Absorptive capacity,learning, and performance in international joint ventures

This paper proposes and tests a model of IJV learning and performance that segments absorptive capacity into the three components originally proposed by Cohen and Levinthal (1990). First, trust between an IJV's parents and the IJV's relative absorptive capacity with its foreign parent are suggested to influence its ability to understand new knowledge held by foreign parents. Second, an IJV's learning structures and processes are proposed to influence its ability to assimilate new knowledge from those parents. Third, the IJV's strategy and training competence are suggested to shape its ability to apply the assimilated knowledge. Revisiting the Hungarian IJVs studied by Lyles and Salk (1996) 3 years later, we find support for the knowledge understanding and application predictions, and partial support for the knowledge assimilation prediction. Unexpectedly, our results suggest that trust and management support from foreign parents are associated with IJV performance but not learning. Our model and results offer a new perspective on IJV learning and performance as well as initial insights into how those relationships change over time. Copyright © 2001 John Wiley & Sons, Ltd.     

Care planning efficiency for nursing facilities

The project reported here is the first in a series of cost analyses regarding the care planning process among 107 facilities. Process-based costing strategies and data envelopment analyses identified nursing facilities with efficient and less-efficient care planning processes. Having more people and more time devoted to the care planning process did not assure quality or efficiency. Efficiency varied across the nursing facilities and was not related to number of beds, profit status, or location; however, Medicare-certified facilities were less likely to be efficient.     

Post‐Injury Work Outcomes Revisited

We use data for Ontario workers with permanent impairments resulting from work‐related injuries to investigate the complex relationships among post‐injury work outcomes: wages, accommodations, returning to the same or different employer, and duration of work absence. We argue the different aspects of post‐injury work experience may be jointly determined, making post‐injury job characteristics endogenous in a duration model. To explore the endogeneity issues we instrument post‐injury job variables from first‐stage equations and compare results from this “informed” model to a “naive” model that treats the variables as exogenous. We find that returning to one's pre‐injury employer is associated with more favorable post‐injury work outcomes, including higher wages, greater likelihood of job accommodations, and shorter durations of work absence relative to workers who change employers. We also find substantial differences between the naive and informed models, with accommodations having the predicted negative effect on duration only after we control for endogeneity.     

Duration of disability,job mismatch and employment outcomes

Workers with disabilities have functional limitations that affect their productivity in some, but not necessarily all, jobs. Workers who find a job that is a good match for their functional limitations (i.e. a job where their limitations have little or no impact on important job functions) should expect better employment outcomes (e.g. higher wages, longer job tenure) than workers with similar disabilities who are mismatched in their jobs. Merging data from the Survey of Income and Program Participation with O*Net data on job demands, we construct two continuous measures of job mismatch for workers with physical disabilities. We then extend the literature on disability and employment by exploring relationships between duration of disability, job mismatch, wages and hours worked. The results indicate that workers with long durations of disability are employed in jobs that are a better match to their physical limitations than are similar workers with shorter durations of disability. And, workers who are mismatched earn lower wages and work fewer hours than their counterparts whose jobs are a better match. Overall, the findings suggest that disability employment policies should include systematic efforts to help workers with disabilities find good job matches.     

Learning to collaborate through collaboration: How allying with expert firms influences collaborative innovation within novice firms

Research summary : Strategic alliances have been recognized as a means for firms to learn their partners' proprietary knowledge; such alliances are also valuable opportunities for partner firms to learn tacit organizational routines from their counterparts. We consider how relatively novice technology firms can learn intraorganizational collaborative routines from more experienced alliance partners and then deploy them independently for their own innovative pursuits. We examine the alliance relationships between Eli Lilly & Co. (Lilly), a recognized expert in collaborative innovation, and 55 small biotech partner firms. Using three levels of analysis (firm, patent, and inventor dyad), we find that greater social interaction between the partner firm and Lilly subsequently increases internal collaboration among the partner firm's inventors. Managerial summary : Can collaborating externally advance internal collaboration? Yes. Our research found that collaboration among scientists at small, early‐stage biotechnology firms significantly increased after these firms formed highly interactive R&D alliances with a large pharmaceutical company known for its expertise in such collaboration. It is well known that alliances help new firms learn specific new technologies and commercialize innovations. Our study broadens the scope of potential benefits of alliances. New firms can also learn collaboration techniques, deploying them internally to enhance their own abilities in collaborative innovation. Managers should take this additional benefit into consideration in developing their alliance strategies. Pursuing alliance partners with expertise in collaboration and keeping a high level of mutual interactions with partner firm personnel should be important considerations to extract this value. Copyright © 2015 John Wiley & Sons, Ltd.     

Sustainable growth rate of firms in financial distress

Sustainable growth rate defines the rate at which a company’s sales and assets can grow if the company sells no new equity and wishes to maintain its capital structure. The traditional formula assumes that the firm can increase its indebtedness. Many private firms and most firms in financial distress have limited or no access to debt markets. While distressed firms may prefer a no growth strategy, external pressures such as inflation or demand increases may cause their sales to rise exogenously. A new sustainable growth rate formula is developed that describes how much growth the firm with no new debt capacity can endure.     

STRATEGIC PROBLEM FORMULATION: BIASES AND ASSUMPTIONS EMBEDDED IN ALTERNATIVE DECISION-MAKING MODELS

This article reviews the major theoretical approaches to strategic decision-making and identifies how each treats the process of problem formulation. Five models of strategic decision-making are analysed to determine the assumptions and biases made about strategic problem formulation. Successful strategic problem formulation is described and proposed as a beginning point for future research. Some constructs for further theory development are addressed.