THE APPLICATION OF EMPIRICAL STRATEGIC MANAGEMENT RESEARCH TO SUPPLY CHAIN MANAGEMENT

Researchers in supply chain management (SCM) have traditionally relied most heavily on the core disciplines of logistics, marketing, and operations; most are less familiar with empirical literature in strategic management. However, with the evolution of logistics into the more interdisciplinary SCM along with increasing attention within strategic management to supply chain issues, recent empirical research in strategy has much to offer. This study reviews and categorizes more than one hundred articles relevant to SCM drawn primarily from top strategic management journals.     

The citizen versus consumer hypothesis: Evidence from a contingent valuation survey

This paper examines the criticism of contingent valuation put forth by Blamey, Common and Quiggin ( Australian Journal of Agricultural and Resource Economics , 1995, vol. 39, pp. 264–288). They argue that households have consistent preferences over private goods but not jointly consistent preferences over public and private goods and, hence, contingent valuation cannot uncover meaningful responses for the valuation of public goods. In this paper we argue that the motives that are manifested in choices for public goods can be explained in two ways. One is the model of the citizen, proposed by Blamey et al . (1995). The second is a model of neoclassical preferences with altruism. Given these alternative and competing explanations of choices for public goods, what matters is whether they imply differences in willingness to pay for public goods. We provide statistical evidence from a contingent valuation study of the control of deer in the USA that there is no difference in willingness to pay between those who profess 'citizen' or altruistic preferences and the rest of the presumably purely private respondents.     

The impact of cultural differences on buyer–supplier negotiations: An experimental study

In today's global economy, an ever-increasing number of companies are dealing with international partners, instigating a need to understand the impact of cultural differences on business interactions. Using Hall's distinction of high- and low-context culture, this study investigates the direct and moderating effects of cultural differences in dyadic buyer–supplier negotiations. Theory is developed regarding the impact of culture on joint profits, juxtaposing Transaction Cost Economics and the Relational View. The theory is tested with a negotiation experiment. Participants, classified by their country of origin, negotiate prices and quality levels for three products. This study finds that cultural differences within the negotiation dyad reduce joint profits when compared to dyads of participants with similar cultural backgrounds. Cultural differences also moderate the impact of trust and bargaining strategy on joint profits. Overall, this study concludes that cultural differences, as encountered in day-to-day business interactions in global supply chains, significantly impact negotiation outcomes.     

Cognitive‐Experiential Leadership Model: How Leaders’ Information‐Processing Systems Can Influence Leadership Styles,Influencing Tactics,Conflict Management,and Organizational Outcomes

The current article provides empirical evidence in support of a new Cognitive‐Experiential Leadership Model. The foundation of the model is based on the integration of the Cognitive‐Experiential Theory (CET; Epstein, 2014), a personality‐based theory, and the Full‐Range Leadership Theory (FRLT; Bass, 1985). Results show a strong connection between the rational system and constructive elements of the CET’s experiential system, and transformational leadership and conflict‐handling styles. There is also preliminary evidence that developing leaders’ CET information‐processing systems could increase transformational leadership. Leaders who are high in rational thinking and constructive thinking may also elicit extra effort from their followers, effectively manage conflict, choose effective influencing tactics, and achieve positive organizational outcomes. Implications and future research directions examining the Cognitive‐Experiential Leadership Model are discussed.     

State Foreclosure Laws and Mortgage Origination in the Subprime

Foreclosure procedures in some states are considerably swifter and less costly for lenders than in others. In light of the foreclosure crisis, an empirical understanding of the effect of foreclosure procedures on the mortgage market is critical. This study finds that lender-favorable foreclosure procedures are associated with more lending activity in the subprime market. The study uses hand-coded state foreclosure law variables to construct a numerical index measuring the favorability of state foreclosure laws to lenders. Mortgage origination data from state-border areas shows that lender-friendly foreclosure is associated with an increase in subprime originations, but has less effect on the prime market.     

The Effects of Contextual and Wrongdoing Attributes on Organizational Employees’ Whistleblowing Intentions Following Fraud

Recent financial fraud legislation such as the Dodd–Frank Act and the Sarbanes–Oxley Act (U.S. House of Representatives, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, [H.R. 4173], 2010; U.S. House of Representatives, The Sarbanes–Oxley Act of 2002, Public Law 107-204 [H.R. 3763], 2002) relies heavily on whistleblowers for enforcement, and offers protection and incentives for whistleblowers. However, little is known about many aspects of the whistleblowing decision, especially the effects of contextual and wrongdoing attributes on organizational members’ willingness to report fraud. We extend the ethics literature by experimentally investigating how the nature of the wrongdoing and the awareness of those surrounding the whistleblower can influence whistleblowing. As predicted, we find that employees are less likely to report: (1) financial statement fraud than theft; (2) immaterial than material financial statement fraud; (3) when the wrongdoer is aware that the potential whistleblower has knowledge of the fraud; and (4) when others in addition to the wrongdoer are not aware of the fraud. Our findings extend whistleblowing research in several ways. For instance, prior research provides little evidence concerning the effects of fraud type, wrongdoer awareness, and others’ awareness on whistleblowing intentions. We also provide evidence that whistleblowing settings represent an exception to the well-accepted theory of diffusion of responsibility. Our participants are professionals who represent the likely pool of potential whistleblowers in organizations.     

The block metric and the law of markets

The “Law of Markets” as originally stated by Fetter and amended by Hyson and Hyson is based on the assumption that the transportation of goods is along a line segment from firm to customer. In many situations the assumption that transportation is along a block-like network of roads is a better approximation of reality. In this paper we establish the “law of markets” appropriate to the block metric. We discover that with such a metric there exist significant discontinuities in a firm's demand functions and we argue that these discontinuities have important implications for the types of competitive strategies open to firms.