Showing papers in "Strategic Management Journal in 2008"
TL;DR: Investigating the methodological sophistication of case studies as a tool for generating and testing theory by analyzing case studies published during the period 1995-2000 in 10 influential management journals finds that case studies emphasized external validity at the expense of the more fundamental quality measures, internal and construct validity.
Abstract: This article investigates the methodological sophistication of case studies as a tool for generating and testing theory by analyzing case studies published during the period 1995-2000 in 10 influential management journals We find that case studies emphasized external validity at the expense of the two more fundamental quality measures, internal and construct validity Comparing case studies published in the three highest-ranking journals with the other seven, we reveal strategies that may be useful for authors wishing to conduct methodologically rigorous case study research
1,878 citations
TL;DR: In this paper, the authors examine the fit between a firm's product market strategy and its business model and develop a formal model in order to analyze the contingent effects of product market strategies and business model choices on firm performance.
Abstract: We examine the fit between a firm's product market strategy and its business model. We develop a formal model in order to analyze the contingent effects of product market strategy and business model choices on firm performance. We investigate a unique, manually collected dataset, and find that novelty-centered business models—coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry—can enhance firm performance. Our data suggest that business model and product market strategy are complements, not substitutes. Copyright © 2007 John Wiley & Sons, Ltd.
1,491 citations
TL;DR: This article explored the relationship between corporate social performance (CSP) and corporate financial performance within the context of a specific component of CSP: corporate charitable giving and found that firms with both unusually high and low CSP have higher financial performance than other firms.
Abstract: This study explores the relationship between corporate social performance (CSP) and corporate financial performance (CFP) within the context of a specific component of CSP: corporate charitable giving. A model of the determinants of the extent of corporate charitable giving is estimated and used as the basis of a classification that groups firms according to the difference between their actual and their predicted intensity of gift giving. The financial performance attributes of the classification are explored. We found that firms with both unusually high and low CSP have higher financial performance than other firms, with unusually poor social performers doing best in the short run and unusually good social performers doing best over longer time horizons. Copyright © 2008 John Wiley & Sons, Ltd. ABSTRACT FROM AUTHOR
1,077 citations
TL;DR: This study examines the possibility that corporate social performance enhances financial performance by allowing the firm to differentiate, and that this effect may be moderated both by innovation, which also drives firm differentiation, and the level of differentiation in the industry.
Abstract: The impact of corporate social performance on firm financial performance has been examined previously with mixed results. This study examines the possibility that corporate social performance enhances financial performance by allowing the firm to differentiate, and that this effect may be moderated both by innovation, which also drives firm differentiation, and the level of differentiation in the industry. Hypotheses concerning both direct and moderating effects are developed and tested using secondary data. Our results support both innovation and the level of differentiation in the industry as moderators for a positive relationship between corporate social performance and financial performance: corporate social performance most strongly affects performance in low-innovation firms and in industries with little differentiation. Copyright © 2008 John Wiley & Sons, Ltd.
888 citations
TL;DR: The authors empirically examined the relationships between value, rareness, competitive advantage, and performance and found that value and rareness are related to competitive advantage and competitive advantage is related to performance, and that competitive advantage mediates the rareness-performance relationship.
Abstract: The resource-based view of the firm (RBV) hypothesizes that the exploitation of valuable, rare resources and capabilities contributes to a firm's competitive advantage, which in turn contributes to its performance. Despite this notion, few empirical studies test these hypotheses at the conceptual level. In response to this gap, this study empirically examines the relationships between value, rareness, competitive advantage, and performance. The results suggest that value and rareness are related to competitive advantage, that competitive advantage is related to performance, and that competitive advantage mediates the rareness-performance relationship. These findings have important academic and practitioner implications which are then discussed. Copyright © 2008 John Wiley & Sons, Ltd.
885 citations
TL;DR: In this paper, a study of 267 U.S. firms showed that improved environmental risk management is associated with a lower cost of capital and higher tax benefits associated with the ability to add debt.
Abstract: Our study of 267 U.S. firms shows that improved environmental risk management is associated with a lower cost of capital. Our findings provide an alternative perspective on the environmental-economic performance relationship, which has been dominated by the view that improvements in economic performance stem from better resource utilization. Firms also benefit from improved environmental risk management through a reduction in their cost of equity capital, a shift from equity to debt financing, and higher tax benefits associated with the ability to add debt. These findings help build better theory regarding the outcomes of strategic improvements in environmental risk management. Copyright © 2008 John Wiley & Sons, Ltd.
784 citations
TL;DR: The authors argue that external constituents, including customers, regulators, legislators, local communities, and environmental activist organizations, who interact with influential corporate departments are more likely to affect facility managers' decisions and that managers of facilities that are subjected to comparable institutional pressures adopt distinct sets of management practices that appease different external constituents.
Abstract: This article combines new and old institutionalism to explain differences in organizational strategies. We propose that differences in the influence of corporate departments lead their facilities to prioritize different external pressures and thus adopt different management practices. Specifically, we argue that external constituents—including customers, regulators, legislators, local communities, and environmental activist organizations—who interact with influential corporate departments are more likely to affect facility managers' decisions. As a result, managers of facilities that are subjected to comparable institutional pressures adopt distinct sets of management practices that appease different external constituents. We test our framework in the context of the adoption of environmental management practices using an original survey and archival data obtained for nearly 500 facilities. We find support for these hypotheses. Copyright © 2008 John Wiley & Sons, Ltd.
767 citations
TL;DR: In this article, the authors meta-analyze 125 studies of resource-based theory (RBT) that collectively encompass over 29,000 organizations and found that the effect size of the strategic resources-performance relationship is rc = 0.22.
Abstract: Resource-based theory (RBT) has emerged as a key perspective guiding inquiry into the determinants of organizational performance. Since the early 1990s, numerous studies have examined RBT's assertion that the extent to which organizations possess strategic resources is positively related to performance. Although many studies appear to support this assertion, there is no consensus regarding how strongly strategic resources relate to performance. To help resolve this issue, we meta-analyze 125 studies of RBT that collectively encompass over 29,000 organizations. Our conservative estimate is that the effect size of the strategic resources–performance relationship is rc = 0.22. Moderator tests suggest that the resources-performance link is stronger (1) when resources meet the criteria laid out in RBT and (2) for those performance measures that are not affected by potential value appropriation. When resources meet RBT's criteria and when performance measures are not affected by potential appropriation, the strength of the relationship grows to rc = 0.29. This suggests that the identification, development, and distribution of value from strategic resources should be a primary consideration for scholars, managers, and shareholders. Copyright © 2008 John Wiley & Sons, Ltd.
749 citations
TL;DR: This article examined three sources of heterogeneity that may condition the value of ties: firm ownership (foreign vs. domestic), competition, and structural uncertainty, and found that managerial ties are less effective for fostering performance when competition becomes more intense.
Abstract: While most advocate that foreign firms should utilize managerial ties to conduct business in China, recent literature cautions that such ties may offer only conditional value. This study examines three sources of heterogeneity that may condition the value of ties: firm ownership (foreign vs. domestic), competition, and structural uncertainty. Results from a survey of 280 firms in China indicate that though foreign and domestic firms utilize ties at a similar level, their performance gains from tie utilization differ. Managerial ties have a monotonic, positive effect on performance for domestic firms, whereas the effect is curvilinear (i.e., inverted U-shaped) for foreign firms. Therefore, compared with domestic firms, foreign firms have a competitive disadvantage from tie utilization. Furthermore, managerial ties are less effective for fostering performance when competition becomes more intense. However, ties lead to higher levels of firm performance when structural uncertainty increases. Overall, these results support the contingency view of managerial ties and caution companies about the unconditional use of ties as the market becomes more heterogeneous. Copyright © 2008 John Wiley & Sons, Ltd.
667 citations
TL;DR: Willingness to cannibalize, constructive conflict, scanning, and slack have contemporaneous effects, while scanning also has a lagged effect and slack has a U‐shaped lagging effect on marketing and R&D second‐order competences.
Abstract: According to dynamic capability theory, some firms are better able than others at altering their resource base by adding, reconfiguring, and deleting resources or competences. This study focuses on the first form of dynamic capability: the competence to build new competences. Two such second-order competences are studied: the ability to explore new markets and the ability to explore new technologies—referred to as marketing and R&D second-order competences, respectively. Using two wave panel data on a sample of U.S. public manufacturing firms, five organizational antecedents of these second-order competences are examined: willingness to cannibalize, constructive conflict, tolerance for failure, environmental scanning, and resource slack. Willingness to cannibalize, constructive conflict, scanning, and slack have contemporaneous effects, while scanning also has a lagged effect and slack has a U-shaped lagged effect on marketing and R&D second-order competences. Copyright © 2008 John Wiley & Sons, Ltd.
645 citations
TL;DR: In this article, the authors examine the underexplored tensions and complementarities between bridging ties and strong ties in innovation-seeking alliances and propose that their effects and complementarity influence alliance ambidexterity because they facilitate knowledge integration at the project level.
Abstract: This study examines the underexplored tensions and complementarities between bridging ties and strong ties in innovation-seeking alliances. Bridging ties span structural holes to provide innovation potential but lack integration capacity, and strong ties provide integration capacity but lack innovation potential. We theoretically develop the idea that—notwithstanding their tensions—strong ties complement bridging ties in enhancing alliance ambidexterity at the project level. While bridging ties provide access to diverse, structural hole-spanning perspectives and capabilities, strong ties help integrate them to realize an innovation. We also propose that their effects and complementarities influence alliance ambidexterity because they facilitate knowledge integration at the project level. Tests using data on 42 innovation-seeking project alliances involving a major American services conglomerate and its alliance partners support the majority of the proposed ideas. Implications for interfirm network configuration, strategic alliances, and the broader strategy literature are also discussed. Copyright © 2007 John Wiley & Sons, Ltd.
TL;DR: This paper traces the evolution of the intellectual structure of the strategic management field during the period 1980–2000 by using authors as the units of analysis and incorporating all the citations that are included in the Science Citation Index and the Social Science Citation index.
Abstract: This paper complements a recent study by Ramos-Rodriguez and Ruiz-Navarro (2004) that investigated the intellectual structure of the strategic management field through co-citation analysis. By using authors as the units of analysis and incorporating all the citations that are included in the Science Citation Index and the Social Science Citation Index, we trace the evolution of the intellectual structure of the strategic management field during the period 1980–2000. Using a variety of data analytic techniques such as multidimensional scaling, factor analysis, and Pathfinder analysis, we (1) delineate the subfields that constitute the intellectual structure of strategic management; (2) determine the relationships between the subfields; (3) identify authors who play a pivotal role in bridging two or more conceptual domains of research; and (4) graphically map the intellectual structure in two-dimensional space in order to visualize spatial distances between intellectual themes. The analysis provides insights about the influence of individual authors as well as changes in their influence over time. Copyright © 2007 John Wiley & Sons, Ltd.
TL;DR: It is found that industry velocity influences the structure of cognitive representations, which in turn influence the speed of response to environmental events, and this results support the contention that both industry and cognition variables are critical in developing explanations of strategic actions.
Abstract: This study addresses an apparent disconnect between two views of strategic action: the ‘economic view,’ which contends that industry structure is the primary influence on strategic action, and the ‘cognitive view,’ which suggests that managerial cognition drives strategic action. We argue that this disconnect has created artificial boundaries between the two perspectives and has limited our ability to develop holistic explanations of strategic action. In response, we develop an integrated model that answers two questions: 1) Does industry context affect managerial cognition? 2) Does managerial cognition mediate the relationship between industry context and strategic responses to environmental changes? To examine these questions, we study the relationship between industry velocity, the structure of top management's cognitive representation of the environment, and the speed of response to environmental events. We find that industry velocity influences the structure of cognitive representations, which in turn influence the speed of response to environmental events. These results support our contention that both industry and cognition variables are critical in developing explanations of strategic actions. These results have implications for our understanding of the development of top managers' beliefs, the relationship between beliefs and action, and the nature of the complex relationship between industry context, managerial cognition, and strategic action. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors explore factors that lead to alliance formation between pharmaceutical and biotechnology companies and argue that dyadic complementarities and similarities directly influence alliance formation, and introduce a contingency model in which the positive effect of complementarity and similarities on alliance formation is moderated by the age of the new technology firm.
Abstract: Alliance formation is commonplace in many high-technology industries experiencing radical technological change, where
established firms use alliances with new entrants to adapt to technological change, while new entrants benefit from the
ability of established players to commercialize the new technology. Despite the prevalence of these alliances, we know little
about how these firms choose to ally with specific firms given the range of possible partners they may choose from. This
study explores factors that lead to alliance formation between pharmaceutical and biotechnology companies. We focus on
the alliance tie as the unit of analysis and argue that dyadic complementarities and similarities directly influence alliance
formation. We then introduce a contingency model in which the positive effect of complementarities and similarities on
alliance formation is moderated by the age of the new technology firm. We draw theoretical attention to the intersection
between levels of analysis, in particular, the intersection between dyadic and firm-level constructs. We find that a
pharmaceutical and a biotechnology firm are more likely to enter an alliance based on complementarities when the
biotechnology firm is younger. Another noteworthy contribution is the finding that proxies for broad capabilities appear to
be at least as, if not more, effective in predicting alliance formation compared to fine-grained science and technology-related
indicators, like patent cross citations or patent common citations. We conclude by suggesting that future studies on alliance
formation need to take into account interactions across levels; for example, how dyadic capabilities interact with firm-level
factors.
TL;DR: The analysis, focused on a sample of 240 industrial firms, provides empirical evidence enabling us to identify, understand, and evaluate the impact of stakeholders on the choice of environmental response pattern.
Abstract: The objective of this article is to analyze the strategies or patterns of adaptation of firms for responding to environmental requirements or expectations. We specifically analyze the influence of the different pressure agents or stakeholders on the degree of proactivity of these patterns. We therefore propose and validate four types of environmental response pattern, representing particular configurations of both the scope of environmental objectives and their allocation of internal resources. The analysis, which is focused on a sample of 240 industrial firms, provides empirical evidence enabling us to identify, understand, and evaluate the impact of stakeholders on the choice of environmental response pattern. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: It is shown that following a radical change, industry alliance networks may not have the requisite information necessary for quick and effective strategic responses, and the need to assess their alliance portfolio over time and redesign it based on environmental and strategic contingencies.
Abstract: Alliance networks are strategic decisions involving trade-offs between two stylized structural design choices: prominent and entrepreneurial. Prominent alliance networks emphasize benefits arising out of multiple access and affiliation to other prominent firms in the network. An entrepreneurial position, on the other hand, emphasizes brokerage and diversity benefits arising out of access to nonredundant and diverse information. We demonstrate that the performance benefits of each type of alliance network are contingent on environmental change and strategy, and are thus time dependent. Following an environmental change event in the steel industry, alliance networks that were more entrepreneurial performed better, while those that were more prominent suffered performance decline. However, when the change was radical, both types of alliance networks were negatively related to performance. We suggest that following a radical change, industry alliance networks may not have the requisite information necessary for quick and effective strategic responses. Firms pursuing an analyzer strategy performed better when emphasizing a prominent, and to a lesser extent, entrepreneurial alliance network. However, firms that develop an alliance network high on both prominent and entrepreneurial structural positions had lower relative performance. Our results indicate the need for managers to assess their alliance portfolio over time and redesign it based on environmental and strategic contingencies. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this paper, the authors propose a contingency approach grounded in management control theory that suggests the criteria managers use in choosing alliance partners will vary by alliance project type and introduce a framework that addresses when and why managers select partners with certain, specific characteristics.
Abstract: The growth of alliances has generated considerable interest in this topic among both academics and practitioners. While multiple factors may affect alliance success, partner selection emerges as one of the most influential. Previous studies on alliances present general models that assume the factors (e.g., trust, commitment, complementarity, financial payoff) that drive partner attractiveness and, in turn, the likelihood of selection, are consistent across varying alliance projects and situations. In contrast, the present study proposes a contingency approach grounded in management control theory that suggests the criteria managers use in choosing alliance partners will vary by alliance project type. Specifically, it introduces a framework that addresses when and why managers select partners with certain, specific characteristics. The results of the present study strongly support hypotheses that the critical criteria for assessing alliance partner attractiveness and selection vary depending on the differential levels of process manageability and outcome interpretability inherent in a strategic alliance. Implications for theory and practice are discussed. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: It is found that partnership exclusive performance, the true source of learning dyads' competitive advantage, is a function of suppliers acquiring know-how within the dyad, developing dyad-specific assets and capabilities, and structuring buyer-supplier relational governance mechanisms.
Abstract: We compare resource-based and relational perspectives to examine competitive advantages within the context of vertical learning alliances. Previous research has shown that through such alliances suppliers acquire knowledge to forge new capabilities and attain performance improvements. We ask whether such improvements are exclusive to the learning partnership, or are available in other average partnerships of this supplier. We posit that the extent to which such performance improvements are partnership exclusive depends on whether the newly forged capabilities lie entirely within the supplier firm's boundaries, or at the learning dyad level. As such, we untie two forms of performance improvements arising from learning dyads. While the resource-based view helps explain the performance gains learning suppliers deploy across average partners, the relational view reveals the additional performance edge that remains exclusive to the learning partnership. Based on empirical evidence from a survey of 253 suppliers to the equipment industry, we find that partnership exclusive performance (i.e., ‘relational performance’), the true source of learning dyads' competitive advantage, is a function of suppliers acquiring know-how within the dyad, developing dyad-specific assets and capabilities, and structuring buyer-supplier relational governance mechanisms. We discuss implications for research and practice. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this article, the effect of the level of institutional development of host countries on the level and variation in foreign affiliate performance is investigated, and the results suggest that the level as determined by the Institutional Development Index (IDI), a new measurement developed in this study, has a strong negative curvilinear relationship with the variation in the foreign affiliate's performance and a negative effect on the overall performance of foreign affiliate.
Abstract: This article investigates the effect of the level of institutional development of host countries on the level of and variation in foreign affiliate performance. Institutional development is defined as the extent to which the economic, political, and social institutions in a host country are developed and are favorable for foreign affiliates. A longitudinal analysis of over 30,000 foreign affiliate-year cases that include 6,985 foreign affiliates in 38 host countries between 1996 and 2001 shows that foreign affiliate performance varies noticeably both across and within host countries. The results suggest that the level of institutional development, as determined by the Institutional Development Index (IDI), a new measurement developed in this study, has a strong negative curvilinear relationship with the variation in foreign affiliate performance and a negative effect on the level of foreign affiliate performance. The implications for future research, practice, and policymaking are discussed. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors argue that firms in regulated industries react to macroeconomic and policy risks in sharply different ways, and they find it more attractive to expand into countries characterized by governments with discretionary policymaking capacities so as to negotiate favorable conditions of entry.
Abstract: We argue that firms in regulated industries react to macroeconomic and policy risks in sharply different ways. While they seek to avoid countries with high levels of macroeconomic uncertainty, we predict that they find it more attractive to expand into countries characterized by governments with discretionary policymaking capacities so as to be able to negotiate favorable conditions of entry. We also argue that firms are heterogeneous in their attitudes toward risk. We predict that firms in which the state holds a partial equity stake exhibit a more tolerant attitude. We also expect that as firms accumulate foreign experience, they develop an aversion toward further foreign entries into politically unstable markets. Support for these predictions is provided by an analysis of the Latin American market entries of all listed Spanish firms in regulated industries between 1987 and 2000. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this article, the effect on acquisition outcomes of the interaction of board vigilance and director experiential learning was investigated, and the empirical findings indicated that vigilant boards rich in appropriate experience are associated with superior acquisition outcomes.
Abstract: Agency-based studies of boards of directors address factors relevant to board vigilance with respect to the monitoring of senior managers. We argue that relying solely on director vigilance may be limiting because vigilance without relevant experience is unlikely to ensure board effectiveness. Our contention is that boards comprising vigilant directors, as well as directors with appropriate knowledge gained through experience, not only will be better monitors, but also more useful advisors to top managers. The focus of our study is on the effect on acquisition outcomes of the interaction of board vigilance and director experiential learning. Consistent with our expectations, the empirical findings indicate that vigilant boards rich in appropriate experience are associated with superior acquisition outcomes. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: Based on an analysis of the most active acquirers in seven industry sectors in the United States in the 1990s, it is found that both a high rate of acquisitions and a high variability of the rate are negatively related to performance.
Abstract: Based on an analysis of the most active acquirers in seven industry sectors in the United States in the 1990s, we find that both a high rate of acquisitions and a high variability of the rate are negatively related to performance. An acquirer's size, the scope of its acquisition program, and acquisition experience moderate the relationship by weakening the negative effects. Our findings contribute to an improved understanding of acquisition capabilities and program-level acquisition performance, thereby adding to an emerging stream of research that is building an acquisition program perspective.
TL;DR: The results of a survey of 2,754 employees from 180 firms in China show that organization‐level MO culture leads to unit‐ level MO behavior, which improves employee‐level job satisfaction and then product quality, which in turn fosters organizational performance.
Abstract: This article examines the processes by which market orientation (MO) affects performance using a cross-level approach. The results of a survey of 2,754 employees from 180 firms in China show that organization-level MO culture leads to unit-level MO behavior, which improves employee-level job satisfaction and then product quality, which in turn fosters organizational performance. In particular, MO behavior fully mediates the effects of MO culture on employee satisfaction, product quality, and organizational performance. Leadership quality strengthens the effect of MO culture on unit-level MO behavior. Moreover, MO behavior enhances firm performance indirectly through employee job satisfaction and product quality. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: This article contributes to the literature on board effectiveness by being perhaps the first to systematically examine how the nature of outside directors' prior experience, and resulting expertise, will influence the performance of a focal firm's strategic initiatives.
Abstract: This article contributes to the literature on board effectiveness by being perhaps the first to systematically examine how the nature of outside directors' prior experience, and resulting expertise, will influence the performance of a focal firm's strategic initiatives. Our theoretical model is grounded in the psychological literature on expertise and its role in group decision making effectiveness. We focus on outside director expertise in acquisition decision making, and its implications for the performance of the acquisitions of a focal firm. Our conceptual framework indicates that directors will develop expertise in making particular kinds of acquisition decisions (e.g., related or unrelated acquisitions or acquisitions in specific industries or product markets) through their past experiences at other firms with decisions about those specific types of acquisitions, and we predict that this experience and expertise will have positive effects on the performance of a focal firm's acquisitions. We extend our theoretical model to consider the conditions under which relevant director experience will prove most beneficial. Our model predicts that outside director acquisition expertise will deliver the greatest benefits when the focal firm's board is independent from management. We find empirical support for all of our hypotheses. In considering how and when director experience and resulting expertise may influence the performance of corporate acquisitions, our theory and results help to highlight a potential second main focus for research on the long-standing question of what factors render boards of directors effective. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors developed a theoretical framework to understand how industry globalization, foreign competition, and firm product diversification may influence a firm's choice of its degree and scope of international diversification.
Abstract: The globalization of markets and industries has fundamentally changed the competitive conditions facing firms. Yet, how globalization has influenced the international diversification strategies of firms is an issue largely overlooked in both the strategic management and international business literatures. This paper develops a theoretical framework to understand how industry globalization, foreign competition, and firm product diversification may influence a firm's choice of its degree and scope of international diversification. Utilizing a panel dataset of U.S. manufacturing firms for the period 1987–99, we provide the first empirical evidence that industry globalization and foreign-based competition are statistically significant factors explaining the degree and scope of international diversification by U.S. firms. Copyright © 2007 John Wiley & Sons, Ltd.
TL;DR: In this paper, the relative size of spillover and competition effects in China between foreign entrants and local firms, among foreign entrants, and among local firms was examined, and it was shown that the increased presence of foreign entrants has generally benefited local firms nationally, but has negatively affected the survival rates of local firms in regional markets.
Abstract: Combining the FDI spillover literature with a competitor analysis framework, we examine the relative size of spillover and competition effects in China between foreign entrants and local firms, among foreign entrants, and among local firms. Our results show that the increased presence of foreign entrants has generally benefited local firms nationally, but has negatively affected the survival rates of local firms in regional markets. Surprisingly, foreign entrants are crowded out not only by their peers, but also by reformed local firms at both the national and regional levels. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: The results indicate that alliances that are considered strategically important are less likely to be abruptly terminated, and that newly established alliances have a higher termination rate than older alliances.
Abstract: The strategic alliance literature demonstrates that alliances create value for the partners, but also that many alliances fall short of expectations This study addresses the complex issue of alliance performance We follow 100 contractual alliances over a 5-year period, and study their performance in terms of abrupt termination, short-term performance, and long-term performance The results indicate that alliances that are considered strategically important are less likely to be abruptly terminated We also find that newly established alliances have a higher termination rate than older alliances Short-term performance is primarily affected by access to complementary and strategically important resources, whereas long-term performance is related to specific investments in human capital combined with the partners' ability to develop and expand alliance activities over time Copyright © 2007 John Wiley & Sons, Ltd
TL;DR: This analysis of 254 Norwegian small firm accountancy practices' possession of key dynamic capabilities including the heterogeneity of their human capital, their internal development routines, and their alliances with complementary service providers finds that dynamic capabilities have a distinct impact on the scope of services.
Abstract: We propose that differences in the scope of related diversification in firms can be accounted for by differences in their dynamic capabilities. In order to test this, we analyze 254 Norwegian small firm accountancy practices' possession of key dynamic capabilities including the heterogeneity of their human capital, their internal development routines, and their alliances with complementary service providers. We also analyze the influence of strategic choice, in terms of the positioning of the practice and its underlying strategic intent. While we observe no clear effects for these two latter factors, we find that dynamic capabilities have a distinct impact on the scope of services. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: Analyzing a panel of the largest firms in four information and communication technology sectors, it is found that degree of relatedness for corporate venture capital investments, alliances, joint ventures, and acquisitions influences their impact on innovative performance.
Abstract: This study examines how different governance modes for external business development activities and venture relatedness affect a firm's innovative performance. Building on research suggesting that interorganizational relationships enhance the innovative performance of firms, we propose that governance modes and venture relatedness interact in their effect on innovative performance. Analyzing a panel of the largest firms in four information and communication technology sectors, we find that degree of relatedness for corporate venture capital investments, alliances, joint ventures, and acquisitions influences their impact on innovative performance. Copyright © 2008 John Wiley & Sons, Ltd.
TL;DR: In this paper, the authors make a contribution to the growing literature on the board's resource provision role by examining a specific type of resource provision (i.e., industry experience supplementing) and demonstrating the criticality of the liabilities of newness to this particular role.
Abstract: This study makes a contribution to the growing literature on the board's resource provision role by examining a specific type of resource provision (i.e., industry experience supplementing) and demonstrating the criticality of the liabilities of newness to this particular role. In this study, we find that among younger entrepreneurial firms, a dearth of top management industry experience is offset by the presence of outside directors with significant managerial industry experience, providing evidence of experience supplementing by outside directors. Our study highlights that the notion of experience supplementing at the upper echelons prevails in young firms as they try to alleviate the burdens of the liability of newness. Experience supplementing underscores board-management collaboration during early years of firm development. Copyright © 2008 John Wiley & Sons, Ltd.