Essays on Interorganizational Relationships and Corporate Strategies

Download or read book Essays on Interorganizational Relationships and Corporate Strategies written by Pawinee Changphao and published by . This book was released on 2016 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays on the theme of business strategies in different settings. The first essay examines firms’ strategies during a recall crisis, and the last two essays investigate the direct and indirect effects of interorganizational relationships on a firm’s performance. While the first two essays employ signaling theory, the last essay draws on a resource-based view and relational perspective to develop arguments. Overall, I aim to contribute to the literature on strategic management by examining a firm’s strategies and interorganizational relationships. In the first essay (Chapter 2), I examine the phenomenon of product recalls in the biopharmaceutical industry, and the effect on a firm’s performance, measured by the duration of time for a firm to recover its financial losses. Drawing from signaling theory, I investigate how well a firm’s recall strategies (proactive and passive) manage recall crises, and how different levels of recall severity affect recovery times following recalls. I also examine how a firm’s reputation moderates the above-mentioned relationships. My second essay (Chapter 3) explores the impact of acquisitions between pharmaceutical firms acting as acquirers and new biotech firms (NBFs) acting as targets on the market value of a given target’s rivals which are also NBFs. Using signaling theory, I argue that acquisitions send a positive signal of becoming acquisition targets for rival NBFs who are in alliance with pharmaceutical firms (allied NBFs), creating positive abnormal returns for allied NBFs. These returns are strengthened if the acquirer has greater acquisition experience; however, these positive market responses are attenuated with increasing time spent in the alliance. The increasing number of allied NBFs participating in the alliance with the same partnering pharmaceutical firm mitigates market returns. In my third essay (Chapter 4), I investigate an integrative view of the duration of the joint venture. I use the resource-based view and relational perspective to investigate how resources complementarity between firms and their venture partners affect the duration of a joint venture. I also study how relational perspective (reflected through firm’s centrality) influences the life span of the ventures. I then explore the joint venture duration consequences of the interactions of resource complementarity and firms centrality.