What Drives Firm Heterogeneity Across Time?
Date: Tuesday, September 23, 2014
Time: 08:00 – 09:15
- Manuela Hoehn-Weiss, Oregon State University
Title: Competing for Success: Dynamic Capability at Admiral Plc - Or Is It?
Abstract: This paper advances the study of dynamic capabilities by examining a longitudinal case study of a firm bearing the hallmarks of high performance and innovation, often attributable to dynamic capability. Using a FTSE-100 company in the UK we ask, has dynamic capability contributed to the firm’s its success and, if so, to what extent does that capability evolve over time? The UK car insurance market is regarded as a near-perfect market and the case demonstrates how Admiral has consistently out-performed its UK competitors. Using data from the launch of the firm as a start-up in 1993 through to its current MNE status we present evidence of dynamic capability in operation but in so doing ask whether dynamic capability is in fact a superfluous explanatory framework.
Title: Economic Selection in Recessions: Survival of the Fattest?
Abstract: In this paper we investigate how firm selection is altered by recessions. We stress that recessions can have two effects, one by tightening the selection environment through increasing the scarcity of resources, and one by imposing changes in the shape of the fitness landscape. Our key point is that a narrow “cleansing” effect definition of selection is in danger of ignoring crucial aspects of evolutionary processes related to successor selection. Using a definition of selection based more explicitly on Darwinian evolutionary theory will reduce this risk, and paint a more realistic and complex picture of how recessions change selection processes both in the short and long run
Title: Performance Effects of Strategic Action Patterns in Rapidly Changing Environments
Abstract: While the empirical evidence on the merits of fast-paced strategic decision-making and action in high velocity environments is compelling, it remains unclear whether the effect is driven by the speed, volume, or continuity of the actions. We examined this research question by analyzing all the announced actions of 401 firms of the S&P 500 sample during a ten-year period from 2003 to 2012. We coded the activities into different activity categories and the diversity of the industries allowed us to also perform comparisons between higher and lower velocity industries. Based on our analysis, we find that industry velocity enhances the performance effects of high activity levels and that firms that pace their actions above the industry average outperform their peers.
Title: Same Buck, More Bang? An Exploration of the Drivers of Heterogeneous Performance from Homogeneous Resources
Abstract: This paper is an empirical investigation into the drivers of heterogeneous performance and set in a franchising network context to better understand why some franchisees within a particular franchise perform better than others. It is an exploratory study into the variations in performance outcomes from firms that utilize the same resource. The study builds on three theoretical advancements namely; Strategic Factor Markets (resource buying), Asset Accumulation (resource building) and Resource Orchestration (resource management and deployment). The three research domains are integrated in a franchise setting to shed more light on the implementation aspect of the Resource Based Theory (RBT)
Title: Strategic Priorities and performance: Insights from Latin America
Abstract: This study examines the antecedents of superior sales performance, focusing on strategic positioning and firm-level investments in particular functional areas, ranging from marketing, to human resources and purchasing. It builds on previous studies of strategy seeking to link performance to different strategic configurations. It contributes to the strategy literature by discussing the effects of strategy in the context of Latin American agribusiness, an important driver of economic growth in the region. It also contributes to the literature by examining the behavior of 52 firms through Qualitative Comparative Analysis (QCA), allowing for the identification of multiple causal configurations. The study has important implications for practitioners, as it highlights the functional strategies that may have higher impact on performance.
Title: The Other Advantage: How Financial Markets Value the Potential to Capture Future Value
Abstract: Competitive advantage is typically defined in terms of the potential to capture value in the present. However, both anecdotal evidence and evidence for hypercompetition suggest that there is another advantage, which is becoming increasingly important: the potential to capture value in the future. This ‘other advantage’ I will call future potential advantage (FPA). I propose a novel method that combines accounting and stock market data to study the existence of FPA, whether it varies across industries, and how it has evolved over time. In a preliminary cross-sectional analysis of three industries I find support for the existence of FPA in two of the three. Based on this result, I propose an in-depth study of FPA in a large panel using this promising new method.
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?