We build on previous research that explores the external acquisition of competitive capabilities through the embedded ties that firms form in networks and alliances. While information sharing and trust have been theorized to be key features of the interorganizational ties that facilitate the acquisition of competitive capabilities, we argue that these mechanisms provide an incomplete explanation because they do not fully address the partially tacit nature of the knowledge that underlies competitive capabilities. Joint problem-solving arrangements play a prominent role in capability acquisition by promoting the transfer of complex and difficult-to-codify knowledge. Drawing on a set of case studies and a survey of 234 job shop manufacturers we find support for the role of joint problem solving with suppliers in facilitating the acquisition of competitive capabilities.

This paper investigates the effects of implementing the international standard ISO 9000 on measures of business and operating performance. Based on the literature and a case study we identified two stages in implementing ISO 9000-(1) Installation, which has two dimensions: (a) external coordination and (b) integration; and (2) Usage, which also has two dimensions: (a) in daily practice and (b) as a catalyst for change. The hypotheses were that installation of ISO 9000 is positively related to use of ISO 9000, and use of ISO 9000 is positively related to operating performance. In addition, use of ISO 9000 is positively related to business performance since operating performance is positively related to business performance. We used hierarchical linear models (HLM) to test our hypotheses and validated the results by comparing the longitudinal performance of ISO 9000 certified companies with four matched samples of companies that were not ISO 9000 certified. Our analysis indicated that while the installation stage was necessary to successfully implement ISO 9000, organizations achieved a distinct operating advantage from this replicable standard when they used it in daily practice and as a catalyst for change. These findings were based on responses to a survey of 1150 quality managers in 924 organizations, which was supplemented for about one-third of the organizations with longitudinal information from the Compustat database on the organizations' business and operating performance. The validation indicated that implementing the ISO 9000 standard led to improved operating performance, but that this outcome did not necessarily or automatically yield better business performance. #

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Using data from electric utilities, this study shows that spending on better designed regulations has a positive productivity impact, while spending on less well-desgined regulations has a negative effect. Better designed regulations are flexible and grant firms the latitude in how to meet goals, allow them time to deploy new means to meet goals, and set ambitious goals that stretch firms beyond current practices. Many scholars have noted that there are both positive and negative aspects to the growing legalization of organizational processes and structure (Sitkin and Bies, 1994). While impersonal legal norms may be at odds with the efficient utilization of resources (Albrow, 1970), if well-designed (March and Olsen, 1989) these rules can have both quantitatively and qualitatively different results. Theory and empirical study need to be developed. The question of how to improve the design of regulations is an

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