Beyond boundary spanners: The ‘collective bridge’ as an efficient interunit structure for transferring collective knowledge


Strategic Management Journal

décembre 2013, vol. 34, n°13

Départements : Stratégie et Politique d’Entreprise

Category stretching: Reorienting research on categories in strategy, entrepreneurship, and organization theory


Journal of Management Studies

septembre 2013, vol. 50, n°6, pp.1100-1123

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Categories, Causal-model theory, Goal-based approach, Prototype

We advocate for more tolerance in the manner we collectively address categories and categorization in our research. Drawing on the prototype view, organizational scholars have provided a 'disciplining' framework to explain how category membership shapes, impacts, and limits organizational success. By stretching the existing straightjacket of scholarship on categories, we point to other useful conceptualizations of categories ' i.e. the causal-model and the goal-based approaches of categorization ' and propose that depending on situational circumstances, and beyond a disciplining exercise, categories involve a cognitive test of congruence and a goal satisfying calculus. Unsettling the current consensus about categorical imperatives and market discipline, we suggest also that audiences may tolerate more often than previously thought organizations that blend, span, and stretch categories. We derive implications for research about multi-category membership and mediation in markets, and suggest ways in which work on the theme of categories in the strategy, entrepreneurship, and managerial cognition literatures can be enriched

Corporate Governance and Value Creation: Evidence from Private Equity

V. Acharya, O. GOTTSCHALG, M. Hahn, C. Kehoe

Review of Financial Studies

février 2013, vol. 26, n°2, pp.368-402

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : leveraged buyouts (LBO), management buyouts (MBO), active ownership, activism, management turnover, alpha

We examine deal-level data from 395 private equity transactions in Western Europe initiated by large private equity houses during the period 1991 to 2007. We un-lever the deal-level equity return and adjust for un-levered return to quoted peers to extract a measure of abnormal performance of the deal. The abnormal performance is significantly positive on average, and stays positive in periods with low sector returns. In the cross-section of deals, higher abnormal performance is related to greater growth in sales and greater improvement in EBITDA to sales ratio (margin) during the private phase, relative to those of quoted peers. Finally, we show that general partners with an operational background (ex-consultants or ex-industry-managers) generate significantly higher outperformance in organic deals that focus exclusively on internal value creation programs; in contrast, general partners with a background in finance (ex-bankers or ex-accountants) generate higher outperformance in deals with significant M&A events. We interpret these findings as evidence, on average, of positive, but heterogeneous skills at deal partner level in private equity transactions

Decentralization and contracting out: A new pattern for internal and external boundaries of the firm

G. Chanson, B. QUÉLIN

European Management Journal

décembre 2013, vol. 31, n°6, pp.602-612

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Boundaries of the firm, Centralization, Contracting out, Central services

This paper is devoted to the pattern of activity within large companies, through the two criteria of decentralization and contracting out. Our goal is to understand whether the determinants are identical for both internal and external boundaries of the firm. One literature stream contributes to the analysis of the internal structure and organization of divisional companies, studying the functions assigned to headquarters or divisions. Another part of the literature has focused on the boundaries of the firm issues and the firm’s core activities. Few works are at the junction of these two traditions. This study builds on an empirical study dedicated to the book publishing industry. Our analysis leads to discuss determinants of internal and external borders. We show that functions or activities with high potential of economies of scale are mainly centralized and internalized. On reverse, those related to core business and non-programmable functions are mostly at divisional level and contracted out

Does pre-entry licensing undermine the performance of subsequent independent activities? Evidence from the global aerospace industry, 1944-2000

L. Mulotte, P. DUSSAUGE, W. Mitchell

Strategic Management Journal

mars 2013, vol. 34, n°3, pp.358-372

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : new business entry; licensing; experiential learning; overconfidence; causal ambiguity

We study how firms' use of in-licensing for their initial entry to a business domain can detract from the performance of their subsequent autonomous endeavors in the domain. We argue that in-licensing produces high levels of causal ambiguity about factors that drive the performance achieved with the licensed product. In turn, the experience that firms gather through pre-entry licensing is likely to generate superstitious learning and overconfidence that undermine the performance of licensees' subsequent independent operations. The biases will be particularly strong in the face of contextual dissimilarity. We find consistent evidence in a study of firms that entered the global aircraft industry between 1944 and 2000. The research helps advance the understanding of the benefits and costs of markets for technology

Fast-Mover Advantages: Speed Capabilities and Entry into the Emerging Submarket of Atlantic Basin LNG


Strategic Management Journal

décembre 2013, vol. 34, n°13, pp.1531-1550

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : firm capabilities; first-mover advantages; new market entry; strategy dynamics; speed; project management

Entry timing benefits and costs typically vary with firms' capabilities. In this study, we empirically examine the entry timing implications of firms' intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors. We hypothesize that firms with intrinsic speed capabilities face low preemption risks and, thus, can afford to wait longer for uncertainty resolution before deciding to enter new markets. This hypothesis is more applicable when investment is associated with higher levels of commitment and, thus, greater option value of waiting. A direct implication is that late entrants with intrinsic speed capabilities should have greater expected post-entry performance. We find support for these hypotheses in the Atlantic Basin liquefied natural gas (LNG) industry from 1996 to 2007

Feeling unsure: quit or stay? Uncovering heterogeneity in employees' intention to leave in Indian call centers

D. Das, A. M. NANDIALATH, R. Mohan

The International Journal of Human Resource Management

janvier 2013, vol. 24, n°1, pp.15-34

Départements : Stratégie et Politique d’Entreprise

Mots clés : call center; intention to leave; latent class analysis

Employee turnover remains to be one of the biggest human resource problems facing theIndian international call center industry. This paper aims to provide a comprehensivestudy of how the attitudes of call center employees toward different aspects of their workaffect their intention to leave. Our specific contribution to the literature is inunderstanding the heterogeneity among employees and how this affects meaningfulinference in studying employees’ intention to leave. To achieve this goal, we compare andcontrast between traditional ordinary least squares regression models that have been usedin the extant literature with latent class analysis. Latent class analysis suggests thepresence of three distinct groups of employees, thus confirming the heterogeneity presentin the data. The three groups can be represented as the two polar groups, one keen onstaying and the other keen on leaving, and a significantly large third group of employeeswho are unsure.We also find that the impact of different attitudes vary between groups interms of both economic significance (magnitude of coefficients), and statisticalsignificance. This study throws important light on the research on turnover and hassignificant research and practical implications

International Expansion, Diversification and Regulated Firm Nonmarket Strategy

S. Urbiztondo, J. Bonardi, B. QUÉLIN

Managerial and Decision Economics

septembre 2013, vol. 34, n°6, pp.379-396

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Expansion (Business), Diversification (Finance), Marketing strategy, Economic models, Competition (Economics), Economic development, Economics -- Research

Previous studies have shown that regulated firms diversify for reasons that are different than for unregulated firms. We explore some of these differences by providing a theoretical model that starts by considering the firm–regulator relationship as an incomplete information issue, in which a regulated incumbent has knowledge that the regulator does not have, but the firm cannot convey hard information about this knowledge. The incumbent faces both market and nonmarket competition from a new entrant. In that context, we show that when the firm faces tough nonmarket competition domestically, going abroad can create a mechanism that makes information transmission to the regulator more credible. International expansion can thus be a way to solve domestic nonmarket issues in addition to being a catalyst for growth

Networks, social influence and the choice among competing innovations: Insights from open source software licenses

P. Singh, C. C. PHELPS

Information Systems Research

septembre 2013, vol. 24, n°3, pp.539-560

Départements : Stratégie et Politique d’Entreprise

Mots clés : open source software license social networks innovation adoption and diffusion social influence

Existing research provides little insight into how social influence affects the adoption and diffusion of competing innovative artifacts and how the experiences of organizational members who have worked with particular innovations in their previous employers affect their current organizations' adoption decision. We adapt and extend the heterogeneous diffusion model from sociology and examine the conditions under which prior adopters of competing open source software (OSS) licenses socially influence how a new OSS project chooses among such licenses and how the experiences of the project manager of a new OSS project with particular licenses affects its susceptibility to this social influence. We test our predictions using a sample of 5,307 open source projects hosted at SourceForge. Our results suggest the most important factor determining a new project's license choice is the type of license chosen by existing projects that are socially closer to it in its inter-project social network. Moreover, we find that prior adopters of a particular license are more infectious in their influence on the license choice of a new project as their size and performance rankings increase. We also find that managers of new projects who have been members of more successful prior OSS projects and who have greater depth and diversity of experience in the OSS community are less susceptible to social influence. Finally, we find a project manager is more likely to adopt a particular license type when his or her project occupies a similar social role as other projects that have adopted the same license. These results have implications for research on innovation adoption and diffusion, open source software licensing, and the governance of economic exchange

Relational configurations with information intermediaries: The effect of firm-investment bank ties on expected acquisition performance


Strategic Management Journal

août 2013, vol. 34, n°8

Départements : Stratégie et Politique d’Entreprise