From Social Ties to Embedded Competencies: The Case of Business Groups

Heugens, Pursey; Zyglidopoulos, Stelios C.

doi:10.2139/ssrn.1114758

Cited by 3 publications

(3 citation statements)

References 52 publications

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“…These capabilities are generic to BGs and not industry specific. They are difficult to trade because they are embodied in the owners, managers, and routines of the organization (Heugens & Zyglidopoulos, 2008).…”

Section: The Elements Of the Competitive Advantage Of Business Groupsmentioning

confidence: 99%

The Competitiveness of Business Groups and Their Affiliates in International Operations

Bugador

2016

Foundations of Management

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The discourse on the competitiveness of emerging economy firms continues with globalization. This paper joins the dialogue by providing a framework of the competitiveness of business groups and their affiliates in international operations. The goal is to address the vast literature on emerging economies that remains short in providing the theoretical background on the competitiveness of emerging and transitioning economy firms. To do this, this study used a critical review and analysis of the literature. It offers some propositions to illustrate the applicability of the framework in analyzing the international expansion of business group affiliates across borders. Ultimately, the paper contributes to the literature on managerial capabilities and competitiveness of firms to sustain their operations as the new emerging economy multinationals.

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Section: The Elements Of the Competitive Advantage Of Business Groupsmentioning

confidence: 99%

The Competitiveness of Business Groups and Their Affiliates in International Operations

Bugador

2016

Foundations of Management

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“…The old saw, "You don't get a second chance to make a first impression," reflects thinking that supports consistent growth theory. Consistent growth theory recognizes that no relationship starts out as a strong tie, but interfirm embeddedness works as a priming mechanism through which small initial offers of trust and assistance strengthen into a resilient tie, provided that they are reciprocated (Heugens & Zyglidopoulos, 2008). Pursey et al (2008, p. 332) stress that the interfirm "relationship acquires a social character above and beyond the technical characteristics of the exchange at hand (Granovetter, 1985).…”

Section: Alternative Models Of Social Bonding's Time Influence On Supmentioning

confidence: 99%

Imprinting, Honeymooning, or Maturing: Testing Three Theories of how Interfirm Social Bonding Impacts Suppliers’ Allocations of Resources to Business Customers

Woodside

Baxter

2015

Australasian Marketing Journal

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This paper addresses two key questions about the effect of social bonds on the way in which a supplier allocates resources to its relationship with a buyer. In business markets, does strength of social bonds that a supplier perceives with a specific customer influence the supplier's allocations of resources relative to other customers? If social bonding does uniquely impact supplier allocation of resources to customers, does the impact vary by relationship duration? Design The study here tests three alternative theories of how interfirm social bonds impact suppliers' allocations of resources to customers: imprinting; honeymooning, and maturing. Imprinting theory suggests that first impressions support long-term favorable influences. Honeymooning theory suggests favorable first impressions end later with negative impacts. Maturing suggests a positive social by time interaction impact. Findings Analysis of data from sales and marketing managers confirms that two of these models of the impact of social bonding on supplier resource allocation, the imprinting theory and the maturity theory, are relevant. The findings indicate that the maturity and imprinting models of social bonding's influence on supplier resource allocations are more germane than the honeymoon model to interfirm relationship management. Implications The findings indicate that relationship managers need to take into account the clear effect that creation of strong social bonds in buyer-seller relationships, as distinct from financial bonds, has on the way in which suppliers allocate resources to those relationships and how relationship duration affects the way in which they do so. Originality/value The study tests research questions which are apparently heretofore untested in the extant literature and the study does so based on quantitative data rather than the qualitative data frequently used in this type of research. The study strengthens the argument, on a strong theoretical base, to adopt a collaborative, as opposed to a transactional, approach to interfirm buyer-seller relationships.

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“…family) ties" (Khanna and Yafeh, 2007, p. 331). Given the significance of business groups in the transition of these to market economies, the relationship between business groups and institutional environments is fundamentally interactive and mutually shaping (Heugens and Zyglidopoulos, 2008). In this sense, the concept of "embeddedness" (Granovetter, 1995) provides an elegant theoretical lens to better understand business groups and their organization and strategy and the multifarious social relations and structures shaped by such interactive changes.…”

Section: Introductionmentioning

confidence: 99%

Institutional embeddedness renewal or overembeddedness

Zhang

2014

Asia-Pacific Journal of Business Administration

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Purpose – Viewing business groups as institutionally embedded agents, the purpose of this paper is to theoretically addresses the distinctions between institutional embeddedness renewal and overembeddedness, and empirically analyzes the proposed effecting mechanisms in the context of China. Design/methodology/approach – The paper predicts the specific performance effects accompanying the collective and local processes governing systematic institutional embeddedness phenomena, and examine the proposed hypotheses using a real experimental setting of Chinese business groups during the period of enterprise reform and stock market liberalization, employing data on 38 business groups in the textile industry from 2000 to 2008. Findings – The results of the econometric analysis support an optimistic view that business groups can strategically renew their embeddedness even in the late stages of market-oriented institutional transition as in China. Specifically: first, the positive effect of the self-enhancing isomorphic pressure around both the new and the old institutions implies the relative dominance of systematic institutional embeddedness renewal within business group communities; second, at the local level, institutional strategies promoting the market orientation of adopted organizational forms bring about not only positive but also negative effects, suggesting the need to manage a simultaneous significant risk of overembeddedness. Originality/value – The paper establishes an institutional strategy framework to predict potential effects associated with systematic institutional embeddedness phenomena, such as institutional embeddedness renewal and overembeddedness, in the context of market-oriented institutional transition.

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From Social Ties to Embedded Competencies: The Case of Business Groups

Cited by 3 publications

References 52 publications

The Competitiveness of Business Groups and Their Affiliates in International Operations

The Competitiveness of Business Groups and Their Affiliates in International Operations

Imprinting, Honeymooning, or Maturing: Testing Three Theories of how Interfirm Social Bonding Impacts Suppliers’ Allocations of Resources to Business Customers

Institutional embeddedness renewal or overembeddedness

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