The nexus of business sustainability and organizational learning: A systematic literature review to identify key learning principles for business transformation

Companies play a central role in the quest for sustainable development. Organizational learning theories have been utilized to explain sustainability-related change processes in firms. However, implications from studies at the nexus of business sustainability and organizational learning are highly dependent on varying conceptualizations. The objective of this study is to provide clarity on the plurality of conceptual underpinnings in research and to uncover principles that are associated with deeper organizational change processes, that is, business transformation. Building on insights from a systematic literature review, we develop a sustainability learning typology, from which we distill three learning principles for business transformation: (1) the deutero learning mode, (2) the societal learning scope, and (3) the cooperative advantage objective. We formulate needs for future research to further elaborate on the learning principles associated with business transformation and suggest implications for practice.     

Toward a Model of Organizational Co-Evolution in Transition Economies

abstract    The paper presents a model of organization–environment co-evolution, which portrays the joint impact of organizational and environmental characteristics on organizational survival. The four organizational characteristics included in the model are: (a) control structure, (b) product strategy, (c) exchange strategy, and (d) distance to the market. The three environmental characteristics are: (a) control structures, (b) competitive structures, and (c) exchange structures. In line with the general co-evolutionary approach, the model highlights the interrelationship between micro and meso level phenomena, specifically, between firm-level adaptation and industry-level selection of organizational forms. The paper focuses on transition economies and uses the empirical evidence from these economies to illustrate the model's potential. The model, however, is sufficiently general to be applied in other organizational environments.     

Vertical landscraping, a big regionalism for Dubai

Dubai's ecologic and economic complications are exacerbated by six years of accelerated expansion, a fixed top-down approach to urbanism and the construction of iconic single-phase mega-projects. With recent construction delays, project cancellations and growing landscape issues, Dubai's tower typologies have been unresponsive to changing environmental, socio-cultural and economic patterns (BBC, 2009; Gillet, 2009; Lewis, 2009). In this essay, a theory of "Big Regionalism" guides an argument for an economically and ecologically linked tower typology called the Condenser. This phased "box-to-tower" typology is part of a greater Landscape Urbanist strategy called Vertical Landscraping. Within this strategy, the Condenser's role is to densify the city, facilitating the creation of ecologic voids that order the urban region. Delineating "Big Regional" principles, the Condenser provides a time-based, global-local urban growth approach that weaves Bigness into a series of urban-regional, economic and ecological relationships, builds upon the environmental performance of the city's regional architecture and planning, promotes a continuity of Dubai's urban history, and responds to its landscape issues while condensing development. These speculations permit consideration of the overlooked opportunities embedded within Dubai's mega-projects and their long-term impact on the urban morphology.     

Sustainable development and the firm: Organizational innovations and environmental strategy

Sustainable development is increasingly receiving attention from proactive firms. A consistent economic framework which could be used as the economic foundation of both sustainable development and firm strategies towards sustainable development is developed here. It is shown that organizational innovations play a crucial part. Sustainable development requires organizational innovations which could change the business perspective dramatically. Time seems to be a crucial factor when business decisions in accordance with sustainable development are to be made. The content and meaning of sustainable development are briefy discussed. The analysis focuses on the economic interpretation and ecological consequences; some empirical data used to evaluate the future of sustainable development are considered. A model for the economic basis of long-term development is presented.     

HRM and organizational performance in northern and southern Europe

This article aims to extend understanding of the firm-level impact of strategic HR practices on organizational performance. Adopting a contingency approach, it develops a structural model that considers direct and indirect influences of market growth, business strategy formalization and HRM centrality and practices on organizational performance in Europe. The study uses a comparative approach, revealing differences between northern and southern Europe. Clear differences appeared between the two clusters in the HR policies and practices correlated with higher performance, thus indicating that the link between HRM and performance may be different in different geographies.     

Systems for Sustainable Organizations: Emergent Strategies,Interactive Controls and Semi-formal Information

New-form organizations are likely to organize more explicitly around processes than traditional-form organizations that emphasize functional hierarchy. Developing process-based strategic responses quickly using diffuse sets of resources is likely to play an increasingly important role in sustaining new organizational forms. Three ideas introduce alternative perspectives on strategy formulation, management control and information systems design that may be useful in understanding organizational performance in this area. They focus on: (1) emergent strategies, (2) interactive management controls, and (3) semi-formal systems. In combination these three perspectives describe relationships between strategy, organizational design and systems support that suggest mechanisms for improving the sustainability of new organizational forms. To some degree distributed organizational structures such as networked organizations and quasi-organizational forms such as alliances, partnerships and joint ventures represent attempts to solve a paradox of competitive agility. This paradox suggests that in the context of rapidly changing, increasingly global markets, organizations need to be flexible (so they can respond quickly to competitive threats) yet remain stable (so they can learn and grow based on their strengths). If this is the case, what systems and tools are available that encourage a productive balance between flexibility and stability? This paper uses the experience of regional management teams at a large consumer goods company to suggest how interactive controls and semi-formal information systems combine to increase the agility of a distributed organization that can employ emergent strategies. Evidence illustrates some of the mechanisms by which (a) faster response times deliver organizational flexibility while (b) semi-formal analytics add the stability of knowledge and guidance shared across organizational sites. Examples discuss the use of information within management teams, discussion behaviour within management meetings, and organizational performance in response to crisis events. In this context the paper analyses the characteristics of new-form systems that could be used to sustain new-form organizations While the development of process-oriented semi-formal systems is just beginning, the potential for linking such technology with newly developed approaches to management control appears to have important implications for the practice and performance of management in new-form organizations. In particular, interactive controls and semi-formal information appear to offer leverage as mechanisms for organizational adjustment during times when organizations must exploit emergent strategies     

The role of MNCs in balancing the human capital 'books' between African and developed countries

The economic imbalance that exists between Western developed economies and African economies has resulted in retardation of human capital development in the African countries. The foreign direct investments that have freely flowed into Western economies have been the stimulus for the creation of jobs and the resulting educational infrastructure to generate qualified employees. Without this increase in human capital stock (i.e. in African countries) the ability of these economies to compete in the global, high tech, information economy of the twenty-first century is severely constrained. The paper examines the development of a human capital encompassing societal, organizational, and individual levels that can be stimulated by multinational organizations. The resulting positive impact on human capital in turn supports the growth not only of the African countries but also of the multinationals doing business in Africa.     

Overnight stock returns,intraday returns,and firm-specific investor sentiment

In this study, we propose a new index for measuring firm-specific investor sentiment using overnight and intraday stock returns. We use actual equity data to construct the firm-level investor sentiment index and find that the new index has characteristics expected of a sentiment measure. In addition, we propose a novel sentiment-weighted trading strategy and apply it to momentum and short-term reversal strategies. We find that the sentiment-weighted trading strategy generates better performance in momentum and short-term reversal strategies. The sentiment-weighted trading strategy’s superior performance is evidence that our firm-level investor sentiment index possesses predictive powers with regard to future returns.     

Inspiring employees' ecological behaviors: The roles of corporate environmental strategy,biospheric values,and eco-centric leadership

The consequences of environmental degradation have steered organizations to promote pro-ecological behaviors among their employees, and achieving this effectively is paramount for business and environmental sustainability. Applying a multilevel integrated approach, this study investigates the impact of corporate environmental strategy, biospheric values, and eco-centric leadership on employees' ecological behaviors. A self-administered questionnaire was used to collect data from 289 employees from a cross section of industries in Bangladesh. The findings reveal the significant influences of environmental strategy and biospheric values on employees' ecological behaviors as well as the moderating role of eco-centric leadership. The study also provides some significant insights for formulating environmental strategy and inspiring employees' ecological behaviors in organizational contexts. Theoretical and managerial implications as well as future research directions have also been provided.     

The Marshallian Industrial District,an organizational and institutional answer to uncertainty

The object of this paper is to clarify the Marshallian ideas of agents, markets and evolution that make up his concept of the industrial district. The industrial district is interpreted as an organizational and institutional answer to uncertainty. Its longevity depends on the strategies of the local economic actors, the fruition of external economies and its adaptation to a particular trade and technological environment. These propositions are illustrated with regard to contemporary industrial history.     

Environmental visibility: a trigger of green organizational response?

This paper develops a typology of visibility in an environmental context. Although visibility has been neglected and ill defined in contemporary environmental management research, environmental visibility can be a useful construct for predicting green organizational response. As such, it might prove a useful tool for environmental management researchers, policy‐makers and business strategists. The paper derives a conceptual typology of visibility from previous organizational theory research. Visibility is considered both as a characteristic of an organization and as a characteristic of an issue, and at both the corporate and operating unit levels. Data collected in a recent series of interviews in 24 business units in UK PLCs are analysed to provide examples of the types of visibility in an environmental context. The resultant environmental visibility typology is used to discuss the relationship between environmental visibility and green organizational responses. This study's findings suggest that considering environmental visibility as a predictor of green organizational response should be fruitful for future empirical research, and useful for policy‐makers and business strategists. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

Executives’ Orientations as Indicators of Crisis Management Policies and Practices*

ABSTRACT The paper examines effects of executives’ orientations on crisis management awareness and practices, drawing on the simplicity and paradox management theories. It is suggested that a focus on single‐sided management constitutes an antecedent of crisis proneness. Employing a set of key corporate domains and based on a holistic organizational approach, the study aims at assessing the extent to which companies are crisis prone or prepared. In a sample of 82 Istaeli business and not‐for‐profit organizations it was found that human resource management, strategy, structure, and unlearning factors significantly predicted crisis preparedness. These results suggest that unlearning, despite a mere allusion to this correlate in the simplicity and paradox management theories, correlates better with crisis preparedness. By contrast, traditional strategy‐related and structural effects were marginally related to crisis management policies. Implications and suggestions for further research are proposed.     

The utility of expectational data: Firm-level evidence using matched qualitative-quantitative UK surveys

Qualitative expectational data from business surveys are widely used to construct forecasts. However, based typically on evaluation at the macroeconomic level, doubts persist about the utility of these data. This paper evaluates the ability of the underlying firm-level expectations to anticipate subsequent outcomes. Importantly, this evaluation is not hampered by only having access to qualitative outcome data obtained from subsequent business surveys. Quantitative outcome data are also exploited. This required access to a unique panel dataset which matches firms’ responses from the qualitative business survey with the same firms’ quantitative replies to a different survey carried out by the national statistical office. Nonparametric tests then reveal an apparent paradox. Despite evidence that the qualitative and quantitative outcome data are related, we find that the expectational data offer rational forecasts of the qualitative but not the quantitative outcomes. We discuss the role of “discretisation” errors and the loss function in explaining this paradox.     

Organizational Transformation in Transition Economies: Resource-based and Organizational Learning Perspectives

ABSTRACT The capitalist and socialist societies of the twentieth century assigned firms different roles within their economic systems. Enterprises transforming from socialist to market economies thus face fundamental organizational restructuring. Many former state-owned firms in the transition economies of Central and Eastern Europe have failed at this task. These firms have pursued primarily defensive downsizing, rather than strategic restructuring, as a result of both internal and external constraints on restructuring strategies.
Building on the organizational learning and resource-based theories, we analyse strategies available to management in privatized, former state-owned enterprises in transition economies to restructure their organization. Both internal forces promoting or inhibiting the restructuring process, and external constraints arising in the transition context are examined. A model and testable propositions are developed that explain post-privatization performance. Implications of our research point to the ways in which firms should manage and develop their resource base to transform to competitive enterprises.     

信息技术影响企业绩效的机制研究

以解释信息技术的生产率悖论问题为起点,探索信息技术与企业绩效之间的“黑箱”问题。重点考察了信息技术影响企业绩效的内在途径和关联结构。着重通过分析信息技术对企业战略、组织结构、业务流程与组织学习这四条路径的影响,来进一步分析其对企业绩效的间接影响。     

Emerging Multinationals from Mid‐Range Economies: The Influence of Institutions and Factor Markets

This paper revisits and extends our earlier work (in 2005) in the pages of this journal. We argue that there is a need for more fine‐grained understanding of the country context along two dimensions: (1) institutional development and (2) infrastructure and factor market development. Specifically, we propose an enriched typology of emerging economies with a focus on mid‐range emerging economies, which are positioned between traditional emerging economies and newly developed economies. Then we examine new multinationals from these mid‐range emerging economies that have internationalized both regionally and globally. We outline directions for further research based on this typology in terms of (1) government influence, (2) resource orchestration, (3) market entry, and (4) corporate governance regarding the internationalization strategy of these emerging multinationals from mid‐range economies.     

Property rights theory,transaction costs theory,and agency theory: an organizational economics approach to strategic management

Property rights theory has common antecedents with contractual theories of the firm such as transaction costs and agency theories, and is yet distinct from these theories. We illustrate fundamental theoretical principles derived from these three theories by analyzing the business case of oil field unitization. Theoretical principles and application of theory to oil field unitization are each summarized. From this, it is possible to see how property rights theory is well suited to explain business situations where inefficient economic outcomes persist. Additionally, property rights theory forges new theoretical connections with other branches of organizational economics, in particular, resource‐based theory. Copyright © 2005 John Wiley & Sons, Ltd.     

Insider perspectives on growth: Implications for a nondichotomous understanding of ‘sustainable’ and conventional entrepreneurship

The aim of this paper is to offer an alternative to a priori theorising in research on firm-level growth and environmental sustainability. We outline an approach that combines John Shotter's phenomenology with post-hoc application of the Bourdieusian concepts of habitus, practices and social capital. This is illustrated empirically through a study conducted with a small group of Finnish entrepreneurs, which examines their lived experience of growth alongside its practical application in their ventures. The entrepreneurs' responses reveal holistic perspectives on growth that extend beyond the economic to incorporate personal commitments to norms of collectivity and well-being for themselves and others. The paper offers an exploratory but empirically grounded approach, arguing that a combination of insiders' perspectives and attention to the social embedding of economic activity challenge the dichotomous distinctions between sustainable and conventional entrepreneurship and reveal a degree of commonality that would not be evident via conventional categorisations on the basis of features such as business model type.