In Loving Hands: How Founders' Affective Commitment Strengthens the Effect of Organizational Flexibility on Firms' Opportunity Exploitation and Performance

Is flexibility or formality more useful for organizations that are pursuing improved performance? Organizational structure scholars offer opposing answers to this question, and empirical results have been mixed. Our study contributes to this research by describing a mediational model that links organizational flexibility to performance via opportunity exploitation. Specifically, we argue that flexible firms are able to exploit a greater number of opportunities, which, in turn, can improve performance. We also argue that the indirect effect of flexibility on performance via opportunity exploitation is stronger when top executives display higher affective commitment for their firms, meaning that they have a positive emotional attachment to their firms. Top executives with higher affective commitment can mitigate the downsides experienced by the staff of flexible firms, such as uncertainty and negative affect, which improves the outcomes of flexibility. Drawing on a sample of 211 firms and their founders, we find support for our hypotheses.

Strategic Configurations and International Performance of Emerging Economy Multinationals

This study examines the international performance of emerging economy multinational enterprises (EMNEs) from a strategic configuration perspective. We propose that the strategic patterns of EMNEs that deliver growth and/or profitability are characterized by different configurations of environment, strategy, and managerial resource factors. Therefore, identifying and assessing strategic configurations is key to understanding EMNEs’ international performance. Employing fuzzy-set qualitative comparative analysis, we analyze a multi-sourced dataset of Chinese firms’ outward investment and identify multiple equifinal strategic configurations that are associated with superior international performance in terms of sales growth and/or profitability. These findings inform the development of a taxonomy of EMNEs’ strategic configurations corresponding with three performance groups, namely profitable growth, profitable niche, and poor performers.

Entrepreneurial Experience and Performance: From the Aspect of Sustainable Growth of Enterprises

In the uncertain entrepreneurial ecosystem, scholarly knowledge is bounded by the sustainable growth of entrepreneurial enterprises. Moreover, there is a lack of consensus in academic circles on the relationship between entrepreneurial experience and entrepreneurial performance. In adopting the meta-analysis method, we found a significant relationship between entrepreneurial experience and entrepreneurial performance based on an investigation of 45 independent samples (N = 18,752). We also examined theoretically derived moderators of this relationship referring to firm age, industry condition and experience type to test whether the moderating effects can explain the inconsistent research results on the relationship between entrepreneurial experience and entrepreneurial performance. The relationship was stronger for the high-tech industry than for low-tech industry, for the early business stage than for late business stage and for start-up experience compared to management experience, work experience and industry experience. Our research findings are meaningful for practitioners to achieve sustainable growth by better preserving and coordinating entrepreneurial experience in a dynamic environment. Further, these findings are also important for future research to analyze the factors triggering the heterogeneity of entrepreneurial experience and to investigate the extent to which the start-up experience is more capable of promoting entrepreneurial performance.

THE HUMAN CAPITAL OF BOARDS OF DIRECTORS AND INNOVATION: AN EMPIRICAL EXAMINATION OF THE PHARMACEUTICAL INDUSTRY

The human capital of corporate boards of directors is a key organizational resource affecting a variety of strategic outcomes. Using human capital theory within the broader theoretical contexts of agency theory and the resource dependence perspective, we investigate the effects of certain types of board human capital on firm innovation. Our findings are generally supportive of our theory that board human capital is associated with firm innovation. Specifically, we examine the role of certain types of board human capital on firm innovation and find that scientific expertise, industry experience, financial expertise, and women directors positively affect firm innovation in the pharmaceutical industry, with innovation measured by R&D expenditures and number of patents. These results imply that the knowledge, experience, and expertise that directors bring to corporate boards are important considerations in constituting corporate boards. Further, our work adds to understanding of the impact of board characteristics on firm strategic outcomes.

Investigating the process of entrepreneurial team member exits: a systematic review and future research directions

Entrepreneurial teams are dynamic entities that frequently experience the exit of individual team members. Such entrepreneurial team member exits (ETMEs) entail serious consequences for the exiting individual, the remaining team, and the performance of the affected venture. While ETMEs are receiving increasing scholarly attention, the research landscape is still considerably fragmented. This is the first article to take stock, analyze, and discuss this crucial and emerging field of research by providing a systematic review of the literature on ETMEs. We identify central themes comprising of antecedents, routes, consequences, and the contextual embeddedness of ETMEs and integrate them into a comprehensive processual framework. Based on this framework, we contribute to the research on ETMEs by discussing the themes in the light of promising theoretical perspectives, introducing novel ideas, concepts, and approaches to enrich future avenues. Specifically, we propose to expand the concept of team heterogeneity to advance our understanding of antecedents as well as to investigate power relations and negotiation behavior within ETME routes. In addition, we offer ways to resolve the sometimes inconsistent findings in terms of venture consequences and present a fertile approach for a more in-depth cultural contextualization of the phenomenon.

The Influence of Top Management Team on Chinese Firms’ FDI Ambidexterity

Strategic ambidexterity has been under researched in the context of Chinese outward foreign direct investment (FDI). An ambidextrous FDI, balancing between exploratory and exploitive activities, is strategically desirable but managerially challenging. We examine the role of top management team (TMT) functional diversity in influencing Chinese firms’ degree of FDI ambidexterity, and its boundary conditions in relation to the informal and formal institutional environments within which the TMT operates. Based on a panel of Chinese outward-investing manufacturing firms, our empirical analyses show that a marginal positive effect of TMT functional diversity on a firm's FDI ambidexterity is strengthened by the social faultline presence in the firm's TMT, but is weakened by the development of formal institutions in the firm's external environment.

"The liability of newness" revisited: Theoretical restatement and empirical testing in emergent organizations

The mismatch between Stinchcombe's original propositions regarding "the liability of newness" and subsequent attempts to test those propositions suggests to us that the form and causes of the liability remain open to further investigation. Taking organizational emergence as a process comprising entrepreneurs engaging in actions that produce outcomes, we propose hypotheses about the social mechanisms of organizational construction involved in investing resources, developing routines, and maintaining boundaries. Distinguishing between initial founding conditions versus subsequent activities, our results not only confirm the liability of newness hypothesis, but also reveal a much higher risk of failure in organizations' early lifetime than rates found in previous research. Moreover, our results highlight the importance of entrepreneurs' continuing effort after their initial organizing attempts. Whereas only a few initial founding conditions lower the risk of failure, subsequent entrepreneurial activities play a major role in keeping the venture alive. Entrepreneurs contribute to whether a venture survives through raising more resources, enacting routines, and gaining increased public recognition of organizational boundaries. After controlling for financial performance, our results still hold. Based on our analysis, we offer suggestions for theory and research on organizations and entrepreneurship.

Upper Echelons and Executive Profiles in the Construction Value Chain: Evidence from Italy

Which executive profiles currently govern the construction value chain? Addressing this lively research question is the key point of our article and it appears central to scholars, practitioners, and policymakers interested in project management in general, and construction and real estate in particular. For this reason, we draw from Upper Echelons Theory in studying the executive profiles of 109 important firms currently active in Italy. Our statistical analysis shows that, although homogeneity substantially regards the executive's gender, age, and level of education, heterogeneity is associated more with his or her functional background. We thus prospect some conceptual and methodological avenues for further analyses in this challenging area of research.

Why do firms employ foreigners on their top management team? An exploration of strategic fit, human capital and attraction-selection-attrition perspectives

The number of foreigners appointed to top management teams has increased significantly over the past decade. However, the question of why some firms elect to employ foreign nationals in top executive positions remains unclear. This study tests competing explanations based on strategic fit, human capital and attraction—selection—attrition perspectives. Results from empirical tests utilizing a multi-level methodology on a sample of Swiss publicly listed companies suggest that degree of international diversification is positively associated with the likelihood of having a foreign executive, whereas human capital characteristics do not explain the propensity to employ a foreigner on the top management team. In addition, nationality diversity at the board level, as well as the international experience of the top management team, predict the probability of having a foreign top executive.