Session 161

Demand-based Approaches to Strategy: The Role of Customers and Communities

Track E

Date: Tuesday, October 13, 2009


Time: 10:00 – 11:15


Room: Meeting Room 4

Session Chair:
Erwin Danneels, University of South Florida

Title: A Consumer Perspective on Horizontal Mergers and Acquisitions: How Corporate Associations Affect Post-Acquisition Performance


  • Chun-Ling Lee, National Sun Yat-Sen University
  • Cher-Min Fong, National Sun Yat-Sen University

Abstract: Prior research on mergers and acquisitions (M&As) has neglected customer reactions to them for a long time. In this article, we examine the effect of corporate associations of the acquiring company and the acquired company on consumer product responses to predict post-acquisition performance. We conducted three experiments in three different industries of horizontal M&A. The results fill the gap of current M&A literature.

Title: Competitive Advantage, Community-Based Strategies and Self-Enforcing Feedbacks: The Kiehl’s Case


  • Andrea Fosfuri, Bocconi University
  • Marco Giarratana, IE Business School
  • Esther Roca, Bocconi University

Abstract: This paper analyzes Kiehl’s competitive advantage through theoretical insights from community-based strategy, and explains how Kiehl’s value creation emerges from the specific interactions that the firm establishes with particular communities. A postmodern societal configuration structured around communities as identity providers is our starting point to interpret firms’ activities in general and Kiehl’s strategy specifically. This paper proposes a theoretical framework to understand competitive advantages derived from community-based interactions. With the Kiehl’s case, we describe the basic assumptions needed, the set of available strategies, the fit between different activities, and the potential threats.

Title: Open Innovation Model and Open Source Software: The Source of Positive Two-Way Feed-Backs


  • Marco Giarratana, IE Business School
  • Alessandra Luzzi, University Carlos III-Madrid

Abstract: This article investigates increasing returns in OSS in the form of two-way feedbacks between different product releases. Our aim is to provide first evidence of the ability of for-profit firms to create self-sustaining circles of positive externalities that could assure long-term sustainability of OSS. We find weak evidence of cross-fertilization between operating systems and applications and strong internal feedbacks in the two niches. We explore other potential sources of two-way feedbacks in the dynamic development of OSS. Namely: the strategy of hardware firms that generate OSS revenues from selling hardware complementors and the relation between for-profit firms and communities. We find support for the first and not for the latter conjecture, unless we restrict our sample to only firms that have relationships with open communities.

Title: The Effectiveness of Segmentation Strategies: A Dynamic Capabilities Framework


  • Daniel Schulze Lammers, University of St. Gallen
  • Peter Maas, University of St. Gallen

Abstract: We propose a dynamic capabilities framework for market segmentation strategies. We argue that market segmentation is an important capability of firms to explore new markets and exploit existing markets. Effective segmentation strategies require a set of structural and organizational capabilities that enable firms to implement market segmentation. We develop proposition of antecedent capabilities and structures a firm needs for market segmentation. We further argue how market segmentation is eventually linked to competitive advantage. The paper might be an inducement for further research into the market segmentation capability.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 256: Discipline Based Theories: What Do Theories of the Firm Say About Organizational Dynamics
Sun: 13:00 – 14:30
Session 257: Applying Theories: What Does Strategy & Organization Say About Health Care?
Sun: 15:00 – 16:30
Session 258: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 309: Competitive Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 159: Strategic Factor Markets: Antecedents, Consequences and Dynamics
Session 166: Competitive Strategy and the Business of Science
Mon: 15:45 – 17:00
Session 160: Emerging Strategies in Acquisition
Session 220: Contemporary Challenges to Organization Theory
Mon: 17:15 – 18:30
Session 157: Managerial Cognition and Dynamic Capabilities at the Crossroads: Current Issues and Novel Strands of Development
Session 222: Challenging Traditional Notions of Competitive Strategies and Competitive Advantage
Tue: 10:00 – 11:15
Session 161: Demand-based Approaches to Strategy: The Role of Customers and Communities
Session 163: Resources and Capabilities to Strengthen Alliance Formation and Execution
Tue: 11:30 – 12:45
Session 164: Competitive Strategy and Firm Performance
Session 165: Emerging Organizational Solutions for Exploration Strategies
Tue: 14:30 – 15:45
Session 158: Strategic Change and Dynamic Capabilities
Session 169: Unpacking Sources of Heterogeneity: Market Frictions, Firm Resources, Strategic Actions
Wed: 10:00 – 11:15
Session 216: Industry Evolution and Resource Architecture
Session 217: Designing Organizations to Sustain Performance
Wed: 11:30 – 12:45
Session 214: Managerial Capabilities and the Microfoundations of Strategy

Strategic Management Society

Washington DC