Patricia M. Norman

Protecting knowledge in strategic alliances: Resource and relational characteristics

Abstract This study uses survey data to examine factors associated with a firms protection of knowledge from unwanted appropriation by an alliance partner. The findings show that a firm tends to be more protective when the capabilities it contributes to the alliance are highly tacit and core, when its partner has a higher learning intent, and when the firm and its partner have highly similar resources. Higher trust in a partner tends to reduce knowledge protection.

Knowledge acquisition, knowledge loss, and satisfaction in high technology alliances

Abstract Drawing on the organizational learning and transaction cost economics (TCE) literature, this study examines how learning intent, opportunities to learn, and a firms ability to learn facilitate or hinder three alliance outcomes: knowledge acquisition by the focal firm, knowledge loss to the partner, and alliance satisfaction. The research model proposes that firms attempt to influence learning opportunities based on a partners intent and ability to learn as well as on the trust the firm has in the partner. A partners learning intent and ability are positively associated with the extent to which a firm protects its own firm-specific knowledge, but they only have significant effects on one alliance outcome, knowledge loss. With more trusted partners, firms are less protective of knowledge and tend to acquire more knowledge, lose less knowledge, and be more satisfied. Equity alliances are associated with lower levels of knowledge loss and higher levels of satisfaction.

Exploring Attributes Of Trustworthiness: A Classroom Exercise

Interest in the topic of trust both within and between organizations has grown greatly in recent years. One key issue to understanding trust and how it can be more effectively fostered is understanding its causes. Based on the 1995 Mayer, Davis, & Schoorman model of trust, this article describes exercises that allow students to inductively discover the importance of a trustee’s ability, benevolence, and integrity to the assessment of trustworthiness. Parallel exercises are described that can be used to teach both trust between people and trust between organizations.

Resources Matter Examining the Effects of Resources on the State of Firms Following Downsizing

Downsizing is a common business management practice. Prior research has examined the financial consequences of downsizing or the impact on individuals remaining in a downsizing organization. Taking a resource-based perspective, this study integrates and extends prior research on downsizing by examining how downsizing influences the relative likelihood that a firm will experience one of three states in the three years following downsizing. Multinomial logistic regression is employed to test hypotheses using a sample of 445 firms that downsized during the period 1995 to 2000. The authors find significant differences in the relative likelihood of Chapter 11 bankruptcy, acquisition, or remaining a nonbankrupt going concern based on the size of the downsizing, firm-level intangible resources, the tangible asset intensity of the firm, and industry-level knowledge intensity. Implications for managers and future research are discussed.

An Exercise to Integrate Strategic and Financial Analysis

Many students ignore or underappreciate the important role that financial and accounting considerations have on the formulation and implementation of realistic and ultimately effective strategies. This article describes an exercise that helps build the ability to integrate strategic thinking with financial analysis. Its purpose is to help students connect financial outcomes to underlying strategic causes. It also demonstrates that financial outcomes are the result of many interdependent actions as well as sometimes uncontrollable external factors. The exercise is designed to be used early in a strategic management course to set the stage for a more in-depth and holistic consideration of later strategic management topics. This exercise involves an analysis of Target Corporation and is appropriate for MBA students.

Posturing your firm for the future: considering environmental uncertainty and managerial sentiment

Purpose All leaders must position their firms for future success. However, not all firms should search for information and craft their strategies in the same way. This paper aims to provide a framework, which suggests that firms should adopt different postures depending on extent of environmental uncertainty and whether leaders are optimistic or pessimistic about their firms’ abilities and futures. Design/methodology/approach This framework was designed by two strategy professors based on both strategy theory and their experience working with and observing firms over many years. Findings The framework’s four postures – versatile (high uncertainty, positive sentiment), inquisitive (high uncertainty, negative sentiment), focused (low uncertainty, positive sentiment), and vigilant (low uncertainty, negative sentiment) – call for different behavior as firms seek to understand environmental trends and take strategic actions. The dangers of each posture are briefly discussed. Originality/value This paper provides a simple framework to help executives better understand how their firms should search for and implement strategic actions for future success.