Journal of Strategy and Management

Steiner, Bodo; Lan, Kevin; Unterschultz, Jim; Boxall, Peter

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-06-2016-0040

PurposeThe purpose of this paper is to explore drivers of alliance formation in a specialized supply chain from a manager’s perspective, focussing on firm-specific resources, resources embedded in inter-firm relationships and capabilities under the control of the focal firm.Design/methodology/approachThis paper focusses on the resource-based view to obtain insights from the analysis of a manager survey conducted in Canada’s beef sector, applying a logistic regression approach to study alliance formation.FindingsIn identifying significant roles for resource richness and diversification of resource usage, the analysis highlights the importance of resource characteristics underlying factor market imperfections as drivers of alliance formation in a single primary input supply chain. The results suggest that resource heterogeneity is important for alliance formation and organizational success in specialized supply chains.Research limitations/implicationsIf previous alliance-related experience of managers, controlled for in the underlying cross-sectional survey, serves as an approximation for persistent unobservables impacting the alliance formation decision, we may face spurious state-dependence.Practical implicationsManagers interested in building compatible alliances in specialized single primary input supply chains may benefit from an improved understanding of the differential role of resource characteristics and resource heterogeneity for alliance formation, as these can function as a source of competitive advantage.Originality/valueThe analysis provides new insights from an individual manager’s perspective on alliance formation drivers in a specialized agri-food supply chain, thereby solidifying extant findings on alliance formation obtained in other sectors. The study contributes to the understanding of the role of resources in alliance formation with regard to prior relationship experience, resource heterogeneity and thus causal ambiguity, thereby also contributing to the debate of the role of relational capabilities vs firm-internal resources for sustained competitive advantage.

de Waal, André; Habil, Dalia S.F.; Goedegebuure, Robert

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-03-2016-0021

PurposeNowadays, it is rare to find an organization that operates in isolation, without the need to partner with other organizations. Partnerships offer firms access to new technologies, markets, and knowledge. During the process of transforming into a high performance organization (HPO), an organization will eventually find itself operating within a bigger value chain. The purpose of this paper is to identify the factors and practices that can help Egyptian ICT companies to become better members in such a partnership, in a way that enables full benefit to be gained from the partnership.Design/methodology/approachThe study used a questionnaire based on the high performance partnership (HPP) framework that has previously been validated in the Western and Asian contexts. The questionnaire was distributed to seven Egyptian ICT organizations who partnered with each other, after which a exploratory factor analysis (EFA) was performed on the collected data to identify the factors that influence the success of partnerships between Egyptian ICT companies.FindingsThe EFA showed that five (of the original ten) factors from the HPP Framework achieved a high reliability while 47 of the original 54 underlying characteristics applied in the Egyptian ICT context. In addition, these five HPP factors had strong positive relations with the success of the partnership as perceived by partners. Interestingly, the HPO scores of individual partners also had a positive effect on the perceived success of the partnership.Originality/valueThis study fills the lacuna that currently exists in empirical research about organizational performance practices in Egypt. The study also has practical implications, as management of Egyptian ICT companies are now able to undertake focused improvement actions to increase the success of the partnerships into which they enter.

Carriger, Michael

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-05-2016-0033

PurposeAlthough the management and financial literature is replete with much research looking at the impact of downsizing on the financial health and market valuation of companies employing this practice, there has been very little attention paid to the size of the downsizing effort and its impact. The purpose of this paper is to try and address this lack by looking at companies that downsized in 2008, considering the relative size of the downsizing, and the ongoing financial health and market valuation of the companies.Design/methodology/approachThe impact of the size or severity of the downsizing event was assessed using various financial measures as well as a measure of market valuation from one to five years after the downsizing event. A data set of 251 companies that were in the Fortune 500 in 2014 and also in the Fortune 500 in 2008, that either did not change or decreased headcount were assessed longitudinally over a five-year period.FindingsFindings indicate that the size or severity of the downsizing did not impact any measures of profitability or efficiency or market valuation, with one exception. The size of the downsizing event was negatively related to return on investment, one year after the downsizing. On the other hand, the size or severity of the downsizing had a positive relationship on the companies’ ability to have enough cash at hand to cover expenses (current ratio) from one to four years after the downsizing.Originality/valueThis work may provide additional support for the “band-aid solution” theory of downsizing, as suggested by Carriger (2016), downsizing may stop the bleeding but does not address the underlying financial or strategic issue leading to the need to downsize. The hope is that this work will better inform scholars and practitioners, providing a more nuanced picture of the impact of downsizing on corporate financial health and market valuation.

Alvarado-Vargas, Marcelo J.; Callaway, Stephen K.; Ariss, Sonny

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-09-2015-0077

PurposeThe purpose of this paper is to empirically examine the effects of different R&D funding inputs – including funding for basic research, applied research, and development – on different innovation outcomes (e.g. inventions, patents, licenses, and start-ups).Design/methodology/approachThe study borrowed the resource dependence theory perspective by focusing on the proportion of funding secured from various external sources that fund university R&D, and assessed its effect on the nature and outcomes of the university research activity.FindingsResults indicated that greater funding of basic research was associated with more inventions and patents; greater funding of applied research was associated with more licenses; and greater funding for development activities was associated with more university start-ups.Originality/valueThe contributions of this study are two folded: first, it added to the debate that more R&D investment is indeed associated with more innovation outcomes; and second, it is important to differentiate the R&D funding inputs as they are related to different innovation outcomes.

Hossain, Mokter

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-01-2016-0002

PurposeThe purpose of this paper is to provide state-of-the-art knowledge about business model innovation (BMI) and suggest avenues for future research.Design/methodology/approachA systematic literature review approach was adopted with thematic analysis being conducted on 92 articles.FindingsThe body of knowledge for this concept is in its infancy and is highly fragmented. This study therefore attempts to consolidate this fragmented knowledge. It reveals dominant themes, establishes coherence, and identifies conflicting arguments in the current literature. It also points out gaps in the research and highlights new directions for research.Research limitations/implicationsThis study analyzed articles that were found based on a systematic literature review approach.Practical implicationsThis study identifies some fundamental issues that managers need to understand regarding BMI.Originality/valueThe main value of this study lies in its synthesis of the current knowledge of BMI.

Abreu Pederezini, Gerardo David

2017 Journal of Strategy and Management

doi: 10.1108/JSMA-01-2016-0007

PurposeFrom a complexity leadership theory perspective, leadership stops being seen as residing in an individual, and come to be conceived as emergent from the myriad interactions among organizational members. However, in spite of this reconceptualization, organizations still have senior managers (e.g. the CEO) who are supposed to be leading, and thus, the purpose of this paper is to explore, then, who are these senior managers and what challenges emerge for them under a complexity leadership perspective.Design/methodology/approachThis paper reviews first the literature on complexity theory and leadership, and then, conceptually develops an understanding of the challenges that senior managers might face under complexity.FindingsThe main finding and focus of the paper is that, from a complexity perspective, a paradox emerges regarding senior managers. On the one hand, senior managers might need to make sense of their limitations and the unowned essence of the processes that surround them. On the other hand, their subordinates might still insist on portraying senior managers as final causes of all success or failure.Originality/valueThis paper presents a novel way to re-conceptualize senior managers, under a complexity perspective, where they come to be perceived as trapped in a paradox of contradictory sensemaking processes: as they come to find out all that is outside of their control their subordinates insist on making them responsible for everything as if they had control.