Organizational structure and success of international joint ventures in emerging economies: the case of Spanish–Moroccan SMEs

One of the most common ways in which SMEs internationalize their business is through the creation of joint ventures; nevertheless, many of these fail. To avoid this risk, it is important to identify the factors that favour the continuity of such enterprises. The aim of this paper is to analyse the factors related to organizational structure that determine the success of international joint ventures between SMEs in emerging economies, taking as the particular area of study the question of joint ventures between Spanish and Moroccan firms, located in Morocco. The research hypotheses were tested using a linear regression model applied to a sample of 210 international joint ventures. The results obtained from a structured survey show that, with respect to the success of the partnership, significant factors include the existence of majority ownership by the foreign partner, management by a local CEO and the effort made by each party to adapt to the management style of the other. This research contributes to the knowledge of the main factors related to the organizational structure of joint ventures that influence the level of success achieved. The value provided by this research lies in the breadth of the sample examined, in its focus on a very common type of partnership between SMEs, on which very little has been previously studied, and in the fact that the results obtained are extensible to other realities, such as partnerships between European companies and those from countries with similar characteristics (located in Africa or in countries where an Arab culture prevails).     

Tweaking the entrepreneurial orientation–performance relationship in family firms: the effect of control mechanisms and family-related goals

Management literature is currently giving growing conceptual and empirical attention to the peculiarity and relevance of entrepreneurial attitudes in family firms, with divergent outcomes. Aiming at concretizing the effects of these attitudes, denoted by the entrepreneurial orientation construct, on family business performance and considering that family dynamics come into play in this relationship, we particularly investigate the impact of control mechanisms and family-related goals. Findings are based on a sample of 180 family firms and show that Proactiveness and Autonomy are particularly relevant to financial performance. Agency-problems avoiding control mechanisms moderate the effect of Innovativeness and Autonomy, while socioemotional wealth (SEW) goals moderate the effect of Risk-Taking, respectively. The usage of these mechanisms and managing SEW goals provide opportunities for a more efficient exploitation of entrepreneurial attitudes.     

The importance of self-efficacy in the moderating effects of social support on stressor–strain relationships

Abstract

Occupational stress research offers inconsistent findings on the moderating effects of social support on the stressor–strain relationship. This study contributes to the research literature by examining how social support's moderating effect is dependent on one's self-efficacy. Ninety-six US military police soldiers completed two surveys 3 months apart. The results showed that three out of four regression equations had significant three-way interactions. Organizational constraints×supervisor support×self-efficacy had statistically significant interactions in the prediction of job satisfaction and psychological well-being. Organizational constraints×co-worker support×self-efficacy had a significant interaction in the predicted of psychological well-being. These interactions explained between 5% and 10% of the variance in the dependent variables. Social support buffered the stressor–strain relationship when self-efficacy was high and reverse buffered the relationship when self-efficacy was low. These results indicate that interventions aimed at reducing strains by increasing social support should consider an individual's self-efficacy. Future research should consider incorporating content of communication to determine if high and low self-efficacy individuals receive or react differently to different types of communication content.     

The impact of organisational alignment on the effectiveness of firms’ sustainability strategic performance measurement systems: an empirical analysis

Sustainability is becoming a mainstream issue for many organisations. A limited number of studies exist, however, on integrating sustainability into daily practices. Indeed, most of the research to date addresses only the definition and motivation for companies’ interest in environmental and social concerns. This paper contributes to the research on integrating sustainability into companies’ daily activities both directly and indirectly. It analyses the extent to which top management’s commitment to sustainability directly affects structural and social alignment and the effectiveness of measurement systems that monitor sustainability strategic performance and indirectly impacts firms’ social and environmental performance. Based on a quantitative analysis of survey responses from 405 large European companies, this paper documents the limited impact of social alignment to firms’ social and environmental performance. More specifically, the results challenge the diffuse belief that the alignment and commitment of middle managers to sustainability strategies as defined by the upper echelons have a relevant impact on the company’s social and environmental performance.     

Extension of internationalisation models: drivers and processes for the globalisation of product development – a comparison of Danish and Chinese engineering firms

This paper develops an extension to established production- and supply chain management focused internationalisation models. It applies explorative case studies in Danish and Chinese engineering firms to discover how the globalisation process of product development differs from Danish and Chinese perspectives. The paper uses internationalisation and global product development theory to explain similarities and differences in the approaches. Grounded in case study results, a new model for internationalisation is proposed. The new model expands the internationalisation process model to include steps of product development and collaborative distributed development beyond sourcing, sales and production elements. The paper then provides propositions for how to further develop the suggested model, and how western companies can learn from the Chinese approaches, and globalise their product development activities from the front end of the value chain rather than from the back-end.     

The stressor–strain relationship in diary studies: A meta-analysis of the within and between levels

Daily diary studies use the same set of measures repeatedly for several days. Within the work stress domain, these studies are able to isolate the effects of daily exposure to stressors within people from the general level of stressors between people. This meta-analysis investigated both content-related and methodological aspects of workplace stressor–strain relationships in diary studies. Results from 55 unique samples (a combined sample size of 5409) indicated that the magnitude of the stressor–strain relationship was stronger at the between-person level than the within-person level. Further, when the stressor was measured prior to the strain (within the same day), the relationship was somewhat stronger than when stressor and strain were measured concurrently. This suggests that stressor–strain effects might take some time to fully manifest. Differences were also detected among types of strains: affective strains had stronger relationship with stressors than behavioural strains. There were also differences in the stressor–strain relationship depending on both the type of strain and the timing of their respective measurement (concurrent versus predictive), suggesting that certain strain responses require more time to manifest. Overall, this meta-analysis elucidates important considerations in the design and interpretation of diary studies on occupational stress.     

The challenge of board composition: Effects of board resource variety and faultlines on the degree of a firm’s international activity

This study explores the relationship between diversity in board composition and the degree of a firm's international activity. Specifically, we posit that board resource variety has a positive relationship with the international activity of the firm and that the strength of board faultlines moderates this relationship. Using data collected from Spanish public companies over the period 2005 to 2010, our analysis shows strong support for our hypotheses. Our work contributes to the literature on board's diversity by demonstrating that board resource variety should be captured by considering “the director profile” rather than any single attribute and that this type of variety can engender subgroups that weakens its benefits. Therefore, our results have implications for the strategic management challenge international firms face when they put together their boards. A corporate board needs to structure itself in such a way as to benefit from the wealth of the variety of its resources, but without succumbing to the risks posed by conflicts between subgroups arising from the presence of faultlines.     

Interface management research in supplier–customer relationships: findings from a citation analysis of international literature

Currently, the terms interface and interface management in the context of interorganisational relationships between suppliers and customers are under intensive discussion. Central issues are the emphasis placed upon the coordination of activities at business interfaces, and the conviction that the concept can make business operations more efficient and thus more effective. That interface management in supplier–customer relationships is discussed in various academic disciplines and characterized by various thematic approaches makes this field complex. Thus the first goal of this article is to investigate the state of interface research, identifying select topics that promise further significant research in the field of interface management in supplier–customer relationships. In addition, based upon a comprehensive citation analysis of 176 journal articles or 4,654 references, the publication development, the important players and the most important academic journals in interface management research in supplier–customer relationships will be briefly presented. Finally, five clusters in interface management research that provide a framework for additional research activities are, based on a co-citation analysis, defined and briefly analysed.     

Business model design–performance relationship under external and internal contingencies: Evidence from SMEs in an emerging economy

We examined Business Model (BM) designs – performance relationship and the moderating effects of firm age and external environment on this relationship. Furthermore, we investigated the impact of simultaneously operating dual BM designs (i.e. novelty and efficiency) on firm performance and contingent effect of firm age on this relationship. Based on data from 241 Indian SMEs, our findings highlighted that BM novelty was of greater benefit to younger SMEs compared to mature SMEs, while BM efficiency was of greater benefit to more mature SMEs. The environmental dynamism positively moderated the relationship between BM novelty and performance but it negatively moderated the relationship between BM efficiency and performance. We also found that BM efficiency is more beneficial in a low, rather than a high, munificent environment but we found environmental munificence did not moderate the BM novelty and SME performance relationship. Finally, we found simultaneous deployment of BM novelty and BM efficiency resulted in an enhancement of performance among mature SMEs compared to younger SMEs. Our study not only adds to the limited literature on BMs in SMEs but also helps practicing managers and entrepreneurs to make informed choices about their BMs.     

How do CEOs matter? The moderating effects of CEO compensation and tenure on equity ownership in international joint ventures

We propose that CEO compensation and tenure moderate the relationship between multinational corporations' (MNCs) R&D intensities and their percentages of equity ownership in international joint ventures (IJVs). Transaction cost economics (TCE) suggests a positive relationship between MNC R&D intensity and IJV equity ownership, but this relationship has not been confirmed consistently in prior research. We examine the moderating effects of CEO compensation and tenure on the relationship between MNC R&D intensity and IJV equity ownership, thereby bringing more nuanced explanations from agency theory and upper echelons theory into the discussion. Our proposed relationships were tested using a sample of 202 IJVs formed between U.S. MNCs and foreign partners in high-tech industries for the period 1993 to 2003. We found an overall positive relationship between MNC R&D intensity and the percentage of equity ownership in IJVs. Moreover, CEO tenure and bonus compensation each weaken the positive R&D intensity-equity ownership relationship in our sample, while CEO stock options compensation amplifies it. These findings indicate that CEO compensation and tenure influence decision making about equity ownership in IJVs, suggesting that scholars and boards of directors should consider these CEO-related factors when evaluating strategic decisions regarding IJVs.     

Outcome favorability in the link between leader–member exchange and organizational citizenship behavior: Procedural fairness climate matters

The study developed an integrated model of the relationship among leader–member exchange (LMX), outcome favorability, procedural fairness climate and employee organizational citizenship behavior (OCB). Using three-phrase multilevel data from multiple sources collected from 238 employees working with 42 supervisors at manufacturing firms in China, we found that (1) LMX was positively related to outcome favorability and OCB, (2) procedural fairness climate moderated the relationship between outcome favorability and OCB, and (3) the indirect effect of LMX on OCB (via outcome favorability) was stronger when procedural fairness climate was high rather than low. The study provides insight on the LMX–OCB relationship and the integration of LMX and fairness research.     

The illusion of independence: Spun-off firms’ risk-taking as a function of status and attachment to the parent firm

This paper examines the post-divestiture behavior of spun-off firms. Drawing on the spin-off literature and middle-status conformity theory, we argue that spun-off firms—as newly independent and publicly traded firms—tend to limit their risk-taking behavior to match the expectations of a crucial audience, i.e., security analysts. Following the logic of middle-status conformity theory, we hypothesize that firms with mid-level status are particularly susceptible to analysts' pressures, whereas high- and low-status firms are free to take greater risks. Crucially, however, we propose that this relationship is less pronounced for spun-off firms that are more attached to their parent firms, as formal and informal linkages between these two types of firms can endure beyond the separation and limit spun-off firms' independence. Using a dataset of 102 spin-off transactions occurring between 1995 and 2010, we find empirical support for a U-shaped relationship between spun-off firms' status and risk-taking. This relationship is attenuated when spun-off firms are more attached to their parents. We contribute to the spin-off literature by demonstrating that a spun-off firm's post-divestiture behavior is determined by the capital market audience's expectations and the attachment to the parent firm. In so doing, we also contribute to the literature on middle-status conformity theory by identifying a boundary condition of the theory. Additionally, we make a methodological contribution by combining ideas from the spin-off and institutional theory literature to develop a particularly comprehensive measure of attachment.     

Entry and exit of makes in the automobile industry, 1895–1960: An international comparison

The historical patterns of the entry and exit of makes in the automobile industries of France, Germany, Great Britain and the United States are examined. The findings, covering over 3000 makes of passenger vehicle, show great similarities in these patterns, despite the substantial inter-country differences in market size, economic conditions and institutional arrangements. The results justify the conclusion that the evolution of basic technologies, as described in a number of theoretical and empirical studies, is the most important force in shaping the long-term development of industries and markets.     

The moderating effects of corporate and national factors on lean projects barriers: a cross‐national study

Abstract

Despite companies’ efforts to develop lean thinking in their industrial context, the implementation of many lean projects has not been consistently successful, often resulting in delay, failure, abandonment or rejection. Whereas some authors emphasised that company characteristics, like the product demand profile, are significant factors in lean projects, other studies analysed the impact of national culture. This paper aims to study the combined effect of various factors related to national culture and company characteristics of lean implementation barriers in order to determine whether the environmental context in which the company operation can affect the outcome of lean project implementation. A survey has been conducted to collect information about companies of various sizes (small–medium–large) in all industry fields. Data from companies, including manufacturing firms, in 23 different countries, were analysed in depth by a combination of Association Rules and Network Analysis. The results show that some national culture dimensions, such as Performance Orientation and Gender Egalitarianism, influence lean management success and help to maintain a lean culture. Maintaining a lean culture is even more critical than developing it. Furthermore, if the implementation of lean practices is an arduous task for large organisations, it becomes even greater for SMEs. Other cultural factors of individuals such as Uncertainty Avoidance, Future Orientation and Institutional Collectivism also help to support a lean culture and overcome human and cultural barriers.     

How to beat early movers: The role of competitive strategy and industry dynamism on followers’ performance in the telecommunications industry

The idea of first-mover advantages is frequently used by both managers and academics alike. Despite its importance for understanding the performance of entry in new markets, the evidence remains mixed. Our study advances research on the entry timing-performance relationship by adopting a contingency perspective that includes both micro (competitive strategies) and macro (industry dynamics) dimensions to explain differences in entrants' profitability. In this paper we focus on follower firms and propose that cost leadership is the best strategy for them to successfully entering a market. In addition, recognizing the contingency effect of industry dynamism, we also examine how market growth and technology evolution affect the effectiveness of followers’ competitive strategies. Specifically, we propose that followers will be better off by using cost strategies in growing markets, while when operating in contexts of technological change the performance of the cost leadership strategy will be lower.     

Bridging the Gap? The Role of Regional Governance in Delivering Effective Local Public Services: Evidence from England

Between 2004 and 2010 local area agreements (LAAs) represented a key part of the New Labour Government's agenda for local government in England, which centred on increasing the level of involvement that local areas had in the issues affecting them. To deliver this agenda, New Labour deployed government offices for the regions (GOR) to negotiate with localities on behalf of central government. As part of a broader consideration of the role of regional governance structures in delivering local public services, this paper draws upon the results of a national survey of LAA practitioners in England, and findings from more detailed case study work, to consider the role of GOR in the LAA process. These findings examine the role GOR played in negotiating LAA targets and the extent to which these negotiations allowed local areas to respond to local issues and priorities. Then, by considering local enterprise partnerships and the recently established combined authorities, the paper will consider how localism policy under the Conservative–Liberal Democrat Coalition government, who came to power in 2010, has responded to the lessons of the LAA. In doing so, the paper seeks to fit into the wider discussion about how local public services can be delivered effectively and draw out the challenges faced by those trying to link local and central policy together.     

The moderating role of leader and follower sex in dyads on the leadership behavior–leader effectiveness relationships

Transformational leadership (TL) and leader–member exchange (LMX) literatures provide theoretical frameworks and accompanying empirical evidence for studying the relationship between leader behavior and effectiveness. Although prior attention has been given to gender differences in leadership style and leader effectiveness, the moderating effects of the sex of the leader and subordinate on the leadership–leader effectiveness relationship have not been investigated. In a field study of employees from a manufacturing plant, we examined whether leader and subordinate sex, and the sex composition of the leader–subordinate dyad, moderated the linkages of each set of leader behaviors (i.e., TL and LMX) with actual evaluations of leader effectiveness provided by the leader's subordinates and direct supervisor. Although female leaders were rated as more effective than male leaders overall, a fine-grained analysis of leader–subordinate dyads revealed that the male leaders benefited more than the female leaders from the use of transformational leadership in the leader behavior–leader effectiveness relationship. Implications and future research directions are discussed.     

The relationship between safety–production conflict and employee safety outcomes: Testing the impact of multiple organizational climates

Safety research is understandably dominated by studies examining the impact of organizational safety climate. Yet, other climates (e.g. service climate; productivity climate) that may also influence safety-related outcomes are rarely concurrently studied. Consequently, questions regarding how different organizational climates simultaneously affect employee safety attitudes and behaviours largely remain unanswered. Multilevel data collected from public transit employees indicated that safety–production conflict (SPC) was negatively related to accident-reporting attitudes and behavioural safety compliance. As expected, among employees in workgroups exhibiting a positive safety climate, the negative effect of SPC on behavioural safety compliance was attenuated. Moreover, a positive customer service climate reduced the negative effects of SPC on reporting attitudes; on the other hand, this relationship was exacerbated among workgroups with a high-productivity climate (i.e. those emphasizing on-time performance). The need for considering multiple aspects of an organizational climate is discussed in light of these results.     

7 Getting There from Here: Research on the Effects of Work–Family Initiatives on Work–Family Conflict and Business Outcomes

Abstract

Many employing organizations have adopted work–family policies, programs, and benefits. Yet managers in employing organizations simply do not know what organizational initiatives actually reduce work–family conflict and how these changes are likely to impact employees and the organization. We examine scholarship that addresses two broad questions: first, do work–family initiatives reduce employees’ work–family conflict and/or improve work–family enrichment? Second, does reduced work–family conflict improve employees’ work outcomes and, especially, business outcomes at the organizational level? We review over 150 peer‐reviewed studies from a number of disciplines in order to summarize this rich literature and identify promising avenues for research and conceptualization. We propose a research agenda based on four primary conclusions: the need for more multi‐level research, the necessity of an interdisciplinary approach, the benefits of longitudinal studies that employ quasi‐experimental or experimental designs and the challenges of translating research into practice in effective ways.