John M. Mezias

A Resource-based View of Strategic Alliances and Firm Value in the Electronic Marketplace

This study relies on the resource-based view to examine how alliances of e-commerce firms affect firm value in an emerging business sector. Using an event study method, we investigate 272 alliances of 69 e-commerce firms. Our findings show that alliances of e-commerce firms in general have a positive effect on firm value. Unlike previous studies of alliances, we find that marketing alliances generate significantly greater firm value than technology alliances. Our results also show that alliances with other e-commerce partners do not have a significantly different effect on firm value than alliances with bricks-and-mortar partners. Implications and avenues for future research are discussed.

Changing Collective Cognition: A Process Model for Strategic Change

Abstract Firms face increasing pressures to modify their strategies and adjust to rapidly changing environmental threats and opportunities. Yet strategic reorientations are difficult to achieve, especially as most methods fail to recognize the cognitive aspects of change. While some methods such as facilitated workshops have become increasingly popular to help top management teams better facilitate strategic change, these have largely evolved on the basis of successful experience rather than on an understanding of cognitive processes. This paper seeks to fill this gap, by drawing both upon theoretical literature and experience with successful change facilitation practices from Europe and the US. Its focus is on the cognitive aspects of strategic orientation and provides a practical guide to those who use this process.

How to identify liabilities of foreignness and assess their effects on multinational corporations

This article examines the liabilities of foreignness construct and discusses key methodological and research design issues facing liability of foreignness researchers. After reviewing past studies and more recent liabilities of foreignness research, I discuss definitional issues related to this construct. I then present a two-part research framework designed to first help identify a specific liability of foreignness in a focal country, and then help identify factors that minimize the effects of that specific liabilities of foreignness. I also discuss multinational management issues at the corporation level that likely affect liabilities of foreignness experienced at the foreign subsidiary level.

Diseconomies of Managing in Acquisitions: Evidence from Civil Lawsuits

The difficulties of managing and coordinating operations as firms expand are expected to increase disproportionately with firm size. If firms face such diseconomies of managing, then acquisitions should make the combined entity more difficult to manage than the two entities operating independently. To document the existence of diseconomies of managing in acquisitions, we examine the change in civil lawsuit judgments involving acquired firms pre-and postacquisition. Civil lawsuit judgments can capture breakdowns in management oversight that cause firms to take actions that a prudent firm would not take or fail to take actions that a prudent firm would take. We find that acquired entities face a significant increase in lawsuit judgments postacquisition. We describe why our findings provide evidence of diseconomies of managing and highlight why managerial diseconomies should be an important consideration when managing or examining acquisition strategies.

Country level corruption as a liability of foreignness: effects on staffing, incentives, and activities

Past research examining country-level corruption found that corruption reduces foreign direct investment. However, this research lacks implications for multinational corporations considering operating in high corruption countries. Recent international research has examined subsidiary challenges beyond initial investment decisions, but has not addressed operational challenges posed by corruption. Research investigating country-level corruption as a liability of foreignness (LOF) is needed because this theoretical perspective specifically examines mechanisms for managing and controlling subsidiaries. This paper utilizes the LOF perspective, integrating learning, international human resource management, and agency theories, to understand how corruption affects subsidiary adaptation strategies.

Effects of functional focus on bounded momentum: Examining firm- and industry-level alliances

Building on strategic momentum and alliance studies, we theoretically explain and test the non-monotonicity of the alliance momentum of same- or cross-functional-type alliances. We theorize about critical drivers that generate bounded momentum and further argue whether function-specific momentum occurs sequentially or simultaneously. We examine cross-border alliances of 32 international airlines from 1945 to 1994 and find that the inverted U-shaped pattern of alliance momentum holds for same-type but not for cross-type alliances at both the firm and industry levels. These findings imply that alliance momentum with a specific functional focus evolves sequentially rather than simultaneously.