MARKETING/LOGISTICS RELATIONSHIPS: INFLUENCE ON CAPABILITIES AND PERFORMANCE

Effective marketing/logistics relationships can help to create, develop, and maintain critical capabilities to support long‐term firm success. Recent research focuses on two distinct capabilities—information capabilities and firm‐wide integration. Empirical results are provided confirming the proposed relationship between marketing logistics relationship effectiveness and the two capabilities. Further, the capabilities are shown to positively impact logistics performance.     

Balancing social and political strategies in emerging markets: Evidence from India

This article explores the substitution and complementary effects between political and social strategies on firm performance in the context of an emerging market (EM). Using in‐depth, historical case‐study approach, the article investigates how companies integrate political and social resources in this market. Corporate performance includes traditional measures, such as accounting performance and nonfinancial measures like the ease of doing business. The study finds that social strategies are stronger enablers of firm long‐term performance than political strategies. The latter have a short‐term impact on performance, but their success over time is limited. The main drawback of reliance on political resources in EMs is the lack of political stability, fragmented polity, and weak political coalitions. We identify rather limited evidence of firms using these two strategies as complements. Thus, we suggest that firms should employ both these strategies in the EM.     

The evolution of alliances in the global airline industry: A review of the African experience

In an increasingly globalized world, alliances have proliferated in one industry after another, and the competitive game has shifted from firm versus firm to group versus group, leaving many firms operating on the margins of these constellations. Using the case of the global airline industry, this article examines how the shift from bilateral to multilateral alliances has left many African airlines operating on the margins of the global airline alliances groupings. We conjecture that a number of internal organizational factors, such as size and lack of access to scarce resources, and external factors, such as a slow market‐reform process and insufficient reform of state‐owned airlines, have hindered their success in a highly competitive environment. The theoretical, managerial, and policy implications of these findings are discussed. © 2011 Wiley Periodicals, Inc.     

A double-edged sword? The antipodal effects of institutional distance on partner selection in cross-border alliances

Careful partner selection is a prerequisite for successful alliances. I posit that institutional distance will influence partner selection in international technological alliances negatively for exploitation, and positively for exploration alliances. A longitudinal dataset of firms in the global tire industry confirms firms’ preference for similar cognitive, normative, and regulatory partners in exploitation alliances, and a preference for dissimilar partners in exploration alliances. However, the latter is true for differences across the regulative and cognitive pillars rather than for normative differences. These findings attest to the antipodal role of institutional differences in the selection of prospective partners for cross-border technological alliances.     

Identifying the Factors that Affect Interest‐Rate Swap Spreads: Some Evidence from the United States and the United Kingdom

We assess the ability of the factors proposed in previous research to account for the stochastic evolution of the term structure of the U.S. and U.K. swap spreads. Using as factor proxies the level, volatility, and slope of the zero‐coupon government yield curve as well as the Treasury‐bill—London Interbank Offer Rate (LIBOR) spread and the corporate bond spread, we identify a procyclical behavior for the short‐maturity U.S. swap spreads and a countercyclical behavior for longer maturity U.S. swap spreads. Liquidity and corporate bond spreads are also significant, but their importance varies with maturity. The liquidity premium is more important for short‐maturity swap spreads, although the corporate bond spread affects long‐maturity swap spreads. For the United Kingdom, swap spreads are countercyclical across maturities. In addition, we find that shocks to the liquidity premium are more significant for long‐maturity swaps and that the links between corporate bond markets and swap markets are much stronger than in the United States. When we look at the links between U.S. and U.K. swap markets, we identify a significant influence of the U.S. factors on the U.K. swap spreads across maturities. © 2001 John Wiley & Sons, Inc. Jrl Fut Mark 21:737–768, 2001     

International ambidexterity and firm performance in small emerging economies

Conventional IB theories stress the importance and implications of a firm's exploitative strategy. However, the unprecedented competitive nature of contemporary business necessitates firm “ambidexterity” — the simultaneous execution of exploitation and exploration activities. Using balanced panel data of 207 Taiwanese firms spanning six years, this research examines the effects of international ambidexterity on firm performance. Findings reveal that ambidexterity promotes a firm's performance. For firms from small emerging economies, international ambidexterity is highly vulnerable to environmental complexity and sensitive to previous international experience and the firm's capability to conduct international business. These factors significantly moderate firm performance.     

Alliance-Based New Product Development Success: The Role of Formalization in Exploration and Exploitation Contexts

Purpose: Although alliances offer tremendous strategic potential, firms still struggle to successfully manage new product development alliances (NPD alliances). A prominent explanation for this is the institutional economics' view (see Williamson 1985 Williamson, O. E. 1985. The economic institutions of capitalism: Firms, markets, relational contracting, New York: The Free Press.  [Google Scholar]) that, in general, a key disadvantage of alliances versus vertical integration is that administrative control mechanisms are weaker. Here, a key control mechanism is formalization (the use of explicit rules to govern business activities).

However, regarding formalization's influence on both NPD and alliance performance, conceptual views and empirical findings are mixed, which suggest that unexamined variables moderate formalization's influence on NPD performance.

Therefore, it is surprising that there is no research on whether formalization's influence differs in alliances pursuing an NPD exploration strategy versus an NPD exploitation strategy because both (1) require varying levels of freedom of action and adherence to procedural rules to achieve success, and (2) are extensively employed in NPD.

Further, there is also surprisingly little intrafirm NPD and non-NPD alliance research on formalization in exploration and exploitation contexts because here as well formalization's influence on performance (1) is central, and (2) differs based on the project's innovative and learning intent.

The purpose of this research is to begin to close important literature and industry practice knowledge gaps about formalization's influence on NPD alliance performance in exploitation versus exploration strategic contexts.

Originality, value, and contribution: This research is the first examination ever of two key NPD strategies—exploration and exploitation—in an NPD alliance context. The research sheds light on conflicting views about formalization's NPD performance-enhancing and inhibiting aspects, and offers implications for industry best practices.

Methodology/approach: Empirical examination of survey data from 151 NPD alliances via hierarchical regression and tests of group moderation.

Findings: Results shed light on when and why formalization moderates the influence of key fundamental alliance success mechanisms on NPD alliance performance based on strategic context.     

Modeling the conditional mean and variance of the short rate using diffusion,GARCH, and moving average models

This article introduces a two‐factor‐discrete‐time‐stochastic‐volatility model that allows for departures from linearity in the conditional mean and incorporates serially correlated unexpected news, asymmetry, and level effects into the definition of conditional volatility of the short rate. The new class of econometric specifications nests many popular existing symmetric and asymmetric GARCH as well as diffusion models of the short‐term interest rate. This study attempts to determine the correct specification of conditional mean and variance of the short rate by developing a more general econometric framework that allows for nonlinear effects in the drift of the short rate, and that defines the conditional volatility as a nonlinear function of unexpected information shocks and interest rate levels. The existing and alternative models are compared in terms of their ability to capture the stochastic behavior of the short‐term riskless rate. The empirical results indicate that the relative performance of the two‐factor models in predicting the future level and variance of interest‐rate changes is superior to the nested models. © 2000 John Wiley & Sons, Inc. Jrl Fut Mark 20:717–751, 2000     

The mediating role of alliances in the international market orientation-performance relationship of smes

Enhancing international performance is a critical issue for internationalizing SMEs. Researchers have suggested that firms need to enhance their international market orientation (IMO) in order to increase performance; but the way this association works is rather unexplored. This is important for both theory and practice since its exploration would lead to a better understanding on how SMEs can effectively enhance their international performance. In this paper, we examine whether alliances through which firms access knowledge and resources play a mediating role in the IMO and performance relationship. We investigate our hypothesis on a sample of 94 companies based in the United Arab Emirates. We discovered that alliances mediate the IMO-performance relationship and we extend the knowledge- and resource-based views of the firm.     

Unpacking the effect of strategic ambidexterity on performance: A cross-country comparison of MMNEs developing product-service innovation

This study tests whether strategic ambidexterity improves Product-service innovation (PSI) outcomes for manufacturing multinational enterprises (MMNEs). It also tests successful pathways to develop PSI properly by organizing exploitation and exploration activities. Data from a survey of 338 MMNEs are analysed through Structural Equations Modelling. The sample contains firms from five world regions, including emerging economies. This approach enables contrast to determine cross-country heterogeneity in PSI outcomes. The results show that, to maximise firm performance, PSI must be developed through a sequential Exploitation-Exploration pathway. Although this optimal sequence is consistent across all world regions (except Japan), noticeable contextual differences emerge in the relative importance of exploration and exploitation to firm performance. Our findings show that exploitation (i.e., cost efficiency through PSI design) and exploration (i.e., PSI R&D) capabilities are equally important in emerging economies.     

管理层持股与公司绩效:基于管理层收购的实证研究

以1997至2009年管理层收购进行私有化的66家国有企业作为研究对象,研究管理层持股与公司经营绩效的关系。结果表明:管理层收购对公司绩效的影响在短期存在负向作用的倾向,而在长期内影响并不显著。考虑到管理层持股变化可能对公司绩效产生的影响,进一步分析持股变化率与公司绩效的关系发现,若持股变化率处于+31%~+50%,-31%~-50%,公司业绩指标将呈现正向变化的趋势,从而反映出管理层收购对公司绩效的积极作用。     

Organizational Expansion to Underserved Markets: Insights from African Firms

Although scholars have highlighted the need for firms to explore and exploit market opportunities in underserved markets to achieve superior performance, emerging‐market firms’ strategic choices and constraints in such environments remains an underexplored area. Drawing on insights from the intra‐Africa air travel sector, we uncovered that the intense competitive pressures on inter‐African routes has intensified both exploration and exploitation activities on the intra‐African market as firms seek to mitigate the competitive effects. We also found that the firms’ exploitation activities have been punctuated by a number of firm‐specific and institutional factors. The theoretical and managerial implications of these findings are discussed. © 2014 Wiley Periodicals, Inc.     

Effects of Relational Capabilities and Power Asymmetry on Innovativeness and Flexibility of Sub‐Sahara Africa Small Exporting Firms

The objective of this study is to examine the effects of relational capabilities and exercise of power on innovativeness, flexibility, and performance of Sub‐Sahara Africa small exporters. Data from a sample of 206 small fresh produce suppliers in Zimbabwe that had long‐term relationships with retail buyers in export markets were analyzed using structural equation modeling. Findings suggest that long‐term cooperation between small suppliers and buyers negatively influenced innovativeness and flexibility. However, trust and commitment, as well as dependence, positively impacted innovativeness of small suppliers but had negative effects on flexibility. Further, innovativeness negatively influenced firm performance, whereas a positive link emerged between flexibility and performance.     

Building a Sustainable Bank: The Case of GTBank of Nigeria

GTBank of Nigeria has, in just 20 years, developed into one of the most profitable and sustainable financial institutions in Africa. The case identifies the choices that helped the bank emerge successful from several shocks to the Nigerian financial sector and has implications for other financial institutions trying to balance sustainability and profitability. On the basis of eight years of research on the bank, we illustrate six factors that have characterized its success: (1) effective leadership, (2) a focus on people rather than strategy, (3) adopting a simple and focused strategy, (4) a culture of sustainable banking, (5) confronting effectively the external environment, and (6) exploitation of technology to accelerate the business. GTBank’s story raises questions about what makes a company sustainable and analyzes the decisions that executives need to make, often in challenging external circumstances, in order to preserve the long‐term sustainability of an organization. © 2014 Wiley Periodicals, Inc.     

Overcoming the Liability of Foreignness in Internationalization in Emerging Economies: Lessons from Acquiring a Chinese Firm

How foreign investors overcome the liability of foreignness has long been a topic for discussion in the study of inter nationalization. Whether MNCs rely on exploration or exploitation, especially in emerging economies, has not been adequately understood. Drawing on the theory of ownership advantage and local responsiveness, this study addresses the controversy in the literature by investigating the approaches to, and processes of, overcoming the liability of foreignness from a processual analysis. It reports on a case study of an American company's acquisition of a private Chinese firm. It concludes that exploration and exploitation are not merely simultaneous. Rather, these strategies are able to assimilate and deploy different categories of resources in order to build the basis for the exploitation of localization‐based resources in the later stage of integration. The findings of this study are not limited to emerging context but can be extended to any circumstance in which information deprivation exists. © 2014 Wiley Periodicals, Inc.     

The feasibility of currency union in Gulf Cooperation Council countries: A business cycle synchronisation view

This paper study the feasibility of a monetary union among Gulf Cooperation Council (GCC) countries, by measuring the evolution of economic integration among them. Considering the critical role of crisis and shocks in the integration process within the region, we determine whether GCC countries are characterised by a common business cycle. We suggest a different empirical approach that, unlike previous studies, allows one to endogenously detect structural changes in the comovement process between outputs. We apply a new measure for this region that is based on the time‐varying coherence function. Such a measure not only detects comovement dynamics but also distinguishes these dynamics in terms of short‐ and long‐term cycles. Additionally, we can test whether certain countries tend to be more synchronised. The main finding of this study is that not all GCC countries share a common short‐term business cycle. However, in the long term, all country‐pairs indicate a medium‐level synchronisation in the most recent subperiods. The new role of the United Arab Emirates’ regional trade platform allows it to strengthen long‐term business cycle comovement, thus differentiating it from other GCC country‐pairs that have shown a decline in the last two subperiods.     

Equity volatility,bond yields,and yield spreads

This study examines the impact of implied and contemporaneous equity market volatility on Treasury yields, corporate bond yields, and yield spreads over Treasuries. The CBOE VIX is the measure of implied volatility, and the measure of contemporaneous volatility is constructed using intraday squared S&P 500 returns. We find that bond yields and spreads respond to changes in equity market volatility in a manner consistent with a flight‐to‐quality effect. Both short‐ and long‐term Treasury yields fall in response to increases in implied volatility, and the yield curve flattens modestly. Yields on short‐term investment grade bonds fall in response to contemporaneous volatility shocks, while long‐term spreads on low‐quality issues widen. This indicates that investors “look ahead” in anticipation of changes in equity market volatility but respond more strongly to changes in contemporaneous market activity. © 2011 Wiley Periodicals, Inc. Jrl Fut Mark     

Exploration and exploitation fit and performance in international strategic alliances

Exploration and exploitation constitute two separate, potentially conflicting strategic choices for firms engaged in international strategic alliances. Our empirical study challenges the ambidexterity argument and demonstrates that exploration and exploitation are separate (though not necessarily antithetical) strategies with different antecedents and performance consequences.Our results show that while competency similarity is conducive to upstream innovative performance, prior experience with the partner is potentially damaging for this type of performance and trust and cultural distance do not play significant roles. When the motive is efficiency and downstream market performance, prior experience with the partner instead is beneficial, as are high levels of trust and low levels of cultural distance. These findings have key implications for literature on strategic fit and alliance performance.     

中美贸易摩擦下外向型企业的应对与政策诉求--基于2019年“降成本”调查的分析

本文以2019年"降成本"调查为基础,从外向型企业视角考察中美贸易摩擦对中国经济发展的影响与冲击。研究发现,短期内中美贸易摩擦的负面效应相对有限,但其将通过增加生产经营环境的不确定性而在中长期产生较大的不利影响。外向型企业通过减少生产、分摊成本、加大研发投入等方式予以积极应对,但这些措施存在双重不确定性:一是市场留给企业实现转型升级的时间窗口并不明确;二是企业的自发应对可能给国民经济带来就业压力增加、产业链断裂、传统产业创新发展受阻、对外依赖度增大等风险。因此,各级政府应从外向型企业的迫切诉求着手,通过深化改革、加强服务、完善政策等为企业创造公平、稳定、可预期的发展环境,以自身高质量发展来应对内外部冲击的挑战。