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While scholars have explored how focal firms harness demand-side value through ecosystem development, less emphasis has been placed on understanding how peripheral complementors become competitive. Unlike focal firms, complementors can seldom set value extraction rules. How can complementors lacking critical supply-side resources establish themselves as ecosystem leaders? We conducted a longitudinal analysis of Xiaomi, which began life as a smartphone software complementor within the Android ecosystem but ultimately gained architectural control by orchestrating the creation of a derivative ecosystem. We elucidate how these resource-disadvantaged firms may begin with fueling an "identity movement" among underserved users centered around a pivotal "foothold resource." This movement serves as their entry point into an ecosystem and enables them to build a demand-side community. They then employ "demand pull" as concrete evidence to substantiate their vision, coalesce supply-side resources, and ultimately become an orchestrator. While conventional strategy research emphasizes supply-side resources as drivers of value creation, we explore the synergy between demand-side mobilization and supply-side orchestration. Finally, we illustrate how firms lacking resources craft compelling visions in conjunction with substantive actions to engage evolving target audiences. This approach allows them to secure more advantageous positions within the ecosystem, thereby transforming its structure over time. [ABSTRACT FROM AUTHOR]

In interfirm exchanges, transaction cost economics (TCE) argues that asset specificity, critical for value creation, poses hazards requiring contractual safeguards. TCE assumes actors have foresight to mitigate these hazards even though specificity is typically hard to observe, suggesting that managers' impressions may be biased. Taking a microfoundational approach, we explore how individual negotiators form perceptions of optimal asset specificity and aggregate them to a firm-level assessment that may be influenced through negotiation. We then explore how managers may actively manipulate their counterparts' perceptions to maximize their firm's value capture. We theorize about when this may occur and the implications for contractual governance, value creation and capture, and repeated exchanges—each of which may vary from extant predictions. By symmetrically applying an expanded bounded rationality assumption (including cognitive distortions) and net value capture motivation, we augment contract design research by enabling prediction of when and how managers' strategic behavior may impact exchange outcomes. As a result, this analysis provides a more nuanced understanding of when contract design may intentionally deviate from efficient governance predictions. [ABSTRACT FROM AUTHOR]

We propose a theoretical framework and develop a game-theoretical analysis to advance understanding of the cooperation dilemma in team production. We conceptualize team production as a process where productive and appropriative activities coexist, shifting the focus from whether team members cooperate to what type of cooperative behavior they are willing to adopt. Depending on the extent to which members cooperate to create value and compete to appropriate value, we can observe scenarios of full, partial, and no cooperation. After characterizing member behavior in the different scenarios, we study which form of cooperation can be sustained through repeated interaction, mutual monitoring, and reciprocity. To do so, we allow for different deviations from cooperation, which are then accompanied by different reactions according to an equivalent retaliation strategy. Our focus is on how member behavior and incentives to cooperate relate to team size. We also introduce conceptual elements that describe team production in organizational teams as well as interorganizational relationships. [ABSTRACT FROM AUTHOR]

In leading strategy theories, such as industry analysis and value capture theory, maximizing bargaining power with transaction partners is a critical driver of profitability. However, in recent years a new business model has emerged that contradicts this fundamental precept: With pay-what-you-want (PWYW) pricing, a seller allows a buyer to name any nonnegative price, even zero, for the seller's product or service, and yet, enough buyers make voluntary positive payments, and of sufficient magnitude, that the seller may earn a substantial profit. Motivated by this development, we posit a theory of how value creation and value capture—though generally treated as distinct processes in strategy theory—are in fact strongly connected through the sociopsychological framing of a transaction: If a transaction is framed as a social exchange between the buyer and seller, the seller may capture more value with PWYW than if the seller posts a price or haggles with the buyer over terms in a market-based exchange. Our theory not only offers testable predictions about the conditions determining when PWYW will be successful but also extends strategy theory to consider social exchange as a mechanism for creating and capturing value. [ABSTRACT FROM AUTHOR]

We examine the role of non-venture private equity (PE) firms as intermediaries in the market for corporate assets. We argue that, in order to create and capture value by acquiring established businesses and selling them to corporate buyers, PE firms must possess at least one of three potential advantages: (a) they must be able to identify businesses that are currently undervalued (valuation advantage), (b) they must be able to enhance the intrinsic value of the business (governance advantage), or (c) they must be able to match the business to a more synergistic corporate owner than is immediately available (timing advantage). We discuss why, and under what conditions, PE firms may thus have an advantage in buying, owning, and selling businesses, and derive a set of propositions predicting which targets PE firms are most likely to pursue. Our study thus offers a comprehensive yet contingent theory of non-venture PE, developing an integrated value-based framework to explain this important and growing phenomenon. In doing so, we also offer new insights into the role of intermediaries in strategic factor markets, especially the market for the buying and selling of businesses. [ABSTRACT FROM AUTHOR]

Building on pragmatism, we advance an entrepreneur-as-scientist perspective and depict entrepreneurs as engaging in causally inferential action by forming beliefs, testing these beliefs, and responding to the feedback received. However, this sequence of entrepreneurial actions arrives with a set of companion doubts: namely, doubt about product–market fit, because the entrepreneurs' beliefs are self-chosen; doubt about feedback validity from false positives or false negatives; and doubt about over- and under-fitting in responses to feedback. We discuss the rationality of heuristics deployed by the entrepreneur to overcome these doubts. Our insights contribute to the microfoundations of entrepreneurial action and strategy by explaining how entrepreneurs generate the information to produce value out of uncertainty. [ABSTRACT FROM AUTHOR]

We present a theoretical framework to address the inherent endogeneity problem in entry-timing research by distinguishing the concept of "first-mover benefits" (FMB) from "first-mover advantages" (FMA)—the former being a counterfactual and (usually) unobserved pure treatment effect, and the latter being an actual observed combination of treatment and selection effects. They differ in the baseline to which the first mover's performance is compared—either to the follower's actual performance (for FMA) or to the first mover's hypothetical performance if it had been a follower (for FMB). We consider the implications of this distinction for entry-order choices, and our formal economic model analyzes this distinction to make predictions about biases arising from using FMA as a proxy to estimate FMB, and also about how FMA, FMB, and their difference are affected by interfirm asymmetries in resources and information. [ABSTRACT FROM AUTHOR]

The strategy literature has viewed novel business model design as a universally positive antecedent of high performance in entrepreneurial ventures. Not only have scholars emphasized novelty as a necessity, but they have almost considered it a sufficient condition for performance. Challenging this assumption, we hypothesize that novelty can produce high performance only in combination with specific configurations that feature other value drivers, such as efficiency, lock-in, and complementarity, which help firms not only create value but also capture more of it. Fuzzy set qualitative comparative analysis of two samples of Internet-enabled firms largely supports our hypotheses. We find that novelty alone is insufficient for high performance, even when it appears as a necessary condition for very high performance in new technological environments. Our results highlight how novelty combines effectively with other value drivers (in particular with efficiency) and strategies (in particular with differentiation) contingent on the intensity of competition, firm size, and firms' technological environment. Our study contributes to literature streams on value creation, business model design, and innovation. [ABSTRACT FROM AUTHOR]

Recent developments in stakeholder theory have refined our understanding of value creation via bilateral reciprocity. Generalized exchange is another important microfoundational mechanism in value creation, but because of the potential for free-riding it is surprising that some stakeholders contribute more resources to a firm's value-creating nexus than would be expected based on contractual obligations, and even beyond what bilateral reciprocity would predict. This paper aims to identify the minimum conditions that promote generalized exchange in a firm's value-creating nexus. Because generalized exchange is causally complex—it can occur in multiple contexts and through various combinations of explanatory factors—a configurational theorizing approach is applied. We identify four combinations of attributes that consistently promote generalized exchange and limit free-riding behavior, such that generalized exchange can make a net positive difference in a firm's nexus: the entrepreneurial logic (high rewards, strong institutional drivers), the conformity logic (powerful sanctions, strong institutional drivers), the influencer logic (powerful sanctions, individual or firm drivers), and the identification logic (high rewards, individual or firm drivers). This work provides an important additional explanation for why stakeholder-oriented firms tend to have higher performance, and can also help managers devise policies for increasing the amount of generalized exchange exhibited among their firm's stakeholders. [ABSTRACT FROM AUTHOR]

Business model research has largely focused on business models as real entities, as cognitive and linguistic schema, and as formal representations. Although such research has made important contributions to the management literature, it has largely ignored the interrelationship between business models as schema and business models as formal representations in explaining business model change. We build on grounded cognition theories and the notion of boundary objects to offer a grounded cognition framework of business model change. By developing this framework, we (a) advance understanding of the micro-foundations of strategy by explaining how business model schemas can drive boundary object-based interactions that reveal the extent of business model coherence and affect the decision to change a business model; (b) offer a new pathway by which stakeholders inform value creation and value capture by providing new insights into how physical instantiations of business models and schema work together (via grounded cognition) to increase business model coherence; and (c) explain nuances in the relationship between boundary objects, business model coherence, and the decision to change a business model, and illustrate how the mechanisms that help create a viable new business model can also help overcome an actor's psychological obstruction to making a pivot. [ABSTRACT FROM AUTHOR]

Using a formal model, we develop a theory of how value capture by a firm with market or bargaining power dampens the incentives of other agents in its ecosystem, showing that the implications for value creation depend critically on the nature of the complementarities these agents generate. If complementarities are net positive, then dampening agents' incentives can dramatically reduce the value created in the ecosystem, even to zero—that is, the prospect of a firm's value capture may even prevent the firm itself from operating. Conversely, if complementarities are net negative, dampening agents' incentives can increase value creation by discouraging agents from imposing these negative complementarities on each other. The disincentivizing effects of a firm's value capture can be mitigated by enforceable contracts, cooperative governance, and self-organization by agents, but what is optimal for the agents or the firm may not be optimal for value creation in the ecosystem. [ABSTRACT FROM AUTHOR]

Nonprofits receive tax exemptions in return for social value creation and delivery. While the outcomes of these tax exemptions are often positive, there are value-detracting situations in which the cost of granting the tax exemption is likely to exceed its benefits. To date, explanations for these value-detracting situations remain scattered and discipline-centric. Therefore, the purpose of this paper is to clarify the conditions under which tax-exempt nonprofits detract value from society. We survey 15 years of tax-exempt nonprofit scholarship, across nine disciplines, and identify three valuedetracting conditions: policy-making and regulation intemperance, nonprofitmanagement and governance distraction, and detection and prosecution inconsistencies. These three conditions interact and reinforce each other, compounding the value destruction to society. Overall, our findings offer important policy insights regarding the unintended consequences of tax exemptions, and our framework can be used to identify negative-return situations. [ABSTRACT FROM AUTHOR]

The single-minded pursuit of a short-termshareholder value maximization "mantra" by top managers often results in long-term value destruction for shareholders. We explain this paradox and develop an alternate, market-based approach labeled "competing for essential stakeholders" (CES). CES provides levers that promote long-term value creation for shareholders and for other essential firm stakeholders. Top managers using CES act as "operators" of the firm as a multisided marketplace. Increases in value creation for members on one side of the market make membership more attractive to those occupying the other sides, and vice versa. The result is increased value creation for all essential stakeholder groups. We discuss benefits of and barriers to CES. [ABSTRACT FROM AUTHOR]

The article "The Role of Artificial Intelligence and Data Network Effects for Creating User Value" by Gregory, Henfridsson, Kaganer, and Kyriakou on the creation of user value via artificial intelligence is reviewed. Topics of analysis include user-level price discrimination, the alleged tradeoff between value capture and value creation, and the alleged (mis)categorization of data-driven learning as a network effect.

The article examines Clough and Wu's 2022 response to a 2021 article by Gregory, Henfridsson, Kaganer, and Kyriakou on artificial intelligence and data network effects on user value creation. The authors call for balancing stakeholder interests, the alleged duality of value capture and value creation, and the ownership of data for improvement via artificial intelligence.

The preoccupation within executive education with addressing relevance and resource constraints, with developing the capacity of participants to become reflexive practitioners, and with sustaining long-lasting change in organizations calls for new innovations and formats for executive education. Building on theories of the collective creation of value and learning communities, and employing a methodology based on narrative ethnography, we empirically investigate how collective creation is facilitated to develop a learning community in executive education with a longitudinal study of learning camps. The study and its findings demonstrate how improvisational theater activities can strengthen collective creation to foster the development of a learning community, and how the sense of community supports collective creation. The study develops a framework for developing executive learning communities. [ABSTRACT FROM AUTHOR]

Building on property rights theory, we explore the relationship among property rights, owner-management, and value creation in private firms. We suggest that property rights in the hands of owner-managers create strategic, incentive, and commitment benefits that facilitate value creation. However, the self-incentivizing nature of property rights engenders three control hazards-those related to reliability, egocentrism, and succession- that threaten stakeholder welfare. In order to mitigate these hazards, owner-managersmust establish credible governance. We discuss four governancemechanisms often found in owner-managed firms: commitment to social control, delegation of authority to managers, submission to the hierarchy of a board, and partial transfer of ownership. Although these mechanisms help mitigate control hazards, they also constrain the valuegenerating benefits of owner-management. Owner-managers thus face control dilemmas when determining howto best govern their firms. Our theory sheds new light on the relationship between property rights and value creation, and lays a foundation for exploring the benefits and liabilities of owner-management. [ABSTRACT FROM AUTHOR]

Exploring value co-creation resonates with the ongoing debate concerning how business schools create value for their stakeholders. We suggest that the service-dominant logic (SDL) allows us to shed light on these concerns and advance this debate. In SDL, value creation is an emergent process, and co-production, co-creation and value-in-use are central dimensions in this process. This focus on process represents a departure from the traditional business schools' position, which conceptualizes value as an output. Some schools have begun to embrace process through collaborative engagement such as engaged scholarship, service-learning or the public value model. However, SDL allows us to demonstrate that these approaches tend to focus on co-production andmiss opportunities to extend value creation activities by engaging with a more diverse set of stakeholders as part of the value creation process. We contend that business schools' strategies need to shift towards developingmore direct and intense interaction with their stakeholders. In so doing, they can help support, create andmaintain unique value in use for these stakeholders on an ongoing basis. [ABSTRACT FROM AUTHOR]

Digitalization is typically seen as an operational or strategic issue. We go beyond such a view and present findings suggesting that digitalization may also affect how people relate to a firm. The guiding intuitions of our research are that digitalization may impede firm anthropomorphization—that is, the attribution of humanlike capacities of mind ("agency" and "experience") to firms—which may affect stakeholder relations. Specifically, we suspect that digitalization is likely to undermine a firm's ability to establish and maintain the sort of communal (trusting and cooperative) relations that stakeholder theory sees as crucial for value creation. We find support for these intuitions in four experimental studies (total n = 819): people attribute less experience (but not less agency) to more digitalized firms and this reduces their willingness to affiliate with, trust, or enact prosocial behavior toward such firms. We also find that these effects are stronger for communally oriented respondents, and that one reason that people are less inclined to enter into a relationship with a more digitalized firm is that they believe that this will make it more difficult to enact communal behaviors. Together, our findings suggest that firm digitalization may, ceteris paribus, undermine firms' ability to generate value. [ABSTRACT FROM AUTHOR]

This paper presents a research model for the creation of organizational value through leading by example. I argue that leading by example serves as a unique value-creation driver by enhancing engagement, productivity, and service quality at the business level. Using a strategy-based resource management framework, I also argue that there are synergies between leading by example and the manifestation of organizational core values. My theory is grounded in the strategy-based notion that combining organizational resources—leading by example (practical element) and organizational core values (conceptual element)—optimizes employee engagement, which in turn enhances productivity and service quality. I examine my model empirically using two-time-point panel data derived from three different sources (employees, financial data, and secret shoppers) in a sample of 233 retail stores. The findings provide evidence that leading by example improves productivity and service quality (after taking into account the potential influence of charismatic leadership). The indirect effect of leading by example on productivity and service quality (through engagement) is even stronger when manifestation of organizational core values is high. Contributions to theory, research, and practice are presented. [ABSTRACT FROM AUTHOR]

This study examines how target corporate social responsibility affects the economic gains for acquirers, as reflected in market reaction to an acquisition announcement, from two distinct perspectives: stakeholder preservation versus stakeholder appropriation. The stakeholder preservation perspective suggests that positive market reaction to an acquisition stems from potential new value creation by honoring implicit contracts and maintaining good relationships with target stakeholders. By contrast, the stakeholder appropriation perspective posits that positive market reaction is primarily derived through wealth transfer to acquirers by defaulting on implicit contracts with target stakeholders. Using a data set of acquisitions in the United States, we find that target corporate social responsibility is positively associated with acquirer abnormal returns upon an acquisition announcement. Moreover, stakeholder value congruence between the merging firms strengthens this positive relationship, whereas business similarity between them weakens it. These findings align with the stakeholder preservation perspective and challenge the stakeholder appropriation perspective. [ABSTRACT FROM AUTHOR]

The role of complementary assets across the different stages of a firm's value chain in facilitating value creation and value appropriation from technological innovation remains a key area of interest in strategy and entrepreneurship research. However, current thinking on complementary assets operates with an unstated boundary condition—that relevant assets and asset configurations are relatively well known to the innovating firm. This assumption is applicable under conditions of "risk," wherein decision-makers can know outcomes and probabilities. It is less clear, though, how current insights apply under conditions of "Knightian uncertainty," in which neither outcomes nor probabilities are knowable. The purpose of this paper is to advance a complementary assets theory that accounts for conditions of Knightian uncertainty, thus aligning theory with the contemporary realities surrounding innovating firms. This article highlights an important intertemporal trade-off that existing literature ignores—without accounting for Knightian uncertainty, firms may unknowingly direct complementary assets in ways that favor current value appropriation at the expense of future value creation. We discuss theoretical implications for research on the microfoundations of dynamic capabilities and opportunities for future research on complementary asset configurations across geographic boundaries and across organizations in innovation ecosystems. [ABSTRACT FROM AUTHOR]

We develop theory to explain how CEOs' observable personality traits influence market perceptions of firm risk and shareholder returns. Using a linguistic tool to measure nearly 3,000 CEOs' personality traits, we find that CEOs' observed levels of conscientiousness, neuroticism, and extraversion have important consequences for the perceived riskiness of the firm, as reflected in stock volatility. We also find that these traits alter the relationship between stock risk and returns. Whereas financial economic theory generally posits a positive relationship between risk and returns, on average, we find that this relationship may be either positive or negative for a specific firm depending upon the observed personality of its CEO. Our theory and findings extend upper echelons research by showing that CEOs' personality traits not only affect market perceptions of the firm but also how those perceptions translate into value creation. [ABSTRACT FROM AUTHOR]

I assess how alternative organizational forms affect the ability of multiple actors to appropriate economic rents in activities expected to create social value—defined as broad social benefits to a given population (including more vulnerable groups) minus their associated provision costs. I simultaneously examine three stylized forms: public bureaucracy, involving both public sponsorship and public management; public–private partnerships, with a mix of public sponsorship and private management; and social enterprise, with both private management and sponsorship from impact-oriented investors. Although the extant literature has underscored a supply-side hazard emerging when actors try to appropriate rents by economizing on noncontractible social dimensions, I also examine the implications of a demand-side tradeoff emerging when providers are tempted to focus on more profitable customer segments and exclude more vulnerable populations. In my framework, distinct organizational forms change the managerial incentives to provide inclusive, high-quality social services based on three main factors: the relative attractiveness of beneficiary segments, their cost structure, and the extent of fixed costs to implement and operate services. I thus offer a testable theory of organizational alignment, identifying the comparative merits of each form based on how they incentivize public and private actors to create and appropriate social value. [ABSTRACT FROM AUTHOR]

The need to generate commercial revenues is forcing nonprofit social enterprises to shift their focus from social to economic value creation, which in turn requires them to renew their governance structure to maintain the balance between social and economic logics. This paper looks at how nonprofit social enterprises adjust their boards by appointing board members from non–social enterprise backgrounds. Using behavioral theory, we adopt a dynamic perspective on changes in board composition and evaluate the extent to which decision-making processes change accordingly. To complement the theoretical development, we examine four cases of social enterprises that changed their boards in response to the pressures of marketization and professionalization. We suggest that radical changes to board composition are necessary to govern the dual logics. Furthermore, attention to the organization's bylaws is important to address the effects of bounded rationality and the formation of a dominant coalition in the board's decision-making processes. We conclude with implications for research and practice. [ABSTRACT FROM AUTHOR]

Researchers have long been interested in understanding the motives behind CEOs' actions. On the one hand, CEOs may pursue strategic actions because they are confident they will enhance firm value. Alternatively, CEOs may take actions even when they have low confidence in the value of those actions, perhaps driven by self-interest or social pressures. Although research suggests that CEO option exercises following an acquisition announcement are an ex post behavioral outcome of low CEO confidence in the acquisition's value-creation potential, prior research has not identified any ex ante signals shareholders can look for to assess acquiring CEOs' confidence when the acquisition is announced. We address this concern by exploring a potential early warning signal of low CEO confidence: impression offsetting. We theorize that impression offsetting—measured as other unrelated positive announcements made by the firm in the days immediately surrounding the acquisition announcement—may serve as an ex ante signal of low CEO confidence in the acquisition's value-creation potential, and, as such, will be positively associated with CEO option exercises, an ex post behavioral outcome of low confidence. We test our theory with a sample of 491 large acquisitions and find consistent support for our hypotheses. [ABSTRACT FROM AUTHOR]

We consider types of value created by service-learning projects for partner organizations. We analyzed a sample of 30 international service-learning projects that are part of a single graduate business course to answer (1) what types of value do our partners derive from service-learning projects, and (2) what conditions increase the likelihood of value creation for our partners. We differentiate between two types of value: direct and indirect. Most of our projects generated some indirect value for our partners, but a smaller number of projects generated direct value. We then discuss three dimensions of service-learning projects (partner readiness, project design, and project execution) associated with the creation of direct value for partner organizations. Our manuscript extends the research on service learning by focusing on partner value and provides practical insights for instructors looking to improve service-learning offerings. [ABSTRACT FROM AUTHOR]

Innovation ecosystems are increasingly regarded as important vehicles to create and capture value from complex value propositions. While current literature assumes these value propositions can be known ex ante and an appropriate ecosystem design derived from them, we focus on generative technological innovations that enable an unbounded range of potential value propositions, hence offering no clear guidance to firms. To illustrate our arguments, we inductively study two organizations, each attempting to create two novel ecosystems around new technological enablers deep in their industry architecture. We highlight how ecosystem creation in such conditions is a systemic process driven by coupled feedback loops, which organizations must try to control dynamically: firms first make the switch to creating the ecosystem, following an external pull to narrow down the range of potential applications; then need to learn to keep up with ecosystem dynamics by roadmapping and preempting, while simultaneously enacting resonance. Dynamic control further entails counteracting the drifting away of the nascent ecosystem from the firm’s idea of future value creation and the sliding of its intended control points for value capture. Our findings shed new light on strategy and control in emerging ecosystems, and provide guidance to managers on playing the ecosystem game. [ABSTRACT FROM AUTHOR]

The resource-based view posits that firms achieve competitive advantage from value creation through firm-specific investments held by key stakeholders: employees, suppliers, and customers. Shareholder-dominant (agency) theory holds that all aresidual income claimant rights belong to shareholders, circumscribing other key stakeholders' ability to appropriate value from their investment. However, recent enhancements to stakeholder theory grounded in property rights suggest that such stakeholders may need protection for implicit residual claims. A central purpose of this article is to build a model of the protection devices used to ensure these implicit rights. Individual ex ante devices such as stakeholder ownership only partially incentivize stakeholders' firm-specific investments because they are subject to two types of uncertainties-behavioral and environmental- and individual devices aimed at reducing one type of uncertainty may exacerbate the other. We therefore expand on efforts to establish a stakeholder theory of strategic management by proposing an integrated model of protection devices,which seeks to overcome the incentive dilemma in reducing both uncertainties by reducing barriers to stakeholder firm-specific investment. Our model also explores the conflicts and complementarities associated with device implementation. Finally, we discuss theoretical and practical implications, as well as future research opportunities associated with our model. [ABSTRACT FROM AUTHOR]

This study addresses a long-standing debate as to why escalation in capital costs is so common over the lifecycle of "megaprojects"--the project-based, multiparty organizational contexts that are set up to develop capital-intensive, long-lived technology. We ground our research on three case studies conducted with theoretical alertness to a range of factors that need to be considered from an organizational governance perspective. Our findings trace cost escalation to fundamental changes of the project organizational governance structure and concomitant renegotiations of the value to be created and the value distribution. Specifically, we link substantive cost hikes to (a) early negotiations to agree a value proposition that unifies a core group of autonomous actors under a shared form of governance, and (b) collective action problems that arise as key nonmarket stakeholders are brought into a polycentric governance structure to encourage cooperation in joint local value creation activities. We also associate cost hikes, although less substantive, to market transactions with suppliers and to bilateral agreementswith other nonmarket stakeholders that stay excluded from direct participation in governance-related decisions. We discuss implications to our theoretical and empirical understanding of megaproject behavior and performance. [ABSTRACT FROM AUTHOR]

Crowdfunding enables the organizing of support for victims of a tragedy from a wide range of sources. While this support can be financial or nonfinancial, we know relatively little about the nonfinancial support donors provide. Donors' words can have substantial positive and negative effects on sufferers; however, donors are also often limited in the extent towhich they can provide relevant support due to unfamiliarity with sufferers' lives. Therefore, it is important to investigate the messages donors leave on campaign pages. In this inductive study, we investigate online responses to a school shooting to explain how donors' responses to charitable crowdfunding campaigns manifest. The emergent crowdfunding model of public displays of compassion suggests two core types of responses depending on the nature of the public appeal. Our insights extend the boundaries of the theory on charitable crowdfunding by illustrating the benefits of relaxing implicit assumptions regarding the nature of value creation and the uniformity of donor responses. The study has implications for organization theory on nonmonetary value creation in crowdfunding, heterogeneity in crowdfunding responses, and compassion-organizing and culture-building in organizations. [ABSTRACT FROM AUTHOR]

This paper expands management scholarship by reviewing and integrating literatures describing multiple facets of the relationship between service organizations and their communities. Three perspectives related to organization-community relationships are described: (1) Institutional and demographic influences from host communities influence service organizations, (2) customers as community members use service establishments as resources to create and maintain social relations, and (3) service organizations and communities engage in the joint creation of value. The implications of these perspectives are explored for multiple streams of management research. [ABSTRACT FROM AUTHOR]

Management research has increasingly explored the domains of ecosystems, platforms, and open/user/distributed innovation--governance structures focused on engaging with external communities. While these research areas include substantial empirical and theoretical work and share notable similarities, the literature streams have evolved separately, limiting our ability to understand underlying mechanisms and dynamics. We comprehensively review these distinct literatures to highlight commonalities and induce novel insights. We introduce the overarching concept of the "managed ecosystem" governance structure through which an organization engages external communities for value creation and capture such that the locus of activity resides outside organizational boundaries while the locus of control remains within the organization. It represents a "translucent hand" between the invisible hand of the market and visible hand of the organizational hierarchy. Because the extant literature only lightly addresses incumbent organizations transitioning to these models and rarely touches upon those operating with multiple governance structures simultaneously, we further review and synthesize research on organizational adaptation and ambidexterity. From this integrative review, we identify capabilities to execute managed ecosystems, including "shepherding communities without exploiting them," "managing data and intellectual property," "ecosystem-driven open adaptation," and "ambidextrous governance." We additionally present opportunities for future research across these research domains. [ABSTRACT FROM AUTHOR]

The article focuses on the potential African nations offer for management scholarship and challenges addressed in African management scholarship. It talks about the impact of weak institutional infrastructure and human and financial resource constraints in opportunities for value creation and the implementation of new market-entry strategies in informal markets. It talks about entrepreneurship and labor mobility in African nations and challenges in job creation from Africa's large labor pool.

In this Introduction to the Special Topic Forum on Management Theory and Social Welfare, we first provide an overview of the motivation behind the special issue. We then highlight the contributions of the six articles that make up this forum and identify some common themes. We also suggest some reasons why social welfare issues are so difficult to address in the context of management theory. In addition, we evaluate means of assessing social welfare and urge scholars not to make (or imply) unwarranted "wealth creation" claims. [ABSTRACT FROM AUTHOR]

Firms play a crucial role in furthering social welfare through their ability to foster stakeholders' contributions to joint value creation-value creation that involves a public good dilemma arising from high task and outcome interdependence-leading to what economists have labeled the "team production problem." We build on relational models theory to examine how individual stakeholders' contributions to joint value creation are shaped by stakeholders' mental representations of their relationships with the other participants in value creation, and how these mental representations are affected by the perceived behavior of the firm. Stakeholder theorists typically contrast a broadly defined "relational" approach to stakeholder management with a "transactional" approach based on the price mechanism-and argue that the former is more likely than the latter to contribute to social welfare. Our theory supports this prediction for joint value creation but also implies that the dichotomy on which it is based is too coarse grained; there are three distinct ways to trigger higher contributions to joint value creation than through a transactional approach. Our theory also helps explain the tendency for firms and their stakeholders to converge on transactional relationships, despite their relative inefficiency in the context of joint value creation. [ABSTRACT FROM AUTHOR]

In steering toward the future, innovation managers are commonly advised to dismiss the old and make way for the new. However, such "recency bias" may significantly limit a firm's innovation potential and prevent it from realizing the benefits of past knowledge. We argue that the temporal dimension of innovation deservesmore research attention. Combining prior research on innovation, dynamic capabilities, and family business, we conceptualize a new product innovation strategy called innovation through tradition (ITT) and identify its underlying capabilities of interiorizing and reinterpreting past knowledge. We analyze and discuss the illustrative cases of six long-lasting family businesses (Aboca, Apreamare, Beretta, Lavazza, Sangalli, and Vibram), exemplifying how firms that build long-lasting and intimate links with their traditions can be extremely innovativewhile remaining firmly anchored to the past. These examples help readers visualize theoretical concepts and recognize the potential advantages of past knowledge in terms of value creation and capture. We develop an agenda for future research aimed at improving our understanding of the temporal search processes involved in the ITT strategy, within and outside the family business field, and thus contribute to innovation and organizational learning studies. Managers of nonfamily firms can learn from the family businesses that successfully use ITT to create and nurture a competitive advantage and emulate them by leveraging rather than discarding tradition. [ABSTRACT FROM AUTHOR]

It is commonly believed that retaining target company executives is an important determinant of post-acquisition success. We review existing research, paying particular attention to the different micro-, group-, meso-, and macro-level factors that motivate acquisitions. We conclude that the link between turnover and post-acquisition performance is more complex than implied by existing studies. Retaining executives may lead to higher performance in some acquisitions, as existing studies suggest. However, there are good theoretical arguments for the opposite view; namely, replacing executives may be an equally important source of value creation in other acquisitions. We develop a framework that provides guidelines for understanding when and under what conditions retaining or replacing target executives may contribute to acquisition success. A research agenda that considers acquisition context and the short-, intermediate-, and long-term performance consequences of leadership instability in acquired firms is suggested as a means of moving this research domain forward. The decision to retain or replace target executives is largely a matter of context. Existing studies have not yet captured this complexity. [ABSTRACT FROM AUTHOR]

The soaring popularity of business practices in the social sector has elicited numerous calls from academics and practitioners to adopt appropriate methodologies to quantify and compare social value creation. Contributing scholars consider it a great if not impossible challenge to compare social value creation of different, unrelated heterogonous interventions. We help bridge this research gap by developing a conceptual framework that allows us to compare the effectiveness of social interventions serving the different needs of different treatment groups in different socioeconomic and institutional contexts. We do so by bringing insights from both the literature on subjective well-being and the literature on organizational effectiveness theory into not-for-profit and social entrepreneurship research, as well as into the literature on program evaluation. [ABSTRACT FROM AUTHOR]

We explore whether acquiring CEOs and directors act consistently with the idea that their newly announced acquisitions will increase long-term firm value. Specifically, we examine postannouncement adjustments to CEOs' equity-based holdings and find acquiring CEOs tend to exercise options and sell firm stock following acquisition announcements. Moreover, positive short-term market performance exacerbates this effect. Further, we find directors tend to grant their acquiring CEOs stock options, after acquisition announcement, presumably to more tightly align CEO-shareholder interests. These findings suggest that when CEOs and directors manage acquiring CEOs' equity-based holdings, they do not appear to anticipate long-term value creation from their acquisitions. [ABSTRACT FROM AUTHOR]

We focus on implications of an agreed upon yet little considered conclusion from our 2001 article--that resource value is determined outside the business-level resource-based view. Starting with this premise, we argue that knowledge accumulation from strategy research-especially actionable knowledge about effective versus ineffective managerial judgments--would be stimulated with more balanced attention not only to value capture for the firm but also to value creation for the firm's customers and, ultimately, consumers. To spur such wider attention, we offer an expanded boundary model that includes the demand side, business models, and business ecosystems within the strategy research "umbrella." Our proposal (1) extends what the current scholarly consensus might consider "normal" strategy research, (2) sets specific boundaries to guide future research, and (3) brings value creation for consumers to a more central position in the field. Viewing strategy from this broader perspective requires a shift in mindset, from focusing primarily on the firm to focusing more equally on the consumer, and from a primary emphasis on value capture to an equal emphasis on value creation. Such a shift faces obstacles but likely would spur innovative knowledge generation and result in a more dynamic, yet accumulative and prescriptive, strategy field. [ABSTRACT FROM AUTHOR]

One of the most difficult issues in stakeholder analysis is figuring out which stakeholders and stakeholder groups do not have legitimate claims on an organization (Klein, Mahoney, McGahan, & Pitelis, 2019). When can an executive rightly exclude consideration of some stakeholder groups in assessing the impact of an organization's operations and activities? What are the boundaries on an organization's responsibility? In this article, I review briefly this problem, point to unresolved tension in the management literature, and suggest some fruitful areas for future research. [ABSTRACT FROM AUTHOR]

We review research on the organizational causes (how do organizations contribute?) and consequences (how are organizations affected?) of economic inequality. Our review of 151 conceptual and empirical articles indicates that organizational research on economic inequality not only encompasses a wide range of topics at multiple levels of analysis but also that this broad-scope literature exhibits conceptual ambiguities and lacks overarching organizing frameworks. To address these two issues, we develop an organizational perspective on economic inequality and clarify it as uneven distribution in the endowment and/or access to resources in a society, which manifests in differential abilities and opportunities to engage in value creation. Following this, we integrate the reviewed research to highlight the bidirectional relationship between societal economic inequality and organizations, and eight mechanisms that drive this relationship. We conclude by identifying opportunities for future research on economic inequality in research on management and organizations. [ABSTRACT FROM AUTHOR]

Using selection- and adaptation-based logic, we develop a dynamic matching model to describe how employees are matched with positions to enhance human capital-based value creation. Matching, defined as the process by which individuals are dynamically aligned with organizations and the situations (roles, jobs, tasks, etc.) within them, has historically been examined in silos across a broad range of literatures. Consequently, we know little about how seemingly diverse HR activities, such as recruitment, job design, training, promotions, and terminations, might inform each other through the common lens of matching. Emanating from our review, we integrate relevant literatures to develop a comprehensive matching model (termed the "dynamic matching lifecycle model"). Our model extends prior, more static conceptualizations of matching (like attraction, selection, attrition, or ASA) to include four stages: creation, development, reconfiguration, and termination—based on two broad mechanisms—selection and adaptation. Furthermore, we describe how matching contributes to individual and organizational value creation. By evoking human capital theories, we explain how people and organizations engage in matching across the four stages of the model to create human capital-based value. Our model shows that information and information distribution, organization design, and complementarities play important roles in ensuring successful matching. Promising future research directions are discussed. [ABSTRACT FROM AUTHOR]

The authors discuss value creation in public-private business ventures, commenting on the article "Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective," by I. Kivleniece and B. V. Quelin, published elsewhere in the issue. According to the authors, behavioral docility in management can facilitate intersubjective interaction and overcome threats of stakeholder activism and opportunism through the generation of trust and its associated competitive advantages.

Peer-to-peer marketplaces have fueled the growth of the sharing economy. Despite their proliferation, little systematic evidence and theory exist on how nascent intermediaries build this particular two-sided market. I examine this process through a value creation lens, focusing on how nascent intermediaries govern producers' and consumers' participation. Emerging insights from a theory-building multi-case study suggest that nascent intermediaries' governance choices are associated with controlling supply-side heterogeneity and cross-side interactions, albeit to a different extent (low, high, or balanced). Shifts in intermediaries' intensity of control over time reveal two alternative value creation processes. Intermediaries creating value "from the outside in" transition from low to high control of both aspects of participation. They initially open participation to all willing producers, while they support producers' and consumers' autonomy in determining the terms of their transactions, but subsequently enforce strict control so as to encourage producers' and consumers' conformity to desirable behaviors. Alternatively, intermediaries creating value "from the inside out" continuously balance low and high control of at least one aspect of marketplace participation. They initially recruit a qualified core of producers, who they later leverage to recruit more qualified ones. At the same time, they transition from low to balanced control of cross-side interactions by leveraging producers' and consumers' resources and contributions. These findings highlight the unique value creation challenges in peer-to-peer marketplaces and the evolving role of intermediaries and customers in value creation. Implications for research on business models and value cocreation are also discussed. [ABSTRACT FROM AUTHOR]

For organizations in the sharing economy, the online communities they host, where users interact with each other, are core to value creation. Little is known, however, about the organizational practices used to govern these online communities—to encourage participation and to direct, coordinate, and control interactions strategically. We address this gap with a comparative case study in the Berlin sharing economy and identify three governance practices. Scoping community boundaries encourage participation by demarcating the perimeters of interaction and defining the online community as a distinct social space; nudging social relations encourages participation by providing stimuli for interaction; and steering users exerts a form of social control over interactions. We discovered that organizations rely on both online and offline technologies to govern. Building on these findings, we develop a framework that helps to unpack why organizations use governance practices differently and how these practices relate to the value creation potential of organizations. Our study highlights the dual role of organizations in the sharing economy as curators and guardians of online communities and displays the potential of sharing economy research to enhance knowledge about value creation, online communities, and organizational governance. [ABSTRACT FROM AUTHOR]