Session 267

Healthcare Industry Dynamics, Relationships, and Activities

Track E

Date: Tuesday, October 6, 2015

Track F

Time: 14:15 – 15:30

Paper

Room: Governor's Square 15


Session Chair:

  • Cynthia E Devers, Texas A&M University

Title: Agglomeration Externalities and Common Ownership: Evidence from Hospital Industry

Authors

  • Joonmahn Lee, Purdue University
  • Brian McCann, Vanderbilt University

Abstract: We argue that understanding the costs and benefits of geographic co-location would be increased with a deeper investigation of how agglomeration externalities differ depending on whether those externalities are generated by rival or sister (commonly-owned) establishments. Beginning with a recognition that the specific types of externalities vary by industry, we suggest that co-location in our context of the US hospital industry potentially generates negative competitive effects but positive coordination and spillover benefits. We explain how each of these effects varies across rival and sister establishments, leading us to hypothesize different net effects for each. Moreover, we explain how moderating influences also vary across rival and sister establishments. Our empirical analyses investigate the profitability of a panel of over 4,000 US hospitals.

Title: Motivation, Organizational Structure, and Cost Control in Primary Medical Care

Authors

  • Ryan Cooper, University of Maryland, College Park

Abstract: This project examines the interaction of motivation and organizational structure during a period of change, exploring the questions: How does organizational structure influence agents’ responsiveness to incentives? and What can managers do to reinforce financial incentives in a changing environment where other motivations play a significant role in determining behavior? Using data from a Medicare HMO, I find that treatment decisions of physicians in private practice are, on average, responsive to cost-control incentives, while those of physicians in integrated groups are not. The reason for this is determined to do both with differences in altruistic preferences between physicians in each group type and with group norms and attention activities that private practice groups engage in to influence physician behavior.

Title: Spatial and Strategic Determinants of Acquisition Target Selection

Authors

  • Gorkem Aksaray, Emory University

Abstract: This study explores the acquisitions of cardiac physician practices by multihospital healthcare organizations in the Atlanta Metropolitan Statistical Area (MSA). The standard large sample studies focus on location, quality and competition in predicting the attractiveness of targets. However, as the geographical scope narrows, strategic considerations of individual players may become the dominant factor rather than the crude measures of attractiveness. We ask the question whether the effect of standard factors on the likelihood of being acquired diminishes in the face of strong strategic idiosyncrasies. The results show that, despite being confounded by the strategic idiosyncrasies, intrinsic attractiveness of targets and their locations stay empirically relevant at the micro-geographic level.

Title: When Good is Good Enough: Threshold Effects in the Context of Within-Firm Multiple Reputations

Authors

  • Daniel Gamache, University of Georgia
  • Cynthia E Devers, Texas A&M University
  • Da Huo, Michigan State University
  • Yuri Mishina, Imperial College London
  • Matthew Weddell, Michigan State University

Abstract: Research has shown that firms with positive reputations can reap a number of benefits including the ability to charge price premiums and generate greater revenue. Although it is widely acknowledged that firms have multiple reputations for different attributes, research in this area has been very limited. This paper provides a more complete theoretical and empirical understanding of the interplay among multiple-attribute within-firm reputations. Specifically, we examine how multiple attribute-specific reputations individually and jointly influence firms’ ability to accrue financial benefits. We have compiled a unique dataset containing data from over 3,000 U.S. hospitals allowing us to explore how a specific reputation for one particular medical specialty influences the fees hospitals can charge for procedures within that and other unrelated domains.

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

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts


Strategic Management Society

Denver