Service ecosystems: why the media industry prefers access, not ownership

Purpose Because of the increasing importance of access over ownership, the purpose of this paper is to propose a service ecosystem perspective to help managers navigate hypercompetition. With the rise of cloud-based services and the ongoing recovery from the COVID-19 pandemic, the global economy has shifted toward hypercompetition, a state characterized by organizational advantages that are rapidly created and then destroyed by intense competitive moves. Because advantages are quickly eroded, organizations must be aggressive in the number of actions they take and the speed with which they execute these actions. The service ecosystem perspective focuses on relationships that allow organizations to jointly adjust to one another and to their environment. Design/methodology/approach This paper first reviews traditional strategies for navigating hypercompetition. Then, it presents an explanation of the service ecosystem perspective. Finally, the three north stars and media examples are provided. Findings The service ecosystem perspective asserts “north stars” that can guide managerial decision-making in hypercompetitive environments. These north stars are: cultivate system norms, facilitate feedback loops and embrace servitization. Originality/value In today’s world, organizations are increasingly seeking access to resources instead of ownership of them. The proposed approach suggests that, rather than an organization owning the resources it needs to achieve advantages, organizations are increasingly relying on accessing resources by coordinating with other organizations to draw upon the resource(s) as needed, without incurring the additional burdens of ownership. Examples from the media industry are used to illustrate the three north stars of the service ecosystems perspective.

Social media and new services: how a consulting firm leveraged LinkedIn

Purpose This paper aims to explore how social media can be used strategically for delivering new services in a small- and medium-sized enterprise (SME) context. Design/methodology/approach Single case study: CONSULT+ (pseudonym), a consulting firm specialized in change management. Consultants use a social media network to develop their new services. Findings To take on the challenges of heightened competition, CONSULT+ has created thematic business units to encourage new service development. This research explored strategies, practices and benefits associated of using social media network by intrapreneurs at all levels of new service idea trajectory (idea generation, elaboration, championing and implementation). Research limitations/implications The research is based on a single case study. Further research should be conducted to establish the generalization of the results. Practical implications This paper highlights the key success factors in making such an approach successful: raising awareness of the benefits of using social media; analysing of complementarities of tools; accompanying the development of advanced practices; capturing the valuable potential for the organization and avoiding negative effects of individual practices. Originality/value The research provides a unique approach that can be practically implemented within knowledge-intensive SMEs to leverage social media network to deliver new services (best practices and insights for managerial support schemes).

Why companies succeed or fail: corporate cycles and firm function in tandem

Purpose This paper aims to underscore the need for developing a model of corporate cycles, which can explain how corporations rise, decline and fall in the marketplace. Design/methodology/approach This is a conceptual study that draws on prior theoretical and empirical insights of the entrepreneurial, managerial and social functions of the firm to develop a model of corporate cycles. Findings Firms that pass the test of the market and live for a long time, undergo cycles, expansions and contractions, driven by successes and failures in the way they configure and execute their entrepreneurial, managerial and social, functions. Practical implications A model of corporate cycles can explain how momentum rises and falls on Wall Street. It can also help predict revenue growth, a key variable in equity valuation models. Originality/value The originality of this study stems from a constructive synthesis of different concepts and theories of the firm to explain firms’ growth, decline and fall in the marketplace.

Why being sustainable is not enough: embracing a net positive impact

Purpose This paper develops the concept of positive sustainability or positainability to go beyond many leaders’ traditional understanding of sustainability as primarily avoiding harm. Rather, executives need to embrace a positive perspective in terms of doing good and creating value in a firm’s core business as the next level of sustainability management. Positive sustainability is defined as the combination of doing good and avoiding bad to arrive at innovative solutions for achieving a “net positive impact” in the core business rather than merely targeting “no net loss” by reducing harm for the environment and society. Design/methodology/approach This is a conceptual paper with an example, and it relies on prior insights from related research fields, including the sustainable development goals, corporate social responsibility, creating shared value, positive psychology, social entrepreneurship and social innovation. Findings Many organizations have recently launched sustainability initiatives, which often focus on achieving efficiency gains, for example, by reducing power consumption to lower carbon emissions in the face of climate change and to simultaneously save costs. In future competition, however, avoiding unsustainability in the core business and potentially doing good in separate social responsibility programs will not be enough. Furthermore, a focus on “quick win” efficiency gains may limit a more fundamental transformation, which is needed in many firms. There is a massive shift in consumer expectations, especially among younger generations, concerning firms’ active contribution to solving environmental and social challenges. Consistent with positive psychology, these market shifts require a positive perspective in terms of doing good in the core business. Originality/value The concept of positive sustainability has major implications for innovation, transformation and communications management. Even those firms that view themselves as leaders hardly realize the opportunities from positive sustainability. By developing innovative solutions, products and services, companies may positively contribute to the environment and society. In the medium to long term, this positive impact will often exceed the short-term benefits of efficiency-centered programs. Most firms and leaders will simply have no choice but to embrace a “net positive impact” because customers strongly expect companies to take action in terms of positive sustainability.

Building an ethical culture by improving conditions for whistleblowing

Purpose This paper aims to discuss the importance of an effective internal whistleblowing system in building a more ethical organizational climate. Design/methodology/approach This study draws on the literature to make recommendations for organizations, managers and boards of directors regarding implementing an effective whistleblowing process. Findings This paper offers practical information on what constitutes an appropriate level of preparedness and responsiveness. Organizations can reinforce their internal ethics by encouraging whistleblowers to report complaints internally. An effective whistleblowing process depends on the organization’s desire to build an ethical climate and its awareness of the power of whistleblowing as an ethical tool. Originality/value This study will help managers and other professionals to create and maintain an ethical climate by implementing an effective whistleblowing process. The discussion in this paper is important for any type of organization concerned with empowering whistleblowers and the whistleblowing process.

Footprints in the cloud: the hidden cost of IT infrastructure

Purpose The purpose of this paper is to examine the hidden carbon footprint of corporate big data infrastructures and provide guidance for communicators responsible for corporate ESG and reputation. Design/methodology/approach It is based on a subjective view of the literature on this topic, selecting relevant examples. Findings The authors found that consciousness within corporations of the carbon footprint of their own information technology infrastructures is low and only a few companies have a strategy for identifying it. Originality/value To the best of the authors’ knowledge, this is the first treatment of this subject from the perspective of the corporate owner of ESG and reputation.

Coopetition in a failed merger project: why two French companies called it quits

Purpose Coopetition includes cooperation and competition, sometimes simultaneously, among firms from a specific industry involved in a merger and acquisition (M&A) operation. However, despite their high number, most mergers end in failure. Therefore, looking at how firms cooperate and compete when planning a merger operation can be a key to better understand post-merger integration, set achievable synergies for both parties and better understand the organizational culture of both companies. Also, external events in a rapidly changing environment can affect the global strategy of organizations and impact the desire for firms to engage in mergers and acquisitions. Design/methodology/approach The author investigates how merger negotiations were conducted and influence coopetition among two firms engaged in such an operation. The author describes the project merger of two French companies using longitudinal data. Findings This in-depth case study provides new insights into coopetition dynamics during merger negotiations and the influence of a global crisis on the overall strategy of two firms. The authors specifically detail how cooperation and competition were present in M&A negotiations and how the rapidly changing environment influenced the planned operation. First, cooperation was privileged as companies enhanced information sharing and communication for their joint strategy. Then, with the evolution of the environment, new opportunities were given to the target company, which decided to quit the merger project. Therefore, both firms engaged in a competitive context as the crisis helped the target company (in difficulty at the beginning of negotiations) to develop new projects and to become a real rival of the acquiring company in its local ecosystem. Research limitations/implications The limitations are those concerning a single case study. Practical implications The study highlights the complexity of merger negotiations and the unexpected events faced by integration stakeholders. The analysis, thus, contributes to an inclusive and integrative view of the challenges in the merger process. The study questions coopetition issues in regional clusters as both firms operate in the same industry in the same region. For practitioners, the study questions how to balance the risks and rewards of coopetition activities over time. The case addresses information sharing in coopetition projects and the fear that the data and information revealed during negotiations will affect the company’s competitive advantage once the merger plan is abandoned. In the context of the rapidly changing environmental crisis, managers will reflect on continuing to cooperate with their competitors or pursuing their activities on their own. Social implications Despite their high number, M&A failures remain surprisingly high. This study explores how stakeholders deal with merger negotiations and how external events impact such negotiations and merger projects by raising coopetitive tensions among firms. Originality/value The case provides a vivid illustration of firms’ adaptation to a rapidly evolving context due to a global crisis. The research questions coopetition in business ecosystems and the unexpected in merger processes. The study addresses critical risks in knowledge exchange during merger negotiations and coopetitive dynamics among stakeholders over time. Theoretical concepts and empirical findings from the literature are combined to present a single consistent picture.

Customer experience can play a strategic role for wineries

Purpose This paper aims to consider how customer experience can be used by wineries to enrich their value proposition and improve their competitive advantage. Design/methodology/approach Qualitative research, using a semi-structured interview approach, was conducted on four small sized wineries located in the Bolgheri area (Tuscany, Italy). This study was based on the theoretical model of Pine and Gilmore. Findings All the wineries in the sample are committed to enriching wine – the tangible product. They focus on customer experience to make the process unique and meaningful. They seek to provide a rich experience, but have chosen one experience dimension to create a specific identity for themselves. It is evident, based on interviews and online reviews, that the customers appreciate the efforts of the wineries. Research limitations/implications This study can be further developed, using dimensions such as brand awareness and by building a larger sample, to understand how wineries can further improve their value proposition. Practical implications The adoption of marketing experience requires flawless execution of the experiences, starting from first employee-customer interaction. For this reason, it is essential for companies to invest in the training and development of their employees, who represent the experiential offer, and act as the link between the internal and external world. It is also important to identify new trends and be proactive. Originality/value Very few studies in the literature focus on customer experience in wine sector.

Thriving on adversity: entrepreneurial thinking in times of crisis

Purpose The paper provides evidence-based managerial advice for preparing the organizations to find successful pathways through crises by priming the managerial decision-making towards either entrepreneurial thinking or resource conservation, and hence cascading the inventive or rigid state of mind through all management levels. Design/methodology/approach The general review is based on summarizing the peer-reviewed academic studies of organizational decision-making and acting in crisis situations, illustrated using the turnaround cases of Corticeira Amorim (reinventing itself when faced with emerging technological threats) and Kiddiegarten School (adjusting to the pandemic shock of social/human nature) Findings This study reveals that a set of dimensions in the crisis situation’s cognitive framing determines the firm’s response to adversity, freezing it in a rigid state or unfreezing it to stimulate an organization-wide entrepreneurial search for turnaround strategies. If managers sense having a lack of time to deal with adversity, or a lack of predictability, they become paralyzed with threat-rigidity mechanisms, stubbornly pursuing the established methods of doing business, which often were the cause of crisis in the first place. Hence, in situations requiring an immediate response, the dual threats of urgency and unpredictability become cognitive blinders, preventing organizations from pursuing new opportunities, exposing firms to the risk of being too slow, eroding their competitive advantage and, ultimately, going out of business. Originality/value Integrating the insights of three decades prior research of the topic of managerial decision making in crisis situations, this study proposes the novel leadership framework allowing to stimulate entrepreneurial behavior in adverse contexts.