Boundary spanner closeness to partner firm as relational governance in turbulent versus stable environments

Purpose This study aims to explore the overall relationship between a boundary spanner and a partner firm, i.e. boundary spanner closeness to partner firm. Drawing on consumer-service provider relationship literature and the tripartite model of affect-behavior-cognition, the authors identify three key dimensions of such closeness, namely, boundary spanners’ relational ties, customer-specific capabilities and accommodative behaviors, and examine their effects on exchange outcomes in turbulent versus stable environments. Design/methodology/approach The paper examines the effects of three dimensions of boundary spanner closeness on various exchange outcomes (i.e. retailers’ cooperation, satisfaction and willingness for investment) using two industries as exemplars, characterized by distinct levels of environmental turbulence – the retailing networks of a major cell phone company and a petroleum company in China. Findings The results indicate that the three dimensions individually and jointly affect exchange outcomes and the interplay of customer-specific capabilities and relational ties affect exchange outcomes differently across industry turbulence. Originality/value The existing literature lacks a comprehensive understanding of the function of boundary spanners, which serve as a key relational interorganizational governance component. By identifying three key dimensions of boundary spanner closeness and examining their effectiveness in promoting exchange outcomes, this study advances the understanding of the role of boundary spanners in interorganizational governance.

The effect of engagement partner workload on audit quality

Purpose Auditing studies have shifted the research focus from the audit firm level to the individual audit partner level in recent years. Motivated by the call from Lennox and Wu (2018) to explore the effect of audit partners’ characteristics on audit quality in the US, this study aims to develop a new measure of engagement partner workload (EPW), which includes both the size and number of clients audited to test the effect of EPW on audit quality. This study also examines the moderating effect of the partner firm size on audit quality. Design/methodology/approach To test the effect of the EPW on audit quality, this study runs multivariate regressions of EPW on each specific client’s discretionary accruals and audit report delays. This study also runs a logistic regression of EPW on clients’ probability of having small profit increases to meet performance benchmarks. Findings Results of the hypotheses show that partner workload is positively related to audit quality. The results indicate that partners with larger, but fewer, clients conduct higher quality audits. Further analysis indicates that the relationship between partner workload and audit quality only holds for partners from the non-Big 4 firms. Originality/value This study contributes to the literatures of both audit quality and audit partner characteristics, and the results complement initial research aimed at identifying US partner-related characteristics that influence audit quality.

Creating high performance partnerships in Asia: the case of NEH the Philippines

Purpose The purpose of this paper is to evaluate a previously developed framework for creating so-called high performance partnerships (HPPs), which yields a competitive advantage for all firms in the partnership, in the Asian context. Design/methodology/approach The HPP framework is evaluated for a Philippine organization that produces, markets and ships bananas in Asia. The evaluation entailed conducting a questionnaire, statistically redeveloping the framework and organizing several feedback workshops with the partner firms, the latter aiming to discuss and agree to improvements that each partner could implement to achieve high performance in the value chain. Findings The results showed that the evaluated HPP framework can be used to score the quality of each partner in the chain and to yield targeted recommendations to improve the performance of each partner firm. The subsequent application of the recommendations derived from applying the HPP framework created substantial profits for the partner firms. Originality/value Originally developed in a western context and applied to a value chain of European organizations, the HPP framework was successfully applied for the first time in the Asian context, to evaluate the performance of an Asian value chain and identify areas for improvement of the Asian partner firms. As such, the results contribute both to the HPP literature, filling a gap therein, and to practice, as Asian organizations can use with confidence a framework which has been validated in their context.

From Trust Convergence to Trust Divergence: Trust Development in Conflictual Interorganizational Relationships

Whereas extant research on trust in interorganizational relationships tends to focus on trust convergence – i.e. members of one focal firm developing similar trust perceptions toward a partner firm – we shift focus to trust divergence – i.e. members of one focal firm developing different trust perceptions toward a partner firm. To explore trust divergence, we conduct an inductive, longitudinal study of one interorganizational relationship characterized by mutual transgressions. We identify shifts in attentional perspectives and referent categorizations as two novel mechanisms for theorizing trust development in interorganizational relationships. In particular, we develop a process model illuminating how these two mechanisms can contribute to trust development patterns in interorganizational relationships that are more discontinuous than existing models would predict. Moreover, we highlight the constructive implications of trust divergence for interorganizational collaboration in the presence of transgression and conflict.

Opportunism risk in service triads – a social capital perspective

Purpose – The authors aim to conceptually show how social capital between service buyer and partner firm in a service triad impacts the service buyer's opportunism risk regarding the service provider's behavior. Design/methodology/approach – The authors draw on social capital theory to conceptually derive propositions on the role of social capital with regard to the antecedents of opportunism in service triads. Findings – Based on literature, the authors show how social capital between service buyer and partner firm decreases the service buyer's opportunism risk regarding the provider's behavior. Structural capital enhances information flows, thus reducing ambiguity. Relational capital reduces ambiguity as well as the service buyer' dependence. Cognitive capital enhances the mitigating effect of relational norms. Research limitations/implications – The authors extend the conceptual perspective on social capital and opportunism risk to triadic environments. Besides empirical validation, a resulting research program could follow three avenues: interdependencies between other relationships in service triads, the impact of social capital on effects other than opportunism as well as the role of relationships between individual boundary-spanners. Practical implications – When deciding upon service outsourcing in triads, service buyers should assess their resulting opportunism risk, considering not only the service provider but also their relationship to the partner firm. Originality/value – The propositions entail a shift from a dyadic to a triadic perspective. Analyzing the established dyadic concepts of social capital and opportunism in a triadic environment, the authors contribute to theory on triads as the simplest building blocks of networks.

THE DYNAMICS OF TECHNOLOGY MANAGEMENT PRACTICES IN LOCAL FIRMS IN FOREIGN PARTNERSHIPS IN THE CONTEXT OF A LESS DEVELOPED ECONOMY

This paper investigates the technology management practices and the learning processes for the technological development of local firms in foreign partnerships. It initially notes that the existing literature is focused on the technological benefits to local firms in developing economies from multinational corporations rather than explaining the dynamics of the technology management practices used by local firms who engage in foreign partnerships. This paper also notes a gap in the current literature regarding the technology learning process during partnerships from the perspective of the local partner firms in developing economies. The structural analysis of the data from six case studies of joint venture partner firms in Sri Lanka shows that the technology management practices of local firms need to evolve strategically, based on the partnership characteristics, throughout the life of that partnership. It identifies that the level of skills and capabilities within the local firm, the organizational dominance of the foreign partner firm, clarity of roles in the partnership, and the potential technological contribution from the foreign partner firm are all significant determining factors affecting the choice of dynamic technology management practices by local partner firms.

An E-Titan's Evolving Strategy and Business Model

eMarketMatch1 provides online marketplaces for the sale of goods and services, online payments, and online communication offerings. Their three primary business segments are: eMarketMatch marketplaces, payments, and communications. The marketplace platform has grown beyond the initial auction platform to include a number of other marketplaces for various applications and user audiences. Their partner firm, PayerFirm*, enables individuals and businesses to easily and securely transact payments. As the one of the top ten largest global online retailers, eMarketMatch’s mission is to pioneer new communities around the world built on commerce, sustained by trust and inspired by opportunity. Their ability to maintain or enhance this position will depend on their ability to adapt to new technologies while facing increased competition and anticipating customers’ needs. This paper will address management’s philosophies, the corporate business model, its challenges, network relationships, and its corporate growth to date, as well as future horizons.