Ast, F., 2019. The Deliberative Test, a New Procedural Method for Ethical Decision Making in Integrative Social Contracts Theory. Journal of Business Ethics, Vol. 155, Issue 1: pp. 207-221 .
Integrative Social Contracts Theory (ISCT) is a popular framework to assist managers in making decisions on international moral dilemmas. Although the theory has been praised for its comprehensiveness and sophistication, commentators have raised concerns regarding the justification and identification of substantive hypernorms, fundamental moral principles valid across cultures. This paper introduces the deliberative test, a new method for testing the cross-cultural validity of ethical norms in ISCT. The test relies on the concept of Deliberative Capacity, arising from new developments in system-level deliberative democracy research, which studies deliberation at the level of national societies and over time. Based on this recent stream of research, the deliberative test has the potential of providing better guidance for managers to decide which norms to follow in case of conflicting standards between home and host countries.
Carrera, A.; Vázquez, P.; Cornejo, M., 2019. ¿Cómo se gobiernan las mayores empresas de control familiar de América Latina?. Harvard Deusto Business Review, Nº 285: .
Vassolo, R.; Casarin, A.; Lazzarini, S. G., 2019. The forgotten competitive arena: Strategy in natural resource industries. Academy of Management Perspectives, Published Online: 4 Mar 2019: .
Despite their importance in the global economy, the complex competitive dynamics of natural resource industries and their implications for business performance remain largely understudied in strategic management. This article identifies major traits that are highly relevant in natural resource industries, including the standardized nature of their products, their emphasis on process-based innovations, the presence of dual physical and financial derivative markets, and the importance of non-market forces that affect the creation and appropriation of rents from natural resources. We propose a general framework that guides our observations, and we discuss research opportunities for the study of firm strategy in natural resource industries.
Vassolo, R.; Cruz, A.; Reyes, T., 2019. Liability of Middleness Revisited: The Advantages for Mid-Sized Competitors in Renewable Natural Resource Industries. Management and Organization Review, Published online: 11 April 2019: .
Size is an important antecedent of firm survival, and several studies theoretically sustain and empirically support a ‘liability of middleness’. Indeed, it is widely believed that companies should act strategically to either become large or remain small and occupy a niche position, because mid-sized firms face the strongest market selection pressures. This study challenges that logic in renewable natural resource industries. Measuring size as product-line scale and firm-level portfolio breadth, we argue that in industries characterized by cost competition, the lack of product differentiation, large capital investments, and sharp price oscillation, scale and breadth have a curvilinear effect on survival that favors mid-sized firms rather than penalizing them. An empirical analysis of the US pulp and paper (P&P) industry over the period 1970–2000 strongly supports our arguments. This study is particularly relevant for emerging economies, in which natural resource industries represent an important portion of the total economic activity.
Vassolo, R.; Sevil, A.; Mac Cawley, A. F.; Sepúlveda Vargas, J. I., 2019. Entry‐Timing Advantages in Renewable Natural Resources Industries. Journal of Management Studies, First published: 19 January 2019: .
In this paper, we explore the conditions of entry‐timing advantages in renewable natural resource industries. Drawing from behavioural theory of the firm, we classify firms in two groups depending on the different heuristics used to make entry decisions when facing the cyclical endogenous nature of these industries: crowd firms are procyclical, making decisions based on the current phase of the industry cycle, whereas anti‐crowd firms follow a countercyclical strategy, making uncertain, and risky decisions by estimation of the next phase of the cycle. Therefore, anti‐crowd firms anticipate the deployment of resources each cycle, potentially gaining entry‐timing advantages beyond those provided by traditional competitive isolating mechanisms. Through a mathematical simulation of a performance feedback model, we reveal that the entry‐timing advantage of the anti‐crowd group becomes possible when the rivalry in the industry and the price sensitivity of competitors are high, and when the time required to deploy the resources is short.
Crespo, R.; Debeljuh, P.; Rodríguez, O.; Mesurado, B.; Idrovo Carlier, S., 2018. The Development and Initial Validation of the Multidimensional Flourishing Scale. Current Psychology, First Online: 17 August 2018: pp. 1-10.
The objective of this paper is to develop a Multidimensional Flourishing Scale and to study its psychometric validation. The paper includes three different studies. Study 1 analyzes the development of the item for each dimension, the initial factor structure (using parallel analysis and exploratory factor analysis), and the internal consistency. In Study 2, the confirmatory factor analysis was used to confirm the scale structure, and also the convergent validity was analyszed. Finally, in Study 3, the construct validity and stability of the Multidimensional Flourishing Scale across six countries (Argentina, Chile, Colombia, Mexico, Portugal and Spain) are studied. The analyses presented herein show that the scale is psychometrically valid, and that has a strong internal consistency reliability coefficient for the entire scale and for each subscale in the different studies presented and the six countries included in the third study.
Murcia, M.; García Sánchez, J.; Mesquita, L.; Vassolo, R., 2018. Towards a penrosian understanding on recessions and industry dynamics. Academy of Management Proceedings, 2018, No. 1: .
In this article, we claim that a ‘genuine’ Penrosian approach views a firm's performance as resulting from the simultaneous interaction of the firm’s asset base, the asset bases of competitors, and constraints emanating from the broader industry, public policy, and macroeconomic environment. Admittedly, scholarly attention has been geared towards the former two components. Traditional models most frequently assume that firms build up market positions as if linearly seeking a higher equilibrium of competitive advantage, that is, they tend to overlook the dynamic environment brought about by macroeconomic volatility. Revisiting Penrose’s 1959 contribution, we further probe into her fundamental question on the development opportunities for the growth of firms and the competitive relationships between small and large firms in the presence of macroeconomic fluctuations and, specifically recessions. We provide a finer- grained understanding of how recessions differing in depth (i.e., how far down economic output moves) as well as duration (i.e., the number of periods of declining activity from peak to trough), may cause either damaging or positive effects on large vis-a-vis small players. The combination of the two mechanisms of depth and duration generate different scenarios, based on which, we derive theoretical propositions. Building upon the ‘missing link’ of Penrose’s contribution, our model distills different combinations of recessions and strategic foci which would lead to what we term as competitive leapfrogging. This way, we move forward from the ‘intuitive acceptability’ of Penrose’s original insights in this regard, towards theoretical systematization and potential to assess empirical validity.
Murcia, M.; Rocha, H.; Birkinshaw, J., 2018. Business schools at the crossroads? A trip back from Sparta to Athens. Journal of Business Ethics, Vol. 150, Issue 2: pp. 579–591.
Some business schools have come under considerable criticism for what observers see as their complicit involvement in the corporate scandals and financial crises of the last fifteen years. Much of the discussion about changes that schools might undertake has been focused on curriculum issues. However, revisiting the curriculum does not get at the root cause of the problem. Instead, it might create a new challenge: the risk of decoupling the discussion of the curriculum from broader issues of institutional purpose. In this article, we argue that the most pressing need facing business schools is not to teach new courses to be responsive to social demands and stay relevant. Instead, it is to revisit their basic mission -the principles and beliefs on which they were founded -and then to re-evaluate their curriculum design choices in this light. We contrast the Spartan and Athenian educational paradigms as a way of shedding light on the nature of a coherent response.
Rocha, H., 2018. Capitalism, Collaboration and the Purpose of Business Organizations. Academy of Management Proceedings, Vol. 2018, No. 1: .
What is the role of business organizations and competition in overcoming the current crisis of capitalism? Following the call for revisiting “the implicit assumptions about what drives managerial and organizational behavior” (Hollensbe et al., 2014:1228), I make explicit the dominant assumptions on the purpose of business and the key process to achieve it, and interview Jay Coen Gilbert and Raymond Miles, the pioneers of B Corps and Collaborative Entrepreneurship, two phenomena that challenge the current building blocks of management research. I argue that rediscovering the purpose of business organizations, which encompasses but is not limited to profit increase, and prioritizing cooperation over competition are two key steps to create the conditions for channeling managers’ motivation and talents towards a more humane world. Phenomenon-driven research questions at the individual, organizational, societal and business school levels are proposed at the end of the article.
Salvato, C.; Vassolo, R., 2018. The sources of dynamism in dynamic capabilities. Strategic Management Journal. Special Issue: New Theory in Strategic Management, Vol. 39, Issue 6 : pp. 1728-1752.
We develop a multi‐level theory of dynamic capabilities (DCs) that explains resource dynamics by giving a central role to persons and interpersonal interactions rather than to abstract, firm‐level entities. Our theory integrates the contrasting approaches to DCs in individual‐, interpersonal‐, and organization‐level scholarship. Existing organization‐level approaches portray DCs as collective endeavors but do not specify how they emerge and operate within organizations, while micro‐foundational approaches illuminate actors’ contributions but reduce a firm's DCs to the cognitions and actions of a few top managers. Our integrated theory instead explains DCs as effortful social accomplishments emerging from individual employees’ capacity to leverage interpersonal relationships conducive to productive dialogue. The framework we propose offers new ground for understanding how DCs can be sources of sustainable competitive advantage.
How can firms navigate the transformations that relentlessly raise new threats and opportunities in dynamic environments? We suggest that firms develop dynamic capabilities to navigate change when their employees are connected through high‐quality relationships, empowering their innovative potential. Strategic adaptation is possible when people are given the opportunity to act, think, and feel creatively while performing tasks, thus envisioning opportunities to improve how the firm operates. This ability supports sustainable, firm‐level innovation when employees are connected through interpersonal relationships founded on constructive dialogue. Dialogue allows participants to advance and accept proposals for change even in the presence of conflicting interests and viewpoints. Managers may therefore enhance their firm's capacity for change by fostering individual integration and developing contexts that facilitate dialogue and constructive opposition.
Vassolo, R.; Reyes, T.; Cruz Novoa, A.; Sevil, A., 2018. Industry competitive dynamics in the face of incremental innovation. Academy of Management Proceedings, Vol. 2018, No. 1: .
This paper examines how incremental changes affect structural properties of the industry, and therefore, the competitive dynamics. Specifically we analyze the relationship between innovation, firm size and growth in capital intensive industries. In this context innovation is mainly based on processes, in the form of incremental changes. We argue that, in a stationary stage, firm growth is directly proportional to firm size, so larger firms take advantage of the isolating mechanisms in place. However, in the presence of incremental changes firm growth is indirectly proportional to firm size, since smaller firms pose higher strategic flexibility and are able to adopt innovations faster. Our findings confirm the dependency of growth rate on firm size, rejecting Gibrat’s Law of Proportionate Effect.
Vassolo, R.; Reyes, T; Sepulveda, J.; Zhang, S., 2018. The effect of CEOs’ overconfidence on performance during macroeconomic recessions. Academy of Management Proceedings, Vol. 2018, No. 1: .
Despite decades of analysis on the effect of recessions on firms' financial performance, managers often fail to implement strategies that research has proven to be successful when facing macroeconomic contractions. We analyze the effect of CEOs' overconfidence on the performance of their companies during macroeconomic recessions. In general, overconfidence biases CEOs' decisions, leading them to overinvest in low-value projects and underestimate risk, therefore decreasing firm's organizational and financial flexibility. During recessions, firms require a greater ability to adapt to organizational changes, as there are greater nontrivial pressures on companies' profitability. Therefore, we contend that a CEO's overconfidence is especially dangerous to the performance of his/her company during a recession. We also argue that a CEO with previous experience in that position during an economic recession can help mitigate the negative effect of overconfidence. Empirical results from 214 industries in the US during the period 1992 - 2015 strongly support our reasoning.
Vazquez, P.; Rocha, H. , 2018. On the goals of family firms: A review and integration. Journal of Family Business Strategy, Vol. 9, Issue 2: pp. 94-106.
In this article, we present a review and integration of 76 articles published in peer-reviewed journals from 1992 to 2016 in order to answer two research questions: what are the goals of family firms and how are they integrated according to extant research? We complement noteworthy prior efforts at synthesizing the goals of family firms by focusing on the theory-development elements behind research on this body of knowledge. Our findings are twofold: first, the goals of family firms are diverse and classified in dichotomous categories; second, the majority of studies integrate these goals based on a trade-off logic. We discuss contributions and suggestions for further research at the end of the paper.
Carrera, A.; Caldart, A.; Cornejo, M., 2017. Cómo organizar la agenda del director general. Claves para ser un CEO eficaz. . IESE Insight, Nº 32: pp. 44-51 .
McDermott, G., 2017. Rethinking international organizations: A review of organizational progeny: Why governments are losing control over the proliferating structures of global governance. Perspectives on Politics, Forthcoming: .
Vassolo, R.; García Sánchez, J.; Mesquita, L., 2017. Competitive Dynamics and Early Mover Advantages under Economic Recessions. Revista de Administração de Empresas, Vol. 57, No. 1: .
In light of the recent macroeconomic instability in global markets, we examine the evolution of competitive dynamics and firm profitability when industries are subject to recessions. Although ordinary intuition leads most to view recessions as harmful, we highlight conditions under which they enhance the relative value of industry-level supply-side isolating mechanisms, thereby affording early movers significant and sustainable profit advantages vis-à-vis laggards. We observe that the distribution of firm size within the industry switches from a bi-modal distribution (i.e., one dominated by both small and large firms) to a right-skewed one (i.e., dominated mostly by large firms) in these contexts, thereby signaling the rise of important opportunities in the form of less rivalrous competitive contexts for survivors of recessions. We derive our results from formal modeling and multiple simulation runs.
McDermott, G.; Bruszt, L., 2016. Transnational regulatory integration and development: A new framework for institutional change. RAE-Revista de Administração de Empresas, Vol. 56, N. 4: pp. 447-455.
A study of how extending regulatory integration into developing nations affects the nature of these contestations and their outcomes.
Sevil, A.; Murcia, M.; Vassolo, R., 2016. Platform Competition in Unstable Contexts. Academy of Management Proceedings, Vol. 2016, No. 1: Meeting Abstract Supplement 12329 .
This paper examines the evolution of competition and network externality advantages in platform markets under macroeconomic distress. We propose that economic shocks exogenously induce short-term and long-term industry discontinuities that shift the relative value of isolating mechanisms, thereby switching the timing of entry competitive advantages vis-à-vis those found in stable contexts. As such, economic shocks prevent early-entrants’ advantages, while alternatively giving laggards the opportunity to catch up and even overtake first-mover rivals. Our study informs entry-order advantage theory and management practice in economically turbulent contexts and is supported by an empirical study on the industry of operating systems for mobile phones.
García Sánchez, J.; Murcia, M.; Vassolo, R., 2015. The evolution of competition through the business cycle. Academy of Management Proceedings, Vol. 2015, No. 1: Meeting Abstract Supplement, 11882.
Business cycles affect the economic and business life prospects of firms anywhere; but alas literatures in management and strategy have persistently developed theories and empirical models that overlook how they affect competitive dynamics and competitive advantages. Within the cycle, economic recessions represent periods of reduced environmental munificence on the business cycle of non-industry specific genesis and of transitory nature that affect the survivability of all firms in an industry. This downturn event is, for these reasons, of especial interest to strategists and managers. Rooted in evolutionary economics, our work aims to provide insights on the conditions that allow companies to take advantage of business cycles, with an empirical emphasis in its downside portion, i.e., recessions. We specifically ground a case discussion of shifts in the competitive positioning of rivals in the US Automobile industry.
Murcia, M.; Rocha, H., 2015. Business Schools at the crossroads? A trip back from Sparta to Athens. Academy of Management Proceedings, Vol. 2015, Nr. 1: Meeting Abstract Supplement, 11360.
Business schools have come under considerable criticism for what observers see as their complicit involvement in the corporate scandals and financial crises of the last fifteen years. Much of the discussion about changes that schools might undertake has been focused on curriculum issues. However, revisiting the curriculum does not get at the root cause of the problem; most importantly, it might create a new challenge: the risk of decoupling the discussion of the curriculum and that of broader issues of institutional purpose. In this article, we argue that the most pressing need facing business schools is not to teach new courses to be responsive to social demands and stay relevant. Instead, it is to revisit their basic mission, and thereby to shed fresh light on the curriculum design choices. We contrast the Spartan and Athenian educational paradigms as a way of shedding light towards a coherent response.
Rocha, H., 2015. Do Clusters Matter to Firm and Regional Development and Growth? Evidence from Latin America. Management Research: The Journal of the Iberoamerican Academy of Management, Vol. 13, Issue 1: 83 - 123.
– This paper aims to analyse the impact of clusters on development and growth at the firm and regional level in Latin America (LA). The past 20 years have witnessed an acceleration of cluster initiatives, assuming their positive impact on firm performance and regional development. However, theoretical development and empirical meta-studies in emerging countries to validate this assumed relationship are scarce.
– This paper reviews empirical evidence from a population of 123 studies and a sample of 45 empirical studies including 216 clusters in LA.
– It concludes that clusters contribute to both development and growth at the firm- and regional-level contingent to factors such as cluster stage of development, collective efficiency, the pattern of governance of the value chain and the sector in which the firm operates; however, clusters are also a potential source of socio-economic divides.
– Therefore, these results qualify the conclusions of studies of clusters in developed countries (Porter, 2003; Delgado et al., 2010).
Caldart, A., Vassolo, R., Silvestri, L., 2014. Induced variation in administrative systems: Experimenting with contexts for innovation. Management Research, The Journal of the Iberoamerican Academy of Management, Vol. 12, Issue 2: pp. 123-151.
Purpose: The purpose of this paper is to revise Burgelman’s idea (1991, 1994) that induced strategic processes is necessarily variation-reducing. In doing so, the authors explore whether major change in a firm’s administrative system can be managed in an evolutionary fashion via induced variation-increasing mechanisms. In particular, the authors focus on a multi-business multinational firm in which different administrative systems were experimented simultaneously as a way to determine which of these systems provided the most conducive context for innovation and capability development.
Design/methodology/approach: The authors adopted an inductive perspective and developed a single case research project aimed at documenting the process of experimentation and subsequent selection and adoption of a new administrative system by a large multi-business multinational firm.
Findings: The paper’s main contribution is the concept of “induced variation”, understood as intra-organizational variation-increasing mechanisms deliberately created at the top level of the organization to trigger an intra-organizational evolutionary process of management innovation. This finding extends and modifies Burgelman’s discussion of induced and autonomous strategic behavior by showing that induced processes need not necessarily be variation-reducing, but may actually be variation-increasing. Additionally, the authors explain how an evolutionary process aimed at learning about the relative merits of alternative administrative systems through in vivo “reflection in action” (Schön, 1983) unfolds in a complex global organization.
Research limitations/implications: While the work provides several insights on the development of an evolutionary process leading to management innovation, its inductive nature limits its external validity and requires the development of further work for such purpose.
Practical implications: The authors explore the roles of regional organizations in creating new corporate capabilities for the MNC.
Social implications: The authors show how management capabilities developed in the Latin American context were rolled out to other locations.
Originality/value: The authors' findings confirm that major drastic reorganization initiatives can actually be approached using an evolutionary approach.
Diaz Hermelo, F.; Etiennot, H.; Vassolo, R., 2014. Sources of performance heterogeneity in emerging economies. Management Research: The Journal of the Iberoamerican Academy of Management, Vol. 12 Issue 2: pp. 176-202.
Purpose: The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects.
Design/methodology/approach: The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component.
Findings: The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.
Originality/value: To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.
McDermott, G.; Corredoira, R., 2014. Adaptation, bridging and firm upgrading: How non-market institutions and MNCs facilitate knowledge recombination in emerging markets. Journal of International Business Studies, Vol. 45, Issue 6: pp. 699–722.
"How do multinational corporation (MNC) subsidiaries and local institutions help or hinder emerging market suppliers to upgrade their capabilities? Drawing on insights from economic sociology and comparative capitalism, we posit that in these contexts of scarce resources and inferior technologies upgrading depends on the ways in which organizational and institutional networks enable firms to integrate imported advanced knowledge with local applied knowledge. Using a combination of field work and unique survey data of Argentine auto parts suppliers, we show that process upgrading improves significantly when suppliers have ties to seemingly resource-weak non-market institutions that improve access to a variety of experiential knowledge. These institutions act as knowledge bridges, helping local firms tap into diverse applied knowledge embedded in isolated industrial districts and adapt frontier advanced practices to their local conditions. Moreover, suppliers appear to benefit from ties to MNC subsidiaries only when they simultaneously collaborate with certain non-market institutions that help them recombine experiential knowledge with the standards gained from the subsidiaries"
Mezquita, L., García Sánchez, J., Vassolo, R. , 2014. What doesn’t kill you makes you stronger: The evolution of competition and entry-order advantages in economically turbulent contexts. Strategic Management Journal, Volume 35, Issue 13: 1972–1992.
We examine the evolution of competition and entry-order advantages in markets under macroeconomic distress. Through formal modeling of early-mover advantages along industry life cycles subjected to economic shocks and based on simulation findings, we propose that such shocks exogenously induce temporary industry discontinuities that shift the relative value of distinct asset endowments, thereby switching the bases for competitive advantages vis-à-vis those found in stable contexts. A vital trade-off then emerges between a firm's financial flexibility and its pace of investments in isolating mechanisms, such that the former operates as a contingency factor for the latter. As such, flexibility superiority boosts early-entrants' advantages, while it alternatively gives laggards a much desired strength to out trump first-mover rivals. Our study informs entry-order advantage theory and management practice in economically turbulent contexts.
Etiennot, H.; Vassolo, R.; Diaz Hermelo, F.; Mc Gahan, A., 2013. How much does industry matter to firm performance in emerging countries?. Academy of Management Proceedings, Vol. 2013, Issue 1: .
In this article, we contribute to understanding of country, industry and firm effects on performance by examining heterogeneity in the profitability of corporations from both emerging and developed economies. Using a linear regression method that accounts for cross classifications, mixed effects, and auto correlation, we analyze 137,858 observations on the return on assets of 25,149 firms in 42 sectors of 65 countries during the period from 2000 to 2007. The results indicate that the components of performance in emerging markets differ significantly from developed economies in systematic ways: (1) country effects dominate industry effects on performance; (2) emerging-market corporations face significantly greater volatility in returns, with the temporary components of profitability more significant than the permanent components; and (3) idiosyncratic, firm-specific effects dominate all other effects on performance for emerging-market companies. We interpret these differences to suggest their specific implications for business and public policy.
McDermott, G.; Mudambi, R.; Parente, R. , 2013. Strategic modularity and the architecture of multinational firm. Global Strategy Journal, Volume 3, Issue 1: pp. 1-7.
"Multinational enterprises (MNEs) are increasingly recognizing the importance of utilizing knowledge and capabilities from a wider innovation ecosystem beyond their corporate network of subsidiaries. In order to manage the complexity associated with setting up and running such international networks of practice, they devolve responsibility for significant activities to external agents. They accomplish this by designing or reengineering their products or services as modular subassemblies that can be parceled out to a network of partner organizations. The extent to which such modularization occurs varies depending on technical/engineering drivers and strategic considerations. It differs between process and product industries and varies depending on output variety, batch size, and the balance of bargaining power between supplier and buyers in the value chain. This ensures that the observed level of modularization varies across industries. However, we also observe that it varies across firms within industries. Depending on their capabilities, firms may implement a strategy leaning toward vertical integration and integration or specialization and modularization. modularity; multinational enterprises;"
Rocha, H., 2013. Dominant development paradigms: A review and integration. Journal of Markets and Morality, Vol. 16, No. 1 : pp. 7-24.
This article reviews the experiences, concepts, and prevailing paradigms on development from the perspective of economic and international organizations and offers a framework to integrate them. The development phenomenon gathered momentum in the twentieth century as a means to mitigate poverty around the world. The phenomenon-driven nature of development has led to definitions based on different assumptions on the material and spiritual dimensions of development. This article contributes both a review of the main assumptions underlying the dominant paradigms on development and an integration of their core dimensions. The main argument is that for fruitful dialogues and actions among practitioners, social scientists, philosophers, and theologians engaged in promoting development a first step is making explicit the assumptions underlying the dominant paradigms of development to review and integrate at the social sciences, philosophical, and theological levels.
Rocha, H., 2013. Entrepreneurship, Clusters and Societal Level Outcomes . Academy of Management Proceedings, Vol. 2013, Issue 1: .
Clusters and entrepreneurship are attracting an increasing amount of intellectual energy and financial resources. However, research on their joint impact on regional development is hampered by the wide diversity of conceptual and theoretical approaches. We develop an integrated theoretical model to investigate whether clusters moderate the relationship between entrepreneurship and regional development. Distinguishing between industrial agglomerations and clusters, we use a socioeconomic approach to integrate disparate theories based on their underlying assumptions. We conclude that regions with clusters show a stronger relationship between entrepreneurship and regional development. Before competitive shocks, regions with diversified clusters are more resilient than regions without diversified clusters. Implications for academics and policymakers are proposed.
Bruszt, L., McDermott, G., 2012. Integrating rule takers: Transnational integration regimes shaping institutional change in emerging market democracies.. Review of International Political Economy, : .
Carrera, A., Caldart, A., Cornejo, M., 2012. ¿Cómo cambia la agenda del director general a lo largo de su carrera profesional?. Harvard Deusto Business Review, Nº 217: 40-47.
"E l trabajo específico de la alta dirección de la empresa, y en particular el del director general o número uno” de la empresa, ha sido objeto de gran interés dentro del campo de estudio de la gestión empresarial desde sus orígenes, hace ya aproximadamente un siglo. Una larga y prestigiosa lista de
trabajos ha documentado cuáles son las tareas en
que el director general centra su acción. Algunas de
estas contribuciones revelan que, más allá de que los
números uno compartan responsabilidades genéricamente
similares, los modos específicos en que estos
conciben y ejecutan sus agendas están influidos
fuertemente por distintas circunstancias, como que
el máximo directivo sea además dueño de la empresa
que dirige, si esta cotiza o no en bolsa, si lidera la
empresa a nivel global o solo una unidad regional o
local de una multinacional, o sus años de experiencia
en el cargo.
En este artículo se explora en particular este último
tema: de qué modo varían los modos en que los
directores generales conciben y ejecutan sus tareas
según los años de experiencia que llevan en su “oficio”.
Concretamente, en nuestro análisis distinguimos
entre directores generales “principiantes”, aquellos con una cierta experiencia y, finalmente, los “expertos” en el cargo, tras largas trayectorias como máximos responsables de una empresa. Nuestro análisis se basa en datos sobre 652 directores generales de distintas nacionalidades al frente de empresas o subsidiarias de empresas internacionales con
negocios en América Latina."
Diaz Hermelo, F., Etiennot, H., Vassolo, R., 2012. Sources of Performance Heterogeneity in Emerging Economies. Academy of Management Proceedings, Vol. 2012, Nr. 1: .
Using a novel methodology to study the dynamic behavior of firms’ performance in emerging economies, we find that the firm-specific effect is the most important in explaining permanent and transitory differences. The country-industry interaction is the second most important effect, confirming that industries are not completely global. Finally, evidence exists of significant increases in performance persistence over time.
Diaz Hermelo, F.; Vassolo, R., 2012. How much does country matter in emerging economies? Evidence from Latin America. International Journal of Emerging Markets, Vol. 7 Issue 3: pp. 263-288.
Purpose – The purpose of this paper is to examine the magnitude of country, industry and firm-specific effects for firms competing in emerging economies and also explore differences between high and low performers.
Design/methodology/approach – The authors use ANOVA methodologies on samples from firms competing in Latin America between 1990-2006.
Findings – It was found that the firm-specific effect is the most important one, and relatively equivalent in magnitude to the firm-specific effects found in developed countries. Country and industry effects are less important than the firm-specific effect. Contrary to previous studies that indicate that the country effect is relatively more important in emerging economies, the authors found that it is even less important than the industry effect, a result that has important implications for strategic management and international business theory. The source behind the strong firm-specific effects might stem from their resources and capabilities to manage and take advantage of the institutional and macroeconomic environments. Further analysis indicates that the firm-specific effect is relatively more important for firms showing high performance than for those firms showing low performance.
Research limitations/implications – Through these findings the authors feel that further research is needed so as to arm future managers with a more clear and comprehensive strategy when doing business in a Latin American country. The paper's findings are specific for large public corporations in Latin America.
Practical implications – The paper allows managers to think about sources of competitive advantages in emerging economies.
Originality/value – The paper shows that, despite weak institutional contexts and highly volatile macroeconomic environments, managers in the region should be able to obtain substantial differences in economic performances within the region. Activities needed for such differentiation might differ from those carried out in developed countries, with more emphasis on managing institutional voids and periods of economic and political cycles but the result should be the same.
Hatum, A., Silvestri, L., Vassolo, R., Pettigrew, A. , 2012. Organizational identity as an anchor for adaptation: An emerging market perspective. International Journal of Emerging Markets, Vol. 7 Issue 3: pp. 305-334.
Purpose: There is little doubt that organizational identity – that which is central, distinctive, and enduring about an organization – mediates in adaptive processes. Exactly how this mediation takes place, and whether it is favorable or unfavorable to adaptation, must still be fully established. The purpose of this paper is to add to the literature on identity and adaptation by exploring the relationship between these two constructs in family firms operating in an emerging economy. Based on measures of strength of identity, the authors examine how identity affects the adaptive processes of issue identification, strategic impulse definition, and implementation, where the authors look at pace of adjustment.
Design/methodology/approach: Longitudinal and comparative case studies were conducted of polar types presenting two pairs of organizations in two separate industries. These organizations faced the challenge of founder succession and a radical shift in macroeconomic conditions over a period of three decades. Through these four cases the authors hope to provide clear pattern recognition of strength of identity and adaptation – and of the relationship between these two constructs – in the face of severe internal and external shocks. The approach seems adequate in the larger context of inductive theory development and particularly suitable to the exploration of theoretical constructs, as it allows the researcher to unravel the underlying dynamics of path dependencies and/or evolutionary processes.
Findings: It is found that strong‐identity organizations are able to foresee relevant changes in their industries, define adequate strategic responses, and implement them in an evolutionary (i.e. smooth) manner. Conversely, loose‐identity organizations misread industry trends, incur strategic paralysis, and must eventually enforce revolutionary (i.e. violent) changes in order to ensure survival.
Originality/value: The paper addresses a critical issue for the advancement of organizational theory: the relationship between organizational identity and adaptation in emerging economies. In addition, it has important practical implications for managers doing business in turbulent environments. It makes a sound theoretical contribution and has important managerial implications.
Carrera, A., Caldart,A., Cornejo, M. , 2011. La agenda del CEO Latinoamericano. Harvard Business Review America Latina, Vol. 89, Nº. 5: 94-102.
"Las crisis de la pasada década pusieron el desempeño de los altos ejecutivos en el foco de la discusión. Muchos de los CEO que pasaron de ser héroes a villanos de un día para otro se destacaban mucho en ciertas dimensiones de su trabajo, pero también descuidaron otras de una manera negligente. ¿Pasa lo mismo en nuestro continente? ¿Qué factores explican que los CEO privilegian ciertas cosas e ignoren otras?
Los autores investigaron a 72 CEO que trabajan en Argentina a la luz de cuatro variables importantes: la fase del ciclo económico (crisis, estancamiento y recuperación); los años de experiencia en el cargo; la participación o no en la propiedad de la empresa y si la firma era local o multinacional. Al cotejar una lista bastante exhaustiva de los deberes de los CEO y cómo estos cambiaron según los factores recién mencionados, los autores se encontraron con información bastante reveladora sobre la conducta de los máximos ejecutivos y los sesgos e inclinaciones que los hacen actuar de una manera y no de otra. Por ejemplo, los CEO de la muestra siempre privilegian la conformación de su equipo, pero tienden a descuidar la formación de un sucesor.
Sin duda, esta información es útil para los propios ejecutivos, para los consejos de administración que trabajan con ellos y para los accionistas pendientes de su actuar."
Casarin, A., Delfino, M.E., 2011. Price Freezes, Durables, and Residential Electricity Demand. Evidence from Greater Buenos Aires. Energy Economics, : .
Vassolo, R., Castro, J., Gomez-Mejía, L., 2011. Managing in Latin America:Common issues and a research agenda. Academy of Management Perspectives, : .
Vassolo, R., Kleinhempel, M., Caldart, A., & Fragueiro, F., 2011. Dilemas multinacionales:tres modelos de estructura regional en América Latina. Harvard Business Review America Latina, : .
"Cada vez son más las multinacionales que han adoptado las organizaciones regionales para operar en América Latina. La aparente homogeneidad cultural, el deseo de simplificar las líneas de reporte y la aversión al riesgo catalizaron dicho fenómeno, permitiendo que las MNC cosecharan los beneficios de la integración asociados con la regionalización de los procesos de negocios.
Pero a la hora de crear la arquitectura organizacional de las organizaciones regionales, las MNC se basaron en diversos criterios. Dicha variación resulta de decisiones estratégicas fundamentales y llevan a importantes diferencias en los mecanismos de coordinación que vinculan a la oficina global con la regional. Nokia, por ejemplo, creó una organización regional que está fuertemente entrelazada con su casa matriz global. En cambio, The Walt Disney Company elaboró un enfoque estratégico y organizacional para América Latina que se separa radicalmente del modelo organizacional global. Finalmente, encontramos casos, como el de Volkswagen Latin America, que representa una zona intermedia entre los modelos organizacionales anteriores. La investigación de los autores –tres de ellos del IAE de Buenos Aires, y el cuarto del AESE de Lisboa– descubrió que estas diferencias expresan la percepción que tiene la casa matriz acerca del aporte de la región al portafolio de capacidades de la MNC, la importancia de la oficina regional en su capacidad de adaptarse al entorno local y el logro de niveles exitosos de innovación y desempeño."
Anand,J.,Oriani,R., & Vassolo, R. , 2010. Alliance activity as a dynamic capability in face of discontinuous technological change. Organization Science, : .
"Using a dynamic capabilities lens, this study examines how technological and complementary capabilities affect firms' abilities to enter emerging technologies. The empirical evidence from a sample of pharmaceutical firms entering the new biotech fields indicates that both technological and complementary capabilities potentially affect firms' entry into emerging technologies and entry mode. However, the results also show that capabilities in the traditional technology and the emerging technology have different effects. Firms with capabilities in the emerging technology are more likely to enter new technological fields and more likely to use internal development in doing so. Complementary capabilities also increase the rate of entry into emerging technological fields. However, capabilities in traditional technology are found to be unrelated to the propensity to enter new fields, and to the choice of entry mode. These results are consistent with insights from the literature on dynamic capabilities and evolutionary theory. We examine the implications of these results for literatures on strategic alliances and technological competition."
Key Words: interfirm alliances; technological discontinuity; dynamic capabilities
Caldart, A., & Vassolo, R. , 2010. Induced variation in administrative systems:Experimenting with contexts for innovation. Best Paper Proceedings 2010 Academy of Management Meeting, : .
Diaz Hermelo, F., Vassolo, R. , 2010. Institutional development and hypercompetition in emerging economies. Strategic Management Journal, : .
"This study applies previous analysis on hypercompetition to emerging economies.We propose that development of the institutional context will contribute to generate conditions of hypercompetition in emerging economies. Empirical evidence from Latin America indicates that (1) persistent superior economic performance is possible; (2) the hazard rate for exiting the superior economic performance stratum has increased over time; (3) the development of the institutional context accelerates the rate of exiting the superior economic performance stratum; and (4) domestic firms find it more difficult to remain in the superior economic performance stratum than subsidiaries of multinational corporations and multicountry firms. These findings are consistent with the onset of an age of temporary advantage in emerging economies."
McDermott, G., Corredoira, R. , 2010. Network composition, collaborative ties, and upgrading in emerging market firms: Lessons from the argentine autoparts sector. Journal of International Business Studies, : .
Rocha, H., & McDermott, G. , 2010. Clusters and upgrading: A purposeful approach. Organizations and markets in emerging economies, : .
"We develop a theoretical model to investigate how backward societies can improve their upgrading capabilities by transforming existing industrial agglomerations into dynamic clusters. Our main assumptions are two: first, emerging market economies are not uniform but characterized by variety of subnational regional and sectoral organizational and institutional configurations; second, the basic building block and unit of explanation in social sciences is personal action guided by some intention, which is heterogeneous across different actors. Based on these assumptions and the literature on human motives and social networks, we develop a purposeful approach to clusters and upgrading. We argue that governments can develop institutions with private actors that facilitate new types of relationships and improve the access local firms have to a variety of knowledge resources, a key ingre¬dient to upgrading. We illustrate this argument revisiting the literature on clusters and upgrading in Latin America and using two case studies in Argentina, a country better known for its volatility and lack of optimal social capital and institutions. We conclude with avenues for further research."
Weisz, N., Vassolo, R., Mezquita, L., & Cooper, A. , 2010. Diversity and social capital of nascent entrepreneurial teams in business plan competitions. Management Research:The Journal of the Iberoamerican Academy of Management, : .
"Purpose – The purpose of this paper is to examine the influence of team member diversity and internal social capital on project performance within the context of business plan competitions (BPCs).
Design/methodology/approach – The paper uses survey data on 95 nascent entrepreneurial teams enrolled in an open-to-the-public BPCs. It assumes that higher levels of functional diversity as well as higher levels of internal social capital enhance the performance of nascent entrepreneurial teams in the crafting of their business plans (BPs).
Findings – Under this particular context, where the needs for information processing and decision-making requirements are so high, teams having higher levels of functional diversity attained better performance. Inversely, teams with higher levels of internal social capital did not show a significant advantage in the development of the BP.
Research limitations/implications – Limitations are associated with the exclusion of external social capital measures and not considering demographic faultlines, which might have some impact on the results. Besides, this paper has the limitation of basing its analysis upon teams within a BP contest. Theoretical implications stress that under contexts maximizing the difference between potential upside gains and downside losses, team diversity is expected to play a larger role for BP effectiveness and success than team members' internal social capital.
Practical implications – Recognizing team prevalence and the impact of social dynamics amongst team members within entrepreneurial settings.
Originality/value – The paper contributes with the impact of social dynamic processes on nascent entrepreneurial teams."
Anand, J., Mesquita, L. & Vassolo, R. , 2009. The dynamics of multimarket competition in exploration and exploitation activities . Academy of Management Journal, : .
Prior studies of multimarket contact have investigated 'exploitation' rather than 'exploration' activities. We contrast effects of multimarket contact on entry and exit dynamics across these two settings. Based on analyses of biopharmaceutical firms’ competitive dynamics from 1989 to 1999, we find support for our theory that, while in exploitation, firms seek to optimize multimarket contact based on mutual forbearance benefits, in exploration, firms seek to reduce uncertainties through mimetic entry and exit. We also find that multimarket contact in exploration leads to competitive entry and exit in exploitation, but not vice-versa. We discuss implications for theory and practice.
Miles, R.E., Miles, G., Snow, C., Blomqvist, K., Rocha, H. , 2009. The I-Form Organization. California Management Review, : .
"Every generation of managers experiments with new organizational forms—new business models and the organizational structures and management processes required to support them. Much of the current experimentation with business and organizational models is occurring in knowledge-intensive industries such as biotechnology, computers, telecommunications, and medical and scientific equipment. The principal business model emerging in these and similar industries can be called market exploration. Market exploration is a firm’s pursuit of opportunities created by intersecting technologies and markets. The market exploration process is complex, involving technology development, product development, and commercialization in collaboration with customers and other firms, as well as involving the orderly development of markets that have large but unknown potential. Firms that want to be effective at market exploration must organize specifically for innovation—they must be able to build and manage an I-form organization. This article shows how many firms are moving towards and improving the I-form organization and discusses its purpose, key features, and benefits."
Rocha, H., Miles, R.E. , 2009. A model of collaborative entrepreneurship for a more humanistic management. Journal of Business Ethics, : .
"Inter-organizational models are both a well-documented phenomena and a well-established domain in management and business ethics, which rest on collaborative capabilities. However, mainstream theories and practices aimed at developing these capabilities are based on a narrow set of assumptions and ethical principles about human nature and relationships, which constrain the very development of capabilities sought by them. This paper presents an Aristotelian approach to collaborative entrepreneurship within and across communities of firms operating in complementary markets. Adopting a scholarship of integration approach and the evaluation of six studies of communities of organizations, we contribute an inter-organizational network model based on the assumptions about human motives and choice offered by Aristotle. We argue that the sustainability of inter-organizational communities depends on how rich is the set of assumptions about human nature upon which they are based. In order to develop and sustain collaborative capabilities in inter-organizational communities, a set of assumptions that takes both self-regarding and other’ regarding preferences as ends is required in order to avoid any kind of instrumentalization of collaboration, which is an end in itself. Implications for theory and practice are discussed."
Rocha, H. , 2008. Sumantra Ghoshal y su contribución para que las teorías y la práctica del management sean una fuerza para el bien. . Revista Empresa y Humanismo , : .
"Este artículo tiene como objetivo presentar una síntesis elaborada sobre las premisas que hacían de Sumantra Ghoshal una fuerza para el bien, tanto a través de sus más recientes desarrollos intelectuales como a través de su influencia en la práctica de la dirección. Para ello describe las definicones y hace explícitas las premisas e ideas en proceso en el momento del fallecimiento de Ghoshtal, en marzo del 2004. Plantea posibles desafíos a encarar en investigaciones futuras para seguir desarrollando el potencial de las teorías y la práctica de la dirección de modo que sean una fuerza para el bien."
Vassolo, R., Anand, J. , 2008. An examination of dynamic capabilities: Is evolutionary theory under-determined? . Management Research, : .
Anand, J., Oriani, R. & Vassolo, R. , 2007. Managing a portfolio of real options . Advances in Strategic Management, : .
This study analyses the value determinants of a portfolio of growth options and explores implications for strategic management. It focuses the analysis on four elements: the number of real options in the portfolio, constraints on the number of options that can be exercised, the volatility of underlying assets, and the correlation between underlying assets. These elements are articulated around a trade-off between growth options and switch options and are applied to different strategic situations of technological, market, and macroeconomic uncertainty.
Casarin, A., Delfino, M.E. & Delfino, A., 2007. Failures in water reform. Lessons from the Buenos Aires’s concession . Utilities Policy, : .
Delfino, M.E., 2007. Control changes and firm performance in banking . Special issue on Control transactions: productivity, wages and employment implications-International Journal of the Economics of Business , : .
This paper examines the effect of control changes on efficiency and productivity in the banking industry of Argentina. This industry represents an interesting case study as banks underwent corporate changes of different types including privatization, foreign acquisition of domestic banks and mergers and acquisitions among local institutions. Bank productivity is measured and decomposed into the effects due to returns to scale, technical progress and efficiency, while bank efficiency is related to a set of variables controlling for changes in bank ownership. The evidence suggests that control changes due to privatization had a positive short-term effect on productivity in part as a result of efficiency gains, which were then gradually lost over time. Results also indicate that foreign acquisitions led to stronger productivity performance of acquired banks, though they did not have any significant effect on efficiency. Finally, mergers and acquisitions had a negative impact on productivity as a result of scale effects despite the long-term efficiency improvements.
Diaz Hermelo, F., Vassolo, R. , 2007. The determinants of firm's growth:An empirical examination. Revista ABANTE, : .
This research examines the determinants of firm’s growth. Our findings indicate that firms willing to grow substantially and government programs designed to boost firms growth should put emphasis on investing in newer technology, diversifying from regional markets into national and international markets, and delivering adequate returns, which provide the financial means to grow since these factors proved to be the most statistically significant explaining the growth of firms analyzed. The results also indicate that the growth of the firm was not significantly related with its size, which is consistent with Gibrat’s law.
Fosfuri, A., Martínez, E. & Vassolo, R., 2007. Exploring the processes of innovation and imitation. Management Research, : .
"Innovation is a complex activity in which new knowledge is applied to commercial ends. New knowledge is generated through a cumulative process in which knowledge is added, deleted, transformed, modified or simply reinterpreted. A substantial part of this knowledge reaches the firm from external sources. One of the most important changes in the organization of the innovation process within corporations in the last two decades has been the increasing awareness of the importance of external knowledge flows. Firms are gradually abandoning the idea that the generation of new knowledge is mostly an internal process.
There are several different sources of external knowledge flows that the firm can try to appropriate and benefit from. One of them, the imitation process, has been depicted in the literature as an alternative to innovation; we see it more precisely represented as part of the innovation process itself. Innovation develops through imitation, and successful imitation might require a great deal of innovation as well. Most firms can be thought to innovate on some dimensions and imitate on others. When imitation implies the reinterpretation, modification and transformation of existing knowledge then the distinction between what is innovation and what is imitation tends to fade away. Understanding the process of imitation has thus very important implications for innovation strategies, for the diffusion of knowledge within industries and for economic development in general. "
Rocha, H. , Birkinshaw, J., 2007. Entrepreneurship safari- a phenomenon- driven search for meaning . Foundations and Trends in Entrepreneurship , : .
We propose a model that links seven different conceptions of entrepreneurship and maps them in relation to eight associated disciplines and theories, specifying their corresponding units and levels of analysis and stage in the entrepreneurial process. Entrepreneurship scholars are attempting to either carve out a distinctive domain for the field or build a distinctive theory of entrepreneurship. However, an obstacle for understanding entrepreneurship is the lack of integration of the assumptions implicit in different conceptualisations of entrepreneurship. We contribute a scholarship of integration approach for understanding the phenomena underlying these conceptualisations and linking entrepreneurship domain, theory, method, and policymaking.
Vassolo, R., Anand, J. Oriani, R., 2007. Alliance activity as a dynamic capability: Search and internalization of external technology . Best Paper Proceedings , : .
Previous research has often seen alliances as a mechanism used by disadvantaged firms to seek new capabilities during environmental discontinuities. But are alliances an effective dynamic capability? In this paper, we find that less competent firms can use alliances to access new technologies, and show that alliances do indeed reduce the technological gap among competitor firms in terms of searching or accessing new technology. However, advantaged and disadvantaged firms seem to use different search routines in this process, and former are superior in internalizing new capabilities from their alliances. Thus, alliances are only partly effective as a catching-up mechanism. We discuss implications of these results for the literatures on strategic alliances, technological competition and dynamic capabilities.
Vassolo, R., García Sánchez, J. & Weisz, N., 2007. Motivación emprendedora y teoría de los stakeholders . Revista Empresa y Humanismo, : .
Este trabajo desarrolla una justificación motivacional para la teoría de los stakeholders. La perspectiva metodológica es diferente y complementaria de las anteriores, que imponen consideraciones normativas a esta teoría. Enfocado en el proceso emprendedor, analiza los mecanismos que explican las acciones y el alineamiento de los distintos participantes. El argumento principal es que cada grupo de interés actúa motivado tanto por el resultado de sus acciones como por el aprendizaje que genera el proceso en sí mismo. A su vez, ese proceso, como motivación central, provee una identidad individual y colectiva y, en último término, explica el alineamiento de los distintos grupos. Este argumento tiene implicaciones tanto a nivel directivo como normativo.
Vassolo, R., Hatum, A. & Silvestri, L. , 2007. Coherencia sistémica: El enfoque estratégico de Disney en América Latina. Harvard Business Review América Latina , : .
"La búsqueda de crecimiento internacional con frecuencia ha llevado a las multinacionales a ingresar a mercados emergentes, donde deben navegar a través de turbulencias económicas, políticas y sociales. Los rasgos ambientales particulares de América Latina plantean una serie de trade-offs a las multinacionales tanto a nivel estratégico como organizacional. Estos trade-offs tocan las fuentes de ventaja competitiva de las multinacionales y afectan sus recursos y capacidades clave. Al mismo tiempo, condicionan su comportamiento y sus supuestos sobre la región.
Tras estudiar sistemáticamente el entorno de negocios latinoamericano, los autores han visto a los ejecutivos resolver estos trade-offs eligiendo e invirtiendo fuertemente en un extremo de la ecuación. Las multinacionales han desarrollado así capacidades valiosas en una dirección, dejando otras oportunidades inexploradas. Este enfoque, que llaman bipolar, resulta de aplicar soluciones globales prefabricadas a los entornos regionales, y la confianza excesiva en él puede dejar a las multinacionales más expuestas de lo que sospechan. Los autores proponen un enfoque sistémico basado en patrones de adaptación identificados entre multinacionales altamente exitosas en América Latina.
Una de ellas es The Walt Disney Company, que los autores han elegido como ejemplo de coherencia sistémica. Considerada generalmente una de las compañías globales por excelencia, Disney ha sabido responder a los rasgos particulares de cada mercado regional que atiende. En América Latina, la empresa emprendió recientemente un revolucionario cambio para acercar la organización a las realidades del mercado, resolviendo exitosamente los trade-offs en tres procesos fundamentales: definición estratégica, alineación organizacional y estilo de liderazgo."
Fracchia, E. , Mezquita, L. , 2006. Corporate strategies of business groups in the wake of competitive shocks. Management Research, : .
"Conventional economic and management theories explain that business groups facing market liberalization policy reforms (i.e., competitive shocks) would have incentives to reduce corporate portfolios and increase internationalization. We empirically examine the strategic responses of Argentine business groups and, through an inductive theory building process, propose refinements to this theory. We argue that such a strategy process is moderated not only by differences in market forces set out by policy reforms across different economic segments but also by the path dependency of resources and capabilities as well as management decision-making style of individual business groups. We discuss implications for theory and practice."
Rocha, H., Ghoshal, S., 2006. Beyond self-interest revisited. Journal of Management Studies, : .
"We revisit the self-interest view on human behavior and its critique, and propose a framework, called self-love view, that integrates self-interest and unselfishness and provides different explanations of the relationship between preferences, behavior, and outcomes. Proponents of self-interest as the only valid behavioral assumption argue for simplified assumptions and clear models in order to propose precise prescriptions, while critics to this self-interest view argue for realistic assumptions and rich descriptions in order to reach better explanations. This debate inhibits theoretical development because it faces the problem of incommensurability of standards for choosing among paradigms. We propose the concept of self-love, or the inclination of human beings to strive for their own good and perfection, to remove the assumption self-interest vs. unselfishness. Self-love distinguishes between the object and the subject of motivation and therefore creates a bi-dimensional motivational space. This framework replaces the uni- dimensional continuum self-interest - unselfishness, specifies eight interrelated motives, and provides different expected relationships between preferences, behavior, and outcomes. We show that a better understanding of motivational assumptions, their embodiment in theories, and their influence on the very behaviors these theories assume provides managers and policymakers more alternatives for the designing of motivational contexts than in the case of assuming either self-interest or a permanent conflict between self-interest and unselfishness."
Nahapiet, J. , Gratton, L. & Rocha, H., 2005. Knowledge and relationships: When cooperation is the norm. European Management Review, : .
"We believe that structural changes in a knowledge economy mean that managers will increasingly seek to make cooperative relationships the norm in their organizations. However, they are hampered in their attempts to do so by organization designs that institutionalize the dominant assumption about human intentionality, which sees people and their relationships as motivated by self-interest. We argue that the self-interest assumption runs counter to the types of cooperation required to leverage fully the potential of the knowledge-based firm since it provides for relatively restricted forms of social exchange. We propose that the assumption of excellence, as set out by Aristotle in Nicomachean Ethics, provides a valuable alternative. We discuss four tenets of this assumption and find that they suggest important differences in organisation design that are more likely to encourage and institutionalize cooperative relationships. We explore these differences, considering their implications for practice and research."
Rocha, H. , Sternberg, R., 2005. Entrepreneurship: The role of clusters. Theoretical perspectives and empirical evidence from Germany. Small Business Economics, : .
"This paper is about the impact of clusters on entrepreneurship at the regional level. Defining entrepreneurship as the creation of new organizations and clusters as a geographically proximate group of interconnected firms and associated institutions in related industries, this paper aims to answer three research questions: first, do clusters matter to entrepreneurship at the regional level? Second, if clusters are associated with different levels of entrepreneurship, what explains those differences? Third, what do the answers to the previous questions imply for academics and policy makers? To answer these questions, this paper distinguishes between clusters and industrial agglomerations and advances a theoretical model and empirical research to explain the impact of clusters on entrepreneurship at the regional level. This paper uses the 97 German planning regions as units of analysis to test the hypotheses. Using hypotheses testing and OLS fixed-effects model, this paper finds that clusters do have an impact on entrepreneurship at the regional level, but industrial agglomerations do not. Implications for academics and policy makers and suggestions for future research are given in the concluding section."
Vassolo, R., Ravara, F.& Connor, A. , 2005. Valuing strategic growth options: A portfolio approach. Management Research, : .
"This study analyzes the trade-off between strategic flexibility and commitment for cases of simultaneous and related strategic investments under high levels of uncertainty. It develops a model that, using a Cournot game and real options theory, demonstrates that (1) a correlated strategic investment adds value to a portfolio of ongoing strategic investments in a decreasing marginal fashion, and (2) the new investment delays the development of the other investments. Managers who fail to recognize these properties may make strategic commitments that destroy value, even in the presence of options with individual positive values. An important feature of the model is that competitive advantages may flow from market power or from the capability of managing the portfolio."
Rocha, H., 2004. Entrepreneurship and Development: The Role of Clusters. A Literature Review. Small Business Economics, : .
Vassolo, R., Anand, J. & Folta, T. , 2004. Portfolio effect in real options: The case of equity alliances in biotechnology. Strategic Management Journal, : .
Weisz, N. , Vassolo, R., 2004. A theoretical and empirical assessment of the social capital of nascent entrepreneurial teams.. Best Paper Proceedings of Academy of Management Annual Meeting, : .
Weisz, N., Vassolo, R. & Cooper, A. , 2004. The social capital of nascent entrepreneurial teams. Revista de Administração de Empresas, : .
"This research investigates the effects of social capital in nascent entrepreneurial projects carried out by entrepreneurial teams. By surveying 33 nascent entrepreneurial teams, this paper explores how 1) the internal social structure of the team, which reflects the communication patterns and the feelings between the members; and 2) the team's external social structure, which is based on the diversity of ties that the members of the team have with outside parties, impact the advancement of a business idea. It was found that teams with high external social capital have a higher performance, while the empirical results failed to support that high internal social capital was better for team performance."
Carrera, A. , Quiroga, J. , 2003. Marcelo Arguelles, chairman of Grupo de Empresas Farmaceuticas Sidus, on Argentine competitiveness. Academy of Management Executive, : .
Carrera, A., Mesquita, L., Perkins, G., & Vassolo, R. , 2003. Business groups and their corporate strategies on the Argentine roller coaster of competitive and anti-competitive shocks.. Academy of Management Executive, : .
Mesquita, L., 2003. Argentina and the fund: From triumph to tragedy - Book Review. Academy of Management Executive, : .
Mesquita, L. , 2003. Former Argentine presidential candidate Ricardo Lopez Murphy on rationality as the basis for a new institutional environment. . Academy of Management Executive, : .
Traverso Natale, L. , Quiroga, J., 2003. Luis Pagani, Chairman of Grupo Arcor, on the globalization of Argentine firms. Academy of Management Executive, : .
Rocha, H.. Opening Governance with Restrictive Assumptions?. Academy of Management Proceedings, Vol. 2015, Nr. 1: Meeting Abstract Supplement, 18984.
The search for sustainable alignments between economic and social goals at the personal, organizational and societal level has been a key task of scholars from different disciplines. Yet, the dominant management theories assume a permanent trade-off of motives between these three levels and an instrumental rationality approach to study them. This work proposes a model for a sustainable alignment between personal interests, firm goals and societal needs, introducing the concepts of self-love and practical rationality to resolve the current tensions between levels of analysis. These assumptions allow going beyond the trade-off logic underlying the current dominant models.
Vassolo, R., Murcia, M.J., Garcia-Sanchez, J.. The Evolution Of Competition Through The Business Cycle. Academy of Management Proceedings, January 2015: .
Business cycles affect the economic and business life prospects of firms anywhere; but alas literatures in management and strategy have persistently developed theories and empirical models that overlook how they affect competitive dynamics and competitive advantages. Within the cycle, economic recessions represent periods of reduced environmental munificence on the business cycle of non-industry specific genesis and of transitory nature that affect the survivability of all firms in an industry. This downturn event is, for these reasons, of especial interest to strategists and managers. Rooted in evolutionary economics, our work aims to provide insights on the conditions that allow companies to take advantage of business cycles, with an empirical emphasis in its downside portion, i.e., recessions. We specifically ground a case discussion of shifts in the competitive positioning of rivals in the US Automobile industry. Further, we formally model the dynamics of competition, and explore its nuances through multiple mathematical simulation runs, so that we derive general theoretical propositions. In specific, we propose that the depth and duration of an economic recession monotonically reinforce “supply-side” cost leadership capabilities. Also, we conjecture that the duration of a recession has more lasting effects the earlier it happens in an industry life cycle.