2000 SMS Conf Web Prog

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					                                                                               10:00 - 12:00                                  Monday
 POSTER SESSION 1                                 10:00 - 12:00              Learning Trajectories and Competitive Survival:
Poster                                                       Atrium Foyer    What Should Drive Effective Knowledge
Competitive Strategy and Corporate Social Capital:                           Management Initiatives? (Track F)
                                                                                    Rafael Andreu, IESE/University of Navarra
High Technology Spin-Offs out of Elite Units in the                                 Sandra Sieber, IESE/University of Navarra
Israeli Defense Forces (Track B)                                             In this paper we approach knowledge management from the perspec-
       Avi Fiegenbaum, Technion-Israel Institute of Technology               tive of how knowledge and learning contribute to develop sustainable
       Shaul Gabbay, Technion-Israel Institute of Technology                 competitive advantage (SCA) in firms. We argue that in businesses in
       Eran Bar-Am, Technion-Israel Institute of Technology                  which knowledge becomes the prime source of SCA, it is fundamental to
       Roger Th A J Leenders, University of Groningen                        identify and manage their knowledge bases in terms of what can be
The current research studies the effects competitive strategy and cor-       called external and internal knowledge. We evince that managing ex-
porate social capital on new high technology venture performance. It         ternal knowledge and internal knowledge is a significant organizational
is suggested that corporate social capital positively affects start-up       challenge, as different types of learning trajectories have to be com-
performance. An integrative model is offered, suggesting that industry       bined in order to strike an appropriate knowledge balance over time.
structure, corporate social capital, competitive strategy and the cogni-     We argue that technology-based, well-delimited knowledge manage-
tive structure of firm strategic reference points (Fiegenbaum, Hart and      ment systems, although potentially very useful for the development
Schendel, 1996), operate together in order to maximize start-up per-         and deployment of external knowledge, are clearly insufficient to en-
formance. The analysis is carried out on data collected from a sample        sure the development of an organization's internal knowledge.
of about 75 hi-tech startup-s founded by veterans of Israel Defense
Force technological units during the 1990s.
                                                                             Opening Up and Engaging the Black Box: Managing
                                                                             the Interorganizational Knowledge Creation Process
Knowledge-Based Assets and Insider Trading:                                  in Knowledge-Based Industries (Track F)
Human Capital, Asymmetric Information, and                                          Steve Maguire, McGill University
Opportunities (Track F)                                                             Rashmi Assudani, McGill University
        Russell Coff, Emory University                                       In this paper we present the findings of theory-building case study
        Peggy Lee, Emory University                                          research which asked the basic but important question: "how do firms
Do managers take advantage of asymmetric information in knowledge            and industries organize themselves to create and use knowledge". This
intensive industries by trading on their private information? Asymmet-       research studies the process by which firms, embedded in an evolving
ric information between managers and shareholders is large when firms        interorganizational "distributed" knowledge domain, organize them-
draw on human capital or knowledge-based assets and, therefore, the          selves for recognizing and using "knowledge of" (i.e. claims, beliefs,
threat of such opportunism may be especially great in this context.          facts) to create valuable new "knowledge from" (i.e. products, innova-
This study explores patterns in trading that may skirt regulations and       tions). In other words, the research seeks to understand the co-evolu-
allow managers to take advantage of knowledge-based information asym-        tion of both ‘the possession' and the 'process' - dimensions of knowl-
metries. We also analyze investor responses to insider trades. Insider       edge. We argue here that an appreciation of these dimensions as also
trading may have more information value in knowledge-intensive in-           the contested nature of knowledge and its creation can contribute to
dustries since information asymmetries are more pronounced. This study       competitive advantage. Finally, we discuss the implications of our re-
has important implications because knowledge-based theories of the           search on firms in knowledge-based industries.
firm explicitly minimize the threat of opportunism. Additional work is
needed exploring how markets adapt to information asymmetries asso-
ciated with knowledge-based assets.                                          From Customer Orientation to Customer Integration:
                                                                             Using Information Technology to Integrate
From Stakeholder Value to Shareholder Value: The                             Customers into the Firm’s Knowledge Creation
Effects of Privatization Processes on R&D Scale and                          Process (Track F)
Scope (Track J)                                                                     Emanuela Prandelli, Bocconi University
       Federico Munari, University of Bologna                                As firms become more specialized and technology develops, the con-
       Maurizio Sobrero, University of Bologna                               ventional approach to creating knowledge within the firm's boundaries
                                                                             grows inadequate. Firms need the contribution of their customers and
Although the economic and welfare consequences of privatization pro-
                                                                             partners to catalyze their process of knowledge generation. While firms
cesses have been widely studied, it seems that less attention has been
                                                                             in business-to-business markets have traditionally involved customers,
paid to understanding how these processes affect corporate R&D and
                                                                             firms in consumer markets have rarely collaborated with them to co-
hence the innovative performance of the firm. This work aims at ex-
                                                                             create new offerings. In consumer markets, where customers are frag-
plaining and assessing whether and how in privatized companies cor-
                                                                             mented and numerous, the interactions with firms have traditionally
porate R&D is subject to change in terms of strategic priorities, and
                                                                             been conceptualized as one-way relationships of "customer knowledge
scale and scope of relative investments. We test our theoretical argu-
                                                                             import", or learning about customers. However, information technol-
ments with an event-study methodology, documenting the variation in
                                                                             ogy now allows consumer market firms to directly involve customers in
the scale and composition of R&D activities in companies subject to
                                                                             knowledge creation. By managing virtual communities of consumption,
privatization processes. We compare the pre- and post-privatization R&D
                                                                             firms can enable a social dimension of consumption in real time, favor-
effort of 37 companies from 9 European countries that were fully or
                                                                             ing direct interaction, both with and among customers. As a conse-
partially privatized through public share offering between 1980 and
                                                                             quence, a new model of innovation is emerging.
1997. Results show that, after controlling for inter-industry differences,
privatization processes negatively affect different measures of R&D com-
mitment.                                                                     Public-Private R&D Collaboration in Europe: Its
                                                                             Effectiveness for Participants (Track F)
                                                                                    Caroline Mothe, University of Paris X-Nanterre
                                                                                    Bertrand Quelin, Groupe HEC
                                                                             Some studies on collaboration assume that the cooperation is directly
                                                                             related to the firm's strategic choices based on an innovation. This
                                                                             paper examines the type of relationships that exist between companies

       Monday                                         10:00 - 12:00
    and public laboratories or universities involved in the same R&D con-          MULTILEVEL ENTREPRENEURSHIP
    sortium. The main objective of the paper is to clarify the relationships
                                                                                   Panel                            Track I                        Room 11
    between the organizational form adopted and the intrinsic characteris-                Peter Lorange, IMD
    tics of partners. The analysis is based on a sample of 317 industrial                 Bala Chakravarthy, IMD/University of Minnesota
    partners and 134 research institutes having collaborated in a European                Tsviatko Ganev, Electronic Groupe
    EUREKA R&D consortium. By examining the impact of the partners'                       James Gallagher, Friskies Europe
    characteristics and of the organizational forms on the types of resources
                                                                                   The presentations in this panel are based on a multi-year study of cor-
    created, this study contributes to the strategic management of inter-
                                                                                   porate entrepreneurship in six leading multinational companies in both
    firm cooperation, which is increasingly addressing the issue of improv-
                                                                                   Europe and North America. This panel will focus on the role of the
    ing public-private relationships.
                                                                                   internal entrepreneur as a key driver of organic growth in corporations.
                                                                                   Two successful internal entrepreneurs, from L.M. Ericsson and Nestlé,
    The Importance of Industry versus Firm in Long                                 will participate in this panel and present their perspectives on the chal-
                                                                                   lenges and opportunities for corporate entrepreneurship in large corpo-
    Term Performance (Track A)                                                     rations. Besides the vital contributions of the internal entrepreneur,
           Mats Lingblad, London Business School                                   successful entrepreneurship in large companies requires a multi-level
    Previous studies have noted that firm specific effects explain a larger        effort, including that of the sponsor and even top management. The
    portion of the variance in return on assets than industry effects do           two academics on the panel will discuss the multiple entrepreneurial
    (e.g. Rumelt 1991, McGahan and Porter 1997). On theoretical grounds,           roles that are required to nurture internal growth in large corporations.
    this paper argues that return on assets and Tobin's q are not the most
    appropriate performance measures. Two different performance measures
    used in tandem are proposed to have more appealing characteristics.            LEADING FROM THE TOP: THE NECESSARY BREED TO
    Empirical results for these performance measures as well as other mea-         RUN CONGLOMERATES
    sures are presented. The study generally supports previous research,           Panel                            Track I                         Room 14
    but puts a larger emphasis on industry effects.                                       Paola Dubini, Bocconi University
                                                                                          Hartwig Rüll, Siemens AG
                                                                                          Riccardo Gavazzi, Carlo Gavazzi Holding AG
    Image and Communcation Portfolios: What are                                           Luca Ungaro, Booz•Allen & Hamilton
    Mobile Phone Makers Learning from the Fashion                                  Business-level and corporate-level strategies are different things: the
    Industry? (Track F)                                                            former positions the firm within its competitive environment, the latter's
           Antti Ainamo, Helsinki School of Economics & Business                   broader scope explores all other actors and markets. Why are conglom-
           Marie-Laure Djelic, ESSEC Groupe                                        erates systematically discounted versus more focused groups? The
    The market based on third generation of mobile telecommunications              parenting advantage loses emphasis as markets mature, but conglomer-
    technology is emerging. We began a quest to understand how Nokia,              ates with superior management's thrive anyway. Siemens, Philips are
    Motorola and Ericsson jockey for position. We found they experiment            examples, as are those that pursue entrepreneurial opportunities. Carlo
    with new organisational forms, form a myriad of alliances and construct        Gavazzi is a mini-conglomerate with a successful record in shifting gears.
    radically different value chains. In addition, we produced a more fun-         GE exhibits a board of experienced industrial executives with diversi-
    damental, perhaps surprising finding. The fashion industry may be              fied careers. A correlation exists between quality of corporate-level
    'low-tech' industry in contrast to third generation mobile phones. How-        management - intellectual skills and encyclopedic backgrounds - and
    ever, the fashion industry's model fits the way the mobile phone makers        appreciation of the conglomerate by the financial community. Early
    jockey for position better than does any earlier known model of strat-         identification and exploitation of newly-emerging businesses are fun-
    egy in third generation mobile phones. It explains the logic by which          damental for superior corporate performance.
    especially Nokia and Motorola grow their reputation, mobilize and con-
    trol their stakeholders, and raise their shareprice.                           CREATIVITY, INTUITION, AND INNOVATION IN
                                                                                   STRATEGY CREATION
     PAPER/PANEL SESSION              10:30 - 11: 45                               Paper                            Track G                          Room 9

    BUILDING THE FITNESS TO COMPETE: A REPORT ON                                   Intuition in Strategic Decision Making: Friend or
                                                                                   Foe in the Entrepreneurial Millennium?
    AN ACTION LEARNING PROJECT                                                            C Chet Miller, Wake Forest University
    Panel                             Track D                          Room 7             R Duane Ireland, University of Richmond
            Michael Beer, Harvard University
                                                                                   With common sense and numerous anecdotes indicating that intuition
            Russell Eisenstat, Center for Organizational Fitness
                                                                                   is necessary in times of change, intuitively dominated decisions are
            Steve Fossi, Agilent Technologies Inc
                                                                                   likely to increase in the entrepreneurial millenium. On the face of it,
    The panel will present the results of a decade-long action-research project    this would seem to be a good thing. But is it? This paper is a critical
    on the dynamics of effective strategy implementation and organiza-             review of intuition. It should be timely since intuition has attracted
    tional adaptation. Data was collected using a unique intervention meth-        popular and academic attention yet has not been evaluated as rigor-
    odology, Organizational Fitness Profiling". Profiling is distinctive in that   ously as needed by strategy and organizational researchers. Our analy-
    managers, rather than researchers or consultants, collect and analyze          sis carefully frames basic questions about the structure, process, and
    data on the specific practices and organizational arrangements that            effectiveness of intuition. Our purposes are to offer propositions for
    help or hinder strategy implementation, unconstrained by the inter-            empirical testing, to evaluate existing theory against an almost mysti-
    ventionists' prior assumptions. The panel will review: The underlying          cal approach to decision making, and to inform management practice.
    theory of strategic alignment and adaptation embedded in Fitness pro-
    filing. Cross-company findings from application of the methodology in
    over 150 organization units in 10 corporations in the U.S., Europe, Asia       Where Does 'Innovative' Strategy Emanate from in
    and Latin America. Key learning's from the multi-year application of           Organizations?
    this methodology at Agilent Technologies' Santa Rosa Systemms Divi-
                                                                                          Martin Josef Deiss, University of St Gallen
                                                                                          Christoph Lechner, University of St Gallen
                                                                                          Günter Müller-Stewens, University of St Gallen
                                                                                   This paper investigates the question, 'where and how innovative strate-

                                                                                10:30 - 11:45                                     Monday
gic initiatives originate from in organizational settings'. It studies, how    - How does the knowledge one has at the outset need to be transformed
certain processes within firms contribute to the formation of innova-          and redistributed?
tive initiatives, so that a link between strategy process and strategy         The analysis is carried out be each member of the project team acting
content issues can be established. The concept of a 'innovative strate-        independently after which they engage in a process of 'perceptual syn-
gic initiatives' is introduced as the kind of strategic behavior that fun-     thesis'.
damentally differs from the established conduct of a firm and a frame-
work is developed, that encompasses three 'strategy arenas': (1) Formal
Planning and Decision Making; (2) Informal Strategizing; and (3) Hy-           Strategies for Capability Development and
brid Process Forms. Then, plausible reasons are sketched out that would        Performance
corroborate the idea that 'innovative initiatives strategy emanates from              C Annique Un, Massachusetts Institute of Technology
each of the three arenas. Theoretical propositions are derived from the        This paper develops the resource-based view of the firm by showing
assessment and discussion of these arguments and ramifications for             how companies develop the capability to create and mobilize knowl-
managers, consultants, and academics are presented.                            edge for innovation. The inductive case study and large sample study
                                                                               of U.S. and Japanese multinationals reveal that companies develop this
Strategic Decision Quality: The Influence of                                   capability following one of three strategies: the "organization" strat-
                                                                               egy whereby the investment is made in developing their human re-
Creativity and Rationality                                                     sources regardless of when they are used in the process of innovation,
       Jill Hough, University of Tulsa                                         "project team strategy" whereby the investment is made only as needed
       dt ogilvie, Rutgers University                                          in the process of innovation, and "mixed" strategy whereby the invest-
This research provides a test of the multi-theoretic model of strategic        ment is made at both levels. Although more companies follow the
decision making where contextual factors, manager cognitions, and              "project team strategy", the "mixed" strategy is associated with higher
managerial actions are used to predict strategic decision quality. In          performance in terms of the capability developed and financial perfor-
particular, environmental dynamism and functional position are used            mance.
as contextual factors, industry background and creativity of the man-
ager are explored as cognitive factors, and environmental scanning is
examined as a managerial action. The sample consists of data collected         Emergence and Institutionalization of Alliance
from 364 senior-level managers who participated in a simulated deci-           Management Capability: Empirical Evidence from a
sion making environment. More complete understanding of the com-               Cross-Sectional and a Longitudinal Study
plex interactions between context, cognitions, and actions will allow                 Werner Hoffmann, Oesterreichisches Controller-Institute
organizations to create strategic decision-making processes that lead
                                                                               It can be observed that the importance of alliances and networks has
to higher-quality decisions. As strategic decisions often have long-
                                                                               increased greatly in the world of business during the last decade. There-
term consequences, their improvement can be critical to the success of
                                                                               fore a company's ability to cooperate - its alliance management capabil-
the firm.
                                                                               ity - has become crucially important for maintaining competitiveness.
                                                                               With this in mind, this research project has tried to determine what the
Strategy Creation in Complexity: Adaptive and                                  aspects of "alliance management capability" are, how companies in highly
Creative Learning Dynamics                                                     competitive industries build alliance management capability, and what
       Patrick Regnér, Stockholm School of Economics                           institutions and instruments of alliance management they use to store
                                                                               and transfer this knowledge within the organization. Furthermore we
This paper explores how strategy is created and changed and, more
                                                                               explored how the focal firm's alliance management capability co-evolves
specifically, how strategy process is related to strategy content in strat-
                                                                               with its alliance portfolio and the institutional, technological, and com-
egy-creation. Based on the findings in a single longitudinal in-depth
                                                                               petitive environment.
case study and three retrospective cases involving four multinational
enterprises, it shows how strategy process influences strategy content
through two fundamentally different logics: adaptive and creative learn-       Development of Dynamic Individual Capabilities in
ing dynamics. The paper demonstrates that strategy-creation originates         Firms: Strategic Adaptation or Competence
in the periphery of the organization and in an outer context character-
ized by complexity. Coordinating and transforming creative learning
                                                                                      Paul Gooderham, Norwegian School of Economics & Business
dynamics, including explorative and inductive knowledge assimilation
practices, drives strategy-creation. Barriers to strategy-creation are found
                                                                                      Bente Løwendahl, Norwegian School of Management
in the adaptive learning dynamics located in the centre of the firm.
                                                                                      Odd Nordhaug, Norwegian School of Economics & Business
Tension between creative and adaptive learning dynamics is of vital
importance in inducing change.
                                                                               The paper reports a study of firms’ intentions to develop competences
                                                                               in the form of dynamic individual capabilities (DICs) among their
BUILDING CAPABILITIES: INDIVIDUAL AND                                          employees. The analysis is based on a cross-sectional random sample
INSTITUTIONAL                                                                  survey study of Norwegian firms with 100 or more employees. The
Paper                             Track F                          Room 10     findings support the assumption that intentions to build DICs are
                                                                               related to a proactive competence orientation in firms. Little sup-
Operationalizing Knowledge Management Concepts                                 port is provided for the assumption that such intentions are linked
       Richard Hall, Durham University                                         to the degree and toughening of the competition or to the degree of
       Pierpaolo Andriani, Durham University                                   numerical flexibility. Furthermore, the results do not convey any
Knowledge Management (KM) involves the creation, sharing and appli-            evidence of a positive relationship between a clear, formalized strategy
cation of knowledge in a given context. The KM technique which is              and intentions to develop DICs, whereas firm size has a positive impact
described in the article is largely about knowledge sharing. The tech-         on such intentions.
nique follows a structured approach which comprises a sequence of
- What are the features which will describe the successful innovation?
- What are the knowledge gaps which need to be bridged in order to
deliver each feature?
- How wide is each gap and what is the nature of the new knowledge?

      Monday                                        10:30 - 11:45

    NEW PRODUCT SEARCH             AND INTRODUCTION                              in diversity lead to increases in coordination costs. Our results suggest
                                                                                 that commitment to physical assets and technology choice drives prod-
    Paper                            Track F                         Room 12
                                                                                 uct and product line diversity. Furthermore, financial performance in-
    More Good Things Are Not Necessarily Better: An                              creases in product diversity and tends to decrease in the number of
    Empirical Study of the Relationship between                                  product lines.
    Strategic Alliances and Innovative Output
           Frank Rothaermel, Michigan State University                           How Do Large Firms Renew Over Time? Trajectories
           David Deeds, Case Western Reserve University
                                                                                 of Change of Financial Service Firms in the UK and
    We studied over 2,200 alliances in the biotechnology industry entered
    into by 325 biotechnology start-ups over a time period of 25 years. We
                                                                                 the Netherlands
    are not only interested in the relationship between a new venture's                 Charles Baden-Fuller, City University Business School
    alliance activity and its research productivity, but also in the question           Frans A J van den Bosch, Erasmus University-Rotterdam
    of the differential impact of different types of alliances on research              Henk Volberda, Erasmus University-Rotterdam
    productivity. We are able to show that the relationship between a                   Bert Flier, Erasmus University-Rotterdam
    firm's alliance activity and innovative output takes on the form of in-             Eric Gedajlovic, Erasmus University-Rotterdam
    verted U-shaped function. In addition, a firm's capability to manage         How do large established firms renew themselves in a turbulent envi-
    alliances increases as uncertainty in the product development process        ronment? Is there a generic pattern of change or is each change journey
    decreases. Finally, firms are exposed to a positive experience affect to     rather idiosyncratic? We posed three questions about the nature of
    alliance intensity. However, all different types of alliances reach a        renewal patterns. First, how do firms combine external versus internal
    maximum performance point, thus, more good things are not necessar-          initiatives in a strategic renewal trajectory? Second, how does the
    ily better.                                                                  balance of exploration and exploitation evolve in a renewal trajectory?
                                                                                 Finally, do different renewal trajectories give rise to different or similar
                                                                                 outcomes? Using an innovative methodology we described and ana-
    New Product Search in the Robotics Industry                                  lyzed the strategic renewal journeys of eight large financial service
           Riitta Katila, University of Texas-Austin                             firms in the Netherlands and the U.K. during the period 1990-1997. We
           Gautam Ahuja, University of Texas-Austin                              found equifinality in viable renewal trajectories. Four of the five Dutch
    This paper examines how firms search, i.e., solve problems, to create        firms show similar outcomes due to mimetic behaviour. All three U.K.
    new knowledge. We create an integrated framework of different types          firms displayed similar trajectories. Firms in both countries show simi-
    of search approaches in a two-dimensional search space - based on two        lar patterns regarding the exploration/exploitation balance, but differ
    new search dimensions, depth and scope - and examine the indepen-            with respect to external versus internal initiatives.
    dent and combined effects of these search approaches on new product
    introductions. This research draws on three theoretical perspectives:
    organizational learning, resource-based view, and the evolutionary per-
                                                                                 Winning through Outsourcing: Cost, Focus, or
    spective. Longitudinal data from the industrial robotics industry is used    Learning?
    for testing the predictions of the study.                                          Nicola Dragonetti, INSEAD
                                                                                       Karel Cool, INSEAD
                                                                                       Frédéric Dalsace, INSEAD
    Strategies of Introduction of New Technologies in                            Though outsourcing is a pervasive phenomenon in today's business world,
    the Biotech Sector                                                           contributions in the literature seem to consider it simply as a miniature
           Vittorio Chiesa, Cattaneo University                                  problem of vertical integration. We argue that outsourcing is more than
           Giovanni Toletti, Polytechnic of Milan                                the opposite of vertical integration, and suggest three perspectives to
    In these years, on account of the increasing pace of technology innova-      look at outsourcing: the efficiency view, the resource-based view. and
    tion, the phase of market introduction of the innovation has assumed a       the dynamic capabilities view. Each perspective yields different hypoth-
    growing importance and it has become particularly difficult and risky.       eses on the occurrence and performance implications of outsourcing,
    The analysis of introduction strategies is particularly important in the     which we then test using data from a database of French SMEs.
    emerging hi-tech industries in which firms have very few examples of
    past introductions suited to guide the definition of their own policy.
    The biotechnology sector is one of the most interesting examples of
                                                                                 Dodgy Business? Adverse Relationship between
    emerging hi-tech industry. Hence, the aim of this paper is twofold. On       Acquisition and Value Creation in Italian Acquired
    the one hand we would like to identify the main critical factors influ-      Firms in the Period 1991-1994
    encing the introduction of new technologies in the biotech sector. On               Luigi Benfratello, CERIS-CNR
    the other hand we would like to define the typical characteristics of               Giovanni Battista Dagnino, University of Catania
    introduction strategies in the biotech sector.                               Basing on empirical evidence from a sample of 224 Italian firms ac-
                                                                                 quired in the early nineties (1991-94), the aim of this paper is to show
                                                                                 how low management quality may affect acquiring firms' ability to cre-
    DYNAMIC SCOPE OF         THE   FIRM: INTERNATIONAL                           ate value through acquisitions. Contrasting a great deal of the litera-
    EVIDENCE                                                                     ture in the domain, for which mergers and acquisitions are either profit
    Paper                            Track B                         Room 13     neutral or even create value (e. g. Cosh, Hughes & Singh, 1980, for
    Commitment, Product Market Diversity, and                                    U.K.; Lichtenberg & Siegel, 1987, for U.S.), our findings show that the
                                                                                 overall post acquisition performance in the short-medium run does not
    Performance: An Intraindustry Analysis                                       improve, even if acquired units were clearly underperforming in the
           Thorbjørn Knudsen, Odense University                                  reacquisition period. Our contention is that the key motive for this
           Bo Eriksen, Odense University                                         poor post acquisition performances found in our sample is given by the
    Previous empirical diversification research has largely ignored the com-     low quality of Italian management. The traditional underestimation of
    bined effect of input and output diversity as drivers of financial perfor-   managerial education which has taken place in Italy may account for
    mance. In view of this gap, the present paper provides an empirical          much of the above lack of managerial capabilities or response.
    analysis of the link between intraindustry commitment, diversity of
    the firm's product market portfolio and performance. We suggest that
    commitment constrains the ability to diversify, and that product mar-
    ket diversity can be evaluated with respect to the extent that increases

                                                                               10:30 - 11:45                                  Monday
FACTS OF LIFE                                                                MARKETPLACE
Paper                            Track A                         Room 15     Paper                           Track D                        Room 16
Evolutionary Diversification Patterns of US Banks                            Market Experience, Reputation, and the Price
and Their Differential Effect on Performance from                            Performance of Australian and New Zealand Wines
1982-1999                                                                    in the US Market, 1987-1999
        Carmen Weigelt, Duke University                                            Peter Roberts, Carnegie Mellon University
        Arie Lewin, Duke University                                                Ray Reagans, Carnegie Mellon University
This paper analyzes the process of diversification through mergers, the      Reputations for quality confer benefits to the firms that hold them.
evolution of different merger adaptation patterns, and their differen-       They are valuable in their own right, and they increase the returns to
tial effect on performance in the U.S. banking industry from 1982 to         current quality demonstrations. This paper extends our thinking about
1999. Path dependence, firm-specific cumulative learning, and varia-         reputation dynamics by examining the emergence of reputations within
tion in firm replication of merger strategies seem to have caused the        developing markets. Low levels of market experience make it less likely
observed heterogeneity in merger adaptation patterns. Analyzing the          that consumers will have observed prior quality demonstrations. Less
diversification patterns by which banks established presence in adja-        experience also causes consumers to discount the quality signals that
cent financial services industries, the study detects different rates of     they have observed. Therefore, the positive effect of prior quality dem-
merger entry, breadth, and depth among banks. Those differences are          onstrations should be lower for inexperienced producers, and for all
hypothesized to be due to different firm histories of exploration and        producers when the overall level of market experience is lower. These
exploitation adaptation, routines, and capabilities. The different pat-      expectations are confirmed in our analysis of Australian and New Zealand
terns of diversification breadth versus depth are expected to cause dif-     wine producers selling into the U.S. market over the 1987-99 period.
ferent performance outcomes among banks over time.
                                                                             The Mating Dance of Elephants and Mosquitoes: An
Formulating a Model of Strategic Entry:                                      Empirical Commentary on the Issues Driving New
Entrepreneurship in the Securities Industry                                  Business Models within the Global Marketplace
        Dara Szyliowicz, Texas Tech University                                      Richard Goodman, University of California-Los Angeles
        M Tina Dacin, Texas A&M University                                          Jeffrey Rigsby, Virtual CEO
This paper seeks to show that population dynamics, and in particular,        For the next decade high market capitalization figures and consolida-
blending and segregating processes lead to new types of resource parti-      tion of the European capital markets will drive flourishing technology
tioning. These play an important role in establishing the conditions         based entrepreneurial activity. This extraordinarily rapid technological
that enable new venture creation and that subsequently shape compe-          revolution will in turn shift power from incumbents to insurgents and
tition and activity.            An analysis of the mechanisms                will dramatically reshape the nature of the business landscape. Large
underlyingpartitioning helps to explain how "windows of opportunity"         firms and small will struggle with outsourcing their mission critical
for new venture creation open and close in accordance with the dynam-        processes and new contractual forms will be developed to align strate-
ics of the resource space. We contend that the expansion, contraction,       gies and incentives amongst diverse organizations that can no longer
and diversification of niches affects entrepreneurial entry and exit pat-    command strategic mindshare from their critical resources. The new
terns as well as subsequent competitive dynamics and that these, in          economy will be increasingly webified with incumbent and insurgents
turn, help to shape, create or destroy resource spaces. We test this         tangled in a web of organizational fragments operating under a regime
argument empirically by investigating changes in resource dynamics           of perverse incentives.
on new firm entry over 30 years in the U.S. securities industry through
firm and population level variables.
                                                                             Building Capabilities for New Challenges: Strategic
Predators or Prey? The Effect of Local Competitors'                          Process and Global Sustainability
                                                                                    Stuart Hart, University of North Carolina-Chapel Hill
Economic Health on Motor Carrier Survival                                           Mark Milstein, University of North Carolina-Chapel Hill
       Jackson Nickerson, Washington University-St Louis
                                                                             Sustainable development has emerged as an important challenge for
       Brian Silverman, Harvard University
                                                                             corporations expanding into new global markets. But while much ef-
Do financially weak competitors generate stronger or weaker competi-         fort has been devoted to understanding what "sustainability" means for
tion than economically healthy competitors? Prior theoretical research       firms, academics have devoted little attention to understanding the
from both financial economics and sociology provides conflicting pre-        internal strategic processes that produce effective strategies for sus-
dictions. In this study we examine how local competitors’ economic           tainable development. This paper seeks to address this gap by develop-
health influences a focal firm’s rate of exit. We focus on two dimen-        ing a conceptual model of how internal strategic processes lead to cer-
sions of "localized competition": geographic proximity of neighboring        tain types of actions and behaviors by firms, holding specific implica-
competitors and "strategic" proximity of these neighbors (the degree to      tions for those companies attempting to pursue strategies for sustain-
which they pursue strategies that target similar factor market and prod-     able development. We use a set of case examples to highlight our frame-
uct market resources). We derive theoretical predictions for the effect      work and propose the manner in which researchers can empirically test
of local rivals’ economic or financial health on a focal firm’s mortality.   the relationship between internal strategic process and strategies of
We test our hypotheses through a study of the U.S. for-hire interstate       sustainability.
trucking industry from 1977 through 1991, which encompasses the dis-
equilibrium period associated with deregulation of this industry.

       Monday                                       10:30 - 11:45

                                                                                Paper                            Track H                         Room 18
    Paper                            Track J                        Room 17     Cyberbanking's Business Models: Assessments from
    Competitive Shocks in Emerging Economies: The                               Germany
                                                                                       Rudi K F Bresser, Free University-Berlin
    Case of Argentina
                                                                                       Erik Eschen, Free University-Berlin
            Alejandro Carrera, University of Austral
                                                                                       Klemens Millonig, Free University-Berlin
            Aluaro Vilaseca, University of Montevideo
            Eduardo Fracchia, University of Austral                             This empirical study assesses the future of I(nternet)-Banking from the
            Hector Rocha, University of Austral                                 perspective of German bankers and IT-experts. Through the prolifera-
                                                                                tion of I-Banking, the integrated value chain of traditional retail bank-
    What is the impact of openness, rapid privatization and deregulation
                                                                                ing will become deconstructed and modularized, which raises a number
    in emerging economies on economic groups (EGs)? This work objec-
                                                                                of practical and research issues. These issues affect the structure of the
    tive is to answer this question applied to the Argentinean EGs, analyz-
                                                                                industry, e.g., the levels of specialization and cooperation, as well as
    ing how they reacted to the competitive shock that Argentina has un-
                                                                                the internal functioning of I-banks, and their necessary resources and
    dergone since 1991. This intends to verify if EGs' answer agrees with
                                                                                capabilities. The questions investigated concern new business models
    the conventional theory about EGs grade of internationalization,
                                                                                of retail banking, types of interfirm-alliances, the role of foreign com-
    diversification, and vertical integration. More than 20 Argentinean EGs
                                                                                petition, entry of firms from non-bank industries, and the resources
    were studied. By contrasting the hypotheses with the results from
                                                                                and capabilities necessary for successful electronic retail banking.
    the surveys, the preliminary conclusions of the study are that after
    the competitive shock, Argentinean EGs
      - role as intermediaries did not decrease.                                Linking the Old and the New: Incorporating e-
      - degree of diversification increased to some extent.                     Commerce into Firms' Activity Systems
      - degree of vertical integration remained the same.                              Daniel Levinthal, University of Pennsylvania
      - internationalization increased in several cases.                               Nicolaj Siggelkow, University of Pennsylvania
                                                                                       Julie Wulf, University of Pennsylvania
                                                                                The internet poses both an enormous threat and great opportunity to
    Making Strategic Entrepreneurial Decisions in a                             many incumbent firms. While for some firms the internet constitutes a
    Volatile Transitional Environment: The Case of                              disruptive technological change, for other firms the internet provides
    Russia                                                                      an opportunity to strengthen their existing strategic positioning. We
           Daniel McCarthy, Northeastern University                             develop an analytical structure based on the framework of activity sys-
           Sheila Puffer, Northeastern University                               tems and fitness landscapes to provide insight into these important
           Alexander Naumov, Moscow State Unviersity                            and challenging issues. We further analyze diverse structural choices,
                                                                                such as internal web divisions, the creation of free-standing subsidiar-
    Managers in the evolving Russian economy have been required to make
                                                                                ies, or the issuance of tracking stock, that firms have undertaken to
    decisions in the context of a highly volatile and ever-changing political
                                                                                resolve the tension posed by a diverse activity system that spans both
    and economic environment. Our study shows that they could not have
                                                                                the worlds of "brick" and "click."
    done so with any degree of success without a strong entrepreneurial
    orientation. We identified four phases during the country's attempts at
    transitioning to a market economy during the 1990s: commercializa-          Establishing an e-Commerce Beachhead: Optimal
    tion, privatization, nomenklatura, and statization. The requirements        Self-Cannibalization as a Defensive Strategy for
    placed upon managers varied with each phase, resulting in differences
    in their decision making and strategic processes. These results are in-
                                                                                Brick-and-Mortar Firms
    cluded in a study of ten Russian companies, including five                         David Croson, University of Pennsylvania
    entrepreneurships, that spanned the decade and included numerous                   Christina Fang, University of Pennsylvania
    annual interviews at company sites. The entire study is presented in        Brick-and-mortar incumbents in many industries find themselves at-
    our book, The Russian Capitalist Experiment: From State-owned Organi-       tacked unrelentingly by fully virtual e-commerce entrants, whose ser-
    zations to Entrepreneurships, published in March 2000.                      vices appeal to a substantial market segment. We model the painful
                                                                                decision of establishing an e-commerce beachhead -- deliberately de-
                                                                                stroying their own firm's products' profitability -- versus the passive
    Crisis and Competition in Strategic Decision-                               alternative of repricing but yielding market share to the entrant. In our
    Making: Credit-Rating Agencies and Their Response                           linear spatial model, the incumbent responds to entry by establishing a
    to Turbulence in Emerging Economies                                         second location positioned to 'defend its turf' while retaining brick-
            Gerry McNamara, Michigan State University                           and-mortar operations. We show that, while establishing a beachhead
            Paul Vaaler, Tufts University                                       dominates relying on price reductions, its optimal location depends on
                                                                                several strategic effects. Further, the two-location strategy's ability to
    How do crisis and competitive factors skew strategic risk assessments of
                                                                                replicate the pre-entry profits depends critically on the degree of prod-
    emerging economies? We address this question in the context of expert
                                                                                uct differentation. Optimal self-cannibalization comprises a signifi-
    credit-rating agencies and their assessments of emerging markets dur-
                                                                                cant portion of market share.
    ing the economic crisis of 1997-98. We test for whether and how agency
    risk assessments were skewed by competitive positioning and dynamics
    among the agencies. We find first that the crisis was linked to an          NEW IDEAS      FOR THE     NEW ECONOMY
    increased likelihood that risk assessments would be negatively biased.      Paper                            General                         Room 19
    Second, we find that the responses of agencies to the crisis were influ-
                                                                                Knowledge Creation and Utilization: Promoting
    enced by their positioning as either an incumbent or an insurgent in-
    dustry member and by the geographic focus of their business. This study     Dynamic Systems of Creative Routines
    illustrates the interactive role of competitive positioning and crisis in          Ikujiro Nonaka, JAIST/University of California-Berkeley
    strategic assessments of risk.                                                     Patrick Reinmoeller, JAIST
                                                                                A knowledge management system that is defined by closed circuits and
                                                                                sharing routines neglects contextual knowledge. Organizations must
                                                                                develop a dynamic business system to create and utilize knowledge
                                                                                effectively and efficiently. Dynamic systems integrate structural and

                                                                               10:30 - 11:45                                     Monday
processual components and are open to continuously changing con-             KNOWLEDGE FLOWS WITHIN ORGANIZATIONS
texts. Business systems aim at stabilizing sporadic organizational pro-
                                                                             Paper                            Track F                          Room 20
cesses in order to develop efficient routines, while dynamic business
systems develop creative routines to generate and utilize knowledge.         Chaebols Meet Schumpeter: The Effects of Group
Creative routines for dealing with knowledge and using contexts-in-          Structure on Innovation
motion emerge from the juxtaposition of hard and soft technologies,                  Ishtiaq Mahmood, National University of Singapore
synchronic and diachronic processes. Two case studies of Seven-Eleven        Evidence presented in this paper points out that innovative perfor-
Japan and Toyota Motor Corporation illustrate how dynamic systems            mance is maximum when business groups' share is at an intermediate
and creative routines are applied.                                           level, suggesting that either too much or too little entry barriers could
                                                                             be harmful for innovation. By explicitly testing for two of the channels
The Genes of Strategy Innovation                                             by which group members may have an advantage over non group mem-
       David Choi, Strategos                                                 bers, this paper provides a test of causality between group's share in a
       Gary Hamel, London Business School                                    sector and that sector's innovative performance. Despite the recent
       Liisa Valikangas, Stanford Research Institute International/          anti-group rhetoric in Asia, the policy implication of the inverted-U
            Strategos                                                        curve is straightforward: as long as groups can add value by providing
                                                                             institutions that do not exist in developing countries, it may not be
The genes of strategy innovation, or iGenes as we prefer to call them,
                                                                             desirable to break them into independent companies. Instead, the gov-
represent the genetic code for differential strategies. Single iGenes may
                                                                             ernments should introduce rivalry, forcing the groups to become more
be expressed in corporate conduct in idiosyncratic ways, but in their
recombinations, the iGenes represent the evolutionary possibilities for
strategy innovation. In the "Strategy Genome Project" at the Strategos
Institute, we have so far identified more than 20 specific elements that     Knowledge Flows in MNCs: The Role of Transparency
have proven persistent in competition across companies and industries        and Transfer-Readiness
over time, as found in the reporting of leading business journals during            Steffen Raub, Asian Institute of Technology
the past two decades. This is by no means an exhaustive list: our efforts           Bettina Büchel, Asian Institute of Technology
to map the corporate strategy genome.
                                                                             In this paper we provide a review of the literature on knowledge trans-
                                                                             fer in MNCs and propose a model based on "transparency" (i.e. the abil-
Wealth-Creation and Entrepreneurial Strategies:                              ity to identify knowledge in the worldwide MNC knowledge-base) and
Process, Meta-Capabilities, and Barriers                                     "transfer-readiness" (i.e. the willingness and ability of subsidiaries to
       Grant Miles, University of North Texas                                share knowledge internationally) as key variables of successful knowl-
       Charles Snow, Pennsylvania State University                           edge transfer. We develop hypotheses regarding the most important
       Raymond Miles, University of California-Berkeley                      independent variables that determine the degree of transparency and
                                                                             transfer-readiness in MNCs. Independent variables include organizational
The transition to an era of knowledge-driven innovation demands the
                                                                             media infrastructure, language, TMT characteristics, HRD activities, in-
development of a theory of strategic management that incorporates
                                                                             tegration and incentive mechanisms, and dominant modes of knowl-
wealth creation through entrepreneurship. We provide a framework for
                                                                             edge development. We conclude with a framework of how different com-
such a theory by describing an emerging organizational form for inno-
                                                                             binations of transparency and transfer-readiness will influence the de-
vation that incorporates recent advances in organization structure and
                                                                             gree of actual knowledge transfer in MNCs and develop some sugges-
the development of collaboration as a new meta-capability. We com-
                                                                             tions for empirical research.
pare our framework to the industrial organization and resource-based
views of strategy, both of which focus on the appropriation of rents
rather than their creation, and point out the main barriers that inhibit     Managerial Consultative Activities in MNCs: A
the formation and pursuit of entrepreneurial strategies. Finally, we
derive the implications of our framework, including the need for a broader
                                                                             Multilevel Analysis Using Spanish Subsidiaries in
definition of firm wealth creation and the multi-firm partnership as a       Two Industries
key level of analysis.                                                              Beulah D’Souza, IESE/University of Navarra
                                                                                    Carlos Garcia Pont, IESE/University of Navarra
                                                                                    Pablo Cardona, IESE/University of Navarra
Privatization and Outsourcing: The Lessons Learned                           We develop and test a model that looks into organizational learning via
       Jan de Koning, Galan Group
                                                                             intra-firm flows of organizational knowledge. The manager is heralded
       Frederick Peters, Galan Group
                                                                             as the critical link in transferring knowledge both implicit and tacit
       Joan Meyer, Galan Group
                                                                             while structure is investigated as the independent variable at three
The privatization process, starting from a not-for-profit situation, is      levels: industry, firm, and subsidiary. The findings indicate that struc-
usually regarded as separate from outsourcing, management buy-outs,          ture does indeed foster knowledge transfer, mainly at the firm level.
and other processes originating in a business environment. However,          Consistent with our hypotheses, subsidiaries with high levels of re-
our research shows a number of similarities: the various interest groups     sources do not have the incentive to participate in intra-firm collabora-
involved, the ways in which the relationships develop, and most impor-       tion. The inherent issue concerning firm level communication and firm
tantly, the conditions necessary to evolve into a successful new busi-       culture to facilitate internal knowledge transfers yet, creating similar-
ness manifest common principles and steps. On the basis of extensive         ity among subsidiaries versus the advantages of creating valuable knowl-
research a model was developed, the "Galan Group Model". This model          edge as a result of differences among subsidiaries will be a critical issue
can be used to analyse the relation between the "mother company" and         to be addressed by future studies.
the emerging company; it is also a useful guideline for the process of
privatization, and for managing the various interests involved in an
integrative way. The model points to different options for business con-
cepts, taking account of desired market positions and optimal relation-
ships among the various players in the field. Leaders in industry, poli-
tics and local and international business illustrate the various prin-
ciples from their personal expertise and experience, highlighting the
public/private interface, and the gradual shifting of boundaries.

      Monday                                        13:00 - 15:00
                                                                                of a demonstrative study using the Hurst Exponent, a fractal tool, in
     POSTER SESSION 2                                13:00 - 15:00              order to demonstrate its application and value. The background of
    Poster                                                      Atrium Foyer    Fractal Geometry and the Hurst Exponent and a review of its uses and
    A Multidimensional Framework for Conceptualizing                            successes in other disciplines are discussed. Suggestions as to how
    Strategic Leadership (Track D)                                              strategy researchers may utilize fractal analysis are also included.
            Richard Hughes, Center for Creative Leadership
            Katherine Beatty, Center for Creative Leadership                    Reputation and Organizational Culture as Intangible
    Strategic leadership means transforming an organization to a future         Strategic Competencies in Seven of the Largest
    state of enhanced vitality through vision and values, culture and cli-
    mate, structure and systems, and strategy. In our work with the Center
                                                                                Silicon Valley Firms (Track B)
    for Creative Leadership, we use a conceptual framework that portrays               Stanley Kowalczyk, San Francisco State University
    strategic leadership as the interaction among three different dimen-               Michael Pawlish, Universum International Inc
    sions, including: (1) the individual leader; (2) the strategic leadership   Empirical measures of external perception of organizational culture and
    team; and (3) organizational systems. The systemic dimension involves       reputation were obtained for Apple Computer, Cisco Systems, Hewlett
    the interface between the organization and the broader competitive          Packard, National Semiconductor, Oracle, Sun Microsystems, and 3 Com.
    environment. The team dimension - which includes but is not restricted      For each of the seven firms: A) eight dimensions of perceived culture
    to the executive team - underscores the fact that strategic leadership is   were measured by administering a survey instrument to 273 industry
    a group process, not just the result of the top leader’s decisions or       professionals B) eight dimensions of reputation were obtained from
    actions. And the individual dimension deals with a person’s background,     the 1999 Fortune Most Admired Corporations Survey. We propose a rela-
    style and leadership strengths and weaknesses. The paper includes an        tionship exists between how external observers perceive a firm's cul-
    illustration of strategic leadership challenges posed by alternative pos-   ture and its reputation. Pair by pair regression was used to determine
    sible conditions in the systemic, team, and individual dimensions of a      relationships between culture dimensions and reputation dimensions.
    hypothetical organization.                                                  Of 64 possible dimension pairs, 36 relationships were statistically sig-
                                                                                nificant. In these seven Silicon Valley firms, the strategic competence
                                                                                of reputation may partially depend on how outsiders perceive firm cul-
    Developing Strategic Leadership in Individuals                              ture.
    (Track D)
           Katherine Beatty, Center for Creative Leadership
                                                                                Diagnosing Performance for Strategic Planning
           Richard Hughes, Center for Creative Leadership
    Developing strategic leadership in individuals is difficult because stra-
                                                                                (Track B)
    tegic leadership itself is a complex and only partially understood phe-             Jeff Trailer, Pennsylvania State University-Erie
    nomenon, and also because the process of individual development takes               Tim Smaby, Pennsylvania State University-Erie
    time and resources. This paper describes the importance of alignment                John Fizel, Pennsylvania State University-Erie
    among the multifaceted and interdependent dimensions of strategic                   Ido Millet, Pennsylvania State University-Erie
    leadership: individual, team, and systemic. It then focuses on devel-       We present a strategic business diagnosis and planning system (Excel
    opment of key strnƒegic leadership skills at the individual level: think-   based) that we have developed. This system was designed to help the
    ing, acting, and influencing. These skills are best developed through       business owner diagnose their firm's performance and use this diagno-
    experiences that contain assessment (receiving information about one's      sis to establish multiple, simultaneous, performance targets for organi-
    effectiveness), challenge (experiences that force one to operate outside    zation control. The program is interactive and requires the entry of
    of his/her comfort zone), and support (letting one know his/her ef-         financial statements: income statements & balance sheets. For com-
    forts to grow are valued). An illustration shows how assessment, chal-      parison, industry norms data (IRS dataset) are available in a pull down
    lenge, and support can guide an individual's strategic leadership devel-    window. When using the program in class, case data may be entered to
    opment plan.                                                                augment the case analysis and allow a vehicle for practical planning in
                                                                                establishing multiple, interactive performance targets. Alternatively,
                                                                                S.E.C. 10-k's or annual reports may be used. To obtain a copy to use in
    Managing the Network as a Distinctive Relational                            your course, or consulting, go to
    Capability of the Central Firm (Track C)                                    jwt5/sms/ (password: smsmember).
           Antonio Capaldo, University of Naples
    This study contributes to our understanding of the relational capabili-     Is the Governance of Transnationals Really “Beyond
    ties that 'central firms' leverage in order to manage networks of inter-
    firm collaborative relationships (ICRs) as sources of sustainable com-
                                                                                the M-Form”? The Case of ABB (Track E)
    petitive advantage. The empirical basis consists of three longitudinal             Paul Gooderham, Norwegian School of Economics & Business
    case studies of design-intensive furnishings manufacturers, successfully               Adminstration
    competing by leveraging a network of knowledge-intensive joint-de-                 Svein Ulset, SNF
    sign ICRs with numerous design firms. Over a 30-year time span, two         This paper critically examines Bartlett and Ghoshal's claim that a radi-
    distinctive relational capabilities are shared by the successful central    cal new organizational form, distinctly different from the M-form both
    firms: (1) the capability to create and preserve a 'dual' network archi-    in terms of its structure and psychological underpinnings, may be ob-
    tecture over time, integrating a large 'periphery' of weak ties with a      served amongst transnationals. The main theoretical dimensions of the
    smaller 'core' of strong ties; and (2) the capability to manage the net-    M-form and the "New Form" are delineated and compared within the
    work evolution, relying on weak ties both to initially pave the way for     context of the discourse between Transaction Costs Economics (TCE)
    change and to subsequently bring about network renewal.                     and the Knowledge Based Approach on organizational advantage. There-
                                                                                after empirical evidence centered on ABB is extended and reexamined.
                                                                                On the basis of this analysis the thesis of an emergent new form is
    Competitive Evaluation and the Fractal Rearview                             found to be unsupported. It is thus reasonable to presume that any
    Mirror: A Demonstration of Competitive Advantage                            organizational advantage transnational companies may possess resides
    Pattern (Track B)                                                           in the hierarchical governance complex, identified by modern TCE and
          Steven Samaras, University of Nebraska-Lincoln                        outlined in its multinational M-form application.
          Terrence Sebora, University of Nebraska-Lincoln
    This paper provides an overview of Fractal Geometry as an alternative
    method for competitive analysis. Specifically, it describes the results

                                                                              13:00 - 15:00                                    Monday
The Effect of Organizational Controls on Employees'                          merce. We will overview the evolving m-commerce landscape, preview
                                                                             likely developments in Europe, and present a range of possible emerg-
Information-Processing Orientation and                                       ing scenarios. Different categories of competitors will seek to dominate
Organizational Learning (Track A)                                            the m-commerce arena, by owning a significant proportion of consum-
       Mona Makhija, Ohio State University                                   ers' mind and spend, by asserting their technologies and applications
       Karynne Turner, University of Pittsburgh                              as standards, and by vertical integration along the value chain. This
This study examines the relationship between the distinctive set of          panel will address which players are best placed to win the race. We will
organizational controls utilized within firms and the impact of these        also take the perspective of large incumbent firms, in a broad range of
controls on the organization's capacity for learning. A model is devel-      industries, and discuss how they will need to respond to the emerging
oped which suggests a relationship between (a) organizational controls       changes in a key aspect of the commercial landscape.
and employees' learning orientation, (b) the aggregated impact of the
employees' learning orientation on the firm's capacity for learning, and
(c) the effect of the organization's learning capacity on its performance.
                                                                             DIVERSIFICATION: RISK, PERCEPTIONS, AND GROUPS
                                                                             Paper                        Track C                             Room 7
Five manufacturing firms provide the setting for the data collection.
The primary statistical procedure used for the analysis include the esti-    Perceptual Measures of Diversification: Empirical
mation of structural equations (LISREL). The results suggest that a          Evidence of Convergence with Objective Measures
number of the proposed relationships between controls and individual                Wim A Van der Stede, University of Southern California
orientation for learning are supported.                                      A self-reported measure of diversification is obtained from forty-six
                                                                             corporate executives, double-checked against responses obtained from
The Winning Strategies of Latecomers: An                                     their business unit managers, and compared with measures derived from
Integrated Framework (Track B)                                               objective, publicly available data. The results show that measuring di-
                                                                             versification through secondary data is potentially troublesome if the
       Yun-Cheol Lee, Hankuk Aviation University
                                                                             decision to diversify is based on considerations other than obvious prod-
       Dong-Hyun Lee, Catholic University-Korea
                                                                             uct-market relatedness. Given that managers make decisions in line
The order of entry effects on firms' performance has long been an issue      with their perceptions, it is argued that self-reported measures are more
in many areas of study such as strategy, marketing and international         appropriate when the impact of diversification on managerial decision-
business. We review previous studies on early mover advantages and           making is studied. Limitations of the proposed approach, refinements
disadvantages, and group the existing studies into three models: order-      to the measurement of relatedness in diversification, and extensions
of-entry, first-mover advantage, and catch-up model. Previous studies,       for future research are discussed.
however, have not been able to show consistent results on the relation-
ship between the order of entry and performance. Furthermore exist-
ing theories can not adequately explain how latecomers compete suc-          Estimating the Performance Effects of Business
cessfully or even leapfrog early-movers. In this paper, we construct the     Groups in Emerging Markets
integrated conceptual framework of latecomer strategies. Through this               Tarun Khanna, Harvard University
framework we suggest six generic latecomer's strategy and fourteen                  Jan Rivkin, Harvard University
types of latecomer's advantage.                                              Business groups are ubiquitous in emerging economies, yet very little is
                                                                             known about the effects of group affiliation on firm performance. We
 PAPER/PANEL SESSION               13:15 - 14:30                             develop hypotheses concerning these effects and, using a unique data
                                                                             set compiled largely from local sources, test the hypotheses in fourteen
BE NIMBLE, BE QUICK: CREATING ORGANIZATIONAL                                 emerging markets: Argentina, Brazil, Chile, India, Indonesia, Israel,
                                                                             Mexico, Peru, the Philippines, South Africa, South Korea, Taiwan, Thai-
                                                                             land, and Turkey. We find evidence that business groups indeed influ-
FLEXIBILITY, SPEED, AND SURPRISE                                             ence the broad patterns of economic performance in twelve of these
Panel                        Track G                              Room 9     markets. Group affiliation appears to have as profound an effect on
        Walter Ferrier, University of Kentucky                               profitability as does industry membership. Moreover, membership in a
        Hun Lee, George Mason University                                     group raises the profitability of the average group member in several of
        John Eltring Treat, Booz•Allen & Hamilton                            the markets, contrary to the conventional wisdom that unrelated di-
        J Christopher Moran, Applied Materials Inc                           versification depresses profitability.
We discuss the organizational, competitive, and contextual factors that
facilitate flexible, adaptive competitive strategies. Our discussion inte-   Business Risk, Risk Management, and a Rationale
grates findings from empirical research, case studies, simulations, and
in-the-trenches experience. First, we explore how rigid hierarchies are      for Unrelated Diversification
disintegrated, enabling top managers to “get closer” to markets, com-               Heli Wang, Ohio State University
petitors, and the competitive context. We also discuss how managers                 Jay Barney, Ohio State University
of corporate spin-offs often develop and implement aggressive, flexible      Despite extensive research, the motives for unrelated diversification
strategies that result in superior returns. Next, we discuss the findings    are still largely unknown. While pure risk reduction reason for unre-
of a multi-industry empirical study that explains the antecedents and        lated diversification has been argued to be against stockholders’ ben-
consequences of adaptive and flexible strategies. We conclude with a         efit, we continue to see a large number of unrelated mergers and acqui-
view from the field how some Fortune 500 companies utilize new mod-          sitions going on in real business world. This paper provides another
els for corporate intelligence and strategic decision-making in the face     rationale for the motive of unrelated diversification. Firstly, it gives
of dynamic strategic challenges.                                             reasons that risk management can enhance firm value; secondly, it
                                                                             compares unrelated diversification with two other commonly applied
                                                                             risk management mechanisms available to firms - financial risk man-
M-COMMERCE AND          STRATEGIC INNOVATION                                 agement products and real options. It argues that, under certain cir-
Panel                        Track H                             Room 18     cumstances, unrelated diversification can be justified since other less
        Philip Keller, Ascom Holding                                         costly alternatives of risk management mechanism will fail in manag-
        Paul Mang, McKinsey & Company                                        ing business risks.
        Daniel Oyon, University of Lausanne
        Yves Pigneur, University of Lausanne
It is rapidly becoming clear that m-commerce, commerce conducted via
mobile telephony, has the potential to eclipse internet-based e-com-

        Monday                                         13:15 - 14:30

     PEOPLE AND OTHER SOFT ASSETS                                                   they are complimentary to the firm’s unique capabilities and less easily
                                                                                    transferred to new firms. Star hiring has a negative effect on the per-
     Paper                         Track F                              Room 10
                                                                                    formance of other employees of the new firm. Finally, on average, ac-
     Languages and Knowledge Flow                                                   quisition of star employees is seen by the stock market as value de-
            Tzung-Wen Chen, National Cheng-Chi University                           stroying for the acquiring firms. The paper concludes that in star in-
            Se-Hwa Wu, National Cheng-Chi University                                tense businesses, there is no substitute for the internal development of
     The paper provides an alternative view of knowledge flow. Defined by           the best and brightest.
     the dilution of meaning and complexity in representation, each lan-
     guage system has its specific functions in carrying different types of
     knowledge. Knowledge exchange is then considered as relationships
                                                                                    LEARNING AND COOPERATION
                                                                                    Paper                        Track F                             Room 11
     between various language systems. A knowledge flow means the cross-
     over of two language systems. The language boundaries are then de-             External Technology Sources: Embodied or
     fined. Crossing a language boundary means expansion of existing knowl-         Disembodied Technology Acquisition
     edge. The overlapping region of two language systems means a common                   Bruno Cassiman, University of Pompeu Fabra
     language, which will facilitate certain knowledge exchange activities.                Reinhilde Veugelers, Catholic University-Leuven
     In order to clarify the subject of the paper, a successful case of interna-
                                                                                    This paper analyzes the technology BUY decision as part of the firm's
     tional technology transfer in which several language systems inter-
                                                                                    innovation strategy. We take a closer look at the two different types of
     acted with each other, between two organizations in Taiwan and the
                                                                                    external technology acquisition. On the one hand, the firm can acquire
     United States, respectively, is empirically studied.
                                                                                    new technology which is embodied in an asset that is acquired when
                                                                                    hiring new personnel or acquiring other firms. On the other hand, the
     Knowledge Investments and Entrepreneurial                                      firm can obtain new technology disembodied through a licensing agree-
     Finance: The Challenge of Matching Hard Capital                                ment or by outsourcing the technology development from an R&D con-
                                                                                    tractor. Through a series of Probit regressions, we discuss variables that
     and Soft Assets                                                                might affect external technology acquisition choices of the firm and
            Stewart Thornhill, York University                                      pay special attention to the firm's abilities to scan the market and to
            Guy Gellatly, Statistics Canada                                         absorb the technology acquired. Furthermore, we analyze the effect of
     Investments in so-called "soft" or "knowledge" assets - such as R&D -          different appropriation regimes on the sourcing decision.
     are often strongly correlated with performance. Investments in R&D
     often serve as the cornerstone of complex innovation strategies. How-
     ever, a critical issue in capital markets is that of risk-management and       Collective Invention: A New Perspective on the
     security. Thus, it is generally easier to acquire funds for plant and equip-   Process of Creative Destruction
     ment than in support of innovation or R&D. Conventional wisdom on                     Rita McGrath, Columbia University
     small-firm financing suggests that firms should match financial instru-               Brian McGrath, University College-Dublin
     ments to specific investments. Specifically, debt should be used to fi-        As the boundaries between strategy and entrepreneurship become in-
     nance hard assets while equity is more appropriate for soft assets. This       creasingly blurred, there are few more pressing or interesting phenom-
     study investigates how specific financial instruments are matched to           ena than Schumpeter’s (1942) ‘waves of creative destruction’. In this
     specific uses. It explores whether financing patterns vary across indus-       paper, we draw attention to a process that is vital to Schumpeterian
     tries that make different investments in knowledge, and between firms          economic progress, but which has been more or less ignored so far. This
     with different growth profiles.                                                is the process of collective invention (Allen, 1983), where in highly
                                                                                    uncertain contexts, organizations freely share as opposed to ‘trade’ tech-
     The Impact of Strategic Input Factors on Economic                              nological knowledge in order to improve a technology and speed subse-
                                                                                    quent market development. This process has implications for later com-
     Growth and Employment: An Econometric Analysis                                 petitive dynamics. Using the computer speech technology arena as our
     of Workplaces in Sweden                                                        empirical base, we demonstrate how collective invention leads to new
            Annette M A Nylund, NUTEK                                               ways of considering Schumpeterian processes and suggest propositions
            Lars Bager-Sjören, NUTEK                                                for further empirical testing.
            Mithra Sundberg, NUTEK
     Studies have underlined the importance of strategic human resource
                                                                                    Formation of R&D Consortia: Industry and Company
     management (SHRM) on economic performance, such as recruitment,
     incentive compensations and performance management systems, ex-                Effects
     tensive employee involvement and training (Huselid 1995). However                     Mariko Sakakibara, University of California-Los Angeles
     the enterprise learning strategy is not limited to SHRM. Networking            This study investigates economic and strategic inducements of R&D
     and innovation are also stated as crucial learning strategies for eco-         cooperation. We focus on industry and company factors that affect a
     nomic performance. Based on a survey of enterprises in trade and in-           firm's rate of participation in R&D consortia. These factors are ana-
     dustry in Sweden we construct indicators on the above stated learning          lyzed in a dynamic context using a sample of 312 Japanese firms in 74
     strategies. We simultaneously relate these indicators to economic per-         industries between 1969 and 1992. We find a firm in an industry with
     formance using econometric methods. We can conclude that learning              weak competition and appropriability conditions has a higher rate of
     strategies do matter. For example an enterprise moving from the low-           consortia participation. A firm's R&D capabilities, network formation
     est levels of employee involvement and training to the highest will gain       through past consortia, encounter with other firms in product markets,
     approximately a ten percent increase in productivity.                          age, and past participation in large-scale consortia also positively af-
                                                                                    fect its tendency of consortia formation.
     Attracting Stars to New Galaxies: Performance
     Consequences of Investment Banks' Hiring of
     Ranked Analysts
            Boris Groysberg, Harvard University
     This study examines the dynamics of hiring of star analysts by invest-
     ment banks. I find that, on average, star employees incur performance
     penalties upon joining new firms. Interfirm differences suggest that
     whereas in some firms the analysts’ skills are highly fluid, in others

                                                                              13:15 - 14:30                                  Monday
RESOURCE BASED VIEWS: ALTERNATIVE                                           capital investments from the perspective of entrepreneurs. First, we
                                                                            briefly discuss the staged financing mechanism in venture capital in-
PERSPECTIVES                                                                vestments. Next, we show how entrepreneurs may be held up after the
Paper                        Track B                            Room 12     first investment stage. We apply game theory to describe this potential
Visualizing and Simulating Competitive Advantage:                           danger to entrepreneurs arising from staged financing. Then we discuss
                                                                            some protection methods for entrepreneurs. Finally, we draw some use-
A Dynamic Resource-Based View of Strategy                                   ful implications for entrepreneurs, venture capitalists and researchers.
       John Morecroft, London Business School
Resource-based theory and system dynamics modelling offer a versatile
approach to visualising and simulating strategy. The approach is illus-     With Which (Business) Angel You Should Talk:
trated with a modelling project for an international radio broadcaster.     Results of an Empirical Success Factor Study
The resource menu of the broadcaster includes tangible resources such               Frank Huber, University of Mainz
as staff, studios, languages, and transmitters, as well as intangibles              Andreas Herrmann, University of Mainz
such as program quality and editorial reputation. Processes of asset        Despite their importance in financing and consulting young start-ups,
stock accumulation, goal seeking feedback and adaptive goal formation       business angels are still not fully understood. With this paper we hope
represent purposive building and coordination of resources. The paper       to gain a greater understanding of the attitudes, behaviours, and char-
argues that a dynamic resource-based view of strategy promises to pro-      acteristics of business angels. The fundament of this greater under-
vide greater insight and foresight into the dynamics of competitive         standing is a theoretical background and an empirical study. With the
advantage - revealing how superior performance arises ex-ante from          help of a strong theoretical background we were able to identify some
the structure and time-evolution of a firm’s resource system.               key aspects, that determine the success factors of an angel investment.
                                                                            Furthermore with an empirical study we were able to compute the in-
Interacting Competencies in Project-Based                                   fluence of these determinants on the success of an investment. Finally
                                                                            we gain insights into ways of harnessing some of their untapped poten-
Industries: The Case of Motion Pictures                                     tial so that this may aid the entrepreneurial economy by putting these
       Joseph Lampel, University of Nottingham
                                                                            resources to work for entrepreneurs.
       Jamal Shamsie, University of California-Los Angeles
In a growing number of project-based industries, much attention is
being given to the potential value and contribution of various indi-        Firm Legitimacy, Cooperative Agreements, and
vidual resources that are attached to each project. By comparison,          Performance: Evidence from Initial Public Stock
relatively little attention is being directed to the value and contribu-    Offerings
tion that stems from the interaction between these resources. In this               Timothy Reed, University of Colorado-Boulder
paper, we focus on the value of individual resources and on the value of            Kurt Heppard, US Air Force Academy
their interaction on projects in the motion picture industry. We show
                                                                            This paper examines firm legitimacy and its impact on the quantity and
that the commercial success of each film does depend in part on the
                                                                            quality of cooperative agreements at the time of a firm's initial public
recent track record of individual resources such as stars, directors and
                                                                            stock offering. We operationalize firm legitimacy as a combination of
the studio. At the same time, we demonstrate that this success is also
                                                                            total firm value, number of employees, firm age, market-to-book ratio,
determined by the history of successful collaboration between these
                                                                            and percentage of ownership maintained by the original owners. Our
different individual resources.
                                                                            research finds that firm value, market-to-book ratio, and firm age are
                                                                            positively related to an increase in the quantity of cooperative agree-
The Resource-Based View of Strategy: An                                     ments while only the value of the firm at time of IPO is positively
Evolutionist's Critique                                                     related to the quality of cooperative agreements post IPO. We provide
       Philip Bromiley, University of Minnesota                             initial insights into which variables typically associated with firm le-
       Lee Fleming, Harvard University                                      gitimacy have the greatest association with the quantity and quality of
                                                                            cooperative agreements.
While the RBV has greatly contributed to our understanding of firm
heterogeneity and imitation, it remains handicapped by contradictory
assumptions, unclear constructs, and poorly articulated causal processes.   STRATEGIC DECISION MAKING IN A NEW WORLD
Strategic management theories should face the same logical and schol-       Paper                        Track I                           Room 14
arly tests that characterize empirical social science. We begin by con-
                                                                            Building on the Basics: San Miguel's Story in
sidering what problem the RBV attempts to solve. We then clarify our
criteria for a good theory and proceed to evaluate the RBV by these         Strategic Management
criteria. The conclusion acknowledges the contributions of the RBV and              Belen Buensuceso, San Miguel Corporation
offers an alternative basis for future work in strategic management                 Pamela Ann da Silva, San Miguel Corporation
theory.                                                                     San Miguel Corporation, the Philippines' largest Food and Beverage Com-
                                                                            pany, has come full circle in its management and planning processes
                                                                            since the 1890s. While for a time relying on entrepreneurial vision and
“BECAUSE THAT’S WHERE THE MONEY IS:”                                        business acumen to drive its growth and expansion in tune with that of
CHALLENGES FOR ENTREPRENEURIAL FINANCING AND                                the Philippine economy, it began only in the 1980s to collaborate with
                                                                            the world's best gurus in Strategy: Lorange, Porter, Rappaport, Hamel/
GROWTH                                                                      Prahalad, Kaplan/Norton, pioneering the implementation of their theo-
Paper                        Track I                            Room 13     ries in Philippine/Asian business. But the company and its new man-
Shooting the Inventor: Understanding the Impact of                          agement is back to basics in the new millennium, with again a more
Staged Financing of Entrepreneurs                                           entrepreneurial approach, and purposively less of the last 2 decades'
      Clement Wang, National University of Singapore                        frills - in an effort to cope better with the fast changing, now global
      Brian Xun Wu, National University of Singapore                        economy.
Research has shown that venture capitalists can benefit from staged
financing. However, the impact of staged venture capital investments
on entrepreneurs has, surprisingly, received little attention in the lit-
erature. In this paper we study one kind of phenomenon, known as
shooting the inventor, which arises from staged financing in venture

      Monday                                         13:15 - 14:30

     Caviar or Fish Eggs: Are Some Firms' High Value                             from the relevant literature in the field.
            Karen Schnatterly, University of Minnesota                           Managing the Innovation Process: A Longitudinal
            Catherine Maritan, State University of New York-Buffalo              Examination of the Impact of R&D Spending,
     Recent stock market behavior has generated interest in the question of      Product Innovation, and Patents on Firm
     what underlies the markets' valuations of corporations' equity. Argu-
     ments in the press proclaim that a new "knowledge-based" economy            Performance
     has increased the importance of intangible assets to how firms compete             Kendall Artz, Baylor University
     and ultimately their value. Our study attempts to empirically evaluate             Laura Cardinal, University of North Carolina-Chapel Hill
     the contribution of intangibles to firm value. We ask if possession of             Patricia Norman, Baylor University
     intangible assets is supporting higher firm values, and if so, which        A firm's ability to innovate and develop new products is perhaps more
     ones. We use ANOVAs and a structural equation model to compare the          important today than ever before in determining firm productivity and
     intangible assets of matched pairs of firms, one with a high and the        growth. This paper explores the questions of a) what are the factors
     other with an average market-to-book value. We determine which of           that determine a firm's ability to generate and benefit from innovative
     our proxies for resources, capabilities, and governance are the stron-      activity and b) how have these factors changed over time? We empiri-
     gest drivers of high shareholder value.                                     cally examine our research questions using longitudinal data from a
                                                                                 cross industry study of 325 firms over a recent fifteen-year period (1985-
                                                                                 1999). Specifically, we investigate the relationship between R&D spend-
     Strategic Decision Making: Shaping the Future in a                          ing and product innovation and the role that patents play in the inno-
     Complex World                                                               vation process. We also examine the effect of innovation on firm per-
            Thorsten Gerhard, Arthur D Little International Inc                  formance and whether patents are useful in allowing a firm to capture
            Stefan Odenthal, Arthur D Little International Inc                   the benefits from its innovation. Finally, we test whether changes have
     Leading organizations are turning to powerful new techniques to facili-     occurred in the above relationships over time.
     tate and speed up their decision making. The current generation of
     techniques such as systems thinking, game theoretic approaches and          Organizational Learning and Product Designs: A
     robustness analysis - uses single tools to analyze and solve problems.
     Often these prove to be too inflexible and cumbersome for the senior        Model and Empirical Test
     executive. Beside the need for an integrated approach we see specific               Mark Pruett, George Mason University
     requirements for the output as well as for the process of decision mak-             Howard Thomas, University of Warwick
     ing. The output of decision making has to be consistent, support cor-       What implications will a firm’s innovation decisions have for learning?
     porate strategic goals and priorities, and ensure the broad acceptance      That is this study’s central question. We use data on the evolution of
     by major stakeholders. Requirements for the process itself are fourfold:    product designs over 24 years in the American automobile market to
     speed up decision making, facilitate creativity, reduce complexity, and     explore how choices about design innovation and usage affect learning.
     utilize and capture a broad knowledge base.                                 Our model extends learning curve concepts from their traditional do-
                                                                                 main of production into the product design process. In addition to the
                                                                                 concept of volume-based learning, the model considers the impacts of
     MORE INNOVATION                                                             rate, time, managerial constraints, and the diffusion of learning across
     Paper                        General                            Room 15     firms. Empirical results suggest that the nature of learning varies with
     Alternative Forms of Fit of Supplier-Manufacturer                           the nature of the item being designed and produced. The study repre-
     Relationships in New Product Development                                    sents a step toward a comprehensive and testable model of the sources
            Maurizio Sobrero, University of Bologna                              of organizational learning.
            Omar Toulan, McGill University
     In this paper, we use 93 supplier-manufacturer relationships observed       DYNAMIC CHANGE AND BUSINESS MODEL
     at the task level in the auto and white goods industries to test a sys-
     temic model of fit. In specific, we analyze the fit between the charac-
                                                                                 Paper                         Track D                               Room 16
     teristics of the task being performed in the relationship (i.e., level of
     complexity), the way in which the relationship is managed (i.e., distri-    Customer Orientation and Competence Building
     bution of decision making), and overall project performance. The re-               Johan Wallin, SMG Finland Oy
     sults support our model highlighting the strategic value of a careful       This paper looks into three specific issues. First, it elaborates in which
     design of asymmetrical distributions of design competencies and de-         context(s) firms decide to increase the emphasis on cultivating and
     sign responsibilities within vertical collaborations in new product de-     developing existing customer relationships, which is defined as becom-
     velopment projects.                                                         ing more customer oriented. Second, it investigates how the decision to
                                                                                 deepen the customer relationships is implemented. And third, it fo-
                                                                                 cuses on what implications (if any) this deepening of customer rela-
     Intuition and Strategic Rationality in Strategic
                                                                                 tionships has on competence building. These issues are addressed by
     Decision-Making: Towards an Empirical Link                                  developing a conceptual framework which has the notion of intermedi-
     between Strategic Decision-Making Models and                                ate outcomes (here called the "offerings") as a central concept, and by
     Economic Outcome in Uncertain Environments?                                 clinically analyzing five case firms that have increased the emphasis on
            Pablo Erat, University of St Gallen                                  cultivating and developing existing customer relationships.
            Georg Von Krogh, University of St Gallen
     Several scholars have argued that the increased environmental and or-       Evolution of Fit: The Voyage of Vanguard
     ganizational uncertainty, combined with the urge of top managers to                Nicolaj Siggelkow, University of Pennsylvania
     make faster decisions, has raised the importance of intuition within        While the idea of firms as configurations of choices (with respect to
     the field of strategic decision-making. However, none of the contri-        activities, policies, organizational structures, capabilities, and resources)
     butions to this issue discuss how intuition occurs within the differ-       has a long tradition in the management and organization literature,
     ent phases of strategic decision-making processes. The aim of this          the process by which configurations evolve, i.e., how firms develop sys-
     paper is to show how a link between the occurrence of intuition and         tems of interconnected choices, has not found much attention. This
     strategic rationality and the economic outcome can be established. This     paper describes two possible developmental paths for configurations,
     is done by deriving a research framework and an operational model           called patch-by-patch and thin-to-thick. The patch-by-patch develop-

                                                                              13:15 - 14:30                                     Monday
ment is characterized by managers' sequential creation and elaboration       Producing Winning New Ventures in the
of strategic themes. In contrast, the thin-to-thick development is char-
                                                                             Entrepreneurial Millennium: The Role of Specialized
acterized by an early formulation of a number of strategic themes and
subsequent elaboration with supporting choices. A case study of The          Incubation
Vanguard Group illustrates a proposed approach that can help identify               Irene Duhaime, Georgia State University
the developmental pattern of a particular firm.                                     Brett Matherne, Georgia State University
                                                                             This paper contributes to the development of new business models by
                                                                             focusing on one such mechanism to assist new ventures: business incu-
Organizing for the Future: Conceptual Framework                              bators. We examine the impact of incubator specialization on ventures’
and Empirical Evidence of Successful German                                  success, with data collected from ventures developing in general mixed-
Companies                                                                    use incubators and in high-technology specialized incubators. Focusing
       Wilfried Krüger, University of Giessen                                on incubator specialization as a critical factor in the successful devel-
       Norbert Bach, University of Giessen                                   opment of incubated ventures, we draw on and contribute to the re-
       Wolfgang Buchholz, CSC Ploenzke AG                                    search conversation on corporate strategy and related diversification.
This paper presents the results of an empirical research project using a     This research has implications for new venture managers and new busi-
holistic framework for analyzing and designing a company´s organiza-         ness formation, highlighting differences and opportunities offered by
tional structure. The theoretical framework called the Organizational        different types of incubators. Recommendations for development and
Web comprises eight parameters to describe and compare different or-         management of venture incubators, as well as for development and in-
ganizational models. On this basis a survey among 900 German firms           cubation of ventures within established diversified firms are discussed.
was carried out in order to gain insight in the relation between organi-
zational structure and performance. The sample showed five groups of         Strategic Renaissance: The Disintegration of the
successful companies ('winners') and underperforming ones ('losers').
                                                                             Persistence of Memory
These groups also show significant differences with regard to the eight
                                                                                     Bob de Wit, University of Maastricht/de Wit & Meyer Strategy
parameters of the Organizational Web. The results suggest that winners
tend to act as loosely coupled systems with output-oriented perfor-
                                                                                     Ron Meyer, Erasmus University-Rotterdam
mance measures in more decentralized structures using extensive feed-
back mechanisms for managers and employees.                                  Dali’s famous painting ‘Disintegration of the Persistence of Memory’ is a
                                                                             surrealistic view of the world, inspired by the artist’s amazement at the
                                                                             dramatic changes brought on by scientific and technological develop-
Organizational Complexity and the Sustainability of                          ments in the 1950s. Today, Dali would be even more astonished to see
Rapid Growth: Integrating Insights from Theory and                           how ICT is disintegrating industries as we once knew them. Industries
                                                                             are being reborn in a process we call strategic renaissance. Old ‘genetic
Practice                                                                     codes’ are being recombined and cross-fertilized, leading to new and
       Charlene Nicholls-Nixon, University of Western Ontario                stronger business models. This paper describes these transformation
       Niels Billou, University of Western Ontario                           processes in two industries: the telecoms and publishing industries. In
       David Shaw, University of Western Ontario                             both industries two companies are analysed to uncover common strate-
Building on complexity theory our paper argues that the ability to           gic developments. The paper leads to a number of propositions regard-
sustain rapid growth is a function of creating the conditions for "self-     ing the process of strategic renaissance in existing industries.
organization". This capacity enables the firm to manage the conflict-
ing pressures associated with controlling the complexity of the growing
organization, while at the same time fuelling the innovation that drives     POLITICAL STRATEGY
exponential growth. We assert that the ability to self-organize is differ-   Paper                         Track J                             Room 19
entially distributed across firms. We adopt a grounded theorizing ap-        Deregulated Firms, Defensive Political Strategies,
proach to enrich our understanding of why firms differ in the capacity       and the Development of New Market Capabilities
to self-organize and what actions CEO's can take to build this capacity.
Reporting on the results of a qualitative study of nine rapidly growing
                                                                             Evidence from Telecom Operators in Europe
                                                                                    Jean-Philippe Bonardi, Tulane University
Canadian firms our paper presents a set of research propositions about
the nature of these relationships.                                           In utilities, deregulated firms’ greatest challenge is to develop capabili-
                                                                             ties to face future competition. In pursuit of that goal, they commonly
                                                                             use their political connections to delay the deregulation process and
HIGH TECHNOLOGY AND STRATEGY                                                 buy time to solidify their competitive advantage. While this defensive
Paper                        Track A                            Room 17      integrated strategy is assumed to be the most efficient means to trans-
A Longitudinal Analysis of Alliance Formation                                form a bloated bureaucracy into a fierce competitor, I argue that this
Patterns in the US Telecommunications Industry:                              strategy is not efficient in all cases, and produces two disadvantages
                                                                             for the organization. Drawing on a dataset of 15 European operators, all
1985-1995                                                                    former monopolies, I demonstrate first that slowing deregulation hurts
       Jisung Kim, Duke University                                           a company’s ability to create incentives and entrepreneurial behaviors,
       Michael Lawless, Duke University                                      and second that maintaining implicit contracts with governmental au-
       Arie Lewin, Duke University                                           thorities generates mechanisms that hamper the firm’s development of
This paper investigates alliance formation patterns and learning effect      new market capabilities.
in the U.S. telecommunication industry from 1985 to 1995. We argue
that in times of increasing uncertainty firms will intensify both their
exploitation alliances which focus on current capabilities and products      External Affairs Strategies: An Empirical
and exploration alliances which look for new opportunities and focuses       Investigation
on future capabilities and products. As the uncertainty increases, the              Jennifer Griffin, George Washington University
rate of exploration alliances will grow faster than the rate of exploita-           John Mahon, Boston University
tion alliances. We address those issues by examining strategic alliance      In this age of ‘knowledge management’ the ability to acquire informa-
patterns over the time period and the relationship between strategic         tion, translate it into knowledge, and appropriately apply it within the
alliances and firm performance. This paper adopts a multi-level, longi-      corporation is a critical competitive advantage (Nahapiet & Ghoshal,
tudinal study of dynamics of firm adaptation and learning and their          1998). Within organizations, culling knowledge from disparate infor-
impacts on firm performance.                                                 mation sources is arguably difficult. Culling knowledge from disparate

       Monday                                        13:15 - 14:30
     information sources outside of the organization that are frequently          ENTREPRENEURS: THE SPIDERS OR THE WEBS?
     beyond the control of the organization is doubly difficult. Therein lies     Paper                         Track I                             Room 7
     a challenge. External affairs (EA) executives, responsible for managing
     governmental relationships, are faced with this challenge daily. This        Entrepreneurs as Intermediaries
     paper creates a typology and empirically tests four different corporate             Mike Peng, Ohio State University
     political strategies across industries and firms size using 1999 EA sur-            Heli Wang, Ohio State University
     vey data. The typology identifies structural and operational capabili-       While the relationship between entrepreneurs and intermediaries has
     ties that align EA with the firm’s social visibility and corporate strat-    been studied by both strategy and entrepreneurship researchers, inter-
     egy.                                                                         mediaries are often treated as separate organizational forms that are
                                                                                  parallel with entrepreneurs. In this article, we advance a new theoreti-
                                                                                  cal perspective that considers all entrepreneurs as intermediaries who
     Political Capabilities and Competitive Advantage in                          discover and exploit opportunities due to information asymmetries and
     the Political Marketplace: A Resource-Based View                             market failures. Specifically, we draw on transaction cost economics
            Amy Hillman, University of Western Ontario                            and resource-based theory to demonstrate how this new perspective is
            Gerry Keim, University of Western Ontario                             able to rigorously answer two of the key unanswered questions in en-
     Competing in the political arena is a critical strategic endeavor for many   trepreneurship research, 1) why entrepreneurs exist at all and 2) why
     firms. Successful political competition requires the development and         some entrepreneurs outperform others. Our discussion leads to five
     maintenance of political capabilities. Building upon a recent typology       testable propositions. Finally, recent empirical evidence is reviewed and
     of political strategy formulation and the resource based view, we iden-      discussed in light of this new perspective.
     tify those investments in political capabilities that are most likely to
     lead to competitive advantage. Implications for resource allocation in       The Ties that Bind: Managing Supplier
     political strategy formulation and competition in the political market-
     place are discussed.                                                         Relationships in the High-Growth Firm
                                                                                         Amy Beekman, George Mason University
                                                                                         Richard Robinson, University of South Carolina
     Political Strategy Formulation in the European                               This presentation contrasts two contrasting theoretical perspectives, a
     Union                                                                        strategic management rational perspective and a social exchange theo-
            Amy Hillman, University of Western Ontario                            retical framework, to propose and test the hypothesis that the per-
     This paper empirically explores political strategy formulation within        ceived effectiveness of the supplier relationship is positively related to
     U.S. multinationals operating in the European Union using survey meth-       the percentage purchased in periods of high growth. Also tested is the
     odology. Hillman and Hitt (2000) assert that firms make three deci-          hypothesis that even though these strategic factors drive the purchas-
     sions when formulating political strategy: how to approach government        ing decision, the quality of the working relationship also affects deci-
     relations, to participate in public policy alone or in a group, and what     sion-making. The frequency and quality of information exchanged
     type of "generic" strategy to use in the public policy arena. The influ-     moderates the relationship between supplier effectiveness and the
     ence of firm, industry, and country-specific variables on each decision      amount purchased such that when the quality of information is higher,
     is tested. Finally, I explore a recently advanced theory by Shaffer and      the relationship between effectiveness and percentage purchased is
     Hillman (2000) who argue that diversification level will affect where        stronger. Thus, strategic factors are the key consideration in purchas-
     decision making and public policy participation will lie within a firm.      ing decisions but a good working relationship plays an important sec-
     How these results contribute to the literatures on political strategies      ondary role.
     and traditional market based strategies will be discussed.

                                                                                  Antecedents of Entrepreneurial Growth: The Effects
      PAPER/PANEL SESSION             16:30 - 17:45                               of Growth Logics, Resource Slack, and
     EMERGING ISSUES IN CORPORATE ENTREPRENEURSHIP                                Environmental Munificence
                                                                                         Yuri Mishina, Emory University
     Panel                         Track I                            Room 13
                                                                                         Joseph Porac, Emory University
            Gregory Dess, University of Kentucky
                                                                                         Timothy Pollock, University of Wisconsin-Madison
            Steven Floyd, University of Connecticut
            R Duane Ireland, University of Richmond                               We examine how managerial growth logics, financial and human re-
            Peter Lane, Arizona State University                                  source slack, and environmental munificence interact to influence the
            Hugh O'Neill, University of North Carolina-Chapel Hill                short-term revenue growth of a sample of 119 manufacturing firms drawn
            Shaker Zahra, Georgia State University/Jönköping University           from the Ewing Marion Kauffman Foundation's database of high growth
            Jay Janney, Ball State University                                     firms. Our results indicate that firms embracing market expansion log-
                                                                                  ics tend to grow faster when human resource slack is high and financial
     Given the importance of corporate entrepreneurship (CE) to corporate
                                                                                  slack is low while firms embracing product expansion logics tend to
     vitality and wealth generation in today's global economy, CE has un-
                                                                                  grow faster when financial slack is high and when industry growth
     questionably become one of the most salient areas of interest to both
                                                                                  rates are low. This study illustrates that neither working solely within
     strategic management scholars and practitioners. This panel will bring
                                                                                  the current resources available nor pursuing growth opportunities with-
     together scholars to address several issues that should stimulate both
                                                                                  out regard to current resource constraints is necessarily all good or all
     interest and debate. The four presentations will: (1) articulate four
     forms of CE and address how new knowledge is created and dissemi-
     nated throughout the firm, (2) identify the social exchanges that are
     central to the CE process and explain how information at multiple levels     MAKING OPTIONS REAL
     throughout the organziation expand the firm's knowledge base, (3)            Paper                        Track C                              Room 8
     explore theoretical linkages between corporate venturing and interna-
                                                                                  How Real are Real Options? The Case of
     tionalization as well as address methodological considerations, and (4)
     address the dependent variable in CE research and the increasing im-         International Joint Ventures
     portance of social, human, and intellectual capital on conceptualizations           Jeffrey Reuer, Ohio State University
     of performance.                                                              This paper examines the occurrence and antecedents of call options
                                                                                  embedded in international joint ventures (IJVs). Options theory holds
                                                                                  that such agreements facilitate sequential expansion. They also repre-
                                                                                  sent a governance feature of IJVs that can be valuable in certain in-

                                                                               16:30 - 17:45                                    Monday
vestment contexts. The empirical evidence confirms that firms are se-        ity fails to be specified in ambiguous situations, implying that entre-
lective in negotiating options: Call options substitute for initial eq-      preneurial strategy formation must be conceptualized as creative, un-
uity, and minority investors tend to implement options in IJVs that          conscious, and imaginative. This understanding has descriptive power,
operate in the firm's primary business, in host markets in which the         but it is of limited analytical value. The present paper relies on in-
property rights regime is comparatively weak, and in culturally distant      sights from the science studies for an elaborate understanding of entre-
host countries. Implications are drawn for applications of real options      preneurial strategy formation: it exploits the simile between introduc-
theory in future international and corporate strategy research.              ing new ideas into scientific theory building and justifying innovative
                                                                             initiatives in managerial discourses; and it discusses the parallels be-
                                                                             tween theory testing as evaluating the robustness of new ideas and
Real Organizations for Real Options: The Dynamic of                          routinization as a process of turning innovative ideas into self-evident
Corporate Strategy                                                           organizational practices.
       Michael Raynor, Harvard University
Changes in technology, markets, or regulation can create new and po-
tentially valuable complementarities between previously unrelated in-
                                                                             An Optimal Stopping Model for the Exploration and
dustries. This calls into question the optimal scope of the firm, and the    Exploitation of a New Venture Opportunity
suite of assets necessary to compete effectively. Some corporations are              Young-Rok Choi, Rensselaer Polytechnic Institute
responding by acquiring or launching new ventures in industries where                Dean Shepherd, University of Colorado-Boulder
they expect profit-generating ties with existing businesses to emerge.               Moren Lévesque, Rensselaer Polytechnic Institute
These diversification initiatives cannot be explained by established theo-   Entrepreneurship is conceptualized as "real" experimentation in which
ries of diversification. Instead, a real options theory of diversification   entrepreneurs explore by testing in an environment of high uncertainty
is offered to understand these firms’ activities: investments in these       their expectations about new opportunities for value creation. They
new businesses confer the right, but not the obligation, to exploit link-    also seek the chance to exploit these business opportunities and realize
ages when and as appropriate. Achieving this requires managing the           above average returns. The decision of when to change a new business's
continuous evolution of interdivisional and corporate-divisional link-       focus from exploration to exploitation influences both its profitability
ages. This is the dynamic of corporate strategy.                             and survival. From the principles of first mover advantages and the
                                                                             liability of newness we acknowledge a tradeoff between optimizing profit
                                                                             potential and mortality risk. Using a dynamic programming approach
Option Theory and Management
                                                                             we derive multiple propositions that offer a new perspective to the
       Rodolphe Durand, EM Lyon
                                                                             timing of market exploitation. We propose conditions under which an
       Pierre-Yves Gomez, Groupe ESC-Lyon
                                                                             entrepreneur is more likely to exploit the new opportunity sooner. Im-
       Philippe Monin, EM Lyon
                                                                             plications for the entrepreneurship/entry strategy literature and for
Over the past decade, there has been a surge in research based on real       practitioners are offered.
option theory. Real option theory has been mainly applied to revisit
and enrich four fields in management literature: entrepreneurship, in-
novation and R&D, international strategies of firms, and acquisitions        Testing Predictions from Models of Causation and
and firms' corporate restructuring. In this paper, we revisit this funda-    Effectuation in Entrepreneurial Decision Making
mental assumption that the micro-economic theory of option is "widely               Saras Sarasvathy, University of Washington
generalizable" to strategic management, and draw consequences for            Economics and management theories have traditionally assumed the
future research. Basically, strategic management scholars seldom refer       existence of artifacts such as firms/organizations and markets. An ear-
to the founding articles of option theory, and more generally, to the        lier paper argued that an explanation for the creation of such artifacts
significant literature coming from decision theory. We comment on the        requires the notion of effectuation. Causation processes are effect-
fundamental dimensions of option theory and suggest a typology of            dependent -- focusing on expected returns, competitive analyses, pre-
the uses of option theory in the strategic management field.                 existent knowledge, and prediction; effectuation processes are actor-
                                                                             dependent -- leveraging affordable loss, strategic partnerships, contin-
ENTREPRENEURIAL THINKING                                                     gent action, and control. This paper develops predictions based on
Paper                        Track G                              Room 9     both types of decision models in the domain of entrepreneurial market-
                                                                             ing. The predictions are tested through protocol analysis of 27 founders
Towards a Multilevel Theory of Strategic Thinking                            of companies ranging in size from $200 million to $6.5 billion. Results
       Ingrid Bonn, Griffith University                                      clearly support the predictions based on effectuation and reject the
A theory of strategic thinking needs to integrate the micro domain’s         predictions based on traditional causal reasoning.
focus on individuals and groups with the macro domain’s focus on
organisations and environment. Hence, understanding strategic think-
ing in a complex organizational setting requires the use of a multilevel     THE TACTICS      OF E-BUSINESS
model to capture the different dimensions of the construct. This paper       Paper                         Track C                             Room 10
proposes a model that is composed of three interrelated levels: (1) the      e-Commerce in the Supply Chain
individual level, (2) the group level and (3) the organizational level              Gerhard Plenert, American Management Systems
and aims to capture the dynamic and interactive nature of individuals        Supply Chain Management integrates networks of companies into a struc-
and situations. A number of propositions are suggested to guide the          ture that allows them to optimize performance as a collective unit.
development of testable hypotheses for each level of analysis in the         Information exchange within the supply chain is critical for it’s suc-
model as well as hypotheses which cross these levels.                        cessful operation. This requires an openness and trust between all the
                                                                             entities of the supply chain. It also requires a mechanism for the effi-
Entrepreneurial Strategy Formation as Theory                                 cient transfer of this information. Traditional methods of information
Building and Theory Testing under Ambiguity: The                             transfer, like fax, phone, or even email, are too slow. Internet, intranet,
                                                                             and extranet information accessibility allowing all entities in the sup-
Interplay of Justification and Self-Evidence in                              ply chain to monitor the performance of every other entity, is critical
Managerial Discourses on Strategic Issues                                    to international competitive success. This presentation will discuss the
      Simon Grand, University of St Gallen                                   e-Commerce elements of the supply chain. It will discuss what the
Strategy formation is by its very nature subject to uncertainty and          competitive supply chain of the future will look like.
ambiguity. Strategy research, however, understands strategizing pre-
dominantly as a limited rational decision making process. But rational-

       Monday                                        16:30 - 17:45

     Strategic Herding: How Best Practice Can Destroy                             A Cooperative and Competitive Organizational
     Margins                                                                      Culture, Innovation, and Performance: An Empirical
            Philipp Nattermann, McKinsey & Company                                Study of Japanese Sales Departments
     While benchmarking, or best practice, is an important way to improve                Makoto Matsuo, Otaru University of Commerce
     operational efficiency, it is not a tool for strategic decision making. We   Despite the importance of the service department in the organization,
     show that when competitors attempt to imitate each others' strategies        few studies have investigated the antecedents and consequences of
     declining margins are likely to follow as illustrated by the German mo-      innovation in service departments. The purpose of this study is to
     bile telephony market and the U.S. PC industry. Firms are tempted to         examine the relationship between organizational culture, innovations,
     engage in strategic benchmarking to find safety in numbers by match-         and performance in Japanese sales departments, using questionnaire
     ing the results of their competitors by employing their already proven       survey data with a covariance equation analysis. The results indicate
     strategy. A firm's strategic index or strategy is defined as a function of   that technical innovation has a greater effect on performance than
     the price and product characteristics of it the good it sells. Out of this   administrative innovation does, and that competition and cooperation
     we can construct a strategic differentiation index (SDI), which mea-         within a sales department influence both technical and administrative
     sures the degree of strategic convergence in the industry. We show that      innovations. The results suggest that a competitive culture stimulates
     industry margins are proportionately related to the SDI, with herding        salespeople's intrinsic motivations to generate innovative ideas, and
     resulting in lower margins.                                                  cooperative culture promotes sharing or diffusion of these ideas and
                                                                                  solves the conflicts within a department.
     The Click and Mortar Advantage: Sales Online and
     Returns Inline                                                               CREATION OF BUSINESS MODELS IN HIGH-TECH
            Alan Eisner, Pace University                                          INDUSTRIES
     Do merchants with a traditional retail presence have an advantage in         Paper                        Track B                             Room 12
     the electronic commerce arena? Those merchants with both traditional
     brick and mortar and online presence may be able to leverage a set of        The Sustainability of New Business Models in the
     technology competencies that the online only crowd hasn’t even begun         Biotechnology Industry
     to think about – customer service and merchandise returns. However,                 Yves Meinhardt, Otto-Friedrich University of Bamberg
     click and mortar hybrids combine traditional retail services and an online          Lars Schweizer, Otto-Friedrich University of Bamberg
     presence and have that sought after human interface for the less glam-       The paper introduces the "business model" construct and systematizes
     orous side of retail, merchandise returns. Currently, customers that         different models along two dimensions: value chain constellation and
     purchase goods from online only merchants and then wish to return            rules within industries. We identify four different types: Integrated,
     the goods face a significantly more difficult task than those returning      Orchestrator, Layer Player, and Market Maker Models. Our hypotheses is
     goods to a traditional merchant.                                             that companies apply different business models and evolve from one to
                                                                                  another. With the help of business models we describe the evolution in
     COLLABORATIVE LEARNING IN OPERATIONS                                         the Biotechnology and Pharmaceutical Industry. First we summarize
                                                                                  current trends in the industry. Then we consider the paradox that com-
     Paper                        Track F                             Room 11
                                                                                  panies develop into two directions: Start-ups begin as specialized com-
     Collaboration and Teaming in the Supply Chain:                               panies and try to integrate value steps continually. Whereas the Incum-
     Fostering Innovation and Transfering Knowledge                               bents of the industry try to outsource value steps. As a consequence
            Gregory Theyel, California State University-Hayward                   both trends lead to a radical change of the original business model.
            Craig Wood, University of New Hampshire
            Allen Kaufman, University of New Hampshire
                                                                                  Lessons from the Computer Industry for the 21st
     Firms develop vertical linkages with their customers and suppliers in
     order to improve their competitive position on cost, quality, and deliv-
                                                                                  Century: Entrepreneurial Strategies, Resources, and
     ery. We find that a continuum exists that characterizes the intensity of     Flexibility During the Growth Stage
     these relationships in the supply chain extending from arms-length                  Ronald Rivas, Bentley College
     collaboration through more involved team relationships. This study           This paper reports that firms during the growth stage of the industry
     employs survey data from small and medium sized manufacturing firms          command higher rents by having faster rates of accumulation of com-
     (SMMs) to define three specific levels of relations and show how knowl-      paratively scarce region-specific assets and by overcoming inertia more
     edge facilitates movement along the linkage continuum. A much higher         effectively than their competitors. We test these propositions employ-
     level of knowledge creation and innovation exists for firms that prac-       ing dynamic pooled cross-section and time-series regression analyses
     tice teaming with customers and suppliers even to the point of sharing       on a sample of firms corresponding to the growth stage of the U.S.
     equipment and personnel.                                                     computer hardware industry from 1985 to 1995. Rents accrued from
                                                                                  entrepreneurial capabilities is significant larger among firms in the West
                                                                                  than among firms in the rest of the nation. In the West, the variance of
     Competence Leveraging, Competitive Advantage,                                productivity growth explained by entrepreneurial capabilities is three
     and Social Capital in Supplier Networks                                      times larger than the variance explained by accumulation of assets,
            Erkko Autio, Helsinki University of Technology                        manufacturing flexibility, and technological learning.
            Tomi Laamanen, Helsinki University of Technology
     Previous work shows that supply relationships can play an important
     role in the strategies of large systems integrators. The variety of rela-
     tionship types has increased and relational governance has gained more
     ground. This paper focuses on the evolution of suppliers of large Euro-
     pean telecommunications equipment producers. Based on a cross-sec-
     tional survey of telecommunications suppliers, a model of supplier com-
     petence leveraging and social capital evolution is put forward and tested.
     The model brings new knowledge of supplier social capital evolution in
     subcontracting relationships characterized by high research intensity
     and industry growth.

                                                                              16:30 - 17:45                                       Monday
Patent Races, Capital Races, Learning Races, and                             that it will be higher for entrants. Using the first component as a baseline,
                                                                             we then examine how these differences evolve.
Partnering Races in Canadian Biotechnology, 1991-
        Joel A C Baum, University of Toronto                                 STRATEGIC THINKING IN DYNAMIC ENVIRONMENTS
        Brian Silverman, Harvard University                                  Paper                         Track G                              Room 15
        Tony Calabrese, University of Toronto                                Strategic Decisions in 'Emerging' Markets: Prospect
A key challenge facing modern firms is the need to simultaneously com-       Theory Revisited
pete and cooperate with other firms. In biotechnology, norms of scien-              Sally Fowler, University of Victoria
tific practice and the dispersion of complementary assets among orga-               Michael Lord, Wake Forest University
nizations (e.g., universities, pharmaceutical companies) make this ten-
                                                                             Due to the twin forces of technology and globalization, managers are
sion particularly acute. We envision competition and cooperation in
                                                                             confronting profound challenges to their traditional strategy making
biotechnology as a series of interconnected races for various assets:
                                                                             processes. In particular, managers increasingly are faced with the chal-
knowledge, intellectual property, partners, and funding. Success in one
                                                                             lenge of making decisions involving both big stakes and very high un-
cycle merely buys entry into the next. Successful firms are those that
                                                                             certainty. This paper presents the findings of a study of strategic deci-
manage to convert their triumph in one arena into victories in subse-
                                                                             sion making in 'emerging' markets that place managers in decision-
quent arenas, creating a virtuous cycle of success. We describe interre-
                                                                             making situations with inherently high levels of technological uncer-
lationships between races, and derive hypotheses concerning firm/en-
                                                                             tainty, market uncertainty, or both. Findings address the individual
vironmental characteristics that generate private gains and common
                                                                             and social influences on decision-making processes, as well as the man-
benefits/costs. We test these hypotheses in a study of the Canadian
                                                                             agers' perceptions of potential gains and losses. We consider the appli-
biotechnology industry.
                                                                             cation of prospect theory and strategic reference point theory to these
                                                                             high-risk decision contexts and the strategic and performance implica-
LEARNING AND EVOLUTION                                                       tions of the decision-making dynamics we observed.
Paper                        General                             Room 14
Business Opportunities and Theories of the Firm:                             Strategic Decision-Making in High Velocity
When Conditions Favor the Entrepreneur                                       Environments: A Theory Revisited and a Test
       Richard Arend, New York University                                           Kevin Clark, Bentley College
A business opportunity exists when an existing or potential firm can                Ken Smith, University of Maryland
generate appropriable value above related opportunity costs. The ini-               Chris Collins, Cornell University
tial analysis framework combines industrial organization theory and                 Cynthia Stevens, University of Maryland
the resource-based view of the firm to address the question: What does       In 1989, Eisenhardt proposed a model of top management group (TMG)
a firm need to find to identify a business opportunity? There are oppor-     strategic decision-making in turbulent environments. Based on a se-
tunities to influence market failures, and to affect firm heterogeneity.     ries of eight case studies, the model proposed interesting relationships
Supplemental analysis focuses on why opportunities exist, outlining          between decision-making strategies, behaviors, and ultimately deci-
the conditions necessary for opportunities to exist under the assump-        sion speed. A controversial finding was that TMG s utilizing a compre-
tions of unbounded and bounded firm rationality. The conditions de-          hensive search often made quicker decisions. To our knowledge, there
fine which firm characteristics favor access to the opportunities, and       have been no empirical tests of Eisenhardt's model in the intervening
thus, whether entrepreneurial characteristics are preferable. The analy-     decade. Using data from 227 top executives representing 74 technol-
sis of the characteristics addresses the question: How do firms find         ogy-intensive firms we test the hypotheses set forth by Eisenhardt.
what they need to identify and exploit an opportunity?                       The results demonstrate substantial support of the model, however,
                                                                             suggest a more complex story.
Learning Organizations: Fact or Fiction?
       Constance James, Pepperdine University                                Scanning Actions and Environmental Dynamism:
This study of learning organizations tests whether key elements of a         Gathering Information for Strategic Decision-
learning organization affect exploration or exploitative learning and        Making
firm performance. This study analyzes such elements as leadership,
                                                                                    Jill Hough, University of Tulsa
communication, empowered employees, strong culture, generic strate-
                                                                                    Margaret White, Oklahoma State University
gies, and shared vision. It uses survey and COMPUSTAT data for 273
business segments within 120 Fortune 500 firms. Results suggest that         While it is generally accepted that environmental scanning supports
while vision, culture and leadership have a significant influence on         organizational adaptation, conclusions regarding the form of the rela-
firm performance, types of organizational learning are impacted more         tionship remain equivocal. From an information processing perspec-
by strategy and structure.                                                   tive, the relationship between environmental uncertainty and scan-
                                                                             ning actions is purported to be positive and linear in form. From a
                                                                             social cognition perspective, however, information processing is dimin-
The Evolution of Heterogeneity in Performance in                             ished at both high and low levels of uncertainty producing an inverted-
an Industry                                                                  u-shaped relationship. Using a combined perspective this study hy-
       Tammy Madsen, Santa Clara University                                  pothesized a u-shaped relationship. Surprisingly, results supported all
       Gordon Walker, Southern Methodist University                          three perspectives with the form of the relationship depending on the
                                                                             industry background and functional position of the decision-maker. As
Research analyzing the variance in business-unit performance across
                                                                             suggested by upper echelon theory, the cognitive bases and values of
industries focuses on how much variance is explained by different classes
                                                                             decision-makers are used to screen complex stimuli thereby affecting
of analysis such as the industry, corporate or business-unit. If the level
                                                                             perceptional processes and ultimately strategic choices.
of interfirm performance heterogeneity is determined in part by the
stage of the industry and firm evolution, research needs to separate
entrants from incumbents as the industry ages and examine perfor-
mance heterogeneity intertemporally. To explore the evolution of per-
formance heterogeneity among entrants and incumbents, we analyze
variation in performance in two industries, Airlines and Trucking, fol-
lowing deregulation. The first component of our theory is that, within
an industry, heterogeneity differs across entrants and incumbents, and

       Monday                                         16:30 - 17:45

     NETWORKS: CHOICES AND CHALLENGES                                             extent does the reputation of partners impact the propensity to attract
                                                                                  partners, negotiate rights in the network, and impact network deci-
     Paper                        Track B                             Room 16
                                                                                  sions and outcomes? How do networks serve to enhance/decrease the
     The Structural Embeddedness of Competitive                                   position of relatively stronger/weaker players? The data illuminate a
     Behavior: Theory and Empirical Evidence                                      number of themes that provide an understanding of alliance
            Devi Gnyawali, Virginia Polytechnic Institute & State University      embeddedness in this industry.
            Ravindranath Madhavan, University of Illinois-Urbana
                                                                                  GOING ABROAD: DRIVERS AND BENEFITS                 OF
     How do network of linkages among competitors influence firms' com-
     petitive behavior against each other? As strategic alliances proliferate     INTERNATIONALIZATION
     even between competitors, this question represents an important step         Paper                        Track E                           Room 17
     towards understanding the fine balance between competition and co-           A Firm-Level Analysis of Foreign Direct Investment
     operation in industry networks. We address this question by bringing
                                                                                  in the US
     an embeddedness perspective to the study of competitive dynamics.
                                                                                         Len Trevino, University of Southern Mississippi
     We suggest that the structural properties of firms and their networks
                                                                                         Robert Grosse, Thunderbird-American Graduate School of
     influence the flow of information, assets, and status among them, lead-
                                                                                              International Management
     ing to resource asymmetries with predictable effects on competitive
     behavior. Using data from the global steel industry, we examine how          This firm-specific analysis of foreign direct investment into the United
     network structural variables such as centrality, structural autonomy,        States is guided by linking the resource-based view of the firm and
     structural equivalence, and density influence a firm's likelihood of tak-    strategic choice theory in the strategy field with internationalization
     ing competitive actions or responding to those of its competitors.           and cross-border investment theory in the international business lit-
                                                                                  erature. Specifically, we develop a multivariate regression model based
                                                                                  on firm-specific resources that may impact firms' foreign direct invest-
     Understanding Open Source Software: A New,                                   ment in the United States. This time-series, cross-sectional study uti-
     Nonprofit Competitive Threat                                                 lizes a sample of more than 50 multinational enterprises and relies
            Jennifer Kuan, University of California-Berkeley                      largely on primary data obtained directly from the company affiliates
     The increasing reach of the Internet has ushered in new forms of com-        themselves. The firms demonstrate increased propensity for FDI when
     petition in many industries. Open source software is one such new busi-      they are larger, more profitable, higher-tech, when they have more in-
     ness model, which has created confusion for competitors and fortunes         ternational managers, and when their home currencies are appreciating
     for investors. In this paper, I propose a model that helps to characterize   relative to the dollar.
     the competitive differences between traditional, for-profit software pro-
     duction and the new, open source mode of production. This model is an        Describing Growth Trajectories of Firms
     extension of a separate paper that argues that nonprofits arise when                Denise Fleck, McGill University/Coppead/UFRJ
     consumers decide to make rather than buy, i.e. consumer integration
                                                                                  Numerous indicators of growth, success and decline have been sug-
     into production. I also test a prediction of the model, that open source
                                                                                  gested in the literature. Yet, none has succeeded in describing the
     software will be of higher quality than closed source software, using
                                                                                  firms trajectories over time. This paper advances an indicator of growth
     software bug data. Preliminary results indicate that open source bugs
                                                                                  which allows for the representation of the trajectory the firm performs
     are fixed more quickly.
                                                                                  in the economy throughout its existence. By providing a concise de-
                                                                                  scription of the evolution of the firm over long periods of observation,
     Entrepreneurship in the Large Corporation: A                                 the indicator enables the identification of growth, decline and station-
     Longitudinal Study of How Established Firms Create                           ary periods. Corporate strategists may benefit from analyzing the firm’s
                                                                                  past trajectory by acquiring a deeper understanding of the firm’s his-
     Breakthrough Inventions                                                      torical development. This may help management to conceive strategic
             Gautam Ahuja, University of Texas-Austin                             moves and organizational changes more likely to turn the firm towards
             Curba Morris Lampert, University of Texas-Austin                     the desired direction of evolution.
     We present a model that explains how established firms create break-
     through inventions. We identify three organizational pathologies that
     inhibit breakthrough inventions, the familiarity trap - favoring the fa-     Globalization and the Environment: Drivers of
     miliar, the maturity trap - favoring the mature, and the propinquity         Standardization of Environmental Strategies in
     trap - favoring search for solutions near to existing solutions. We argue
     that by experimenting with new (i.e. technologies in which the firm
                                                                                  Multinational Companies
                                                                                         Petra Christmann, University of Virginia
     lacks prior experience), current (technologies that are recent or newly
     developed), and pioneering (technologies that do not build on any ex-        The effect of multinational companies (MNCs) on the environment has
     isting technologies) technologies firms can overcome these traps and         given rise to much concern because MNCs can take advantage of cross-
     create breakthrough inventions. Empirical evidence from the chemi-           country differences in environmental regulations by relocating pollu-
     cals industry supports our model. Of significant use to practitioners,       tion-intensive operations to low-regulation countries. MNCs can ad-
     we explain the determinants of breakthrough inventions and identify a        dress these concerns by voluntarily adopting global environmental stan-
     new strategy allowing large corporations to reinvent themselves.             dards for all of their facilities. Evidence shows that MNCs are increas-
                                                                                  ingly moving towards setting environmental standards for their world-
                                                                                  wide operations that exceed local regulations. However, little is known
     Partner Selection in Airline Alliance Networks: An                           about the factors that cause MNCs to standardize their environmental
     Embeddedness Perspective                                                     strategies on a global basis. This paper identifies factors contributing
             M Tina Dacin, Texas A&M University                                   to global standardization of MNCs' environmental strategies and em-
     In order to understand the embeddedness of alliance dynamics, I study        pirically analyzes their importance using data collected through a mail
     the selection and competition for exchange partners in airline alliance      questionnaire survey of MNCs operating in the chemical industry in the
     networks. This research utilizes in-depth interviews and archival histo-     United States.
     ries of alliances of airline networks and target members to develop case
     studies of partner selection decisions. All of the executives interviewed
     are directly involved in the partner selection process. I ask: To what
     extent do preexisting ties affect partner selection processes? To what

                                                                               16:30 - 17:45                                     Monday
Does Entry Timing Matter When Entering into a                                 modify long held tenets of strategic thought. This paper examines the
                                                                              structural responses of traditional firms to electronic competitors from
Transitional Economy with Rapid Industrial
                                                                              three different perspectives: traditional product/market diversification,
Evolution?                                                                    strategic groups' theory and a theory of channel as a diversification
       Wei-Ru Chen, Purdue University                                         mode. We use the Fortune e-50 list to build a database of industries
       Charng Kao, Chung-Hua Institution for Economic Research                with extensive electronic competition, identifying both the electronic
This paper examines the relationship between international entry or-          and the traditional "bricks-and-mortar" firms in those industries. The
der and performance in a transitional economy characterizing rapid            paper discusses which perspectives seem to offer the best explanation
industrial evolution. We develop a research framework by incorporat-          for the structural evolution of firms in these industries.
ing the first-mover and latecomer advantage theories in an evolution-
ary market context. By analyzing over nine hundred foreign businesses
in China, we find a V-shape relationship existing between the market          SPEED AND NOVELTY AS SOURCES OF COMPETITIVE
stage of entry and business performance. Significant superior perfor-         ADVANTAGE
mance of market pioneers represents an overwhelming effect of first-          Paper                        General                             Room 19
mover advantage. Late entrants, by cultivating niche market, show a
higher profitability than early followers do. Strategic implications for
                                                                              Developing Fast Cycle Capability: A Field Study
                                                                                     Vadake Narayanan, University of Kansas
first-mover, early follower, and late entrant are discussed.
                                                                                     Brock Guernsey, Quintiles Inc
                                                                                     Frank Douglas, Aventis Pharma Ag
E-COMMERCE       THROUGH THE LENSES            OF   EXISTING                         John Charnes, University of Kansas
STRATEGY CONSTRUCTS                                                           In many organizations, the introduction of fast cycle teams is a major
Paper                        Track H                              Room 18     step in building fast cycle capability, increasingly a prerequisite for
                                                                              competitive success. However, although fast cycle teams have produced Do Old Mechanisms Fit                                marvelous results for some organizations, the institutionalization of a
New Business Models?                                                          culture of speed has eluded many. We conclude in this paper that the
       William Gerard Sanders, Brigham Young University                       key to driving their organizations to fast-cycle capability rests with the
       Steve Boivie, Brigham Young University                                 senior management. Our conclusions, drawn from a three-year inten-
We examine how managerial growth logics, financial and human re-              sive study of fast-cycle teams in the pharmaceutical industry, uncover
source slack, and environmental munificence interact to influence the         the three senior management roles critical to the success of fast cycle
short-term revenue growth of a sample of 119 manufacturing firms drawn        teams: 1) choice of appropriate projects to fast cycle, 2) implementa-
from the Ewing Marion Kauffman Foundation's database of high growth           tion -- ensuring that the specified fast cycle teams work, and 3) devel-
firms. Our results indicate that firms embracing market expansion log-        oping organizational capability for increasingly higher levels of speed.
ics tend to grow faster when human resource slack is high and financial
slack is low while firms embracing product expansion logics tend to           Leveraging Assets from One Industry to the Next: A
grow faster when financial slack is high and when industry growth
rates are low. This study illustrates that neither working solely within      Study of New Product Introduction Timing
the current resources available nor pursuing growth opportunities with-              Daniel George, California State University-Northridge
out regard to current resource constraints is necessarily all good or all     This study examined the relationship between firm assets and new prod-
bad.                                                                          uct introduction timing in a related target industry by firms from a
                                                                              related origin industry. Results indicate that manufacturing assets from
                                                                              the related origin industry, manufacturing assets in the related target
Action and Value: An Investigation of the Strategies                          industry and inventive assets are related to new product introduction
of Internet New Ventures                                                      timing. The findings of this investigation, based on data collected
       Violina Rindova, University of Washington                              from the Plain Paper Copier and Desktop Printer industries over a 10
       Suresh Kotha, University of Washington                                 year period, contribute to research on the Resource-Based View of the
       Shivaram Rajgopal, University of Washington                            Firm and the Innovation literature.
       Robert Wiltbank, University of Washington
Internet firms are considered by many to be the most significant wealth       Explosive, Self-Generating Demand: The Strategy of
creators in the new millennium. In a study of the top 50 pure Internet
firms in 1998, we investigate the relationship between the strategic          Word-of-Mouth Hype
actions undertaken by those firms between 1995 to 1998, and the wealth               Renee Dye, McKinsey & Company
they have created, as captured by their market value. Our empirical           As consumers become ever more connected through on-line and wire-
analysis of over 4,000 actions indicates that the market discriminates        less technologies, word-of-mouth hype can catapult a previously sleepy
between actions that generate value through innovation and creating           product or service into superstardom. Yet most companies, in their
attractiveness vis-à-vis stakeholders, and those that focus primarily on      preoccupation with the profiles of individual customers, will entirely
growth (via distribution and acquisitions). Understanding how their           miss these marketing phenomena, which are necessarily driven by the
strategic behaviors relate to their abilities to create wealth is an impor-   patterns of interaction among individual consumers. Through our re-
tant agenda for strategy and entrepreneurship research and this study         searches into dozens of examples as well as diffusion theory, psychol-
makes a step in that direction.                                               ogy, and sociology, we have constructed a powerful framework to en-
                                                                              able companies to create or ride a hype phenomenon. This paper will
                                                                              define ESGD and present a framework for understanding how and why it
Competition and the Electronic World: Has e-                                  occurs among consumer populations. It will describe specific, highly
Commerce Changed Our Understanding of                                         practical tactics for how companies can harness the power of this phe-
                                                                              nomenon to work for them. Selected client applications of this ap-
Diversification, Industries, and Strategic Groups?
                                                                              proach will be offered.
      Esmeralda Garbi, Florida Atlantic University
      Brenda Richey, Florida Atlantic University
      Peggy Golden, Florida Atlantic University
The proliferation of new entrants using electronic structures to provide
most or all of the value-chain is forcing incumbents to modify their
own business models. This transformation may also be forcing us to

       Tuesday                                        08:00 - 09:15

     PAPER/PANEL SESSION                               08:00 - 09:15              REAL OPTIONS
                                                                                  Paper                       Track G                             Room 9
     Paper                        Track C                              Room 7
                                                                                  Integrating Options Theory and Transactions Costs
     Creating and Protecting Resources: Formation and                             Analysis: Reconciling Strategic Flexibility and Asset
     Governance of Scale and Link Alliances between                               Specificity in Strategic Decision Making
                                                                                         Ron Sanchez, IMD
     Competitors                                                                  This paper combines options theory and transactions costs analysis to
            William Mitchell, University of Michigan                              create an integrated and more complete model of the problem of strate-
            Pierre Dussauge, Groupe HEC                                           gic decision making about the acquisition or development of strategic
            Bernard Garrette, Groupe HEC                                          assets. Including options theory in an integrated strategic decision
     We derive routine-based hypotheses about alliance formation and gov-         making model leads to a new view of the relative strategic advantages
     ernance. Our empirical analysis examines 227 alliances between com-          of flexible versus specific-use assets, of the optimal boundaries of the
     petitors in Asian, North American, and European industries between           firm, and the essential strategic choices to be made in economic orga-
     1952 and 1996. We find that firms contribute different resources to link     nizing. This expanded model of economic organizing leads to predic-
     and scale alliances: firms primarily contribute R&D and production re-       tions of certain optimal forms of economic organization under varying
     sources to scale alliances, and marketing resources to link alliances.       conditions of contracting (supply-side) and market (demand-side) un-
     This is consistent with the argument that resources offer different op-      certainty.
     portunities for resource coordination and creation, while also creating
     different appropriation risks. We find that firms use different gover-
     nance mechanisms for link and scale alliances: firms are more likely to      Improving Strategic Responsiveness: A Real Options
     choose stronger protection mechanisms for link alliances which create        Approach to Strategy Formation
     greater appropriation risks, while they tend to seek higher levels of               Torben Andersen, George Mason University/Johns Hopkins
     coordination in scale alliances. This is consistent with the argument                    University
     that the governance mechanisms provide opportunities to coordinate,          As competition turns increasingly dynamic across industries, sustain-
     create, and protect resources. The research contributes to the concep-       able competitive advantage depends on the firm's ability to respond to
     tual understanding of the business organization.                             new strategic opportunities and threats. Essentially, a firm's respon-
                                                                                  siveness to real economic changes in its environment becomes the key
     Corporate Responses and Alliance Development over                            to develop and maintain excess returns. Real options theory gives
     Time                                                                         some powerful insights to the analysis of strategic exposures. Hence,
                                                                                  the paper adopts a real options perspective to analyze strategic respon-
            Randi Lunnan, Norwegian School of Management
                                                                                  siveness and presents an applied framework based on three essential
            Sven Haugland, Norwegian School of Economics & Business
                                                                                  managerial tasks: (1) maintain decision processes that enhance strate-
                                                                                  gic options creation, (2) commit organizational resources within flex-
     Key issues for corporate strategists concern organizing and governance       ible real asset structures, and (3) assess the viability, interdependen-
     to obtain the stability necessary to develop competitive advantages          cies and timing of all the identified strategic options.
     and the flexibility needed to be able to respond to changing environ-
     mental demands. One mode of organization available is the alliance.
     Alliances are often argued to contribute to both increasing flexibility      The Effect of Industry and Company Characteristics
     and broader learning within the corporation. In this paper we look at a      on the Level and Variability of High-Tech
     set of alliances over time and discuss developments within these alli-       Companies' Market Value
     ances and the effects of these developments on the strategic responses              Mika Naumanen, Helsinki University of Technology
     of the corporation. Our findings suggest that some contributions of
                                                                                  The correlation between a firm's share price and its book value of eq-
     alliances are incompatible, forcing managers to choose which alliance
                                                                                  uity has dropped from 0.9 in the 1960s to about 0.5 in recent years. The
     yields to pursue. Over time developments in alliances seem to have less
                                                                                  investors not only value the firm's physical assets, but also value the
     importance for these contributions than we expected.
                                                                                  firm's other forms of assets when they make their investment decisions.
                                                                                  We will examine what these other forms of assets are and how they
     Leveraging Strategic Alliances: An Industry Case                             might be taken into account when considering a technology develop-
     Study of Small Entrepreneurial Businesses                                    ment or acquisition. Some specific research questions to be addressed
     Sustaining Competitiveness in Shifting Competitive                           are: What are the relevant asset pricing methodologies for technology-
                                                                                  based companies? What are the special characteristics of stock price
     Environments                                                                 behavior of IPO companies? Which characteristics affect the asset pric-
            Diana (MingJi) Wong, Bowling Green State University                   ing of technology-based companies?, What are the implications of the
     A longitudinal research study of the U.S. bicycle industry from 1975 to      chosen and employed asset pricing model to the evaluation and pricing
     1997 examines how strategic alliances provide small entrepreneurial          of technology-based companies?
     firms with flexible facilitating mechanisms to access strategic resources.
     A theoretical framework outlines a reciprocal, co-evolutionary relation-
     ship between strategic alliances and competitive shifts along industry       Spending Billions: When Firms Choose to Make Big
     life cycle. As more firms accumulate comparable relevant resources, the      Bets
     collective action of firms in the industry culminates into shifts along             Karen Belanger, Columbia University
     the industry lifecycle and changes the competitive environment that          The big bets made by an organization affect not only the immediate
     firms were originally engaged in. Entrepreneurial firms entering into        and future value of the firm, but also where the management attention
     the industry during different stages of the industry life cycle may en-      and strategic direction of the firm are going. Assessing the population
     gage in strategic alliances to not only overcome entry barriers but also     of publicly announced investments of over a billion dollars in the U.S.
     to "leap frog" their competitors.                                            announced in recent years permits the consideration of when firms,
                                                                                  and their senior managers, choose to take big bets. The choice of where
                                                                                  and how to invest, and what risks to undertake are, in the end, the
                                                                                  choice of senior managers who must support large investments. Con-
                                                                                  sidering how the investment decision process affects the substance of
                                                                                  the investment decision when making big bets may suggest mecha-

                                                                                 08:00 - 09:15                                     Tuesday
nisms (such as real options) to reduce the effect of cognitive biases of       and source of innovation in securing superior firm performance. We
senior managers on the investment decision.                                    predict that firms in turbulent environments will experience greater
                                                                               variation in their performance over time and across firms, and that
                                                                               their success will depend on their ability to innovate quickly and to
KNOWLEDGE AND INNOVATION                                                       build on their existing technologies, rather than borrowing from oth-
Paper                         Track F                              Room 10
                                                                               ers' technologies. Our results determine if unstable short-run firm per-
The Process of Knowledge Creation in Organizations                             formance in a turbulent environment is related to firm success in the
       Christine Soo, University of New South Wales                            long run. We test our hypotheses using data from 30,000 patents of 45
       Timothy Devinney, University of New South Wales                         firms.
       David Midgley, INSEAD
In our study we present and test a comprehensive model of knowledge            KNOWLEDGE IN SOCIAL NETWORKS
creation. Specifically, our model examines four important dimensions
                                                                               Paper                         Track F                             Room 11
of the knowledge creation process: (1) the acquisition of information
and knowledge from networks of interaction; (2) the creation of new            Networks, Strategic Alliances, and Social Capital:
knowledge from the application of information and knowledge to prob-           Strategic Network Management in High-Tech
lem solving; (3) the impact of new knowledge on firm innovation and            Industries
performance; and, (4) the role of specific individual and organization                J M J Baaijens, University of Amsterdam
factors play in the overall process. Our findings reveal the following                Geert Duysters, Eindhoven University of Technology
factors to be significant for knowledge creation and innovation: culti-               Wim Vanhaverbeke, University of Maastricht
vating opportunities for inter-firm and intra-firm informal networking,
                                                                               Sustainable competitive advantage of firms and innovation in high-
encouraging absorptive capacity amongst employees (and providing
                                                                               tech industries are to a great extent based on technologically learning
supporting policies and procedures), and sustaining high levels of cre-
                                                                               on a continuous base. In fact, technological learning is based on a
ativity in organizational problem solving as a means of generating new
                                                                               combination of internal and external learning. The paper focuses on
                                                                               the ‘external learning’ through the establishments of SA-networks and
                                                                               combines the organizational learning perspective with social network
Building Innovation Advantage through Alliance                                 theory about the ‘exploitation’ of social capital. First we introduce con-
Networks                                                                       cepts about ‘technological learning’ and firm-level capabilities to en-
       Xavier Castañer, University of Minnesota                                hance this behavior. Next we work with social network theory about
       Shawn Lofstrom, University of Maryland                                  the ‘exploitation’ of social capital, where the network positions give
                                                                               access to resources and opportunities for the individual firm. Finally,
Firms increasingly utilize many forms of inter-organizational collabora-
                                                                               we investigate the dynamic effect of network positions of companies
tion to increase their innovativeness and competitive advantage. This
                                                                               on the ability to attract resources and knowledge from their network,
paper suggests that in addition to conscious management of an indi-
                                                                               which is, in turn, an incentive to establish new technology based stra-
vidual alliance, the firm’s alliance portfolio has a significant role in
                                                                               tegic alliances.
determining the firm’s innovative success. This paper develops testable
propositions for examining the portfolio-based determinants of
innovativeness. Specifically, this paper discusses the role of alliance        Innovation in Alliance Ventures: A Resource and
network structure, partner characteristics and alliance content. The           Learning Perspective
paper also suggests that in addition to these factors, variations in the              Nikolaus Uhlenbruck, Texas A&M University
relational quality of the alliances and the firm’s own absorptive capac-              Michael Hitt, Arizona State University
ity influence the firm’s ability to leverage the potential of its portfolio-   Organizational innovation is of critical importance to the long-term
based resources. The paper concludes with a discussion of the implica-         performance of firms. Because knowledge transfers between alliance
tions for theory and managerial practice.                                      partners are expected to foster innovation, that topic has received much
                                                                               research attention. However, knowledge development in alliances has
Radical Innovation and the Evolution of Inter-Firm                             received surprisingly little consideration in the management literature.
Knowledge Management                                                           This manuscript integrates previous research and develops a theory-
        Hung-bin Ding, Rensselaer Polytechnic Institute                        based model of alliance innovation. Based on learning theory and the
        Lois Peters, Rensselaer Polytechnic Institute                          resource-based view, we suggest that the scope of the alliance and char-
                                                                               acteristics of the partners determine the resources available in the alli-
Scholars have come to believe that inter-firm networking is an impor-
                                                                               ance. These resources, such as human and social capital and their rela-
tant practice for knowledge acquisition and creation. However, we have
                                                                               tionship to each other, determine the capacity for learning and conse-
little knowledge about how firms change the configuration of networks
                                                                               quently innovation within the alliance.
to obtain knowledge needed in different innovation scenarios. The pur-
pose of this article is to investigate the change in inter-firm network
and the strategic implication of such changes. We initially focus our          Social Capital, Knowledge, and the International
inquiry on the generic conditions, then deal with radical innovation           Growth of Technology-Based New Firms
scenarios since radical innovation provides an opportunity to observe                  Helena Yli-Renko, London Business School
the most dramatic network changes. Drawing upon the literature and                     Erkko Autio, Helsinki University of Technology
the results of an interdisciplinary study on radical innovation in                     Vesa Tontti, Citibank
Rensselaer Polytechnic Institute, we develop a conceptual framework
                                                                               This paper develops a model of the international growth of technology-
and make some conjectures about the special characteristics of network
                                                                               based new firms (TBNFs) by drawing on social capital theory and the
evolution in radical innovation contexts.
                                                                               knowledge-based view of the firm. The model aims at explaining the
                                                                               role of intra- and interorganizational relationships in building the firm’s
Innovating in a Complex and Turbulent                                          distinctive knowledge base and in achieving international growth. It is
Environment                                                                    hypothesized that internal and external social capital influence the
       Pratima Bansal, University of Western Ontario                           acquisition and creation of knowledge, and that knowledge is a key
       William Bogner, Georgia State University                                resource driving the international growth of TBNFs. The model also
The dynamic, non-linear assumptions of complexity theory expose im-            takes into account the influence of growth orientation on international
portant insights into firm performance in turbulent environments. In           growth. The model is tested with longitudinal data from 56 Finnish
particular, complexity theory highlights the importance of the speed           TBNFs. Multiple regression analyses provide support for the hypoth-

      Tuesday                                     08:00 - 09:15
     eses. The results suggest highly relevant practical implications for en-    ness strategies. Founded on an exploratory study of more than 100
     trepreneurs: by fostering social capital within the firm and in external    international mass customizers we deploy a systematization to demon-
     relationships, significant benefits can be achieved for the firm’s knowl-   strate how modern Internet technologies and possibilities of e-business
     edge base and international growth.                                         work as success factors for mass customization. Thus, four fields can be
                                                                                 derived based on the degree of interaction between customer and manu-
                                                                                 facturer required and the digitizability of the products and services to
     Processing of Conflicting Information in Individual                         be customized. The business models developed here work as starting
     Decision-Making Situations                                                  points to create new value added for innovative e-businesses. However,
             Peirchyi Lii, Tam-Kang University                                   our suggestions for action must not be understood as generic strategic
     Information overload is a problem; conflicting over-loaded information      patterns but rather as ideas where a successful mass customization based
     is even a bigger problem. A decision-maker is usually confused by con-      e-business concept can start.
     flicting information when making decisions alone. This paper tries to
     examine the effects of conflicting information on the decision making
     process. Three types of information are used to explore the issue, one is
                                                                                 Towards an Electronic Business Marketing
     consensus information, the other two are conflicting information (al-       Effectiveness Model
     ternative vs argument or alternative vs counter-alternative). Subjects            Mark Woodbridge, University of Technology-Sydney
     are asked to use the information provided to work on a prediction task.     No abstract available.
     Cognitive control, knowledge gained, and time spent were measured
     after the predictions were made. Results showed that conflicting infor-
     mation might be detrimental to decision-maker's cognitive control in
                                                                                 SPEEDING TO WIN: NEW PERSPECTIVES ON
     making decisions. Furthermore, information with high degree of con-         ENTREPRENEURIAL GROWTH
     flict is probably like no information at all.                               Paper                         Track I                            Room 13
                                                                                 Strategic Innovation Management in a Multi-
     DEVELOPING COMPETITIVE E-COMMERCE BUSINESSES                                Business Corporation: The Case of CREAVIS
     Paper                        Track H                            Room 12            Sören Salomo, Christian Albrechts University of Kiel
     e-Business Models: Integrating Learning from                                       Jens Leker, University of Münster
                                                                                        Michael Dröscher, CREAVIS Gesellschaft for Technolgy &
     Strategy Development Experiences and Empirical
     Research                                                                    This paper argues that organisational models for strategic innovation
            Sugato Bagchi, IBM Corporation
                                                                                 management generally known as “venture management” are an increas-
            William Tulskie, IBM Corporation
                                                                                 ingly used form of organisation in German industrial corporations. A
     In this paper we describe the approach and results of our research on       screening of all registered capital venture corporations in Germany in
     analyzing e-business initiatives in order to identify reusable compo-       1999 revealed at least seven major German corporations who are en-
     nents or "building blocks." The identification, description, and organi-    gaged in a corporate venture management seeking to promote new busi-
     zation of these building blocks make it convenient for applying them in     nesses. These emerging forms of venture management differ consider-
     new initiatives across industries and functional areas. We model the e-     ably from organisational models discussed previously as they cover not
     business building blocks in a strategic knowledge representation frame-     only “traditional” internal or external venture operations, but are de-
     work called “Strategic Capability Networks,” which includes the value       signed as an integrating organisational tool to facilitate strategic inno-
     propositions offered by a building block and the capabilities and re-       vation management and its complex tasks. This will be demonstrated
     sources required to do so. The building blocks (and the underlying          by the case of Degussa-Hüls AG and its organisation for strategic inno-
     initiative descriptions) are being stored in a catalog, which is both       vation management “CREAVIS”.
     updated and utilized by the IBM e-business strategy consultants as
     they advise their clients on their portfolio of e-business initiatives.
                                                                                 When Your Skilled Professionals become
                                                                                 Entrepreneurs: Patterns and Explanations
     Meeting the Strategic Challenges of e-Commerce:                                    Boris Groysberg, Harvard University
     Developing Competitive Business Models                                      This paper examines whether and how demographic, organizational,
            David Horne, California State University-Long Beach                  sectoral, and macroeconomic factors influence employees' entrepreneurial
            Margarethe Wiersema, University of California-Irvine                 activities. Longitudinal study of entrepreneurial turnover drivers of
     The focus of this paper is to discuss and analyze the strategic concept     investment analysts, using a panel data set covering the investment
     of competitive advantage in e-commerce markets. Can our traditional         banking industry over nine years, suggests that skilled professionals
     business models built on resource-based competitive advantages and          from high status organizations are more likely to become entrepre-
     barriers to competition and new entrants provide the basis for develop-     neurs. The entrepreneurial activity of investment analysts is mildly
     ing an e-commerce strategy? How different are the sources of sustain-       procyclical with the performance of the economy. Analysts’ external
     able competitive advantage for this new competitive marketplace? It         recognition has an impact on their entrepreneurial mobility with only
     appears that traditional forms of competitive differentiation might be      a few "star" performers departing to set up their own firms. These new
     easily eroded away due to the ease of replication and low switching         ventures, however, experience relatively low survival rates. Preliminary
     costs. These conditions pose major challenges for e-businesses. We          results suggest that analysts' situational rather than dispositional fac-
     propose that a different business model predicated on developing and        tors effect the probability of a professional to become an entrepreneur.
     leverage intangible organizational resources and capabilities is needed
     to compete in the e-commerce marketplace.
                                                                                 Corporate Entrepreneurship in MNC Subsidiary:
                                                                                 What Fosters Subsidiary Manager's
     Mass Customization Based e-Business Strategies
           Ralf Reichwald, Technical University-Munich
                                                                                       Jin Hwan Hong, Boston University
           Frank Piller, Technical University-Munich
           Kathrin Möslein, Technical University-Munich                          Despite MNCs tap into local markets through subsidiary network, many
                                                                                 corporations seem to neglect the creative potential of their subsidiar-
     While the competitive advantage of mass customization has been widely
                                                                                 ies. This research will explore the international corporate entrepre-
     substantiated in management theory, a deficit exists in the empirical
                                                                                 neurship in MNC subsidiary level focusing on which conditions will fos-
     examination and the implementation of mass customization in e-busi-
                                                                                 ter the subsidiary manager's entrepreneurship. Based on interviews

                                                                                08:00 - 09:15                                   Tuesday
with six subsidiary expatriate managers in a Korean general trading           Acquisitions and the Altering of a Firm's
company, I found the subsidiary managers became more entrepreneur-
                                                                              Environmental Management Competence: An
ial than traditionally recognized. In the preliminary framework devel-
oped here, this paper explores the entrepreneurial process of subsidiar-      Exploratory Study
ies and the factors which affect each stage in the process.                          Kimberly Ellis, Michigan State University
                                                                                     Bruce Lamont, Florida State University
                                                                              This paper takes initial steps in examining how environmental manage-
Venture Marketing Organizations: Winning the Race                             ment competencies are altered during the acquisition process. Toward
for New Market Opportunities                                                  this end, we developed research questions based on existing literature
       Nora Aufreiter, McKinsey & Company                                     in the typically disparate research areas of environmental management
       Teri Lawver, McKinsey & Company                                        strategies and the acquisition integration process. In general, we found
Many marketers, struggling to keep ahead of their competitors in an           that firms involved in acquisitions experience significantly larger de-
increasingly complex market, are finding that they cannot mobilize            creases in environmental performance as compared to firms not en-
quickly enough to capture emerging opportunities fast. Often the prob-        gaged in such strategic growth initiatives. Moreover, the deterioration
lem lies in their traditional marketing organization. In the race for new     of environmental performance was most pronounced for acquiring firms
market opportunities, McKinsey & Company has identified "Venture              operating in ecologically sensitive industries and those that did not
Marketing Organizations" (VMOs) as the pacesetters. Sharing the mindset       highlight environmental policies and practices in their annual reports.
of venture capitalists, VMOs spot market opportunities early, swiftly         With the increasing popularity of acquisitions and escalating impor-
allocate resources to those with the biggest payback, set strict hurdles      tance of protecting our natural environment, results from this study
and ruthlessly cut their losses. VMOs pay off, with revenue growth rates      have significant theoretical and practical implications.
that are more than 50 percent higher than the averages across their
industries. McKinsey highlights here how marketers overcome the ap-           Untangling Service for Equity Arrangements
parent paradox to achieve fluidity and discipline and how they build a               James Henderson, Babson College
VMO.                                                                                 Benoit Leleux, Babson College
                                                                                     Ian White, Babson College
MULTI-PERSPECTIVE INTERFACE: TECHNICAL,                                       Consulting firms historically serviced clients for a fee. The rapid emer-
SYSTEMIC, AND STRUCTURAL INFLUENCES ON                                        gence of entrepreneurial start-ups, fueled by generous stock option
                                                                              plans and more-than-receptive IPO markets, and the consequent loss of
PERFORMANCE                                                                   human talent to start-up businesses, have forced these firms to recon-
Paper                        General                              Room 14     sider their classic modus operandi and adopt equity-for-service arrange-
Science Quality, Patent Quality, and Firm                                     ments. This model is both a defensive move (to retain human capital
                                                                              and prevent the defections to start-up companies) and an offensive one
Performance                                                                   (to generate new business from cash-poor, prospect-rich start-ups). This
       Peter Lane, Arizona State University
                                                                              paper, thus, addresses issues concerning strategy, financial manage-
       Marianna Makri, Arizona State University
                                                                              ment, and organizational behavior surrounding this alternative service
       Shermeen El-Hakim, Arizona State University
                                                                              arrangement. Simulation models and methodologies are used to inves-
Much of the research on innovation and performance has relied on patent       tigate the potential impact of such equity-enabled arrangements, and
counts to measure a firm's innovative ability. However, the novelty and       to gain a better understanding of their underlying risks and benefits.
utility of patents varies greatly. This has led researchers to use citation
rates to assess the value of patents: the more a patent is cited by sub-
sequent patents, the more valuable it is. We extend this research by          CASE STUDIES IN INDUSTRY EVOLUTION
examining the influence of the quality of the science cited in a patent       Paper                        Track A                            Room 15
on its subsequent citation by other patents. Using a sample of 40,000         Beyond the Silver Screen, the Motion Picture
U.S. patents, we find that two measures of science quality, the stage of
                                                                              Industry in the US and Europe: Competitive and
its intellectual development and its nearness to commercialization, are
positively associated with subsequent citations. This leads to a multi-       Structural Differences
level model of science, technology, and firm performance.                            Fabrizio Perretti, Bocconi University
                                                                                     Giacomo Negro, Bocconi University
                                                                              The structural differences existing between the American and European
Strategy and Management Accounting Information
                                                                              motion picture industry lead to competitiveness gap on their markets.
System Design: Implications for Business Unit                                 In order to understand the reason for this gap, a general analysis
Performance                                                                   model is proposed. The model considers the main features of both
       Therese Joiner, LaTrobe University-Bundoora                            markets in terms of consumption patterns and of the activities of pro-
       David Wilkinson, LaTrobe University-Bundoora                           ducers, distributors, and exhibitors. The analysis, exclusively focused
In an increasingly turbulent and dynamic business environment, with           on the theatrical market, underlines the complexity of the conditions
consequent increasing uncertainty and equivocality, a premium is placed       that lie under the interaction between demand and supply by using an
on the capture and dissemination of information for decision making           historical perspective and the resource-based view approach. These pri-
purposes. This study examines the differences in design parameters of         mary conditions and their specific evolution help explain the deficit of
management information accounting systems in business units pursu-            audiovisual trade between Europe and the U.S.
ing different strategic priorities. The findings indicated that informa-
tion systems that utilize future-oriented information were more effec-        The Trading Card Industry: How a Rapid Growth
tive for firms adopting a prospector strategy compared with firms using
a defender strategy. The study further found, contrary to expectations,       Market Struck Out
that the mode of information transmission was not linked to the strate-              John Mahon, Boston University
gic priority employed by business units. Rather, the results revealed                Richard McGowan, Boston College
that the transmission mode was associated with an increase in business        The trading card industry is one that has seen rapid initial growth
unit performance regardless of the business strategy being pursued.           followed by a major collapse. A major reason for the collapse of this
The results have important implications for the design and implemen-          profitable industry can be traced to the greed levels of all stakeholders
tation of management accounting information systems.                          involved and their willingness to destroy the industry in pursuit of ever
                                                                              increasing profits. This analysis will trace this industry growth and
                                                                              development over time. The analysis will demonstrate how stakehold-

        Tuesday                                        08:00 - 09:15
     ers can drive a profitable industry into a collapse and how competitors        oldest and best-established ideas in organization theory. This study
     can lose sight of competitive dynamics and events that could have (but         examines fifteen case studies of organizations able to create processes
     were not) been responded to and anticipated, The industry shares many          of continuous change. It argues that rather than overthrowing the punc-
     characteristics with those industries where rivals rely on a monopolized       tuated equilibrium model, the experience of continuously changing
     supply source and limited attention span customers with changing val-          organizations calls for a new understanding of "deep structure," and
     ues and fickle tastes.                                                         that with this new understanding we can better understand and more
                                                                                    effectively promote continuous change.
     Catalysts of Change: The Emergence and Evolution
     of the Venture Capital and Private Equity Industries                           How Do Businesses Change? Theory and Evidence
     in Germany                                                                     from Telecommunications Companies Concerning
            Walter Kuemmerle, Harvard University                                    Relevant Resources and Market Failures
     This paper examines the evolution of the venture capital and private                  Laurence Capron, INSEAD
     equity industry in Germany. Using data from a detailed survey of 27                   William Mitchell, University of Michigan
     leading venture capital firms we argue that early attempts to create a         This project studies different organizational modes by which managers
     venture capital and private equity industry were hampered by a lack of         attempt to change their businesses in the face of strong inertial forces
     complementary institutions such as a public equity market for high             that interfere with attempts to change. We use a routine-based view of
     growth companies. Also, the government’s role as a venture capitalist          strategy, where routines are repeated patterns of actions that span
     crowded out private activities in the first fifteen years of the industry’s    multiple boundedly-rational actors. We define four organizational modes
     development. Over the last ten years, however, a considerable number           of change: internal development, discrete resource exchange, alliances,
     of firms have entered the industry. While this development was fos-            and business acquisitions. We develop propositions concerning two
     tered by a number of institutional changes, the entry of foreign ven-          influences on mode choice, resource relevance and market failure. We
     ture capital and private equity firms has arguably been an important           explore the influences through a series of interviews with managers of
     driver of industry evolution.                                                  European telecommunication firms. The empirical results provide in-
                                                                                    triguing implications concerning the influence of factors that derive
     The Evolution of Dinosaurs: The Study of Impending                             from protecting firms from opportunistic behaviour versus factors that
                                                                                    derive from the need to coordinate the use and creation of resources.
     Industry Upheaval in Management Education
            Paul Friga, University of North Carolina-Chapel Hill
            Robert Sullivan, University of North Carolina-Chapel Hill               EMBEDDEDNESS VERSUS ECONOMICS: COMPETING
     Why is it that while complete industries have been created, destroyed          PERSPECTIVES ON SOCIAL FACTORS
     and/or significantly modified in relatively short periods of time, the         Paper                        General                             Room 17
     industry of management education has remained relatively unchanged             Transformational or Operationally Constrained? Two
     over the past fifty years? Are market forces finally mandating change?
     What should leaders do to maintain relevance and competitive advan-            Perspectives on How Relational Governance Alters
     tage in education and other industries? This paper suggests that the           the Performance of Inter-Organizational Exchanges
     forces driving this change are the same that are disrupting industries                 Laura Poppo, Virginia Polytechnic Institute & State University
     all around the world - globalization, technology, demographic shifts,                  Todd Zenger, Washington University-St Louis
     deregulation, and new workforce skill requirements. The anticipated                    Zheng Zhou, Virginia Polytechnic Institute & State University
     changes in management education's supply, demand, and overall value            While much literature focuses on the use of social relations to coordi-
     chain are quite extensive and may cause almost unimaginable scenarios.         nate commercial exchanges, empirical work that examines the integra-
     Dramatically different strategies must be formulated that include new          tion of social and economic contexts is relatively rare. In this paper we
     markets and processes, virtual product offerings and unique partner-           empirically explore two perspectives that focus on such integration:
     ships, just to ensure survival.                                                the social control perspective as well as a relatively understudied alter-
                                                                                    native transformation. Our empirical results do not fully confirm either
     DYNAMIC STRATEGIES                                                             perspective. In particular, we find no support for the transformation
                                                                                    perspective, and suggest a paradox of trust and distrust forestalls trans-
     Paper                         Track D                              Room 16
                                                                                    formation. Contrary to the social control perspective, we find that
     Shifting Gears between Strategy and Strategizing:                              social relations positively effect exchange outcomes for both low and
     An Empirical Study of Strategy Creators and                                    high hazard subgroups, suggesting that social relations act as a control
     Strategy Sensemakers                                                           for all hazard levels.
             Anne Marie Jess Hansen, Copenhagen Business School
     "... in a changing world, it is not just old answers that are suspect. It is   Organizational Social Capital, Employment Practices,
     also the old questions" (Weick, 1995:186) This is the challenge we face        and Sustained Competitive Advantage
     when asking ourselves: What's the strategy? Quite possibly, the future                Harry Van Buren III, University of Pittsburgh/Roberts Wesleyan
     winner has no strategy. If context is in a state of flux, strategy can no                  College
     longer consist of the creation of a unique and durable position through        In the past thirty years, a large and growing body of research has devel-
     a match of constructed or perceived internal strengths and external            oped into a construct called social capital. Social capital can be defined
     opportunities. If the strategy is to not have a strategy, lots of time and     as an intangible asset inhering in social relations and networks. Leana
     energy is spent on an obsolete question. The research interest pursued         and Van Buren (1999: 538) locate social capital at the organizational
     in the paper is to discuss a possible shift from a focus on strategy           level, defining it as "a resource reflecting the character of social rela-
     towards a more dynamic and process-oriented perspective referred to as         tionships within the firm. Organizational social capital is realized
     strategizing.                                                                  through members' levels of collective goal orientation and shared trust,
                                                                                    which create value by facilitating successful collective action." In this
     The Punctuated Equilibrium Model and the                                       paper, I consider how certain employment practices build sustained
     Dynamics of Continuous Change                                                  competitive advantage. I draw on insights from the resource-based
           Robert Chapman Wood, Boston University                                   view of the firm in an effort to construct a theory that explains why
           N Venkatraman, London Business School/Boston University                  some employment practices have strategic import.
     Recently, some scholars have argued that the phenomenon of continu-
     ous change challenges the punctuated equilibrium model, one of the

                                                                               08:00 - 09:15                                   Tuesday
Motivating CEOs to Higher Corporate Social                                   Survival and Growth in High Risk Environments: A
Performance: The Influence of Incentives and the                             Longitudinal Study of Firm Activity in the Inner
Board of Directors                                                           City
       Sanjay Goel, University of Minnesota-Duluth                                  faye smith, Emporia State University
       Patrice Luoma, Quinnipiac College                                            Marilyn Taylor, University of Missouri-Kansas City
       Jerry Goodstein, Washington State University-Vancouver                       Krishnan Ramaya, University of Southern Indiana
What factors may motivate a CEO to undertake actions contributing to         This empirical study investigated the competitive viability of the inner
high corporate social performance? This study explores the design of         city as a place to do business. Porter (1995, HBR) hypothesized that
governance mechanisms for strategic managers that may encourage them         the inner city location, unmet local demand, employable workforce,
toward achieving this objective. We investigate the direct and indirect      and proximity to clusters of business activity are keys to competitive
effects of long-term incentive alignment in both CEO and board com-          advantage for firms operating within the inner city. The study sup-
pensation, in influencing actions toward corporate social performance.       ported Porter's thesis that location, unmet local demand, and employ-
We also investigate the influence of stakeholder representation on the       able workforce were positive factors that contribute to inner-city firm
board of directors in influencing actions toward social performance. The     activity. Proximity to business clusters was not a significant factor for
hypotheses are tested on a sample of 100 companies that appeared             inner-city firms. Implications are discussed.
annually for six years in the Wall Street Journal's survey on executive
compensation. We used social performance data from the Kinder,
Lydenberg, and Domini (KLD) ratings.
                                                                             Recombination and Redeployment of Corporate
                                                                             Assets: The Case of US Defense Industries, 1978-
You Are Known by the Directors You Keep:                                     1996
                                                                                   Jaideep Anand, University of Michigan
Reputable Directors as a Signaling Mechanism
       Yuval Deutsch, University of British Columbia                         How can firms redeploy their resources into high growth and attractive
       Thomas Ross, University of British Columbia                           markets? Innovative firms can outlast their competitors and product
                                                                             markets through a process of continuous recombination and redeploy-
New firms often have difficulty forming relationships with stakeholders
                                                                             ment of their resources. However, firms possess significant inertia,
such as customers, partners and employees when those stakeholders
                                                                             which make the resources of the firm quite difficult to redeploy else-
must make relationship-specific investments. A formal model is devel-
                                                                             where. In those cases, this reallocation cannot be accomplished inter-
oped to investigate the ability of new ventures to credibly signal their
                                                                             nally within the firm but these redundant assets can be sold and re-
type through the appointment of reputable directors to their boards.
                                                                             combined through a market interface. In order to understand the inter-
In contrast to other adverse selection models, we do not insist that
                                                                             nal and external redeployment, we examine the acquisitions under-
“good” firms are necessarily more profitable than others – in our view,
                                                                             taken by firms in the U.S. defense industries between 1978 and 1996.
stakeholders, may care about other attributes of the firm such as its
                                                                             These acquisitions provide insights into how firms should deal with
employment conditions or environmental standards. Our analysis shows
                                                                             excess resources when demand for existing products has decreased.
that: (a) Good firms can credibly and efficiently signal their type by
                                                                             Implications for theory, business, and public policy are discussed.
“renting” the reputational capital of their directors (b) The quality of
the directors’ information about the firm affects their ability to provide
a credible signal.                                                           The Contribution of Foreign Multinationals to the
                                                                             Host Country Spillover: Evidence on the US Case
HITHER AND YON: SPATIAL ISSUES IN INDUSTRY                                   Using Patent Citations
                                                                                    Tony Frost, University of Western Ontario
DEVELOPMENT                                                                  This paper contributes to the debate about the impact of inward FDI on
Paper                        Track A                             Room 18
                                                                             host country economies. The specific focus of the paper is on the ques-
The Prevalence of the Silicon Valley Phenomena: An                           tion of whether the R&D activities of foreign multinationals generate
Intra-Industry Analysis of Geographic Clustering                             spillovers that are assimilated by local firms. Drawing on patent data
Behavior                                                                     over the 1975 and 1993 time period, the paper analyzes the geography
                                                                             of the citations received by matched patents issued to U.S. firms in
       Shaohua Mu, Virginia Polytechnic Institute & State University
                                                                             their home market and U.S.-based subsidiaries of foreign multination-
       Donald Hatfield, Virginia Polytechnic Institute & State
                                                                             als. Results of the analysis show significant differences across the two
                                                                             groups. Patents issued to U.S. firms receive more citations in the ag-
Recently, researchers in economic geography, industrial organization,        gregate; they are also significantly more likely to receive citations from
international management, and strategic management have presented            firms in their immediate geographic locale. The paper also tests several
specific cases illustrating the competitive implications of geographic       hypotheses about the conditions under which foreign subsidiaries are
clusters that seem to occur in some industries. While less than a hand-      likely to contribute to the local spillover pool. Results are linked to
ful of studies have employed coarse-grained analysis examining the           public policy questions regarding FDI.
prevalence of clustering across industries, no known study has tested
the various factors identified by these inductive studies as explaining
geographical clustering in certain industries. We examine an industry's      INNOVATIVE MEASURES OF DYNAMICS AND RIVALRY
tendency to form geographic clusters as a function of industrial charac-     Paper                        Track B                             Room 19
teristics. The study's implications not only offer insights for both do-     Pressures for Product Proliferation: Developing a
mestic and international cluster academic researchers, but should in-
form managers regarding plant location decisions, policy makers about
                                                                             Resource Deployment Perspective
industrial differences associated with policies geared towards spurring             Jamal Shamsie, University of California-Los Angeles
regional growth, and entrepreneurs involved in business startups.            A critical choice that faces each firm lies in the specific breadth of
                                                                             products that it must offer to compete with its rivals within the con-
                                                                             text of a particular industry. In this paper, we develop a strategic per-
                                                                             spective of the choice that firms must make with regards to their prod-
                                                                             uct line breadth. We propose that a firm's decision to expand its prod-
                                                                             uct line forces it to commit its valuable resources, which could other-
                                                                             wise have been utilized in other ways to increase sales and profits. As
                                                                             such, we show that that the pattern of deployment that a firm chooses

        Tuesday                                      08:00 - 09:15
     for its limited resources can play an important role in explaining the      Strategy Harmony and Dissonance: A Corporate
     differences in product variety that we observe among firms across a         Metrics-Based Approach to Parent-Lower
     wide spectrum of industries.
                                                                                 Management Relationships in Multicultural/
                                                                                 Multinational Contexts (Track C)
     Does Growth Cause Profitability? A Temporal
                                                                                        Kimio Kase, ESADE
     Causality Study of Microsoft Corporation                                           Jordi Pascual, ESADE
            Jeff Trailer, Pennsylvania State University-Erie                            Pedro Parada, ESADE
            Barry Weller, Pennsylvania State University-Erie                            Mario Castrejón, ESADE
     When firms desire growth, a fundamental question arises; how to man-        Corporate-level strategy influences the process of corporate expansion,
     age growth. Should the firm allocate its resources with a priority to-      involving the commitment of a considerable amount of company's re-
     ward gaining competitive advantage or increasing sales? That is, a firm     sources, adding or subtracting value as the opportunities taken advan-
     has limited resources to allocate, should the allocation be driven pri-     tage of or missed out. This study takes into account the two-way inter-
     marily by growth in sales or should the resources be employed to de-        active nature of the corporate strategy viewed as the fit or misfit of
     velop the competitive advantage? Using the Granger Causality frame-         strategy between the parent and its lower management. Successful com-
     work, we studied the temporal relationship between profit margin and        panies enjoy a fit between their parenting style, namely, the way the
     sales growth for Microsoft Corporation The results suggest that com-        parent guides its lower management, and the needs of their businesses,
     petitive advantage caused sales growth. Implications for the manager        and vice versa. Therefore, strategic fit/misfit has a considerable impact
     are to allocate resources with a priority to develop a competitive advan-   on firms' market value. It argues that (1) value creation/destruction
     tage, even when growth is a strategic objective. This will impact profit    might be identified the Harmony/Dissonance Matrix; and (2) this should
     margin first, and will translate into sales growth, consequently.           offer certain predictive value regarding the firms' behaviour estimated
                                                                                 upon certain corporate metrics.
     Strategic Aggressiveness, Adaptation, and Surprise:
     How the Sequential Pattern of Competitive Rivalry                           What the Stock Market is Teaching Us About
     Influences Stock Market Returns                                             Strategic Decision Making (Track G)
            Walter Ferrier, University of Kentucky                                      Peter Saul, Strategic Consulting Group
            Hun Lee, George Mason University                                     Global stock markets have all the hallmarks of complex adaptive sys-
     The competitive dynamics stream of research has recently developed          tems (CAS) and in this they mirror the nature of an increasing number
     theory and empirical methods centering on the conceptualization of          of public and private sector organisations. Moreover, more than 40% of
     firm strategy as competitive action. To advance this view, we define        the population in countries like the United States and Australia now
     strategy at the action sequence level of analysis; that is, the ordered     directly own and manage stock market investments. The experience of
     pattern of repeatable competitive actions carried out in strategic time.    stock market investing is thus likely to be having a major influence on
     We predict that the characteristics of the sequence of actions carried      the decision making behaviour of almost half the workforce. This
     out among rivals within a moving window of strategic time will impact       poster session will provide an opportunity to reflect on what we can
     a corresponding window of the firm’s stock prices. As such, we expect       learn from participation in the stock market about decision making,
     our findings to advance strategy theory, as well as assist managers to      about ourselves, and about the nature of complex adaptive systems.
     make informed choices about the requisite level of competitive aggres-      We will also examine how this learning may affect the way we behave at
     siveness, complexity, predictability, and differentiation with which the    work.
     sequence of competitive actions are implemented over time.
                                                                                 The Impact of ‘Procedural Knowledge’ in the
      POSTER SESSION 3                                13:45 - 15:30              Strategy Process of an Organization (Track G)
                                                                                        Martin Josef Deiss, University of St Gallen
     Poster                                                      Atrium Foyer
                                                                                        Carmen Sagarra, University of St Gallen
     The Algorithmic Structure of Strategic Problems                                    Maximiliam Kownatzki, University of St Gallen
     (Track G)                                                                   The article focuses on the link between strategic management concepts
            Mihnea Moldoveanu, University of Toronto                             as one form of procedural knowledge in strategy processes and firm
            Howard Stevenson, Harvard University                                 performance. Procedural knowledge, which is closely linked to the
     We introduce a new approach to the study of strategic deliberation          connectionist epistemology, encompasses knowledge of processes that
     based on a method for measuring the complexity of problems faced by         primarily lie in the organizing principles by which individual and func-
     managers in the process of making decisions, and a criterion for selec-     tional expertise is structured, coordinated, and communicated. The
     tion among problems. Problems are grouped into three classes: P-type        methodological starting point of this research were six midi-sized case
     problems require solution algorithms of complexity that is a polyno-        studies for which the data was gained through qualitative interviews
     mial function of the number of the problem variables, NP-type prob-         and coding of archival data. Resting on these midi-case studies a pre-
     lems require algorithms of complexity that is a higher-than-polynomial      liminary quantitative study was conducted using standardized ques-
     function of the number of variables; finally, U-type problems are certi-    tionnaires in 15 firms of diverse context. The following hypotheses
     fiably undecidable, i.e. solution algorithms are of infinite complexity.    were supported on the basis of the preliminary quantitative tests: (1) A
     The model predicts that managers will prefer to solve P-type problems       high intensity of concept application in a firm's strategy process im-
     over NP-type problems. The model explains reported patterns of mana-        plies a high degree of analytical and formalized procedure, (2) A high
     gerial problem solving – including the avoidance of iterated-dominance-     degree of procedure leads to higher firm performance.
     reasoning and avoidance of moral deliberation.
                                                                                 Signaling and Market Entry Decisions: An
                                                                                 Application of Game-Theoretic Modeling to Inform
                                                                                 Strategy Research (Track G)
                                                                                       Darryl Seale, University of Nevada-Las Vegas
                                                                                       James Sundali, University of Nevada-Reno
                                                                                 The value of cheap talk and costly signals is examined in a large group
                                                                                 (n=20) market entry game. On each trial of the experiment, subjects
                                                                                 were first informed of the capacity of the market and then given an

                                                                             13:30 - 15:30                                     Tuesday
opportunity to signal their intention to either enter the market or stay   Consequences of Resource Advantage and Industry
out. After reviewing the aggregate signals, the subjects were presented
                                                                           Pressure on Errors in Industry Growth Estimates by
with a binary decision to either enter or stay out of the market. Indi-
vidual payoff for entry was a linear function of the difference between    Small to Medium Enterprises (Track A)
the market capacity and the number of entrants. The experimental                   Rodolphe Durand, EM Lyon
results indicate that signaling did little to improve or hinder already            Robert Kazanjian, Emory University
high levels of group coordination. Signaling was also not effective in     Work in economics, strategy and organization has been focused for
moving the group toward Pareto efficient outcomes. In the cheap talk       some time on understanding patterns and rates of growth of organiza-
condition, costless entry signals were greatly exaggerated with 44 per-    tions and industries. However, none of these works has examined the
cent of entry signals not followed by an entry decision. In the costly     effect of such factors on a firm's accurate estimation of industry growth.
signal condition, exaggeration of entry signals all but disappeared.       Explaining how and why firms develop divergent estimates of growth
                                                                           may provide insight for understanding firm performance. This paper
                                                                           unravels the relationships between the explanatory factors of a firm's
Governance, Performance, and Transaction Costs: An                         inaccurate estimates and the direction of these errors. In a sense this
Empirical Examination of the Economic Causes and                           paper develops an analysis of the determinants of idiosyncratic per-
Effects of Trust in Outsourcing Relationships                              spective on a same reality to which each firm contributes, reality that
(General)                                                                  literally derives from the firm's actions and behaviors.
       Jérôme Barthelemy, Groupe ESC-Nantes Atlantique
In this paper, we empirically study the economic causes and effects of     Industry versus Firm Effects Revisited: An Empirical
trust in outsourcing relationships. Trust is likely to play an important   Study Using EVA and MVA (Track A)
role in outsourcing relationships as they are generally characterized by           Gabriel Hawawini, INSEAD
both risk and interdependence. Our results confirm that the main eco-              Paul Verdin, University Libre of Brussels/INSEAD
nomic effect of trust is a reduction of transaction costs. We also show            Venkat Subramanian, Catholic University-Leuven
that the extent to which an outsourcing client trusts its supplier has
                                                                           The present study examines whether the domination of firm effects
two main economic causes: (1) the performance of outsourcing suppli-
                                                                           over industry effects, reported in past research, are a reflection of the
ers and (2) the extent to which the contract offers a good protection
                                                                           over-performance and the under-performance by a few firms. The paper
against opportunistic outsourcing suppliers (i.e. "contractual trust").
                                                                           uses economic measures of performance in contrast to the past practice
                                                                           of employing accounting measures. The results show that (a) a signifi-
Contract Modes in Corporate Strategy: Towards a                            cant proportion of the absolute estimates of the variance of firm factors
Contingency Approach (Track C)                                             might be due to the presence of firms that strongly outperform or
       Pursey P M A R Heugens, Erasmus University-Rotterdam                underperform the rest of their respective industries and (b) to a major-
                                                                           ity of firms in an industry, the industry effect is as much important to
       Johannes Van Oosterhout, Erasmus University-Rotterdam
                                                                           performance as firm level factors, and (c) industry factors or rather
Contracts are often regarded as the cement holding together communi-       superior combinations of firm and industry factors.
ties of organizational constituents. We propose a refinement of this
"nexus of treaties" view by proposing a contingency approach of con-
tracting practices. First, we identify three different types of advan-      PAPER/PANEL SESSION                              13:45 - 15:00
tages that organizational constituents may pursue through contracting
(1) sharing common reasons, (2) compromising between different rea-        REAL OPTIONS: A BRIDGE BETWEEN
sons, and (3) accommodating to secure a settlement. Second, we also        ENTREPRENEURSHIP AND STRATEGY
identify three different governance mechanisms that are meant to se-       Panel                        Track G                              Room 9
cure the effectiveness of organizational contracts (1) the iron hand of           Rita McGrath, Columbia University
management, (2) the invisible hand of the market, and (3) the intan-              Charles Baden-Fuller, City University Business School
gible hand of attitudinal sanctions. We develop a set of theoretical              Max Boisot, ESADE/University of Cambridge
propositions that jointly comprise a contingency theory of contracting,
                                                                           We focus on how real options reasoning might integrate strategy and
explaining the relative stability of certain advantages--mechanisms
                                                                           entrepreneurship theories. Charles Baden-Fuller kicks off by addressing
                                                                           the implications of options reasoning for the theory of the firm, using
                                                                           examples from biotechnology and banking. He argues that conven-
Choosing Constraints as a Third Solution to Agency:                        tional views of organizations as bounded entities must be fundamen-
A Promising Role for Mission Statements (Track C)                          tally rethought when entrepreneurship becomes a corporate impera-
       Steven Michael, University of Illinois-Urbana Champaign             tive. Max Boisot in contrast pleas for retaining traditional management
       John Pearce II, Villanova University                                concepts but only in specific parts of an organization's learning space.
                                                                           Rita McGrath concludes the formal presentations in the panel with new
We consider the proposition that in delegating decisions making au-
                                                                           evidence from entrepreneurial milieus, suggesting that strategic suc-
thority to management, shareholders and Board of Directors should
                                                                           cess using real options reasoning suggests counterintuitive evaluation
impose constraints to resolve the misalignment of incentives between
                                                                           criteria. This promises to help hone in on one holy grail for entrepre-
shareholders and managers known as the agency problem. In addition
                                                                           neurship research; namely which kinds of new businesses will generate
to the traditional solutions to agency of granting managers financial
incentives or monitoring them more closely, we argue that a third op-
tion exists -- choosing constraints. Shareholders, through the Board of
Directors, can actively commit the firm not to do certain things. For
many decisions, these constraints can address the agency problem bet-
ter than incentives or monitoring. We suggest theoretical underpin-
nings to guide Boards in their choice of constraints on management
and we present examples from corporate mission statements to illus-
trate how constraints can be specified.

       Tuesday                                      13:45 - 15:00

     THE RESOURCE-BASED VIEW AND RELATIONAL/                                    Does Context Influence Knowledge Transfer: The
     NETWORK VIEW: IS THE NETWORK A NEW UNIT OF                                 Influence of Experience and Institutional Aspects of
                                                                                Patent Systems on the Licensing of Inventions
     ANALYSIS IN STRATEGY RESEARCH?                                                    David Robinson, Texas Tech University
     Panel                       Track B                            Room 10
                                                                                Prior research on transfer of knowledge across organizations has fo-
            Jeffrey Dyer, Brigham Young University
                                                                                cused to a great degree on the traits of the knowledge itself or of the
            Ranjay Gulati, Northwestern University
                                                                                organizations involved in the transfer. Instead, I tested the argument
            Jay Barney, Ohio State University
                                                                                that the national context of interorganizational knowledge transfers
     This panel examines firms and networks as units of analysis in the         affects whether knowledge transfers occur. I did this by studying the
     strategy field. According to an RBV perspective, networks are not a        licensing history of 874 university inventions patented in 30 countries
     separate unit of analysis because (1) there is no attribute of a network   from 1971 to 1995. Length of national membership in the World Intel-
     that cannot be defined in terms of the attributes of firms in a network    lectual Property Organization (WIPO) and the Patent Cooperation Treaty
     and (2) patterns in a network can be logically deduced by aggregating      (PCT) had significant effects on licensing and those effects were sepa-
     specific firm actions in a network. In contrast, proponents of a rela-     rate from simple national membership in the PCT or WIPO. These find-
     tional/network view, argue that networks have their own configura-         ings may provide evidence of collective learning in the patent/licens-
     tions and characteristics that require that they be analyzed as a sepa-    ing infrastructure that elaborates over time (Ingram and Baum, 1997;
     rate unit of analysis. According to the relational view, strategy will     Greve, 1999).
     increasingly be formulated and executed (and competitive advantage
     created) at the network level.
                                                                                Determinants of Market, Firm, and Business Unit
     ENTREPRENEURIAL OPPORTUNITY: RECOGNITION,                                  Effects in US Corporations
                                                                                       Fernando Lefort, Catholic University of Chili
     DISCOVERY, AND CREATION                                                           Matko Koljatic M, Catholic University of Chili
     Panel                        Track I                           Room 13
                                                                                Variance decomposition analysis has shown the relative importance of
            Sankaran Venkataraman, University of Virginia
                                                                                corporation, industry, and business-unit effects. However, we are still
            Saras Sarasvathy, University of Washington
                                                                                ignorant about what causes the persistent differences in returns of units
            Nicholas Dew, University of Virginia
                                                                                belonging to particular corporations and/or operating in specific sec-
     Using literature reviews, and existing historical, empirical, and anec-    tors of the economy. In this study, we replicate existing variance de-
     dotal evidence, the panel will examine “entrepreneurial opportunities”     composition analyses to a more recent sample of business units operat-
     -- each panelist focusing on one of the following three pre-conditions     ing in the U.S. manufacturing sector using COMPUSTAT business unit
     for their existence:                                                       data from 1990 to 1997. We also modify the standard model specifica-
     1. If both sources of supply and demand exist, the opportunity for         tion estimating some of the class effects as fixed effects and including
     bringing them together has to be “recognized” and then the match-up        additional explanatory variables in the model. We find, among other
     between supply and demand has to be implemented either through an          things, that the degree of both market concentration and corporate
     existing firm or a new firm;                                               diversification positively affect business unit returns.
     2. If only one side exists – i.e., either demand or supply, not both –
     then, the non-existent side has to be “discovered” before the match-up     The Domain and Sub-Fields of Business Policy: A
     can be implemented; and finally,
                                                                                Review of 20 Years of Strategy Research
     3. If neither supply nor demand exist in an obvious manner, one or
                                                                                       Garnet Garven, University of Regina
     both have to be discovered and/or “created” for the opportunity to
                                                                                       Norman Schein, University of Western Ontario
     come into existence.
                                                                                What is the domain of business policy and how has its sub-fields of
                                                                                research evolved over the past twenty years? The formal research do-
     LEARNING: HISTORY AND CONTEXT                                              main of business policy/strategic management consists of nineteen sub-
     Paper                        Track F                            Room 7     fields as developed by Schendel and Hofer. Custom designed key-word
     Knowledge Codification in the Replication and                              computer search software was used to sort every article published over
                                                                                the past twenty years in the Strategic Management Journal into these
     Imitation of Racecar Technologies                                          nineteen sub-fields. The results help define the domain of business
            Mark Jenkins, Cranfield University                                  policy and suggest significant under-researched sub-fields and poten-
     This paper considers the 'Paradox of Replication', where the growth of     tial new emerging research streams. These new directions may provide
     the firm is dependent on the ability to transform technical knowledge      insight in the future of business policy research. The 20th Annual In-
     into a code understood by a wider set of users. This is countered by the   ternational Conference provides an irresistible opportunity to reflect
     notion that the rate of diffusion of technical knowledge to competitive    upon past research and the opportunity for forward consideration and
     firms may erode a firm's market position. We focus on the reasons for,     further definition of the domain.
     processes of, and competitive outcomes from codifying technical knowl-
     edge. We consider three cases of innovative technological approaches
     in one specific industry context to explore the drivers for codification   TECHNOLOGY, ALLIANCES, AND PERFORMANCE
     and develop a framework for guiding the processes of codification in       Paper                        Track F                            Room 11
     intensive technological contexts. We discuss the implication of these      Communities of Creation: Managing Distributed
     ideas for strategy in a context of rapid emergence, growth and obsoles-    Innovation in Turbulent Markets
     cence of new technologies.
                                                                                       Mohanbir Sawhney, Northwestern University
                                                                                       Emanuela Prandelli, Bocconi University
                                                                                We describe a new model for managing distributed innovation: the com-
                                                                                munity of creation. This is a governance mechanism for managing
                                                                                innovation that lies between the hierarchy-based (closed) mechanism
                                                                                and the market-based (open) mechanism for innovation management.
                                                                                The community-centric model shifts the locus of innovation beyond the
                                                                                boundaries of the firm, to a community of individuals and firms that
                                                                                collaborate to create joint intellectual property. A community of cre-
                                                                                ation requires an identified sponsor, ground rules for participation, and

                                                                                  13:45 - 15:00                                   Tuesday
a system for managing intellectual property rights. We argue that it            The findings indicate that a VC’s competence matters and that VCs can
allows innovation to proceed in a complex environment by striking a             add value to the success of its general partnerships, provided that they
balance between order and chaos. We draw upon several theoretical               use these competencies to assist their portfolio firms to discover and
domains to develop the community of creation model. We present case             exploit valuable venture opportunities. This research also provides lon-
studies from the computer industry to highlight the differences among           gitudinal support for the outcomes predicted by a knowledge-based
different approaches to innovation management.                                  view of the firm.

The Organizational Advantage: Combining and                                     Dynamic Mastering of Technological and Managerial
Exchanging Resources to Create Value                                            Competencies: Some Preliminary Results from a
        Kevin Clark, Bentley College                                            Study in the Telecom Industry
        Ken Smith, University of Maryland                                              Paolo Boccardelli, Luiss Guido Carli University
        Chris Collins, Cornell University                                              Mats Magnusson, Chalmers University of Technology
        Cynthia Stevens, University of Maryland
                                                                                This paper deals with the dynamics of competencies in R&D environ-
A model of adaptive efficiency (innovation) is proposed based on four           ments. Building on the dynamic resource-based perspective, an ana-
forms of capital: physical, human, social, and intellectual. Data from a        lytical framework comprising two categories of competencies, techno-
field study of 48 U.S. and 31 Irish high-technology firms are used to           logical and managerial, is proposed. While technological competencies
test relationships between the four forms of capital, and with firm-            have been thoroughly attended to in previous research, managerial com-
level innovation. Multiple sources including chief executive interviews,        petencies are identified as an area in need of further elaboration. The
top manager surveys, core employee surveys, and publicly available sec-         concept of managerial competencies is developed, leading to a more
ondary data are utilized. Of particular interest are the interactions           detailed division into competencies of combination, selection, trans-
between physical, human, and social capital. The results indicate that          formation and creation. The changes in configurations of competencies
a firm's ability to adapt is a function of the level of intellectual capital,   are investigated in two R&D settings in the Telecom Industry. The analysis
which in turn, is predicted based on a complex interaction of physical,         of data from seventeen development projects performed in a period of
human, and social capital. (intellectual capital, innovation, knowledge)        fifteen years reveals that development performance is positively corre-
                                                                                lated to the utilization of managerial competencies and the use of ear-
Technological Clusters and Firm Performance                                     lier developed technological competencies.
       Timothy Folta, Purdue University
       Arnold Cooper, Purdue University
       Yoon-Suk Baik, Purdue University
                                                                                STRATEGIC LINKAGES: ALLIANCES, ACQUISITIONS,
This paper investigates how technology attributes (codifiability,               AND TRUST
appropriability, cumulativeness, growth opportunity) moderate the re-           Paper                        Track C                             Room 14
lationship between a firm's cluster membership and its performance,             Interorganizational Linkages at the Millennium's
using data from 828 U.S. biotechnology firms over the life of the indus-        End: Relationships between Cultural Distance, Mode
try. Our main conjecture is that the nature of a firm's technology
should influence whether the firm locates in a cluster, and ultimately,         of Entry, and Performance of Acquisitions and
will bear upon firm performance. Our empirical model consists of two            Alliances
steps. First, we explore if a firm's technology attributes determine if it              Arthur Sherwood, Indiana University
locates in a cluster. Second, we examine whether firms that have lo-                    Todd Saxton, Indiana University
cated "correctly" will outperform the other set of firms. Thus, our             This study takes a multi-method approach to examine comparative per-
theoretical and empirical model leave open the possibility that cluster         formance of acquisitions and alliances between firms in eight coun-
membership need not be associated with better performance.                      tries. We compare performance across modes of entry (nonequity alli-
                                                                                ance, equity alliance, and acquisition), and explore how cultural dis-
CAPABILITIES INTO RESULTS                                                       tance relates to mode of entry (MOE) and performance. We find that
                                                                                overall, acquisitions are regarded as more successful than alliances. We
Paper                          Track F                             Room 12
                                                                                find no main effect between cultural distance and performance--spe-
Knowledge Assets Isolating Mechanisms and                                       cifically, acquisitions are viewed as more successful than alliances for
Competitive Advantage: An Empirical Longitudinal                                domestic transactions, but neither type is more successful for cross-
Study                                                                           border transactions. The findings reinforce the complexity of these
       Boris Durisin, University of St Gallen                                   transactions in a world where mode of entry, cultural distance, and
       Georg Von Krogh, University of St Gallen                                 performance are intertwined.
An analysis of the global investment banking industry during the pe-
riod 1991-1999 finds that knowledge assets grounded in the collective           Acquisitions and Alliances: A Comparative Study of
firm knowledge act as a isolating mechanism. They form the basis of             Performance in New Markets
competition and are sources of competitive advantage. The stocks of                    Sarah Marsh, Northern Illinois University
knowledge have an influence on group-level effects when forming stra-                  Annette Ranft, Wake Forest University
tegic groups. Groupings based on them further differ on a risk-ad-              During the last decade the number of mergers and acquisitions, as well
justed return on equity. The paper concludes that a knowledge-based             as the number of firm alliances has steadily increased to record levels.
perspective on strategic groups and competitive advantage might pro-            In this study, we explore the role of knowledge-based resources in the
vide new insights.                                                              context of new market entry to shed light on when acquisitions or
                                                                                alliances are likely to be most effective. This research develops and
Competencies and Their Influence on Wealth                                      tests hypotheses predicting that the industry context and a firm's re-
Creation in the Venture Capital Industry                                        sources and capabilities will influence the relative performance of ac-
      Jim Fiet, University of Louisville                                        quisitions and alliances. To address these questions, the research de-
      Lowell Busenitz, University of Oklahoma                                   sign employs archival data from a multiple industry sample. The initial
                                                                                sample consists of over 350 acquisitions and alliances announced over
The developing consensus is that privately held knowledge is a basic
                                                                                the 1990 to 1995 time period.
resource that can be exploited for competitive advantage. This research
focuses on a longitudinal examination of two types of venture capital
(VC) competence: (1) industry competence and (2) deal competence.

        Tuesday                                       13:45 - 15:00

     Alliance Citizenship Behavior: Behavioral and                                 collected from IJVs in Vietnam. Results indicate that social control and
                                                                                   similarity between the foreign parent and the IJV facilitate the transfer
     Contractual Trust as Proxies for Economic Hostages
                                                                                   of knowledge from the foreign parent; however, flexibility and creativ-
            Pat Dickson, Georgia Institute of Technology
                                                                                   ity hinder it in this context. We also find that social control and trust
            Mark Weaver, University of Alabama
                                                                                   between the IJV’s parents promote better performance.
     This research develops and tests a model of alliance relationships that
     takes into account economic, contractual and social constraints and
     explores the differential impact of each of these control mechanisms on       IJV or Wholly-Owned Subsidiary for Foreign Entry:
     the overall judgment of alliance participants regarding the trustworthi-      Does the Market Care?
     ness of alliance partners. In specific the focus of this study is trust and          Louis Hebert, Ecole des HEC
     its origins within the alliance relationships of 782 entrepreneurially               Stephen Sapp, University of Western Ontario
     oriented firms located in Mexico, Indonesia, and the Netherlands. The         This paper focuses on the market reaction associated with the selection
     results of the study have implications for firm decision leaders who          of a specific entry mode. It investigates the moderating effect of the
     when faced with great environmental uncertainty must decide between           host country conditions on how the capital market assesses the value-
     more economically and contractually secured relationships and those           implications of an IJV versus a WOS in foreign environment exhibiting
     that are more socially bound and flexible and must make these deci-           different country risk and cultural distance conditions. Using a sample
     sions often under great resource constraints.                                 of 350 international entries by Japanese firms, standard event-study
                                                                                   analyses provided empirical support to our hypotheses. Results showed
     Target Novelty, Experience Heterogeneity, and                                 that the market recognized the tradeoffs involved in selecting a WOS
                                                                                   versus an IJV and the differential ability of these modes to mitigate the
     Acquisition Performance                                                       uncertainty associated with a foreign country's environment. Further
            Maurizio Zollo, INSEAD                                                 analyses suggested that the market gave value to firms' ability to ac-
            Kyung Min Park, INSEAD                                                 quire international and host country experience.
     This study investigates the relationship between the characteristics of
     organizational experience related to acquisition processes, and acquisi-
     tion performance. The specific research question seeks to identify the
                                                                                   TOP MANAGEMENT’S ROLE IN DRIVING
     key moderators for the influence of experience on performance: the            ORGANIZATIONAL CHANGE
     degree of novelty of the target, the diversity of past experience, and        Paper                        Track D                             Room 16
     the degree of success in past acquisitions. Measures are developed using      Leaders' Entrepreneurial Orientation: Does
     a combination of survey and archival data for a sample of 425 acquisi-
     tions in the U.S. banking industry. Results show that experience accu-        Experience Matter?
     mulation has a U-shaped direct effect on performance, and that target                Ragnhild Kvålshaugen, Norwegian School of Management
     novelty is negatively related to it. Moreover, experience heterogeneity       The paper focuses in particular on whether or not there is any system-
     has a positive effect at increasing levels of target novelty, whereas the     atic relationship between leaders' entrepreneurial orientation and their
     success rate in past acquisition activity is a liability in this respect.     experience bases (in particular educational background, tenure, and
                                                                                   functional background). Entrepreneurial orientation is understood as
                                                                                   transformational leadership. A transformational leader typically inspires
     WHY ALLIANCES? STRUCTURE AND PERFORMANCE OF                                   followers to do more than originally expected. The research question
     INTERNATIONAL JOINT VENTURES AND ALLIANCES                                    was empirically investigation on a sample of 1200 leaders - 600 engi-
     Paper                         Track E                             Room 15     neering-educated leaders and 600 business-educated leaders. A postal
                                                                                   questionnaire was sent to the 1200 leaders and 46 percent responded
     The Effect of Nationality and Partner Differences in                          (300 engineers, 251 business-educated managers). The findings from
     Structuring Strategic Alliances                                               the study suggest that overall engineering-educated leaders are more
            Paul Olk, University of Denver                                         entrepreneurially oriented than their business-educated counterparts.
            Hemant Merchant, Simon Fraser University                               Also previous work experience explains a significant proportion of the
            Gary Henderson, University of California-Irvine                        variance in entrepreneurial orientation. The explanations for these find-
     Strategic management research has recently started to systematically          ings are further elaborated in the paper.
     investigate the effect of differences in partner nationality on strategic
     alliances, finding that there is indeed a difference in the structure of      Absorbing Complexity: Relating Absorptive Capacity
     alliances attributed to nationality. Lacking in this research, however,
     is an understanding of how these differences compare to the known
                                                                                   of TMTs to Firm Performance in a Dynamic
     effects of company-based differences on alliance structure. That is, do       Environment
     country-based and company-based differences have separate effects on                 Susan Houghton, Georgia State University
     venture structure? In this paper we address the issue by analyzing data              Pamela Barr, Georgia State University
     collected on 750 joint ventures involving U.S. and foreign partners.                 Alice Stewart, Ohio State University
     The findings contribute the importance of nationality in understanding        How are firm leaders able to make sense of, and successfully act within,
     the design of these increasingly critical organizational structures.          increasingly turbulent and fast-paced environments? Recent research
                                                                                   suggests that a high level of absorptive capacity, which is the ability to
     Trust, Organizational Controls, Knowledge                                     value, assimilate, and apply external information in ways that enhance
                                                                                   the value of the firm (Cohen and Levinthal, 1990), may intensify the
     Acquisition from the Foreign Parents, and                                     strategic thinking demanded by such environments. Yet much of the
     Performance in Vietnamese IJVs                                                empirical research on absorptive capacity has focused on technology
            Marjorie Lyles, Indiana University                                     transfers between joint venture partners. Our research develops the
            Sim Sitkin, Duke University                                            construct of absorptive capacity at the level of the top management
            Jeffrey Barden, Duke University                                        team (TMT) and tests its relationship to firm effectiveness. Results
     The roles of trust and control in organizations have recently received a      from a sample of 59 hospital TMTs suggests that higher levels of TMT
     great deal attention in the literature; however, much of this discussion      absorptive capacity improve firm effectiveness.
     has been theoretical. Thus, the goal of this study is to test the ways
     that trust and control impact knowledge transfer and performance in
     interorganizational relationships by importing multiple measures of trust
     and control into a model of IJVs. We test our hypotheses using data

                                                                               13:45 - 15:00                                    Tuesday
Top Management Skills in a Context of Radical                                the top team in daily practice, so producing and reproducing the con-
Organizational Change: An Exploratory Study
       Alain Vas, Catholic University-Louvain
Our exploratory research, based on a case study of a major European          E-COMMERCE       BUSINESS MODELS          AND   VALUE
Telecommunication Corporation, Belgacom, suggests that the new en-           CREATION
demic nature of organizational change processes is simultaneously fast,      Paper                        Track H                             Room 18
frequent, fundamental, and of a permanent nature. In this context,
our study showed the importance of the CEO's decisions for the renewal       e-Business Models: Value Creation and Competitive
of the top management team and the setting-up of a vast retraining           Advantage
plan to coincide with the transformational process. Moreover, our re-               Sendil Ethiraj, University of Pennsylvania
search identified an important characteristic of leadership during rapid            Harbir Singh, University of Pennsylvania
and frequent change processes: the "a priori trust" which the change                Isin Guler, University of Pennsylvania
leader has to inspire but can not impose. This paradoxical situation of      Academics and practitioners have attempted to develop an understand-
the change leader was observed at all times. Finally, a strong partner-      ing of the changes in the business environment ushered in by the
ship between top management and trade-unions which have turned out           Internet. Most of these attempts have been in the nature of typologies
to be real co-pilots for change has emerged.                                 and classifications. However, they provide little understanding of what
                                                                             drives competitive advantage, an issue central to strategists. We offer
STRATEGY PROCESSES OF PROFESSIONAL                                           a framework that serves two purposes. It first attempts to categorize
                                                                             the value proposition(s) implied in extant e-businesses, illustrating with
ORGANIZATIONS                                                                caselets of well-known firms. The second purpose of the classification,
Paper                        Track G                             Room 17     of relevance to strategy practice, is based on a conjecture that different
Competing Motivations: Towards an Understanding                              sources of competitive advantage are likely to be important across dif-
                                                                             ferent e-business models. Consequently, our framework attempts to iden-
of the Strategy Formation Process in Nonprofit                               tify different e-business models and suggest a discriminating match
Organizations                                                                with the sources of competitive advantage.
       Terry Bolden-Walker, Curtin University of Technology
This case study is a qualitative examination of the strategy formation       Value Drivers of e-Commerce Business Models
process in a non-profit organisation in Australia. In particular, investi-
                                                                                    Raffi Amit, University of Pennsylvania
gating how different (and sometimes competing) organisational moti-
                                                                                    Christoph Zott, INSEAD
vations are or are not satisfied and how this significant task is accom-
plished in a not-for-profit environment. The organisation used is a wa-      Using data from sixty American and European e-commerce companies
ter resource committee in Western Australia, distributing highly sought      that have recently become publicly traded corporations, we develop a
after water irrigation access in a desert area. The study provided some      conceptual framework for assessing the value creation potential of e-
insight and understanding to the complex task of satisfying the de-          commerce business models. A business model depicts the way in which
mand of competing motivations in non profit organisations. The case          a company enables transactions that create value for all participants,
study is part of doctoral research undertaken by the author in looking       including its partners, suppliers, and customers. Our framework facili-
at the strategy formation process of senior executives of non-profit         tates a comparison of the value-creation potential of different e-com-
organisations in Australia.                                                  merce business models along four identified value drivers, namely, nov-
                                                                             elty, lock-in, complementarities, and efficiency. Our central claim is
                                                                             that a firm's business model is an important locus of innovation. The
Strategic Issue Labels as Antecedents of Conflict in                         value that it creates goes beyond the value that can be realized through
Strategic Decision Making                                                    the appropriate positioning of an enterprise within an industry or the
       Christopher Shook, University of Texas-Arlington                      exploitation of firm-specific core competencies.
Managing conflict is an important part of strategic decision making.
Previous research on the causes of conflict has focused primarily on         Business Model Innovation in the New Economy
group demographics. At the heart of strategic decision making are                   Vinod Jain, Bowling Green State University
strategic issues, which are often ambiguous and require interpretation       Business models are a much-discussed topic in e-Business circles though
by decision makers. Strategic issues are often represented by general        there is little agreement among both researchers and practitioners as to
labels that capture managers' beliefs about the issue and initialize pro-    what the specific models are or how e-Corporations create value. Cur-
cesses that direct an organization in a given direction. Using a sample      rently popular e-Commerce approaches seem to be as diverse and as
of hospitals, this paper examines the impact of the labels attached to       innovative as the e-Corporations themselves. These range from simple
strategic issues on the conflict experienced in the subsequent resolu-       e-Shops to complex third-party marketplaces, and new models are emerg-
tion of that issue. This paper concludes with implications for future        ing all the time. The presentation will explore different business mod-
research as well as practice.                                                els, their taxonomies, and performance metrics. It will include the re-
                                                                             sults of a quantitative study of the top fifty e-Businesses in an attempt
Towards a Mid-Range Theory of Strategy as Practice                           to relate their performance to their business models. The idea is to draw
       Paula Jarzabkowski, University of Warwick                             upon actual e-Corporate practice and to provide a framework for future
This paper draws upon an in-depth investigation of top management            discussions about e-Business models.
team (TMT) strategic action in three universities. Strategy as practice
(‘strategising’) is theoretically framed as the situated processes of in-
terplay between TMTs and their organizational contexts. Three inter-
dependent levels were found to be important in the analysis of strat-
egy as practice. First, the reciprocal processes of TMT strategic think-
ing and acting are influential in strategic choice and action. However,
the TMT are both constrained and enabled by the organizational con-
text in which they act. Thus context may be regarded as the infrastruc-
ture providing the necessary material and social resources for practice
to occur. Finally, interplay between the TMT and their context is medi-
ated by strategy processes, arising from context and drawn upon by

        Tuesday                                        13:45 - 15:00

     Paper                         Track C                              Room 19
     An Objective Price of Market Uncertainty: The
     Missing Link in Measuring Strategic Risk
            James McNulty, Chicago Mercantile Exchange
            Michael Lubatkin, University of Connecticut/EM Lyon
            William Schulze, Case Western Reserve University
            Tony Yeh, Chicago Mercantile Exchange
     Executives routinely have to make tough investment decisions, and so
     are striving to better understand the calculations by which their in-
     vestments are valued. Close examination reveals a flaw common to all:
     Every existing valuation technique uses the Capital Asset Pricing Model
     (CAPM) to calculate the rate used to discount future cash flows. We
     argue CAPM-based measures are bad for practice since they are both
     unreliable and theoretically unable to answer the capital budgeting
     question that most concerns managers: What rate must they earn from
     an investment to enhance shareholder value? This paper describes a
     new forward-looking theoretically-grounded market-based measure, the
     Options Derived Cost of Capital, or ODCC, that is reliable and provides a
     new framework for understanding the link between managerial activity
     and firm value.

     Corporate Venture Capital and the Creation of US
     Public Companies: The Impact of Sources of Venture
     Capital on the Performance of Portfolio Companies
            Markku Maula, Helsinki University of Technology
            Gordon Murray, London Business School
     Using a sample of 325 venture capital backed, information technology
     IPOs in 1998-99, we find that enterprises co-financed by multiple Glo-
     bal Fortune 500 InfoCom corporations (GF500ICTs) receive higher valu-
     ations than comparable firms supported by venture capitalists alone.
     Similarly, this former group outperforms firms co-financed by a single
     GF500ICT corporate. We explain the superior performance of GF500ICT
     co-financed ventures by complementary certification and value-added
     as well as better investment selection. The superior performance of
     enterprises with multiple GF500ICT investors is posited as the result of
     incremental certification, validation of emerging dominant designs, and
     reduced incidence of agency problems because of the countervailing
     effects of several corporate investors. Our findings support resource-
     based/organizational-capability theories by demonstrating the positive
     influence of technology-based corporations on VC-backed enterprises
     in non-established technologies.

     Apples, Oranges, and the Diversification Discount
             Belén Villalonga, University of California-Los Angeles
     Two recent studies have found that the so-called "diversification dis-
     count" is not really attributable to diversification per se. This raises the
     question of what causes the average diversified firm to trade at a dis-
     count with respect to comparable single-segment firms. I examine the
     baseline possibility that the discount of diversified firms is an artifact
     of its estimation method. First, the assumption that a diversified firm's
     segment's q is equal to the average or median q of the single-segment
     firms in its industry may induce a bias as stand-alone segments are
     sometimes unrepresentative of their industries. This bias is corrected
     here using a sample selection model. Moreover, the use of segment-
     level data raises an aggregation problem that I address using a new
     establishment-level Census database.

                                                                              08:00 - 09:15                                 Wednesday
                                                                            research is based on the assumption that change is episodic. The paper
 PAPER/PANEL SESSION            08:00 - 09:15                               reports on a preliminary study designed to develop a methodology for
THE CORPORATE ROLE IN NURTURING GROWTH                                      doing further research on the role of change agents and the skills,
Panel                        Track C                            Room 19     support, and development they require. Findings suggest that there
       Bala Chakravarthy, IMD/University of Minnesota                       are different types of roles for change agents affected by the context in
       Peter Lorange, IMD                                                   which they are operating and supports the suggestion from existing
       David Ford, Dow Chemical Company                                     literature of the importance of political skills. Implications of the find-
       Ronald Peterson, Peterson Technical/Business Strategy                ings for future research and practice are discussed.
Growth is essential to the long-term well being of a firm. Yet, as recent
surveys have shown, very few large corporations have been able to sus-      VERTICAL STRATEGIES: INTEGRATION AND
tain profitable growth over long periods. This panel will provide helpful
suggestions for developing and executing a growth oriented corporate
                                                                            Paper                         Track C                              Room 8
strategy. The two business executives on the panel will share their in-
sights on how the corporate office can play a more effective role in        Do Make or Buy Decisions Matter? The Influence of
nurturing organic growth, based on their own experiences in helping         Governance on Technological Performance
with this effort at Dow Chemicals and Honeywell International. The two             Michael Leiblein, Ohio State University
academics on the panel have worked closely with these two companies,               Jeffrey Reuer, Ohio State University
among others, as part of their field study on managing growth. They
                                                                            This paper investigates how firms' decisions to outsource or internalize
will present the more general findings from their research.
                                                                            production affect their technological capabilities. The paper develops a
                                                                            conceptual model which describes the performance implications of firms'
SUCCESSFUL CHANGE IN LARGE ORGANIZATIONS                                    vertical boundary choices based on transaction cost theory and the
Paper                        Track D                             Room 7     resource-based principles. Empirical evidence based on 725 production
Leading Organizational Change through Knowledge                             decisions involving 140 firms active in the global semiconductor indus-
                                                                            try indicates that simple models, which fail to account for the
Transfer: An Analysis of General Electric from 1981-                        endogeneity of firms' production decisions, demonstrate a positive rela-
1998                                                                        tionship between the decision to outsource and firms' technological
        Adelaide King, University of Virginia-McIntire                      capabilities. However, models that address self-selection indicate that
        Ian Palmer, University of Technology-Sydney                         neither outsourcing nor internalization is superior in general; rather,
The organization change and knowledge literatures generally fail to         technological performance is enhanced by an alignment between firms'
recognize how both organization change phases and knowledge trans-          governance decisions and the underlying features of exchange.
fer activities are contemporaneous, interlinked organizational processes.
We argue that mapping the metaphors of different change phases is an        Strategic Outsourcing and Contract: A Transaction-
appropriate way to bring these two literatures together. Depth is added
                                                                            Cost Analysis
to understanding organizational change by identifying the extent to
                                                                                    Jérôme Barthelemy, Groupe ESC-Nantes Atlantique
which different change phases are associated with different 'knowledge
                                                                                    Bertrand Quelin, Groupe HEC
transfers' and the mechanisms where by this is achieved (or fails). Simi-
larly, depth is added to understanding the use of knowledge in creating     Little is known about the nature of service outsourcing strategy. In this
value for organizations by focusing on how knowledge transfer entails       article, we develop a modified transaction-cost analysis to examine the
different organizational change phases. To delve into this relationship,    relational contracting between a firm and a provider in case of
we use content analysis to examine Jack Welch's first seventeen years       outsourcing of services. We use a framework in which asset specificity
as CEO of General Electric.                                                 and uncertainty aspects, and relational aspects of outsourcing are the
                                                                            main variables. In addition, ex post transaction costs, contract dura-
                                                                            tion, and contractual density are investigated. The results show that
Strategic Change in Professional Service Firms: A                           activities are contracting out even in case of high level of asset speci-
Sensemaking Perspective                                                     ficity. Furthermore, contract duration and contractual density are posi-
       Kai-Christian Muchow, University of St Gallen                        tively with ex post transaction costs. Finally, the relationship between
       Carmen Sagarra, University of St Gallen                              uncertainty and contractual density depends if uncertainty is external
The professional services sector has gained a prominent role in sup-        or internal. Contract duration is positively related to the contractual
porting the process of value creation of companies due to the increas-      density.
ingly complex and volatile business environments managers in most
industries have to cope with. However, the competitive dynamism in          Determinants of Vertical Integration: A Dynamic
their client industries also has strong repercussions on the evolution
of the professional services sector itself, characterized by an increas-    Panel Data Estimation Applied to the Spanish Case
ing tension between the need for global standardization and local                  Rodolfo Salinas, University of La Rioja
responsiveness. In this study, the role of non-managing partners of                Emilio Huerta, Public University of Navarra
professional service firms both as facilitators and recipients of corre-    This paper analyses the factors which determine the level of vertical
sponding initiatives of strategic change is analyzed. Specifically,         integration of Spanish manufacturing firms. Use is made of the infor-
the paper focuses on the contribution of sensemaking activities to de-      mation provided by the Business Strategies Survey which allows us to
scribe and explain the role of middle management within processes of        work with a panel of firms covering the period 1990-1996. On this
strategic renewal of professional service firms.                            basis we apply the data panel econometric methodology with the aim
                                                                            of being able to control for the possible existence of unobservable dif-
                                                                            ferences between firms. Similarly, by way of the generalised method of
The Art of Change Agency: What Role Do Internal                             moments estimator proposed by Arellano and Bond, we introduce the
Change Agents Play?                                                         consideration of dynamic responses, which allows us to analyse the
      Julia Balogun, Cranfield University                                   vertical integration decisions under the assumption of a behaviour sub-
      Veronica Hope Hailey, Cranfield University                            ject to a partial adjustment model.
This paper examines what the existing literature can contribute on the
nature of the role of internal change agents. Although something is
known about the skills required of change agents, little is known about
the nature of the change agency role (Hartley, et al, 1997). Existing

     Wednesday                                       08:00 - 09:15

     Revisiting Vertical Scope: Capabilities, Integration,                       We describe some of the primary factors strategists should consider if
                                                                                 they are to successfully manage their technological innovation pro-
     and Profitability in the Mortgage Banking Industry
                                                                                 cesses. The paper develops a theory that provides conceptual means to
            Michael Jacobides, University of Pennsylvania
                                                                                 reconcile the impetus to develop inimitable technological breakthroughs
     This paper reconsiders the drivers and implications of vertical scope,      with the increasing need for standards, compatibility, and seamless in-
     fleshing out loose theorizing about capability-driven integration. Us-      terchangeability among technology-based products and services.
     ing an analytical model as a tool, we answer the following questions:
     1. How do differential firm capabilities and limits to replication affect
     choice of vertical scope? 2. How do transaction costs combine with
                                                                                 Conflicting Voices: The Effects of Ownership
     capability distribution in shaping scope? 3. How is mean profitability      Heterogeneity and Internal Governance on
     and its variation (and the division of rents between firms and resources)   Corporate Strategy
     related to capability distribution, replication, and transaction costs?            Robert Hoskisson, University of Oklahoma
     The model's structure and mechanics are motivated from interviews and              Wayne Grossman, Texas A&M University
     grounded in the mortgage banking context. Applications, such as why                Michael Hitt, Arizona State University
     loan brokers have had such a plush life, what drove changes in vertical            Richard Johnson, University of Missouri-Columbia
     structure and concentration, and how IT re-shapes mortgage banking          Corporate governance research generally assumes that various constitu-
     are reviewed.                                                               encies have homogeneous preferences with respect to corporate strat-
                                                                                 egy and risk taking. However, the voices of governance often reflect
     DIFFERENTIATION OF PRODUCTS             AND   ORGANIZATIONS                 their own distinct interests, which may conflict with the interests of
     Paper                        Track C                             Room 9     other shareholders. Such conflict among those who govern large corpo-
                                                                                 ration introduce a potential problem for top executives and boards with
     IPO Boards of Directors and Financial Performance:                          respect to which voices they should pay attention. Although share-
     Considering the Life-Cycle of the Firm                                      holders have been more active in monitoring and attempting to create
            Suzanne Carter, University of Notre Dame                             positive changes to improve shareholder wealth, the empirical evidence
            James Davis, University of Notre Dame                                on shareholder activism is mixed. Shareholder monitoring and activism
            Charles Young, Success Academy                                       may not have a strong positive effect on performance because constitu-
     Past research examining the influence of boards of directors on finan-      ent shareholders often do not have a unified voice regarding corporate
     cial performance has acknowledged, but typically failed to account for,     strategy initiatives. This study, therefore, examines the relationship
     the life-cycle of the firm when examining the effectiveness of the board    between important ownership constituents, internal governance char-
     on firm outcomes. Recognizing that the board has the potential to           acteristics, and corporate strategy. The results suggest that difference
     provide new firms with a competitive advantage, this study empirically      ownership constituencies (mutual fund managers versus pension fund
     examines the effectiveness of board structure and behavior on financial     managers) and director characteristics (inside managerial directors ver-
     performance for start-up IPO firms. Results show a positive relationship    sus outside directors), have differing influence on corporate strategic
     between venture capitalists and financial performance. Also, interest-      indicators, especially internal innovation and external innovation (ac-
     ingly, we find that directors with industry experience do not have a        quisition of innovation).
     relationship to future performance, but that board processes influence
     future performance. Results suggest that the life-cycle of the firm is an
     important contextual variable to include when examining board effec-
                                                                                 COGNITION, BELIEFS, AND MENTAL MAPS OF
     tiveness.                                                                   STRATEGISTS
                                                                                 Paper                         Track G                             Room 10
     The Context and Consequences of Different Paths                             The Enactment of Value Chains and Value Networks:
     for Creating Organizational Networks: Evidence                              The European Third-Generation Cell Phone Industry
     from R&D Consortia                                                                James Douglas Orton, University of Nevada-Las Vegas
            Paul Olk, University of Denver                                       No abstract available.
            Yves Doz, INSEAD
            Peter Ring, Loyola Marymount University                              The Cognitive Maps of Top Management Teams and
     This paper explores the context and consequences of different forma-
                                                                                 the Management of Discontinuities
     tion processes of a particular type of organizational network, an R&D
                                                                                        Rebecca Henderson, Massachusetts Institute of Technology
     consortium. In doing so, it adds to the growing literature that empha-
                                                                                        Sarah Kaplan, Massachusetts Institute of Technology
     sizes the importance of organizational processes for understanding stra-
                                                                                        Fiona Murray, Massachusetts Institute of Technology
     tegic management. Specifically, the paper builds from recent research
     that has identified two types of formation processes of networks: engi-     Beginning with Schumpeter, scholars have sought to understand the
     neered and emergent. It examines the conditions when these forma-           effects of technological discontinuities on industries and organizations,
     tions are likely to occur and their consequences. The results further       yet, most of this literature is predicated on the ex post identification of
     strategic management literature’s treatment of the formation of net-        the discontinuities and the firms that won and lost. This leaves a gap
     works by showing how the nature of the formation process affects char-      in understanding discontinuities ex ante. Why do different companies
     acteristics of and effectiveness of the governance arrangement.             respond differently during discontinuities? What factors determine their
                                                                                 fates? Most past explanations of differential performance during
                                                                                 discontinuities have placed the cause on (matched or mismatched) ca-
     The Strive for Product Differentiation and the Plea                         pabilities and (successful or failed) actions, omitting the role of mana-
     for Technological Standards: A Conceptual                                   gerial cognition. Analysis of 25 years of data on the response of major
     Assessment                                                                  pharmaceutical companies to the biotechnology revolution, however,
            Gideon Markman, Rensselaer Polytechnic Institute                     shows that the structure, content and evolution of top management
            Maritza Espina, Rensselaer Polytechnic Institute                     team cognitive maps can substantially explain organizational outcomes.
     This conceptual paper critiques the resource-based view of the firm and
     its four criteria and highlights inherent tradeoffs between uniqueness –    Linking Content to Process: How Mental Models of
     a key characteristic of technological innovation – and commonness,          the Customer Enhance Creative Strategy Processes
     which is central aspect of technological standards. Our view is that              Olaf Rughase, University of Witten-Herdecke/Panlogos GmbH
     sustained competitiveness is likely when companies have better under-
                                                                                 The "cognitive school" has achieved a massive impact on the strategy
     standing of the fundamental tradeoffs between newness and standards.

                                                                                08:00 - 09:15                                 Wednesday
making process. However, there has been little effort to integrate ana-       The Effect of the Strategic Planning Sophistication
lytical tools into a cognitive strategy model. We developed an analyti-       on Firm Performance
cal way to include the cognition of customers into the strategy process.
                                                                                      Luis Flores, Northern Illinois University
This approach enables a sensitive analysis of "the world of the cus-
                                                                                      Ralph Catalanello, Institute for Strategic Learning
tomer" by stories customers tell. Stories represent complex informa-
                                                                                      Narsingh Saxena, Northern Illinois University
tion in few words and elicit deeper values of customers. They are,
therefore, well suited to describe existing and possible competitive ad-      What makes strategic planning work? The research stream about the
vantages. General patterns of these stories (revealed by the analytical       planning/performance relationship has produced contradictory results.
tool) are (re)constructed by managers during workshops. In the follow-        The paper proposes the concept of planning sophistication as a con-
ing they use this "outside-in" - perspective to trigger new interpreta-       struct to explain planning effectiveness. Planning sophistication con-
tions, bringing up new and creative ideas for the positioning of the          sists of strategy formulation activities, strategy implementation enablers,
company.                                                                      and planning process drivers. The analysis of 182 business organiza-
                                                                              tions reveals that all these components are positively associated with
                                                                              firm performance. Implementation enablers appear to explain the added
The Development of Shared Beliefs and Its Role                                variance more than the other elements followed by planning process
During the Strategic Decision Process                                         drivers. This seems to support the idea that the strategy formulation
       Mirela Schwarz, University of Southampton                              activities will not be successful unless supported by implementation
When organizational members work on strategy development their shared         enablers and planning process drivers. The findings suggest that com-
sets of belief influence the strategic decision process and, thus, can        panies with a higher degree of strategic planning sophistication would
influence the performance of an organization. This paper explores the         achieve higher levels of performance.
question how and to what extent shared sets of belief influence or is
influenced by the strategic decision process. The research findings are       Revisiting the Planning Dimensions and Planning
based on a longitudinal field study of a West-European multinational          Outcomes Relationship: An Empirical Study
organization involving interviews and observations of organizational                 Dimitrios Koufopoulos, University of Wales-Cardiff
members participating in the strategy development process in their
                                                                              Academics and practitioners conducted a substantial number of studies
organizational, social, and cultural settings. The paper seeks to provide
                                                                              exploring the relationship between planning and financial performance.
detailed insights into the development of shared beliefs among organi-
                                                                              Subsequently, a number of review and meta-analytical studies were car-
zational members during the strategic decision process; a new theoreti-
                                                                              ried on scrutinizing the adopted approaches and the results of the early
cal framework explaining the role of shared beliefs during this process;
                                                                              research efforts. This particular research domain has been fiercely criti-
and implications for managerial practice.
                                                                              cized as both conceptually, and methodologically inadequate by offer-
                                                                              ing "contradictory, inconclusive, and confusing results". Thus, we have
PLANNING PROCESSES           AND   DECISION MAKING                            adopted the view that the planning-financial performance relationship
Paper                         Track G                             Room 11     is being moderated by a number of direct outcomes such as learning,
                                                                              managerial development, openness to change, rigidity, and managerial
A Typology for the Comparative Analysis of
                                                                              resistance. The paper discusses the principal dimensions of planning
Strategy-Making Processes in Organizations                                    systems. It then investigates the major outcomes and consequences of
       Robert Harrington, Washington State University                         planning and presents the results of an empirical study. Finally, conclu-
This paper discusses the implications of environmental uncertainty on         sions and recommendations are drawn for designing planning systems
the strategy-making process of the organization. The basic theory of          for optimum benefits.
this discussion is that a fit between the strategy-making process type
and environmental uncertainty will result in superior performance for
the firm. This paper synthesizes pervious theoretical models into four
                                                                              MAKING E-BUSINESS WORK
coherent, measurable, and falisfiable ideal types. This synthesis is          Paper                        Track H                              Room 12
grounded in previous theory that implicitly and explicitly suggests two       e-Learning and e-Commerce: Strategy and Strategy
common dimensions that differentiate previous models, modes, or               Implementation in Cyberspace
schools: a collective versus individualistic process and deliberate versus           Mark Kriger, Norwegian School of Management
emergent strategy. These two dimensions are not conceived of as mutu-                Odd Skarheim, in2win
ally exclusive perspectives but as two continua. The proposed typology
                                                                              What are the processes by which the Internet is recreating the rules of
conceptualizes organizations by level of uncertainty as well as the me-
                                                                              business competition? How are strategy implementation processes evolv-
diating and moderating effects of structural characteristics.
                                                                              ing and changing in e-businesses? The paper will address these ques-
                                                                              tions by developing a framework for understanding some of the dimen-
The Shadow of the Past: Unpacking the Ratification                            sions of competing that are changing with the increased use of the
Fallacy                                                                       Internet. The presentation will be anchored via two in-depth cases -
       Mihnea Moldoveanu, University of Toronto                               one on Involve Learning, a Web-based company headquartered in
Studies on managerial cognition ask, 'Are strategic choices and judg-         Scandinavia, and the other on, with its headquarters in
ments efficient?' In this paper, I ask, 'Are strategic judgments causally     the U.S. These cases will be used to illustrate several differing ways in
efficacious?' I will review results from experimental and cognitive psy-      which strategic process is changing in the emerging Internet economy.
chology showing the assumption that managers do that which they               Involve Learning is in the business of facilitating organizational change
have most reason to do is likely to be false. Managers do, however,           processes and strategy implementation using the Internet to increase
believe that they have acted rationally in the past and construct ex          the depth of involvement of people in change processes, while simulta-
post rationalizations. I call these two conditions the ratification fal-      neously decreasing the time span of the process (a Scandinavian ap-
lacy, because it indicates that most people fail to ratify their decisions,   proach to change implementation).
but are oblivious to this failure. If the argument holds, strategy re-
search and teaching produces rationalizations for practicing strategic        Accelerating Markets: The Effects of Internet-
managers. I recommend an agenda for strategy research that can pro-           Enabled Resale on Firm Value Creation and Strategy
duce actionable reasons rather than rationalizable actions.                         Paul Nunes, Andersen Consulting
                                                                              The emergence of countless resale markets online, from C2C site eBay to
                                                                              health industry auction site Neoforma, is permanently changing real
                                                                              and perceived total cost of ownership (TCO) across myriad products,

     Wednesday                                        08:00 - 09:15
     affecting consumer perceptions and buying behavior. This yields new           A Learning Races View of Alliances Between
     opportunities for greater margin capture and increased customer inter-
                                                                                   Entrepreneurial Firms and Large Firms
     action and loyalty than before, and is causing manufacturers to rethink
                                                                                          Sharon Alvarez, Ohio State University
     their businesses, including customer segmentation, product design,
     channel partners, and the nature of competition in the future. Reflect-       Hamel (1991) suggests that alliances may provide an opportunity for
     ing on how other already-established resale markets have progressed           one partner to internalize the skills of the other, and thus improve its
     provides insight into how these new ones will emerge, and which strat-        position both within and without the alliance. However, Hamel's study
     egies will prevail. In particular, our research points to three areas sell-   is limited to international alliances. This paper suggests that alliances
     ers should be targeting for active participation: reselling, refurbishing,    between entrepreneurial firms and large firms highlight asymmetries in
     and retaining value through information capture.                              the skill endowments of these firms and provides a framework to em-
                                                                                   pirically test Hamel's learning race theory. Similar to Hamel's findings
                                                                                   in the international setting, we suggest that not all entrepreneurial
     A Proven Methodology for Developing a Portfolio of                            firms are equally adapt at learning and that asymmetries in learning
     e-Business Initiatives                                                        alter the relative bargaining power of partners, altering the outcome of
             William Tulskie, IBM Corporation                                      alliance performance for entrepreneurial firms. Finally, we suggest that
             Sugato Bagchi, IBM Corporation                                        the appropriate determinants of alliance performance and success for
             Jonathan Leland, IBM Corporation                                      entrepreneurial firms may be increased funding, job creation, and low-
     IBM Research and Global Services have worked with a variety of large          ered firm risk.
     firms to develop e-business strategies. The typical firm has a variety of
     projects (e-business initiatives) underway that make use of the Internet.     Reverse Transfer of R&D and Organizational
     Each project typically got started by some individual business unit act-
                                                                                   Learning: Perspectives of the Japanese Overseas
     ing within its own autonomy and to serve its own ends. Looking across
     all of the initiatives within the enterprise, one sees little consistency,    Subsidiary
     frequent redundancy in effort and virtually no intentional exploitation              David Methé, Sophia University
     of the firm’s existing business capabilities or complementarites in value            Hideki Yoshihara, Kobe University
     or costs. We have devised a flexible methodology to resolve these diffi-      We conduct an exploratory investigation of the management of R&D
     culties and compose a rationally selected set of initial investments for      activities as viewed from the perspective of the subsidiary in Japanese
     a firm that positions it to pursue subsequent initiatives in a logically      MNEs. We examine the effect of the relationship between the subsid-
     composed scheme.                                                              iary and the parent on the learning process of the MNE. We saw that
                                                                                   Japanese subsidiaries established a strategic approach to the develop-
                                                                                   ment of R&D capabilities. We found that this strategic approach influ-
     SOURCES OF ORGANIZATIONAL LEARNING                                            enced the likelihood of reverse transfer of technological knowledge to
     Paper                         Track F                             Room 13     the parent. This aspect of organizational learning is influenced by the
     Do Weak Ties Lead to Significant Innovations?                                 manner in which this transfer is managed. The duration of R&D activi-
     Knowledge Sourcing Strategies in the Biotechnology                            ties at the subsidiary and the type of R&D conducted also influenced
                                                                                   this process of organizational learning.
            Anupama Phene, University of Utah
            Karin Fladmoe-Lindquist, University of Utah                            ENTREPRENEURSHIP IN AN ELECTRONIC WORLD
     Our study examines the influence of knowledge sourcing strategies on          Paper                        General                            Room 14
     a firm’s ability to generate significant innovations. We integrate con-       The Delta Model: Explaining New Sources of
     cepts from two streams of research–the embeddedness argument and              Business Profitability
     the resource-based view of the firm. Using these concepts, we posit
                                                                                          Arnoldo Hax, Massachusetts Institute of Technology
     that knowledge derived from external sources representing different
                                                                                          Dean Wilde II, Dean & Company
     social contexts is novel and therefore more valuable (weak ties con-
     cept), leading to path breaking innovations. The social context of knowl-     The two paradigms that have had the dominant influence on academic
     edge determines its value in innovation. Firm capabilities in integrat-       thinking and on the practice of management in the strategy field have
     ing this novel knowledge from different social clusters influence             been Porter, during the 1980s, and the Resource-Based View of the
     innovativeness. Patent citation data is used to examine external knowl-       Firm, during the 1990s. We dare to propose a model, which we refer to
     edge sourcing strategies of U.S. biotechnology firms. We make a con-          as the Delta Model, that departs from these two approaches in some
     tribution to the field of strategy, by using a new theoretical lens, the      fundamental dimensions, while at the same time richly complementing
     weak ties concept, to examine capabilities that contribute to firm com-       them. The paper presents formal ways of describing the Delta Model
     petitive advantage.                                                           and relating it to Porter's Frameworks and the Resource-Based View of
                                                                                   the Firm. More importantly, we offer empirical evidence to support the
                                                                                   practical merits of our approach. The theoretical foundations of the
     Intrafirm Knowledge Transfer in a Global Services                             Delta Model are drawn from network externalities, increasing returns,
     Firm: A Social Exchange Perspective                                           and the complexity theory literature.
            Sharon Watson O’Donnell, University of Delaware
     In this study, data from a global services firm are used to test a model      Technological and Institutional Drivers of Emerging
     of intrafirm knowledge reuse. An important component of an effective          Business Models in
     system of knowledge reuse is the willingness of individuals with valu-        e-Commerce: Evidence from 1990s US, Spain, and
     able pieces of knowledge to contribute them to the knowledge manage-
     ment system. Social exchange theory suggests that individuals are             UK
     motivated to contribute their knowledge to the system if they: 1) have              Marc Ventresca, Northwestern University
     an expectation of some future return, or 2) feel an obligation because              William Kaghan, Sakson & Taylor/University of Washington-
     they realized a gain from reusing existing knowledge that was contrib-                   Tacoma
     uted to the system by others. Here, hypotheses are tested concerning                Jane Sakson, Sakson & Taylor
     the factors that lead to knowledge reuse and the relationship between         The emergence of e-businesses is widely perceived to involve a radical
     knowledge reuse and an individual's contribution to the knowledge             change in the business environment in which firms compete. Standard
     management system.                                                            explanatory models give primacy to technology, neglecting the interde-
                                                                                   pendence of technology, institutional/political drivers, and legal/regu-

                                                                               08:00 - 09:15                                 Wednesday
latory infrastructures that affect business models. We investigate how       On the Organization Mission Construct: Its
context shapes both business models and organization form, and how
                                                                             Antecedents and Consequences
industry participants simultaneously shape and adapt to both the tech-
                                                                                    Jatinder Sidhu, Erasmus University-Rotterdam
nological and institutional environments in which they operate. We
                                                                                    Edwin Nijssen, Catholic University-Nijmegen
investigate these questions through a comparative study of e-commerce
firms based in the U.S., the U.K., and Spain.                                       Harry Commandeur, Erasmus University-Rotterdam
                                                                             The organization mission construct occupies a prominent place in stra-
                                                                             tegic management models. Given this, one would expect to find a clear-
Globalization and Microgeography: An Exploratory                             cut definition of the construct in the literature, a tradition of cumula-
Study of Entrepreneurial Start-Ups and Established                           tive theory building, and a related body of empirical findings. Surpris-
Incumbents in Emerging High-Technology                                       ingly, however, literature examination reveals that this is not the case.
Industries                                                                   With a view to contribute to the building of a foundation for systematic
       Dodo zu Knyphausen-Aufsess, University of Bamberg                     academic research into organization mission, this paper advances a theo-
       Andreas Zaby, Bain & Company Germany Inc                              retically anchored, operationalizable definition of the construct. Fur-
                                                                             ther, with a key premise being that reliable and valid measures of con-
This paper rests on two observations. First, the literature on the theory
                                                                             structs are the sine qua non of theory testing, a measure of the con-
of the multinational enterprise does not adequately address the dis-
                                                                             struct is developed that is adequate in a psychometric sense. Further-
tinctiveness of high-technology enterprises that are active in emerging
                                                                             more, a nomological network of antecedents and consequences of orga-
industries. Second, the geographical dimension is also treated inad-
                                                                             nization mission is specified and tested.
equately. Based on multiple case studies of German high-technology
companies a common pattern of internationalization is determined.
The paper proceeds to develop a theoretical interpretation, building on      Strategic and Cognitive Groups in the Homebuilding
new elements that are 'foreign' to internationalization theory: evolu-       Industry: Comparative Framework and Empirical
tionary and geographic theory. Subsequently, internationalization 'in
the other direction' is analyzed by taking a closer look at U.S. invest-
ments in Ireland in order to explore whether the previous case study                Angela González-Moreno, University of Castilla-LaMancha
findings can serve as the basis for the development of a 'general' theory           Manuel Villasalero-Diaz, University of Castilla-LaMancha
of internationalization in emerging high-technology industries.                     Francisco Sáez-Martinez, University of Castilla-LaMancha
                                                                             Strategic group has been used as an intermediate tool between the
                                                                             analysis of the industry as a whole and the individual analysis of com-
Emerging Models in Content Industries: Business                              peting firms. Unfortunately, few empirical studies carry out that task
Roles in an Interactive World                                                from a cognitive approach. In this paper, we analyze the Homebuilding
       Paola Dubini, Bocconi University                                      Industry structure in an small town developing two parallel empirical
       Luigi Gioni, Bocconi University                                       studies. First, we identify the strategic groups that integrate that in-
The aim of the paper is to highlight the emerging roles and the strate-      dustry following the traditional economic-approach. Moreover, using
gic imperatives facing traditional content providers in their develop-       repertory grid technique (Kelly, 1955), we analyze the manager's men-
ment of a digital strategy. The information revolution and the explo-        tal models in order to obtain their personal taxonomies of competitors.
sion of connectivity have determined structural changes in content           Our empirical analysis demonstrates that both categorization of com-
industries and opened up several entrepreneurial opportunities, while        petitors, research-defined and manager-defined are convergent, sug-
at the same time challenging consolidated business models. The results       gesting that there is a direct and indirect causation between them.
presented derive from a thorough analysis of traditional and emerging
players in the book and newspaper, as well as in the recorded music
industries. We have identified five emerging roles influencing web strat-
                                                                             THE ROLE OF NETWORKS IN ORGANIZATIONAL
egies, website configuration, and integration/coordination of traditional    CHANGE
and new businesses. The paper discusses extensively the characteristics      Paper                        Track D                             Room 16
of each model, their key success factors, and their implications in terms    Top Leaders’ Network: Does Organization Design
of content as well as branding strategies.
                                                                                    Lene Foss, Norwegian Institute of Fisheries & Aquaculture Ltd
CONSTRUCTING REALITY: COGNITIVE APPROACHES TO                                       Audun Iversen, Norwegian Institute of Fisheries & Aquaculture
STRATEGY AND COMPETITION                                                                 Ltd
Paper                        General                             Room 15     Top leaders play an important role in strategic decision making. One
                                                                             important objective of strategic leadership is that of linking the organi-
A Cognitive Perspective on Strategic Management:                             zation to its environment. In this paper we ask the question: To what
Contributions and Implications                                               degree are top leaders' external network contingent on organizational
       Vadake Narayanan, University of Kansas                                design, i.e. the internal characteristics of the organization? With the
       Benedict Kemmerer, University of Kansas                               assumption that top leaders' networks are purposively created within
During the past two decades, a substantial number of scholars have           the limits and the needs of the organization, we discuss what deter-
pursued a cognitive agenda in the strategic management field, which          mines the range of network of top leaders. We find that size and verti-
traditionally has been a bastion of rational economic thought. Based         cal differentiation are the most important of the tested organizational
on a review of 160 articles and books published between 1979 and             characteristics, while horizontal differentiation had somewhat less in-
1999, this paper seeks to accomplish three major objectives: First, we       fluence. Our results indicate that to view organizational characteristics
bring together in an integrative framework the disparate literature on       as conducive to top leaders network range is a fruitful approach.
the cognitive aspects of strategic management. Second, we highlight
the complementarity of the cognitive perspective to the traditional eco-
                                                                             Triggers of Organizational Change: Learning from
nomic perspective. Third, we highlight implications for strategic man-
agement practice. As we move into the "Entrepreneurial Millennium,"          the "Hassles" of Network Partners
characterized by persistent conditions of turbulence, ambiguity, and               Harald Fischer, University of Wisconsin-Madison
unpredictability, a cognitive perspective offers significant potential for         Anne Miner, University of Wisconsin-Madison
the explanation, prediction, and control of strategic phenomena.                   Ji-Yub Kim, University of Wisconsin-Madison
                                                                             Observations from a qualitative investigation of U.S. manufacturing firms
                                                                             suggest that relatively small 'hassles' or surprises related to customers

     Wednesday                                      08:00 - 09:15
     or other exchange partners may ultimately produce strategic organiza-      Are You Surfing or "Serfing"? A Dual Perspective
     tional change. Activities initially seen as minor adjustments to deal      Framework on the e-Business Alliance Network
     with small stimuli generated change trajectories that had substantial
                                                                                       Hans Knutsson, Lund University
     impact. This process contrasts with the tacit assumption in much strat-
                                                                                       Allan Malm, Lund University
     egy and organization research that major external shocks will be linked
                                                                                       Paul Jönsson, Lund University
     with major organizational change, while minor external interactions
     will be linked with minor change. We label the processes we observed       Information technology is a facilitator of cost-efficient exchange of
     as 'asymmetric' change, referring to the match between original change     information and new product/service offerings. This makes it possible
     stimulus and eventual outcomes, and suggest such disproportionate          for companies to organize in new ways. Spanning from joint ventures
     processes enrich theories of organizational change, learning, and eco-     to strategic alliances, the organizational solutions revolve around net-
     logical processes.                                                         works: firms get more specialized, and the focus of business activity is
                                                                                gradually turning more on interfirm collaboration, co-evolution, and
                                                                                co-opetition. Despite existing critique, new solutions invite themselves
     Internationalization in Science Parks: How Can                             well to be explained by existing theories: transaction cost theory and
     Science Park Management Make a Difference?                                 asset specificity, the resource-based view and distinctive capabilities
            Lars Bengtsson, Lund University                                     have the necessary parts. We present a three-dimensional framework,
     Recent research show that the most successful small technology based       increasing our understanding how firms are positioned and how they
     firms tend to have both elaborate local networks as well as interna-       may re-position themselves in the e-business reality: specificity, value-
     tional networks. Small firms, with limited managerial and financial re-    creation potential, and tangibility of assets determine the competitive-
     sources, face here a tremendous challenge. Science parks are founded       ness of a firm's position.
     to help small technology and research based firms to build local net-
     works. The research undertaken here will study how the small technol-      Web Traffic Acquisition as a New Business Model:
     ogy based firms' local networks, the science park's network, and the
     science park's management interact and their effect on the individual
                                                                                An Empirical Examination of Traffic Determinants
     firms' internationalization process. The paper will report the results     and Firm Performance in Pure Internet Firms
     from a survey of Swedish science parks and their firms currently based            Shivaram Rajgopal, University of Washington
     in these science parks.                                                           Suresh Kotha, University of Washington
                                                                                       Mohan Venkatachalam, Stanford University
                                                                                This study identifies determinants of Web traffic and then examines
     E-COMMERCE      NETWORKS       AND    COMMUNITIES                          their impact on firm performance after controlling for accounting/fi-
     Paper                       Track H                            Room 17
                                                                                nancial information. We conduct the value-relevance analysis recog-
     Strategic Management of Virtual Internet                                   nizing that managers choose optimal levels of traffic based on con-
     Communities: An Empirical Study of                            straints such as cash balances, industry membership and their market-
            Frank Rothaermel, Michigan State University                         ing budgets. Although traffic is highly value-relevant, we find weak
            Stephen Sugiyama,                                  associations between sales levels or sales growth with traffic. We con-
     The emergence of the Internet radically changes the way we do busi-        jecture that traffic creates future growth potential through network
                                                                                effects and customer relationships that do not necessarily result in
     ness and thus challenges our traditional business models. One poten-
                                                                                current realized sales revenues. We provide preliminary evidence in
     tially powerful business model in the new Internet world is the virtual
                                                                                support of this conjecture by documenting strong associations between
     on-line community. Successful virtual communities are crucial to the
                                                                                acquisition prices and website traffic for a sample of firms that either
     success of e-businesses. An effectively managed virtual Internet com-
                                                                                merged or were acquired by other Internet firms.
     munity brings economic gains to the community organizer and con-
     sumers. This paper derives a model for determining the success of
     virtual on-line communities based on four key strategic factors: active    TIMING OF E-COMMERCE INITIATIVES
     community management, member interaction, member contributions,            Paper                        Track H                            Room 18
     and original content. We then empirically test the model based on a
     survey conducted via the Internet in a virtual community dedicated to
                                                                                Web-Based Companies at the Time of Initial Public
     wristwatch collectors - The empirical results provide        Offering (IPO): Are They Different from Traditional
     general support for our model.                                             IPO’s?
                                                                                       Boyd Cohen, University of Colorado-Boulder
                                                                                       G Dale Meyer, University of Colorado-Boulder
     Networks and Connectivity as Key Organizing
                                                                                The recent commercialization of the Internet (circa 1995) has had a
     Principles for the Information Age: A Study of                             significant impact on the U.S. economy, accounting for $500 billion
     Digital Product Distribution on the Internet                               and 2.3 million jobs. Some Internet companies with little revenue, no
            John McIntosh, Bentley College                                      profits, and few tangible assets have market capitalizations in excess of
            Eonsoo Kim, Korea University                                        some industry giants. Our investigation, utilizing an evolutionary lens,
            Terrence Sebora, University of Nebraska-Lincoln                     sought to understand what differences existed between Internet firms
            Wongyu Song, Korea University                                       and non-Internet firms at IPO. We found some types of Internet firms
     Electronic technologies that support business on the Internet have al-     were younger, had less revenue, net income, and productivity than did
     lowed firms such as to profoundly transform the basis of com-     traditional firms at IPO. However, these Internet firms received similar
     petition by developing a new arsenal of competitive weapons based on       amounts of capital compared to traditional firms at IPO. These results
     technical acumen, information leveraging, and competitive agility. These   suggest that netpreneurs (web-based entrepreneurs) have been experi-
     developments have, however, degraded the explanatory power of stra-        encing a different set of expectations from the venture capital and
     tegic management theory. We contend that current theory may be             investment communities.
     extended by using a network perspective to study simple, prototypical,
     electronic organizations. In this paper we use 12 months of server log
     data to explain how, a "primitive" electronic organiza-
                                                                                First-Mover Advantages in the Internet Economy
                                                                                       Marvin Lieberman, University of California-Los Angeles
     tion, distributes digital products by leveraging high connectivity and
     the vast number of networks on the Internet. Our preliminary findings      This study examines first-mover advantages in the new "market spaces"
     suggest that supplementing strategic management theory with net-           created by the Internet economy. Data on stock market capitalization,
     work principles may extend its usefulness in the digital age.              revenue, and visitation frequency are used to investigate the effects of
                                                                                entry order. Preliminary findings suggest that first-mover advantages

                                                                              08:00 - 09:15                                 Wednesday
are often substantial in markets characterized by "network effects" but     STRATEGY MAKING IN INTERNET TIME
are more modest in other environments. Investors appear to have over-
                                                                            Panel                        Track G                             Room 19
anticipated the extent of pioneering advantage in many cases. In addi-
                                                                                   Johan Roos, IMD
tion, established firms outside the Internet sector hold potential "late-
                                                                                   Bart Victor, Vanderbilt University
mover" advantages, which are briefly assessed.
                                                                                   Pelle Tornell, Enlight Interactive
                                                                            With the impact of the new economy, how will traditional strategy making
Competitive Advantage in On-Line Business: Early-                           manifested in vision, mission, and plans be affected? In this panel
Mover Advantage and the Relative Performance of                             session, we will draw on the experience of a new economy firm,
Start-Up and Established Firms                                              Stockholm-based Enlight-Interactive (, to
                                                                            explore the problem of strategy making in fast-changing and complex
       Robert Grant, City University Business School
                                                                            businesses. The CEO, Pelle Tornell will discuss his company's experience
       A Bakhru, City University Business School
                                                                            with different approaches to making strategy, and the limits of the
Given the ubiquity of the Internet and the speed with which its busi-       traditional approaches to provide direction and motivation in his e-
ness applications have diffused both globally and across products, the      learning business. Johan Roos and Bart Victor will outline a conceptual
aim of the research is to assess which firms are likely to establish com-   framework to better understand how strategy making as a process must
petitive advantage in on-line businesses. As in all new industries, two     change to meet increasingly complex, unpredictable, and real time com-
critical issues are addressed: what are early mover advantages, and what    petitive environments. They will propose a new model of strategy mak-
are the relative advantages of start-ups to established companies? Pri-     ing in real time, and illustrate how this works in Enlight and in other
mary data is collected in respect of two sectors: web-specific companies    companies. In this framework, concepts like virtuosity, heedfulness,
(such as ISPs), and on-line brokers, in both the US and UK. The re-         and play have important roles in thinking about and practicing strat-
search aims to show that start-ups tend generally to be early entrants      egy making.
and established companies tend to be followers, although a reversal of
this relationship is likely where existing rather than new products/
services are supplied.                                                      RIVAL PERSPECTIVES ON THE STRATEGY PROCESS
                                                                            Paper                        Track G                              Room 9

e-Business Initiatives: Complements or Substitutes                          Neural Networks: A New Forecasting Tool in the
to Traditional Strategy?                                                    Decision Making Process
       Jesus Ponce de Leon, Southern Illinois University/JPdeL &                    Nikolaos Theriou, Technological Educational Institution-Kavala
            Associates                                                      This paper tests the usefulness and ability of neural networks (NN) as
e-business is a driver of change making possible the creation of new        forecasting tools in the decision-making process of organizations. To
business models. It is argued that e-Biz initiatives can not be a substi-   this end we construct a neural network, based on data collected from a
tute for traditional strategy. For example, the business models of          Greek firm, for the years 1985-1996. The input and output variables or Dell do not radically depart from traditional strategy.       used in the constructed NN were taken from a new proposed "produc-
These models leverage strategy with the skillful selection of the e-Biz     tivity-profitability framework/model". This model has already been tested
design, by focusing on key business processes, and by targeting indus-      for its forecasting ability to predict with great accuracy the productiv-
try layers. They reach a low cost, a differentiation or a focus position    ity and profitability (i.e., the Shareholders Value-Added-SVA) changes
through pricing bundles, targets of ones, bundled offerings, speed of       generated by the strategies adopted by this specific firm. The fore-
change, and targeting profit pools.                                         casted output results of the constructed neural network are then com-
                                                                            pared with the actual results of the firm. There is almost a match of
                                                                            these two. Consequently, we conclude that we have in our hands a
 PAPER/PANEL SESSION             11:00 - 12:15                              quite strong tool for predicting the outcome of the future business
AND PUBLIC STRATEGIES TOWARDS NEW CULTURE                                   Intuition in Strategy
AND ECONOMY RELATIONSHIPS                                                          Gisle Henden, Norwegian School of Management
Panel                        Track J                             Room 7     We may have reached the limits of incrementalism in strategy. That is,
       Thomas Krens, Solomon R Guggenheim Museum                            many companies have already done much of the hard work of catching
       Sabin Azua, KPMG Peat Marwick                                        up on quality, cost, speed, and flexibility. Though, irrespective of how
       Pedro Nueno, IESE/University of Navarra                              efficient the body, or the organization appears to be, it still needs a
       Jon Azua, Arthur Andersen                                            brain. We thus need to explore and cultivate the potential of those
The Bilbao Guggenheim Museum is one o the most successful stories           activities, that are time-bound to a lesser extent. The mind is the single
marketed all around the culture and economy arena. Questions posed          most important asset in this respect. It is argued that the true nature
in order to know "What made the difference...?" when we see hundreds        of strategic thinking is, on balance, more intuitive than rational. What
of revitalization city models,when museums and culture institutions         then, is the nature of intuition, and how can we apply it in strategy
lead successful programs worldwide, when the business & public coop-        and decision making? The aim of this presentation is to answer those
eration is upgrading,why and what makes this possible? The panel pro-       questions.
vides the description of the convergence of four different strategies
working together: a) the Solomon R. Guggenheim Foundation strategy
                                                                            Reproducing Strategy Processes: A Social Interaction
to become the leader in New York succeeding abroad; b) the "Country's
vision and strategy of the Basque Institutions in order to modernize        Perspective
and internationalize their economy; c) the revitalization strategy of a            John Aadne, Independent Consultant
city; Bilbao, and d) the concrete strategy of the Bilbao´s Museum itself.   In this paper, strategy process conduct and performance has been linked
The panel will provide the overall vision,the formulation of the differ-    to social interaction in top management groups and how this interac-
ent strategies,the impact measures,the dynamic strategical process in-      tion influences on the production, reproduction, and modification of
volved as well as the academical consistence of all the "Puzzle pieces"     strategy process conduct over time. It is argued that strategy conduct
discovered along the process.                                               in an organization over time contributes to establishing a set of rules
                                                                            and routines for strategy process conduct. These institutionalized rules
                                                                            are applied as guidelines and classifications when the managers are
                                                                            interpreting and discussing issues. Following Giddens (1984), it is ar-

     Wednesday                                       11:00 - 12:15
     gued that managers produce, reproduce, and modify institutionalized         Variance Suppression
     strategy process conduct through a process of structuring. Based on                Richard Bettis, University of North Carolina-Chapel Hill
     empirical research, this paper discusses several types of behavior in              Sze Sze Wong, Duke University
     management groups driving the processes of reproduction and modifi-                Jennifer Oetzel, University of North Carolina-Chapel Hill
                                                                                 Organizations tend to seek uniformity and suppress variance. The pur-
                                                                                 pose of this proposed paper is to study the implications for organiza-
     Configuration of the Future: Strategizing Routines                          tions of variance suppressing mechanisms in a turbulent environment.
     at HSBC, UK                                                                 In a relatively stable environment substantial variance suppression may
                                                                                 be helpful as uniformity and standard procedures will speed decision
            Jonathan Menuhin, University of Warwick
                                                                                 making. However, in a turbulent environment, unusual or even deviant
            John McGee, University of Warwick
                                                                                 organizational strategies, systems, processes, cultures, and/or decisions
            Evelyn Fenton, University of Warwick
                                                                                 may be key to success.
     This paper aims to explore the connection between a firm's manage-
     ment and administrative processes and its strategy development Tak-
     ing evolutionary perspective, we examine the development of six stra-       Strategy in Turbulent Fields
     tegic initiatives within HSBC Bank (U.K.) and identify some of the rou-            Martin Emanuelsson, Lund University
     tines involved. These routines are then discussed with their contribu-             Nadja Sörgärde, Lund University
     tion to three strategic processes: strategy assimilation, power and ne-     In this paper new venues for strategy research are discussed. With the
     gotiation processes, and the knowledge creation. In developing the con-     notion that implementing and executing strategic plans is becoming a
     cept of "Strategizing Routines" the paper seeks to enhance the theory       more and more important part of strategic research, especially in tur-
     of "strategy in practice", the discussion of how strategy is conducted      bulent and fast-moving industries, a rapprochement of the theoretical
     and shaped. From a practical perspective, understanding a firm's strat-     fields of organization theory and strategy is suggested. The fundamen-
     egy-making processes can improve the managerial ability to modify           tal assumption for this line of reasoning is that the external context of
     them. This could generate better strategic actions: focused, accepted,      many organizations are too dynamic for separating issues such as set-
     and utilising the available knowledge base.                                 ting out the direction (a traditional strategic issue), and aligning the
                                                                                 organization with the strategic direction (basically an organizational
     ENVIRONMENTAL TURBULENCE: IS IT REAL AND                                    task).

     Paper                        General                            Room 10
                                                                                 LEADING LEARNING
                                                                                 Paper                        Track F                            Room 11
     Changes in Organization Environments: Tests for
                                                                                 The Voices of "Waigaya" in Organizational
     Escalating Turbulence
            Gary Castrogiovanni, University of Tulsa                             Knowledge Creation: "Discovery Beyond
     Many believe that environments evolve toward ever-greater turbulence,       Expectation" through Enigmatic Leadership
     despite limited empirical evidence. Proponents often use the term "tur-            Philippe Byosiere, JAIST
     bulence" loosely and view escalating turbulence as a universal phenom-             Emiko Hino, JAIST
     enon. Most researchers, however, recognize that tendencies of some                 Atsushi Endo, JAIST
     industries may not generalize to others, and tendencies in one environ-            Takeshi Kashimura, JAIST
     mental facet will not necessarily parallel those of another. In this               Kaoru Mano, JAIST
     study, turbulence was defined as a composite of three environmental         The paper defines and describes the process of “waigaya”, an indig-
     dimensions: munificence, dynamism, and complexity. Changes in those         enous Japanese term that has no entry in any dictionary but that is
     dimensions over a 26-year interval were assessed for manufacturers in       well understood and practiced by many Japanese, not only in organiza-
     45 industries. Munificence changed in the predicted direction, but          tions but also in larger social contexts. “Waigaya” refers to the sound
     dynamism changed in the direction opposite of that predicted, and           that stems from people engaging in conversations. “Waigaya” can be
     complexity did not change. These results suggest that the turbulence        positioned on a continuum of methods of dialogue between brainstorming
     perspective should be modified, and one such modified view is pro-          and problem-solving. “Waigaya” originates with externalizing the
     posed.                                                                      thoughts of each individual, sharing and creating knowledge collec-
                                                                                 tively, and resulting to the discovery beyond expectation. Interesting
                                                                                 elements of the process of “waigaya” are enigmatic leadership, equal-
     Strategic Forms: Authority and Performance in                               ity, mutual respect, and creativity. The common denominator of these
     Accounts of Organic Organizations                                           elements is trust. Several key elements of “waigaya” are transferable to
            Robert Gephart, University of Alberta                                European and/or North American organizations.
            David Boje, New Mexico State University
            Grace Rosile, New Mexico State University
            Janice Thomas, University of Calgary                                 Sources of Research Competencies: The Role of the
     Successful performance in rapidly changing environments requires new        Top Management Team in Innovation
     organizational designs. This paper investigates forms of authority in             Laura Cardinal, University of North Carolina-Chapel Hill
     new “organic” organizational designs. The goals of the paper are to               Donald Hatfield, Virginia Polytechnic Institute & State
     identify the bases of authority in organic organizations, to describe the              University
     organizational arrangements which accompany authority, and to un-                 Helaine Korn, City University-New York
     derstand how authority influences organizational performance. The paper     Financial success in the pharmaceutical industry, a science-driven in-
     analyzes descriptions of organic organizations in a sample of texts in      dustry, depends on innovative productivity. Thus, we bridge two previ-
     the academic management literature including journal articles and text-     ously disparate streams of literature--top management teams and the
     books. Computer supported interpretive textual analysis is used to          resource-based view of the firm--in an intervening model of firms' in-
     summarize, represent, and interpret the data. The findings indicate         novation activity in which demographic properties of TMT members
     organic organizations use object-oriented authority systems. They are       influence firms' innovation activities and, subsequently, innovation
     technical forms of bureaucracy distinct from legal forms of bureaucracy.    productivity. We explore why some firms focus on in-house R&D efforts
     Organic organizations use content oriented management to achieve            while others rely on strategic alliances and why some firms introduce
     superior performance.                                                       new products frequently while others trust in the same products for
                                                                                 long periods. Our empirical findings are mixed, indicating that some

                                                                               11:00 - 12:15                                Wednesday
firms rely more on internal than external R&D efforts due to TMT char-       its ownership type. In exemplary firms, the bases of competitive advan-
acteristics, but that the timing of new product release is not related to    tage display a coherence to these distinctive governance conditions in
TMT characteristics.                                                         ways leave owners' negative attributes as inescapable, but irrelevant to
                                                                             the firm's distinctive competitive advantage. The study is part of a large-
                                                                             scale, longitudinal, multi-disciplinary inquiry into the evolution of com-
Leveraging Knowledge through Leadership of                                   petitive capability in selected New Zealand firms.
Organizational Learning
        Mary Crossan, University of Western Ontario
        Angela Balan, Karioss Inc                                            WHO’S IN CHARGE HERE? ISSUES FOR
This paper intends to bridge theory and practice by reporting on em-         ENTREPRENEURIAL LEADERSHIP TEAMS
pirical research linking leadership and organizational learning, and then    Paper                         Track I                             Room 13
extending that research to describe an intervention in one organiza-         Entrepreneurial Succession from a Resource and
tion. The paper begins with a brief conceptual overview of the frame-
work employed. An in-depth case study approach is used to describe           Knowledge-Based View of the Family Firm
the key milestones in the intervention. Finally, the paper presents                 Katiuska Cabrera-Suárez, University of Las Palmas-Gran Canaria
four key findings: 1) the critical and fundamental role of leadership in            Petra de Saá-Pérez, University of Las Palmas-Gran Canaria
building and sustaining an organizational learning system; 2) the need              Desiderio Garcia Almeida, University of Las Palmas-Gran Canaria
for an expanded view of the role of leadership in organizations; 3) the      Once the entrepreneur has consolidated his/her family business, one
need to connect leadership development to the "real work" conducted          of the major challenges to be faced is the succession process. The suc-
in companies; and 4) the need to connect leadership development to           cessor has to acquire the entrepreneur’s key knowledge and skills ad-
the larger human resource management systems of the organization.            equately, in order to maintain and improve the organizational perfor-
                                                                             mance. Exploring this critical process and analyzing how it can be man-
                                                                             aged effectively, two theoretical approaches from the strategic man-
EQUITY OWNERSHIP AND AGENCY ISSUES                                           agement field are used: on the one hand, the resource-based theory of
Paper                        Track C                             Room 12     the firm, and on the other, the emergent knowledge-based view. This
Equity Ownership, Inside Directors, and Firms'                               conceptual framework reveals as a powerful tool to understand the na-
Propensity to Acquire                                                        ture and transfer of knowledge within the family business, which be-
       Daniel Simon, Texas A&M University                                    comes the basis for developing competitive advantage over non-family
A substantial body of research finds zero or negative returns to acquir-
ing firms, yet acquisitions continue at record levels. Why? This paper
examines agency explanations for the persistence of acquisitions, and        Teamwork at the Top: Assessing and Improving
empirically tests whether agency problems help to explain firms' pro-        Team Skills Among Senior Managers
pensity to acquire. In doing so, this paper provides a test of competing            Brian Boyd, Arizona State University
theories: agency and stewardship theory. Specifically, I examine whether            Melinda Muth, University of New South Wales
managers' level of stock ownership and participation on the board of                Steve Gove, Arizona State University
directors affects the firm's propensity to acquire other firms. Results             Mark Clark, Arizona State University
tend to support the agency theory perspective. As the CEO's ownership
                                                                             Management teams play a significant role in organizational activities,
percentage increases, the firm's propensity to acquire declines. As the
                                                                             ranging from new product development to corporate governance. Much
number of managers on the board of directors increases, the firm's pro-
                                                                             of the research on upper echelons has focused on the similarity of de-
pensity to acquire increases.
                                                                             mographic variables as a determinant of firm outcomes, and has relied
                                                                             primarily on archival data. Drawing from the work teams literature, we
The Politics of Repricing Executive Options                                  examine the effect of executive development programs on team knowl-
        Timothy Pollock, University of Wisconsin-Madison                     edge, skills, and abilities (KSAs), and subsequent implications for team
        Harald Fischer, University of Wisconsin-Madison                      effectiveness. Hypotheses are tested using a sample of 250 Australian
        James Wade, University of Wisconsin-Madison                          senior executives.
Research on executive compensation continues to generate significant
debate among both academics and practitioners. Prominent issues in-          Top Management Teams of High Growth
clude the separation of ownership and control in firms and the extent
to which executive compensation should be tied to firm performance.
                                                                             Entrepreneurial Firms: An Examination
                                                                                    Elisabeth Teal, Baylor University
Because agency arguments have become the dominant logic in execu-
                                                                                    Nancy Upton, Baylor University
tive compensation, long-term incentive plans such as stock option plans
                                                                                    Joe Felan, Baylor University
have proliferated in recent years. This study explores one specific
anomaly of incentive compensation - the repricing of stock options -         The overall objective of this study was to provide further empirical
which tends to represent a breakdown in the agency relationship be-          examination of the top management teams of high growth entrepre-
tween managers and shareholders and often generates negative public-         neurial firms. Through a sample made up of 208 firms that were in-
ity for the firm. We find that a combination of factors relating to power    cluded in the Ernst & Young Entrepreneur of the Year Award program,
and impression management may help to explain this phenomena be-             five measures of the top management team were examined. These mea-
yond typical agency arguments employed in previous studies.                  sures included top management team size, management structure, prior
                                                                             experience of the team working together, team decision making prac-
                                                                             tices, and functional areas of responsibility of the top management
How Owners Influence the Evolution of Competitive                            team. The data were examined using both parametric and nonparamet-
Capability                                                                   ric statistical tools.
        Colin Campbell-Hunt, Victoria University-Wellington
Using case-history and historiographic methods, theory is developed
on the differential influence of four ownership types on the evolution
of competitive capability. It is theorised that public stock corporations,
owner-operated firms, co-operatives, and subsidiary companies each
provide distinctive impetus and constraints to the development of spe-
cific sources of sustainable advantage. Overall, the paper proposes that
the path of development of a firm's capabilities is not independent of

     Wednesday                                        11:00 - 12:15
     Top Management Team Characteristics and                                      Determinants of Strategic Change in a Crisis
     Innovative Resource Combinations Among New                                   Situation: Responses of Korean Companies to the
     Ventures                                                                     1997 Economic Disaster
            Shaker Zahra, Georgia State University/Jönköping University                  Eonsoo Kim, Korea University
            Johan Wiklund, Jönköping University/Queensland University of                 John McIntosh, Bentley College
                 Technology                                                              Dong Chul Shim, Korea Information Society Development
     Innovative resource combinations (RC) have been one of the factors                      Institute
     that have resulted in new ventures ascending to their industries' lead-      Previous strategic change studies, assuming that change occurs when
     ership. One source of differences in RC is the characteristics of new        the strength of change-inducing forces exceeds that of inertial
     firms' top management teams (TMT). Using data from 74 companies              forces favoring the status-quo, have yielded results that are at best
     that have been in existence for less than six years, we empirically ex-      equivocal and frequently contradictory. We believe this is attribut-
     amine the relationship between the five characteristics of these ven-        able to: 1) Failure to recognize that, depending on country context,
     tures' TMT and RC. TMT innovativeness, alertness, and growth orienta-        some variables work in different ways. 2) Unclear definitions of "envi-
     tion had a positive influence on new ventures' RC. Deftness was also         ronment" and inconsistent perspectives of variables such as perfor-
     positively and significantly associated with RC but TMT cognitive diver-     mance and slack resources. This study sought to address those weak-
     sity was not significant. Clearly, TMTs play a key role in making entre-     nesses by examining strategic change among Korean firms facing envi-
     preneurial activities happen within new ventures.                            ronmental upheaval wrought by the IMF.

     CHANGE                                                                       Paper                        Track I                            Room 15
     Paper                        Track D                             Room 14     Keys to Success in the Internet Economy
     Strategies of Polish Firms: Is Misfit a Fit?                                        William Huneke, UUNET Technologies
             Krzysztof Obloj, University of Warsaw                                The Internet has changed the terms of competition because it has dra-
             Marc Weinstein, University of Oregon                                 matically altered the transmission and availability of information. The
     Skillful adaptation to environmental challenges, opportunities, and          Internet has changed the cost of information, which in turn changes
     threats is a hallmark of successful companies. In contemporary Eastern       the structure of markets. Information remains a competitive weapon,
     Europe, such adaptation is particularly critical given the dramatic po-      but how it can gets analyzed and used determines its power as a weapon.
     litical, social, and economic changes associated with the transition from    The keys to success in the Internet economy revolve around achieving
     a command to free market economy. The turbulence accompanying                flexibility and timeliness in delivering services. Companies have to
     this transition, however, calls into question whether traditional no-        compete in Internet time. Companies have to be able to share data in
     tions of strategic fit adequately explain patterns of firm adaptation and    real-time, make deals in real-time, and rapidly develop products that
     performance in this region. To address this issue, we examine patterns       meet customer needs. This puts new demands on a company's informa-
     of strategic adaptation in 301 medium and large Polish firms. Our analysis   tion technology (IT) infrastructure. The right IT infrastructure can
     suggests that traditional notions of strategic fit do not adequately char-   provide the basis for impressive competitive success.
     acterize strategic adaptation. We do, however, find a strong relation-
     ship between the development of strategic competencies and the intro-        Collaborative Knowledge Creation in the Internet
     duction of management innovations likely associated with strong firm
                                                                                         Gwendolyn Lee, University of California-Berkeley
                                                                                         Robert Cole, University of California-Berkeley
     Entrepreneurial Bureaucracy                                                  Applying the method of inductive theory building, we develop a case
            Jonathan Day, McKinsey & Company                                      study of the Linux kernel development to build a model of open-source
            Paul Mang, McKinsey & Company                                         knowledge creation. The Linux model touches upon a broad set of is-
            John Roberts, Stanford University                                     sues about our connected society because the Linux project was among
            Ansgar Richter, McKinsey & Company                                    the first attempts to make a deliberate effort to use the globally con-
     We address the difficulty faced by many large corporations of motivat-       nected software developers as the main source of talent. As firms com-
     ing their employees to pursue simultaneously operating efficiency in         pete for the scarce resource of talent, the Linux model demonstrates a
     their core businesses and innovative ideas beyond this scope. The un-        successful example of knowledge creation by a group of talented volun-
     derlying difficulty is that the two types of activities require fundamen-    teers that are dispersed across national and organizational boundaries.
     tally different performance management systems. Strong incentives            We discuss the unique features of the Linux model of knowledge cre-
     pegged to well-measured operating targets motivate intense focus on          ation and analyze the conditions under which knowledge can be freely
     current operations, but this is likely to crowd out the pursuit of objec-    exchanged and combined.
     tives that are harder to measure, like innovative activities whose out-
     comes are uncertain. To allocate sufficient managerial attention to both
                                                                                  Road-Mapping and Contextual Learning: Dynamics
     'exploiting' and 'exploring' activities, organizations need to employ
     multiple organizational-design levers. We focus in particular on the         of Knowledge Landscapes
     crucial role played by middle management ('entrepreneurial bureau-                  Kristina Eneroth, Lund University
     cracy') in the balancing process: maintaining focus while encouraging               Allan Malm, Lund University
     autonomous strategy making at the bottom of the organization.                       Fredrik Häglund, Lund University
                                                                                  In this paper we introduce a framework for knowledge landscapes. This
                                                                                  includes discussing the concept of contextual learning. Contextual learn-
                                                                                  ing enables a more thorough understanding of the strategic dimensions
                                                                                  of learning than what is usually the case. Contextual learning hence
                                                                                  act as a metaphor for explaining how knowledge landscapes can be
                                                                                  stabilized. The paper then discusses four different strategies for suc-
                                                                                  cessfully being able to navigate in the knowledge landscape. These four
                                                                                  strategies are: 1) road-mapping, 2) path-finding, 3) co-evolution, and
                                                                                  4) competition. The strategies will be illustrated by empirical cases.

                                                                                 11:00 - 12:15                                Wednesday
INTERORGANIZATIONAL KNOWLEDGE DIFFUSION                                        Learning from Competition through Multi-Market
Paper                         Track F                              Room 16     Contact in R&D: Empirical Evidence from the
Learning Regions and Knowledge Clusters                                        Chemical Industry
       Angel Arbonies, Knowledge Management Society                                   Srikanth Paruchuri, Columbia University
Traditionally in policies concerned with development, physical infra-                 Atul Nerkar, Columbia University
structure has been the principal objective of economic promotion poli-         Research suggests learning occurs through past experience, through
cies. Management quality, business culture, and cooperation between            strategic alliances, through acquisitions, or through vicariously observing
firms, as well as between firms and public institutions, are, however,         competition. Learning vicariously has not been explored empirically in
aspects that are gathering weight in these policies. The importance of         the context of R&D. Research on multi-point contact competition sug-
relations and interrelations via appropriate interfaces is worthy of           gests that improved performance is a result of mutual forbearance or
steadily more attention on the part of analysts. The basic premises of         learning. In this paper we argue that a similar dynamic operates when
progress come to take into account not only the traditional macroeco-          firms compete in multiple resource or R&D markets. We examine two
nomic aspects, but also the microeconomic aspects most strongly re-            propositions in the context of R&D competition. One, we suggest that
lated with the intangibles and the environment. In this sense, the Knowl-      multi-area R&D competition is not a random occurrence and two, such
edge Cluster may be defined as the nervous system that promotes com-           competition leads to superior R&D performance due to vicarious learn-
petitiveness in a country or a region. If we use a metaphor, the skel-         ing on part of the firms. We offer empirical evidence for these proposi-
eton of an economic system is its physical infrastructure, while its muscles   tions by examining R&D competition in the chemical industry and its
are the firms. The nervous and neuronal system consists in whatever            impact on performance.
relationships are established between economics agents.
                                                                               MULTI-PERSPECTIVE INTERFACE: COORDINATION AND
Spatial Bounds of Innovation: Knowledge                                        CONTROL OF BUSINESS ORGANIZATION
Production and Dissemination in the Biotechnology                              Paper                        General                              Room 17
Industry                                                                       A Formalization Proposal of the Strategy-Structure-
       Stephen Tallman, University of Utah
       Anupama Phene, University of Utah
                                                                               Performance Relationship
                                                                                      José Ignacio Galán Zazo, University of Salamanca
The role of regional clusters of firms in industry competition is ad-
                                                                               This paper deals with the relationship between strategy-structure-per-
dressed by economic geographers, business strategists, and network
                                                                               formance based on the transactional costs, economics, and institutional
theorists. A recent model proposes that differential flows of knowledge
                                                                               theory. An important aspect of the relationship is to be found in the
define the role of clusters in determining competitive advantage in an
                                                                               organizational costs of the implementation of the strategy associated
industry. This paper uses geographically defined clusters in the bio-
                                                                               with the organizational structure. This paper shows that these manage-
technology industry to examine knowledge flows as represented by patent
                                                                               ment problems can be stated as being those of coordination and moti-
citation patterns. It appears that citations within regions are tied to
                                                                               vation which incur the highest transactional costs (organizational costs).
narrow product classes, are less likely to be of older, widely cited pat-
                                                                               Henceforth, possible dynamic effects are created by a long-term rela-
ents, and are more likely to be of less explicit patents as compared to
citations across regions. These results suggest that information trans-
parency and firm absorptive capacities within regions are greater than
across regions, supporting the construct of cluster level architectural        Trust and Predictability: Different Strategies for
knowledge.                                                                     Learning and Change
                                                                                      Lars Huemer, Norwegian School of Management
Assessing the Impact of Organizational Practices on                            The mainstream view of trust presents a concept that is heavily depen-
the Relative Productivity of University Technology                             dent upon predictability. Trust exists in accordance with established
                                                                               patterns of behavior where it primarily reduces the risks and lowers the
Transfer Offices: An Exploratory Study
                                                                               costs associated with maintaining relationships. The twin of trust is
       Donald Siegel, University of Nottingham
                                                                               risk. The complementary view here proposed emphasizes that the twin
       Albert Link, University of North Carolina-Greensboro
                                                                               of trusting is freedom. The freedom of action given to another may lead
       David Waldman, Arizona State University-West
                                                                               to deviations from what is regarded as "business as usual". It is pro-
Despite the potential importance of university technology transfer of-         posed that we need to move away from a framework built on "trust in
fices (TTOs) as a mechanism for generating technological spillovers and        predictability", to one of "trust in trust". The concept thereby takes on
revenue to the university, there is little systematic evidence on their        an important role for learning and strategic renewal.
performance. The first stage of our analysis is an assessment of the
relative "productivity" of 113 TTOs. We contend that relative produc-
tivity may depend on organizational practices in university manage-            Optimizing Control: A Simulation Model of Complex
ment of intellectual property. Unfortunately, there are no existing            Control Systems
data on such practices, so we rely on inductive, qualitative methods to               Chris Long, Duke University
identify them. Based on 55 interviews of managers/entrepreneurs, sci-          This paper investigates how managers develop and implement complex
entists, and administrators at five universities, we conclude that the         control systems. As organizations adapt to the pressures of a competi-
most critical organizational factors are faculty reward systems, TTO staff-    tive global marketplace, managers are replacing their rudimentary com-
ing and compensation practices, and actions taken by administrators to         mand-and-control techniques with complex control and coordination
extirpate informational and cultural barriers between universities and         strategies. In an effort to better understand these increasingly dy-
firms.                                                                         namic organizational forms, I use a simulation-based model to test hy-
                                                                               potheses related to organizational control. Specifically, I evaluate sev-
                                                                               eral models which integrate and significantly extend current agency-
                                                                               and-transaction-based conceptualizations of control. Results of this
                                                                               study provide support for the newly emerging “broader” perspective on
                                                                               organizational control research. In addition, I use the results of this
                                                                               study to outline how managers can improve organizational performance
                                                                               by simultaneously attending to diverse elements of their control sys-

     Wednesday                                      11:00 - 12:15

     Paper                       General                            Room 18
     Core Competencies and Problem Solving Capabilities
     in a US and a Japanese Firm
             Quintus Jett, Rice University
             Adria Anuzis Brown, Stanford University
     We examine the work practices of product development groups in both
     a U.S. and a Japanese firm in order to understand how different ap-
     proaches to problem solving relate to the building of unique technical
     competencies in organizations. The comparison of four projects - a
     hardware project and software project within each firm - shows that
     problem solving was contingent neither on product type nor on na-
     tional setting. Instead problem solving was contingent on the accessi-
     bility, familiarity, and shared language among team members. We dis-
     cuss these findings as a field-based interpretation of core competen-
     cies, using case data to illustrate how problem solving capabilities are
     unique and difficult to replicate by firms and how outsourcing may
     impede collective problem solving and the development of firm-level

     Corporate Strategies in "Infocom"
            Joan Ricart, IESE/University of Navarra
            Jordi Gual, IESE/University of Navarra
     The "Inform" industry is facing a context of high uncertainty (techno-
     logical, regulatory, and demand uncertainty); the industry value-chain
     is being de-constructed, allowing for new entry, and new business mod-
     els. Market valuation has benefited the new entrants, but some of these
     are gradually integrating back into other stages of the value chain. In
     the "Infocom" world, corporate strategy is a fundamental step in stra-
     tegic thinking. The corporation creates value through synergies, but
     also by acquiring real options, "patching", and playing into the stock
     market. We study the "Infocom" industry in 10 different countries:
     U.S., Japan, U.K., Germany, France, Italy, Spain, Sweden, Chile, and
     New Zealand. We use this database to understand the basic building
     blocks of corporate strategy in turbulent environments.

     A Problem-Framing Approach for Continual
            Patricia Clifford, University of Connecticut
            Renee Dye, McKinsey & Company
     This paper describes a unique problem-framing approach designed to
     accelerate the process of strategic option generation at companies. By
     explicitly setting out to "frame" their industry or product/market situ-
     ation in multiple, divergent ways, we have been able to help manager
     more quickly, uncover more, and novel more novel strategic solutions.
     Our approach brings a rich database of frames to superimpose upon a
     strategy problem. This problem-framing tool is coupled with specially
     designed workshop processes, which enhance group dynamics and group
     creativity. We will describe the theoretical underpinnings of our ap-
     proach and present its basic components, as well as, a few problem-
     framing questions we explore in detail. We will describe the process by
     which our idea generation approach can be used to best effect and
     present selected client applications.

     Measuring the Performance of the HR Function: The
     5C Model
            Monica Belcourt, York University
     The contribution of the Human Resource Management (HRM) function
     to the achievement of organizational goals must be assessed. This pa-
     per delineates an approach to the evaluation of the value of HR func-
     tion, using both hard and soft measures that capture the complexity
     and diffusion of the HRM role. The 5C model measures HRM impact in
     these areas: Compliance, Client Satisfaction, Cost Control, Culture Man-
     agement, and Contribution. The advantages of measuring the HR de-
     partment, and the reasons why HR managers resist being measured are
     discussed. Examples of tools which can be used to measure the HR
     function will be included in the presentation.

A                              Bromiley, Philip 11           Deutsch, Yuval 25
                               Brown, Adria Anuzis 44        Devinney, Timothy 21
Aadne, John 39                 Büchel, Bettina 7             Dew, Nicholas 28
Ahuja, Gautam 4, 18            Buchholz, Wolfgang 13         Dickson, Pat 30
Ainamo, Antti 2                Buensuceso, Belen 11          Ding, Hung-Bin 21
Alvarez, Sharon 36             Busenitz, Lowell 29           Djelic, Marie-Laure 2
Amit, Raffi 31                 Byosiere, Philippe 40         Douglas, Frank 19
Anand, Jaideep 25                                            Doz, Yves 34
Andersen, Torben 20            C                             Dragonetti, Nicola 4
Andreu, Rafael 1                                             Dröscher, Michael 22
Andriani, Pierpaolo 3          Cabrera-Suárez, Katiuska 41
                               Calabrese, Tony 17            D’Souza, Beulah 7
Arbonies, Angel 43                                           Dubini, Paola 2, 37
Arend, Richard 17              Campbell-Hunt, Colin 41
                               Capaldo, Antonio 8            Duhaime, Irene 13
Artz, Kendall 12                                             Durand, Rodolphe 15, 27
Assudani, Rashmi 1             Capron, Laurence 24
                               Cardinal, Laura 12, 40        Durisin, Boris 29
Aufreiter, Nora 23                                           Dussauge, Pierre 20
Autio, Erkko 16, 21            Cardona, Pablo 7
                               Carrera, Alejandro 6          Duysters, Geert 21
Azua, Jon 39                                                 Dye, Renee 19, 44
Azua, Sabin 39                 Carter, Suzanne 34
                               Cassiman, Bruno 10            Dyer, Jeffrey 28
B                              Castañer, Xavier 21           E
                               Castrejón, Mario 26
Baaijens, J M J 21             Castrogiovanni, Gary 40       Eisenstat, Russell 2
Bach, Norbert 13               Catalanello, Ralph 35         Eisner, Alan 16
Baden-Fuller, Charles 4, 27    Chakravarthy, Bala 2, 33      El-Hakim, Shermeen 23
Bagchi, Sugato 22, 36          Charnes, John 19              Ellis, Kimberly 23
Bager-Sjören, Lars 10          Chen, Tzung-Wen 10            Emanuelsson, Martin 40
Baik, Yoon-Suk 29              Chen, Wei-Ru 19               Endo, Atsushi 40
Bakhru, A 39                   Chiesa, Vittorio 4            Eneroth, Kristina 42
Balan, Angela 41               Choi, David 7                 Erat, Pablo 12
Balogun, Julia 33              Choi, Young-Rok 15            Eriksen, Bo 4
Bansal, Pratima 21             Christmann, Petra 18          Eschen, Erik 6
Bar-Am, Eran 1                 Clark, Kevin 17, 29           Espina, Maritza 34
Barden, Jeffrey 30             Clark, Mark 41                Ethiraj, Sendil 31
Barney, Jay 9, 28              Clifford, Patricia 44
Barr, Pamela 30                Coff, Russell 1               F
Barthelemy, Jérôme 27, 33      Cohen, Boyd 38
Battista Dagnino, Giovanni 4                                 Fang, Christina 6
                               Cole, Robert 42               Felan, Joe 41
Baum, Joel A C 17              Collins, Chris 17, 29
Beatty, Katherine 8                                          Fenton, Evelyn 40
                               Commandeur, Harry 37          Ferrier, Walter 9, 26
Beekman, Amy 14                Cool, Karel 4
Beer, Michael 2                                              Fiegenbaum, Avi 1
                               Cooper, Arnold 29             Fiet, Jim 29
Belanger, Karen 20             Croson, David 6
Belcourt, Monica 44                                          Fischer, Harald 37, 41
                               Crossan, Mary 41              Fizel, John 8
Benfratello, Luigi 4
Bengtsson, Lars 38             D                             Fladmoe-Lindquist, Karin 36
Bettis, Richard 40                                           Fleck, Denise 18
Billou, Niels 13               da Silva, Pamela Ann 11       Fleming, Lee 11
Boccardelli, Paolo 29          Dacin, M Tina 5, 18           Flier, Bert 4
Bogner, William 21             Dalsace, Frédéric 4           Flores, Luis 35
Boisot, Max 27                 Davis, James 34               Floyd, Steven 14
Boivie, Steve 19               Day, Jonathan 42              Folta, Timothy 29
Boje, David 40                 de Koning, Jan 7              Ford, David 33
Bolden-Walker, Terry 31        de Saá-Pérez, Petra 41        Foss, Lene 37
Bonardi, Jean-Philippe 13      de Wit, Bob 13                Fossi, Steve 2
Bonn, Ingrid 15                Deeds, David 4                Fowler, Sally 17
Boyd, Brian 41                 Deiss, Martin Josef 2, 26     Fracchia, Eduardo 6
Bresser, Rudi K F 6            Dess, Gregory 14              Friga, Paul 24

     Frost, Tony 25                 Herrmann, Andreas 11         Koufopoulos, Dimitrios 35
                                    Heugens, Pursey P M A R 27   Kowalczyk, Stanley 8
     G                              Hillman, Amy 14              Kownatzki, Maximiliam 26
     Gabbay, Shaul 1                Hino, Emiko 40               Krens, Thomas 39
     Galán Zazo, José Ignacio 43    Hitt, Michael 21, 34         Kriger, Mark 35
     Gallagher, James 2             Hoffmann, Werner 3           Krüger, Wilfried 13
     Ganev, Tsviatko 2              Hong, Jin Hwan 22            Kuan, Jennifer 18
     Garbi, Esmeralda 19            Hope Hailey, Veronica 33     Kuemmerle, Walter 24
     Garcia Almeida, Desiderio 41   Horne, David 22              Kvålshaugen, Ragnhild 30
     Garcia Pont, Carlos 7          Hoskisson, Robert 34
                                    Hough, Jill 3, 17            L
     Garrette, Bernard 20
     Garven, Garnet 28              Houghton, Susan 30           Laamanen, Tomi 16
     Gavazzi, Riccardo 2            Huber, Frank 11              Lamont, Bruce 23
     Gedajlovic, Eric 4             Huemer, Lars 43              Lampel, Joseph 11
     Gellatly, Guy 10               Huerta, Emilio 33            Lane, Peter 14, 23
     George, Daniel 19              Hughes, Richard 8            Lawless, Michael 13
     Gephart, Robert 40             Huneke, William 42           Lawyer, Teri 23
     Gerhard, Thorsten 12           I                            Lechner, Christoph 2
     Gioni, Luigi 37                                             Lee, Dong-Hyun 9
     Gnyawali, Devi 18              Ireland, R Duane 2, 14       Lee, Gwendolyn 42
     Goel, Sanjay 25                Iversen, Audun 37            Lee, Hun 9, 26
     Golden, Peggy 19                                            Lee, Peggy 1
     Gomez, Pierre-Yves 15          J                            Lee, Yun-Cheol 9
     González-Moreno, Angela 37     Jacobides, Michael 34        Leenders, Roger Th A J 1
     Gooderham, Paul 3, 8           Jain, Vinod 31               Lefort, Fernando 28
     Goodman, Richard 5             James, Constance 17          Leiblein, Michael 33
     Goodstein, Jerry 25            Janney, Jay 14               Leker, Jens 22
     Gove, Steve 41                 Jarzabkowski, Paula 31       Leland, Jonathan 36
     Grand, Simon 15                Jenkins, Mark 28             Leleux, Benoit 23
     Grant, Robert 39               Jett, Quintus 44             Lévesque, Moren 15
     Griffin, Jennifer 13           Johnson, Richard 34          Levinthal, Daniel 6
     Grosse, Robert 18              Joiner, Therese 23           Lewin, Arie 5, 13
     Grossman, Wayne 34             Jönsson, Paul 38             Lieberman, Marvin 38
     Groysberg, Boris 10, 22                                     Lii, Peirchyi 22
     Gual, Jordi 44                 K                            Lingblad, Mats 2
     Guernsey, Brock 19                                          Link, Albert 43
     Gulati, Ranjay 28              Kaghan, William 36           Lofstrom, Shawn 21
     Guler, Isin 31                 Kao, Charng, 19              Long, Chris 43
                                    Kaplan, Sarah 34             Lorange, Peter 2, 33
     H                              Kase, Kimio 26               Lord, Michael 17
                                    Kashimura, Takeshi 40        Løwendahl, Bente 3
     Häglund, Fredrik 42            Katila, Riitta 4
     Hall, Richard 3                                             Lubatkin, Michael 32
                                    Kaufman, Allen 16            Lunnan, Randi 20
     Hamel, Gary 7                  Kazanjian, Robert 27
     Hansen, Anne Marie Jess 24                                  Luoma, Patrice 25
                                    Keim, Gerry 14               Lyles, Marjorie 30
     Harrington, Robert 35          Keller, Philip 9
     Hart, Stuart 5                 Kemmerer, Benedict 37        M
     Hatfield, Donald 25, 40        Khanna, Tarun 9
     Haugland, Sven 20              Kim, Eonsoo 38, 42           Madhavan, Ravindranath 18
     Hawawini, Gabriel 27           Kim, Ji-Yub 37               Madsen, Tammy 17
     Hax, Arnoldo 36                Kim, Jisung 13               Magnusson, Mats 29
     Hebert, Louis 30               King, Adelaide 33            Maguire, Steve 1
     Henden, Gisle 39               Knudsen, Thorbjørn 4         Mahmood, Ishtiaq 7
     Henderson, Gary 30             Knutsson, Hans 38            Mahon, John 13, 23
     Henderson, James 23            Koljatic M, Matko 28         Makhija, Mona 9
     Henderson, Rebecca 34          Korn, Helaine 40             Makri, Marianna 23
     Heppard, Kurt 11               Kotha, Suresh 19, 38         Malm, Allan 38, 42

Mang, Paul 9, 42            Nicholls-Nixon, Charlene 13   Reed, Timothy 11
Mano, Kaoru 40              Nickerson, Jackson 5          Regnér, Patrick 3
Maritan, Catherine 12       Nijssen, Edwin 37             Reichwald, Ralf 22
Markman, Gideon 34          Nonaka, Ikujiro 6             Reinmoeller, Patrick 6
Marsh, Sarah 29             Nordhaug, Odd 3               Reuer, Jeffrey 14, 33
Matherne, Brett 13          Norman, Patricia 12           Ricart, Joan 44
Matsuo, Makoto 16           Nueno, Pedro 39               Richey, Brenda 19
Maula, Markku 32            Nunes, Paul 35                Richter, Ansgar 42
McCarthy, Daniel 6          Nylund, Annette M A 10        Rigsby, Jeffrey 5
McGee, John 40                                            Rindova, Violina 19
McGowan, Richard 23         O                             Ring, Peter 34
McGrath, Brian 10           Obloj, Krzysztof 42           Rivas, Ronald 16
McGrath, Rita 10, 27        Odenthal, Stefan 12           Rivkin, Jan 9
McIntosh, John 38, 42       Oetzel, Jennifer 40           Roberts, John 42
McNamara, Gerry 6           ogilvie, dt 3                 Roberts, Peter 5
McNulty, James 32           Olk, Paul 30, 34              Robinson, David 28
Meinhardt, Yves 16          O'Neill, Hugh 14              Robinson, Richard 14
Menuhin, Jonathan 40        Orton, James Douglas 34       Rocha, Hector 6
Merchant, Hemant 30         Oyon, Daniel 9                Roos, Johan 39
Methé, David 36                                           Rosile, Grace 40
Meyer, G Dale 38            P                             Ross, Thomas 25
Meyer, Joan 7                                             Rothaermel, Frank 4, 38
Meyer, Ron 13               Palmer, Ian 33                Rughase, Olaf 34
Michael, Steven 27          Parada, Pedro 26              Rüll, Hartwig 2
Midgley, David 21           Park, Kyung Min 30
Miles, Grant 7              Paruchuri, Srikanth 43        S
Miles, Raymond 7            Pascual, Jordi 26
                            Pawlish, Michael 8            Sáez-Martinez, Francisco 37
Miller, C Chet 2                                          Sagarra, Carmen 26, 33
Millet, Ido 8               Pearce II, John 27
                            Peng, Mike 14                 Sakakibara, Mariko 10
Millonig, Klemens 6                                       Sakson, Jane 36
Milstein, Mark 5            Perretti, Fabrizio 23
                            Peters, Frederick 7           Salinas, Rodolfo 33
Miner, Anne 37                                            Salomo, Sören 22
Mishina, Yuri 14            Peters, Lois 21
                            Peterson, Ronald 33           Samaras, Steven 8
Mitchell, William 20, 24                                  Sanchez, Ron 20
Moldoveanu, Mihnea 26, 35   Phene, Anupama 36, 43
                            Pigneur, Yves 9               Sanders, William Gerard 19
Monin, Philippe 15                                        Sapp, Stephen 30
Moran, J Christopher 9      Piller, Frank 22
                            Plenert, Gerhard 15           Sarasvathy, Saras 15, 28
Morecroft, John 11                                        Saul, Peter 26
Morris Lampert, Curba 18    Pollock, Timothy 14, 41
                            Ponce de Leon, Jesus 39       Sawhney, Mohanbir 28
Möslein, Kathrin 22                                       Saxena, Narsingh 35
Mothe, Caroline 1           Poppo, Laura 24
                            Porac, Joseph 14              Saxton, Todd 29
Mu, Shaohua 25                                            Schein, Norman 28
Muchow, Kai-Christian 33    Prandelli, Emanuela 1, 28
                            Pruett, Mark 12               Schnatterly, Karen 12
Müller-Stewens, Günter 2                                  Schulze, William 32
Munari, Federico 1          Puffer, Sheila 6
                                                          Schwarz, Mirela 35
Murray, Fiona 34                                          Schweizer, Lars 16
Murray, Gordon 32
                                                          Seale, Darryl 26
Muth, Melinda 41            Quelin, Bertrand 1, 33        Sebora, Terrence 8, 38
N                                                         Shamsie, Jamal 11, 25
                            R                             Shaw, David 13
Narayanan, Vadake 19, 37    Rajgopal, Shivaram 19, 38     Shepherd, Dean 15
Nattermann, Philipp 16      Ramaya, Krishnan 25           Sherwood, Arthur 29
Naumanen, Mika 20           Ranft, Annette 29             Shim, Dong Chul 42
Naumov, Alexander 6         Raub, Steffen 7               Shook, Christopher 31
Negro, Giacomo 23           Raynor, Michael 15            Sidhu, Jatinder 37
Nerkar, Atul 43             Reagans, Ray 5                Sieber, Sandra 1

     Siegel, Donald 43            Van der Stede, Wim A 9        Zahra, Shaker 14, 42
     Siggelkow, Nicolaj 6, 12     Van Oosterhout, Johannes 27   Zenger, Todd 24
     Silverman, Brian 5, 17       Vanhaverbeke, Wim 21          Zhou, Zheng 24
     Simon, Daniel 41             Vas, Alain 31                 Zollo, Maurizio 30
     Singh, Harbir 31             Venkatachalam, Mohan 38       Zott, Christoph 31
     Sitkin, Sim 30               Venkataraman, Sankaran 28     zu Knyphausen-Aufsess, Dodo 37
     Skarheim, Odd 35             Venkatraman, N 24
     Smaby, Tim 8                 Ventresca, Marc 36
     smith, faye 25               Verdin, Paul 27
     Smith, Ken 17, 29            Veugelers, Reinhilde 10
     Snow, Charles 7              Victor, Bart 39
     Sobrero, Maurizio 1, 12      Vilaseca, Aluaro 6
     Song, Wongyu 38              Villalonga, Belén 32
     Soo, Christine 21            Villasalero-Diaz, Manuel 37
     Sörgärde, Nadja 40           Volberda, Henk 4
     Stevens, Cynthia 17, 29      Von Krogh, Georg 12, 29
     Stevenson, Howard 26
     Stewart, Alice 30            W
     Subramanian, Venkat 27       Wade, James 41
     Sugiyama, Stephen 38         Waldman, David 43
     Sullivan, Robert 24          Walker, Gordon 17
     Sundali, James 26            Wallin, Johan 12
     Sundberdg, Mithra 10         Wang, Clement 11
     Szyliowicz, Dara 5           Wang, Heli 9, 14
     T                            Watson O’Donnell, Sharon 36
                                  Weaver, Mark 30
     Tallman, Stephen 43          Weigelt, Carmen 5
     Taylor, Marilyn 25           Weinstein, Marc 42
     Teal, Elisabeth 41           Weller, Barry 26
     Theriou, Nikolaos 39         White, Ian 23
     Theyel, Gregory 16           White, Margaret 17
     Thomas, Howard 12            Wiersema, Margarethe 22
     Thomas, Janice 40            Wiklund, Johan 42
     Thornhill, Stewart 10        Wilde II, Dean 36
     Toletti, Giovanni 4          Wilkinson, David 23
     Tontti, Vesa 21              Wiltbank, Robert 19
     Tornell, Pelle 39            Wong, Diana (MingJi) 20
     Toulan, Omar 12              Wong, Sze Sze 40
     Trailer, Jeff 8, 26          Wood, Craig 16
     Treat, John Eltring 9        Wood, Robert Chapman 24
     Trevino, Len 18              Woodbridge, Mark 22
     Tulskie, William 22, 36      Wu, Se-Hwa 10
     Turner, Karynne 9            Wulf, Julie 6

     U                            X
     Uhlenbruck, Nikolaus 21      Xun Wu, Brian 11
     Ulset, Svein 8
     Un, C Annique 3              Y
     Ungaro, Luca 2               Yeh, Tony 32
     Upton, Nancy 41              Yli-Renko, Helena 21
     V                            Yoshihara, Hideki 36
                                  Young, Charles 34
     Vaaler, Paul 6
     Valikangas, Liisa 7          Z
     Van Buren III, Harry 24      Zaby, Andreas 37
     van den Bosch, Frans A J 4