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Learning outcomes The learning outcomes of this case are product innovation, the importance of consumer insights and data in marketing and the role of consumer insights in brand revival. Case overview/synopsis This case study is a fascinating look into how the shift from music compact disc (CDs) to streaming has completely changed consumer behavior. This change in attitude led many music labels down one of two paths as follows: shutting down the business or embracing new business models. The case study aims to bring out essential learning from a company, Saregama, that was on the verge of shutting down because of the losses incurred with the shift in consumer behavior from buying music CDs to streaming music for free on every smart device. This shift led most record companies to become shuttered. However, not all were as fortunate as Saregama, who threaded its way toward profitability. This case analyzes how Saregama turned from a loss-making business unit into a profit center by launching a breakthrough product backed by innovative thinking and strong consumer research. The researcher opted for secondary research based on reports from Deloitte and McKinsey & Company and other credible sources to understand the music streaming market in India. The study also includes excerpts from the interview of Vikram Mehra (MD of Saregama India Ltd.) to various media houses and customer reviews on e-commerce sites. Complexity academic level The case is relevant for learners studying for an undergraduate or graduate program and for discussions for modules such as marketing management and international marketing with a focus on product development and strategy. Applicability the case will provide the following exposure to the learners: the difference between corporate and marketing objectives; Using frameworks such as valuable, rare, inimitable, and organization and SAP-LAP to understand the rationale behind strategic decisions; An understanding of the importance of listening to consumers; Using the right marketing elements such as segmentation, targeting and positioning and marketing mix for a competitive marketing strategy. Supplementary materials Teaching notes are available for educators only. Subject code CSS: 8 Marketing.

PurposeThis study addresses three research questions related to employee turnover: (1) does transformational leadership act as a pull-to-stay factor for employees? (2) How well does turnover intention predict actual turnover behavior? (3) Does collective turnover moderate the link between turnover intentions and turnover behaviors?Design/methodology/approachLatent moderated structural equation modeling was employed with longitudinal and multi-source data from car dealerships located in the Seoul Capital Area, South Korea.FindingsThe results indicate a negative relationship between transformational leadership and turnover intentions and a positive relationship between turnover intentions and turnover behavior. Furthermore, the results provide empirical support for turnover contagion as a mechanism triggering turnover intentions into turnover behavior in the workplace.Originality/valueThis study provides a timely and novel contribution to the areas of leadership and employee turnover due to the underexplored research area of transformational leadership, the growing body of literature that questions the fixed assumption in employee turnover studies and the increasing interest in collective turnover. Importantly, existing research has examined the concept of collective turnover from a quantity perspective, aggregating individual turnover to group levels. This study provides a more nuanced, comprehensive evaluation of the quality of turnover, by considering the impact of performance contribution aspects of turnover at the business unit level.

PurposeThis paper aims to investigate the effect of transformational leadership (TL), behavioral integration of top management team (TMT) and team conflict on manager ambidexterity behavior.Design/methodology/approachHierarchical linear modeling has been applied to test the degree of influence of TL and behavioral integration of TMT on manager ambidexterity using data collected from 60 chief executive officers (CEOs) and 322 TMT members of small- and medium-sized enterprises in the Chinese electronic commerce industry.FindingsThe results suggest the following: transformational leadership is positively associated with the behavioral integration of TMT and a high level of TMT behavioral integration strengthens the positive relationship between transformational leadership and manager ambidexterity. Also, team conflict moderates the mediating role of TMT behavioral integration in the relationship of transformational leadership to manager ambidexterity.Research limitations/implicationsFirst, this study does not directly test whether transformational leadership encourages a focus on manager ambidexterity, although the results on behavioral integration draw attention to the usefulness of such leadership. Second, in focusing on manager ambidexterity, this paper omits key variables, especially skills and abilities.Practical implicationsGiven that several aspects of leadership can be learned and adjusted, the findings suggest that organizations can improve their individual ambidexterity by helping the CEOs develop and display transformational leadership through training and mentoring. TMTs were found to rely mostly on the behavioral integration approach (collaborative behavior, quality of information exchange and joint decision-making) and team conflict management. Such reliance, in turn, predicts effective team behavioral coordination and subsequent manager ambidexterity.Originality/valueFirst, this study goes beyond the current research that focuses primarily on ambidexterity at the inter-organizational alliance, firm and business unit levels. This earlier research lacks a conceptually and empirically validated understanding of ambidexterity at the level of the manager. In contrast, by investigating and examining the antecedents of manager ambidexterity behavior, the study develops an individual perspective to elucidate the ambidextrous mechanisms. Second, the study also contributes by explaining how transformational leadership relates to manager ambidexterity. To date, only limited research has disentangled how transformational leaders enhance managers’ teamwork (e.g. behavioral integration) and how such leaders affect the ambidextrous orientation of managers.

Purpose The purpose of this paper is to explore the multi-level ambidexterity challenges through the metaroutine lens. Further, while confronting the ambidexterity challenges, it is found that what is paradox at one level can be understood as tradeoffs at another level. This study uses an in-depth multi-level case study of Tata Motors, an Indian automotive giant highlighting the ambidexterity dynamics across strategic, business unit and functional levels to demonstrate that paradoxes at the strategic level are converted to manageable tradeoffs at the business unit/ operational level. Also, metaroutine-enabled ambidexterity explains a possible way through which multi-level ambidexterity can be promoted and managed within organizations. Design/methodology/approach This study uses a case-based methodology (Eisenhardt, 1989) similar to the approach of Adler et al. (1999). The field research consisted of in-depth interviews, which focus on gathering information from the key involved members in the field, thus enabling us to understand how multi-level ambidexterity is promoted within Tata Motors. A semi-structured interview guide was used to collect data for this study. Findings The metaroutine lens offers an alternative route to explain the multi-level ambidexterity dynamics at Tata Motors. The ambidexterity questions at different levels in Tata Motors seem to be a mixture of paradoxes and tradeoffs. However, a key trend emerges. At the strategic and business unit level, the firm wanted to exploit their existing products and explore new customer segments. At the product level, the strategic and NPI core team wanted to best combine the customer centric explorations with exploitations resulting in cost savings. The ambidexterity questions at these two levels seem to be paradoxes. However, as the authors analyze the functional domains, it appears that each individual domain was working under increased constraints. Hence, the ambidexterity questions at the domain level seem to be a tradeoff based on the constraints faced by individual functional domains. Originality/value This study presents an in-depth multi-level case study of an Indian automotive giant, Tata Motors. The authors present the role of metaroutines in shaping the ambidexterity issues during the development of passenger vehicles. This study builds on the seminal work of Adler et al., 1999, and extends the discussion to the framing of the ambidexterity question as a paradox and/or a tradeoff. The core argument of this paper is that balancing opposite polarities in business models is basically a paradoxical issue in the exploitation/ exploration relationship.

PurposeThis study aims to offer and validate an integrated marketing capability-product innovations framework. Particularly, it aims to examine the role of adaptive marketing capability in enabling market ambidexterity and incremental as well as radical product innovation. Also it intends to investigate the moderating role of transformational leadership between adaptive marketing capability and market ambidexterity.Design/methodology/approachManufacturing firms in Pakistan, an emerging economy, are taken as the context for this study. A designed survey questionnaire is used for data collection. Partial least square technique is employed to empirically validate and test the hypothesized model with a sample of 192 manufacturing firms. Particularly, the two-stage approach in SmartPLS is used to validate measurement models, and structural equation modeling technique is used to test the proposed hypothesis.FindingsThe findings not only confirm that adaptive marketing capability is instrumental to both incremental and radical product innovations but also reveal that adaptive marketing capability serves an important antecedent to market ambidexterity shedding new lights on its mediating role in the relationship of adaptive marketing capability with incremental and radical product innovations. Moreover, the results find that the effectiveness of adaptive marketing capability to support market ambidexterity may involve a possible trade-off between exploitation and exploration when the leaders exhibit a low or high level of transformational leadership behavior.Originality/valueThis study contributes to outside-in strategic perspective and contextual ambidexterity literature by revealing the role of adaptive marketing capability as an important enabler of market ambidexterity which, in turn, allows the firm to simultaneously introduce incremental and radical product innovations. In this way, this study advances the current understanding of the antecedents and consequences of contextual ambidexterity. Also, this study provides insight into the types of capabilities needed for the firm's contextual and employees' behavioral adaptation to simultaneously manage exploitation and exploration within the same business unit which was lacking in the previous literature. Further, this study also offers a novel understanding of the conditional role of transformational leadership between adaptive marketing capability and market ambidexterity.

Purpose This paper aims to present a new framework that describes the relationship among market entry order and timing, the advantages accruing to first-movers and late-movers, entry timing premium (ETP), marketing strategy and enduring market performance of the firms. The framework, empirically tested using data from 241 business executives, expands extant research into new territory beyond first- and late-mover advantages in an attempt to reconcile a few streams of research in the area and provides an entry related, strategic assessment tool (ETP) for the managers. Contribution to marketing strategy theory and managerial implications are also presented. Design/methodology/approach Participants included informants in a firm’s strategic business unit who were the most familiar with a new product’s commercial launch, market condition at launch, competitor offerings, marketing activities and capabilities and eventual integration into or withdrawal from the product’s portfolio. Therefore, for the survey, the study targeted chief executive officers, vice presidents of marketing or sales, product or sales managers, general managers and regional managers. Both preference bias (Narus, 1984) and survivor biases among the respondents were addressed. Findings The research result of this study reveals two very significant aspects of marketing and marketing strategies. First, the importance of financial, pricing and cost strategies further attests to the fiercely competitive nature of the global market today and the tendency for firms to commoditize most products and services. An effective financial and pricing strategy, coupled with a higher level of ETP, is capable of leading a firm to initial market success in the product-market in which it competes. Both ETP (a positional advantage and resource of the firm) and financial and pricing strategies (a deliberate strategic decision of the management) are important to achieve this goal. Research limitations/implications This study is limited in several ways. The effects of entry order and timing on market performance could be dependent on the types of industries and types of product categories involved. However, as the hypotheses were well supported, the “industry specific” factors would provide “fine-tuning” in the future study. Second, the nature of the product (goods or services) may also present varying effects on the relationship studied (for differences between manufacturing and service firms in pioneering advantages, see Song et al., 1999). Services’ intangible nature, difficulty in protecting property rights, high involvement of boundary-spanning employees and customers, high reliance on delivery and quality, and ease of imitation may alter the proposed relationships in the model and the moderating effects. Third, although this study used a “retrospective” protocol approach in the data collection by encouraging respondents to recall market, product and business information, this study is not longitudinal. Lack of longitudinal data in any study involving strategic planning, strategy execution and the long-term effects is no doubt a weakness. In addition, due to peculiarity and complexity with regard to regulation and other aspects in pharmaceutical and other industries, the theory might be limited to a certain extent. Practical implications In all, the integrated framework contributes to the understanding of the intricate issues surrounding first-mover advantage, late-mover advantage, entry order and timing and the role of marketing strategy. The framework provides practitioners guidance as to when to enter a product-market to gain advantageous positions and how to maintain that advantage. Firms that use a deliberate late-mover strategy could also benefit from the research finding in mapping out their strategic courses of action. Originality/value This study believes that the halo effect surrounding first-mover advantage may have obscured the visions of some researchers and managers, and the pursuit of a silver bullet has led to frenzied interests in becoming a “first-mover” or a deliberate “late-mover”. The theoretical framework, which is substantiated by empirical testing, invalidates the long-held claim that entry of a particular kind (first-movers or late-movers) yields any unique competitive advantage. It is a firms’ careful selection of marketing strategies and careful execution of the strategies through effective operational tactics that would lead to enduring competitive advantage, under an adequate level of ETP.

Purpose This paper aims to investigate the effect of institutional logics on the intended resource coordination and integration in extended enterprises (EEs). Design/methodology/approach The qualitative multiple case study approach collected data from three EEs and their hierarchical organizational context in the restructured and privatized railway sector of the Netherlands by observing 40 meetings, conducting 31 semi-structured interviews and 9 feedback meetings and perusing organizational documents. Findings Performance and professional logics characterized the EEs and their hierarchical organizational context. Aligning these logics failed to support the resource coordination and integration in the EEs because of the logics’ resource-centric nature. The co-creation logic in one of the EEs mitigated this resource centrism by addressing the resource personifications and representations of the professional and performance logics. Business unit representatives having hierarchically overlapping organizational positions supported this change process by offering protection from resource-centric logics. Research limitations/implications The chosen research design limits the generalization of the findings but reveals new scientific and practical insights on the role of institutional logics for sustaining EEs. Practical implications The various EE business-units, but especially their contract and concession authorities, need to realize the crippling effect of resource-centric logics on sustaining an EE. Becoming aware of the resource personifications and representations of these logics can assist in addressing their negative effects. Originality/value No previous studies have empirically investigated the effect of institutional logics on the intended resource coordination and integration in EEs.

Purpose This paper aims to examine how management control systems (MCS) can enable and constrain the successful adoption of integrated thinking in an organisation. Design/methodology/approach The study adopts a case study approach, involving in-depth interviews and documentary evidence. Findings The case study organisation perceived trust to be critical to the successful adoption of integrated thinking, and informal social controls with strong endorsement from senior management frequently substituted for more formal technical controls in helping to develop a trust-based organisational culture. These cultural changes improved collaboration and brought economic benefits by encouraging outcome-based decision-making rather than capital-based decision-making, thereby enabling employees to identify and address poorly performing projects earlier. However, established performance measurement systems geared towards reporting and rewarding accounting profits created tension, constraining the potential benefits of integrated thinking by reinforcing business unit protectionism. Practical implications Integrated thinking can be seen as a form of management with the potential to improve organisational outcomes. An improved understanding of factors that might enable or constrain integrated thinking could facilitate its spread. Originality/value Despite several calls for research on the practical implementation of integrated thinking, this has not been studied extensively. To the best of the authors’ knowledge, this study is one of the firsts to contribute to a better understanding of the role of MCS in the successful implementation of integrated thinking in an organisation. The study also contributes to the MCS literature.

PurposeThis study investigates the effect of digital technology adoption on labor demand in the Indonesian banking sector.Design/methodology/approachThis research uses bank-level survey data obtained from the Indonesia Financial Service Authority (OJK) for the period 2010–2017 using semiannual data. This research applies a panel data method using a fixed effect model.FindingsThis study results show that technology adoption affects labor demand significantly in all Commercial Bank Based on Business Activities (BUKU) levels of banks. Technology adoption tends to be a substitute for labor in BUKU I, BUKU II and BUKU III banks in the support and business units. In addition, technology adoption complements labor only in the business unit in BUKU IV banks.Research limitations/implicationsThis research uses a sample of only 40 banks at the regulatory levels of BUKU I, BUKU II, BUKU III and BUKU IV. These 40 banks account for more than 80% of the assets in the Indonesian banking sector.Originality/valueLiterature investigating the effect of the adoption of digital technology on labor demand in the banking sector is still rare in the Indonesian economy. Most of the previous research limited its area of study to the manufacturing industry. This research makes a vital contribution in measuring the adoption of digital technology and its effect on labor demand in the banking sector using the BUKU level classifications of banks.

PurposeMarketing doctrine (MD) refers to a “firm's unique principles, distilled from its experiences, which provide firm-wide guidance on market-facing choices” (Challagalla et al., 2014, p. 4). Drawing on the knowledge-based view, the purpose of this paper is to develop a model of how MD is used and provide the first quantitative test of its relationship with business success.Design/methodology/approachThe authors advance the understanding of MD by providing a mixed-methods paper. In Study 1, a survey-based quantitative study was used. The final sample comprised 349 internationally active strategic business units (SBUs) of Israeli firms. Data were analysed using structural equation modelling. Study 2 provides insights into the use of MD based on 20 in-depth interviews.FindingsThe cross-sectional evidence shows that there tends to be more MD Use in higher-performing firms. The important roles of MD Clarity and MD Knowledgeability as mobilising processes of MD Use are demonstrated. Learning by doing impacts MD Use only through MD Clarity and MD Knowledgeability.Practical implicationsMD is a new strategic tool that can be applied practically. MD may provide a straightforward way of communication between international ventures. MD Use may allow global consistency and flexibility within local markets, simultaneously. Therefore, marketing managers are advised to supplement MD to their portfolio of management tools.Originality/valueThis paper is the first to investigate empirically, through newly developed scales, whether and how MD's core processes (learning by doing, MD Clarity, MD Knowledgeability and MD Use) are related to the success of international ventures.

Purpose The plethora of changes in the corporate governance landscape over the past two decades has the potential to tighten governance regimes and influence the preference of supervisory board members vis-à-vis the involved decision-making role of business unit (BU) controllers and their independent fiduciary role. Stricter financial reporting and compliance requirements may lead organizations to prioritize the latter role. However, recent studies support the need to balance these roles, inducing the potential for role conflict. The purpose of this study is to shed light on the influence of a tight and loose governance regime on this balance as preferred by supervisory board members. Design/methodology/approach This study uses a unique data set from an experiment among 73 supervisory board members. The authors take their perspective because compliance with governance codes and corporate policies are relevant topics for their function. Findings The authors find evidence for the preference of supervisory board members for “all-round” BU controllers who, irrespective of the governance regime, demonstrate substantial levels of fiduciary and decision-making qualities and deal with the resulting role conflict. Originality/value The outcomes of the experiment among supervisory board members provide evidence for their preferences concerning the balance of the two primary controller roles and for the potential of role conflict. The authors have not found studies that provide such empirical evidence.

Purpose This paper aims to analyze the present status of customer support services (CSS) and advocate the re-positioning of support services from an administrative cost center to a strategic profit center. Authors demonstrate how customer support or after sales services can be a source of competitive advantage and revenue generation for firms. Design/methodology/approach The study adopts a conceptual approach grounded in theoretical foundations of service dominant logic, customer loyalty and customer centricity along with practical illustrations from the industry. Findings Following the tenets of theory, review of existing research and analysis of the industry practices, the authors propose a new framework to enable the repositioning of customer service function. The key propositions include establishing customer support as separate business unit and insights center, introducing a new role of a C-level chief customer support officer to lead the customer support unit, adopting a customer-centric culture and process, enabling frontline IT support and investing in frontline employee skills development. Research limitations/implications Academics should examine the potential of customer support, where the strategic importance is low at present, leading to customer dissatisfaction. The new approach and positioning of customer support calls for a new direction for research in this area focusing on enablers, challenges and further implications. To succeed in this competitive era, firms should be conscious of the value of customer service and undertake concrete actions to generate value for all stakeholders. Practical implications Industry can use the new framework and re-position CSS of the organizations. The CSS unit can be different from other business units in the organizations. The CSS would evolve and emerge from the live customer insights. CSS unit can be managed by the C level chief CSS officer. Customer-centric culture would be developed and front line processes can be made customer-oriented by the officer. Thus, this paper and framework would provide new customer-centric directions to the organizations for effective functioning. Originality/value This is the original piece that has emerged from the experience and expertise of the authors.

PurposeThe purpose of this study is to propose a conceptual model for managing supply risk (SR) dependencies in regional supply networks (SNs). Grounded on resource dependency theory (RDT), the research conceptualises the management of SR as buffering and bridging strategies that enable organisations to redefine their SN to cope with SR and as a three-stage transformation mechanism.Design/methodology/approachFour supply failure case studies from the aluminium and the oil and gas industries in the Gulf Cooperation Council (GCC) region inductively provide empirical insights for a revised conceptual framing. Within and cross case analysis on transcribed semi-structured interviews with 11 SN managers focus on the SRs and dependencies associated with the supply failures and an abstraction of risk management (RM) strategies for coping with these failures.FindingsThe analysis finds that underpinning ‘second-order’ buffering and bridging strategies from RDT are four main ‘first-order’ RM strategies: unit independency, organisational adaptation, network reconfiguration and environmental acceptance. These RM strategies are due to controllability and predictability levels that influence investment in RM and reflect the locations for implementing RM practices, i.e. the business unit, the organisation, the SN and the environment.Originality/valueThe article contributes to research through the conceptual framework of SR dependencies and unique insights on SR management within the GCC region. Practically, the research is novel in offering strategic directions for RM evaluations and investments that reflect the controllability and predictability of risk incidents. Such evaluations are potentially valuable in orchestrating regional SNs, for managing GCC companies in global supply chains, and for strategic decisions to expand or outsource to the GCC region.

PurposeData envelopment analysis (DEA) calculates the efficiency of a business unit if all the inputs are creating outputs within a “black box.” Under traditional DEA, the detailed process of that business unit is ignored. However, a network DEA can explain the black box structure and provide efficiency results for sub-sections within any business process. This study aims to propose a network DEA model that explains a bank's total operation.Design/methodology/approachEarlier studies have focused only on bank efficiency ignoring this breakdown. This study departs from them by using a slack-based two-stage network DEA under a novel banking business perspective.FindingsThe results reveal that network DEA provides better benchmarking insights than the traditional DEA. As such, better benchmarking can guide both the banking industry managers and policy makers in Bangladesh.Originality/valueThe major contribution of this study includes dividing a bank's total operation efficiency into two sub-operations: “core operations – collecting deposits and giving loans” and “additional operations – fees, commissions and other services.”

PurposeAnalyze the importance of sustainable innovation strategy applied in manufacturing companies in Indonesia which affects the company's financial performance through several mediating variables.Design/methodology/approachThe population in this research was medium and large manufacturing company business units in East Java. Business units are part of a company considered as the profit center. The business unit as the unit of analysis in this research is part of the organization that: (1) is responsible for the production and marketing of a product or set of products; (2) is formed by product type; (3) has its own competitors which are different from competitors of other business units or divisions within a parent company; (4) has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.FindingsInnovation strategy has a significant effect on financial performance. Human capital does not significantly mediate the relationship between innovation strategy and financial performance. Capital performance and internal performance do not mediate the relationship between innovation strategy and financial performance. Management accounting information system does not mediate the relationship between innovation strategy and financial performance. Internal process performance mediates the relationship between innovation strategy and financial performance. Management accounting information system and internal process performance mediate the relationship between innovation strategy and financial performance.Originality/valueThe difference in findings confirms that this research needs to be conducted. On the other hand, there is no research that has comprehensively tested the mediating effects of Human Capital and Management Accounting Information System in the relationship between Innovation Strategy and Internal Process Performance and the Impact on Corporate Financial Performance. The originality of this research can be seen in the use of contingency theory which narrows the gap between the industrial organization (I/O) paradigm and the resource-based view (RBV) regarding competitive advantage and performance. Specifically, this research introduces innovation strategy, human capital, management accounting information system, and internal business process performance as the contingency factors that affect financial performance. Second, empirically, this research tries to reduce the gap in empirical research by offering new research model and new research establishment at the level of strategic business units (SBU) in manufacturing companies in East Java. This research is expected to be useful for policy decision making, especially for managers who want to improve strategic business unit's financial performance.

PurposeThe purpose of the study is to analyse the stock market response to a spin-off announcement concerning a food and beverage (F&B) business unit.Design/methodology/approachThe study uses a sample of approximately 107 spin-offs, 84 of which are operating in the F&B sector surveyed by the Zephyr–Bureau Van Dijk database. The event study approach is applied to the identified sample. The results demonstrate that the effect of an event on the stock price of a firm allows identification of the abnormal return as the difference between the current and expected returns.FindingsThe study finds that investors adjust positively to the closing of the spin-off deal. The peak of performance is reached on the day of the announcement.Research limitations/implicationsEmpirical evidence could be distorted by the mono-industry database, analysed in a “favourable time span.” The role of information transfer on spin-offs, in terms of diffusion and reduction of information asymmetries, could be developed.Originality/valueThe study represents a pioneering investigation of a category of mono-industry spin-offs. Previous doctrinal contributions underline the fact that abnormal returns corresponding to announcement effects are amplified in the case of information asymmetries but underestimate the effects deriving from the strategic business unit's nature as a spin-off.

Purpose This paper aims to examine the applicability of real options methodology with respect to developing internal transfer pricing mechanisms. A pervasive theme in existing models is their inability to handle the dynamic and volatile nature of today’s business environment, as well as their lack of objective managerial flexibility. The authors address these and other issues and develop a transfer pricing mechanism based on Black–Scholes and the binomial options pricing methodology, which is better suited in today’s dynamic business environment. Design/methodology/approach The authors use a conceptual approach in developing theoretical justifications and show, practically, how a transfer price can be developed using two different real options pricing models. Findings The authors find that real options transfer price mechanism (real options framework [ROF]) can effectively deal with many of the issues that permeate a modern organization with complex multi-dimensional operations. The authors argue that uncertainty and behavioral issues commonly associated with setting transfer prices are better handled using a transfer pricing mechanism that preserves flexibility at the business unit level, the managerial level and the firm level. The approach allows for different managerial styles in both centralized and decentralized sub-units within the same organization. The authors argue that an open multi-dimensional framework using real options is suitable under conditions of uncertainty and managerial opportunism. Practical implications ROF-based transfer pricing may be significant in that firms can use it as a tool to manage an organization by setting the prices centrally and at the same time allowing managers to select the transfer price that best suits their specific situation and operating conditions. This may result in a more efficient and more profitable organization. Originality/value The contribution of the paper is the melding of the ROF from the finance literature with the accounting problem of setting a transfer price for items lacking a competitive market price. The authors also contribute to existing research by explicitly developing a framework that values managerial flexibility, takes into account uncertainty and considers the behavioral aspects of the transfer pricing process. The authors establish the conditions under which a generic real options model is a feasible alternative in determining a transfer price.

Purpose Corporate controls are mechanisms that corporations use to ensure that the processes and/or outcomes of their business units meet corporate expectations. Challenges in measurement of corporate controls have led many researchers to operationalize them as part of the more ambiguous corporate effects construct, instead of addressing them separately. The purpose of this paper is to examine the significance of “fit” between corporate control mechanisms and business unit strategy in performance of business units. Design/methodology/approach The authors use ordinary least squares regression analysis on data collected between 2010 and 2012 from surveys from managers of 142 Iranian corporations and 1,822 of their subsidiaries. The authors also use financial and market data collected by an IDRO division and accessed through partnership in a joint project. Findings The authors found that while the fit between business unit strategy and corporate controls has a significant effect on business unit financial performance, it does not have a similar effect on market performance. The findings demonstrate that when business unit managers perceive that they are subject to a balance of strategic and financial controls with a slightly greater emphasis on strategic controls, then business units have higher financial and market performance, although the difference in financial performance is not significant. Research limitations/implications The authors find that the misfit between corporate controls and business strategies in such cases could negatively affect the performance of the business unit. However, this research also contributes to a better understanding of the importance of strategic controls to the successful performance of business units. The findings show that while the fit between controls and strategy is most critical for achieving financial performance in business units that pursue product leadership, strategic controls play a more prominent role than financial controls in achieving higher financial or market share performance for all business units. Practical implications The findings of the propositions in this research would discourage corporations with tight financial control from engaging in acquisition of businesses considered to be product leaders in their relative product markets. Originality/value Past research focusing on the fit between corporate-level factors and business-level factors and their role on business performance are largely limited to conceptual work. The limited empirical studies completed in the past generally reduce control mechanisms to lack or absence of autonomy. This shortcoming has been mainly due to difficulties in measurement of control mechanisms. The empirical study overcomes these barriers and in doing so, reveals surprising findings related to the effectiveness of different control mechanisms.

PurposeThe purpose of this paper is to examine the mediating effect of intellectual capital (IC), management accounting information systems, internal process performance and customer performance (CP) on the relationship of strategies with financial performance (FP).Design/methodology/approachThe population in this research was medium and large manufacturing company business units in Java. The business unit as the unit of analysis in this research is part of the organization that: is responsible for the production and marketing of a product or set of products; is formed by product type; has its own competitors which are different from competitors of other business units or divisions within a parent company; and has a manager who is responsible and has authority over the planning and implementation of strategies to achieve the specified profit target.FindingsAn innovation strategy that includes product innovation, process innovation and technology has an impact on FP if there is a good internal process performance, reliable management accounting information system and good CP. The internal process performance, which includes operations management processes, customer management processes, innovation processes and regulatory and social processes, optimizes the relationship of the strategy with FP. In this study, IC does not affect CP and internal process performance, nor does the management accounting information system affect FP. However, information systems affect FP through internal process performance and CP.Originality/valueThe originalities of this study are: the use of the continuous innovation strategy in an integrated manner between product innovation and process and information technology – this has never been conducted by other researchers, especially in Indonesia; the use of IC, management accounting information systems, internal process performance and CP as mediating variables; the use of an integrative approach by including variables of IC, management accounting information systems and non-FP as contextual variables related to contingency approaches that have never been conducted in previous research; the modeling of new related concepts with the one developed in the balanced scorecard; and using single mediating and multiple mediating on the influence of sustainable innovation strategies on FP.

PurposeThis study aims to assign efficiency score and then ranking the Indian companies known for best practices to control carbon-emission in the environment. It is destined to benchmark one company for best performance on the basis of selected alternatives among its peer group companies.Design/methodology/approachThe present study has used a hybrid model by applying data envelopment analysis (DEA)-technique for order performance by similarity to ideal solution (TOPSIS) to measure the efficiency and ranking of various decision units on the basis of specified variables.FindingsThe findings of DEA have given the best alternative or best decision-making unit (DMU) among the set of 25 DMUs considered for empirical testing. The DEA technique is used with TOPSIS, which is another popular multi-criteria decision model. The integrated DEA-TOPSIS model has helped to compute the efficiency score of all 25 DMUs of study and also provide a unique rank to each of the efficient unit identified with the help of DEA technique.Practical implicationsThe findings of the study have provided Benchmark Company amongst the companies following best practices for saving energy and having best operating profits too. This benchmark business unit can be studied extensively by peer group companies to compare various parameters affecting their efficiency and profits both.Social implicationsThe findings of the study will promote the socially responsible practices by corporate citizens and adopt the practices to reduce their carbon footprints. It will also suggest to socially responsible investors to select the benchmark and most efficient companies for investment purpose.Originality/valueThe study is original in terms of measuring efficiency and ranking of companies known for best practices for controlling their carbon footprints and suggesting a benchmark company to its peer group. Also, the integrated approach of using DEA-TOPSIS for such type of studies also makes it distinctive from earlier work done in the related field.

Purpose This case describes three strategies that CIOs and C-level executives can utilize to successfully involve non-IT managers to achieve IT-enabled business transformation: create buy-in for a compelling IT-enabled business transformation vision, develop a strong, centralized change management function for IT-enabled transformation and develop a strong non-IT business leadership team.” Design/methodology/approach This case illustrates how CIOs of mid-size companies can lead a successful ERP system implementation by skillfully empowering their mid-level non-IT managers.” Findings The case of “Med-Global,” a global mid-size organization, offers an example of how CIOs and other senior IT executives successfully teamed up with their non-IT business managers. Practical implications Not long after the ERP system installation was complete ‘Med-Global’ was named by Fortune in its list of ‘The 100 Best Companies To Work For.’ Originality/value For three years, Yeliz Eseryel, a Management Information Systems researcher at the College of Business, East Carolina University, observed the implementation of a new company-wide IT system at a mid-sized medical diagnostic equipment company at the invitation of its senior management. During the implementation process, the author did first-hand research while working on many different Enterprise Resource Planning teams. Working as a member of the team, the author became a participant observer of the change process.

PurposeThis paper aims to highlight a limitation of the understanding of agility within organizations, while providing the reasoning and anecdotal example of an effective setting where agility exists, and how this affects firms’ productivity through focusing on the principle of ownership motivation.Design/methodology/approachThe contemporary thoughts and historical research with anecdotal evidence are gathered from small business owners in the insurance industry.FindingsAgility implementation in firms today is mainly top-down team focused. While bottom-up input approaches are prescribed for firm organizational agility implementation, the mantle of ownership and drive are not imparted to employees. The example of a service industry highlights the possibilities of having agility within the organization implemented by direct ownership of most if not all the operations and functions.Practical implicationsThis paper shares a working example of implemented agility and proposes the application within the broader scope of firm operations, particularly for smaller firms looking for sustainable advantages.Originality/valueIt re-looks at actual implementable agile practices by re-imaging the role of employees into functional business units from the bottom-up, rather than from the top-down, as a different perspective of agility.

Supplementary materials Teaching Note includes case synopsis, assignment/discussion questions, suggested readings, teaching plan, methodology, case analysis, what happened, references and data in exhibits. Learning outcomes Appreciating the role of process innovation in enabling growth; Understanding why replication is time consuming and not straight-forward; distinguishing formal and informal dimensions of coordination-mechanisms; Analyzing the differences in replication using template and principles. Case overview/synopsis Entrepreneurs desire to grow their businesses. They look for opportunities, in this case, when an opportunity came in year 2006, the entrepreneur successfully en-cashed. This lead to formation of a strategic business unit (SBU) that grew faster and also became role model. However the main SBU, for which the firm is known, continued past legacy. It is only when they found it difficult to grow, they decided to emulate. However, transition was not easy, it took much higher efforts. In the transformation, the older-SBU found that it is only inspiration, direction and fundamental principles that they can take from the newer-SBU. They have to fight their own battle and evolve solutions themselves. The older-SBU finally did succeed in the replication. The case experiences decision-making on template versus principle route to replication giving the participants enough exposure and thinking on the subject. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Complexity academic level For MBAs and working professional’s training. Subject Code CSS 3: Entrepreneurship

PurposeThe purpose of this paper is to investigate which factors stimulate or hinder the influence management accountants operating at the business unit (BU) level have on the decisions taken by their BU manager(s).Design/methodology/approachThe authors collected data from 119 management accountants in 77 Dutch, multi-divisional organizations, using surveys.FindingsThe study shows that influence on managerial decisions can have two forms: influence on strategic decisions, and influence on operating decisions. Influence on strategic decisions is positively related to the degree of decentralization of an organization. It also depends on whether a management accountant is more extravert and emotionally stable. There is a negative relationship between influence on operational decisions and management accountants’ agreeableness. Not being sufficiently critical may well diminish their influence on operational affairs.Research limitations/implicationsThe authors put the view that management accountants at the BU level can partially affect their own role. This may also be expected by their managers. There are more opportunities for management accountants to influence strategic decisions than operational decisions. This study, however, is limited to Dutch, multi-divisional organizations. The management accountants who completed the survey also belong to the personal networks of master degree students who assisted in the data collection process, so that the sample used is not random. Data collected in another country, or in smaller companies could yield different results.Practical implicationsKnowing more about the complex relationship between BU management accountants’ personality traits and their degree of influence on managerial decisions allows organizations to make better-informed choices about who to appoint in such a role.Originality/valueThis study distinguishes between management accountants’ influence on strategic decisions and influence on operational decisions. At the BU level, these are two distinct concepts. This reinforces findings from earlier studies conducted at the corporate level. In addition, it turns out that specific personality traits of management accountants, at the BU level, affect the influence they can exert on both strategic and operational decisions taken by their manager(s).

Purpose The purpose of this paper is to propose a practical method to elicit – in a manner grounded in fact – the “as is” supply chain strategy that a business unit currently has in place. It also proposes a framework to represent the supply chain strategy of a business unit in a clear and actionable manner. Design/methodology/approach A framework to represent the supply chain strategy of a business unit was developed through inductive theory generation. A method to elicit the current, “as is” supply chain strategy of a business unit was developed through collaborative management research projects and validated by several third-party projects. Findings In different projects – many conducted by third parties – the method was found to be a useful approach to elicit the “as is” supply chain strategy of a business unit. Practitioners found value in representing a supply chain strategy as a conceptual system serving as a logical bridge between the overall strategy and the supply chain operations of the business units. Research limitations/implications The proposed framework may have limited scalability beyond a single business unit. The proposed method may be less useful when the supply chain strategy is undergoing a dramatic transformation, or when the participants from the company are either not fully engaged in the exercise or knowledgeable about the strategic rationale behind activities. Originality/value The paper provides an innovative approach to tap into the tacit knowledge of the organization to reveal the patterns of decisions underpinning its current supply chain strategy and to characterize the supply chain strategy of a business unit as a conceptual system.

Purpose The purpose of this paper is to provide guidelines for practitioners for developing creative strategies and new business models. Design/Methodology/Approach This paper reviews more than 150 interviews with CEOs, directors and business unit heads from across functional areas over the past decade, and captures best practices in strategy development and business modelling. Findings Findings of this study were combined with a review of relevant research papers from leading academic and practitioner journals to identify three critical management practices: challenging mental models, looking beyond logic and encouraging openness for new ideas, which enable organizations to develop creative strategies for building better business models. Originality/Value This paper demonstrates how these three practices combined can serve as a much needed tool for creative strategy design and development, particularly for established companies, when confronted with new forms of competition.

PurposeThe purpose of this paper is to investigate how firms can better manage new product development (NPD) for international markets (IMs). This is not a trivial task as, for most firms, NPD still tends to be rooted in domestic operations.Design/methodology/approachThis study proposes IM information (IMI) use across three stages of the NPD process (concept development, product development and commercialization) as a key driver of international NPD performance. This study also examines two antecedents of such usage: international firm experience; and international innovation culture. A conceptual framework is tested using structural equation modeling, based on data from 137 strategic business units of German firms.FindingsThe use of IMI during commercialization has a U-shaped (positive quadratic) relationship with international NPD performance, whereas curvilinear relationships in the concept and product-development stages cannot be confirmed. Having an internationally oriented innovation culture increases the level of IMI usage in all NPD process stages, while a firm’s international experience only does so in the commercialization stage. Thus, international experience does not necessarily impact access to and understanding of IMI in the early NPD stages.Research limitations/implicationsThis study furthers understanding of NPD phenomena in an international context. However, future studies might consider exploring the mixed patterns of IMI use and NPD performance by looking at new forms and tools of market information management. Moreover, they may uncover more drivers of IMI use and test their frameworks in different contexts.Practical implicationsManagers should emphasize IMI use throughout the whole NPD process, even in the traditionally more R&D-focused product-development stage. Managers should strive to establish a corporate culture that views IMs as opportunities rather than liabilities.Originality/valueThis is the first study both to examine the relative impact of IMI use across all distinct NPD stages simultaneously on international NPD performance and to use quadratic effects to explain the relationship.

Purpose The purpose of this paper is to examine the effect of multidimensional engagement (job engagement and organization engagement) on retail stores’ performance directly and indirectly through job performance and job satisfaction. Design/methodology/approach Data were collected from frontline retail store employees. A variance-based structural equation modeling (PLS) is used to examine the relationships between multidimensional engagement, job performance, job satisfaction, and store performance. The bootstrap method was applied to examine the mediation role of job performance and job satisfaction. Findings This study supports the existence of a multi-dimension engagement consisting of job engagement and organization engagement and the relationship between these engagements. Further, this study reveals that job engagement and organization engagement are important determinants of store performance. Practical implications This study provides an avenue for retail store managers to increase their store performance through the development of employee engagement. To improve the store performance, this study suggests that store managers provide a challenging job and encourage employees to use their creativity in serving customers. It is also important to store managers to support employees in performing their jobs, including procedural fairness in stores. Originality/value This study is one of the first attempts to examine the effect of multidimensional engagement on organization performance at a business unit level (retail store).

Purpose The purpose of this paper is to illustrate how two media firms, Sky Plc and Pearson Plc, adapted, reconfigured, and transformed their businesses to meet the demands of an operating environment characterized by inexorable changes in digital technologies. Design/methodology/approach The over-arching vision, corporate strategies, and financial performance for both firms are examined over two business cycles. Findings These findings illustrate why firms need to create a portfolio business that takes advantage of the market opportunities created by innovative digital technologies, while off-setting the risks associated with digital disruption. Practical implications Business leaders should not dispense with the basic principles of good strategic business unit portfolio management in their attempts to take advantage of the market opportunities provided by a disruptive digital environment. Originality/value This paper provides a highly original insight into how two firms placed ambitious levels of growth at the heart of their corporate strategies to seize the market opportunities provided by an increasingly digital operating environment.

Purpose The purpose of this paper is to explore the multi-faceted role of metaroutines in dealing with nested ambidexterity challenges experienced during new product introductions (NPIs) at Tata Motors, an Indian automotive giant. Design/methodology/approach This study utilizes an in-depth multi-level case study highlighting the ambidexterity dynamics across strategic, business unit and functional levels. Findings The authors visualize the NPI system found in the firm, including the interactions between structure, process and governance, as a metaroutine. Based on this visualization, the authors argue that certain ostensive (like voice of customer, commonality) and performative (role of leadership and creative recombination) aspects of the metaroutine aid exploratory and exploitative learning across levels at Tata Motors. Further, the authors argue that the role of embedded NPI metaroutine aspects in promoting multi-level ambidexterity offers a distinct form when compared with other academically established forms of structural, contextual and temporal ambidexterity. Practical implications This study focuses on the aspects of the NPI metaroutine that enable ambidexterity within the studied firm. The authors argue that apart from the structural, temporal and contextual mechanisms, managers also need to focus on the nuances of NPI metaroutines and their potential to promote ambidexterity across levels. Originality/value The authors visualize the interactions between the process, structure and governance mechanisms, related to NPI, as a metaroutine. The authors argue that metaroutine enabled approaches to ambidexterity offer a distinct form when compared with other academically established forms of structural, contextual and temporal ambidexterity. Also, metaroutine enabled ambidexterity explains a possible way through which multi-level ambidexterity can be promoted and managed within organizations.

Purpose The aim of this paper is to develop the conceptual design of an information and communication technologies (ICT) platform supporting the inbound open innovation (OI) process within the technological developments business unit of Leonardo Defence Systems. Design/methodology/approach After a preliminary phase concerning the context analysis, methodology includes three main steps: conceptualization of functions; preliminary design; and conceptual design of the system/SW architecture. In each of these phases, the authors tried to merge evidence from the scientific literature with empirical insight emerging from the field. Findings Results report the conceptual design proposal for an integrated ICT platform supporting the OI. It includes the conceptualization of main functions, the preliminary design deriving from use cases and the proposal for the overall system architecture and data model. Research limitations/implications The research focuses only on the conceptual design phase; at this stage, the platform has not been still implemented or tested. Also, generalizability concerns may arise from the single-application context. Practical implications The outcoming conceptual design can be useful for firms that open their boundaries to external partners, as well as for software developers which could draw on it. Firms approaching similar OI challenges can re-contextualize the platform to their own setting. Originality/value Originality of this research relies on the attempt to show how ICT can support firms in their OI processes and, secondly, to support firms aiming to create a positive environment that encourages people at leveraging existing external technological opportunities and sources of knowledge. In so doing, a systematic design approach to the definition of the conceptual proposal is also pursued.

Purpose The purpose of this paper is to advance the theoretical development of the content marketing concept and its integration into high-tech marketing theory, in entrepreneurial contexts and from a business model innovation perspective. Design/methodology/approach The paper provides a conceptual overview of content marketing and business model innovation concerning high-tech entrepreneurs. Findings The high-tech entrepreneurial content marketing (HIT-ECM) framework has five delineating elements with a small high-tech firm as the focal point: adapting content marketing in the business model, customizing content and customer profiling, organizational learning and experimenting with the business model, building strategic networks and content marketing and the small high-tech firm’s business model innovation. The HIT-ECM framework considers how high-tech entrepreneurs capitalize on their capabilities and use innovative marketing strategies to sell their high-tech solutions under unpredictable conditions and limited resources. Practical implications From a managerial perspective, HIT-ECM poses five questions managers should ask themselves when they adopt content marketing and integrate it into their existing business models: how can content create value, how novel content development activities reflect on innovating the business model, how will content development reflect on the business model structure, who is involved and what are the revenue streams of content development. Originality/value This is an original paper that presents the HIT-ECM framework for high-tech entrepreneurs to use content marketing and capture customer value through every aspect of their business operations, as well as updating and innovating their business models.

Purpose There are two main industry-sanctioned enterprise risk management (ERM) models, that is, COSO 2004 and ISO 31000:2009, that firms refer to when implementing ERM programs. Taken together, the two ERM models specify that firms should implement ERM programs to meet a strategic need, improve operations and reporting or to comply with government regulations or industry best practices. In addition, the focus of ERM implementation should be either the subsidiary, business unit, division, firm/entity or global level. The purpose of this study is to investigate whether firms are aligning their ERM implementations with these tenets: strategy, operations, reporting, compliance and the level of implementation. Design/methodology/approach The proxy for ERM implementation is the hiring of a Chief Risk Officer (CRO). The research data come from a sample of 122 US firms that issued a press release following the hiring of a CRO between 2010 and 2014. The press releases were retrieved and aggregated through content analysis in LexisNexis Academic. Findings The results reveal that many ERM implementations are occurring at the firm/entity level, and with the exception of reporting, firms consider ERM to be a strategic firm resource capable of improving business operations and compliance initiatives. Originality/value There is a dearth of research studies specifically investigating whether ERM programs adopted by firms are aligned with the specification of COSO 2004 and ISO 31000:2009 frameworks. The apparent lack of a clear understanding of the alignment between the firm ERM programs and the industry’s ERM frameworks may limit the development and implementation of ERM and the eventual realization of the benefits associated with a successful ERM implementation.

Purpose Relative performance evaluation (RPE) is a widely studied topic in the theoretical and analytical accounting and economics literatures. The empirical literature also addresses this topic, with its main focus on executive compensation. This paper aims to extend the findings of the literature by assessing the extent to which RPE is used at lower organisational levels. Design/methodology/approach This study uses a purpose-developed survey to gather data from 325 business unit managers. Findings This study finds that RPE is used to a great extent in the performance evaluation of business unit managers. Additionally, the findings suggest that RPE use increases the informativeness of the performance evaluation through noise reduction. Noise in the performance evaluation is described in literature as the primary antecedent of RPE, but prior research provides only weak empirical support for this claim. Research limitations/implications This study hypothesises a causal relation between RPE and noise in performance evaluation. However, the use of cross-sectional survey data only allows testing associations, not causations. Originality/value The originality and value of the paper lie in the focus on the business unit level and the use of survey data, which are almost completely absent in this area of research that almost exclusively uses archival data at the executive level.

Purpose The purpose of this paper is to provide an empirical insight into the association between the leadership style of top management (using Stogdill and Coons’(1957) consideration and initiating leadership styles), the approach to using controls (using Simons’ (1995) interactive and diagnostic use of controls) and two organisational outcomes (business unit performance and employee organisational commitment (EOC)). Design/methodology/approach Data were collected through a survey of 120 middle-level managers of Australian service organisations. Findings The findings reveal that both the consideration and initiating leadership styles were associated with the diagnostic approach to using controls, while the initiating style was also associated with the interactive approach to using controls. In addition, the diagnostic approach to using controls was found to be associated with both organisational performance and EOC. The authors conclude that the diagnostic approach to using controls mediates the association between both the consideration and initiating styles of leadership with organisational performance and EOC. Practical implications The findings provide practitioners with an important initial insight into the role of leaders in enhancing the achievement of organisational outcomes. From a practical perspective, organisations should consider these findings when recruiting. Specifically, organisations should work towards ensuring that their top-level managers possess such personal leadership traits. This could be achieved either through installing appropriate recruitment procedures and/or through the implementation of management training programmes. Originality/value The study contributes to the literature by considering the interrelationship between two perspectives of the role of leaders, the leadership style and the use of controls

Purpose The purpose of this paper is to propose a model for organizational learning (OL) that can help organizations to transform into a learning-driven organization (LDO); a model that considers the whole ecosystem, its subsystems and considers the importance of technology, digitalization and dataism. The authors seek to answer key questions, specifically, first, what makes an organization learning-driven? and, second, how the learning ecosystem works organization-wide? Design/methodology/approach This paper draws on prior research conducted by the authors in the hospitality sector. Insights were gleaned from both theoretical perspectives and qualitative data drawn from a number of empirical studies. This paper focuses on critically reviewing the literature on OL, and selected organizational development frameworks such as the European Foundation for quality management and investors in people. Findings The authors propose an ecosystem model that entails three subsystems for OL. At this stage, the authors propose a conceptual framework that will be tested in the following part two. Leaders in organizations need to re-design their organizations to incorporate learning at all levels, i.e. individuals, teams and organization-wide. Learning should be an overarching approach within and beyond the boundaries of the organizations; for organizations to learn effectively, learning should be strategized and institutionalized. Research limitations/implications This paper sheds light on the emerging trends in OL in light of the Industry 4.0 revolution with its phenomenal impact on humans and workplace; there is a dire need for research on human-machine balance, role and impact of machine learning and AI technologies. The authors call for setting up an updated agenda for learning and reconstructing learning into the corporate world; not only this but the future research should focus on reviewing and evaluating what did the authors learn about learning and how can the authors further learn, unlearn and re-learn. Practical implications The authors argue that organizations should look into learning as an enabler toward creativity and innovation, which should ultimately lead to excellence and fulfilling the needs of all stakeholders. Organizations should be consciously aware of their emerging intangible assists and proactively encourage their people toward more creativity. Learning can be institutionalized, and the organization transforms into a LDO. Social implications The authors propose an ecosystem model that entails three subsystems for OL. At this stage, the authors propose a conceptual framework that will be tested in the following part two. Leaders in organizations need to re-design their organizations to incorporate learning at all levels, i.e. individuals, teams and organization-wide. Learning should be an overarching approach within and beyond the boundaries of the organizations; for organizations to learn effectively, learning should be strategized and institutionalized. Originality/value The LDO model will help organizations to strategize learning. Strategic learning about understanding a global strategy and how each business unit in an organization contributes its best, most innovative thinking followed by actions that execute the strategic intent of the organization.

Subject area Organisational Development, Organisational Behaviour, Leadership Change. Study level/applicability Master of Business Administration, postgraduate studies, middle or senior managers on open programmes. Case overview The case focuses on the dilemma that Douglas Lines, Nedbank’s Divisional Executive for Strategic Business Unit, South Africa, faced when a new sense of urgency was required to cultivate a culture of collaboration in Nedbank to overcome their silo-mentality. Expected learning outcomes Examine the current and recommend the preferred culture of Nedbank to enable collaboration; critically analyse and evaluate the suitability of the current structure recommend restructuring; insight into how contextual leadership contributes to collaboration in organisations; present judgement of strategies in initiating and enhancing collaboration to overcome silo-mentality. Supplementary materials A DVD is available with link and password. Teaching Plan and slides are available. The four learning outcomes are posed as questions for groups to discuss and model answers are provided as well as linking them to relevant literature. Subject code CSS 7: Management Science.

A major barrier for growth of large multi-business-unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. The Healthcare Solutions business unit of Danaka is a fictional business based on real business experiences. The principle challenge is the need for this business to free up $300 million of current, budgeted R&D projects to fund new, unfunded initiatives to meet its five-year growth objectives. Tools and processes are introduced via interactive spreadsheets that show how to make the tough portfolio decisions on a project-by-project basis.When business leaders set financial goals, they must understand how they are expending their resources. More often than not, significant changes must occur that could be wrenching to the organization. The key learning objectives of the case are: (1) realizing the importance of doing the portfolio analysis, (2) discussing the processes and issues involved in making the changes, and (3) understanding how to put the decision process in place.

Purpose The study investigates the development of three key strategic marketing constructs – market orientation, marketing-related business process capabilities and marketing performance measurement – as well as their performance implications over a period of six years in a Nordic setting. The aim of the study is to shed light on recent developments in contemporary strategic marketing, and thereby to identify managerially relevant points of focus for the future. Design/methodology/approach The study builds on a national-level survey study conducted among Finnish companies of various sizes representing different industries and market positions in 2008, 2010, 2012 and 2014. The data capture the development of strategic marketing over the most recent business cycle, from the upturn to the financial crisis of late 2008, the following downturn and the recent tentative recovery. Findings The findings shed light on the changing role of the three key strategic marketing constructs over the years. Particularly, the study supports the recent notion that market orientation is no longer a differentiator, but a standard. Furthermore, the study sheds light on the varying role of marketing-related business process capabilities over the changing business cycle. Finally, the study shows that marketing performance measurement maintains its beneficial impact on firm performance across years and across the business cycle. Practical implications By investigating recent developments in the field of strategic marketing, taking into account the changing business cycle and the broader trends and developments in the field, this study provides insights for managers of both product and service businesses on how to better adjust their marketing efforts to the contemporary business environment and its economic development. Originality/value To the best of the authors’ knowledge, this is the first comprehensive study on a national level that longitudinally investigates the role and impact of the three key strategic marketing constructs, with a particular focus on their relative performance impact over time.

Purpose – In this paper, the authors will argue that owners as one type among many other types of actors is essential to bring into the picture when analyzing developments in industrial and other kinds of business networks. The direct relationship between owners and the business unit, the firm, is one type of relationship. But owners, as well as the firm as such, also possess several indirect relationships that could be highly relevant in many business network situations. The purpose of this paper is to investigate both direct and indirect relationships when analyzing the role of owners. Design/methodology/approach – The empirical base is coming from an earlier Swedish investigation of the development of a steel company in the course of 75 years. In this study the authors mapped ownership and the role owners had in financial and other terms. The authors also made a detailed investigation of the development of the company in terms of important customers and suppliers, i.e. its business network. In total it means that the empirical data give us a quite multidimensional picture of the role and importance of ownership over a substantial time period. Findings – The owners were for this company not at all important as financers. The monetary flow went, during the whole period, from the company to the owners. The owners, however, played a far more important role in an indirect way, affecting the way the company designed single business relationships as well as the combined network of those relationships. The owners were more important as network designers than as financial contributors. The analysis focusses on two topics: the ways in which owners contributed to the development of the firm during several phases of its development and similarities and differences between the various types of ownership (an entrepreneur – owner, a customer firm, a bank, a family industrial sphere). Originality/value – The results indicate that the existence and importance of indirect relationships is of vital importance when analyzing the importance of owners in business networks. These indirect relationships are usually not analyzed in contemporary research about ownership. This an interesting and important topic and the authors hope that this study will be followed by many more. The addressed topic is especially relevant for the policy implications.

Purpose Strategic uncertainty from emerging threats and opportunities in the business environment can significantly impact managers’ abilities to successfully implement their business strategy. A key strategic control and governance mechanism designed to enable managers to respond to strategic uncertainty is a strategic performance measurement system, such as the balanced scorecard (BSC). This study aims to investigate whether strategic uncertainty is associated with the diversity and types of performance measures in a BSC, which are used by managers for various strategic control and governance purposes. Design/methodology/approach A survey of senior-level managers within strategic business units of Australian Stock Exchange listed organizations was conducted. Findings This study finds that the extent to which managers face strategic uncertainty is positively associated with performance measurement diversity. Further, managers faced with greater strategic uncertainty use performance measures relatively more to evaluate subordinates’ performance, communicate business strategy, track performance against targets, identify problem areas and guide future directions. Outcome measures are used to a greater extent for all five purposes, whereas leading measures are used more only for future-oriented purposes. Practical implications Strategic performance measurement systems, such as the BSC, can and are being used to provide managers with the information and control mechanisms necessary to meet the challenges associated with strategic uncertainty. Originality/value This study provides the first evidence on the relations between strategic uncertainty, performance measurement diversity and managers’ use of performance measures for five key purposes. Understanding these relations is important, as managers need to formulate appropriate responses to strategic uncertainty, to protect and create value by exploiting emerging opportunities and managing associated threats.

Purpose The purpose of this paper is to present 13 propositions about how internal strategic fit (often referred to as fit) impacts the business performance of low cost and differentiated services. It then uses these relationships to develop two “fitness ladder” frameworks to help practitioners understand how to improve fit given their business strategy (low cost or differentiation) and performance objectives (operational, financial or competitiveness). Design/methodology/approach In total, 11 strategic business units were studied that perform differently and provide a range of low cost and differentiated services to understand how changes in internal strategic fit impacted business performance over a 7 year period. Findings The findings suggest aligning systems with market needs does not improve performance. Instead, firms serving low cost markets should first focus managers’ attention on processes and centralise resources around key processes, before reducing process flexibility and automate as many steps as possible to develop a low cost capability that is difficult to imitate. By contrast, firms serving differentiated markets should first focus managers’ attention on customers and then locate resources near them, before increasing customer contact with their processes and making them more flexible so they can develop customer knowledge, relationships and services that are difficult to imitate. Research limitations/implications Some significant factors may not have been considered as the study only looked at the impact of 14 internal strategic fit variables on 7 performance variables. Also, the performance changes may not be a direct result of the strategic fit improvements identified and may not generalise to other service organisations, settings and environments. Practical implications The strategic fit-performance relationships identified and the “fitness ladder” frameworks developed can be used by organisations to make decisions about how best to improve fit given their different market needs, business strategies and performance objectives. Originality/value The findings offer more clarity than previous research about how internal fit impacts business performance for low cost and differentiated services.

Purpose – The purpose of this paper is to present a new and comprehensive business strategy matrix which can be used to create competitive advantage for the value chain of every business unit of any firm. Design/methodology/approach – This paper reviews the key findings of several well-known papers within the value chain literature and then adds several new conceptual insights to step by step create a logically developed, business strategy matrix featuring four strategy choices. Findings – This paper presents the four business strategy choices of competitive value chains, based on the business strategies of innovative quality, lean cost, agile delivery and attentive service. Research limitations/implications – A future research implication of this paper is to empirically test the financial benefits for producers of custom products, of applying agile delivery as a key business strategy. Practical implications – This paper provides the senior management of each business unit of any firm, with a clear guide to defining an optimal business strategy. Social implications – This paper is intended to advance the practice of business strategy by senior management, to enhance customer value across all business units. Originality/value – This paper expands upon existing business strategy models by providing a comprehensive business strategy matrix, which can be applied to all possible business units. It does this by building upon current best practice to demonstrate that next to innovative quality, lean cost and attentive service strategies, an agile delivery strategy is required in the case of custom products.

Purpose–The purpose of this paper is to report on an applied research project involving the application of core learning and pedagogical theory to a specific unit in a transnational undergraduate business course.Design/methodology/approach– The project sought to collect data and learning experiences based upon intensive literature reviews and a combined quantitative-qualitative research method. Established research constructs and recent lessons from the literature were applied to the two-year reform cycle of an undergraduate business unit.Findings– The findings validated the research constructs and frameworks employed and reinforced the case for enhancing the nexus between alignment, student motivation, active learning and the international-transnational perspective. Despite initiatives to engender openness and interactivity in the classroom, including dynamic and innovative approaches to communication and content delivery neither the operation of the class nor the eventual performance of the students lived up to expectations.Research limitations/implications– The research was limited to the experiences of three different cohorts of students on the same unit over a two-year period. Implications are that the same research method and approach are valid for other units either in the same faculty or across faculties.Practical implications– Serves as an example of what can and cannot be achieved by academics seeking to align their teaching and research activities on a relatively modest basis.Social implications– Raises questions as to the social dimension to transnational higher education courses.Originality/value– While not entirely original, the paper adds value in the form of “lessons learned” from an applied classroom-based research.

Purpose – The purpose of this study is to provide new insights into the link between market orientation (MO) and strategic performance by disaggregating the MO construct. With a focus on responsiveness, a crucial element of MO, this research explores antecedents as well as outcomes in the strategic business units (SBUs) of MNCs. The decision-making structure of the firm was modeled as a moderator of the link between responsiveness and performance. Design/methodology/approach – Survey data from upper level managers employed by 126 MNC SBUs representing 23 industries were collected. Findings – The key findings indicate that: responsiveness mediates the link between intelligence generation and strategic performance; responsiveness also mediates the link between resource flexibility and strategic performance; and the link between responsiveness and strategic performance is moderated by the SBU's decision-making structure (i.e. centralization). Originality/value – This study contributes to the conceptual precision of the composite construct MO, and also illustrates an avenue to increase strategic performance. Managerially, it provides managers with prescriptive suggestions for leveraging the value of the elements of MO with respect to the firm's decision-making structure.

Purpose – The purpose of this paper is to present a number of ways organizations can collaborate with their primary, university-based executive education provider (EEP) in order to co-create learning and enhance a company's strategy-development and strategy-execution capability. Design/methodology/approach – This paper synthesizes the multi-varied ways in which one leading, globally oriented business school has collaborated with a Fortune 200 company over the past eight years, involving over 1,200 of the company's managers. Findings – In total, 14 fruitful ways to leverage an existing corporate/EEP relationship in order to foster a company's strategy-development and strategy-execution capabilities at the business unit level are presented. Practical implications – The field-inspired ideas presented here are immediately, broadly, and beneficially applicable across the corporate landscape. Originality/value – Readers are provided with a number of specific, actionable ways to tap into the often-underutilized capabilities of an existing EEP affiliation with the intent of transforming that affiliation into an on-going collaboration that enhances various corporate personnel, strategy, and operational capabilities.

Subject area Family Business, Entrepreneurship, International Business and Marketing. Study level/applicability This case is intended for an undergraduate business student audience in courses dealing with Entrepreneurship, Family Business, International Business and Marketing. Case overview TARA Trade, a Lebanese souvenir-item designer and distributor owned by two brothers, was facing hostile competition. The partners who operated the business from two different continents had to deal with multiple threats to maintain their market position in a region of the world riddled with political unrest, regulatory chaos and idiosyncratic (distinctive) socio-cultural business practices. Expected learning outcomes Students are challenged to identify solutions to the marketing concerns and analyse the partnership issues faced by the international ownership/management of the business. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail: support@emeraldinsight.com to request teaching notes.

PurposeThe purpose of the article is to investigate the impact of organizational culture on software process improvement (SPI). Is cultural congruence between an organization and an adopted process model required? How can the level of congruence between an organizational culture and the values and assumptions underlying an adopted process model be assessed?Design/methodology/approachThe competing values framework and its associated assessment instrument are used in a case study to establish an organizational culture profile of a software development business unit within the case company. The instrument is supplemented with a technique to produce culture profiles of texts such as process models like the Capability Maturity Model Integration (CMMI) and the case company's quality management system. The different profiles are subsequently analyzed and compared.FindingsThe culture profile of the CMMI confirms previous research and depicts a result‐oriented, formalized, and structured organization. A comparison with the company's quality management system shows congruent culture profiles suggesting that the case company has succeeded in capturing underlying assumptions of the CMMI when updating the quality management system. The analysis also reveals the organizational culture profile of the business unit to be incongruent with the quality management system's profile. This disconfirms previous research claiming that congruence is a prerequisite. Further analysis reveals that actions were taken by managers in the case company to address the cultural challenges and successfully implement new processes. It is, therefore, concluded that cultural incongruence is not an insurmountable barrier to SPI. By comparing cultural profiles, some SPI implementation challenges become evident and that in turn allows for effective SPI management action.Research limitations/implicationsThe research is based on a single case study and that is sufficient to disconfirm existing research. Additional research is, however, needed to validate both the proposed text analysis technique as well as the proposed process for assessing and managing cultural challenges confronting SPI projects.Practical implicationsSPI managers are provided with a more complex view of organizational culture in which congruence is not a necessity. SPI managers can choose to compare culture profiles and decide how to address incongruences. To that end the text analysis technique is offered as a web service that allows for analysis of all text‐based process models and standards, and of internal process documentation.Originality/valueThe proposed culture management process, including the text analysis technique, is a cost‐efficient approach to analyzing and providing the basis for managing cultural challenges during SPI in a specific company. The process provides understanding and guidance in dealing with the specific challenges faced by software companies during SPI.

PurposeThis case aims to describe what innovation looks like and how it works in Fidelity Investments, a financial services organization that is large and decentralized.Design/methodology/approachThe case looks at how the firm's internal consultants introduced idea‐management systems, idea‐management contests, design thinking, open innovation, innovation tools, coaching and mentoring and new innovation processesFindingsThe study show that internal consultants made progress by demonstrating that different ways of thinking through business problems could lead to better solutions without making a huge investment of resources – people, time, and budget.Research limitations/implicationsThe implementation results findings are based on first‐hand reporting by the author.Practical implicationsThe combination of internal consultants and business unit champions learned to create a home for innovation that focuses and leverages impact.Originality/valueThis case explains how the internal consulting unit charged with disseminating innovation processes developed the trust and cooperation of the company business units.

Purpose To identify the commonalities and differences in manufacturers’ motivations to servitize. Design/methodology/approach UK study based on interviews with 40 managers in 25 companies in 12 sectors. Using the concept of product complexity, sectors were grouped using the Complex Products and Systems (CoPS) typology: non-complex products, complex products, and systems. Findings Motivations to servitize were categorised as competitive, demand-based (i.e., derived from the customer) or economic. Motivations to servitize vary according to product complexity, although cost savings and improved service quality appear important demand-based motivations for all manufacturers. Non-complex product manufacturers also focus on services to help product differentiation. For CoPS manufacturers, both risk reduction and developing a new revenue stream were important motivations. For uniquely complex product manufacturers, stabilising revenue and increased profitability were strong motivations. For uniquely systems manufacturers, customers sought business transformation, whilst new service business models were also identified. Research limitations/implications Using the CoPS typology, this study delineates motivations to servitize by sector. The findings show varying motivations to servitize as product complexity increases, although some motivational commonality existed across all groups. Manufacturers may have products of differing complexity within their portfolio. To overcome this limitation the unit of analysis was the SBU. Practical implications Managers can reflect on and benchmark their motivation for, and opportunities from, servitization, by considering product complexity. Originality/value The first study to categorise servitization motivations by product complexity. Identifying that some customers of systems manufacturers seek business transformation through outsourcing.