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.     

A cross-national analysis of perceptions of corporate governance principles

Increased trade between developed and emerging economies has led to a gradual convergence of policies related to corporate governance as multinational firms attempt to standardize best practices worldwide. Due in part to this movement organizations such as the OECD and World Bank have contributed to the streamlining of acceptable protocol for publicly traded firms around the globe. In 1999 the OECD Principles of Corporate Governance were endorsed by OECD ministers in an attempt to influence policymakers by setting global governance standards. Yet the extent to which perceptions of these principles vary between OECD members and non-members is unclear. Obtaining a greater understanding of how individuals from diverse nations perceive these principles is important to managers as they maneuver through the complex world of international business. In this study we employ relational demography theory to develop and test a survey instrument in the Kingdom of Saudi Arabia and in the United States to assess perceptions of OECD principles. Results from a survey of 284 managers (Saudi Arabia n = 168, USA n = 116) suggest that regardless of culture perceptions of shareholder rights are positively related to beliefs about the integrity of the national legal and regulatory framework. Also, differences between the Saudi and U.S. samples on perceptions of shareholder participation, disclosure and the role of the audit function are identified. Managerial implications and future research directions are also discussed.     

How do Small and Medium Enterprises Go “Green”? A Study of Environmental Management Programs in the U.S. Wine Industry

In industries populated by small and medium enterprises, managers’ good intentions frequently incur barriers to superior environmental performance (Tilley, Bus Strategy Environ 8:238–248, 1999). During the period when the U.S. wine industry was beginning to promote voluntary adoption of sound environmental practices, we examined managers’ attitudes, norms, and perceptions of stakeholder pressures to assess their intentions to implement environmental management programs (EMP). We found that managers within the simple structures of these small and medium firms are responsive to attitudes, norms, and pressures from internal stakeholders and that voluntarily established EMP increased the success of firms’ implementation of energy conservation and recycling practices. Applications of our findings to future research on small and medium enterprises as well as direct practical applications of our results are discussed.     

Fairness as a Constraint in the Real Estate Market

Community standards, ethical norms, and perceptions of fairness often serve as constraints on pure profit maximizing behavior. Consider the following examples: Most hardware stores refrain from raising prices on snow shovels after a major snow storm, even where short term profits might be increased. Most employers do not lower wages for existing employees, even as unemployment in the area increases. Automobile dealerships rarely raise sticker prices to cope with the long waiting periods for a popular model. Each of these anomalies is consistent with the proposition that firms increase profits subject to fairness constraints.This paper examines perceptions of fairness in the residential real estate industry and explores how community standards affect economic decision-making. The residential real estate industry is unique. One party to the transaction (the landlord) frames decisions as pure business decisions. The other party to the transaction (the tenant) frames decisions more broadly. While a tenant's choice of apartments is in part viewed as a business decision, tenants consider a broad spectrum of non-business issues, as well.This disjunction between landlord and tenant perceptions can lead to unique ethical quandaries and can explain otherwise anomalous economic behavior in the industry. The hypothetical case examined in this paper is based on a frequently encountered situation in the industry. The paper concludes with practical suggestions for managers.     

Environmental uncertainty and environmental management perception: A multiple case study

This paper seeks to answer two questions about environmental uncertainty. (1) How does environmental uncertainty differ across sectors? (2) How can environmental uncertainty impact on managers’ perceptions of the natural environment as a competitive opportunity? The analysis of the nature, sources and extent of environmental uncertainty serves to identify its different components, which fall into two main categories. These categories associate with the information-related environmental uncertainty approach and with the natural resource dependence theory. A multiple case study helps highlight the similarities and differences in the perceptions of environmental uncertainty of the managers of eight Spanish firms belonging to primary, secondary and tertiary sectors. The findings show that environmental uncertainty is inherent in managerial decisions in two ways: in the changes that managers identify in the business environment; and in the changes that the managers themselves produce as a result of the initiatives they undertake in response to the business environment. The paper finishes with some recommendations for managers.     

U.K. SMEs’ awareness,use, and perceptions of selected government export assistance programs: An investigation into the effect of the internationalization process

This study reports on an empirical investigation into U.K. managers’ behavior toward and perceptions about selected export assistance programs. Specifically, it investigates whether differences exist between managers of U.K. small and medium-sized enterprises (SMEs) in various stages of internationalization in relation to their awareness and frequency of use of the programs, together with their perceptions about the timeliness, reliability, and availability of the assistance schemes. It provides a contribution to the knowledge in the areas of export management and public policy because despite the fact that a body of literature exists on the topics of both export assistance and the internationalization process of firms, there is a need to bring these two research topics together in the form of a single U.K. study to establish whether current export assistance procedures are suitable for managers from firms in different stages of export development. The rationale for such a study is that if managers of U.K. SMEs in different stages of the internationalization process differ in both their behavior toward and perceptions about government assistance programs, U.K. policymakers may need to reconsider the way in which services are provided to avoid wasting scarce resources.     

Evidence on managers' perceptions of effects of government control of the business environment: A Study of the republic of Korea

This study provides empirical evidence on the perceptions of business managers on pertinent environmental variables affected by government control in a newly industrializing country. We document that the majority of surveyed firms are aware of the effect of government control on their activities. Managers perceive that political, legal, technological, and economic environments are potent sources of uncertainty (or value enhancement) for their firms as a result of government control. Furthermore, some firm-and industry-specific characteristics were found to buttress managers' perceptions of the effects of government control on their environments. To optimize foreign investments, these findings suggest that expanding firms strategically approach their entry into such foreign markets. © 1995 John Wiley & Sons, Inc.     

Understanding Managers’ Reactions to Blockchain Technologies in the Supply Chain: The Reliable and Unbiased Software Agent

Organizations investing in supply chain information systems struggle to ensure successful adoption and implementation. Projects fail because of technical caveats, inability to meet business needs, and poor management of implementation. Implementation of blockchain technologies across a network of supply chain partners is more complex than internally focused technologies. It is necessary for partner firms to implement, contribute, and share information, and employees to actively use the capabilities of the technology to realize potential. Blockchain technologies can substitute for traditional interfirm intermediaries acting as an unbiased software agent embedded in the supply chain network. Understanding managers’ perceptions of and willingness to use blockchain technologies is crucial for successful implementation. Integrating design theory with classic diffusion processes, we conducted a scenario‐based role‐playing experiment with industry professionals to examine managers’ perceptions of blockchain technologies and willingness to use. We find that trustworthiness with regard to competence and perceived distributive justice is the focal drivers of managers’ willingness to use the technology. Additionally, both risk and interactional justice are not drivers of willingness to use blockchain technology despite significant claims to that effect. We provide implications for how managers can leverage these drivers to influence supply chain partners’ willingness to use the technology.     

Antecedents of perceived national and corporate culture differences: evidence from Chinese international strategic alliances

We investigate the determinants of managers' perceptions of national and corporate culture differences, using data obtained from Chinese partner managers of international strategic alliances. An expected positive relationship is found between the extent to which the managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences. An expected negative relationship is found between the extent to which the Chinese partner firms have adopted cultural management policies and the perception of national culture difference, but is not found for the perception of corporate culture difference. The authors find no support for the expected negative relationship between cultural sensitivity and the perception of national and corporate culture differences. Adoption of cultural management policies moderates the relationship between the extent to which managers have experienced culture-related management impediments and their perception of corporate culture difference, but not their perception of national culture difference. It was also found that the degree of cultural sensitivity moderates the relationship between the extent to which the Chinese managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences.     

Modelling CSR: How Managers Understand the Responsibilities of Business Towards Society

The purpose of this article is to develop a model of how managers perceive the responsibilities of business towards society. The article is based on the survey responses of more than 1,000 managers in eight large international firms. It is concluded that the managerial perceptions of societal responsibilities differ in some respects from the mainstream models found in the corporate social responsibility (CSR) and business ethics literature. The article is an output of RESPONSE: an EU- and corporate-funded research project on managerial perceptions of CSR.     

Decision making behavior in smaller entrepreneurial and larger professionally managed firms

The main findings in this study are that: • Entrepreneurs from smaller firms are less comprehensive in their decision behavior than professional managers from larger firms, with comprehensiveness defined as the degree to which an individual follows a formal rational decision process; • As decision comprehensiveness declines, so too does organizational performance, both among entrepreneurs and professional managers.The present study was based on the responses of 15 entrepreneurs from smaller firms averaging 25 employees and 13 CEOs and other top level corporate executives from larger, more professionally managed firms averaging 740 employees. The firms were randomly selected from a list of mid-Atlantic electronic manufacturing firms. Field interviews and questionnaires were employed, as well as a decision scenario involving a series of questions to which the entrepreneur or professional manager responded.After reviewing the literature on entrepreneurship, the researchers noted that most of it focused on developing profiles of entrepreneurs—for example, that they were high achievers, impatient and made decisions quickly. However, little—if any—research has focused on the behavior of entrepreneurs, particularly when compared to that of professional managers. Given this gap in the research, a field study was designed to compare the decision behavior of entrepreneurs and professional managers. It was expected that entrepreneurs would be less comprehensive than professional managers, but given previous research on comprehensiveness, it was difficult to predict the consequences of this less comprehensive model for performance.The researchers note in the discussion and conclusion that the results of the study have major implications for entrepreneurs and professional managers. Granted that decision comprehensiveness should be emphasized, they question the ability of entrepreneurs to change their decision behavior. It is argued that many of the drawbacks of comprehensiveness can be overcome by more sophisticated planning techniques and information processing systems. The paper concludes by stressing the need for research on techniques and ways to train entrepreneurs and managers to be more comprehensive.In summary, the present study has produced some important preliminary findings. It confirmed in larger scale studies, they could have major implications for the manner in which entrepreneurs and professional managers are trained and developed.     

Part-time restaurant employee perceptions of management practices: An empirical investigation

The UK hospitality industry increasingly relies on part-time rather than full-time employees to provide more flexible and cost-effective operations with potential trade-offs for service quality. Part-time employees can be divided into two distinct groups – permanent and temporary – each with very different employment rationales. This study compares full-time and part-time employee perceptions of management practices across twelve Cardiff-based restaurants using a self-administered questionnaire. There were significant differences between full-time and part-time employees but no difference between temporary and permanent part-time employees who were equally dissatisfied with management practices, job attitudes and job behaviours. The qualitative data showed the two part-time employees' sub-groups had different needs. Despite this they were treated as a homogenous group by managers. Lack of management understanding of part-time staff impacts on how they are treated and ultimately on service quality and customer satisfaction.     

A Comparison Study of Manufacturing Industry in Taiwan and China: Manager's Perceptions of Environment,Capability, Strategy and Performance

This article compares managers' perceptions of environment, capability, strategy and business performance in Taiwan and China. Based on an analysis of survey data collected from the fastener industry, results show that the industrial environment and network capability are significantly associated with performance in China, but not in Taiwan. The findings highlight the difference between actual and perceived situations which results from what specific context decision makers find themselves in and how they allocate attention to specific issues. In addition, path analysis reveals that both organizational and network capability of Chinese firms are significantly associated with strategy and performance. This demonstrates that the strategy selected by the Chinese firms as a mediator influences their performance. Implications of these findings are discussed.     

An Exploratory Approach to Evaluating Performance Measures: The Managers' Perspective

It is commonly agreed that firm performance is a multi-faceted construct. Lacking a single accepted method for performance, managers are often judged by a mechanism they do not know or understand. This paper utilises a bottom-up approach to investigate manager perceptions of the important dimensions of performance in the hotel industry, and their evaluations of achievements in these dimensions. The paper offers a qualitative technique that characterises the managers' profile in a two-dimensional space of performance. One dimension is a composite of production-oriented indicators of performance, and the other is a composite of service-oriented indicators of performance. The findings indicate that most managers lack a focus and do not differentiate between production and service indicators of performance. The qualitative technique can be utilised for gauging manager perceptions of performance and for evaluation and feedback for manager performance.     

U.K. SMEs' decision to discontinue exporting: an exploratory investigation into practices within the clothing industry

Although the decision to internationalise has been viewed in certain studies as an entrepreneurial act, research has also indicated that some firms may be better served in concentrating on their domestic market, depending on a number of internal and external considerations associated with the profitable exploitation of identified opportunities. This investigation reports on first, reasons why a sample of executives from small firms discontinued export activities and second, perceptions towards policy assistance that may motivate them to recommence overseas activities in the future. Analysis in this study establishes that differences exist between two distinct groups of firms, namely, those indicating their discontinuation of exporting was a short-term measure compared with those that viewed the decision as longer term. Entrepreneurial learning was found to be present in firms that influenced some managers to overcome identified obstacles and engage in alternative modes of international activity to the export route, whereas others decided to pursue domestic opportunities. The study provides recommendations for policymakers in the provision of trade assistance programs.     

Do Retailers Benefit from Deploying Customer Analytics?

Prior research has documented a general positive relationship between the deployment of customer analytics and firm performance. In this research we focus on the retailing industry, an industry characterized by tight margins that lead to careful scrutiny of all business investments. Using survey data from 418 top managers based in the Americas, Europe Middle East and Africa (EMEA) and Asia, we show that of the eight industries in the study, firms in the retail industry have the most to gain from deploying customer analytics. However, we also find that not only do many retailers not perceive this potential gain, they do not invest in customer analytics at an economically appropriate level. Thus we identify a gap between perception and reality concerning the potential for customer analytics in the retail industry that has both theoretical and practical implications.     

Environmental strategy and exports in medium,small and micro-enterprises

Growing corporate internationalization and the emergence of environmental concerns are two of the main trends in the business world. This paper analyzes whether strategies for environmental protection can help small and medium enterprises (SMEs) as they internationalize their activities through exports. Personal interviews were conducted with 123 general managers of exporting SMEs from the Spanish food industry. The results show a relationship between advanced environmental strategies and export intensity for the sampled firms. However, the size of firm plays a role in this relationship, as the relationship between advanced environmental strategies and exports is stronger with an increase in the size of the SMEs. Authors discuss implications of these results for practitioners and future research.     

Differences in managerial behavior between small international and non-international firms

The main question raised in this article is whether there are any differences between the work activities of managers in small firms primarily operating on an international market and those managing firms doing business on a domestic market. If so, what are these differences, and what do they tell us about the internationalization of small firms? The comparative method used here is based on multiple approaches including interviews, diary studies, and direct observations. The conclusions indicate that managers in small international firms are more proactive in their networking behavior, delegate operative activities, and devote more time to planned strategic activities connected with their international expansion than managers in other small firms.     

Fashion: the design–marketing mismatch?

This paper is based on an empirical research programme undertaken to explore the clothing and fashion perceptions of design and design-related versus management-related students. It is proposed that there is a cultural divide between design and management students, which could extend into Company life — with implications for organizational effectiveness. The paper therefore explores aspects of the U.K. fashion industry, such as its recent performance and the perceptions of the embryo designers and managers.     

Inter-firm learning and knowledge-sharing in multinational networks: An outsourced organization's perspective

This research provides insights into how learning and knowledge are exchanged multinationally between customer firms and their outsourced suppliers who provide non-core, yet essential, services. The paper seeks to understand: (1) how information is exchanged in these networks; (2) how cumulative knowledge adds value in these networks; and (3) how boundary-spanners assist in the dissemination of knowledge and learning within the network. Based on a pharmaceutical industry case, the results suggest that: (a) multinational firms operate more effectively and interact by sharing knowledge with outsourced firms which reflect the customers' structure and fit; (b) networked firms benefit from interactions through economies of scope, but knowledge is not necessarily shared equally among partners; (c) learning and knowledge-sharing interactions are tightly coupled at the product development stage; and (d) outsourced firms interact with external boundary-spanners as needed. The research provides insights for managers of multinational organizations and managers of firms from where essential services are outsourced.