Abstract

http://ssrn.com/abstract=1107902
 
 

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Diffusing Management Practices within the Firm: The Role of Information Provision


Michael Lenox


University of Virginia - Darden School of Business

Michael W. Toffel


Harvard Business School (HBS) - Technology & Operations Management Unit

March 14, 2008

Harvard Business School Technology & Operations Mgt. Unit Research Paper No. 08-085

Abstract:     
A key role of corporate managers is to encourage subsidiaries to adopt innovative practices. This paper examines the conditions under which corporate managers use information provision to encourage subsidiaries' adoption of advanced management practices. Focusing on the distribution of expertise across subsidiaries, we propose that corporate managers elect an information provision strategy when (i) subsidiaries, on average, possess moderate levels of related expertise, (ii) subsidiaries exhibit significant heterogeneity in this expertise, and (iii) the subsidiaries are more diversified and less concentrated. We examine the efforts to diffuse pollution prevention practices exhibited by manufacturing firms in the information and communication technology sector in the United States, and find empirical support for the four hypotheses developed here. The research presented in this paper has implications for our understanding not only of who adopts advanced environmental management practices, but more broadly, of when firms adopt information provision strategies to encourage knowledge transfer within the organization.

Number of Pages in PDF File: 37

Keywords: information provision, knowledge diffusion, environmental management, environmental strategy

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Date posted: March 19, 2008 ; Last revised: April 11, 2008

Suggested Citation

Lenox, Michael and Toffel, Michael W., Diffusing Management Practices within the Firm: The Role of Information Provision (March 14, 2008). Harvard Business School Technology & Operations Mgt. Unit Research Paper No. 08-085. Available at SSRN: http://ssrn.com/abstract=1107902 or http://dx.doi.org/10.2139/ssrn.1107902

Contact Information

Michael Lenox
University of Virginia - Darden School of Business ( email )
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
HOME PAGE: http://faculty.darden.virginia.edu/LenoxM/index.htm
Michael W. Toffel (Contact Author)
Harvard Business School (HBS) - Technology & Operations Management Unit ( email )
Boston, MA 02163
United States
617.384.8043 (Phone)
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