Session 84

Competitors and Other External Forces

Track P

Date: Tuesday, October 6, 2015


Time: 17:30 – 18:45

Common Ground

Room: Plaza Court 4


  • Jonathan Bundy, Arizona State University

Title: Drilling Pressure Managed: External Inducements and Market Reactions to Fossil-Fuel Firms’ Greening through Alliances


  • Francisco Polidoro, University of Texas at Austin
  • Wei Yang, University of Texas at Austin

Abstract: The emergence of new technologies can threaten incumbent firms competing in technology-intensive settings. Current literature show how incumbents fail to adopt new technologies due to internal factors such as biased information filter and low absorptive capacity. However, it is overlooked that external inducements may facilitate incumbents’ adoption of new technologies. We examine how firms’ adaptation during technological change through alliances is facilitated by external inducements and institutional pressures. We propose that institutional inducements shape expected value erosion caused by new technologies and can increase stock market responses to alliances for new technologies adoption. Such effect is moderated by incumbents’ network positions and previous experiences with the new technologies. We test the hypotheses in the context of fossil-fuel firms’ alliances with partners possessing renewable energy technologies.

Title: How Do Perceived Uncertainties Propagate in Management Interpretation Process?


  • Stephen Zhang, Catholic University of Chile
  • Asghar Afshar Jahanshahi, Pontifical Catholic University of Chile

Abstract: The notion of perceived environmental uncertainty figures prominently in management research. However, the relationships among the types of perceived uncertainty remain equivocal. We theorized a moderated mediating model of state, effect and response uncertainty, with openness to experience as the moderator, and tested with a sample of 251 founder-CEOs. Our results help explain the mechanisms of environmental contingencies through the perception of management – how they becomes more or less uncertainty on their decisions under environmental uncertainty.

Title: Incumbent Strategy Formation under Ambiguity: Cognition, Tribalism and Inertia


  • Jack Fraser, University of Cambridge
  • Shahzad Ansari, University of Cambridge
  • Patrick Reinmoeller, Cranfield University

Abstract: There is established support for the notion that managerial cognition and cognitive frames play a prominent role in shaping organizational strategy under conditions of market uncertainty and ambiguity. Less attention has been paid to the mechanisms by which divergent cognitive frames emerge within organizations and the impact this divergence has on the ability of the firm to effectively respond to disruptive innovations. This paper contributes to this discussion through an in-depth case study of the response of Aviva plc to the ambiguity driven by a disruptive innovation; the rise of general insurance aggregator sites between 2002 and 2010. The case explores the divergent cognitive frames that existed within Aviva, the impact these frames had on managers’ interpretations of the ambiguous market conditions and the mechanisms by which different ‘tribes’, characterized by these frames, influenced firm strategy. Our work carries both theoretical and managerial implications.

Title: Rivals’ Ability and Risk Taking Strategies in Rank-Order Tournaments


  • David Pastoriza, HEC-Montreal
  • Jean-Francois Plante, HEC-Montreal
  • Bernard Sinclair-Desgagné, HEC-Montreal

Abstract: We study the moderating role of the nearest rival’s ability on the relationship between a players interim position in a tournament (trailing or leading) and his/her risk taking strategy. We examine competitors’ behavior in 345 PGA Tour tournaments between 2003 and 2012. We found that the relationship between a player’s ability and his risk taking strategy is contingent both upon the ability of the rival he is trailing and the ability of the rival who is trailing him. A low-ability player adopts increasingly safe strategies as the ability of the rival he is trailing and/or the ability of the rival trailing him increase. In contrast, a high-ability player exhibits the opposite relationship. These findings shed light on commonly observed behaviors by competing companies and managers.

Title: Running Away CEOs from IP Ventures in China (2009 - 2013)


  • Kehan Xu, University of Wollongong
  • Haipeng Chen, Texas A&M University
  • Xiaoyan Han, Guangzhou Rural Commercial Bank

Abstract: An initial public offering (IPO) represents a visible milestone in the evolution of an entrepreneurial venture as it progresses from a start-up to a public corporation with multiple groups of stakeholders. It is well known that dissonance among different groups of stakeholders of a venture typically accompanies an IPO, especially in emerging markets. Relatively little is known, however, about the factors that influence a chief executive officer’s (CEO’s) withdrawal from his or her position following the IPO. By adopting a unique longitudinal sample of 355 ventures across five years (2009–2013) in nine industries, this empirical study examined the relative effects of several factors—specifically CEO’s levels of equity, CEO’s output-functional background, CEO/board chairman duality, and CEO and board chairman age difference—on CEO decision-making. Managerial implications are also discussed.

Title: Secondary Stakeholder Activism and Firm Response Strategies: The Role of Executive Political Ideology


  • Francois Neville, Georgia State University
  • Pamela Barr, Georgia State University

Abstract: Given a gradual expansion of their boundaries, firms are increasingly susceptible to activism initiated by secondary stakeholders such as community activists, advocacy groups, religious organizations, and other non-governmental organizations. As such, firm response strategies to secondary stakeholder activism have increasingly been regarded as an issue of strategic management importance. We extend a recent line of inquiry on this topic by introducing the role of executive characteristics—specifically their personal political ideologies—as potentially prominent and influential factors responsible for driving firm response strategies to secondary stakeholder activism. Leveraging key insights from prior work in the upper-echelons perspective, we argued that political ideologies are central and visible manifestations of executives’ personal values, which in turn ultimately shapes their firm’s response strategy toward secondary stakeholder activism.

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