Agile and generic work values of British vs Indian IT workers: a culture-clash case

PurposeAfter deciding to become agile, many information technology (IT) units struggle; they underestimate the needed managerial expertise to alter their current culture toward an agile one, particularly when cross-cultural (f)actors are involved. Given that work values are the key to an organizational culture, the study derived a set of agile work values of culturally diverse IT professionals together with a set of well-known generic work values. Consequently, the authors illustrate that managers in charge of the transition to an effective agile culture must pay serious attention to the specific value constellations of its often highly diverse workforce.Design/methodology/approachA literature review resulted in an initial list of agile work values. Then, mainly through a Delphi round, 12 agile-specific work values were established. These were survey rated, along with the validated set of 18 generic work values, by 102 British and Indian IT professionals in a digital service and consulting firm that was requested by its client to become agile. The observations made in 14 feedback group-interview-type dialogs enriched the surveyed data further.FindingsIn the current exploratory study, four generic value dimensions were complemented by two agile-specific ones: team communication and shared responsibility. Among the British and Indian (on-site and offshore) workers, only 2 of the 30 current work values were shared while 7 significant value differences were found, explaining the noted employee bitterness, productivity losses and client disengagement. This situation was reflected in the many discrepancies between the professionals' ideal agile way of working and how their unit was currently functioning.Originality/valueThe multi-method study shows an over-optimistic approach to becoming agile in a common cross-cultural context; insights are gained on how to optimize agile ways of organizing IT work when British IT workers collaborate with Indian IT workers. It may benefit many agile practitioners and managers working with(in) cross-culturally mixed and partly remote teams.

IJV partner relations in emerging markets: the importance of Greek partner's prior IJV experience

PurposeThe purpose of this study is to examine the effect of the Greek partners' prior international joint venture (IJV) experience on partner compatibility, knowledge transfer (KT) and trust in their IJVs.Design/methodology/approachThe authors conducted a primary research study and collected a total of 50 useable questionnaires from Greek firms with IJV participation.FindingsThe findings show a positive effect of the Greek partner's prior experience in IJV establishment and management on partner compatibility and on successful KT to the IJV.Practical implicationsThe results are significant for executives of firms who seek to expand to international markets through IJV formation and for practitioners involved in IJVs, regarding prior IJV experience, partner compatibility and KT to their IJVs.Originality/valueThis study uses a sample of Greek firms with IJV participation to examine the effect of their prior IJV experience on IJV partner relations in the region of South East (SE) Europe. Additionally, it enhances the understanding of the effect of prior experience in the IJV establishment and management in emerging markets and sheds light to the antecedents of partner compatibility, which have been neglected by researchers.

How increased foreign competition motivates domestic firms to do good: an examination of foreign entry mode and domestic CSR response

PurposeWe examine whether domestic firms react differently to foreign direct investment (FDI) entry modes –mergers and acquisitions (M&A) versus greenfield. Specifically, we ascertain whether the entry mode of foreign competition motivates different corporate social responsibility (CSR) responses from domestic firms and when such relationships hold.Design/methodology/approachWe employ fixed-effects models using 1,331 US firm-year observations for 2015–2018. Furthermore, we examine the interactive effects of industry concentration to examine a key boundary condition.FindingsForeign entry via greenfield mode has no effect on domestic firm CSR. Entry through M&A has a significantly positive effect. We attribute these findings to the increased threat to domestic firms from foreign M&A whereas foreign entry through greenfield mode is less threatening as entrants face significantly more challenges in host countries. We identify industry concentration as a boundary condition of our findings. The effect of foreign M&A entries on domestic firms' CSR becomes weaker as industries are more concentrated.Originality/valueThis study offers novel insights on FDI by parsing out different reactions to entry mode by domestic firms. We add to our understanding of CSR as a mechanism to stave off foreign competition, offer insights into a key boundary condition of such actions and demonstrate the robustness of our findings.

Employees as a vector of strategic intent: an examination of corporate, social and environmental strategic intent recognition by employees

PurposeOne of the hallmarks of strategizing is having a clearly articulated vision and mission for the organization. It has been suggested that this provides a compass bearing for the organization's strategy, helps in motivation, commitment and retention of employees, serves as a guide to internal sensemaking and decision-making, has a potential performance effect, helps establish the identity of the organization and positions its desired reputation. The compass bearing role is important because it guides the selection of the goals and strategic orientation of the organization which in turn shapes its overall strategy and much of its internal decision making. The inspirational role is important because it helps to motivate and engage employees and other stakeholders.Design/methodology/approachThis study provides a more rigorous indication as to whether employees can, in the first instance, recognize and distinguish their corporate and environmental strategy from that of their competitors within their own industry and random other companies from other industries. This first issue addresses, to a degree, if and why, such strategic communiqués are effective inside a range of different organizations. Secondly, the authors examine whether there are any specific individual level effects that could explain variations in these responses. Finally, the authors examine the extent to which the recognition rates the authors observe, relate to how employees are rewarded through appraisals, promotions and salary increases. This helps in the authors’ understanding of the role of hard incentives versus soft motivations. The authors’ approach to assessing employee knowledge of their organization's strategy is unique. Rather than survey employees about their knowledge, the authors use a matching study and a discrete choice measurement model to assess if they can recognize their organization's strategy from those of their competitors and some other randomly selected organizations. This approach allows us to mitigate social desirability and common method biases and directly estimate the underlying behavioral model being used to assess their organization's strategy.FindingsOverall, the authors found that few employees could correctly identify their corporate strategy statements. In the case of corporate strategy statements, the authors find that, on average, only 29 percent of employees could correctly match their company to its publicly espoused corporate strategy. When the authors look at the environmental sustainability strategy of the firm, this is worse overall, with individuals doing no better than random on average. When the authors look at company training and communication practices across the realm of different strategies, the authors see a number of factors leading to the general results. First, most of the authors’ respondents could not recall a significant effort being given to communication and training by their employer. Indeed, most communication/training is simply related to having documentation/brochures available. Second, respondents indicated that more effort is put into communicating corporate strategy to employees in a more systematic manner than communication about environmental/corporate social responsible (CSR) strategy. Third, the authors see that individuals are evaluated more on and give more weight to, evaluations relating to their ability to meet individual/group financial and market performance metrics (targets) and work as a team than their involvement in environmental and social responsibility programs. Finally, the employees studied seemed to be more confident in understanding the corporate strategy. When asked to put their corporate strategy into words – a task the authors asked respondents to do after the matching phase of the study – 40% of participants did so for the corporate strategy but only 14% did so for the environmental strategy and seven percent for the CSR strategy.Practical implicationsThe primary implication of the study is that the values-mission-strategy logic of strategic motivation seems to have limited validity and with respect to the view that employees are a vector of corporate strategy. It is hard to argue that employees can be a vector for something they cannot recall or even distinguish between.Originality/valueThe study is unique in terms of (1) asking the very simple question of whether employees internalize their company's strategies and (2) in the methodological approach to examine employee knowledge and informativeness.

Corporate boards' and firms' R&D responses to performance feedback

PurposeA firm will respond to performance feedback, i.e. a comparison of its current performance with the goals to which it aspires, by means of changes in its search activity. There is an emerging body of literature that studies how such behavioral responses are shaped by important decision-makers inside firms. The study focuses on the corporate board – one of the most influential decision-making groups in terms of strategy. More specifically, the study aims to study the moderation effect of the size, turnover and age diversity of the board.Design/methodology/approachThe sample is based on the largest listed German automobile and manufacturing firms followed between the years 2001 and 2015. The sample is analyzed using fixed-effects panel data models.FindingsThe findings indicate that the age diversity of the corporate board and, partially, also the turnover of its members moderate firms' responsiveness to performance feedback. On the other hand, the size of the board does not seem to play a role. The study, therefore, supports the notion of taking into account the characteristics of the corporate board when analyzing strategic decision-making and points to areas for further research.Originality/valueThe study contributes to the literature by empirically testing the moderating effect of three characteristics of corporate boards that have not been largely tested in the literature to date.

Performing openness: how the interplay between knowledge sharing and digital infrastructure creates multiple accountabilities

PurposeThe present study aims to address the emergence of platform-organized open innovation (OI). The research has the two main aims: the first is to increase the understanding of the performance of OI by investigating how the achievements of OI are measured in situated practices from a performative and strategic knowledge management (SKM) orientation. The methodological disadvantages of not pre-given case selection are partially counterbalanced by the second aim of the research, which is to extend existing SKM theory and examine how platforms create knowledge as they include actors and digital devices, thereby potentially redistributing relations of accountability.Design/methodology/approachBuilding on performativity theory, the paper studies how the achievements and knowledge created in OI are managed and evaluated in practice. The case description draws on different sources from a spiral case study, as openness is performed by platform, firm, crowd and innovation intermediaries.FindingsThe paper illustrates how a strategy of digitally enabled openness brings its own issues as platforms enable knowledge sharing and perform a redistribution of accountability. In the heterarchies studied through this research endeavor, managers and their team members were accountable not only to multiple units, or teams, across the organization, but also to the crowd. The case material demonstrates that the ecology of devices and their performative struggles create lateral accountability.Research limitations/implicationsWhile recent streams of research suggest that the context of OI (i.e. distributed sources of knowledge for innovation) shifts the unit of analysis of organization design from the individual firm to networks of actors organized on platforms, the authors find that the focal firm still remains a key conceptual parameter in SKM research, which, in turn, makes it difficult to capture the suggested radicality of OI.Practical implicationsThe authors show, that in practice, the firm has to take into account the performance of the external crowd and at times put resources into its training and education. In heterarchy, distributed authority is assumed to be facilitated through lateral accountability, whereby the traditional principles of vertical authority no longer hold, but rather, managers and their team members can be accountable to multiple units, or teams, across the organization.Originality/valueThe paper develops a performative theory of openness. OI is a model, strategy and socio-material practice whereby digital designs create an ecology of devices that can enact all kinds of openness. Ultimately, the current paper proposes that SKM and OI theory need to consider how platforms perform relations of accountability beyond the boundaries of the single organization.

Factors affecting the adoption of blockchain technology in innovative Italian companies: an extended TAM approach

PurposeThe present research aims to identify the determinants for users' behavioral adoption of Blockchain, exploring the relationships among these variables and investigating whether the proposed model can provide a more comprehensive manner to understand the adoption of Blockchain technology.Design/methodology/approachThis study adopts the Technology Acceptance Model (TAM) approach and extends it with external constructs: “reduced cost” and “efficiency and security”. This paper used a quantitative and exploratory approach through the collection and analysis of data from a total of 108 Italian innovative SME. We have used the Partial Least Squares Structural Equation modeling (PLS-SEM) approach using SmartPLS for model evaluation.FindingsThe results show that “efficiency and security” is an important driver of firms' decision-making process to adopt Blockchain. Moreover, the results show that perceived usefulness is a strong predictor of the intention to use Blockchain in business processes.Originality/valueThis research advances the literature on technology adoption in business processes, focusing on a particular technology: Blockchain. The field has been strengthened by investigating the determinants of technology adoption, adding new perspectives; both reduced cost and efficiency, and security.

Balancing risk and trust for strategic alliance formation decisions

PurposeTrust entails the assumption of risk by the trustor to the extent that the trustee may act in a manner unaligned with the trustor's interests. Before a strategic alliance is formed, each firm formulates a subjective assessment regarding whether the other firm will behave in a trustworthy manner and not act opportunistically. To inform this partner analysis and selection process, the authors leverage the concept of value of information to quantify the benefit of information gathering activities on the trustworthiness of a potential trustee.Design/methodology/approachIn this paper, the authors develop a decision model that explicitly operationalizes trust as the subjective probability that a trustee will act in a trustworthy manner. The authors integrate the concept of value of information related to information gathering activities, which would inform a trustor about a trustee's trustworthiness.FindingsTrust inherently involves some degree of risk, and the authors find that there is practical value in carrying out information gathering activities to facilitate the partner analysis process. The authors present a list of trustworthiness indicators, along with a scoring sheet, to facilitate learning more about a potential strategic alliance partner.Originality/valueThe need for a quantitative model that can support risk-based strategic alliance decision-making for partner analysis represents a research gap in the literature. The modeling of strategic alliance partner analysis decisions from a value of information (VOI) perspective adds a contribution to the trust literature.

Psychological capital and strategic decision outcomes

PurposeA large body of research has analyzed individual psychological characteristics as antecedents of strategic decision-making. However, this research has mainly focused on trait-based characteristics that explain impaired strategic decision outcomes. Recently, PsyCap has been proposed as an alternative driver of strategic decision outcomes that, in contrast to other drivers, can be influenced by management.Design/methodology/approachDrawing on research on psychological capital (PsyCap), a psychological construct conceptualized as a state-like individual strength that is malleable, the authors argue that PsyCap exerts an inverted curvilinear effect on strategic decision outcomes. The authors use a computerized strategic decision simulation involving 102 managers to empirically test our hypotheses.FindingsThe authors show that PsyCap improves strategic decision outcomes up to an inflection point, after which it negatively affects those outcomes. The authors also show that this effect is mediated by heuristic information processing.Research limitations/implicationsFor the empirical study the authors relied on a sample of 102 practicing managers from the financial services industry in Germany.Practical implicationsPsyCap has been shown to be malleable through, for instance, micro-interventions and dedicated web-based trainings. Therefore, depending on managers' PsyCap levels, either further increases in PsyCap or a regulation of this characteristic might be appropriate in order to optimize strategic decision outcomes.Social implicationsAs a state-like individual strength that is malleable, PsyCap might serve as a management characteristic that is particularly important in challenging situations such as the COVID-19 pandemic.Originality/valueThis paper contributes to research on strategic decision making by introducing PsyCap as an important antecedent of strategic decision outcomes that – in contrast to other individual characteristics – is state-like and, hence, malleable.

Strategic transformation to sustilience: learning from COVID-19

PurposeThe authors seek to stimulate and strengthen learning for both institutional and corporate leadership to transform society toward sustainability and resilience. The authors use sustainability in the broader socioecological sense, rather than meaning merely financial survival. Based upon experiences by various parties in dealing with coronavirus disease 2019 (COVID-19) or (C-19) during 2020 and into 2021, we are all driven to ask, “Which lessons shall we learn?”Design/methodology/approachBased upon a brief review of environmental and management literature, the authors compare experiences with C-19 and those of socio-ecological sustainability to-date and distill both sources for optimism as well as pessimism in the face of technical and socio-political challenges.FindingsHistorical experiences are not particularly encouraging, but there are many opportunities for great improvements if institutional and corporate leaders choose to learn from both C-19 experiences and earlier efforts toward sustainability.Practical implicationsProcrastination by major industrialized economies in not taking major positive actions to control and reduce carbon pollution and other environmental damage is leading to human crises–hunger and thirst followed by migration, conflicts and healthcare system collapses. Organizational executives need to develop flexibility and embrace precautionary principles regarding many stakeholders if humanity is going to have a good chance of flourishing in the future.Originality/valueThe authors adapt the “wedding cake” model of Sustainability Development Goals (SDGs) and their relationships to the concept of “dynamic materiality” in both an organizational as well as a macro perspective. In addition, the authors introduce the word sustilience to describe an organization's combined ability to achieve “sustainability” through relatively stable conditions as well as the “resilience” to rebound after major external shocks.