Human Resources Strategy: The Era of Our Ways

The purpose of this chapter is to discuss some of the main features and trends in human resources (HR) strategy. Inasmuch as people are among the most important resources available to firms, one could argue that HR strategy should be central to any debate about how firms achieve competitive advantage. But this “people are our most important asset” argument is actually fairly hollow in light of the evidence. Far too many articles on HR start with this premise, but the reality is that organizations have historically not rested their fortunes on human resources. The HR function remains among the least influential in most organizations, and competitive strategies have not typically been based on the skills, capabilities, and behaviors of employees. In fact, as Snell, Youndt and Wright (1996:62) noted, in the past executives have typically tried to “take human resources out of the strategy equation--i.e., by substituting capital for labor where possible, and by designing hierarchical organizations that separate those who think from those who actually do the work.

From Measurement to Ownership: The Evolution and Organizational Implications of Modern Performance Management

[Excerpt] At the core of performance management and human resources more generally is the idea that people make the difference in organizations. Research has shown time and time again that effective deployment of human capital is a key differentiator in business. People, and more specifically their distinct knowledge and skills, function as the most reliable source of competitive advantage for companies in today’s economy. Realizing the need for continual development of the workforce, American companies spent an estimated total of $164.2 billion, or$1,196 per employee, on workforce training and development in 2012. Effective performance management has the ability to significantly enhance such development efforts; employees could increase their productivity by as much as 26% under effective performance management systems. As companies strive to do more with less, properly designed and executed performance management functions as an essential mechanism for increasing employee productivity and continually improving business results

Revealing the Vicious Circle of Disengaged User Acceptance: A SaaS Provider's Perspective

User acceptance tests (UAT) are an integral part of many different software engineering methodologies. In this paper, we examine the influence of UATs on the relationship between users and Software-as-a-Service (SaaS) applications, which are continuously delivered rather than rolled out during a one-off signoff process. Based on an exploratory qualitative field study at a multinational SaaS provider in Denmark, we show that UATs often address the wrong problem in that positive user acceptance may actually indicate a negative user experience. Hence, SaaS providers should be careful not to rest on what we term disengaged user acceptance. Instead, we outline an approach that purposefully queries users for ambivalent emotions that evoke constructive criticism, in order to facilitate a discourse that favors the continuous innovation of a SaaS system. We discuss theoretical and practical implications of our approach for the study of user engagement in testing SaaS applications

Carving out new business models in a small company through contextual ambidexterity: the case of a sustainable company

Business model innovation (BMI) and organizational ambidexterity have been pointed out as mechanisms for companies achieving sustainability. However, especially considering small and medium enterprises (SMEs), there is a lack of studies demonstrating how to combine these mechanisms. Tackling such a gap, this study seeks to understand how SMEs can ambidextrously manage BMI. Our aim is to provide a practical artifact, accessible to SMEs, to operationalize BMI through organizational ambidexterity. To this end, we conducted our study under the design science research to, first, build an artifact for operationalizing contextual ambidexterity for business model innovation. Then, we used an in-depth case study with a vegan fashion small e-commerce to evaluate the practical outcomes of the artifact. Our findings show that the company improves its business model while, at the same time, designs a new business model and monetizes it. Thus, our approach was able to take the first steps in the direction of operationalizing contextual ambidexterity for business model innovation in small and medium enterprises, democratizing the concept. We contribute to theory by connecting different literature strands and to practice by creating an artifact to assist managemen

German and Israeli Innovation: The Best of Two Worlds

This study reviews – through desk research and expert interviews with Mittelstand companies, startups and ecosystem experts – the current status of the Israeli startup ecosystem and the Mittelstand region of North Rhine- Westphalia (NRW), Germany. As a case study, it highlights potential opportunities for collaboration and analyzes different engagement modes that might serve to connect the two regions. The potential synergies between the two economies are based on a high degree of complementarity. A comparison of NRW’s key verticals and Israel’s primary areas of innovation indicates that there is significant overlap in verticals, such as artificial intelligence (AI), the internet of things (IoT), sensors and cybersecurity. Israeli startups can offer speed, agility and new ideas, while German Mittelstand companies can contribute expertise in production and scaling, access to markets, capital and support. The differences between Mittelstand companies and startups are less pronounced than those between startups and big corporations. However, three current barriers to fruitful collaboration have been identified: 1) a lack of access, 2) a lack of transparency regarding relevant players in the market, and 3) a lack of the internal resources needed to select the right partners, often due to time constraints or a lack of internal expertise on this issue. To ensure that positive business opportunities ensue, Mittelstand companies and startups alike have to be proactive in their search for cooperation partners and draw on a range of existing engagement modes (e.g., events, communities, accelerators). The interviews and the research conducted for this study made clear that no single mode of engagement can address all the needs and challenges associated with German-Israeli collaboration

The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives

This study is the first to provide a systematic review of the literature focused on the relationship between digitalization and organizational agility (OA). It applies the bibliographic coupling method to 171 peer-reviewed contributions published by 30 June 2021. It uses the digitalization perspective to investigate the enablers, barriers and benefits of processes aimed at providing firms with the agility required to effectively face increasingly turbulent environments. Three different, though interconnected, thematic clusters are discovered and analysed, respectively focusing on big-data analytic capabilities as crucial drivers of OA, the relationship between digitalization and agility at a supply chain level, and the role of information technology capabilities in improving OA. By adopting a dynamic capabilities perspective, this study overcomes the traditional view, which mainly considers digital capabilities enablers of OA, rather than as possible outcomes. Our findings reveal that, in addition to being complex, the relationship between digitalization and OA has a bidirectional character. This study also identifies extant research gaps and develops 13 original research propositions on possible future research pathways and new managerial solutions

Business process management tools as a measure of customer-centric maturity

In application of business process management (BPM) tools in European commercial sectors, this paper examines current maturity of customer centricity construct (CC) as an emerging dimension of competition and as a potential strategic management direction for the future of business. Processes are one of the key components of transformation in the CC roadmap. Particular departments are more customer orientated than others, and processes, customer-centric expertise, and approach can be built and utilized starting from them. Positive items within a current business process that only involve minor modification could be the basis for that. The evidence of movement on the customer-centric roadmap is found. BPM in European telecommunications, banking, utility and retail sector supports roadmap towards customer-centricity in process view, process alignment and process optimization. However, the movement is partial and not flawless, as BPM hasn’t been inquired for supporting many of customer-centric dimensions

Helping Personal Service Firms to Cope with Digital Transformation: Evaluation of a Digitalization Maturity Model

Background: Maturity models are strategic and systematic instruments that help firms in the process of digital transformation. They are widely used as tools to display trajectories to guide the progression from an analog to a digital stage. To date, maturity models for industries such as manufacturing, software development, public services, telecommunication, and startup companies have been developed, and also being applicable in real-life practice. However, for the sector of personal services (e.g., education, retail, hospitality, healthcare, arts and entertainment, and craftmanship), maturity models are missing. To address this gap, this research aims to present a digitalization maturity model for the specific needs of personal service firms, and evaluate its applicability, usefulness, and impact in practice. Method: The research is embedded in a comprehensive Design Science Research cycle. Based on descriptive and prescriptive knowledge, a maturity model has been developed. This paper evaluates the applicability, usefulness, and impact of the maturity model by conducting a mixed-method approach, including a survey with 30 experts from personal service firms and eight semi-structured in-depth expert interviews. Results: Our results indicate that the maturity model serves as a strategic and systematic tool for short-, mid-, or long-term digital transformation projects by guiding personal service firms through consecutive development maturity stages until reaching a so-called stage of “digital maturity”. The model has been determined to be applicable, useful, and to potentially impact personal service firms towards the development of a digital business ecosystem. Conclusion: The presented maturity model offers guidance for personal service firms to achieve the transition from analog to digital and serves as a basis for future research in developing effective instruments and strategic tools to cope with challenges from digital transformation

Overcoming Barriers in Supply Chain Analytics—Investigating Measures in LSCM Organizations

While supply chain analytics shows promise regarding value, benefits, and increase in performance for logistics and supply chain management (LSCM) organizations, those organizations are often either reluctant to invest or unable to achieve the returns they aspire to. This article systematically explores the barriers LSCM organizations experience in employing supply chain analytics that contribute to such reluctance and unachieved returns and measures to overcome these barriers. This article therefore aims to systemize the barriers and measures and allocate measures to barriers in order to provide organizations with directions on how to cope with their individual barriers. By using Grounded Theory through 12 in-depth interviews and Q-Methodology to synthesize the intended results, this article derives core categories for the barriers and measures, and their impacts and relationships are mapped based on empirical evidence from various actors along the supply chain. Resultingly, the article presents the core categories of barriers and measures, including their effect on different phases of the analytics solutions life cycle, the explanation of these effects, and accompanying examples. Finally, to address the intended aim of providing directions to organizations, the article provides recommendations for overcoming the identified barriers in organizations