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volume 43, issue 12, december 2022
1. title: how dynamic capabilities change ordinary capabilities: reconnecting attention control and problem-solving
authors: anja schulze, stefano brusoni
abstract: building on the attention-based view of the firm, we elaborate the concept of dynamic capabilities and identify two constitutive elements: attention control and problem-solving. we show empirically that the control element of dynamic capabilities regulates how organizations (dis-)engage attention on operational versus change-oriented tasks. on this basis, we develop a process model of how control and problem-solving interact to reconfigure resources and thus modify ordinary capabilities. we study the adoption of lean management in the r&d unit of a large u.s. corporation. our longitudinal case study identifies obstacles that organizations have to overcome to establish effective dynamic capabilities that enable their adaptation to changing environmental circumstances.
2. title: the knowledge-incentive tradeoff: understanding the relationship between research and development decentralization and innovation
authors: john c. eklund
abstract: strategy scholars view innovation through the lens of knowledge recombination, whereas organizational economics scholars view innovation through the lens of effective incentive design. this sets up a tension regarding how firms should structure their research and development (r&d) units. namely, decentralization facilitates the effective use of incentives but comes with the cost of reduced intra-organizational knowledge flows. in this study, i unpack this tension by examining the novelty of inventions that firms create and develop. i argue that r&d centralization facilitates the creation and development of inventions that are more novel, whereas r&d decentralization facilitates the creation of more inventions of lower average novelty and their progression through development. i find support for these arguments in the pharmaceutical industry between 1995 and 2015.
3. title: breakthrough invention and problem complexity: evidence from a quasi-experiment
authors: yuchen zhang, wei yang
abstract: problem formulation is central to recombinant invention, and problem complexity particularly shapes the process and outcome of knowledge recombination. however, research on the antecedents of problem complexity remains limited. this study examines how breakthrough inventions may serve as an important antecedent of the complexity of problems formulated by individual inventors. we propose that a breakthrough invention may facilitate inventors' appreciation of novel knowledge couplings and improve their overall comprehension of knowledge interdependence for problem formulation, thus increasing problem complexity. we further argue that inventors' prior search breadth and experimentation strengthen the above effect. by exploiting the unexpected victory of alphago and tracking the questions posted on stackoverflow.com by developers interested in deep learning, we find empirical evidence that supports our hypotheses.
4. title: social safety nets and new venture performance: the role of employee access to paid family leave benefits
authors: jiayi bao
abstract: this study examines how social safety nets providing paid family leave (pfl) benefits to employees influence subsequent business performance for entrepreneurial ventures. a multilevel framework guided by qualitative interviews proposes two competing mechanisms (pre-hiring recruitment gains via prospective employees and post-hiring operation losses via incumbent employees) and a firm-level contingency (venture innovation type). leveraging the 2009-implemented new jersey pfl program in a difference-in-differences design, i show that employee access to state-provided pfl benefits adversely affects the profitability for noninnovative new ventures but increases profitability for innovative ventures. exploration of treatment timing and intermediate venture outcomes supports a dominating pre-hiring mechanism for innovative ventures (in which the ventures become more attractive to joiners) but a dominating post-hiring mechanism for noninnovative ventures (due to employee leave).
5. title: how do managers evaluate individual contributions to team production? a theory and empirical test
authors: jose uribe, seth carnahan, john meluso, jesse austin-breneman
abstract: organizations rely on subjective evaluations to reward employees for team-based performance. however, it is unclear how supervisors determine individuals' contributions to collective output. we theorize that supervisors rely on the covariance between employees' presence and their teams' productivity. if teams are more productive when an employee is present, the supervisor may infer a greater contribution from the employee. using data from a manufacturing firm, we find that covariation between an employee's presence and her team's output has a positive effect on her evaluation. this relationship is stronger when supervisors have more opportunities to observe an employee across various teams and when the employee has more authority to direct team production, supporting counterfactual information as an important component of evaluations for individuals engaged in team production.
6. title: the value of flexibility in multi-business firms
authors: teresa a. dickler, timothy b. folta, marco s. giarratana, juan santal�
abstract: whether diversified firms have advantages over their single-business counterparts is the focus of much research in strategic management. indeed, there is sparse evidence that corporate advantage exists, on average. we explore one potential driver of corporate advantage�that multi-business firms have more flexibility than single-business firms to cope with uncertainty, because they can internally redeploy resources across businesses. using compustat data, we show that uncertainty increases the relative advantage of multi-business firms, a finding robust to controls for endogeneity. consequently, the paper provides important insight and evidence around when corporate advantage might obtain. moreover, we find that growth option value is accentuated in the presence of switching flexibility. finally, multi-business firms with redeployment experience and businesses with more inversely correlated returns benefit more from uncertainty.
7. title: where the stars still shine: some effects of star-performers-turned-managers on organizational performance
authors: jongsoo kim, richard makadok
abstract: do former star performers become superior managers? if so, why? using performance data from a professional sports league, this study finds that organizational performance is greater under star-performers-turned-managers (sptms) than other managers. we develop a typology of six causal mechanisms by which sptms might affect organizational performance, and we indirectly test for each of them using data from a professional sports league. our results indicate that sptms outperform other managers, and that this benefit is due to their role modeling and their superior ability to train and incentivize subordinates.
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