Business Commons^™

Making Energy Metrics Relevant To Service Firms: From Energy Conservation To Energy Productivity, Randle D. Raggio, Peter Ekman, Steve Thompson

Marketing Faculty Publications

Although energy conservation and reduction in environmental impact are on the international and most national agendas, service firms rarely include energy consumption metrics in their strategic decision-making. One reason for the omission is that for service industries, firm level energy utilization is most commonly measured in kilowatt hours per square meter of office space where changes often related to the space rather than the firm performance. The measure also presents several problems for firms in service industries. First, energy conservation and reduction may be counterproductive for service firms that are growing and require energy to sustain that growth. Second, it …

The Liability Of Disruption, Valentina Marano, Stephen Tallman, Hildy J. Teegan

Management Faculty Publications

Research summary. We study the internationalization-related legitimacy challenges of firms with disruptive business models by using a case comparison of leading sharing economy companies Airbnb and Uber. We show that they are insulated from many traditional legitimacy challenges to multinationals entering host markets, but exposed to others that have not been noted previously. Specifically, we identify a novel market-entry legitimacy challenge, ‘liability of disruption,’ which manifests as regulatory, incumbent business and societal pushback against firms with disruptive business models. After presenting our cross-case analysis, we theorize about the nature and impacts of these three distinct but interconnected forms of host …

Human Capital Is Not Enough: How Offshore Bpo Professionals Use Social Support To Deal With Strenuous Work Conditions, Jonathan W. Whitaker, Violet Ho, Sunil Mithas, Dongwon Lee

Management Faculty Publications

The past decade has witnessed explosive growth in the segment of information technology (IT) professionals who work in the offshore business process outsourcing (BPO) industry. BPO positions are highly regimented and standardized with coercive and normative controls to deter employees from deviating from prescribed work procedures and exercising independent judgment. Coping with these challenges requires a different set of skills than human capital and technical competencies that are discussed in most prior information systems (IS) research. This paper develops theory on the role of social support in employee compensation, and tests the theory using a unique data set of 8,000+ …

Dynamics Of Country Image: Evidence From Malaysia, Dana-Nicoleta Lascu, Zafar U. Ahmed, Irfan Ahmed, Tan Hui Min

International Business Faculty Publications

Purpose – Previous research has posited country image to operate at two levels: the country’s macro image, based on general politico-economic descriptors of the country, and the country’s micro image, based on perceptions of products from the country. The purpose of this paper is to further explore this premise in a practical study, using a psychometric assessment of macro and micro country images by ascertaining the nature of differences in macro and micro images of leading exporters, the USA and China, for consumers in Malaysia, a top import destination of US and Chinese goods; the images of Malaysian goods were …

Digital Transformation Of Global Business Processes: The Role Of Dual Embeddedness, Peter Ekman, Peter Thilenius, Steven M. Thompson, Jonathan W. Whitaker

Management Faculty Publications

While much existing research on MNC digital transformation has followed a linear design and implementation logic using cross-sectional data, the multiple and divergent needs of headquarters (HQ) and subsidiaries suggest that MNC digital transformation actually involves a more iterative journey. In this paper, we apply the theoretical perspective of embeddedness to better define the complexities of MNC digital transformation, and identify how HQ and subsidiaries can navigate the complexities. This paper presents a longitudinal multi-case study of five Forbes Global 2000 firms that are HQ in Europe with large subsidiaries in the U.S. We find that the process of digital …

Influence Of Country And Company Characteristics On International Business Decisions: A Review, Conceptual Model, And Propositions, Kotler Philip, Lalita A. Manrai, Dana-Nicoleta Lascu, Ajay K. Manrai

Marketing Faculty Publications

This research advances four propositions and a conceptual model of country and company characteristics influencing key International Business Decisions (IBDs). The IBDs in this study are country selection and evaluation, entry mode, segmentation-targeting-positioning, and the marketing mix – the first two in the international business domain, and the latter two in the international marketing field. The conceptual model and related four propositions are advanced, based on an extensive literature review and subsequent in-depth review of 169 published research papers on major IBDs and their determinants, namely, country characteristics, including opportunities, risks, and various distances between the host country and home …

Business Models In Global Competition, Stephen Tallman, Yadong Luo, Peter J. Buckley

Management Faculty Publications

Multinational enterprises create and capture value through appropriate business models that fit both distinctive capabilities and dynamic markets. The key elements of a global business model include propositions for adding customer value and capturing a share of that value, methods to control, deploy and utilize critical resources, and integrated processes that deliver value to target global customers. These factors explain the diversity in business models, with international competition in geographically dispersed markets further fortifying this diversity and complexity. This paper demonstrates ways forward in theorizing about business models, applying these models in the global context, discussing capabilities and strategies necessary …

How Client Capabilities, Vendor Configuration And Location Impact Bpo Outcomes, Jonathan W. Whitaker, Sanjeev Kumar, M. S. Krishnan

Management Faculty Publications

Despite the increasing use of onshore and offshore business process outsourcing (BPO), a comprehensive literature review [38] finds that there has been limited empirical research on BPO outcomes. This article responds to the call for research by developing and testing a conceptual model for BPO outcomes using data from 50 firms publicly traded in the U.S., including 38 firms in the Forbes Global 2000. We find that client firm capabilities, vendor configuration, and country location lead to interesting tradeoffs in the BPO quality, cost, and time outcomes. For example, while multi-sourcing offers advantages such as risk mitigation, client firms encounter …

How Multinational Corporations Use Information Technology To Manage Global Operations, Jonathan W. Whitaker, Peter Ekman, Steven M. Thompson

Management Faculty Publications

Despite a generally-acknowledged importance of information technology (IT) in enabling global strategy and a broad understanding of the manner in which IT enhances coordination and reduces cost, few studies have focused precisely on how multinational corporations (MNCs) use IT to facilitate globalization. To address this gap in the literature, we conduct a case study across four large MNCs, and use primary data to develop theoretical propositions on the characteristics of products, processes and customers that impact the ways in which MNCs use IT to manage their global operations.

Investcorp, Jeremy Kappes, Haynes King, Jamie Mattioli, Prasad Vaze, Timothy Kyle Benusa, Sam Gottwald, Thomas Arnold, Jeffrey S. Harrison

Robins Case Network

Investcorp is a publicly traded global alternative asset management company headquartered in Manama, Bahrain. It manages a huge hedge fund, along with other assets. The case describes Investcorp’s history, investment strategies, and major competitors. The company has a highly aggressive growth strategy, but it is also facing the retirement of its CEO.

Salesforce.Com, Sean Bielawski, Charles Kempe, Austin Mcdaniel, Adam Tate, Jeffrey S. Harrison

Robins Case Network

Innovation! One of the most innovative companies, and also one of the best companies to work for, is losing money. This case traces the meteoric rise of the number one customer relationship management service provider against huge rivals such as Microsoft and Oracle. Detail regarding their highly innovative Scrum system is provided, along with detail regarding their marketing approach. How can Salesforce.com regain profitability while continuing to grow in a highly competitive industry?

Ryanair Holdings, Nicole Blake Tran, Jamie Perkinson, Caron Sinnenberg, Lionel Tarcia, Jeffrey S. Harrison

Robins Case Network

The crass Irish CEO of Ryanair presides over a modern miracle. Ryanair, with its ridiculously low prices and poor reputation for service, has become one of Europe’s largest and most successful airlines. Employees pay for their own training, flights are cancelled if they won’t be full enough to be profitable, and the concept of “no frills” is heartily embraced. However, some new competitors have come on the scene, and Ryanair may be forced to improve its service and reputation to keep up.

The Effects Of Offshoring On Judgment Quality In A Management Accounting Task, Daniel D. Selby

Accounting Faculty Publications

This study investigates the effects of offshoring on judgment quality in a management accounting context (i.e., capital budgeting). The effects of offshoring on judgment quality are understudied and might explain the ineffective and inefficient use of information in offshoring arrangements (Srikanth and Puranam, 2011). A 3x2 between-subject experiment was conducted where participants were assigned to one of three experimental conditions: onshore team, offshore team, or no team. Two dependent variables were measured for judgment quality: effectiveness and efficiency. My results suggest that offshoring may have detrimental effects on efficiency. However, I also find that offshoring does not affect effectiveness.

Safaricom: Innovative Telecom Solutions To Empower Kenyans, Laura Beauchesne, Nick Dorion, Nathaniel Griggs, Jeffrey S. Harrison

Robins Case Network

Safaricom is thriving by selling what many would consider a luxury product in an impoverished country. Africa is a vast market for telecommunications, and Kenya is the third largest mobile market. It is also one of the fastest growing economies in the region. This case contains a fascinating perspective on Kenya, and on the range of services Safaricom provides to its citizens. It also contains excellent detail on Safaricom’s business and philanthropic strategies.

How Large Are The Benefits Of Emerging Market Equities?, C. Mitchell Conover, Gerald R. Jensen, Robert R. Johnson

Finance Faculty Publications

We perform a comprehensive evaluation of the benefits of emerging market equities by extending previous research in four fundamental ways. The contribution of this study is that it 1) evaluates a more complete sample; 2) examines performance measures that account for asymmetric return distributions; 3) separates emerging markets by region; and 4) considers the influence that the market environment has on the benefits of emerging market investments. Our results suggest that previous research has understated the benefits associated with investing in emerging markets. We find that broad emerging market indices have relatively low downside risk, which results in Sortino ratios …

Industry-Specific Human Capital And Wages: Evidence From The Business Process Outsourcing Industry, Keongtae Kim, Sunil Mithas, Jonathan W. Whitaker, Prasanto K. Roy

Management Faculty Publications

Human capital is becoming more critical as the global economy becomes more information intensive and service intensive. While IS researchers have studied some dimensions of human capital, the role of industry-specific human capital has remained understudied. The IT-enabled business process outsourcing (BPO) industry provides an ideal setting to study returns to human capital, because jobs in this industry are standardized and many professionals in this new industry have come from other industries. We build on IS and Economics literature to theorize returns to human capital in the BPO industry, and we test the theory using data for over 2,500 BPO …

India - Censorship For A Good Cause?, Judith Schrempf-Stirling

Robins Case Network

Information technology (IT) companies face significant censorship challenges in countries such as China and India. This case deals with the ethical issues associated with government censorship, and specifically whether corporations that comply with such censorship are complicit in violating basic human rights. The context is India, and the case provides a summary of relevant cultural and legal issues in this very turbulent country.

Slavery Is Bad For Business: Analyzing The Impact Of Slavery On National Economies, Monti Narayan Datta, Kevin Bales

Political Science Faculty Publications

This article, using a novel dataset, demonstrates that slavery is empirically bad for business. Building upon the work of Robert Smith, the authors analysis examines the relationship between the prevalence of slavery in a country (in terms of the proportion of the population enslaved) and several economic measures (the United Nations Human Development Index, growth domestic product in terms of purchasing power parity, access to financial services, and the Gini coefficient). In each instance, controlling for alternative explanations, greater levels of slavery are associated with a decline in economic growth and human development. The findings imply that beyond the morality …

The Search For Externally Sourced Knowledge: Clusters And Alliances, Stephen Tallman

Management Faculty Publications

External sources of knowledge have become more important to firms as they have dispersed their value-adding operations around the globe and outsourced them to alliances. The global network firm has access to a rich store of external knowledge – but what do we know about accessing this treasure trove? The purpose of this paper is to summarize key ideas behind the research on alliance networks with clusters to better understand when, how, and why firms would use one or the other, or both, approaches to accessing external sources of knowledge, and to suggest new directions for both practice and scholarship.

Sony Corporation: Reinventing Itself To Rediscover The Technological Edge, Chatterji Dheeman, Hayes Schildwachter, Jeffrey S. Harrison

Robins Case Network

Sony is a global conglomerate with a wide variety of businesses in its portfolio, but a heavy emphasis on electronics and related products. Due to a number of setbacks such as the earthquake in Japan and a weak global economy, the firm has experienced sales declines and negative earnings in recent years. In early 2012 the company announced a major restructuring and new strategy to regain its edge. However, Sony has an uphill battle.

The Walt Disney Company: A Corporate Strategy Analysis, Carlos Carillo, Jeremy Crumley, Kendree Thieringer, Jeffrey S. Harrison

Robins Case Network

Walt Disney is a completely integrated media powerhouse. Films provide material for theme parks and resorts, consumer products, and even a cruise ship. Network and cable broadcasting is also a part of the integrated Disney package. None of Disney’s competitors are as successfully integrated. Still, in spite of a long record of success, Disney is facing more competition on many fronts and, like other media and entertainment companies, must continue to adapt to a changing technological and social environment.

Nestle, Annie Stevens, Dustin Fosness, Josh Katz, Jeffrey S. Harrison

Robins Case Network

Nestlé has a worldwide presence in the food industry. In spite of its market strength associated with its well-known brands, the company has been experiencing declining overall sales for several years. This case describes Nestlé’s diversification strategy and business portfolio in depth, as well as its industry and major competitors. Solving the company’s problems is challenging because of complexity and dependence on so many external factors.

Identifying Resources For Going Global, Stephen Tallman

Management Faculty Publications

Business firms have been described as bundles of resources and capabilities (or assets and skills, or a variety of other terms indicating a combination of hard, or at least clearly identifiable, components and soft, or at least somewhat undefined, abilities and processes), bound together by ownership, contracts, common management, organizational culture, identity, and a variety of other processes. This chapter focuses on resources and capabilities, and considers how such component parts can enhance or discourage globalization, and how the firm's stock of resources and capabilities is altered by processes of globalization.

The Strategic Assembly Of Global Firms: A Micro-Structural Analysis Of Local Learning And Global Adaptation, Mitchell P. Koza, Stephen Tallman, Aylin Ataay

Management Faculty Publications

Strategic Assembly - the comprehensive and coordinated use of internal development, mergers, acquisitions, joint ventures, and alliances - is a novel approach to the construction and management of global firms. This paper describes the role and characteristics of strategic assembly in the construction and management of the Global Multi-Business Firm, an emerging form of global organization. We present a study of Group Renault and its relationship with two key players in the lucrative and emerging market for autos in Turkey, emphasizing the coevolutionary processes through which local players enter and dominate a local market and the global parent, utilizing local …

Offshoring, Outsourcing, And Strategy In The Global Firm, Stephen Tallman

Management Faculty Publications

Offshore outsourcing of many of the activities of the firm has become a major issue of concern in welfare economics, politics, business management, and international business scholarship. From both practical and scholarly perspectives, though, we must recognize that this is not a new phenomenon, and that neither outsourcing nor offshoring is necessarily the problem that has been represented in the popular and scholarly press (Contractor et al., 2010: Engardio, 2006). The production of goods in locations other than those in which they are sold has been an established strategy of multinational firms for decades--as has the subset of situations in …

Organizational Learning And Capabilities For Onshore And Offshore Business Process Outsourcing, Jonathan W. Whitaker, Sunil Mithas, M. S. Krishnan

Management Faculty Publications

This paper identifies and analyzes firm-level characteristics that facilitate onshore and offshore business process outsourcing (BPO). We use organizational learning and capabilities to develop a conceptual model. We test the conceptual model with archival data on a broad cross section of U. S. firms. Our empirical findings indicate that firms with experience in onshore information technology (IT) outsourcing and capabilities related to IT coordination applications and process codification are more likely to engage in BPO, and firms with experience in internationalization are more likely to engage in offshore BPO. We also find that IT coordination applications have a greater impact …

Global Diffusion Of The Internet Xvi: The Role Of Economic Development And Firm Internationalization In Internet Business Practices, Jonathan W. Whitaker, Nigel Melville, Robert Plice, Jason Dedrick

Management Faculty Publications

Firms from emerging economies are rapidly becoming formidable competitors to established industry leaders from developed economies. Aside from anecdotal reports, there is little scholarly evidence concerning the operational details of how emerging economy firms are becoming competitive with developed economy firms. This article addresses the gap by building on the International Business, Strategy and Information Systems literature, and through an empirical analysis of original survey data for 468 firms across ten countries. We develop three primary empirical findings. First, despite the differences between emerging economy firms and developed economy firms, we find that emerging economy/high internationalization firms use marketing- and …

The Shifting Geography Of Competitive Advantage: Clusters, Networks And Firms, Mark Jenkins, Stephen Tallman

Management Faculty Publications

We consider the dynamics of knowledge-based sources of advantage as they move between geographical locations and multinational and other firm level networks using the specialist context of Formula 1 motor over a fifty nine year period. We suggest that shifts in competitive advantage are underpinned by the movement of both architectural and component knowledge at both the firm and cluster level, and in particular we suggest that isolated firms can both benefit from and add to cluster level knowledge. We conclude by suggesting ways in which MNEs can adapt their approach to both location and knowledge development in order to …

Chinese Gaap And Ifrs: An Analysis Of The Convergence Process, Songlan Peng, Joyce Van Der Van Der Laan Smith

Accounting Faculty Publications

In this study, we examine the process of convergence through a longitudinal analysis (1992–2006) of the convergence of Chinese GAAP with IFRS from the perspective of process theory. We find that significant steps toward convergence occurred through the issuance of four successive Chinese GAAPs: 1992, 1998, 2001, and 2006. Convergence occurred both through the direct import of standards from IFRS and progressive changes to Chinese GAAP. Direct import was observed for items either reflective of traditional Chinese accounting practice or ones that addressed situations not considered or not relevant under the pre- vious accounting model. Progressive changes to Chinese GAAP …

Does Convergence Of Accounting Standards Lead To The Convergence Of Accounting Practices? A Study From China, Songlan Peng, Rasoul H. Tondkar, Joyce Van Der Van Der Laan Smith, David W. Harless

Accounting Faculty Publications

In this empirical study we examine whether China's efforts to converge domestic accounting standards with International Financial Reporting Standards (IFRS) over the past 15 years have resulted in the successful convergence of Chinese listed firms. This study is unique in that we evaluate convergence of firms' accounting practices from three perspectives: (1) the level of compliance with Chinese GAAP and IFRS, (2) the consistency of accounting choices under Chinese GAAP and IFRS, and (3) identification of significant differences in the net incomes produced under Chinese GAAP and IFRS (earnings gap).

Using the 1999 and 2002 annual reports of 79 Chinese …