Spyros Lioukas

Strategic decision‐making processes: the role of management and context

This paper investigates the relationship between the process of strategic decision-making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial reporting, rule formalization, hierarchical decentralization, lateral communication, politicization, problem-solving dissension. Second, these process dimensions are related to (1) decision-specific characteristics, both perceived characteristics and objective typologies of strategic decisions, (2) top management characteristics, and (3) contextual factors referring to external corporate environment and internal firm characteristics. Overall, the results support the view that strategic decision processes are shaped by a multiplicity of factors, in all these categories. But the most striking finding is that decision-specific characteristics appear to have the most important influence on the strategic decision-making process, as decisions with different decision-specific characteristics are handled through different processes. The evident dominance of decision-specific characteristics over management and contextual factors enriches the traditional ‘external control’ vs. ‘strategic choice’ debate in the area of strategic management. An interpretation of results is attempted and policy implications are derived.

Radical Product Innovations in SMEs: The Dominance of Entrepreneurial Orientation

The present study focuses on strategic factors underlying the adoption of radical product innovations in SMEs. It investigates whether market focus, technological posture and entrepreneurial orientation lead to the adoption of more radical product innovations. The study provides some new evidence on this issue drawing upon data collected from Greek SMEs in the food and beverages industry. More specifically, a logistic regression model is applied to analyse the choice between radical as against incremental product innovations. Empirical results appear to support the claim that it is mainly entrepreneurial orientation that favours the choice of radical product innovations. This suggests that in SMEs the notion of entrepreneurial-push outweighs both market-pull and technology-push arguments. The findings are discussed in the context of Greece, taking into account the specific conditions prevailing. Apart from providing some new evidence in the important area of SMEs, they have also important implications for managers and policy-makers. In addition, they encourage further theoretical and empirical investigation.

Governance Mechanisms of Small and Medium Enterprise International Partner Management

We examine how small and medium enterprises manage their international partners across different market servicing modes, namely exporting, joint ventures and wholly owned subsidiaries. The international business literature has placed emphasis on soft issues of international partner management (such as trust, cultural sensitivity etc.) in each mode category independently. Since network arrangements and knowledge sharing are involved in all these modes, we contribute to the literature by providing evidence on the mechanisms of international partner management across market modes. Specifically, based on agency and knowledge-based theories, we seek to understand the extent to which small and medium enterprises assign rights to make decisions to partners abroad, and the types of incentives and performance monitoring schemes they use. These mechanisms are drawn from agency theory. In-depth case studies were carried out in 14 Greek small firms that employed different modes to collaborate with their partners abroad. Seven of these firms had high levels of international performance while the other seven had low levels. We identify two distinguishable combinations of governance mechanisms being implemented by these two sets of firms: high performers pursue situational decision-making with outcome-oriented incentives/performance monitoring schemes, whereas low performers pursue centralized decision-making with behaviour-oriented incentives/performance monitoring schemes.

Do Effectuation Processes Shape the Relationship Between Product Diversification and Performance in New Ventures

This study applies the lens of effectuation to product diversification and examines the moderating effects of effectuation processes on the relationship between diversification and performance in new ventures. Effectuation processes are conceptualized in terms of experimentation, affordable loss, flexibility, and pre–commitments. The findings indicate that, with the exception of affordable loss, effectuation processes exert a positive effect on the diversification–performance relationship. Theoretical and empirical implications are discussed.

Evaluating alternative scenarios for high-speed rail investment in Greece

Introducing High-Speed Rail services along the two main corridors in Greece is expected to change the total scene of interurban transport. The present paper considers the effects of the high-speed rail investment plan against this background. It applies a three-fold evaluation process in order to assess the transport potential and the economic and other impacts of the investment. Alternative scenarios are considered with respect to construction period and pricing of the new high-speed services.

The Relationship Between Innovation and Diversification in the Case of New Ventures: Unidirectional or Bidirectional?

The present study examines the relationship between innovation and product diversification as growth strategies for new ventures. Specifically, it considers whether the relationship between these growth dimensions is unidirectional, with one preceding or following the other, or bidirectional, with both dimensions developing simultaneously. To develop theoretical arguments, we draw upon the divergent assertions of two theoretical traditions: the resource-based view and sociocognitive theory (SCT). The results show strong evidence of simultaneity and endogeneity between innovation and diversification. This finding strengthens the interpretation provided by SCT, suggesting that new venture strategies are extensions of an entrepreneurs ability scripts. They point to the prominent role of an entrepreneurs self-efficacy and education-related knowledge. Implications are discussed.

How functional involvement affects the transformation of external knowledge into innovation outcomes

This paper aims at investigating organizational mechanisms through which firms involved in open innovation initiatives can acquire external knowledge, integrate it with the existing one residing in the diverse functional areas, and transform it into innovation outcomes. Following the knowledge transformation perspective, we use the notions of early-stage and late-stage functional involvement, and explain their mediating effects on a firms innovation performance. Based on a sample of 131 international firms involved in open innovation projects, we find that high involvement of functions related to the early stage of the innovation process – notably new concept generation, research and development, and design and testing – fully mediates the effect of external knowledge transfer on innovation performance. Similarly, high involvement of functions related to the late stage of the innovation process – notably manufacturing, marketing, distribution, and logistics – has significant indirect effect on innovation performance but lower than that of early-stage functional involvement. Furthermore, the empirical research reveals that early-stage functional involvement mediates the positive effect of external knowledge transfer on late-stage functional involvement. Theoretical and practical implications of our findings are discussed.

Firm competencies and exports among SMEs: the critical role of collaborations

This paper examines the export behaviour of Small- and Medium-sized Enterprises (SMEs), shifting the interest to firm competencies and the role of finance. It builds on the Resource-Based View (RBV) framework to highlight marketing and technological competencies in the presence of financial constraints in order to explore in greater depth the export performance of SMEs. The results show the superiority of marketing competencies related to collaborations both domestically and - especially - abroad. Differentiations between smaller and larger SMEs are investigated. Empirical evidence suggests that SMEs face high sunk costs in order to internationalise, particularly among smaller SMEs. Implications are discussed.

Governance mechanisms of SME international partner management

We examine how small and medium enterprises manage their international partners across different market servicing modes, namely exporting, joint ventures and wholly owned subsidiaries. The international business literature has placed emphasis on soft issues of international partner management (such as trust, cultural sensitivity etc.) in each mode category independently. Since network arrangements and knowledge sharing are involved in all these modes, we contribute to the literature by providing evidence on the mechanisms of international partner management across market modes. Specifically, based on agency and knowledge-based theories, we seek to understand the extent to which small and medium enterprises assign rights to make decisions to partners abroad, and the types of incentives and performance monitoring schemes they use. These mechanisms are drawn from agency theory. In-depth case studies were carried out in 14 Greek small firms that employed different modes to collaborate with their partners abroad. Seven of these firms had high levels of international performance while the other seven had low levels. We identify two distinguishable combinations of governance mechanisms being implemented by these two sets of firms: high performers pursue situational decision-making with outcome-oriented incentives/performance monitoring schemes, whereas low performers pursue centralized decision-making with behaviour-oriented incentives/performance monitoring schemes.

Governance Mechanisms of Small and Medium Enterprise International Partner Management: Governance Mechanisms of International Partner Management

We examine how small and medium enterprises manage their international partners across different market servicing modes, namely exporting, joint ventures and wholly owned subsidiaries. The international business literature has placed emphasis on soft issues of international partner management (such as trust, cultural sensitivity etc.) in each mode category independently. Since network arrangements and knowledge sharing are involved in all these modes, we contribute to the literature by providing evidence on the mechanisms of international partner management across market modes. Specifically, based on agency and knowledge-based theories, we seek to understand the extent to which small and medium enterprises assign rights to make decisions to partners abroad, and the types of incentives and performance monitoring schemes they use. These mechanisms are drawn from agency theory. In-depth case studies were carried out in 14 Greek small firms that employed different modes to collaborate with their partners abroad. Seven of these firms had high levels of international performance while the other seven had low levels. We identify two distinguishable combinations of governance mechanisms being implemented by these two sets of firms: high performers pursue situational decision-making with outcome-oriented incentives/performance monitoring schemes, whereas low performers pursue centralized decision-making with behaviour-oriented incentives/performance monitoring schemes.