Patterns of strategic alliances between rival firms

This article describes the results of a research project which examined 171 alliances set up by competing firms in an international context. It presents an empirically-based taxonomy of such alliances constructed on the basis of a set of variables chosen for their demonstrated or assumed influence on the evolution and outcomes of strategic partnerships. Three contrasted types of alliances are identified: quasi-concentration alliances, market penetration alliances and shared supply alliances. They differ according to two fundamental dimensions: their symmetrical or dissymmetrical nature and the way in which they alter competition. Legal structure, often emphasized in previous research on the subject, does not emerge as a strongly discriminating factor. Hypotheses on the likely evolution and outcomes of each type of alliance are derived from the taxonomy.We are grateful to Barbara Gray, Stuart Hart, Aneel Karnani, Will Mitchell, Michel Tenenhaus, and to two anonymous reviewers for their very valuable and helpful comments on earlier drafts of this article. Our research project was funded by Fondation HEC, whose support we gratefully acknowledge.     

Consumption and exchange rate uncertainty: Evidence from selected Asian countries

We set out to assess the effects of exchange rate uncertainty on real consumption in selected Asian countries. Consumption influences business cycles, which in turn shape short-run monetary policy decisions. Hence, understanding factors driving consumption is appealing to policymakers. To date, few studies have analysed the effects of uncertainty on consumption. The available ones generally focus on the long-run effects, in spite of the fact that the short-run persistence and adjustments to equilibrium are equally relevant. Our study takes these limitations seriously by distinguishing the short- and long-run effects of exchange rate uncertainty on consumption. Using a flexible dynamic panel data technique that allows long-run effects to be homogeneous and the short-run effects to be heterogeneous, we find that uncertainty impedes consumption in the long run. In the short run, however, the effects are immaterial. This evidence remains robust to the measure of uncertainty, asymmetric uncertainty, inflation and the global financial crisis of 2008. By decomposing uncertainty into its temporary and permanent components, we find that the latter have a stronger effect on consumption in the long run than the former. Although both components demand policy attention, the evidence suggests that policymakers should be more concerned with permanent uncertainty.     

The Global Financial Crisis and Its Impact on Australian Bank Risk

This paper examines the global financial crisis (GFC) and its impact on Australian banking risk. An augmented market model is developed to identify changes in listed Australian bank systematic risk in relation to three key events: the GFC's start in August 2007, the market downturn in Australian and global share markets in January 2008, and the announcement of Australia's Deposit and Wholesale Funding Guarantee (DWFG) scheme on 12 October 2008. The study also examines changes in bank systemic risk during these event periods. The Australian market offers a unique opportunity to observe the impact of the introduction of the DWFG in that it lacked any explicit deposit insurance prior to the crisis. Initially, the crisis period had little impact on bank systematic risk while bank systemic risk increased considerably. The share market downturn caused a marked increase in both systematic and systemic risks for Australia's major internationally connected banks followed by a reduction in both systematic and systemic risks with the introduction of the guarantee scheme for all Australian banks.     

Implementing corporate social responsibility through social partnerships

This paper examines how corporate social responsibility (CSR) is implemented through social partnerships. Drawing on previous literature and case study research, it presents a conceptual model of the process of implementation. An exploratory case study of the social responsibility partnership programme at the Union of European Football Associations (UEFA) has been conducted. The case study draws on interview data and documentary sources of evidence gathered from UEFA and the six partner organisations that comprise its CSR portfolio. The conceptual model identifies three stages of the implementation process (selection, design, management), with partnership evaluation being an ongoing process during all three. The latter consists of two elements, namely project and process evaluation. A key finding is the lack of process evaluation due to a high degree of inter‐personal trust. The conceptual model adds to the growing body of research on the implementation of social partnerships and CSR. This paper is also the first to empirically explore the process of CSR implementation through social partnerships in the football sector.     

CCT applied research and the limits of consumers’ heroicisation

Abstract

The sum total of the research produced by Consumer Culture Theory (CCT) researchers has enabled a spectacular improvement in our understanding of markets and consumption. Yet, this knowledge has struggled to penetrate the business world due to a dearth of practical proposals appealing to managers looking for action-guiding toolkits. Based on a relatively small corpus of CCT-related articles published in the main applied journals with academic values, the present article traces the contours of CCT managerial knowledge revolving around the concept of cultural branding and composed of four main approaches: relationship marketing, retromarketing, tribal marketing and collaborative marketing. The article also synthesises the contributions that CCT researchers propose for each of these approaches and discusses the limits of the heroicisation of the consumers. The conclusion looks at potential research paths for the dissemination of CCT applied kind of knowledge.     

Leaders’ Personal Wisdom and Leader–Member Exchange Quality: The Role of Individualized Consideration

Business scholars have recently proposed that the virtue of personal wisdom may predict leadership behaviors and the quality of leader–follower relationships. This study investigated relationships among leaders’ personal wisdom—defined as the integration of advanced cognitive, reflective, and affective personality characteristics (Ardelt, Hum Dev 47:257–285, 2004)—transformational leadership behaviors, and leader–member exchange (LMX) quality. It was hypothesized that leaders’ personal wisdom positively predicts LMX quality and that intellectual stimulation and individualized consideration, two dimensions of transformational leadership, mediate this relationship. Data came from 75 religious leaders and 1–3 employees of each leader (N = 158). Results showed that leaders’ personal wisdom had a positive indirect effect on follower ratings of LMX quality through individualized consideration, even after controlling for Big Five personality traits, emotional intelligence, and narcissism. In contrast, intellectual stimulation and the other two dimensions of transformational leadership (idealized influence and inspirational motivation) did not mediate the positive relationship between leaders’ personal wisdom and LMX quality. Implications for future research on personal wisdom and leadership are discussed, and some tentative suggestions for leadership development are outlined.     

Re-branding brand genericide

Genericide refers to situations where brands lose their legal protections due to the fact that their original name has become the generic term for a new category of products in the market that the brand first helped to create. Despite notorious instances of brands falling prey to this curse, marketing specialists—unlike lawyers—generally do not consider that the widespread use of a brand name represents any real danger and instead view it as a sign of brand strength. Herein, we take a new look at this debate, using a case study of Google to re-investigate the phenomenon of genericide. The article also offers managerial guidance on the most effective ways of developing genericization and avoiding genericide. It concludes by pointing out the need for brand managers to precisely differentiate between different types of brands and markets when deciding whether they should protect themselves from the risk of genericide or else encourage the genericization of their brand.     

Entrepreneurship and innovation in Ghana: enterprising Africa

This study adopts a multi-level theoretical framework to examine data from 496 entrepreneurs in Ghana. Seven types of innovation activity are analysed against three categories of variables: the characteristics of the entrepreneur, the internal competencies of the firm, and firm location. Across all respondents, the incidence of incremental innovation was far greater than novel innovation. The extent of innovation was related to the education level of the entrepreneur. Firm size and involvement in exporting were positively related to innovation, but firm growth is less systematically so. Innovation was greater in firms located in conurbations compared to firms located in large and small towns. We conclude with suggestions for policy to promote entrepreneurship and innovation in Ghana.      

Investment in Africa's Manufacturing Sector: A Four Country Panel Data Analysis

Firm level data for the manufacturing sector in Africa, presented in this paper, shows very low levels of investment. The importance of profit effects on investment is investigated using a flexible accelerator, a specification based on the Euler equation and a simple generalisation of these specificiations. There are controls for firm fixed effects. It is shown that the profit effect is very similar for both the accelerator and Euler equation specifications. A comparison with other studies shows that, for small firms, the effect is much smaller in Africa than for other countries. Reasons for the relative insensitivity of investment to profits in African firms are suggested. For the most general specification tested there are no significant differences in the size of the profit effect across the four countries in the study.