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Towards a Multidisciplinary Definition of Innovation - Baregheh, Rowley & Sambrook - Article

Towards a Multidisciplinary Definition of Innovation - Baregheh, Rowley & Sambrook - Article

To demonstrate the diversity of the definitions of innovation and to press the case for the development of an integrative definition, the article offers a few examples of definitions of organizational innovation where some emphasize different aspects of innovation and others are dedicated to a discipline. Ultimately some 60 definitions of innovation were collected from the various disciplinary literatures, and analyzed in order to get to one multidisciplinary definition of innovation.


Introduction

Organizations need to innovate in response to changing customer demands and lifestyles and in order to capitalize on opportunities offered by technology and changing marketplaces, structures and dynamics. Organizational innovation can be performed in relation to products, services, operations, processes, and people. There is agreement that in order to both sustain their competitive position and to strengthen it, organizations and economies must innovate and promote innovation. Innovation is a key policy and strategic issue. Innovation is tightly coupled to change, as organizations use innovation as a tool in order to influence an environment or due to their changing environments (internal and external). Different forms of innovation draw to varying extents on different teams, departments, and professional disciplines. Therefore, innovation is of interest to practitioners and researchers across a range of business and management disciplines, and has been discussed variously in, for example, the literature on human resource management, operations management, entrepreneurship, research and development, information technology, engineering and product design, and marketing and strategy. Whilst there is some overlap between the various definitions of innovation, overall the number and diversity of definitions leads to a situation in which there is no clear and authoritative definition of innovation.

Literature review

To demonstrate the diversity of the definitions of innovation and to press the case for the development of an integrative definition, the article offers a few examples of definitions of organizational innovation where some emphasize different aspects of innovation and others are dedicated to a discipline. Ultimately some 60 definitions of innovation were collected from the various disciplinary literatures, and analyzed in order to get to one multidisciplinary definition of innovation.

Results and discussion

Tables II and III show the attributes of innovation definitions that have been identified through the content analysis. These six attributes form the basis for an integrative definition of innovation, since they have been surfaced from key definitions drawn from different disciplinary areas.

These attributes are defined as follows:

  • Nature of innovation refers to the form of innovation as in something new or improved
  • Type of innovation refers to the kind of innovation as in the type of output or the result of innovation, e.g. product or service
  • Stages of innovation refers to all the steps taken during an innovation process which usually start from idea generation and end with commercialization
  • Social context refers to any social entity, system or group of people involved in the innovation process or environmental factors affecting it
  • Means of innovation refers to the necessary resources (e.g. technical, creative, financial) that need to be in place for innovation
  • Aim of innovation is the overall result that the organizations want to achieve through innovation.

On the basis of the key attributes of definitions of innovation and the descriptors used by those definitions to characterize the attributes, a diagrammatic definition of “innovation” is proposed in Figure 1. The diagram incorporates the six attributes identified as being common to the various disciplinary definitions of innovation.

Definition >> Innovation = The multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace

The definition begins with the term “multi stage process” as most of the definitions presented earlier have highlighted that innovation is not a discrete act and is a process.

Secondly, the article focuses on business organizations in this paper, although it has not explicitly articulated in the textual definition that innovation can occur in various social entities and contexts.

Third, as shown in the diagram, many definitions have focused on the means of innovation, that is the ways in which ideas have been transformed into new, improved and changed entities, whether products or services, for example, for new markets.

Strategic Entrepreneurship: Creating Competitive Advantage Through Streams of Innovation - Ireland & Webb - Article

Strategic Entrepreneurship: Creating Competitive Advantage Through Streams of Innovation - Ireland & Webb - Article

Most of today’s companies are faced with the challenge of changing frequently in order to meet the needs of those they serve, which is becoming increasingly difficult.

Tension: The need for a firm to constantly and rapidly change. A firm should exploit what it already is successful in, and explore what it is not successful in yet. Effectively managing this tension is becoming a key differentiator between maintaining organizational success and facing dwindling performance over time. It is namely shown that firms have difficulties sustaining their performance over a considerable period of time.


Introduction

Most of today’s companies are faced with the challenge of changing frequently in order to meet the needs of those they serve, which is becoming increasingly difficult.

Tension: The need for a firm to constantly and rapidly change. A firm should exploit what it already is successful in, and explore what it is not successful in yet. Effectively managing this tension is becoming a key differentiator between maintaining organizational success and facing dwindling performance over time. It is namely shown that firms have difficulties sustaining their performance over a considerable period of time.

Introducing strategic entrepreneurship

Strategic entrepreneurship (SE) = Term used to capture firms’ efforts to simultaneously exploit today’s competitive advantages while exploring for the innovations that will be the foundation for tomorrow’s competitive advantages. >> A firm should opt for a balance between opportunity seeking (exploration) and advantage seeking (exploitation).

Effective SE helps the firm to develop relatively sustainable competitive advantages, which are difficult to understand for competitors and difficult to imitate.

The actions taken to transition from exploration to exploitation, and from exploitation to exploration poses challenges.

Refer to Figure 1 for some individual attributes of strategy, entrepreneurship and SE.

Exploration; benefiting from diverse investments

Identifying ways to position a firm in one or more market spaces to deal with environmental change is a key outcome of exploration activities. Exploration’s success depends on the firm’s ability to acquire new and diverse knowledge, and integrate that with existing knowledge.

Increases in the rate and complexity of environmental changes makes firms looking for more efficient means of explorations >> Strategic alliances and corporate venture capital programs are the outcome here, namely firms are able to share the risks and uncertainty of exploration activities.

There are structural and cultural mechanisms required to support exploration : the degree of centralization of authority, the standardization of procedures, and the formalization of processes. Organizational structures characterized by decentralized authority, semi-standardized procedures, and semi-formalized processes support exploration activities.

Exploitation; benefiting from focus

Exploitation rests on knowledge of a proven innovation, making it possible for firms to be aware of present needs and demands. Firms that are able to meet these needs and demands enjoy a competitive advantage.

Firms may also seek external partnerships when engaged in exploitation. Firms want to acquire and bundle complementary knowledge and resources to extend their ability to leverage existing capabilities and competitive advantages.

Exploitation is characterized by structural and cultural mechanisms that allow the firm to focus on a core set of knowledge and capabilities. Continuouslt acquiring diverse knowledge is not critical here, the need for speed requires that the firm focuses on already established knowledge. Because of this, extensive cross-divisional communication is not needed. A centralized structure is needed, and highly specialized, standardized and formalized routines also benefit a firm’s exploitation efforts. Experimental behaviors of employees are not needed here >> Slows down the process and introduce inefficiencies. Focus on what is known instead of what could be should be supported.

Global Teams That Work - Neely - Article

Global Teams That Work - Neely - Article

Employing a geographically dispersed, and culturally diverse workforce helps multinational companies to compete in the current business environment. However, managers guiding multinational teams are up against tough challenges. One basic difference between global teams that work and ones that don’t lies in the level of social distance – the degree of emotional connection among team members. Mitigating social distance is the primary management challenge for the global team leader.


Global Teams That Work

Employing a geographically dispersed, and culturally diverse workforce helps multinational companies to compete in the current business environment. However, managers guiding multinational teams are up against tough challenges. One basic difference between global teams that work and ones that don’t lies in the level of social distance – the degree of emotional connection among team members. Mitigating social distance is the primary management challenge for the global team leader.

Neeley has come up with the SPLIT framework that identifies and manages social distance, and it consists of five components:

  • Structure (and the perception of power): When talking about global teams, the structural factors that determine the social distance are the location and number of sites where team members are based, and the number of employees who work at each site. The major issue here is the perception of power. Example:
  • When the majority of a group is situated in country A, and two or three in country B and C, there may be a sense that the members from group a have more power, whereas in the group A, members might feel resentment towards the minorities, believing that the latter will try to get away with contributing less than its fair share.
  • When geographically dispersed team members perceive a power imbalance, they often come to feel that there are in-groups and out-groups. To correct perceived power imbalances between different groups, a leader needs to get three messages across:
    • Who we are: the leader should encourage sensitivity to differences but look for ways to bridge them and build unity
    • What we do: The team should be reminded that they share a common purpose have to direct their energy toward business-unit or corporate goals
    • I am there for you: Team members located far from the leader require frequent contact with him or her.
  • Process (and the importance of empathy): Empathy helps to reduce social distance. Because geographically dispersed team members have less face-to-face time and are thus less likely to have a sense of mutual understanding, global team leaders need to build the following deliberate moments:
    • Feedback on routine interactions: Leaders and members of global teams must actively elicit reflected knowledge, or awareness of how others see them.
    • Unstructured time: Unstructured communication is positive, because it allows for the organic unfolding of processes that must occur in all business dealings. Small talk is a powerful way to promote trust.
    • Time to disagree: Leaders should encourage disagreement both about the team’s tasks and about the process by which the task gets done.
  • Language (and the fluency gap): In global teams very often there are varying levels of fluency with the chosen common language, and this is likely to heighten social distance. For this reason, team members should respect three rules for communicating in meetings:
    • Dial down dominance: Strong speakers must slow down their speaking pace and limit the number of comments they make in a set time frame, as well as seeking for confirmation that they have been understood by the others.
    • Dial up engagement: Less fluent speakers should monitor the frequency of their responses in meetings to ensure that they are contributing.
    • Balance participation to ensure inclusion: Global team leaders must keep track of who is and isn’t contributing and deliberately solicit participation from less fluent speakers.
  • Identity (and the mismatch of perceptions): Global teams function the smoothest when members ‘’get’’ where their team-members are coming from. Yet, decoding someone’s identity and relating can be very difficult. Behavior can be revealing, hence particular behavior might signify different things for different identities. In order to adapt to one another, the following has to be taken into consideration:
    • Learning from one another: When adapting to a new cultural environment, a savvy leader will avoid making assumptions about what behaviors mean. Therefore leaders should ask for information in order to get a sense of how someone truly feels. A leader ought to solicit input as to empower others on the team, leading them to participate more willingly and effectively.
  • Technology (and the connection challenge): It must be carefully decided what types of communication will be used by global teams, as technologies can both reduce and increase social distance. When making this consideration, a leader must ask the following:
    • Should communication be instant?
    • Do I need to reinforce the message?
    • Am I leading by example?
The Discipline of Business Experimentation - Thomke & Manzi - Article

The Discipline of Business Experimentation - Thomke & Manzi - Article

When it comes to innovation, most managers must operate in a world where they lack sufficient data to inform their decisions, leaving them often to rely on their experience or intuition. Managers can, however, discover whether a new product or business program will succeed by subjecting it to a rigorous test. Yet, many organizations are reluctant to fund proper business experiments and have considerable difficulty executing them.


The Discipline of Experimentation with Business

When it comes to innovation, most managers must operate in a world where they lack sufficient data to inform their decisions, leaving them often to rely on their experience or intuition. Managers can, however, discover whether a new product or business program will succeed by subjecting it to a rigorous test. Yet, many organizations are reluctant to fund proper business experiments and have considerable difficulty executing them.

Most tests of new consumer programs are too informal, as they are not based on proven scientific and statistical methods, leaving executives to misinterpret statistical noise as causation – and making bad decisions.

Companies should conduct experiments if they are the only practical way to answer specific questions about proposed management actions. Also, they should only conduct an experiment if they know exactly what they want to learn. Only then they can decide if testing is the best approach and if so, what the scope of the experiment should be.

Very often executives need to go beyond the direct effects of an initiative and investigate its ancillary effects.

Before conducting any test, stakeholders must agree how they’ll proceed once the test results are in. Experiments are often needed to perform objective assessments of initiatives backed by people with organizational clout. When constructing and implementing a filtering process which decides what experiments will be conducted, it is vital to remember that experiments have to be part of a learning agenda that supports a firm’s organizational priorities.

Experiments must have testable predictions, yet the causal density of the business environment can make it very hard to determine cause-and-effect relationships. Environments are constantly changing, the potential causes of business outcomes are often uncertain or unknown, and so linkages between them are frequently complex and poorly understood.

To deal with environments of high causal density, companies need to consider whether it’s feasible to use a sample large enough to average out the effects of all variables except those being studied. Unfortunately, this is very often not doable.

However, it should also be said that managers sometime mistakenly assume that a larger sample will automatically lead to better data. The required sample size depends in large part on the magnitude of the expected effect.

When deciding on experiments, companies usually have to make trade-offs between reliability, cost, time, and other practical considerations. Three methods to reduce these:

  1. Randomized field trials – A large group of individuals with the same characteristics and affliction are randomly divided into two groups. It is closely monitored then whether the treated (test) group does better than the untreated (control) group. Randomization is essential, as it helps to prevent systematic bias. Still, successful randomization can be challenging.
  2. Blind tests – The Hawthorne effect is the tendency of participants in a study to modify their behavior when they are aware that they are part of an experiment. Blind tests can minimize this effect.
  3. Big data – The majority of consumer transactions occur in channels such as retail stores, where sample sizes are often smaller than 100, violating typical assumptions of many standard statistical methods. In order to minimize the effects of this limitation, firms can utilize specialized algorithms in combination with multiple sets of big data.

Sometimes firms pay a lot of money to conduct an experiment but then do not make the most of them. Therefore, executives need to take into account a proposed initiative’s effect on various customers, markets, and segments and concentrate investments in areas where the potential paybacks are highest.

Another thing companies might use is ‘’value engineering’’, where only the components that have an attractive ROI (return on investment) are implemented. Business experimentations allow companies to look beyond correlation and investigate causality, as sometimes executives only have a fragmentary understanding of their businesses, and the decisions they make can easily backfire.

The most important thing is that a lot of companies are finding out that the actual conducting of an experiment is only the beginning. Values come from analyzing and then exploiting the data.

Working Apart Together? Building a Knowledge-Sharing Culture for Global Virtual Teams, Creativity & Innovation Management - Zakaria Amelinckx & Wilemon - Article

Working Apart Together? Building a Knowledge-Sharing Culture for Global Virtual Teams, Creativity & Innovation Management - Zakaria Amelinckx & Wilemon - Article

The rise of global virtual teams is a phenomenon of globalization. At the same time, new information and communication technologies play an ever-increasing role in all aspects of global business relations, but are particularly important in the emergence of new global organizational work structures and virtual work environments. Information and communication technologies have been viewed as an indispensable tool for multinational corporations that choose to move beyond the geographic constraints of face-to-face employee interactions and endeavor to build a virtual workplace and/or use virtual teams as a new component of a generally traditional work structure. Whereas information and communication technologies are essential in the communication and knowledge-sharing processes for geographically dispersed employees, computer-facilitated communication.


Introduction

The rise of global virtual teams is a phenomenon of globalization. At the same time, new information and communication technologies play an ever-increasing role in all aspects of global business relations, but are particularly important in the emergence of new global organizational work structures and virtual work environments. Information and communication technologies have been viewed as an indispensable tool for multinational corporations that choose to move beyond the geographic constraints of face-to-face employee interactions and endeavor to build a virtual workplace and/or use virtual teams as a new component of a generally traditional work structure. Whereas information and communication technologies are essential in the communication and knowledge-sharing processes for geographically dispersed employees, computer-facilitated communication.

Technologies are only as effective as those using them. Even though information and communication technologies impact knowledge sharing, team coherence and performance, it is the human component in the virtual environment and the interactive relational bonds that facilitate or hinder the development of a shared knowledge culture and organizational learning. Creating a knowledge-based environment requires more than information and communication technology; it requires other crucial elements such as intra-team trust and intra-team relational bonds, leadership, intercultural communication competence, and cross-cultural training that foster a collaborative interactive permissive space.

This paper examines the following issues: (1) what are the cross-cultural challenges faced by global virtual teams?; (2) how do organizations develop a knowledge sharing culture to promote effective organizational learning among culturally-diverse team members? and; (3) what are some of the practices that can help maximize the performance of global virtual teams?

What and why global virtual teams?

Researchers suggest three main attributes for virtual teams;

  1. it is a functioning team that is interdependent in task management, having shared responsibility for outcomes, and collectively managing relationships across organizational boundaries
  2. Team members are geographically dispersed,
  3. They rely on technology-mediated communications rather than face-to-face interaction to accomplish tasks. In essence, team members are not collocated and definitely use technology-mediated communication such as information and communication technologies.

Global teams = A team that is comprised of individuals located in many different countries or geographic areas, and team members differ in their functionality, which adds complexity to group dynamics. The main idea behind this concept is that people are both geographically dispersed and functionally diverse.

Global virtual teams are not only separated by time and space, but differ in national, cultural and linguistic attributes, and use information and communication technologies as their primary means of communication and work structure

The potential advantages of global virtual teams are that they can create culturally synergistic solutions, enhance creativity and cohesiveness among team members, promote a greater acceptance of new ideas and, hence, provide a competitive advantage for multinational companies. The possible disadvantages are that they tend to have more time consuming decision-making processes and when miscommunication and misunderstandings occur, stress and conflicts among team members are heightened and less easily dispelled.

There are two key issues (illustrated in Figure 1) to implement global virtual teams.

Culture and knowledge sharing base

Knowledge sharing is often facilitated by communication that involves the exchange of meaning. The process of communicating is dynamic, multifaceted and complex. Cultural conditioning affects the evaluation of experience as well as the means by which information and knowledge is conveyed and learned. When miscommunication occurs, particularly in a cross-cultural setting, the sender and receiver should be seen as both active participants engaged in knowledge transfer and culturally mediated discourse. The ability to communicate effectively in a cross-cultural setting resides in the abilities of all participants to successfully decode and encode messages so that they are understood within the others’ cultural contexts.

Moreover, in computer-mediated environments, the means by which information is transferred is flattened, less dynamic and thus may become less salient, possibly less easy to grasp, retain and learn.

National Cultural Effects on Global Virtual Teams Intra-team Dynamics

Individuals from different cultures vary in terms of their group behaviors and communications styles. Several research has found that;

  • In order to understand the communication and behavioral priorities of those from a particular culture, one must understand the context in which they occur.
  • High context culture = Relying heavily upon the external environment for behavioral cues where people value subtle and indirect communication styles
  • Low context culture = Where the communication put less emphasis on non-verbal or behavioral cues, hence communication tends to be more direct, with an avoidance of ambiguity
  • Hofstede’s four cultural dimensions framework (power distance, uncertainty avoidance, individualism versus collectivism, and career success versus quality of life, originally labeled masculinity versus femininity) inform both global virtual team dynamics and can provide useful insight into how a shared knowledge culture can be constructed and how people interact in virtual teams

Organizational Culture Effects on Global Virtual Teams

Organizational culture is embedded in the national cultures in which an organization operates. Although both cultures play different roles, each influences the way things operate in multinational corporations.

Organizational or corporate culture = Includes the values and beliefs expressed in artefacts, symbols and practices as well as organizational language, traditions, myths, rituals, and stories. Another view: ‘It is the way we do things around here. In essence, corporate culture is the learned, shared, and tacit assumptions such as values, beliefs, and assumptions’

Information and communication technology as a facilitating tool for knowledge sharing

In information and communication technology-mediated environments where geographically dispersed and culturally diverse members electronically converse in English, the language used by members may further obscure intended meaning and hamper knowledge management when members assume that terms and slang in one English-language culture have identical meanings in another English language environment.

Individual team members need to be cognizant of English language variation in intra-team electronic communication, particularly in regards to tone, style, formality, salutations and closings, and aware that substantial sociolinguistic and grammatical variations exist within the global English-speaking community and will impact intra-team communications. Team members’ cultural differences in work emphasis, deadline adherence, project management style all need to be made transparent to the team and a synergistic team approach to each concern be mediated and agreed upon early in the team formation process. The role of information and communication technologies is regarded as a functional tool that facilitates the cross-cultural collaboration and communication. Information and communication technologies can provide a common medium for work and shared meaning.

Human challenges of virtual team membership

Understanding human challenges of virtual team membership in order to create a knowledge-sharing culture and capabilities provide numerous key implications for multinational corporations. What needs to be clearly emphasized and articulated here is the fact that teamwork is a culturally and linguistically bounded concept.

  • Creating effective team leadershipTeam leaders play a crucial role in effective global virtual team management and in creating a knowledge-sharing environment. The leader(s) co-ordinate activities/tasks, motivate team members, monitor and/or facilitate collaboration and address/resolve conflict. Team leadership must involve effective cross-cultural communication and understanding, ensure that there is a collective sense of belonging, and that team values, task assignment and plans are shared. Team leaders need to build intra-team participation, ensure that all ideas are heard, and monitor participation rates.
  • Managing conflict and global virtual teams dynamics – In information and communication technologies-mediated environments, addressing conflict situations and even detecting the existence of conflict, is not always straightforward. For example, in one hand, avoidance behavior may indicate conflict in certain cultures. On the other hand, confrontational behavior can lead to conflict in other cultures. Global virtual teams need to anticipate potential areas of conflict in the formation stage and develop norms/rules around conflict resolution
  • Developing trust and relationships – For global virtual teams, being both heterogeneous cultural entities and geographically dispersed virtual entities, the risk of potential misunderstandings and mistrust is heightened. Trust between group members as well as trust between the team and the organization is equally important. The ability to collaborate depends heavily upon trust as open reciprocity and sharing of information and knowledge will not freely occur without it.

According to some researchers, the formation of cross-cultural trust includes a reciprocal element in it and falls under two behavioral categories

  • Credibility where one party (focal) believes that the other party (referent) has capabilities, competence, expertise and resources to make a successful exchange that meets outcome expectations. Focal also believes that referent will act in a reliable and predictable manner to meet the expectations.
  • Benevolence includes beliefs about the emotional aspects of the referent’s behavior like positive intention to exchange. Such beliefs include a referent’s good will and that the referent will not jeopardize the exchange outcome, and will in fact support enhanced outcomes in the exchange.
  • Understanding cross-cultural differences;
  • Developing intercultural communication competences; Although using information and communication technologies can reduce certain cross-cultural barriers, team members need cross-cultural training to gain the desired cognitive, affective and behavioral competencies. These competencies respectively mean that people need to understand and recognize cultural differences; feel comfortable with various cultures; and thus act accordingly to suit cultural differences.

As a summary for practical suggestions, Table 1 highlights the need for numerous knowledge, skills and abilities in order for global virtual teams to work effectively in a virtual environment.

How GE is Disrupting Itself - Immelt, Govindarajan & Trimble - Article

How GE is Disrupting Itself - Immelt, Govindarajan & Trimble - Article

Glocalization is an approach where a company creates a great product in the home country and then distributes it on a global scale, with some adaptations to local conditions. Reverse innovation is the opposite of this, as then products developed for (usually) for markets in emerging economies are taken global.


How GE Is Disrupting

Glocalization is an approach where a company creates a great product in the home country and then distributes it on a global scale, with some adaptations to local conditions. Reverse innovation is the opposite of this, as then products developed for (usually) for markets in emerging economies are taken global.

GE feels the pressure to innovate, and whereas they earlier made us of the glocalization approach which forked fine, they now have to become very good at reverse engineering. They have to do this not only to expand beyond high-end segments in emerging giants countries, but also to preempt local firms in these countries from creating similar products and then disrupt GE in rich countries. Easier said: success in developing countries is a prerequisite for continued vitality in developed ones.

Glocalization and reverse innovation have to cooperate, which is easier said than done, as the two approaches are quite conflicting.

Almost all the people and resources dedicated to reverse innovation efforts must be based and managed in the local market, there the local growth teams need to have responsibility. When a product has become successful in the emerging market, they have to be taken global.

The glocalisation model became popular when opportunities in nowadays emerging markets were very limited. Therefore it was very normal for multinational producers to offer these markets modifications of products for developed countries. This approach also worked fine for GE, as it had increased their sales massively. Yet, at some point, a goal was set which aimed for accelerating organic growth at the company and to become less dependent on acquisitions. The realization that products had to be developed specifically for emerging markets led to GE executives to question two core tenets of glocalization:

  • Assumption 1: Emerging economies will largely evolve in the same way that wealthy economies did.
  • Assumption 2: Products that address developing countries’ special needs can’t be sold in developed countries because they’re not good enough to compete there.

Already before the financial crisis, the leaders of GE had been looking at emerging markets to help achieve their growth objectives, and they are now even counting more on these markets as growth in the developed world is slow, and much higher in emerging markets.

Moreover, GE embraces reverse innovation for defensive reasons, as when GE does not come up with innovations in poor countries, competitors from the developing world will. Reverse innovation is not optional, it’s like oxygen.

Glocalisation has defined international strategy for three decades, which explains why, as organizations follow strategy, glocalisation also has molded the way that multinationals are structured and run. This sometimes makes reverse innovation impossible. Venkatraman Raja experienced this, as when he proposed to develop, manufacture, and sell a simpler, easier-to-use, and substantially cheaper x-ray imaging product. Yet it was not approved, as his responsibilities did neither included general management nor product development. And it would prove even more difficult to sell the proposal internally.

Of course it is very difficult to change long-established structures, practices and attitudes, and the top leaders of the firm have to play a major role in this. The size of the opportunity has to be investigated firsthand, additionally to how it could be exploited and the teams running the corporation’s businesses also have to be encouraged to do the same.

The job of the CEO is to connect all the dots and then act as a catalyst. It’s to give initiatives special status and funding and personally monitor them on a monthly or quarterly basis. It is about pushing your enterprise to come up with the new organizational form that will allow product and business-model innovation to flourish in emerging markets.

GE developed a new form by learning from other companies’ experiences, as well as trying to find an internal group that somehow had managed to overcome the hurdles and achieve success. For GE this was the case with ultrasound machines. It became a very successful business in China, as a result of adjusting to the local needs, as well as an organizational anomaly in GE, which was the existence of multiple ultrasound business units. Three of them has little in common with the new business, as they focused mainly on premium products.

A fourth independent one was created, which evolved the local growth team (LGT) model, based on five principles:

  1. Shift power to where the growth is.
  2. Build new offerings from the ground up.
  3. Build LGTs from the ground up, like new companies .
  4. Customize objectives, targets ad metrics.
  5. Have the LGT report to someone high in the organization.

GE now has quite a lot of LGT’s in China and India, and business is still growing fast, however, progress has been uneven and some businesses are doing better than others. There is still a long way to go, and GE is going to try and see if it can create new markets, and has to learn how to operate on a different axis. The biggest challenge will be changing the mind-set of managers who have spent their careers excelling at glocalisation.\

Multinational and Multicultural Distributed Teams: A Review and Future Agenda - Connaughton & Shuffler - Article

Multinational and Multicultural Distributed Teams: A Review and Future Agenda - Connaughton & Shuffler - Article

Distributed teamwork has become commonplace within and among organizations. Indeed, nearly two-thirds of U.S. employees have engaged in virtual work. These individuals often work as part of a distributed team that consists of members from various cultural and national backgrounds.


Introduction

Distributed teamwork has become commonplace within and among organizations. Indeed, nearly two-thirds of U.S. employees have engaged in virtual work. These individuals often work as part of a distributed team that consists of members from various cultural and national backgrounds.

Prevalence of MNMC distributed teams

Research showed that diverse and distributed teams are becoming the norm for businesses and governments around the world because of the increased opportunities they provide. Although team members may work across major time zone differences, across internal business units, and across cultures, they can perform effectively.

Although the ability to use a wider resource base may be an advantage of MNMC distributed teams, these teams can present some challenges. Some researchers warn that 50 per cent of virtual teams would fail to meet either strategic or operational objectives due to the inability to manage the distributed workforce implementation risks. Also, the demands of working in a MNMC distributed team can be taxing to team members. As one professional explains in an article depicting her MNMC distributed team experiences, “There are delays in response and communication, and in such cases I might lose a day instead of a few hours… Communication and collaboration can take up a significant chunk of project time”. Understanding how to maintain effective MNMC distributed teams that meet the needs of both the team members and organization presents a challenge to both practitioners and researchers.

What constitutes culture in MNMC Distributed teams research

The current work on MNMC distributed teams, however, often has focused on a geographical facet, conceiving of culture in terms of broad national differences. Hofstede’s work is very often used to assess cultural differences in teams;

  • Individuals from the individualistic culture were perceived as transferring more knowledge than those from the collectivist culture
  • The conclusion is that globally distributed teams will be effective vehicles for knowledge sharing in an organization as long as individuals learn the cultural logic of others’ divergent beliefs. If not, culture is constructed as something which divides individuals
  • In virtual teams, the individualism–collectivism dimension is an important dimension of culture as it reflects the extent to which members are inclined toward teamwork and open to accommodating others ’views’

This paragraph is about research that is done on MNMC distributed teams and culture. There appears to be a strong focus on nationality when investigating culture in this body of research, and several researchers rely on Hofstede’s dimensions. Scholars also examine team composition, often referred to as cultural heterogeneity. Some findings suggest that cultural differences matter, whereas other research suggests that they may not in teams that experience high trust or regular communication. Further research exploring these issues is needed.

The role of distance in MNMC distributed teams

Distance is viewed as both a challenge and as a nonissue to MNMC distributed teams. Although some work continues to frame distribution as a constraint, some empirical findings suggest that distribution does not impair MNMC distributed team collaboration or performance. This variation points to the need for future research to clarify the role of distribution and its effects (or lack thereof) on team processes and outcomes. Moreover, it should be noted that generally, previous empirical research on MNMC distributed teams tends to treat distance as a discrete difference (i.e., the team is distributed or it is not distributed). Although few empirical studies explicitly frame distance as a step function, an implicit argument in several articles reviewed here is that greater distance places more constraints on teams.

Recurring themes in existing MNMC Distributed Teams research

Scholars interested in MNMC distributed teams have examined several topics, See Table 1. Some of these topics are highlighted in the articl:

  • Communication; This research has been concerned with pointing to communicative behaviors that are deemed effective in MNMC teams. Two behaviors emerge somewhat consistently in this research: frequent communication and face-to-face communication
    • Frequent communication. Several of these works suggest that communication frequency is a necessary ingredient in MNMC distributed team effectiveness. For instance, frequent informal and unplanned communication has been shown to be related to shared identity and shared context
    • Face-to-Face communication. Some articles privilege face-to-face communication as necessary for MNMC distributed team effectiveness. Face to face is found to be beneficial to reducing task conflict, fostering trust, and enhancing team dynamics
  • Conflict. Several researchers found that: (a) the way virtual team members manage conflict is crucial in their success performance, and (b) temporal coordination has some significant moderating effects on team performance. They examine conflict in terms of specific conflict management behaviors, including avoidance, accommodation, competition, collaboration, and compromise.
  • Temporality. These articles note relationships between temporality and MNMC distributed teams

MNMC distributed teams have several features

  • They involve various types of dispersion beyond temporal and spatial dispersion. Distributed teams are geographically distributed in that they are separated by (great) physical distance (different cities, different countries)
  • MNMC distributed teams may be permanent or temporary. In much of the current research, scholars conceive of these teams as temporary
  • Although members of MNMC distributed teams often communicate via technological means, they may not communicate exclusively in this manner. Indeed, as many of the articles reviewed indicate, some teams may choose to meet face to face, deeming it necessary for team effectiveness
  • They are made up of members who self-define as being (or are considered to be) from two or more national (nation-states), ethnic, and/or cultural backgrounds

Suggestions for further research

  • Adopt Multi-Faceted, Multi-Level Views of Culture
  • Future researchers should expand their conceptualization of culture to include not only multiple nationalities and demographics but also multiple team and organizational cultures.
  • Acknowledge the Complexities of Distribution
  • Future research must take into account the variation in distribution
    • Degree of virtuality. Virtuality (space, time, modality) is a matter of degree, and teams may be considered highly virtual or less virtual. 

A team’s degree of virtuality relates to the richness of the communication media typically used by members to accomplish tasks and the extent to which team members are separated by time and space.

  • Degree of distribution. Another type of variation among distributed teams concerns whether the team is partially or fully distributed. Partially distributed teams occur when some team members are distributed across various locations, whereas other team members are collocated.
  • History of the team. As in any team, prior knowledge about team members or experience working with a particular group of individuals can affect team dynamics.
  • Degree of (im)permanence. The relative permanence of the team has also been argued to be a feature of distributed teams. Other scholars note that virtual teams can be temporary work forms, where “members have never worked together before, and who may not expect to work together again as a group”
  • Degree of task complexity. Essentially,more complex tasks require higher levels of interdependence within a team, which can have an effect of many of these team processes, depending on where the team lies on other continua.
  • When Are Culture and Distribution Consequential to Teams?

Third, future research must look at how a multifaceted view of culture and these complexities of distribution relate to each other in influencing team processes and outcomes. For example, in combining the complexities of distribution (partially vs. fully distributed) with the complexities of culture, one may wonder if a team that is partially distributed may be challenged (or enhanced) by the subcultures that may arise as a result of different locations.

10 Rules for Managing Global Innovation - Wilson & Doz - Article

10 Rules for Managing Global Innovation - Wilson & Doz - Article

Companies know that in their global operations many new ideas and capabilities for innovation are hidden. However, it is rather difficult to exploit these new ideas and capabilities in global innovation projects, and companies also face several familiar challenges. Whereas challenges are familiar, solutions are not, as one solution might work in one area but not in the other. A part of the challenge of global innovation is how to duplicate the positive aspects of co-location while harnessing the one of a kind benefits of global initiative.


Companies know that in their global operations many new ideas and capabilities for innovation are hidden. However, it is rather difficult to exploit these new ideas and capabilities in global innovation projects, and companies also face several familiar challenges. Whereas challenges are familiar, solutions are not, as one solution might work in one area but not in the other. A part of the challenge of global innovation is how to duplicate the positive aspects of co-location while harnessing the one of a kind benefits of global initiative. The following is a set of guidelines that represent the foundation for successful global innovation projects.

1. Start small

It does not matter if there are very strong technological capabilities or a lot of customer knowledge at a particular site, as employees will struggle to contribute to a global project if they have only had experience in co-located development. This is because employees working in one location develop collective tacit knowledge and shared context, resulting in trust and confidence among co-workers. Projects taking place in multiple locations encounter differences in workplace practices, communication patterns and cultural norms, which might create tension. In order to be effective, dispersed teams need to establish a new set of collaboration competencies and create a collaborative mindset.

2. Provide a stable organizational context

When an organization undergoes major organizational change, the complexity of dispersed innovation escalates. In a climate of organizational uncertainty, project team members may become worried about job security and lose focus. Logically, it is impossible to only undertake global innovation projects when there is organizational stability. Managers should anticipate the side effects of reorganization on global innovation, and focus on creating an atmosphere of stability and boost the employees’ sense of self-worth and loyalty to the firm.

3. Assign oversight and support responsibility with a senior manager

When the knowledge base of a project is fragmented and project teams are scattered over several locations, issues are more likely to arise. It is difficult to handle these issues over a large distance, as disagreements can become personal. Therefore it is wise to create an explicit role for senior executives in projects, as this person can monitor progress and make key decisions to make sure that the project meets the firm’s strategic objectives.

4. Use rigorous project management and seasoned project leaders

A global innovation project needs a strong project management team to drive the project on a daily basis and strong team leaders supported by robust tools and processes. Firms can for example adopt rigorous quality programs to provide formal project management for global projects, or guild a corporate project-management capability. Keep in mind that global innovation projects are so complex that standard tools and procedures don’t always work well.

5. Appoint a lead site

In global innovation projects, one site will have to take the lead, as all sites can’t carry equal weight. This site is responsible for delivering the project on time and on budget.

6. Invest time defining the innovation

One of the benefits of co-location is that continuous learning and adaption can take place, allowing the design of the project or service to improve over the course of the project. In global innovation projects, everything has to be defined beforehand, in order for everyone working on the project to have the same understanding of the goals and their individual contributions to them. There is a positive correlation between investment in defining goals and technical specifications and the successful outcome of projects. Also, a global project cannot be effectively defined without some degree of co-location between the multiple functions and sites involved.

7. Allocate resources on the basis or capability, not availability

Effective staffing of a global project requires a lot of attention as to select and integrate the best possible knowledge and capabilities. A mistake many firms make is that they select teams based on availability opposed to capability. This is conflicting with the main goal of global innovation, which is to gather distinctive and differentiated knowledge and capabilities from around the world to create unique innovations.

8. Build enough knowledge overlap for collaboration

There has to be a certain degree of knowledge overlap between sites, otherwise critical interdependencies between modules may not be apparent until the integration phase, when problems are costly to correct.

9. Limit the number of subcontractors and partners

Managing relationships with external partners takes time and energy, so it makes sense in international projects to limit the additional complexity and management burden by keeping the number of subcontractors or partners to a minimum. Also, the subcontractors and partners have to be chosen wisely.

10. Do not rely solely on technology for innovation

Information and communications technologies have a role to play, but these tools should not be over relied on, as they tend to hide differences between locations, leading to misunderstandings and tension. Communication, especially in global innovation projects, should include face-to-face contact, in order for projects to run smoothly. It is important to keep in mind that one way of communication is not the best, it is the combination of multiple communication devices that will lead to success.

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