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One of the hallmarks of strategizing is having a clearly articulated vision and mission for the organization. It has been suggested that this provides a compass bearing for the organization's strategy, helps in motivation, commitment and retention of employees, serves as a guide to internal sensemaking and decision-making, has a potential performance effect, helps establish the identity of the organization and positions its desired reputation. The compass bearing role is important because it guides the selection of the goals and strategic orientation of the organization which in turn shapes its overall strategy and much of its internal decision making. The inspirational role is important because it helps to motivate and engage employees and other stakeholders.

This study provides a more rigorous indication as to whether employees can, in the first instance, recognize and distinguish their corporate and environmental strategy from that of their competitors within their own industry and random other companies from other industries. This first issue addresses, to a degree, if and why, such strategic communiqués are effective inside a range of different organizations. Secondly, the authors examine whether there are any specific individual level effects that could explain variations in these responses. Finally, the authors examine the extent to which the recognition rates the authors observe, relate to how employees are rewarded through appraisals, promotions and salary increases. This helps in the authors’ understanding of the role of hard incentives versus soft motivations. The authors’ approach to assessing employee knowledge of their organization's strategy is unique. Rather than survey employees about their knowledge, the authors use a matching study and a discrete choice measurement model to assess if they can recognize their organization's strategy from those of their competitors and some other randomly selected organizations. This approach allows us to mitigate social desirability and common method biases and directly estimate the underlying behavioral model being used to assess their organization's strategy.

Overall, the authors found that few employees could correctly identify their corporate strategy statements. In the case of corporate strategy statements, the authors find that, on average, only 29 percent of employees could correctly match their company to its publicly espoused corporate strategy. When the authors look at the environmental sustainability strategy of the firm, this is worse overall, with individuals doing no better than random on average. When the authors look at company training and communication practices across the realm of different strategies, the authors see a number of factors leading to the general results. First, most of the authors’ respondents could not recall a significant effort being given to communication and training by their employer. Indeed, most communication/training is simply related to having documentation/brochures available. Second, respondents indicated that more effort is put into communicating corporate strategy to employees in a more systematic manner than communication about environmental/corporate social responsible (CSR) strategy. Third, the authors see that individuals are evaluated more on and give more weight to, evaluations relating to their ability to meet individual/group financial and market performance metrics (targets) and work as a team than their involvement in environmental and social responsibility programs. Finally, the employees studied seemed to be more confident in understanding the corporate strategy. When asked to put their corporate strategy into words – a task the authors asked respondents to do after the matching phase of the study – 40% of participants did so for the corporate strategy but only 14% did so for the environmental strategy and seven percent for the CSR strategy.

The primary implication of the study is that the values-mission-strategy logic of strategic motivation seems to have limited validity and with respect to the view that employees are a vector of corporate strategy. It is hard to argue that employees can be a vector for something they cannot recall or even distinguish between.

The study is unique in terms of (1) asking the very simple question of whether employees internalize their company's strategies and (2) in the methodological approach to examine employee knowledge and informativeness.

Socially responsible investment (SRI) funds have grown dramatically as an investment alternative in most of the developed world. The paper aims to discuss this issue.

This study uses a structured experimental approach to determine if the decision-making process of investors to invest in SRIs is consistent with the process used for conventional investments. The theoretical framework draws on two widely studied concepts in the decision making and investment literature, namely, inertia and discounting.

The authors find that inertia plays a significant role in the selection of SRI funds and that investors systemically discount the value of SRIs.

The results suggest that SRIs need to be designed to cater to the risk/return profiles of investors and that these investors need to be better informed about the performance of SRIs vs conventional investments to reduce their systematic discounting.

Unique experimental approach applied to investment alternatives in a manner that captures individual level variation.

There is a great divide between the degree to which academic research accounts for the role of managerial discretion in firm performance and the weight given by the popular press and financial community to the importance of the management of an organization. The purpose of this paper is to bridge this gap by quantifying the way managerial beliefs influence the quality of firm performance in a turbulent environment based on e‐business.

An e‐business research setting is used that is associated with a situation of environmental turbulence to allow for sufficient variance in managerial beliefs to measure their effect on firm performance. The sample contains 293 firms.

Aggregate level results indicate that managerial beliefs have a positive and significant effect on firm performance. Four distinctive segments were also found to exist. These segments vary in terms of the strength of the position that a manager holds regarding the value of e‐business and firm performance.

The paper shows that the affect of e‐business on firm performance is not structural in the sense that firm performance does not depend on the firm or industry but is reflective of the strength of the beliefs held by managers. This implies that the “black box” approach that is characteristic of much management research may be problematic because it fails to measure the variables that may matter most to performance.

The aim of this paper is to provide a clearer picture of the nature of power imbalance in client‐consultant teams, which has negative consequences for the development and implementation of consultants' recommendations, and to outline ways how to avoid such an imbalance in the first instance.

This is an empirical paper based on in‐depth semi‐structured interviews with clients and consultants from the strategic consulting sector in Australia.

Taking a differentiated look at the roles and responsibilities of members of client‐consultant teams, the authors propose that power within client‐consultant teams is multidimensional and the outcome of the interplay of its different forms is not predictable. It is further argued that a power balance is crucial for achieving better results from consulting projects.

The findings are not generalizable, due to the small sample and the focus on strategic consulting. The results encourage further research in different types of consulting projects as well as studies based on observation of client‐consultant interactions.

The paper highlights the main points of concern for managers and consultants and provides some suggestions on how to achieve a balanced relationship.

This paper's major contribution is in providing deeper insight into a hitherto underexplored issue of client‐consultant interactions: the contested nature of power in client‐consultant teams and the reasons and outcomes of power imbalance.

Stadium naming rights programs have proliferated over the past decade, yet we have no direct evidence that these types of sponsorship programs help companies develop their long-term brand equity or even provide a short-term boost to corporate value. This paper examines the impact that naming rights programs have had on the stock values of the corporate sponsors. Using event study analysis, it is found that there are mixed responses to these types of programs. A discussion is provided which helps to explain the mixed results and provides communications mangers with some suggestions on creating more effective naming rights programs.

An interesting issue little explored in the celebrity endorsement literature is whether or not the activities of a celebrity endorser affect company performance. We examine the impact of Tiger Woods’s tournament performance on the endorsing firm’s value subsequent to the contract signing. We do not find a relationship between Tiger’ss tournament placement and the excess returns of Fortune Brands (parent of Titleist). This is likely due to Titleist being a very small contributor to the total market value of Fortune Brands. We also fail to find a significant relationship for American Express suggesting the market does not view a golfer endorsing financial services as credible. We do, however, find a positive and significant impact of Tiger’s performance on Nike’s excess returns suggesting that the market values the additional publicity that Nike receives when Tiger is in contention to win.

This study focuses on home country institutions as sources of variation in the level of foreign investment into India. Our findings support the idea that institutional voids found in India are less of a deterrent to investments from home countries with high levels of institutional development than from home countries with similar institutional voids. Overall, foreign investments in India are found to be significantly related to the strength of institutions within home countries. The levels of both approved and realized foreign direct investment (FDI) are strongly influenced by economic factors and home country regulative institutions, and weakly influenced by home country cognitive institutions. When considered separately, the cognitive institutions and regulative institutions within a given home country each significantly influence the level of approved/realized FDI into India. However, when considered jointly, only the strength of regulative institutions is predictive of FDI inflows.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Employee familiarity with their firm’s strategic intent has significant performance implications. Companies might boost employee knowledge through effective communication and by integrating information about their various strategies within training, evaluation and reward initiatives.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.