Corporate Venture Capital,Disembodied Experimentation and Capability Development

Studies invoking a capabilities lens often ascribe deliberateness in organizational decisions to develop new capabilities. Drawing on five longitudinal case studies of large, global firms in the information and communication technology sector, we examine how firms engender cognizance of their future capability needs in situations characterized by high decision‐making uncertainty. We develop a theoretical account of how firms use investments in start‐ups to actively engage in experimentation outside organizational boundaries, a learning process which we term as disembodied experimentation. Disembodied experimentation creates awareness of voids in the capability base of an incumbent and helps to overcome inertial restraints thereby influencing the decision to invest in capability development. The relationship between learning from disembodied experimentation and the decision to develop capabilities is moderated by knowledge brokering functions and adaptation complexity.     

Why Do Strategic Alliances Persist? A Behavioral Decision Model

Strategic alliances are considered a flexible form of organizing, yet they are often long‐lived. Even when systematic benefit–cost analysis suggests that their organizational form should be changed or terminated, some alliances still persist. Drawing on behavioral decision theory, we propose a theoretical model that explains this phenomenon. Decision makers are subject to a variety of biases that can lead to the overvaluation of the net benefits of an alliance and, hence, inhibit the change or discontinuation of underperforming alliances. Our model illustrates how decision‐making biases at the individual, interpersonal, organizational, and interorganizational levels are moderated by the design of an alliance and the tools employed in the decision‐making process. This behavioral decision perspective advances our theoretical understanding of the longevity of strategic alliances and their embeddedness in complex decision‐making contexts. Copyright © 2014 John Wiley & Sons, Ltd.     

Going Off Script: How Managers Make Sense of the Ending of Their Careers

The extant retirement literature primarily focuses on factors that influence the decision to retire and the generic retirement decision‐making process. While these approaches have extended our understanding of retirement decision‐making, we propose a sensemaking perspective that orients our attention towards the subjective meanings people attach to the factors that trigger the retirement decision, rather than simply the factors themselves. Accordingly, we see the retirement decision‐making process as bounded by situational constraints and rooted in identity work. Based on interviews with 48 retired Canadian executives and managers, we use thematic narrative analysis to identify six types of end‐of‐career narratives. Drawing on these narratives, we present a model of identity work that distinguishes between retirement decision‐making factors that are perceived as identity opportunities and those that are perceived as identity threats. Our findings contribute to scholarly understanding of subjective meanings and identity considerations in the process of ending one's career.     

Effective utility functions induced by organizational target‐based incentives

Many companies set performance targets for their divisions to decentralize the decision‐making process and communicate with outside investors. This paper analyzes the effects of performance targets on the decision‐making behavior of the divisions. We introduce the notion of an ‘effective utility function’—a function that a division should use in its selection of projects if it wishes to maximize the probability of achieving its targets. We show that many target‐based incentives induce S‐shaped utility functions and discuss the organizational problems they may pose. We then show how an organization can set targets that induce expected utility maximization. Copyright © 2008 John Wiley & Sons, Ltd.     

How CEOs and TMTs Build Adaptive Capacity in Small Entrepreneurial Firms

Research suggests that a CEO may have more influence in the context of small entrepreneurial firms, but it is still unclear how a company's chief executive facilitates strategic decision‐making. Little is known about the ways in which these individuals build strategic capabilities, such as the capacity to adapt to changing environments. This study addresses these issues and develops a model indicating that transformational leadership facilitates behavioural integration and comprehensiveness in the decision process among members of the top management team (TMT), which in turn enhances organizational capacity to adapt to environmental changes. Survey results shed light on the complex way in which CEOs facilitate processes within the TMT and enhance small entrepreneurial firms’ capacity to adapt, thereby increasing their viability. This study contributes to the literatures on Upper Echelon Theory, strategic decision‐making, and dynamic capabilities by shedding light on the ways in which transformational leaders influence behavioural and decision‐making processes.     

Ethical consumers in search of markets

Research in ethical consumerism has concentrated on attempts to either categorize ethical consumers or to uncover their decision‐making processes, but to‐date there have been few investigations into the key ethical drivers behind the decision‐making process. This study attempts to identify these ethical drivers within their particular product groups by means of a survey of self‐proclaimed ethical consumers distributed via a questionnaire placed in the Ethical Consumer Magazine. The findings indicate that environmental issues are ranked above human rights and animal rights/welfare issues and that the ethical consumer considers the product groups to have differential importance ranging from the food products goods group, being the most strongly associated with ethical issues, to the ‘brown goods’ group (electric goods such as stereos and TVs), which proved to be least associated with these issues. An examination of the ethical drivers within each group suggests that ethical consumers consider each product group on the basis of its bundle of ethical attributes, with differing levels of importance placed on each ethical issue within the purchase decision. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Facilitating sustainable development decisions: measuring stakeholder reactions

Sustainable development is an issue of increasing importance, in which organizations must engage multiple stakeholders and consider their objectives when deciding on organizational actions, but research provides little guidance regarding how managers can measure stakeholder reactions and use information to facilitate decision‐making. The broad objective of this study is to provide insights useful for decision‐making. In this study, we investigate in its natural and complex environment a real‐world sustainable development conflict – whether to expand energy development in Wyoming. The primary issue is the impact that expanding energy development will have on wildlife and the environment. We collect data from both the local community and a broader national population for use in a quantitative analysis. We use contingent valuation methods to capture the social impact ascribed by the stakeholders. We conclude with a discussion of how this information can be used ex ante to inform decision‐making for sustainable development. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Doing well by doing right: a fundraiser's guide to ethical decision‐making

• The level of trust a prospective donor has in a charity will, in part, determine whether the individual chooses to support the charity as well as the amount of that support. A key factor involved in trust is an organization's ethical standards. Donors prefer to make donations to organizations that maintain the highest principles. If an organization can consistently make the best possible, most ethical decisions, it will be recognized as being an ethical institution, which in turn will enhance the trust it engenders, and, therefore, the support it can attract. A number of ethical decision‐making models exist. Adopting a decision‐making model will ensure that a methodical approach is used and that the incidents of rash decision‐making will be reduced. Using an ethical decision‐making model will help individuals arrive consistently at the best solutions to ethical dilemmas, defend those decisions, enhance public trust, secure more donors, and raise more money. The value of sound decision‐making and effective ethical decision‐making models are reviewed in this paper.

Copyright © 2005 John Wiley & Sons, Ltd.     

From schoolyard to workplace: The impact of bullying on sales and business employees' machiavellianism,job satisfaction,and perceived importance of an ethical issue

Bullying can precipitate many negative outcomes at work, but previous research does not adequately address how such misbehavior affects employee dispositions and attitudes; how these characteristics impact ethical decision making is also underexplored. Given these research gaps, the purpose of this study is to assess (1) the impact of bullying on Machiavellianism and job satisfaction, and (2) the influences of Machiavellianism and job satisfaction on perceived ethical issue importance, a measure of ethical decision making. Three hundred eighty‐four sales and business employees working for different firms operating in the United States answered a self‐report questionnaire. The findings showed that, after accounting for social desirability bias, workplace bullying was positively associated with Machiavellianism and negatively associated with job satisfaction. Machiavellianism was negatively related to the perceived importance of an ethical issue embedded in a vignette highlighting Machiavellianism and latent bullying behaviors. In addition, job satisfaction was positively related to ethical issue importance. Finally, both Machiavellianism and job satisfaction mediated the relationship between bullying experiences and importance of an ethical issue, as evidenced by their significant indirect effects. HR professionals should minimize bullying and Machiavellianism to reduce the corrosive effect on the ethical environment and enhance work attitudes and ethical decisions.     

Individual job‐choice decisions and the impact of job attributes and recruitment practices: A longitudinal field study

The present research is intended to contribute to the understanding of how job‐choice decisions are made and the role of effective and ineffective recruiting practices in that process. The issues are examined by tracking job seekers through the job search and choice process. At multiple points in the process, structured interviews are used to elicit information from the job seekers pertaining to how they are making their decision and what factors play a role. Results provide theoretical and practical insights into the organizational and job attributes important to job choice, as well as how specific recruiting practices may exert a significant influence, positive or negative, on job‐choice decisions. For example, our findings reinforced the importance of providing job seekers the opportunity to meet with multiple (and high‐level) organizational constituents, impressive site‐visit arrangements, and frequent and prompt follow‐up. Also, imposing a deadline (i.e., “exploding offer”) showed little effect on job‐choice decisions. Recommendations for recruitment practice and continued research are provided. © 2003 Wiley Periodicals, Inc.     

Organizational Learning in Project‐Based Companies: A Process Thinking Approach

Although a traditional project model is clearly useful for laying out the patterns of relationships surrounding a project, it does not provide the temporally embedded accounts that enable us to understand how organizational learning takes place. The process thinking perspective offers a means to solving this problem. This article provides an analysis of how different processes interact dynamically in order to benefit project‐based companies' organizational learning. Two findings from this study are: (1) organizational learning is a dynamic concept that emphasizes the continually changing nature of a project‐based company and (2) sensemaking and negotiation of meaning are ongoing processes in project‐based companies.     

The Effects of Personality Composition and Decision‐making Processes on Change Preferences of Self‐managing Teams

Team decision‐making on organizational and strategic changes is pervasive. Yet, little is known about determinants of teams' change preferences. We analyze how composition with respect to personality traits associated with (pro‐)active behavior (locus of control and type‐A/B behavior) influences self‐managing teams' preferences for the likelihood and magnitude of changes, and whether participative decision‐making and team monitoring as core features of group decision‐making counteract or reinforce change tendencies. Results from a business simulation with 42 teams largely support predictions. Stronger type‐A orientation increases the likelihood of (drastic) changes. Teams dominated by internal locus of control members are highly responsive to performance feedback in their change preferences. Participative decision‐making encourages, whereas team monitoring restricts tendencies towards extreme magnitudes. Copyright © 2011 John Wiley & Sons, Ltd.     

Ethical climate and pro-social rule breaking in the workplace

Pro-social rule breaking (PSRB), rule-breaking to promote the interests of the organization, is a burgeoning topic on the scholarly landscape, but drivers of this behavior remain largely unexplained. This paper seeks to extend theory on PSRB by conceptualizing this behavior as an ethical decision requiring tradeoffs and ethical assessments. Specifically, we offer a model of PSRB that contextualizes the behavior within Victor and Cullen's (1988) five-dimensional typology of organizational ethical climate. We offer a set of propositions that provides theory on the role of each climate type on PSRB, as well as additional theorizing about salient individual attributes that impact PSRB. In addition to clarifying PSRB as an ethical decision, this paper offers theory at multiple levels of analysis on what drives PSRB. Specifically core self-evaluations are proposed as antecedents to PSRB. This theorizing is also integrated into literature on HR policy and HR decision-making implications of the model for HR practitioners are discussed, and a set of future research directions are offered.     

Places and Spaces: The Role of Metonymy in Organizational Talk

Cultural meaning making as reflected in, and constituted by, organizational talk is an established field of interest in organizational analysis. However, the discursive mechanics of the process whereby this cultural meaning making is created and maintained are less well understood. The premise of this paper is that taken‐for‐granted assumptions embedded in organizational talk can be explored through the analysis of metonymy, a trope which is under explored in the linguistic turn in organization studies. This lack of focus on metonymy is, we believe, related to the fundamentally conventional nature of the trope in use, which expresses ideas, values and relationships that seem natural, normal and routine but which are culturally bound. We address this gap and carry out a metonymical analysis of organizational talk about physical places and spaces in one organization, to show how cultural norms and meanings are reflected, maintained, and potentially changed in these figures of speech. We show how metonymic chains based on buildings can reflect, reify and simplify the symbolic order of the organization, how these symbolic meanings can be transferred on to other inanimate objects and the constructions thereby spread, how people can be constructed within this symbolic chain, and how these metonymic chains can be invoked to potentially confirm, challenge or change the organizational order.     

Strengthening executive decision making

Although decisions determine corporate fates, executives don't always know how to make the best choices. The author examines today's dissatisfaction with corporate decision making, reviews how it can deteriorate as the pace of change increases, and offers five comprehensive strategies for improving the decision making process. © 1995 by John Wiley & Sons, Inc.     

THE IRRATIONALITY OF ACTION AND ACTION RATIONALITY: DECISIONS, IDEOLOGIES AND ORGANIZATIONAL ACTIONS

Irrationality is a basic feature of organizational behaviour. Organizational decision making tends to be irrational, and organizational ideologies bias organizations’perceptions. Much effort has been spent on prescribing how organizations should achieve more rationality. However, rational decision making affords a bad basis for action. Some irrationalities are necessary requirements for organizational actions. Choices are facilitated by narrow and clear organizational ideologies, and actions are facilitated by irrational decision-making procedures which maximize motivation and commitment.     

Extreme Weather Events and the Critical Importance of Anticipatory Adaptation and Organizational Resilience in Responding to Impacts

Growing scientific evidence suggests that more frequent and severe weather extremes such as heat waves, hurricanes, flooding and droughts will have an increasing impact on organizations, industries and entire economies. These findings call for the development of theoretical and practical frameworks to strengthen the capacity of organizations to respond to such impacts. Yet despite the need to understand what is required to build anticipatory adaptation and organizational resilience to expected impacts, the organizational theory literature offers only limited insights. This paper proposes a comprehensive conceptual framework of organizational adaptation and resilience to extreme weather events for addressing the effects of ecological discontinuities in organizational research and strategic decision‐making. Implications and suggestions for future research are offered. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Boardroom Strategizing in Professional Associations: Processual and Institutional Perspectives*

abstract This study examines strategic decision‐making at the boardroom level of two non‐profit professional associations, penetrating directors' strategic orientations, discourse and decisions in their holistic context. In comparison with the predominantly survey and interview based literature on board level strategy behaviour, this study employs a longitudinal complete member researcher, participant observer methodology. Its findings are analysed from an institutional theory perspective and reveal selective championing of strategies by directors, the evaluation of strategic proposals and progress in predominantly financial resource/outcome terms, and directors' attention to navigating strategic initiatives through organizational politics. Also revealed are private sector philosophies imported into the non‐profit boardroom, the predominantly ceremonial role of formal strategic plans, and an informally enacted strategic discourse. This study offers a unique insider view of strategizing at the highest organizational level.     

Discretionary and transactional human resource practices and employee outcomes: The role of perceived organizational support

Utilizing perceived organizational support (POS) as the mechanism linking HR practices to employee behaviors in the workplace, we examine a broad set of HR practices in order to understand the relative importance of each HR practice (i.e., those that explain incremental variance over other practices) in influencing employee behaviors. We differentiate between discretionary and transactional HR practices to test the discretionary investment requisite of POS theory. The results show that of the eight discretionary practices, only participation and decision making directly influenced the extra‐role behaviors that employees exhibit, and only training and development directly impacted the customer‐oriented behaviors. Furthermore, one of the transactional HR practices was found to have a direct effect on organizational citizenship behavior. Our findings indicate that the performance management process, promotional opportunities, participation, and involvement in decision making affect how employees behave toward the customer and the extra‐role behaviors they exhibit. Furthermore, this occurs through the view employees develop of the organization as a place to work. That is, these four HR practices demonstrate to employees that they are valued, and, in turn, this feeling of being appreciated impacts their commitment to delivering high‐quality service to the customer and going beyond their job responsibilities. Implications for research and practice are discussed. © 2012 Wiley Periodicals, Inc.     

Introduction: service work and its implications for HRM

This article draws on our four case studies to examine the nature of the relationships between ABB and its Canadian subsidiaries. Starting from a critical review of the literature, it develops a framework that is sensitive to three levels of analysis: the factors that shape the parent corporation's strategies, the characteristics of the host countries in which the MNC operates and the characteristics of the local subsidiaries themselves. The empirical material illustrates how innovation is generated by a two-way process, in which the initiative of corporate leaders challenges the ‘interpretation’ of local actors. In doing so, we point to a number of key omissions in the influential attempt by Bartlett and Ghoshal to use ABB to develop a managerial theory of the firm. This research also leads to broader considerations regarding the interface between markets and organizations. As distinct from the orthodox view, a transnational corporation may be conceived as a mediator between the market and a local subsidiary. In many ways, the global corporation channels and mediates the impact of external market forces on internal organizational actors, through a process involving the exercise of politics and power. The article has significant implications for decision making on human resource management. In particular it stresses that local managers, local unions, and employees can think and act strategically only in as far as they properly assess the limits of their respective sphere of organizational autonomy within the corporation.