Session Details: Session 1025

What is the Value Added of Ideas, Intelligence and Innovation?

Track C

Date: Monday, October 13, 2008

 

Time: 17:00 – 18:15

Paper

Room: Salon 5


Session Chair:
Stefan Gueldenberg, University of Liechtenstein

Title: Balance Within and Across Domains: The Performance Implications of Exploration and Exploitation in Alliances

Authors

  • Dovev Lavie, Technion-Israel Institute of Technology
  • Jingoo Kang, Nanyang Technological University
  • Lori Rosenkopf, University of Pennsylvania

Abstract: We study whether and how firms benefit from balancing exploration and exploitation. Prior research advocates the pursuit of balance yet acknowledges the organizational challenges that it entails. We suggest that this dilemma can be resolved if a firm explores in one domain while simultaneously exploiting in another. Using panel data on the alliance portfolios of software firms during 1990-2002, we demonstrate that firms do not typically benefit from balancing exploration and exploitation within particular domains of alliance formation decisions. Nevertheless, firms that balance exploration and exploitation across the function (technology versus marketing and production alliances) and structure (new versus prior partners) domains gain in profits and market value. Furthermore, increases in firm size reinforce the benefits of balance across domains relative to balance within domains.

Title: Does Emotional Intelligence Enhance Managers’ Decision-Making Ability? A Study on Fuzzy Ethical Dilemmas in Corporate Strategy

Authors

  • Karen Schnietz, Pepperdine University
  • Ariff Kachra, University of Western Ontario

Abstract: This paper asserts that a manager’s emotional intelligence will influence their ability to identify and respond to “fuzzy” ethical dilemmas -- business practices that may be perceived as ethically-challenged by many, but not all, stakeholders of a firm. Emotional intelligence is the ability to perceive and use emotions to facilitate decision-making, and thus is one form of gathering and filtering knowledge. This paper pursues two, broad goals. First, it hypothesizes that relatively high performance on each of the four main kinds of emotional intelligence as measured by the MSCEIT test of emotional intelligence correspond with four main ways of responding to ethical dilemmas. Second, the paper tests these hypotheses with data from managers’ responses to the highly-profitable strategies employed in the deathcare industry that are often deemed as ethically-challenged.

Title: Experienced Business Angels: Evaluating Their Knowledge Contribution To A Startup Firm’s Performance

Authors

  • Richard Jayne, St. Ambrose University
  • Arun Pillutla, St. Ambrose University

Abstract: Business angels finance ten times the number of new ventures as do venture capitalists, but they are studied much less. This study assesses a business angel’s contribution to a startup firm’s performance. Using the value-added nature of knowledge and social capital resulting from the business angel’s relevant industry and entrepreneurial experience, this study assesses the impact of knowledge and social capital on a startup’s performance. Following a resource-based perspective, the study proposes that business angel’s knowledge and social capital positively affect a startup’s performance. This study tests the value-adding contributions of business angels with relevant industry and entrepreneurial experience to a startup’s performance and tests the role that the entrepreneur plays in ensuring a startup firm’s performance through evaluating knowledge and social capital.

Title: Measuring to Manage and Succeed as a Responsible Player: Nonfinancial Disclosure and Its Impact on Corporate Social Performance

Authors

  • Clodia Vurro, Bocconi University
  • Francesco Perrini, Bocconi University

Abstract: Heeding the call to go beyond financial measures as all-inclusive indicators of corporate performance, nonfinancial disclosure has gathered momentum. Yet, notwithstanding this increasing interest in business practice, the performance consequences of nonfinancial disclosure are still largely anecdotal. Reviewing the disclosure experience of a sample of 100 worldwide companies included in the Accountability Rating, this paper proposes and tests a model relating the quantity and quality of nonfinancial disclosure to corporate social performance. If nonfinancial reporting is conducive to a better ability to manage firms’ social context of reference, then the better firms are at systematizing CSR and stakeholder knowledge in a formal document, the stronger their social and environmental performance. Also the extent to which nonfinancial disclosure reflects actual corporate social performance is determined.

All Sessions in Track C...

Mon: 17:00 – 18:15
Session 1025: What is the Value Added of Ideas, Intelligence and Innovation?


Strategic Management Society

Cologne Conference