This study extends research into the determinants of executive commitment to the strategic status quo (CSQ) by examining the effects of functional and educational experience. Regression analyses conducted on the survey responses of 1385 executives representing 20 different nationalities reveal that experience in the traditionally dominant career tracks of finance, marketing, law, and general management is positively related to CSQ. Results further suggest that while functional diversity is negatively related to commitment to extant policies, graduate (MBA) education is unrelated to CSQ and does not significantly attenuate the narrowing effects of functional specialization. Implications for executive leadership, management development, and strategic adaptation are discussed.

Provided in Cooperation withAbstract: Since the demise of apartheid in South Africa, corporations have been encouraged to participate in the governmental goal of increasing corporate ownership by the black majority population. One vehicle that has arisen to help facilitate an increase in corporate ownership has been black economic empowerment (BEE) transactions. BEE transactions are essentially private placements of equity. Firms that have taken this socially activist position of selling portions of their equity, usually at a substantial discount, to black empowerment groups have received positive media attention in the name of "good corporate citizenship."This study investigates the market performance of these BEE transactions, specifically addressing three questions. The first question is whether BEE transactions create or destroy wealth. To address this question we use an event study methodology to calculate the cumulative abnormal returns (CARs) associated with public announcements of BEE transactions. The second question is whether specific types of BEE transactions did better or worse than others. We address this question by analyzing the cross-sectional variation in the CARs associated with public announcements of BEE transactions. The third question is whether firms that engage in BEE transactions experience negative post-announcement price performance. This last question is motivated by popular press accounts of the exploitation of black empowerment groups by white-owned South African corporations. To address this question, we test whether BEE transactions have benefited white corporate South Africa at the expense of the participating black empowerment groups.JEL classification: G14, G15, G18, F39

Using behavioral insights from organization theory, this paper examines the significance of the irreversibility of an attacker's competitive move in interfirm competitive interaction. The study suggested that irreversibility is a multifaceted construct that is broadly composed of two dimensions: internal commitment (which is based on organizational inertia) and public commitment (which is based on the degree of publicity or public exposure received). It hypothesized that these two irreversibilities would have opposite effects on competitors' responses. The hypotheses were tested with data on competitive moves and countermoves exchanged by major US airlines. As predicted, the results reveal that internal commitment tended to reduce the likelihood of response, increased the response delay, and decreased the probability that the initial move will be matched; on the contrary, the impacts of public commitment were exactly the opposite. Copyright © 2002 John Wiley & Sons, Ltd.

No abstract

No abstract