| Risk Attitude Differences, Factions, and Influence Behavior Within |
| | Pearce, Robert J. | State U. of West Georgia | rpearce@westga.edu | (770)-836-6472 |
| | This research looks inside the joint venture (JV) and explores the thesis that risk attitude differences between managers transferred from the different parents can have dysfunctional consequences for decision making and organizational performance. Data is gathered from seventy-five JV General Managers and the results indicate several significant linkages. First, dissimilar risk attitudes are highly associated with factionalism between the key managers from the different parent firms. Second, factionalism is a primary factor in driving influence behavior toward the increased use of power in an impersonal and manipulative way. Moreover, interdependence between the managers strengthens the effect of factionalism. In short, when the managers from the different parents have dissimilar attitudes toward risk, the nature of their relations degenerates into a cycle of attitudes and behaviors that are dysfunctional for both the development and effective execution of high quality decisions. The implications for JV performance are evident. |
| | Keywords: joint ventures; Influence behavior; decision making |
| Re-Examining the Diversity -Decision Quality Link: The Role of Member Interactions |
| | Rau, Devaki | U. of Minnesota | drau@csom.umn.edu | (612)-625-2361 |
| | Although researchers have examined the diversity - decision quality link either directly,
or by measuring certain intermediate process variables like trust, social cohesion, etc.,
the nature of this link still remains in question. Examining the actual interaction patterns
of the members of a diverse group could very well clarify how diversity influences decision
quality and thus resolve puzzling inconsistencies in the strategy literature on this topic.
This paper uses transactive memory theory to develop a model linking diversity, decision
quality, and group member interactions. The model examines interaction patterns in groups
that develop transactive memory systems and proposes that two variables - the ability to
recognize expertise, and the ability to share and accept expertise - moderate the
diversity - decision quality link. The model also examines the role of the team leader in
influencing decision quality and interaction patterns in diverse groups. |
| | Keywords: Diversity; Decision quality; Transactive memory |
| Trust, Control, and Risk in Strategic Alliances: An Integrated Framework |
| | Das, T. K. | Baruch College/City U. of New York | TK_Das@baruch.cuny.edu | (212)-802-6908 |
| | Teng, Bing-Sheng | George Washington U. | teng@gwu.edu | (202)-994-3736 |
| | Risk is endemic in strategic alliances. Hence, each partner firm needs to
adequately reduce and manage this risk for effective performance in an
alliance. In this article we examine trust and control as the two
principal antecedents of risk and propose an integrated framework of
trust, control, and risk in strategic alliances. First, we suggest that
the three constructs are each comprised of certain key dimensions. Risk
can be considered separately as relational risk and performance risk. The
two dimensions of trust are identified as goodwill trust and competence
trust, and control is differentiated in terms of the three modes of
behavior control, output control, and social control. Second, we discuss
the linkages between the different types of trust and control to the two
kinds of risk in alliances. Third, we suggest several risk reduction
approaches — minimizing relational risk through goodwill trust, behavior
control, and social control, while minimizing performance risk through
competence trust, output control, and social control. Fourth, we discuss
a number of trust building techniques and control mechanisms to reduce
risk in different types of strategic alliances. Finally, we develop
propositions for empirical testing of the integrated framework and offer
brief comments on future research directions and managerial implications. |
| | Keywords: Strategic alliances; Trust; Risk |
| Bounded Momentum and Stragetic Alliances |
| | Park, Namgyoo K. | New York U. | npark@stern.nyu.edu | 212-998-0412 |
| | This study examines how a firm's future strategic moves are affected by its past strategic
moves and by those of other industry participants. Specifically, we examine how past alliances
create a bounded momentum for the formation of future alliances. We review reasons why past
alliances may encourage or discourage a firm from forming future alliances. We argue that past
firm-level and industry-level alliances will encourage new alliances up to some point, and then
discourage them. We also discuss the extent to which momentum is specific to the types of
value-adding activities contained in past alliances. Thus, we seek to identify non-monotonic and
type-specific bounds on alliance momentum.
Empirically, we examine the count and timing of alliances created by 32 international airlines
over a thirteen-year period. After controlling for home-market demand, firm size and industry
experience, we find the following effects. First, when a firm establishes alliance momentum for
a particular type of value-adding activities, this momentum only affects future alliances for
the same type of activities. Thus, at the firm level, marketing alliances beget marketing alliances
while production-related alliances beget production-related alliances. Second, alliance
momentum follows a non-monotonic pattern. As past alliances accumulate, the propensity
to enter into further alliances first increases and then decreases. Third, there is some evidence
that industry-wide alliances generate a non-monotonic momentum of their own,
but not for all types of activities. |
| | Keywords: Strategic Momentum; Alliance Formation; Successive Alliances |