Entrepreneurial orientation and international performance: the moderating effect of decision-making rationality

This research examines how entrepreneurial orientation (EO) influences international performance (IP) of the firm taking into account the moderating effect of decision-making rationality (DR) on the EO–IP association. Such an investigation is significant because it considers the interplay of strategic decision-making processes supported by the bounded rationality concept in the entrepreneurship field. Drawing from a study on activities of 216 firms in the United States and United Kingdom, the evidence suggests that DR positively moderates the EO–IP association. The findings suggest that managers can improve IP by combining EO with rational (analytical) processes in their strategic decisions

Team Cohesion in the Restaurant Industry: The Influence of Core Evaluations

Team cohesion has been clearly established in the literature as an essential component of effective work teams, yet little research has been conducted in regard to what factors lead to cohesion within a restaurant management team. What is currently known about the antecedents of cohesion indicates that it emerges from individual team member attitudes and perceptions as a collective property of the team. This, in turn, suggests cohesion is influenced by the dispositional traits of team members. The core evaluations construct, which represents a model of dispositional traits existing within each individual at the most basic level, offers implications for the emergence of cohesion in both of its forms, task cohesion and social cohesion. To help bridge the gap in prior research, this study was conducted to investigate the influence of core evaluations on team cohesion within restaurant management teams. This study first adopted and modified Judge et al.\u27s (1997) theoretical model of core evaluations, advancing a model in which two types of core evaluations, self and external, were both second-order latent constructs each reflected by four first-order evaluative traits. The proposed trait structure was then tested. Finally, drawing on approach/avoidance theory and social exchange theory, this study hypothesized a multilevel model in which the dispositional traits of core self-evaluation (CSE) and core external-evaluation (CEE) at the individual front-line manager level have positive effects on task and social cohesion within restaurant management teams. To accomplish the objectives of this study, a survey research design was employed. The survey instrument was comprised of four sections: core self-evaluation, core external-evaluation, team cohesion, and demographic profile. Data were collected from managers employed by four restaurant franchise groups, resulting in a useable sample of 317 individual responses composing 76 teams ranging in size from 2-6 members. Confirmatory factor analysis was conducted to test the factor structure of CSE and CEE, as well as the overall measurement model. The task and social cohesion items were then aggregated to the team level and multilevel structural equation modeling (MSEM) was conducted to test the relationships between latent constructs. The results of this study supported the second-order factor structure of core evaluations. CSE was shown to be reflected by self-esteem, generalized self-efficacy, emotional stability, and locus of control. CEE was shown to be reflected by belief in a benevolent world, belief in a just world, and belief in people. Due to sample size, a reduced-parameter model was developed in which CSE and CEE were treated as sub-dimensions and measured by mean scores. MSEM results from this model showed that CSE had significant positive effect on team task cohesion whereas CEE had a significant positive effect on team social cohesion. These results offer numerous theoretical and practical implications for the study of core evaluations, team cohesion, and micro-macro phenomena, which are discussed in the final chapter. Limitations and suggestions for future research are also discussed

Management accounting systems, top management team’s risk characteristics and their effect on strategic change

Globalization intensifies world competition which leads to continuous market and industry changes that force the majority of organizations to reconsider their strategic position and engage in strategic changes, mostly, through continuous innovation and new product development with smaller life cycles. These strategic actions have developed an environment with increased complexity, uncertainty and risk. On the other hand, organizations differ in their ability to realize strategic changes, depending on many factors that affect their strategic management process. The aim of this paper is to examine the effect of TMTs risk characteristics (risk propensity, risk perception and risk taking), on the extent of strategic change both, directly and indirectly, through the design and use of the management accounting system (MAS). The proposed research model is tested via a survey on 133 top management teams, from large size enterprises with more than 250 employees throughout Greece. Our finding suggest that (a) risk taking characteristic is determined by the other two risk characteristics of risk perception and risk propensity, and (b) there is a direct and a significant indirect relationship between TMTs’ risk taking decisions and their strategic changes, affected by the intervening mediating role of the broad-scope and interactive use of MAS. The results of the study will help organisations to understand the significance of MAS use and the intervening effect on the relationship between TMTs risk characteristics and their strategic decision making process when considering new strategic changes.peer-reviewe

Knowledge withholding intentions in teams: the roles of normative conformity, affective bonding, rational choice and social cognition

The decision of members in a knowledge-intensive team to withhold their knowledge may threaten the performance of the team. To address the problem of knowledge resource risk in project teams, we maintain that it is important to understand why team members choose to withhold their knowledge, conceptualized as knowledge-withholding intention. In line with the literature on effort withholding, the research on multifoci relations between justice perceptions and social exchanges, and social cognitive theory, we proposed that the social exchange relationships that individuals form in the workplace, their perceptions of justice, and their knowledge withholding self-efficacy would influence their knowledge-withholding intentions. Through a survey of 227 information system development team workers, we found that all social exchange relationship variables had a significant impact on knowledge-withholding intentions. However, the justice perception variables only indirectly influenced knowledge-withholding intentions through the mediation of social exchange relationships. In addition, one of the task variables, task interdependence, influenced knowledge withholding intention through the mediation of knowledge withholding self-efficacy. Our results contribute to the knowledge management literature by providing a better understanding of the antecedents of knowledge withholding. We also offer suggestions for future research utilizing the framework of Kidwell and Bennett (1993) to study effort and knowledge withholding

Creation of principal-agency relationship value : social capital and dynamic learning capability perspectives

In this \u27age of turbulence\u27 (Greenspan, 2007), businesses, in response to challenges of globalized competition, escalated customer expectation, and disruptive technological innovations, find innovative value propositions (Slater, 1997) critical for survival and sustained competitiveness. In lined with relationship marketing that suppliers need target valuable custome r to establish long-term relationship for survival in fierce competition (Gronroos, 2000), scholars (e.g. Walter, Ritter & Gemunden, 2001) looking from supplier perspective identify direct and indirect value as two dimensions for supplier-perceived relationship value. Direct value-based drivers of business relationships consist of higher profits from the product and service offering (i.e. profit function), growth of trade volumes (i.e. volume function), and the possibility to sell over-capacity (i.e. safeguard function). Indirect value-based drivers of business relationship consist of customers’ contribution in cooperative development of new products or processes (i.e. innovative function), intelligence about the markets and customers (i.e. market function and scout function), and facilitation of access to important third parties (i.e. access function). To extend prior literatures, this study tries to explore the antecedents of relationship value from both dynamic capability perspective and social capital perspective. Drawing upon a database of 411 manufacturer-channel partner relationships, this study examines the impacts of three dimensions of social capital (i.e. structural, relational, and cognitive dimensions: in the forms of extra- industry ties of principal managers, competence-based trust, and strategic consensus with a specific channel partner), and two types of learning (i.e. exploratory learning and exploitative learning) on the creation of relational value, that in turn, affects relationship performance. Specifically, the findings demonstrate that: (1) relationship value has impact on both relationship performance and market performance; (2) dynamic learning capabilities have significant impacts on the creation of relationship value; (3) social capital of principals contributes a lot to the creation of relationship value; (4) the impacts of social capital on relationship value are partially mediated by exploratory and exploitative learning; and finally (5) knowledge non-redundancy between principals and agents positively moderates the overall linkage between social capital and principal-agent learning. On the basis of current findings, managerial implications and future research directions are drawn

Disentangling the effects of customer-based corporate reputation on business-to-customer relationships: direct, mediated and moderated effects

The extant literature provides a limited understanding of the role of customer-based corporate reputation (CBR) in business-to-customer relationships. Cognitive CBR and affective CBR are two distinct attitudinal components of CBR. However, research into CBR largely neglects to test the separate effects of both CBR components on business-to-customer relationships. In particular, the affective aspects of CBR have been underrated in comparison with the cognitive aspects of CBR in the conceptualization of CBR as a whole. The underlying mechanisms and boundary conditions of the effects of the CBR components on business-to-customer relationships also invite researchers’ attention to better explain how these effects operate and how different circumstances influence these effects. This study, therefore, distinguishes between both the cognitive and affective components of CBR to investigate their relative effects on business-to-customer relationships, and examines the underlying mechanisms and boundary conditions of such effects. For this purpose, customer trust, customer commitment, intentional loyalty, and customer perceived risk are adopted as representative constructs of business-to-customer relationships, from the existing literature. This study developed a conceptual model comprising of 21 hypotheses representing the inter-construct effects. Quantitative methodology was adopted to test the model. For this purpose, a systematic sample of 1059 customers was surveyed from the fast-food services industry in Pakistan. By disentangling the effects of CBR on business-to-customer relationships, this study makes several theoretical contributions. First, this study reveals that cognitive CBR and affective CBR have differential effects on business-to-customer relationships. Second, this study extends the application of social exchange theory into the areas of corporate reputation and business-to-customer exchanges by identifying that the underrated affective component of CBR has a strong impact on business-to-customer relationships. Third, this study explicates the mechanisms through which CBR affects business-to-customer relationships, by analysing the role of mediating factors that explain the effects of both CBR components on intentional loyalty. Fourth, this study finds relationship age as an important moderator (i.e. boundary condition) for the effects of CBR on business-to-customer relationships. Fifth, drawing on the international business perspective, this study theorizes and tests the moderating effects of firm type (local versus MNEs) for the impacts of CBR components on business-to-customer relationships. The findings help the service providers to better understand the ways in which CBR may affect their relationship marketing activities. The findings also suggest some useful implications in the areas of integrated marketing communication, customer segmentation, and international business management

Coordination in Business Process Offshoring

We investigate coordination strategies in the remote delivery of business services (i.e. Business Process Offshoring). We analyze 126 surveys of offshored processes to understand both the sources of difficulty in the remote delivery of services as well as how organizations overcome these difficulties. We find that interdependence between offshored and onshore processes can lower offshore process performance. Investment in coordination mechanisms such as modularity, ongoing communication and generating common ground across locations ameliorate the performance impact of interdependence. In particular, we are able to show that building common ground – knowledge that is shared and known to be shared- across locations is a coordination mechanism that is distinct from building communication channels or modularising processes. Our results also suggest the firms may be investing less in common ground than they should.Coordination; offshoring; modularity; common ground; interdependence

Strategic decision-making process characteristics, Confucian values and their effects on international entry mode decisions: a study of Chinese private firms

Based on the literature of SDM (strategic decision-making), cultural studies, and international entry mode, this study examines the effects of managerial cultural values and characteristics of SDMP (strategic decision-making process) on the Chinese private firms’ international entry mode decisions. Although the international entry mode decision is one of most frequently studied strategic decisions in the domain of international business, prior studies tend to neglect the effects of the decision-maker and decision-making process by assuming a rational decision model employed in the entry mode decision-making. However, SDM literature indicates that the decision-maker and decision process also play important roles in making a strategic decision. In order to address two aforementioned less explored elements, this study develops an integrative framework by introducing managerial cultural values - Confucian dynamism - and characteristics of SDMP into the extant rational framework to explain Chinese firms’ international entry mode decisions. This study adopts a mixed-method research approach by employing the survey method as the main design, supplemented by a follow-up case study method. Following a pilot paired questionnaire mailing, a large-scale mail survey was carried out in China, which generated 233 usable replies. CFA (confirmatory factor analysis) and binary logistical regression techniques were used to conduct construct validation and hypothesis testing respectively. In order to further understand the phenomenon in the real setting, a case study approach was conducted in four Chinese firms, which used different entry modes in their most important international entries. The findings of this study largely confirm the theoretical arguments of SDM literature and cultural studies that managerial value and decision process affect the outcome of strategic decision. Confucian dynamism was found to have both direct and moderating effects on the international entry mode decision. Characteristics of SDMP were also found to exert a moderating role in adjusting the effect of managerial value on the perceived situation. The evidence of case study also reflects that managers with varying degrees of Confucian dynamism tend to evaluate situational conditions differently, and different decision process dimensions are likely to limit or increase the chance of the subjective treatment of situational information. The major contribution of this study is that seemingly for the first time, Confucian dynamism, a traditional Chinese cultural trait, was found to have a directly negative influence and a moderating effect on international entry mode decision. In addition, characteristics of SDMP also were found to play an important role in adjusting the cultural preferential treatment of situational information. In short, besides the impacts from environmental and firm conditions, this study found that the decision-maker and the SDMP can also explain entry modes

The antecedents and consequences of a customer value-oriented dominant logic: a dynamic managerial capabilities perspective

Market orientation has been primarily studied as a set of firm-level behaviours linked to the: generation of, dissemination of, and responsiveness to market intelligence (market-oriented behaviours). However, it has rarely been studied under an organisational culture perspective; the investigations that have conceptualised and operationalised market-oriented organisational cultures have overlooked a market-oriented managerial mind-set dimension. A concept to help address this research gap is the firm s dominant logic, which highlights the degree to which managers assumptions are manifested into their corporate cultures. The firm s dominant logic is integrated with the market orientation literature to conceptualise and operationalise the customer value-oriented dominant logic (CVODL) construct. The CVODL construct is defined as the extent to which managers assume that creating customer value should drive performance. The CVODL construct contributes to the marketing literature by extending current conceptualisations and operationalisations of market-oriented organisational cultures through a managerial mind-set viewpoint. This doctoral study examines the link between a CVODL and managers making resource investments into the departments of their corporations that they perceive to create value for their customers (an alternative to market-oriented behaviours). Functional resource investments are studied as an alternative form of implementing the marketing concept than market-oriented behaviours. A conceptual framework was developed to conceptualise the antecedents and consequences of the CVODL under the dynamic managerial capabilities perspective. The conceptual framework was tested using a multi-industry and national-level sample of American corporations, through structural equation modelling (SEM). These results show that a CVODL drives different forms of implementing the marketing concept, namely, intelligence responsiveness and CVO functional resource investments, both of which were positively related to sales performance. The results also highlight a new driver of market-oriented behaviours under the dynamic managerial capabilities perspective. This doctoral thesis helps managers to foster a market-oriented organisational culture, as well as investigating the ways in which such corporate cultures can drive sales performance. Limitations and avenues of future research are also discussed