Managing corporate-government relationships in a multi-cultural setting: How political corporate social responsibility (PCSR) as a response to legitimacy pressures affects firm reputation

As many multinationals set up subsidiaries in emerging markets, they face legitimacy pressures from the host countries. This pressure leads firms to engage in political corporate social responsibility (PCSR) activities. We distinguish two types of attributions of PCSR activities – public-serving and self-serving – and study how these two types of PCSR attributions affect firm reputation. Analyzing 463 PCSR activities by 104 firms in China between 2015 and 2017, we find that public-serving PCSR enhances firm reputation, while self-serving PCSR diminishes it. In addition, we document a negative interaction effect between the two attributions of PCSR. We also find that CEO participation attenuates the negative effect of self-serving PCSR whereas administrative distance accentuates the positive effect of public-serving PCSR. Our research contributes to the nascent literature on government relation networks and sheds light on how firms should manage their relationships with the host countries in a multi-cultural setting.     

A question of (mis)alignment: innovation mandates and absorptive capacity routines

Research suggests that effective R&D requires the right combination of inward-looking and outward-looking absorptive capacity routines. However, we do not have an adequate understanding of how these routines influence innovative output in R&D units with different mandates. In this paper, we argue that adopting an absorptive capacity routine would positively or negatively influence the R&D subsidiary’s innovative output, depending on whether the routine is aligned or misaligned with the subsidiary’s innovation mandate to ‘exploit’ existing knowledge or ‘explore’ new knowledge. We test this using data collected from a global packaged-software firm with 14 international R&D subsidiaries that implemented six major absorptive capacity routines in the period 2000–2010. Our research provides new insights for both scholars and practitioners in R&D management, by showing that balancing of absorptive capacity routines should be considered in light of innovation mandates of subsidiaries as well as the firm. Our analysis also provides insights on why decision makers may still adopt misaligned routines.     

B-to-B relationships: A resource,knowledge, and capability (RKC) perspective

The literature on the establishment and performance of business to business (B-to-B) relationships is extensive and diverse. Multiple perspectives such as the Resource-Based View, Knowledge-Based View, and more recently (Dynamic) Capability-Based View have been used by researchers to explain the existence of B-to-B relationships. While these perspectives have their own merits, they lack cohesion and paint a somewhat scattered picture of the rationale behind B-to-B relationships. This study is an attempt to bring these divergent perspectives together to offer a parsimonious logic for B-to-B relationships – a match or mismatch between what the buyers want (resource, knowledge, and capability) and what the sellers can offer (resource, knowledge, and capability). A 3 × 3 typological framework is proposed, which includes three broad types of B-to-B relationships – balanced relationships (BR), seller dominant relationships (SDR), and buyer dominant relationships (BDR). The boundary conditions and possible outcomes of the relationship types are also outlined. This study has important implications for theory and practice.     

What kind of assumptions need to be realistic and how to test them: A response to Tsang (2006)

Tsang (2006) contends that certain core assumptions of a theory, which are typically about people's behaviors or thoughts, need be realistic, because they determine the viability of the mechanism that generates a hypothesized relationship. While Tsang's (2006) article rightly emphasizes the importance of realistic assumptions, it neglects the issue that certain kinds of assumptions are necessarily unrealistic for the roles that they play in theory development and testing. Therefore, researchers should not be criticized for making unrealistic assumptions of the latter kinds. Furthermore, by deliberating on the assumptions underpinning a theory, researchers can construct theories with better explanatory power and further develop existing theories. Tsang (2006) also suggests two approaches for testing assumptions, namely, a structural model and direct inquiry approaches. Although these approaches have certain merits, they also have limitations that may render the evidence gathered unreliable under certain situations. Two alternative approaches, namely, the experimental‐causal‐chain and the moderator‐of‐process designs, address these limitations. The researcher could consider adopting these designs as well in order to improve the rigor of assumption testing. Copyright © 2010 John Wiley & Sons, Ltd.     

Capability management control and salesperson turnover: A double-edged sword in a product complexity scenario

Drawing on the Job Demand-Resources (JD-R) theory, the present study investigates the underlying mechanisms through which capability control, a type of behavior-based control, influences salesperson turnover. Using a sample of 145 industrial salesperson–supervisor dyads from different industries, this study's findings reveal that capability control contributes to decreasing salesperson turnover intentions, both directly and indirectly. Specifically, management capability control reduces work overload and increases work meaning, thus lowering salesperson turnover intention. The findings also confirm that these effects are contingent on the complexity of a product. When product complexity is low, capability control increases work overload and decreases work meaning, which has a positive effect on salesperson turnover intention. This study discusses these findings' theoretical and managerial implications.     

Networks in transition: how industry events (re)shape interfirm relationships

Interfirm relationship networks are strategic resources that can potentially be shaped by managerial action. As a first step towards understanding how managers can shape networks, we develop a framework which explains how industry networks evolve over time and in response to specific events. Our main thesis is that industry events may be either structure-reinforcing or structure-loosening, and that their potential structural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the global steel industry. © 1998 John Wiley & Sons, Ltd     

Exploring and exploiting network relationships to commercialize technology: A biofuel case

We seek to understand how ambidexterity of exploring and exploiting is managed in an innovation context. We contribute to the literature by elaborating exploring and exploiting as three processes shared between actors in a dynamic business network. An innovator firm needs to (1) explore the current business network to find partners and gain access to resources, (2) develop business relationships for exploiting the emerging network, and (3) explore and find a network-technology fit inside a future business network. The final process is essential to innovation and commercialization. Further, the quality of the network-technology fit will affect the speed and success of the other two processes. Our contribution provides an understanding of the way in which managers are exploring and exploiting the business network to adapt and commercialize a breakthrough technology. A longitudinal case study of biofuel development and commercialization exemplifies the conceptual issues. Final sections address managerial and research implications.     

Reverse auctions and buyer-seller relationships: A rejoinder to Emiliani and Stec's commentary

In response to Emiliani and Stec's commentary, we present rebuttal to their specific points and further assessment of auctions' role in relationships. We fear the commentators represent a segment of procurement managers closed to using auctions. To help overcome their apprehension, we reemphasize statements in the original article and amplify the role of auctions by referring to the wider relationship marketing literature. The bottom line is that we still believe relational auction is not an oxymoron and our proposed design amendments can create an environment of transparency, fairness, and bilateral communication which leads to further relational strengthening.     

Normative barriers to imitation: social complexity of core competences in a mutual fund industry

Imperfectly imitable resources are central in contemporary analysis of sustainable competitive advantage. While prior work has focused on limitations on the ability to imitate, we argue that it is only a third step in an imitation procedure that also involves the identification of what to imitate and the willingness to imitate. In this study we focus on this last step of unwillingness to imitate due to institutionalized professional norms on product appropriateness. Drawing on institutional theory, we test hypotheses and discuss the complex relationship between institutionalized norms, core competences, and systematic differences in the willingness to imitate. Copyright © 2008 John Wiley & Sons, Ltd.     

Performance in publicly funded innovation networks (PFINs): The role of inter-organisational relationships

This research investigates how performance in Publicly Funded Innovation Networks (PFINs) is affected by the inter-organisational relationships in terms of alignment between network administration and participating organisations. Our findings from a longitudinal embedded case study of a PFIN in the Nordic maritime industry show two key insights. First, we identify three patterns of inter-organisational relationships: functional (alignment between the self-organised relationships by project partners and relationship requirements from network administration), dysfunctional (contradictions between the self-organised relationships by project partners and relationship requirements from network administration), and anarchic (self-organised relationships by project partners with a lack of direction or leadership). Second, we show that each of these patterns of inter-organisational relationships have different effects on performance factors. An unexpected emergent finding was the observation of sub-circles of functional relationships within projects of dysfunctional relationships aimed at circumventing the misaligned requirements of network administration. We propose a conceptual framework detailing the effects of these three relationship patterns on PFIN performance in terms of immediate and long-term effects.     

Technological and non-technological innovations,performance and propensity to innovate across industries: The case of an emerging economy

Innovation in a firm may be non-technological, such as organizational and marketing innovation, and technological, such as product and process innovation. The aim of this article is to explore how different types of innovation affect the innovation development of the firm across industries. We chose Chile as an emerging market context. Our results show that only product innovations affect significantly innovation performance across industries. However, different types of propensities to innovate are affected differently by technological and non-technological innovations. We discuss implications for managers and policy makers in emerging economies, in which data tends to be scarce to develop new policy models and increase the effect of non-technological innovation on innovative performance.     

A Closer Look at Cross‐Functional Collaboration and Product Innovativeness: Contingency Effects of Structural and Relational Context

This study applies a contingency perspective to examine how the intra‐organizational context influences the relationship between cross‐functional collaboration and product innovativeness. It focuses on the role of (1) formal, structural factors directly controllable by top management decisions and (2) more intangible, relational factors as potential enhancements of the firm's ability to convert cross‐functional collaboration into product innovativeness. A study of 232 firms confirms the hypotheses, finding that the relationship between cross‐functional collaboration and product innovativeness is stronger for higher levels of decision autonomy and shared responsibility (structural context) and social interaction, trust, and goal congruence (relational context). In addition, a post‐hoc analysis using a configurational approach to organizational contingencies reveals that organizations' relational context is more potent than their structural context for converting cross‐functional collaboration into product innovativeness. The study's implications and future research directions are discussed.     

How public policy can stimulate the capabilities of firms to innovate in a traditional industry through academic engagement: the case of the Swedish food industry

This paper shows how public policy can stimulate innovation in low- and medium-technology industries, by connecting firms and universities through collaborative scientific research. A conceptual framework proposes that collaborative research between universities and firms may result in tangible innovative outcomes, such as new or improved products or processes, and intangible outcomes that strengthen firms’ internal capabilities and thereby indirectly increase their innovativeness. Findings are presented from a case study of a Swedish public policy stimulating the development of firm capabilities for innovation, through collaborative research projects connecting universities and firms in the food industry between 1998 and 2006. In line with the conceptual framework, the analysis distinguishes between (i) direct outcomes, such as new products; and (ii) indirect outcomes in the form of the development of firms’ capabilities to innovate. Based on this analysis, the initial conceptual framework is expanded to indicate how policy can stimulate the development of firms’ capabilities.     

Customer response to dissatisfaction: A synthesis of literature and conceptual framework

Business-to-business customers who are dissatisfied with services or products may respond by voicing complaints, by exiting the transaction relationships, by spreading negative word-of-mouth (WOM) about their experiences, and/or by continuing the transactional relationships as they are. The authors synthesize extant customer (dis)satisfaction response behaviors in the organizational buyer behavior literature, and discuss within-firm and third-party recipients of voicing and negative WOM. A model of customer response behavior is disclosed featuring possible influences of exit, voice, loyalty, and negative WOM: number of alternative suppliers, past complaint response behavior, number of years in relationship, and type of purchase. Propositions are provided on the effects of influence variables on response behavior relationships.