Browsing Department of Strategic Management and Globalization (SMG) by Title
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A knowledge governance perspectiveFoss, Kirsten; Foss, Nicolai J. (København, 2008)[More information][Less information]
Abstract: A critical knowledge governance problem concerns the consequences for the use of the authority if the knowledge that is essential in a work setting is partially unknown to the person who is to exercise authority. Is it possible to rationally direct work and activities and efficiently utilize knowledge under such conditions? Recently, many scholars have given negative answers to this question, arguing that authority relations are becoming strained by the increasingly distributed nature of knowledge in and between firms. We analyze this argument on the basis of definitions of "authority” and "distributed knowledge.” This allows us to show that --- while intuitively appealing --- the argument that authority cannot be an efficient coordination mechanism in the presence of distributed knowledge is at best problematic. The argument is based on the flawed inference that because the holder of authority is ignorant about some of the knowledge held by employees, he cannot rationally direct them. However, it is correct that the quality of centralized direction (planning, authority) may be compromised by distributed knowledge, leading to choices of other governance mechanisms and structures. URI: http://hdl.handle.net/10398/7425 Files in this item: 1
smg wp 2008-01.pdf (447.9Kb) -
A theoretical perspectivePetersen, Bent; Welch, Lawrence S.; Benito, Gabriel R.G. (København, 2008)[More information][Less information]
Abstract: Internalisation theory informs us about why and when multinational enterprises (MNEs) internalise foreign operations, but has less to say about how the internalisation should be prepared and exercised when foreign market operations initially are carried out by local, outside agents. Drawing on insights from managerially-oriented literature, this paper explores the role of management in situations where the market transaction costs of using outside agents are negligible at market entry, but grow over time. A key question pertaining to this situation is: what management instruments may ensure persistent concurrence between changing pressure for internalisation in a foreign market and the effectuated internalisation of an MNE in that market? Management instruments and strategies that potentially support ‘staged internalisation’ include appropriation of the local outside agent’s financial assets (including equity) as well as non-financial assets in relation to user rights, customer relations, and value added activities. URI: http://hdl.handle.net/10398/7454 Files in this item: 1
smg wp 2008-07.pdf (436.9Kb) -
Hotho, Jasper J. (, 2009)[More information][Less information]
Abstract: Three varieties of institutionalism currently dominate International Business studies: new institutional economics, new organizational institutionalism, and comparative historical institutionalism. Yet currently applied measures of institutional country distance predominantly build on the thought of the first two strands of institutionalism. This paper sets out to address this underrepresentation of comparative historical institutional thought in currently available measures of institutional distance. Building on Whitley’s business systems framework, a measure of institutional distance is developed and validated which captures intrinsic, substantive institutional differences in economic organization, rather than differences in institutional effectiveness. The results of the two-stage cluster analysis used to validate the selected indicators closely approximate the business systems typology, which is both indicative of the validity of this measure and of the distinctiveness of the business system types that make up the business system framework. URI: http://hdl.handle.net/10398/7946 Files in this item: 1
SMG WP 2009-07.pdf (975.7Kb) -
A Goal-Framing Perspective on the Drivers of Value CreationFoss, Nicolai J.; Lindenberg, Siegwart (Frederiksberg, 2013)[More information][Less information]
Abstract: Scholars increasingly seek to proffer microfoundations for macro management theory, notably strategic management theory. These microfoundations naturally revolve around human resources. We argue that proper microfoundations for strategic management theory must recognize that the management of motivation is first and foremost a matter of the management of cognitions of organizational members, an insight that we found in goal-framing theory, an emerging perspective based on cognitive science, behavioral economics, and social psychology. Building on this insight, we argue that a key reason why strategic goals matter to firm performance──that is, firm-level value creation and value capture and sustained competitive heterogeneity──is that such goals influence value creation rooted in employee motivations. Unfolding this idea allows us to generate new insight in the relations between value creation, strategic leadership and strategic goals. URI: http://hdl.handle.net/10398/8668 Files in this item: 1
SMGWP2013_5.pdf (711.6Kb) -
Essays on Autonomous Strategic ActionLinder, Stefan Matthias (Frederiksberg, 2011)[More information][Less information]
Abstract: Kun abstrakt er tilgængelig online for denne PhD afhandling. CBS Bibliotek har en trykt udgave der kan findes via CBS bibliotekskatalog. Only abstract of this Ph.D. thesis is available online. The CBS Library has a printed edition this edition can be found through the CBS Library Catalogue. URI: http://hdl.handle.net/10398/8356 Files in this item: 1
Stefan_Linder_PhD_abstract.pdf (31.84Kb) -
Individuals, Processes, and SturctureFelin, Teppo; Foss, Nicolai J.; Heimeriks, Koen H. (Frederiksberg, 2012)[More information][Less information]
Abstract: We discuss the microfoundations of routines and capabilities, including why a microfoundations view is needed and how it may inform work on organizational and competitive heterogeneity. Building on extant research, we identify three primary categories of micro-level components underlying routines and capabilities: individuals, social processes, and structure and design. We discuss how these components, and their interactions, may affect routines and capabilities. In doing so, we outline a research agenda for advancing the field’s understanding of the microfoundations of routines and capabilities. URI: http://hdl.handle.net/10398/8401 Files in this item: 1
Teppo_Felin_SMG_WP_423.pdf (283.4Kb) -
Controlling Intervention Hazards in the Network MNCFoss, Kirsten; Foss, Nicolai J.; Nell, Phillip C. (Frederiksberg, 2011)[More information][Less information]
Abstract: The MNC literature treats the (parent) HQ as entirely benevolent with respect to their perceived and actual intentions when they intervene at lower levels of the MNC. However, HQ may intervene in subsidiaries in ways that demotivate subsidiary employees and managers (and therefore harm value-creation). This may happen even if such intervention is benevolent in its intentions. We argue that the movement away from more traditional hierarchical forms of the MNC and towards network MNCs placed in more dynamic environments gives rise to more occasions for potentially harmful intervention by HQ. Network MNCs should therefore be particularly careful to anticipate and take precautions against “intervention hazards.” Following earlier research, we point to the role of normative integration and procedural justice, but argue that they also serve to control harmful HQ intervention (and not just subsidiary opportunism). URI: http://hdl.handle.net/10398/8380 Files in this item: 1
Kirsten Foss_SMG WP13_2011.pdf (634.1Kb) -
Hansen, Michael W.; Pedersen, Torben; Petersen, Bent (København, 2007)[More information][Less information]
Abstract: The paper addresses the question of which implications MNC strategies have to FDI linkage effects in developing countries. Two contrasting MNC strategies reflecting an integration-responsiveness dichotomy are scrutinized as to their job effects on local linkage partners in developing countries. It is hypothesized that compared to investments undertaken by MNCs following strategies of global integration, investments of MNCs pursuing local responsiveness create more jobs but imply less job upgrading in developing countries. The hypotheses are tested on a sample of Danish MNCs with extensive investments in developing countries. URI: http://hdl.handle.net/10398/7468 Files in this item: 1
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Benito, Gabriel R. G.; Petersen, Bent; Welch, Lawrence S. (Frederiksberg, 2010)[More information][Less information]
Abstract: An enduring characteristic of extant literature on foreign operation modes is its discrete choice approach, where companies are assumed to choose one among a small number of distinctive alternatives. In this paper we use detailed information about the operations of six Norwegian companies in three key markets (China, UK and USA) as the basis for an exploration of the extent to which, and how and why, companies combine clearly different foreign operation modes. We examine their use of foreign operation mode combinations within given value activities as well as within given countries. The study reveals that companies tend to combine modes of operation; thereby producing unique foreign operation mode “packages” for given activities and/or countries, and that the packages are liable to be modified over time – providing a potentially important optional path for international expansion. Our data show considerable variation across cases; ranging from extensive use of mode combinations to a singular focus on a specific mode of operation. The study contributes to a refinement of our understanding of the path of internationalisation, and throws up a number of awkward theoretical questions about the process. URI: http://hdl.handle.net/10398/8219 Files in this item: 1
Benito_Petersen_Welch_SMG_WP_9_2010.pdf (237.6Kb) -
Foss, Nicolai J.; Stieglitz, Nils (Frederiksberg, 2010)[More information][Less information]
Abstract: We survey the resource-based view in strategic management, focusing on its roots in economics. We organize our discussion in terms of the Gavetti and Levinthal distinction between a “high church” and a “low church” resource-based view, and argue that these hitherto rather separate streams are increasingly overlapping. URI: http://hdl.handle.net/10398/8172 Files in this item: 1
CBS Forskningsindberetning SMG 261.pdf (200.4Kb) -
Capital Structure ContingenciesJuul Andersen, Torben (København, 2008)[More information][Less information]
Abstract: Multinational enterprise provides access to a diverse resource base that may support options related business initiatives and operational flexibilities with a potential to improve performance and risk management capabilities. Hence, multinationality should be associated with strategic responsiveness as real option structures allow the corporation to exploit new initiatives and pursue alternative actions. This, in turn should improve economic performance and risk management capabilities as corporate activities are adapted and new initiatives introduced in response to changing global conditions. The analyses of a cross-sectional sample comprising 1357 multinational firms during 1996-2000 partially support the proposed performance and risk management effects but also raise issues for further study. URI: http://hdl.handle.net/10398/7457 Files in this item: 1
smg wp 2008-08.pdf (326.5Kb) -
Juul Andersen, Torben (København, 2008)[More information][Less information]
Abstract: Studies of multinational performance have moved from linear, to quadratic and to cubic relationships but despite this seeming increase in sophistication, the empirical evidence has remained contradictory. The hypothesized performance relationships of multinationality have typically been driven by assumed trade-offs between underlying cost/benefit functions. However, this paper argues that cost/benefit trade-offs associated with international expansion are shaped by industry specific conditions that systematically confound the performance outcomes of multinationality. Whereas prior studies often have been confined to a focus on manufacturing and smaller cross-sectional samples, this study analyses the multinational performance outcomes across a comprehensive industry-wide dataset during 1996-2000. The analyses show positive multinational performance relationships in manufacturing and knowledge-based service industries whereas capital-based service industries have negative performance relationships. These results support the proposed heterogeneity in multinational performance effects across industry contexts. URI: http://hdl.handle.net/10398/7467 Files in this item: 1
smg wp 2008-15.pdf (324.0Kb) -
Foss, Nicolai J.; Klein, Peter G. (København, 2008)[More information][Less information]
Abstract: Entrepreneurship and the theory of the firm are two of the fastest-growing fields in eco-nomics and management. The two fields developed largely in isolation and are only now beginning to be brought together. We argue that each field has much to learn from the other and that combining them yields a better theory of the firm and a fuller understand-ing of the nature and effects of entrepreneurship in the economy. Specifically, the Knightian concept of entrepreneurship as judgment, combined with the Austrian ap-proach to capital heterogeneity, leads to a number of unconventional insights about the nature, boundaries, and internal organization of the firm. The judgment perspective also shifts attention from the discovery or recognition of entrepreneurial opportunities to the exploitation of those opportunities through the acquisition, combination, and recombina-tion of resources, adding to our understanding of the causes and consequences of entre-preneurship. URI: http://hdl.handle.net/10398/7461 Files in this item: 1
smg wp 2008-04.pdf (328.7Kb) -
Towards a More Nuanced Perspective on Motivation in OrganizationsReinholt, Mia (København, 2006)[More information][Less information]
Abstract: The organizational science literature on motivation has for long been polarized into two main positions; the organizational economic position focusing on extrinsic motivation and the organizational behavior position emphasizing intrinsic motivation. With the rise of the knowledge economy and the increasing levels of complexities it entails, such polarization is not fruitful in the attempt to explain motivation of organizational members. This paper claims that a more nuanced perspective on motivation, acknowledging the co-existence of intrinsic and extrinsic motivation, the possible interaction between the two as well as different types of motivations filling in the gap between the two polar types, is urgently needed in the organizational science literature. By drawing on the research on intrinsic and extrinsic motivation conducted in social psychology and combining this with contributions from organizational science, economics, and sociology, this paper attempts to develop an emergent understanding of motivation, which is more facetted than the one dominating organizational science currently. Based on these discussions, eleven implications for future research on motivation in organizations are proposed. Keywords: Work motivation, intrinsic motivation, extrinsic motivation, motivation systems, and the knowledge economy JEL Codes: M12, M52, M54 URI: http://hdl.handle.net/10398/7456 Files in this item: 1
smg 2006-49.pdf (301.2Kb) -
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Abstract: While the extant literature on offshore outsourcing deals with this operation mode in isolation, and typically with a focus on cost effects, we address the broader question of how companies choose and use outsourcing as part of foreign operation mode development and as a contributor to internationalization. We use a case study of the Danish company SimCorp and the development of its operations in Kiev, Ukraine, to show how learning in various forms, control concerns, and relations with foreign partners may interact and build momentum for mode change. SimCorp’s experience demonstrates that outsourcing can be used proactively to promote expanded international operations. URI: http://hdl.handle.net/10398/8360 Files in this item: 1
SMG WP 9_2011_Ny udg_28nov2011.pdf (144.2Kb) -
Transaction cost and property rights perspectives on entrepreneurshipStieglitz, Nils; Foss, Nicolai J. (, 2009)[More information][Less information]
Abstract: Entrepreneurs in a competitive economy face three fundamental problems. They need to search for and discover a business opportunity (Kirzner, 1973), evaluate it (Knight, 1921), and then seize the opportunity to reap entrepreneurial profits (Schumpeter, 1911) (Langlois, 2007). The problem that we address is how the ability to exploit business opportunities is influenced by entrepreneurial search and the economic organization of entrepreneurship (Arrow, 1962; Lippman & Rumelt, 2003; Aghion et al., 2005; Foss et al., 2007). In many cases, the discovery for a new business opportunity needs to be motivated by expected gains, since the search and evaluation of business opportunities is a costly, resource-consuming process (Denrell, Fang & Winter, 2003; Nickerson & Zenger, 2004; Foss & Klein, 2005; Teece, 2007; Foss & Foss, 2008).1 We show the critical role of expectations for understanding of the economic organization of entrepreneurship, and argue that transaction cost economics, with its insistence on bounded rationality, but far-sighted contracting offers useful insights and presents rich opportunities for further theoretical and empirical research (cf. also Furubotn, 2002). URI: http://hdl.handle.net/10398/7784 Files in this item: 1
SMG WP 2009-04.pdf (208.1Kb) -
Gry Knudsen, Line; Bernhard Nielsen, Bo (København, 2008)[More information][Less information]
Abstract: Inter-organizational collaboration is an organizational form that is used by an increasing number of firms to meet a wide range of organizational aims (Hagedoorn 1996; 2002; Narula, 2004; Casson and Mol, 2006). Inter-organizational alliances are a preferred way of sourcing a variety of resources (Eisenhardt and Shonhoven, 1996; Gulati, 1999; Van de Ven and Walker, 1998), and a prominent view of the strategic alliance literature suggests that inter-firm collaboration has a special strength in serving as a mechanism by which a firm can leverage its skills, acquire new competencies, and learn (e.g. Kogut, 1989; Hamel, Doz, and Prahalad, 1989; Huber, 1991; Larsson, Bengtsson, Henriksson, and Sparks, 1998; Lyles, 1988; Powell and Brantley, 1992; Inkpen and Tsang, 2008). As firms collaborate at an increasing rate (Khanna et al, 1998) it becomes still more important to understand how these firms can be instrumental in organizing and governing the various collaborative knowledge processes that take place in alliances. URI: http://hdl.handle.net/10398/7416 Files in this item: 1
smg wp 2008-17.pdf (312.7Kb) -
Møller Larsen, Marcus (Frederiksberg, 2013)[More information][Less information]
Abstract: Offshoring can be defined as the relocation of organizational tasks and services to foreign locations. Increasingly, firms experience that unforeseen costs and difficulties of managing offshoring undercut anticipated benefits; that unexpected challenges of offshoring jeopardize and eventually undermine initial objectives. Guided by the research question—what are the organizational consequences of offshoring?—the purpose of this thesis is to investigate why some firms fail when offshoring and other do not. The thesis consists of four research papers using various datasets and methodologies that investigate offshoring in an organizational context. The first paper investigates how the complexity of offshoring leads to ‘hidden costs’ of implementing offshoring activities. The second paper looks at how these hidden reconfiguration costs influence the process performance of the offshored activity and how this relationship is moderated by the modularity of that activity. The third paper investigates the effect of the organizational reconfiguration of offshoring on firms’ strategies. The final paper studies different strategies of adaptation in offshoring. Taken together, this thesis argues that whether firms relocate activities with the purpose of accessing resources or as a response to political pressures, the process of offshoring presents firms with the challenge of coordinating and integrating offshoring activities in a global organization. The complexities and uncertainties of an organization consisting of a number of offshored activities (in contrast to an organization with only co-located activities) require firms to invest additional resources in coordination mechanisms so that an efficient reintegration can be achieved. URI: http://hdl.handle.net/10398/8669 Files in this item: 1
Marcus_M _Larsen.pdf (1.714Mb) -
A Research AgendaFoss, Nicolai J.; Argyres, Nicholas; Felin, Teppo; Zenger, Todd (Frederiksberg, 2012)[More information][Less information]
Abstract: For decades, the literatures on firm capabilities and organizational economics have been at odds with each other, specifically relative to explaining organizational boundaries and heterogeneity. We briefly trace the history of the relationship between the capabilities literature and organizational economics and point to the dominance of a “capabilities first” logic in this relationship. We argue that capabilities considerations are inherently intertwined with questions about organizational boundaries and internal organization, and use this point to respond to the prevalent “capabilities first” logic. We offer an integrative research agenda that focuses, first, on the governance of capabilities and, second, on the capability of governance. URI: http://hdl.handle.net/10398/8426 Files in this item: 1
Foss_SMGWP2012_1.pdf (780.0Kb) -
Foss, Nicolai J.; Klein, Peter G. (København, 2007)[More information][Less information]
Abstract: This chapter reviews and discusses rational-choice approaches to organizational governance. These approaches are found primarily in organizational economics (virtually no rational-choice organizational sociology exists), particularly in transaction cost economics, principal-agent theory, and the incomplete-contracts or property-rights approach. We distill the main unifying characteristics of these streams, survey each stream, and offer some critical commentary and suggestions for moving forward. URI: http://hdl.handle.net/10398/7438 Files in this item: 1
smg_wp_11.pdf (832.2Kb)