Time‐span and risk of partner opportunism in strategic alliances

CEO's temporal orientation and entrepreneurial orientation of firm: The contingent effects of environmental characteristics

Extending upper echelon theory perspective, the paper extends the past research literatures on the effects of CEO characteristics in determining strategic choices of firms, and examines the effects of CEO's temporal orientation on entrepreneurial orientation of firms. Moreover, examining the contingent effects of environmental munificence, complexity, and dynamism in the U-shaped relationship between CEO's temporal orientation and entrepreneurial orientation of firm contributes to the understanding of the boundary conditions and determines the strength of the relationship between CEO's temporal orientation and EO of firm. We test our hypotheses using panel data analysis of Indian firms during 2007-2016.

CEO career horizon influence strategic novelty of a firm: A study under the boundary condition of CEO's temporal focus

The paper examines the relationship between CEO career horizon and strategic novelty under boundary conditions of CEOs' temporal focus for firms in one of the emerging markets. Upper echelons theory predicts that CEOs' risk aggressiveness decreases with diminishing career horizons. Therefore, CEOs nearing retirement are less likely to make novel strategic investments. We assert that CEOs' career horizon influences strategic outcomes, especially risk aggressive strategic novelty outcomes contingent on the CEOs' temporal perspective, i.e., past and future temporal focus. We test the hypotheses using archival data from 285 listed firms in India. The findings support the hypotheses by showing that CEOs' carrier horizon positively influences strategic dynamism and distinctiveness, the two dimensions of strategic novelty. The results also suggest that past temporal focus enhances the negative influence of decreasing CEOs' career horizons on strategic dynamism and distinctiveness. Future temporal focus, on the contrary, diminishes the negative influence of decreasing CEOs' career horizons on strategic dynamism and distinctiveness. The findings contribute to understanding the joint role of the time static trait of CEOs, i.e., temporal focus, and time-varying trait, i.e., career horizon on strategic novelty.

Closeness or opportunistic behavior? Mediating the business ecosystem governance mechanisms and coordination relationship

Purpose

Business ecosystem is described as a web of loose relationships, thereby posing some challenges to coordination. In attempt to ensure coordination in business relationships, scholars have proposed relational and contractual governance mechanisms. Hence, this study aims to examine the effects of governance mechanisms on coordination in the pharmaceutical business ecosystem (BE), with the potential mediating effects of closeness and opportunistic behavior.

Design/methodology/approach

The study adopted quantitative approach with cross-sectional survey research design to collect data from the business ecosystem of pharmaceutical company X in Ghana. A structured questionnaire based on a five-point Likert scale was employed to collect data. Analysis was based on 173 institutions (both local and international) selected from pharmaceutical BE. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares (OLS) regression in Statistical Product and Service Solutions (SPSS).

Findings

The results of the study revealed that both relational and contractual governance have a direct positive effect on coordination between pharmaceutical BE members and the focal firm. The effect of contractual governance on coordination is however, partially mediated by opportunistic behavior. Finally, closeness also fully mediated the effect of relational governance on coordination.

Originality/value

The study builds on the governance mechanisms in exchange relationship, which was hitherto largely limited to the dyadic and triadic business network, partnerships and strategic alliances studies. The contribution to BE literature provides further understanding into transaction cost economics and relational exchange theory, which was dominantly applied in dyadic relationships ties such as partnerships, alliances and networks.

R&D COLLABORATION BETWEEN FIRMS: HARD AND SOFT ANTECEDENTS OF SUPPLIER KNOWLEDGE SHARING

Manufacturing firms that collaborate with external R&D partners are inevitably confronted with the danger of R&D suppliers deliberately with holding knowledge. Empirical analyses on a set of 104 supplier firms provide results concerning the impact of “soft” determinants of knowledge sharing that have not been investigated to date. In particular, they show that intrinsic motivation and organisational culture are more important than better examined “hard” determinants such as behaviour monitoring and the collaboration perspective. Additionally, we detect a theoretically surprising effect of knowledge sharing on the supplier firm’s success.

Me, myself and I

Purpose

This research focuses on the role of customer behavior in service outsourcing relationships that are governed by outcome-oriented contracts. The purpose of this paper is to explain how non-collaborative customer behavior impedes the effectiveness of outcome-oriented contracts to align the goals and incentives of the customer and service provider, and leads to service provider opportunism.

Design/methodology/approach

Nine hypotheses are developed regarding customer behavior and the reaction of the service provider to this. These are tested using structural equation modeling with data from 213 service outsourcing relationships.

Findings

Outcome-orientated contracts in service outsourcing may have unintended consequences because they create value attribution ambiguity. This ambiguity induces non-collaborative customer behavior, which, in turn, results in service provider opportunism. This reveals a paradox, where customer behavior aimed at curbing service provider opportunism instead induces such opportunism. This chain of effects can be counteracted by increased outcome attributability, which reduces the ambiguity and, thus, the motivation for non-collaborative customer behavior.

Originality/value

This research extends the existing literature by stressing that non-collaborative customer behavior is a key reason why outcome-oriented contracts fail in effectively governing outsourcing relationships, and that this can be counteracted by increased outcome attributability.

Understanding performance of joint ventures

Purpose

– The purpose of this paper is to contribute to the existing knowledge about joint ventures (JV) by modeling the interactional strength of fit between JV partners. The paper integrates different constructs from three theoretical perspectives most widely used in JV studies – trust and commitment from the relational perspective; opportunism and specific investments from the transaction cost perspective; and assesses the moderating role of fit from the contingency perspective.

Design/methodology/approach

– Quantitative data from JVs were collected using the survey method. Relationships in the moderated mediation model were tested using complex sets of hierarchical regression steps.

Findings

– Relational intentions of partners influence specific investments between the partners. The two together drive JV performance and their impact is moderated by the extent of fit between the partners. Thus, it is concluded that the strength of fit, as perceived by partners, influences the role of other constructs from the relational, transactional and contingency perspectives, which together can help us understand performance of JVs better.

Research limitations/implications

– An assessment of longitudinal view of the relational variables and subsequent performance can be captured in future. This research assesses fit based on compatibility, which assesses similarity as well as complementarity, primarily by way of harmony in different aspects. Future research could differentiate complementarity from similarity to further assess the impact of fit.

Practical implications

– The relational behavior of JV partners, or their rational approaches to resource seeking, will be optimally effective only when the fit between partner characteristics is high. While the relational or transactional approaches can evolve in JVs, the partners should assess the extent of fit before getting into a JV relationship.

Originality/value

– The research presents a holistic framework that draws from various theoretical perspectives. The results establish that contrary to its peripheral treatment in the literature, fit plays an important role and can modify the influence relational variables and specific investments can have on the performance of JVs.