Session 341

Stakeholders, Board of Directors and Competitive Strategy

Track E

Date: Sunday, September 21, 2014


Time: 15:45 – 17:00


Room: Roma 2

Session Chair:

  • Sai Yayavaram, Indian Institute of Management Bangalore

Title: An Extension of the VCA Model to Estimate Stakeholder Value Appropriation


  • Roberto Garcia-Castro, IESE Business School
  • Marvin Lieberman, University of California, Los Angeles
  • Natarajan Balasubramanian, Syracuse University

Abstract: There is a renewed interest in the relationship existing between stakeholder theory and the dynamics of value creation and appropriation. Further advancements in this field are arguably impeded by an incomplete conceptualization and measurement of value. In this paper we build on Lieberman and Balasubramanian’s value creation-appropriation model (VCA) and we show that not only can customers, suppliers and managers be incorporated into the VCA baseline model but also that their economic gains can be estimated using publicly available data. We analyze the major U.S. airlines companies to illustrate how the model works and how it can contribute to stakeholder management research.

Title: Business Growth vs. Organizational Development Reflected in Strategic Management of Polish Enterprises


  • Anna Witek-Crabb, Wroclaw University of Economics

Abstract: Growth and development refer to different processes in organizations. Not every growth leads to organizational development and not every development is demonstrated in company’s growth. This paper seeks to answer the question about the relationship between company’s growth and its organizational development. Is quantitative increase in size associated with management transformation, qualitative change and increased excellence and maturity in studied companies? The study was carried out in 150 Polish small, medium and large companies. It concentrated on establishing whether bigger companies demonstrate more integrity, systems approach and adaptability in their strategic management. The three were the chosen criteria of the organizational development.

Title: Effect of Political Directors on Profit Persistence: Evidence from India


  • Kshitij Awasthi, Indian Institute of Management-Bangalore
  • Sai Yayavaram, Indian Institute of Management Bangalore
  • Rejie Pallathitta, Indian Institute of Management-Bangalore
  • Trilochan Sastry, Indian Institute of Management, Bangalore

Abstract: There has been an increasing interest in the role of Corporate Political Activity (CPA) as an important component of firm strategy. CPA is especially important in emerging economies in generating influence rents. However, the empirical evidence on the relationship between CPA and firm performance has been mixed. Further, there has not been much effort on examining its effect on persistence in firm performance. Using a unique panel dataset of candidates elected at either national or state level in India and looking at their membership of board of directors of both listed and unlisted firms, we examine the effect of political directors on firm performance persistence. Our preliminary results indicate that political directors have a positive effect on performance persistence.

Title: Heroine or Outsider? The Role of Women Executives in Multimarket Competition


  • Tieying Yu, Boston College
  • Dan Li, Indiana University
  • Albert Cannella Jr, Texas A&M University
  • Jianer Zhou, Boston College

Abstract: According to the “mutual forbearance hypothesis”, as the degree of multimarket contact (MMC) between rivals increases, their aggressiveness towards each other is reduced because of the possibility of cross-market retaliation. Scholars have identified many contingencies which may govern the effect of MMC on rivalry reduction. No effort however has explored how the presence of women in a company’s top management team impacts the enactment of its mutual forbearance strategy. Drawing insights from social homophily and social identity theory, we suggest that due to women executives’ limited access to the inner circle of the industry and their stronger motivation to confirm others’ high opinions of them, firms led by women executives are more likely to disrupt the status quo, thus weakening the rivalry dampening effect of MMC.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 282: The Latest and Greatest in Empirical Methods for Strategy Scholars
Sun: 09:30 – 10:45
Session 1: Frontiers of Value Capture Research: Complementary Developments in the Theory and Empirics
Sun: 11:15 – 12:30
Session 284: The Strategic Process and Competitive Dynamics of Industry Convergence
Sun: 15:45 – 17:00
Session 341: Stakeholders, Board of Directors and Competitive Strategy
Sun: 17:15 – 18:30
Session 601: Competitive Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 366: Markets, Brands, Customers and Competition
Mon: 11:00 – 12:15
Session 342: Resource Based View
Mon: 14:45 – 16:00
Session 368: Firm Scope and Industry Competition
Mon: 16:30 – 17:45
Session 348: Differentiation and Competitive Strategy
Tue: 08:00 – 09:15
Session 349: Leaders, Laggards and Competition
Session 367: What Drives Firm Heterogeneity Across Time?
Tue: 11:00 – 12:15
Session 350: Governance, Organization and Competition
Tue: 15:30 – 16:45
Session 364: Conceptual developments in Competitive Strategy
Tue: 17:15 – 18:30
Session 343: What Drives Competition?

Strategic Management Society