Journal of Strategy and Management

Thomas L. Powers; Rachel C. Wilson

2010 Journal of Strategy and Management

doi: 10.1108/17554251011019387

Purpose – The aim of this paper is to identify the benefits seen by management in high technology strategic alliances using a means‐end framework. Design/methodology/approach – Qualitative interviews with firm executives were conducted and a survey was then administered. Structural equation modeling was used to test hypotheses derived from the qualitative stage of the research. Findings – The results indicate that managers perceive that social, operational, and financial alliance attributes contribute to new product opportunities and increased profitability, which in turn enhances both shareholder value and the opportunity to create societal value. Originality/value – In addition to the specific findings related to strategic alliances, the study represents an initial use of a means‐end framework to gather both firm‐level qualitative and quantitative data from executives.

Vincenzo Farina

2010 Journal of Strategy and Management

doi: 10.1108/17554251011019396

Purpose – The purpose of this paper is to investigate how network position can influence performance of firms and how firm‐specific characteristics can mediate this relation by asking: “Does network position influence performance of its members?” and “How could specialization choices influence this network position‐performance relation?” Design/methodology/approach – These aspects are examined by studying network position and specialization of actors operating in the investment banking industry in the Euro area, using data on all 279 underwriting syndicates formed during the years 2003‐2005. Data were pooled across actors and across these three years and the resulting sample had a total of 534 observations. Findings – Results highlight that actors operating in the investment banking industry enhance performance by having a central position in their network and that specialization reduces the benefits of having a central position in the network. Practical implications – The findings suggest that managers need to assess a firm's ability to get knowledge and information from its external environment in order to make adjustments based on firm alliance portfolios. Originality/value – This paper uniquely contributes to the strategic management literature showing that the effect of a particular network position on performance depends on firm‐level characteristics.

Mehdi Farhadi; George Tovstiga

2010 Journal of Strategy and Management

doi: 10.1108/17554251011019404

Purpose – The purpose of this paper is to focus on the intellectual property (IP) aspects of mergers and acquisitions (M&A) transactions. Design/methodology/approach – A holistic approach is proposed that embraces IP as an integral part of the M&A process in the form of a roadmap for the strategic and purposeful management of IP assets in M&A deals. Findings – Addressing IP issues in transactions in isolation can lead to undesirable consequences (e.g. considerable costs for unplanned purchases of rights). IP due diligence and IP integration project processes can be automated using collaborative software solutions. Thereby, risk can be reduced through the creation of a high level of transparency and predefined responsibilities. Practical implications – Although the proposed IP management framework is based on intellectual property matters relevant to German jurisdiction, conclusions derived and the proposed roadmap are transferable to other jurisdictions and hence have a broader relevance. Evidence for this is provided by the successful application of the roadmap in the context of the multinational transaction stated above. Originality/value – This paper is based on the authors' collective experience, insight and reflected observation of M&A practice gained in advisory M&A roles in management consultancies over a period of more than a decade. The paper summarizes the authors' reflections and observations and brings these into the context of the current management literature. Moreover, this paper builds on earlier published research.

Peter Navarro; Philip Bromiley; Pedro Sottile

2010 Journal of Strategy and Management

doi: 10.1108/17554251011019413

Purpose – Business cycles strongly influence corporate sales and profits, yet strategy research largely ignores the possibility that corporate management practices related to the business cycle influence profitability. This paper aims to offer initial empirical support for the view that high peformance firms use a variety of business cycle management (BCM) practices that low performance firms do not. Design/methodology/approach – This exploratory study examines the association of firm performance with business cycle management behaviors identified in the prescriptive literature and further developed from a set of case analyses. The empirical analysis uses a matched sample of 35 pairs of high vs low performers from the S&P 500. Findings – Discriminant and conditional logit analyses provide preliminary evidence that business cycle‐sensitive behaviors such as countercyclical hiring and investment associate positively with firm performance. Research limitations/implications – Future research should use larger data sets and strictly archival data to overcome the limitations of the small sample size and data coding with some subjective elements. Practical implications – This research suggests a variety of business cycle related practices dealing with staffing, capital investment, acquisitions and divestitures, capital financing, credit policy, pricing, and advertising may improve firm performance. Originality/value – This is the first paper to offer evidence of the impact of business cycle related practices across a range of practices and industries.

Nicholas O'Regan; Abby Ghobadian

2010 Journal of Strategy and Management

doi: 10.1108/17554251011019422

Purpose – The purpose of this paper is to demonstrate how key strategic decisions are made in practice at successful FTSE 100 companies. Design/methodology/approach – The paper is based on a semi‐structured interview with the Chairman of Whitbread plc, Reed Elsevier plc, Mr Anthony Habgood. Mr Habgood has a track record in successfully achieving corporate strategic transformation. Findings – The paper sheds light on ingredients of successful strategy formulation and implementation, corporate strategic transformation, key elements of successful mergers and acquisitions and leadership as a vital ingredient in corporate performance. Research limitations/implications – The paper presents views of a successful and highly regarded Chairman of two FTSE 100 companies. Mr Habgood was also the Chief Executive of a third FTSE 100 company. It provides an insight on how strategy is made and executed. Originality/value – The paper bridges the gap between theory and practice. It provides a practical view and demonstrates how corporate leaders think about key strategic issues.