Journal of Strategy and Management

Duhamel, Francois; Niess, Alexander

2024 Journal of Strategy and Management

doi: 10.1108/jsma-03-2024-0055

This article addresses the role of communication processes in the formulation and implementation of strategic planning. It seeks to delineate a structured approach to define the contents of strategic conversations among internal stakeholders, to achieve actionable outcomes.Design/methodology/approachThis paper employs a theoretical approach, derived from Talcott Parsons’ AGIL framework, to conceptualize the contents of strategic conversations in a systematic way. Several examples are proposed to illustrate this framework.FindingsConversations among internal stakeholders in organizations, to be deemed strategic, should be orientated towards the formulation and implementation of priorities, procedures, prospective sensemaking and value patterns, as well as the media of interaction connecting them.Originality/valueThis paper offers original insights for practitioners and scholars aiming to comprehend strategic value in communication processes, thanks to Parson’s theoretical views, which have been seldom used in the strategic management literature. Our framework has the originality to offer a more comprehensive and systematic view of the topics making conversations strategic in organizations.

Knott, Paul

2024 Journal of Strategy and Management

doi: 10.1108/jsma-12-2023-0321

The purpose is to stimulate scholarship in the strategic management field that accounts for conditions implied by projected impacts of climate change.Design/methodology/approachFollowing conceptual logic, the article analyses how changes in the strategic environment brought about by climate change may challenge current strategic management theory. It develops avenues for theory development based on expanding the field’s scope and extending its limits of applicability.FindingsThe article highlights the extent to which the strategy field has evolved in a stable empirical context, despite its attention to dynamism and hence is less well aligned with potentially pervasive new pressures and impacts. It sets out a rationale for moving beyond symbolic environmentalism, possibilities to harness cognitive and behavioural insights, dilemmas in strategic innovation and the empirical potential of non-mainstream contexts.Practical implicationsFirms and organisations can expect widespread systemic effects from climate change that challenge established ways of operating. The article explores how strategic management could better support strategists in navigating these shifts such that firms can continue to thrive.Originality/valueThe article approaches the issue of climate change specifically from the perspective of strategic management of firms rather than as policy or social advocacy. It focuses on pressures and characteristics that distinguish climate change from other environmental and social impacts on firms.

Kotiloglu, Serhan; Blettner, Daniela; Lechler, Thomas

2024 Journal of Strategy and Management

doi: 10.1108/jsma-09-2023-0256

Performance feedback can be constructed using firms’ own (historical) performance, or the performance of peers (social). Those two types of performance feedback can be consistent (both positive, both negative) or inconsistent (one positive, the other negative). The research on the impact of consistent versus inconsistent feedback has been inconclusive, suggesting that inconsistent feedback might lead to more intense or less intense responses, or no response. In this paper, we theorize and test how firms respond to (in)consistent performance feedback.Design/methodology/approachWe test our hypotheses on a longitudinal sample of 2,819 private, high-growth firms in the US with 6,688 observations between the years 2007 and 2016. Our dataset comprises 25 different industries. We use topic modeling on textual data from firms’ web pages to capture portfolio expansion.FindingsWe find that consistent negative performance feedback strengthens portfolio expansion, but consistent positive feedback does not influence portfolio expansion. We also find that inconsistent performance feedback weakens portfolio expansion, but only with negative historical feedback and positive social feedback.Originality/valueWe contribute to the Behavioral Theory of the Firm by improving our understanding of mechanisms of feedback configurations. Specifically, we elaborate on the role of (in)consistent social feedback when firms respond to historical performance feedback. We also contribute to the theory by better understanding private firms’ responses to performance feedback.

Jaiswal, Mayank

2024 Journal of Strategy and Management

doi: 10.1108/jsma-03-2024-0063

The Internet has introduced new ways of conducting business. Online auction of nonperishable experience goods (NPEG) items, which are generally rare, expensive and durable and need to be experienced to be valued, is one area that is undergoing significant change. Online auction platforms are encouraging participants to interact publicly in a social media type comment format. This paper investigates how such public interactions impact the auction outcomes of NPEG.Design/methodology/approachAuction records of vintage automobiles sold between 2015 and 2023 on one of the biggest online auction platforms in the USA were collected. The dataset contains multiple variables per record such as winning bid price, number of comments by sellers and browsers and various details of the automobile, for example brand, vintage and mileage. Ordinary least squares was utilized to analyze close to 42,000 records in the dataset.FindingsThe paper found that comments in general are positively correlated with the winning bid; it also found that online buyers value browser comments higher than seller comments. Furthermore, the relationship between vintage and origin country and winning bid is enhanced by browser comments.Originality/valueThis research furthers theory on two fronts. Firstly, we analyze how auction outcomes are impacted when buyers, casual observers and sellers interact with each other publicly when the auction is ongoing. To the best of the author's knowledge, this is one of the first studies that delve into participant interactions in online ongoing auctions. Secondly, we investigate how potential buyers utilize participant interaction information to guide their decisions about the value of NPEG.

Heinzen, Cassia Goulart; Lavarda, Rosalia Aldraci Barbosa; Bellucci, Christiane

2024 Journal of Strategy and Management

doi: 10.1108/jsma-11-2023-0282

This study seeks to comprehend how sociomateriality influences the openness paradox within the context of open strategising.Design/methodology/approach We adopted a qualitative approach and developed a case study as a research method. The data included 10 semi-structured interviews, direct observation and documentary analysis, including virtual documents, collaborative platforms and communication systems.Findings We found that sociomateriality influences the transition between openness and closure in open strategy (OS) dimensions, namely inclusion, participation and transparency, once organisational practitioners actively build on social relationships and engage with material elements within this paradoxical context.Research limitations/implications The primary limitation was the challenge of managing extensive data, especially tracking all meetings and interactions. Nonetheless, we aimed to provide a comprehensive view and meaningful insights from the data. Future research could employ mixed methods to achieve a more holistic understanding of the phenomenon.Practical implications By understanding the role of formalisation and legitimation played by sociomateriality during open strategising, practitioners can navigate the complexities of balancing openness and closure, fostering innovation and engagement while ensuring the legitimacy of strategising. Recognising the coexistence of exclusions in social practices enables society to comprehend this paradox and highlight the need to address it, fostering an inclusive environment and promoting balanced openness in various social contexts.Originality/value Our study contributes to the OS literature by highlighting the role of sociomateriality in shaping the openness and closure interplay. Additionally, we emphasise the importance of formalisation and legitimation practices involving materiality in the balance between openness and closure in a context where openness is deemed essential for strategic success.

Li, Jianan; Park, Haemin Dennis; Kwon, Jung H.

2024 Journal of Strategy and Management

doi: 10.1108/jsma-03-2024-0045

Drawing on the literature on technological acquisition and the knowledge-based view , this study examines how technological overlap between acquiring and target firms influences acquisition premiums. We further explore how the resulting synergies are contingent on the dynamic characteristics of the target firm, specifically its technology clockspeed and industry munificence. Technology clockspeed indicates the pace of technological evolution, reflecting internal dynamic resources, while industry munificence represents the abundance of external resources. These boundary conditions illustrate the dynamics of synergies, explaining their moderation effects on acquisition premiums.Design/methodology/approachWe analyze a sample of 369 technological acquisitions by publicly traded U.S. firms between 1990 and 2011. To test our hypotheses, we used the ordinary least squares regression model with robust standard errors clustered by acquiring firms. In the robustness checks, we applied the generalized estimating equations to account for non-independent observations in our sample and verified that the results were robust to an alternative two-way clustering approach.FindingsWe suggest that a low level of technological overlap between an acquiring firm and its target firm leads the acquiring firm to offer a high acquisition premium because of the expected synergistic potential that evolves from combining two distant technological bases. We further find that this effect is contingent on the target firm's technology clockspeed and industry munificence. Specifically, the negative effect is amplified when target firms exhibit a rapid pace of technological evolution, whereas it is weakened when target firms operate in highly munificent industries characterized by robust growth and abundant resource flows.Research limitations/implicationsThis study has several limitations, but it offers opportunities for future research. First, our sample is limited to domestic acquisitions between U.S. publicly traded firms, which may restrict generalizability. Cross-border acquisitions could reveal different dynamics, as technology leakage and national security concerns might make technological overlap a more sensitive factor. Additionally, private firms were not included, and their distinct strategic considerations could provide further insights. Future research could explore post-acquisition data to validate these synergies and expand the scope to include international contexts and private firms for a comprehensive analysis.Practical implicationsOur findings highlight important implications for managers in technology sector acquisitions. This study underscores the need for a thorough evaluation of target firms to avoid misjudging synergies. Low technological overlap can heighten expectations for value creation, making it crucial for executives to accurately assess potential synergies to prevent overestimation. Managers should consider both internal resources and external industry conditions when evaluating synergies. Ultimately, these insights help managers offer informed prices that reflect true strategic synergies, adopting effective valuation practices to mitigate risks of financial overpayments and poor post-merger performance.Social implicationsThe social implications of our findings emphasize the broader impact of acquisition decisions on innovation and competition within the technology sector. By ensuring accurate valuation and avoiding overpayment, companies can allocate resources more efficiently, fostering sustainable growth and innovation. This diligent approach can reduce the risk of corporate failures.Originality/valueThis study makes two key theoretical contributions. First, it identifies technological overlap as a critical determinant of acquisition premiums in technological acquisitions, addressing gaps in the literature that focused on CEO characteristics and managerial attention. Second, it expands the theoretical framework by highlighting the dynamic nature of synergies, influenced by the target firm's technology clockspeed and industry munificence. By integrating both acquiring and target firm characteristics, this study provides a relational perspective on value creation, explaining why firms pay high premiums and offering a more comprehensive understanding of the strategic motivations in technological acquisitions.

Burton, Kristin; Heath, Michele; Luse, William

2024 Journal of Strategy and Management

doi: 10.1108/jsma-11-2023-0294

The study investigates the impact of various factors on the number of active investors in digital health startups. Through nine hypotheses, we examine the influence of metrics such as patents, online presence, financial aspects and company valuation on investor interest. The results reveal positive associations between these metrics and investor numbers, highlighting their role in signaling strength and attracting investment. This research enhances the understanding of investor valuation in digital health startups, emphasizing the importance of credible signals for building trust and securing funding. However, we acknowledge limitations in data analysis methods and suggest future research to explore industry signals, longitudinal trends and failed startups for comprehensive insights.Design/methodology/approachThis study delves into the design methodology and approach, aiming to fill gaps in understanding investor roles in valuing digital health ventures. We focus on deciphering factors driving valuations for these startups to secure growth financing. Using signaling theory, we investigate how entrepreneurs communicate their latent strengths to bridge information gaps, aiding investment decisions. We analyze a sample of 482 healthcare startups from the Pitchbook database using Poisson regression in SPSS.FindingsThis research sheds light on the factors driving investor interest in digital health startups. Despite the critical role of entrepreneurs in patient care innovations, the relationship between investor characteristics and funding for digital health technologies still needs exploration. We examine factors influencing investor valuation in healthcare startups and identify patents, social followers and financial disclosures as pivotal elements shaping investor interest. The findings show that all factors for active investors are significant for all variables except similar unique visitors.Originality/valueThese results significantly enhance our understanding of investor decision-making in digital health startups. They confirm the importance of various signals, like patent activity, online presence and financial performance, in attracting investor attention. We utilize unique data sources, offering insights into investors' behavior across different funding stages. In conclusion, these findings underscore investors' crucial role in the growth and funding of healthcare tech startups, emphasizing the need for robust signals to attract investment.

Khorshid, Seddigheh

2024 Journal of Strategy and Management

doi: 10.1108/jsma-11-2023-0302

The main objective of this paper is to analyze how leadership unity (LU) within universities affects the innovativeness of faculty, with a focus on the potential moderating role of strategic sensitivity (SS).Design/methodology/approachThe conceptual model of this research shows that SS and LU of the university impact the faculty's innovativeness. Meantime, the moderating effect of SS is assessed. A 49-item questionnaire was administered to 350 respondents who were managers and faculties of the university. The hierarchical regression technique was used for analyzing data and testing hypotheses.FindingsThe findings support both a curvilinear relationship based on a concave upward pattern and a linear relationship between LU in the university and the innovativeness of faculty. In addition, the university's SS positively influences the faculty's innovativeness. SS negatively moderates the curvilinear relationship between LU and faculty's innovativeness, i.e. the U-shaped effect exists only when the level of SS is high.Research limitations/implicationsThe results of this study shed new light on the relationships between LU and SS with innovativeness in the higher education landscape. It underlines the importance of SS as a moderator in the relationship between LU and innovativeness. This study was conducted in a developing country under sanctions with an Eastern culture, Iran. Thus, it is recommended that the conceptual framework of this study be tested in different countries with cultural diversity to generalize its findings.Practical implicationsAdministrators of universities need to recognize that creating unity and cohesion among managers of various levels of the university is crucial. They should also be aware that responses to external changes can lead to new opportunities for the university. Embracing transformation within the organizational strategies of the university will have a significant influence on competition, politics, and internal operations.Originality/valueThis research contributes to the academic discussions on the importance of LU and SS and also the moderation effect of SS in driving and promoting innovativeness in among faculties by providing empirical evidence. The results present valuable insights for scholars, practitioners and policymakers seeking to understand innovativeness among faculties in the higher education setting.

Kafetzopoulos, Dimitrios; Gotzamani, Katerina; Vouzas, Fotios

2024 Journal of Strategy and Management

doi: 10.1108/jsma-01-2024-0010

The main purpose of this study is to investigate the role of organizational culture in creating a supportive environment for business model innovation (BMI) by focusing on the mediating role of strategic flexibility and the moderating effect of technological capability.Design/methodology/approachTo achieve this objective an empirical survey was conducted among 379 participant firms in Greece. CFA and finally hierarchical regression analysis were performed to validate the data and examine the hypothesized relationships.FindingsThe results show that strategic flexibility mediates the relationship between organizational culture and BMI. The effect of organizational culture on strategic flexibility is stronger for firms with increased technological capability.Research limitations/implicationsData were collected at only one point in time from one country, Greece. This might pose limitations on the generalizability of our results. Furthermore, we did not explore many internal or external mediating or moderating factors in the relationship between organizational culture and BMI.Practical implicationsManagers should consider incorporating a suitable organizational culture into their strategies to enable them improve their strategic flexibility, which further promotes BMI.Originality/valueThe current state of knowledge of both theory and practice for critical organizational factors such as organizational culture, strategic flexibility, BMI and technological capability will be extended.

Sghaier, Adnène; Hamza, Taher

2024 Journal of Strategy and Management

doi: 10.1108/jsma-05-2024-0098

This study investigates the relationship between CEO power and the risk profile (RP) of acquiring banks through mergers and acquisitions (M&A) transactions.Design/methodology/approachThe analysis is based on 214 transactions between 2010 and 2022 involving European Union-based acquirers. To assess the impact of M&A on the acquiring bank’s RP, we compare changes in the acquirer’s RP to control banks. We use linear regression with two-stage least squares instrumental variables (2SLS-IV) to examine the effect of CEO power on changes in merger-related risk.FindingsThe findings suggest that CEO power reduces the RP of the acquiring bank. Specifically, CEOs who hold both the CEO and board chair positions tend to take fewer risks. Additionally, CEOs with high ownership, CEO pay and extensive experience (measured by tenure and acquisition experience) decrease the RP. However, prestige power is positively correlated with an increase in RPs.Practical implicationsThis research examines CEO influence on bank risk post-mergers, providing insights into governance, risk and strategic choices. The findings can guide banks in CEO selection and governance to mitigate M&A risks, improving risk management and decision-making in the financial sector.Originality/valueThis study is the first empirical investigation introducing diverse executive power metrics to analyze the link between executive power and risk-taking in the European banking sector, with a specific emphasis on the impact on M&A as critical investment choices.