Recasting Enterprise Strategy: Towards Stakeholder Research That Matters to General Managers

As well as specifying functional, business unit, and corporate levels of strategy, early strategy scholars delineated enterprise level strategy as the uppermost level of strategy. Enterprise strategy articulates how the firm engages with actors in its economic, social, and political environment to ensure long‐term corporate performance. As a growing body of evidence shows, heterogeneity in how firms identify, and engage with, their stakeholders can explain why some firms outperform their peers. However, my literature survey of more than three decades of published research reveals that enterprise strategy has stayed firmly in the shadows behind business and corporate strategy. Furthermore, many theories of firm–stakeholder relationships are normative (i.e. explain how firms should act) and do not inform strategy effectively. In this paper, I argue why enterprise strategy research is required as a cohesive body of work that connects with research in business and corporate strategy. I finish by proposing three research domains – strategic goals, organization design, and organization boundaries – that hold the potential to link stakeholder issues with mainstream concerns in strategy research and, thus, to revive a coherent research programme in enterprise level strategy.     

Buffering and bridging as environmental strategies of firms

Companies are often confronted with important strategic issues, such as environmental concerns. Generally, they react in one of two basic ways: buffering the enterprise or bridging the issue. Insight into the factors determining the choice between those two generic strategies is important for managers. Three recent and mutually related analytical frameworks from corporate communication and management theory are discussed and exemplified by the Shell Brent Spar case. This case shows the development of two generic environmental strategies over time: initial buffering of the firm from external stakeholders, and later a shift towards a bridging strategy. On the basis of our theoretical and empirical analysis, it appears that top management's attitude regarding cooperation with external stakeholders plays a key role in choosing bridging versus buffering strategies. © 1998 John Wiley & Sons, Ltd and ERP Environment.     

Victim or Victimizer: Firm Responses to Government Corruption

What is the relationship between government corruption and firm performance? To address this question, I conduct a review of articles published in the leading management journals on government‐business interactions pertaining to rent‐seeking activities and integrate findings from the fields of international business, social issues in management, public organization, institutional change, and corporate political activity. I find that while much empirical work corroborates the earlier findings suggesting a corrosive impact of government corruption on firm performance in general, management research also points to the heterogeneous impact of government corruption on individual firm performance, driven by the strategic activities conducted by firms in response to corruption. I propose an integrative model of firm strategy vis‐à‐vis corruption that predicts the activity choice of the firm as predicated by its organizational structure, political resources, industry regulation, and surrounding political and social institutions.     

Examining green policy and sustainable development from the perspective of differentiation and strategic alignment

The study seeks to explain the influence of green policy on sustainable development from the perspective of differentiation and strategic alignment. The study examined the relationships among a divergent green management strategy, green competencies, and firm performance. The results indicate that a divergent green management strategy is associated with higher firm performance and that such relationship is moderated by green competencies. The study confirms that a differentiation strategy pays off for firms that implement green management. The study also confirms that green policy should consider the strategic alignment between green management strategy and green competencies.     

In search of the changing role of the corporate human resource function in the international firm

There has been considerable research on the issues of board-level representation by personnel/HR directors and senior HR managers' involvement in strategic decision making. Since the early 1990s there has been a growing interest in international HRM, reflecting the growing recognition that the effective management of human resources internationally is a major determinant of success or failure in international business. There is also evidence that HR constraints often limit the effective implementation of international business strategies. More recently, it has been argued that the more rapid pace of internationalization and globalization leads to a more strategic role for HRM as well as changes in the content of HRM. Yet, while there have been some attempts to integrate international corporate strategy and human resource strategy, surprisingly, the role of the corporate human resources function has been neglected, particularly in the context of the international firm. This article seeks to redress the balance. The question addressed is: what is the role of the corporate HR function in the international firm? To answer these questions empirical research was conducted in thirty UK international firms. We found an emerging agenda for corporate HR in international firms which focuses on senior management development, succession planning and developing a cadre of international managers. We conceptualize this as a strategic concern with developing the core management competences of the organization, and argue that it can be usefully analysed from the perspective of the learning organization.     

The Red Queen and the environment: reconciling public regulation and business strategy

Until the late 1980s, environmental regulation in Denmark was often carried out in an intensely politicized and confrontational climate marked by strong tensions between authorities and polluting firms. In recent years, however, the general spirit of regulation seems to have improved significantly. During this same period, ‘generic’ measures such as general discharge limits have been supplemented with more specific demands, tailored for individual companies. The present paper presents a case study based on the environmental regulation of TripleNine, a West Jutland fishmeal factory. In response to major changes in its market and regulatory environment, the firm has revised its general strategy and taken a more pro‐active stance on environmental issues, pursuing a policy of active co‐operation with local environmental authorities. Informed by this and other case studies, a theoretical model is developed to account for the incorporation of ecological concerns into firms' general business strategy. Against the background of this model, the paper addresses the long‐term possibilities of reconciling business strategy and public regulation in the future. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

The relationship between human resource management practices,business strategy and firm performance: evidence from steel industry in Taiwan

The primary objective of this study is to investigate the relationship between human resource management (HRM) practices, business strategy and firm performance. We examined the following HRM practices: training and development; teamwork; compensation/incentives; HR planning; performance appraisal; and employment security. We surveyed 236 managers working at steel firms in Taiwan to explore their perceptions on the impact of HRM practices and business strategy on firm performance. The results of this study are summarized as follows: (1) HRM practices will be positively related to firm performance; (2) there is a close linkage between HRM practices and business strategy; (3) business strategies will be positively related to firm performance; (4) integrating HRM practices with business strategies will be positively related to firm performance.     

Managerial perceptions of corporate environmentalism: interpretations from industry and strategic implications for organizations

Environmental issues are becoming increasingly important in organization theory and practice. Corporate environmentalism is emerging as a process of addressing environmental issues facing business firms. In this paper I examine managerial perceptions of corporate environmentalism and describes how key organizational members interpret the relationship between their firm and the biophysical environment. Corporate environmental orientation and environmental strategy focus are two themes of corporate environmentalism that emerge from the study. I discuss managerial perceptions of regulatory forces, public environmental concern, top management commitment and need for competitive advantage, and how perceptions of these factors might translate into environmental strategies. I conclude by discussing implications of corporate environmentalism for organizational theory and practice.     

Measuring strategic environmental performance

It is now widely acknowledged that environmental issues will increasingly affect the performance of firms in western countries, both in the short and in the long run. Environmental issues can act on revenues and on costs. They can influence revenues when a firm follows a ‘green strategy’, i.e. it enhances the characteristics of environmental compatibility of its products or it promotes a credible image of a ‘green company’, that employs only clean technologies. They can influence costs as, on the one hand, more limiting environmental standards can result in higher manufacturing and non manufacturing costs and, on the other hand, programmes focused on improving environmental performances can result in less spoils and wastes, hence in lower costs. Hence, environmental performance should be a structured part of the management control system of an industrial firm. Unfortunately, it is not completely clear how accounting information can be structured in order to obtain this result. This paper is aimed at developing a set of information that can be used for a managerial control focused on the environmental performance of an industrial firm. This paper is organized in three main sections. Section I describes the conceptual requirements of a management control system based on accounting information for monitoring the environmental performance of an industrial firm (completeness, long term orientation, external orientation, measurability and cost). Section II analyses different classes of Environmental Performance Indicators (EPI) used in practice. Both accounting measures (prevention costs and investments; operating environmental costs; contingent environmental liabilities) and non financial measures (physical indicators; compliance) are considered. Section III suggests an integrated approach to the design of a management control system focused on environmental issues, where different classes of indicators are used jointly. More specifically, two integrated systems, one mostly based on physical measures and aimed at external communication, the other focused on accounting measures and supporting managerial decision making, are suggested.     

THEORIES OF THE FIRM: IMPLICATIONS FOR STRATEGY RESEARCH*

Theories of the firm provide a perspective for thinking about organizational objectives and a framework for analysing important research problems. Here, we demonstrate the usefulness of several economic theories of the firm for guiding strategy research. We evaluate the relevance of each theory with regard to how the underlying conceptualization of the firm permits us to investigate issues of substantive interest to strategy researchers, and how compatible the assumptions contained within the theory are with the traditional strategy framework. We also examine the relevance of the theories from the viewpoint of philosophical methodology. We argue that, because of the integrative nature of strategy research, it is imperative for researchers to adopt multiple frameworks represented by different theories for the advancement of the field.     

Corporate Carbon Strategies in Responding to Climate Change

With climate change emerging as one of the most important issues affecting the business circle, companies have begun considering the carbon issue in their overall strategic positioning. However, few studies have examined the corporate carbon strategies in developing and advanced developing countries, where climate change regulation is extensive and market uncertainty is relatively high. In addition, there has been growing interest among researchers and practitioners concerning the relationship between the carbon strategy and firm performance. This paper presents a framework for identifying the corporate carbon strategy. The cluster analysis of 241 Korean companies indicates six types of corporate carbon strategy: ‘wait‐and‐see observer’, ‘cautious reducer’, ‘product enhancer’, ‘all‐round enhancer’, ‘emergent explorer’ and ‘all‐round explorer’. This study empirically examines whether there are differences between these carbon strategy types in terms of the sector, firm size and firm performance. The results indicate a significant relationship between a firm's carbon strategy and its sector and size but a significant relationship between the carbon strategy and firm performance is not confirmed. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

The transition into management by scientists and engineers: A misallocation or efficient use of human resources?

A theme in the career paths of scientists and engineers is their transition into management. This transition is described as difficult both for those who make it and for those who do not. This article uses Human Research Information System data from a large research & development firm to explore an alternative perspective in which the transition is seen as an efficient human resource promotion strategy. The results support the alternative explanation and indicate that the policy serves the firm well in allocating human resources. The results suggest that good technical employees tend to become good managers and that if coupled with aggressive training for those technical employees who do not move into management, the best workers stay with the firm.     

战略人力资源管理与跨国公司在中国的绩效

通过比较跨国公司在中国两个行业中的人力资源管理实践与相关绩效,本研究验证战略人力资源管理的不同理论观点。笔者分析了取自中国的软饮料产业与电子产业的实证数据,研究的结果验证了一系列有关战略人力资源管理的基本假设,如企业环境、企业战略、企业人力资源实践与企业绩效之间的关系。     

Environmental business strategy: the Portuguese case

This study focuses on the adoption of environmental management systems and corporate social responsibility reporting as mechanisms for creating a differential advantage, looking at how different stakeholders in an organization perceive the importance of instituting these mechanisms as determinants of market success. The paper then aims to focus on environmental business strategy and corporate social responsibility reporting in companies, rather than prescribing policy for the entire sector. In so doing it postulates that compliance with market requirements on environmentally related issues, by instituting proper environmental management mechanisms and corporate social responsibility reporting, is a pre‐requisite for acceptance of the firm and its products in the market. The paper is methodologically based on a set of 60 interviews conducted with various agents in the Portuguese textile industry, ranging from policy‐makers to industrialists and NGOs, with a view to determining differences in perception between the various stakeholders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

From issues to checkpoints and back: managing green issues in R&D

The article is based on a qualitative study of how green issues affect the R&D work in two large Swedish manufacturing firms. Both internal (environmental staff, top management) and external (regulators) actors drive the greening processes and our firms seem to be far reaching in their green works. In our discussions, we rely on a dynamic model of organizational change to emphasize that if green issues, in our cases perceived as strategic issues, are to change the firm and its R&D work, there has to be a focus on not only technological (tangible) components, but also on cultural (intangible) aspects. A proactive environmental product development strategy might therefore benefit from widening its focus to the whole organization. In addition to a more holistic approach, a basic argument in the paper is also that if green issues are to survive, they have to be kept evergreen. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

The Effects of a Separation of Ownership from Control on UK Listed Firms: An Empirical Analysis

There has been a wide‐ranging debate concerning the effects of the separation of management and ownership of large firms. Given recent issues concerning corporate remuneration, this debate is as relevant and possibly more so today as it has ever been. Theoretically, as the ownership of a firm becomes more diverse, the management of the firm will have more discretion and opportunity to act in accordance with their own interests at the expense of those of the shareholders. This paper considers the effect of a separation of ownership from control on 406 UK listed firms. Simultaneous equations are used to test for a relationship between the percentage of shares owned by significant outsiders and insiders and the performance of the firm. A number of authors have suggested that there may be a significant relationship between these variables. The analysis conducted in this study supports the view that there is a relationship between ownership structure and firm performance. Copyright © 2011 John Wiley & Sons, Ltd.     

Organizational Causes and Strategic Consequences of the Extent of Top Management Team Replacement During Turnaround Attempts

Researchers have argued that top management team changes are an important force spurring change at declining firms. Yet, studies find that top executives at some firms are able to avoid being replaced even though their firms perform poorly. Also, despite support from numerous case analyses, there is little systematic evidence that replacing top managers leads to substantial organizational change at declining firms. In this study, we examine these issues by looking at levels of top management team replacement at a sample of declining firms attempting turnarounds. We find that top management team replacement levels vary with the presence of inertial or change-creating forces within firms. In particular, reduced levels of top management team replacement occur during turnaround attempts at large firms and those that have followed the same strategic orientation for a long period of time. Meanwhile, increases in outsider control of the board are associated with increased levels of replacement. We further find that higher levels of top management team replacement are associated with greater changes in firm competitive strategy and firm structure and controls during turnaround attempts. Overall, our findings show that organizational-level forces play an important role in top management and strategic change processes at declining firms.     

供应链网络模型研究综述

供应链网络设计的目的是使供应链的长期盈利能力最大化。供应链网络设计必须与企业的竞争战略相一致。供应链战略、区域需求、成本、基础设施和竞争环境决定了企业供应链网络配置结构。因此研究供应链网络以及供应链网络模型对于供应链管理具有重要意义。     

Avoiding the loss of a gain: Retaining top managers in an acquisition

The turnover of management following a merger or acquisition is a significant, yet understudied, human resource issue. We propose that the relevant HR question is not merely how to retain top managers, but of equal importance, whether or not top management retention should be an objective. We present a model that integrates the retention process with the overall integration strategy being pursued by the acquiring firm. The model prompts a discussion of those factors that influence the decision as to whether the top management of the acquired firm should be retained. We conclude by identifying appropriate HR tactics for managing the retention process.     

人本工程在保险经纪公司中的应用

随着社会的不断发展,人们的思想观念也在不断地转变。文章从保险经纪公司企业管理说起,针对现有企业面临的突出问题——人才和知识管理问题,进行分析,找到今后企业在员工管理上的出路,以及坚持"以人为本"的核心精神,从而使得员工为企业带来更高的经济效益。