Foreign executive appointments: a multilevel examination

As multinational enterprises (MNE) expand, their attachment to the country of origin is challenged by the need to adapt to an increasingly diverse geographical posture. We examine how these countervailing forces affect top management team (TMT) composition and test a model that associates foreign executive appointments with individual- and firm-level antecedents. Using multilevel data comprising 1,446 TMT appointments at 360 large European firms between 2001 and 2005, we show that individual experiential characteristics, the type of TMT function, prior performance of the MNE, and the MNE’s overall degree of internationalization are associated with foreign TMT appointments. We discuss how our findings contribute to the international business literature and complement recent research on the internationalization of TMTs.

Influência do investidor no processo de internacionalização de empresas: um estudo comparativo de casos em empresas de aplicativos de taxi

O processo de internacionalização acelerada pelo qual algumas empresas buscam o mercado internacional é um fenômeno crescente que vem desafiando as teorias sobre a empresa multinacional. No Brasil diversos estudos foram realizados, principalmente com empresas de base tecnológica, sobre o chamado fenômeno Born Global que considera fatores do empreendedor e da própria empresa tais como a presença de vantagens tecnológicas, inovação e o uso de parcerias, entre outros. O objetivo geral desse estudo é avaliar o papel e a influência do investidor de risco no processo de internacionalização acelerada de empresas de base tecnológica no Brasil usando como lente teórica a Visão Baseada em Recursos. Através de um estudo comparativo de casos espera-se contribuir para um melhor entendimento da influência desse stakeholder no processo de internacionalização, investigando as possíveis diferenças de contribuições decorrentes da sua origem e analisando o papel do Top Management Team nesse processo. Foram encontradas fortes evidências identificando o investidor de risco como um recurso valioso e raro para o desenvolvimento das empresas estudadas, em linha com a Teoria da Visão Baseada em Recursos, bem como contribuidor do processo de internacionalização ocorrido em uma das empresas. O investidor de risco foi identificado como fonte agregadora de recursos financeiros e humanos, capaz de trazer legitimidade às empresas investidas em novos mercados, além de conhecimento e experiência necessários para consolidação e expansão dos negócios.

New Product Portfolio Performance in Family Firms

This study investigates the relationship between top management team (TMT) innovation orientation and new product portfolio performance in small and medium-sized family firms by exploring two family firm-specific sources of TMT diversity as moderators: the number of generations involved in the TMT and the ratio of family members in the TMT. Results indicate that family-induced diversity in the TMT has opposing moderating effects. Although a positive relationship exists between TMT innovation orientation and new product portfolio performance when multiple generations are involved in the TMT, TMT innovation orientation and new product portfolio performance experience a negative relationship when the ratio of family members in the TMT is high. The study discusses theoretical and managerial implications of the findings and develops avenues for future research.

What Makes a Family Firm Innovative? CEO Risk-Taking Propensity and the Organizational Context of Family Firms

Investigating the new product portfolio innovativeness of family firms connects two important topics that have recently received considerable attention in innovation and family firm research. First, new product portfolio innovativeness has been identified as a critical determinant of firm performance. Second, research on family firms has focused on the questions of if and why family firms are more or less innovative than other organizational forms. Research investigating the innovativeness of family firms has often applied a risk-oriented perspective by identifying socioemotional wealth (SEW) as the main reference that determines firm behavior. Thus, prior research has mainly focused on the organizational context to predict innovation-related family firm behavior and neglected the impact of preferences and the behavior of the chief executive officer (CEO), which have both been shown to affect firm outcomes. Hence, this study aims to extend the previous research by introducing the CEO's disposition to organizational context variables to explain the new product portfolio innovativeness of small and medium-sized family firms. Specifically, this study explores how the organizational context (i.e., ownership by top management team [TMT] family members and generation in charge of the family firm) of family firms interacts with CEO risk-taking propensity to affect new product portfolio innovativeness. Using a sample of 114 German CEOs of small and medium-sized family firms operating in manufacturing industries, the results show that CEO risk-taking propensity has a positive effect on new product portfolio innovativeness. Moreover, the analyses show that the organizational context of family firms impacts the relationship between CEO risk-taking propensity and new product portfolio innovativeness. Specifically, the relationship between CEO risk-taking propensity and new product portfolio innovativeness is weaker if levels of ownership by TMT family members are high (high SEW). Additionally, the effect of CEO risk-taking propensity on new product portfolio innovativeness is stronger in family firms at earlier generational stages (high SEW). This result suggests that if SEW is a strong reference, family firm-specific characteristics can affect individual dispositions and, in turn, the behaviors of executives. Therefore, this study helps extend the knowledge on the determinants of new product portfolio innovativeness of family firms by considering an individual CEO preference and the organizational context variables of family firms simultaneously.

Innovations in Small and Medium-Sized Family Firms

Small and medium-sized firms are a prevalent organizational form in Germany. Their importance for the German economy is indisputable. Most of them are global market leaders in their niches and are considered to be a force for innovation in the German economy. The ability to be innovative in niche markets has been identified as the antecedent of their strong, or even dominant, competitive positions in their industries. The driver of this innovation success may well be the family, which distinguishes family firms from non-family firms. Nils Kraiczy analyzes if a family influences innovation in a family firm and if this influence has only positive effects. The dissertation focuses on the impact of top management teams on innovations interacting with family firm-specific characteristics. The author shows the complexity of family influence by presenting different effects of each investigated family firm-specific characteristic on the relationship between top management team behavior and innovation.

Strategic development process and complex adaptive systems

The two areas of theory upon which this research was based were „strategy development process?(SDP) and „complex adaptive systems? (CAS), as part of complexity theory, focused on human social organisations. The literature reviewed showed that there is a paucity of empirical work and theory in the overlap of the two areas, providing an opportunity for contributions to knowledge in each area of theory, and for practitioners. An inductive approach was adopted for this research, in an effort to discover new insights to the focus area of study. It was undertaken from within an interpretivist paradigm, and based on a novel conceptual framework. The organisationally intimate nature of the research topic, and the researcher?s circumstances required a research design that was both in-depth and long term. The result was a single, exploratory, case study, which included use of data from 44 in-depth, semi-structured interviews, from 36 people, involving all the top management team members and significant other staff members; observations, rumour and grapevine (ORG) data; and archive data, over a 5½ year period (2005 – 2010). Findings confirm the validity of the conceptual framework, and that complex adaptive systems theory has potential to extend strategy development process theory. It has shown how and why the strategy process developed in the case study organisation by providing deeper insights to the behaviour of the people, their backgrounds, and interactions. Broad predictions of the „latent strategy development? process and some elements of the strategy content are also possible. Based on this research, it is possible to extend the utility of the SDP model by including peoples? behavioural characteristics within the organisation, via complex adaptive systems theory. Further research is recommended to test limits of the application of the conceptual framework and improve its efficacy with more organisations across a variety of sectors.

Analysis of organisational climate to improve the adequacy of primary health care in the State of Kuwait

This study covers two areas of contribution to the knowledge, firstly it tried to investigate rigourously the relationships of a number of factors believed that they may affect the climate perception, classified into three types to arrive to prove a hypothesis of the important role that qualification and personal factors play in shaping the climate perception, this is in contrast with situational factors. Secondly, the study tries to recluster the items of a wide-range applied scale for the measurement of climate named HAY in order to overcome the cross-cultural differences between the Kuwaiti and the American society, and to achieve a modified dimensions of climate for a civil service organisation in Kuwait. Furthermore, the study attempts to carry out a diagnostic test for the climate of the Ministry of Public Health in Kuwait, aiming to diagnose the perceived characteristics of the MoPH organisation, and suggests a number of areas to be given attention if an improvement is to be introduced. The study used extensively the statistical and the computer facilities to make the analysis more representing the field data, on the other hand this study is characterised by the very highly responsive rate of the main survey which would affect the findings reliability. Three main field studies are included, the first one was to conduct the main questionnaire where the second was to measure the "should be" climate by the experts of MoPH using the DELPHI technique, and the third was to conduct an extensive meeting with the very top management team in MoPH. Results of the first stage were subject to CLUSTER analysis for the reconstruction of the HAY tool, whereas comparative analysis was carried on between the results of the second and third stages on one side, the first from the other.

Strategic practices:an activity theory perspective on continuity and change

This paper draws upon activity theory- to analyse an empirical investigation of the micro practices of strategy in three UK universities. Activity theory provides a framework of four interactive components from which strategy emerges; the collective structures of the organization, the primary actors, in this research conceptualized as the top management team (TMT), the practical activities in which they interact and the strategic practices through which interaction is conducted. Using this framework, the paper focuses specifically on the formal strategic practices involved in direction setting, resource allocation, and monitoring and control. These strategic practices arc associated with continuity of strategic activity in one case study but are involved in the reinterpretation and change of strategic activity in the other two cases. We model this finding into activity theory-based typologies of the cases that illustrate the way that practices either distribute shared interpretations or mediate between contested interpretations of strategic activity. The typologies explain the relationships between strategic practices and continuity and change of strategy as practice. The paper concludes by linking activity theory to wider change literatures to illustrate its potential as an integrative methodological framework for examining the subjective and emergent processes through which strategic activity is constructed. © Blackwell Publishing Ltd 2003.

The influence of context on the strategic decision-making process:a review of the literature

This paper critically reviews the strategic decision-making process literature, with a specific focus on the effects of context. Context refers to the top management team, strategic decision-specific characteristics, the external environment and firm characteristics. This literature review also develops an illustrative framework that incorporates these four different categories of contextual variables that influence the strategic decision-making process. As a result of the variety and pervasiveness of contextual variables featured within the literature, a comprehensive and up-to-date review is essential for organizing and synthesizing the extant literature to explicate an agenda for future research. The purpose of this literature review is threefold: first, to critically review the strategic decision-making process literature to highlight the underlying themes, issues, tensions and debates in the field; second, to identify the opportunities for future theory development; and third, to state the methodological implications arising from this review. © 2013 British Academy of Management and John Wiley & Sons Ltd.

An empirical examination of the strategic decision-making process:the relationship between context, process, and outcomes

Despite concerted academic interest in the strategic decision-making process (SDMP) since the 1980s, a coherent body of theory capable of guiding practice has not materialised. This is because many prior studies focus only on a single process characteristic, often rationality or comprehensiveness, and have paid insufficient attention to context. To further develop theory, research is required which examines: (i) the influence of context from multiple theoretical perspectives (e.g. upper echelons, environmental determinism); (ii) different process characteristics from both synoptic formal (e.g. rationality) and political incremental (e.g. politics) perspectives, and; (iii) the effects of context and process characteristics on a range of SDMP outcomes. Using data from 30 interviews and 357 questionnaires, this thesis addresses several opportunities for theory development by testing an integrative model which incorporates: (i) five SDMP characteristics representing both synoptic formal (procedural rationality, comprehensiveness, and behavioural integration) and political incremental (intuition, and political behaviour) perspectives; (ii) four SDMP outcome variables—strategic decision (SD) quality, implementation success, commitment, and SD speed, and; (iii) contextual variables from the four theoretical perspectives—upper echelons, SD-specific characteristics, environmental determinism, and firm characteristics. The present study makes several substantial and original contributions to knowledge. First, it provides empirical evidence of the contextual boundary conditions under which intuition and political behaviour positively influence SDMP outcomes. Second, it establishes the predominance of the upper echelons perspective; with TMT variables explaining significantly more variance in SDMP characteristics than SD specific characteristics, the external environment, and firm characteristics. A newly developed measure of top management team expertise also demonstrates highly significant direct and indirect effects on the SDMP. Finally, it is evident that SDMP characteristics and contextual variables influence a number of SDMP outcomes, not just overall SD quality, but also implementation success, commitment, and SD speed.

La construcción de sentido (‘sensemaking’) de un entorno estratégico turbulento por parte de los altos directivos: un estudio en una multinacional automotriz

Este artículo presenta los resultados de una investigación realizada al interior de dos contextos. Por un lado, el teórico, en el marco de uno de los discursos más relevantes en los campos de la estrategia organizacional, de la managerial and organizational cognition (MOC) y, en general, de los estudios organizacionales (organization studies): la construcción de sentido (sensemaking). Por el otro, el empírico, en una de las grandes compañías multinacionales del sector automotriz con presencia global. Esta corporación enfrenta una permanente tensión entre lo que dicta la casa matriz, en relación con el cumplimiento de metas y estándares específicos, considerando el mundo entero, y los retos que, teniendo en cuenta lo regional y lo local, experimentan los altos directivos encargados de hacer prosperar la empresa en estos lugares. La aproximación implementada fue cualitativa. Esto en atención a la naturaleza de la problemática abordada y la tradición del campo. Los resultados permiten ampliar el actual nivel de comprensión acerca de los procesos de sensemaking de los altos directivos al enfrentar un entorno estratégico turbulento.

Consequences of feeling dissimilar from others in a work team

This study extended the current literature on group diversity by examining the moderating influence of perceived group openness to diversity on the relationships between perceived individual visible, informational, and value dissimilarity; individual task and relationship conflict; and work group involvement. A survey was administered to 129 public service employees who worked in intact teams. Results revealed that value dissimilarity had a positive association with task and relationship conflict and a negative association with work group involvement. Perceived group openness to diversity moderated the associations between visible and informational dissimilarity and work group involvement, and between value dissimilarity and task conflict. These results highlight the importance of managing differences by introducing norms promoting diversity and the involvement of all team members.

The role of team identification in the dissimilarity-conflict relationship

This study examined the role of team identification in the dissimilarity and conflict relationship. We tested competing predictions that team identification would either mediate or moderate the positive associations between visible (age, gender and ethnic background), professional (background) and value dissimilarity and task and relationship conflict. Data was collected from 27 MBA student teams twice during a semester. Multilevel modelling and a longitudinal design were used. Results showed that value dissimilarity was positively associated with task and relationship conflict at Time 2. Its effects on relationship conflict at Time 1 were moderated by team identification. Team identification also moderated the effects of gender, age and ethnic dissimilarity on task conflict at Time 2, and the effects of gender and professional dissimilarity on relationship conflict at Time 2. No support was obtained for the mediating role of team identification on the associations between dissimilarity and conflict, or for changes in the effects of dissimilarity over time.

Individual decision-making by top executives as a valuable resource for strategic management – A resource-based view and dynamic capability approach

Strategy is highly important for organisational success and the achievement of competitive advantage. Strategy is dynamic and it depends on accurate individual decision-making from medium and high-level managers and executives. Since managers always formulate strategy, its formulation depends mostly on their assertive decisions. Making good decisions is a complex task, even more in today’s business world where a large quantity of information and a dynamic environment forces people to decide without having complete information. As Shafir, Simonson, & Tversky (1993) point out, "the making of decisions, both big and small, is often difficult because of uncertainty and conflict". In this paper the author will explain a basic theoretical framework about top manager's individual decision-making, showing how complex the process of making high-impact decisions is; then, he will compare this theory with one of the most important streams in strategic management, the Resource-Based View (RBV) of the firm. Finally, within the context of individual decision-making and the RBV stream, the author will show how individual decision makers in top management positions constitute a valuable, rare, non-imitable and non-substitutable resource that provides sustained competitive advantage.

Team Evaluation: Solutions for Hotel Management and Productivity

Employee performance appraisal systems are controversial, especially when accomplished by a single rater. The authors, who have had experience with team evaluation systems, present evidence from that experience for over- coming obstacles to moving to a "less-biased" system of rating employees.