A vast body of literature shows that large, publicly listed firms suffer from managerial short‐termism and inadequate temporal orientation. We study the temporal orientations, measured as the investment horizons, of firms throughout their lifecycles. We build on theoretical arguments from organizational learning theory and agency theory to argue that the relationship between firm age and the investment horizon is quadratic, with an inverted U shape. Using a large sample of publicly listed and privately held European firms, we obtain results consistent with this prediction. Our results support the idea that younger firms gradually learn to use more sophisticated investment decision criteria, thus resulting in longer investment horizons. However, this effect is bounded by changes in governance structure, such as the separation of ownership from control that results from the transition from an owner‐managed status to a professionally managed status. Implications for future research and practice are discussed.
{"title":"Turning 30 and myopic? Temporal orientation and the firm lifecycle","authors":"Vivien Lefebvre","doi":"10.1002/jsc.2553","DOIUrl":"https://doi.org/10.1002/jsc.2553","url":null,"abstract":"A vast body of literature shows that large, publicly listed firms suffer from managerial short‐termism and inadequate temporal orientation. We study the temporal orientations, measured as the investment horizons, of firms throughout their lifecycles. We build on theoretical arguments from organizational learning theory and agency theory to argue that the relationship between firm age and the investment horizon is quadratic, with an inverted U shape. Using a large sample of publicly listed and privately held European firms, we obtain results consistent with this prediction. Our results support the idea that younger firms gradually learn to use more sophisticated investment decision criteria, thus resulting in longer investment horizons. However, this effect is bounded by changes in governance structure, such as the separation of ownership from control that results from the transition from an owner‐managed status to a professionally managed status. Implications for future research and practice are discussed.","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47333506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"New vision and purpose for Strategic Change: Branching out into the future, rooting from our legacy","authors":"A. Caputo","doi":"10.1002/jsc.2552","DOIUrl":"https://doi.org/10.1002/jsc.2552","url":null,"abstract":"","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":"328 1-2","pages":""},"PeriodicalIF":2.8,"publicationDate":"2023-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41288054","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jingyi Lai, Yongqiang Chen, Yuting Chen, Yongcheng Fu
Firms expand vertical boundaries by obtaining ownership of relevant resources. There are three means by which firms can achieve this goal: internal development, mergers and acquisitions (M&As), and equity joint ventures. From transaction cost theory and resource‐based view, this study analyzed how resource characteristics, environmental conditions, and firms' capabilities influence their governance choices by studying 30 cases involving architectural, engineering, and construction firms and employing a fuzzy‐set qualitative comparative analysis method. The findings reveal that all the antecedents jointly influenced firms' governance choices; however, they did so in a way that led to the firms' rejection as opposed to the implementation of one strategy. Firms avoided choosing internal development to circumvent high internal transaction costs or expand into new business rapidly. Firms excluded M&As when the similarity between new and existing resources was high to avoid resource redundancy. When market uncertainty was high, they did so to avoid investment risks. Moreover, when high external transaction costs were evident due to interactions and interdependency between firms and their partners, firms tended to choose a more integrated strategy and excluded equity joint ventures. The research indicates that firms' relational capabilities help them reduce external transaction costs and identify strategies with the lowest efficiency.
{"title":"Make, buy, or ally?—A configurational approach to governance choices in vertical expansion","authors":"Jingyi Lai, Yongqiang Chen, Yuting Chen, Yongcheng Fu","doi":"10.1002/jsc.2550","DOIUrl":"https://doi.org/10.1002/jsc.2550","url":null,"abstract":"Firms expand vertical boundaries by obtaining ownership of relevant resources. There are three means by which firms can achieve this goal: internal development, mergers and acquisitions (M&As), and equity joint ventures. From transaction cost theory and resource‐based view, this study analyzed how resource characteristics, environmental conditions, and firms' capabilities influence their governance choices by studying 30 cases involving architectural, engineering, and construction firms and employing a fuzzy‐set qualitative comparative analysis method. The findings reveal that all the antecedents jointly influenced firms' governance choices; however, they did so in a way that led to the firms' rejection as opposed to the implementation of one strategy. Firms avoided choosing internal development to circumvent high internal transaction costs or expand into new business rapidly. Firms excluded M&As when the similarity between new and existing resources was high to avoid resource redundancy. When market uncertainty was high, they did so to avoid investment risks. Moreover, when high external transaction costs were evident due to interactions and interdependency between firms and their partners, firms tended to choose a more integrated strategy and excluded equity joint ventures. The research indicates that firms' relational capabilities help them reduce external transaction costs and identify strategies with the lowest efficiency.","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2023-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45348914","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Oskar Kowalewski, Aleksandra Majda-Kariozen, Blazej Socha
Abstract We study the role of a company founder in the internal governance of firms. Using a sample of 484 CEO turnovers for 2000–2015, we establish that CEOs are fired for poor performance. However, the likelihood of a poor‐performing founder‐CEO being fired is lower than that of an outsider CEO. Moreover, having a founder as a member of the executive or supervisory board decreases the likelihood that a CEO will be dismissed for poor performance. Similarly, founder ownership may have the same effect on CEO turnover. Finally, being a founder does not guarantee a poor‐performing CEO a chairman position after being fired.
{"title":"Founder involvement in <scp>CEO</scp> turnover","authors":"Oskar Kowalewski, Aleksandra Majda-Kariozen, Blazej Socha","doi":"10.1002/jsc.2547","DOIUrl":"https://doi.org/10.1002/jsc.2547","url":null,"abstract":"Abstract We study the role of a company founder in the internal governance of firms. Using a sample of 484 CEO turnovers for 2000–2015, we establish that CEOs are fired for poor performance. However, the likelihood of a poor‐performing founder‐CEO being fired is lower than that of an outsider CEO. Moreover, having a founder as a member of the executive or supervisory board decreases the likelihood that a CEO will be dismissed for poor performance. Similarly, founder ownership may have the same effect on CEO turnover. Finally, being a founder does not guarantee a poor‐performing CEO a chairman position after being fired.","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135741162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kwame Ohene Djan, S. Nyarko, R. Mersland, Leif Atle Beisland, L. Nakato
{"title":"Influence of international ownership on the performance of local social enterprises: Evidence from the global microfinance industry","authors":"Kwame Ohene Djan, S. Nyarko, R. Mersland, Leif Atle Beisland, L. Nakato","doi":"10.1002/jsc.2536","DOIUrl":"https://doi.org/10.1002/jsc.2536","url":null,"abstract":"","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2023-01-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43106078","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This article presents a literature review and a bibliometric analysis of academic research on COVID‐19 in strategy journals. The research topic is highly relevant considering the importance and the impact of the COVID‐19 pandemic on companies' strategies worldwide and the fact that this pandemic has represented at the same time danger and opportunity for companies. The study comprises a review of 241 articles published in peer‐reviewed journals from 2020 to the first quarter of 2022. Bibliometric and science mapping methods apply indicators identifying the most prominent journals, authors, countries, institutions, and topics. This approach allows a literature review highlighting the importance of five clusters on the COVID‐19 impact on strategy journals: entrepreneurship, innovation, digital transformation, leadership, and resilience. They are strongly interrelated, and this study shows there are still many areas for further research within and outside these clusters. COVID‐19 context offers perfect conditions to test theories and implement new research projects considering the high risk for other events of this type in the future.
{"title":"A systematic literature review and bibliometric analysis of research on COVID‐19 in strategy journals","authors":"Olivier Guyottot, É. Le Fur","doi":"10.1002/jsc.2538","DOIUrl":"https://doi.org/10.1002/jsc.2538","url":null,"abstract":"Abstract This article presents a literature review and a bibliometric analysis of academic research on COVID‐19 in strategy journals. The research topic is highly relevant considering the importance and the impact of the COVID‐19 pandemic on companies' strategies worldwide and the fact that this pandemic has represented at the same time danger and opportunity for companies. The study comprises a review of 241 articles published in peer‐reviewed journals from 2020 to the first quarter of 2022. Bibliometric and science mapping methods apply indicators identifying the most prominent journals, authors, countries, institutions, and topics. This approach allows a literature review highlighting the importance of five clusters on the COVID‐19 impact on strategy journals: entrepreneurship, innovation, digital transformation, leadership, and resilience. They are strongly interrelated, and this study shows there are still many areas for further research within and outside these clusters. COVID‐19 context offers perfect conditions to test theories and implement new research projects considering the high risk for other events of this type in the future.","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46751189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Who are the founders of venture capital‐backed initial public offering companies in the United States?","authors":"Jinjing Zhu","doi":"10.1002/jsc.2537","DOIUrl":"https://doi.org/10.1002/jsc.2537","url":null,"abstract":"","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2022-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45369158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Social and financial performance of microfinance institutions and its drivers: Evidence from\u0000 MENA\u0000 region","authors":"Ines Ben Abdelkader","doi":"10.1002/jsc.2535","DOIUrl":"https://doi.org/10.1002/jsc.2535","url":null,"abstract":"","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2022-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41873631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ihssan Samara, M. Nandakumar, Nicholas O'Regan, H. Almoumani
{"title":"Governance diversity: Its impact on strategic variation and results","authors":"Ihssan Samara, M. Nandakumar, Nicholas O'Regan, H. Almoumani","doi":"10.1002/jsc.2534","DOIUrl":"https://doi.org/10.1002/jsc.2534","url":null,"abstract":"","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":" ","pages":""},"PeriodicalIF":2.8,"publicationDate":"2022-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48712770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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