Session Details: Session 1028

Social and Institutional Issues in Strategic Management

Track D

Date: Monday, October 13, 2008


Time: 17:00 – 18:15


Room: Salon 24

Session Chair:
William Newburry, Florida International University

Title: Bringing Institutions into Performance Persistence Research: Product, Financial and Labor Market Institutions


  • Aya Chacar, Florida International University
  • Balagopal Vissa, INSEAD
  • William Newburry, Florida International University

Abstract: This study challenges the implicit assumption of institutional homogeneity that is commonly assumed in past research on the persistence of firm performance. It proposes that the national institutional context is an essential driver of firm performance persistence, as it affects competition in the factor and product markets. Using an institutional economics perspective and firm and institutional level data from 10,674 firms in 35 countries, we show that cross country institutional variations in the formal institutions of the product, finance and labor markets indeed lead to differences in the persistence of firm performance over time.

Title: Liability of Foreignness?: Moderating the Impact of Foreign Headquarters on Corporate Reputation


  • William Newburry, Florida International University
  • Michael Oliva, Reputation Institute

Abstract: Reputation is associated with numerous firm outcomes (Caruana, Cohen & Krentler, 2006; Dowling, 2006), and is well established as a significant interest area in the strategy field (Fombrun & Shanley, 1990). However, while numerous studies exist regarding the liability of foreignness (Zaheer, 1995; Mezias, 2002), little work examines whether and how reputation differs between foreign and domestic firms. Moreover, some recent work suggests that foreignness may not always be a liability, but can sometimes be beneficial (Newburry, Gardberg & Belkin, 2006). We examine the effect of foreignness on reputation perceptions of over 600 companies within 25 countries, examined as part of the Reputation Institution’s 2007 reputation survey. We find that foreignness does not directly impact reputation, but is moderated by country-, industry-, and individual-level variables.

Title: Reputation Externalities and Corporate Social Responsibility: Knowledge and Information Sharing in the Steel Industry


  • Nicola Misani, Bocconi University

Abstract: In this paper I suggest that the Corporate Social Responsibility (CSR) activities of firms are sometimes driven by the fear of reputation externalities. When the stakeholders are unable to observe the actual social performance of the firms, single offenders in an industry can damage the reputation of their peers. To avoid indiscriminate penalties from stakeholders, industry members will try to build informal private regulatory schemes and will share information and knowledge with sub-performers in order to facilitate their convergence on best practices. I present a scheme launched by the steel industry in response to the Climate Change issue as evidence. Implications for CSR research and strategy research are discussed.

Title: The Social Responsibilities Of Business: Why Major Corporations Are More Progressive Than U.S. Business Schools


  • Lori Kiyatkin, Towson University
  • Rhonda Reger, University of Tennessee
  • J Robert Baum, University of Maryland

Abstract: We examine how and why two major institutional groups in the United States (U.S.) business community - leading corporations and U.S. business schools - are differently contributing to public discourse on the purpose of business by differently expressing attention to social issues. We bridge five theoretical perspectives: institutional theory, an attention based view of the firm, reputation theory, resource dependence theory, and stakeholder theory to argue that corporations’ commercial focus counter intuitively promotes institutional change. Specifically, commercial focus promotes attention to diverse social issues, and corresponding stakeholder interests, that traditionally have been considered at odds with a profit-driven, shareholder primacy focus. We discuss here a data source and methodology for examining this topic in greater detail and report some of our findings.

All Sessions in Track D...

Mon: 11:15 – 12:30
Session 1027: Knowledge Proximity and Knowledge Diffusion
Session 1029: Strategy Tools in the Knowledge-Based Economy
Mon: 15:30 – 16:45
Session 1030: The Emerging Strands of Research in Strategic Cognition
Mon: 17:00 – 18:15
Session 1028: Social and Institutional Issues in Strategic Management
Tue: 11:15 – 12:30
Session 1034: The Role of Decision-Making for Knowledge Management
Session 1117: SMS Emerging Scholar Award Recipient 2008 - Riitta Katila
Tue: 14:30 – 15:45
Session 1031: Organizational Structure and Performance
Wed: 11:30 – 12:45
Session 1026: Learning Within and Across Organizational Boundaries

Strategic Management Society

Cologne Conference