Building dynamic capabilities of adaptation and innovation: a study of micro-foundations in a transition economy

What are the microfoundations of dynamic capabilities that sustain competitive advantage in a highly volatile environment, such as a transition economy? We explore the detailed nature of these dynamic capabilities along with their antecedents by tracing the sequence of their development based on a longitudinal case study of an organization subject to an external context of radical transition — the Russian oil company, Yukos. Our rich qualitative data indicate two distinct types of dynamic capabilities that are pivotal for organizational transformation. Adaptation dynamic capabilities relate to routines of resource exploitation and deployment, which are supported by acquisition, internalization and dissemination of extant knowledge, as well as resource reconfiguration, divestment and integration. Innovation dynamic capabilities relate to the creation of completely new capabilities via exploration and path-creation processes, which are supported by search, experimentation and risk taking, as well as project selection, funding and implementation. Second, we find that sequencing the two types of dynamic capabilities, helped the organization both to secure short-term competitive advantage, and to create the basis for long-term competitive advantage. These dynamic capability constructs advance theoretical understanding of what dynamic capabilities are, whilst their sequencing explains how firms create, leverage and enhance them over time.

The three faces of bounded reliability: Alfred Chandler and the micro-foundations of management theory

Alfred Chandler, the celebrated business historian, provided detailed descriptions of the reasons for failed human commitments and the managerial tools needed to prevent/remediate such failings in the context of large business firms. Chandler's historical narrative identifies three distinct “faces” of bounded reliability—opportunism, benevolent preference reversal, and identity-based discordance—as the main drivers of commitment failure. Adopting bounded reliability (BRel) as a micro-foundation in management studies will raise the quality and relevance of scholarly recommendations to improve managerial decision making and action, because analysis of BRel challenges closely mirrors the real-world problems facing practicing managers.

Internationalization intentions: micro-foundations and psychological distance perceptions in immigrant and non-immigrant entrepreneurs

This dissertation project aims at shedding light on the micro-foundations of international entrepreneurship, focusing on the pre-internationalization phase and taking an individual-level perspective. Three research questions are investigated building on a cognitive model of internationalization intentions. First, what are the antecedents to internationalization intentions, i.e. desirability and feasibility, and how they interact with psychological distance towards internationalization options. Second, what is the role of previous entrepreneurs’ experience on such antecedents, in particular for immigrant vs. non-immigrant entrepreneurs. Third, how are these antecedent elements influenced by entrepreneurs’ individual-level motivations and goals. Using a new data set from 140 independent, non-internationalized, high-tech SMEs and their 169 owners, a variety of analytical techniques are used to investigate the research questions, such as structural equation modeling, hierarchical regression and a "laddering" technique. This project advances our theoretical understanding of internationalization and international entrepreneurship and has relevant implications for entrepreneurs and policy-makers.

Micro-Foundations of Financialization. Status Anxiety and the Market for Consumer Credit in Chile

This project investigates why people in Chile acquired so much consumer debt in contexts of material prosperity, and asks what the role of inequality and commodification is in this process. The case raises an important challenge to the literature. Insofar as existing accounts assume that the financialization of consumption occurs in contexts marked by wage stagnation and a general deterioration of the middle classes, they engender two contradictory explanations: while political economists argue that people use credit in order to smooth their consumption in the face of market volatility, economists maintain that concentration of wealth at the top pushes middle income consumers to emulate the expenditures of the rich and consume beyond their means. These explanations do not necessarily fit the reality of developing countries. Triangulating in-depth interviews with middle class families, multivariate statistical analysis and secondary literature, the project shows that consumers in Chile use credit to finance “ordinary” forms of consumption that do not aim either at coping with market instability or emulating and signaling status to others. Rather, Chileans use department store credit cards in order to acquire a standard package of “inconspicuous” goods that they feel entitled to have. From this point of view, the systematic indebtedness of consumers originates in a major concern with “rank”, “achievement” and "security" that – following De Botton -- I call “status anxiety”. Status anxiety does not stem from the desire to emulate rich consumers, but from the impossibility of complying with normative expectations about what a middle class family should be (and have) that outweigh wage improvements. The project thus investigates the way in which “status anxiety” is systematically reproduced by means of two broad mechanisms that prompt people to acquire consumer debt. The first mechanism generating debt stems from an increase of real wages and high levels of inequality. It is explained by a general sociological principle known as relative deprivation, which points to the fact that general satisfaction with one´s income, possessions or status, is assessed not in absolute terms such as total income, but in relation with reference groups. In this sense, I explore the mechanisms that operate as catalyzers of relative deprivation, by making explicit social inequalities and distorting the perception of others´ wealth. Despite upward mobility and economic improvement, Chileans share the perception of “falling behind,” which materializes in an “imaginary middle class” against which people compare their status, possessions and economic independence. Finally, I show that the commodification of education, health and pension funds does not directly prompt people to acquire consumer debt, but operate as “income draining” mechanisms that demand higher shares of middle class families’ “discretionary income.” In combination with “relative deprivation,” these “income draining” mechanisms leave families with few options to perform their desired class identities, other than learning how to bring resources from the future into the present with the help of department store credit cards.

Choosing on Influence

Interaction, the act of mutual influence between two or more individuals, is an essential part of daily life and economic decisions. Yet, micro-foundations of interaction are unexplored. This paper presents a first attempt to this purpose. We study a decision procedure for interacting agents. According to our model, interaction occurs since individuals seek influence for those issues that they cannot solve on their own. Following a choice-theoretic approach, we provide simple properties that aid to detect interacting individuals. In this case, revealed preference analysis not only grants the underlying preferences but also the influence acquired. Our baseline model is based on two interacting individuals, though we extend the analysis to multi-individual environments.

Violence and Political Institutions in the Basque Country

A credible analysis or proposal to solve the problem of the treatment of violence in divided societies has to based in a good understanding of the micro-foundations of the political mobilization in these societies. Much of the engineering models seem to have been based on rather strong simplifications of the electoral behaviour of the citizens. This paper aims to contribute to the understanding of the underlying political competition in divided societies with a neo-downsian model of party competition that is based on the interpretation of Tsebelis (1991) of the consociationalism.

Managing Quality under Heterogeneous Consumer Demand and Product Quality, October 2005

Based on accepted advances in the marketing, economics, consumer behavior, and satisfaction literatures, we develop a micro-foundations model of a firm that needs to manage the quality of a product that is inherently heterogeneous in the presence of varying customer tastes or expectations for quality. Our model blends elements of the returns to quality, customer lifetime value, and service profit chain approaches to marketing. The model is then used to explain several empirical results pertaining to the marketing literature by explicitly articulating the trade-offs between customer satisfaction and costs (including opportunity costs) of quality. In this environment firms will find it optimal to allow some customers to go unsatisfied. We show that the relationship between the expected number of repeated purchases by an individual customer is endogenous to the choice of quality by the firm, indicating that the number of purchases cannot be chosen freely to estimate a customer’s lifetime value.

Searchig the links between "knowledge governance mechanisms", "the individual conditions of knowledge sharing", and "individual's knowledge sharing behaviour".

The objective of this study was to understand how organizational knowledge governance mechanisms affect individual motivation, opportunity, and the ability to share knowledge (MOA framework), and further, how individual knowledge-sharing conditions affect actual knowledge sharing behaviour. The study followed the knowledge governance approach and a micro-foundations perspective to develop a theoretical model and hypotheses, which could explain the casual relationships between knowledge governance mechanisms, individual knowledge sharing conditions, and individual knowledge sharing behaviour. The quantitative research strategy and multivariate data analysis techniques (SEM) were used in the hypotheses testing with a survey dataset of 256 employees from eleven military schools of Finnish Defence Forces (FDF). The results showed that “performance-based feedback and rewards” affects employee’s “intrinsic motivation towards knowledge sharing”, that “lateral coordination” affects employee’s “knowledge self-efficacy”, and that ”training and development” is positively related to “time availability” for knowledge sharing but affects negatively employee’s knowledge self-efficacy. Individual motivation and knowledge self-efficacy towards knowledge sharing affected knowledge sharing behaviour when work-related knowledge was shared 1) between employees in a department and 2) between employees in different departments, however these factors did not play a crucial role in subordinate–superior knowledge sharing. The findings suggest that individual motivation, opportunity, and the ability towards knowledge sharing affects individual knowledge sharing behaviour differently in different knowledge sharing situations. Furthermore, knowledge governance mechanisms can be used to manage individual-level knowledge sharing conditions and individual knowledge sharing behaviour but their affect also vary in different knowledge sharing situations.

Persistência inflacionária e curva de Phillips novo-keynesiana para o Brasil

Inflation persistence and new Keynesian Phillips curves for Brazil. In this paper is shown that sustainable inflation persistence has theoretical support not only due price indexation, but also because of micro-foundations based on assumptions of Simon's bounded rationality and because of persistent mark-up shocks. the new keynesian phillips curve, estimated for brazil for the period 2000/2008, and the partial coefficients of determination for moving sub-periods of 36 months identifies inflation persistence as the main determinant of inflation, with the capacity gap presenting larger importance only in the end of the sample period. Inflation persistence requires harder monetary policy when neither accommodation is acceptable nor complementary policies in order to reduce it, such as the minimization of indexation mechanisms and control of the market power, are adopted.

A Theory and Test of How Speakers with Nonnative Accents are Evaluated in Entrepreneurial Settings

An abundance of research in the social sciences has demonstrated a persistent bias against nonnative English speakers (Giles & Billings, 2004; Gluszek & Dovidio, 2010). Yet, organizational scholars have only begun to investigate the underlying mechanisms that drive the bias against nonnative speakers and subsequently design interventions to mitigate these biases. In this dissertation, I offer an integrative model to organize past explanations for accent-based bias into a coherent framework, and posit that nonnative accents elicit social perceptions that have implications at the personal, relational, and group level. I also seek to complement the existing emphasis on main effects of accents, which focuses on the general tendency to discriminate against those with accents, by examining moderators that shed light on the conditions under which accent-based bias is most likely to occur. Specifically, I explore the idea that people’s beliefs about the controllability of accents can moderate their evaluations toward nonnative speakers, such that those who believe that accents can be controlled are more likely to demonstrate a bias against nonnative speakers. I empirically test my theoretical model in three studies in the context of entrepreneurial funding decisions. Results generally supported the proposed model. By examining the micro foundations of accent-based bias, the ideas explored in this dissertation set the stage for future research in an increasingly multilingual world.

Liderazgo Responsable: Una revisión de la literatura

El objetivo del presente artículo es profundizar en los conceptos de liderazgo responsable y responsabilidad social empresarial, basándose en un marco referencial y bibliográfico pertinente para la investigación. Para ello, se realizó una exhaustiva búsqueda de referencias bibliográficas, tales como artículos científicos, publicaciones académicas y estudios de caso, que ayudaron a dar un acercamiento conceptual al tema principal. Se encontraron diferentes aproximaciones conceptuales sobre el liderazgo responsable y la importancia que tiene en términos de responsabilidad social, algunas teorías del liderazgo, estilos de liderazgo responsable, la satisfacción laboral y por ultimo una serie de casos empresariales que ponen estos conceptos en práctica.

A integração micro macroeconomia modelos e justificativas

O objetivo desta pesquisa é o de mostrar que a necessidade de fundamentar a macroeconomia na micro, é um falso problema, pois na medida em que certas decisões microeconômicas afetam a macroeconomia é verdade também que decisões macroeconômicas afetam a realidade microeconômica. O reconhecimento destes fatos nos permitirá construir modelos econômicos mais relevantes , bem como entender mais adequadamente a estrutura dos sistema econômico e as implicações para aplicação de políticas econômicas.

Good just isn't Good enough. Best System Probabilities and the Foundations of Statistical Mechanics

Statistical physicists assume a probability distribution over micro-states to explain thermodynamic behavior. The question of this paper is whether these probabilities are part of a best system and can thus be interpreted as Humean chances. I consider two strategies, viz. a globalist as suggested by Loewer, and a localist as advocated by Frigg and Hoefer. Both strategies fail because the system they are part of have rivals that are roughly equally good, while ontic probabilities should be part of a clearly winning system. I conclude with the diagnosis that well-defined micro-probabilities under-estimate the robust character of explanations in statistical physics.

Laser Shock Micro-Forming as an Emerging Technique for Microsystems Shaping and Adjustment

Continuous and long-pulse lasers have been extensively used for the forming of metal sheets for macroscopic mechanical applications. However, for the manufacturing of Micro-Mechanical Systems (MMS), the applicability of such type of lasers is limited by the long relaxation time of the thermal fields responsible for the forming phenomena. As a consequence, the final sheet deformation state is attained only after a certain time, what makes the generated internal residual stress fields more dependent on ambient conditions and might difficult the subsequent assembly process. The use of short pulse (ns) lasers provides a suitable parameter matching for the laser forming of an important range of sheet components used in MEMS. The short interaction time scale required for the predominantly mechanic (shock) induction of deformation residual stresses allows the successful processing of components in a medium range of miniaturization (particularly important according to its frequent use in such systems). In the present paper, Laser Shock Micro-Forming (LSμF) is presented as an emerging technique for Microsystems parts shaping and adjustment along with a discussion on its physical foundations and practical implementation possibilities developed by the authors.