Knowledge assimilation processes of rapidly internationalising firms: longitudinal case studies of Scottish SMEs

<p>Purpose – The accumulation of knowledge and learning by firms has been identified as being critical to their internationalisation. This paper aims to explore the knowledge assimilation processes of rapidly internationalising small to medium-sized enterprises (SMEs).</p> <p>Design/methodology/approach – This is a qualitative enquiry in two stages. First, four case studies were selected from firms that were participating in an internationalisation programme run by Scottish Enterprise, the regional development agency. Data collection involved semi-structured interviews with chief executive officers (CEOs) and programme providers, and archival data. Second, two focus groups were held with six CEOs participating in the programme.</p> <p>Findings – The findings indicate that knowledge sharing is important for rapidly internationalising SMEs and that firms adopted high levels of formality in assimilating knowledge. Two key aspects of formality were identified as important; formal planned events to share explicit and tacit knowledge and the codification of tacit to explicit knowledge. Knowledge may be assimilated less formally by the retention of tacit knowledge as tacit, while utilising elements of formality. The paper finds that learning for internationalisation can be transferred to support domestic growth.</p> <p>Practical implications – It is important for firms to develop appropriate knowledge assimilation processes within their management systems to support internationalisation. The CEO and management team need to take the lead in marshalling commitment to learning processes and in cultivating an organisational culture that is supportive of learning.</p> <p>Originality/value – This research contributes to international entrepreneurship by providing insights into the knowledge assimilation processes employed by rapidly internationalising SMEs to manage the tensions between the need for greater formality to be efficient at learning, and informality to enable speedy decision making.</p&gt

How to turn asymmetry into effective corporate-startup partnerships?

Startup-corporation partnerships are vital to stay relevant and competitive. However combining capabilities creates a paradox between sometimes ineffective collaboration and a high pay-off for innovation and creativity. Shameen Prashantham discusses how corporations can address goal, structure and attention asymmetry by clarifying synergy, creating interfaces and cultivating exemplars

How do new ventures in MNC ecosystems proactively overcome interfirm asymmetries?

Several contemporary large multinational corporations (MNCs) have developed interfirm ecosystems that are likely to attract a heterogeneous set of actors, including new ventures. New ventures are asymmetric vis-à-vis the focal MNC in terms of organisational size, structure and power which could be an impediment to the development of social capital between these sets of firms. And yet MNCs are potentially a source of novel information, opportunities and ideas. An interesting question to consider therefore is how new ventures overcome interfirm asymmetries to develop and leverage social capital with large MNCs. Our synthesis of the academic literature suggests that some new ventures are more adept than others at partnering with MNCs because they are more proactive in forming and leveraging interfirm ties with large MNCs. Insightful observations of four panellists shed light on how startups’ proactive behaviours can be vitally important in forming, consolidating and extending relationships with large MNCs

Paradoxical cognition and decision quality: the moderating effects of flexibility and rationality

While recent research has provided valuable insight into how paradox facilitates dynamic decision making, the positive effect of paradoxical cognition on strategic decision quality has not been empirically tested, and its boundary conditions are unclear. We addressed these lacunae using survey data from 110 firms in China, an intriguing setting for studying paradox. We found the effect of paradoxical cognition on decision quality to be positive and significant. Furthermore, we found that firms adopting high levels of comprehensiveness and low levels of strategic flexibility benefit more from paradoxical cognition. We thus shed light on the boundary conditions of paradoxical cognition’s positive effect on strategic decision quality: it is a complement to comprehensiveness, but is a substitute to strategic flexibility

Decision making process: conceptualizing how Chinese and Western managers differ

In this paper we pose the question: How does the decision making process of Chinese managers differ from that of Western managers? Integrating Chinese notions of thinking with the stages of decision making process, our central argument is that in contrast to Western managers, Chinese managers are more likely to identify problems collectively (rather than set goals individualistically), synthesize conflicting alternative views (rather than analyze mutually exclusive alternatives), and arrive at non-binding solutions (instead of committing to a unique solution). We offer a depiction of the decision making process of Chinese managers, which we show to differ fundamentally from that of Western managers

Validation of a measure to assess Post-Traumatic Stress Disorder: a Sinhalese version of Impact of Event Scale

BACKGROUND: There is paucity of measures to conduct epidemiological studies related to disasters in Sri Lanka. This study validates a Sinhalese translation of the Impact of Event Scale- 8 items version (IES-8) for use in Sri Lanka. METHODS: This cross-sectional validation study was conducted in the densely populated rural area of Tangalle in the Southern province of Sri Lanka. The English version of the IES-8 after translation procedures in to Sinhalese was administered by trained raters to a community sample of 30 survivors of tsunami aged 13 years and above. Diagnostic accuracy, reproducibility and validity of the translated IES was assessed in terms of sensitivity, specificity, predictive values, likelihood ratios, diagnostic odds ratio, inter-rater reliability, internal consistency, criterion validity and construct validity. RESULTS: The cut-off score of 15 gave a fair sensitivity (77%) for screening along with other components of diagnostic accuracy. The inter-rater reliability was high (0.89). The internal consistency for the whole scale was high (0.78) with a high face and content validity. The criterion validity was high (0.83) and the construct validity demonstrated the two factor structure documented in the literature. CONCLUSION: This study demonstrates that this Sinhalese version of the Impact of Event Scale has sound diagnostic accuracy as well as psychometric properties and makes it an ideal measure for epidemiological studies related to natural and man made disasters in Sri Lanka

Cultural differences in paradoxical tensions in strategy episodes

In this conceptual paper, we ask: How does the larger cultural context influence the way that groups of managers deal with paradoxical tensions in strategy episodes? We focus on three sources of tension in the conduct and design of strategy episodes – inclusion, formality and coordination/communication. We argue that in each case, cultural influences affect the extent to which these facets of strategy episodes are dealt with using a paradox lens. Specifically, in Western cultural contexts, managers tend to have a lower proclivity for adopting a paradoxical frame resulting in a separation of tensions in strategy episodes; by contrast, managers in Eastern cultural contexts such as China more readily adopt a paradoxical frame, and embrace tensions in strategy episodes. We suggest that, over time, non-paradoxical thinking likely promotes inter-episode plurality and planned emergence, while paradoxical thinking tends to foster intra-episode plurality and emergent planning. We contribute to a deeper understanding of strategy episodes as culturally embedded practices

How entrepreneurs and managers can find common ground in big data

Large corporations are increasingly seeking to collaborate with startups as part of their open innovation strategy. Each has strengths that the other lacks. Corporations have resources and legitimacy, startups have creativity and agility. Given the disruptive effects of digitalization, corporations are reaching out to startups with digital capabilities

Lost that lovin' feeling: The erosion of trust between small, high-distance partners

We investigate the role of high distance in trust erosion between small partners. High distance is known to hinder the formation of trust between potential partners, but its role in trust erosion in established partnerships is less understood by international business scholars. Through a qualitative longitudinal study, we extend current theory of how high distance effects the trust dynamics between cross-border partners. Specifically, we unearth three inter-related mechanisms that together explain how and why trust can erode due to high distance. We show that before a partnership is formed, high distance can lead partners to erroneously attribute cues to a potential partner’s high quality, leading to over-expectations of partner performance. Once the partnership is operational, high distance hinders actors’ ability to understand situational factors associated with disappointing outcomes, and so they are attributed to failings of the partner. At the same time, distance-related challenges of bounded reliability render partners reluctant to discuss partnership outcomes. This can result in a vicious cycle of inertia as partners strive to protect goodwill while abandoning efforts to produce partnership outcome because of doubts of the other’s quality. Thus, our theoretical model illustrates the limitations of trust and explains how, paradoxically, high distance can facilitate both trust formation and trust erosion

The interplay between social capital and international opportunities: a processual study of international ‘take-off’ episodes in Chinese SMEs

The paper presents a processual analysis of international take-off episodes in Chinese SMEs. In considering the dynamics of pre-internationalization, the paper posits four temporally finer-grained, phases based on an actor’s orientation towards international opportunities. Based on a sample of twenty Chinese SMEs, the paper theorizes 12 temporally fine-grained take-off episodes, or which appear in practice as a series of tactical moves through which Chinese SMEs advance through the four phases in the longer pre-internationalisation of the process. By considering the multi-dimensional nature of social capital in international take-off, the findings contribute to a greater understanding of how forming international relationships work in the context of pre-internationalization in SMEs, also adding insights into the dynamics of internationalisation as an entrepreneurial and networked endeavour