Jean-Philippe Vergne

The Path of Most Persistence: An Evolutionary Perspective on Path Dependence and Dynamic Capabilities

This paper extends the dynamic capability view and research on organizational path dependence by arguing that path dependence can be a property of capabilities when a contingently-triggered capability path is subject to self-reinforcement (i.e. a set of positive and negative mechanisms that increases the attractiveness of a path relative to others). The paper introduces an evolutionary perspective, which specifies the underlying selection mechanisms of the property of path dependence in internal and external firm environments. This theorization sheds new light on three paradoxes that currently blur the theoretical contribution of path dependence to research at the managerial, organizational, and industry levels: (1) the problematic coexistence of path irreversibility and managerial intentionality; (2) the ambivalent strategic value of lock-in with regard to competitive advantage; and (3) the relative homogeneity in observed dynamic capabilities, despite their (possible) path dependence that should lead to a wider variety of outcomes owing to the presence of contingency. We highlight the contributions of this perspective to strategic management research and evolutionary theories.

Toward a New Measure of Organizational Legitimacy: Method, Validation, and Illustration

Measures of organizational legitimacy fall in three categories, based, respectively, on the observation of code adoption, firm linkages, and media coverage. Such variety reflects the absence of consensus definitions. Because legitimacy involves perceptions of social congruence, the author argues in favor of a perceptual measure based on media content analysis. The author extends existing media-based indicators by offering a multidimensional measure of legitimacy, the raw legitimacy vector (RLV), which accounts for the heterogeneity of perceptions across space and time. The article details a three-step methodology to compute RLV and illustrates its applicability using data on the global defense industry. The author finds strong support for RLV’s factorial, convergent, discriminant, and criterion-related validity and demonstrates that RLV performs better than alternative measures. The paper contributes to research by identifying four stable dimensions of legitimacy (environment, competition, accountability, and transactions), by distinguishing empirically legitimacy and reputation, and by offering a measure suited for international comparison in both legitimate and contested industries.

Buzz Factor or Innovation Potential: What Explains Cryptocurrencies’ Returns?

Cryptocurrencies have become increasingly popular since the introduction of bitcoin in 2009. In this paper, we identify factors associated with variations in cryptocurrencies’ market values. In the past, researchers argued that the “buzz” surrounding cryptocurrencies in online media explained their price variations. But this observation obfuscates the notion that cryptocurrencies, unlike fiat currencies, are technologies entailing a true innovation potential. By using, for the first time, a unique measure of innovation potential, we find that the latter is in fact the most important factor associated with increases in cryptocurrency returns. By contrast, we find that the buzz surrounding cryptocurrencies is negatively associated with returns after controlling for a variety of factors, such as supply growth and liquidity. Also interesting is our finding that a cryptocurrency’s association with fraudulent activity is not negatively associated with weekly returns—a result that further qualifies the media’s influence on cryptocurrencies. Finally, we find that an increase in supply is positively associated with weekly returns. Taken together, our findings show that cryptocurrencies do not behave like traditional currencies or commodities—unlike what most prior research has assumed—and depict an industry that is much more mature, and much less speculative, than has been implied by previous accounts.

Signal Incongruence and Its Consequences: A Study of Media Disapproval and CEO Overcompensation

We draw on the signaling and infomediary literature to examine how media evaluations of CEO overcompensation (a negative cue associated with selfishness and greed) are affected by the presence of corporate philanthropy (a positive cue associated with altruism and generosity). In line with our theory on signal incongruence, we find that firms engaged in philanthropy receive more media disapproval when they overcompensate their CEO, but they are also more likely to decrease CEO overcompensation as a response. Our study contributes to the signaling literature by theorizing about signal incongruence and to infomediary and corporate governance research by showing that media disapproval can lead to lower executive compensation. We also reconcile two conflicting views on firm prosocial behavior by showing that, in the presence of incongruent cues, philanthropy can simultaneously enhance and damage media evaluations of firms and CEOs. Taken together, these findings shed new light on the media as agents of externa...

Correction: Buzz Factor or Innovation Potential: What Explains Cryptocurrencies' Returns?

[This corrects the article DOI: 10.1371/journal.pone.0169556.].