Driver Management That Drives Carrier Performance

The trucking industry provides the majority of transportation services in the United States. Truck drivers, particularly their driving performance, which influences how customers perceive motor carriers, are integral to the success of their firms. Hence, driver management is a topic of great interest to the trucking industry, logistics practitioners, and logistics researchers. Although the logistics literature does address issues relating to driver management, advice is scarce regarding how motor carriers might manage drivers to improve operational performance and thus the bottom line. Our results shed light on the processes whereby some formal controls directly influence operational performance, whereas others indirectly influence operational performance; that is, in the latter case, the influence of formal controls on operational performance is mediated by certain informal controls. According to our findings, motor carrier firms that employ a combination of formal and informal controls perform better operationally than firms that do not do so. And, thus, those employing such a combination of controls will realize a larger market share.     

我国企业环境变迁与企业战略模式选择

本文对我国企业内外部环境变迁进行了分析,指出企业除对传统的环境因素进行分析外,还应关注最新动态.在动态环境下,我国企业应考虑选择建立战略柔性体系和战略联盟等以应对环境的不确定性.作者还提出了可指导企业在环境变迁条件下进行战略选择的新模式.     

Crossing the borderline in strategic corporate philanthropy: Dangote and the construction of cement roads in Nigeria

Using the case of Nigeria's Dangote Group and an exploratory research technique, we critique CSR practices in a developing country context based on a three‐pillar model—traditional CSR, strategic CSR and strategic business engagements. Our paper makes a unique contribution by revealing how a company can transform its strategic CSR into strategic business engagements that permit it to circumvent public procurement laws and secure public contracts at non‐competitive terms. We show how, in weak institutional and regulatory contexts, strategic CSR could be turned to a tool for rent extraction and profit maximization. We advocate for regulatory measures that impose ex ante and ex post limits on the extent to which firms can go in integrating CSR into their normal business operations. Based on the outcomes from this important African case study, we illustrate and propose the strategic business engagement model as a new framework for analysing the social benefits of strategic CSR practices in developing countries.     

Strategic Implications of Learning by Doing

This paper examines firm strategy when competitors are at different points along the learning curve. It shows that firms high on the learning curve will have strong incentives to exclude new competitors, while firms that are learning more slowly will have weaker incentives to hinder new competitors and may even wish to encourage entry. The same strategies are shown to apply when firm reputation is acquired through participation in an industry. Several examples of strategic behaviour that take advantage of differential learning speeds or heterogeneous reputations are suggested and a variety of applications of the principle involved are explored.     

Chinese FDI in New Zealand: What Are Chinese Investors Looking For?

In recent years, there has been unparalleled growth in outward foreign direct investment from China. Traditional Western‐dominated international business theory proposes that asset exploitation is necessary for firms undertaking foreign investment. However, more recently, studies suggest asset augmentation is more important for multinational enterprises from emerging countries. This article examines the acquisition by two Chinese firms—Agria and Haier—of two iconic New Zealand firms, each with a significant international presence—PGG Wrightson and Fisher & Paykel. The article determines that Agria and Haier invested to acquire strategic assets in order to strengthen their position in the Chinese market as well as build and sustain a global position. Strategic intent was an important factor in deciding where to invest, and strategic assets complementary to their own competitive advantages were sought by the Chinese firms. © 2016 Wiley Periodicals, Inc.     

Emerging strategies in the venture capital industry

This article reports a study of the future direction of the venture capital industry by examining the basic strategies and strategic assumptions of a broad sample of venture capital firms. There are three main sets of results:First, the once homogeneous venture capital industry is rapidly dividing into several different “strategic groups.” Members of these “groups” are increasingly distinguishing themselves from other groups on four basic dimensions followed by member firms: 1. Financial Resources—Equity capital comes from a greater variety of sources (five major sources) resulting in fundamentally different demands on the mission of the receiving venture capital firm. 2. Staff Resources—The way venture capital firms use staff resources, particularly regarding investee management assistance, is becoming increasingly varied across different groups. Some firms provide fewer than 2-days per year, while others provide up to 450 man-days per year per client. 3. Venture Stages—While the overall industry retains a primary interest in stage 1,2, and 3 investment, specific firms vary considerably in the distribution of investment emphasis across these three stages. 4. Use of Financial Resources-Firms in the industry are becoming increasingly differentiated in the size of minimum investments they make ($100 M to $1000 M) and in their role as a direct investor versus a “broker” for institutional funds. Practicing venture capitalists should make use of this first set of findings in two ways. First, they may find it useful to compare their firm's orientation along these four strategic dimensions with those of the firm's that comprised this study. Second, they may seek to use these four strategic dimensions as a basis on which they might examine, clarify, and/or redefine the marketing strategy pursued by their firm.A second set of results identified three goals and priorities of venture capital firms that have neither changed over time nor across increasingly different strategic groups. Annualized, after-tax return on investments of between 25% and 40% remain the most common objective across all firms. A 5-to-6 year investment time horizon and a major emphasis on the quality of the management team in evaluating new deals were universal priorities across diverse venture capital firms.A third finding in this study was that venture capital firms profess greater “certainty” about the future direction of the venture capital industry than the direction of their firm. The most notable example of this is a strong sense that industry-wide rates of return are headed downward yet few senior partners expect their firm to experience this decline.Practicing venture capitalists may be interested to peruse these results to see what trends are predicted within the venture capital industry by this subsample of that industry. Second, they should consider the finding that industry-wide rates of return are headed downward in light of the first two sets of findings to develop their own opinion about the future performance of different strategic groups within the industry.It is important to note that the sample of venture capital firms on which this study was based did not include most of the larger, older funds. Some of these funds would be characterized as “industry leaders, pace-setters, and innovators.” The sample provides a solid representation of the “broad middle” of the venture capital industry and newer entrants into the industry. While larger, older funds are under represented, their impact on future trends and strategies in the industry is captured to some extent in the set of questions about “future direction of the venture capital industry.“Finally, the emerging strategic groups in the venture capital industry that were identified by this study may be useful information for investors as well as users of venture capital. For investors, the opportunity to participate in venture capital activity should become more clearly understood and varied. Basically, this study should help investors differentiate the strategic posture of different venture capital firms and funds on four factors rather than simply industry/geographic considerations.For users of venture capital, the results of this study suggest a possibility for multiple options that are both more accessible and more catered to specific needs. Users of venture capital should find a clearer basis on which to differentiate venture capital firms in terms of venture stage priorities, staff utilization orientations, sources and uses of financial resources. This should make for more informed “shopping” among different venture capital sources and provide a basis on which to “shop” for the most compatible firm.     

A Dynamic Model of Size Distribution of Firms Applied to U.S. Biotechnology and Trucking Industries

The present paper attempts to contribute to the existing literature on industry dynamics by proposing a tractable structure for the analysis of the dynamic process governing the size distribution of firms. An analytical model is proposed which describes the density of the cross-sectional distribution of firm size within an industry. The model is based on the theory of diffusion processes, and the method illustrates how information on the time-evolution of size distribution of firms over an extended period of time can be used to make inferences about an underlying process. An empirical application to the evolution of size distribution of population of firms in (i) the U.S. biotechnology industry, and (ii) the U.S. interstate for-hire trucking industry illustrates the applicability of the proposed model in industry studies.     

The continuing debate on firm performance: A multilevel approach to the IT sectors of Taiwan and South Korea

In the economics and strategy fields, researchers seek to understand the antecedents of firm profitability. How and why do certain private enterprise firms develop competitive advantages in environments of rapid technological change while other firms do not? This study extends recent variance decomposition research in three ways. First, this work compares IT sectors in Taiwan and South Korea by using the Standard & Poor's Compustat® Global Vantage database. Second, this investigation tests industry and firm effects using both the multilevel approach of hierarchical linear modeling (HLM) and the conventional variance components approach (VCA). Third, this study explores the question of why there are significant profitability differences among technological firms even with similar industrial structural characteristics and leveraged resources and capabilities in the same IT industry. This study uses data from the U.S. Patent Office to estimate technological diversification at the level of firm resources for knowledge-based relatedness for the IT firms of Taiwan and South Korea. The empirical results find that firm effects have great impact on performance of the IT sectors of Taiwan and South Korea when estimated by either HLM or VCA. However, industry effects dominate firm effects on South Korea's IT sectors when the variance is estimated by HLM. From the perspective of conducting patents innovation, both of the specialized and diversified corporate strategies are matter to the development of these IT sectors, and South Korea's IT firms are more technologically diversified than those firms in Taiwan.     

Public–Private Partnerships and Supply Chain Security: C‐TPAT as an Indicator of Relational Security

Following the attacks of September 11th, public and private entities recognized a need to protect the global supply chain from terrorist disruption. In response to this need, the U.S. Government partnered with industry to create the Customs‐Trade Partnership Against Terrorism (C‐TPAT) program. This research investigates the public–private partnership (PPP) relational aspects of C‐TPAT. C‐TPAT encourages firms to voluntarily improve their security competence and that of their supply chain partners. We introduce the concept of relational security in the context of PPPs. We define relational security as all activities that establish, cultivate, and maintain successful security exchanges between parties. We establish C‐TPAT as one indicator of relational security by demonstrating its ability to establish, cultivate, and maintain successful security exchanges between parties. Results indicate certified firms outperform noncertified firms in security performance, firm performance, and resilience.     

Beyond the Formal–Informal Dichotomy of Small Firm Strategy‐Making in Stable and Dynamic Environments

Strategy‐making assists small firms in managing change and uncertainty by developing suitable strategic options. We move beyond the conventional formal–informal dichotomy to show how three informal approaches—internal participation, external participation, and centralized strategy‐making—help both entrepreneurial firms and conservative firms to navigate more or less dynamic environments. In an empirical study of 320 small firms, we find that participation during strategy‐making relates positively to performance whereas centralization only matters for conservative firms in stable environments. In dynamic environments, better performance in entrepreneurial firms is associated with all three approaches. Our findings highlight the importance of viewing strategy‐making in small firms as multifaceted and context specific.     

Knowledge sharing in China–UK higher education alliances

Knowledge sharing through cross-border strategic alliances has been seen by firms as one of the critical strategies to pursue sustainable competitive advantage. However, empirical investigations on how knowledge sharing occurs in strategic alliances are limited and are rarely concerned with strategic alliances in the higher education industry. Based on an empirical investigation of China–UK educational alliances, this research sheds light on this under explored area. Findings reveal that the scale of academic and organizational knowledge sharing is affected by knowledge attributes and partner characteristics. While knowledge sharing in China–UK higher education alliances displays numerous similarities with that occurring in other industries, this study reveals features that are distinct to this important and increasingly international sector. In so doing, this paper offers valuable insights for managers and policy makers concerned with the internationalization of higher education.     

When strategy pales: Lessons from the department store industry

The traditional department store was clearly the center of retail activity in cities and small towns in the United States during the first half of the 20^th century. However, by the late 1970s and beyond, the department store industry began experiencing financial problems, and serious questions were being raised as to whether their demise was eminent. This article traces the evolution of the industry, and explores some of the underlying dynamics for the changes in the retail trade sector, including the emergence of new alternative retail formats, such as discount stores and category killers. This study further explores the major strategies used by the leading traditional stores with reference to new industry life cycle models and a strategic positioning framework. Of particular interest is the discussion regarding: Were the traditional department stores “locked in” to a declining trajectory? How effective were their strategies to counter the decline of the industry? And what were and are the repositioning options available to the traditional department stores?     

Training strategic thinking: Experimental evidence

Strategic behavior is crucial for strong firm performance, especially in competitive environments. Thus, designing a good strategy is a key issue for firms. Designing a strategy requires a combination of strategic thinking—which involves analyzing a firm's strategic environment, defining a vision of its future, and devising new ideas to out-think competitors – and strategic planning – which implies using these ideas to formulate a business plan. Although many firms excel at strategic planning, few devote enough resources to strategic thinking, which results in strategic insanity (i.e., firms repeatedly applying the same strategies with the expectation of different outcomes). To foster a strategic environment within a firm, firm managers and other workers must show willingness for active involvement in a firm's strategic decisions. Nevertheless, not everybody has the skills to do so, as many firms lack work force training programs. This study shows, experimentally, how training affects firms' strategic behavior. The starting point is two groups of individuals with initially equal qualifications who play in a sequential game whose rules hinder the calculation of equilibria. The members of only one of the groups previously receive a treatment entailing a process of training and learning that aims at fostering strategic thinking. The results point to a significant increase in the number of strategic decisions in the treatment group in sharp contrast to the control group, confirming the initial hypothesis (i.e., the positive impact of training).     

Strategic orientation of high-technology firms in a transitional economy

Strategic orientation is a critical factor for a firm's competitiveness in a transitional economy context but it is understudied in the current literature. This article examines the antecedents of strategic orientation from both the socio-cognitive and resource-based view perspectives. The study posits that the strategic orientations of firms in a transitional economy context are influenced by the top managers’ cognitions and organizational resources. Based on a national survey of high-technology firms in China, the study finds that a stronger market-focused strategic orientation was facilitated by managerial cognitions about the future of the industry and current operation and performance of the firm, as well as organizational resources including an R&D infrastructure, technological alliance, and top managers' foreign experience. The study confirms that strategic orientations should be examined from multiple theoretical perspectives.     

Simultaneous multidimensional unfolding and cluster analysis: An investigation of strategic groups

This paper develops a maximum likelihood based methodology for simultaneously performing multidimensional unfolding and cluster analysis on two-way dominance or profile data. This new procedure utilizes mixtures of multivariate conditional normal distributions to estimate a joint space of stimulus coordinates and K ideal points, one for each cluster or group, in a T-dimensional space. The conditional mixture, maximum likelihood methodology is introduced together with an E-M algorithm utilized for parameter estimation. A marketing strategy application is provided with an analysis of PIMS data for a set of firms drawn from the same competitive industry to determine strategic groups, while simultaneously depicting strategy-performance relationships.INSEAD     

Collective Action and Transnational Terrorism

This paper applies modern tools of economic analysis to examine the nature of transnational terrorism and associated collective action concerns that arise in the aftermath of September 11. Throughout the paper, the strategic interaction between rational terrorists and targeted governments are underscored. Networked terrorists draw on their collective strengths to exploit a maximum advantage over targeted governments’ inadequate and uncoordinated responses. A wide range of issues are explored including governments’ deterrence races, undersupplied pre‐emption, and suicidal attacks. Myriad substitutions by terrorists limit government anti‐terrorism policy effectiveness. A host of policy responses are evaluated in light of economic analysis and past econometric evidence.     

Industry concentration and optimal discriminatory commercial policies

We derive the characteristics of firm-specific strategic trade policies when industries consist of heterogenous firms, and show how the informational requirements for policy design are thereby expanded. A knowledge of the Herfindahl index of concentration of the foreign industry is required for the design of optimal protection for domestic firms. It is shown that optimal firm-specific tariffs reduce the degree of foreign concentration, thus shifting rents to domestic firms.     

美国网上证券经纪公司发展路径研究

本文认为,网上证券经纪公司会随着企业生存环境的改变,依据自身的内生竞争实力及外生获得性能力不断地在发展过程中进行业务转型和策略调整,以获取其他企业的优势基因,整合企业自有资源,增强企业抗风险能力,从而适应环境的变化,保持企业的长期生存和持久的竞争实力。文章指出,企业的策略选择具有路径依赖的惯性,不同的网上经纪公司会采取不同的策略切入点,同一个企业在不同的发展阶段也会采取不同的策略,选择不同的路径以求得发展和提高。