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Full-Text Articles in Strategic Management Policy

What’S In It For Them? Advantages Of Higher Status Partners In Exchange Relationships, Fabrizio Castellucci, Gokhan Ertug Feb 2010

What’S In It For Them? Advantages Of Higher Status Partners In Exchange Relationships, Fabrizio Castellucci, Gokhan Ertug

Research Collection Lee Kong Chian School Of Business

This article explores the motivations that high-status firms have to enter exchange relationships with lower-status partners. We argue that high-status firms can secure greater effort from lower-status partners and that the amount of effort will be proportional to their status advantage over these partners. We further propose that such effort will translate to increased performance by mediating the negative consequences of affiliations with lower-status partners. This increase in performance constitutes the motivation for high-status firms to enter exchange relationships with lower-status partners. Findings using data on Formula One racing support our argument.


The Outsourcing Of Creative Work And The Limits Of Capability: The Case Of The Philippines Animation Industry, Feichin Ted Tschang, Andrea Goldstein Feb 2010

The Outsourcing Of Creative Work And The Limits Of Capability: The Case Of The Philippines Animation Industry, Feichin Ted Tschang, Andrea Goldstein

Research Collection Lee Kong Chian School Of Business

The animation industry, like many information-technology-enabled services sectors, has been of interest to many developing countries interested in developing services outsourcing industries. We analyze the case of the Philippines' animation industry. This paper investigates the outsourcing process in animation and the nature of capabilities within that, with the goal of contributing to a more general understanding of services outsourcing. We examine the industry's history, interview data with industry participants, and secondary data. We find that strong labor force skills have been central to capabilities rather than organizational abilities. Outsourcing of production takes place only so far as the work is …


Academic Entrepreneurs: The Role Of Star Scientists In Commercialization Of Radical Science, Reddi Kotha, Gerard George Jan 2010

Academic Entrepreneurs: The Role Of Star Scientists In Commercialization Of Radical Science, Reddi Kotha, Gerard George

Research Collection Lee Kong Chian School Of Business

We examine the effects of individual, team, and institutional capabilities on the governance of technology contracts. Star scientific teams may work on higher quality projects which may be of high or low risk, depending on the maturity of the technology. Arguments that assumed that both capabilities and risk are codetermined, and seldom diverge in their effects on incentive preferences, may be tenuous in these cases. We test our predictions using a two-stage model in a sample of 1,474 inventions that were licensed through performance or upfront contracts. We find that when individuals and teams have strong capabilities, they prefer performance …


Accounting, Risk, And Revolution, Stefano Harney Jan 2010

Accounting, Risk, And Revolution, Stefano Harney

Research Collection Lee Kong Chian School Of Business

In response to the position of Steve Toms, this article argues that risk must be understood not as it has been posited by capital but rather as it might be taken up by labour. It uses Marx's socialization thesis to maintain that risk is a symptom of possibility for labour. Drawing on the work of Randy Martin the argument culminates in a consideration of the interanimation of capital in labour occasioned by the second helping of risk produced by its commoditisation. It concludes that far from being just what Michel Aglietta calls a social evaluation of private economic activity, risk …


Who Is Taking Your Business Across Borders? Harnessing Human Capital For Successful Regionalization In Asia, Richard Raymond Smith, C. Switzer, E. Craig Jan 2010

Who Is Taking Your Business Across Borders? Harnessing Human Capital For Successful Regionalization In Asia, Richard Raymond Smith, C. Switzer, E. Craig

Research Collection Lee Kong Chian School Of Business

As the dynamics of globalisation change, Asia has become the focal point for business growth. With the region’s immense diversity across cultures, language, politics, economic development, climate, geography, populations and resources, human capital management is perhaps the most critical and most vexing success factor for companies seeking to invest/operate/grow/expand here. To develop this report, we explored the question of successful regionalisation in Asia from a human capital perspective. We asked, What human capital challenges do business and HR leaders face in their quest to succeed in Asia? What initiatives have they launched to overcome these challenges? And what business outcomes …


Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth G. Huang, Fiona Murray Dec 2009

Does Patent Strategy Shape The Long-Run Supply Of Public Knowledge? Evidence From Human Genetics, Kenneth G. Huang, Fiona Murray

Research Collection Lee Kong Chian School Of Business

Knowledge-based firms seeking competitive advantage often draw on the public knowledge stream (ideas embedded in public commons institutions) as the foundation for private knowledge (ideas firms protect through private intellectual property [IP] institutions). However, understanding of the converse relationship—the impact of private knowledge strategies on public knowledge production—is limited. We examine this question in human genetics, where policy makers debate expanding IP ownership over the human genome. Our difference-in-differences estimates show that gene patents decrease public genetic knowledge, with broader patent scope, private sector ownership, patent thickets, fragmented patent ownership, and a gene's commercial relevance exacerbating their effect.


Firm-Specific Knowledge Resources And Competitive Advantage: The Roles Of Economic- And Relationship-Based Employee Governance Mechanisms, Heli Wang, Jinyu He, Joseph T. Mahoney Dec 2009

Firm-Specific Knowledge Resources And Competitive Advantage: The Roles Of Economic- And Relationship-Based Employee Governance Mechanisms, Heli Wang, Jinyu He, Joseph T. Mahoney

Research Collection Lee Kong Chian School Of Business

The resource-based view of the firm emphasizes the role of firm-specific resources, especially firm-specific knowledge resources, in helping a firm to achieve sustainable competitive advantage. However, the deployment of firm-specific knowledge often requires key employees to make specialized human capital investments that are not easily redeployable to other settings. Thus, in the absence of effective safeguards and trust building devices, employees with foresight may be reluctant to make such specialized investments. This study explores both economic- and relationship-based governance mechanisms that might mitigate this underinvestment problem. Effective use of these governance mechanisms enables a firm to obtain greater performance from …


Innovation And Commoditization: Asian Cross Border Sourcing Practices, Sudhi Seshadri Nov 2009

Innovation And Commoditization: Asian Cross Border Sourcing Practices, Sudhi Seshadri

Research Collection Lee Kong Chian School Of Business

What constitutes better sourcing performance? The question is gaining prominence from recent work in the resource based view of the firm where interest in functional performance is growing. The paper addresses this question by investigating several dimensions of sourcing practices. Two main performance priorities are captured by supply innovation and supply commoditization, and we develop several hypotheses involving these constructs. The paper reports on our survey research with Asian purchasing managers; scales that measure supply innovation and commoditization; and the estimates of a path analytic model to test our hypotheses and provide relative effect sizes. The results contribute to a …


Private Equity In China: Grey, Yet Delicious, Knowledge@Smu Oct 2009

Private Equity In China: Grey, Yet Delicious, Knowledge@Smu

Knowledge@SMU

Sometimes, even the biggest might stumble in China’s grey, yet opportunity-laden private equity market. How should foreign private equity firms play their cards, what should they look out for, and how can they deal with China’s legal and accounting issues? Yong Kwek Ping, CEO of greater China-focused private equity firm Inventis Holdings, shares his experience and insights.


Innovative Knowledge Assets And Economic Performance: The Asymmetric Roles Of Incentives And Monitoring, Jinyu He, Heli Wang Oct 2009

Innovative Knowledge Assets And Economic Performance: The Asymmetric Roles Of Incentives And Monitoring, Jinyu He, Heli Wang

Research Collection Lee Kong Chian School Of Business

We posit that a firm's resource configuration constitutes a critical context for various corporate governance mechanisms. Although innovative knowledge assets are generally a key determinant of a firm's economic performance, they also lead to greater information asymmetry among managers and owners and to the need to grant managers more discretion in making resource deployment decisions. This weakens the role of monitoring but increases the effectiveness of incentive mechanisms. Therefore, we hypothesize asymmetric moderating effects of monitoring- and incentive-based governance mechanisms on the relationship between innovative knowledge assets and economic performance. Our empirical analyses provide support for the key arguments.


Beyond Fakirs And Call Centres: Lessons From India’S Global Powerhouses, Knowledge@Smu Aug 2009

Beyond Fakirs And Call Centres: Lessons From India’S Global Powerhouses, Knowledge@Smu

Knowledge@SMU

Forget the stereotype of the Indian accountant, IT manager or call centre operator. Instead, think savvy bigwigs with hungry appetites for all things foreign. Some of the world’s largest and most successful corporate acquisitions over the last 15 years have been carried out by conglomerates bearing the Indian flag. Tata, Mittal, Bharat Forge and Infosys are but just the more prominent names. Many others are emerging. What can we learn from these powerhouses and what makes them tick?


Emperors And Their John Waynes: Business Strategy, Inspired By The Wild Wild West!, Knowledge@Smu Jul 2009

Emperors And Their John Waynes: Business Strategy, Inspired By The Wild Wild West!, Knowledge@Smu

Knowledge@SMU

Large swathes of the Southeast Asian economies have been dominated by some forty Overseas Chinese families. What makes them tick, what are their management philosophies, what are their strategies and how do they view and face up to the business challenges today and tomorrow? George Haley, Usha Haley and Tan Chin Tiong sets to answer these questions and more in their latest collaboration “New Asian Emperors: The Business Strategies of the Overseas Chinese.”


Academics Or Entrepreneurs? Investigating Role Identity Modification Of University Scientists Involved In Commercialization Activity, Sanjay Jain, Gerard George, Mark Maltarich Jul 2009

Academics Or Entrepreneurs? Investigating Role Identity Modification Of University Scientists Involved In Commercialization Activity, Sanjay Jain, Gerard George, Mark Maltarich

Research Collection Lee Kong Chian School Of Business

Establishing the microfoundations of academic entrepreneurship requires closer scrutiny of a key actor contributing to this phenomenon—the university scientist. We investigate the sense-making that scientists engage in as part of their participation in technology transfer and postulate that this process involves a potential modification in their role identity. We analyzed more than 70 h of interview data at a premier U.S. public research university. We observe that scientists invoke rationales for involvement that are congruent with their academic role identity. They typically adopt a hybrid role identity that comprises a focal academic self and a secondary commercial persona. We delineate …


Seven Ways To Reinvent Business For The Age Of Capability, Knowledge@Smu Jun 2009

Seven Ways To Reinvent Business For The Age Of Capability, Knowledge@Smu

Knowledge@SMU

It is time to break out of the old mould. The current economic crisis has shown quite clearly enough, that the old practices of running businesses since the Second World War cannot be sustained. Companies, including world-class multinationals, are not destroyed by competition. In a sense, they self-destruct when they are too slow in adapting to shifting operating environments. For business leaders, they are getting a wake up call. Jagdish Sheth, marketing professor from Emory University, suggests how companies can reinvent the way they do business.


The Two Faces Of Control: Network Closure And Individual Performance Among Knowledge Workers, Martin Gargiulo, Gokhan Ertug, Charles Galunic Jun 2009

The Two Faces Of Control: Network Closure And Individual Performance Among Knowledge Workers, Martin Gargiulo, Gokhan Ertug, Charles Galunic

Research Collection Lee Kong Chian School Of Business

This paper argues that the effect of dense social ties, or network closure, on a knowledge worker's performance depends on the predominant role this worker plays with his or her exchange partners in the relationships affected by that closure. Using data on informal exchanges among investment bankers in the equities division of a large financial services firm operating in Europe, Asia-Pacific, Africa, and the Americas in 2001, we find that network closure in relationships in which the banker acts as an acquirer of information increases his or her performance, whereas closure in relationships in which the banker acts as a …


Categories In Evaluation Of Innovative Activities Of Competing Firms, Xuesong Geng Jun 2009

Categories In Evaluation Of Innovative Activities Of Competing Firms, Xuesong Geng

Research Collection Lee Kong Chian School Of Business

I examine how the stock market evaluation of a firm’s innovative activities is influenced by the categorization of the firm and its rivals. I find that innovations that blur the industry boundaries cause negative evaluation bias, but the competing innovations by outside industry firms cause positive evaluation bias in firm valuation.


Residual State Ownership, Policy Stability And Financial Performance Following Strategic Decisions By Privatizing Telecoms, Paul M. Vaaler, Burkhard N. Schrage May 2009

Residual State Ownership, Policy Stability And Financial Performance Following Strategic Decisions By Privatizing Telecoms, Paul M. Vaaler, Burkhard N. Schrage

Research Collection Lee Kong Chian School Of Business

We question previous research assuming that privatizing firm performance generally benefits from decreasing state ownership and the passage of time, both of which purportedly align principal-agent incentives promoting organizational decision-making that increases shareholder value. When state ownership shifts from majority and controlling to minority and non-controlling, the performance impact may be positive in the short run, particularly where there is instability in the local investment policy environment. Consistent with this proposition, we develop and test hypotheses derived from a minority and non-controlling or residual state ownership framework, grounded in credible privatization and institutional theory. We propose that: (1) residual state …


How Emerging Giants Are Rewriting The Rules Of M&A, Nirmalya Kumar May 2009

How Emerging Giants Are Rewriting The Rules Of M&A, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

While Western companies struggle with mergers and acquisitions, emerging giants like Indian aluminum producer Hindalco are using M&A as their main globalization strategy. That's partly because developing economies grew at near double-digit rates in the past 15 years, enabling many enterprises to make acquisitions. It's also because, according to the author's research, those corporations create more value from takeovers. To compete, Western multinationals should change their mind-set and shift the locus of their M&A efforts to regional headquarters in developing countries.U.S. and European companies, inhibited by slow-growing home markets, acquire rivals primarily to become bigger and thus create economies of …


Convergence Of Corporate Governance: Critical Review And Future Directions, Toru Yoshikawa, Abdul A. Rasheed May 2009

Convergence Of Corporate Governance: Critical Review And Future Directions, Toru Yoshikawa, Abdul A. Rasheed

Research Collection Lee Kong Chian School Of Business

Research Question/Issue: Convergence in corporate governance across countries has been a subject of interest and controversy in a variety of disciplines. We attempt to address a number of related research questions: (1) what constitutes convergence? (2) what are the drivers that propel corporations in different nations towards convergence? (3) what are the major impediments that stand in the way of convergence? (4) what empirical evidence do we have to suggest that we are moving towards or away from convergence? and (5) what would be some productive avenues for further research on this topic? Research Findings/Results: Despite the vigorous intellectual position …


The Strategies Of Chinese And Indian Software Multinationals: Implications For Internationalization Theory, Jorge Niosi, F. Ted Tschang Apr 2009

The Strategies Of Chinese And Indian Software Multinationals: Implications For Internationalization Theory, Jorge Niosi, F. Ted Tschang

Research Collection Lee Kong Chian School Of Business

China and India are emerging as major entrants into the international software industry. Both are rapidly learning through outsourcing with multinational enterprises (MNEs) from advanced nations, yet their paths to this dynamic sector are very different. Chinese software firms have focused on their domestic market by working with foreign MNEs, while they move cautiously abroad. Indian firms, which are already large, continue to expand overseas as well as to climb the value chain. Different approaches to MNEs provide useful perspectives. At the same time, the innovation systems approach is necessary to explain the foundations of the industry. The article provides …


Book Review: Battle Begins For The Wallets Of 500 Million Indian Consumers, Knowledge@Smu Mar 2009

Book Review: Battle Begins For The Wallets Of 500 Million Indian Consumers, Knowledge@Smu

Knowledge@SMU

The kiranas, or corner mom-and-pop stores, have been the mainstay of India’s retail scene. As the country’s economy develops and income levels rise, taste and preferences of Indian consumers are also changing. Increasingly, the country’s retail industry is attracting large companies in so-called “organised retail”, where big supermarket chains are set to provide an entirely different shopping experience for the estimated 500 million Indian consumers with significant income to spend. While the opportunities are obvious, what are the challenges?


How To Distinguish Smart Big Moves From Stupid Ones, Paul Strebel, Anne-Valerie Ohlsson-Corboz Mar 2009

How To Distinguish Smart Big Moves From Stupid Ones, Paul Strebel, Anne-Valerie Ohlsson-Corboz

Research Collection Lee Kong Chian School Of Business

When top executives undertake big moves – dramatic shifts in strategic direction – their decisions can make or break a company. This paper aims to offer a methodology for cutting the risks of making a catastrophic misstep. To avoid a corporate disaster and increase the chances of a smart and ultimately successful big move the paper raises six critical questions that must be answered honestly and unequivocally by managers. The research indicates that there are five classic types of big move, each corresponding to a different position on the corporate performance curve: finding a new game; going for growth; getting …


Stakeholder Influences On Diversification: Implications For Shareholders And Stakeholders, Partiban David, Jonathan P. O’Brien, Toru Yoshikawa, Andrew Delios Jan 2009

Stakeholder Influences On Diversification: Implications For Shareholders And Stakeholders, Partiban David, Jonathan P. O’Brien, Toru Yoshikawa, Andrew Delios

Research Collection Lee Kong Chian School Of Business

The article presents the results of research into the relative influence of stakeholders and shareholders on corporate strategic planning in terms of diversification and performance, focusing on concepts such as opportunity cost and rent appropriation. An overview of related previous studies is provided, along with details of the research protocol, which involved data analysis drawn from a sample of Japanese firms and their corporate profits from the years 1990 through 2004. A distinction between transactional and relational ownership is described, which can lead to different priorities in terms of profit and growth.


Firm Capability, Corporate Governance, And Firm Competitive Behavior: A Multi-Dimensional Framework, Jinyu He, Joseph T. Mahoney, Heli Wang Jan 2009

Firm Capability, Corporate Governance, And Firm Competitive Behavior: A Multi-Dimensional Framework, Jinyu He, Joseph T. Mahoney, Heli Wang

Research Collection Lee Kong Chian School Of Business

In this paper, we propose two possible remedies for corporate governance research. First, when examining the effects of corporate governance, researchers may want to simultaneously consider the role of firm resources and capabilities. Second, linking corporate governance with firm-level competitive behaviour rather than with firm-level performance may enable researchers to detect more nuances about the effects of corporate governance. We base our propositions on the notion that 'capability' and 'motivation' are the two fundamental drivers of firm competitive behaviour. Firm resources/capabilities, which correspond to the capability driver, define the potential level of a firm's competitive activity. Further, corporate governance, by …


Corporate Venture Capital, Disembodied Experimentation And Capability Development, Thomas Keil, Ekko Autio, Gerard George Dec 2008

Corporate Venture Capital, Disembodied Experimentation And Capability Development, Thomas Keil, Ekko Autio, Gerard George

Research Collection Lee Kong Chian School Of Business

Studies invoking a capabilities lens often ascribe deliberateness in organizational decisions to develop new capabilities. Drawing on five longitudinal case studies of large, global firms in the information and communication technology sector, we examine how firms engender cognizance of their future capability needs in situations characterized by high decision-making uncertainty. We develop a theoretical account of how firms use investments in start-ups to actively engage in experimentation outside organizational boundaries, a learning process which we term as disembodied experimentation. Disembodied experimentation creates awareness of voids in the capability base of an incumbent and helps to overcome inertial restraints thereby influencing …


The Ceo's Marketing Manifesto, Nirmalya Kumar Nov 2008

The Ceo's Marketing Manifesto, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

CEOs are frustrated by marketing's inability to deliver results. Has the profession lost its relevance? It is argued that, while the function of marketing has lost ground, the importance of marketing as a mind-set geared toward customer focus has gained momentum. Here we challenge marketers to change their role from tactical implementers of traditional marketing functions - the tactical 4 P's - to orchestrating organization-wide, transformational initiatives aimed at profitably delivering value to customers.


Untangling The Effects Of Overexploration And Overexploitation On Organizational Performance: The Moderating Role Of Environmental Dynamism, Heli Wang, Jiatao Li Oct 2008

Untangling The Effects Of Overexploration And Overexploitation On Organizational Performance: The Moderating Role Of Environmental Dynamism, Heli Wang, Jiatao Li

Research Collection Lee Kong Chian School Of Business

Because a firm’s optimal knowledge search behavior is determined by unique firm and industry conditions, organizational performance should be contingent on the degree to which a firm’s actual level of knowledge search deviates from the optimal level. It is thus hypothesized that deviation from the optimal search, in the form of either overexploitation or overexploration, is detrimental to organizational performance. Furthermore, the negative effect of search deviation on organizational performance varies with environmental dynamism; that is, overexploitation is expected to become more harmful, whereas overexploration becomes less so with an increase in environmental dynamism. The empirical analyses yield results consistent …


Going Global Poses New Challenges For Chinese Companies, Knowledge@Smu Sep 2008

Going Global Poses New Challenges For Chinese Companies, Knowledge@Smu

Knowledge@SMU

Spurred on by a sustained economic boom, big businesses in China are increasingly looking to extend their success overseas. At the inaugural Ho Bee lecture at the Singapore Management University (SMU) in July 2008, Marshall Meyer described the compelling journeys of two Chinese corporations, Haier Group and Lenovo, as they ventured outside China. Meyer is professor of management at Wharton and Ho Bee professor in Chinese economy and business at SMU.


Senior Team Attributes And Organizational Ambidexterity: The Moderating Role Of Transformational Leadership, Justin J. P. Jansen, Gerard George, Frans A. J. Van Den Bosch, Henk W. Volberda Jul 2008

Senior Team Attributes And Organizational Ambidexterity: The Moderating Role Of Transformational Leadership, Justin J. P. Jansen, Gerard George, Frans A. J. Van Den Bosch, Henk W. Volberda

Research Collection Lee Kong Chian School Of Business

Organizations capable of pursuing exploration and exploitation simultaneously have been suggested to obtain superior performance. Combining both types of activities and achieving organizational ambidexterity, however, leads to the presence of multiple and often conflicting goals, and poses considerable challenges to senior teams in ambidextrous organizations. This study explores the role of senior team attributes and leadership behaviour in reconciling conflicting interests among senior team members and achieving organizational ambidexterity. Findings indicate that a senior team shared vision and contingency rewards are associated with a firm's ability to combine high levels of exploratory and exploitative innovations. In addition, our study shows …


Bringing It All Back Home, Arnoud Cyriel Leo De Meyer, Matthias Holweg Jul 2008

Bringing It All Back Home, Arnoud Cyriel Leo De Meyer, Matthias Holweg

Research Collection Lee Kong Chian School Of Business

There seems little thatcan be positive for the UK manufacturing sector in oil prices above $120 abarrel, rising costs of other natural resources, inflation and growingenvironmental pressure. But there may be a silver lining. Increased transportcosts resulting from higher energy prices and carbon taxes may create anopportunity for a revival in western manufacturing.