The Synergy of Business Theory and Practice

Advancing the Practical Application of Scholarly Research

Alkis Thrassou, Demetris Vrontis, Yaakov Weber, S. M. Riad Shams, Evangelos Tsoukatos, Alkis Thrassou, Demetris Vrontis, Yaakov Weber, S. M. Riad Shams, Evangelos Tsoukatos

• Publisher: Palgrave Macmillan
• Year: 2019
• Print ISBN:
  9783030175221
• eBook ISBN:
  9783030175238
• Topic: Betriebswirtschaft
• Subtopic: Unternehmensstrategie

The lack of congruence between theory and practice in business remains a widely discussed topic. This lack of synergy is quietly and elusively becoming the Achilles' heel of contemporary scholarly business research and, by extension, of business in general. Focusing on the deviation of means and ends between business theory and practice, this book comprises thirteen chapters, which present an array of theoretical and geographical contexts, and aim to bring scholarly thinking and scientific analysis together with managerial rationale and practical applications. Presenting valuable insights and demonstrating an equalised perception of the theorisation of practice, and reversely, the practicality of theory, this innovative book signifies a new philosophy of scientific work and provides thought-provoking reading for scholars in a range of business sub-disciplines.

© The Author(s) 2019

Alkis Thrassou, Demetris Vrontis, Yaakov Weber, S. M. Riad Shams and Evangelos Tsoukatos (eds.)The Synergy of Business Theory and PracticePalgrave Studies in Cross-disciplinary Business Research, In Association with EuroMed Academy of Businesshttps://doi.org/10.1007/978-3-030-17523-8_1

Begin Abstract

1. Editorial Introduction: The Requisite Bridge from Theory to Practice

Alkis Thrassou¹ , Demetris Vrontis¹ , Yaakov Weber² , S. M. Riad Shams³ and Evangelos Tsoukatos⁴

(1)

Department of Marketing, University of Nicosia, Nicosia, Cyprus

(2)

School of Business Administration, College of Management, Rishon Lezion, Israel

(3)

Newcastle Business School, Northumbria University, Newcastle Upon Tyne, UK

(4)

Department of Accounting and Finance, Hellenic Mediterranean University, Heraklion, Crete, Greece

Alkis Thrassou (Corresponding author)

Email: [email protected]

Demetris Vrontis

Email: [email protected]

Yaakov Weber

Email: [email protected]

S. M. Riad Shams

Evangelos Tsoukatos

Email: [email protected]

End Abstract

1.1 Book Context and Theoretical Foundations

1.1.1 The Imperative of Practicable Theory: A Strategic Perspective

Amidst an ever-changing, shape-shifting and incessantly value-transforming global business context, organisations are becoming painfully aware that mainstream, time-honoured strategies are becoming increasingly irrelevant and incapable of dealing with new realities (Chebbi et al. 2013; Leonidou et al. 2018). Inescapably and irrevocably, businesses and scholars alike have turned to alternative, innovative, pioneering and exploratory organisational notions, concepts and philosophies, whose practical implementation might present the requisite strategies, tactics, systems and processes to survive and grow in this positively transmuting ‘new world’. Organisational ambidexterity (Campanella et al. 2016), strategic reflexivity (Vrontis et al. 2012), the knowledge organisation (Vrontis et al. 2017) and many other notions have been conceived, theoretically developed and practically applied, aiming to align businesses with the direction of rising new forms of markets (Thrassou 2007), with varying degrees of success.

And while scholars and practitioners appear fully aware of these changes and are decisively geared towards successfully, albeit erratically (Thrassou et al. 2012; Bresciani et al. 2013), adapting to these, they also appear to have missed a critical factor of success underlying this process: namely, the rate of change of the business world measured against the rate of interrelationship between theory and practice. More specifically, the lack of congruence and the temporal relation of theory and practice in business have always been a matter of discussion, and an inherent weakness of the field. However, this natural flaw, pertaining to the very nature of science within a social/business/human context, is quietly and elusively becoming the Achilles’ heel of contemporary scholarly business research and, by extension, of business in general. To put it more simply, the very incessant change of the business environments globally that theory is trying to scientifically comprehend and master is also the very reason it makes the effort ineffective, since the ‘cycle’ of realising a phenomenon, researching it and publishing it is far too long for it to be timely utilised in the managerial context. The subsequent sub-section presents some background to this question to end with its contemporary state and issues.

1.1.2 Theoretical Foundations

The relationship between theory and practice has been the subject of rich and complex reflections, and scholars have diachronically blended theory and practice in quite different ways. These relationships have been described as correspondent (Lewin 1943), coordinate (Dutton and Starbuck 1963), complementary (Roethlisberger 1977), parallel (Thomas and Tymon Jr 1982), incommensurable (Sandelands 1990), reciprocal (Craig 1996), conceptually equivalent (Argyris 2000) and methodologically equivalent (Kilduff and Mehra 1997). Society expects that scholarly research will deliver knowledge that can be used in practice. However, over the years, the problem of irrelevance of findings of academic research that are published in scholarly journals has been hotly debated (Brennan 2004; Katsikeas et al. 2004; McKenzie et al. 2002; Varadarajan 2003). Brannick and Coghlan (2006, p. 4) have claimed that ‘It appears that the business world is generally ignoring the research and consequent knowledge produced by business schools or academia, since it feels it is irrelevant to its purposes’.

Contrary, however, to the view that theory is not relevant, summarising, testing, associating, re-evaluating and seeking to describe and understand things—which is what theories do—are absolutely critical for every aspect of our lives. Despite the widespread debate about the practical application of theory, theory is important to the advancement of knowledge and the practical application of ideas. Theory provides the principles that underpin practice, by providing direction for action and rationale for decision-making and help in knowledge building, including the development of concepts and their relationships, the testing of predictions and the uses of research results to modify, support or not support theoretical explanations. The reciprocal relationship between theory and practice is evident, since one continuously tests one’s hypotheses and infers new meanings from experience. Theory guides practice, practice tests theory. Theory can inform practice and practice can inform theory. Kumar (2017), thus, agrees that both theory and practice play an important role in furthering knowledge generation.

Theories in the context of business rely upon observation and experiment in order to create a model for business activities. Businesses have much to learn from theory, provided that it is based on data that are repeatedly supported by experiment (Glaser et al. 1968). Due to the unique nature of business-related research that integrates information, theories, concepts and techniques from a range of different disciplines including sociology, economics and psychology, business research tends to examine practical topics rather than be structured around theoretical paradigms. Moreover, academics who are focused on business research establish partnerships involving consultants and other professional service providers in the multi-stakeholder problem-oriented research process. Engaging with these intermediaries bestows important knowledge to the research process, because their business practices often involve connections to organisational practice and deep expertise in bringing external knowledge to organisations and creating accessible knowledge products.

In today’s dynamic world, the generation of knowledge is supposed to be happening through a sustainable marriage between theory and practice. This marriage has the potential to provide more than just useful techniques to businesses but rather has the potential to transform organisations for the sustainable benefit of entire societies. Examples include the research funded by Advanced Institute of Management initiative (AIM) in the United Kingdom to be more relevant to policy, competitiveness and practitioner needs. The same applies to the National Science Foundation (NSF) and the National Institutes of Health (NIH) in the United States which funded universities for similar purposes.

And yet, and though still not universally alarming, an increasingly visible widening of the gap between theory and practice is observed throughout the spectrum. Technological, for example, especially internet-based business developments, appear in scientific literature not later than when they always used to. But at the current rate of businesses transformational change, the same delay renders the literature ‘old at birth’ at best, and ‘irrelevant’ at worst. And though, as in most cases, the ‘disease’, its symptoms and its effects are easier to identify than its cure, some propositions can be logically derived at. One of these is the imperative of theoretical research to be—apart from as contemporary as possible—bridging theory and practice in a temporally ‘synchronous’ (research) fashion, as opposed to the more ‘cyclical’ (research) diachronically adopted.

Consequently, therefore, this second volume of the series titled ‘Palgrave Studies in Cross-Disciplinary Business Research, in Association with EuroMed Academy of Business’ focuses on ‘The Synergy of Business Theory and Practice: Advancing the practical application of scholarly research’.

1.2 Book Content and Structure

In the spirit of the above, this book comprises a (further) 12 works/chapters that aim at bringing together scholarly thinking and scientific analysis with managerial rationale and practical applications. The works purposefully cover an array of theoretical, industry and geographic contexts; and individually and collectively aim to bridge theory and practice to deliver insights from and towards both ends.

The following chapter (Chap. 2, ‘Theoretical Concepts and Practical Applications of Accounting-Related Shared Service Centres in Medium-Sized Firms’ by Stefan Bantscheff and Bernd Britzelmaier) focuses on the practice of shared services and its contemporary application to medium-sized companies, which steadily start to implement shared service centres (SSCs). Because there is not much empirical evidence on the topic, the chapter aims to shed light on the design, the implementation and the controlling instruments of an SSC in accounting departments of small- and medium-sized e...

Table of contents

• Cover
• Front Matter
• 1. Editorial Introduction: The Requisite Bridge from Theory to Practice
• 2. Theoretical Concepts and Practical Applications of Accounting-Related Shared Service Centres in Medium-Sized Firms
• 3. From Theory to Practice of Formal and Informal Palestinian Small Businesses
• 4. A Practicable Implementation of Training and Development in Professional Services: The Case of Accountants in Cyprus
• 5. The Role of Organizational Identity in Post-Merger Integration
• 6. Energy Business in Gambia: An Industry Review for Theoretical and Practical Implications
• 7. Sustainable Customer Experience: Bridging Theory and Practice
• 8. Industry Application of Assessment and Forecasting Theories Through Comparative Financial Analysis: The Case of Greek Pharmaceutical Industries Under Crisis Conditions
• 9. Industry and Managerial Applications of Internet Marketing Research
• 10. CSR Reporting Practices of Lithuanian and Italian Academic Institutions
• 11. The Practicable Aspect of the Omni-Channel Retailing Strategy and Its Impact on Customer Loyalty
• 12. Curative International Marketing, Corporate and Business Diplomacy: A Triple Application for Migration
• 13. Sustainability in Project Management: Advancing the Synergy of Practice and Theory
• Back Matter