Management Decision

Cheng‐Li Huang; Fan‐Hua Kung

2011 Management Decision

doi: 10.1108/00251741111173916

Purpose – This study aims to discuss the impact that environmental consciousness and green intellectual capital had on competitive advantage. The study adopted green intellectual capital as an intervening variable to gain insight into how environmental consciousness indirectly affects competitive advantage. Design/methodology/approach – A questionnaire survey on the environmental consciousness and intellectual capital management of Taiwan's manufacturing firms was conducted, and 227 samples were analyzed. The research model investigates the relevant relationships among the constructs by using a structural equation modelling approach. Findings – Research results reveal that environmental consciousness had an indirect impact on competitive advantage through investment in green intellectual capital. It was thus known that green intellectual capital is a mediator of the relationship between environmental consciousness and competitive advantage. Originality/value – This paper may serve as a reference for firms mapping out future environmental policies and provide an input of various perspectives and arguments into the discipline of green management.

Malin Song; Shuhong Wang; Jie Wu; Li Yang

2011 Management Decision

doi: 10.1108/00251741111173925

Purpose – This article aims to discuss the binary matrix of spatial association which is suggested by Moran, and proposes a new method of the definition of the w matrix to obtain a new space‐time correlation coefficient considering the correlation of both time and space. Design/methodology/approach – From the perspective of the multi‐dimension of space and time, this article proposes a new computational method of a correlation coefficient considering both temporal and spatial factors, based on the analysis of the characteristics of Moran's Global Index and Moran's Local Index. The number of patents granted in mainland China's provinces and municipalities is taken as an example of multi‐dimensional analysis. Findings – The results of quantitative analysis using this space‐time correlation coefficient show that the outcomes calculated by this new correlation coefficient are not only highly correlated with Moran's Index, but also have advantages in analyzing the trends of both spatial and temporal indicators simultaneously, which is verified by the illustration of the algorithm. Research limitations/implications – Due to a scarcity of data in China, the algorithm is based on data for the last 20 years, which may not be long enough for this research. Although this does not reduce the value of the conclusions of this article, a closer look should be taken at the effectiveness of the new space‐time correlation coefficient in the future. Practical implications – The results of space‐time correlation coefficient are highly correlated with Moran's Index. In addition, it can not only analyze the “flow” indicators in a certain period but also analyze the “stock” indicators to reflect both space and time changes. These may reflect superiority of space‐time correlation coefficient to Moran's Index. Originality/value – This new correlation coefficient that considers both temporal and spatial factors and will provide a more scientific and effective tool for spatial econometric analysis in time and space changes of management on society and the economy.

Tsau‐Tang Yang; Ci‐Rong Li

2011 Management Decision

doi: 10.1108/00251741111173934

Purpose – This paper aims to extend research on exploration and exploitation by investigating the effects of competence exploration and exploitation on new product development outcomes in China. Premised from the perspective of environment‐performance relationship and the fit‐as‐moderation view, the authors argue that exploration and exploitation have curvilinear effects on new product development performance due to external environmental factors. Design/methodology/approach – The paper is based on a questionnaire survey/analysis of a sample of 289 firms in China. Findings – Consistent with the two perspectives mentioned above, the curvilinear link between competence exploration and new product performance was negatively moderated by environmental dynamism but positively moderated by environmental competitiveness. In contrast, the non‐linear effect of competence exploitation on new product performance was positively moderated by environmental dynamism but negatively moderated by environmental competitiveness. Originality/value – The exploration and exploitation‐performance link emerges as more complex than previous research has shown. The results indicate the need for simultaneous consideration of environmental dynamism and competitiveness as moderators in the discourse on the curvilinear effects of exploration and exploitation on new product performance.

Young‐Ryeol Park; Jeoung Yul Lee; Sunghoon Hong

2011 Management Decision

doi: 10.1108/00251741111173943

Purpose – The objective of this paper is to determine whether international entry‐order strategies by Korean chaebols affect the exit of their foreign subsidiaries. Design/methodology/approach – The sample consists of a set of 61 parent firms and their 500 foreign subsidiaries. The sample includes 27 Korean business groups, called chaebols , and spans 51 markets, during the period from 1999 to 2004. The study employs resource‐ and knowledge‐based views, and is based on the Cox's proportional hazard model. Findings – This study leads to two main findings: in the context of Korean business groups, latecomers in international markets have greater survival rates than pioneers do because latecomers have stronger resource commitments; and, nonetheless, if chaebol pioneers have greater competitive advantages than chaebol latecomers, the pioneers' subsidiaries have better survival rates than do those of latecomers. Originality/value – The analysis advances order‐of‐entry research by exploring the international order‐of‐entry strategies of chaebol multinationals and their impact on international exit and the interrelationship between the order‐of‐entry and core competencies of chaebol multinationals.

Peter Kmec

2011 Management Decision

doi: 10.1108/00251741111173952

Purpose – This paper aims to propose a risk identification method which is a synthesis of existing tools and techniques. Design/methodology/approach – Risks are viewed as a temporal hierarchy of major decisions or events at the highest level, projects at the middle level, and routine operations at the lowest level. Furthermore, risks emerge as organizational activities progress over time. The organizational activities, called movements in this paper, typically follow the phases of routine (operations) > major decision/event > project > adjustment > routine which correspond to the chosen temporal hierarchy. Risks are identified by examining the movements in all applicable phases of their development. The method was applied in a case study of an enterprise in the energy sector. Findings – Focus on movements bridges company silos. Risk logs make sense only when supplied with visualization tools. The future state of the enterprise's routines should be modelled early in the decision‐making process. Attention should be paid to changes that major decisions, events, and projects impose on organizational routines. Originality/value – The method belongs to the minority of approaches which explore risk evolution, relationships, and hierarchy rather than risk likelihood and impact. Risk evolution is explored by choosing movements as the basic units of risk identification. Risk relationships are detected on the level of routines where risk relationships are the least obvious but most important. The chosen hierarchy serves an enterprise‐deep view of risks and makes it possible to be alert for periods when the organization's risks change or new ones emerge.

Heng‐Yih Liu; Chia‐Wen Hsu

2011 Management Decision

doi: 10.1108/00251741111173961

Purpose – The main purpose of this paper is to introduce a comprehensive model explaining what affects the scope of the firm and also to find out its impact on firm performance. Design/methodology/approach – This paper is based on an empirical analysis of a sample of 312 hardware manufacturing companies in Taiwan. Findings – The research findings indicate that capability exploitation and upgrading will exert a positive influence on corporate diversification. In addition, corporate diversification will exhibit a curvilinear effect on firm performance. Practical implications – Under the logic of capability‐based growth, managers should manage portfolios of capability upgrading and capability exploitation; and then, managers have to conduct econometric analyses to find out a firm's optimal level of corporate diversification for performance maximization. Originality/value – This study attempts to propose a dynamic capabilities perspective, which suggests that the successful growth of a firm hinges on a strategic logic of capability‐based growth management containing both capability exploitation and capability upgrading, for exploring the antecedents and consequences of corporate diversification.

Christophe Lejeune

2011 Management Decision

doi: 10.1108/00251741111173970

Purpose – This paper aims to understand how an external assessment of resources, activities and performance contributes to continuously develop capabilities for business schools. Design/methodology/approach – The EQUIS accreditation framework is reorganized into a capability‐based model for business schools. Next, the case of a business school's experience with EQUIS is used to identify core‐capabilities. Findings – The paper emphasizes three core‐capabilities that are strengthened through the EQUIS accreditation process: strategizing, changing and branding. Originality/value – The paper argues that an accreditation process characterized by cyclical assessments and floating standards incorporates the features of a sustainable strategy for continuously developing capabilities within business schools.

Giulio Cainelli; Donato Iacobucci

2011 Management Decision

doi: 10.1108/00251741111173989

Purpose – This paper aims to show that the business group – i.e. the set of firms under common ownership and control – is the most appropriate unit to study the behavior and organization of firms and define their boundaries. Particular emphasis is given to notions such as unitary direction – i.e. the influence over strategic decisions – and administrative co‐ordination which allow owners to exercise supervision and authority over the controlled companies. Design/methodology/approach – Given these aims the paper adopts an interdisciplinary perspective that relies on economics, management and law. This multidisciplinary approach is necessary for analyzing the different aspects characterizing business groups in terms of ownership, control, economic synergies between firms and internal organizational mechanisms. To support the propositions, data and information from various sources are used, ranging from official statistics on the firm's population, to sample surveys, case studies and juridical evidence. The use of different sources is justified not only by the interdisciplinary nature of the problem but also by the lack of systematic statistical evidence on the phenomenon of business groups. Findings – The authors suggest that when a company is part of a group, the business group rather than the individual company is the most appropriate “unit” for analyzing the organization and behavior of firms. This does not deny that in some cases it can be worthwhile using the legal boundary as the appropriate unit; however, most of the empirical analyses about firms consider the legal boundary without considering whether companies are independent or part of a business group. Originality/value – The authors show that forms of unitary direction and administrative co‐ordination are common in business groups; these forms can be assimilated to the internal organization of firms. For this reason they propose that the group rather than the individual company is the appropriate unit to delimit the boundary of the firm. In this sense, their main conclusion is that not considering the business group underestimates the actual firm boundaries.

Lars‐Johan Åge

2011 Management Decision

doi: 10.1108/00251741111173998

Purpose – This study aims at developing a model that captures the reality of complex contemporary B2B selling processes. Design/methodology/approach – The grounded theory methodology was deployed in this study. In‐depth interviews and interactive lectures were used for data collection. Findings – This study indicates that contemporary B2B selling processes are complex and dynamic endeavours in which various (sometimes conflicting) interests are ultimately managed by the involved actors through a dynamic process best described as “business manoeuvring”. Research limitations/implications – Possible avenues of future enquiry include investigation of other industrial sectors in which the proposed model's description of selling processes is valid and assessment of the characteristics of companies (in terms of size and profitability). Practical implications – The model proposed in this study can be utilised by practitioners to impose a useful conceptual structure on otherwise fluid and intangible processes – thus making them easier to analyse and thereby facilitating strategic corporate decision‐making. Originality/value – Based on the real life experiences of the involved actors, this model describes that complex contemporary B2B selling processes are dynamic processes and not linear or sequential ones.