scholarly journals Is more always better? Risk trade-offs among internationalizing new ventures

2014 ◽  
Vol 26 (5) ◽  
pp. 406-420 ◽  
Author(s):  
Stephanie A. Fernhaber ◽  
Patricia P. McDougall-Covin
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Future Research ◽  
Content Type ◽  
Trade Offs ◽  
And Performance ◽  
Technology Industries ◽  
Gain Access ◽  
Heckman Selection

Purpose – The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance. Design/methodology/approach – New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test the hypotheses, a regression using Heckman selection was run using a sample of 210 US-based, publicly held ventures in high-technology industries. Findings – The results confirm that when higher levels of internationalization are coupled with either a low emphasis on product innovation or larger size, the negative returns are mitigated and actually become positive. Research limitations/implications – A key implication lies in recognizing the role of risk management for internationalizing ventures. Future research could benefit by testing for generalizability in other countries as well as among privately held ventures. Practical implications – To manage the trade-offs associated at higher levels of internationalization, ventures need to maintain a low emphasis on product innovation or meet a threshold in terms of size. Originality/value – The value of this research lies in better understanding how ventures are able to overcome rising costs at higher levels of internationalization.

Internal projects as strategic tools: an organisation-level perspective and a research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Torbjørn Bjorvatn
Keyword(s):  
Project Management ◽  
Theory Development ◽  
Future Research ◽  
Content Type ◽  
Theoretical Contribution ◽  
Research Areas ◽  
Linear Relationships ◽  
Strategic Role ◽  
And Performance

PurposeThe purpose of this conceptual paper is to describe and explain how organisations use internal projects to implement organisation-level strategy objectives.Design/methodology/approachTheory development with an emphasis on explaining key constructs and their mutual relationships. The theoretical contribution is represented in a diagram along with a detailed verbal account.FindingsThe paper develops a dynamic, cross-level framework to illustrate the organisational processes and outcomes that determine project-based strategy implementation within a single organisation. The interplay between the base organisation and the project, and benefits realisation were singled out as key future research areas. The proposed framework engages with central discourses in the fields of project management, strategic management, innovation studies, knowledge management and organisation studies.Research limitations/implicationsOnly the contours of an organisation-level theory of strategically motivated internal projects are outlined. Future research must elaborate on the complexities, the non-linear relationships and the boundary conditions that follow from the proposed framework.Practical implicationsManagers are alerted to the strategic role of internal projects, how these projects help connect strategy and performance and what the accompanying organisational processes and outcomes look like.Originality/valueThe paper constitutes an early conceptual treatment of strategy-driven internal projects as a distinct project category, thus addressing a major knowledge gap in project studies. Organisational project-management theory is extended with suggestions for future research.

The role of compliance for organisational change

2018 ◽  
Vol 31 (2) ◽  
pp. 334-351 ◽  
Author(s):  
Ronald Busse ◽  
Ufuk Doganer
Keyword(s):  
Qualitative Methodology ◽  
Qualitative Content Analysis ◽  
Organisational Change ◽  
Future Research ◽  
Content Type ◽  
Lively Debate ◽  
And Performance ◽  
The Individual ◽  
Depth Interviews

Purpose Fuelled by the latest scandals at Siemens, VW or Walmart, there is a lively debate on the role of compliance and ethics programmes. Unlike large corporations, small and medium-sized enterprises (SMEs) arguably tend to underestimate their significance and lag behind. Hence, the purpose of this paper is to shed light on the process of introducing compliance codes and its effects on employee acceptance and performance. Design/methodology/approach In line with the qualitative methodology, the authors conducted 12 in-depth interviews with German SME employees which the authors evaluated with the qualitative content analysis. Findings As for the major contribution, results indicate the emergence of a lack of understanding, anger, anxiety and operational performance losses – both at the individual and the corporate level – especially when employees feel uninvolved in the initial introduction stadium. Originality/value Practicing managers may benefit from the recommendation to facilitate staff involvement at earlier stages. As for theory advancement, the authors draw on Kotter’s (2007) long surviving “Eight Steps Change Management Model” and find significant support for shifting the spotlight of attention towards the first four phases. The authors discuss the original value of the research, admit limitations and illuminate some promising future research trajectories.

Strategy formation in the innovation and market domain: emergent or deliberate?

2014 ◽  
Vol 7 (4) ◽  
pp. 354-375 ◽  
Author(s):  
Karl-Heinz Leitner
Keyword(s):  
Development Strategy ◽  
Product Innovation ◽  
Design Methodology ◽  
Market Development ◽  
Sales Growth ◽  
Strategy Formation ◽  
Content Type ◽  
Time Period ◽  
And Performance

Purpose – The purpose of this paper is to study the nature of the strategy formation and its impact on firm performance in relation to market development and product innovation. Design/methodology/approach – The paper is based on an empirical study of 91 Austrian SMEs which covers a time period of ten years. Strategy formation was captured by an analysis of strategic intentions and corresponding actions in two surveys carried out in 1995 and 2003. Findings – The study finds no direct association between strategy formation and performance, though, emergent strategists had less often a growth orientation. Taking into account industry dynamics, shows, contrary to our expectations, that companies which employed an emergent market development strategy achieved higher sales growth in stable than in dynamic industries. Originality/value – The question of the superiority of planned vs emergent strategies has a long debate in strategy formation literature. The authors contribute to this question by investigating the role of different information sources for the formation of market and product innovation strategies and its impact on the performance in different environments over a ten-year time period.

Industry life cycle, geographic diversification and performance of international new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Pangarkar ◽  
Lin Yuan
Keyword(s):  
Life Cycle ◽  
New Ventures ◽  
High Technology ◽  
International New Ventures ◽  
Geographic Diversification ◽  
Content Type ◽  
Industry Life Cycle ◽  
And Performance ◽  
The Impact ◽  
Technology Industries

Purpose The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures. Design/methodology/approach This study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set. Findings Based on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle. Originality/value The study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures.

Trading places: innovation and performance go head-to-head

2014 ◽  
Vol 30 (6) ◽  
pp. 14-16
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Innovation Performance ◽  
Data Set ◽  
Content Type ◽  
Technology Firms ◽  
Trade Offs ◽  
Pertinent Information ◽  
And Performance ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds his own impartial comments and places the articles in context. Findings – This briefing examines the trade-offs that take place between product innovation performance and business performance. It leverages a data set of 99 medium-sized technology firms in Sweden and considers the variables that affect these trade-offs. The paper suggests that while product innovation performance is positively related to the sales of the firm, the links with profitability are rather less proven. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and an easy-to-digest format.

The effect of strategic alignment on purchasing management

2017 ◽  
Vol 40 (11) ◽  
pp. 1175-1200 ◽  
Author(s):  
Javier Alfonso Rodríguez-Escobar ◽  
Javier González-Benito
Keyword(s):  
Operations Management ◽  
Structural Equation ◽  
Planning Process ◽  
Strategic Alignment ◽  
Future Research ◽  
Sources Of Information ◽  
Content Type ◽  
Industrial Companies ◽  
And Performance

Purpose This research aims to establish the role of the purchasing function’s strategic alignment in the relationship between well-established practices and performance in that function. It is argued that the strategic alignment of purchasing may have effects (direct, mediating and moderating effects) on the purchasing function’s operating performance. Design/methodology/approach The hypotheses derived from key studies about strategic and advanced purchasing practices are tested with data from 156 industrial companies using structural equation modelling methodology. Findings The results suggest that the effect of strategic alignment on the role of purchasing consists of mediated effects on purchasing performance through implementation of certain advanced practices. It was also concluded that strategic alignment – as well as the implementation of these advanced purchasing practices – fosters the implementation of differentiation strategies based on quality, dependability and flexibility rather than on the implementation of cost leadership strategies. Research limitations/implications Although it is a common practice in operations management research, the use of perceptual measures obtained from a single informant constitutes a noteworthy limitation. Future research should make an effort to combine different sources of information and to identify and use more objective indicators. Practical implications Top managers should take into account the need to involve the purchasing function in the firm’s strategic planning process. Originality/value The results not only confirm findings from previous literature as to the purchasing function’s strategic relevance but also help clarify the mechanisms that make this integration important.

Knowledge management processes and organizational performance: the mediating role of organizational learning

2020 ◽  
Vol 24 (8) ◽  
pp. 1859-1880 ◽  
Author(s):  
María Obeso ◽  
Remedios Hernández-Linares ◽  
María Concepción López-Fernández ◽  
Ana María Serrano-Bedia
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Firm Performance ◽  
Organizational Performance ◽  
Knowledge Generation ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
And Performance

Purpose The purpose of this paper is twofold. First, it aims to analyze the individual influence of different knowledge management practises (KMP) on firm performance. Second, it aims to analyze the mediating role of organizational learning (OL) between each KMP and performance. Design/methodology/approach A telephone-survey was applied in 2018 to the managers of 400 Spanish firms. The data retrieved was analyzed by using multiple regression analysis. Findings Knowledge generation (KG) and knowledge flow (KF) promote firm performance, while there is not a direct association between knowledge storage and performance. OL mediates the relationship between KG and performance, as well as between KF and performance. Research limitations/implications First, this research confirms that not all the KMP have a direct effect on firm performance, thus, future research would need to differentiate between different KMP. Second, this paper is pioneering in providing empirical evidence that OL mediates the KMP – performance relationship. Third, the empirical study was performed in a context non-researched yet by the literature considering KMP individually: Spain. Practical implications First, besides the results managers should focus their efforts in practises related to KG and application. Second, OL mediating suggests that managers should invest in managerial commitment to promote a shared culture, shared vision, open-mind to new ideas and a lot of dialogue. Originality/value This is the first study that investigates how KMP contribute to firm performance by incorporating the mediating impact of OL. The results will help organizations to identify the KMP improving the performance.

Poor resource capital of micro-entrepreneurs: the mediating role of entrepreneurial orientation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eijaz Ahmed Khan ◽  
Mohammad Alamgir Hossain ◽  
Mohammed Abu Jahed ◽  
Anna Lee Rowe
Keyword(s):  
Entrepreneurial Orientation ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
Business Outcomes ◽  
Mediating Role ◽  
Resource Setting ◽  
Start Up ◽  
And Performance

Purpose Understanding the micro-start-up resources and its relationships with entrepreneurial orientation and performance is unique because it operates a business in a poor resource setting. However, poor resource settings of micro-start-up are not adequately examined into the literature in relation to entrepreneurial orientation and performance. Therefore, grounded on resource-based view, this paper aims to attempt to examine the relationships between resource capital, entrepreneurial orientation and performance in a developing country context. Design/methodology/approach To establish this, the authors conducted a survey among 180 micro-entrepreneurs from Bangladesh and analyzed the data using the partial least squares structural equation modeling (PLS-SEM) approach. Findings The results demonstrate the mediating role of entrepreneurial orientation on the relationship between human and financial resources and performance, while having partial mediating influence between social resource and performance, therefore indicating the importance of resources for determining business outcomes for micro-entrepreneurs. Research limitations/implications These results extend theoretical explanations of micro-entrepreneurship within the poor resource setting context. The findings have implications for identifying micro-firms likely to succeed for the purpose of strategic allocation of resources and supports; they also provide future research avenues. Originality/value To the best of the authors’ knowledge, no previous study has established that entrepreneurial orientation plays a critical and mediating role between resource capital and micro-firm performance in a poor resource setting.

scholarly journals The growing permanence of pop-up outlets within the international location strategies of fashion retailers

2018 ◽  
Vol 46 (5) ◽  
pp. 487-506 ◽  
Author(s):  
Bethan Alexander ◽  
Karinna Nobbs ◽  
Rosemary Varley
Keyword(s):  
Location Choice ◽  
Future Research ◽  
Research Approach ◽  
Store Brand ◽  
Location Strategy ◽  
Structured Interviews ◽  
Content Type ◽  
Factors Influencing ◽  
Trade Offs

Purpose The purpose of this paper is threefold: first, to establish the role of the pop-up store within the international location strategy of fashion retailers, second, to identify the factors influencing pop-up store location choice and the importance retailers ascribe to it and third, to assess how pop-up locations are sourced and selected. Design/methodology/approach A multiple case study was adopted. Research was conducted using secondary data sources, observation and semi-structured interviews with senior executives with strategic responsibility for store/brand development internationally. Manual content analysis was conducted. Findings Key findings cover the role of Pop-up stores within international retail location strategy, notably features, forms and function, with the latter highlighting the importance of opportunistic market testing and trial, reduced risk, regeneration, ROI- and CRM-driven decisions; the factors impacting location choice and selection, specifically the trade-offs between reactive and proactive approaches and the importance of networks and intuition, and future pop-up directions. Research limitations/implications Due to the chosen research approach, the results may lack generalization outside of the given sector and marketplaces. Several avenues for future research are elucidated including exploration of pop-up transformations including pop-up rebrand, technology enabled, experiential and third place. Originality/value The study contributes to the nascent field of research by providing new insight into the role of pop-ups within international location strategy, the factors influencing location choice and selection and offers a pop-up location taxonomy.

Drivers, barriers and performance outcomes of sustainable packaging: a systematic literature review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karima Afif ◽  
Claudia Rebolledo ◽  
Jacques Roy
Keyword(s):  
Supply Chain ◽  
Cost Benefit ◽  
Performance Outcomes ◽  
Future Research ◽  
Comprehensive Overview ◽  
Product Packaging ◽  
Content Type ◽  
Trade Offs ◽  
Sustainable Packaging ◽  
And Performance

PurposeThis paper presents a comprehensive overview of the cross-disciplinary literature on the drivers, barriers and performance outcomes of sustainable packaging to understand the current state of research in this field and identify research opportunities.Design/methodology/approachA systematic review is conducted within no time limit. The Methodi Ordinatio methodology was applied that resulted in retaining 48 relevant and high impact articles published in 26 academic journals with various scopes.FindingsSeven key drivers are identified and defined: the integrative and collaborative supply chain, environmental capabilities and resources, market-based instruments, cost reduction, consumer pressure, competitive advantage, and regulatory pressure. Three main barriers are identified and defined: cost/benefit ambiguity, additional costs and complex trade-offs between packaging requirements. The review shows that the drivers and barriers to packaging sustainability are contingent on the firm size. Sustainable packaging positively affects the environmental, social and economic performance; however, its operational performance requires a proactive and integrated supply chain. The results highlight the importance of integrated packaging decisions at three different levels to improve packaging sustainability: vertical and horizontal integration, upstream and downstream integration, and product-packaging integration. The authors developed research propositions and provided insightful directions for future research.Originality/valueMost studies focus on specific drivers, barriers and outcomes of sustainable packaging, while this paper brings them together to build a comprehensive framework. The latter provides a deeper understanding of the factors that incentivize or deter firms from pursuing sustainable packaging and its performance outcomes.

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