Session 414

Global Networks and Business Groups

Track D

Date: Monday, September 22, 2014

Track G

Time: 14:45 – 16:00

Common Ground

Room: Viena


Facilitator:

  • Anuja Gupta, University of Pennsylvania

Title: An Analysis of Network Structure in Highly-Regulated Settings: Evidences from Clinical Research

Authors

  • Federica Brunetta, LUISS Guido Carli University
  • Paolo Boccardelli, LUISS Guido Carli University
  • Andrea Lipparini, University of Bologna

Abstract: This paper analyzes the effects of ego network structure on the performance of organizations embedded in highly-regulated institutional environments, where actors may have a constrained ability to make strategic choices. By using a network perspective, we analyze the strategies and practices employed by organizations in responding to institutional pressures. We study the effects of network structures on performance in highly-regulated settings, where actors are significantly constrained by institutional forces. We analyze a co-operative network setting and examine how the attributes of an actor’s position within a network might enable them to moderate the effects of the institutional constraints. We test our hypotheses via a study of clinical research projects in the pharmaceutical industry.

Title: Building Big: Risk and the Global Scope of Project Finance Syndicates

Authors

  • Sinziana Dorobantu, New York University
  • Jakob Müllner, WU Vienna

Abstract: We argue that higher country risk and higher uncertainty during times of crisis increase the global scope of project finance syndicate networks. We test our hypotheses on a comprehensive sample of 8,651 projects in 162 countries signed between 2000 and 2013. Our results highlight that the global scope of syndicate networks increases with country risk in the project’s host country, and in particular, with politically-related components of country risk. We also show that when going through a major financial crisis, banks increase the scope of their syndicates in an attempt to diversify. Overall, however, syndicates revert to geographically tighter networks.

Title: Business Groups' Corporate Networks and Long Term Performance

Authors

  • Erica Salvaj, University of Desarrollo
  • Juan Pablo Couyoumdjian, University of Desarrollo
  • Jean Sepulveda, Univeristy of Desarrollo

Abstract: Among the most relevant economic actors in emerging economies are business groups (BGs). Literature on BGs describes several underlying conditions that explain their survival and performance. Yet research has ignored corporate networks as a relevant explanatory variable, despite evidence of the widespread use of interlocking directorates (IDs) as a non-market strategy that BGs adopt to achieve their goals. Therefore, this article seeks to close a research gap by studying the effect of IDs on the performance and survival of BGs and their affiliates in Chile from 1970 to 2010. We apply social network and econometric analyses (survival and panel data analyses) using a unique and novel sample that comprises the companies in all BGs in Chile in five benchmark years between 1970 and 2010.

Title: Corporate Responses to Legitimacy-Threatening Events: The Moderating Role of Governance Networks

Authors

  • Donghoon Shin, University of Wisconsin Whitewater
  • Ilya Okhmatovskiy, McGill University

Abstract: We examine how corporate responses to legitimacy-threatening events are affected by characteristics of these events and by firms’ embeddedness in governance networks. Drawing from the contingency perspective on corporate governance, we examine the moderating role of governance networks created by ownership ties to business groups and to the state. The empirical setting of our study is South Korea, where these governance networks are particularly prominent. We expect that our study will contribute to corporate governance and impression management literatures by shedding light on unexplored determinants of legitimacy-repairing actions.

Title: Investing in Flexibility when Supply Chains become Value Networks

Authors

  • Philip Moscoso, IESE Business School
  • Alejandro Lago, IESE Business School

Abstract: The aim of this proposal is to contribute to the managerial knowledge development on what supply chain flexibility means in a time where the traditional sequential supply chain approach needs to evolve into an understanding of supply chains as value networks facing ever faster changing competitive environments. Our main contribution is a conceptual design framework that guides managers when investing in flexibility. First, we define a set of flexibility objectives, which differentiates between short- vs. long-term flexibility, and product vs. process flexibility. Additionally, the framework differentiates three structural design levels: single resource, single stage, and multi-stage supply chain systems.

Title: Resource Orchestration in Business Groups: Managing Strategic Change through Resource Bundling

Authors

  • Won Kyung Min, Fordham University

Abstract: This study highlights the resource orchestration view of how business groups manage human resources across affiliate boundaries. Drawing on one set of resource orchestration processes, namely bundling, I argue that business groups seek to stabilize, enrich and pioneer firm capabilities through bundling resources in strategic ways. Bundling strategies are captured by business groups’ decisions to utilize internal and external human resources in order to achieve the desired level of strategic changes at the affiliate companies.

All Sessions in Track D...

Mon: 08:00 – 09:15
Session 413: CSR and Diversity
Mon: 11:00 – 12:15
Session 412: Public-Private Relationships and Politics
Mon: 14:45 – 16:00
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 411: Ownership and Governance
Tue: 08:00 – 09:15
Session 410: Governance Relationships
Tue: 17:15 – 18:30
Session 415: Small Firms in a Networked Environment

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions


Strategic Management Society

Madrid