Hema A. Krishnan

Acquisition Premiums, Subsequent Workforce Reductions and Post-Acquisition Performance

This study suggests that paying acquisition premiums leads to workforce reductions in the merged firm, which in turn results in poorer post-acquisition performance. This issue is important to scholars and practising managers given the pervasiveness and importance of knowledge and human capital to competitive advantage. In a sample of 174 major related acquisitions completed in the period 1992-98, results show a positive relationship between the premium paid for an acquisition and subsequent workforce reductions, controlling for a number of alternative explanations. Additionally, workforce reduction mediates the negative relationship between premiums and post-acquisition performance. The results suggest that the effects of workforce reductions following large premiums paid for the acquired firm can be detrimental to the interests of the organization. Copyright Blackwell Publishing Ltd 2007.

Supplier Selection Practices among Small Firms in the United States: Testing Three Models

One of the issues investigated in recent studies on small business enterprises involves the role of supply chain management. Supply chain management has become an important part of strategic planning in both large and small businesses in the 1990s as firms increasingly choose outsourcingas an externally‐driven strategic growth path. This study examines the supplier selection practices among 78 small business executives in the midwest United States by testing three models: rational/normative, external control, and strategic choice. Although the results show support for all three models, the rational/normative model emerges as the most significant model for predicting the supplier selection practices of small firms.

The impact of work force reduction on subsequent performance in major mergers and acquisitions: an exploratory study

Abstract Several large firms in Corporate America in the 1990s have engaged in a major merger or acquisition with a firm in the same industry. One of the main motives behind such combinations is to create synergies by consolidating the activities in the two firms. Consolidation often involves work force reduction in the two firms. Yet, no research has examined whether such work force reduction results in superior performance. The results of this study reveal that work force reduction has an adverse impact on performance in the consolidated organization. Additionally, work force reduction in the acquired firm and work force reduction in the acquiring firm is also, separately, negatively related to post-acquisition performance.

An Empirical Investigation of the Scope of a Firm's Enterprise Strategy

This article investigates the scope of a firms enterprise strategy which is defined as the range of stakeholder satisfaction realized by a firm at a particular point in time. We found that prior profitability and several of the firms grand strategies were correlated with enterprise strategy scope. Furthermore, environmental munificence was found to have a curvilinear relationship with enterprise strategy. Overall, this study refined and extended our understanding of enterprise strategy and stakeholder management.

Effects of hospital mergers and acquisitions on prices

Abstract This paper examines the price effects of mergers and acquisitions (M&A) in the US hospital industry, which has witnessed considerable consolidation in the 1990s. Using data from 113 hospitals including 20 acquisitions, we compare the change in revenue per patient, operating cost per patient and operating margins for merging hospitals with nonmerging hospitals located in the same market. Results indicate that hospital acquisitions result in increased revenue per patient and increased operating margins compared to nonmerging hospitals but do not result in lower operating costs. These results imply that acquired hospitals increased prices and improved their operating performance.

A study on global supplier selection decision models

It is important to understand supply chain partners’ ‘strategic intent’, particularly in global markets. Strategic intent provides information on potentially controllable strategic dimensions critical in arriving at decisions on global supply chain strategy. Based on past research we would expect supplier selection decision models to vary by country and within a particular country as well. This study examines the effects of industry and executive characteristics on global supply chain partners’ supplier selection decision models. The results show that the criteria used to make supplier selection decisions vary by industry, education and work experience. The resulting supplier selection decision frameworks provide information important for identifying the strategic intent of Korean supply chain partners for US firms.

The Influence of Top Management Team Leadership on Corporate Refocusing: A Theoretical Framework

Refocusing has become one of the major strategies pursued by large organizations in the 1990s. Prior research in the area of upper echelons (top management team) leadership has revealed that there is a strong relationship between top management team characteristics and organizational strategies and outcomes. However, researchers have confined their studies to exploring the impact of observable upper echelon characteristics, namely the demographic traits on corporate strategies and performance. In this study we integrate two main sets of upper echelon leadership characteristics, demographic and psychological traits, and build a theoretical framework to study their impact on corporate refocusing.

Understanding Chinese suppliers: dragon vs. eagle

Corporations increasingly pursue avenues for employing the manufacturing prowess of China and managing strategic alliance and supply networks with Chinese partners. While most studies addressing global cooperative strategies such as strategic alliances and supply networks analyse organisational and industrial characteristics, few theories incorporate explanations for cross-cultural differences between US and Chinese supply chain assessment practices. Without analyses of individual differences among executives in different cultures, theories on managerial decision-making in global cooperative strategies remain incomplete. This study is an attempt to better understand Chinese executives supply chain assessment practices.

Understanding Sex Differences in Leadership Behavior

Two streams of argument regarding sex differences in leadership behavior have been evolved. One group of researchers has reported sex differences in leadership behavior whereas the other group has reported no differences. To resolve this issue, more studies are required. Attempting to better understand this issue, the current study examines the previous and current theories and explains the implication of macro-micro linkages in organizational research for studying sex differences in leadership behavior.

ARE COMPLEMENTARY MANAGEMENT TEAMS SIMILAR OR DIFFERENT? THE IMPACT OF MANAGERS' FUNCTIONAL BACKGROUNDS ON POST-ACQUISITION CORPORATE PERFORMANCE.

This paper examines the impact of functional background difference between the top management teams of the acquiring firm and acquired firm on pos-acquisition corporate performance. While differences in functional backgrounds had a positive impact on performance in related acquisitions, there was no such relationship in unrelated acquisitions.