Demand‐side strategy, relational advantage, and partner‐driven corporate scope: The case for client‐led diversification

Mawdsley, John; Somaya, Deepak

doi:10.1002/smj.2788

Cited by 52 publications

(32 citation statements)

References 114 publications

(246 reference statements)

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“…If employees have many ties to organizational members at entry, they may have less incentive to build new and beneficial connections outside their existing network. At the firm level, strategy research has also underlined the value of relational capital (e.g., Elfenbein & Zenger, ; Hoetker, ; Uzzi, ) and more recently has explored how a firm's existing relationships influence its strategic decisions (Mawdsley & Somaya, ). A possible generalization of our hypothesis may be that a firm's existing relational capital may limit how much a firm is influenced by proximate firms.…”

Section: Resultsmentioning

confidence: 99%

Prior ties and the limits of peer effects on startup team performance

Hasan

Koning

2019

Strategic Management Journal

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Research Summary We conduct a field experiment at an entrepreneurship bootcamp to investigate whether interaction with proximate peers shapes a nascent startup team's performance. We find that teams whose members lack prior ties to others at the bootcamp experience peer effects that influence the quality of their product prototypes. A 1‐SD increase in the performance of proximate teams is related to a two‐thirds SD improvement for a focal team. In contrast, we find that teams whose members have many prior ties interact less frequently with proximate peers, and thus their performance is unaffected by nearby teams. Our findings highlight how prior social connections, which are often a source of knowledge and influence, can limit new interactions and thus the ability of organizations to leverage peer effects to improve the performance of their members. Managerial Summary Researchers and policymakers believe that accelerators, incubators, and bootcamps help entrepreneurial ecosystems spur innovation and drive startup growth. The effectiveness of these organizations, in large part, depends on the new social interactions fostered among colocated entrepreneurs. Yet, little evidence exists about the extent to which such interactions actually lead to spillovers. We ran a controlled experiment at a startup bootcamp to investigate when entrepreneurs were most affected by their colocated peers. Not everyone benefited. We found that entrepreneurs with many prior ties to others at the bootcamp made fewer new connections, especially to neighboring peers, and thus did not experience significant spillovers. In contrast, those without prior connections experienced the greatest spillovers because they interacted frequently with people on nearby colocated teams. Our findings highlight how organizations like incubators and bootcamps, designed to foster new connections, might sometimes just reinforce old networks.

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Section: Resultsmentioning

confidence: 99%

Prior ties and the limits of peer effects on startup team performance

Hasan

Koning

2019

Strategic Management Journal

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“…To determine whether a patent is related to the battery system, we employed the definitions provided by the World Intellectual Property Organization through the International Patent Classification (IPC) system. The use of IPC for measuring technological knowledge has been widely used in previous research (Borgstedt, Neyer, & Schewe, ; Mawdsley & Somaya, ; Wu & Mathews, ). We manually tracked and read the definitions of each patent's IPC subclasses to determine their relevance to the battery system.…”

Section: Methodsmentioning

confidence: 99%

Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

2019

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To investigate under what conditions an outsourcing strategy can show superior environmental performance, one stream of scholars has underscored the importance of prior green innovation experience, and another stream of scholars has underscored the importance of the in‐house possession of outsourced component knowledge. However, the empirical findings regarding the positive role of both scholarly streams when studied separately are mixed and sometimes contradictory. This study bridges these two distinct but related streams and suggests that prior green innovation experience and in‐house knowledge regarding outsourced components play a complementary role in enhancing environmental performance. The U.S. hybrid electric vehicle market lends support to the argument of this study. In so doing, this study increases our understanding of the role of prior green innovation experience and outsourced component knowledge on environmental performance while pursuing an outsourcing strategy. This study also provides guidance for managers and policymakers on how to achieve superior environmental performance in outsourcing.

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“…For example, we show that patterns of work allocation to suppliers can impact their interchangeability and, as a result, the costs of contracting. Our results then help explicate heterogeneous sourcing strategies and demonstrate how the configuration of supplier relationships impacts contracting and governance (Argyres et al, 2020;Chatterji et al, 2019;Mawdsley & Somaya, 2018;Moeen et al, 2013;Sako et al, 2016).…”

Section: Theoretical Implicationsmentioning

confidence: 80%

“…Relational capital is not reducible to individual employees. Rather, supplier firms can use it across multiple transactions (Chatain & Zemsky, 2007;Mawdsley & Somaya, 2018).…”

Section: Supplier Employee Mobility Social Capital and Make-and-bmentioning

confidence: 99%

“…These are important frictions that can limit changes in sourcing modes, and lead to heterogeneous sourcing strategies. Hence, our work is part of an emergent literature that explores the configuration of supplier relationships and their impact on contracting and governance (Argyres, Bercovitz, & Zanarone, 2020;Chatterji, Cunningham, & Joseph, 2019;Mawdsley & Somaya, 2018;Moeen et al, 2013;Sako et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

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When Suppliers Shift My Boundaries: Supplier Employee Mobility and Its Impact on Buyer Firms’ Sourcing Strategy

Chondrakis¹,

Sako

2020

SSRN Journal

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Research summary: Buyer firms respond to supplier employee mobility by reshuffling work among suppliers. However, the extant literature has not considered pluralsourcing firms which can bring work back in-house. In this paper, we develop a governance framework in which buyers engage in a comparative assessment of the costs associated with different sourcing modes following supplier employee mobility. Due to the imperfect transferability of social capital and associated uncertainty, buyers face increased contracting costs when supplier employees move. This prompts plural-sourcing buyers to increase their reliance on insourcing when the costs of adjusting in-house capacity are relatively low and when the costs of switching to alternative suppliers are relatively high. The analysis of data on patent prosecution activities and patent attorney mobility provides support to our theory. Managerial summary: This study provides a decision framework for buyer firms when their suppliers experience employee departures. Buyers may choose to (a) stay with the suppliers suffering employee losses or (b) follow mobile employees to their new suppliers. However, in both cases contracting becomes more

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Demand‐side strategy, relational advantage, and partner‐driven corporate scope: The case for client‐led diversification

Cited by 52 publications

References 114 publications

Prior ties and the limits of peer effects on startup team performance

Prior ties and the limits of peer effects on startup team performance

Innovation shock, outsourcing strategy, and environmental performance: The roles of prior green innovation experience and knowledge inheritance

When Suppliers Shift My Boundaries: Supplier Employee Mobility and Its Impact on Buyer Firms’ Sourcing Strategy

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