Session Details: Session 1107

Executive and External Forces in Strategy

Track F

Date: Monday, October 13, 2008

 

Time: 15:30 – 16:45

Paper

Room: Salon 21


Session Chair:
TBD

Title: Adherence to Acquisition Strategy: Does it Pay-off? Do Markets Notice?

Authors

  • Nir Brueller, Tel Aviv University

Abstract: This research aims at studying acquirers' adherence to acquisition strategies, the resulting post-merger accounting-based performance of acquirers, and the reaction of financial markets to the announcements of acquisitions. Organizational learning and routine based perspectives predict that the organizational characteristics of acquired targets impact post-acquisition performance. A sample of 95 acquisitions in ICT (Information and Communications Technologies) industries conducted during the second half of the 1990's serves to analyze those relationships using accounting-based performance measures in conjunction with event-study methodology. The findings confirm the hypothesized relationship between acquisition characteristics and accounting-based performance. In contrast, in line with previous research, financial markets' immediate responses, as indicated by short term acquirers' abnormal returns, fail to reflect such a relationship.

Title: The Impact of CEO Tenure on Exploitation and Exploration: A Longitudinal Modeling

Authors

  • Zeki Simsek, Clemson University
  • David Souder, University of Connecticut

Abstract: This paper brings together two research streams to explain how a firm’s pursuit of exploitation and exploration changes over the course of a CEO’s tenure. Existing literature on exploitation and exploration stresses the importance of responding to the competitive external environment, and we enrich this model by adding a variable that is dynamic within the firm, CEO tenure. Our contributions help resolve the contrast between the upper-echelons theory that long-tenured executives are a source of complacency and other deleterious firm outcomes, and the learning-based perspective that points to the value of accumulated experience over time. We also provide insight into one condition – intermediate CEO tenure – that enables firms to achieve the elusive value of ambidexterity, i.e., high levels of both exploitation and exploration.

Title: The Social Responsibility of Multinational Companies: The Effect of Stakeholder Pressures on Affiliated Firms' Social Behavior

Authors

  • Josep Antoni Tribó, Carlos III University of Madrid
  • Jordi Surroca, University of Groningen

Abstract: This study examines the influence of increasing pressure, from stakeholders in multinational enterprises, on the corporate social responsibility of non-subsidiary companies in which they have stake holdings. In addition, we address the impact of these affiliated firms’ social and environmental behavior on the financial performance of the MNC as a whole. We posit that when stakeholder pressure to improve an MNC’s social responsibility is high, the multinational can then use its influence to outsource some irresponsible practices to affiliate firms. By adopting this strategy, the MNC appears responsible and, at the same time, ensures its financial performance. We demonstrate our theoretical contention by using a database comprising 109 MNCs, from 18 countries.

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