International Journal of Business Environment (7 papers in press)
Ethical Criticism as a Source of Political Risk for Multinational Enterprises: A Conceptual Framework and a Research Agenda
by Cecilia Emma Sottilotta
Abstract: In recent times, political events such as abrupt changes in government policies, social protests, episodes of corruption have come to the fore as key sources of risk to the operations of multinational enterprises (MNEs) in host countries. Nonetheless, the conceptual boundaries of political risk or political risks have always been blurry. This paper aims at providing a theoretical framework to identify and analyse a particular type of political risk to which MNEs are exposed, that is the risk of incurring in reputational and non-reputational costs associated with the transgression of ethical norms on their part. In doing so, the article will also outline a research agenda meant to bridge the gap between the classic literature on political risk and the study of corporate social responsibility (CSR).rn
Keywords: Corporate social responsibility; political risk; ethical risk;risk analysis; multinational enterprise; business environment.
Does business model experimentation in dynamic contexts enhance value capture?
by Ferran Vendrell-Herrero, Glenn Parry, Marco Opazo-Basaez, Francisco Sanchez-Montesinos
Abstract: Established theory suggests that firms experiment with business models in dynamic contexts. However, the relationship between business model experimentation and organizational performance remains unclear. Barriers to empirical analysis exist as experimental business models are normally utilised by new market entrants and the unit of analysis to test a business model in dynamic contexts extends beyond traditional firm boundaries. To overcome these barriers, we propose an assessment of the economic value of business model experimentation in dynamic contexts by defining the unit of analysis at the industry level. Analysis draws upon a unique panel dataset from the recorded music industry composed of 414 observations from 32 countries for the period 19982010. Evidence is provided of the relationship between sales format diversity, taken as a proxy measure of business model experimentation, and industry revenues as the measure of value captured. Both measures have been validated by industry experts. The results show two optimal modes for maximising value capture in dynamic contexts. First, if a dominant format exists, a network effect becomes prevalent which has a positive impact upon revenue. Second, when firms engage in experimentation leading to a highly diversified set of business models the industry sector becomes better able to capture value from diverse and changing consumer needs.
Keywords: Business model; Experimentation; Value capture; Music industry; Format density.
Antecedents and consequences of servitization in the office printing industry
by José Oliveira, Antonio Azevedo
Abstract: This paper aims to investigate a gap in the literature by analyzing how the digitization and paperless office movement are affecting the office printing industry. To comprehend the emergence of servitization in office printing industry, two exploratory interviews with Chief Executive Officer (CEO) of Xerox Technology were conducted. Furthermore, the top 11 manufacturers from a universe of 15 manufacturers were consulted and five answered an online semi-structured questionnaire script.
The CEOs of four photocopier manufacturers said that the servitization process is in the implementation phase, which started between 2012 and 2015, and all firms reported the process has not ended yet. Economic reasons are the major driver of servitization, while Investigation and Development (I&D) is the area more affected. The managers perceived positive impacts on the companys image, global performance of the company. However, 40% of firms stated that there was a downsizing on the headcount ranging from 5% to 15%. The managerial implications and recommendations are discussed
Keywords: Servitization; Office printing industry; Digitization; Paperless office; Product Service System; Rebound effect;.
Is open access publishing a case of disruptive innovation?
by Haven Allahar
Abstract: Open access journal publishing is a recent phenomenon that challenges the established system of print journals and viewed by some researchers as a form of disruptive innovation that has implications for stakeholders in both developed and developing countries. The research approach involved collection of data from the major full-text aggregator databases and other secondary sources, and conduct of a thematic analysis to identify the main issues involved in open access publishing and the question of its disruptive impact on the industry. The main finding was that, while the publishing of open access journals was growing, widespread acceptance by academia was slow. Further, while there were signs of the open access model disrupting the publishing business, it was premature to label it a disruptive innovation.
Keywords: journal publishing; open access journals; disruptive innovation; open access business models; open access in developing countries; journal publishing in Latin America and the Caribbean.
Effects of governance structures on sustainability-oriented supplier behavior:
Analysis of national action plans and their effects in public procurement
by Andreas H. Glas, Julian Gaus, Michael Essig
Abstract: Research examining sustainable supply chains usually addresses the question of how companies involve members of their supply chains into their sustainability practices. Overarching governance structures are often not in the core focus, but they play a significant role in creating behavioral responses that promote sustainable practices. This article explains sustainability governance structures through the lenses of the world polity theory and analyzes data from a survey on European public supply chains and national action plans. The findings show that suppliers of public authorities in the European Union better meet sustainability targets when national action plans are in place. Thus, suppliers behave according to overarching supply chain sustainability governance structures. This study does not neglect the existence of other motives for sustainable supplier behavior, but explains the success of sustainability initiatives with a supply chain governance structure.
Keywords: Public; Regulation; Governance; Supply Chain; Sustainability; World Society Theory.
Solution sales process blueprinting
by Rodrigo Rabetino, Samuel Johnson Ogundipe, Marko Kohtamäki
Abstract: By utilizing the blueprinting technique, this study develops a sales process framework that visualizes different activities, actors, and customer touch-points in the sales process. Multiple-case method was utilized for collecting data from eight Finnish manufacturers that are implementing servitization. This study draws on diverse data, including information from websites and face-to-face interviews with 18 company representatives. Our results show that firms also interact with customers during post-sales delivery to acquire and disseminate new information. The main actors having direct encounter with customers are the sales people, but early engagement of the project and design divisions help them serve and understand customers better. However, the process blueprint reveals the need for improvements in the firms sales process design, in order to better integrate the service function into the selling phase and to enhance the opportunities for post-sales customer support. The identified managerial practices indicate that the entire sales process revolves around early engagement of solution providers to participate in the technical negotiation and design with the customer before needs are realized, or investment decisions are made. Additionally, the sales process blueprint visualizes displays the different customer touch-points and how various actors in providers organization interact to deliver value for customers. Lastly, the blueprinting framework offers a guide to managers to re-orientate their sales process around those the identified fundamental practices for long-term customer relationship development.
Keywords: Solution Selling; Blueprinting; Relationship selling; Servitization.
ORGANIZATIONAL AMBIDEXTERITY AND INDUSTRIAL CLOCKSPEED THEORIES IN UNDERSTANDING DYNAMIC MANAGERIAL CAPABILITIES: A MULTIPLE CASE STUDY
by Emre Erbaş
Abstract: Today, to have a competitive advantage, firms are in need of developing managerial capabilities to make sure strategic decisions taken at the corporate level are translated into actions that are properly implemented and managed in the field. While researchers acknowledge the importance of managerial capabilities for the competitiveness of firms, research commonly fails to address managerial capabilities with the proper empirical approaches. Therefore, in this study, an X-Y axis framework based on organizational ambidexterity and industrial clockspeed theories, was developed and is proposed here as a tool for analyzing dynamic managerial capabilities. Using an explorative approach, case studies and observation were used to illustrate the issue regarding two tourism destinations. Results show that similar managerial capabilities have different intended uses and outputs that affect the competitiveness of the case destinations. For example, while governance is used to quickly exploit resources in Erciyes, it is just the reverse in Cappadocia. The proposed framework can be applied not only to tourism destinations but also to other areas of product or service management.
Keywords: Dynamic managerial capabilities; organizational ambidexterity; industrial clockspeed; competitiveness; destination; tourism.