Team Climate,Team Cognition,Team Intuition,and Software Quality: The Moderating Role of Project Complexity

Teams represent a prevailing approach to getting work done in today’s hypercompetitive business environment. Although there is a widely held assumption that team-related capabilities determine the success of new product development projects, empirical research on team capabilities is scant. Based on the resource-based view of the firm, organizational learning theory, and situated learning theory, this study investigates the interrelationships among team climate, two information-processing capabilities (i.e., team cognition and team intuition), and software quality. As well, this study explores the moderating effect of project complexity between the information-processing capabilities and the quality of the software. In studying the data from 139 software development projects using the partial least squares structural equation modeling methods, we found that team climate has a direct influence on team cognition. Moreover, the findings showed that team cognition was positively related to the quality of the software product in general; in particular, this relationship was found to be far more significant when project complexity was used as a moderator. This finding indicates that the software development team’s ability to process information logically in order to interpret situations effectively allows the team to launch superior software products when unexpected and undesirable events make a project complicated and challenging to perform. In particular, managers should encourage teams to benefit from new ideas and make collective efforts for reaching goals. Managers should also enable teams to specialize in their tasks and improve their collective information-processing capabilities.     

The influence of strategic patterns of internationalization on the accuracy and bias of earnings forecasts by financial analysts

This paper examines how financial analysts’ earnings per share forecasts are affected by strategic patterns that multinational firms have used to expand abroad. Prior empirical studies have examined a firm's internationalization level as a one-dimensional construct involving increased task complexity for financial analysts’ forecasting and therefore resulting in lower accuracy and greater optimistic bias in earnings forecasts. In contrast, we use two strategic patterns of internationalization associated with geographic dispersion and cross-border integration to characterize a firm's international strategy, and find different empirical results using a sample of U.S. public companies with domestic and international operations. The empirical evidence suggests that geographic dispersion contributes to increases in forecasting accuracy and decreases in optimistic bias. Further, the results support that cross-border integration leads to decreases in forecasting accuracy. The two strategic patterns of internationalization are a consequence of managerial choices and therefore these results are important for managers, investors and shareholders as they help explain the linkages between international strategies and earnings forecasts by financial analysts.     

Antecedents and performance effect of managerial misperception of institutional differences

This study examines managerial misperception of institutional differences between countries—the deviation of managers’ perceived differences from actual ones. Drawing on a bounded-rationality perspective and an information-based view, we theorize about the effect and contextual antecedents of managerial misperception of country differences. Examining data from 186 managerial assessments confirms a negative relationship between managerial misperception and firms’ host-country performance, providing evidence for the relevance of this construct for international-management research and practice. Furthermore, in line with our theory, we find support for a direct impact of variables determining information-access opportunity and information-processing complexity as contextual antecedents of managerial misperception.     

Disseminative capacity and knowledge acquisition from foreign partners in international joint ventures

We developed a theoretical model that examines the impacts of a foreign parent’s disseminative capacity on knowledge transfer to International Joint Ventures (IJVs). We tested our model with data from 199 IJVs in South Korea. We found empirical support for our arguments that the foreign parent firm’s codification and articulation ability, willingness to share knowledge, and frequent and effective use of communication channels determined the extent of knowledge acquisition by the local IJV partners.     

Advancing marketing strategy in the marketing discipline and beyond: from promise,to neglect,to prominence,to fragment (to promise?)

ABSTRACT

The purpose of this article is to advance the field of strategic marketing within the marketing discipline, which will in turn, the author argues, contribute to enhancing the discipline’s impact beyond the narrow confines of its own journals. Towards this goal, certain aspects of the history of marketing strategy need to be reviewed. However, though this article draws extensively on historical sources, it is not a history of marketing strategy. Rather, this article uses historical materials and arguments concerning the four ‘Eras’ of marketing thought to advance five major claims: the area of strategic marketing (1) had significant promise when the marketing academic discipline was founded in Era I (1900–1920), (2) was neglected in Era II (1920–1950), (3) rose to prominence in Era III (1950–1980), (4) has become a ‘fragment’ in Era IV (1980–present) and (5) has prospects that are both promising and problematic in the future ‘Era V’. Finally, a tentative prognosis for strategic marketing and the marketing discipline is suggested.     

Internationalization process,impact of slack resources,and role of the CEO: The duality of structure and agency in evolution of cross-border acquisition decisions

This paper examines how the internationalization process evolves. We do so by examining the cross-border acquisition (CBA) decisions of multinationals under the contingent impact of slack resources and CEO power and influence. Grounding our arguments in Giddens’ (1984) structuration theory, we identify how and why path-dependencies associated with CBA decisions give way to strategic change, demonstrating the duality of structure and agency in this evolutionary process. Further, we show that organizational slack and CEO overconfidence affect this relationship, albeit in dramatically different ways. Our hypotheses are tested on a large sample of 4812 CBAs of U.S. firms during 2000–2010, across 41 industries and in 44 target countries. The results hold for acquisition trajectories of multinationals in both categories of CBA decisions: majority as well as minority-owned.     

Founder CEOs,personal incentives,and corporate social irresponsibility

This study integrates organizational identity (OI) theory and upper echelons theory to explore the impact of CEOs’ founder status on corporate social irresponsibility (CSI). We theorize that compared with other CEOs, a founder CEO is more likely to generate a high degree of OI with the firm, which will drive the founder CEO to actively avoid CSI that may damage the positive image and long-term development of the firm. Furthermore, we argue that CEO duality and CEO ownership will strengthen the aforementioned relationship by increasing the possibility of founder CEOs generating a high degree of OI. Conversely, CEO underpayment will weaken the relationship between founder status and CSI by decreasing the possibility of founder CEOs generating a high degree of OI. We obtained empirical evidence in support of our arguments from a large Chinese private listed company dataset. Overall, this study’s theory and evidence clearly show that founder status and personal incentives can jointly shape CEOs’ CSI decisions, thereby providing useful insights for corporate shareholders and government agencies to better prevent and govern firms’ CSI.     

Understanding the negativity effect: The role of processing focus

Numerous studies have demonstrated that negative information has a stronger influence on overall impressions than does positive information of equal intensity. Recent attempts to explain this phenomenon with evolutionary arguments show strong potential for predicting how and when the effect will be manifested. This paper tests information-processing implications of one evolutionary perspective (Peeters and Czapinski, 1990), finding general support. In particular, empirical evidence indicates that processing of negative information is relatively less subjective and more integrative in focus than processing of positive information.     

Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage

This study attempted an empirical investigation of whether and how a corporate investor can enhance future growth opportunities through corporate venturing investments (CVIs). Different from previous studies, we assessed the firm-level performance impact of a CVI portfolio with a focus on two configuration features: within-portfolio diversity and strategic linkage. Based on a longitudinal dataset of CVIs made by Taiwanese technology-based companies, we found that increasing CVI portfolio diversity and maintaining strategic linkages, particularly vertical ones, between the portfolio companies and the investing firm's core business will add value to the investing firm's future growth. Implications for CVI strategy and opportunities for future research are also discussed.     

Does easy start-up formation hamper incumbents’ R&D investment?

This paper investigates the implications that complementary assets needed for the formation of start-ups have on the innovative efforts of incumbent firms. In particular, we highlight a strategic incentive effect by which the innovative efforts of incumbents are decreasing in the availability of the complementary assets needed for the creation of a start-up. Furthermore, we argue that the R&D investments of incumbents are positively related to the presence of policy support to innovation, and to the firm’s endowment of human capital. The empirical relevance of our theoretical hypotheses is investigated—and supported—by using firm level data.     

Strategy shift: Integrating strategy and the firm’s capability to innovate

Innovation is a key source of organizational growth and profitability. Many organizations at the front end of innovation struggle to engender an innovation approach that is effective and lasting. This article presents a framework that defines the interdependency of innovation and strategy, and then outlines the role of top management to continuously renew the positioning of the firm. Based on a synthesis of prior research—including the Dynamic Capabilities View, Innovation Orientation, and Disruptive Innovation Theory—and our own experience working with organizations, we present an operational strategy shift framework, which allows practitioners to increase, refine, and transform their firm’s capability to innovate (CTI) toward achieving their strategic objectives. This framework provides guidance that leaders can use to integrate innovation into their strategic process.     

Accountability and the public benefit corporation

Can benefit corporations be held accountable for delivering requisite public goods? An oft-cited criticism is that they cannot, but little empirical research exists to support that claim. Based on an in-depth case study of the oldest corporation to amend its governing documents as a public benefit corporation (PBC) under Delaware law, this article suggests that a company can be held accountable for delivering requisite public goods when external mechanisms are accompanied by an organization’s internal commitment to self-awareness, learning, and measurement. In the case in question, the company established a three-pillar structure focused on professional engagement, community support, and charitable giving built on a 6-year-old sustainability initiative, accompanied by an adaptive learning culture, and driven by top-down and bottom-up efforts. Current challenges include measuring impact and branding the PBC to grow the company’s business.     

Talent management and career development: What it takes to get promoted

Based on the talent management literature, this paper investigates managerial skills that are essential for managers’ job promotion. Using arguments from the human and social capital literature and following tournament logic, we claim that a manager's own experience, expertise, and network size positively affect promotion odds, while strong colleagues decrease promotion odds. Studying 7003 promotions to middle management and 3147 promotions to senior management, we find broad support for our hypotheses, but find also that network size no longer predicts promotion to senior management. Our findings have implications for individual career development and talent management programs.     

Managing future uncertainty: Reevaluating the role of scenario planning

The business environment for many firms is changing rapidly and is becoming increasingly uncertain due to the disruption caused by new digital technologies, deregulation, new business models, and the threat of new competitive entrants. This dynamic competitive environment increases the level of uncertainty for senior executives and strategic planning teams who bear responsibility for the strategic development of the firm, particularly in terms of the future direction, scope, and the strategy required to deliver on corporate objectives. This in turn, places increased scrutiny on the strategic planning tools that are used to undertake a rational and comprehensive analysis of the competitive dynamics that inform strategy formulation. This article presents empirical findings and reflections on a scenario-planning project that sought to develop a long-term corporate level strategy. While scenario planning is an established constituent of the strategist’s toolbox, the increasing level of dynamism and uncertainty in many markets has meant that it has seen a resurgence. This article presents empirical findings on how the scenario-planning tool was selected and applied before reflecting on the individual and organizational outcomes of using scenario planning to develop an organizational strategy in uncertain market conditions.     

Pay-for-performance – Does one size fit all? A multi-country study of Europe and the United States

Are there country-level differences in the use of pay-for-performance in executive compensation contracts? We investigate how formal country-level institutions affect pay-for-performance directly and if institutions have a moderating effect on the relation between ownership structure and pay-for-performance contracts. Based on agency theory arguments, we show that substitutionary and complementary relations are conceivable, for the direct and the moderating effect. We conduct an empirical analysis based on 2766 firm-year observations for the years 2005–2008. Our empirical results show that whereas strong shareholder protection substitutes pay-for-performance, disclosure requirements complement pay-for-performance. Additionally, strong shareholder protection complements the effect of concentrated ownership on pay-for-performance while disclosure requirements substitute effects of ownership concentration. Overall, our results provide evidence for the relevance of formal institutions as determinants of executive compensation contracts. Additionally, our results indicate the general complexity of integrating institutions and internal governance mechanisms.     

Unpacking the Antecedents of Crowdfunding Campaign’s Success: The Effects of Social Media and Innovation Orientation

We applied a capabilities view as the theoretical underpinning to investigate the integrative role of orientation (IO) and the strategic use of social media (SSM) on a firm’s crowdfunding campaign success (CFS). We suggest that IO promotes a firm’s ability to succeed with crowdfunding campaigns, and that this relationship is mediated by the SSM. To check our contentions, we surveyed professionals from 322 firms that conducted crowdfunding campaigns. For IO and SSM, we used preexisting scales, while for CFS we created and validated our own seven‐item scale. We found that IO alone does not fully account for CFS, but rather its effect is based on a firm’s ability to SSM. Our findings contribute to the literature on strategic entrepreneurship, media strategy, and public policy.     

Rags to riches? Entrepreneurs' social classes,resourceful time allocation,and venture performance

Social classes shape entrepreneurial pursuits in that entrepreneurs from lower social class groups face more resource deficiencies compared to those from higher social class groups. In this study, we theorize that being resourceful with a particular resource—time—helps ventures run by lower-class entrepreneurs achieve better performance. However, we further argue that the extent to which entrepreneurs use time resourcefully is affected by the cognitive schemas stamped on them by their social class backgrounds. Our empirical analysis of 8663 Chinese private entrepreneurs between 2006 and 2010 lends robust support to these arguments. By revealing both material and cognitive constraints stemming from entrepreneurs' social classes, our study contributes to research on social classes and entrepreneurial resourcefulness and has important implications for understanding the persistence of inequality in entrepreneurship.     

Institutional duality and political strategies of foreign-invested firms in an emerging economy

This study investigates how the complex institutional environment surrounding foreign-invested firms (FIEs) affects their corporate political strategies (CPS) in China. Analyses of data on 442 FIEs operating in China show that the relative potency of dual institutional pressure from FIEs’ home and host countries shapes their strategic choices. Institutional factors at the country, region, and firm levels not only affect firms’ adoption of multiple firm-based tactics but also shape their collective-oriented associational activities. Moreover, participation in both foreign and domestic business associations enhances an FIE's adoption of firm-based political tactics, but joining domestic business associations has a stronger effect.     

Spatial dependencies and spatial drift in public transport seasonal ticket revenue data

When firms' customers are located in spatially dispersed areas, it can be difficult to manage service quality on a geographically small scale because the relative importance of service quality might vary spatially. Moreover, standard approaches discussed so far in the marketing science literature usually neglect spatial effects, such as spatial dependencies (spatial autocorrelation for example) and spatial drift (spatial non-stationarity). We propose a comprehensive approach based on spatial econometric methods that covers both issues. Based on the real company data on seasonal ticket revenue of a local public transport service company, we show that addressing such spatial effects of service data can improve management's ability to implement programs aimed at enhancing seasonal ticket revenue. In particular, the article shows how a spatial revenue response function might be specified.     

The Effect of Board Characteristics on a Firm＇s Strategic Change

The purpose of this study is to identify the relationship between the characteristics of the board of directors and strategic change of a firm in the Chinese context. In this study, strategic change is defined as strategic deviation relative to industry norms and strategic variation relative to historical experiences. The size, independence and leadership structure of the board of directors are defined as the board characteristics. We then propose hypotheses on the effects of board characteristics on a firm＇s strategic change. This study takes strategic resource allocation profile as measure to calculate strategic deviation and strategic variation, and then empirically tests and verifies the hypotheses using data from Chinese publicly listed companies in the information technology industry from the year 2006 to 2010. We find that the size, independence and leadership structure of the board of directors significantly affect both strategic deviation and strategic variation. Therefore, we conclude that board characteristic affects a firm＇s strategic change. The conclusion of the study indicates that moderate reductions in the size of the board, increasing the proportion of independent directors and separating the roles of chairman and chief executive officer can facilitate promoting the process of strategic change for a firm in a dynamic environment. Through this study we re-examine the role and significance of the board of directors in strategic decision-making for a firm, and provide useful suggestions on how to form a board that can meet the needs for strategic change for a firm in a dynamic business environment.