FREE ELECTRONIC LIBRARY - Books, dissertations, abstract

Pages:     | 1 |   ...   | 35 | 36 || 38 | 39 |   ...   | 54 |


-- [ Page 37 ] --

That’s been quite a learning path. The first years, I was like… we have to spray as little as possible. But in the end that was at the expense of the quality. Because you do get infections from some insects, if you spray too little or intervene too little, you get damage. It’s been a learning path and now the last five years after an almost integrated production, I know what’s possible and what’s not. (owner/manager Magritte) It appears that this focused adaptability increased the internal resource capital because they saw more applications for the resources that were available both within and outside the firm. As such, the presence of focused adaptability also increased the value of munification: it acted as an increased “absorptive capacity” (Cohen & Levinthal, 1990; Zahra & George,

2002) to detect opportunities in their network and the applicability of products derived from it.

Disciplined scrutiny. A consistent finding across our cases was also that, although the higher performing businesses developed broad levels of slack and adaptability, they were very punctual and strict in monitoring the dynamics of the firm and its environment. Flexibility was complemented with disciplined scrutiny to prevent the flexible form to turn into a chaotic form (Volberda, 1996). This finding is in line with some of the more pessimistic views on organizational slack that too much resources may result in managerial complacency, inefficiency and the pursuit of bad projects because of politics or lack of discernment (Bourgeois, 1981; Jensen, 1986). In addition, it resonates with the notion in entrepreneurship that risk-taking is not equivalent to foolhardiness (Schumpeter, 1934; Mintzberg & Waters, 1982; Timmons & Spinelli, 2004). Rather, entrepreneurs tend to follow a “test-the-water” approach, always sensing an environment with minor probes before plunging in” (Mintzberg & Waters, 1982: 495).

Chapter 6

The disciplined scrutiny was thus manifested as a frequent analysis of organizational performance, the strict follow-up of what was going on in the firm, but also the careful assessment and comparison of opinions that were drawn from their network. The ownermanagers of Fabre, for example, organized weekly reflection moments, another deliberate moment of slack time, to check on the past week and seek ways to improve on a matter of

topics, including environmental issues:

“In the past, I had to be very strict about [VMS], because I knew that they were going to come and check us. Now I don’t have to do that anymore. They [the personnel] think it is so useful, that they will say “show us” [the VMS-score] and then we try to think about ways to improve and set goals for the next year. We meet every Friday, drink a beer or two and then we’ll go over everything that has happened during the week, what has gone wrong and what the plans are for the next week. That’s very good. And fun. I don’t know any other firm where they do this. We’ve been doing this for years! (…) We already did the weekly meetings, but it’s MPS that has made them more conscious about the products we use.” (o/m Fabre) Also, although most firms had advisors, the higher performing firms were more prudent in following their advice. Since advisors were paid in the first place to maximize yield and plant quality, they were not always inclined to give advice on the risky methods of using less fertilizer and pesticides. Ensor, for example, considered his advisor “A second opinion on your business. It’s still me that has to do it.” In contrast, Van Dyck argued “It’s not my job to say “you have to spray with this or that”. They [advisors] know perfectly with what product you can spray against funguses, against pests, against insects. They have to present us the environmentally friendly products.” (o/m Van Dyck) Besides its role in scrutinizing and monitoring the firm and its environment, disciplined scrutiny created confidence and additional resources in its own way as well.

Careful control and monitoring of the firm increased the knowledge about the firm and decreased the likelihood of having to jump from one problem to another. As such, there was more room for strategic assessment of the firm’s challenges and opportunities. As Ensor’s

owner-manager put it:

“It’s the same as in school. Why is one better than the other? You have to do your homework and you have to do good exams. Otherwise you don’t get your degree. So if you’re not disciplined as a grower and don’t monitor and assess everything carefully… (…) If you just say “we’ll see, maybe next week…” Well yeah, that’s how it [problems in the firm] starts. You have to be really disciplined. That’s what you see in all top firms, they’re all very disciplined. It’s because you’re disciplined that you have better quality, better sales and more room to do whatever.”(o/m Ensor)

–  –  –

As our data shows, the disciplined scrutiny allowed the firm to increase time and knowledge in the firm, and be more aware of the value of how to dedicate its resources and time to munification and the improvement of VMS performance.

In sum, we found that the combined subconstructs of “bootstrapping”, “focused adaptability” and “disciplined scrutiny” allowed the higher performing firms to build up the internal resources that fostered the realization of their proactive environmental intentions. The data also showed how each subtheme complemented the other two in making the firm organic. For example, the focused adaptability allowed the cognitive stretch that was needed to engage in the bootstrapping of internal resources and rethink responsibilities within the firm. The disciplined scrutiny, in turn, resulted in the monitoring that was shown to be key for the owner-managers confidence to leave the firm in the hands of his employees and helped to identify the necessary and appropriate complementary capabilities and resources in the

external environment. As a result, we propose:

Proposition 2: Organizations that are able to increase their internal resource capital through the interdependent capability of bootstrapping, focused adaptability and disciplined scrutiny will be more able to achieve their intended proactive environmental strategies than those that do not.

6.5.3. Interaction effects Throughout the analysis of both the organicity and the munification constructs, it was clear that the higher performing firms were proficient in both capabilities while the lower performing firms were not. Given that the specific context predicted low presence of internal resource capital, external resource capital and institutional capital, one could expect that a concerted effort was needed on all three aspects to create the appropriate conditions for proactive environmental strategies. Yet, emerging from our data, we found that the presence of organicity had a positive effect on the effectiveness of munification in creating external resource and institutional capital. Similarly, we found that the presence of external resource capital had a positive effect on the effectiveness of organicity in creating internal resource capital. We explore these interaction effects in more detail below.

We have mentioned several instances where the effectiveness of munification capabilities hinged on the presence of organicity. The firm was able to leverage its munification abilities when it was flexible enough to dedicate managerial time and resources

Chapter 6

to its development, and remained prudent in how its precious resources were dedicated in this process. In addition, the critical scrutinizing of the resources and knowledge that could be derived from the environment, along with the flexibility to absorb them in the firm made the environment itself a more interesting source of opportunities and ideas. Similarly, the creativity and institutional detachment of the higher performing firms to envision alternative institutional spaces greatly increased the effectiveness of institutional agency in creating

institutional capital. Therefore, we propose:

Proposition 3a: A firm will be more effective in leveraging its munification capabilities for the creation of external resource capital when it also possesses organicity capabilities.

Proposition 3b: A firm will be more effective in leveraging its munification capabilities for the creation of external institutional capital when it also possesses organicity capabilities.

As far as the influence of external resources on organicity is concerned, we see at least two effects. First, external resources create possibilities for developing externalized versions of slack. Earlier studies have hinted at the interplay between munificence in the environment of an organization and organizational slack (Bourgeois & Singh, 1983; Dess & Beard, 1984).

In fact, Bourgeois and Singh (1983) conceptualized organizational slack as consisting of both internal as well as external sources. The latter type of slack, which they called “potential slack”, was defined as “the capacity of the organization to generate extra resources from the environment” (Bourgeois & Singh, 1983: 43). As such, munification itself can become a source of bootstrapping, in the sense that it invests in the creation of such potential slack resources in the external environment to maintain flexibility and adaptability (Boons & Berends, 2001). A good example in our data was the firm’s reliance on external advisors.

Given that these advisors visited many firms, they acted as a source of “outsourced networking”. The knowledge that this advisor could acquire by visiting many firms was a valuable source of slack to individual firms as well. Second, a firm will be more able to use its ability to harness multiple perspectives and to assess potential alternatives when there are more perspectives and alternatives to consider. For example, it was only because a government consultant with integrated production experience existed, that Magritte was able to consider involving him in his production. The more diverse a firm’s network becomes in terms of valuable resources and knowledge that the firm can tap into (Van Wijk, Van Den Bosch, & Volberda, 2003; Rodan & Galunic, 2004), the more it can be expected it will cognitively detach from taken-for-granted assumptions and behaviors (Brown & Duguid,

–  –  –

1991) and create more value in the firm’s internal resource capital (Zaheer & Bell, 2005). We

therefore propose:

Proposition 3c: The greater the external resource capital of the firm, the more effective a firm will be in leveraging its organicity capabilities for the creation of internal resource capital.

6.6. Discussion We began our paper by noting that many small businesses experience difficulty in enacting their proactive environmental strategies. More specifically, despite their generally positive attitude towards environmental strategies, small businesses point to the lack of internal resource capital and lower levels of external resource and institutional capital both in general and in support of PES to explain the generally low penetration of environmental strategies (Merritt, 1998; Petts et al., 1999; Tilley, 2000; Gerstenfeld & Roberts, 2000;

Pages:     | 1 |   ...   | 35 | 36 || 38 | 39 |   ...   | 54 |

Similar works:

«econstor www.econstor.eu Der Open-Access-Publikationsserver der ZBW – Leibniz-Informationszentrum Wirtschaft The Open Access Publication Server of the ZBW – Leibniz Information Centre for Economics Faasch, Britta Master Thesis Der Einfluss der leistungsorientierten Bezahlung auf die Public Service Motivation und die intrinsische Motivation von Beschäftigten im öffentlichen Sektor: Ein empirischer Test der Motivation Crowding Theory am Beispiel der Kreisverwaltung Potsdam-Mittelmark...»

«The German Socio-Economic Panel study SOEPpapers on Multidisciplinary Panel Data Research SOEP — The German Socio-Economic Panel study at DIW Berlin 814-2015 Stressed by your job: What is the role of personnel policy? Elena Shvartsman and Michael Beckmann SOEPpapers on Multidisciplinary Panel Data Research at DIW Berlin This series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally...»

«Data Protection and Compliance in Context The British Computer Society BCS is the leading professional body for the IT industry. With members in over 100 countries, BCS is the professional and learned society in the field of computers and information systems. BCS is responsible for setting standards for the IT profession. It is also leading the change in public perception and appreciation of the economic and social importance of professionally managed IT projects and programmes. In this...»

«NBER WORKING PAPER SERIES CHINA’S EMBRACE OF GLOBALIZATION Lee Branstetter Nicholas Lardy Working Paper 12373 http://www.nber.org/papers/w12373 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 2006 This paper is part of a larger research project, China’s Great Transformation: Origins, Mechanisms, and Consequences of the Post-Reform Economic Boom. We are grateful to the project editors, Loren Brandt and Thomas Rawski, and to participants at the...»

«Comprehensibility of the EU Energy Label – Results of two focus groups and a representative consumer survey Elke Dünnhoff, Alexandra Palm Funded by Ministry of Economic Affairs, Climate Protection, Energy and Regional Planning, Rhineland-Palatinate Mainz, 15.10.2014 Seppel-Glückert-Passage 10 55116 Mainz Tel. (0 61 31) 28 48 0 Fax (0 61 31) 28 48 66 Verbraucherzentrale info@vz-rlp.de Rheinland-Pfalz e.V. www.vz-rlp.de Contents 1 Introduction and methodology 2 Summary 3 Background and...»

«BG0000179 Energy Forum September 1 7 129,2000 Varna (Bulgaria) PRESENT REGULATORY SITUATION IN SOUTHEAST EUROPEAN AND BLACK SEA COUNTRIES Dr. Klaus Brendow, World Energy Council, London/Geneva Regulation an old, unpopular acquaintance Regulatory issues have always determined the grid-based energy industries (electricity, gas, heat) in Southeast European and Black Sea countries. Regulation is not a new issue. During central planning and most of the 1990s, the ministries of finance regulated...»

«D I S C U S S I O N PA P E R S E R I E S Discussion Paper No. 132 Determinants of governmental redistribution Klaus Gründler Sebastian Köllner July 2015 Chair of Economic Order and Social Policy Determinants of governmental redistribution Klaus Gründler Sebastian Köllner Discussion Paper No. 132 July 2015 Julius Maximilian University of Würzburg Chair of Economic Order and Social Policy Sanderring 2 D-97070 Würzburg Phone: 0931 – 31 86177 Fax: 0931 – 31 82744 E-Mail:...»

«Essays on Top Management Teams and Chief Strategy Officers: Behavioral Perspectives DISSERTATION of the University of St. Gallen, School of Management, Economics, Law, Social Sciences and International Affairs to obtain the title of Doctor of Philosophy in Management submitted by Christine Scheef from Germany Approved on the application of Prof. Dr. Günter Müller-Stewens and Prof. Tomi Laamanen, PhD Dissertation no. 4368 Difo-Druck GmbH, Bamberg, 2014 The University of St. Gallen, School of...»

«  A Simple Guide to Material Master Data Governance By Will Crump President, DATUM LLC Summary Master data within an enterprise is often segmented by domain. Examples of common domains include Customer, Suppliers, Assets, Finance, Employee and Materials/Products, among others. Each master data domain has a unique identity that can vary based on a company’s business operations or organizational relationships. Elements within master data domains may also overlap in some cases, especially as...»

«Die sozialpsychologischen Folgen von TTIP, CETA und TiSA: Wie die Freihandelsabkommen Radikalisierung und Extremismus anfachen könnten von Prof. Dr. Eva Walther, Universität Trier “We cannot deny the existence of a global economy that has dominated political action”. (Pamela, K. Smith, 2011, p. 105). I. Einführung Tag für Tag ist es das Gleiche: In allen Zeitungen, auf allen Sendern. Der Extremismus ist auf dem Vormarsch: IS, Boko Haram, NSU, Linksradikale, Evangelikale; die Liste...»

<<  HOME   |    CONTACTS
2016 www.book.dislib.info - Free e-library - Books, dissertations, abstract

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.