IE stakeholders and capabilities

1. Context2. Key messages

3. Stakeholders & Capabilities4. Exercise: Stakeholder’s commitment

5. Round off

Martin Hannibal, PhD

E-mail: mhk@sam.sdu.dkTwitter: @Dr_Hannibal74 / #IBE_group

1. Context: Research in International Entrepreneurship

Theme A: Entrepreneurial internationalizationTheme B: International comparison of entrepreneurshipTheme C: Comparative entrepreneurial internationalization

, Jones et al. (2011)

Study a process that involves “a combination of innovative, proactive, and risk-seeking behaviour that crosses national borders […] intended to create value in organizations.” (McDOugall & Oviatt 2000: p903).

2. Key message: decoding today’s literature

Evers, Anderson & Hannibal 2012 “Stakeholders and Marketing Capabilities in International New Ventures: Evidence from Ireland, Sweden and Denmark”

How does INVs develop teir competencies in thiscase mkt capabilities.

3. Stakeholders and Capabilities - aim

We set out to (aim):Recognizing the importance of relationships for INVs, we investigate how different stakeholder groups influence INVs in developing their marketing capabilities and how these capabilities enhance the competitiveness of the INV.

We arrive at:- The nature of stakeholder groups can influence the learning processes of the firm and

thus can determine the type of marketing capabilities the firm develops for international competitive advantage.

- Capabilities of entrepreneur/manager stakeholder are central in managing and leveraging the relationships between the firm and stakeholder relationships for dynamically modifying, renewing and regenerating marketing capabilities.

Key concept: Dynamic capabilities & Stakeholders

We set out from:Despite much sophisticated theoretical conceptualisations of the dynamic capabilities perspective there have been limited studies in explaining how dynamic capabilities are actually developed and manifested in INVs

3. Stakeholders and Capabilities – capabilities 101

Def Dynamic Capabilities: “The capacity to renew competencies so as to achieve congruence with the changing business environment” by adapting, integrating, and reconfiguring internal and external organizational skills, resources, and functional competencies.(Teece, Pisano, and Shuen 1997)

Incremental dynamic capabilities: Adaption and gradually improvement of the current resource base (Helfat et al. 2007).

Renewing dynamic capabilities: Purposeful creation, extention, or modification of the resource base (Helfat et al. 2007)

Regenerative dynamic capabilities: Restructuring, relearning, and leveraging of the resource base to embed new or improve existing dynamic capabilities as a means to enhance a firm’s current set of dynamic capabilities rather than its resource base (Ambrosini, Bowman, and Collier 2009).

“The capacity of an organization to purposely create, extend and modify its resource base”(Helfat et al. 2007, p. 1)

1. Pick’n’post2. Taylormade3. R&D

3. Stakeholders and Capabilities – capabilities 101

Incremental dynamic capabilities: Adaption and gradually improvement of…

Renewing dynamic capabilities: Purposeful creation, extention, or modification of…

Regenerative dynamic capabilities: Restructuring, relearning, and leveraging of the resource base to embed new or improve…

“The capacity of an organization to purposely create, extend and modify its resource base”(Helfat et al. 2007, p. 1)

Quick exercise (2 and 2)Discuss the relation between PLC and the distinction between different ‘type’ dynamic capability

Adapted from Baines et al (2011:p299)

3. Stakeholders and Capabilities – stakeholders and learning 101

Stakeholder typology

Cooperative Stakeholders (suppliers, distributors, direct customers, and other business alliances) behave similarly to their allied counterparts; they know enough about the firm to understand the reasons behind any unexpected and inconsistent behavior. Thus, the relationship is robust.

Double-loop learning is attainable: firm’s adapt, extend, or modify their resources, norms, values, and organizational objectives (Argyris and Schon 1978) to act on opportunities to improve the cooperative relationship for economic and rent gains. However (!) no willingness to change their own organizational context to achieve these potential goals.

Allied Stakeholders (employees, shareholders, top management, research partners etc.) share a cooperative relationship orientation with the focal firm and are highly committed to the relationship through, for example, idiosyncratic, relationship specific investments etc.

Triple loop learning is achievable: a process by which the organization’s mission or role is questioned. Lassey (1998) describes a simple example of managers intentionally deciding to change the nature of their business from a fast-food outlet to a café.

3. Stakeholders and Capabilities – stakeholders and learning 101

Stakeholder typology

Neutral stakeholders: industry experts, opinion leaders, community groups, etc). Interaction with the focal firm is based on achievement of individual goals which are independent of the firm’s goals. Mutual trust rests in the belief in controlling each other’s costs and benefits of opportunistic behavior.

Learning is predominantly single-loop: Parties would rather change the relationship partner than change their valued goals. (Polonsky et al 2002)

Entrepreneur/Manager Stakeholder “have particular importance for dynamic capabilities”(Helfat et al. 2007, p. 20), and it is individual managers themselves, what they do, and how they do it that matter (Felin and Foss 2005; Orlikowski 2002; Sarasvathy 2004).

Proactive entrepreneurs interact and learn from different stakeholders. Andersson (2000) amongst others suggest that it is necessary to actively take advantage of upcoming opportunities to develop marketing capabilities and market assets that create international growth.

3. Stakeholders and Capabilities – the RQ

Using multiple case and Critical Incident Technique of highly export-dependant life science ventures, this study seeks to explore two research questions:

1. How do different stakeholder groups influence an INV’s ability to develop marketing capabilities?

2. What type of marketing capabilities are developed from the INV-Stakeholder relationships?

Same, more, or apples and pears?

3. Stakeholders and Capabilities – cases and sampling

3. Stakeholders and Capabilities - findings

3. Stakeholders and Capabilities - findings

3. Stakeholders and Capabilities - findings

3. Stakeholders and Capabilities - findings

(Shane & Eckhardt 2003, p164)

3. Stakeholders and Capabilities - model

6. Exercise: stakeholder’s commitmentAssignment: - Participation: groups of two and two, time schedule TBA- Discuss how the capability/stakeholder framework could be applied to

describe the development of Svendborg Breaks- Characterize the ‘external’ stakeholders to Svendborg Breaks

Plenary discussion: Connections to last sessions literature? Allocative/discovery/creation

17

Round off

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