A processual analysis of the purchasing and supply organization in transition: the impact of offshoring

Many companies have resorted to offshoring in order to reduce costs and grow their global market presence. Yet it remains unclear what impact the offshoring strategy has on the purchasing and supply organization (PSO) of these companies. In this paper the nature and type of changes offshoring organizations make within the PSO are examined, i.e. how new purchasing and supply management (PSM) structures and practices emerge, are maintained or are discarded as production operations are relocated. The processual perspective is used to analyze empirical data from a rich, in-depth case study within a global engineering company. Results suggest that in line with the law of requisite variety the PSO changes thoroughly when the company relocates its production activities through the captive offshoring mode, but does so in a more disjointed and non-linear manner than the current stage models would suggest. The offshoring process provides momentum for PSO change and influences where and how the change happens. We present five propositions for further research and conclude that offshoring provides managers with opportunities to: (i) change and influence the strategic direction of PSM in their organizations, and (ii) build viable strategies of retaining and managing knowledge and PSM competencies in global operations.     

Exploring networks of proximity for partner selection,firms' collaboration and knowledge exchange. The case of clean‐tech industry

Nowadays scholars widely recognize that know‐how, capabilities and knowledge needed to generate innovations often reside outside the firm, start‐ups are a valuable source, and collaborative networks are a fundamental strategy for innovation. This is true especially for the clean‐tech sector, which is characterized by the continuous search for innovative solutions and technological advancements. The purpose of the paper is to provide a methodological support for the screening of potential partners based on network analysis and, then, help firms to select them for collaboration and knowledge exchange. The methodology can be easily adopted by managers and executives to identify firms to monitor with greater attention for future investments. The analysis is on a dataset of 4,782 clean‐tech companies operating worldwide. Results highlight that energy companies looking for external sources could investigate their network of business proximity if they intend to specialize in a defined field and/or collaborate with similar partners, while they could explore their network of strategic proximity if they intend to diversify their businesses, that is cooperating and exchanging knowledge with firms with distant but complementary capabilities and resources.     

Designing business models in circular economy: A systematic literature review and research agenda

The concept of circular economy is increasingly receiving attention in different domains, including strategic management, operations management, and technology management. It requires companies to design their business model (i.e., the value network, the relationships with the supply chain partners, and the value propositions towards customers) around a new concept of sustainable development that reduces consumption of natural resources and preserves the environment. However, extant research falls short in terms of explaining how companies design their business model according to the circular economy principles. Starting from this premise, the present paper provides a systematic review of the literature on the design of business models in the context of circular economy, aiming to offer an overview of the state of research and outline a promising research agenda.     

Global virtual teams: a human resource capital architecture

As organizations continue to globalize their operations, it will become evident that most organizations do not have the resources to ‘fully man’ operations throughout the world. Therefore, management will be examining organizational options that reduce the demand on an already depleted pool of global managers. One of the options being examined by companies is the global virtual team (GVT). These complex teams are being considered as a bridge mechanism to allow multinational organizations to expand rapidly without taxing present global managerial skills. This paper uses a theoretical foundation based upon competency theory as the motivation for the formation of GVTs and to explain how they function. Four critical capitals (i.e. human, social, political and cross-cultural) are deemed to be essential for effectiveness of GVT and are discussed in the paper. In addition, a process for assessing the stock of capital in a GVT team is also developed in the paper.     

Network capitalism: the role of human resources in penetrating the China market

In the West, there is growing awareness that connections can be pivotal to a firm's success in gaining competitive advantage in the global arena. This paper compares Western networking with guanxi (connections) prevalent in Confucian societies. Guanxi are built between and among people. Hence the effective deployment of human resources is critical to the success of building such relationships. Data from forty West European multinationals with operations in China were collected. Where relevant, these were compared with the findings of Hong Kong firms in China. Specifically, the paper examined (1) how large European multinationals perceive the characteristics of guanxi ; (2) the importance of guanxi for market entry and long-term success in China; and (3) how guanxi is built and maintained by European companies in China. While the European companies have been able to establish a presence in China, their moderate level of satisfaction with performance there may be attributable to their inability to build very strong and appropriate guanxi with the relevant authorities. This may stem from their use of expatriates to staff senior management positions and insistence upon sole or majority-equity ownership to allow for maximum control. The implications for international human resource management are discussed.     

Managing business processes across supply networks: the role of coordination mechanisms

The theory of network coordination provides a theoretical basis to explain how companies can overcome organizational boundaries and constraints to jointly manage business processes across supply networks. In particular, this paper focuses on Collaborative Planning, Forecasting and Replenishment (CPFR), a collaboration process whereby supply chain trading partners activate inter-firm coordination mechanisms to jointly plan key supply chain activities, from production and delivery of raw materials to production and delivery of final products to end customers.By discussing three case studies of CPFR implementation in supply networks of different industries–i.e. pharmaceutical, automotive and mechanical–the paper provides a theoretical framework that contributes to explaining the relations between inter-firm coordination mechanisms and the characteristics of interdependence among the actors involved in CPFR implementation.     

Exploring the antecedents of born-global companies’ international development

In recent years the emergence of so-called born-global firms -firms which start their international activities from their start up- has challenged traditional theoretical assumptions about the incremental process of internationalization, giving birth to the development of a new stream of studies. In order to give a contribution to this area of studies, the purpose of this paper is to empirically test a model to explain how well some factors are able to explain the level of international development of born global companies. A mail survey was conducted within a sample of born-global Italian companies, belonging to the most representative industries for the Italian economy (metal products and machinery equipment; furniture; chemicals and food). Findings support the validity of a model including five significant predictors: uncertainty and dynamism in the firm’s industry, operating in niche-based industries, markets’ and segments’ knowledge held by the founder/managers, product innovation and firms’ innovativeness, access to networks. Findings are discussed and managerial implications are drawn.     

高层管理团队特征与企业国际化绩效关系的实证研究——以我国服务业上市公司为例

本文主要从高管团队特征的均值和异质性两个方面进行分析,构建了多元回归方程,通过实证研究检验了高管团队的年龄、任期、国际经历、教育水平、团队规模、政府背景等特征对企业国际化绩效的影响。基于研究结论,从高管团队建设的角度上提出了相关的对策建议。     

Emergence of innovation networks from R&D cooperation with endogenous absorptive capacity

This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of dynamic cooperation between firms occupying different locations in the knowledge space. Partner selection is driven by absorptive capacity which is itself influenced by cognitive distance and R&D investment allocation. Under different knowledge regimes, we examine the structure of networks that emerge and how firms perform within such networks. We find networks that exhibit small world properties which are generally robust to changes in the knowledge regime. Certain network strategies such as occupying brokerage positions or maximising accessibility to potential partners pay off, especially in ‘young’ industries with limited involuntary but abundant voluntary spillovers. This particular result is driven by endogenous absorptive capacity.     

Supply chain configurations in a global environment: A longitudinal perspective

In the last few years, companies have paid growing attention to the management of their supply chain at a global level. The need for better suppliers, international competition and research of specific competences have forced companies to improve their ability to cope with suppliers and customers located in different countries around the world. This paper aims to provide an overview of how manufacturing companies use global supply chains and how their behaviour changes over time. Longitudinal data from a sample of companies from the last two editions of the International Manufacturing Strategy Survey (IMSS) are used. A contingent analysis of manufacturing localization and globalization is also considered in order to identify factors influencing supply chain globalization strategies. Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Collectively created opportunities in emerging ecosystems: The case of solar service ventures

This study suggests that in the entrepreneurial communities of emerging industries, individual entrepreneurs may simultaneously create opportunities that spill over to others and discover opportunities already created by others. Extant opportunity literature, focused on single actors and their personal networks or on the information function of market prices, is largely mute on the role of opportunities in value networks with distributed entrepreneurial efforts. Ecosystem theory, a literature stream that seldom intersects opportunity literature, contributes with a conceptual framework to study the question. The paper seeks to shed light on how opportunities are created or discovered by new ventures as they are involved in the interlinked endeavor of forming a new ecosystem.The study examines five case studies of US ventures in the early phase of the solar service industry, an industry in which entrepreneurs offer customers access to solar panels as a service rather than as a product. These ventures inadvertently created an industry ecosystem together, as they could not protect the value created by their business partners׳ new knowledge, or by the emerging social webs between partners. They shaped opportunities together, passing value back and forth amongst themselves. This paper offers fundamental observations on how opportunity creation and discovery is distributed among a community of entrepreneurs as a business ecosystem grows.     

Local complexities and global uncertainties: a study of foreign ownership and human resource management in China

Drawing on qualitative data, this paper examines developments in human resource and employment policies and practices among a sample of joint venture and wholly owned foreign enterprises operating in China. The research reveals that the effects of parent company nationality and ownership form were most visible in the areas of remuneration, worker representation and aspects of employee selection. There was, however, little overt involvement of multinational parent companies in the management of human resources of their Chinese operations. The trend was towards indirect reporting relationships with regional sub-units of multinational companies rather than direct links with the parent headquarters. Overall, these intermediate sub-units were playing an important role in the integration of Chinese business units in the global management systems of multinational companies.     

Exploring factors relating to extinction disclosures: What motivates companies to report on biodiversity and species protection?

This paper seeks to contribute to the existing business strategy and the environment literature by investigating the disclosure practices of biodiversity/extinction (B/E) and threatened species. We use greenwashing theory to understand global companies' motivation to report on B/E information. Data are collected from 200 Fortune Global companies for 3 years. We develop our comprehensive 53 disclosure index and create and test OLS regression model to measure the relationships between B/E disclosures and its determinants factors including environmental performance, industry sector, country, assurance, environmental awards, presence of biodiversity partners, and the number of species' related disclosure. Our results reveal that there are positive significant relationships between B/E disclosure and assurance provided by the Big 4: gaining an environmental award, companies from high biodiversity risk sectors, developing countries, presence of biodiversity partners, and how many specific biodiversity words are published in companies' reports. On the other hand, there are positive insignificant relationships between B/E disclosure and assurance: poor performers and the number of species disclosed in companies' reports. Our findings have important implications for regulators and policymakers. Our evidence appears to be robust when controlling for possible endogeneities.     

Managing supply chain risk and disruption from IT security incidents

Supply chain practices often put companies and their supply chains at risk. One of the most serious risks is disruptions. While many types of disruptions have been considered, little attention has been given to disruptions caused by information technology (IT) security incidents. Partner cooperation can assist in preventing or mitigating damage from IT security breaches in supply chains, where breaches can disrupt production, cause loss of essential data, and compromise confidential information. We develop a generalizable mathematical model that quantifies IT security risk in the supply chain. We then show how to find solutions for optimal risk reduction under several definitions of optimality: minimizing upstream risk, minimizing downstream risk, and minimizing global (supply chain) risk. We show how to develop curves for each of the above scenarios that indicate when extra funds should be spent on security, which security controls should be implemented, and when subsidies among partners are beneficial.     

Integrative retail logistics: An exploratory study

Grocery retail companies have gone through a transformational change in the past by heavily investing in distribution centers of their own and by expanding their logistics activities. As a result, many retailers are now in the process of better adjusting their logistics operations to their specific requirements against the backdrop of raising pressure in a highly competitive environment. In this light, we provide an exploratory study based on semi-structured face-to-face interviews with 28 leading European grocery retailers. First we examine the current strategic designs of grocery retailers’ internal logistics networks. Next, we shift our focus to the resulting interdependencies in tactical supply chain planning between instore operations and upstream logistics processes. We have identified five interdependent planning issues: order packaging unit, store delivery pattern, store replenishment lead time, store delivery arrival times and arrival time windows, as well as roll-cage sequencing and loading carriers. Each of these mid-term planning interdependencies is evaluated with regard to implications in the stores, in transportation and in the distribution centers. The mid-term operations planning issues in the grocery retail industry considered in this paper have remained practically unexplored up to now. The outcome of this empirical research study therefore has substantial relevance for future retail research and practice.     

The local in the global: regions,employment systems and multinationals

This article examines how the international competition to attract and retain foreign direct investment shapes the governance of business and employment systems. Through an examination of global production networks and the changing role of the state in economic governance, it highlights the sub‐national regional space as an important level of institutional adaptation. Specifically, it explores how regions organise themselves to compete for inward investment, and the potential role of industrial relations actors within this. It argues that both research into multinational companies, and of the governance of employment systems more generally, need to incorporate an analysis of regional competition for productive investment more fully into their analysis.     

Bridging social and technical interfaces in organizations: An interpretive analysis of time-space distanciation

Contemporary organizations increasingly rely upon information technologies as platforms for their core work processes. The Internet age has witnessed the creation of new business models based almost entirely on electronically-mediated business processes involving multiple organizations. Information systems link suppliers, manufacturers, logistics companies, and other partners, allowing organizations to add value using smaller investments in physical assets. The creation of these linkages establishes both technical and social interfaces between organizations and their business partners. We apply Giddens’ concept of time-space distanciation to analyze the interfaces in iTalk, an organization in Silicon Valley hosting Internet voicemail services. iTalk achieved initial success in bridging external social and technical interfaces with the major regional telephone companies in US, allowing their voicemail service to attract millions of subscribers. In effect, iTalk used information technologies to dis-embed social and technical elements from global systems (the telephone companies) and re-embed them as part of iTalk’s local organizational presence. However, iTalk was unable to provide a sufficiently reliable service to customers as volume increased. Ironically, bridging external interfaces created internal interfaces within iTalk, which in turn produced technical problems and social conflicts that were not satisfactorily resolved by the time iTalk was acquired by a larger media company in 2001. The study provides theoretical understanding of the challenges associated with creating and sustaining social and technical interfaces in organizations that rely heavily upon electronically-mediated business processes that cross organizational boundaries.     

Forefronts of the Sharing Economy: Uber in Cape Town

The sharing economy, often phrased as ‘platform capitalism’, enables firms such as Uber and Airbnb to monetize, through specific technologies of mediation, the networks, the assets and the precarious labour of those who are described as ‘the entrepreneurs of sharing’. This article explores the urban geographies of ride‐sharing in the marketization of Uber in Cape Town, South Africa. I use empirical evidence collected during the first phase of its operations in the city, between 2013 and 2015, to show how Uber relied upon the developmental entrepreneurialism of Cape Town to embed its ride‐sharing market locally, and how the drivers enacted multiple technical, economic and ethical regimes within and without the constraints of the software platform. The research presented in this article thus contributes to understanding how the discourses of millennial development, with its promises of entrepreneurial empowerment, are adopted by global sharing‐economy firms to enact their markets in the global South. It also reveals how a different genealogy of Uber's urban transactions offers an alternative perspective on the normative rationalities of the sharing economy and on the diverse economies that exist in relation to platform capitalism in the global South.     

Why Do Some Multinational Firms Respond Better Than Others to the Hostility of Host Governments? Proximal Embedding and the Side Effects of Local Partnerships

Using a multiple-case study of alleged expropriations reported before the World Bank, we examine how multinational companies (MNC) react to the escalating hostility of host governments. Our study reveals how different choices regarding the interaction with local nonmarket stakeholders – which we refer to as proximal vs. mediated embedding – shape how managers respond to these disputes by affecting their ability to collect, process and interpret information, and to act upon it in a way that effectively mobilizes local and international support. In contrast to the prevailing view that local partners in international joint ventures shelter MNCs from abuse from political authorities, our findings show that primary reliance on local partners to manage the local nonmarket environment can actually reinforce a liability of outsidership and even create a ‘liability of insidership’, to the extent that relying on local partners prevents the MNC from establishing quality connections with a broad range of nonmarket stakeholders, reducing its alertness and responsiveness to hostile acts from host governments.