Construct validity of some unweighted product-count diversification measures

Construct validities are assessed for three simple-to-compute, unweighted, SIC-based continuous diversification measures and a recently proposed two-dimensional, SIC-based categorical diversification measure. Two of the three continuous measures are found to correspond strongly to Rumelt's categorical measures, suggesting that these two objective and easy-to-calculate measures are better suited for large sample, strategy research than has previously been assumed. No support is found for the two-dimensional measure.     

Inconclusive Innovation “Returns”: A Meta‐Analysis of Research on Innovation in New Product Development*

This research on studies that have empirically examined the construct innovation provides a meta‐analysis of the marketing, management, and new product literatures. The study extends previous meta‐analytic works by drawing on 70 independent samples from 64 studies (published from 1970 to 2006) with a total sample size of 12,921. The overall objective is to propose a synthesized model that includes technological turbulence, market turbulence, customer orientation, competitor orientation, organizational structure, innovation, and new product performance. Six baseline hypotheses were developed and tested. The goal is not only to derive empirical generalizations from these literatures but also to investigate sources of inconsistencies in the findings. Four substantive and two methodological artifacts were tested to determine whether they moderate model relationships (i.e., whether the effect sizes differ for any of the six baseline hypotheses). The potential moderators were project versus program level of analysis, the nature of change required by the innovation, service versus product, country of the data's origin, continuous versus categorical measurement, and the number of scales used. From a theoretical perspective, the results corroborated the resource‐based view framework regarding the determinants and the performance outcome of innovation. New product performance (the performance outcome) is a direct consequence of innovation, and this effect is stronger when the data are collected from Western countries. This relationship holds regardless of whether the level of analysis is the new product program versus project or whether the innovation is a product or a service, a robust result relevant to researchers and managers alike. As for the determinants of innovation, the results were as follows. While market turbulence is overall not a direct antecedent to innovation, technological turbulence is overall positively related (especially when market discontinuities are considered or when the data are collected from Asian countries). Customer orientation encourages new product innovation overall, but especially at the program (as opposed to project) level in Western countries. The effect of competitor orientation is also positive. The results for either orientation construct or either turbulence construct held whether the level of analysis was project versus program or whether services versus products were examined. However, the relationship of mechanistic organizational structures to innovation, although positive in the overall sample, did vary by product (positive) versus service (negative).     

How diversity contributes to academic research teams performance

The objective of this paper is to analyse how the job-related diversity in academic research teams influences their scientific performance. To achieve that objective, an empirical study of a university's research teams was carried out during the years 2006–2009. The results reflect a non-significant effect of functional diversity on research teams' performance, whereas status diversity affects in a positive and significant way. However, educational diversity has a significant negative impact when a certain threshold is exceeded. The effect of institutional diversity presents an inverted U-shaped relation with the number of published articles by the research teams. The results reveal that the relationship between diversity and research performance may not be a simple and direct one because its effect could depend on the organisational context and the type of diversity attributes.     

REIT Advisor Performance

In this article, we examine whether the performance of real estate investment trusts (REITs) is correlated with advisor type. Seven categories of advisors are used in the analysis. All categories exhibit zero or negative performance measures and the average abnormal returns across advisor types are significantly different from each other. We conclude that advisor type is an important determinant of the returns realized by a REIT's shareholders. Additional analysis suggests that firm size and property location may partially explain REIT performance.     

The nature of SME co-operation and innovation: A multi-scalar and multi-dimensional analysis

Recent work on SMEs and networks has emphasised the importance of external co-operative ties in enhancing firms’ innovative performance. These external ties provide resource constrained SMEs with access to a wider set of technological opportunities through information sharing and resource pooling. Previous studies of the SME innovation–cooperation relationship have used categorical measures to capture tie existence which, while providing some useful insights, largely fail to capture the strength of co-operative relationships and/or the variety of relational directions in which co-operation occurs. This study aims to address this measurement deficiency and explore the SME innovation–cooperation relationship by designing and utilising measures that capture both the multi-scalar (strength) and multi-dimensional (variety) nature of co-operation and innovation. We then apply these measures to a survey of UK manufacturing SMEs. Data is obtained for 371 SMEs, and we then assess the innovation–co-operation relationship within a multivariate regression framework. We find that the strength of cooperative ties across a range of productive activities within the value chain are important facilitators for SME innovative capability; this is true for both product and process innovation. However, we find that SME co-operation with rivals (co-opetition) has no significant impact upon innovation. Our results have significant implications for both supply chain managers and policy-makers interested in enhancing innovation among SMEs. In particular, we argue that SME innovative activity benefits from good, close dyadic relations within the supply chain, while more generally policy should be geared towards nurturing and sustaining SME innovation networks.     

Gaining from vertical partnerships: knowledge transfer,relationship duration,and supplier performance improvement in the U.S. and Japanese automotive industries

We study sources of operational performance improvement in supplier partnerships. We argue that supplier performance will benefit most where time‐bound relational assets have developed between a buyer and supplier and the firms exploit the resulting communication efficiency by transferring productive knowledge. We examine the effects of two forms of knowledge exchange together with the prior duration of the buyer–supplier relationship. We find similar interaction patterns in two survey samples of Japanese and U.S. automotive suppliers. The effect of ordinary technical exchanges on supplier performance improvement does not vary with relationship duration. The effect of higher‐level technology transfer, however, grows more positive as relationship duration increases. Other results show relevant contrasts consistent with heterogeneous sourcing behavior between the two countries. The findings highlight the role of relational assets and show that it is important to distinguish between simple techniques and higher‐level technological capabilities when studying interfirm relationships. This research extends the literatures on knowledge transfer, buyer–supplier partnerships, and the performance dynamics of interfirm and intrafirm relationships in general. Copyright © 2002 John Wiley & Sons, Ltd.     

Performance differences among strategic group members

Whether and why members of the same strategic group would experience different performance results has received little attention in previous research. These questions are addressed in this paper. First, conventional theory on the relationship between firm performance and strategic group membership is reviewed. Then a theory is developed as to how historical differences among strategic group members may result in performance differences. An empirical analysis of risk and return relationships is conducted, centered on the nature of environmental change characterizing the industry. The empirical setting throughout is the U.S. pharmaceutical industry over the period 1963–82.     

Covariance versus component-based estimations of performance in green supply chain management

In this paper, we investigate the relationships between environmental management (EM) and performance to verify: whether the implementation of an effective internal environmental is a firm’s precondition to belong to a green supply chain; which type of environmental practices (either internal or external) contribute the most to increasing a firm’s performances; and whether performing the environment translates into higher economic performance. We use structural equation modeling for testing our research hypotheses on a large sample of Italian firms, and estimate the structural paths between constructs by means of both covariance- and component-based approaches. The use of both estimation methods allows us contributing to the recent debate about the specification of the “performance” construct as an emerging rather than as a latent variable, and then using formative rather than reflective indicators. Formative indicators are used whenever a construct does not exist without its measures, any change in one of the indicators causes a change in the construct, and the measures are ingredients of the construct rather than being caused by it. For instance, economic performance is an emerging construct since economic measures (e.g., profits and market share) contribute to forming the construct rather than reflecting the behavior of the latent variable. We show that the correct model specification changes the estimates of the path coefficients and leads to research findings aligned to the literature. Our results indicate that being green internally is a prerequisite for collaboration into a green supply chain, internal EM contributes to increasing performance more than external EM, while performing the environment does not lead to a higher economic performance.     

A buyer's perspective on collaborative versus transactional relationships

This research examines collaborative and transactional relationships in buying firms to determine whether collaborative relationships offer greater benefits than transactional relationships, and to ascertain which relational factors drive satisfaction and performance for both collaborative and transactional relationship types. Factor analysis, t-tests and step-wise regression were used to analyze data from a survey of buying firms. Results show that collaborative relationships offer higher levels of satisfaction and performance than transactional relationships. Satisfaction factored into two separate constructs: satisfaction with the relationship and satisfaction with the results. Of the relational factors examined, trust is the most important predictor of performance and satisfaction with the relationship regardless of the type of relationship examined.     

Strategic marketing and business performance: A study in three European ‘engineering countries’

In spite of its relevance, the effects of strategic marketing on business performance are sparingly studied, especially in particular business contexts. We address this gap in two ways. First, we examine the influence of four key strategic marketing concepts—market orientation, innovation orientation, and two marketing capability categories (outside-in and inside-out capabilities)—on company performance. Second, these relationships are studied in three European “engineering countries:” Austria, Finland and Germany. Their relative homogeneity enables testing the generality versus context-specificity of strategic marketing's performance impact. Using SEM analysis, surprisingly weak relationships between market orientation and outside-in capabilities, and business performance are identified, as opposed to the strong role of inside-out capabilities and innovation orientation. These results can be understood through the “engineering country” characteristics. Moreover, clear differences in results are identified among these relatively homogenous countries. This is a major finding as it challenges the widely assumed generality of the strategic marketing–performance relationship. Country-specific results have also considerable managerial relevance.     

联盟组合合作伙伴多样性和企业绩效的关系——基于中国生物医药行业上市公司的实证分析

本文主要以资源依赖理论为视角将联盟组合合作伙伴多样性细化为产业多样性、国家多样性和功能多样性3个指标,同时根据相关理论提出假设,继而收集中国生物医药行业上市公司数据并采用实证研究方法深入分析联盟组合合作伙伴多样性与企业绩效之间的具体关系并验证假设。研究结果表明,产业多样性和国家多样性对企业绩效不显著,功能多样性显著并与企业绩效呈倒U型关系,企业应该通过与不同功能的伙伴进行合作来达到资源和利益的最大化。     

R&D Cooperation,Partner Diversity,and Innovation Performance: An Empirical Analysis

Existing literature on research and development (R&D) alliances focuses on formation motives and performance impacts of these alliances but hardly on diversity of the partners' portfolio. Cooperation with a diverse set of partners leads to learning opportunities with regard to both cooperation and innovation skills and hence is expected to enhance the firm's innovation performance. This paper examines two research questions: (1) the impact of functional and geographical diversity of R&D partners on radical and incremental innovation performance of product innovating firms, and (2) the organizational determinants of partner diversity in R&D alliances. The empirical analysis is based on data from the Dutch Community Innovation Survey, R&D and Information and Communication Technology Surveys, and Production Statistics, which lead to a representative sample of 12,811 innovating firms in the period 1994–2006. Through random‐effects panel Tobit estimates, econometric models for both research questions are estimated. The results indicate that functional and geographical diversity act through different channels. Functional diversity leads to a variety of knowledge intake and synergetic effects necessary to develop and commercialize novel products. Geographical diversity results in successful adaption of existing products to different local requirements such as technical standards, market regulations, and customer preferences. The organizational determinants of both kinds of partner diversity are prior experience, patenting, and information technology infrastructure.     

The role of functional and demographic diversity on new product creativity and the moderating impact of project uncertainty

Earlier studies have shown inconsistency in the impact of team diversity on the effective functioning of New Product Development (NPD) teams. This inconsistency has been attributed to the insufficient amount of research on a possible complex (non-monotonic) relationship between team diversity and team performance and the possible boundary conditions of this relationship. Addressing numerous calls for future studies on these issues, we examined whether an inverted-U relationship exists between team diversity (i.e., functional and demographic) and its outcomes (i.e., new product creativity), using project uncertainty as a key moderator. The results of an empirical study with a sample of 103 new product development teams showed an inverted U-shaped functional diversity–new product creativity relationship. Moreover, the results showed that the direct relationship between functional diversity and new product creativity was stronger when project uncertainty was high as opposed to when it was low. On the other hand, the direct relationship between demographic diversity and new product creativity was weaker when project uncertainty was high as opposed to when it was low.     

Comparison of patterns of research effectiveness and output and their stability across six countries*

The focus of the study is an exploration of the stability of relationships between characteristics of research groups and various dimensions of the effectiveness of research activities across different national settings. The analysis is based on data collected by a Unesco coordinated international research team in six European countries. Data were collected by means of a survey of research groups engaged in research and experimental development activities in a variety of scientific disciplines, primarily in the natural and technological sciences. The total sample consists of 1,222 research groups. From a wide variety of data a set of indices describing the age, patterns of communication, management, diversity, morale and inter-personal relations in the unit, etc., were selected on the basis of observed correlations to measures of effectiveness in the samples of each of the six countries. By means of a residualization procedure the indices were adjusted for the effect of the type of institution end scientific field of research groups to eliminate differences with respect to these two structural dimensions in the samples of the different countries. Stepwise regression analyses were performed separately for each country to explore the relationships of the ‘adjusted’ indices to seven different measures of effectiveness. The common pattern of relationships of certain indices to give effectiveness measures is described and discussed. The recurrent relevance of certain variables in the individual countries across a variety of effectiveness measures is analysed. On the basis of these analyses a few ‘universal’ indices are isolated such as quality of research planning, communication with users of the research results, and the research morale as perceived by unit heads and scientists. These seem to have consistent, systematic and additive relationships across countries to most of the specific dimensions of research group effectiveness. In conclusion the theoretical and practical implications of the findings are discussed.     

Testing the conflict-performance assumption in business-to-business relationships

There is little empirical research published testing the interdependency between conflict in business-to-business relationships and commercial performance. The “conflict-performance assumption”—all other factors being equal, relationships where conflict is low will outperform relationships where conflict levels are higher—remains central in the marketing channels' literature despite insufficient and contradictory empirical evidence. There are several explanations for the lack of a clear relationship between conflict and performance. Rosenbloom [J. Mark. 37 (1973) 26] theorises that the relationship between conflict and channel performance follows an inverted U-shaped curve, where conflict is most productive at moderate levels and least productive at very low or high levels. Others have argued for a simpler, linear relationship between conflict and performance, usually negative in nature. Various theories about the conflict-performance relationship are empirically tested in a large marketing channel, using a number of dyadic and monadic measures of conflict (latent, perceived, and affective) and two objective measures of performance (effectiveness and efficiency). A linear model (performance declining as conflict increases) is adequate to explain the relationship between dyadic measures of both perceived and affective conflict and channel effectiveness. A threshold model is found to be superior to a linear model in explaining the relationship between dyadic measures of perceived and affective conflict and efficiency. Conflict increases slowly as efficiency falls until a threshold is reached when conflict escalates. Practical implications include that companies need to consider whether performance criteria affecting efficiency are as important to their business partners as those affecting effectiveness. If they are not, then business partners should be rewarded for meeting any such criteria that are more important to the one side of a relationship dyad than to the other.     

Negative consequences of deep relationships with suppliers: An exploratory study in Poland

The dark side of buyer–seller relationships may be treated as an under investigated field of research. The main objective of this paper was to explore the negative consequences of being involved in deep supplier relationships. The data gathered from 92 in-depth interviews with purchasing managers were used for the qualitative data analysis. The negative relationship consequences identified in the study were assigned to six categories: supplier-specific forces, buyer-specific forces, relationship-specific forces, product-specific forces, network-specific forces and environment-specific forces.The study extends our knowledge about the negative consequences of deep supplier relationships in Eastern Europe by illustrating the complexity of the factors involved and the complex interactions that influence the context. An exploratory approach was taken which means that findings cannot be generalized to other contexts. However, this creates an avenue for further research.     

An Interim Report on Measuring Product Development Success and Failure

This article represents findings of a PDMA task force studying measures of product development success and failure. This investigation sought to identify all currently used measures, organize them into categories of similar measures that perform roughly the same function, and contrast the measures used by academics and companies to evaluate new product development performance. The authors compared the measures used in over seventy-five published studies of new product development to those surveyed companies say they use. The concept of product development success has many dimensions and each may be measured in a variety of ways. Firms generally use about four measures from two different categories in determining product development success. Academics and managers tend to focus on rather different sets of product development success/failure measures. Academics tend to investigate product development performance at the firm level, whereas managers currently measure, and indicate that they want to understand more completely, individual product success.     

Generalized vs. specific locus of control expectancies of chief executive officers

Hodgkinson (1992) recently advocated in this journal that measures of generalized control expectancies, such as the well known Rotter I-E scale (Rotter, 1966), are not suited to study the relationship between the locus of control beliefs of Chief Executive Officers (CEOs) on the one hand and strategic, structural and performance variables on the other hand. According to Hodgkinson (1992) a more specific scale, measuring strategic control expectancies, should be used in future research. We argue and empirically illustrate that such a methodology will not lead to interesting research results in the ‘strategic leadership’ domain. More specifically, measures of firm-specific control expectancies are likely to be influenced by the CEO's perception of the situational context of the firm and are therefore not indicative of fundamental personality differences between CEOs. Consequently, such measures cannot give an answer to the basic research question whether and why the personality of CEOs plays an important role in explaining organizational behavior and performance.     

Workforce Composition and Innovation: How Diversity in Employees’ Ethnic and Educational Backgrounds Facilitates Firm‐Level Innovativeness

This article studies how workforce composition is related to a firm's success in introducing radical innovations. Previous studies have argued that teams composed of individuals with diverse backgrounds are able to perform more information processing and make deeper use of the information, which is important to accomplish complex tasks. We suggest that this argument can be extended to the level of the aggregate workforce of high‐technology firms. In particular, we argue that ethnic and higher education diversity within the workforce is associated with superior performance in radical innovation. Using a sample of 3,888 Swedish firms, this article demonstrates that having greater workforce diversity in terms of both ethnic background and educational disciplinary background is positively correlated to the share of a firm's turnover generated by radical innovation. Having more external collaborations does, however, seem to reduce the importance of educational background diversity. The impact of ethnic diversity is not affected by external collaboration. These findings hold after using alternative measures of dependent and independent variables, alternative sample sizes, and alternative estimation techniques. The research findings presented in this article would seem to have immediate and important practical implications. They would suggest that companies may pursue recruitment policies inspired by greater ethnic and disciplinary diversity as a way to boost the innovativeness of the organization. From a managerial perspective, it may be concluded that workforce disciplinary diversity could be potentially replaced by more external links, while ethnic diversity could not.     

Product and international diversification among Japanese multinational firms

This paper examines the relationship of performance with product and international diversification on Japanese multinational firms from 1977 to 1993. We show the relationships between diversification and performance change over time through the use of multiple time periods and accounting for keiretsu membership. Results show that while diversity strategies vary between keiretsu and non‐keiretsu firms, performance is not much different. Across time periods, performance varies considerably, but strategies are less variable. Product diversity has weak effects on firm performance only in one time period, while international diversification has negative profitability and positive growth consequences in in some periods. These results suggest first that diversification strategies and their effects on performance vary across time periods and generally produce some unexpected findings. We do not find strong interactive diversity effects. Copyright © 2000 John Wiley & Sons, Ltd.