Articles scientifiques

Asset Divestment as a Response to Media Attacks in Stigmatized Industries

R. DURAND, J.-P. VERGNE

Strategic Management Journal

août 2015, vol. 36, n°8, pp.1205-1223

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

Mots clés : Stigma, Impression management, Divestment, Media, Categories, Reputation, Defense industry

http://ssrn.com/abstract=2415019


In stigmatized industries characterized by social contestation, hostile audiences, and distancing between industry insiders and outsiders, firms facing media attacks follow different strategies from firms in uncontested industries. Because firms avoid publicizing their tainted-sector membership, when threatened, they can respond by divesting assets from that industry. Our analyses of the arms industry demonstrate that media attacks on the focal firm and its peers both increase the likelihood of divestment for the focal firm. Specifically, attacks on the focal firm are the most consequential, followed by attacks on peers in the same industry subcategory, and by attacks on peers in different subcategories. These findings shed new light on divestment as a response to media attacks in stigmatized industries and lead us to rethink impression management theory

Défis au Bas de la Pyramide

B. GARRETTE, A. KOZAN, T. ROULET

Management International

printemps 2015, vol. 19, n°3, pp.65-82

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

Mots clés : Bas de la Pyramide, Entreprises multinationales, Ethique des affaires, ONGs, Développement économique, Base of the Pyramid, MNEs, Business ethics, NGOs, Economic development


Le « Bas de la Pyramide » (BdP), est-il le nouvel Eldorado pour les entreprises, ou seulement un miroir aux alouettes? L’examen des activités « BdP » existantes montre que les entreprises ont beaucoup de mal à gagner de l’argent en offrant aux populations les plus pauvres de la planète des produits et des services qui sont censés contribuer à la résolution de problèmes sociaux ou environnementaux. Cet article suggère cependant que les entreprises doivent persévérer dans leurs efforts. Nous proposons des solutions pour surmonter les obstacles économiques, sociaux et politiques des projets « BdP » et discutons le rôle de ces initiatives en matière d’innovation et de croissance

Disentangling the Performance Effects of Efficiency and Bargaining Power in Horizontal Growth Strategies: An Empirical Investigation in the Global Retail Industry

V. MOATTI, C. REN, J. ANAND, P. DUSSAUGE

Strategic Management Journal

mai 2015, vol. 36, n°5, pp.745-757

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

Mots clés : Mergers and acquisitions (M&A), Organic growth, Bargaining power, Operating efficiency, Retail


Mergers and acquisitions (M&A) and organic growth are two common strategies to achieve horizontal growth. In this study, we disentangle two distinct sources of firm performance corresponding to different theoretical perspectives on firm size: firms' bargaining power with respect to suppliers and customers, and operating efficiency arising from scale economies. We conceptually argue and empirically show that relatively, M&A enhance bargaining power in the short term while organic growth enhances operating efficiency over the long term. In order to disaggregate these effects, we use accounting rather than financial or managerial data and test our predictions in the global retail industry over a 20-year period. We examine implications of these results for sustainability of size-based competitive advantages

Evidence Doesn't Argue for Itself: The Value of Disinterested Dialogue in Strategic Decision-Making

M. GARBUIO, D. LOVALLO, O. SIBONY

Long Range Planning

décembre 2015, vol. 48, n°6, pp.361-380

Départements : Stratégie et Politique d’Entreprise

Mots clés : Analysis, Behavioral strategy, Disinterested dialogue, Evidence-based management, Strategic decision making

https://www.sciencedirect.com/science/article/pii/S0024630115000515


Previous studies of strategic decision-making have demonstrated a relationship between the strategic decision-making process and its effectiveness, namely whether the decision delivers the expected results. In this article, we demonstrate that there are two key dimensions of strategic decision-making: 1) the analysis performed, and particularly financial aspects of a decision; and 2) strategic conversations about the decision at hand, or the “disinterested dialogue” about the decision, as we refer to it. Whereas, it is well-accepted that a robust analysis is important for effective decisions, we argue that disinterested dialogue is also a necessary construct in explaining the effectiveness of strategic decisions. To test this hypothesis, we undertook a study of 634 strategic decisions made by executives across multiple industries and regions. The results confirmed that both a robust analysis and disinterested dialogue have a significant positive relationship with decision-making effectiveness. However, disinterested dialogue has a significantly greater impact on the effectiveness of strategic decisions than robustness of analysis. We discuss the impact of our results for theory and practice.

Giants at the Gate: Investment Returns and Diseconomies of Scale in Private Equity

F. LOPEZ DE SILANES, L. PHALIPPOU, Oliver GOTTSCHALG

Journal of Financial and Quantitative Analysis

juin 2015, vol. 50, n°3, pp.377-411

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

Mots clés : Private equity, Diseconomies of scale

http://ssrn.com/abstract=1363883


We document the wide dispersion of private equity investment returns and examine performance determinants using a newly constructed database of 7,500 investments worldwide. One in ten investments does not return any money, whereas one in four has an IRR above 50%. Quick flips are associated with some of the highest returns. Performance does not appear scalable: Investments held by private equity firms in periods with a high number of simultaneous investments underperform substantially. Results are consistent with the theoretical literature on organizational diseconomies linked to firm structure. Private equity firms’ actions do not appear to be mechanical or easily scalable


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