diverse range of industries and locations. The findings provide support to the proposition that corporate innovativeness positively impacts the decision to decentralize, whilst also indicating that home country individualism and host country uncertainty avoidance have a significant influence. The findings challenge established international management logic with respect to shared values—this variable is found to have a negative relationship with decentralization. Overall cultural distance is not found to be significant.     

Managing Internal Supply Chain Integration: Integration Mechanisms and Requirements

In response to globalization, diversification, and other organizational drivers, managers continue to seek organizational designs that promote integration. We study this phenomenon by focusing on requirements and mechanisms for internal supply chain integration (SCI). Using qualitative interview data, we examine how managers in manufacturing firms integrate internal supply chain activities. We elaborate and extend the information processing view by studying why organizations integrate (integration requirements) and how integration mechanisms are associated with different integration requirements. Four patterns of integration requirement–mechanism linkages emerged from our study, depicting integration mechanisms that are associated with a particular integration requirement, and those that are not. We provide a detailed examination of the multidimensional nature of integration requirements, as well as an increased understanding of how integration mechanisms are used to manage different integration requirements. These findings offer deeper insights into organizational integration, enhancing the understanding of integration in the context of internal supply chains, while also contributing to the literature on organizational design. For supply chain managers, these findings describe ways in which organizational design decisions can support internal SCI efforts with varying aims.     

Internet Multiattribute Group Decision Support in Electronic Commerce

The rapid growth of the Internet has provided the means for distributed organizational decision making for electronic commerce. Members of organizations can jointly investigate products, exchange information, and make decisions on-line from remote sites. Internet-based multiattribute group decision making is characterized by three aspects, (i) individual interactive decision making, (ii) communication means, and (iii) group consensus reaching. The purpose of this research was to study the role of communication and individual decision strategies and their influence on multiattribute group decision making and consensus reaching in organizational electronic commerce settings. The results of this study indicate that analytic decision support is indispensable in collaborative Internet-based decision making, that a perfect match of analytic decision support and communication channels must be achieved, and that efficiency of individual decision support should be compromised for higher confidence in the group's decisions. The results of this study also confirm findings by Häubl and Trifts (2000) that interactive decision analytic support has positive effects on the quality and efficiency of individual decision making, and findings by Limayem and DeSanctis (2000) and Todd and Benbesat (2000), that decision makers will use normative decision models if they require little effort and if decisional guidance is provided. The conclusion drawn from this study is that the continuously evolving Internet technology for collaborative decision making is only one aspect for better organizational decision making – the crucial aspect, however, will be the development and optimal integration of analytic decision models, communication channels, and consensus reaching mechanisms.     

Does acquiring venture capital pay off for the funded firms? A meta-analysis on the relationship between venture capital investment and funded firm financial performance

Researchers and practitioners frequently propose that venture capital (VC) is an important resource to increase the performance of funded firms, especially in environments of uncertainty. In this paper we scrutinize these theoretical propositions, following an evidence-based research approach. We synthesize 76 empirical samples on 36,567 firms. We find a small positive performance effect of VC investment on funded firm performance; however, the effect vanishes if researchers control for industry selection effects. Furthermore, we find that the performance effect mainly relates to firm growth while profitability is unaffected. We also uncover that performance effects are reduced when the funded firms are very young or very mature. In addition, studies focusing on IPO events, which constitute the majority of studies, determine a substantially smaller performance effect. We discuss theoretical implications and offer suggestions for future research on VC.     

An Empirical Investigation Into the Relation Between Performance and Perception of Users With a What-If Facility

The results of a laboratory study investigating relations between performance and perception are presented. Previous research has indicated that even if a lack of performance advantage exists by construction, decision support systems continue to be popular and are perceived to provide the desired support during decision making. We examined performance-perception relations of users with a what-if facility under conditions where there is a performance-based reward system and system usage costs. Several hypotheses were proposed and tested. We found that no performance advantage was obtained by using a what-if facility. We also found that participants were able to accurately portray the support provided. Implications for organizational managers, system designers, and system users are discussed.     

Human resource involvement in developing intellectual capital

This study examined the extent of a strategic approach to human resource (HR) management in small and medium professional service firms, and if it is used to develop intellectual capital (IC). Data were collected from 165 Australian professional service firms. Path analysis showed that HR involvement and the adoption of a collective set of strategic HR practices contributed positively to IC levels (particularly human, social and organizational capital). IC acts as a mediator between HR practices and firm performance. HR practices alone did not increase the performance of the firms studied. The findings are unique in the context of studies on small- and medium-sized professional service firms in that a holistic approach to assessing both HR practices and all IC components was taken rather than examining the individual construct relationships. In the context studied, HR influence is critical to increasing IC.