New Article Published in the Journal of Management Studies 45(3): 530-560

Disentangling alliance management processes: Decision making, politicality, and alliance performance

Jorge Walter*, Christoph Lechner**, & Franz W. Kellermanns***

* Portland State University, ** University of St. Gallen, *** Mississippi State University

Using a sample of 106 organizations engaged in strategic alliances, we develop and test a framework of alliance-related organizational decision-making processes and their impact on alliance performance. With regard to direct effects, our results show a negative impact of decision-making recursiveness and no significant relationship for openness and procedural rationality. Acknowledging the importance of the organization’s micropolitical context in which these decision processes are embedded, we also test the moderating influence of politicality. Our findings provide support for our hypotheses that in a context of low politicality, the decision-making characteristics of openness and procedural rationality have a positive influence, whereas recursiveness negatively affects alliance performance. In a context of high politicality, however, openness and procedural rationality exert a negative influence, and the negative impact of recursiveness is aggravated. We suggest that alliance-related decision making cannot be adequately understood without explicitly considering the micropolitical context in organizations.

Keywords: Strategic alliances, alliance performance, alliance-related decision-making processes, politicality.

For a copy of the article, please see here or contact me directly.

My co-author Daniel Levin (Rutgers) has presented our new working paper “Dormant ties: The value of reconnecting” (co-authored with Keith Murnighan at Kellogg) at Purdue University (on February 19) and the University of Kentucky (on March 18).

We received a lot of valuable feedback to incorporate into our paper before submitting it to a journal by early summer, so thanks to all seminar participants!

This year’s Strategic Management Society’s Annual International Conference with the title "The Challenges of Non-Market Influences on Market Strategies" is taking place October 14-17 in San Diego, CA. My co-authors and I are scheduled to present our paper:

"Friend Or Foe? Corporate Control And Strategic Decision-Making Speed At The SBU Level" with Maximilian Kownatzki (Mercer Management Consulting) and Christoph Lechner (University of St. Gallen).

For more information on the conference, check out their website.

My co-authors and I have received an invitation to the 2007 Society of Entrepreneurship Scholars Conference.

Included in the conference program is a Manuscript Boot-Camp, where we will present the paper:

• “Empirical validation of resource-evaluation frameworks: A judgment analysis perspective,” with Benedict Kemmerer (BSH Bosch und Siemens Hausgeraete GmbH), Franz W. Kellermanns (Mississippi State University), and V.K. Narayanan (Drexel University).

The conference will take place August 16-19 at Ohio State University, Columbus, OH, and Franz will present the paper on our behalf.

New Article Published in the Journal of Business Research 60: 698-710

Knowledge Transfer Between and Within Alliance Partners: Private Versus Collective Benefits of Social Capital

Jorge Walter*, Christoph Lechner*, & Franz W. Kellermanns***

* Portland State University, ** University of St. Gallen, *** Mississippi State University

This article examines the process through which multilevel network structures translate into knowledge acquisition from alliance partners. The degree of knowledge transfer a multidivisional company achieves from its network of alliance partners is determined not only by the organization’s external network structure, but also by the structure of relationships among its business units. By distinguishing two perspectives on the distribution of social capital’s benefits – private versus collective – this article’s approach
reconciles the competing views on what types of network structures create social capital, that is, the brokerage and closure views of the social network literature. Private benefits of brokerage and centrality are more beneficial in interfirm networks, whereas collective benefits provided by network closure and low levels of centralization are more beneficial in intrafirm networks.

Keywords: Inter- and intrafirm networks; knowledge transfer; social capital; strategic alliances

For a copy of this paper, see here.

In 2007, the Academy of Management Annual Meeting will be hosted by my wife’s beloved hometown Philadelphia, PA. Under the conference theme “Doing well by doing good”, we will present our paper:

• “What’s in a tie? Knowledge transfer and the dimensions of dyadic social capital” with Daniel Z. Levin (Rutgers University) & Melissa M. Appleyard (Portland State University).

The conference will take place August 3-8, 2007. For more information, check the AOM website.

This trip also offers an opportunity to visit my old friend Florian, who is currently holding a postdoctoral position at the University of Pennsylvania, and his wife Andrea during the last 4 months of their stay in this fantastic city.

This year’s Strategic Management Society’s Annual International Conference with the title “Strategy and Governance in a World of Institutional Change” took place October 29 – November 1 in Vienna, Austria. Together with my co-authors I presented the paper:

• “Organizational structure and corporate entrepreneurship: A simulation model” with Dirk Martignoni (University of St. Gallen) & Franz W. Kellermanns (Mississippi State University).

For more information on the SMS Conference, visit their website.

This year’s Academy of Management Annual Meeting with the title “Knowledge, Action and the Public Concern” took place August 11-16 in Atlanta, GA. Although I could not participate due to my wedding in Philadelphia, my co-authors presented our paper:

• “To agree or not to agree? A meta-analytical review of strategic consensus and performance” with Franz W. Kellermanns (Mississippi State University), John C. Shaw (Mississippi State University), Christoph Lechner (University of St. Gallen), & Steven W. Floyd (University of Connecticut).

After a great year at the University of Connecticut, I am excited to start my tenure-track position as Assistant Professor at Portland State University’s School of Business Administration. From September 2006, I will teach the undergraduate capstone course in strategic management and pursue my research projects in this fantastic West Coast city.

I am very glad to announce that my mentor at the University of St. Gallen, Christoph Lechner, and my mentor at the University of Connecticut, Steven W. Floyd, won the prestigious Strategic Management Society (SMS) Best Conference Paper Prize for their paper:

“The role of authority, justification, and coalition-building in strategic renewal.”

Congratulations also from my side for this tremendous achievement!

In spite of the hurricane “Wilma”, this year’s Annual International Meeting of the Strategic Management Society took place in the Walt Disney World Resort in Orlando, FL. The theme for this year was “Strategic Management Achievements & Opportunities”.

Together with my co-authors, I presented two papers there:

• “Strategic decision-making at the firm and alliance level: An empirical study” with Franz W. Kellermanns (Mississippi State University), and
• “Motives and outcomes of technology licensing: An exploratory study of the
  pharmaceutical and computer industries” with Melissa A. Schilling (New York University).
  

For more information on the SMS Meeting, visit their website.

New Article Published in the Journal of Management 31(5): 719-737

The Lack of Consensus About Strategic Consensus: Advancing Theory and Research

Franz W. Kellermanns*, Jorge Walter**, Christoph Lechner***, & Steven W. Floyd**

* Mississippi State University, ** University of Connecticut, *** University of St. Gallen

The purpose of this article is to describe the theoretical and methodological reasons for the inconsistent findings on the value of strategic consensus. This analysis suggests the need for (a) definitions of consensus that align the locus and content of agreement with the study context and theoretical premises; (b) measures of consensus that take account of locus as well as differences in how the content of strategy is perceived by top-, middle-, and lower-level managers; (c) research designs wherein assumptions about the locus and content of consensus govern the choice of antecedents; and (d) more consistent use of moderators.

Keywords: Strategic consensus; consensus decision making; strategic decision making

For a copy of this paper, see here.

After my year as postdoc at New York University’s Stern School of Business, I have accepted a one-year appointment as assistant professor in residence at the University of Connecticut’s School of Business. I will be teaching the capstone courses in strategic management at the undergraduate level and the MBA level.

The Academy of Management Annual Meeting took place from August 5-10,
2005, in Honolulu, Hawaii, and featured the theme “A new vision of
management in the 21st century”. For more information about the meeting
see their website.

Together with my co-authors, I presented two papers at this year’s AOM Annual Meeting:

• ‘Resource-based and network-based motives for technology licensing: An exploratory study’, with Melissa A. Schilling (New York University).
• ‘Together or apart? An empirical investigation of decision making within and between alliance partners’, with Christoph Lechner (University of St. Gallen).

From May 11-14, the 42nd Annual Meeting of the Eastern Academy of Management (EAM) takes place in Springfield, MA. This year’s topic is “Managing ethically in times of change.” All the information is on their website.

Christoph Lechner, Franz Kellermanns, and I presented our paper: “Disentangling alliance capability: Managerial decision making in strategic alliances.”

The 2005 Organization Science Winter Conference took place in Steamboat Springs, CO. I presented our paper:

“Disentangling alliance capability: Managerial decision making in strategic alliances,” co-authored with Christoph Lechner & Franz Kellermanns.

And yes, we did go skiing as well. And it was great, although it was Erin’s first time…

The 2004 SMS Annual International Conference took place in San Juan, Puerto Rico.

My colleagues Christoph Lechner, Franz Kellermanns, and I presented our paper, “Strategic decision making in an uncertain environment: The case of learning alliances in high-tech industries.”

I am happy to announce that our paper was nominated for the Strategic Management Society Best Conference Paper Price.

Strategic decision making in an uncertain environment: The case of learning alliances in high-tech industries

Jorge Walter*, Christoph Lechner*, & Franz Kellermanns**

* University of St. Gallen, ** Mississippi State University

Alliance-related strategic decision making within an organization is of paramount importance for the benefits of its strategic collaborations to materialize. In this paper, we empirically examine the strategic decision-making processes within firms related to their strategic alliances as a subgroup of effective alliance management. Specifically, we argue that the decision-making process characteristics rationality, speed, flexibility, and politicality within an organization significantly influence the performance of a firm’s strategic alliances. Our empirical findings from 106 European high-tech firms engaged in strategic alliances largely confirm our argument that a rational-comprehensive and fast decision-making style – in contrast to a more flexible, incremental style – is the appropriate response to the challenges of strategic decision making with respect to collaborative agreements in dynamic industries. Contrary to our expectations, however, this approach has to be balanced with a certain level of decision-making politicality to promote necessary changes and free blocked decisions.

Keywords: Strategic alliances, decision-making processes, organizational learning.

Financed by a full scholarship from the German Research Foundation, I will spend a year as a postdoctoral researcher at the Stern School of Business, New York University. Besides being thankful for this tremendous opportunity at this prestigious institution, I am looking forward to spending a year in arguably the most exciting city of the world. And all this with Erin by my side…

From August 6-11, 2004, the Academy of Management (AOM) Annual Meeting took place in New Orleans, LA. This year’s theme was “Creating Actionable Knowledge”. For more information on the conference visit the AOM website.

From May 12-15, the 41st Annual Meeting of the Eastern Academy of Management took place at Providence, RI. This year’s theme revolved around Organizational Wisdom: Human, Managerial, and Strategic Implications. We presented the following paper:

Kellermanns, F. W., Lechner, C., Walter, J., & Floyd, S. W. “The ‘lack’ of consensus in strategic consensus research: A future research agenda.”

The Strategic Management Society’s (SMS) annual conference will be held November 9-12 in Baltimore, Maryland. This year’s title is “Intersections: Strategy Across Conventional Boundaries”. SMS is the premier organization for strategy professionals worldwide, and its annual meeting is attended by academic, business, and consulting leaders.

From August 1-6, 2003, Seattle hosts the 63rd Annual Meeting of the Academy of Management (AOM). As a professional association dedicated to creating, applying and disseminating knowledge about workers, management, and organizations, this annual meeting brings the AOM community together, which consists of 12,612 members from 82 nations.

Together with my colleague Christoph Lechner, I presented our paper: “Configurations of inter- and intrafirm networks and their impact on alliance performance.”

Equipped with a full scholarship from the Swiss National Fund, I will spend a
year as a visiting doctoral student at the Wharton School, University of Pennsylvania, in Philadelphia, PA. In addition to attending doctoral seminars and research presentations at one of the world’s most prestigious academic institutions, I also intend to finish my dissertation during that time frame.

I am looking forward to spending a year in this vibrant city with its cultural, historical, and culinary experiences. So if you happen to be in the area, don’t forget to contact me.