Business Commons^™

Investors' Reactions To Alliance-Engendered Acquisition Ambiguity: Evidence From Us Technology Deals, Panos Desyllas, Martin C. Goossen, Corey C. Phelps

Management Faculty Publications

We study how, when target firms are engaged in strategic alliances, the ambiguity surrounding an acquisition's anticipated synergies influences investors' reactions to announcements of acquisitions. Drawing on behavioural finance research and the resource redeployment literature, we predict that investors' limited access to the information encoded in the target firms' alliances and the uncertainty around the re-deployability of their embedded resources generate a negative relationship between the number of target alliances and investors' reactions. We also hypothesize that this negative effect is exacerbated when the alliances involve foreign alliance partners but is attenuated when acquirers are experienced in acquiring targets with …

Social Movements And Institutional Entrepreneurship As Facilitators Of Technology Transition: The Case Of Free/Open-Source Software, Sanjay Jain, Habib A. Islam, Martin C. Goossen, Anil Nair

Management Faculty Publications

We integrate insights from the literature on social movements and institutional entrepreneurship into the strategic niche management (SNM) and multilevel perspective (MLP) frameworks to understand the emergence of Linux, a free/open-source operating system, in a regime dominated by proprietary operating systems such as Unix and Windows NT. Employing a “microhistories” methodology, we document how actors in the free/open-source movement took steps that enabled an alternate technological niche to form, gain momentum and eventually infiltrate the extant regime. Our account delineates the key role that actors play in shaping the identity of a niche, amplifying its presence, and finally mainstreaming it. …

Socio-Economic Management Theory Related To Bpm: A Case Study Of Dysfunctions In Digital Transformation Strategy, Yanfei Zhang, Emmanuel Monod, Gerard Beenen, Yuewei Jiang, Chris H. Willis

Management Faculty Publications

This research claims that dynamic strategies demanded by today’s digital environment exacerbate inconsistency between an organization’s digital transformation efforts and its enterprise architecture (EA) planning process. This phenomenon leads to redundant investments, delayed implementation, and frequent failures in digital transformation projects. In order to investigate this inconsistency, we apply the socioeconomic approach to management (SEAM) theory. Through critical analysis of four case studies in a large manufacturing organization, we clarify the relationship between digital transformation and EA and reveal the dysfunction in strategic implementation from a SEAM and business process management (BPM) perspective. In practice, this research integrates digital transformation …

Mechanisms In Open Innovation: A Review And Synthesis Of The Literature, Ruben H.A.J. Ogink, Martin C. Goossen, A. Georges L. Romme, Henk Akkermans

Management Faculty Publications

A large body of literature explores the role of context, structure, actors, and outcomes of open innovation (OI), yet pays little attention to the mechanisms underlying these relationships. In this review paper, we synthesize the OI literature using a context-mechanism-outcome approach to identify and classify the various mechanisms observed in empirical OI studies. Our findings demonstrate that the OI literature draws on a wide variety of mechanisms originating from the fields of management, sociology, economics, and psychology. The fifteen mechanisms most frequently observed in the literature fall into four categories: governance and policies; environmental dynamics and interactions; knowledge, skills, and …

What Has Digital Transformation Changed? A Chinese Case Study Of Hidden Costs Using A Socio-Economic Approach To Management, Tony Huang, Emmanuel Monod, Alan Eisner, Helaine Korn, Yuewei Jiang, Bin Bai, Samuel Wilson

Management Faculty Publications

Digital transformation is regarded as a way to solve business problems in an organisation. However, the impact on the company’s hidden costs should also be more precisely analysed. This research relies on the socio-economic approach to management to describe the impact of digital transformation maturity growth on hidden costs in a Chinese manufacturing company. This paper combines the case study research method with some quantitative techniques by conducting correlation analyses of staff turnover, low-quality work and occupational injuries and diseases. The results indicate that digital transformation maturity growth is correlated with the financial consequences of staff’s excess salary in terms …

The Big, Gig Picture: We Can't Assume The Same Constructs Matter, Alice M. Brawley Newlin

Management Faculty Publications

I am concerned about industrial and organizational (I-O) psychology's relevance to the gig economy, defined here as the broad trends toward technology-based platform work. This sort of work happens on apps like Uber (where the app connects drivers and riders) and sites like MTurk (where human intelligence tasks, or HITs, are advertised to workers on behalf of requesters). We carry on with I-O research and practice as if technology comprises only things (e.g., phones, websites, platforms) that we use to assess applicants and complete work. However, technology has much more radically restructured work as we know it, to happen in …

Knowledge Development Approaches And Breakthrough Innovations In Technology-Based New Firms, Dzidziso Samuel Kamuriwo, Charles Baden-Fuller, Jing Zhang

Management Faculty Publications

Compared to large established firms, technology-based new firms (TBNF) seem well placed to produce breakthrough innovations although questions remain as to their adeptness at subsequent exploitation. Building on the innovation and strategy literatures, the study identifies two different knowledge-development approaches or modes (business models) in TBNFs—internal versus external—and examines their relation to breakthrough innovation and subsequent progression of the product to market. The internal mode assembles knowledge inside the firm to generate its innovations, whereas the external mode relies heavily on alliances to develop and assemble knowledge among firms embedded in a creative network. The study uses a unique panel …

Introduction To The Special Issue: Towards A Theoretical Understanding Of Innovation And Entrepreneurship In India, Sanjay Jain, Anil Nair, David Ahlstrom

Management Faculty Publications

Over the past few decades, India has become one of the world’s most vibrant economies (Chari & Banalieva, 2015). While the first forty years after India’s independence in 1947 was characterized by a sluggish annual growth rate (of approximately 3%), economic reforms initiated in 1991 have resulted in the GDP growing at a rate of around 6.8% in the last quarter century (Chari & Banalieva, 2015;McCloskey, 2010). Conversely, while the pre-reform institutional environment generally underemphasized and undermined entrepreneurial and innovative activity (Bardhan, 1994; Baumol, Litan, & Schramm, 2009;Sivaraman, 1991), the post-reform period has been characterized by a much wider acceptance …

Global Diffusion Of The Internet Xvi: The Role Of Economic Development And Firm Internationalization In Internet Business Practices, Jonathan W. Whitaker, Nigel Melville, Robert Plice, Jason Dedrick

Management Faculty Publications

Firms from emerging economies are rapidly becoming formidable competitors to established industry leaders from developed economies. Aside from anecdotal reports, there is little scholarly evidence concerning the operational details of how emerging economy firms are becoming competitive with developed economy firms. This article addresses the gap by building on the International Business, Strategy and Information Systems literature, and through an empirical analysis of original survey data for 468 firms across ten countries. We develop three primary empirical findings. First, despite the differences between emerging economy firms and developed economy firms, we find that emerging economy/high internationalization firms use marketing- and …

Are Acquisitions A Poison Pill For Innovation?, Michael A. Hitt, Robert E. Hoskisson, R. Duane Ireland, Jeffrey S. Harrison

Management Faculty Publications

The recent wave of acquisition activity may be damaging the innovative capabilities of American firms, thus making them less competitive in the global marketplace. In fact, acquisitions often serve as a substitute for innovation, which may cause further neglect of internal research and development (R&D) programs. Additionally, acquisitions often lead to increases in leverage, diversification, and absorb significant amounts of executive time, which may lead to reduced managerial commitment to innovation.

In this article, evidence is presented suggesting that acquisition activity may result in reductions in R&D inputs and outputs. On average, the 191 firms in the sample reduced their …