Department of Management

: Analysis of Competition in the Defense Industrial Base; Consolidation of the defense industrial base has led to concerns about whether enough competition exists between remaining firms to maintain needed cost reduction and innovation. We examine competition in the U.S. defense industrial base by performing an in-depth case study of Lockheed Martin and the F-22 program that considers multiple tiers of the industrial base. We find that defense firm specialization has led to outsourcing practices and arguably a more robust U.S. defense industrial base. Implications for government policy are identified., Publication Note: The published version can be found at http://doi.org/10.1111/j.1465-7287.2006.00019.x. This article is in the public domain.

: Angel On One Shoulder; Drawing on social exchange theory and a person-situation framework, we examined perceived organizational support as a moderator of the relationship between the Dark Triad personality traits of narcissism, Machiavellianism, and psychopathy with specific types of counterproductive work behavior (i.e., sabotage, production deviance, withdrawal, theft, and abuse). Using a sample of 208 currently-employed online participants and structural equation modeling analyses we found that individuals scoring high on the Dark Triad traits reported engaging in some types of counterproductive work behavior less frequently when they perceived higher levels of organizational support. Our results support the person-situation interactionist model and suggest that individuals possessing higher levels of narcissism and psychopathy engage in certain types of counterproductive work behavior relatively less frequently when they perceive the organization as being supportive. (C) 2017 Elsevier Ltd. All rights reserved., Keywords: performance, personality, Counterproductive work behavior, Dark Triad, Machiavellianism, Narcissism, Perceived organizational support, Psychopathy, Publication Note: The publisher's version of record is available at https://doi.org/10.1016/j.paid.2017.01.018

: Closing the deal; When firms announce a merger or acquisition, shareholders, analysts, and the media respond. Firms are less likely to complete a deal when those reactions are negative. We, however, uncover a scenario where the opposite occurs. When short interest (i.e., the percentage of shares shorted) increases following announcement of a deal, managers at firms become more likely to complete the deal. We theorize that short selling after deal announcement constitutes an ego threat to managers that induces escalation of commitment. This is because short sellers are adversarial, or they win when stock prices fall. Moreover, we argue that this managerial response is heightened in situations where managers are more likely to be defensive about their decisions, such as when the deal is large or the target firm is publicly-traded., acquisitions, short-selling, This is the accepted manuscript and the version of record can be found at https://doi.org/10.1016/j.jbusres.2021.03.030

: Complementary Resources and the Exploitation of Technological Innovations; Technological innovation often results when the resources of a small firm are combined with those of a large one. This is because small and large firms characteristically possess complementary resources whose combination can facilitate innovation success. The possession of complementary innovation-producing resources by small and large firms helps explain patterns of interaction among firms in dynamic, technology-based industries. Propositions are developed that outline how typical resources of small and large firms can be used to explain industry-level phenomena surrounding technological change. Published by Elsevier Science Inc., Publication Note: The published version of this article can be found at http://doi.org/10.1016/S0149-2063(03)00026-6.

: Contextualizing Speed And Cross-border Acquisition Performance; There is general agreement that acquisition integration is decisive for acquisition performance. Despite this consensus, there are heterogeneous results on integration measures, such as integration speed with empirical research supporting the benefits of either fast or slow integration. We argue that the business environment surrounding acquisitions has the potential to reconcile conflicting findings. We develop how institutional factors (i.e., labor market flexibility and efficiency) influence the relationships between speed of human and functional integration on acquisition performance. With a sample of 203 transactions from acquirers from central Europe and Scandinavia, we find human and functional integration speed have divergent effects on acquisition performance. Further, both relationships are moderated by labor market flexibility and efficiency, but in different ways. Implications for research and practice are discussed., Keywords: corporate governance, emerging economies, Acquisition integration, Acquisition performance, create value, Cross-border acquisition, innovation speed, institutional distance, Institutional environment, Integration speed, m-and-a, method variance, organizational research, postacquisition performance, technology firms, Publication Note: The publisher's version of record is available at https://doi.org/10.1016/j.jwb.2018.01.001

: Deadly sins and corporate acquisitions; Although having grown significantly to constitute a strong influence in several fields of business research, research on corporate acquisitions still needs fresh voices. Research on acquisitions is dominated by functionalist studies searching for ways to improve financial outcomes. In contrast, this paper draws on a narrative approach to provide a new perspective to corporate acquisitions. We focus on decision-makers and how a metaphor that highlights human foibles connected to sins can offer a new understanding of corporate acquisitions. Engaging with acquisition literature and underpinning our argument with examples from well-known acquisitions, provides a new way of understanding commonly identified but socially unaccepted outcomes from acquisitions generally described as unintended and unwanted., acquisitions, decision-makers, corporeality, narrative, metaphor, Schriber, S., King, D., Bauer, F. (2021). Deadly sins and corporate acquisitions. Culture and Organization, 27(1): 1-15. https://doi.org/10.1080/14759551.2019.1621311

: Divestiture Of Prior Acquisitions; Purpose There are multiple perspectives of divestiture and its performance that require reconciliation. While research finds a positive market response to divestment announcement, divestiture of prior acquisitions are generally viewed negatively. The purpose of this paper is to develop and empirically test different explanations for the divestment of prior acquisitions. Design/methodology/approach This research employs event study to capture market reaction at acquisition announcement and subsequent divestments in a sample of 69 public US high-technology acquisitions between 2003 and 2008 that were divested by 2015. Only initial acquisitions involving public firms were included from the Thomson One Banker SDC database. Public press releases and companies' SEC filings were reviewed to track divestitures back to prior acquisitions. Ordinary least squared regression was used to estimate coefficients. Findings Results indicate a positive relation between acquisition and divestiture performance around announcement dates. This finding rejects the correction of mistake explanation, suggesting that a negative stigma surrounding divestments is largely unwarranted and that investors reward capable acquirer's divestiture decisions. Originality/value This study finds that investors view divestiture as a proactive strategy, suggesting firms can improve performance by actively managing acquisitions and divestments to optimize their portfolio of businesses., firms, Acquisitions, asset sales, corporate divestiture, Corporate restructuring, Correction of mistake, Divestiture, divestment, Divestment, managerial, market reaction, Mergers, postacquisition performance, profitability, spin-offs, value creation, The publisher's version of record is availible at https://doi.org/10.1108/JSMA-05-2019-0076

: Effects of Firm R&D Investment and Environment on Acquisition Likelihood; R&D investments contribute to the development of firm technology resources, and the possession of such resources often increases a firm’s attractiveness as a potential acquisition target. However, the value ascribed to a firm’s technology resources by would-be acquirers may be moderated by its industry’s environmental characteristics. Using data from 2886 firms, we find that investments in R&D predict acquisition likelihood and that R&D investments are most strongly associated with acquisition of firms under conditions of high environmental munificence and dynamism. Theoretical and managerial implications are discussed., Publication Note: The published version of the article can be found at http://doi.org/10.1111/j.1467-6486.2006.00636.x. This article is in the public domain.

: Family Business Restructuring; Although business restructuring occurs frequently and it is important for the prosperity of family firms across generations, research on family firms has largely evolved separately from research on business restructuring. This is a missed opportunity, since the two domains are complementary, and understanding the context, process, content, and outcome dimensions is relevant to both research streams. We address this by examining the intersection between research on business restructuring and family firms to improve our knowledge of each area and inform future research. To achieve this goal, we review and organize research across different dimensions to create an integrative framework. Building on current research, we focus on 88 studies at the intersection of family firm and business restructuring research to develop amodel that identifies research needs and suggests directions for future research., acquisition, buyout, divestment, family firm, restructuring, King, D.R., Meglio, O., Gomez-Mejia, L., Bauer, F., De Massis, A. (2021). Family Business Restructuring: A review and research agenda. Journal of Management Studies. https://onlinelibrary.wiley.com/doi/pdf/10.1111/joms.12717

: Impact of Augmenting Traditional Instruction With Technology-based Experiential Exercise; Traditional instruction, under an experiential learning model, is neither the sole nor a sufficient means of learning. Learning systems that engage students as contributors to learning offer opportunities for educators. The availability of technology to support experiential exercises represents one opportunity to augment traditional instruction. In a quasi-experiment, traditional-only instruction was compared with traditional instruction augmented with a technology-based, experiential exercise. The two instructional methods were evaluated based on student learning, intended behavior, and satisfaction. Our findings suggest that augmented instruction significantly increased student learning and satisfaction. The implications for students are clear. However, there are also noteworthy implications for faculty., Publication Note: Article is in the public domain.

: Implications of Uncertainty on Firm Outsourcing Decisions; Outsourcing inherently considers what activity needs to reside within a given firm. The difficulty of exchanges between firms in the face of uncertainty affects where work on developing and producing new products is performed. Theory is developed and explored using a case study that explains firm sourcing decisions as a response to uncertainty within the context of industry structure and related transaction costs. Viewing outsourcing broadly results in a better delineation of outsourcing options. Implications for management research and practice are identified., Keywords: Outsourcing, Innovation, Firm boundaries, Uncertainty, Transaction cost economics, Industrial organization economics, Publication Note: No DOI provided. Article is in the public domain.

: Managers' sexually-oriented behavior and firm performance; The goal of this study is to examine the association between managers’ sexually-oriented behavior in publicly traded firms and subsequent stock market reactions. Both sexual harassment and non-harassing sexually-oriented behavior (i.e., workplace romance) are associated with negative shareholder reactions. We also examine factors that may alter the stock market reaction and those that may reduce the risk of lawsuit in sexual harassment cases., Firm performance, sexual harassment, workplace romance, corporate governance, hostile work environment, event study., Baker, A., King, D., Nalick, M., Tempio, M., Gupta, V., Pierce, C. (2021). Managers’ Sexually-Oriented Behavior and Firm Performance: Linking Media Reports to Stock Market Reactions and Legal Risk. Journal of Strategy and Management. https://doi.org/10.1108/JSMA-07-2020-0188

: Managing Competing Interests; Conflicts of interest represent an increasing problem in organizations, given the expansion of stakeholder concerns, needs and expectations. Existing remedies to address these conflicts largely involve aligning management incentives with the interests of investors, or by recusing parties with special interests from the decision-making effort. Both circumstances depend on a primary stakeholder and decision maker. However, increasingly complex situations involving multiple stakeholders in organizations exist. This added complexity heightens uncertainty that facilitates the pursuit of self-interest. Ironically, a potential remedy may involve ensure the presence of competing conflicts of interest versus trying to minimize them. A case study of military procurement suggests competing interests can mitigate self-interest., Keywords: Conflicts of interest, Ethics, Military procurement, Stakeholders, Organizational theory, Agency theory, Publication Note: The published version of this article can be found at http://www.tandfonline.com/doi/full/10.1080/10999922.2016.1276789.

: Mergers and Acquisitions; Mergers and acquisitions (M&A) represent a popular strategy used by firms for many years, but thesuccess of this strategy has been limited. In fact, several reviews have shown that, on average, firms create little or no value by making acquisitions (Hitt, Harrison, & Ireland, 2001). While there has been a significant amount of research on mergers and acquisitions, there appears to be little consensus as to the reasons for outcomes achieved from them (King, Dalton, Daily, & Covin, 2004). Herein, we begin by reviewing some of the extant research on mergers and acquisitions, identifying the key variables on which the studies have focused. Thereafter, we summarize some of the major work on a primary reason for failure - paying too high a premium - and discuss why executives often delay too long the divestiture of poorly performing businesses that were acquired. Additionally, we examine research suggesting the importance of an acquisition capability based on organizational learning from the acquisitions and complementary science and technology for strategic renewal. Finally, we end with a discussion of the research on crossborder mergers and acquisitions which have become prominent in recent years., Publication Note: Published by Elsevier at http://doi.org/10.1016/j.bushor.2009.06.008.

: Meta-analyses of Post-acquisition Performance; Empirical research has not consistently identified antecedents for predicting post-acquisition performance. We employ meta-analytic techniques to empirically assess the impact of the most commonly researched antecedent variables on post-acquisition performance. We find robust results indicating that, on average and across the most commonly studied variables, acquiring firms’ performance does not positively change as a function of their acquisition activity, and is negatively affected to a modest extent. More importantly, our results indicate that unidentified variables may explain significant variance in post-acquisition performance, suggesting the need for additional theory development and changes to M&A research methods., Publication Note: The published article can be found at http://doi.org/10.1002/smj.371. This article is in the public domain.

: Navigating challenging contexts; Despite its intuitive appeal, acquisition experience has not shown a clear benefit to acquirers, and we argue the applicability of acquisition experience depends on goals and context. Using survey data, we consider the effects of applying codified experience for two common acquisition goals involving knowledge transfer and market expansion. Our findings reveal a ‘double-edged sword’ effect, where on one hand, codification mitigates negative effects of industry rivalry on knowledge transfer. However, on the other hand, codification amplifies negative effects of industry rivalry on market expansion and internal turmoil on knowledge transfer. Beyond demonstrating the importance of goals and context contingencies for determining acquisition experience effect, our results reconcile conflicting research findings to identify when codified experience is beneficial in acquisitions., Contingency theory, Acquisition context, Acquisition integration, Codification, Knowledge transfer, Market expansion, This is the accepted manuscript and the version of record can be found at https://doi.org/10.1016/j.lrp.2021.102088, Bauer, F., King, D., Schriber, S., Kruckenhauser, C. (2021). Navigating challenging contexts: Costs and benefits from applying codified acquisition experience. Long Range Planning. https://doi.org/10.1016/j.lrp.2021.102088

: Performance Implications of Firm Resource Interactions in the Acquisition of R&D-Intensive Firms; We explore the role of resource interactions in explaining firm performance in the context of acquisitions. Although we confirm that acquisitions do not lead to higher performance on average, we do find that complementary resource profiles in target and acquiring firms are associated with abnormal returns. Specifically, we find that acquiring firm marketing resources and target firm technology resources positively reinforce (complement) each other; meanwhile, acquiring and target firm technology resources negatively reinforce (substitute) one another. Implications for management theory and practice are identified., Keywords: Merger and acquisition, Resource-based view, High technology, Publication Note: The published version can be found at http://doi.org/10.1287/orsc.1070.0313.

: Predicting The Divestment Of Prior Acquisitions; We evaluate whether, in addition to seeking higher stock performance from acquisitions, firm managers also seek predictable stock performance. Building on prior research, we argue that higher volatility in a firm's stock performance following an acquisition is associated with divestment of a prior acquisition. Survival analysis of a longitudinal, panel dataset of 738 matched US acquisitions with 9,973 firm-year observations shows that higher volatility in an acquiring firm's stock performance, following an acquisition, significantly predicts divestment of a prior acquisition. This effect is independent and stronger than the effect of the mean stock performance of an acquiring firm following an acquisition. We also find moderating effects for acquisition relatedness and acquiring firm stock performance after an acquisition. When an acquired unit is related to the parent firm's operations, it will be more likely to be divested if subsequent stock performance displays higher volatility. Still, higher overall stock performance makes a parent firm less likely to divest an acquired unit, suggesting that larger mean returns override concerns about higher stock performance volatility during corporate restructuring., risk, performance, governance, behavioral-theory, corporate diversification, firm, regression-models, ownership, value creation, divestiture, The publisher's version of record is availible at https://doi.org/10.1111/1467-8551.12569

: Reducing Causal Ambuguity in Acquisition Integration; Integration is a difficult process, but one that is vital to acquisition performance. One reason acquirers encounter difficulties is that the integration process exhibits high levels of intrafirm linkage ambiguity—a lack of clarity in the causal link between integration decisions and their performance outcomes. We introduce the construct of intermediate goals as a mechanism that reduces intrafirm linkage ambiguity. Our structural model results, based on a sample of 129 horizontal acquisitions, indicate that the achievement of two intermediate goals (internal reorganization and market expansion) fully mediates the relationships between four integration decisions and acquisition performance., Publication Note: The published version can be found at http://doi.org/10.5465/AMR.2008.33665279.

: Retaliation effectiveness and acquisition performance; Despite extensive interest in how acquisitions can increase firm competitiveness, research has given competitive retaliation to acquisitions limited attention. Consistent with process research on managerial decisions during acquisitions, we simultaneously consider the effects of retaliation and internal integration decisions on retaliation effectiveness and acquisition performance. From an international survey in Europe, we demonstrate how managerial integration decisions and the external environment influence retaliation effectiveness to acquisitions and their performance. Specifically, longer integration duration and an open M&A strategy are associated with increased retaliation effectiveness. Meanwhile, a high-level of industry M&A activity lowers it. We also confirm that increased retaliation effectiveness is associated with lower acquisition performance. These findings help balance an internal focus in acquisition research, and they clarify the performance implications of acquirer choices that may lead to competitive retaliation effectiveness, as predicted by competitive dynamics research., Merger and acquisition, acquisition performance, competitive dynamics, Schriber, S., King, D., Bauer, F. (2021). Retaliation effectiveness and acquisition performance: The influence of managerial decisions and industry context. British Journal of Management. https://doi.org/10.1111/1467-8551.12480

You are here

Department of Management

Pages

Pages