A Two-sided Matching Approach for Partner Selection and Assessing Complementarities in Partners’ Attributes in Inter-firm Alliances


Strategic Management Journal

January 2016, vol. 37, n°1, pp.206-231

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Alliance formation, Partner selection, Matching models, Complementarities, Empirical methods

Strategic alliances are undertaken to create value through complementarities of resources and capabilities of the partner firms. We develop a matching framework to study strategic alliances, taking a market perspective that explicitly incorporates key features of transactions in strategic alliances: two sided decision making in voluntary collaboration; quest for complementarities between indivisible and heterogeneous partner attributes; and competition on each side for partners on the other side. We assess the relative performance of matching models and binary choice models when estimating parameters within simulations based on a known functional relationship. Within the context of research alliances in the bio-pharmaceutical industry, we hypothesize and find support using the matching model framework for complementarity in partner size, and in upstream research capabilities

Budgeting in times of economic crisis


Contemporary Accounting Research

Winter 2016, vol. 33, n°4, pp.1489–1517

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Budgeting, budgeting functions, economic crisis, crisis management

This paper examines how corporate reliance on budgets is affected by major changes in the economic environment. We combine survey and archival data from the economic crisis that began in 2008. The results indicate that, as a result of the economic crisis, budgeting became more important for planning and resource allocation but less important for performance evaluation. Additional evidence from interviews and data gathered in a focus group further illustrate these results and show the changes organizations have introduced to respond to the economic crisis. Taken together, and contrary to more general conclusions from the literature such as an overall increase or decrease in the importance of budgeting, we find that companies emphasize certain budgeting functions over others during economic crises

Category Spanning, Evaluation, and Performance: Revised Theory and Test on the Corporate Law Market


Academy of Management Journal

February 2016, vol. 59, n°1, pp.330-351

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Categoryn Evaluation, Law firms, Mediation, Performance

Studies suggest that category-spanning organizations receive lower evaluation and perform worse than organizations focused on a single category. We propose that (1) these effects are contingent on clients' theory of value and that as clients expect more sophisticated services, they tend to value category spanners more positively and (2) the evaluation of producers mediates the relationship between category spanning and performance. We test our hypotheses using original data on corporate legal services in three markets (London, New York City, and Paris) over the decade 2000-2010. We find that (1) category spanners receive a better evaluation, and more so when their categorical combination is more inclusive and (2) evaluation mediates significantly the relationship between category spanning and performance. This study enriches our understanding of how audiences apprehend a whole market category system and why organizations span categories

Classical Deviation: Organizational and Individual Status as Antecedents of Conformity


Academy of Management Journal

February 2016, vol. 59, n°1, pp.65-89

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Conformity, Deviance, Institutional theory, Status

Beside making organizations look like their peers through the adoption of similar attributes (which we call alignment), this paper highlights the fact that conformity also enables organizations to stand out by exhibiting highly salient attributes key to their field or industry (which we call conventionality). Building on the conformity and status literatures, and using the case of major U.S. symphony orchestras and the changes in their concert programing between 1879 and 1969, we hypothesize and find that middle-status organizations are more aligned, and middle-status individual leaders make more conventional choices than their low- and high-status peers. In addition, the extent to which middle-status leaders adopt conventional programming is moderated by the status of the organization and by its level of alignment. This paper offers a novel theory and operationalization of organizational conformity, and contributes to the literature on status effects, and more broadly to the understanding of the key issues of distinctiveness and conformity

Commercio Elettronico, Clausole Abusive e Lois De Police: Il Caso Expedia (Tribunal De Commerce De Paris, 7 Mai 2015)


Diritto del Commercio Internazionale

2016, vol. Anno XXX, n°Fasc. 2, pp.559-586

Departments: Tax & Law, GREGHEC (CNRS)

Do Ratings of Firms Converge? Implications for Managers, Investors and Strategy Researchers


Strategic Management Journal

aout 2016, vol. 37, n°8, pp.1597–1614

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Corporate social responsibility, Ratings, Corporate governance, Socially responsible investing, Performance measurement

Raters of firms play an important role in assessing domains ranging from sustainability to corporate governance to best places to work. Managers, investors, and scholars increasingly rely on these ratings to make strategic decisions, invest trillions of dollars in capital and study corporate social responsibility (CSR), guided by the implicit assumption that the ratings are valid. We document the surprising lack of agreement across social ratings from six well-established raters. These differences remain even when we adjust for explicit differences in the definition of CSR held by different raters, implying the ratings have low validity. Our results suggest that users of social ratings should exercise caution in interpreting their connection to actual CSR and that raters should conduct regular evaluations of their ratings

Does slack always affect resilience? A study of quasi-medium-sized Italian firms


Entrepreneurship and Regional Development

2016, vol. 28, n°9-10, pp.768-790

Departments: Strategy & Business Policy

Keywords: SMEs profitability, SMEs growth, crisis, organizational slack, Italian firms

Research on organizational slack, which has focused mainly on its effect in large, publicly traded firms and on transitional economies, has found that slack functions as a buffer in periods of crisis. However, little work has been done on the value of slack resources for smaller firms in mature industries. This study contributes to the resource-based literature with a quantitative analysis of a broad sample of Italian SMEs that operate in the traditional ‘Made in Italy’ industries. The purpose of the paper is to use longitudinal data from before and after the 2008 world financial crisis to determine whether slack resources drive growth and profitability in organizations with limited resources that operate in mature industries in periods of recession. The results of two-stage least squares regression indicate that, similar to their larger counterparts, small firms must secure high levels of profitability in order to achieve sound growth during recessions. Potential financial slack is equally important in driving profitability in these periods, although it is not related to higher growth. Investing in R&D does not affect small firms’ ability to be profitable and grow during recessions.

Employee Mobility and Organizational Outcomes: An Integrative Conceptual Framework and Research Agenda


Journal of Management

January 2016, vol. 42, n°1, pp.85-113

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Employee mobility, Human capital, Relational capital, Organizational outcomes

A large and growing literature spanning multiple fields has identified employee mobility as a critical influence on several important organizational outcomes. However, extant research on the topic is highly fragmented and lacks a unifying theoretical framework, impeding the development of a cumulative conceptually-integrated body of research. We seek to remedy this situation by undertaking a review of research on employee mobility and its organizational impacts, and casting it within a novel integrative conceptual framework. As a critical foundation for this framework, we highlight how the various organizational impacts of employee mobility are ultimately engendered by different dimensions of human and/or relational capital that are conveyed by mobile individuals. Building on this foundation, we describe how multi-level contextual factors – characterized as attributes of the employee, source and destination firms, and environmental conditions – may moderate the transfer and utilization of human and relational capital held by mobile individuals. Finally, we review how constraining factors, such as labor market imperfections on both demand and supply sides, can impede employee mobility, and also how alternative competing channels – for example, alliances, networks and geographic spillovers, and acquisitions – may be used for effectuating the same organizational impacts as mobility events. These constraints and competing channels are important because they circumscribe the conditions under which employee mobility can be a critical influence on organizational outcomes. We seek to provide a rich integrative theoretical understanding of employee mobility, and spur future research on important unanswered research questions

Logic combination and performance across occupational communities: The case of French film directors


Journal of Business Research

July 2016, vol. 69, n°7, pp.2371–2379

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Logic combination, Cinema, Occupational community, Cultural entrepreneur, France

This article analyzes the effects of logic combination on cultural entrepreneurs' performance in both their original (artistic) and new (business) occupational communities. An analysis of the impact of the director-producer logic combination on artistic and commercial performance in French cinema confirms an asymmetry in outcomes: (1) although performance in the original artistic community is impaired by repeated logic combination (receiving fewer awards), (2) performance in the new business community benefits from logic combination (increased box office returns) as long as directors remain close to the boundary separating their original and new occupational communities

Mandatory consumer arbitration in a transatlantic perspective: the US supreme court paves the (wrong) way


Revue de Droit des Affaires Internationales (RDAI) / International Business Law Journal (IBLJ)

2016, vol. 5, pp.519-536

Departments: Tax & Law, GREGHEC (CNRS)

Keywords: Arbitration; Comparative law; Consumer law; EU law; United States

Marketing as a Means to Transformative Social Conflict Resolution: Lessons from Transitioning War Economies and the Colombian Coffee Marketing System


Journal of Public Policy & Marketing

Fall 2016, vol. 35, n°2, pp.185-197

Departments: Marketing, GREGHEC (CNRS)

Keywords: Colombia, peace/war economy, social conflict, systemic analysis, transformation

Social conflicts are ubiquitous to the human condition and occur throughout markets, marketing processes, and marketing systems. When unchecked or unmitigated, social conflict can have devastating consequences for consumers, marketers, and societies, especially when conflict escalates to war. In this article, the authors offer a systemic analysis of the Colombian war economy, with its conflicted shadow and coping markets, to show how a growing network of fair-trade coffee actors has played a key role in transitioning the country’s war economy into a peace economy. They particularly draw attention to the sources of conflict in this market and highlight four transition mechanisms—i.e., empowerment, communication, community building and regulation—through which marketers can contribute to peacemaking and thus produce mutually beneficial outcomes for consumers and society. The article concludes with a discussion of implications for marketing theory, practice, and public policy

Nudges: Better choices ?


The Tocqueville Review / La revue Tocqueville

2016, vol. 37, n°1, pp.7-20

Departments: Tax & Law, GREGHEC (CNRS)

Performance Measurement in Global Governance: Ranking and the Politics of Variability


Accounting Organizations and Society

November 2016, vol. 55, pp.12-31

Departments: Accounting & Management Control, GREGHEC (CNRS)

Keywords: Ranking; Epistemic work; Professional vision; Commensuration; Performance measurement; Regulatory capitalism

The past thirty years have witnessed the spread of rankings, ratings and league tables as governance technologies which aim to regulate the provision of public goods by means of market pressures. This paper examines the process of company analysis underlying the production of a ranking known as the Access to Medicine Index. We conceptualize the Index as a “regulatory ranking” with the explicit mission of addressing a perceived regulatory gap and market failure: the lack of access to medicine in the Global South. The Index, which ranks the world's largest pharmaceutical companies with regards to their access to medicine policies and practices, aspires to help address the problem of access to medicine through stakeholder consultation, transparency and competition. This study unbundles the epistemic work underlying the performance measurement process leading to the creation of the Index. We trace how the goal of stakeholder consensus, the need to project objectivity and the aspiration to govern through competition shape analysts' epistemic work. We discuss how through notions such as “the good distribution” and “aspirational indicators”, performance measurement and ranking become entangled in a “politics of variability” whereby company data need to be variably interpreted in order to optimise the possibilities of intervening in companies through competitive pressures, while at the same time complying with the imperatives to remain in the space of perceived stakeholder consensus and to provide a faithful representation of companies performance to inform public debates. We reflect on the challenges posed by these analysis processes for the regulatory aspirations of the ranking

Taking a Second Look in a Warped Crystal Ball: Explaining the Accuracy of Revised Forecasts


Journal of Management Studies

December 2016, vol. 53, n°8, pp.1292-1319

Departments: Strategy & Business Policy, GREGHEC (CNRS)

Keywords: Forecasting, Syndication, Value-adding commitment, Venture capital

The fundamental questions we address are whether firms with a higher initial forecasting ability are able to accurately revise the exit forecasts of their investments; and how co-investment partners and value-adding commitment with their investment influence the main effect. We explore these questions with novel and unique data collected via mixed research methods on venture capital firms’ forecasts of 114 portfolio companies. We find that venture capital firms that are better at making initial forecasts are less effective in revising their forecasts. In addition, while the number of co-investment partners positively moderate this relationship, venture capital firms’ value-adding commitment moderates it negatively. Our findings contribute to the literature on organizational forecasting as well as inter-organizational knowledge transfer and knowledge creation. They also provide novel insights into venture capital literature and practice

The Effect of Electronic Word of Mouth on Sales: A Meta-Analytic Review of Platform, Product, and Metric Factors


Journal of Marketing Research

June 2016, vol. 53, n°3, pp.297-318

Departments: Marketing, GREGHEC (CNRS)

Keywords: Electronic word of mouth, Online platforms, Social media, eWOM metrics, Meta-analysis

The increasing amount of electronic word of mouth (eWOM) has significantly affected the way consumers make purchase decisions. Empirical studies have established an effect of eWOM on sales but disagree on which online platforms, products, and eWOM metrics moderate this effect. The authors conduct a meta-analysis of 1,532 effect sizes across 96 studies covering 40 platforms and 26 product categories. On average, eWOM is positively correlated with sales (.091), but its effectiveness differs across platform, product, and metric factors. For example, the effectiveness of eWOM on social media platforms is stronger when eWOM receivers can assess their own similarity to eWOM senders, whereas these homophily details do not influence the effectiveness of eWOM for e-commerce platforms. In addition, whereas eWOM has a stronger effect on sales for tangible goods new to the market, the product life cycle does not moderate the eWOM effectiveness for services. With respect to the eWOM metrics, eWOM volume has a stronger impact on sales than eWOM valence. In addition, negative eWOM does not always jeopardize sales, but high variability does

What determines crime rates? An empirical test of integrated economic and sociological theories of criminal behavior


The Social Science Journal

June 2016, vol. 53, n°2, pp.247-262

Departments: Management & Human Resources, GREGHEC (CNRS)

Keywords: Crime, Property crime, Violent crime, Deterrence, Integrated model

Research on crime has by no means reached a definitive conclusion on which factors are related to crime rates. We contribute to the crime literature by providing an integrated empirical model of economic and sociological theories of criminal behavior and by using a very comprehensive set of economic, social as well as demographic explanatory variables. We use panel data techniques to estimate this integrated crime model for property and violent crime using the entire population of all 100 counties in North Carolina for the years 2001–2005. Both fields contribute to the explanatory power of the integrated model. Our results support the economic explanation of crime with respect to the deterrent effect of the probabilities of arrest and imprisonment concerns, as well as the time allocation model of criminal activities. In contrast, the integrated model seems to reject the impact of the severity of punishment on crime levels. With respect to the sociological theories of crime, we find most support for the social disorganization theory and for the routine activity theory. Finally, we find differences between property and violent crimes, mostly explained by the sociological models.

You Can’t Bribe a Computer: Dealing with the Societal Challenge of Corruption Through ICT


MIS Quarterly

June 2016, vol. 40, n°2, pp.511-526

Departments: Information Systems and Operations Management, GREGHEC (CNRS)

Keywords: Corruption, e-govenrment, Institutions, ICT impact, Base corruption, Permeated corruption, Stakeholder service systems

Despite the influence of information and communication technologies (ICTs) on enhancing transparency and fairness, there is limited theoretical understanding of how ICT affects corruption. Adopting an institutional perspective, we conceptualize the mechanisms through which e-government influences corruption in a nation. Specifically, we theorize the relationship between e-government and corruption at two levels: (1) base corruption observed in national institutions (political, legal, and media institutions), and (2) permeated corruption in the national stakeholder service systems (business and citizen systems). Using panel data from 63 countries over a 4-year period, we test the direct and mediated effects of e-government on corruption in national institutions and stakeholder service systems, respectively. This exploratory study provides preliminary insights into the mechanisms through which corruption manifests in a nation and demonstrates how e-govenrment can be helpful in alleviating it. In addition, the study offers important implications that we believe will be instrumental in stimulating future research on the subject


Social Business & Base of the Pyramid

Social Business & Base of the Pyramid


John Wiley & Sons


Case studies

Staying West or Turning East? A New Greek Tragedy



This case invites participants to explore three strategic options that Athens has in the wake of renewed economic and political tensions within the EU and the reelection of Prime Minister Alexis Tsipras.
The first option is to rebuild stronger ties with the EU - an option that the United States, the world's first power, seems to privilege.
The second option is to look east, towards Moscow and/or even Beijing, in order to reduce the country's dependence on the EU.
The third option is to look for a third way by leveraging the country's unique assets and refining its true value proposition in the 21st century.
The case considers which of these options would put a definite end to the Greek tragedy.

Keywords: Greece, EU, business and government, shared value, geopolitics, EU debt crisis, reinvention, differentiation, creative destruction, strategic foresight, long, term strategies, prisoner's dilemma

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