Building Social Capital in a Multibusiness Firm: Lessons by Eva Bilhuber Galli

By Eva Bilhuber Galli

Understanding synergies throughout assorted companies is a mulitbusiness enterprise? s standard strategic problem. Eva Bilhuber Galli investigates the function of social capital in cross-business collaboration and the way to construct it successfully with management improvement practices.

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By Eva Bilhuber Galli

Understanding synergies throughout assorted companies is a mulitbusiness enterprise? s standard strategic problem. Eva Bilhuber Galli investigates the function of social capital in cross-business collaboration and the way to construct it successfully with management improvement practices.

Show description

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32 Existing Theory and Research Types of Strategic Alignment. , 2007). , organizational strategy) need a dedicated set of practices. , 1992). , 2007). Thus, both alignments are closely interrelated and an internal alignment of HRM systems is, in this regard, dynamic as it has to adapt to external changes in order to meet present and future challenges. Therefore, a strategic alignment of HRM activities implies both an external and internal fit that is managed and balanced in an efficient way toward the critical goals of HRM, which are labor productivity, social legitimacy and organizational flexibility.

Further, realizing cross-business synergies implies that managers are able to recognize these synergy opportunities including their mutual benefits (Campbell, 1999). , 1997). This set of activities implies, among other things, for example, a set of activities regarding the championing of new opportunities as well as implementation activities, such as translating goals into action plans, etc. Martin et al. (2003) also provide supporting evidence that opportunity seeking is an important ability for cross-business synergy realization, referring to it as a “spirit of opportunity capture”.

For example, if cost leadership is the competitive strategy of a firm, it is suggested to design repetitive jobs, train employees only in practical things to close immediate performance gaps and reward only output and predictable behavior (Jackson & Schuler 1997). In this regard, business performance will improve when the HR practices and the firm's competitive strategy are mutually reinforcing each other, or in other words are aligned. Some empirical support for the argument is offered by a range of studies (Delery & Doty, 1996; Peck, 1994) that show, in fact, that firms pursuing an innovation strategy pay better wages and provide more training and opportunities for employee participation than firms that focus on costs.

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