Session Details: Session 1103

Social and Human Capital

Track F

Date: Tuesday, October 14, 2008

 

Time: 11:15 – 12:30

Common Ground

Room: Salon 4


Facilitator:
Anja Tuschke, University of Munich

Title: Board of Directors Strategic Involvement: Incorporating Board's Characteristics and its Performance Feedback Gaps

Authors

  • Chanan Ben Oz, Technion-Israel Institute of Technology

Abstract: A major concern of public and business policy makers is how to enhance the board of directors' strategic involvement. Previous studies have focused mainly on board characteristics supported by upper echelon and agency perspectives. This study proposes the adoption of a new theoretical lens, learning from performance feedback gaps. We extend the gaps notion, differences between current performances and aspirations level, by highlighting the importance of long-term goals. Then, based on 216 board members representing 111 Israeli early stage high tech firms, the findings reveal that enhanced boards' strategic involvement is affected by: firstly, higher performance feedback gaps. Secondly, it is affected by the integrated impact of board characteristics and performance feedback gaps; and the latter's contribution is about four times higher than the former.

Title: Diversity of Management Teams: A Competence-based Driver of Un-locking Organisations

Authors

  • Michael Huelsmann, Jacobs University Bremen
  • Meike Tilebein, European Business School-EBS

Abstract: Due to challenges of a world of variety and change strategic management has to face the risk of “locked organisations”. This phenomenon describes the problem of an insufficient decision-making based on limited capabilities and capacities for accessing, acquiring, and processing knowledge and information, which are inadequately confronted with increasing and diverging environmental demands. To avoid becoming a “locked organisation” it is necessary for the strategic management to continuously sustain a certain level of organizational flexibility. The paper intends to discuss the impact the diversity of management teams as a competence-based driver might have on organisational flexibility. As empirical studies on this topic provide contradictory results, we propose to apply agent-based simulation to reveal the role of diversity in coping with altering and volatile environmental requirements.

Title: Long-Term Leadership Continuity in Acquired Firms

Authors

  • Jeffrey Krug, Bloomsburg University of Pennsylvania
  • Walt Shill, Accenture

Abstract: This paper discusses the preliminary results of a ten-year research initiative undertaken by the first author and supported by the managing director of the consulting practice of a leading management consulting firm (the second author). The objective of this paper is to present the preliminary findings from the first author’s database, which includes more than 1,000 firms and follows the careers of more than 23,000 executives during a 17-year period surrounding the target’s acquisition. We then formulate hypotheses for future testing that examine the long-term effects of acquisitions on the target company’s top management team. Using agency theory and the concept of managerial discretion, we explore the relationship between turnover among the target’s incumbent executives shortly after the acquisition and turnover among executives hired several years later.

Title: On the Distribution of Corporate Social Capital

Authors

  • Martin Papadatos, University of Cambridge
  • Paul Kattuman, University of Cambridge

Abstract: Based on the social network of corporate governance, we measure social capital in the UK corporate sector. The empirical context is the company-board induced social network, comprising over 100,000 firms and over 800,000 directors, over the 10 year period to 2004. We use Google's PageRank algorithm to estimate social capital at the levels of individual directors and company boards. We find that the distribution of social capital among company boards is not much more concentrated than its distribution among directors. The explanation is that the distribution of social capital within boards is very unequal - Boards typically have only a few high social capital directors. A reason for this is the evident redundancy in the social capital of individual directors when they come together in a Board level team.

Title: Social Capital and Knowledge Quality within Partnership Networks

Authors

  • Jamie Collins, Baylor University

Abstract: A common theme in the strategy literature is the importance of knowledge and the key role that knowledge-based resources play in creating and sustaining competitive advantage. Within the knowledge-based view of the firm, the need for firms to access knowledge from external sources is widely recognized (Anand et al., 2002). In this study we examine the effect of executives’ social capital and firm-level social capital on the quality of knowledge available to the firm via its partnership network.

Title: The Effect of Board Capital on Firm Performance

Authors

  • Katalin Takacs Haynes, University of Delaware
  • Brian Boyd, City University of Hong Kong

Abstract: The board’s role in ensuring firm performance is a key topic in strategic management research. However, efforts to link board characteristics directly to performance have yielded inconclusive results. These results are not surprising, as directors have multiple roles, and are studied from multiple theoretical frameworks. Our paper offers an integrative perspective via two distinct contributions: First, we develop a multi-indicator factor model of board capital. This model includes tests of dimensionality, formative versus reflective indicators, and the possibility of a second order factor. Second, we decompose performance into two elements: Upside potential and downside risk. We test hypotheses using a sample of 250 S&P 500 firms.

All Sessions in Track F...

Mon: 11:15 – 12:30
Session 1089: Make, Ally or Buy
Session 1096: Executive Compensation
Mon: 15:30 – 16:45
Session 1086: Alternative Views of Value Creation
Session 1090: CEO Pay
Session 1107: Executive and External Forces in Strategy
Mon: 17:00 – 18:15
Session 1091: Impression Management
Session 1098: Social Networks
Tue: 11:15 – 12:30
Session 1093: Succesion and Team Dynamics
Session 1103: Social and Human Capital
Tue: 14:30 – 15:45
Session 1095: Diversification
Session 1105: Governance Perspectives
Wed: 10:00 – 11:15
Session 1104: Managing Alliance Relationships
Session 1106: New Corporate Strategy Perspectives
Wed: 11:30 – 12:45
Session 1088: Acquisitive Growth Strategies
Session 1092: Dynamic Strategies and Resources


Strategic Management Society

Cologne Conference