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1 – 10 of 18
Article
Publication date: 1 June 2001

Laura B. Cardinal, Todd M. Alessandri and Scott F. Turner

Industry descriptions often depict science‐driven industries as a single industry class, dominated by explicit knowledge in the form of patents, blueprints, diagrams, etc. This…

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Abstract

Industry descriptions often depict science‐driven industries as a single industry class, dominated by explicit knowledge in the form of patents, blueprints, diagrams, etc. This one‐dimensional view limits our ability to effectively manage the activities and routines across various stages of a science life cycle. The life cycle concept refers to the extent of development of the underlying scientific knowledge base. The knowledge in developed science fields (e.g. chemicals) is well codified, whereas in developing fields (e.g. biotechnology), it is less so. This variance creates interesting implications for innovation – product development routines will differ across developed and developing sciences. The purpose of this paper is to compare and contrast the knowledge‐ and resource‐based requirements of developed and developing science industries and the link to competitive advantage.

Details

Journal of Knowledge Management, vol. 5 no. 2
Type: Research Article
ISSN: 1367-3270

Keywords

Book part
Publication date: 13 August 2007

Todd M. Alessandri, Diane M. Lander and Richard A. Bettis

Strategy is ultimately aimed at creating shareholder value. We examine the relationship among intrinsic (DCF) value, market value, and the value of growth options using a “perfect…

Abstract

Strategy is ultimately aimed at creating shareholder value. We examine the relationship among intrinsic (DCF) value, market value, and the value of growth options using a “perfect foresight” model. Our findings suggest that Kester's (1984) initial assessment of growth option values may not hold under alternative valuation models. We highlight important issues in the valuation of growth options related to market expectations, modeling assumptions and estimation methods. The findings suggest that the firm's growth option value depends on three factors, each of which impacts investor expectations: (1) the macroeconomic environment; (2) the industry in which the firm participates; and (3) firm specific factors.

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Book part
Publication date: 13 August 2007

Catherine A. Maritan and Todd M. Alessandri

In this paper, we consider the relationship between the investment decision process and returns to investments in capabilities. We draw on characteristics of capabilities to…

Abstract

In this paper, we consider the relationship between the investment decision process and returns to investments in capabilities. We draw on characteristics of capabilities to develop a framework that identifies four components of the returns to an investment that are derived from industry-based versus firm-specific elements, and option and non-option elements. We then link these components to elements of the resource allocation process. In taking this approach we place the study of real options into the larger investment context, recognizing that they co-exist with and should be understood in conjunction with other investment characteristics. These arguments highlight the importance of connecting the investment process with realization of returns, thereby providing the conceptual foundations for a decision tool.

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Article
Publication date: 21 November 2008

Todd M. Alessandri

The purpose of this paper is to explore the impact of perceived risk on the procedural rationality of the decision process rather than decision choices or outcomes. The moderating…

Abstract

Purpose

The purpose of this paper is to explore the impact of perceived risk on the procedural rationality of the decision process rather than decision choices or outcomes. The moderating roles of attainment discrepancy and organizational slack are also explored.

Design/methodology/approach

These relationships, motivated by behavioral theory, are tested using survey data of capital investment decisions in a sample of 128 public firms in the USA.

Findings

The findings suggest an inverted‐U shaped relationship between perceived risk and procedural rationality. In addition, absorbed slack and attainment discrepancy played moderating roles on the perceived risk‐procedural rationality relationship.

Research limitations/implications

This study has several implications for research. First, the influence of risk is extended beyond decision outcomes to include decision processes. Second, the core arguments of behavioral theory, including uncertainty avoidance and decision context, appear to hold for the decision process. However, the effects of risk appear to be in the form of an inverted U‐shaped relationship, differing from prior behavioral theory research related to decision outcomes.

Practical implications

Perceived risk and the organizational context can lead to differing approaches to making decisions. As perceived risk increases, managers appear to alter the extent of information gathering and analysis. Organizations may consider designing different decision processes for different situations that take these managerial tendencies into account.

Originality/value

The contribution of this study is the extension of behavioral theory explanations of risk from decision choices or outcomes to the procedural rationality of the decision process. The findings show that risk has a non‐linear influence on the procedural rationality of the decision process.

Details

Journal of Strategy and Management, vol. 1 no. 2
Type: Research Article
ISSN: 1755-425X

Keywords

Content available
Book part
Publication date: 13 August 2007

Abstract

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Open Access
Article
Publication date: 15 December 2022

Daniele Cerrato, Maurizio La Rocca and Todd Alessandri

The purpose of this paper is to examine the financial factors across multiple levels of analysis that influence the performance effects of the unrelated diversification strategy…

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Abstract

Purpose

The purpose of this paper is to examine the financial factors across multiple levels of analysis that influence the performance effects of the unrelated diversification strategy, including institutional-, industry- and firm-levels.

Design/methodology/approach

Using a unique panel dataset of Italian firms from 1980 to 2010, the paper tests hypotheses on how industry external financial dependence and the firm's financial constraints both separately and jointly alter the performance benefits of unrelated diversification in contexts with financial market inefficiencies.

Findings

Unrelated diversification increases performance in weak financial contexts and such positive effect is enhanced by greater industry external financial dependence and greater firm financial constraints. However, as financial markets develop, the moderating effects of firm financial constraints shrink.

Practical implications

The study highlights the importance of recognizing the multiple financial contingencies that may alter the benefits of the unrelated diversification strategy, suggesting caution in its pursuit to boost firm performance.

Originality/value

The authors develop a theoretical framework that explains the performance outcomes of unrelated diversification, linking the benefits of an internal capital market (ICM) with the financial context of the firm and offering a fine-grained analysis that moves beyond the advanced/emerging economy dichotomy. Furthermore, leveraging on the unprecedented time frame of the empirical analysis, the paper highlights the crucial role of industry- and firm-level financial contingencies and demonstrates that their effects change at varying levels of development of the financial context.

Article
Publication date: 10 June 2014

Todd Alessandri, Daniele Cerrato and Donatella Depperu

The purpose of this paper is to examine the effects of the organizational slack and acquisition experience on acquisition behavior across varying environmental conditions. Drawing…

1318

Abstract

Purpose

The purpose of this paper is to examine the effects of the organizational slack and acquisition experience on acquisition behavior across varying environmental conditions. Drawing from behavioral theory and the threat-rigidity hypothesis, the paper explores firm acquisition behavior, in terms of type of acquisitions, before and during the recent economic downturn.

Design/methodology/approach

Using data on 385 acquisitions in Italy in the period 2007-2010, the paper tests hypotheses on how organizational slack and acquisition experience influence the likelihood of cross-border and diversifying acquisitions relative to domestic, non-diversifying acquisitions prior to and during the economic downturn.

Findings

Results suggest that the availability of financial resources and acquisition experience both have an important influence on acquisition behavior. Firms with greater slack and acquisition experience were more likely to make diversifying and/or cross-border acquisitions, compared to domestic non-diversifying acquisitions, particularly during an economic downturn, than firms with lower levels of slack and acquisition experience.

Originality/value

The paper extends behavioral theory and threat-rigidity hypothesis, highlighting their applicability to acquisition behavior across varying economic conditions. Slack resources and acquisition experience appear to be particularly salient during challenging economic times.

Book part
Publication date: 13 August 2007

Todd Fister and Anju Seth

This paper complements previous research on investment in firm-specific human capital by applying real options analysis. Our framework suggests that the parties receive valuable…

Abstract

This paper complements previous research on investment in firm-specific human capital by applying real options analysis. Our framework suggests that the parties receive valuable options to exit the contract when information becomes revealed in the future, but these options may be more valuable for one party than the other. Companies and workers attempt to reduce the value of the options through contractual mechanisms that either shift wealth to the party granting the option or prevent the option from being exercised. In both cases, the mechanisms cause the parties to invest in firm-specific capital, resulting in higher output and higher wages.

Details

Real Options Theory
Type: Book
ISBN: 978-0-7623-1427-0

Article
Publication date: 19 November 2021

Dante Di Gregorio, Martina Claasen Musteen and Douglas Thomas

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

Abstract

Purpose

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

Design/methodology/approach

We draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.

Findings

We find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.

Originality/value

Conceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 1 February 2022

David Wai Lun Ng, Abel Duarte Alonso, Alessandro Bressan and Oanh Thi Kim Vu

The purpose of this study is to examine the significance of knowledge management as a tool for firms to adapt to an ongoing unprecedented crisis. Moreover, in considering the…

Abstract

Purpose

The purpose of this study is to examine the significance of knowledge management as a tool for firms to adapt to an ongoing unprecedented crisis. Moreover, in considering the knowledge-based view of the firm, the study will ascertain the impacts, lessons learnt and how firms envisage their future under the current unpredictable regime from the viewpoints of firm owners/managers.

Design/methodology/approach

A qualitative data collection approach was selected, with face-to-face and online interviews undertaken with owners/managers of 33 firms operating in Singapore.

Findings

The data analysis reveals as many as eight dimensions pertaining to impacts, lessons learnt and the envisioned future of the firms. The relevance of knowledge management emerged, for instance, in supporting firms and staff to overcome initial challenges after the crisis became apparent. Knowledge management was also an exemplar of lessons learnt, through new knowledge development, strengthening links with consumers, through operational skilfulness and awareness, as well as in explaining how firms envision their future. These findings also underscore key tenets of the knowledge-based view of the firm.

Originality/value

Conceptually, the proposed dimensions stemming from the three examined research questions, together with the propositions and theoretical framework, contribute to a deeper understanding of the links between knowledge management and how firms confront a severe crisis. Empirically, the findings’ highlighted associations with knowledge management elements to illuminate how firms address the impacts of the COVID-19 crisis, as well as the lessons learnt and the envisioned future of firms operating under severe crisis conditions.

Details

Journal of Knowledge Management, vol. 26 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

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