Alexander Hahn and Michèle Morner
The purpose of this paper is to examine the strategic and organizational difficulties of multidivisional corporations with solution business (product service bundles). Most large…
Abstract
Purpose
The purpose of this paper is to examine the strategic and organizational difficulties of multidivisional corporations with solution business (product service bundles). Most large multidivisional corporations are organized in a way that supports independence and market orientation of their organizational units. Solutions, however, require a high level of interaction and cooperation between corporate units. The authors collect evidence for this contradiction and resulting difficulties and propose a shift in the value creation strategy towards corporate headquarters having a stronger steering influence.
Design/methodology/approach
The authors analyze the economic performance of the largest semiconductor suppliers and relate these results to their product and solution focus. They then derive initial strategic recommendations based on the findings and organizational strategy literature.
Findings
Multidivisional companies that just add solution business onto their existing product‐based strategy experience difficulties. To overcome these, strategic adjustments are proposed that will lead to a stronger steering influence by corporate headquarters.
Practical implications
This paper shows the necessity of adjustments to corporate strategy when solution business is pursued. Companies need to actively support the interaction of their corporate units in the light of solution business.
Originality/value
It is recognized that solely solution‐focused companies require a different business model to product‐focused companies. However there has been little discussion on strategic adjustments by companies that supplement their existing product business with solutions.
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Mehdi Vaseyee Charmahali, Hasan Valiyan and Mohammadreza Abdoli
During the current century, environmental sustainability and waste reduction processes have always been subject to scrutiny in developed societies. Developed communities have…
Abstract
Purpose
During the current century, environmental sustainability and waste reduction processes have always been subject to scrutiny in developed societies. Developed communities have gained considerable momentum by investing in environmental infrastructure and integrating corporate performance disclosure and less developed communities are involved with it. Carbon disclosure is one of the aspects of green accounting in “corporate strategies,” especially those operating across the capital market. Adherence to the disclosure of facts can facilitate sustainable development in societies. This study aims to present strategic reference points matrix-based model to develop a framework for carbon disclosure strategies through institutional and stakeholder pressures throughout the capital market.
Design/methodology/approach
As a case study, by reviewing similar research on carbon disclosure, this study seeks to illustrate various carbon disclosure aspects and strategies in a matrix based on institutional (vertical axis) and stakeholder (horizontal axis) pressures
Findings
The study attempts to states that carbon disclosure is affected solely by the company because of the presence of agency gaps between external stakeholders and corporate executives.
Originality/value
However, the firm’s decision to adopt a carbon disclosure strategy depends on the performance of stakeholder pressure (stakeholder salience level) and managers’ perceptions of institutional pressure (institutional pressure centrality level).
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Pieter Pauwels and Ko de Ruyter
Today, services officially represent more than 22% (or about USD 3 trillion) of world trade and are the fastest growing sector of world trade for the last two decades (OECD, 2004;…
Abstract
Today, services officially represent more than 22% (or about USD 3 trillion) of world trade and are the fastest growing sector of world trade for the last two decades (OECD, 2004; WTO, 2001). Optimist analysts believe that services will reach 50% of world trade by 2020 (Hibbert, 2003). Nearly half of the 100 biggest multinationals are service firms with an average revenue of over USD 50 million in 1997 (Hibbert, 2003; Keillor, Hult & Kandemir, 2004). The American McKinsey and Company in management consulting, the Danish ISS in facility management and the Dutch VNU in business information illustrate how service firms may succeed in gaining and holding a global dominant position. On top of the official service economy, the (hidden) service component of product markets is responsible for a major and increasing part of the total value of the world merchandise trade (Brown et al., 2001; Grönroos, 1990). Illustrative in this respect is the critical role of the global service systems of the Swedish/Swiss ABB in automation technology and of the American Caterpillar in construction and mining equipment.
Rafik I. Beekun and Gregory O. Ginn
The strategic management perspective suggests that organizations structure their governing boards to complement the strategic goals of the organization. In contrast, the…
Abstract
The strategic management perspective suggests that organizations structure their governing boards to complement the strategic goals of the organization. In contrast, the institutionalization perspective holds that organizations structure their governing boards to respond to institutional pressures in their task environment. Regardless of which perspective is followed, three structural dimensions of governing boards are expected to be affected: size, diversity of composition, and medical staff representation. A study was conducted to relate the institutional requirements and strategies of acute care hospitals to the structural characteristics of their boards of directors. Results indicated that, after controlling for organizational size and membership in a multihospital system, the governing board structure of 109 acute care hospitals varied significantly both as a function of their overall business strategy and as a function of institutional linkages. However, the proportion of the total variance in board structure accounted for by strategy variables was approximately twice as much as that accounted for by institutional variables.
Kamal Munir, Shahzad Ansari and Tricia Gregg
Recent studies in strategy have highlighted both the successes and failures of applying conventional perspectives in strategic management to developing markets. Within this…
Abstract
Recent studies in strategy have highlighted both the successes and failures of applying conventional perspectives in strategic management to developing markets. Within this debate, Bottom of the Pyramid (BoP) strategies, aimed at exploiting high-volume, low-margins strata at the bottom of these societies, have particularly drawn interest. We critically examine the emergence and evolution of BoP strategies and compare their anticipated outcomes to some of the empirical evidence. We then draw on the concept of global value chains to usefully extend the BoP concept, and suggest areas for further theory building and empirical research. We offer a typology of BoP ventures, and suggest appropriate levels of public–private engagement to achieve the desired social and economic outcomes.
Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and…
Abstract
Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.
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Giovanni Cerulli, Yingying Dong, Arthur Lewbel and Alexander Poulsen
Regression discontinuity (RD) models are commonly used to nonparametrically identify and estimate a local average treatment effect. Dong and Lewbel (2015) show how a derivative of…
Abstract
Regression discontinuity (RD) models are commonly used to nonparametrically identify and estimate a local average treatment effect. Dong and Lewbel (2015) show how a derivative of this effect, called treatment effect derivative (TED) can be estimated. We argue here that TED should be employed in most RD applications, as a way to assess the stability and hence external validity of RD estimates. Closely related to TED, we define the complier probability derivative (CPD). Just as TED measures stability of the treatment effect, the CPD measures stability of the complier population in fuzzy designs. TED and CPD are numerically trivial to estimate. We provide relevant Stata code, and apply it to some real datasets.