Can Environmental Volatility Be Measured Objectively?

Snyder, Neil; Glueck, William F.

doi:10.5465/256033

Cited by 52 publications

(34 citation statements)

References 8 publications

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“…Pfeffer and Salancik (1978), for instance, empirically validated such a curvilinear relationship between environmental uncertainty and the propensity of firms' managers to adopt joint venture and merger strategies. So, it may very well be that only intermediate levels of environmental volatility induce managers to effect change (Tosi, Aldag and Storey, 1973;Snyder and Glueck, 1982). Accordingly, we propose that:…”

Section: H2: Prior Performance Has a Curvilinear Impact On The Propenmentioning

confidence: 94%

Shifting gears: Enabling change in corporate aggressiveness

Fombrun

Ginsberg

1990

Strategic Management Journal

145

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This paper interprets the corporate strategies of multi‐business firms as patterns in their aggregate deployment of resources to functional uses across businesses. By integrating business and corporate levels in the study of strategy‐making, such a perspective facilitates analyzing aggressiveness in corporate posture as a concept distinct from, but complementary to, competitive strategy and diversification. Changes in aggressiveness, we argue, result from the interplay of two sets of forces: (1) inhibitors that create inertia; and (2) inductors that stimulate redeployments. Specific hypotheses are tested using data drawm from a random sample of 352 firms in ten economic sectors between 1977 and 1984. Results support the view that prior performance and sector volatility have a curvilinear impact on the propensity of firms to change their corporate aggressiveness. Change in corporate posture is significantly inhibited by size and prior resource deployments. However, the inductive forces of prior performance and volatility act to stimulate change.

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Section: H2: Prior Performance Has a Curvilinear Impact On The Propenmentioning

confidence: 94%

Shifting gears: Enabling change in corporate aggressiveness

Fombrun

Ginsberg

1990

Strategic Management Journal

145

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“…We suggest that this measurement cannot completely capture unpredictable changes, and build on the approach of Sharfman and Dean (1991) for measuring technological instability by using the standard error of research and development intensity (Snyder and Glueck 1982;Tosi et al 1973):…”

Section: Measures Of Industry Characteristicsmentioning

confidence: 99%

Strategic alliances by venture capital backed firms: an empirical examination

et al. 2009

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A growing body of literature examines the formation of strategic alliances as an important valueadded role provided by venture capital firms. This paper contributes to this literature by examining two related questions: whether venture capital firms use strategic alliances as a substitute or compliment to capital infusion, and how venture capital firms use alliances to mitigate different types of risk. Results from 2505 venture-backed startups reveal that venture capital firms treat alliance formation as a substitute for capital infusion and that the breadth of the network of syndication partners investing in the startup increases the number of its strategic alliances. We also find intentionality in alliance formation. Specifically, firms operating in industry environments characterized by technical risk are more likely to form alliances with partners capable of mitigating technical risks, and firms operating in environments characterized by market risk are more likely to form alliances with partners capable of mitigating market risk. Our findings lend additional support to the perspective that alliances represent an important mechanism through which venture capital firms add value to their portfolio companies.

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“…This is most concerning with regard to the measurement of planning dimensions, as prior research has indicated subjective measures of environment and performance correlate with objective measures. 16 While content analysis of existing planning documents or the actual observation of planning processes would potentially provide more accurate measures of each dimension, such a methodology is impractical over such a large sample. Moreover, the high internal consistency of all measures (seen in the Cronbach's Alphas in Table 1) attests to the internal validity of our multi-item measures.…”

Section: Study Limitationsmentioning

confidence: 99%