Session 131

Managing External Relationships: Perception, Judgement and Action

Track B

Date: Monday, October 12, 2009

 

Time: 15:45 – 17:00

Paper

Room: Meeting Room 14


Session Chair:
Zeki Simsek, Clemson University

Title: Alliance Portfolio Appropriateness: Origins and Implications for Firm Performance

Authors

  • Smriti Prabhakar, University of Connecticut
  • Zeki Simsek, Clemson University
  • Greg Reilly, University of Connecticut

Abstract: We build and test a model of an appropriate alliance portfolio elaborating its origins and implications for firm performance. An alliance portfolio is appropriate to the extent it complements the focal firm’s strategy by providing the firm with the needed resources and capabilities to successfully execute its strategy. In particular, drawing on the structural embeddedness perspective we identify properties of the top management team network that critically influence the firm’s ability to develop an appropriate alliance portfolio. Further, we argue that while portfolio appropriateness might impart beneficial influences on firm performance, it’s shaping influence on performance is critically conditioned by the level of dynamism in the environment. Our preliminary analyses, using multi-source firm-level data, show support for the relationships specified in our model.

Title: An Empirical Examination of the Influence of Stock Market Analyst Forecasts on Executive Behavior

Authors

  • Mark Washburn, California State University, Long Beach

Abstract: Relationships between managers who represent firms and the greater external market are partially moderated by the insights and endorsements of industry experts such as stock market analysts. This study utilizes target-based behavioral theory to examine how external analyst forecasts can influence managerial behavior. I hypothesize that as actual earnings per share (EPS) deviates from forecasted EPS, the likelihood that managers will take certain to influence analysts in the future will increase. Investigated actions include issuing their own forecast, forecast range, or commenting on existing analyst forecasts. Contrary to my hypothesis empirical findings suggest managers avoid behaviors when performance differs from forecasts. These effects persist after controlling earnings management, institutional ownership, and other factors. Implications of analyst forecasts on manager behavior are discussed.

Title: Does Performance Feedback Shape Risk Management in Mergers and Acquisitions?

Authors

  • Steven Dionne, Georgia State University
  • Duncan Angwin, Lancaster University

Abstract: Using research on experiential learning in organizations, this study examines whether performance feedback impacts the strategies used to manage risk in mergers and acquisitions across a broad sample of transactions completed from 1993 through 2004. Although research on learning has focused on the effect of performance feedback on persistence, the effect of such learning on risk behavior in acquisitions has not been examined. The results support our predictions: (1) performance feedback is negatively related to risk management, including the likelihood of adopting contingent payments and contractual devices; and (2) judgments of similarity moderate the observed impact of feedback on risk management in acquisitions.

Title: Management of Alliances: Performance Effects of Project Managers’ Participation

Authors

  • Ricarda Bouncken, University of Bayreuth
  • William Lekse, University of Michigan-Dearborn

Abstract: Research on alliances has largely neglected the people who bring the alliance into life and to a success. Project managers are strong but neglected drivers of alliances performance. This study empirically explores the performance effects through participation of project managers in alliances. Specifically, we investigate in two classes of effects; primary and secondary effects. Primary effects relate to the project management style followed in the alliance. Secondary effects are the core of alliance performance. We extend the investigation of participation into the affects of exogenous and endogenous uncertainties finding that technology uncertainty has a positive relation to a more social project management style. Through the project management styles, we found statistically significant implications for our three constructs of alliance performance: relational, innovation, and project management.

All Sessions in Track B...

Mon: 12:45 – 14:00
Session 123: The Configuration of Alliance Portfolios: Antecedents and Consequences
Mon: 15:45 – 17:00
Session 131: Managing External Relationships: Perception, Judgement and Action
Session 132: Uncertainty and the Leveraging of Relational Mechanisms in Alliances
Mon: 17:15 – 18:30
Session 126: Getting It Right: Buyer-Supplier Relationships
Tue: 10:00 – 11:15
Session 124: License to Deal: Technology Licensing, Innovation, and Corporate Investment
Tue: 11:30 – 12:45
Session 127: Law and Order: Alliance Governance Decisions
Session 134: Organizational Design and Networking Strategies under Uncertainty
Tue: 14:30 – 15:45
Session 128: Is He The One? Partner Selection and Tie Formation
Session 133: The Dynamics of Interorganizational Networks and Their Performance Implications
Wed: 10:00 – 11:15
Session 129: Putting Things in Context: Competition and Network Dynamics
Wed: 11:30 – 12:45
Session 130: Alliances, Knowledge Transfer, and Performance
Session 135: The Good, the Bad and the Not so Bad: Enhancing Performance by Discerning External Relationships


Strategic Management Society

Washington DC