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This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders.

The study uses an inductive methodology based on analysing strategies for two exemplar companies, namely, Starbucks and Wagestream. Key insights about how value creation by these companies for multiple stakeholders led to their superior performance, as well as generalizable lessons from the exemplar companies, were identified.

The study finds that the performance of the two exemplar companies can be explained effectively through the framework.

The framework proposed in the study requires a large amount of data about the value created for different stakeholders. Because the framework is comprehensive, managers need to aggregate different dimensions and varied data which can lead to manipulation or misuse by self-serving managers who wish to make their own strategies or performance look good.

The study identified specific actionable ideas that organizations can undertake to enhance the value they create for their various stakeholders.

The study is the first to develop an actionable framework that can be used by companies to craft strategies based on creating or enhancing stakeholder value. The framework is flexible with regard to application in different country, industry or organizational contexts.

The case illustrates the challenges of managing JVs in emerging markets. specifically, after going through the case, students should be able to: i.Analyze the contexts in which firms need to form JVs and evaluate this need in the context of emerging markets such as India; ii.Understand how multinational corporations can achieve success in emerging markets, specifically the role of strategic (broader than the product) adaptation in success; iii.Evaluate the impact of conflict between partners on the short-term and long-term performance of a JV; and iv.Create alternatives, evaluate each alternative’s pros and cons, and recommend appropriate decisions to address the situation after a JV unravels and the organization is faced with quality and other challenges.

McDonald’s, the global giant in the quick service industry, entered India in 1993 and formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or CPRL) to own and operate stores in the northern and eastern zones, and another with Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores in the western and southern zones. Over the next 12 years, both the JVs made steady progress by opening new stores while also achieving better store-level metrics. Though CPRL was ahead of HRPL in terms of the number of stores and total revenues earned in 2008, the year marked the beginning of a long-running dispute between the two partners in CPRL, Bakshi and McDonald’s. Over the next 11 years, Bakshi and McDonald’s tried to block each other, filed court cases against each other and also exchanged recriminations in media. The feud hurt the performance of CPRL, which fell behind HRPL in terms of growth and other metrics. On May 9, 2019, the feuding partners reached an out-of-court settlement under which McDonald’s would buy out Bakshi’s shares in CPRL, thus making CPRL a subsidiary. Robert Hunghanfoo, who had been appointed head of CPRL after Bakshi’s exit, announced a temporary shutdown of McDonald’s stores to take stock of the current situation. He had to make a number of critical decisions that would impact the company’s performance in the long-term.

MBA, Executive MBA and executive development programs.

Teaching Notes are available for educators only.

CSS 11: Strategy.

This paper argues that when incumbent firms counter disruptive threats head-on, they may fail to develop the required new skills. This paper aims to propose an adjacent strategy which proved useful to Fujifilm to counter disruption of its core business of manufacturing photographic film.

The study uses an inductive methodology. Based on a detailed case study of Fujifilm, the study proposes two frameworks: for the conditions under which an adjacent strategy is likely to be fruitful and how firms can make the strategy work in their organizations.

The study finds that an adjacent strategy can be useful to firms under specific circumstances. Not only will the strategy help to counter decline in the core business, but it will also open up new avenues of growth. The success of the strategy requires significant efforts in aligning the leadership and the organization, however.

The frameworks proposed in the study can be useful to incumbent firms in many industries as they battle new disruptive business models and players.

The study’s key argument that incumbent firms can leverage skills from their core business is novel. The study also proposes frameworks that can help firms decide whether an adjacent strategy is appropriate for them and how they can implement it.

This paper aims to develop a generalizable framework for acquisition performance.

This paper attempts to simulate a controlled experiment by examining the strategies and performance of the same acquired company under different acquirers. The inductive methodology is used to derive a generalizable framework about the key factors impacting the performance of the acquired firm.

This study finds that the acquired firm’s performance is better when the environment is munificent and the acquirer uses an appropriate level of integration. Several antecedents of each of these dimensions were identified.

Because the inferences are based on a small sample, the study’s framework needs to be tested in other settings and possibly empirically tested in larger samples to improve its generalizability.

Every year, corporations around the world spend large sums of capital on acquisitions and significant managerial resources on integrating the acquired firms, with decidedly mixed results. The framework proposed in the paper can help managers to improve the performance of their acquisitions.

Unlike prior studies that have quantitatively analysed mixed samples of acquisitions and often arrived at inconclusive results, this study uses the inductive approach based on a few case studies to derive a framework that can be applied across industries. The framework accounts for the key industry and transaction-related contingent factors that can influence the performance of acquisitions under varied circumstances.

This paper aims to fill a gap in the authors’ understanding of alliance-level and the partner-level alliance performance by analysing the influence of behavioural factors for alliances formed by SMEs. Prior studies on the topic have arrived at inconclusive results. This study plugs gaps in prior studies' approach such as deployment of inconsistent performance measures, and omission of contingent factors.

The survey method was used to collect responses about 86 alliances of Indian SMEs. The data were analysed using PLS-SEM technique.

Two relationship capital variables – Trust and Commitment – were found to have differential influence on the two levels of SME alliance performance, and their influence was mediated by the presence of two exchange climate variables – Communication and Conflict.

Since the study employs perceptual measures of performance, it is subject to the limitations of these measures. Similarly, given the relatively small sample size on which analyses were based, the results may need to be replicated in order to generalize the findings.

The study tested a comprehensive model for alliance and partner performance in the context of SMEs. The study's results may be particularly useful to managers of SMEs for focusing on the key factors that influence alliance performance as well as their performance.

The model tested in the study is comprehensive and also accounts for the subtleties about the impact of the two key types of behavioural factors – Relationship capital and Exchange climate – on alliance and partner performance.

The aim of the study was to determine how the different types of resources possessed by a small- and medium-sized enterprise (SME), in conjunction with the environmental uncertainty perceived by the SME's managers, affect SME's alliance formation.

Personal interview method was used to collect responses to a survey instrument from Indian SMEs. Logistic regression technique was used to analyze the responses obtained from 127 manufacturing enterprises.

The study finds that while both tangible and intangible resources possessed by an enterprise positively influence the enterprise's alliance formation, the influence of intangible resources is significantly stronger. The authors also observed the interactive effect between each resource type and environmental uncertainty to be a significant predictor of alliance formation.

The study does not account for temporal effects such as changes in resources and perceived environmental uncertainty, which may affect alliance formation. Similarly, because the data were obtained from a geographically restricted sample, replication of the study in other geographies may be necessary for generalizing the results.

The paper responds to the call for research to link firm resources and perceived environmental uncertainty toward explaining alliance formation by SMEs. The study went beyond making a distinction between the two types of resources by explicating how the interaction of resource type and environmental uncertainty will affect alliance formation.

The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures.

This study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set.

Based on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle.

The study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures.

The purpose of this study is to examine whether the usage of informal finance helps exports of emerging market firms.

The study analyzes a large dataset of observations on emerging market firms. To address the issue of a non-random sample and correct for self-selection in the regression analyzes, this paper uses the two-stage Heckman procedure. In the first stage, this study uses a sample of 74,148 firms from 135 countries over an 11-year time period (2006 to 2016). In the second stage, which includes only firms involved in exports, the analyses are based on 13,608 observations on firms from 135 countries over the same time period.

The study finds that the usage of informal finance helps exports of emerging market firms. Furthermore, the interactive effect between informal finance and home country affluence also influences exports.

The analyses do not account for destination market characteristics such as size and growth.

The study suggests that emerging market firms should not shy away from using informal finance which can often be more convenient, and sometimes cheaper, than formal finance. Informal finance’s timeliness might be particularly useful for pursuing strategies such as exporting.

Studies in international business implicitly assume that finance is available for pursuing strategies such as exports or foreign direct investment. However, formal finance is scarce in emerging markets. By drawing a linkage between informal finance and exports in emerging markets, the study adds to the international business literature. The study also examines joint and interactive effects of home country characteristics and deployment of informal finance on exporting.

This study uses the notions of institutional harshness and uncertainty avoidance in the home country to explain the choice between direct and indirect exporting strategies by emerging market firms.

This study is based on a dataset of 23,256 observations on firms from 32 countries spread over 11 years (2006–2016). Since only some firms undertake exports, the Heckman procedure is used to control for sample self-selection. In the first stage, we predict which firms will choose to export, and, in the second stage, we examine the factors driving the choice made by firms involved in exports between direct and indirect exports strategies.

The analyses reveal that firms are more likely to choose direct exports when institutional harshness is high and when they are from countries with low uncertainty avoidance. We also find that the strength of the relationship between institutional harshness and the choice of direct exports is moderated at high levels of uncertainty avoidance.

While this study's empirical models account for many firm-level factors as well as home country differences discussed in the literature, we acknowledge there could be other temporal, firm or country idiosyncratic factors not included in our analysis driving the key choices examined in the paper.

This study makes three contributions to exporting literature. First, it highlights the drivers of the choice between direct and indirect exports. This choice is an important facet of exporting strategy and has received scant attention in prior IB research. Second, it demonstrates how the choice between direct and indirect exports is impacted by the degree of the home country's institutional harshness and uncertainty avoidance. Third, it offers insights on how the interaction of formal and informal home market institutional factors influences export strategy.

This paper aimed to study business model innovation by a work-integration social enterprise (WISE). Specifically, the study investigated how the organization developed novel value propositions and created and delivered value for multiple stakeholders.

An in-depth qualitative study was conducted at Foreword, a for-profit organization that uses persons with disabilities, mental health conditions and special needs. Data was drawn from semi-structured interviews with stakeholders of the organization and several secondary information sources.

The authors’ inductive analysis revealed the existence of an innovative and powerful business model that is integrated by the organization’s overarching social mission and anchors its ability to deal with multiple conflicting logics such as economic, social, ecological sustainability and community development, to co-create value with and for multiple stakeholders.

The study underscores the need for business model innovation through enhancing value creation for multiple stakeholders for for-profit WISEs. Since the analysis and resulting model in the study are based on a single organization in a geographically small, affluent country with a hands-on government, they may need to be modified before applying in other contexts.

The study identifies several pointers for other social enterprises – specifically the need for managers to build business models appropriate for their organizational and environmental contexts.

The study’s originality stems from the adoption of a stakeholder lens to examine business model innovation. It also proposes an integrative conceptual model of the antecedents and outcomes of business model innovation.