A Study of the Performativity of the “Ambidextrous Organizations” Theory: Neither Lost in nor Lost before Translation

Ambidextrous organizations succeed both in incremental and discontinuous innovation. However, there is little direct empirical evidence on how managers implement the principles of the “ambidextrous organizations” theory to dynamically align the structure and culture of ambidextrous organizations. Our study does not focus on analyzing the factors that give rise to organizational ambidexterity but focuses on analyzing whether the factors suggested by prior theorizing on “ambidextrous organizations” are implemented by managers in their daily practice as suggested by prior theorizing. Accordingly, this study does not investigate the traditionally conceptualized gap between academic theorizing and managerial practice since “ambidextrous organizations” theory can be characterized as rigorous and relevant. We investigate whether the “ambidextrous organizations” theory is implemented as suggested by prior theorizing and whether successful implementation is subject to managing in the way that scholars' prior theorizing suggests. Based on qualitative and quantitative data from two longitudinal case studies, we find that managers overlooked the process dimension in evaluating the required degree of ambidexterity. Furthermore, the organizational structure and culture for incremental innovation did not differ from the structure and culture for discontinuous innovation alongside the expected dimensions. Finally, the discontinuous innovation business unit had to be reintegrated to ensure sustained growth. During the reintegration processes, organizational capabilities mutated. We linked our findings on the processes and performativity of ambidextrous organizing to extant theories and developed the rationale for the observed novel phenomena of innovation myopia, second‐order competency traps, and capability mutations.     

Strategy tools‐in‐use: A framework for understanding “technologies of rationality” in practice

In response to critiques of strategy tools as unhelpful or potentially dangerous for organizations, we suggest casting a sociological eye on how tools are actually mobilized by strategy makers. In conceptualizing strategy tools as tools‐in‐use, we offer a framework for examining the ways that the affordances of strategy tools and the agency of strategy makers interact to shape how and when tools are selected and applied. Further, rather than evaluating the correct or incorrect use of tools, we highlight the variety of outcomes that result, not just for organizations but also for the tools and the individuals who use them. We illustrate this framework with a vignette and propose an agenda and methodological approaches for further scholarship on the use of strategy tools. Copyright © 2014 John Wiley & Sons, Ltd.     

Centralized Wage Bargaining and the “Celtic Tiger” Phenomenon

Drawing on a variety of sources and research methods, this article argues that centralized wage bargaining contributed to the “Celtic Tiger” phenomenon by linking wage increases in the dynamic multinational companies sector to wage and productivity increases in the much more sluggish domestic sector of the economy and, in so doing, considerably increased the competitiveness of foreign multinational companies—a key driver of Irish growth. The article also argues that much‐received wisdom about the institutional and organizational preconditions for centralized wage regulation needs to be reconsidered in light of the Irish case. Public sector unions played a pivotal role in initiating and sustaining wage centralization, yet their leadership role did not undermine its effectiveness. Likewise, internal democratic procedures and the absence of wage compression policies, rather than centralized organizational structures, facilitated compliance with centralized wage policies.     

Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey

Farmers’ organizations have been used as a tool to improve the living conditions of farmers in many countries by improving market access, access to information and capacity to increase production. I employ panel data from Mozambique to investigate how membership in farmers’ organizations impacts smallholders’ welfare. Using difference-in-difference estimators that control for unobservable selection bias, I find a positive impact of membership on the marketed surplus (25%), the value of agricultural production (18%) and on total income (15%, and more than 20% for those whose main source of cash income is the agricultural sector).     

Perceptions of Industrial Design: The “Means” and the “Ends”

It is widely accepted that industrial design can play an important role in the development of innovative products, but integrating design‐thinking into new product development (NPD) is a challenge. This is because industrial designers have very different perspectives and goals than the other members of the NPD team, and this can lead to tensions. It has been postulated that the communications between NPD managers and industrial designers are made more difficult because each group uses very different language. This research made the first empirical investigation of the language used by designers and managers in describing “good” and “poor” industrial design. In‐depth interviews were conducted with a sample of 19 managers and industrial designers at five leading companies. Multiple sources of data were utilized, including the repertory grid technique to elicit the key attributes of design, from the perspective of managers and designers. Using a robust, systematic coding approach to maximize the validity and reliability of qualitative data analysis, it was established that managers and industrial designers do not use a completely different vocabulary as previously supposed. Rather, it was found that managers and industrial designers use some common terms augmented by additional terms that are specific to each group: managers are commercially orientated in the “ends” they want to achieve and designers perceive more antecedents (“means”) necessary to achieve their “ends”—iconic design. This research led to a grounded conceptual model of the role of design, as perceived by managers and industrial designers. The implications of the results achieved are wide: they indicate how managers and designers can interact more productively during NPD; they highlight the need for more research on the language of designers and managers; and they point to issues that need to be covered in the education of industrial designers. Finally, this work suggests how managers and designers can engage in a more fruitful dialogue that will help to make NPD more productive.     

Peering into the Black Hole: The Downside of the New Employment Relations in the UK

Using a national sample of 1,000 employees, this paper examines the proposition that those working in so-called 'black hole' organizations (i.e. where there is neither a set of progressive HRM practices nor a recognized trade union) will report more negative attitudes and work experiences than those in settings where there is either HRM, a trade union presence or both. The results lend some support to this hypothesis with respect to job satisfaction and organizational commitment and in judgements about experiences of fairness of treatment and trust in management. However, the most negative views about employment relations are reported by those who belong to a union in workplaces with little HRM. The findings indicate that it is HRM practices rather than trade union membership that have the major impact on attitudes and experiences. Even in black hole organizations some employees report satisfaction. This can be largely explained by a positive psychological contract between individual and organization. The implications for the role of trade unions in the promotion of fairness at work are discussed.     

Assessing the impact of university interactions on an R&D organization

Large R&D organizations of firms operating in rapidly changing environments invest sizeable amounts to acquire knowledge through interactions with universities. The impact of these interactions on R&D organizations has received little attention in the literature. In this paper we propose a framework for evaluating the firm's investment in universities and in internal university interaction programs. The framework is comprised of three elements: objectives, relevant collectivity and structure. Objectives for the interaction are linked to the specific objectives of the R&D organisation. Individuals in the firm engaged in activities leading to the acquisition, assimilation and commercial exploitation which can potentially benefit from the new knowledge define the collectivity of interest. Structure is specified in terms of five components: network of relationships, technological guideposts, coordination arrangements, distribution of power, and shared beliefs and norms. Use of the framework is illustrated with four examples.     

Is There A “New” Internal Rate of Return Literature?

Recent writing in various real estate journals appears to have become interested in an issue which a number of other journals have treated previously. Specifically, the concept known as the internal rate of return (IRR) has been examined extensively by the literatures of business finance, management science, and economic theory. This paper surveys and reviews the literature by problem, journal and date. The paper concludes that this demonstration suggests the necessity of an understanding of literature in related disciplines as well as our own.     

A capabilities perspective on membership management in franchise networks

This study explores the membership management process in a franchise network. Via an in-depth case study of a German tire retail franchising network, we develop a four-stage process model of membership management in such a network, and find that the different membership management stages of selection, integration, stewardship and evaluation are based on a variety of underlying routines, such as bonding, embracing and assessing. We conceptualize the synergistic interplay of these routines as the franchise network's membership management capability, explaining how the franchisor effectively manages its diverse set of members over time. Our findings bridge research on franchising, and organizational as well as inter-organizational management capabilities, to contribute towards a more holistic understanding of how franchise networks, as collectives of organizations, are maintained and managed.     

Links between Internal and External Cooperation in Product Development: An Exploratory Study*

While there is an overwhelming amount of publications on cooperation in product development projects, they mainly focus on cooperation between business functions within an organization (internal cooperation) or on cooperation between organizations (external cooperation). Yet the relationship between internal and external cooperation has received only scarce attention. This article studies how internal and external cooperation relate. Following an extensive literature study and 12 exploratory interviews with managers in eight organizations, a case‐research design was set up. More specifically, six product development projects were studied in depth, combining data from interviews, questionnaires, and information from secondary sources. Based on these cases, the authors present four different links between internal and external cooperation: (1) Internal cooperation may serve as a mechanism to coordinate external cooperation; (2) Internal cooperative norms are similar to external cooperative norms; (3) External cooperation may stimulate internal cooperation; and (4) Internal cooperation may be an essential part of organizational learning from external partners. The results of this exploratory study prove the interaction between internal and external cooperation to be a subject worthy of investigation and demonstrate that in order to appreciate fully the quality of a firm's external cooperation efforts, they should be studied in combination with the firm's internal interfaces. The authors also show the managerial implications of these links, as well as some directions for further research.     

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Traceability is becoming a condition to operate in European food markets. Retailers impose more stringent standards than what is mandatory. An example is EurepGAP, a quality standard for good agricultural practices that imposes traceability as a main obligation. This research investigates the choice of traceability at the farm level in the Portuguese pear industry. Results suggest that in this industry farm-level adoption of EurepGAP traceability is best explained by the choice to sell to the United Kingdom (UK). For farmers selling to the UK, the odds of choosing the EurepGAP traceability level are significantly linked to membership in particular producer organizations, farm productivity, producing products under a protected designation of origin (PDO), and farmer’s age. While retailers and farmer organizations seem to drive traceability, policy adjustments may be required to reduce adoption costs upstream and extend compliance among producers that sell directly to consumers and market independently.     

The internal audit of research and development

Most activities might benefit from an independent review; but very little attention has been given to the review of research and development (R & D). The evolving scope of internal audit together with trends in R & D provide a more favourable climate for the internal audit of this industry of discovery (Walley, 1974, p. 191). This paper presents the results of a survey which was questionnaire based and completed by internal auditors, most of whom worked for industrial multinationals which are household names. They represented companies employing 0–61 m staff with a turnover of |SL12b p.a.; 75|X% of the respondent organizations were industrial concerns employing 0.56m with a turnover of |SL10.7b p.a., most of the remaining respondents being financial organizations. Forty-two per cent were under overseas control. By focusing on the practice and intentions of leading organizations with a record of progressive management, the results of the survey point a way which is likely to be followed more generally. As the internal audit departments were also large (29 auditors in each; 35 for the industrial departments) they were better placed to extend the scope of their work.     

Exploring the internal and external venturing of large R&D-intensive firms

We explore the realized strategies of large R&D-intensive firms through a venturing lens, focusing on two industries: pharmaceuticals and high-technology equipment manufacturing. Specifically, we examine changes in strategy over time along two critical dimensions: (1) focus of venturing, i.e., internally vs externally oriented, and (2) learning orientation i.e., explorative vs exploitative. Our empirical analysis is based on news stories relating to six large, R&D-intensive firms over a 6-year period. The findings suggest the following: (1) exploration is more prevalent than exploitation in both pharmaceuticals and high-technology equipment manufacturing, but pharmaceuticals have a greater preference for internal venturing than high-technology equipment manufacturing; (2) three firm-level venturing strategy types can be discerned, which are independent of the specific industry; and (3) change in realized strategy is a dynamic capability facilitated by firm-level factors. These results, albeit explorative, emphasize venturing in R&D industries as a dynamic capability that is influenced by firm-level characteristics rather than industry membership.     

Why members stay in or leave an R&D consortium: performance and conditions of membership as determinants of continuity

This paper jointly examines performance and conditions surrounding membership as determinants of the decision to stay or leave an R&D consortium. Hypotheses were developed for performance and, by drawing from power dependence and transaction cost theories, for conditions surrounding membership. Analysis of survey questionnaire data from 184 member organizations of U.S.-based R&D consortia indicates that performance and the conditions of knowledge-related involvement, network ties, learning, and alternatives are related to the decision to stay in or leave. These results provide limited support for power dependence but are more consistent with transaction cost theory. Subsequent analyses revealed an interaction between performance and membership conditions, suggesting performance leads to the conditions of membership, and that the continuity decision for a poorly performing consortium differs from that for one performing well. © 1997 John Wiley & Sons, Ltd.     

Organizational Culture and Innovation: A Meta‐Analytic Review

The relationship of organizational culture and innovation has been subject to extensive research over the last decades. The multitude of cultural variables under investigation has led to a fragmented concept of culture for innovation, and an inclusion into management theory is still missing. Further, managerial practice requires an underlying structure in order to decide what culture should be implemented in order to foster innovation, and to assess if a specific culture is an effective and efficient coordination instrument. Hence, a framework is needed which allows classification of cultural values without residuals, to draw expedient comparisons with reference to the criteria by which they are grouped, and to assess their relationship with organizational innovation. This meta‐analysis, which comprises 43 studies with a combined sample size of 6341 organizations, reveals that Quinn and Rohrbaugh's Competing Values Framework provides a meaningful structure for the ideational aspects of organizational culture. The Competing Values Framework describes value systems based on two main dimensions. Those two pairs of opposing values are flexibility versus control and internal versus external orientation. The analysis shows that the congruence of different cultures with organizational goals of innovation can be described based on that framework. Control theory is used to explain the relationship of organizational culture and innovation. While culture describes the ideational aspects of organizational values, clan control describes their coordinative effect. Managers may choose different clan control strategies according to the Competing Values Framework. They will most likely follow the strategy that provides a high level of congruence between the goals of management and the goals of their organization's social system. Individuals that have internalized the organizational values apply them as a form of self‐control. Those values will also be applied in groups, such as product development teams. While development teams may be formed and disbanded with certain projects and individuals may leave the company, the organization forms the steady frame of those activities. The cumulative data confirms the hypothesis that managers of innovative organizations most likely implement a developmental culture, which emphasizes an external and a flexibility orientation. Yet also group and rational cultures are to a certain extent consistent with the goals of an innovative organization and may thus be appropriate social control strategies. Hierarchical cultures emphasize control and an internal orientation and are less likely to be found in innovative organizations. A moderator analysis of the culture–innovation relationship revealed that it is not influenced by the differentiation between radical and incremental innovation, and only weak evidence exists for an influence of innovation adoption versus innovation generation. A potential reason is that those organizations that are geared toward innovation will pursue it consequently, without differentiating between different kinds of innovation. Therefore, managers that follow a (radical) innovation strategy should establish a developmental culture in their organization. If innovation rather represents a minor aspect of the firm's long‐term objectives, the efficiency‐oriented rational culture or a group culture may also be the right choice.     

Critical comments on the gatekeeper concept in science and technology

The concept of the gatekeeper as a means of improving information dissemination in science and technology has been given much attention. The criticism of the two-step flow model has been extensive in mass-media research. In principle, this criticism should also apply to studies of gatekeepers in R & D organizations. The two-step flow model does not tell us with whom the gatekeeper is communicating, what is being discussed, and what effect the gatekeepers have on the internal information dissemination. Using an empirical study of an R & D organization, the thesis is presented that gatekeepers can contribute to an eliteist pattern of distribution rather than to a reduction of the information gap. Finally, it is argued that studies of internal communication in R & D organizations should deal with communication relationships rather than with individuals as units of analysis.     

Creativity and organization in pharmaceuticals R & D

This paper reviews the results of a study carried out in conjunction with the Chemical and Allied Products Industry Training Board to link internal environmental factors of an organization to measures of creativity in R & D in the pharmaceutical industry. The methods adopted have been described and the preliminary results of the pilot study carried out in one organization in order to develop, refine and test methodology. It is hoped in the future that the techniques developed will be extended to provide comparisons in other organizations in the pharmaceutical industry in order to draw firm conclusions. The paper also sets the study in the context of a brief historical review of other studies in this field. It is concluded that the investigation has evolved a methodology capable of identifying and measuring some facilitatory and inhibitory influences on creativity in an R & D environment, allowing comparisons to be drawn between environmental influences in different parts of the same organization.     

Dealing with the process safety “management gap”

The Process Industry has Corporate Safety Policies, codes of practice, skilled engineers and safety specialists and powerful techniques for Hazard Identification, Assessment and Control. Despite the above and a strong commitment to safety, accidents still occur. Many accidents appear to be due to “gaps” in the management systems rather than to failures of professional skills or to a lack of commitment. This paper will review the many stages in designing, constructing and operating a facility between the initial appraisal of a potential project and the final taking out of service of a facility. The “primary” and “secondary” safety checks will be described. The paper will give examples of gaps in management systems which have led to problems. Finally the paper will suggest ways in which these gaps can be minimized.     

Raising Trade Union Membership Concentration, 1892–1987: The Relative Effects of Mergers and Membership Change

A number of recent studies measure trade union membership concentration using the Herfindahl index. This study uses the same measure to examine the relative effects of the different factors that influenced the level of British union membership concentration between 1892 and 1987. Five factors are identified as influencing this development: mergers, formations, dissolutions, breakaways, and membership change. Marked occupational differences in the relative effect of these factors are shown. In aggregate terms, mergers and membership change tend to be complementary in effect until 1946 and counteractive thereafter.