Bundles of Firm Corporate Governance Practices: A Fuzzy Set Analysis

García‐Castro, Roberto; Aguilera, Ruth V.; Ariño, Miguel Á.

doi:10.2139/ssrn.2223908

Cited by 57 publications

(86 citation statements)

References 65 publications

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“…This is analogous to the governance literature that examines different bundles of corporate governance mechanisms (see, e.g., Aguilera, Desender, & Kabbach de Castro, ; García‐Castro, Aguilera, & Ariño, ; Ward, Brown, & Rodriguez, ). According to this stream of research, effective firm governance might not need every practice in place as certain governance mechanisms may serve as substitutes for others.…”

mentioning

confidence: 70%

Competing for government procurement contracts: The role of corporate social responsibility

Flammer

2018

Strategic Management Journal

297

189

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Research Summary: This study examines whether corporate social responsibility (CSR) improves firms’ competitiveness in the market for government procurement contracts. To obtain exogenous variation in firms’ social engagement, I exploit a quasi‐natural experiment provided by the enactment of state‐level constituency statutes, which allow directors to consider stakeholders’ interests when making business decisions. Using constituency statutes as instrumental variable (IV) for CSR, I find that companies with higher CSR receive more procurement contracts. The effect is stronger for more complex contracts and in the early years of the government‐company relationship, suggesting that CSR helps mitigate information asymmetries by signaling trustworthiness. Moreover, the effect is stronger in competitive industries, indicating that CSR can serve as a differentiation strategy to compete against other bidders. Managerial Summary: This study examines how companies can strategically improve their competitiveness in the market for government procurement contracts—a market of economic importance (15–20% of GDP). It shows that companies with higher social and environmental performance (CSR) receive more procurement contracts. This effect is stronger for more complex contracts, in the early years of the government–company relationship, and in more competitive industries. These findings indicate that firms’ CSR can serve as a signaling and differentiation strategy that influences the purchasing decision of government agencies. Accordingly, managers operating in the business‐to‐government (B2G) sector could benefit from integrating social and environmental considerations into their strategic decision making.

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mentioning

confidence: 70%

Competing for government procurement contracts: The role of corporate social responsibility

Flammer

2018

Strategic Management Journal

297

189

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“…The raw coverage values presented in Table show the fraction of national competitiveness that is encompassed by each respective configuration, and unique coverage indicates the portion of national competiveness that is covered only by that specific configuration. Coverage statistics here are quite high in comparison to other studies (e.g., Crilly, ; Fiss, ; Garcia‐Castro et al, ), indicating that the identified configurations of causal conditions are in fact very relevant to high national competiveness .…”

Section: Resultsmentioning

confidence: 99%

“…MNE presence may also thwart domestic competition by driving local firms out of business, which may dampen productivity on the whole (Aitken and Harrison, ). Girma, Greenaway, and Wakelin () similarly find some negative evidence for wage growth among U.K. firms in the presence of more MNE activity and Garcia‐Castro, Aguilera, and Arino () reveal that MNE penetration into Spain was negatively associated with the ex post innovation of local firms, owing to the MNEs’ ‘market stealing’ and the higher labor and resource costs resulting for domestic firms (also see Pathak, Laplume, and Xavier‐Oliveira, ).…”

Section: Theoretical Frameworkmentioning

confidence: 92%

National Competitiveness and Porter's Diamond Model: The Role of MNE Penetration and Governance Quality

Fainshmidt

Smith

Judge

2016

Global Strategy Journal

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Plain language summary This study examines how national competitiveness, measured as productivity per worker, is fostered within an economy using a sample of 90 developed and developing economies. We build upon Porter's popular Diamond Model, but extend it by adding the quality of public governance and extent of multinational enterprise penetration as two additional elements. Our study shows that not all four elements of the original Diamond Model are required for an economy to be competitive. Instead, we find that there are four distinct paths to high levels of national competitiveness. Context for intense rivalry among firms appears in all four paths. Results also suggest that public governance quality is key to national competitiveness. The extent of multinational enterprise penetration, however, is not. Technical summary We examine Porter's Diamond Model in conjunction with multinational enterprise (MNE) penetration and governance quality as a system of elements that collectively affect national competitiveness. Utilizing fuzzy‐set analysis and data on 90 nations, we identify four configurations sufficient for high national competitiveness, all of which exhibit high governance quality as a core condition. In these four configurations, the extent of MNE penetration is either absent or does not matter, and strength in all Diamond Model elements is neither necessary nor sufficient for high national competitiveness. Uncovering these patterns allows us to advance a more comprehensive theoretical framework emphasizing public governance and the ways in which elements of the Diamond Model, governance quality, and MNE penetration combine as complements or substitutes to affect national competitiveness. Copyright © 2016 Strategic Management Society.

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“…In the next step, fsQCA requires that researchers determine a minimum number of cases (frequency cut‐off) in order for a configuration of causal conditions to be considered in the analysis, and a threshold of consistency between a configuration and the outcome considered sufficient to establish a systematic pattern (see Ragin, , for the consistency formula). We followed prior studies and used 0.80 as the consistency threshold and three cases as the frequency cut‐off (Fiss, ; García‐Castro et al, ). Alternative thresholds are discussed in Appendix B (see supporting information).…”

Section: Methodsmentioning

confidence: 99%

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

Fainshmidt

Wenger

Pezeshkan

et al. 2018

J Management Studies

215

131

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Recent studies suggest the relationship between dynamic capabilities and competitive advantage may be jointly affected by organizational and environmental factors. We enrich this nascent perspective by developing a configurational theoretical framework – underpinned by the mechanism of strategic fit – wherein dynamic capabilities lead to a competitive advantage when they support a strategic orientation appropriate for the levels of dynamism and munificence in the environment. Results of a fuzzy‐set Qualitative Comparative Analysis using primary data show that dynamic capabilities lead to a competitive advantage in dynamic, munificent environments by enabling the combination of differentiation and low‐cost orientations. In stable, non‐munificent environments, dynamic capabilities are effective in support of a low‐cost orientation. The central insight of this study is that the relationship between dynamic capabilities and competitive advantage is contingent upon the strategic fit between organizational and environmental factors, contributing to a more rigorous and configurational dynamic capabilities view.

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Bundles of Firm Corporate Governance Practices: A Fuzzy Set Analysis

Cited by 57 publications

References 65 publications

Competing for government procurement contracts: The role of corporate social responsibility

Competing for government procurement contracts: The role of corporate social responsibility

National Competitiveness and Porter's Diamond Model: The Role of MNE Penetration and Governance Quality

When do Dynamic Capabilities Lead to Competitive Advantage? The Importance of Strategic Fit

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