Management innovation made in China: Haier’s Rendanheyi

This article shows how emerging market companies like China’s Haier Group create management innovations that are appropriate for an environment characterized by increased volatility, uncertainty, complexity, and ambiguity (VUCA). Dealing with VUCA effectively requires practices favoring nimble and decentralized responses; the Haier Group developed a platform of management practices under the label Rendanheyi (in Chinese: 人单合一) to transform itself from a conventional hierarchical manufacturing firm into a highly responsive online-based entrepreneurial company with “zero distance to the customer”. We demonstrate how the organizational, competitive, institutional, and technological contexts mattered for the development of Rendanheyi. Our study contributes several insights for practitioners and academics. First, we showcase how context dependent management innovations are created to allow emerging market firms like Haier to deal with a high VUCA world. Second, we draw lessons from Haier’s experimentation process for other firms. Finally, we create an extended process model of management innovation that managers, in both emerging and developed countries, can readily apply

Reality or illusion? The efficacy of nonmarket strategy in institutional risk reduction

Non-market strategy researchers have postulated that political and social strategies reduce the exposure of firms to risk, but those arguments have received little empirical attention. In this paper, we integrate social capital and institutional theories to examine the efficacy of managerial political ties (MPTs) and corporate social responsibility (CSR) in institutional risk reduction. Using survey data from 179 firms in Ghana we find that, whereas CSR reduces institutional risk exposure, MPTs do not. We also find that the effect of MPTs on risk exposure is moderated by public affairs functions. Contrary to extant literature, we do not find evidence of complementarity between MPTs and CSR. Altogether, the findings not only show that the proposed efficacy of MPTs in risk reduction is illusive, but they also signal the need for scrutinizing the harmony between non-market political and social strategies

A review of the nonmarket strategy literature : toward a multi-theoretical integration

Two parallel strands of nonmarket strategy research have emerged that are largely in isolation. One strand examines strategic corporate social responsibility (CSR) and the other examines corporate political activity (CPA), even though there is an overlap between the social and political aspects of corporate strategies. In this paper, we review and synthesize strategic CSR and CPA research published in top-tier and specialized academic journals between 2000 and 2014. Specifically, we (a) review the literature on the link between nonmarket strategy and organizational performance; (b) identify the mechanisms through which nonmarket strategy influences organizational performance; (c) integrate and synthesize the two strands – strategic CSR and CPA – of the literature; and (d) develop a multi-theoretical framework for improving our understanding of the effects of nonmarket strategy on organizational performance. We conclude by outlining a research agenda for future theoretical and empirical studies on the impact of nonmarket strategy on organizational outcomes

Why wait? Organizational learning, institutional quality and the speed of foreign market re-entry after initial entry and exit

Using a unique dataset of over 1000 foreign marketre-entries by multinational enterprises, we draw on organizational learning and institutional theory perspectives to examine the antecedents of speed of foreign market re-entry into previously exited markets. Contrary to expectations, we find that the length of experience accumulated between initial entry and exit does not lead to earlier re-entries. In turn, the depth of experience accumulated through operating via joint ventures and the nature of the experience determined by the exit process have a significant impact for early re-entrants. Host country institutional quality leads to early re-entry and, under certain circumstances, moderates the relationship between learning from past experiences and re-entry speed. Our findings reveal experience-based learning to be a complex and dynamic process, one highly dependent on the quality of the institutional setting of the firm. Theoretical and practical implications of the paper are discussed, along with directions for future research on international business strategies

Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs

Research is needed on effective servitization by multinational enterprises. This study examines whether Manufacturing Multinational Enterprises (MMNEs) can obtain better servitization outcomes by partnering with Knowledge Intensive Business Service (KIBS) firms and or by internationalizing their service function. In addition, the paper analyses the centralization of management decisions of human resources as an organizational mechanism to overcome coordination failure between product and service units. Our primary research data contain survey responses from 285 MMNEs collected in cooperation with an industry partner. Results show that cross-border strategic alliances and expertise decision centralization are critical to enhance product-service innovation

Developing potential and realized ACAP: The role of market sensing and responsiveness

This study explores how firms develop potential and realized absorptive capacity. In doing so, we extend the associations between organizational antecedents (coordination, system, and socialization capabilities) and potential and realized absorptive capacity by integrating market sensing and responsiveness as prerequisite contextual variables. The analysis is conducted using multilevel data obtained from 205 managers of 24 banks. Our findings show that coordination capabilities are positively associated with potential absorptive capacity while system and socialization capabilities are positively associated with realized absorptive capacity. Market responsiveness significantly moderates the relationship between socialization capabilities and realized absorptive capacity, such that the positive effect becomes weaker as market responsiveness increases. Also, market responsiveness significantly moderates the relationship between system capabilities and realized absorptive capacity, such that the positive effect becomes weaker when market responsiveness both increases and to a less extent decreases. The findings provide implications for research and practice on developing potential and realized absorptive capacity

Investigating dynamic capabilities, agility and knowledge management within EMNEs- longitudinal evidence from Europe

Purpose: This paper aims to analyse the impact of dynamic capability (DC) of emerging market multinationals (EMNEs) on their firm technological performance by teasing out the concepts of agility and knowledge management (KM) through DC. Design/methodology/approach: Evidence from this study is contextualised on EMNEs that operate in the UK, Germany and France. This study examines the investment in intangible assets which EMNEs use to develop their DC over the period 2005-2016 and how this leads to increased firm technological performance. Findings: Results show that higher investments in DC allow EMNEs to be more agile and gain competencies through KM and thereby sustain competitiveness in the three leading European countries. This research also identifies which EMNE groupings show greater technological performance and how such EMNE groupings are able to translate dynamic capabilities into greater technological performance compared to others over time. In summary, the role of DC during of the global financial crisis was also examined, where they are required to be more agile. Originality/value: This paper sheds light on a novel way and motivation of successful EMNEs in using developed host countries as a location for generating DC through agility and KM

No-size-fits-all: collaborative governance as an alternative for addressing labour issues in global supply chains

Labour issues in global supply chains have been a thorny problem for both buyer firms and their suppliers. Research initially focused mostly on the bilateral relationship between buyer firms and suppliers, looking at arm’s-length and close collaboration modes, and the associated mechanisms of coercion and cooperation. Yet continuing problems in the global supply chain suggest that neither governance type offers a comprehensive solution to the problem. This study investigates collaborative governance, an alternative governance type that is driven by buyer firms setting up a coalition with competitor firms in order to increase leverage and address the supplier and/or host country specific labour issues. Based on interviews with managers involved in the establishment and management of such coalitions and supplier firms in the garment industry, we examine the rationale behind collaborative governance and discuss its opportunities and challenges in addressing labour issues in global supply chains

Short-term versus long-term impact of managers: evidence from the football industry

Studies into the impact of top manager change on organization performance have revealed inconsistent findings. Using longitudinal data over a 12-year period on football organizations, we test for the short-term and long-term effects of manager change in comparison to the tenures of incumbent top managers. We find that long incumbent tenures are associated with performance far above the average. But when looking at change events, contrary to theoretical expectations, we find that change in the short term leads to a brief reprieve in poor performance only for performance to deteriorate in the long term as underlying weaknesses once again take hold. Our findings reveal the illusion of a short-term reprieve and the long-term consequences of this illusion. We map several implications for research and practice from our work

Managing and preparing for emerging infectious diseases: Avoiding a catastrophe

The extent and impact of neglected diseases has been well documented in the public health and medical science literature. However, from a strategic management and organizational perspective, there is a gap in understanding the complex relationships that underpin the functioning of Product Development Partnerships (PDPs) in managing the drug development process. This paper focuses on (a) identifying the importance of PDPs in the development of new drugs for neglected and emerging infectious diseases; and (b) identifying the key stakeholders, their relationships and (levels) of dependencies in PDPs through the resource dependency lens. Our model offers a unique perspective to the strategic alliance literature by not only showing the complex interrelationships between various stakeholders but also in highlighting power, trust and governance ask key challenges. Based on our extensive analysis of the literature and the contextualization of the recent Novel Coronavirus epidemic as a case, we offer conclusions and reflections on the ability of PDPs to mitigate risks related to neglected and emerging infectious diseases from a management perspective