Learning from Semantic Inconsistencies as the Origin of Dynamic Capabilities in MNCs: Evidence from Pharmaceutical MNCs

This paper focuses on origins of dynamic capabilities in multinational corporations (MNCs). Building on literature in the area of organizational memory and organizational learning, we investigate factors that contribute to subsidiaries of MNCs ability to detach themselves from obsolete knowledge and practices. To construct the theoretical framework, 11 extensive interviews with marketing and sales executives from three pharmaceutical MNCs operated in Iran were conducted. We test our hypotheses using statistical quantitative analysis of data related to 459 observations from subsidiaries of 51 pharmaceutical MNCs during years 2005-2009. We examine the quality of corrective actions taken by subsidiaries of pharmaceutical MNCs subsequent to subsidiaries failing to meet expected performance objectives. Our findings confirm a moderating role for internationalization, span, and the composition of human resources on the quality of corrective actions pursued

Participation and organizational commitment during change: From utopist to realist perspectives

Trust has a great potential for furthering our understanding of organizational change and learning. This potential however remains largely untapped. It is argued that two reasons as for why this potential remains unrealized are: (i) A narrow conceptualization of change as implementation and (ii) an emphasis on direct and aggregated effects of individual trust to the exclusion of other effects. It is further suggested that our understanding of the effects of trust on organizational change, should benefit from including effects of trust on the formulation stage. It should also benefit from exploring the structuring effects of trust in organizations. Throughout this chapter, ways to extend current research on trust in organizations are suggested. The chapter also provides examples of relevant contributions where available. In order to capture organizational effects of trust, it is suggested that trust should be studied over longer time intervals, and include several referents of trust, spanning both horizontal and vertical relationships in the organizatio

Re-reengineering the dream: agility as competitive adaptability

Organizational adaptation and transformative change management in technology-based organizations is explored in the context of collaborative alliances. A Re-reengineering approach is outlined in which a new Competitive Adaptability Five-Influences Analysis approach under conditions of collaborative alliance, is described as an alternative to Porter’s Five-Forces Competitive Rivalry Analysis model. Whilst continuous change in technology and the associated effects of technology shock (Dedola & Neri, 2006; Christiano, Eichenbaum & Vigfusson, 2003) are not new constructs, the reality of the industrial age was and is a continuing reduction in timeline for relevance and lifetime for a specific technology and the related skills and expertise base required for its effective implementation. This, combined with increasing pressures for innovation (Tidd & Bessant, 2013) and at times severe impacts from both local and global economic environments (Hitt, Ireland & Hoskisson, 2011) raises serious challenges for contemporary management teams seeking to strategically position a company and its technology base advantageously, relative to its suppliers, competitors and customers, as well as in predictive readiness for future technological change and opportunistic adaptation. In effect, the life-cycle of a technology has become typically one of disruptive change and rapid adjustment, followed by a plateau as a particular technology or process captures and holds its position against minor challenges, eventually to be displaced by yet another alternative (Bower & Christensen, 1995)

Organizational Change and Management Control in a Not-For-Profit Organization:A Qualitative Field Study

In this article we report the results of an inductive field study designed to develop an understanding of organizational and accounting change in an Australian church organization. We approach this study following the insights from Burns and Scapens’ (2000) theorisation of management accounting change and the new institutional sociology perspective. The data collection and analytical methodology adopted is grounded approach that summarized interview data into shorter statements to identify themes and to reveal the emergent phenomena. Eight broad themes emerged and were the points of discussion adopted by us. The cause and effect relationships of the predominantly internally generated organisational changes within a Christian-based community service organization became apparent. The subject organization had enjoyed success through hard work, commitment, dedication and loyalty and the collective energy of the individuals and groups within. Additionally, pressures of tighter government funding and service outcome orientation moderately caused the traditional family-like structure to diminish and evolve into, or at least resembled a more corporate styled organization. However, the structuring of the funded operations within the organization had a strong grain of internal force at the time that kept these influences fairly minimal, but manageable without impacting, to a large degree, the management accounting control mechanisms. Our contribution to the accounting and organizational change literature lies in the diversity in the findings that offers a rich and colorful representation of the impact of radical change in a not-for-profit organization. We call for more empirical research into this emerging area in management accounting.Organizational change; institutional theory; management accounting change; not-for-profit organizations

Writing new scripts: redefining managerial agency in Cuba

Transitional societies are faced with particularly challenging and pressing problems. These usually involve the passage from a centralised, socialist-based society, to a decentralised, market-based economy. This paper addresses a somewhat different case: that of Cuba. According to the official discourse, the island is not in a state of transition. On the contrary, it is assumed that the conquests of the revolution are there to stay. Nonetheless, significant changes are taking place. The market logic is being adopted in a growing number of cases, ranging from empresas mixtas to the weak signals of entrepreneurial activity. Drawing on a series of eight focus groups with a total of 106 Cuban executives and management scholars, this paper addresses the uniqueness of the Cuban case on the basis of the theory of structuration. The paper reports how the need to keep the faith is being added with the adoption of Western management practices, and how the interplay between planned and emergent change is sculpting transition through the redefinition of managerial scripts.Cuba, managerial scripts, agency, structuration theory, focus groups

The Role of Corporate HR Functions In Multinational Corporations: The Interplay Between Corporate, Regional/National And Plant Level

The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation processes. This paper thus explores the way in which HR practices come into being and how they are implemented and coordinated. These insights help us understand further the roles of international corporate HR functions that are being identified. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR managers, line managers and senior executives of six multinational companies in eight countries from September to December 2004. This data reveals new classifications of processes by which HR activities are developed, implemented and coordinated, both in terms of who is involved and how these processes are carried out

Assessing the Value of International Workers:a Case of Shell Petroleum Development Company in Nigeria

As a result of globalization, many companies, be it corporate, public or international operates on a global scale. With the rise of companies operating in a global village, many companies are also expanding internationally. Mostly, international organizations operating abroad are faced with employees of foreign cultures with an entirely different perspective. Oftentimes, cross-cultural issues arise in the management of the company's human resources (HR). According to Laroche (1998), the rapid globalization of the world's economy has brought forth several changes. In view of this, it is the intention of this non-empirical article to investigate how to assess the international workers, by adopting the latest management trend

The Role of Corporate HR Funcitons in MNCs: The Interplay Between Corporate, Regional/National and Plant Level

The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation processes. This paper thus explores the way in which HR practices come into being and how they are implemented and coordinated. These insights help us understand further the roles of international corporate HR functions that are being identified. Our data is based on 65 interviews, which were held (as part of larger study of HR-function excellence) with HR managers, line managers and senior executives of six multinational companies in eight countries from September to December 2004. This data reveals new classifications of processes by which HR activities are developed, implemented and coordinated, both in terms of who is involved and how these processes are carried out

Contingency and Institutional Perspectives within the Liberal Professional Organisation

This developmental paper will argue the necessity of drawing on both the contingency and institutional theories when researching the professional organisation. It is based on a doctoral thesis that addresses the barriers to acceptance and application of marketing within accountancy and law firms. The paper briefly presents the relevant definitions of the professions and the role of the marketing function within the organisation. The Contingency approach and its relevance to theory building and research in marketing have been identified. Conversely, the Institutional approach has been identified as relevant to the professions. The two approaches are separately outlined and their theoretical foundations traced. Finally, two theoretical models are proposed for discussion. The theoretical model that has been further developed for the thesis explains the barriers to marketing as a result of organisational conflict between the need for response to contingency pressures and the internal and external institutional isomorphic pressures of maintaining professional legitimacy with the implications of forfeiting organisational efficiency