Session Details: Session 1054

Facing Competing Demands to Create Value

Track H

Date: Monday, October 13, 2008


Time: 17:00 – 18:15

Common Ground

Room: Salon 19

Mark Kriger, BI Norwegian Business School

Title: Balancing Exploration and Exploitation: A Dynamic Perspective


  • Lei Zhang, University of South Florida
  • Kislaya Prasad, University of Maryland

Abstract: Both exploration and exploitation are needed for a firm to survive. Research in ambidexterity emphasizes the importance of simultaneous engagement in managing the current business and adapting to changing environment. However, it is unclear how the balance point is to be determined? In this paper, we argue that in order to survive, the optimal balance point between exploration and exploitation depends on firm age and environment. Younger firms should put more attention and emphasis on exploitation for the sake of survival. However, firms should increase the ratio of exploration over exploitation as firm age. The initial ratio of exploration over exploitation and the rate of increase depend on the environment. The argument will be tested using simulation methods.

Title: Executive Succession and Firm Performance – The Moderating Role of an Alignment Between the New CEO and Corporate Strategy


  • Torsten Wulf, Philipps-University Marburg
  • Stephan Stubner, HHL Leipzig Graduate School of Management

Abstract: Building on executive succession literature, this study analyzes the performance effects of an alignment between newly appointed CEOs and the strategy of their respective companies. An empirical investigation of a sample of 66 CEO succession events in 50 of Germany's largest publicly listed companies between 1990 and 2005 reveals positive performance effects of an overall fit between four demographic characteristics of the CEO and the firm's diversification posture over the first three years of the tenure of the new CEO. In the fourth year, however, these performance effects vanish. Additionally, the study yielded no results for the fit between single demographic characteristics of CEOs and the firm's diversification posture, adding empirical evidence to Van de Ven and Drazin’s (1985) discussion of various notions of fit.

Title: Formal Control and Strategic Growth Initiatives - An Entrepreneurial Perspective


  • Markus Kreutzer, EBS University of Business and Law
  • Christoph Lechner, University of St. Gallen
  • Andreas Herrmann, University of St Gallen

Abstract: Growth initiatives have been recognized as important means for corporate entrepreneurship. In this paper, we apply a control perspective on such initiatives and examine the impact of various types of formal controls, their antecedents as well as mediating factors on their performance. In order to examine these complex relationships, we employ structural equation modeling and use a unique data-set comprised of survey data of 201 corporations in six countries. Our findings suggest that the three control mechanisms of input, behavior and output control differ in their impact on growth initiatives. This impact is mediated by factors such as learning and micro-political activities. These results enrich our understanding about the relationships between control and corporate entrepreneurship.

Title: Institutional Insurgents: Institutional Conformity and Strategic Autonomy


  • Diego Lopez, ESCP-EAP-Paris

Abstract: This paper supports the positions previously taken which suggest the full integration of the interaction between institutional context and organizational change in institutional studies since the interaction between the two levels of analysis has not yet thoroughly been studied. We’ll address the influence of the institutional conformity degree of firms and the strategic autonomy degree and strategic choices available to face market disruptive situations. The main rational here is that institutional insurgency (low degree of conformity) is directly related to greater strategic autonomy and alternatives.
These questions will be illustrated with a case study that focuses on the interaction of these factors along the history of a single firm strategic shift.

Title: Managing External Aspirations: Examining How Executives Influence Stock Market Analyst Forecasts


  • Mark Washburn, California State University, Long Beach

Abstract: Stock analyst forecasts constitute important aspiration levels for firms. Given this importance, how would we expect managers to behave? Managers may opt to attempt any single action or combination of actions when interacting with stock market analysts. This proposal identifies four specific actions that influence analyst forecasts. Aspiration influencing actions originate with executives and, if successful, influence analyst targets. By influencing targets, executives are able to increase positive perceptions of firms in the market. This proposal develops propositions about aspiration influencing actions to reflect the differences in contexts that executives and analysts experience. Propositions correspond to firms that either have attained or failed to attain targets, and how executives and analysts react in different cases.

Title: Valuing Human Resources As A Source of Customer Value Creation in Services


  • Jeffrey Arthur, Virginia Tech
  • Andrew Herdman, East Carolina University
  • Fiona Xiaoying Ji, Ohio University

Abstract: Progress in testing the resource-based view (RBV) of the firm has been hampered by the difficulty in directly assessing the core resource or capability proposed to generate value and the potential for sustained competitive advantage. We propose to address this issue by using a unique data set that includes detailed measures of employee perceptions, attitudes, and behaviors, as well a management values and human resource (HR) practices collected from multiple respondents at over 200 franchised hotels in the U.S. We match these survey data with hotel-level data on customer service outcomes to test specific RBV propositions regarding the relationships between senior management’s HR values, a firm’s HR capabilities, and the successful implementation of a customer service strategy.

All Sessions in Track H...

Sun: 10:00 – 11:30
Session 1504: Strategy Process Routines and their Content Outcomes I.
Sun: 13:00 – 14:30
Session 1604: Strategy Process Routines and their Content Outcomes II
Sun: 15:00 – 16:30
Session 1704: Strategy Process Routines and their Content Outcomes III.
Mon: 11:15 – 12:30
Session 1053: Turnaround and Alignment
Mon: 15:30 – 16:45
Session 1051: Restructuring and Change
Mon: 17:00 – 18:15
Session 1054: Facing Competing Demands to Create Value
Tue: 11:15 – 12:30
Session 1050: Linking Middle Managers into the Strategy Process
Tue: 14:30 – 15:45
Session 1049: Strategic Decision Making
Wed: 10:00 – 11:15
Session 1052: Resources, Capabilities and Competitive Advantage

Strategic Management Society

Cologne Conference