Knowledge is not Enough: Organisational Attention and Replication Strategies

The replication strategy – sometimes called the ‘McDonald's strategy’ – requires efficient transfer of massive amounts of knowledge to be successful. While it is generally agreed that knowledge is a crucial organisational resource, less is understood about how an organisation may use its knowledge for strategic success. We propose a model that uses ‘organisational attention’ as an explanatory factor of knowledge transfer and exploitation in chain-store organisations implementing a replication strategy. The proposed model examines the influence of organisational attention on exploiting knowledge as a strategic resource; and specifically on three indications of the success of the replication strategy, namely accuracy, uniformity, and distinctiveness. These three variables help us understand the nature of templates and the processes involved in transferring the explicit and tacit knowledge contained therein. Based on the model we then develop several research propositions, and conclude with some thoughts on implications and limitations of this work.     

Sovereign Debt Restructuring: The Judge,the Vultures and Creditor Rights

What role did the US courts play in the Argentine debt swap of 2005? What implications does this have for the future of creditor rights in sovereign bond markets? The Judge in the Argentine case has, it appears, deftly exploited creditor heterogeneity – between ‘holdouts’ seeking capital gains and institutional investors wanting a settlement – to promote a swap with a supermajority of creditors. Our analysis of Argentine debt litigation reveals a ‘Judge‐mediated’ sovereign debt restructuring which resolves key issues of Transition and Aggregation – two of the tasks envisaged for the IMF's stillborn Sovereign Debt Restructuring Mechanism. For the future, we discuss how Judge‐mediated sovereign debt restructuring (together with creditor committees) could complement Collective Action Clauses in sovereign bond contracts.     

External Public Debt,Trade Linkages and Contagion During the Eurozone Crisis

Against the backdrop of the contagion literature, the paper analyses the impact of financial and trade linkages on sovereign bond spreads in the Eurozone crisis. Using quarterly data for a sample of EMU countries during the period 2000–13, we estimate fixed‐effect panel models with Driscoll and Kraay standard errors that are robust to general forms of spatial and temporal dependence. Our main results can be summarised as follows: first, we suggest that the ‘sudden stop’ of capital inflow towards the peripheral sovereign debt triggered a re‐segmentation of financial markets and economic systems along national borders, with negative implications for risk‐sharing and the efficient allocation of capital. The ‘home bias’ effect – that is the increase in the share of sovereign debt held by domestic banks – worsened the country‐specific risk because the twin crisis (sovereign and banking) began to be conceived as more closely intertwined within countries than before. Second, the structure of international trade helps to account for the geographic scope of contagion, even after controlling for macroeconomic and fiscal vulnerabilities. Finally, the ‘substitution effect’ of public debt securities of stand‐alone emerging countries has affected more the sovereign spreads in the core than in the periphery.     

An Empirical Study of Service Quality Implementation

The strategic importance of quality management has grown in importance in recent years. However, although the competitive implications of adhering to a quality agenda have been much alluded to within the literature, the evidence from a review of published studies suggests that service quality and strategy issues have been addressed as separate concerns by researchers. This study examines the components which facilitate the quality implementation process. The factor analysis of data emphasises the importance of ‘senior managerial commitment’ and ‘employee resourcefulness’ in quality implementation initiatives and offers support to the growing implementation initiatives and offers support to the growing literature arguing for a greater consideration of the human dimension in quality implementation programmes. It is proposed that further research needs to be carried out to examine mangerial attiudes towards the service quality implementation process and to assess some of the practical issues involved in introducing quality initiatives in hotel organisations.     

Anti‐dumping's Happy Birthday?

The purpose of this paper is to highlight and discuss recent developments in the worldwide use of anti‐dumping (AD) policy as a possible strategic counterpoint to trade liberalisation. First, we review briefly the original intended purpose of AD policy, and reflect on its secondary position on the agenda of current international trade negotiations. Second, we discuss the escalating – and perhaps strategic – use of AD policy, particularly in the developing world, and highlight the roles of both interest groups and the state in determining policy outcomes. Next, we review the state of affairs of AD policy with the world's most active user, the US. In particular, we introduce and discuss the latest important development, the implementation of the ‘Continued Dumping and Subsidy Offset Act of 2000’, which incorporates monetary compensation for petitioners, potentially offering more opportunities for strategic policy behaviour by firms, industries and the state. We conclude the article with a short discussion of directions for future research and some general concerns about the use of AD policy.     

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.     

A resource-advantage perspective on the orchestration of ambidexterity

Strategic resources are key inputs to strategy that can form the basis of superior service performance, yet there is scarce research on the strategic resources used by managers to realise ambidexterity: the simultaneous pursuit of alignment and adaptability. In this article, we draw on a qualitative case study of a leading European airline and examine the resource bundles used by managers in their orchestration of ambidexterity. Adopting a resource-advantage perspective, the study illustrates elements of human, organisational, and informational capital that are mobilised by managers in their incorporation of alignment-oriented and adaptability-oriented activities. By moving beyond a linear association between strategic resources and ambidextrous organisations, we argue that managers' orchestration of ambidexterity is central to how service organisations manage their strategic resources and enhance competitiveness. Overall, we highlight the micro managerial level as an important point of observation to extend current thinking on the ‘how’ of ambidexterity in service organisations.     

SOCIAL CONFLICT,GROWTH AND FACTOR SHARES

Standard growth theory is based on atomistic agents with no strategic interactions among them. In contrast, we model growth as resulting from a one‐off, strategic game between ‘workers’ and owners of capital (‘capitalists’) on factor shares, in an otherwise standard ‘AK’ growth model. The resulting distribution of income between factors further determines the marginal revenue product of capital and the rate of growth. We analyse the properties of four equilibria: competitive, Stackelberg equilibrium, a hybrid non‐cooperative regime and cooperative, in terms of labour shares, growth and welfare. Our model thus endogenizes key aspects of the ‘social contract’.     

Differences between Presidents' and Sales Managers' Perceptions of the Industry Environment and Firm Strategy in Small Industrial Firms: Relationship to Performance Satisfaction

The industrial sales force is the primary source of information about the competitive environment. Differences of perceptions of that environment between the national sales manager and the firm president in small industrial firms may reflect inadequate environmental information input into strategic decision-making. The sales force is a major element in implementation of strategy and differences between perceptions of firm strategy may reflect inadequate coordination and communication between the chief strategy decision-maker and the manager who is responsible for implementing that strategy in the market place. It would be expected that these differences in perceptions would impact negatively strategy formulation and execution resulting in unsatisfactory firm performance. This study surveyed the environmental and strategy perceptions of presidents and national sales managers in small to medium-sized industrial firms as well as presidents' satisfaction with firm profitability and marketing/sales effectiveness. The average absolute difference in environment perceptions has a negative relationship with satisfaction with profit. The average absolute difference in strategy perceptions has a negative relationship with marketing/sales effectiveness. This latter relationship is especially strong in an environment high in capital spending variation and for larger firms. The authors suggest implications for managers based on these results.     

Market Orientation in Public Service—A Comparison Between Buyers and Providers

Public services have been subjected to processes of deregulation, competition, and privatization in many countries worldwide. One popular reform has involved focusing on competitive procurement. This context, where public and private organizations jointly deliver the service in a dyad, makes the market orientation of public services highly complex. The main elements of market orientation – intelligence generation, intelligence dissemination and responsiveness– have shown themselves to be valid and of significance in both the private and public sectors. Nevertheless, the empirical context of the public sector involves a complexity that has been poorly addressed in market orientation research. In this study, we research the Swedish public transport industry and survey buyer and provider organizations in order to determine how market-orientated activities are approached in public-private service dyads. We present three theoretically-underpinned relationship types - buyer dominated, provider dominated and collaborative - which we suggest as having implications for market-oriented activities. A survey of public transport authorities’ (buyers, n = 48) and operators’ (providers, n = 49) market orientation activities reveals the concurrent prevalence of characteristics from all three relationship types, as both parties try to dominate the relationship while also engaging in collaborative efforts. Drawing on our theoretical framework and our empirical results, we conclude that there are legitimate differences in the perspectives of buyers and providers, and that these differences, if acknowledged and properly managed, can provide valuable resources in the development of a joint market orientation in complex public-private settings.     

Institutional change and strategic choice: debating the ‘stage-model’ of strategy in emerging economies

The popular ‘stage-model’ of strategic choice amid institutional change is found unable to account for the diverse strategies in emerging economies, which, this essay argues, is due to the model’s misplaced search for standard strategies which are said to be (1) dictated by linear transition stages and (2) determining the performance of stylized ‘firm types’. Assuming historical inevitability and blind to human agency, the model is at odds with Knight’s notion of uncertainty, with North’s thesis of adaptive efficiency and with Schumpeter’s theorizing on entrepreneurship. Studies on strategy in emerging economies, such as in the case of contemporary China, are in urgent need of an actor-centred, process-oriented and uncertainty-sensitive reorientation. This step, we conclude, may emerge by learning from the ‘practice-turn’ in the social sciences, taking politics seriously, incorporating evolution/complexity insights and enriching the methodology toolkit.     

Capital Controls Re‐examined: The Case for ‘Smart’ Controls

The global financial crisis which began in east Asia in 1997 is not over, neither is the inquest into its implications for adjustment policy. In the wake of this crisis, we focus here on the role of capital controls, which formed a much publicised part of the crisis‐coping strategy in one country (Malaysia) and, less openly, were also deployed by other crisis‐afflicted countries. Evaluation so far has examined different target variables with different estimation methods, generally concentrating on efficiency and stability indicators and ignoring equity measures; it has also typically treated ‘control’ as a one‐zero dummy variable, ignoring the ‘quality’ of intervention and in particular the extent to which efficiency gains are obtained in exchange for controls. Partly because of these limitations, the literature has reached no consensus on the impact of controls; however, it is moving over towards acknowledging that the quality and type of controls is important, as well as their intensity. We propose an approach in which the government plays off short‐term political security against long‐term economic gain; the more insecure its political footing, the greater the weight it gives to political survival, which is likely to increase the probability of controls being imposed. The modelling of this approach generates a governmental ‘policy reaction function’ and an impact function for controls, which are estimated by simultaneous panel‐data methods across a sample of thirty developing and transitional countries between 1980–2003, using, for the period since 1996, the ‘new’ IMF dataset which differentiates between controls by type. We find that controls appear to cause increases in income equality, and are significantly associated with political insecurity and relatively low levels of openness to trade. They do not, in our analysis, materially influence the level of whole‐economy productivity or GDP across the sample of countries examined, although they do influence productivity in particular sectors. But the dispersion around this central finding is wide: the tendency for controls to depress productivity by encouraging rent‐seeking sometimes is, and sometimes is not, counteracted by purposive government policy actions to maintain competitiveness. Whether or not this happens is vital, on both efficiency and equity grounds. We make the case for ‘smart’ capital controls – controls which are time‐limited and contain an inbuilt incentive to increased productivity.     

Maximising performance gains from cooperative marketing: understanding the role of environmental contexts

Understanding the situational relevance of strategy is vital given that strategies have varying utilities under different environmental settings which result in performance variations. Research remains silent regarding the situational relevance of cooperative marketing strategy implementation whereby performance outcomes are maximised. Through quantitative survey results, we explore the relationship between cooperative marketing and performance outcomes across varying environmental contexts (internal and external environments). While past studies acknowledge the importance of an open systems' perspective and the influence of the environment on strategic outcomes, they fall prey to key shortcomings such as a reductionist perspective and inadequate measurement. We provide an insight into the environment-strategy-performance relationship by using a holistic environmental approach and detailing the environments conducive to co-marketing strategy implementation. Managerial implications and future directions for research are also provided in the paper.     

Managing multiple forms of strategic training fit through the Balanced Scorecard

Although the literature recognizes training as an essential driver of organizational effectiveness, little is still known about how to explicitly focus and align training to organizational strategic priorities. This note proposes a model that bridges the strategic human resource management (SHRM) literature and the Balanced Scorecard (BSC) literature – which is one of the most widely recognized strategic performance evaluation approaches intended to foster organizational alignment by translating the firm's strategy into a multidimensional set of financial and non‐financial measures. After having briefly discussed the main differences between the return on investment (ROI) model, which represents one of the major attempt to make training strategic within the existing evaluation research, and the BSC model applied to training management, this note highlights multiple forms of strategic training fit and suggests how to manage training through various scenarios of BSC development. Specifically, the note illustrates four forms of strategic fit – the vertical fit, the horizontal inter‐functional fit, the horizontal intra‐functional fit and the human capital readiness – and discusses their pursuit in terms of six scenarios of training management through the BSC. The note expands some exploratory empirical evidence on the feasibility and usefulness of training scorecards (i.e. the application of the BSC to training) in order to develop some theoretical insights and practical guidance on how they can be leveraged to foster the strategic alignment of training.     

Talent Management and HRM in Multinational companies in Beijing: Definitions,differences and drivers

Talent Management (TM) has attracted increasing attention from academics and practitioners in recent years, but there are many gaps and omissions left for further theoretical and empirical development. One line of debate has been whether TM is merely a re-packaging of what already exists, not being distinct from traditional HRM practices or disciplines. The paper has three main components: (i) a review of how ‘Talent’ and TM has been conceptualised in the literature and the outline of a framework we have derived therefrom which identifies four main perspectives on TM: exclusive-people; exclusive-position; inclusive-people; social capital; (ii) the presentation and analysis of our research findings relating to TM perspectives and practices in seven multinational corporations (MNCs) in Beijing; (iii) a concluding discussion which compares and contrasts our findings with the extant literature and our framework. Six of the companies had adopted ‘exclusive’ perspectives, seeing TM as ‘integrated, selective’ HRM. For some, this involved an ‘exclusive-people’ focus on certain groups of ‘high-performing’ or ‘high-potential’ people, whilst for others it meant an ‘exclusive-position’ focus on certain ‘key’ positions in the organization. Just one organization had adopted an ‘inclusive-people’ approach. Two of the companies emphasized ‘organizationally focussed competence development’, concentrating upon smooth talent flows and development, and moving towards a ‘social capital’ perspective which took cognizance of networks, contexts and relationships as well as human capital. The implications of our findings for research and practice are outlined.     

Buyer profiles: an empirical investigation of changing organizational requirements

Many authors have commented that the profile of the industrial buyer must change if purchasing is to adapt the increasingly dynamic and complex contexts in which firms operate. This exploratory, empirical study examined and compared the trait profiles of current top performers and of ‘ideal’ buyers for the future. This approach links buyer traits with perceived managerial satisfaction with role performance. Based on cluster analysis, we present a taxonomy of five ‘ideal’ types of buyer. We propose that future research should seek to match the identified trait clusters with a typology of purchasing contexts.     

Corporate social responsibility as cultural meaning management: a critique of the marketing of ‘ethical’ bottled water

To date, the primary focus of research in the field of corporate social responsibility (CSR) has been on the strategic implications of CSR for corporations and less on an evaluation of CSR from a wider political, economic and social perspective. In this paper, we aim to address this gap by critically engaging with marketing campaigns of so-called ‘ethical’ bottled water. We especially focus on a major CSR strategy of a range of different companies that promise to provide drinking water for (what they name as) ‘poor African people’ by way of Western consumers purchasing bottled water. Following Fairclough's approach, we unfold a three-step critical discourse analysis of the marketing campaigns of 10 such ‘ethical’ brands. Our results show that bottled water companies try to influence consumers' tastes through the management of the cultural meaning of bottled water, producing a more ‘ethical’ and ‘socially responsible’ perception of their products/brands. Theoretically, we base our analysis on McCracken's model of the cultural meaning of consumer goods, which, we argue, offers a critical perspective of the recent emergence of CSR and business ethics initiatives. We discuss how these marketing campaigns can be framed as historical struggles associated with neo-liberal ideology and hegemony. Our analysis demonstrates how such CSR strategies are part of a general process of the reproduction of capitalist modes of accumulation and legitimation through the usage of cultural categories.     

Key business dilemmas & the marketing remit in business-to-business marketing services

Various studies examining the business trends and utilisation of marketing techniques have been undertaken by the authors in many fields of marketing services, including advertising, public relations and strategic marketing consultancy. Recently, these findings have been updated through a survey of practitioners' views. From these findings, this paper first explores the core underlying business trends and key resulting marketing issues facing these providers of marketing services. The discussion then expands to examine how these businesses themselves utilise the marketing toolkit, benchmarking current practices against the ‘textbook’ view of good marketing endeavour. For these providers of marketing services the understanding and use of marketing per se differ quite significantly, but all acknowledge the need to improve their own strategic and tactical marketing practices.     

On ‘creative cities’ governance models: a comparative approach

The implementation of ‘creative cities’ projects all over the world in recent years has been characterised by a great diversity of institutional frameworks and governance mechanisms.

Departing from the contemporary debates on ‘creative industries’ and ‘creative cities’, this article aims to discuss this diversity of regulatory mechanisms and forms of governance. Some tentative typologies of case studies and governance mechanisms are drawn in order to improve the understanding of those dynamics, to build up knowledge on suitable ‘creative cities’ governance models, and to develop ideas to support a strategy for public intervention in the Portuguese case.     

The micro-foundations of strategic ambidexterity: Chinese cross-border M&As,Mid-View thinking and integration management

Chinese cross-border mergers and acquisitions (M&As) display several unique properties in relation to the ways in which their international business operations are organised and managed. Their seemingly puzzling ‘light-touch’ integration approach can be significantly understood from a strategic ambidexterity perspective: on the one hand, the ‘light-touch’ enables the exploitation of the targets’ existing knowledge bases; on the other hand, elements of the ‘light-touch’ facilitate the exploration of the new knowledge arising from the collaboration between targets and acquirers. However, an important theoretical gap remains: why do Chinese companies deploy such a strategic ambidexterity approach in their post-acquisition integrations? This paper aims to fill this gap by proposing Mid-View thinking as a micro-foundation of strategic ambidexterity in integration management from a cultural and philosophical perspective. To illuminate our conceptualization and argument, we conducted qualitative in-depth interviews with CEOs/high-level managers of acquired German companies. Communication approach and organizational control—as two critical aspects in integration management—reveal how Mid-View thinking can serve as a micro-foundation of strategic ambidexterity. We conclude this paper by presenting its theoretical contributions, managerial implications, and future research directions.