Newsletter 154 OK

We report on data from a revelatory qualitative case study of a failed attempt to form an international joint venture (IJV) agreement. We analyze issues related to distributive, procedural, interpersonal, and informational fairness and the roles of their occurrence in the course of the formation stage of an IJV. We find that perceptions of fairness types shape the partners’ decision making logics (a property rights logic, a control rights logic, and a relational quality logic), which in turn influence the partners’ evaluations of the efficiency and equity of the proposed alliance and their decision on whether or not to form it. We develop propositions around this argument. Pascual Berrone – C. Cruz – L. GómezMejía – M. Larraza-Kintana “Ownership structure and corporate response to institutional pressures: Do family-controlled firms pollute less?, Administrative Science Quarterly, Vol. 55, April 2010, pages 82–113. Abstract: This paper compares the environmental performance of family and nonfamily public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions. We found that family-controlled public firms protect their socioemotional wealth by having a better environmental performance than their nonfamily counterparts, particularly at the local level, and that for the nonfamily firms, stock ownership by the chief executive officer (CEO) has a negative environmental impact. We also found that the positive effect of family ownership on environmental performance persists independently of whether the CEO is a member or serves both as CEO and board chair. Luis Cabral Ali Hortaçsu "The dynamics of seller reputation: Theory and evidence from eBay”, Journal of Industrial Economics, Vol. 58, No 1, March 2010, pages 54-78. This paper compares the environmental performance of family and nonfamily public corporations between 1998 and 2002, using a sample of 194 U.S. firms required to report their emissions. We found that family-controlled public firms protect their socioemotional wealth by having a better environmental performance than their nonfamily counterparts, particularly at the local level, and that for the nonfamily firms, stock ownership by the chief executive officer (CEO) has a negative environmental impact. We also found that the positive effect of family ownership on environmental performance persists independently of whether the CEO is a member or serves both as CEO and board chair. Luis Cabral Ali Hortaçsu "The dynamics of seller reputation: Theory and evidence from eBay”, Journal of Industrial Economics, Vol. 58, No 1, March 2010, pages 54-78. Abstract: We construct a panel of eBay seller histories and examine the importance of eBay's reputation mechanism. We find that, when a seller first receives negative feedback, his weekly sales rate drops from a positive 5% to a negative 8%; subsequent negative feedback ratings arrive 25% more rapidly than the first one and don't have nearly as much impact as the first one. We also find that a seller is more likely to exit the lower his reputation is; and that, just before exiting, sellers receive more negative feedback than their lifetime average. We construct a panel of eBay seller histories and examine the importance of eBay's reputation mechanism. We find that, when a seller first receives negative feedback, his weekly sales rate drops from a positive 5% to a negative 8%; subsequent negative feedback ratings arrive 25% more rapidly than the first one and don't have nearly as much impact as the first one. We also find that a seller is more likely to exit the lower his reputation is; and that, just before exiting, sellers receive more negative feedback than their lifetime average. Ramon Casadesus-Masanell – Joan E. Ricart “From strategy to business models and on to tactics”, Long Range Planning, Vol. 43, No 2-3, April/May 2010, pages 195-215. Abstract: Strategy scholars have used the notion of the Business Model to refer to the ‘logic of the firm’ e how it operates and creates value for its stakeholders. On the surface, this notion appears to be similar to that of strategy. We present a conceptual framework to separate and relate the concepts of strategy and business model: a business model, we argue, is a reflection of the firm’s realized strategy. We find that in simple competitive situations there is a one-to-one mapping between strategy and business model, which makes it difficult to separate the two notions. We show that the concepts of strategy and business model differ when there are important contingencies on which a well-designed strategy must be based. Our framework also delivers a clear distinction between strategy and tactics, made possible because strategy and business model are different constructs. Newsletter Research Division Strategy scholars have used the notion of the Business Model to refer to the ‘logic of the firm’ e how it operates and creates value for its stakeholders. On the surface, this notion appears to be similar to that of strategy. We present a conceptual framework to separate and relate the concepts of strategy and business model: a business model, we argue, is a reflection of the firm’s realized strategy. We find that in simple competitive situations there is a one-to-one mapping between strategy and business model, which makes it difficult to separate the two notions. We show that the concepts of strategy and business model differ when there are important contingencies on which a well-designed strategy must be based. Our framework also delivers a clear distinction between strategy and tactics, made possible because strategy and business model are different constructs. Newsletter Research Division