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Showing papers in "Strategic Management Journal in 1998"


Journal ArticleDOI
TL;DR: In this article, the authors introduce a social network perspective to the study of strategic alliances and identify five key issues for the formation of alliances, the choice of governance structure, the dynamic evolution of alliances and the performance of alliances.
Abstract: This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research. © 1998 John Wiley & Sons, Ltd.

4,694 citations


Journal ArticleDOI
TL;DR: In this article, the authors reconceptualize the firm-level construct absorptive capacity as a learning dyad-level measure, relative absorptive capacities, and test the model using a sample of pharmaceutical-biotechnology R&D alliances.
Abstract: Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the firm-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical–biotechnology R&D alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. © 1998 John Wiley & Sons, Ltd.

4,627 citations


Journal ArticleDOI
TL;DR: In this paper, the authors present the results of a study conducted in two phases within a single industry context, where comparative case studies to ground the applicability of the resource-based view of the firm within the domain of environmental responsiveness.
Abstract: This article presents the results of a study conducted in two phases within a single industry context. The first phase involved comparative case studies to ground the applicability of the resource-based view of the firm within the domain of environmental responsiveness. The second phase involved testing the relationships observed during the case studies through a mail survey. It was found that strategies of proactive responsiveness to the uncertainties inherent at the interface between the business and ecological issues were associated with the emergence of unique organizational capabilities. These capabilities, in turn, were seen to have implications for firm competitiveness. © 1998 John Wiley & Sons, Ltd.

2,332 citations


Journal ArticleDOI
TL;DR: The authors provide meta-analyses of 54 empirical studies of board composition (159 samples, n = 40,160) and 31 empirical studies on board leadership structure and their relationship to firm financial performance.
Abstract: Careful review of extant research addressing the relationships between board composition, board leadership structure, and firm financial performance demonstrates little consistency in results. In general, neither board composition nor board leadership structure has been consistently linked to firm financial performance. In response to these findings, we provide metaanalyses of 54 empirical studies of board composition (159 samples, n = 40,160) and 31 empirical studies of board leadership structure (69 samples, n= 12,915) and their relationships to firm financial performance. These—and moderator analyses relying on firm size, the nature of the financial performance indicator, and various operationalizations of board composition— provide little evidence of systematic governance structure/financial performance relationships. © 1998 John Wiley & Sons, Ltd.

2,289 citations


Journal ArticleDOI
TL;DR: In this article, the tension between cooperation and competition affects the dynamics of learning alliances, and the competitive aspects of alliances are most severe when a firm's ratio of private to common benefits is high.
Abstract: We show how the tension between cooperation and competition affects the dynamics of learning alliances. 'Private benefits' and 'common benefits' differ in the incentives that they create for investment in learning. The competitive aspects of alliances are most severe when a firm's ratio of private to common benefits is high. We introduce a measure, 'relative scope' of a firm in an alliance, to show that the opportunity set of each firm outside an alliance crucially impacts its behavior within the alliance. Finally, we suggest why firms might deviate from the theoretically optimal behavior patterns. ? 1998 John Wiley & Sons, Ltd.

1,768 citations


Journal ArticleDOI
TL;DR: In this paper, the authors explore the idea that the value chain, the value shop, and the value network are three distinct generic value configuration models required to understand and analyze firm-level value creation logic across a broad range of industries and firms.
Abstract: Building on Thompson’s (1967) typology of long-linked, intensive, and mediating technologies, this paper explores the idea that the value chain, the value shop, and the value network are three distinct generic value configuration models required to understand and analyze firm-level value creation logic across a broad range of industries and firms. While the long-linked technology delivers value by transforming inputs into products, the intensive technology delivers value by resolving unique customer problems, and the mediating technology delivers value by enabling direct and indirect exchanges between customers. With the identification of alternative value creation technologies, value chain analysis is both sharpened and generalized into what we propose as a value configuration analysis approach to the diagnosis of competitive advantage. With the long-linked technology and the corresponding value chain configuration model as benchmark, the paper reviews the distinctive logic and develops models of the value shop and the value network in terms of primary activity categories, drivers of cost and value, and strategic positioning options. © 1998 John Wiley & Sons, Ltd.

1,623 citations


Journal ArticleDOI
D. Charles Galunic1, Simon Rodan1
TL;DR: In this paper, the authors explore the notion of resource recombinations within the firm and examine the antecedents necessary for such innovation to occur, and in particular the nature of knowledge in the firm.
Abstract: Building on the resource-based view of the firm, this paper explores the notion of ‘resource recombinations’ within the firm. We suggest such recombinations can occur when competencies within the firm (which are interpreted as organized clusters of firm resources) either combine to synthesize novel competencies (synthesis-based recombinations) or experience a reconfiguration or relinking with other competencies (reconfiguration-based recombinations). Central to this paper is an examination of the antecedents necessary for such innovation to occur, and in particular the nature of knowledge in the firm. We argue that several characteristics of knowledge (tacitness, context specificity, dispersion) and its social organization (the way competencies come to be formed and institutionalized) will have important consequences on the likelihoods of resource recombinations. Our paper develops a model of resource recombination likelihoods and propositions. © 1998 John Wiley & Sons, Ltd.

1,426 citations


Journal ArticleDOI
TL;DR: The first-mover-advantages (FMA) concept was introduced in the 1990s by as mentioned in this paper and has been widely used in strategic management, marketing, and economics.
Abstract: This article reflects upon and updates our prize-winning paper, ‘First-mover advantages,’ which was published in SMJ 10 years ago. We discuss the evolution of the literature over the past decade and suggest opportunities for continuing research. In particular, we see benefits from linking empirical findings on first-mover advantages with the complementary stream of research on the resource-based view of the firm.© 1998 John Wiley & Sons, Ltd. We were honored to receive the 1996 prize of the Strategic Management Society (in cooperation with John Wiley & Sons) for our 1988 paper, ‘First-Mover Advantages.’ It is customary for the award recipients to write a brief article reflecting on the original work. As our paper aimed to provide a unified conceptual framework and critical assessment of the literature, we have chosen to write a somewhat longer piece to update our survey and suggest opportunities for continuing research. Our prize-winning paper began as a series of healthy disagreements between the authors, which took place over brown bag lunches during the summer of 1986. ‘First-mover advantage’ (FMA) was a term widely invoked in strategic management, marketing, and economics. We found, however, that our interpretations of the concept differed greatly. We wondered if our disagreements stemmed from the contrast in our disciplinary backgrounds, or if they reflected a broader lack of consensus among business scholars. During a sabbatical at Northwestern University,

1,229 citations


Journal ArticleDOI
TL;DR: In this article, the authors distinguish between two forms of "customer orientation" that are frequently confused: a customer-led philosophy and a market-oriented philosophy, which goes beyond satisfying expressed needs to understanding and satisfying customers' latent needs and is longer term in focus and proactive in nature.
Abstract: Christensen and Bower (1996) report the results of a study of how customer power contributes to the failure of leading firms during a period of industry discontinuity. They conclude that developing a customer orientation appears not to be wise advice under these conditions. However, this conclusion is contradicted by long-standing theory and recent research in marketing. In this commentary we distinguish between two forms of ‘customer orientation’ that are frequently confused. The first, a customer-led philosophy, is primarily concerned with satisfying customers' expressed needs, and is typically short term in focus and reactive in nature. The second, a market-oriented philosophy, goes beyond satisfying expressed needs to understanding and satisfying customers' latent needs and, thus, is longer term in focus and proactive in nature. Based on theory and substantial evidence, the advice to become market-oriented appears sound regardless of the market conditions a business faces. © 1998 John Wiley & Sons, Ltd.

1,118 citations


Journal ArticleDOI
TL;DR: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages.
Abstract: A central theme of much of the recent literature on the strategy of the multinational corporation (MNC) is the increasingly important role played by subsidiary companies as contributors to the development of firm-specific advantages. Traditional academic models that viewed subsidiaries as either ‘market access’ providers or as recipients of the parent company’s technology transfers (Vernon, 1966) gave way in the 1980s to richer conceptualizations in which subsidiaries tapped into leading-edge ideas, undertook important research and development work, and became active participants in the formulation and implementation of strategy (Bartlett and Ghoshal, 1986; Hedlund, 1986; Gupta and Govindarajan, 1994). The generation of firm-specific advantages, correspondingly, shifted from being the sole concern of the parent company to a collective responsibility for the corporate network.

973 citations


Journal ArticleDOI
TL;DR: In this article, the authors examine the degree of support for different explanations of boundary choice in information services and conclude that the integration of transaction cost, knowledge-based, and measurement reasoning is likely to be complex.
Abstract: Firms boundary choices have undergone careful examination in recent years, particularly in information services. While transaction cost economics provides a widely tested explanation for boundary choice, more recent theoretical work advances competing knowledge-based and measurement cost explanations. Similar to transaction cost economics, these theories examine the impact of exchange attributes on the performance of markets and hierarchies as institutions of governance. These theories, however, offer alternative attributes to those suggested by transaction cost economics or offer alternative mechanisms through which similar attributes influence make–buy choices. Traditional empirical specifications of make–buy models are unable to comparatively test among these alternative theories. By developing and testing a model of comparative institutional performance rather than institutional choice, we examine the degree of support for these competing explanations of boundary choice. Hypotheses are tested using data on the governance of nine information services at 152 companies. Our results suggest that a theory of the firm and a theory of boundary choice is likely to be complex, requiring integration of transaction cost, knowledge-based, and measurement reasoning. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, a resource-based view of the interaction between firm-level competitiveness and environmental regulations, including the conditions for the use of green capabilities, is developed, and the green capabilities of multinational enterprises within a standard international business model, using firm-specific advantages (FSAs) and country specific advantages (CSAs).
Abstract: An emerging subfield of strategic management is that dealing with the natural environment as it affects corporate strategy. To analyze this we organize the literature on environmental regulations and corporate strategy into a new managerial framework. Next we develop a resource-based view of the interaction between firm-level competitiveness and environmental regulations, including the conditions for the use of green capabilities. Finally, we analyze the green capabilities of multinational enterprises within a standard international business model, using firm-specific advantages (FSAs) and country-specific advantages (CSAs). We then use this FSA/CSA configuration to explore hypotheses on environmental regulations, competitiveness, and corporate strategy. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the relationship between the process of strategic decision-making and management and contextual factors and found that decision-specific characteristics appear to have the most important influence on the strategic decision making process.
Abstract: This paper investigates the relationship between the process of strategic decision-making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial reporting, rule formalization, hierarchical decentralization, lateral communication, politicization, problem-solving dissension. Second, these process dimensions are related to (1) decision-specific characteristics, both perceived characteristics and objective typologies of strategic decisions, (2) top management characteristics, and (3) contextual factors referring to external corporate environment and internal firm characteristics. Overall, the results support the view that strategic decision processes are shaped by a multiplicity of factors, in all these categories. But the most striking finding is that decision-specific characteristics appear to have the most important influence on the strategic decision-making process, as decisions with different decision-specific characteristics are handled through different processes. The evident dominance of decision-specific characteristics over management and contextual factors enriches the traditional ‘external control’ vs. ‘strategic choice’ debate in the area of strategic management. An interpretation of results is attempted and policy implications are derived. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: This article examined the impact of diversity among executives on comprehensiveness and extensiveness of strategic decision-making and strategic planning, and found that diversity inhibits rather than promotes comprehensive examinations of current opportunities and threats, and inhibit rather than promote extensive long-range planning.
Abstract: Diversity among executives is widely assumed to influence a firm's strategic decision processes, but empirical research on this linkage has been virtually nonexistent. To partially fill the void, we drew upon three separate studies to examine the impact of executive diversity on comprehensiveness of strategic decision-making and extensiveness of strategic planning. Contrary to common assumptions of researchers and executives, our results suggest that executive diversity inhibits rather than promotes comprehensive examinations of current opportunities and threats, and inhibits rather than promotes extensive long-range planning. In light of the cumulative research showing that firm performance is related to both comprehensiveness and extensiveness, our results provide evidence for an indirect connection between executive diversity and firm performance. ? 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors characterize both minority direct investments and joint ventures as options to defer either internal development or acquisition of a target firm, and find strong support for the theoretical model.
Abstract: This study elaborates upon the motives for initiating equity-based collaborations vs. acquisition of another firm already having a desired technology. We characterize both minority direct investments and joint ventures as options to defer either internal development or acquisition of a target firm. In domains where learning about growth opportunities dominates investment activity, this incremental mode of governance economizes on the cost of committing resources to a technology with an uncertain value. Using a sample of 402 transactions in the biotechnology industry, we find strong support for the theoretical model. The findings suggest that the cost of commitment in the face of technological uncertainty may offset the administrative benefits of hierarchical governance. ? 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors examine the patterns of communication and control in international companies and find that local and international adaptors both focus their communication on their internal corporate network; and international creators have strong internally and externally oriented networks of relationships.
Abstract: This paper addresses issues of global innovation in multinational corporations by examining the patterns of communication and control in international RD (2) local and international adaptors both focus their communication on their internal corporate network; and (3) international creators have strong internally and externally oriented networks of relationships. The implications for the management of global innovation are discussed. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources is defined, and it is shown that the magnitude of redeployment of each type of resource increases with the asymmetry of the merging businesses' relative strength on the resource dimension.
Abstract: This paper studies redeployment of resources between target and acquiring businesses following horizontal acquisitions. The analysis draws from perspectives that emphasize the strategic importance of resources that are subject to market failure. We define a five-part typology of R&D, manufacturing, marketing, managerial, and financial resources. We show that targets and acquirers frequently redeploy resources following horizontal acquisitions, especially resources that frequently face market failure. We then show that the magnitude of redeployment of each type of resource increases with the asymmetry of the merging businesses' relative strength on the resource dimension. The research stresses evolutionary perspectives on business organizations that emphasize the importance of organizational differences in competitive markets. The central premise of our research is that the market for businesses is often more robust than the market for resources

Journal ArticleDOI
W. Chan Kim1, Renée Mauborgne1
TL;DR: In this article, Li et al. argue that when people feel their strategic decision-making processes are fair, they display a high level of voluntary cooperation based on their attitudes of trust and commitment, while people feel that the processes are unfair, they refuse to cooperate by hoarding ideas and dragging their feet in conceiving and executing strategic decisions.
Abstract: Collective knowledge building is a key strategic task for firms' success today. But creating and sharing knowledge are intangible activities that can neither be supervised nor forced out of people. They happen only when individuals cooperate voluntarily. A key challenge facing strategic management is obtaining the voluntary cooperation of individuals as firms formulate and implement their strategic decisions. This essay draws on the rich body of procedural justice research to address this critical issue. We argue that when people feel their strategic decision-making processes are fair, they display a high level of voluntary cooperation based on their attitudes of trust and commitment. Conversely, when people feel that the processes are unfair, they refuse to cooperate by hoarding ideas and dragging their feet in conceiving and executing strategic decisions. We further develop this argument into team performance wherein the attitudinal and behavioral effects of procedural justice are corroborated with theory and initial evidence of their bottom-line performance consequences. We then build a theory, which we call intellectual and emotional recognition theory, that can explain why procedural justice invokes the side of human behavior that goes beyond outcome-driven self-interests and that is so critical in the knowledge economy. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: The authors empirically examined the ownership concentration-performance relationship across the nations of Canada, France, Germany, the United Kingdom, and the United States and found that important and statistically significant differences do in fact exist across the countries studied.
Abstract: Despite the growing recognition in the corporate governance literature that the relationship between ownership concentration and profitability is context dependent, this issue has not yet been subjected to direct empirical investigation using a single cross-national sample. This study empirically examines the ownership concentration‐performance relationship across the nations of Canada, France, Germany, the United Kingdom, and the United States. Essentially, we argue that the correlation (if any) between ownership concentration and firm profitability differs across countries in a systematic way determined by the national system of corporate governance. Results indicate that important and statistically significant differences do in fact exist across the countries studied. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors developed a framework to understand how managers can shape networks and develop a framework which explains how industry networks evolve over time and in response to specific events, and validate their hypotheses with longitudinal data on the strategic alliance network in the global steel industry.
Abstract: Interfirm relationship networks are strategic resources that can potentially be shaped by managerial action. As a first step towards understanding how managers can shape networks, we develop a framework which explains how industry networks evolve over time and in response to specific events. Our main thesis is that industry events may be either structure-reinforcing or structure-loosening, and that their potential structural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the global steel industry.

Journal ArticleDOI
TL;DR: In this article, a variance component analysis of 264 single-business companies from 69 industries using 5 and 15-year periods suggests that firm effects are more important than industry effects on firm performance but not on core strategies such as technology and marketing.
Abstract: This study brings out the complementarities between resource-based and industrial organization schools within strategic management through an empirical examination of firm and industry effects. A variance component analysis of 264 single-business companies from 69 industries using 5- and 15-year periods suggests that firm effects are more important than industry effects on firm performance, but not on core strategies such as technology and marketing. The findings also point to the need to study core strategies at lower levels of aggregation to understand the sources of competitive advantage. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors assess the factors explaining whether firms will engage in such technology alliances or utilize the more traditional mode of internal R&D, and find that firms which pursue technology alliances are likely to have less commitment to product category-specific assets, to face higher technological uncertainty, to be more capable at measuring innovation performance, to have more successful technology alliance experiences, and to compete in lower growth product categories.
Abstract: Technology alliances have emerged in the past decade as a significant mode for the development of innovation. The present research assesses the factors explaining whether firms will engage in such technology alliances or utilize the more traditional mode of internal R&D. The hypotheses stem from a transaction cost conceptualization. Results suggest that firms which pursue technology alliances are likely to have less commitment to product category-specific assets, to face higher technological uncertainty, to be more capable at measuring innovation performance, to have more successful technology alliance experiences, and to compete in lower growth product categories. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: It is found that primary and competitive uncertainty were negatively associated with the decision to vertically integrate, but supplier uncertainty was positively related to the vertical integration decision.
Abstract: Previous studies examining the relationship between uncertainty and vertical integration have produced a conflicting set of results. To clarify this puzzle we drew on the literature to conceptualize three distinct forms of uncertainty—primary, competitive, and supplier—and hypothesized that each had a different effect on vertical integration. The hypotheses were tested using experimental data collected from 308 managers. Consistent with our prediction of differential effects, we found that primary and competitive uncertainty were negatively associated with the decision to vertically integrate, but supplier uncertainty was positively related to the vertical integration decision. No interaction effects were found. Implications for theory and research are suggested. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
Richard Makadok1
TL;DR: In this paper, the authors examined whether first-mover-and early-move advantages can be sustained in an industry where the barriers to entry are generally low and new product innovations can be easily imitated.
Abstract: This study examines whether first-mover and early-mover advantages can be sustained in an industry where the barriers to entry are generally low and new product innovations can be easily imitated—namely, the money market mutual fund industry Using a simultaneous-equation supply-and-demand model of panel data from a variety of money market fund product categories, the study finds that first-movers and early-movers enjoy both a highly sustainable pricing advantage and a moderately sustainable market share advantage These counterintuitive results are interpreted in terms of the structural characteristics of demand in the industry Implications of these results for the ongoing debate between the ‘sustainability’ and ‘hypercompetition’ perspectives are discussed © 1998 John Wiley & Sons, Ltd

Journal ArticleDOI
TL;DR: The authors performed a comparative analysis of the impact of industry structural characteristics on the formation of large and small businesses in a large sample of U.S. manufacturing industries from 1977 to 1987.
Abstract: Despite growing recognition of some strategic advantages held by small firms, little comparative research has been performed on the advantages and disadvantages accruing to firm size. In order to delineate the differential responses of small and large businesses to their environmental context, we perform a comparative analysis of the impact of industry structural characteristics on the formation of large and small businesses in a large sample of U.S. manufacturing industries from 1977 to 1987. The results suggest that small businesses possess certain resources that allow them to overcome some barriers which create greater difficulties for their larger counterparts, as well as allow small businesses to exploit certain industry opportunities more readily than larger ones. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors show that recently innovated market positions are mimetically adopted by organizations that can easily observe previous adoptions and see them as relevant to their market situations, increasing the market differentiation.
Abstract: Managers planning to abandon a market position need to find a promising alternative, and face a choice of inventing a new market position or entering an existing one. The great uncertainty on the consequences of different actions leads them to rely on other organizations for information on how to compete, making adoption of existing market positions likely. Their wish to avoid direct rivalry and maximize growth leads them to seek out information on new market positions with few incumbents. As a result, recently innovated market positions are mimetically adopted by organizations that can easily observe previous adoptions and see them as relevant to their market situations, increasing the market differentiation. This theory is tested and supported by analysis of the spread of new radio formats in the United States. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors develop hypotheses regarding the association between ownership structure, board vigilance, corporate strategy, and corporate performance from management theory and test them using Amihud and Lev's data from the 1960s and new data from 1980s.
Abstract: Amihud and Lev (1981) are widely cited as providing evidence that managers, unless closely monitored by large block shareholders, will attempt to reduce their employment risk through unrelated mergers and diversification. These corporate strategies, however, may not be in shareholders' interests. Reconsidering the agency assumptions underlying Amihud and Lev's study and the methodology they used, we develop hypotheses regarding the association between ownership structure, board vigilance, corporate strategy, and corporate performance from management theory and test them using Amihud and Lev's data from the 1960s and new data from the 1980s. Neither study supports the conclusions of Amihud and Lev, nor the agency theory belief that monitoring efforts by principals affect the strategic behaviors of agents or the performance of firms that they manage. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors examined the relationship between industry structure and the characteristics of CEO successors and found that firms that match CEO successor characteristics to industry structure realize better post-succession performance than those with lower levels of fit.
Abstract: Based on 134 CEO succession events in nondiversified, manufacturing firms, this study examines the relationships between industry structure and the characteristics of CEO successors. The paper also explores the performance implications of the fit between industry structure and CEO successors. Results indicate that industry structure plays an important, but not pervasive, role in explaining variations in newly selected CEOs. Specifically, the higher the level of industry product differentiation, the lower the organizational tenure, the higher the educational level and the greater the likelihood of a nonthroughput background in the CEO successor; the higher the industry growth rate, the lower the organizational tenure and age of the CEO successor. However, findings provide very limited support for the normative view that firms which match CEO successor characteristics to industry structure realize better postsuccession performance than those with lower levels of fit. © 1998 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this paper, the authors test the contention that top executives' personal experiences (age, educational background, and work experience), their perceptions of their firms' attitudes toward technology and risk, and their perceptions regarding their past success with collaborative technological development influence their cognitive assessments of potential technological alliances.
Abstract: Researchers have only begun to provide explanations of how top executives' experiences and perceptions influence organizational decisions. Drawing from a broad theoretical base, this study tests the contention that top executives' personal experiences (age, educational background, and work experience), their perceptions of their firms' attitudes toward technology and risk, and their perceptions regarding their firms' past success with collaborative technological development influence their cognitive assessments of potential technological alliances. Results from the study suggest that top executives with a technical education place more weight on the opportunities provided by the alliance than those with other types of education. Moreover, executives from firms that are perceived to emphasize technology and to have had success with technological alliances in the past tend to focus more on the opportunities provided by the alliance and less on the riskiness of the venture. © 1998 John Wiley & Sons, Ltd

Journal ArticleDOI
TL;DR: In this article, the authors examined variation in top executives' environmental perceptions within firms and within industries and investigated how industry and organizational membership affect top executives’ perceptions of five environmental attributes.
Abstract: This study examines variation in top executives’ environmental perceptions within firms and within industries. More specifically, we investigate how industry and organizational membership affect top executives’ perceptions of five environmental attributes. Results indicate that significant homogeneity of perceptions exists within firms and also within industries. Approximately 40 percent of the variance in individual top-level executives’ perceptions of aspects of their respective organization’s environment is explained by their organizational and industry membership. Implications of the findings for strategic management and organization theory and for future research are presented. © 1998 John Wiley & Sons, Ltd. Commonality of views about a firm’s environment among a firm’s top managers is frequently discussed, but there is little empirical evidence to validate the notion. We do not know whether homogeneity of perceptions within top management teams (TMTs) is more imaginable than real—an assumed executive team property corresponding to what ‘common sense’ says should be the case. Further, if there is within-firm commonality of views concerning the environment, we do not know whether this might not actually be an industry effect. The purpose of the research reported here is to assess the degree of homogeneity in executives’ perceptions within firms and within industries and to compare organizational vs. industry membership as explanations of the relative proportion of agreement about organizational environments. One of the most compelling reasons to examine the homogeneity of top managers’ environmental perceptions within firms and within industries