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Full-Text Articles in Business

Market Orientation, Embeddedness And The Autonomy And Performance Of Multinational Subsidiaries In An Emerging Economy, Xiaoying Li, Xiaming Liu, Howard Thomas Dec 2013

Market Orientation, Embeddedness And The Autonomy And Performance Of Multinational Subsidiaries In An Emerging Economy, Xiaoying Li, Xiaming Liu, Howard Thomas

Research Collection Lee Kong Chian School Of Business

This paper develops a conceptual framework for market orientation, embeddedness, autonomy and performance of multinational subsidiaries in an emerging economy. We argue that internal and external embeddedness has different performance implications for export- and local market-oriented multinational subsidiaries. Our results, based on a sample of 233 multinational subsidiaries from China, indicate that while external embeddedness has a positive impact on specialized resources of both types of subsidiary, such resources only positively affect the performance of local market-oriented subsidiaries. By contrast, internal embeddedness has a negative impact on specialized resources of both types of subsidiary. Managerial and policy implications are discussed.


Contrasting Perspectives On China's Rare Earths Policies: Reframing The Debate Through A Stakeholder Lens, Leslie Hayes-Labruto, Simon J.D. Schillebeeckx, Mark Workman, Nilay Shah Dec 2013

Contrasting Perspectives On China's Rare Earths Policies: Reframing The Debate Through A Stakeholder Lens, Leslie Hayes-Labruto, Simon J.D. Schillebeeckx, Mark Workman, Nilay Shah

Research Collection Lee Kong Chian School Of Business

This article critically compares China's rare earth policy with perspectives upheld in the rest of the world (ROW). We introduce rare earth elements and their importance for energy and present how China and the ROW are framing the policy debate. We find strongly dissonant views with regards to motives for foreign direct investment, China's two-tiered pricing structure and its questionable innovation potential. Using the metaphor of "China Inc.", we compare the Chinese government to a socially responsible corporation that aims to balance the needs of its internal stakeholders with the demands from a resource-dependent world. We find that China's internal …


The Effects Of Ceo Trustworthiness On Directors' Monitoring And Resource Provision, Esther B. Del Brio, Toru Yoshikawa, Catherine E. Connelly, Wee Liang Tan Nov 2013

The Effects Of Ceo Trustworthiness On Directors' Monitoring And Resource Provision, Esther B. Del Brio, Toru Yoshikawa, Catherine E. Connelly, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

Because of the importance of board members’ resource provision and monitoring, a substantial body of research has been devoted to ascertaining how directors can be incented to perform their responsibilities. We use social exchange theory to empirically examine how board members’ resource provision and monitoring are affected by their perceptions of the CEOs’ trustworthiness. Our findings suggest that board members’ perceptions of the CEO’s ability, benevolence, and integrity have different effects on the board members’ resource provision and monitoring. Our results further suggest that board members’ governance behaviors are moderated by the board’s performance evaluation practices.


Shoot For The Stars? Predicting The Recruitment Of Prestigious Directors At Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock Oct 2013

Shoot For The Stars? Predicting The Recruitment Of Prestigious Directors At Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock

Research Collection Lee Kong Chian School Of Business

This study explores how CEOs' and outside directors' desires for the benefits of signaling and homophily intertwine with their concerns over maintaining power and preserving local status hierarchies to affect the likelihood a firm recruits prestigious outside directors to its board. Using pooled cross-sectional data on the five years following the IPOs of 210 firms that went public between 2001 and 2004, we found that prestigious CEOs and directors viewed the recruitment of prestigious new directors differently, and that these perceptions were moderated by factors that increase the salience of risk of the potential losses to the CEO and existing …


Cui Bono? The Selective Revealing Of Knowledge And Its Implications For Innovative Activity, Oliver Alexy, Gerard George, Ammon J. Salter Sep 2013

Cui Bono? The Selective Revealing Of Knowledge And Its Implications For Innovative Activity, Oliver Alexy, Gerard George, Ammon J. Salter

Research Collection Lee Kong Chian School Of Business

Current theories of how organizations harness knowledge for innovative activity cannot convincingly explain emergent practices whereby firms selectively reveal knowledge to their advantage. We conceive of selective revealing as a strategic mechanism to reshape the collaborative behavior of other actors in a firm's innovation ecosystem. We propose that selective revealing may provide an effective alternative to known collaboration mechanisms, particularly under conditions of high partner uncertainty, high coordination costs, and unwilling potential collaborators. We specify conditions when firms are more likely to reveal knowledge and highlight some boundary conditions for competitor reciprocity. We elaborate on strategies that allow firms to …


How Capital Structure Influences Diversification Performance: A Transaction Cost Perspective, Jonathan O'Brien, Parthiban David, Toru Yoshikawa, Andrew Delios Jul 2013

How Capital Structure Influences Diversification Performance: A Transaction Cost Perspective, Jonathan O'Brien, Parthiban David, Toru Yoshikawa, Andrew Delios

Research Collection Lee Kong Chian School Of Business

Extant theories agree that debt should inhibit diversification, but predict opposing performance consequences. While agency theory predicts that debt should lead to higher performance for diversifying firms, transaction cost economics (TCE) predicts that more debt will lead to lower performance for firms expanding into new markets. Our empirical tests on a large sample of Japanese firms support TCE by showing that firms accrue higher returns from leveraging their resources and capabilities into new markets when managers are shielded from the rigors of the market governance of debt, particularly bond debt. Furthermore, we find that the detrimental effects of debt are …


Exploring Family Features In Non-Family Organizations: The Family Metaphor And Its Behavioral Manifestations, Nava Michael-Tsabari, Wee Liang Tan Jul 2013

Exploring Family Features In Non-Family Organizations: The Family Metaphor And Its Behavioral Manifestations, Nava Michael-Tsabari, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

In this study, we explore the possibility of reproducing family business characteristics in the professional context of a non-family organization and analyze the behavioral manifestations of this application. Drawing upon discussions in the family therapy, organizational behavior and family business literatures, we identify cohesion and flexibility as the two primary dimensions of the family metaphor. We build on illustrative cases of three sports teams to explore these dimensions in a non-family business setting. Our exploratory analysis of these cases reveals the existence of family features and extends our understanding of these features beyond family businesses.


Corporate Elite Networks And Their Effects On Board Performance, Daniel Braun, Jana Oehmichen, Michael Wolff, Toru Yoshikawa Jul 2013

Corporate Elite Networks And Their Effects On Board Performance, Daniel Braun, Jana Oehmichen, Michael Wolff, Toru Yoshikawa

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Collaborative Benefits And Coordination Costs: Learning And Capability Development In Science, M. Onal Vural, Linus Dahlander, Gerard George Jun 2013

Collaborative Benefits And Coordination Costs: Learning And Capability Development In Science, M. Onal Vural, Linus Dahlander, Gerard George

Research Collection Lee Kong Chian School Of Business

We examine the effects of team structure and experience on the impact of inventions produced by scientific teams. Whereas multidisciplinary, collaborative teams have become the norm in scientific production, there are coordination costs commensurate with managing such teams. We use patent citation analysis to examine the effect of prior collaboration and patenting experience on invention impact of 282 patents granted in human embryonic stem cell (hESC) research from 1998 to 2010. Our results reveal that team experience outside the domain may be detrimental to project performance in a setting where the underlying knowledge changes. In stem cell science, we show …


Design Capital And Design Moves: The Logic Of Digital Business Strategy, C. Jason Woodard, Narayan Ramasubbu, F. Ted Tschang, V. Sambamurthy Jun 2013

Design Capital And Design Moves: The Logic Of Digital Business Strategy, C. Jason Woodard, Narayan Ramasubbu, F. Ted Tschang, V. Sambamurthy

Research Collection Lee Kong Chian School Of Business

As information technology becomes integral to the products and services in a growing range of industries, there has been a corresponding surge of interest in understanding how firms can effectively formulate and execute digital business strategies. This fusion of IT within the business environment gives rise to a strategic tension between investing in digital artifacts for long-term value creation and exploiting them for short-term value appropriation. Further, relentless innovation and competitive pressures dictate that firms continually adapt these artifacts to changing market and technological conditions, but sustained profitability requires scalable architectures that can serve a large customer base and stable …


Which Board Interlocks Matter? The Impact Of Managerial Power, Legitimacy, And Family Power On The Adoption Of Stock Option Pay, Toru Yoshikawa, Jung Wook Shim, A. Tuschke Jun 2013

Which Board Interlocks Matter? The Impact Of Managerial Power, Legitimacy, And Family Power On The Adoption Of Stock Option Pay, Toru Yoshikawa, Jung Wook Shim, A. Tuschke

Research Collection Lee Kong Chian School Of Business

Inter-organizational relationships and the networks they create are an important mechanism for the transfer of knowledge and learning. Network ties enable the transfer of experiential knowledge – for instance of vicarious information through board interlocks. While we know that organizational learning occurs and is influenced by factors like the strength of ties and a firm’s position in the network, it is still unclear what causes the firm to act on the information gained through network ties. We build on prior studies on the impact of interlocking board ties ion the adoption of new practices and analyze the effects of different …


Getting What You Need: How Reputation And Status Affect Team Performance, Hiring, And Salaries In The Nba, Gokhan Ertug, Fabrizio Castellucci Apr 2013

Getting What You Need: How Reputation And Status Affect Team Performance, Hiring, And Salaries In The Nba, Gokhan Ertug, Fabrizio Castellucci

Research Collection Lee Kong Chian School Of Business

We study how the reputation and status of resource providers affect the two organizational outcomes of product quality and revenues, hiring decisions, and prices paid to resource providers. We argue that reputation and status have different effects on outcomes: reputation has a stronger effect on product quality, and status has a stronger effect on revenues. Building on this, we argue that actual quality mediates the effect of reputation on revenues more than the effect of status on revenues. Moreover, reputation and status have different effects on how organizations acquire resources: when their product quality is low relative to their aspiration …


Bridging The Mutual Knowledge Gap: Coordination And The Commercialization Of University Science, Reddi Kotha, Gerard George, Kannan Srikanth Apr 2013

Bridging The Mutual Knowledge Gap: Coordination And The Commercialization Of University Science, Reddi Kotha, Gerard George, Kannan Srikanth

Research Collection Lee Kong Chian School Of Business

We examine why commercialization of interdisciplinary research, especially from distant scientific domains, is different from commercialization of inventions from specialized or proximate domains. We argue that anticipated coordination costs arising from the need to transfer technology to licensee firms and from the need for an inventor team's members to work together to further develop a technology significantly impact commercialization outcomes. We use a sample of 3,776 university invention disclosures to test whether variation in the types of experience of the scientists on a team influences the likelihood that an invention will be licensed. We proffer evidence to support our hypotheses …


Team Innovation Processes: An Examination Of Activity Cycles In Creative Project Teams, Kenneth T. Goh, Paul S. Goodman, Laurie R. Weingart Apr 2013

Team Innovation Processes: An Examination Of Activity Cycles In Creative Project Teams, Kenneth T. Goh, Paul S. Goodman, Laurie R. Weingart

Research Collection Lee Kong Chian School Of Business

This study investigates cycles of planning, enacting, and reviewing activities over time in teams engaged in creative projects. Drawing on longitudinal case studies of two interactive media development teams, two distinct cycles of planning, enacting, and reviewing activities are identified: experimentation cycles and validation cycles. Experimentation cycles are discovery-oriented processes where teams gather insights into project requirements, constraints, and design specifications through trial-and-error. Validation cycles are correction-oriented processes where teams align their output with project requirements through incremental modifications. These findings are then built on to develop testable propositions about the relationship between the duration of planning, enacting, and reviewing …


Trust Between International Joint Venture Partners: Effects Of Home Countries, Gokhan Ertug, Ilya Cuypers, Niels G. Noorderhaven, Ben M. Bensaou Apr 2013

Trust Between International Joint Venture Partners: Effects Of Home Countries, Gokhan Ertug, Ilya Cuypers, Niels G. Noorderhaven, Ben M. Bensaou

Research Collection Lee Kong Chian School Of Business

Trust is an important factor in interorganizational relations. Interorganizational trust in cross-border relationships is likely to be influenced by the home countries of both partners. Using data on 165 international joint ventures (IJVs), we show that the perceived trustworthiness of an IJV partner is influenced by the general propensity to trust in the trustor's home country. Moreover, the trustworthiness perceived by a focal parent firm is also affected by the home country of the other IJV partner. This second effect is mitigated by experience between the partners.


Category Divergence, Straddling, And Currency: Open Innovation And The Legitimation Of Illegitimate Categories, Oliver Alexy, Gerard George Mar 2013

Category Divergence, Straddling, And Currency: Open Innovation And The Legitimation Of Illegitimate Categories, Oliver Alexy, Gerard George

Research Collection Lee Kong Chian School Of Business

The organizational literature is increasingly interested in the origins and consequences of category emergence. We examine the effects of being affiliated with categories initially considered illegitimate (‘divergence’), and of organizational attempts to blur the boundaries between categories (‘straddling’), on capital market reactions to firm announcements. We develop arguments for how these effects likely vary with increasing legitimation (‘currency’) of the category. We apply event study methodology to the complete population of firms' announcements of open source activities, an open innovation model for software development that is novel and defies the extant dominant logic of software production and valorization. Over a …


Managing A Global Partnership Model: Lessons From The Boeing 787 'Dreamliner' Program, Suresh Kotha, Kannan Srikanth Feb 2013

Managing A Global Partnership Model: Lessons From The Boeing 787 'Dreamliner' Program, Suresh Kotha, Kannan Srikanth

Research Collection Lee Kong Chian School Of Business

Little research has examined the integration challenges in globally disaggregated value chains in a complex NPD effort or the tools managers use to overcome such challenges. Drawing on Boeing's 787 program, we highlight integration challenges Boeing faced and how it addressed them through recourse to partial co-location, establishing a centralized integration support center, reintegrating some activities performed by suppliers, and using its bargaining power to facilitate changes. The integration tools Boeing employed were geared toward two primary objectives: (1) gaining increased visibility of actions and visibility of knowledge networks across partner firms; and (2) motivating partners to take actions to …


A New Look At The Corporate Social-Financial Performance Relationship: The Moderating Roles Of Temporal And Inter-Domain Consistency In Corporate Social Performance, Heli Wang, Jaepil Choi Feb 2013

A New Look At The Corporate Social-Financial Performance Relationship: The Moderating Roles Of Temporal And Inter-Domain Consistency In Corporate Social Performance, Heli Wang, Jaepil Choi

Research Collection Lee Kong Chian School Of Business

The authors develop the argument that the establishment of good stakeholder relations is influenced not only by a firm’s having a high level of corporate social performance but also by its ability to deliver consistent social performance. Therefore, both level and consistency in corporate social performance should have significant financial implications. More specifically, the authors suggest that level and two types of consistency in corporate social performance—temporal consistency and interdomain consistency—interact positively to influence a firm’s financial performance. Using a sample of 622 firms and 2,365 firm-year observations based on the Kinder, Lydenberg, Domini, & Co. data, the authors found …


Arrow-Fisher-Hanemann-Henry And Dixit-Pindyck Option Values Under Strategic Interactions, Tomoki Fujii, Ryuichiro Ishikawa Jan 2013

Arrow-Fisher-Hanemann-Henry And Dixit-Pindyck Option Values Under Strategic Interactions, Tomoki Fujii, Ryuichiro Ishikawa

Research Collection School Of Economics

We extend the Arrow–Fisher–Hanemann–Henry (AFHH) and Dixit–Pindyck (DP) option values to a game situation. By reinterpreting the AFHH option value as a change in the surplus from conservation because of the prospect of future information, we deal with a conceptual difficulty associated with the AFHH option value in the presence of strategic interactions. We then introduce the DP option value into a game situation. We show that the equivalence between the expected value of information and the DP option value in the standard model does not hold under strategic interactions.