Effects of functional focus on bounded momentum: Examining firm- and industry-level alliances

Abstract

Building on strategic momentum and alliance studies, we theoretically explain and test the non-monotonicity of the alliance momentum of same- or cross-functional-type alliances. We theorize about critical drivers that generate bounded momentum and further argue whether function-specific momentum occurs sequentially or simultaneously. We examine cross-border alliances of 32 international airlines from 1945 to 1994 and find that the inverted U-shaped pattern of alliance momentum holds for same-type but not for cross-type alliances at both the firm and industry levels. These findings imply that alliance momentum with a specific functional focus evolves sequentially rather than simultaneously.

Too much of a good thing? An assessment of the effects of competitive and cooperative action repertoires on firm performance

“…First, whereas other studies have suggested curvilinear performance effects as a result of volume or diversity of actions (Jiang et al, 2010;Wuyts and Dutta, 2014), the present findings are consistent with the ABV to suggest both an interactive and curvilinear effect when simultaneously assessing volume and diversity. The findings also align with and extend recent research challenging the typical linear assumptions in prior research (Connelly et al Park et al, 2018) to suggest that, when assessed in a concurrent model, competitive and cooperative actions yield diminishing returns, and these effects are moderated by action diversity for competitive actions. While previous research examining independent competitive and cooperative action repertoires has applied the ABV framework to understand attentional constraints in relation to actions of the firm (Filiou and Massini, 2018;Kilduff, 2019), the present study extends these findings to assess a more holistic model of firm actions by empirically assessing both action types in an integrative model.…”

Renewing Research on Problemistic Search—A Review and Research Agenda

“…For instance, momentum theory suggests that search and change continue, once initiated, even if the performance shortfall is resolved. Momentum theory has received empirical support in the domains of acquisitions (e.g., Amburgey & Miner, 1992;Baum, Li, & Usher, 2000), alliances (Park, Martin, Lee, & Mezias, 2017), and organizational change (see Beck, Brüderl, & Woywode, 2008 for a review). This need not imply that satisficing does not function in problemistic search.…”