Livia Barakat, Torben Pedersen and Heiko Spitzeck
This study aims to explore means for promoting local and global innovation, where two mechanisms play a key role: R&D investments and training. The authors suggest that, given…
Abstract
Purpose
This study aims to explore means for promoting local and global innovation, where two mechanisms play a key role: R&D investments and training. The authors suggest that, given their different purposes, R&D investments and training moderate the relationships between knowledge sourcing and both local and global innovation in different ways.
Design/methodology/approach
The authors test the hypotheses on a sample of multinational corporations (MNCs) (headquarters of Brazilian multinationals and subsidiaries of foreign multinationals) operating in Brazil, an emerging market. Respondent companies were sourced from the Bovespa Stock Exchange list and a local Best Companies Ranking. Roughly 1,000 companies were invited to participate in an annual survey over an eight-year period (2012–2019) via an online questionnaire. The final sample comprises 108 observations from 87 companies. Hypotheses were tested using a hierarchical linear model in the software R. By measuring the variables at two points in time with a five-year gap, the authors can infer cause and effect relationships.
Findings
The results confirm all of the hypotheses. R&D investments positively moderate the relationship between knowledge sourcing and local innovation (H1) and negatively moderate the relationship between knowledge sourcing and global innovation (H2). Training has a positive moderating effect on the relationship between knowledge sourcing and global innovation (H3) and a negative moderating effect on the relationship between knowledge sourcing and local innovation (H4).
Practical implications
No one practice can enhance the effect of knowledge sourcing on both local innovation and global innovation. Firms looking to foster local innovation should concentrate on increasing R&D investments, while firms wishing to foster global innovation should focus on providing training to their employees.
Originality/value
This study contributes to the literature by discussing the particularities of local and global innovation and exploring mechanisms (i.e. R&D investments and training) that can foster or hinder local and global innovation. The authors advance the extant literature on location choices for R&D activities by exploring the mechanisms that affect the type of market targeted by such innovation (local or global), thereby addressing calls for more studies on how local knowledge activities affect overall MNC innovation. The authors also respond to calls for more studies on the role of human resource management (HRM) practices, such as training, in fostering innovation, especially in emerging markets.
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Elisa de Resende Alt and Heiko Spitzeck
Innovation and Intrapreneurship.
Abstract
Subject area
Innovation and Intrapreneurship.
Study level/applicability
MSc, MBA and Executive Education Programmes.
Case overview
The case on Priscila Matta focuses on the role of social intrapreneurship and social inclusion at Natura, the largest cosmetics company in Brazil and a corporate responsibility leader. Centred in the complexity stemming from dealing with a local community which supplies key ingredients to the Ekos product line, the company's most prominent and innovative brand, it illustrates the difficulties of establishing inclusive forms of business with a traditional community in the northeast of Brazil. Ekos builds on the rich Brazilian biodiversity and traditional knowledge. Brazilian law requires Natura to share the benefits obtained from the access to genetic heritage and associated traditional knowledge with those communities who supply such resources. Implicitly, the case focuses on the role of the social intrapreneur – Priscila Matta – and how she navigated corporate politics to structure the company's community relations. The case demonstrates the difficulties of social intrapreneurs who aim to create sustainable innovations to execute shared value strategies.
Expected learning outcomes
The case has the following four learning objectives: to illustrate best practices in intrapreneurial activities that aim to create shared value – in this case, value for Natura and for the community; to define the role and characteristics of social intrapreneurs – people inside big corporations who drive sustainable innovation; to discuss obstacles the corporate environment presents in the process of social innovation; and to illustrate how individuals within companies can implement a shared value strategy.
Supplementary materials
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Petya Koleva and Muhammad Azam Roomi
The authors are reviewing Social Intrapreneurism and All That Jazz: How business innovators are helping to build a more sustainable world – the last book of the scholarly team…
Abstract
Purpose
The authors are reviewing Social Intrapreneurism and All That Jazz: How business innovators are helping to build a more sustainable world – the last book of the scholarly team David Grayson, Melody McLaren and Heiko Spitzeck issued in March 2014 that aims to demonstrate how business can become an active participant in building a sustainable future by utilizing its capacity and resources.
Design/methodology/approach
By reviewing their book in perspective through the literature, the authors discuss its potential and significance for academic and business society.
Findings
By doing so, the book was identified as a quite beneficial and a valuable source of information for business students with interest in corporate social responsibility and sustainability, individuals having career aspirations in the field of social intrapreneurship, and managers aiming to introduce social intrapreneurism in their organisations.
Originality/value
The paper adds some further insights into the topic of social intrapreneurship and the relevance of this practice to well-known and established concepts focused on the relationship between business and society.
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Heiko Spitzeck, Erik G. Hansen and David Grayson
This paper aims to describe the emerging practice of joint management‐stakeholder‐committees (JMSCs) in which corporate executives take decisions in collaboration with…
Abstract
Purpose
This paper aims to describe the emerging practice of joint management‐stakeholder‐committees (JMSCs) in which corporate executives take decisions in collaboration with stakeholders.
Design/methodology/approach
To identify firms involving stakeholders in their governance arrangements, the authors analysed 51 companies regularly participating in Business in the Community's Corporate Responsibility Index in the UK. The data provided by the index as well as corporate reports were then analysed to evaluate the impact of JMSCs on corporate decision‐making.
Findings
The research finds that JMSCs strongly influence corporate governance mechanisms such as monitoring and measurement as well as the policy development of firms.
Research limitations/applications
The analysis builds on corporate responses given to the questionnaire sent by the Corporate Responsibility Index as well as corporate reports. Future research is encouraged to triangulate findings with stakeholder opinions on the effectiveness of JMSCs.
Practical implications
JMSCs prove to be an effective tool to involve stakeholders in corporate decision‐making processes. Owing to their effectiveness JMSCs are more likely to create trust between firms and their stakeholders.
Originality/value
The paper is the first empirical investigation into the effectiveness of engaging stakeholders in joint management‐stakeholder committees, demonstrating the impact and effectiveness of such engagement.
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Lucas Amaral Lauriano, Heiko Spitzeck and João Henrique Dutra Bueno
– This paper aims to present the state of corporate citizenship in Brazil.
Abstract
Purpose
This paper aims to present the state of corporate citizenship in Brazil.
Design/methodology/approach
The results of a survey of Brazilian companies is used to analyze the state of corporate citizenship in Brazil. The survey was constructed using the methodology developed by Mirvis & Googins on measuring the stage of corporate citizenship, and 172 valid responses from Brazilian companies were received.
Findings
Data suggest that Brazilian companies have an advanced understanding of corporate citizenship and the strategic intention to integrate citizenship into their business. When it comes to leadership, structures, issue management, stakeholder relationships and transparency, however, their maturity in terms of citizenship stays in less advanced stages. In sum, Brazilian companies are advanced in the concept but less developed in the practice of corporate citizenship.
Research limitations/implications
The sample consists of 172 valid responses from companies in Brazil acting in various sectors and thus does not allow the determination of citizenship maturity in selected sectors.
Practical implications
The research points to a gap regarding understanding and practice in corporate citizenship in Brazil. To foster evolution of corporate citizenship, Brazilian companies are advised to work especially on leadership engagement, organizational structures, issue management, stakeholder relationships and transparency.
Originality/value
This is the first study about the maturity of corporate citizenship in Brazilian companies.
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Erik G. Hansen and Heiko Spitzeck
This paper aims to address partnerships between corporations and non‐governmental organizations (NGOs) dedicated to corporate community involvement (CCI). It seeks to focus on how…
Abstract
Purpose
This paper aims to address partnerships between corporations and non‐governmental organizations (NGOs) dedicated to corporate community involvement (CCI). It seeks to focus on how to measure both business and community benefits derived from CCI, especially stressing the need for developing indicators beyond the input level considering outputs and impacts.
Design/methodology/approach
This paper follows a case study research strategy in a subsidiary of a multinational chemical and pharmaceutical company. Data collection is based on triangulation of data using interviews, action research, and documents.
Findings
Based on the case study presented, it was found that, when CCI is an integral part of corporate strategy, it is also possible to develop advanced performance measurement systems for CCI. Such measurement systems include input, output, and impact level metrics for both community and business benefits. Community benefits are best developed and monitored in collaboration with the NGO partner. Further, it was found that the measuring frequency partly transcends conventional reporting periods.
Practical implications
The research should motivate companies that engage in corporate community involvement to go beyond input‐level metrics in measuring the success of such initiatives. However, in order to successfully operate a performance monitoring on output and impact levels, partnering with an NGO that has greater capability in socio‐economic assessments is key.
Originality/value
This paper shows how NGOs can contribute to performance measurement as part of the strategic performance management system of a corporation and how this allows for metrics beyond common input‐level to address output or even impact‐level metrics.
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Heiko Spitzeck and Sonia Chapman
This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer.
Abstract
Purpose
This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer.
Design/methodology/approach
The authors analyze a single case study of a collaboration between BASF, André Maggi Group and Fundação Espaço Eco in Brazil. The objective is to evaluate whether the applied strategy can be considered as a case of shared value creation.
Findings
The case study on the collaboration between BASF, FEE and the André Maggi Group does qualify as a shared value strategy, more precisely as a case of redesigning productivity in the value chain.
Research limitations/applications
This single case study creates some evidence for shared value strategies; however, more research is needed to generalize the results.
Practical implications
The socio‐eco‐efficiency analysis offered by Fundação Espaço Eco creates a differentiation strategy for BASF in Brazil. The work enables BASF's clients to reduce negative impacts while increasing their financial, social and environmental performance.
Originality/value
This paper is the first empirical verification of the shared value concept. It demonstrates that shared value strategies do enhance financial as well as socio‐environmental performance and build stronger client relationships.
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Heiko Spitzeck, Claudio Boechat and Sérgio França Leão
The purpose of this paper is to present a model of corporate social entrepreneurship. The case of Odebrecht demonstrates how companies are using society's sustainability…
Abstract
Purpose
The purpose of this paper is to present a model of corporate social entrepreneurship. The case of Odebrecht demonstrates how companies are using society's sustainability challenges to innovate, in particular by adopting a corporate social entrepreneurship approach that allows the company to differentiate from competitors and create shared value.
Design/methodology/approach
This research applies a comparative case study design in combination with a review of the literature in order to present a model of corporate social entrepreneurship.
Findings
The case study of two major projects within the Odebrecht group allows us to design a model of corporate social entrepreneurship explaining how the company transforms external triggers such as socio-environmental risks into sustainability innovations, creating competitive advantages.
Research limitations/implications
The two case studies provide some evidence of how companies blend sustainability and innovation within corporate social entrepreneurship strategies. More research is needed in order to refine the patterns and components of the corporate social entrepreneurship model.
Practical implications
Integrating sustainability into the innovation process allows Odebrecht to differentiate itself from competitors and have meaningful engagement with stakeholders. This helps the company to grow, especially in developing economy markets, which face similar sustainability challenges as Latin America.
Originality/value
The combination of corporate entrepreneurship models and these case studies of sustainability innovation helps to create a model of corporate social entrepreneurship explaining how companies can transform external sustainability challenges into shared value creation.
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Heiko Spitzeck and Erik G. Hansen
This paper aims to explore how stakeholders are voluntarily granted influence in corporate decision making.
Abstract
Purpose
This paper aims to explore how stakeholders are voluntarily granted influence in corporate decision making.
Design/methodology/approach
The stakeholder governance practices of 46 companies were explored in a multiple comparative case analysis, drawing on publicly available sources.
Findings
The research finds that stakeholders are granted a voice regarding operational, managerial as well as strategic issues. The power granted to stakeholders varies from non‐participation to co‐decision making. The majority of engagements found are a combination of low power and low scope of participation, which are limited in their potential to align the views of those inside and outside the corporate boundaries.
Research limitations/implications
The data used in this research relied on publicly available sources, such as company reports, articles and web sites.
Practical implications
By seeing an array of different stakeholder governance mechanisms managers can reflect on their own approach to stakeholders and see how other companies use stakeholder engagement for scenario planning and innovation.
Originality/value
The paper is the first to empirically analyse a broad range of companies regarding their voluntary stakeholder engagement mechanisms. This design allows the creation of a heuristic for stakeholder governance as well as for identifying clusters.
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This paper seeks to explore patterns of integrating corporate responsibility issues into corporate governance mechanisms and their development over time.
Abstract
Purpose
This paper seeks to explore patterns of integrating corporate responsibility issues into corporate governance mechanisms and their development over time.
Design/methodology/approach
Data from the Business in the Community Corporate Responsibility Index is explored to reveal dominant governance patterns of corporate responsibility issues for the 51 organizations continuously participating in the index since its launch in 2002.
Findings
This research reports three major findings: First, there is increasing CEO leadership for the corporate responsibility agenda of the firm. Second, governance structures developed over time are now increasingly making use of corporate responsibility committees. In 2002 about 15 percent of the firms were using a CR committee, the number had increased by 2008 to more than 60 percent. Third, firms with a CR committee in place outperform others in the Corporate Responsibility Index.
Research limitations/implications
While this paper gives a good insight into which structures companies set up to deal with the corporate responsibility agenda, interviews with practitioners would help to understand why this is the case and in which direction the governance of corporate responsibility is expected to evolve.
Practical implications
To understand how companies are governing their corporate responsibility activities is useful for managers seeking to learn from best practices.
Originality/value
This paper is the first empirical research looking at the development of governance structures for corporate responsibility beyond a single case study design.