Jeffrey Kaufmann, Hugh M. O’Neill and Anne S. York
Prior research on joint ventures using both legal and strategic perspectives provides several transaction cost‐based prescriptions for structuring joint ventures to minimize the…
Abstract
Prior research on joint ventures using both legal and strategic perspectives provides several transaction cost‐based prescriptions for structuring joint ventures to minimize the threat of opportunistic behavior by venture partners. However, the effects of these prescriptions on the subsequent survival of the alliance are largely untested. Using survey data from senior managers responsible for alliance participation to explore these relationships, results show that many of the prescriptions that impact venture formation also impact survival, but in a somewhat different and more complex manner than previously thought. Managers desiring to influence the long‐term survival of a joint venture should focus on the factors that best fulfill their goals for the partnership. By clarifying these issues we seek to inform our understanding of how the transaction cost‐based prescriptions influence alliance survival, enhance managers’ ability to capture the gains from this potentially valuable strategic tool, and raise important considerations for future research.
Details
Keywords
Pol Herrmann, Jeffrey Kaufmann and Howard van Auken
The purpose of this paper is to study the influence of corporate governance and internationalization on research and development (R&D) investments in US‐based international firms…
Abstract
Purpose
The purpose of this paper is to study the influence of corporate governance and internationalization on research and development (R&D) investments in US‐based international firms.
Design/methodology/approach
The paper draws from agency theory to examine the influence of corporate governance mechanisms and internationalization on R&D intensity by the use of longitudinal data from 1991, 1994, 1997, and 2000 in a sample of large, manufacturing US firms with international operations.
Findings
The paper finds that CEO total compensation is positively associated with R&D intensity, whereas equity voting power, insider ownership, and duality are negatively associated.
Research limitations/implications
The findings regarding insider ownership confirms agency theory, in that agents will tend to make decisions to maximize their own utility and thus would be expected to reject R&D investments. In terms of duality, the augmented discretion that CEOs assume when they also hold the chairmanship position may reduce the monitoring function of the board, making it easier for the CEO to avoid engaging in short‐term risky ventures. Additionally, CEOs are likely to demand larger salaries when faced with risky decisions because their employment stability and reputation are at stake.
Practical implications
Boards concerned with firm innovation should focus their decisions on CEO salaries on total compensation rather than on short‐term performance. Total compensation may motivate CEOs to commit to R&D investments that lead to innovations despite the risk of failure and detrimental impact on short‐term profits. Firms should be cautious in granting ownership to board members. Although ownership often stimulates commitment to strategic decisions, over‐involvement of board insiders may result in risk aversion, leading to decreases in R&D efforts.
Originality/value
This paper extends the literature by integrating agency theory and organization learning in a comprehensive framework, showing that governance and internationalization play a significant role in firm R&D intensity.
Details
Keywords
Abstract
Details
Keywords
Societal interest in individuals with high aptitudes, gifts, talents, and extraordinary abilities dates back thousands of years, perhaps as early as 3000 BC. For example, “as…
Abstract
Societal interest in individuals with high aptitudes, gifts, talents, and extraordinary abilities dates back thousands of years, perhaps as early as 3000 BC. For example, “as early as Biblical times, prophets and learned men were extolled for their wisdom and leadership. Plato likewise accorded positions of supremacy to certain individuals based on their superior endowment of intelligence. Even in the Dark and Middle Ages, generally considered inhibitory of talent and innovation, some members of society were ennobled for their intellectual and religious acumen” (Kaufmann, Castellanos, & Rotatori, 1986, p. 232). Some societies identified children with promise and potential and provided them with special education (Freeman, 1979). This was the case with the Emperor Charlemagne who in 800 AD requested that the state provide and pay for such education for children from the common masses (Schwenn, 1985).
Ilgım Dara Benoit, Thomas Brashear Alejandro, Jeffrey Foreman, Christian Chelariu and Shawn Bergman
This paper aims to examine the role of social norms of justice and relationalism in salesperson–sales manager relationships, and their role in developing salesforce commitment and…
Abstract
Purpose
This paper aims to examine the role of social norms of justice and relationalism in salesperson–sales manager relationships, and their role in developing salesforce commitment and turnover.
Design/methodology/approach
This study uses structural equation modeling to analyze survey data from 402 business-to-business salespeople.
Findings
As discrete foundational norms, distributive, procedural and interactional (interpersonal, informational) justice develop higher-order norms of relationalism, which then reflect on increased commitment and reduced turnover intention of the salesforce. Among the justice norms, interpersonal justice has the strongest impact on relationalism.
Research limitations/implications
The paper shows how each justice norm has a distinct impact in shaping relational norms, and that interpersonal justice has the highest impact. In addition, with enhanced relationalism salespeople become more committed and have lower turnover intentions. Future research could use a longitudinal study, present manager’s side in the model and measure and compare the impact of supervisor- versus organization-focused justice.
Practical implications
To enhance relationalism, and thus in turn increase commitment and decrease turnover intention of salesforce, sales managers should pay attention to the salespeople’s perceptions of justice norms (distributive, procedural, informational and interpersonal justice), especially interpersonal justice, as it has the highest impact on relationalism. The specific ways to enhance justice perceptions are discussed.
Originality/value
This paper is the first to show how each justice norm is unique in its importance to shape the relationship between sales manager and salespeople in a way that increases the quality of relational norms, governing the relational process into a highly committed one. It also shows that among the four justice norms, interactional justice has the highest impact on relationalism. In addition, this is the first study to show that relationalism decreases turnover intention of salespeople.
Details
Keywords
Tracy R. Harmon and Merlyn A. Griffiths
The paper seeks to develop a conceptualization of franchisee perceived relationship value (FPRV), defined as the trade‐off between perceived net worth of tangible and intangible…
Abstract
Purpose
The paper seeks to develop a conceptualization of franchisee perceived relationship value (FPRV), defined as the trade‐off between perceived net worth of tangible and intangible benefits and costs to be derived over the lifetime of the franchisor‐franchisee relationship, as perceived by the franchisee, taking into consideration the available alternative franchise relationships.
Design/methodology/approach
A survey of existing literature provided the relevant constructs and concepts for developing a conceptual framework of FPRV.
Findings
The behavioral aspects of the franchise relationship are explored from the franchisee's perspective, providing an alternative viewpoint of the franchise relationship.
Practical implications
The paper affords a useful foundation for making decisions in a franchise relationship, such as the choice of a new franchisee. This entails a comparison of an existing franchisee about which much is known versus a new franchisee about which less is known. FPRV offers a constructive lens to better evaluate this decision and help frame questions concerning the value of social elements within the relationship.
Originality/value
This work is among the first to examine franchisee relationship value and consequences from the franchisee's perspective. Research propositions surrounding the franchisee's behavioral expectations in the relationship are offered, and serve to guide further research in this area.
Details
Keywords
Lee C. Jarvis, Rebekah Eden, April L. Wright and Andrew Burton-Jones
Digital transformations represent an increasingly salient empirical phenomena for institutionalists studying the processes by which institutions evolve, erode, or otherwise…
Abstract
Digital transformations represent an increasingly salient empirical phenomena for institutionalists studying the processes by which institutions evolve, erode, or otherwise change. Yet, there have been few meaningful attempts to engage with insights from the information systems (IS) literature, despite digital innovation and diffusion falling squarely within its domain. This essay makes an initial attempt at integration by offering a two-by-two framework which crosses salient theoretical categories within the IS and institutional literatures. From the former, we draw on concepts of system acceptance and resistance, and from the latter, we draw on concepts of institutional maintenance and change. Each quadrant in our framework represents user responses happening because of, in reaction to, or toward various institutional dynamics. We illustrate each quadrant with data collected as part of a study of digital transformation in the field of public healthcare in Australia. We use our illustrative case to open up research questions which researchers might use to frame their own studies of digital transformations as a form of institutional change. We conclude with a discussion of what other theoretical advances or insights might be yielded from greater collaboration between institutionalists and IS scholars. This essay contributes to the nascent study of digital transformations as a form of institutional change through examining how complementary concepts of the IS and institutional literatures might be used simultaneously to understand the intersection of digital innovation and diffusion and the institutional arrangements governing the fields which they change.
Details
Keywords
Fred W. Morgan and Jeffrey J. Stoltman
Reports that franchisors are sometimes found liable for consumer injuries resulting from faulty products that the franchisor neither designed, manufactured, inspected, nor…
Abstract
Reports that franchisors are sometimes found liable for consumer injuries resulting from faulty products that the franchisor neither designed, manufactured, inspected, nor distributed. Examines the legal doctrines by which these outcomes are reached. In addition, reviews and supports the basic public policy arguments underlying vicarious franchisor liability. Finally, provides managerial recommendations for dealing with this aspect of the legal environment to both franchisors and franchisees.
Details
Keywords
Douglas J. Ernest and Lewis B. Herman
In recent years, guides to hiking trails and wilderness areas have enjoyed an increase in popularity. Here, Douglas J. Ernest and Lewis B. Herman evaluate more than 100 such books.
Lisete Barlach and Guilherme Ary Plonski
This paper aims to investigate the decision-making on new ventures of eight directors or managers of Brazilian accelerators, aiming to understand if the Einstellung effect �…
Abstract
Purpose
This paper aims to investigate the decision-making on new ventures of eight directors or managers of Brazilian accelerators, aiming to understand if the Einstellung effect – mental rigidity – operates during the judgment of new ventures to accelerate.
Design/methodology/approach
Through a quasi-experiment design, the study was conducted with directors or managers of Brazilian accelerators, who were separately interviewed and responded to a psychological test, previously consented, as well as to a simulated decision-making questionnaire.
Findings
The selection process, with the criteria for decision-making, functions as a “template” for the recognition of potentially successful companies and is, indeed, subject to various cognitive biases, among which, the Einstellung effect, characteristic of mental rigidity.
Research limitations/implications
The main contribution of the present study is to identify the cognitive mechanisms, which can negatively affect the evaluation of innovative projects and propose ways that can counteract or mitigate them.
Originality/value
The psychological approach to decision-making, usually studied in chess game context or problem-solving, was applied to a relatively unexplored field that is startups to accelerate. Its originality remains at the interdisciplinary approach, combining knowledge from psychology, decision-making and entrepreneurship.