Session 83

Behavioral Strategy at the Firm Level

Track P

Date: Monday, October 5, 2015


Time: 08:00 – 09:15

Common Ground

Room: Plaza Court 3


  • Beverly Tyler, North Carolina State University

Title: Determinants of Performance in Rare Strategic Events


  • Kristina Vaarst Andersen, Copenhagen Business School
  • Karin Beukel, University of Copenhagen

Abstract: The paper develops and tests a theoretical framework explaining how emotions and learning affect outcomes of rare strategic events, namely Intellectual Property litigations. We investigate how organizations’ negative emotions influence performance outcome in IP litigations negatively. Though cumulative learning in rare strategic events is scarce, and cannot be understood through the standard framework of routines and capability development, we argue that firms may learn from rare events, and propose that learning moderates the negative effect of emotions. We test this utilizing data on all publically available IP litigation cases in China from 2001 to 2009 (n=13,030). We find that when organizations undergo emotional negative stress they lose IP litigations more often, but development of roadmaps though past successes moderate the negative effects from emotional distress.

Title: Do Different Marketing Practices Require Different Frames of Reference? An Exploratory Study


  • Allam Abu Farha, Qatar University

Abstract: The literature argues that management perception affects strategic choices; however, perception effect on marketing strategy is missing. Accordingly, this paper seeks to identify how management perception fit with the choice of marketing practice. A model was developed and tested using survey methodology based on Shrivastava & Mitroff’s frame of reference typology, and the Contemporary Marketing Group classification of marketing practices. Data was analyzed using the Partial Least Square (PLS) approach. The results indicate the existence of certain coherence between the variables. The attempt of adding FoR dimension to contemporary marketing practice framework can broaden our understanding of strategy formulation, and would help managers to carefully examine the internal logic of their marketing-related profiling.

Title: Learning from Performance Feedback in Environmental Organizations: The Moderating Role of External Social Cues


  • Horacio Rousseau, IESE Business School
  • Pascual Berrone, IESE Business School

Abstract: This paper explores how nonprofit organizations respond to performance feedback and how this effect is moderated by external social cues from the communities in which the nonprofit operates. Using data from 247 environmental organizations –nonprofits that actively campaign to change social behavior in order to conserve and protect nature– we found that environmental nonprofits have a low ability to change as a response to poor performance, but they do invest in resource-generating activities when performing above their aspiration level. We also find that external social cues (pollution increase and regulatory stringency) moderate the impact of both high and low performance in both advertising and fundraising intensity. Our work therefore contributes to the literature by empirically linking the external social environment with internal decision making processes.

Title: Organizational Attention, Environmental Shifts, and Strategic Action Choices


  • Mirjam Goudsmit, University of New South Wales
  • George Shinkle, University of New South Wales

Abstract: Why does strategic response behavior vary in shifting fields? As industry and environment boundaries transform and blur, strategy scope may expand for some firms but not for others. This research examines differences in decisions on the scope of strategic action choices to environmental shifts. We posit that environmental attention pattern differences help explain strategy differences between firms. Building on the attention-based view of the firm, we develop a model that theorizes relationships between the attention focus regarding the scope of the environment (breadth and depth) and regarding the scope of strategy choice (diversity and direction). Testing our hypotheses with survey data, we anticipate contributing to the strategic management literature by demonstrating how environmental attention patterns relate to strategy choice attention patterns.

Title: Rational and Behavioral Drivers of Alliances Portfolio Adaptation to Performance Shortfalls and Environmental Jolts


  • Oleksiy Osiyevskyy, Northeastern University
  • Qingjiu Tao, James Madison University
  • Joy Ruihua Jiang, Oakland University
  • Michael Santoro, Lehigh University

Abstract: As the literature on strategic alliances shifts from analyzing individual dyads to alliance portfolios, the drivers of firms’ alliance portfolios characteristics remain largely un-explored. In particular, existing studies do not provide a clear understanding of how contextual factors determine essential characteristics of a firm’s strategic alliance portfolio, such as its size and diversity. Treating the firms’ alliance portfolios as bundles of real options, we apply the behavioral strategy lens to explain the observed instances of strategic alliances portfolios’ expansion or contraction in size and diversity, driven by the factors of external (environmental jolts) and internal (performance shortfall) environments. We test the proposed theoretical framework by tracing the evolution of telecom industry firms’ alliance strategies around the 1996 Telecommunications Act and the 2000 market crash.

Title: S-Curves Ahead: Examining Market Sensemaking Using Latent Growth Curve Modeling


  • R. Scott Livengood, Ohio State University
  • William Stromeyer, Rochester Institute of Technology

Abstract: The novelty of new products creates uncertainty for market participants, causing them to engage in sensemaking to evaluate the meaning and usefulness of new products relative to existing offerings. We theorize discourse – the objective information and subjective opinion exchanged in the marketplace – is the key sensemaking mechanism used to reduce uncertainty following a new product introduction. We develop theory and then test the theory utilizing latent growth curve modeling with data from the United States wireless telephone industry from 1998 to 2007 to capture the dynamic nature of market sensemaking. Results suggest a greater degree of new product novelty is associated with a higher volume, a longer duration, and a higher level of intensity of discourse.

All Sessions in Track P...

Sun: 08:00 – 09:15
Session 281: Models and Evidence in Behavioral Strategy
Sun: 09:45 – 11:00
Session 280: Neuro-science in Behavioral Strategy Research
Sun: 11:15 – 12:30
Session 282: The Origins and Future Development of Behavioral Strategy
Sun: 16:15 – 17:30
Session 77: Organization Level Cognition
Sun: 17:45 – 00:00
Session 325: Behavioral Strategy Business Meeting
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 83: Behavioral Strategy at the Firm Level
Mon: 11:15 – 12:30
Session 68: Behavioral Theory & Learning
Mon: 13:45 – 15:00
Session 69: Problematizing Categories: Performance, Audiences, Innovation and Status
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 85: Governance
Tue: 08:00 – 09:15
Session 80: Business Models and Innovation
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 71: Upper Echelons and Individual Decision Makers
Session 75: Organizational identity
Tue: 15:45 – 17:00
Session 79: Cognition, Identity and Search
Tue: 17:30 – 18:45
Session 84: Competitors and Other External Forces

Strategic Management Society