Julia Hautz

Communitition: The Tension between Competition and Collaboration in Community-Based Design Contests

Following the concepts of crowdsourcing, co-creation or open innovation, companies are increasingly using contests to foster the generation of creative solutions. Currently, online idea and design contests are enjoying a resurgence through the usage of new information and communication technologies. These virtual platforms allow users both to competitively disclose their creative ideas to corporations and also to interact and collaborate with like-minded peers, communicating, discussing and sharing their insights and experiences, building social networks and establishing a sense of community. Little research has considered that contest communities both promote and benefit from simultaneous co-operation and competition and that both types of relationships need to be emphasized at the same time. In this article, it is argued that the firm-level concept of co-opetition might also be relevant for an innovations success on the individual level within contest communities. Our concept of communitition should include the elements of competitive participation without disabling the climate for co-operation, as numerous user discussions and comments improve the quality of submitted ideas and allow the future potential of an idea to shine through the so-called wisdom of the crowd.

Ownership Identity and Concentration: A Study of Their Joint Impact on Corporate Diversification

This paper examines the impact of ownership on product and international diversification. While ownership concentration has received considerable attention from agency theorists we argue that a more nuanced analysis is necessary. We consider how the identity of owners moderates the impact of ownership concentration on diversification strategies. We develop a framework that explains how the combination of different motivations, resources and capabilities associated with different types of owners results in significantly variable relationships between ownership concentration and both product and international diversification. From a theoretical perspective this suggests a social contextualization and extension of the agency theoretic approach that characterizes the field. Based on a study of 222 European firms between 1994 and 2007 we show that family ownership concentration has a positive impact on product and a negative impact on international diversification while the impact of institutional and state ownership concentration is negative on product diversification and positive on international diversification compared with family ownership. This is the first study to provide a comprehensive framework explaining how ownership concentration and identity interact and affect both international and product diversification.

Machiavellianism or Morality: Which Behavior Pays Off In Online Innovation Contests?

Abstract Prior research on user behavior in online innovation contests has mainly focused on factors that positively impact prosocial, collaborative behavior, which should ultimately lead to innovative outcomes. However, little is known about the effects of more negative personal characteristics that might result in more competitive, antisocial, and even unethical behavior. This paper considers Machiavellianism as one of the traits that constitute the “dark triad of personality” and explores the relationship between Machiavellianism and participants’ contribution behavior in online innovation contests. Specifically we investigate how Machiavellian characteristics influence individuals’ contribution intensity, communication, and interaction behavior within the contest community as well as the quality and kind of their contributions. This study relies on multisource individual-level data from a large innovation contest in the field of public transportation. We find that the three dimensions of Machiavellianism—distrust of others, amorality, and desire for status—have very distinct behavioral consequences in the context of online innovation contests. Specifically, the oppositional consequences of amoral manipulation and striving for status on the one hand and showing distrust of others on the other hand concerning contribution quantity and contribution quality are found. This study contributes to a deeper understanding of negative personality traits such as Machiavellianism as powerful predictors of behavior and of success within competitive innovation environments and leads to important managerial implications regarding the design and management of innovation contests.

Firestorms: Modeling conflict diffusion and management strategies in online communities

Abstract This study aims to provide a better understanding of how organizations can manage public conflict and firestorms in social media spheres. We develop an agent-based simulation model of conflicts in firm-hosted online communities and find that a collaborating conflict management style characterized by high levels of cooperativeness and assertiveness helps to successfully handle conflict. However, the effectiveness of this collaborative style is highly dependent on contingency factors related to the participating individuals and the social structure within the community itself, such as the number of moderators and aggressors present in the community, their credibility, as well as the overall opinion of the community. Depending on these factors, collaborating and accommodating conflict management becomes more or less successful. Under some configurations it is even less effective than more competitive and assertive management styles. Therefore, to successfully handle conflict and restrain the escalation of a firestorm, organizations need to optimally adapt their conflict management style to varying conditions by considering individual-level and community-level characteristics.

Unveiling the myths of M&A integration: challenging general management and consulting practice

Purpose – The purpose of this paper is to detect and challenge generally accepted management and consulting practice in Mergers & Acquisitions (M&As). M&As have been an important issue in strategic management and corporate development for decades. The integration process of two separate entities has been found to be of importance, and has, accordingly, received a significant amount of attention by research, management and consulting literature. Based on these insights, managers tend to rely on well-established and generally accepted rules developed by practice and consultants that should support a successful integration process and the generation of value. Nonetheless, M&As’ efforts still often fail to create value. So is the common practice of the established drivers and beneficial consequences of the integration of M&As right, or do the experiences of consultants, companies and managers reveal something different? Design/methodology/approach – To understand these challenges, the authors spent four years...

Opening up the strategy process – a network perspective

Purpose While strategy was traditionally perceived as exclusive, and limited to small groups within organizations, recently a shift toward greater openness through inclusion of a larger number and variety of actors is emerging. The purpose of this paper is to adopt a social network perspective to develop a theoretical framework on how this increased openness has a varying impact in the different phases of the strategy process. Design/methodology/approach The author suggests that the strategy process is shaped through social interactions between individuals. Specifically the author conceptualizes how introducing openness affects individuals’ structural and relational characteristics, which impact generating new strategic ideas (variation), and selecting (selection), and integrating them into the existing set of routines (retention). Findings The framework shows that benefits and costs of increased openness balance differently. While substantial benefits may be realized in the idea generation phase, costs may outweigh the benefits in the selection and retention phase. Practical implications Based on the framework, implications can be drawn on how openness should be introduced in the different phases of the strategy process. Specifically the author discusses appropriate open strategy tools based on social technologies, which organizations can use to benefit from openness in the different stages. Originality/value Open strategy is a newly emerging phenomenon, which seems to fundamentally change the strategist’s work. More open, inclusive ways of strategizing offer new benefits but also create costs in the strategy process. This paper deepens the theoretical understanding of the consequences of openness in the strategy process.

Diversification and Internationalization in the European Single Market: The British Exception

This article examines the long-run impact of the 1992 completion of the European Single Market on the diversification and internationalization of European business. It does so at a particular moment of crisis: the exit of the United Kingdom from European Union (“Brexit”). The article finds that completion of the European Single Market is indeed associated with significant and widespread changes in the strategies of European businesses between 1993 and 2010. European business has converged on more focused diversification strategies and followed similar patterns of internationalization. The most significant exception is the consistently low level of British business’s commitment to European markets. The distinctiveness of British internationalization is, in a sense, Brexit foretold.

Advance and Retreat: How Economics and Institutions Shaped the Fate of the Diversified Industrial Firm in Europe

Abstract Theory predicts that economic and institutional changes increase competitive pressure and lead to the retreat of unrelated diversified firms, while, at the same time, allow more economically efficient related forms of diversification to persist. This study investigates the long-term waves of diversification in France, Germany, and the United Kingdom between the 1950s and 2003. It documents a rise in diversification until the mid-1990s and a retreating wave since the inception of the single European Market. These waves reflect both an early shift to related diversification and nationally variable trends of unrelated diversification. We examine the fate of the unrelated diversified firms in more detail to establish what caused some to refocus and others to resist the wider trend. In particular, we explore if and how different kinds of ownership facilitated the strategic choices to maintain existing unrelated strategies. We examine these choices in detail by considering representative and illustrative company case examples.

Open Management as Management Innovation: Thoughts About New Business and Disruption in Consulting

Based on the management innovation of “Open Management” the authors explore chances as well as risks in view of management consulting. It becomes evident that most companies cannot find their way to “Open Management” without external support. Prima vista, good times for consultants. A closer look reveals: What companies currently need is not provided by traditional consultants. And traditional consultants will not be able to support companies on their way to “Open Management”. There will be others who will rule this game…

Ownership identity and concentration: a study of their joint impact on corporate diversification strategies

This paper examines the impact of ownership on product and international diversification. While ownership concentration has received considerable attention from agency theorists we argue that a more nuanced analysis is necessary. We consider how the identity of owners moderates the impact of ownership concentration on diversification strategies. We develop a framework that explains how the combination of different motivations, resources and capabilities associated with different types of owners results in significantly variable relationships between ownership concentration and both product and international diversification. From a theoretical perspective this suggests a social contextualization and extension of the agency theoretic approach that characterizes the field. Based on a study of 222 European firms between 1994 and 2007 we show that family ownership concentration has a positive impact on product and a negative impact on international diversification while the impact of institutional and state ownership concentration is negative on product diversification and positive on international diversification compared with family ownership. This is the first study to provide a comprehensive framework explaining how ownership concentration and identity interact and affect both international and product diversification.