• Impact of M&As on organizational performance: The moderating role of HRM centrality    Original Research Article
    Pages 323-332
    Manuela Faia Correia, Rita Campos e Cunha, Marc Scholten
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  • Abstract

    In this study, we examine how the effects of mergers and acquisitions on organizational performance are moderated by human resource management (HRM) centrality. We differentiate three types of ownership change: mergers, bidder, and target acquisitions. The study is anchored on the literatures addressing strategic human resource management and strategic contingencies of intra-organizational power. In an analysis of the data from the 2005 Cranet survey, results showed that (i) formalization attenuated a positive impact of bidder acquisitions and aggravated a negative impact of mergers on performance, but (ii) HRM strategic involvement and centralization of HRM practices boosted a positive impact of bidder acquisitions on performance. The study offers new insights about the role of HRM centrality, and suggests that mergers and acquisitions should be studied as differentiated ownership change processes.

    Governments, entrepreneurs, and positive externalities: A real options perspective     Original Research Article
    Pages 333-347
    Seung-Hyun Lee, Mike W. Peng, Sangcheol Song
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  • Abstract

    This article extends the real options view from the firm level to the societal level, by exploring how government policies facilitate entrepreneurship development. Governments can focus on generating positive externalities, as opposed to avoiding failure for individual firms. Treating the bundle of productive assets within a country as entrepreneurial options, government policies concentrated on maximizing the variance of such a bundle would facilitate entrepreneurship development. Propositions are generated for six policy domains: (1) tax policies, (2) industry structure and entry barriers, (3) foreign direct investment, (4) opening foreign markets, (5) bankruptcy legislations, and (6) moving away from traditional industrial protection.

    Studying motivations of store-loyal buyers across alternative measures of behavioural loyalty    Original Research Article
    Pages 348-358
    Mercedes Martos-Partal, Óscar González-Benito
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  • Abstract

    This study establishes a theoretical framework and provides empirical evidence related to the motivations and benefits sought by store-loyal customers. From a theoretical perspective, the proposed framework distinguishes utilitarian benefits, such as monetary and time savings, from hedonic benefits, such as shopping enjoyment, innovativeness and impulsiveness. From a methodological perspective, this study suggests the appeal of considering different measures of store-loyal behaviour, particularly those based on consumers’ self-assessments, as alternatives to measures based on solely on their budget allocations. The empirical findings indicate moderate consistency between these measures; self-assessment measures are more closely related to consumers’ motivational profiles. They also indicate the greater explanatory power of motivational variables compared with socio-demographic variables for characterising store-loyal buyers. Finally, store-loyal buyers’ general profile is less price sensitive, more time and service sensitive, less concerned about entertainment and new experiences, more likely to feature planning and more brand loyal.

    Customer knowledge management and IT-enabled business model innovation: A conceptual framework and a case study from China     Original Research Article
    Pages 359-372
    Jiebing Wu, Bin Guo, Yongjiang Shi
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  • Abstract

    This paper provides a conceptual framework to explore the linking mechanisms between customer knowledge management and IT-based business model innovation. With a case study from a Chinese leading telecommunications company, this paper attempts to empirically justify the model. In this conceptual model, three types of customer-related knowledge (i.e., knowledge about customer, knowledge from customer and knowledge for customer) contribute to value creation in business model innovation within different mechanisms. Meanwhile, IT increases knowledge accessibility for both firms and customers in value delivery, and enables firms to increase revenue streams with lower costs in value capture for business model innovation. The study links customer knowledge management research to business model innovation literature, and extends the customer knowledge management research through integrating both customer perspective and firm perspective. For practitioners, this study may help companies to understand the linking mechanisms and identify the opportunities of gaining benefit from bridging customer knowledge management and business model innovation.

    Path-dependent evolution of compensation systems in Central and Eastern Europe: A case study of multinational corporation subsidiaries in the Czech Republic, Poland and Hungary      Original Research Article
    Pages 373-389
    Marion Festing, Ihar Sahakiants
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  • Abstract

    This article presents the results of an embedded case study of compensation practices in the subsidiaries of a multinational corporation (MNC) in the Czech Republic, Poland and Hungary. We explore the path dependence of compensation systems in Central and Eastern European (CEE) countries prior to transformation and after the fall of state-socialist regimes. The results show that while major complementary institutions such as extensive state-socialist-type social welfare systems, which enhanced the developmental path during the state-socialist period, are non-existent during transformation, several factors on the macro, organisational and individual levels preserve the path. In addition, there are indications that the path dependence of pay practices in the region studied is moderated by a number of exogenous and endogenous sources of change, namely foreign parent companies of international subsidiaries, international management consulting companies, the growing importance and skill levels of HR professionals and generational change.

    Moving from products to solutions: Strategic approaches for developing capabilities   Original Research Article
    Pages 390-409
    Marco Paiola, Nicola Saccani, Marco Perona, Heiko Gebauer
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  • Abstract

    The move being made by manufacturers of capital goods from offering products to solutions implies that they must make a decision as to whether the capabilities necessary for providing solutions should be developed internally or externally. However, research has often implied an internal capability development option, and focused mostly on multinational companies. Through multiple case studies, this paper provides a deeper understanding of the strategic decisions about the “make or buy” of capabilities. A framework is proposed for classifying the different approaches adopted by firms, consisting of two dimensions. The first one encompasses the service components driving the move from products to solutions, whilst the second one describes whether the capabilities are developed internally, externally or in a mixed way. The empirical application of the framework suggests four distinct strategic approaches relating the service components and the development of capabilities. They are named “selling after-sales services”, “integrating after-sales solutions”, “selling life-cycle solutions” and “orchestrating total solutions”. The description of these approaches enriches the understanding of the ways in which firms move towards the provision of integrated solutions. Finally, the inclusion in the sample of smaller firms allows to extend the discussion about the transition from products to solutions to contexts different from those of multinational enterprises generally studied.

    The impact of sales management controls on the entrepreneurial orientation of the sales department   Original Research Article
    Pages 410-422
    Susanne B. Spillecke, Malte Brettel
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  • Abstract

    This study investigates the importance of an entrepreneurial orientation of the sales department (SEO) as a strategic orientation in a challenging environment and the role of sales management controls in fostering SEO. The relationships are hypothesized to be contingent on the competitive intensity of the environment.

    Based on findings from a survey of 268 SMEs and multiple regression analysis, SEO is an important lever to increase performance. The results also show that the effects of sales management controls on SEO depend on the environmental context.

    Shared leadership effectiveness in independent professional teams      Original Research Article
    Pages 423-432
    Miriam Muethel, Martin Hoegl
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  • Abstract

    Firms make increasingly use of independent professional teams, i.e. teams that are staffed with self-employed experts with high levels of entrepreneurial orientation. As independent professional teams are regularly self-managed, they rely on all team members sharing leadership responsibilities. Existing theory on shared leadership silently assumes that team members always welcome influence by their fellow team members. However, we argue that independent professionals make conscious decisions regarding whether or not to adhere to other team members’ influence attempts. According to social exchange theory, individual behavior is contingent on rewarding actions from others. In this vein, adherence to social influence by other team members has to be seen as rewarding for followership to occur. Applying social exchange theory, we thus point to the importance of taking a leader, a follower and a relationship perspective to understanding shared leadership effectiveness (i.e. actual social influence) in independent professional teams. From a leader-perspective, it is perceived responsibility for team outcomes driving individual influence attempts. From a follower-perspective, on the other hand, it is the appreciation of such attempts leading to their acceptance. Jointly, influence attempts and influence acceptance increase shared leadership effectiveness. Finally, from a relationship-perspective, there are three stages of relationship quality development, i.e. calculus-, knowledge-, and identification-based relationship that contribute to shared leadership effectiveness.