Timothy B. Palmer

Decoupling risk taking from income stream uncertainty: A holistic model of risk

This paper builds and tests a holistic model of risk in organizations. Using structural equations modeling, we disaggregated risk into two distinct components, managerial risk taking and income stream uncertainty, or organizational risk. This allowed us to identify an array of organizational and environmental antecedents that have either been examined in isolation or neglected in previous studies about risk. Our results suggest that both organizational and environmental factors promote risk taking. Further, we found strong support for behavioral theory of the firm and agency theory on risk but not upper echelons theory. Our data also suggest that environmental characteristics have a negligible direct effect on organizational risk. Instead, the environment’s impact on risk occurs primarily through managerial choices. Copyright

The Application of DICTION to Content Analysis Research in Strategic Management

DICTION is a computer-aided content analysis program grounded in a number of theoretical bases in linguistic research. DICTION has a number of attractive features that could be used to analyze unique elements of language in narrative texts germane to strategic management research. The authors apply the DICTION software to a sample of mission statements from 408 Association to Advance Collegiate Schools of Business colleges of business with a focus on gaining insights concerning how DICTION can be used in strategic management research utilizing content analysis. They find significant differences in word usage in mission statements based on organizational characteristics, including business school performance. They conclude with suggestions for future research.

The Role of Sampling in Strategic Management Research on Performance: A Two-Study Analysis

Strategic management researchers often note the inability of many phenomena to consistently explain organizational performance. Using a two-study format, we examine the possibility that sampling practices may contribute to this inability. We chronicle sampling practices within 437 studies investigating the determinants of organizational performance published between 1980 and 1999 in the Academy of Management Journal, Administrative Science Quarterly, Journal of Management, Organization Science, and Strategic Management Journal. Our results reveal that fewer than one in five studies rely on a random sample and that researchers offer little a priori acknowledgement of sample limitations. Although the first study suggests that sampling issues have been problematic, it cannot offer direct evidence. Thus, in the second study, we examine the effect of sample selection on empirical results by testing one popular relationship from the strategy literature (chief executive officer duality and performance) using fou...

Strategic Responses to Poor Organizational Performance: A Test of Competing Perspectives

Two widely cited, yet disparate, theoretical views of the relationship between poor performance and subsequent organizational action appear in organizational research. The behavioral theory of the firm posits that poor performing organizations will make strategic changes in, for example, the products and services they offer. In contrast, the threat-rigidity perspective predicts rather conservative responses; poor performers are expected to rely on previous actions to reverse their poor outcomes. We examined these competing predictions using data from a regional sample of hospitals. The results offer support for the behavioral theory of the firm and no support for threat-rigidity. We derive several implications from these findings in an effort to guide future research.

Organizational performance referents: An empirical examination of their content and influences

Although the mechanisms by which individuals make judgments about personal success have been studied extensively, theoretical and empirical development of performance referents in organizations has been sparse. To address this shortfall, we utilized a two-study design to explore performance referents used by CEOs along with characteristics influencing referent orientation (internal vs. external). Referent use was identified through content analysis of 119 CEO annual shareholder letters in the restaurant industry. Results suggest that CEOs use a wide variety of primarily internal referents to assess performance. CEOs who integrate external referents into their performance sensemaking efforts tend to be from larger and more highly performing organizations. Post hoc analysis revealed that CEOs of larger and younger organizations used a higher percentage of external referents.

MULTI-LEVEL INFLUENCES ON FIRM PERFORMANCE: INSIGHTS FROM THE RESOURCE-BASED VIEW AND STRATEGIC GROUPS RESEARCH

The resource-based view of the firm and strategic groups research are two of the most investigated frameworks in strategic management. Historically, assumptions behind these two views have seemingly put them at odds. The resource-based view of the firm argues that sustained competitive advantage is best attained when firms have unique resources, while strategic groups research argues that a number of firms within the same industry can achieve sustained profitability with strategies that are similar to one another, but distinct from other industry members. The two views focus on different levels of analysis and each largely ignores the other’s focal level. Yet neither offers any propositions that are incompatible with the tenets of the other. Thus, conceptual integration that crosses levels of analysis is possible and potentially fruitful. Indeed, some strategic groups research has begun to bridge the gap between these two theories by suggesting that firm differences exist both within and between strategic groups. This article adopts a multi-level view by developing propositions concerning contingencies when firm differences, group processes, or both may lead to sustained competitive advantage. Implications for practitioners as well as suggestions for future theory building and empirical tests are also discussed.

The role of performance referents in health services organizations

Health care executives rely on a variety of information sources to evaluate organizational performance. This is because outcomes take on meaning only when compared to referents, or standards of comparison. Although performance referents are widely acknowledged to be important, consideration of their relevance to health services management has been minimal. To address this need, we draw on organizational theories and observations from health services organizations to describe the use of performance referents and to provide insights about the possible effects of performance referent selection on strategic choices and performance.

The sustainable company: looking at goals for people, planet and profits

Purpose This paper aims to explore the landscape of sustainability goals set by large firms. Design/methodology/approach Sustainability reports were content analyzed using the triple bottom line framework. Findings This study identified 389 goals among 22 firms. The most common goals focused on the natural environment. On average, the firms list 18 sustainability goals. These included an average of eight “planet” goals, seven “people” goals and three “overarching” goals. Practical implications This research should be useful to sustainability professionals who are setting goals for their firms and seek to understand the current landscape of goals set by large firms. Originality/value Although previous research has analyzed the content of sustainability reports, this is the first paper to explore sustainability goals. Given the importance of goal setting in strategic management, this paper fills an important gap in the intersection between sustainability and strategy.

FACING UP TO A MESO PERSPECTIVE: RESEARCH ISSUES FOR TESTING FIRM AND STRATEGIC GROUP INFLUENCES ON PERFORMANCE

The commentaries offered by Professors Joyce and Michael on our chapter, “Multilevel influences on firm performance: Implications from the resource-based view and strategic groups research,” provide a number of suggestions for incorporating levels of analysis into studies of firm performance. In this rejoinder to their comments, we note the need to include managers’ cognitions in studies, emphasize the role of theory in studying strategic groups, describe the value of creating conceptual clarity regarding strategic groups, and offer suggestions for studies that might emanate from the ideas in the commentaries in juxtaposition to our original work.

Learning Goals of AACSB-Accredited Undergraduate Business Programs: Predictors of Conformity Versus Differentiation

Learning goals are central to assurance of learning. Yet little is known about what goals are used by business programs or how they are established. On the one hand, business schools are encouraged to develop their own unique learning goals. However, business schools also face pressures that would encourage conformity by adopting goals used by others. The authors examined the extent to which learning goals of business programs are unique versus similar. Their evidence suggests business schools adopt goals that are quite similar. Public schools and lower ranked schools were more likely to demonstrate such conformity. The implications of goal similarity are discussed for management education and assurance of learning.