Determinants of Web-technology Investment in Malaysian Logistics Industry: An Application of Technological, Organizational and Environmental (TOE) Model

This study is intended to seek empirical evidence on factors determining web technology investment in the Malaysian logistics industry. Technological, Organizational and Environmental (TOE) Model is used as a basis to examine the determinants of web technology investments under three characteristics; technological characteristics (technology competence and web functionalities); organizational characteristics (firm size, firm scope, and managerial beliefs); and environmental characteristics (regulatory support and pressure intensity). Questionnaire surveys were sent to 169 companies listed in the directory of the Malaysian logistics industry. It was found that five factors (web functionalities (WF), firm size (FZ), managerial beliefs (MB), regulatory support (RS), and pressure intensity (PI)) significantly influenced web technology investment. This study provides a greater understanding on the perceptions of the Malaysian logistics industry towards web technology investment.

Studying the Incubation of a New Product Market Through Realized and Alternative Histories

In this paper, we contribute to the literature on new market emergence by implementing a “history-friendly” simulation of the incubation period encompassing the decision processes that took place within General Motors (GM), Chrysler, and Ford during the design and development of the first U.S. minivan. Our work offers a “middle ground” alternative methodology for unpacking the “black box” of market incubation processes. Our middle ground approach is useful for exploring the complex interdependencies among four general mechanisms that shape market incubation: environmental shocks that open up new technological possibilities, firm-level capabilities that allow firms to differentially take advantage of these possibilities, various incentives (e.g., product cannibalization, rivalry) that influence a firm’s willingness to exploit new possibilities, and managerial beliefs about the viability of these possibilities. Complex nonlinear interdependencies exist among these mechanisms, and historical contingencies affect the way in which they interact. We identify important historical contingencies within and across GM, Ford, and Chrysler in their precommercialization managerial decisions prior to Chrysler’s introduction of the Voyager and Caravan in 1983. We use the historical details of actual market incubation to calibrate the simulation and develop plausible alternative (both near and hypothetical) histories of that incubation. Understanding why Chrysler, Ford, and General Motors made their respective product commercialization choices not only pertains to automotive history, but can also illuminate the complexities inherent in market incubation processes.

The Micro and Macro of Managerial Beliefs

This paper studies how biases in managerial beliefs affect managerial decisions, firm performance, and the macroeconomy. Using a new survey of US managers I establish three facts. (1) Managers are not over-optimistic: sales growth forecasts on average do not exceed realizations. (2) Managers are overprecise (overconfident): they underestimate future sales growth volatility. (3) Managers overextrapolate: their forecasts are too optimistic after positive shocks and too pessimistic after negative shocks. To quantify the implications of these facts, I estimate a dynamic general equilibrium model in which managers of heterogeneous firms use a subjective beliefs process to make forward-looking hiring decisions. Overprecision and overextrapolation lead managers to overreact to firm-level shocks and overspend on adjustment costs, destroying 2.1 percent of the typical firm’s value. Pervasive overreaction leads to excess volatility and reallocation, lowering consumer welfare by 0.5 to 2.3 percent relative to the rational expectations equilibrium. These findings suggest overreaction may amplify asset-price and business cycle fluctuations.

Innovation and metamorphosis towards strategic resilience

PurposeThe purpose of this paper is to examine what it means to be resilient in the context of environmental turbulence, complexity, and uncertainty, and to suggest how organizations might develop strategic resilience.Design/methodology/approachSampling from the theoretical and empirical contributions to the understanding of resilience within the management and organizational literatures, this conceptual paper presents a model of strategic resilience and theoretical propositions are developed that suggest directions for future research.FindingsIt is proposed that strategic resilience is an emergent and dynamic characteristic of organizations whereby organizational legacy is a defining antecedent, top management team future orientation is a fundamental belief system, and problem formulation is a key deliberate process.Research limitations/implicationsAlthough the conceptual inquiry of strategic resilience offers clarity on a complex phenomenon, empirical evidence is needed to provide a test of the concepts and their relations.Practical implicationsBy asserting that the environment is turbulent, complex, and uncertain, this paper opens up new possibilities for the understanding and study of strategic resilience, whereby metamorphosis and innovation are requisites, and entrepreneurship is part and parcel of strategy. As such it highlights the importance of managerial beliefs and behaviors that facilitate proactively and deliberately challenging of the status quo.Originality/valueThe proposed conceptualization of strategic resilience in this paper connotes action rather than just reaction, and in so doing highlights the importance of the synergy between strategic management and entrepreneurship. As such, it proposes factors that may help organizations persist and create value within a context and future that they themselves also shape.

Timing for Dollars: How Option Exercisability Influences Resource Allocation

Stock options have been advocated to encourage managers to make long-run investments like R&D and capital expenditures (CAPX) that entail upfront costs with the potential to generate favorable long-term returns. However, the effect of options on managerial decisions depends on managerial beliefs about how the stock market reacts to firm behavior. If, consistent with empirical evidence, managers believe that stock prices increase in the short term from increased R&D, but not CAPX, then stock option exercisability—which dictates when managers can receive option payouts—should influence resource allocation. We also consider the effect of changes in the value of options over time. Results from a study of more than 6,500 observations from about 1,000 manufacturing firms over 18 years show that unexercisable stock options positively influence CAPX but not R&D, while exercisable stock options positively influence R&D but not CAPX. Both patterns are consistent with behavior that increases managerial payoffs but not necessarily firm performance. In addition, we find an expected negative association between underwater options and CAPX but no evidence of a corresponding positive relation with R&D. Finally, we find partial evidence of a house money effect that makes allocations to CAPX and R&D sensitive to recent changes in option values.

Profit generation or community resource?

Purpose For the past decade, sub-post offices (POs) in the UK have been subject to intensive pressures to marketise their business. Actual or threatened closures have led charities to become involved in projects to preserve community post offices. This paper aims to investigate the attitudes of the trustees and staff involved in six charity-backed POs to answer the research question “Do those involved with charity-backed POs prioritise profit generation or community resourcing?” Design/methodology/approach This research adopted a neo-empiricist stance on the collection and interpretation of data. The authors treated “attitudes” as real phenomena that are subjectively experienced and concretely expressed through activities in an objectively real world. Data were gathered from four or more people in each of six POs by sampling their services and conducting face-to-face interviews. The emphasis was on achieving verstehen – a rich understanding of a specific approach to social enterprise grounded in interpretations of human activity under conditions of naturalistic inquiry. Findings The authors found that charity-backed POs were focussed on preserving POs as a community resource but articulated this by framing profitability in three distinct ways: as a PO generating a surplus that can be gifted or reallocated to a (parent) charity’s other activities; as an activity that offsets a charity’s fixed costs; or enables or promotes its public benefit aims. Research limitations/implications There are few peer-reviewed studies of the potential of sub-POs as sites for social enterprise, and none (that could be located) on the role of charities. In this study, the authors contest Liu and Ko’s view (2014, p. 402) that the key task is “to install market-oriented managerial beliefs and values into the charity retailer’s decision-making”. A counter view is offered that trading can represent a further diversification of the innovations used to support charitable endeavours. Originality/value This is the first academic study to confront the complexities of differentiating “profitability” from “profit generation” in charity-backed POs. The subtleties in the articulation of this difference by study participants helped to account for the findings of the study and to make sense of the strong consensus that POs should be seen primarily as a community resource while responding to marketisation pressures.

Leader beliefs and CSR for employees: the case of telework provision

Purpose – The purpose of this paper is to investigate the role of top leaders beliefs in the importance of work-family balance as a key determinant in explaining the adoption of social practices oriented toward internal stakeholders, focussing on home telework as one of these practices. Design/methodology/approach – A sample of 2,388 top executive officers reported the senior leaders belief favoring work-family balance by completing a new scale developed for this purpose asking how much key decision makers were convinced of the value to employees of supportive family-friendly HR practices, modeled how to balance work and family life, and felt a personal commitment to implement family-friendly practices. They also reported the firm’s provision of telework and organizational characteristics such as industry, multinational status, and firm size. Findings – Regression analyses revealed that firm’s provision of telework is more pervasive when its top leaders believe in the importance of work-family balance, even after controlling for firm context (industry, geographical dispersion, and size). More importantly, the authors also find that managerial beliefs augment the positive effect of instrumental factors on the provision of home telework. Practical implications – For practitioners, the most important message is that, while contextual and organizational features are important in the choice of corporate social responsibility (CSR) practices for employees, the conviction of senior leaders is absolutely essential. Originality/value – This study contributes to the leadership and CSR literature by suggesting that top leaders play a catalyst role in contexts where telework is instrumentally valued. If we conceive CSR for employees as not driven solely by utilitarian logic, it requires a different paradigm that includes leadership motives.