Journal of Strategy and Management

Schriber, Svante; King, David R.; Bauer, Florian

2018 Journal of Strategy and Management

doi: 10.1108/jsma-05-2018-0049

The purpose of this paper is to develop the role of integration flexibility as a mediator of acquisition performance and demonstrate how this capability varies across firms.Design/methodology/approachThe study develops a conceptual framework of anticipated relationships by building on existing but so far unintegrated acquisition research.FindingsThe study suggests integration flexibility provides an explanation for variance in acquisition performance. The study identifies drivers behind acquisition integration flexibility in acquirer characteristics, deal characteristics and integration management. The authors further specify the positive and negative impact of several key factors commonly discussed in acquisition research.Research limitations/implicationsIntegration flexibility stands out as a novel explanation for acquisition performance. Still, the benefits from flexibility are not universal and developed logic suggests it represents a dynamic capability for acquirers. Our framework helps predict which acquirers and deals are more likely demonstrating this capability, thus contributing to predict acquisition performance.Practical implicationsAcquisitions often take place in dynamic environments and reportedly often fail. Predicting and developing acquisition integration flexibility stands out as an important task for acquiring management.Social implicationsAnnual global acquisition values are on par with the GDP of large industrial nations (e.g. Germany) and failures for reasons of lacking acquisition integration flexibility contributes to value destruction harming not only firms, but society at large. Improved integration flexibility likely mediates this risk.Originality/valueMaking an acquisition to adapt to environmental change implicitly assumes greater integration that can limit flexibility. While our argument builds on key concepts from acquisition research these so far have remained unconnected in relation to acquisition integration flexibility. The authors develop factors influencing this important capability and show how it mediates acquisition performance. This links acquisition antecedents with integration or phases typically treated separately.

Carriger, Michael

2018 Journal of Strategy and Management

doi: 10.1108/jsma-08-2018-0079

Given a growing literature indicating that downsizing is not an effective way to address financial decline, having either little impact or negative impact on the financial health or market valuation of financially troubled companies, what is the alternative for those companies in financial trouble? Three sets of alternatives to downsizing are available to companies suffering financial trouble: strategies addressing personnel/fix costs, strategies focused on addressing cost cutting/variable costs and strategies addressing strategic planning/revenue. Although alternatives to downsizing have been identified, little research has been conducted comparing the impact of downsizing vs alternatives to downsizing on firm performance. The paper aims to discuss this issue.Design/methodology/approachThis present study looked solely at strategies focused on addressing personnel/fix costs. Focusing primarily on forced attrition (downsizing) vs temporary attrition and/or natural attrition, this research attempts to determine whether specific groupings of alternatives to downsizing are more effective at addressing financial decline that companies find themselves in as compared to downsizing. This included relying on temporary attrition, natural attrition or doing nothing at all.FindingsThe research presented here indicates that various alternatives to downsizing have an immediate positive impact on measures of profitability and a positive long-term impact on one measure of efficiency: revenue per employee. Evidence shows that temporary attrition leads to better financial outcomes than natural attrition than forced attrition or downsizing.Originality/valueThe research presented here indicates that various alternatives to downsizing have an immediate positive impact on measures of profitability and a positive long-term impact on one measure of efficiency: revenue per employee. This has implications for managers put in the position of having to make a decision whether to downsize or not.

Morais, Flávio; Franco, Mário

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-03-2018-0023

PurposeFrom the network approach, the purpose of this paper is to provide empirical evidence about the role of international cooperative alliances (CAs) in the decision of small- and medium-sized enterprises (SMEs) to internationalize and remain in the external market.Design/methodology/approachTo fulfill the proposed objective, qualitative research was carried out through analyzing two SMEs (case studies) in the Portuguese textile sector. Data collection was based on structured interviews, direct observation and some documental analysis.FindingsThe results show that the analyzed SMEs internationalized immediately after their creation, with this decision not being influenced by CAs but rather by the founder’s role and above all by a saturated domestic market.Practical implicationsAlliances are determinant in subsequent developments in the foreign market, allowing SMEs to reach new markets, increase their market share and consolidate their name in the international market. Thus, managers/entrepreneurs should adopt strategies that stimulate the firm’s expansion in the external market, prioritizing the formation of CAs with international partners.Originality/valueThis study suggests that none of the dominant models can exclusively explain the internationalization process of the studied SMEs. Therefore, this research has implications for the recent stream of literature that argues for a holistic view of internationalization models, considering the arguments of all models instead of only one.

Aggarwal, Vijita; Kapoor, Madhavi

2018 Journal of Strategy and Management

doi: 10.1108/jsma-06-2018-0054

The purpose of this paper is to conduct a literature review on knowledge transfer and international strategic alliances to propose a research framework based on the theory of dynamic capabilities. A qualitative and quantitative review has been conducted to find out the past research patterns, emerging trends, and research gaps.Design/methodology/approachThe qualitative review of more than 300 articles identified by keyword search, reference, and citation search has resulted in 130 most relevant articles. Citation analysis is performed on these studies, their journals, and authors by leveraging the international platforms of SCImago Journal Ranking, Google Scholar, and ResearchGate.FindingsThe study enlists the highly cited studies, their journals, and authors with possible explanations for being highly cited. Criticisms of dynamic capabilities theory have been explained, and a research framework for the application of this theory in the context of international strategic alliances to fill the research gap has been proposed.Originality/valueCurrently, various bibliometric studies are growing in number. This study is not only a review study, but also proposes a research framework to fill the identified research gap.

Lichtenthaler, Ulrich

2018 Journal of Strategy and Management

doi: 10.1108/jsma-07-2018-0065

The purpose of this paper is to develop a meta-ranking of the world’s most innovative firms, which underscores the importance of external perceptions of innovativeness and of an innovation-based view on firm performance, including product, service, process, business model, management and organizational innovation.Design/methodology/approachThis is an exploratory empirical paper, which integrates the results of five rankings of the world’s most innovative companies.FindingsThe five innovation rankings include a variety of companies based on different methods and strategic focus. This variety underscores the importance of a meta-ranking, whose multiple aggregation methods lead to consistent results. Only the following 11 companies are mentioned in at least three rankings, leading to a list of the 11 most innovative companies in the world: Amazon, Apple, Tencent, Google/Alphabet, Netflix, SpaceX, Tesla, Microsoft, IBM, Intel and General Electric. Overall, the meta-ranking is dominated by US companies from various industries with firms from China gaining importance.Originality/valueThe paper contributes to research into innovation antecedents and consequences by illustrating the importance of innovation perceptions. The meta-ranking highlights the need for pursuing different types of innovation, following the innovation-based view on firm performance with first-order and second-order innovations. Moreover, the results deepen our understanding of digital transformation and of capturing value from innovation in the digital economy because a considerable portion of the leading innovators has a business model emphasizing artificial intelligence and digital platforms, which have led to the generation of new and to the disruption of established markets.