Abstract: This study proposes that cognitive congruence, defined as shared strategic schemas between alliance partners, can influence the creation and the success of strategic alliances. Using data from new product introductions in software companies, we find that cognitive congruence exerts a positive influence of the rate of a focal firm’s innovativeness. We also observe that this effect is amplified when there is a demonstrable complementarity between a firm and its alliance partners. Interestingly, we do not find any evidence suggesting that firms consider cognitive congruence as a significant antecedent criterion in alliance formation. Our findings hold potential implications for the strategic alliance and behavioral strategy literature.

Abstract: Schumpeterian market disequilibrium marked by entrepreneurial entry and incumbent exit has long held an important place in management literature. In these David versus Goliath narratives, extant literature has overwhelmingly painted David as the victor, despite incumbents’ obvious advantages in resources, experience, and market knowledge. The simple cork provides a fascinating case study of an industry that has survived and dominated for over five centuries as the stopper of choice. We propose to analyze the phenomenon of how a cork-stopper veteran has managed to escape disruption from alternative stoppers, some of which are superior to cork in key performance parameters. This study aims to contribute to the limited body of knowledge where the incumbent successfully challenges disruptive new technology.

Abstract: With this research we aim to enhance our understanding about how incumbents can explore emerging opportunities through business model innovation. Using a multiple-case, longitudinal research design spanning 2008 to 2014 we investigate exploration activities of the four largest German energy utilities in the emerging virtual power plant market. Based on the behavioral theory of the firm, we study how the cognitive and physical elements of an incumbent’s strategy can be changed and how these changes affect its business model innovation activities in the exploration process. Our preliminary findings suggest that the use of synergies and probing can lead to changing physical elements and primarily increase business model maturity. CEO change and structural separation can lead to changing cognitive elements and primarily increase business model sophistication.

Abstract: Foreign market operations are plagued by uncertainty. Hence, foreign managers’ ability to predict change is crucial for planning for growth and realizing strategies. While the ability to predict change has been a central concern in the fields of behavioral economics and behavioral strategy, there is still a lack of consensus as to how individuals’ past experiences can help predicting future change. We test this assumption by a longitudinal dataset of expatriates operating in the Chinese subsidiaries of Swedish MNCs. Specifically, we test their ability to forecast sales in nine different studies and find that length of stay in China and language skills increase rather than reducing managers’ forecasting errors. Network participation reduces forecasting errors for short timers, and industry volatility reduces errors for long timers.