Antecedents of entry mode choice when diversifying

Corporate diversification is one of the broadest investigation topics in strategic management, but there are important gaps in the literature regarding entry mode choice. Few studies have examined the extent to which pre-entry conditions influence the choice of entry mode into new businesses. Past research has focused exclusively on internal development and acquisition as ways of entering new businesses, without considering the existence of hybrid forms, such as strategic alliances, that have experienced extensive growth during the last decade. Here we present an in-depth analysis of entry mode choice that uses an integrative perspective of corporate diversification and considers strategic alliances as an alternative to traditional approaches. A survey of 272 domestic diversifying entries by 155 Spanish firms allows us to characterize the use of cooperative agreements in diversification and to stress the role of inter-firm cooperation in acquiring the knowledge and capability required to grow into new businesses.     

Roles, role performance, and radical innovation competences

Despite the importance of radical innovations (RI), few firms have the capability to develop such innovations internally; success is increasingly linked with relationships and networks. However, the way(s) in which relationships and networks support RI is less clear. Successfully launching RIs requires the development of four distinctive competences; discovery, incubation, acceleration and commercialization. This paper examines how networks support the development of RIs, focusing on when and how network partners become involved and how their role performances support the development of the four competences. The study context is the automotive industry, which is heavily dependent upon RI and complex interrelationships. Data were collected through in-depth interviews with network participants involved in developing several RIs. Five task-oriented and three network-oriented roles are uncovered and the performance of these roles supports the development of different competences, with some roles being exclusively connected with particular competences and others supporting several competences. Focusing on role performance offers a useful means for distinguishing between acontextual actors, and the activities and resources they bring. In doing so, the paper enhances understanding of the links between network participants, role performances and the development of RI competences, and identifies a number of important implications for theory and practice.     

The network perspective and the internationalization of small and medium sized software firms from Syria

This study has employed a case-based approach to explore the relevance of relational factors in explaining the internationalization of six software B2B SMEs from Syria. It contributes by providing rare empirical insights on the internationalization behavior of Middle Eastern SMEs and redressing, albeit slightly, the apparent research gap in the internationalization of knowledge-based SMEs from developing countries. Analysis results suggest the importance of the relational perspective in explaining the initial internationalization, market selection and internationalization speed of the investigated software firms. It emerged that the case firms either reacted to the cross-border opportunities offered by their relational contacts or proactively pursued overseas opportunities through existing and newly developed relationships. Their market entry decisions and internationalization pace also appear to have been influenced by these relationships. Both social and business networks were found to be important, but social ties seemed more influential at initial stages, with business networks becoming more dominant subsequently. The article concludes with appropriate recommendations for managerial decision making and future research.     

Economic development and resource degradation: Conflicts and policies

The paper develops a model that shares common features with computable general equilibrium (CGE) models. It is used to address two questions. First, what are the future prospects of a green gross domestic product (GDP); should we be concerned with resource degradation or not; and, to what extent, and under which conditions? Secondly, which policies are more effective than others? Model closures are simulated using different specifications of exogenous variables. Further, alternative policies are treated: human capital, price incentives, property rights and poverty reduction. In the African context, we show that while the prospects of environment-friendly economic development, i.e. a rising green GDP, are weak in the medium-run, under certain structural conditions there is a range of effective policies that resolves the conflict between economic growth and resource degradation, thus contributing to a rising green GDP.     

Sales channel integration after mergers and acquisitions: A methodological approach for avoiding common pitfalls

This article addresses the integration of sales channels after mergers and acquisitions (M&A) by appraising the strengths, weaknesses, and biases associated with the four most common frameworks for evaluating sales channels (sales management, historical performance, strategic fit, and customer choice) for their appropriateness in a post-M&A context. The authors develop a methodological approach that uses a balanced-scorecard framework to guide managers through the sales channel integration process, and then apply this approach to the merger of two industrial firms' sales organizations across 21 territories. In so doing, they reveal various pitfalls and propose and test some analytical corrections. Longitudinal performance data support comparisons across the different evaluative frameworks; in particular, the sales management and customer choice frameworks provide the most insight into channel partners' post-integration performance. The results support the premise that channel integration can be improved by accounting for factors unique to the M&A context and using an approach that triangulates multiple perspectives.     

Bounded socio-technical experiments as agents of systemic change: The case of a zero-energy residential building

Large-scale shifts in dominant technologies are the necessary components of a transition toward sustainability. Such shifts are difficult because, in addition to technological innovation, they require changes in the existing institutions, professional norms, belief systems and, in some cases, also lifestyles. In the languages of cognitive and policy sciences, higher order learning on a scale ranging from individuals to professional and business communities, to the society at large, is needed. Higher order learning is especially crucial in the types of innovations that depend mainly on synthesis of existing technologies and know-how to achieve radical reductions in energy and material consumption, as is the case with high performance buildings. One way to facilitate this type of learning is through experimentation with new technologies and services.Drawing on our earlier concept of a Bounded Socio-Technical Experiment, in this paper we propose a four-level conceptual framework for mapping and monitoring the learning processes taking place in a BSTE, and apply it to an empirical case study of a zero-fossil-fuel residential building in Boston. Three major conclusions are that: learning took place both on the individual and team level, that individual learning primarily (but not exclusively) involved changes in problem definitions; and that team learning consisted of participant turnover until congruence in worldviews and interpretive frames was achieved. This case study also shows that we must think of innovating in building design as both a process and a product, and that both must be considered in the future efforts to replicate this building.This study highlights that technological innovation about technology as much as about people, their perceptions, and their interactions with each other and with the material world. Sustainability will not be reached by technology alone, but by deep learning by individuals, groups, professional societies and other institutions.     

On the assignment of students to topics: A Variable Neighborhood Search approach

This article presents a study of a practical assignment problem found in teaching within higher education. Here, students are assigned to scientific topics for which written papers must be submitted. Often, preferences across topics exist among other side constraints that should be considered in solving the problem of interest. Characterizing attributes of real-world problems were studied for scientific departments in Economics and Business Administration at German universities by sending out 800 questionnaires, and analyzing the 203 responses.Based on earlier studies, a Variable Neighborhood Search (VNS) approach was formulated to solve the resulting assignment problem. Several neighborhood search operators were tested, and numerical results are reported for a range of problem scenarios taken from real-world cases. It was observed that VNS leads to superior results vs. single operator local search approaches. Furthermore, we were able to show that in the studied problem, the effectiveness of certain neighborhoods was, to a large extent, dependent on the structures of the underlying problem.An extension of the problem was formulated by integrating a second objective function, which simultaneously balances the workload of staff members while maximizing student utility. The VNS approach was implemented in a computer system, available free of charge, providing decision support for selected other institutions within higher education.     

Real Business Cycle Models: An Introduction

In this article we present a simple real business cycle (RBC) model, in order to show that these models capture many of the features of business cycles in the real economy. While these models are very abstract, we argue that they are a useful way of thinking about the macro-economy. RBC models have also been influential in refocusing attention on supply issues in macroeconomics, after a long postwar focus on aggregate demand management in Australia and most other western economies. Policies such as structural reform and labour market reform are clearly aimed at influencing the supply side of the economy and productivity, and can be understood within the framework of RBC theory. RBC models have developed rapidly recently, yet there remains a good deal of misunderstanding about the methods and aims of these models. In this article we present a review of the literature and examine a simple model, using graphical techniques, to clarify some issues. We also argue that these models, while having limitations, have caused a fruitful re-examination of supply issues in economics, after the almost exclusive focus on aggregate demand in macroeconomics until the late 1970s.