84262 I.Arikan
PhD Seminar
MIS 84262: Business & Organizational Strategy
THEORY
Instructor: Ilgaz Arikan, Ph.D.
Office Hours: By Appointment
Class Hours: 11:00-2:00 pm Tuesdays (or at a substitute time/day as set by the instructor)
Class Location: M&IS Conference Room
Course Objectives
A. Each student should develop or extend their working knowledge of the main theories in the field of Strategic Management
B. Each student should be able to apply each of these theories to topics in Strategy, including competitive dynamics, knowledge management, organizational structure and design, vertical integration, diversification, mergers and acquisitions, and alliances.
C. Each student should develop at least one creative idea that may be developed into a dissertation proposal or publishable paper.
D. Identify a gap in the literature, clearly explain how this gap can be addressed theoretically and the arguments can be empirically tested.
Text Material
The articles mostly are available electronically from the Library. As with all doctoral seminars, we build upon the existing knowledge in the field. To do that, we must know the “classics” and the recent work. For each seminar, we have several articles assigned as a starting point for our discussions. These articles are mostly are available electronically from the Library. You are responsible for reading all assigned articles and prepare for class discussion. Students should read the articles and provide meaningful contributions on how these fit with the received knowledge, can be expanded, and/or contradicted. Every week, the reading list will be emailed to students.
This course syllabus provides a general plan and schedule for the course; deviations may be necessary.
Class Format
A. Teaching Style
The course will be taught using a seminar style. This means each student must take responsibility for the success of the class. Students must be prepared by reading all the assigned materials. However, simply reading the assigned materials is not enough—students must also evaluate this material, critique it, analyze how it fits with other literatures, etc.
B. Student Evaluation
Student Evaluation
There are four ways student performance will be evaluated:
(1) Quiz: Each class will begin with students taking approximately 25 minutes to answer one or more questions about the readings for that session. Question(s) will go beyond asking information about the content of the assigned readings and instead will focus on the relationship among the readings, their implications, etc. The primary purpose of these questions is to help students prepare for their qualifying exam. (15% of course grade)
(2) Article Discussions/brief presentation: You are assigned 5 mandatory articles every week. These form the basis of our class discussions. You should be able to do a 5-10 minute brief presentation in class on any one of these papers and lead the discussion. This process will help you prepare for comprehensive exams. (15% of course grade)
(3) Final Exam: There will be a final exam. This final exam will consist of three qualifying exam-type questions, any two of which a student will answer. The primary purpose of the final exam is to help students prepare for their qualifying exam. (20% of course grade)
(4) Research Paper: Students are required to submit a research paper. Complete manuscript is due at the end of the semester, and should there be a need for an extension, you will receive an “incomplete” and will have one more semester to finish the paper. An incomplete does not mean a lower grade. Simply put, some projects may take longer than others because of the data, methods, or the design. A half baked project finished on time will most probably get a low or failing grade. (50% of course grade).
I will provide written feedback for every written portion of your research paper before the deadline. You are encouraged to incorporate these changes as you see fit. There will be no grade assigned to these parts. Only the full manuscript will be graded as part of the course requirements. Depending on the progress and the schedule of the department, I will schedule a presentation day for the projects before the final manuscript is turned in. The primary purpose of the research paper presentation is to help students prepare for a research career, including the challenge of presenting difficult arguments in the abbreviated format of an academic conference.
Policy on Previous and/or Continued Work
You may choose to pursue a paper that was intended to satisfy another (current or previous) PhD seminar. Should you wish to pursue this alternative, you must obtain the approval of both instructors and the contributions to the revised-modified current work should be significantly higher than the previous state of the manuscript. Students cannot get credit for the same work submitted to multiple seminars.
Policy on Joint Work
For the purposes of this seminar, each student is responsible for his/her research agenda, and you cannot collaborate with a co-author during the semester. Each project will be single authored. After the course grade is assigned, you are free to pursue your project with a co-author as you see fit.
Final grades are computed as follows:
15% Quiz
15% Article summary and brief presentation
20% Final Exam
50% Research paper
· To receive a grade of “C” on these assignments, students must show a broad knowledge of the relevant research literature.
· To receive a “B” on these assignments, students must show a broad knowledge of the relevant research literature and an ability to integrate that literature.
· To receive an “A” on these assignments, students must show a broad knowledge of the relevant research literature, an ability to integrate that literature, and some creative insights that are not already present in the literature.
Final Manuscript/Research Paper Presentation
Students will make a presentation of their work to a small audience. Plan for a 20 minute presentation, similar to those you would do at an AOM conference. Each student will be allocated about 45 minutes for the Q&A and further suggestions. I strongly suggest that you ask a classmate to take down audience comments while you are presenting so you could use them to revise the paper.
Course Schedule
*Classes are on Tuesdays unless otherwise announced. Instructor reserves the right to change the content and schedule if necessary.
Sept 1 Introduction
Module 1: The Basics
Sept 8 Evolutionary Economics
Sept 15 Resource-based view
Sept 22 Transactions Cost Economics and Resource Dependence Theory
Sept 29 Behavioral theories and Real Options Theory
Module 2: Business Strategy-How to compete in an industry
Oct 6 No Class – Catch up time – Finalize your research question
Oct 13 Competitive Dynamics – What is Strategy from a different angle.
Oct 20 Organizational structure and Organizational change (also leftovers from TCE, RBV, Theory of the firm)
Oct 27 Strategy formulation and Managerial Cognition
Module 3: Corporate Strategy-Which businesses to be in/out and how to enter/exit
Nov 3 Corporate Diversification
Nov 10 Mergers and Acquisitions
Nov 17 Strategic Alliances
Nov 24 Catch up time - Overview
Dec 1 Student Paper Presentations
Dec 14 Final Exam in class and Final Research paper due
READING LIST
*Mandatory readings.
Evolutionary Economics and Resource-based View
Knight, F. 1921. Risk, Uncertainty, and Profit. Boston: Houghton Mifflin. Chapters 2, 7, 8 (pages 22-48, 197-263)
Schumpeter, J. A. 1942. “The Process of Creative Destruction.” Reprinted in Organizational Economics 1986 (408-413), eds. J. B. Barney and W. G. Ouchi. San Francisco: Jossey-Bass Inc.
*Hayek, F. A. 1945. “The Use of Knowledge in Society.” American Economic Review 35:519-530.
*Alchian, A. A. 1950. “Uncertainty, Evolution and Economic Theory.” Journal of Political Economy 58:211-221.
Kirzner, I. M. 1979. Perception, Opportunity, and Profit. Chicago: University of Chicago Press. Chapters 8, 9, 10 (pages 120-181)
Nelson, R.R. and S. G. Winter. 1982. “Neoclassical Growth Theory: A Critique.” In An Evolutionary Theory of Economic Behavior and Capabilities. Cambridge: Harvard University Press, 195-307.
Teece, DJ.; Winter, SG. 1984. The Limits of Neoclassical Theory in Management Education. American Economic Review, 74: 2, p116-122.
Nelson, R.R. and S. G. Winter. The Schumpeterian Tradeoff Revisited. 1982. American Economic Review, 72:1, p114-133.
*Nelson, R.R. and S. G. Winter. 1980. Firm and Industry Response to Changed Market Conditions: An Evolutionary Approach. Economic Inquiry, 18: 2, p179-203.
*Nelson, R.R. and S. G. Winter. 2002. Evolutionary Theorizing in Economics. Journal of Economic Perspectives, 16: 2, p23-47.
*Nelson, R.R. and S. G. Winter. 1974. Neoclassical Vs. Evolutionary Theories of Economic Growth: Critique And Prospectus. Economic Journal, 84: 336, p886-905.
The Resource-based View
Rumelt, R. 1984. “Toward a Strategic Theory of the Firm.” In R. Lamb (ed.), Competitive Strategic Management. Englewood Cliffs, NJ: Prentice-Hall, 556-570.
Wernerfelt, B. 1984. “A Resource-based View of the Firm.” Strategic Management Journal 5: 171-180.
*Barney, J.B. 1986. “Strategic Factor Markets: Expectations, Luck, and Business Strategy.” Management Science 32:1231-1241.
Coff RW. 1999. When competitive advantage doesn't lead to performance: the resource-based view and stakeholder bargaining power. Organization Science 10: 119-133.
Makowski, Louis, and Joseph M. Ostroy, 2001, Perfect competition and the creativity of the
market, Journal of Economic Literature 39, 479–535.
Barney, J., & Arikan, A. (2001). The resource-based view: Origins and implications. Handbook of Strategic Management
Dierickx, I. and K. Cool 1989. “Asset Stock Accumulation and Sustainability of Competitive Advantage.” Management Science 35:1504-1511.
*Barney, J. 1991. “Firm Resources and Sustained Competitive Advantage.” Journal of Management 17(1):99-120.
*Conner, K. 1991. “An Historical Comparison of Resource-based Logic and Five Schools of Thought within Industrial Organization Economies: Do We Have a New Theory of the Firm Here?” Journal of Management 17(1):121-154 (especially 132 to 150).
*Peteraf, M.A. 1993. “The Cornerstones of Competitive Advantage: A Resource-based View.” Strategic Management Journal 14:179-191.
*Teece, D. J, G. Pisano and A. Shuen. 1997. “Dynamic Capabilities and Strategic Management.” Strategic Management Journal, 18(7):509-533.
Lippman, Steven A., and Richard P. Rumelt, 2003, The payments perspective: Microfoundations of resource analysis, Strategic Management Journal 24, 903–927.
Makowski, Louis, and Joseph M. Ostroy, 2001, Perfect competition and the creativity of the market, Journal of Economic Literature 39, 479–535.
Garicano, L., and T.N. Hubbard, 2008, Specialization, firms, and markets: The division of labor within and between law firms, Journal of Law, Economics, and Organization forthcoming.
*Kogut, Bruce, and Udo Zander, 1992, Knowledge of the firm, combinative capabilities, and the replication of technology, Organization Science 3, 383–397.
Transactions Cost Economics
*Coase, R. H. 1937. The Nature of the Firm. Economica 4:386-405.
Coase, R. H. 1960. The Problem of Social Cost.” Journal of Law and Economics 3:1-44.
*Demsetz, H. 1967. Toward a Theory of Property Rights.” American Economic Review, 57:347-359.
Akerlof, F. A. 1970. “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism.” Reprinted in Organizational Economics 1986, eds. J. B. Barney and W. G. Ouchi, 27-39. San Francisco: Jossey-Bass Inc.
Klein, B., R. G. Crawford, and A. A. Alchian. 1978. “Vertical Integration, Appropriable Rents, and the Competitive Contracting Process.” Reprinted in Organizational Economics 1986, eds. J. B. Barney and W. G. Ouchi, 39-71. San Francisco: Jossey-Bass Inc.
*Williamson, O. E. 1983. Organization Form, Residual Claimants, and Corporate Control. Journal of Law and Economics, XXVI, 351-366.
*Alchian, Armen A., and Harold Demsetz, 1972, Production, information costs, and economic organization, American Economic Review 62, 777–795.
*Williamson, Oliver E., 1999, Strategy research: Governance and competence perspectives, Strategic Management Journal 20, 1087–1108.
Vertical Integration
*Coase, RH. 2000. The Acquisition of Fisher Body by General Motors. Journal of Law and Economics, 43(1): 15-31.
The Fable of Fisher Body.
Masten, S. E., J. W. Meehan, Jr., and E. A. Snyder. 1991. “The Cost of Organization.” Journal of Law, Economics and Organization, 7, 1-25.
Anderson, E. and D. C. Schmittlein. 1984. “Integration of the Sales Force: An Empirical Examination.” Rand Journal of Economics 15(3):385-395.
*Mahoney, J. T. 1992. “The Choice of Organizational Form: Vertical Financial Ownership Versus Other Methods of Vertical Integration.” Strategic Management Journal 13:559-584.
*Argyres, N. 1996. “Evidence on the Role of Firm Capabilities in Vertical Integration Decisions.” Strategic Management Journal 17(2):129-150.
Sutcliffe, K. M., and G. P. Huber 1998. Firm and Industry as Determinants of Executive Perceptions of the Environment. Strategic Management Journal, 19(8): 793-807.
Physical Assets and the Theory of the Firm
Grossman, S. and O. Hart (1986) “The Costs and Benefits of Ownership: A Theory of Vertical Integration,” Journal of Political Economy, pgs. 691 - 719.
*Hart, O.D. (1988) “Incomplete Contracts and the Theory of the Firm,” Journal of Law, Economics, and Organization, 4: 119 – 140.
Hart, O.D. (1989) “An Economist’s Perspective on the Theory of the Firm,” Columbia Law Review, 89, pp. 1757 – 1774.
Hart, O.D. and J. Moore (1990) “Property Rights and the Nature of the Firm,” Journal of Political Economy, 98, ppg. 1119 – 1158.
Moore, J. (1992) “The Firm as a Collection of Assets,” European Economic Review, 493–507.
Williamson, O.E. and S. Winter (Editors). The Nature of the Firm: Origins, Evolution, and Development. Oxford: Oxford University Press, 1991. Chapter 9.
Contracts and the Theory of the Firm
Baker, G., Gibbons, R, Murphy, KJ. 2002. Relational Contracts and the Theory of the Firm. Quarterly Journal of Economics, 117: 1, p39-84.
Baker, G., Gibbons, R, Murphy, KJ. 2001. Bringing the Market Inside the Firm? American Economic Review, 91: 2, p212-219.
Baker, G., Gibbons, R, Murphy, KJ. 1999. Informal authority in organizations.
Journal of Law, Economics & Organization, 15:1.
Baker, G., Gibbons, R, Murphy, KJ. 1994. Subjective Performance Measures In Optimal Incentive Contracts. Quarterly Journal of Economics, 109: 4, p1125-1156.
Cheung, S.S. (1983) “The Contractual Nature of the Firm,” Journal of Law and Economics, 26: 1 - 22.
*Joskow, P. (1987) “Contract Duration and Relationship Specific Investments,” American Economic Review, 168 – 185.
Resource Dependence Theory
*Amy J. Hillman, Michael C. Withers, and Brian J. Collins.”Resource Dependence Theory: A Review” Journal of Management December 2009 35: 1404-1427.
Hallen B. Katila R. Rosenberger J. “Unpacking Social Defenses: A Resource-Dependence Lens on Technology Ventures, Venture Capital, and Corporate Relationships” Academy of Management Journal, 2014, in press
Palmer; D. Barber, B.M., Zhou, X. & Soysal, Y. 1995. "The Friendly and Predatory Acquisition of Large U.S. Corporations in the 1960s: The Other Contested Terrain." American Sociological Review, 60: 469-499.
*Williamson, O. Transaction Cost Economics: What Are the Questions?, Unpublished manuscript. http://businessinnovation.berkeley.edu/WilliamsonSeminar/williamson040512.pdf
Baker, W.E. 1990. Market networks and corporate behavior. American Journal of Sociology, 96: 589-625.
Boyd, B. 1990. Corporate linkages and organizational environment: A test of the resource dependence model. Strategic Management Journal, 11: 419-430.
*Hayward, M.L.A. and Boeker. W. 1998 “Power and Conflicts of interest in Professional Firms: Evidence from Investment Banking” Administrative Science Quarterly 43: 1-22.
*Pfeffer, J. 1987. A resource dependence perspective on intercorporate relations. In M.S. Mizruchi & M. Schwartz (Eds.), Intercorporate relations: The structural analysis of business, pp. 25-55. New York: Cambridge University Press.
*Pfeffer, J., & Davis-Blake, A. 1987. Understanding organizational wage structures: A resource dependence approach. AMJ, 437-455.
Pfeffer, J., & Salancik, G. R. 1978. The external control of organizations: A resource dependence perspective. New York: Harper & Row.
Sherer, P.D. & Lee, K. 2002. Institutional change in large law firms: A resource dependence and institutional perspective. Academy of Management Journal, 45(1): 102-119.
Behavioral Theories of the firm
Casciaro T, Piskorski MJ. June 2005. Power Imbalance, Mutual Dependence and Constraint Absorption: A Closer Look at Resource Dependence Theory. Administrative Science Quarterly,
*Cohen, M.D., March, J.G., & Olsen, J.P. 1972. A garbage can model of organizational choice.
Administrative Science Quarterly, 17: 1-25.
*Levitt, B. & March, J. G. 1988. Organizational Learning. Annual Review of Sociology, 14:319-340.
Levinthal, D. A. & Rerup, C. 2006. Crossing an apparent chasm: bridging mindful and less-mindful perspectives on organizational learning. Organization Science, 17(4): 502-513.
Bendor, J., Moe, T.M. & Shotts, K.W. 2001. "Recycling the garbage can: An assessment of the research program."American Political Science Review, 95: 169-190.
Olsen, J.P. 2001. "Garbage can, new institutionalism and the study of politics." American Political Science
Review, 95: 191-198.
Levitt, B., & Nass, C. 1989. The lid on the garbage can: Institutional constraints on decision making in the technical core of college-text publishers. ASQ, 34: 190-207.
Padgett, J.F. 1980. Managing garbage can hierarchies. ASQ, 25: 583-604. 7
*March, J. G. 1991. Exploration and Exploitation in Organizational Learning. Organization Science, 2(1): 71-87.
Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. 1999. Organizing for high reliability: Processes of collective mindfulness, Research in Organizational Behavior, Vol. 21, 1999, Vol. 21: 81-123.
Haunschild, P.R., & Sullivan, B.N. 2002. Learning from complexity: Effects of prior accidents and
incidents on airlines' learning. ASQ 47: 609-643.
Levitt, B. and J. G. March (1988). "Organizational learning." Annual Review of Sociology 14:
319-340.
*Cohen, W. M. and D. A. Levinthal (1990). "Absorptive capacity: A new perspective on
learning and innovation." Administrative Science Quarterly 35(1): 128-152.
Ingram, P. and J. A. C. Baum (1997). "Opportunity and constraint: Organizations'learning from
the operating and competitive experience of industries." Strategic Management Journal 18: 75-
98.
Szulanski G. 1996. Exploring internal stickness: Impediments to the transfer of best practice
within the firm. Strategic Management Journal 17: 27
Rivkin JW. 2000. Imitation of complex strategies. Management Science 46(6): 824.
Huber, G. P. (1991). "Organizational learning: The contributing processes and the literatures."
Organization Science 2(1): 88-115.6
Benner, M. J. and M. L. Tushman (2002). "Process management and technological innovation: A
longitudinal study of the photography and paint industries." Administrative Science Quarterly
47(4): 676-706.
Zollo M, Singh H. 2004. Deliberate learning in corporate acquisitions: post-acquisition strategies
and integration capability in U.S. bank mergers. Strategic Management Journal 25(13): 1233-
1256.
*Zollo, M. and Winter, SG. 2002. Deliberate Learning and the Evolution of Dynamic Capabilities. Organization Science, 13: 3, p339-351.
Gavetti, G. 2005. Cognition and Hierarchy: Rethinking the Microfoundations of Capabilities' Development. Organization Science, 16: 6, p599-617.
Real Options Theory
*Bernardo, Antonio E., and Bhagwan Chowdhry, 2002, Resources, real options, and corporate
strategy, Journal of Financial Economics 63, 211–234.9
Balakrishnan, S., and B. Wernerfelt. 1986. Technical Change, Competition and Vertical Integration. Strategic Management Journal 7:347-359.
*Kogut, B. 1991. Joint Ventures and the Option to Expand and Acquire. Management Science 37(1):19-33.
Kogut, B., and N. Kulatilaka. 1994. Options Thinking and Platform Investments: Investing in Opportunity. California Management Review, Winter: 52-71.
Organizational Structure and Organizational Change
*Garicano, Luis and Rossi-Hansberg, Esteban (2012) Organizing growth. Journal of Economic Theory, 147 (2). pp. 623-656. ISSN 1095-7235
Rajan, Raghuram G., and Julie Wulf, forthcoming, The flattening firm: evidence from panel
data on the changing nature of corporate hierarchies, Review of Economics and Statistics.
*Armour, H. O., and D. J. Teece. 1978. “Organizational Structure and Economic Performance: A Test of the Multidivisional Hypothesis.” Bell Journal of Economics, 9, 106-122.
Competitive Dynamics
What is Strategy? (From a different perspective)
Adner, R., and C.E. Helfat, 2003, Corporate effects and dynamic managerial capabilities,
Bertrand, M., and A. Schoar, 2003, Managing with style: The effect of managers on firm policies, The Quarterly Journal of Economics 118, 1169–1208.
Brush, Thomas H., Philip Bromiley, and Margaretha Hendrickx, 1999, The relative influence of industry and corporation on business segment performance: An alternative estimate, Strategic Management Journal 20, 519–547.
*Caves, Richard E. and Ghemawat, Pankaj 1992. Identifying Mobility Barriers. Strategic Management Journal, 13, 1—12
*Demsetz, H. 1973. “Industry Structure, Market Rivalry, and Public Policy.” Reprinted in Organizational Economics, eds. Barney, J. B., and W. G. Ouchi. San Francisco: Jossey-Bass, 414-422.
Lieberman, Marvin B. 1984. The Learning Curve and Pricing in the Chemical Processing Industries. RAND Journal of Economics, 15, 213—228.
*McGahan, Anita M., and Michael E. Porter, 1997, How much does industry matter, really? Strategic Management Journal 18, 15–30.
Porter, M. E. 1979. “How Competitive Forces Shape Strategy.” Harvard Business Review, March/April: 137-156.
Porter, M. E. 1979. “The Structure within Industries and Companies' Performance.” Review of Economics and Statistics 61:214-227.
*Porter, M. E. 1981. “The Contributions of Industrial Organization to Strategic Management.” Academy of Management Review, 6, 4, 609-620.
*Rumelt, Richard P., 1991, How much does industry matter?, Strategic Management Journal 12, 167–185.
Scherer, F. M. 1980. “The Price and Profit Consequences of Market Structure.” In Industrial Market Structure and Economic Performance (2nd ed.). Chicago: Rand McNally, Chapter 9.
Schmalensee, Richard, 1985, Do markets differ much?, The American Economic Review 75, 341–351.
Teece, David 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15, 285—305
Bennedson Morten; Pérez-González, Francisco; and Wolfenzon, Daniel. Do CEOs matter? Working Paper, 2007. http://pages.stern.nyu.edu/~dwolfenz/CEO.pdf
Porter, Michael 1996. What is Strategy? Harvard Business Review, 74, 61.
Strategic Management Journal 24, 1011–1025.
Corporate Diversification—Traditional Strategic Management Research
Lewellen, W. G. 1968. “A Pure Financial Rationale for the Conglomerate Merger.” The Journal of Finance: 521-545.
*Teece, D. J. 1980. “Economies of Scope and the Scope of the Enterprise: The Diversification of Petroleum Companies.” Journal of Economic Behavior and Organization 1(3):223-247.
*Rumelt, R. P. 1982. “Diversification Strategy and Profitability.” Strategic Management Journal 3:359-369.
*Prahalad, C. K., and R. A. Bettis 1986. “The Dominant Logic: A New Linkage Between Diversity and Performance.” Strategic Management Journal 7:485-501.
Amit, R., and J. Livnat. 1988. “Diversification and the Risk-Return Trade-off.” Academy of Management Journal 31(1):154-166.
Bernheim, B. D., and M. D. Whinston. 1990. Multimarket Contact and Collusive Behavior. RAND Journal of Economics 21(1):1-26.
Prahalad, C. K., and G. Hamel. 1990. “The Core Competence of the Corporation.” Harvard Business Review, May-June: 79-91.
Gimeno, J., and C. Y. Woo. 1996. “Hypercompetition in a Multimarket Environment: The Role of Strategic Similarity and Multimarket Contact in Competitive De-escalation.” Organization Science 7(3): 322-341.
Shin, H-H., and R. M. Stulz. 1998. “Are Internal Capital Markets Efficient?” The Quarterly Journal of Economics, May, 531-552.
Corporate Diversification—The Diversification Discount Literature
*Lang, L. H. P., and R. M. Stulz. 1994. “Tobin’s q, Corporate Diversification, and Firm Performance.” Journal of Political Economy 102(6):1248-1280.
Comment, R., and G. A. Jarrell. 1995. “Corporate Focus and Stock Returns.” Journal of Financial Economics 37:67-87.
Campa, J. M. and S. Kedia. 2002. “Explaining the diversification discount.” Journal of Finance 57:1731-1762.
Graham, J. R., M. Lemmon, and J. Wolf. 2002. “Does Corporate Diversification Destroy Value?” Journal of Finance 57:695-720.
Lamont, O. A., and C. Polk. 2002. “Does Diversification Destroy Value?” Evidence from the Industry Shocks. Journal of Financial Economics 63:51-77.
Miller, D. J. 2003. “Firms’ Technological Resources and the Performance Effects of Diversification: A Longitudinal Study.” Strategic Management Journal.
Gomes, J. and D. Livdan. 2004. “Optimal Diversification: Reconciling Theory and Evidence.” Journal of Finance, forthcoming (April).
Villalonga, B. 2003. “Does Diversification Cause the “Diversification Discount”? Working paper, Harvard Business School.
Villalonga, B. 2004. “Diversification Discount or Premium? New Evidence from Business Information Tracking Series Establishment-Level Data. The Journal of Finance, LIX(2):475-503.
Rajan, Raghuram, Henri Servaes, and Luigi Zingales, 1998, The Cost of Diversity: The
Diversification Discount and Inefficient Investment, NBER working paper No. W6368,
forthcoming, Journal of Finance.
Internal development—Capital budgeting, investment theories, internal vs. external capital markets
Lamont, Owen, 1997, Cash flow and investment: Evidence from internal capital markets,
Journal of Finance 52, 83–109.
Klepper, Steven, and Sally Sleeper, 2005, Entry by spinoffs, Management Science 51,
1291–1306.
Alcacer, J., and W. Chung, 2007, Location Strategies and Knowledge Spillovers,
Management Science 53, 760.
Amihud, Yakov, and Baruch Lev, 1981, Risk Reductions as a Managerial Motive for
Conglomerate Mergers, Bell Journal of Economics 12, 605-617.
Black, Fischer, 1986, Noise, Journal of Finance 41, 529-543.
Collins, Daniel W., S. P. Kothari, and Judy Rayburn, 1987, Firm Size and the Information
Content of Prices With Respect to Earnings, Journal of Accounting and Economics 9,
111-138.
Durnev, Artyom, Randall Morck, Bernard Yeung, and Paul Zarowin, 2001, Does Greater Firm specific Return Variation Mean More or Less Informed Stock Pricing?, New York
University working paper.
Fama, Eugene F., and Kenneth French, 2000, Disappearing Dividends: Changing Firm
Characteristics or Lower Propensity to Pay?, Journal of Financial Economics,
French, Kenneth R., and Richard Roll, 1986, Stock Return Variances: the Arrival of Information and the Reaction of Traders, Journal of Financial Economics 17, 5-26.
Grossman, Sanford, 1976, On the Efficiency of Competitive Stock Markets Where Traders Have
Diverse Information, Journal of Finance 31, 573-585.
Hubbard, R. Glenn, 1998, “Capital-Market Imperfections and Investment,” Journal of Economic Literature 36, 193-226.
King, Robert G., and Ross Levine, 1993, Finance and Growth: Schumpeter Might Be Right,
Quarterly Journal of Economics 108, 717–737.
Khorana, Ajay, and Marc Zenner, 1998, Executive Compensation of Large Acquirers in the
1980s, Journal of Corporate Finance 4, 209-240.
La Porta, Rafael, Florencio Lopez de-Silanes, Andrei Shleifer, and Robert W. Vishny, 1997,
Legal Determinants of External Finance, Journal of Finance 52, 1131-1146.
Lev, Baruch, and S. Ramu Thiagarajan, 1993, Fundamental Information Analysis, Journal of
Accounting Research 31, 190-215.
Lewellen, Wilbur G., 1971, A Pure Financial Rationale for the Conglomerate Merger, Journal of
Finance 26, 521-545.
MacKinley, Craig A, 1997, Event Studies in Economic and Finance, Journal of Economic
Literature 35, 13-39.
Mason, Scott P., and Robert C. Merton, 1985, The Role of Contingent Claims Analysis in
Corporate Finance, in E. I. Altman, and M. G. Subramanyan, ed.: Recent Advances in
Corporate Finance (Richard D. Irwin, Inc. Homewood, IL).
Matsusaka, John G., and Vikram Nanda, 1994, Internal Capital Markets and Corporate
Refocusing, Journal of Financial Intermediation.
May, Don O., 1995, Do Managerial Motives Influence Firm Risk Reduction Strategies?, Journal
of Finance 50, 1291-1308.
Morck, Randall, Andrei Shleifer, and Robert W. Vishny, 1990, Do Managerial Objectives Drive
Bad Acquisitions?, Journal of Finance 45, 31-48.
Myers, Stewart C., 1977, Determinants of Corporate Borrowing, Journal of Financial Economics
5, 147-175.
Myers, Stewart C., 2001, Capital Structure, Journal of Economic Perspectives 15, 81-102.
Myers, Stewart C., and Nicholas S. Majluf, 1984, Corporate Financing and Investment Decisions
When Firms Have Information That Investors Do Not Have, Journal of Financial
Economics 13, 187-222.
Scharfstein, David S., and Jeremy C. Stein, 1997, The Dark Side of Internal Capital Markets:
Divisional Rent-Seeking and Inefficient Investment, NBER working paper No. W5969.
Shleifer, Andrei, and Robert W. Vishny, 1989, Management Entrenchment: The Case of Manger
Specific Investments, Journal of Financial Economics 25, 123-39.
Stein, Jeremy C., 1997, Internal Capital Markets and the Competition for Corporate Resources,
Journal of Finance 52, 111-133.
Stein, Jeremy C., 2001, Agency, Information and Corporate Investment, NBER working paper, No. W8342.
Subrahmanyam, Avanidhar, and Sheridan Titman, 1999, The Going Public Decision and the
Development of Financial Markets, Journal of Finance 54, 1043-1082.
Wurgler, Jeffrey, 2000, Financial Markets and the Allocation of Capital, Journal of Financial
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Mergers and Acquisitions—The Acquisition Literature
Jensen, M. C. 1968. “Agency costs of free cash flow, corporate finance, and takeovers.” American Economic Review 76:323-329.
Dann, L. Y., and H. DeAngelo. 1983. “Standstill agreements, privately negotiated stock repurchases, and the market for corporate control.” Journal of Financial Economics 11:275-300.
Ekbo, B. E. 1983. “Horizontal Mergers, Collusion, and Stockholder Wealth.” Journal of Financial Economics 11:241-273.
Jensen, M. C., and R. S. Ruback. 1983. “The market for corporate control: The scientific evidence.” Journal of Financial Economics 11:5-50.
*Lubatkin, M. 1983. “Mergers and the Performance of the Acquiring Firm.” Academy of Management Review 8:218-225.
Walkling, R., and M. Long. 1984. “Agency theory, managerial welfare, and takeover bid resistance.” Rand Journal of Economics 15(1):54-68.
Roll, R. 1986. The hubris hypothesis of corporate takeovers. Journal of Business 59(2):197-216.
Porter, M. E. 1987. “From competitive advantage to corporate strategy.” Harvard Business Review 3:43-59.
*Singh, H., and C. A. Montgomery. 1987. “Corporate acquisition strategies and Economic Performance.” Strategic Management Journal 8:377-386.
*Barney, J. B. 1988. “Returns to bidding firms in Mergers and Acquisitions: Reconsidering the Relatedness Hypothesis.” Strategic Management Journal 9:71-78.
Coff RW. 1999. How buyers cope with uncertainty when acquiring firms in knowledge intensive industries: caveat emptor. Organization Science 10: 144-161.
Bruner, R. F. Spring/Summer2002. “Does M&A Pay? A Survey of Evidence for the Decision-Maker.” Journal of Applied Finance, 12(1): 48-69.
Mergers and Acquisitions—Post Merger Integration
Chandler, A. D., Jr. 1977. The Visible Hand: The Managerial Revolution in American Business. Cambridge: Belknap Press, Chapter 3 (81-121), Chapter 14 (455-483), and Chapter 15 (484-500).
*Jemison, D. B., and S. B. Sitkin. 1986. “Corporate Acquisitions: A process perspective.” Academy of Management Review 11:145-163.
Haspeslagh, P., and D. Jemison. 1991. Managing Acquisitions: Creating Value Through Corporate Renewal. New York: Free Press. Chapters 2, 6, 7 (pp. 18-37, 105-137).
*Chatterjee, S., M. Lubatkin, D. Schweiger, and & Y. Weber. 1992. “Cultural differences and shareholder value in related mergers: Linking equity and human capital.” Strategic Management Journal 13:319-334.
Bartlett, C. A., and S. Ghoshal 1993. “Beyond the M-Form: Toward a Managerial Theory of the Firm.” Strategic Management Journal, 14:23-46
Strategy formulation and Managerial Cognition
*Finkelstein S, Hambrick DC. 1990. Top-management-team tenure and organizational outcomes:The moderating role of managerial discretion. Administrative Science Quarterly 35(3): 484-5038
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strategy, environment, and growth among U.S. semiconductor ventures, 1978-1988.
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*Tripsas M, Gavetti G. 2000. Capabilities, cognition, and inertia: Evidence from digital imaging.
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*Burgelman RA. 1994. Fading memories: A process theory of strategic business exit in dynamic
environments. Administrative Science Quarterly 39(1): 24-56
Noda T, Collis DJ. 2001. The Evolution of Intraindustry Firm Heterogeneity: Insights from a
Process Study. Academy of Management Journal 44(4): 897-925.
Eggers JP, Kaplan S. 2009. Cognition and renewal: Comparing CEO and organizational effects
on incumbent adaptation to technical change. Organization Science 20(2): 461-477.
Benner MJ. forthcoming. Securities analysts and incumbent response to radical technological
change: Evidence from digital photography and internet telephony. Organization Science
*Zajac EJ, Bazerman MH. 1991. Blind Spots in Industry and Competitor Analysis: Implications
of Interfirm (Mis)Perceptions for Strategic Decisions. The Academy of Management Review
16(1): 37-56
*Daft RL, Weick KE. 1984. Toward a model of organizations as interpretation systems. Academy
of Management Review 9(2): 284-295.
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