Explaining the Strategic Groups–Firm Performance Relationship: A Multilevel Approach Applied to Small and Medium‐Sized Hotel Companies in Spain*

One of the main research questions in the field of strategic management is why firms obtain different performance levels. This paper answers this question from the strategic groups approach. This paper analyzes the linkage between strategic groups and firm performance offering a multilevel analysis about the relative importance of intergroup and intragroup performance differences based on the use of hierarchical linear models. The results show that intragroup differences explain firm performance better than intergroup differences.     

Conflict resolution strategies in joint purchase decisions for major household consumer durables: a cross‐cultural investigation

Previous studies on joint purchase decisions have investigated the types of conflict resolution strategies used by spouses, the usage frequency of different conflict resolution strategies, and the effects of demographics and various other variables, on the uses of conflict resolution strategies. Despite efforts to address this largely unexplored area, the role that culture plays in the use of conflict resolution strategies has been significantly ignored. Using a cross‐cultural perspective, this study addresses the gap in our understanding of the joint purchase decisions in the family by examining how husbands and wives of three ethnic groups in Britain – British Whites, Indians and African Blacks – use different conflict resolution strategies while jointly purchasing major household consumer products. The total sample comprised 583 husbands and wives of British White, Indian and African Black origin residing in London and Manchester in Britain. Our results showed that three conflict resolution strategies are used by both husbands and wives: bargaining, assertiveness and playing on an emotion. In addition, disengagement emerged as a strategy for husbands, whereas supplication emerged for wives. The study presented in this paper also provides substantial evidence of differences in the use of conflict resolution strategies by husbands and wives from the three ethnic groups, which greatly improves our knowledge on a cross‐cultural perspective of joint purchase decisions.     

Intra- and Inter-Cultural Conflicts in China: An Exploratory Study

This study examines the causes of intra- and inter-cultural organizational conflicts among Chinese and American managers in the mainland of China. We investigated conflict between members of the same culture (intra-cultural conflict) and conflict between members of different cultures (inter-cultural conflict). Intra-culturally, both American and Chinese noted self-interest as an important dimension of the cause of conflict. Inter-culturally, both American and Chinese noted cultural differences as an important dimension of the cause of conflict. The similarities between the American and Chinese dimensions were more striking than the differences. The intra-cultural findings reinforce the validity of early Western conflict theories?focusing on self-interest vs. other interest. The inter-cultural findings are partially consistent with intergroup theory and introduce new elements to conflict theory.     

A multilevel and dynamic model of intragroup conflict and decision making: Application of agent-based modeling

Although intragroup conflict has both multilevel and dynamic natures, less attention has been paid to establishing a holistic model of intragroup conflict that emerges across levels and unfolds over time. To address this research gap, we extend the multilevel view of intragroup conflict (Korsgaard et al. 2008) to develop a multilevel and dynamic model of intragroup conflict that explicitly includes (a) the role of time and (b) the feedback loop to encompass the dynamic aspect of intragroup conflict. We further instantiate the extended model in the context of team decision-making. To achieve this and systematically examine the complex relationships, we use agentbased modeling and simulation (ABMS). We directly investigate how two types of intragroup conflict—task and relationship conflict—interplay with cross-level antecedences, interrelate and develop over time, and affect team outcomes. This study adds to the intragroup conflict research by extending the field with multilevel and dynamic views.     

Business-Conflict Linkages: Revisiting MNCs,CSR, and Conflict

Heightened interest in business-conflict linkages has materialized with the advent of globalization and the rise of multinational corporations (MNCs). We examine business-conflict linkages in this article both theoretically and empirically. Theoretically, we examine three streams of the relevant academic literature: the academic business and society literature, the practitioner business and society literature, and the international business political behavior literature and argue that there is room and indeed need for their cross fertilization and integration in research on business-conflict linkages. We then consolidate the three streams into a matrix that reconciles relevant dimen- sions and which can serve as a typology of intervention strategies of business firms in conflict zones. Empirically, the article makes use of the integrative matrix in the context of an interpretive research methodology to examine the perceptions and behavioral orientations of a sample of MNCs in Lebanon in an actual conflict context.     

Actual and Perceived Sharing of Ethical Reasoning and Moral Intent Among In-Group and Out-Group Members

Despite an extensive amount of research studying the influence of significant others on an individual's ethical behavior, researchers have not examined this variable in the context of organizational group boundaries. This study tests actual and perceptual sharing and variation in ethical reasoning and moral intent within and across functional groups in an organization. Integrating theory on ethical behavior, group dynamics, and culture, it is proposed that organizational structure affects cognitive structure. Departmental boundaries create stronger social ties within the group as well as intergroup biases between the groups. Thus individuals will be more likely to share in ethical reasoning and moral intent with members of their own functional group (in-group) than with members of other functional groups (out-group). Additionally, they will perceive that they are more likely to share in ethical reasoning and moral intent with in-group members than with out-group members. Responding to two versions of two ethical scenarios, respondents contrasted their own ethical behavior to their expected ethical behavior of in-group and out-group members. Empirical results confirmed the hypotheses. Organizational group boundaries create actual as well as perceptual sharing and variation in ethical reasoning and moral intent. Furthermore, when comparing perceptual sharing to actual sharing, results show that individuals understate their sharing of ethical reasoning and moral intent with out-group members and overstate their sharing with in-group members. As organizational boundaries can create actual and perceived differences between groups that could lead to inter-group conflict, suggestions for management focus on removing or blurring inter-group boundaries.     

The Pacific Salmon Treaty: A Century of Debate and an Uncertain Future

Negotiations on a Canada-US Pacific salmon treaty began in 1908 but the first comprehensive treaty was not achieved until 1985. At that time, catches and landed values in the salmon fishery were near record levels and both countries viewed the agreement as a means of enhancing their individual prosperity. After a short period of co-operation, the 1985 treaty was undermined by arguments over catch sharing and the failure to rebuild some important salmon stocks. A revised treaty, agreed upon in 1999, established conservation of salmon as a priority and included a side-payment, in the form of two endowment funds designed in part to appease Canadian concern over catch imbalances. Major shifts in abundances combined with significant reductions in the value of the fishery were key factors in the negotiations. In this paper, we use the graph model for conflict resolution to examine the stability of the revised salmon treaty. Our assessment suggests that the treaty will be stable if the side-payment is maintained or enhanced even if both countries pursue aggressive fishing strategies. If the side-payment is not maintained, then it is likely that all groups will attempt to maximize their catch and Canada will seek a renegotiation of the treaty.     

Social Collective Decision Making among Adolescents: A Review and a Revamp

This article revamps the work of Ward and Reingen ( 1990 ) to examine adolescent normative behavior in a social collective decision‐making group. This is of particular importance as it will enhance an understanding of the youth market both through the social context employed here as well as the social interaction that occurs when adolescent decisions are made. Employing a diachronic qualitative methodology, this research explores collective decisions made by adolescents on a high school prom organizing committee and reveals influencing strategies (e.g., coalition formation, bargaining) as well as approaches to managing conflict and conflict resolution. A model is proposed, which examines the role of both intra‐ and intercoalition formation and subsequent influence on decision making. Identification of conflict resolution strategies (e.g., yielding, dominating, and disassociation), employed at different stages of preparation for this event, are recognized as having both theoretical and practical marketing managerial implications.     

Customer segmentation in retailing based on retail brand patronage patterns

In this study, we propose an alternative method for customer segmentation based on households’ retail brand portfolios. We suggest blockmodeling, a method that is rooted in social network analysis, to identify homogeneous groups of customers being characterized by similar patronage patterns. In a second step, we combine this method with psychometric analyses to examine group differences based on sociodemographic and purchasing behavior variables. To illustrate our approach, we use a sample of 500 households out of a panel data set of 36,502 German households in the fast-moving consumer goods sector. The findings of our analyses yield support for our assumption that our methodology, taking into account the relationship between households and the different retail brands they patronize, provides a broader understanding of the antecedents of households’ multiple store patronage strategies, leading eventually to a new form of customer segmentation.     

Influence behaviors and employees’ reactions: An empirical test among six societies based on a transactional–relational contract model

Organizational and task commitment are central drivers of firm performance as they affect employees’ willingness to exert effort for the organization. This paper argues that supervisors who consistently use socio-emotional and supportive influence strategies are likely to enhance subordinates’ immediate commitment to the tasks as well as their psychological attachment to the organization. Drawing on the transactional–relational contracts framework, we develop and empirically examine the effects of supervisors’ influence behaviors on two types of commitment. Data collected from 1150 respondents from China, Hong Kong, Taiwan, Germany, United States and Brazil provided support for the positive relationship between the persuasive influence strategy and both immediate task and organizational commitment. Exploratory analyses of the cultural differences in our sample reveal differences in assertive and relationship-based individual tactics. We thus identified potentially universally endorsed as well as culturally contingent influence tactics in predicting the two types of commitment.     

Using simultaneous latent structure models to analyze group differences: Exploratory analysis of buying style items

This article shows how methods for simultaneous latent structure analysis can be used to test for intergroup differences in unobservable characteristics. In many respects these techniques are similar to those for simultaneous factor analysis. To show how these methods can be used, we analyze data obtained from the 1979 Study of Media and Markets collected by the Simmons Market Research Bureau. Five dichotomized items pertaining to buying style attitudes were chosen as “indicators” of a latent variable (or variables): brand loyalty, willingness to experiment, degree of conformity to buying style of others, persuadibility, and style consciousness. The sample was composed of full-time employed, married, white females in the middle social class categories recognized on the survey. Two groups were compared in terms of latent structure model parameters. The first group consisted of those who work “at a career” and the second consisted of those whose work was “just a job.” Using the methods advocated here there is no significant difference between these two groups once the “brand loyalty” item is excluded. The model-search procedure takes account of within-group contributions to lack of fit. Generalizations of this procedure may be useful in exploratory analysis using the simultaneous latent structure model.     

Breaking Silos: A Field Experiment on Relational Conflict Management in Cross-Functional Teams

In this paper we investigate how effective conflict management in conflict asymmetry situations impacts the quality of cross-functional management teams’ performance. During a 5-day business simulation, we explore the consequences of the relational conflicts and conflict asymmetry experienced by team members. We use two different measures of conflict asymmetry: the traditional group conflict asymmetry measurement of Jehn (Adm Sci Q 40:256–282, 1995) and a social networks method. We find that when some team members evoke more conflict than others, this affects the evolution of team dynamics (and ultimately the performance of the team) even more than high levels of conflict altogether; however, group emotional awareness can mitigate this negative effect and improve the team performance through the appropriate use of conflict management strategies. Since group emotional awareness can be fostered and trained within teams, this is of practical value to improve the performance of cross-functional management teams.     

Consumer Responses to Conflict-Management Strategies on Non-Profit Social Media Fan Pages

Past research has demonstrated that consumer-to-consumer (C2C) conflicts, here defined as uncivil social interactions between consumers, can have a negative impact on consumers’ engagement in social media fan pages (SMFPs). Little is known, however, about how best to manage such conflicts, and this is particularly true in the non-profit context. This paper follows a mixed-method approach in order to address this research gap. Study 1 uses a netnography of a non-profit organization (NPO) to examine how it manages C2C conflicts on its SMFP. Five different conflict-management strategies are identified: non-engaging, censoring, bolstering, educating, and mobilizing. These findings inform Study 2, an online experiment to test how different strategies affect consumers’ attitudes towards the conflict-management approach itself and towards the NPO’s social responsibility. Study 2 also accounts for the moderating effect of the conflict content, differentiating between whether a conflict relates to a consumer’s self-benefit or the benefit to others. Our results offer insights for practitioners into preferable content management strategies when consumers engage in different types of conflict on social media platforms.     

The Missing Dynamic: Corporations, Individuals and Contracts

In this article we discuss whether it pays to invest ethically. Our aim is to examine corporate social responsibility from philosophical, moral and practical points of views. We focus on two main issues related to ethical investments. Firstly we discuss the moral dilemma of how capitalism has changed its shape in today’s world and from ‘blaming the business’ there is a general attempt to use the markets to promote ethics values and corporate social responsibility. Secondly, we analyze the growth of ethical investment funds in the UK today, and their performance, and highlight some of the institutional investors involved in the management of ethical funds. We discuss whether ethical investments really succeed in reducing the conflict between profit-making and social responsibility as they promise or whether they use commercial rhetoric and market mechanism to merely sell us our own perceived values back. We conclude that the paper has a key contribution in setting the scene for future research in an area that is evolving and of fundamental importance to companies, investors and various stakeholder groups.     

Cracks in Diversity Research: The Effects of Diversity Faultlines on Conflict and Performance

In this quasi-field study, we investigate the effects of diversity faultlines on the conflict experience, performance, and morale of 79 groups. This is one of the first studies to operationalize the construct of diversity-related faultlines (Lau and Murnighan 1998). One of the most important contributions of this research is that faultlines incorporate multiple characteristics of group members simultaneously rather than assessing just one demographic characteristic at a time as most past diversity research has done. We develop a measure to capture the complexity of the faultline construct and to examine the effects of various group diversity faultline profiles on group outcomes. Linear results with a limited range of data show that faultlines are negatively related to conflict and positively related to morale and performance. Supplemental analyses that take into account the unique characteristics of our dataset indicate curvilinear relationships between diversity faultlines and relationship conflict, process conflict, group morale, and group performance. Groups with either virtually no faultlines (very diverse members) or strong faultlines (split into 2 fairly homogeneous subgroups) had higher levels of conflict and lower levels of morale and performance than groups with medium faultlines. The results suggest a more complex relationship between diversity and group process and outcome variables than typically described in diversity research. A detailed discussion of the faultline measure we developed and the methodological issues associated with measuring and interpreting faultlines are reported.     

Perceived conflict avoidance by managers and its consequences on subordinates' attitudes

Conflict handling by managers gives rise to significant emotional and cognitive experiences for affected employees and has far‐reaching effects on the effectiveness of a group and an organization. In this conceptual paper, we argue that despite many claims made by managers in their self‐reports that they engage in either dominant or compromising conflict‐handling strategies when managing conflict within a group, they may be perceived by employees as adopting neglect or avoidance behaviors. We examine how such perceived managers' avoidance styles could influence employees' perceptions with regard to justice, trust, and politics within an organization.     

Advertising visuals in global brands’ local websites: a six-country comparison

The visual strategies employed in top global brands’ local advertising websites were compared between two groups of nations: the Western group, consisting of the US, UK and Germany; and the Eastern group, consisting of Japan, Korea and China. The results of a content analysis of 253 web ads show a clear pattern of differences in the role of visuals (literal vs symbolic), the use and role of celebrity models, the use of photographs vs illustrations, and the frequency of product portrayals between two groups. Ads from high-context nations tend to rely on symbolic visuals, celebrity models featured as characters, mixed use of photographs and illustrations, and indirect portrayals of advertised products. Ads from low-context nations are found to be the opposite, reaffirming the association between Hallx2019;s information contextuality and advertising visual strategies. The findings imply that the idea of employing advertising visuals that reflect the communication styles of a particular national market appears to be a promising strategy to effectively reach consumers around the world. With this in mind, multinational advertisers might prefer to implement differentiated ad visual strategies in web advertising for Western and Eastern markets.     

Unpacking the relationship between an innovation strategy and firm performance: The role of task conflict and political activity

This article adds to extant literature by examining the contingent effect of two cross-functional processes on the relationship between the use of an innovation strategy and firm performance, namely, task conflict and political activity. The authors examine the effects of these processes with a sample of 260 firms. The positive relationship between the use of an innovation strategy and firm performance is stronger for higher levels of cross-functional task conflict and lower levels of cross-functional political activity. Furthermore, the authors find support for a configurational hypothesis: the innovation strategy-firm performance relationship is strongest for the high task conflict/low political activity configuration and weakest for the low task conflict/high political activity configuration. The results unveil two important cross-functional mechanisms influencing the extent to which the benefits of an innovation strategy can be reaped.     

The Effects of Conflict Types, Dimensions, and Emergent States on Group Outcomes

In this study, we examine three types of conflict (task, relationship, and process) and four dimensions of conflict (emotions, norms, resolution efficacy, and importance) in decision making groups. We also investigate emergent states (e.g., trust, respect, cohesiveness; Marks et al. 2001; Acad Manag Rev 26: 530–547) as mediating the effects of the conflict types and dimensions on group outcomes (productivity and viability). All three types of conflict decreased positive emergent states in groups and this led to a decrease in group viability (the ability of a team to retain its members through their satisfaction and willingness to continue working together; Balkundi and Harrison 2006; Acad Manag J 49: 49–68). This effect was alleviated by resolution efficacy (the belief that the conflict can be easily resolved) regarding process conflict, but could be exacerbated by any negative emotion associated with relationship conflict. Norms that encouraged task conflict also increased positive emergent states within groups, which marginally and positively influenced group performance.