bluuebunny/crossref_metadata_2025_split huggingface dataset:
Cultural differences and shareholder value in related mergers: Linking equity and human capital
Authors: Chatterjee Sayan , Lubatkin Michael H. , Schweiger David M. , Weber Yaakov 
Published: May 2007

AbstractMerger literature suggests that the relationship between shareholder gains and the relatedness of merging firms is contingent upon the compatibility of the two firms' top management cultures. This hypothesis is tested by surveying the perceptions of cultural differences of top management teams of recently acquired firms, and then relating these perceptions to related stock market gains to the buying firms. The findings suggest a strong inverse relationship between perceptions of cultural differences and shareholder gains, after controlling for perceptions of the buying firm's tolerance for multiculturalism and the relative size of the merging firms.
Strategic momentum: The effects of repetitive, positional, and contextual momentum on merger activity
Authors: Amburgey Terry L. , Miner Anne S. 
Published: May 2007

AbstractThis paper defines and examines three types of strategic momentum. Repetitive momentum occurs when organizations repeat previous strategic actions. Postitional momentum occurs when organizations take actions that sustain or extend existing strategic positions. Contextual momentum occurs when general traits, such as organizational structure, shape strategic action in a consistent fashion. Event‐history analysis of 262 large firms over a 29‐year period indicates that: (1) the occurrence of mergers tends to increase the rate of mergers of the same type (repetitive momentum), and (2) organizational decentralization increases the rate of diversifying mergers (contextual momentum). Product market diversification was found to increase the probability of product extension mergers but not conglomerate mergers, only partly confirming positional momentum. The results indicate that internal momentum can affect merger activity, and suggest the importance of continuing research on the role of inertia in organizational adaptation.
A taxonomy of business‐level strategies in global industries
Authors: Morrison Allen J. , Roth Kendall 
Published: May 2007

AbstractThis study presents a taxonomy of business‐level strategies in global industries. Empirical data suggest there are four broad strategies: domestic product niche, exporting high quality offerings, international product innovation, and quasi‐global combination. A discussion of the characteristics and performance differentials of each strategy type is provided as well.
Spin‐off performance: A case of overstated expectations?
Authors: Woo Carolyn Y. , Willard Gary E. , Daellenbach Urs. S. 
Published: May 2007

AbstractWhile the impact of divestitures on parent firms has been extensively studied, little attention has been given to the performance of the divested units. Previous research has found that spin‐offs and sell‐offs were associated with significant positive cumulative abnormal returns. However, these studies have not identified whether these benefits were expected to accrue to the divesting firm, the divested unit, or both. Specifically, this study examined the performance as autonomous firms of a sample of 51 voluntary spin‐offs by nonfinancial firms across a 6‐year period. Three accounting and financial market measures were tracked from 2 years prior to divestiture through the first three years of independence. No change in pre‐ and post‐spin‐off performances was observed except for the decline in profitability return on assets (ROA). The effect of relatedness between the parent company and the spinoff was also examined. Divested units which were unrelated to their parents prior to spinoff reported deterioration in performance. Implications for divestiture and restructuring programs are developed.
The three faces of corporate renewal: Institution, revolution, and evolution
Authors: Mezias Stephen J. , Glynn Mary Ann 
Published: May 2007

AbstractWe examine corporate renewal by taking a structural approach and focusing on the routines and rules that are part of large, established, bureaucratic organizations. We characterize approaches to the management of innovation in terms of three different themes–institutional, revolutional, and evolutional strategies. The first two approaches involve intentional efforts to encourage innovation, either within the current organizational paradigm (institutionalizing innovation) or moving away from it (revolutionary innovation), while the evolutional approach involves less conscious efforts to manage what is viewed as a random, probabilistic process. This paper uses simulation methodology to explore the effectiveness of these strategies on organizational innovation, performance, and resources. The behavior of the simulated organizational units is guided by assumptions of a learning model. Results indicate that innovation strategies sometimes have unintended effects that are both positive and negative in nature. Several lessons on managing innovation are offered.
Strategic groups: A cognitive perspective
Authors: Reger Rhonda K. , Huff Anne Sigismund 
Published: May 2007

AbstractThe strategic group concept provides an attractive middle ground between firm and industry for both theory development and empirical analysis. To date, this concept has been defined by researchers in terms of secondary accounting and financial data, and a number of critics have questioned the validity of this work. Our research shows that industry participants share perceptions about strategic commonalities among firms, and that participants cluster competitors in subtle ways not reflected in extant academic research on strategic groups. Decision makers' perceptions and cognitions are phenomena that can be expected to influence industry evolution. They are of research interest as an additional source of data on firm commonalities which helps address concerns about previous strategic group research.
Bankruptcy as a deliberate strategy: Theoretical considerations and empirical evidence
Authors: Moulton Wilbur N. , Thomas Howard 
Published: May 2007

AbstractBankruptcy and bankruptcy reorganizations have been identified as remedies for financial distress, but there is little agreement on their value to firms, managers, and the general economy. This paper provides a brief review of proposed bankruptcy strategies and some alternative views about their costs and benefits followed by an empirical study of the outcomes of 73 bankruptcies and subsequent reorganization efforts. The evidence suggests that there are few successful reorganizations, bankruptcy is a costly response to financial distress, and managerial choice in bankrupt firms is highly constrained by forces external to the firm. The diversity of stakeholder interests limits the value of global judgements about success or failure of bankruptcy strategies. Firm size dominates all other factors in predicting success in completing the reorganization process. Delayed filings primarily reflect failed efforts to avoid bankruptcy, not deliberate strategies. Reasons for the use of bankruptcy in spite of its high costs are discussed.
Entrepreneurship and the concept of fit: A model and empirical tests
Authors: Naman John L , Slevin Dennis P. 
Published: May 2007

AbstractThis paper reports the results of a study designed to investigate entrepreneurship and ‘fit’ in small and medium sized high technology manufacturing firms. A normative model of fit has been developed, which including the variables of entrepreneurial style, organizational structure, and mission strategy, determines a measure of the firm's fit with its environment. The normative model of fit proposed here is based on variables and relationships found to be important in previous empirical studies. Data on environmental turbulence, entrepreneurial style, organization structure, mission strategy, and financial performance were collected from 82 manufacturing firms. A measure of fit was calculated for each firm. Findings indicate that performance among firms was positively related to the measurement of fit. In short, fit is an important construct for firm success. Implications include prescriptive guidance to assist practitioners in diagnosing and correcting ‘misfit’ for individual firms.
Technology's varying impact on the success of strategic business units within the miles and snow typology
Authors: Dvir Dov , Segev Eli , Shenhar Aaron 
Published: May 2007

AbstractThe high‐tech industry is usually treated as an homogeneous entity, without differentiating between organizations according to the relative importance of technology in their business strategy. This paper investigates the varying impact of technology on the success of strategic business units within the Miles and Snow typology. Although common wisdom might lead to the conclusion that prospectors are more dependent on technological progress than the other strategic types, the results show rather that the influence is greater and more fruitful for the defenders both in the short and the long term.
Multiple scenario development: Its conceptual and behavioral foundation
Authors: Schoemaker Paul J. H. 
Published: May 2007

AbstractThis paper examines the multiple scenario approach as an important corporate innovation in strategic planning. Using a participant/observer perspective, I examine how scenario planning tries to meet certain methodological, organizational and psychological challenges facing today's senior managers. Three prime characteristics are identified as setting the scenario approach apart from more traditional planning tools: (1) the script or narrative approach, (2) uncertainty across rather than within models, and (3) the decomposition of a complex future into discrete states. After exploring the intellectual roots of scenario planning, I examine such organizational aspects as the need for diversity of views and the importance of simplicity and manageability. Both benefits and obstacles to using scenarios in organizations are identified. Cognitive biases are examined as well, especially the well‐known biases of overconfidence and the conjunction fallacy. Two experiments test the impact of scenarios on people's subjective confidence ranges. Another two experiments test the internal coherence of subjects' beliefs. The psychological benefit of scenario planning appears to tie in the exploitation of one set of biases (e.g., conjunction fallacies) to counteract another (such as overconfidence).
Changing competitive dynamics in network industries: An exploration of sun microsystems' open systems strategy
Authors: Garud Raghu , Kumaraswamy Arun 
Published: May 2007

AbstractAn integral part of competition is to deny rivals access to proprietary technical knowledge. Yet, Sun Microsystems provides rivals easy access to its technical knowledge and encourages them to enter its workstation market. This paper employs theoretical insights on technological systems and network externalities to understand Sun's open systems strategy. The paper also explores the changing nature of competition in network industries–industries characterized by network externalities and built around technological systems.
Environment‐strategy relationship and its performance implications: An empirical study of the chinese electronics industry
Authors: Justin Tan J. , Litsschert Robert J. 
Published: May 2007

AbstractThis study examined the strategy‐environment‐performance paradigm in a centrally plannedeconomy (People's Republic of China) in transition to a more market‐driven economy. Based on a survey of top Chinese managers in the electronics industry, it was found that during this course of transformation, firms exhibited distinctive strategies despite a long tradition of central planning, and these strategies were signijcantly related to perceived environmental uncertainty. Specifically, managers perceptions of increased environmental uncertainty were found to be negatively related to proactive strategies and positively related to defensive strategies. Defensive strategies were also linked to higher performance.
New venture strategies: Theory development with an empirical base
Authors: Carter Nancy M. , Stearns Timothy M. , Reynolds Paul D. , Miller Brenda A. 
Published: May 2007

AbstractThe strategy focus of over 2500 new ventures across six different industries was examined to identify what dimensions coalesce into distinct configurations. The supposition that traditional strategy typologies are inadequate to describe the breadth of differentiation exhibited among new ventures was supported. Factor and cluster analysis revealed six generic new venture strategy archetypes that can be distinguished along two dimensions; scope of segmentation, and product vs. marketing emphasis. The extent to which the archetypes tend to dominate in different industries was found to vary according to the industry's position on the industry supply chain. Strategies with a narrow scope of segmentation tended to prevail in industries near the end of the supply chain, whereas those that adopted a broad approach tended to predominate in industries near the beginning or middle of the supply chain.
Competitive attack, retaliation and performance: An expectancy‐valence framework
Authors: Chen Ming‐Jer , Miller Danny 
Published: May 2007

AbstractThis research examines how competitive attacks can best reduce the chances of retaliation. An expectancy–valence model is developed that views retaliation as a function of the subtlety of an attack: that is, its visibility, the difficulty rivals might have in responding to it in kind, and the importance or ‘centrality’ to rivals of the market under siege. Motivational theories suggest that all three of these independent variables need to be in place in order to elicit a response—or conversely, that low visibility, substantial response difficulty, or minimal centrality would each by itself be enough to prevent retaliation. This notion was not supported. Each one of the independent variables could serve as the ‘weak link of the chain,’ increasing the chances of retaliation. However, as predicted by expectancy theory, these variables selectively demonstrated some interactions that compound the threat of retaliation. In combination, high visibility and low levels of difficulty were especially likely to evoke responses from rivals. Finally, there appears to be a real incentive to avoid retaliation given its negative associations with performance.
Goal configuration in a global industry context
Authors: Roth Kendall , Ricks David A. 
Published: May 2007

AbstractThis study analyzes the goal configuration of 126 firms, based in Japan, U.K. and U.S., competing in global industries. The results indicate that firm nationality and internationalization do not affect the firm's goal configuration. The breadth of the firm's reward system was found to be related positively to a dispersed goal configuration and, within global and multifocal industry segments, a congruence between goal configuration and industry position was found to be associated positively with performance.
A methodological note on diversity measurement
Authors: Hall Ernest H. , St. John Caron H. 
Published: May 2007

AbstractThis research addresses the question, do categorical and continuous measures capture the same construct of diversity? Using analysis of variance, cluster analysis, and discriminant analysis, we investigated whether continuous measures (entropy and product count) differentiate between diversification categories, whether continuous measures converted to categories and subjectively assigned categories classified companies similarly, and whether continuous and categorical measures predicted similar diversity–performance relationships. We concluded that the techniques were associated but did not yield the same performance predictions. For researchers investigating diversity–performance relationships, choice of measurement technique will influence research results. Our research results suggest that attempts to combine categorical and continuous techniques as a way to overcome the limitations of both methods is not appropriate.
Choice situation, strategy, and performance: A reexamination
Authors: Marlin Dan , Lamont Bruce T. , Hoffman James J. 
Published: May 2007

AbstractThis study further examines strategy and performance relationships between and within situations of varying strategic choice and environmental determinism. Contrary to Lawless and Finch's (1989) previous test of Hrebiniak and Joyce's (1985) dynamic, interactive view of organizational adaptation, the results are more in line with the theory. Some discrepancies are found, however, suggesting useful issues and hypotheses for future research.
The effects of board size and diversity on strategic change
Authors: Goodstein Jerry , Gautam Kanak , Boeker Warren 
Published: May 2007

AbstractThis study examines an important potential conflict between the institutional, governance, and strategic functions of boards. We specifically test how higher levels of board size and diversity, traditionally associated with optimal institutional and governance performance of boards, affect the boards ability to initiate strategic changes during periods of environmental turbulence. Our findings suggest that board diversity, in particular, may be a significant constraint on strategic change.
Exploring strategic judgment: Methods for testing the assumptions of prescriptive contingency theories
Authors: Priem Richard L. , Harrison David A. 
Published: May 2007

AbstractSeveral generally untested assumptions about strategic judgment and choice exist in strategic management theories. Direct examination of these assumptions is necessary for sound theory building, and for sound prescription based on current theory. This paper presents techniques for eliciting and analyzing the strategic judgments of strategy makers, and discusses the potential of these techniques for increasing the internal validity and practical relevance of strategy research. We argue that incorporating managerial judgment more directly into the mainstream of strategy research will lead to both new theory and the extension of existing theory.
Board control and ceo compensation
Authors: Boyd Brian K. 
Published: May 2007

AbstractThe board of directors has been identified as a key internal control mechanism for setting CEO compensation. Theory suggests that CEOs will attempt to circumvent board control in an effort to maximize salary. This hypothesis was tested using a sample of 193 firms in a cross‐section of industries. Corporate governance literature was reviewed to develop a multiple indicator measure of board control. Although, as hypothesized, CEO salaries were greater in firms with lower levels of control, CEO compensation was not significantly related to firm size or profitability.
Regulatory change, constraints on adaptation and organizational failure: An empirical analysis of acute care hospitals
Authors: Gruca Thomas S. , Nath Deepika 
Published: May 2007

AbstractThe advent of the Medicare prospective payment system (PPS) in 1983 affected individual general hospitals in varying degrees based on their revenue and cost structures. These same factors served to constrain a hospital's ability to adapt to the post‐PPS environment. The three constraints are based on the proportion of the hospital's private‐pay (non‐Medicare/Medicaid) patients, economies of scale and economies of scope among medical services. We test the relationship between these constraints and organizational failure in the Chicago area. Hospitals selected out of the new environment (1986‐91) were at a significant relative disadvantage with respect to the proposed constraints.
Transformative capacity: Continual structuring by intertemporal technology transfer
Authors: Garud Raghu , Nayyar Praveen R. 
Published: May 2007

AbstractThe ability to maintain internally developed technology over time is important for corporate vitality. We label this ability transformative capacity and suggest that it depends on how well a firm accomplishes three tasks, These tasks are: the choice of technologies, their maintenance over time, and their reactivation and synthesis when required. To establish the need for transformative capacity, we first discuss time lags in the development of technologies and markets to suggest that not all technologies developed by firms can be utilized immediately. We then examine dimensions of technological knowledge that affect knowledge transfer over time. Next, we build on the resource‐based view of the firm to discuss how firms can create transformative capacity. The concluding discussion focuses on the implications of transformative capacity for the analysis and management of technological investments as a way to maintain corporate vitality.
Retrenchment: Cause of turnaround or consequence of decline?
Authors: Barker Vincent L. , Mone Mark A. 
Published: May 2007

AbstractIn a recent investigation of the turnaround attempts of 32 U.S. textile firms, Robbins and Pearce (1992) concluded that retrenchment is an integral component of successful recovery from decline. In this note we critique, replicate and provide an alternative explanation for their findings using data from the same sample of firms attempting turnarounds. Based on our analyses, we find that little evidence exists to support the assertion that retrenchment is integral to turnaround. We conclude by offering several recommendations for turnaround researchers.
Cost reductions or reputation enhancement as motives for mergers: The logic of multihospital systems
Authors: Dranove David , Shanley Mark 
Published: May 2007

AbstractThis paper examines two motives for the formation of local multihospital systems: cost reduction and reputation enhancement. Systems may reduce costs by eliminating redundancies and reducing administrative costs. Integration may also lower costs for consumers seeking consistently high qualiiy. We hypothesize that if systems achieve either cost or reputation benefits, then member hospitals will ‘look’ different from random collections of hospitals. We find that local systems do not appear to have lower costs but do appear to enjoy reputation benefits over nonsystem hospitals. Our findings challenge the assumptions behind popular health reform initiatives.
Boards of directors and substitution effects of alternative governance mechanisms
Authors: Rediker Kenneth J. , Seth Anju 
Published: May 2007

AbstractResearch on the determinants and effects of various governance mechanisms typically assumes that these mechanisms operate independently. However, since a variety of mechanisms are used to achieve alignment of the interests of shareholders and managers, we propose that the level of a particular mechanism should be influenced by the levels of other mechanisms which simultaneously operate in the firm. We examine the substitution effects between alternative internal governance mechanisms for a sample of 81 bank holding companies in the postderegulation period. Specifically, we consider the relationship between monitoring by outside directors and the following mechanisms: monitoring by large outside shareholders, mutual monitoring by inside directors, and incentive effects of shareholdings by managers. Our results provide evidence consistent with the substitution hypothesis. We examine the implications of our findings for future research in the area of corporate governance.