Session 229

How Resources Change in Dynamic Situations

Track E

Date: Sunday, October 4, 2015

 

Time: 16:15 – 17:30

Paper

Room: Director's Row J


Session Chair:

  • Jamal Shamsie, Michigan State University

Title: A Demand-Based Perspective of Differentiation: Managing Brands as a Strategic Resource

Authors

  • Daniel Chaffin, University of Nebraska-Kearney
  • Jamal Shamsie, Michigan State University
  • Donald Conlon, Michigan State University

Abstract: Brands represent a strategic resource that meets the criteria that was advanced by Barney (1991). In this paper, we focus on the recreation or reintroduction of brands in the form of sequels in the U.S. motion picture industry. We show that although sequels need the same actors for sake of similarity and the same production companies for sake of consistency, the need for these tends to decrease with an increase in the years lapsed between successive films and with the number of sequels. Furthermore, the performance of sequels weakens if the years lapsed between films is higher, but strengthens with an increase in the number of sequels.

Title: Cross-Industry Competitive Dynamics: Challengers’ v.s. Incumbents’ Relative Capabilities and Performance Implications

Authors

  • Rui Yang, University of California-Riverside

Abstract: By testing a group of factors that explain the performance difference in a typical business context—a group of multi-business firms is attacked by one from outside incumbents’ primarily focused industry, this study develops a model of cross-industry competitive interaction among firms that are generally categorized in different industries. Such firms always share little market commonality and resource similarity (MC-RS) in business type, and therefore often fall out of the attention for competitive analysis by managers and discussion by strategy scholars. Drawing on competitive dynamics, this study addresses the gap by presenting evidence from a population of xx cross-industry interactions in xx industries over a xx-year period and suggests that two sets of factors, the relative capabilities between challengers and incumbents and the reactive capabilities of incumbents, define the cross-industry competitive landscape, delineate the shifting picture of industry boundaries as well as determine the consequential performance.

Title: Out with the Old, In with the New: The Impact of Divestitures on Performance

Authors

  • Elena Vidal, Baruch College
  • Will Mitchell, University of Toronto

Abstract: Studies of how business divestitures affect subsequent firm performance offer mixed results. This paper explores the way that firm strength, based on greater profitability, affects the relationship between divestitures and subsequent performance, along with the mechanisms by which divestitures free and invest resources. We find that divestitures help weak firms improve their profitability, while helping strong firms grow and avoid becoming acquisition targets. Examining the mechanisms shows that divesting firms tend to retain managerial capacity that they can focus on new opportunities, while strong divesting firms gain most in financial resources available for reinvestment. In turn, weak divesters are most acquisition active, yet strong divesters gain greatest growth from their acquisitions and have most resources to invest in marketing support for opportunities.

Title: The Dog That Didn't Bark: Long-term Strategies In Times of Recession

Authors

  • Caroline Flammer, Boston University
  • Ioannis Ioannou, London Business School

Abstract: We investigate how U.S companies adapted their investments in key strategic resources―employees, physical capital, innovation, and stakeholder relationships―during the Great Recession of 2007-2009. To obtain exogenous variation in the severity of the recession, we exploit the differential impact of the housing price collapse across U.S. regions, instrumenting the housing price drop with Saiz’ (2010) topological measure of housing supply elasticity. Our findings indicate that companies significantly laid off workers and cut capital expenditures. However, they did not cut investments in R&D and corporate social responsibility (CSR). This suggests that intangible resources such as R&D and CSR are instrumental in maintaining a sustainable competitive advantage. We further document that companies that sustained their R&D and CSR performed better once the economy recovered.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 28: The Latest and Greatest in Empirical Methods for Strategy Scholars
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Sun: 11:15 – 12:30
Session 30: Heterogeneity in Firms and Their Pre-entry Capabilities: Implications for Firm and Industry Evolution
Sun: 16:15 – 17:30
Session 229: How Resources Change in Dynamic Situations
Sun: 17:45 – 00:00
Session 313: Competitive Strategy Business Meeting
Mon: 08:00 – 09:15
Session 273: Complexity in Competition
Mon: 11:15 – 12:30
Session 244: Legitimacy, Stakeholders, and Competition
Mon: 13:45 – 15:00
Session 242: Value Creation in Buyers-Supplier Relationships and Ecosystems
Mon: 16:45 – 18:00
Session 238: Temporary and Long Term Competitive Advantage
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 230: Multi-Market Competition and Mutual Forbearance
Session 264: Emerging Technologies and Industries
Tue: 14:15 – 15:30
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 269: Exploration, Exploitation, and Competition
Tue: 17:30 – 18:45
Session 263: Developing a Value Creation Theory


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