Session 184

Value Creation Under Uncertainty

Track C

Date: Wednesday, October 14, 2009

 

Time: 11:30 – 12:45

Common Ground

Room: Meeting Room 7


Facilitator:
Michael G. Jacobides, London Business School

Title: Conflict of Interest: The Impact of Dual Agency on the Price and Speed of Residential Real Estate Transactions

Authors

  • Vrinda Kadiyali, Cornell University
  • Jeffrey Prince, Indiana University
  • Daniel H. Simon, Indiana University

Abstract: We study conflict of interest in dual agency, where the same agent/agency represents both the buyer and seller. Using residential real estate data, we test two two-sided hypotheses: (1) dual agency affects the sale price; (2) dual agency affects the time to sale. We find no effect of dual agency on average sale price. However, on a small percentage of deals, when an internal buyer with a high willingness-to-pay is available, agents strategically set higher list prices, and earn higher sale prices. We also find that dual agency deals conclude about seven percent faster than cross-agency deals. Therefore, we find little evidence that the conflict of interest, inherent in dual agency, leads to overall negative outcomes in the real estate market.

Title: Managing Stars: Incomplete Contracts and Dynamic Value Appropriation

Authors

  • Shad Morris, Brigham Young University
  • Janice Molloy, Michigan State University

Abstract: Despite the importance of star employees, there is little theory that addresses the management dilemmas arising with stars. Indeed, although stars make disproportionate contributions to firm performance it is not clear who appropriates this value. We address these gaps through application of incomplete contract theory. First, we lengthen the time horizon extant theory considers to include not only employment relationship formation but also re-contracting. Implications are discussed, including specification of how bargaining power is likely to shift over time from the star to the firm. Second, we expand the range of prescribed governance devices for stars to include policies that increase the stars’ costs of switching employers. Through these extensions a dynamic value appropriation policy is specified that optimizes knowledge generation and firm performance.

Title: Managing Strategic Priorities in Daily Management

Authors

  • Barry Witcher, University of East Anglia
  • Vinh Chau, University of Kent

Abstract: Rumelt commented in December 2008 that the present economic downturn calls for doing things differently, in a way that denotes such a flexible system deemed necessary for effective management and organizing. For this, the paper makes a distinction between strategy implementation and strategy execution, which is rarely covered in the literature. Implementation concerns putting in place organizing structures and systems, including mid-term strategic planning, while execution concerns ‘strategic performance management’ – the overview, management, and delivery of an executive’s key strategic priorities in daily management. The paper proposes a new conceptual framework on how an executive can manage everyone’s participation in strategy, and to understand how its strategy is being managed. It draws on a framework used popularly by the Japanese, called hoshin kanri.

Title: Shaping Responsible Supply Chains: From Cost Benefits to Value Creation

Authors

  • Clodia Vurro, Bocconi University
  • Angeloantonio Russo, LUM Jean Monnet University
  • Francesco Perrini, Bocconi University

Abstract: Paralleling the globalization of production activities, new supply chain management models are emerging, differing on the extent to which social and environmental issues and concerns are integrated into processes and relationships. Despite a growing interest in investigating relational approaches to supply chain management based on collaboration, long-term partnerships and transparency among partners their performance consequences are still open to debate. Relying on a mixed method approach, our study both investigates qualitatively the changes occurring in the shift from cost-reduction strategies to value-driven approaches and test their impact on firm performance. Results show the specificities of alternative supply-chain management models, the drivers of CSR integration and the critical dimensions hindering the ability of firms to manage differently stakeholder relations along the chain.

Title: Strategy as a Value Creation Process in an Evolving World: Towards a Taxonomy

Authors

  • Roy Hamans, Cambridge Executive Partners

Abstract: Rather than thinking about strategy as value created for a certain place and point in time, this work takes the perspective of strategy as a recurrent process creating value in an evolving world. Following this perspective, the aim of this work is to pinpoint what are some of the elementary aspects of strategy and the evolving world, as part of a wider inquiry guiding organisations how strategy could be made interrelated to an evolving world. As such this work strives towards a taxonomy of an evolving world and of strategy, and suggests two basic categorizations. Based on a synthesis of these two categorizations, some of the basic interrelations are illustrated and a brief overview of a process guiding strategy in an evolving world is outlined.

Title: The Effects of Process Orientation on Customer Satisfaction, Product Quality and Time-Based Performance

Authors

  • Markus Kohlbacher, Graz University of Technology

Abstract: Does process orientation matter? Several organizations choose to be process-oriented. They focus on business processes instead of emphasizing functional structures. This paper empirically explores the relationship between process orientation (PO) and non-financial firm performance. Process orientation is measured by means of ten dimensions. Firm performance is measured by customer satisfaction, product quality, time to market, delivery time and delivery reliability. It is also examined if firm size and manufacturing process type moderate the investigated relationships. The paper uses a sample of Austrian firms operating in metal and machinery industry. Preliminary findings indicate that PO is related positively to all aforementioned performance dimensions.

All Sessions in Track C...

Mon: 12:45 – 14:00
Session 173: Proactive Strategies to Manage an Uncertain World
Session 181: Sustaining Innovation
Mon: 15:45 – 17:00
Session 174: The Effect of Environmental Conditions on Organizational Reconfiguration
Session 183: Managing Collective Emotions under Strategic Uncertainty
Mon: 17:15 – 18:30
Session 175: The Influence of Uncertainty on Investment Behaviour of Firms
Session 185: New Forms and Governance Modes for Coping with Uncertainty
Tue: 10:00 – 11:15
Session 176: The Influence of External Uncertainty on Capability Development
Tue: 11:30 – 12:45
Session 177: How to Make the Right Decisions During Uncertain Times?
Tue: 14:30 – 15:45
Session 178: Does the Past Predict Future Exploratory or Exploitative Innovative Behaviour?
Wed: 10:00 – 11:15
Session 179: Environmental Dynamism and Firm Behavior
Session 182: Cognitive Processs under Uncertainty
Wed: 11:30 – 12:45
Session 180: The Dynamics of Top Management Team in Achieving Long Term Performance
Session 184: Value Creation Under Uncertainty


Strategic Management Society

Washington DC