PPM Papers Coming Soon
This section contains information about articles under review and waiting for publication in next issues of the journal.
National culture: an antecedent for perceived importance of ethics (PIE) in management among US versus Germanic European nationals
Alexandra Rausch, Alpen-Adria-Universität Klagenfurt, Austria
Abstract. Research in business ethics supports a positive relationship between individuals' perceived importance of ethics (PIE) and ethical decision-making. A number of antecedents are discussed in the literature suggesting reasons for why some individuals have higher levels of PIE than others. Since previous research suggests that national culture impacts ethical decision-making, our study investigates national culture as an explanatory variable to predict levels of perceived ethics. In a laboratory experiment we find that U.S. nationals have significantly higher levels of PIE evaluating two unethical vignettes as compared to a matched group of Germanic European nationals. As international management must adjust to different cultures' moral attitudes, values, and behaviors and respect possible differences in ethicality due to nationality, implications for management and business operating in the U.S. and Germanic Europe are offered.
Strategic enactment: an interpretive approach to organizational strategy
Shamim Bodhanya, University of KwaZulu-Natal, South Africa
Abstract. The field of strategy is dominated by strategic choice theory which is based on strongly rational and analytical approaches. As a result, far too much agency is invested in human actors especially those considered to be the strategists. The impact of wider actors on strategy-making is neglected and the relationships between strategy and organization have been under-emphasized. Systems and complexity theory pose challenges to the prescriptions of strategic choice. There is therefore a need to seek alternate explanations. The answer lay in interrogating the ontological underpinnings of how strategy is understood. I offer an alternate conception of strategy by way of a new proposed theory of strategic enactment, based on an interpretive approach and an ontology of constructionism. This work, drawing on systems theory, complexity theory, sensemaking and strategic organization, is significant because it is philosophically reflexive, offers radically different explanations from that of strategic choice, is able to embrace emergent approaches to strategy and identifies constructs such as agency, identity and lifestory which are central to strategy but not given attention in the strategy literature. The relationship between strategic enactment and other theories of strategy together with what it means for application of popular strategy tools are also investigated.
Market reaction to business cooperation announcements - evidence from Germany
Arnt Wöhrmann, Muenster School of Business and Economics, University of Muenster, Germany
Abstract. Joint ventures and other cooperative activities have increased considerably over the last two decades. Yet, there is only limited evidence how investors react when such a business cooperation is announced, whereas there is ample evidence for merger and acquisition announcements. Hence, this paper examines share price response to public announcements of business cooperation in Germany. Unlike previous studies, the present workuses a comprehensive approach and includes a wide variety of business cooperation: strategic alliances, formation of joint ventures, project cooperation, public-private partnerships and value chain cooperation. Using an event study research design, we investigate a sample of 193 announcements of business cooperation issued in the period 2008-2012 across all industries. We generate evidence that German companies experience significant abnormal returns of 0.61% on the day of announcement.Our results further indicate that stock market reactions are associated with managers providing information about the reasons for the business cooperation. We find that stock market reaction is more positive when a short-term motive for the stock market reaction is provided.
Financial and tax instruments for stimulation of enterprises innovative activity
Andrey Nechaev, Irkutsk State Technical University, Russia
Abstract. Purpose: The modernization and transition to the innovative development of all public life spheres are designated as the key priorities for Russian Federation development now. The realization of these country priority goals require the considerable financial resources what causes the interest to the problems credited with the search and choice of the optimal financial instruments for the innovative process financing. Methods: In this article analyzes financial and tax instruments to promote innovation in enterprises. It is necessary to solve problems connected with the chronic underfinancing innovative activity , the imperfection of the mechanism of additional resources attraction to the innovative sphere, the absence of the substantiation of the priorities for investment in the innovative activity to increase its efficiency. Results: The article offers the approach based on complex representation of the basic sources and forms of the investments realization into the innovatively active enterprises. The model of the enterprises innovative activity financing is presented below providing the consolidation of the various categories financial resources of the potential investors by means of the debt instruments issue in Russian Federation. The developed system of the enterprises innovative activity stimulation with the use of the tax planning instruments as well as the financing forms and the financial instruments. Conclusion: financial and tax instruments for stimulation of enterprises innovative activity is allows to provide the enterprises money resources economy and to influence their innovative activity.
Corporate strategy and the weather: towards a corporate sustainability platform
Xiang Li, Faculty of Law and Economics, Chiba University, Japan
Abstract. The effect of weather and climate variation on complex manufacturing and the retail sector and their operations can be significant, unpredictable, and costly. This paper provides a novel conceptual framework for a sustainability platform for competitive advantage. It encompasses metrics of performance, business processes, and product and process innovation to encapsulate risk of weather conditions. A sustainable platform requires deep corporate collaboration across the entire eco-system: the supply chain, the life cycle of production, processes, and managerial functions, and distribution end-points, including recycling and disposal. Sustainability platforms and their implications in practice are discussed.
The dynamics of public and private investment in Malawi
Garikai Makuyana, Department of Economics, University of South Africa, South Africa
Abstract. This paper discusses the dynamics of public and private investment in Malawi: from 1964 to 2011. The evolution of the two components of investment in Malawi is a product of the market intervention and market-based policies. Initially, as a result of the centralized economic management system, public investment expanded rapidly - thereby crowding out private investment growth from 1964 to 1980. The market-based reforms that have been implemented in Malawi since the 1980s, have promoted private investment-economic leadership, limiting public investment to basic infrastructural provision. Although private investment has grown to occupy a position of dominance in all economic activities in Malawi, it still faces some challenges. Some of the challenges facing private investment in Malawi include: poor transport infrastructure; an unreliable power supply; low diffusion in the use of modern information technology; and a generally weak generation and transmission of research, science and technological outputs. From the policy stand point, these findings call upon the Malawian government to address the private sector growth constraints while limiting public investment growth to the private sector's complementary economic activities.
Innovative leadership in organizations: The road to innovation performance
Hugo Skaalsvik, Harstad University College, Norway
Abstract. In order to figuratively portray the development of organizations over the last hundred years, we may say that there has been an evolution from stable organizations, which we might call "frozen pyramids", to the emergence of what we may perceive as "small portable tents". These small portable tents may be related to the emerging Lego-like structures which may be observed in the contours of the present global knowledge economy. This is the general trend confronting organizations today. The problem statement we examine here is: What should organisations do in order to compete in the global knowledge economy? The answer we present is threefold: Firstly, organizations need to take into account that a change is taking place from hierarchical management structures to organizations based on a front-line focus. Secondly, organizations must also understand that the relevance of experiences collapses in light of the technological changes and new value creation processes which are emerging in the knowledge economy. Last, but not least, organizations need to develop a system to "see" where innovations will emerge in order to make superior profits. These three requirements trigger separately and jointly the need for innovative leadership in organizations.
A macro-perspective on co-creation processes on the Internet
Oliver Emrich, Institute of Retail Management, University of St. Gallen, Switzerland
Abstract. Companies increasingly use open innovation and co-creation processes on the Internet. Despite this rising trend in management, the different forms of open innovation on the Internet have only scarcely been investigated from a macro-perspective that systematically categorizes customer-supplier interactions based on a conceptual framework. Using a cross-case study design, we characterize and differentiate six types of customer-supplier processes on the Internet regarding underlying value propositions, value network configurations, and modes of interaction. These co-creation processes can be categorized according to their value propositions that follow different stages of the consumption circle. Each value proposition, as a cohesive element, determines a different value network configuration. We examine how network leaders create different modes of interactions in these value networks that we analyze regarding power, relationship, and coordination mechanisms. Across cases, open innovation on the Internet changes the architecture of the value chain from a single-directed stream to a loop of knowledge exchange that includes almost every vertical stage. Companies therefore cannot assign customer input to a certain functionality but rather must decipher it through interdisciplinary approaches that involve the cooperation of multiple areas. The macro-perspective framework can help companies to identify in which areas they can use open innovation and how to establish co-creation processes in the newly evolving value networks.
Entrepreneurial intentions among students: a case of Tshwane University of Technology, South Africa
Edward M. Rankhumise, Tshwane University of Technology, South Africa
Abstract. This article presents findings of a study conducted among university students to determine perceptions of entrepreneurial intention. Data were collected using a structured questionnaire in a classroom setting, and of the returned questionnaires, 537 were valid for analysis. The participants consisted of students registered for both Entrepreneurship and Entrepreneurial Skills. Factor analysis identified two key factor components relating to self-efficacy. The findings indicate that entrepreneurship education is likely to enhance students' self-confidence to start businesses. This is evident in the optimism displayed by the students. Most of the students indicated that they intended to start businesses as soon as they had completed their studies. Notably, if entrepreneurship education is well developed, it could essentially benefit students intending to follow entrepreneurship as a career.
Effect of organizational climate on marketing performance: an analysis of the perception of marketers in the banking sector of North Cyprus
Cemal Çalıcıoğlu, Department of Marketing, Faculty of Business and Economics,The American University, Cyprus
Abstract. This study sought to verify if the performance of marketers within the banking sector of partially recognized nations followed a similar pattern observable for marketers in banking sectors of widely recognized countries when subjected to certain organizational climatic conditions. A seven point Likert scale questionnaire was administered to a sample of marketers from the banking sector of Northern Cyprus and findings reveal that, while certain organizational climatic conditions triggered low performance levels in widely recognized nations, they had no effect on the performance levels of marketers in partially recognized nations due especially to the fact that such organizational climate is normal in such countries and thus has no power to influence a low performance outcome on the part of marketers.
Semantic social media analytics of CSR image: the benefit to know stakeholders' perspective
Markus Stiglbauer, Friedrich-Alexander-Universität Erlangen-Nürnberg, Germany
Abstract. The issue of corporate social responsibility (CSR) and the use social media have risen in importance over the last few years. Companies are not solely reduced on their economic performance but also have to succeed ecologically and socially. Social media (puts pressure on companies to do so and integrates different stakeholders' expectations towards and perceptions of a company with regard to CSR. Thus, social media are a suitable source for companies to match their CSR self image with their CSR public image. Data mining techniques and related software helps companies to assess their CSR public image and to adjust their CSR when there is a mismatch between self image and public image. This initiates a continuous CSR (control) cycle which helps companies to forecast accuracy of their firm value and to gain long-term competitive advantage against companies which do not manage and control their CSR strategically.
Female entrepreneurial businesses in tourism and hospitality industry in Poland
Alina M. Zapalska, U.S. Coast Guard Academy, USA
Absract. This paper presents characteristics of female-run tourism and hospitality businesses that operate in Poland and examines those factors that influence their performance and contribute to their success during both the transition process of the 1990s and financial crisis of 2007. The paper outlines the specific problems that they faced as their organizations built the competencies needed by small entrepreneurial firms. These firms are examples of sustainable tourism that include orientation towards the enhancement of local prosperity, generation of economic prosperity, and income and employment for workers without affecting the environment or culture of the tourist destinations. The businesses maintained the socio-cultural authenticity of their host communities, conserving their cultural heritage and traditional values, and contributed to inter-cultural understanding.
Is the German corporate governance code futile for investors' assessments? - Family firms' code compliance and implications for company valuation
Carolin Bock, Technische Universität München, Center for Entrepreneurial and Financial Studies (CEFS), Germany
Abstract. The analysis deals with the influence of ownership characteristics on companies' compliance with the German Corporate Governance Code. It is distinguished between family and non-family firms. The sample consists of companies listed in the stock price segment German Prime Standard in 2004, 2007, and 2010, which allows an analysis of code compliance over time. The results of pooled regression models show that family firms have significantly lower compliance compared to non-family firms. Recommendations for the supervisory board and timely reporting and auditing issues are particularly critical. More precise, the definition of age limits and the publication of individual compensation indicate low compliance rates. In addition to family influence, company size and leverage affect code compliance. However, investors do not seem to penalize low compliance, since the level of code compliance has no significant influence on company valuation, as measured by Tobin's Q. This effect holds for family firms as well as for non-family firms.
An analysis of board attributes that contribute to decision quality in state-owned companies in South Africa
Pumela Msweli, Faculty of Management and Law, University of Limpopo, South Africa
Abstract. Using Ordinary Least-Squares (OLS), the paper empirically examines the effect of board attributes that literature has shown to have an effect on board decision quality. The following five variables are incorporated in a model that seeks to identify the strongest predictor of board decision quality: (1) board independence, (2) effort norms, (3) expert knowledge and skill, (4) cognitive conflict and (5) information quality. The findings show that information quality is the strongest predictor of board decision quality followed by expert knowledge and skill. As expected, expert knowledge does not only increase the cognitive capacity of the board, but it also positively affects company competitiveness. The findings also show that cognitive conflict has a negative association with decision quality. The paper argues that political influence exerted by board political appointees may explain the negative relationship between cognitive conflict and board decision quality. The major contribution of this paper is that it provides a 28-item instrument that can be used practically by public entity boards in the reflective process to improve board decision quality. The paper concludes by offering avenues for further research.
Co-marketing capability: scale development and performance implications
Dennis Herhausen, Institute of Marketing, University of St. Gallen, Switzerland
Abstract. Co-marketing alliances are a sustainable source of competitive advantage, though alliances still pose significant management challenges. Little is known about which capabilities allow firms to manage ongoing co-marketing alliances. Drawing on in-depth interviews with marketing alliance managers, the authors differentiate three dimensions of co-marketing capability and develop a multi-dimensional scale for its measurement. They test the relationship of co-marketing capability with alliance performance, as well as the moderating role of boundary conditions specific to alliances, using a cross sectional survey of 287 chief marketing officers. They find amplifying and buffering effects of the alliance context. The empirical results imply that managers who want to benefit from their co-marketing alliances should invest in alliance coordination, inter-firm communication, and knowledge management capabilities, and that alliance tenure, power imbalance among partners, and alliance flexibility affect resource allocation decisions.
Strategizing of social, ecological and economic systems under conditions of the blur of background information
Mikhail Postaliuk, University of Management "TISBI", Russia
Abstract. The article describes characteristic feature of information resources in social, ecological and economic systems as a methodological basis for their efficient management; reveals the essence and sources of information of the blur of social, ecological and economic processes that determine the ambiguity of their assessment and variability of administrative decisions on maintaining sustainable development and coordinated interaction of these processes.
Why the transforming of cable operators in China is delayed?
Yu Yang, Department of Public Administration and Research Centre for Industrial Organization, Southeast University in China
Abstract. China's national cable operator should be established by the end of 2012 while it has not been accomplished so far. This paper analyzes the key factors in the transformation of China's provincial cable operators and explores answers to the question why the transforming of cable operators in China is delayed. An empirical analysis on the transformation speed and quality was performed using data from 1999-2010. The results are not only about speed but tradeoffs between speed and quality. First, the capital-driven model was positively determined to affect both transformation speed and quality. However, the complete control by capital-driven entities could only promote the transformation speed but not quality. The government-driven model positively affects transformation speed but negatively affects transformation quality. Second, the competition with telecom operators delayed cable's transformation but enhanced the transformation quality. Third, close cooperation between cable operators and content improved transformation quality while slowing down the speed of transformation. To a limited degree, these findings provide suggestions for well accelerating ongoing transformation of China's national cable operator, including the well-balanced combination of capital-driven and government-driven entities, the exploration on the comparative advantage of cable operators over telecom companies and the cooperation between cable companies and upstream content partnerships.