Session Details: Session 1068

Signals and Firm Reputation

Track E

Date: Wednesday, October 15, 2008

 

Time: 11:30 – 12:45

Paper

Room: Salon 17


Session Chair:
Todd Alessandri, Northeastern University

Title: Avoiding Competitors’ Strategic Stakes: A Study of the Deterrence Effects of Patent Re-Examination Certificates

Authors

  • PuayKhoon Toh, University of Texas at Austin
  • Gavin Clarkson, University of Michigan

Abstract: We examine the deterrence effects of signals of competitors’ strategic stakes in technological spaces. Using the context of patent re-examinations, we separate the deterrence signals from the confounding effect of revelation of information, and show that these signals within a technological space induce firms to subsequently shift away their inventive efforts from that space. We propose two mechanisms underlying this effect – timing advantage and active defence – and accordingly show that the main effect is accentuated when competitors have strong downstream and litigation capabilities. Through our findings, we highlight that uniqueness of resources may arise not only from hiding resources from competitors, but also from demonstrating it to competitors under some circumstances. Other implications for firm search and RBV are discussed.

Title: Corporate Reputation Persistence in Firms

Authors

  • Sylvia Flatt, San Francisco State University
  • Stanley Kowalczyk, San Francisco State University

Abstract: Research suggests that firms experience reputation persistence, where a favorable or unfavorable reputation tends to follow the firm into the future. This paper focuses on identifying the conditions that promote reputation persistence and the variables that may help a firm to change its reputation. Based on a sample of 103 firms, where we predict future reputation based on prior reputation over a three year period, we confirm the presence of reputation persistence. However this persistence diminishes over time while the influence of financial performance increases. We also found that the amount of reputation change tends to be less for firms with firms with higher reputations and greater reputation change tended to occur to firms with stronger cultures and higher financial performance.

Title: Knowledge In, Knowledge Out: Environmental Communication and Reputation Advantage

Authors

  • Deborah Philippe, HEC-Lausanne
  • Rodolphe Durand, HEC-Paris

Abstract: Drawing on neo-institutional and signal theories, we hypothesize that corporate environmental disclosures constitute knowledge signals that have differentiated impacts on firm reputation depending on the nature and visibility of the signal and the firm’s past reputation. Data from disclosures of 90 U.S. firms over four years support these hypotheses. Specifically, conform knowledge signals enhance reputation, whereas discrepant ones reduce it, and the presence of prominent conform signals positively moderates the negative impact of discrepant disclosures. Eventually, though prominent conform signals indifferently enhance reputation, the impact of buried conform signals changes direction depending on prior levels of reputation, to the advantage of higher reputation firms.

Title: Sunk Cost Commitments and Market Intelligence

Authors

  • Hans Eibe Sørensen, University of Southern Denmark

Abstract: This paper extends the recent debate in the strategic management literature on how market orientation shape firm performance. In particular, we link the market intelligence acquisition process to the resource accumulation process. Using data from 320 manufacturing firms, we investigate the direct effects of sunk costs, specialized assets, customer orientation and competitor orientation on firm performance. We also investigate possible moderating and mediating effects of customer orientation and competitor orientation on the relationship between sunk costs and specialized assets and firm performance.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 1501: Exploration Strategies: Current Research and Future Content and Methodological Challenges
Sun: 13:00 – 14:30
Session 1601: Organizational Capabilities and Competitive Advantage: Where Do We Go From Here?
Sun: 15:00 – 16:30
Session 1701: Using Research Centers to Foster ABC Collaboration
Mon: 11:15 – 12:30
Session 1067: The Upside of Financial Investments
Session 1072: Lessons from Industry Cases
Mon: 15:30 – 16:45
Session 1073: Learning and Competitive Dynamics
Session 1074: Configurations and Performance
Session 1076: The Knowledge-Based View in New Arenas
Mon: 17:00 – 18:15
Session 1060: Value Creation and Appropriation: Perspectives From the Resource-Based View, Property Rights and Incomplete Contracting
Session 1062: Mastering Alliance Capability
Session 1069: Leveraging and Repositioning Resources
Tue: 11:15 – 12:30
Session 1059: Networks and Social Capital
Session 1070: Performance and the Competitive Arena
Tue: 14:30 – 15:45
Session 1063: Topics on Competitive Dynamics
Session 1066: Managing and Environmental Stewardship
Session 1075: Strategic Decision Making
Wed: 10:00 – 11:15
Session 1065: Managing Stakeholder Networks and External Communication
Session 1071: Technology, Innovation and Competitive Advantage
Wed: 11:30 – 12:45
Session 1064: Exploring Dynamic Capabilities
Session 1068: Signals and Firm Reputation


Strategic Management Society

Cologne Conference