Implanting competitive strategy: A contingency approach

Competitive business strategies are often formulated with little regard given to the articulation format. This paper examines the strategy formulation process from a systems perspective and argues that articulation of a competitive strategy, such that sustained competitive advantage is created, requires consistency along the entire business chain. Internal consistency within the business chain is built through inter‐linkages. The inter‐linkages are made through four inter‐connective elements: human resources, technological resources, information resources and financial resources. It is argued in this paper that the human factor is of major importance since it integrates the other inter‐connective elements and therefore represents a key factor in the process of articulation and implementation. In view of the critical role of the human element in articulation of business strategy for competitive advantage, the paper develops a human‐factor related contingency framework. The developed contingency framework examines Porter's (1980, 1985) generic strategies with respect to congruent requisites necessary for building competitive advantage.     

Branding and design management: a brand design management model

As brands have become one of firms' most valuable assets, the search for new ways to build brands that achieve a differentiated status in the minds of customers has become of central importance for companies. If design is guided by the brand, it can serve as the cohesive factor for all elements that configure a brand experience and represent an unequivocal source of differentiation. 37 owners and/or top managers of 28 Spanish companies acclaimed for their design were interviewed in order to build a model that integrates branding and design management. The resulting model integrates the innovation process with different kinds of design, in order to build consistent brand experiences.     

Emotional loyalty and share of wallet: A contingency approach

The purpose of this study is to investigate whether three demographic (age, income, and education) and two situational (relationship duration and product type) customer characteristics moderate the relationship between emotional loyalty and share of wallet. In so doing, this study explicitly examines the extent to which results diverge when using share of wallet versus conative loyalty (i.e., behavioral intentions) as the dependent measure. Data from a sample of US store shoppers (n=604) indicate that education, relationship duration, and product type moderate the effect of emotional loyalty on share of wallet but not on conative loyalty. Implications for retailers are discussed with suggestions for future research.     

Organizational analysis and information-systems design: A decision-process perspective

Acquiring relevant information, processing it sensibly and acting rationally on the results is central to proper functioning at all management levels of an organization. To improve these capabilities is a major concern of developers of management information systems, yet a growing consensus indicates that it is infeasible to initiate system development by modeling a total organization's information system. Thus, many systems designers— drawn less from the ranks of technologists than of experienced managers—have scaled down aspirations, and are thinking of parts of an organization rather than of the whole. This change of philosophy has emerged most clearly in marketing, where Chambers comments that “attempts to construct large scale models in marketing have generally resulted in failure… the management scientist has now recognized that it is usually better to begin by solving smaller segments of the total problem” [9].Failure of systems designers to adapt their efforts to the structure of the organization and to the people in it also has impeded successful development of information systems. Researchers and managers long have recognized the necessity for such adaptation [25, p/ 483] and also have been concerned by other behavioral problems raised by information systems [25, 3].This study presents a structure for development of “partial” information systems in their organizational context. It utilizes a growing body of empirical knowledge—drawn mainly from marketing—to help analyze organizations in terms of operational guidelines for the development of information systems.     

The contingency theory of management: A path out of the jungle

Management theory has taken divergent paths in recent years. The author discusses each of these as well as the movement to unify existing schools of thought. The process approach, traditional and classical, has been supplanted by the quantitative, the behavioral, and the systems approaches. The author defines these and explains their role in management theory and their function in actual practice. Singly, none of these theories can be applied to every organization and management problem, and currently a theory is emerging that can be used to draw the disparate elements together. This new approach is the contingency theory of management, which can be applied situationally.     

Organizational coordination, development proficiency, and on-time completion of development and international rollout: A contingency analysis of external environments

This study examines the moderating effects of external environmental variables on the relationships between organizational coordination, quality of implementation of new product development (NPD) activities, and on-time completion of (or timeliness in) product development and international new product rollout (INPR) among manufacturing firms in Korea. The results indicate that quality of marketing execution is of greater importance for achieving on-time NPD and multi-country rollout in markets where competitive intensity is high than when it is low. The positive effect of HQ-subsidiary relationships on INPR timeliness is strengthened in rapid rather than slower technology-change environments. By contrast, the positive effect of HQ-subsidiary relationships on INPR timeliness is weakened in high rather than lower competitive-intensity environments. In addition, the beneficial effect of cross-functional integration on NPD timeliness is weakened in markets characterized by a high rate of technological change. The article also discusses the theoretical and managerial implications of the findings.     

Organizational culture,innovation, and performance: A test of Schein's model

Innovation is the key to organizational survival and therefore the study of processes that support innovation should be of interest to researchers and practitioners alike. Schein's multi-layered model of organizational culture offers a useful framework for thinking about processes that foster innovation. A defining characteristic of the model is the subtle but important distinctions between the varied “layers” of organizational culture (i.e., values and norms, artifacts and behaviors). The basic assumption of this study is that Schein's model offers a tractable explanation of cultural processes that support organizational innovation, especially in service firms. Despite the intuitive appeal and practical value of Schein's conceptual framework, empirical research in relation to the model is limited. This paper develops a rationale for an empirical model based on Schein's conceptual model; the study reports a test of an empirical model. Data collected from approximately 100 principals of law firms provides a suitable empirical context for a test of the model. The findings generally support the hypothesized relationships. A key result is how layers of organizational culture, particularly norms, artifacts, and innovative behaviors, partially mediate the effects of values that support innovation on measures of firm performance. The findings have implications for theory and practice, especially in relation to building an organizational culture within professional service firms that fosters innovative behavior.     

Innovation and survival of exporters: A contingency perspective

We challenge the traditional view that innovations always help exporters prosper in competitive international market, by developing and testing the premise that the relationship between innovation and export performance is contingent on some important firm-specific idiosyncrasies. With a large dataset of Chinese firms, the empirical results demonstrate that innovation could be detrimental to exporter survival. Such negative effect is more pronounced for firms that have weak profitability and high outstanding receivables, and also for those without foreign ownership. Nonetheless, we also observe a positive relationship between innovation and survival in highly profitable exporters. By identifying the negative rather than conventionally assumed positive effect of innovation, and the conditions under which innovation facilitates or impedes exporter survival, this paper contributes to the literature on the relationship between innovation and export in the context of emerging markets. Our findings have important implications for how managers develop innovation strategy to compete in the export market.     

Organizational performance with a broader focus: The case for a stakeholder approach to leadership

In 2019, BlackRock CEO Larry Fink, Apple CEO Tim Cook, and the other 179 CEO members of the Business Roundtable argued that the purpose of a corporation must reflect not only the fiduciary interests of owners but also the varied interests of all stakeholders: employees, customers, partners, and broader society. This idea challenges a decades-old norm of shareholder primacy, so it is reasonable for organizational leaders to wonder whether doing so is truly in their firms’ best interests, and if so, how to implement this approach to leadership. To answer these questions, we draw on over 200 peer-reviewed articles covering leadership research to demonstrate how servant leadership, a stakeholder-focused approach to management, outperforms other leadership approaches across both shareholder and stakeholder criteria. We leverage case studies of organizational leaders from SAS, Zappos, Starbucks, and Jason’s Deli, financially successful organizations that exemplify how managers provide value and sustainability to stakeholders and shareholders through servant leadership. We also include practical steps managers can take to begin putting this form of leadership into practice.     

Organizational ethics: A stacked deck

The astute manger should be aware that, in organizations, the deck is frequently ‘stacked’ against higher levels of ethical behavior. This deck stacking occurs because of socialization processes, environmental influences, and the organization hierarchy. As a result of bosses using hierarchical leverage to take the ethical dimension of decision-making away from subordinates, the stage is set for a they-made-me-do-it defense of their moral integrity by these subordinates if and when violations of ethical norms come to light. There is also at work, however, an I-made-them-do-it situation in which professionals who prefer to ‘nest’ in the more technical aspects of their work ‘delegate’ — upward — to their bosses ethical decision-making. Understanding these dynamics is crucial in an age which is especially sensitized to the ethical facet of organizational behavior. He has taught at the University of Georgia since World War II, with the exception of a Rockefeller Foundation Year at the Harvard Graduate School of Business Administration, and two years with the Ford Foudation in Cairo, Egypt. He is the author of four books on management and public policy — the co-author of a recent Principles of Management text — and he has written many articles on economics and management in a wide variety of journals. His most important publications are:Business and Society: Managing Corporate Social Performance (Little, Brown, Boston, 1981), ‘A Three-Dimensional Conceptual Model of Corporate Social Performance’,Academy of Management Review (Oct., 1979), pp. 497–506, and ‘Business Ethics and the Management Hierarchy’,National Forum: The Phi Kappa Phi Journal (Summer, 1978), pp. 37–40.     

Mechanism design in an integrated approach towards revenue management: the case of Empress Cruise Lines

This paper investigates an integrated form of revenue management through the case of Empress Cruise Lines (ECL). The case highlights a multidisciplinary approach towards how demand and supply factors should be integrated in the form of four decision sets in revenue management decisions – the value set, the segmentation set, the sensitivity set and the forecasting/allocation set. Also, the use of mechanism design allows the firm to separate markets for better forecasting of revenue from each segment. The case also shows that segments could be incentivized to behave differently, and to behave in alignment with ECL's policies so that capacity could be optimally allocated and revenue maximized.     

A strategic risk approach to knowledge management

In today's business environment, strong forces of competition and globalization have created an urgency to focus how an organization controls and nurtures its intellectual capital. The concept of knowledge and its management has gained currency and momentum as technology has enabled thoughts and ideas to be more easily generated and distributed. With increased application of technologies such as the Internet, Customer Relationship Management (CRM), and advanced software capabilities, it has been suggested the time has come for discussion of a new paradigm for knowledge management. Toward that end, this article examines the knowledge literature and reviews the experience of a leading private healthcare group, with the objective of gaining a better understanding of the issues that confront effective knowledge management in contemporary organizations. Finally, a tentative knowledge process model is developed herein, one which is intended to guide future discussion in the ongoing knowledge debate.     

Reliability and the design of ethical organizations: A rational systems approach

This paper argues that the concept of reliability provides a useful framework for analyzing defects in organizational design and for prescribing changes that will facilitate ethical decision making. Reliability becomes an ethical concern when the individual or organizational interest diverges from the collective interest. Redundancy and requisite variety provide two design tools which can enable organizations to act reliably in the collective interest. The paper then discusses potential disadvantages to the use of a reliability framework as well as possible problems of implementation. It concludes by examining avenues for future research.Bryan W. Husted is an assistant professor in the Management Department of the Instituto Tecnologico y de Estudios Superiores de Monterrey in Mexico.     

A Conceptual Model for Virtual Organizational Learning

As a trend toward virtual organizations (VOs) emerges in the era of electronic commerce, an understanding of knowledge processing is essential to sustain performance. Active learning is the key to achieving flexibility in a VO; however, few studies have focused on this dimension. In this article we attempt to assemble insights about learning in a VO by developing a conceptual model for virtual organizational learning (VOL). The VOL model is focused on transactive memory, which is composed of knowledge maps, social networks, and mnemonic functions. The initialization of modeling learning in VOs in this article has been erecting the foundation for transactive memory systems in a cyber community. A case study, Smart Creative Teachers Network, is used for demonstrating the transactive memory system for a teacher community to share and create knowledge and form VOs across school boundaries.