Achieving High Growth in Policy-Dependent Industries: Differences between Startups and Corporate-Backed Ventures


Long Range Planning

aout 2017, vol. 50, n°4, pp.487-500

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

This research examines which firms achieve high growth in policy-dependent industries. Using the European solar photovoltaic industry as our empirical setting, we investigate the impact of policy support on the growth of independent startups and corporate-backed ventures operating across countries with diverse policy conditions. We find that producers' growth is positively linked to policy generosity, and negatively linked to policy discontinuity. Moreover, corporate-backed ventures are less affected by policy generosity compared to entrepreneurial startups, and less impacted by policy discontinuity as well. Our results underline the importance of country- and firm-level differences in analyzing firms' response to regulatory policies, and point to the need for a better understanding of the unintended consequences of policies designed to support new industries.

Alleviating Managerial Dilemmas In Human-Capital-Intensive Firms Through Incentives: Evidence From M&A Legal Advisors


Strategic Management Journal

février 2017, vol. 38, pp.232-254

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

Mots clés : Human-Capital-Intensive Firms, Human Capital, Managerial Dilemmas, Incentives, Capabilities, Micro-foundations, Mergers and Acquisitions, Law firms

We examine how human-capital-intensive firms deploy their human assets and how firm-specific human capital interacts with incentives to influence this deployment. Our empirical context is the UK M&A legal market, where micro-data enable us to observe the allocation of lawyers to M&A mandates under different incentive regimes. We find that law firms actively equalize the workload among their lawyers to seek efficiency gains while ‘stretching’ lawyers with high firm-specific capital to a greater extent. However, lawyers with high firm-specific capital also appear to influence the staffing process in their favor, leading to unbalanced allocations and less sharing of projects and clients. Paradoxically, law firms may adopt a seniority-based rent-sharing system that weakens individual incentives to mitigate the impact of incentive conflicts on resource deployment

Behavioral Strategy and the Strategic Decision Architecture of the Firm


California Management Review

2017, vol. 59, n°3, pp.5-21

Départements : Stratégie et Politique d’Entreprise

Mots clés : behavioral strategy, psychology, cognitive bias, strategic decision process

This special issue explores the impacts of behavioral strategy on managementpractice. Behavioral strategy can best contribute to management practice by shifting its focus from individual decision biases to the design of behaviorally informed decision processes at the level of the firm. This introduction identifies three types of organizational decision processes, shows how they interact with individual and group biases, and proposes a model showing how managers can design and deploy these processes to shape the strategy of the firm. It then introduces the articles in this special issue and discusses their contributions to the future of behavioral strategy

Better Safe than Sorry: Subsidiary Performance Feedback and Internal Governance in Multiunit Firms


Journal of Management

novembre 2017, vol. 43, n°8, pp.2526-2554

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

Dirigé par: Special Issue: Resource Allocation and Strategy

Mots clés : autonomy, governance, incentives, organization design, performance feedback, resource allocation, structural adaptation

This paper explores the link between subsidiary performance feedback and internal governance mechanisms in multiunit firms. A central premise of performance feedback models is that performance below aspirations is associated with increased risk tolerance and thereby with a higher likelihood of taking excessive risks in resource allocation decisions. Building on this observation, we contend that the headquarters of multiunit firms take this association into account in the design of internal (i.e., headquarters-subsidiary) governance mechanisms. Accordingly, a subsidiary’s performance-aspiration gap (below aspirations) is positively associated with the headquarters’ oversight of its resource allocation decisions and negatively associated with the provision of incentive schemes that promote risk taking. Regression results, using data on subsidiaries in France between 1998 and 2004, support our hypotheses and show that subsidiaries performing below historical and social aspirations are less likely to be given discretion in investment decisions and incentivized by cash bonuses. In the supplementary analyses we also provide suggestive evidence that subsidiary performance problems in multiunit firms trigger structural adaptation in the internal governance mechanisms in pursuit of regaining fit

Estimating Value Creation from Revealed Preferences: Application to Value-Based Strategies


Strategic Management Journal

octobre 2017, vol. 38, pp.1964-1985

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

Mots clés : buyer–supplier relationships; client-speciceconomies of scope; cooperative game theory; revealedpreferences; value-based strategy

We develop and apply a new set of empirical tools consistent with the tenets of value-based business strategies, leveraging the principle that “no good deal comes undone” and the methods of revealed preferences to empirically estimate drivers of value creation. We demonstrate how to use these tools in an analysis of value creation in buyer–supplier relationships in the UK corporate legal market. We show how the method can uncover evidence of subtle mechanisms that traditional methods cannot easily distinguish from each other. Furthermore, we show how these estimates can be used as parameters of biform games for out-of-sample analyses of strategic decisions. With readily available data on relationships between firms, this approach can be applied to many other contexts of interest to strategy researchers

From Categories to Categorization: A Social Perspective on Market Categorization


Research in the Sociology of Organizations

2017, vol. 51, pp.3-30

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

Mots clés : Category, categorization, organization, strategy, cognition, social process

The popularity of research into categories has grown in recent decades and shows no sign of abating. This introductory article takes stock of the research into two facets of categorization, addressing it both as a cognitive and a social process. We advocate a rebalance toward the social process of categorization, paying more heed to the entity to be categorized, the actors involved, their acts, and the context and timing, which informs these activities. We summarize the contributions to the volume in relation to these dimensions and briefly discuss avenues for future research

Heterogeneous social motives and interactions: The three predictable paths of capability development: Heterogeneity in capability development paths


Strategic Management Journal

septembre 2017, vol. 38, n°9, pp.1755-1773

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

Mots clés : deliberate capability development; motiva-tional microfoundations; social interactions; businessprocess performance; multilevel

Research summary: Limited attention has been paid to the crucial role of individuals' motivation and social interactions in capability development. Building on literature in social psychology and behavioral economics that links heterogeneity in individual social motives to social interactions, we explain how the variation, selection, and retention processes underlying a group's deliberate capability development are affected by the composition of the group in terms of individuals' social motives in interplay with the organizational-level motivational levers designed by managers. Our multilevel theoretical model suggests that individual-level heterogeneity leads to the development of capabilities along different paths. For practice, this implies that, according to the composition of the group in terms of social motives, capabilities are more or less technically and evolutionary adequate and a source of business process performance.Managerial summary:We propose that when a group of employees engages in developing one of the firm's capabilities, capability development will follow a different path according to what motivates most of the employees composing the group. We identify and discuss three paths. Two of these paths (convergence and congruence) can help improve business process performance in a stable environment, the third one (open-ended) in a dynamic environment. Our work invites managers to not only think in terms of more or less capability development, but also in terms of capability development path(s): the path(s) in which groups in the firm are currently engaged and the one(s) that are desirable given the firm's objectives and the nature of the environment(s) the firm faces in deploying its business processes

Organization Design, Proximity, and Productivity Responses to Upward Social Comparison


Organization Science

janvier-février 2017, vol. 28, n°1, pp.1-18

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

Mots clés : Incentives, Social Comparison Costs, Envy, Productivity, Organization Design

We investigate the mechanisms that shape social comparison in organizations and generate social comparison costs. In particular, we focus on heterogeneity in the strength and type of incentives and argue that, from an efficient design perspective, such variance in rewards is a double edged sword. While the sorting and incentive effects that result may increase productivity, the socialcomparison processes that arise may dampen it. We posit that the mechanisms underlying these behavioral costs are shaped not only by the magnitude of reward variance, but by the formal and informal design elements shaping the distance of advantaged peers. In other words, the more proximate socially, structurally or geographically are those to whom one socially compares, thelarger the behavioral response. Empirically, we use an unanticipated event during which outlets of a bank, previously operating under essentially homogenous incentives, were assigned to tournament groups with differing ex ante probabilities of winning a prize—an event that increases variance in awards and hence generates an impetus for social comparison. We find that units with more socially, geographically, and structurally proximate peers assigned to ‘advantaged’ tournament groups decreased their productivity. We discuss implications of these results for organizational design and boundaries

Person–Organization Fit and Incentives: A Causal Test


Management Science

2017, vol. 63, n°1, pp.73-96

Départements : Stratégie et Politique d’Entreprise

Mots clés : tournaments; organizational culture; personal values; person–organization fit; teams; economic incentives

We investigate the effects of organizational culture and personal values on performance under individual and team contest incentives. We develop a model of regard for others and in-group favoritism that predicts interaction effects between organizational values and personal values in contest games. These predictions are tested in a computerized lab experiment with exogenous control of both organizational values and incentives. In line with our theoretical model, we find that prosocial (proself)-orientated subjects exert more (less) effort in team contests in the primed prosocial organizational values condition, relative to the neutrally primed baseline condition. Further, when the prosocial organizational values are combined with individual contest incentives, prosocial subjects no longer outperform their proself counterparts. These findings provide, to our knowledge, a first, affirmative, causal test of person–organization fit theory. They also suggest the importance of a “triple-fit” between personal preferences, organizational values, and incentive mechanisms for prosocially orientated individuals

Pour une Conférence des directeurs d’écoles et formations de management


Revue Française de Gestion

2017, vol. 43, n°268, pp.133-147

Départements : Stratégie et Politique d’Entreprise

Avec environ 300 000 étudiants, le secteur des formations au management est, comme dans de nombreux pays développés, le premier en effectifs dans l’enseignement supérieur français. Il est aussi un champion dans les classements internationaux (Financial Times, 2017). Mais il n’est pas vu et respecté comme tel en France, où il est un nain dans le jeu institutionnel. Il est aussi le seul, et ce n’est pas un hasard, à ne pas être doté d’une instance représentative unifiée de ses établissements. Concentrés sur la concurrence internationale ou sur des rivalités corporatistes franco-françaises, beaucoup de leurs dirigeants semblent négliger le jeu collectif dont dépendent pourtant les conditions même de leur action : cadre juridique, ressources, influence sociétale. Or il n’y a pas de compétitivité internationale sans une solide base de légitimité nationale. Le texte qui suit est consacré à cette question, qui exige d’embrasser l’ensemble du secteur.Nous proposons ici de nommer, au sens large, « Écoles et formations de management » (EFM) toutes les entités qui délivrent un diplôme supérieur de « commerce », « administration des entreprises », « gestion » ou « management ». Ces vocables n’étant que les appellations historiques successives de formations ayant la même vocation doivent être considérés comme synonymes. De la même façon, l’appellation « EFM » inclut ces formations quel que soit leur statut : universitaire, consulaire, associatif ou privé. Les entités universitaires méritent une précaution particulière. Alors qu’à travers le monde les universités qui offrent des formations au management ont une seule école dédiée à ce domaine, de nombreuses universités françaises ont plusieurs composantes délivrant des formations de gestion. L’unité d’analyse pertinente n’est donc pas l’université mais la composante : IAE, UFR, département. Ainsi définies, on compte 86 EFM dans 58 universités.Nous nommons ci-dessous « instances unifiées » celles qui regroupent l’ensemble des établissements d’un même secteur, quels que soient leurs statuts. Les « instances représentatives » sont celles qui se conforment à la loi d’airain de la légitimité, être constituées des directeurs d’écoles ou de formations, qui élisent leurs responsables parmi leurs pairs. Enfin, les « instances indépendantes » sont celles qui ont la personnalité morale, permettant à leurs dirigeants de s’exprimer au nom de leurs membres.Alors qu’elles partagent des intérêts multiples, les EFM sont faibles dans le jeu institutionnel et sociétal. Cette faiblesse vient d’un manque d’unité et d’un déficit de représentation, comme le montre la comparaison avec les écoles d’ingénieurs. La priorité est de créer une Conférence des directeurs d’écoles et formations de management (CDEFM)