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Digital platforms controlled by Alibaba, Alphabet, Amazon, Facebook, Netflix, Tencent and Uber have transformed not only the ways we do business, but also the very nature of people's everyday lives. It is of vital importance that we understand the economic principles governing how these platforms operate. This book explains the driving forces behind any platform business with a focus on network effects. The authors use short case studies and real-world applications to explain key concepts such as how platforms manage network effects and which price and non-price strategies they choose. This self-contained text is the first to offer a systematic and formalized account of what platforms are and how they operate, concisely incorporating path-breaking insights in economics over the last twenty years.
Although many organizations encourage employees to voice, employees may be reluctant to voice directly because they are afraid that their supervisors will perceive it as challenging their face (i.e., the positive image or social value of an individual). Alternatively, employees could deliver improvements or express concerns to their supervisors using indirect and implicit approaches, which we refer to as ‘implicit voice delivery’. Applying face theory, we examine the antecedents and outcomes as well as two boundary conditions of implicit voice delivery in organizations with two studies. In Study 1, we define the construct and develop a measure of implicit voice delivery. In Study 2, we test our proposed model with supervisor-subordinate dyadic data from a time-lagged survey. Results demonstrate that concern for other people's face drives employees to express their voices implicitly and that this relationship is stronger when supervisors’ concern for their own face is high rather than low. In addition, implicit voice delivery is associated with supervisors’ favorable response in terms of voice endorsement. Furthermore, the effect on voice endorsement is stronger when the supervisor is more able to infer meaning from implicit messages. Theoretical contribution and managerial implications are discussed.
How should we distinguish between ethical and unethical ways of pursuing profit in a market? The market failures approach (MFA) to business ethics purports to provide an answer to this question. I argue that it fails to do so. The source of this failure is the MFA’s reliance on Pareto efficiency as a core ethical principle. Many ethically “preferred” tactics for seeking profit cannot be justified by appeal to Pareto efficiency. One important reason for this is that Pareto efficiency, as understood by the theory of welfare economics upon which the MFA relies, assumes a static conception of efficiency. This is a problem because many ethically “preferred” tactics can only be justified by appeal to dynamic efficiency considerations. I argue that, instead of Pareto efficiency, we should look to the value of wealth creation to understand the ethical constraints on how market actors may pursue profit.
Although the potential of arts to promote social inclusion is recognised, barriers to social inclusion for disabled people in the arts is under-researched. Based on 34 semi-structured interviews with disabled people and those without disability from four arts organisations in Australia, the paper identifies barriers for social inclusion for disabled people within performing arts across four dimensions: access; participation; representation and empowerment. Findings highlight barriers are societal, being created with little awareness of needs of disabled people, supporting the social model of disability. Findings have implications beyond social inclusion of disabled people within the arts, demonstrating how the arts can empower disabled people and enable them to access, participate and represent themselves and have a voice. Our framework conceptualises these four barriers for social inclusion for disabled people for management to change.
A business ecosystem is a community of multiple co-evolving actors with interdependent product offerings organized around a specific value proposition. While the extant literature focuses on these two structural elements of ecosystems that existed ex ante, we challenge this notion with our core discovery that ecosystem actors emerge in an ex post dynamic process. With a longitudinal qualitative study of the vertically disintegrated part of the Chinese mobile phone industry, we develop a two-dimensional process model of ecosystem emergence, namely the temporal dimension that delineates three processal stages of ecosystem emergence and the spatial dimension that highlights an architectural pattern of reciprocities between value chain and resource pool to enable the ecosystem emergence. We also offer inter-temporal enabling conditions during ecosystem evolution. These findings enable us to complement the ecosystem literature by elaborating the antecedents, outcomes, and enabling conditions of ecosystem emergence in relation to multiple types of ecosystem actors. We also shed light on the value chain (re-)configuring process which derives from the reciprocity between value chains and ecosystem resources.
The role of underwriters is altered in new seasoned equity offering deal types in which the offering follows quickly after its announcement. Controlling for the endogenous matching between issuing firms and underwriters, we find increased underwriter reputation mitigates the immediate price impact of announcing an accelerated bookbuilt offering, exacerbates the price impact of announcing a bought offering, and has no immediate price impact for fully marketed deals. In contrast, underwriter reputation positively affects price outcomes for fully marketed deals around the offer date. Reputation effects are not apparent in the absence of controlling for the endogenous matching.
This article uses a lawsuit between British engineers and Dominican merchants over a sugar estate mortgage to examine how transnational capital networks functioned at the local level during a moment of transition in the late nineteenth-century global economy. When Dominican courts ruled against the engineers, the firm unsuccessfully sought diplomatic intervention, raising questions on the one hand about the incremental construction of Dominican sovereignty and on the other about the links between diplomatic and business networks on the ground. It is situated within calls for new approaches to the history of the Dominican Republic that utilize international archives and focus on corporate bodies, both in local and Pan-Caribbean contexts.
Exposing under which conditions management innovation diffuses within firms, this study investigates at the individual level the mediating influence of middle managers’ voice behavior on the relationship between CEOs’ empowering leadership behavior and perceived management innovation. We also propose that the magnitude of this relationship depends on middle managers’ collectivist orientation. This study exploits a unique Moroccan sample of small and medium-sized enterprises (SMEs) and utilizes structural equation modeling to analyze the studied relations. We found that the positive relationship between CEOs’ empowering leadership behavior and management innovation is mediated by middle managers’ voice. This effect is conditioned by middle managers’ collectivist orientations, which positively influence their attention to CEOs’ signals and the value and frequency of their contributions to management innovation. While research has identified the external and organizational factors that shape management innovation, our study concentrates on the individual level and accentuates that middle managers’ closeness to management processes, combined with their access to technical knowledge, renders them essential to management innovation. We contradict arguments that middle managers may be less inclined to help management innovation to emerge. SMEs can systematically invest in management innovation by advancing their managerial capabilities and considering individual value orientations.
The success and competitiveness of an organization recruiting the emerging workforce i.e., millennials can be ascribed in part to the organization's corporate social responsibility (CSR) engagement. This study explores the impact of organizational CSR on Nigerian millennials' joining intention through CSR motive perceptions: CSR-based organizational attractiveness (CSR-based OA) and perceived altruism (PA). To examine the empirical relationship among variables, data were obtained from respondents who were seeking employment or in-between jobs. Results revealed that CSR-based OA and PA significantly mediate the relationship between CSR and millennial joining intention. Findings present a unique perspective that significantly expands the literature. The implications of results are discussed and recommendations to managers are presented.
We examine the value impact of independent directors nominated by activists (Activist IDs). Firms appointing Activist IDs experience larger value increases than firms appointing other directors, particularly when Activist IDs have private firm experience and when their nominators remain as shareholders. This value increase persists over a long period and is greater than that of activism events without director appointments. The increase is also higher among firms with greater monitoring needs and entrenched boards. Moreover, the appointments of Activist IDs are greeted more positively by the market, and Activist IDs obtain more favorable shareholder votes and additional future directorships.
Can private companies legitimately regulate sharing markets, and if yes, how? Whereas scholars have either criticized sharing platforms for expanding into private and public arenas or welcomed them to counterbalance encroaching government regulations, studies document their unbridled popularity. On the basis of a special version of social contracts theory pioneered by James Buchanan, we develop a heuristics that helps guide reasoning about the legitimacy of the sharing economy’s regulatory function. First, we discuss the conditions under which free and responsible individuals deliberately subject themselves to rules without their prior direct participation, that is, exit, voice, and constitutional limits. Second, we suggest sharing platforms can use novel ordo-responsibilities to establish a sharing constitution that takes these conditions into account. Third, we argue that sharing platforms can legitimately do so within an enabling institutional environment in society, the provision of which relies on the joint efforts of sharing platforms, political actors, and civil society.
This special issue is devoted to highlighting thinkers who have been overlooked within business ethics and who have important contributions to make to our field. We make the case that, as scholars of a hybrid discipline that also aims to address important issues of business practice, we need to look continually for new sources of insight and wisdom that can both enrich our discourse and improve our ability to generate ideas that have a positive impact on business practice. In this introductory essay, we discuss our rationale for creating this special issue, summarize the articles contained within, and close with thoughts on its significance for the field going forward.
1. To explain the reasons for the trend towards R&D decentralization and to describe the difference between ‘home-base-exploiting’ and ‘home-base-augmenting’ innovation sites inside the MNE.
2. To highlight the key stages in the development of foreign R&D units.
3. To explain the role of subsidiary initiatives in the innovation sphere and the functioning of the ‘corporate immune system’, geared towards destroying such initiatives.
4. To foster understanding on how clusters of innovation (COIs) contribute to MNEs’ new upstream FSA development, and function as cross-border ecosystems.
5. To examine the potential conflicts between host country research sites and the corporate office.
1. To describe the four characteristics of core competencies, which are the higher-order firm-specific advantages (FSAs) of the firm.
2. To explain the importance of the corporation’s ‘strategic architecture’ in the context of core competencies.
3. To develop an understanding of MNEs’ business model diversification, whereby the FSAs deployed in each business model, though at least different in part, should also mutually reinforce one another to drive growth and profitability.
4. To identify the bounded rationality and bounded reliability problems associated with MNEs outsourcing their R&D, if they want to maintain or build core competencies in innovation.
5. Based on the conceptual framework in Chapter 1, to analyze the managerial implications of an ill-conceived, sole focus on core competencies.