Session 91

Theory Integration: Strategic Management with IB, Competitive Dynamics, and Value Capture

Track A

Date: Tuesday, October 6, 2015


Time: 08:00 – 09:15


Room: Governor's Square 15

Session Chair:

  • Paul Drnevich, University of Alabama

Title: A Meta-analytic Review of Competitive Dynamics


  • Margaret Hughes-Morgan, Marquette University

Abstract: Competitive aggressiveness has been at the center of competitive dynamics literature years, but there is no consensus about its content, antecedents, and performance consequences. By conducting a meta-analyses on19 antecedents-aggressiveness and aggressiveness-consequences relationships using three aggressiveness indicators—volume, competitive, and heterogeneity—we investigate the awareness, motivation, and capability drivers of competitive aggressiveness, and its wealth effect. Results show that market concentration, firm size, diversification level, and prior performance all affect its competitive aggressiveness, which in turn influences accounting and stock performance. Findings also suggest that high performance leads firm to increased competitive volume, which further improves performance, while low performance triggers more complex competitive actions which fail to improve organizational outcomes. This reifies the “rich get richer, poor get poorer” effect of corporate risk-taking found by Bromiley (1991).

Title: Mapping the Intellectual Heritage of International Business


  • Annette Nijs, CEIBS
  • Africa Ariño, IESE Business School

Abstract: The theory of International Business (IB) is constantly developing. From time to time scholars in the field review the progress of parts of the IB field. Until now there is no all-encompassing theory which describes, predicts and explains the internationalisation of companies. The purpose of this article is to propose a rigorous method to design a map outlining the main theory developments of the entire IB field and their connections by tracking the theoretical contribution in terms of changes made by the different scholars in theoretical concepts and assumptions. This method allows for the design of the map to be created as a collective effort of scholars in the field of IB. We call this map ‘The Intellectual Heritage of International Business’.

Title: Profit Seeking Dynamic Model: Unifying Framework of Firm Performance


  • Stephen In-ho Kim, Hanyang University
  • Michael Byung-Yoon Lee, Korea Institute for Advancement of Technology
  • Seong-jin Choi, Hanyang University
  • Young Kook Kim, Hanyang University

Abstract: Most of the theories/models in economics and business administration treat the mechanism of profit seeking as black box. Since Internet/Smart/Internet of things revolutions, technological change makes needs/industry evolution become frequently occurring and business boundaries blurred and provides more business opportunities, requiring a sound and robust theory to explain directly profit seeking. Recognizing this and that needs-focused innovation to trigger willingness to pay (WTP) works as the only driver of profit seeking, this paper suggests profit seeking dynamic model (PSDM) as unifying framework of firm performance based on two significant constructs, firm power and explicit needs with the standpoint of holism, synthesis and dynamism. In conclusion, PSDM might work as a generally applicable model, regardless of business, firm, industry or time.

Title: Refining Theoretical Mechanisms for Value Creation and Capture: Exploring Value Channel Commonalities


  • Larry Tribble, University of Alabama
  • Paul Drnevich, University of Alabama
  • David Croson, Southern Methodist University

Abstract: Well-known strategic management theories (Transaction Cost Economics (TCE), the Resource-based View (RBV), Property Rights Theory (PRT), and Incentive Systems Theory (IST)) provide insights for how firms create and capture value. However, despite several areas of commonality among the theories, scholars have been challenged to develop an integrated understanding of value concepts. In this proposal, we seek to clarify how each theory views core concepts of value: creation, capture, cost minimization, and value maximization. We develop a new integrative concept, value channels, and conceptually apply it to better understand the “big picture” issues of opportunism and bargaining. We conclude with a discussion of points of commonality and integration of the theories’ notions of value as the suggested underpinnings of a model of value creation and capture.

All Sessions in Track A...

Mon: 08:00 – 09:15
Session 88: Firm Boundaries: Theories of New Sources of Competitive Advantage
Mon: 16:45 – 18:00
Session 89: Integrating Theories of Stakeholders, Ownership, Governance and Boards
Tue: 08:00 – 09:15
Session 91: Theory Integration: Strategic Management with IB, Competitive Dynamics, and Value Capture
Tue: 15:45 – 17:00
Session 93: Blending CSR, Non-Profit, Symbolic Management and Practitioner Focus Perspectives

Strategic Management Society