Articles

Alliance Formation and Firm Value

G. PACHECO DE ALMEIDA, L. CABRAL

Management Science

Forthcoming

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: firm alliances, matching, competitive advantage


We consider the formation of alliances that potentially create complementarities, that is, when the value function is super-modular in firm resources. We show that, in a frictionless world where information is perfect and managers optimize, firm alliances disproportionately increase the value of high-resource-level firms, resulting in higher variance and higher skewness of the distribution of firm value; moreover, higher-value alliances are subject to regression to the mean at a faster rate. These effects are magnified if the degree of complementarities is endogenously determined by each firm’s investment. We also consider alliances where matching and/or information about firm resources are imperfect, and show that complementarities are a necessary but not sufficient condition for alliances to cause an increase in firm value; and that complementarities are neither a necessary nor a sufficient condition for alliances to be correlated with higher firm value

Bouncing Back: Building Resilience Through Social and Environmental Practices in the Context of the 2008 Global Financial Crisis

M. DESJARDINE, P. BANSAL, Y. YANG

Journal of Management

Forthcoming

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: organizational resilience; social and environmental practices; strategic and tactical practices; global financial crisis; survival analysis

http://journals.sagepub.com/doi/abs/10.1177/0149206317708854


Even though organizational researchers have acknowledged the role of social and environmental business practices in contributing to organizational resilience, this work remains scarce, possibly because of the difficulties in measuring organizational resilience. In this paper, we aim to partly remedy this issue by measuring two ways in which organizational resilience manifests through organizational outcomes in a generalized environmental disturbance—namely, severity of loss, which captures the stability dimension of resilience, and time to recovery, which captures the flexibility dimension. By isolating these two variables, we can then theorize the types of social and environmental practices that contribute to resilience. Specifically, we argue that strategic social and environmental practices contribute more to organizational resilience than do tactical social and environmental practices. We test our theory by analyzing the responses of 963 U.S.-based firms to the global financial crisis and find evidence that support our hypotheses

Categorizing Institutional Logics, Institutionalizing Categories: A Review of Two Literatures

R. DURAND, P. THORNTON

Academy of Management Annals

Forthcoming

Departments: Strategy & Business Policy, GREGHEC (CNRS)

https://journals.aom.org/doi/pdf/10.5465/annals.2016.0089


This review assembles two highly referenced streams of research in organization and management studies over the past decade: institutional logics and categories. We present the gist of each literature focusing on the interaction within and between organizations vis-à-vis the institutional logics and category systems that condition behavior. Then, we suggest that both streams have compatible assumptions that warrant further integration, and suggest opportunities for future research stemming from (1) complementarities related to inter- and intra-audience variance, formation and recombination of logics and categories, and actors’ identity and (2) differences related to theory level of analysis, incorporation of conflict, and methods of analysis. Integration can lead to better specified mechanisms, processes, and contexts important to improving accuracy and development of these research streams

Do stakeholder orientation and environmental pro-activity impact firm profitability?

F. BRULHART, S. GHERRA, B. QUELIN

Journal of Business Ethics

Forthcoming

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Environmental proactivity, Firm profitability, Resource-based theory, Stakeholder orientation, Stakeholder theory

https://link.springer.com/content/pdf/10.1007%2Fs10551-017-3732-y.pdf


The impact of socially responsible corporate behavior on economic performance is a major preoccupation of managers today. This article explores the links between narrowly defined constructs: stakeholder orientation, environmental proactivity and profitability, from the perspectives of stakeholder theory and resource-based theory. We collected data on the food and beverage, and household and personal products industries. Using structural equation modeling, this paper makes two contributions. We found a negative link between companies simply having a higher stakeholder orientation and profitability. Importantly, however, environmental proactivity not only had a positive impact on profitability, but also appeared to mediate the relationship between stakeholder orientation and profitability. In other words, if a company is more environmentally proactive, it will be more attentive to a broad array of stakeholders, and this will in turn contribute positively to profitability

Family Firms in the Ownership Network: Clustering, Bridging, and Embeddedness

D. MANI, R. DURAND

Entrepreneurship: Theory and Practice

Forthcoming

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: family firms, community, embeddedness, network

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3164896


In this paper, we investigate family firms’ position in the intercorporate ownership network. Rooting our predictions in the Behavioral Agency Model and a Network analytical framework, we predict and find that family involvement decreases the likelihood of business group affiliation and of cross-group ties leading to a lower embeddedness within the overall network. We predict and find the opposite effect for community involvement. We use the complete longitudinal dataset of publicly listed firms’ corporate ownership ties in India (2001, 2005, and 2009). Theoretical and substantive contributions are to research on family businesses and to research on interorganizational networks


JavaScriptSettings