Table Of Content

STRATEGIC MANAGEMENT YOW NN EDITOR DAN SCHENDEL 2006 Volume 27 JOHN WILEY & SONS ISSN 0143-2095 SMAJD8 27(1-13) 1-1234 (2006) STRATEGIC MANAGEMENT JOURNAL Editor-in-Chief Dan Schendel, Krannert Graduate Schoo! of Management, Purdue University, West Lafayette, Indiana 47907, U.S.A. Associate Editors Will Mitchell Richard A. Bettis The Fuqua School of Business Kenan-Flagler Business School Duke University University of North Carolina Box 90120 Chapel Hill, North Carolina 27599, U.S.A Durham, North Carolina 27708, U.S.A. << Edward J. Zajac F77305 £ pe ooo aH — J. L. Kellogg Graduate School of Management 7 be: il aianat Northwestern University, 2001 Sheridan Road vai Evanston, Illinois 60208, U.S.A. Managing Editor : a Lois Gast xecutive Editor Mary Lou Schendel Krannert Graduate School of Management Purdue University West Lafayette, IN 47907, U.S.A. Email: smjournal @ exchange.purdue.edu EDITORIAL BOARD Jan ee Prashant Kale William T. Robinson Purdue U., U.S.A —— Amit Avii Fiegenbaum Aneel Karnani Alan Rugman Indiana U., U.S.A Jeff Arthur . aunney Finkelstein Robert K. Kazanjian Michael V. Russo U. of Oregon, U.S.A Charles Baden: gaeed Therese Flaherty ; THaar run Khanna HUCaLnAs, SU.cSh.Ao llhammer Seeves Floyd Suresh Kotha Charles Schwenk Vince Barker Portland, OR., U.S.A Tim Folta Da n Kovenock Anju Seth Jay B stat U. of Illinois, U.S.A Charles Fombrun Matthew s ‘Kraatz Scott Shane Pamela Barr Case Western Reserve U James Fredrickson Pegay LL ee Mark Shanley Don Bergh of Illinois-Chicago, U.S.A Charless Galunic Michael Leiblein J. Myles Shaver Arvind Shomieri F U. of Minnesota, U.S.A Pankaj Ghemawat Robert 1 Lenz Stephen M. Shortell a me shaw U. of California, U.S.A Michel Ghertman sree Lieberman Paul Shrivastava Bucknell U., U.S.A Warren Boeker Javier Gimeno JuliaL iebeskind Harbir Singh Wharton, U.S.A Brian Boyd Ari abe penta Madhok Kulwant Singh Utat National U. of Singapore RudiK . F. Bresser Brian Golden Joseph Mahoney Charles C. Snow Penn State, U.S.A Philip Bromiley Rob Grant aneen Makadok J.-C. Spender Open University, U.K Thomas Brush Peter H Grinyer ‘ reser Markides John Stopford »n Busine London Business School, U.K Laura B. Cardinal Ranjay Gulati Anita McGahan Toby Stuart U. of Chicago, U.S.A Laurence ee Williamn Guth Rita McGrath Steve Tallman i U. of Utah, U.S.A Balaa w Donald c Hambrick Hemant ieatinet Raymond-Alain Thietart Pe Fraser ar U. of Paris Dauphine & ESSEC, France mendJ in eee pyri Hamel sHEhC,i nnieCa nMaidal ler& HU. owofa rWadr wicTkh, omUa.Ks Korea U., Kore Stuart Hart _— Miller Beverly Tyler Sayan Chatterjee and L North Carolina State U., U.S.A ase Western Reserve - “Harvey Hegarty inaene Nickerson James P. Walsh prt Jer Chen Wash inator U. of Michigan, U.S.A renee tete Helfat Paul Nutt Birger Wernerfelt Amoid C aaaier Dartmouth College, U.S.A Ohio State U., U.S.A 5 MIT, U.S.A Purdue S.A James esti Joanne Oxley James Westphal Tina Dacin Babson College, U.S.A U. of Michigan, U.S.A U. of Texas at Austin, U.S.A Queen’s U., Canad Jean esienie Hennart Mike Peng Rod White —— S. Day Tilburg U., Netherland U. of Texas at Dallas, U.S.A U. of Western Ontario, Canada arton, U.S.A — J. Hillman Margaret Peteraf Margarethe Wiersema Wayne S. DeSarbo Arizona State U., U.S.A Dartmouth College, U.S.A U. of California, Irvine, U.S.A pPernn oSttahtee, DeUs.Ss. A RALroaizbRoeunaer tS tHaHotoess mkeiU.r,s soU.nS .A NUS. uabnoidf iSnRoiua tnhgReaarnjn a gCaolpifaolrnaian, U.S.A JCDeaefrnnfneeigrsiy e -RYM.ea loWl oinl liU.a, msU .S.A YINvSeEsA D,D ozF rance ehnuen»dmfea rb’i eMidc.hi gan , —U.S .A JIU. eNfSoEffAr De,Nyo rtJhF .r aRCnacereuo elirn a SHU..a rovAfak rMbdia nrnU. e, sZoUat.ahS,e. eA rU .S.A Jeff Dyer David B. peenan Max D. Richards Srilata Zaheer Brigham Yo: l f Texas, U.S.A RollinsU ., U.S.A U. of Minnesota, U.S.A neearesy Eisenhardt aor ten e Peter Smith Ring Carl Zeithami Staanr for rclyde, U.K Loyola Marymount U., U.S.A U. of Virginia, U.S.A Strategic Management Journal, Vol. 27, iii—vii (2006) , / Pe£ reaa ( Contents <2 Volume 27, Issue Nos. 1-13 ISSUE No. 1, January 2006 Stacking the Deck: The Effects of Top Management Backgrounds on Investor Decisions: M. C. Higgins and R. Gulati Agency Hazards and Alliance Portfolios: J. J. Reuer and R. Ragozzino Business Segment Performance Redux: A Multilevel Approach: J. R. Hough Engaging the Inventor: Exploring Licensing Strategies for University Inventions and the Role of Latent Knowledge: A. Agrawal Some Predictors of SMJ Article Impact: D. D. Bergh, J. Perry and R. Hanke ISSUE No. 2, February 2006 Who Competes with Whom? A Demand-Based Perspective for Identifying and Representing Asymmetric Competition: W. S. DeSarbo, R. Grewal and J. Wind Open for Innovation: The Role of Openness in Explaining Innovation Performance among U.K. Manufacturing Firms: F. Laursen and A. Salter Leaders, Laggards, and the Pursuit of Foreign Knowledge: H. Berry Minding Your Distance: How Management Consulting Firms Use Service Marks to Position Competitively: VM. Semadeni RESEARCH NOTES AND COMMENTARIES Disruptiveness of Innovations: Measurement and an Assessment of Reliability and Validity: V. Govindarajan and P. K. Kopalle ISSUE No. 3, March 2006 Rationality, Foolishness, and Adaptive Intelligence: J. G. March A Demand-Based Perspective on Sustainable Competitive Advantage: 9. Adner and P. Zemsky Surviving the Gales of Creative Destruction: The Determinants of Product Turnover: J. M. de Figueiredo and M. K. Kyle Business Relatedness and Performance: A Study of Managerial Perceptions: A. Pehrsson The Presence of a Separate COO/President and Its Impact on Strategic Change and CEO Dismissal: Y. Zhang ISSUE No. 4, April 2006 Predicting the Cost of Environmental Management System Adoption: The Role of Capabilities, Resources and Ownership Structure: N. Darnall and D. Edwards, Jr First Mover Advantages in International Business and Firm-Specific Political Resources: J. G. Frynas, K. Mellahi and G. A. Pigman Is Speed of Integration Really a Success Factor of Mergers and Acquisitions? An Analysis of the Role of Internal and External Relatedness: C. Homburg and M. Bucerius Breakthrough Innovations in the U.S. Biotechnology Industry: The Effects of Technological Space and Geographic Origin: A. Phene, K. Fladmoe-Lindquist and L. Marsh RESEARCH NOTES AND COMMENTARIES Effects of Team Inputs and Intrateam Processes on Perceptions of Team Viability and Member Satisfaction in Nascent Ventures: 1V.-D. Foo, H.-P. Sin and L.-P. Yiong ISSUE No. 5, May 2006 Mutual Commitment to Support Exchange: Relation-Specific IT System as a Substitute for Managerial Hierarchy: S. M. Kim and J. T. Mahoney The Strategic Impetus for Social Network Ties: Reconstituting Broken CEO Friendship Ties: J. D. Westphal, S. Boivie and D. H. M. Chng How Quickly Do CEOs Become Obsolete? Industry Dynamism, CEO Tenure, and Company Performance: A. D. Henderson, D. Miller and D. C. Hambrick The Impact of Empirical Tests of Transaction Cost Economics on the Debate on the Nature of the Firm: R. Carter and G. M. Hodgson Multipoint Competition, Strategic Similarity and Entry into Geographic Markets: L. Fuentelsaz and J. Gomez ISSUE No. 6, June 2006 Do Modular Products Lead to Modular Organizations? G. Hoetker The Effect of the Innovative Environment on Exit of Entrepreneurial Firms: MV. B. Sarkar, R. Echambadi, R. Agarwal and B. Sen De-Commitment to Losing Strategic Action: Evidence From the Divestiture of Poorly Performing Acquisitions: M. L. A. Hayward and K. Shimizu Compensation Strategy: Does Business Strategy Influence Compensation in High- Technology Firms? Y. Yanadori and J. H. Marler A New Perspective on a Fundamental Debate: A Multilevel Approach to Industry, Corporate, and Business Unit Effects: V. F. Misangyi, H. Elms, T. Greckhamer and J. A. Lepine RESEARCH NOTES AND COMMENTARIES Strategic Investments in Japanese Corporations: Do Foreign Portfolio Owners Foster Underinvestment or Appropriate Investment? P. David, T. Yoshikawa, M. D. R. Chari and A. A. Rasheed ISSUE No. 7, July 2006 Technological Diversity, Related Diversification, and Firm Performance: D. J. Miller The Resource-Based Theory: Dissemination and Main Trends: F. J. Acedo, C. Barroso and J. L. Galan Foreign and Domestic Ownership, Business Groups, and Firm Performance: Evidence from a Large Emerging Market: S. Douma, R. George and R. Kabir The Impact of Socialist Imprinting and Search on Resource Change: A Study of Firms in Lithuania: A. Kriauciunas and P. Kale Why Do Some Multinational Corporations Relocate their Headquarters Overseas? J. Birkinshaw, P. Braunerhjelm, U. Holm and S. Terjesen ISSUE No. 8, August 2006 Relation-Specific Capabilities and Barriers to Knowledge Transfers: Creating Advantage Through Network Relationships: J. H. Dyer and N. W. Hatch Strategic Promotion Tournaments and Worker Performance: J. DeVaro SME-Supplier Alliance Activity in Manufacturing: Contingent Benefits and Perceptions: FR. J. Arend Firm Responses to Secondary Stakeholder Action: C. Ees/ley and M. J. Lenox Using Bayesian Methods in Strategy Research: An Extension of Hansen et al.: E. D. Hahn and J. P. Doh ISSUE No. 9, September 2006 Modularity in Organizational Structure: The Reconfiguration of Internally Developed and Acquired Business Units: S. Karim Today’s State-Owned Enterprises of China: Are They Dying Dinosaurs or Dynamic Dynamos? D. A. Ralston, J. Terpstra-Tong, R. H. Terpstra, X. Wang and C. Egri Experience and Scale and Scope Economies: Trade-Offs and Performance in Development: J. 7. Macher and C. S. Boerner Strategy Fit and Performance Consequences of International Marketing Standardization: C. S. Katsikeas, S. Samiee and M. Theodosiou RESEARCH NOTES AND COMMENTARIES Strategizing Industry Structure: The Case of Open Systems in a Low-Tech Industry: X. Lecocq and B. Demil ISSUE No. 10, October 2006 Market Value Effects of Acquisitions Involving Internet Firms: A Resource-Based Analysis: K. Uhlenbruck, M. A. Hitt and M. Semadeni Niche Width Revisited: Organizational Scope, Behavior and Performance: O. Sorenson, S. McEvily, C. Rongrong Ren and R. Roy Presumptive Adaptation and the Effectiveness of Knowledge Transfer: G. Szulanski and R. J. Jensen Product Line Strategies of New Entrants in an Established Industry: Evidence from the U.S. Bicycle Industry: G. Dowell What To Do Next? The Case for Non-Predictive Strategy: R. Wiltbank, N. Dew, S. Read and S. D. Sarasvathy ISSUE No. 11, November 2006 Behavioral Assumptions and Theory Development: The Case of Transaction Cost Economics: FE. W. K. Tsang Social Influence Effects and Managerial Compensation: Evidence from Germany: PG Fass. Balancing Vertical Integration and Strategic Outsourcing: Effects on Product Portfolio, Product Success, and Firm Performance: F. 7. Rothaermel, M. A. Hitt and SIND ae cg re dies Bercy eae nwa nunc ou souh cu debdvesuuwundecavudunavasvsoodacsavueesbvcaCeecedeausie s CEO Incentives, Innovation, and Performance in Technology-Intensive Firms: A Reconciliation of Outcome and Behavior-Based Incentive Schemes: MVM. Makri, P. J. Lane and L. R. Gomez-Mejia Direct and Interaction Effects of Top Management Team and Board Compositions on R&D Investment Strategy: Y. Y. Kor Beyond Dichotomy: The Curvilinear Relationship Between Social Responsibility and Financial Performance: MM. L. Barnett and R. M. Salomon ISSUE No. 12, December 2006 Shareholder Valuation of Foreign Investment and Expansion: H. Berry The Licensing Dilemma: Understanding the Determinants of the Rate of Technology Licensing: A. Fosfuri Entry Timing, Exploration, and Firm Survival in the Early U.S. Bicycle Industry: G. Dowell and A. Swaminathan Internet Companies’ Growth Strategies: Determinants of Investment Intensity and Long-Term Performance: T. R. Eisenmann The Impact of Market Actions on Firm Reputation: D. K. Basdeo, K. G. Smith, C. M. Grimm, V. P. Rindova and P. J. Derfus RESEARCH NOTES AND COMMENTARIES The Moderating Influence of Strategic Orientation on the Strategy Formation Capability—Performance Relationship: S. F. Slater, E. M. Olson and G. T. M. Hult Volume Contents ISSUE No. 13, December 2006 SPECIAL ISSUE Five Year Index Volumes 21-25, 2000-2004 Strategic Management Journal Strat. Mgmt. J., 27: ix—x (2006) a pe ee ( AUTHOR INDEX = Nees Acedo F. J., 621 Foo M.-D., 389 Lane P. J., 1057 Adner R., 215 Fosfuri A, 1141 Laursen K., 131 Agarwal R., 519 Frynas J. G., 321 Lecocg X., 891 Agrawal A., 63 Fuentelsaz L., 477, 1233 Lenox M. J., 765 Arend R. J., 741 Lepine J. A., 571 Galan J. L., 621 Barnett M. L., 1101 George R., 637 Macher J. T., 845 Barroso C., 621 Gomez J., 477, 1233 Mahoney J. T., 401 Basdeo D. K., 1205 Gomez-Mejia L. R., 1057 Makri M., 1057 Bergh D. D., 81 Govindarajan V., 189 March J. G., 201 Beitry’H.; 151, P23 Greckhamer T., 571 Marler J. H., 559 Birkinshaw J., 681 Grewal R., 101 Marsh L., 369 Boerner C. S., 845 Grimm C. M., 1205 McEvily S., 915 Boivie S., 425 Mellahi K., 321 Gulati R., 1 Braunerhjelm P., 681 Miller D., 447 Bucerius M., 347 Hahn E. D., 783 Miller D. J., 601 Hambrick D. C., 447 Misangyi V. F., 571 Carter R., 461 Hanke R., 81 Chari M. D. R., 591 Hatch N. W., 701 Olson E. M., 1221 Chng D. H. M., 425 Hayward M. L. A., 541 Pehrsson A., 265 Darnall N., 301 Henderson A. D., 447 Perry J., 81 David P., 591 Higgins M. C., | Phene A., 369 de Figueiredo J. M., 241 Hitt M. A., 899, 1033 Pigman G. A., 32 Demil B., 891 Hodgson G. M., 46] Derfus P. J., 1205 Hoetker G., 501 Ragozzino R., 27 DeSarbo W. S., 101 Holm U., 681 Ralston D. A., 825 DeVaro J., 721 Homburg C., 347 Rasheed A. A., 591 Dew N., 981 Hough J. R., 45 Read S., 981 Doh J. P., 733 Hult G. T. M., 1221 Ren C. R., 915 Douma S., 637 Reuer J. J., 27 Dowell G., 959, 1159 Jensen R. J., 937 Rindova V. P., 1205 Dyer J. H., 701 Jobe L. A., 1033 Rothaermel F. T., 1033 Roy R., 915 Kabir R., 637 Echambadi R., 519 Edwards D., 301 Kale P., 659 Salomon R. M., 1101 Eesley C., 765 Karim S., 799 Salter A., 131 Egri C., 825 Katsikeas C. S., 867 Samiee S., 867 Eisenmann T. R., 1183 Kim S. M., 401 Sarasvathy S. D., 981 Elms H., 571 Kopalle P. K., 189 Sarkar M. B., 519 Kor Y. Y., 1081 Semadeni M., 169, 899 Piss) P€., 1013 Kriauciunas A., 659 Sen B., 519 Fladmoe-Lindquist K., 369 Kyle M. K., 241 Shimizu K., 541 Author Index Sin H.-P., 389 Terpstra-Tong J., 825 Wiltbank R., 98] Slater S. F., 1221 Theodosiou M., 867 Wind J., 101 Smith K. G., 1205 Tsang E. W. K., 999 Sorenson O., 915 Yanadori Y., 559 Swaminathan A., 1159 Yiong L.-P., 389 Uhlenbruck K., 899 Szulanski G., 937 Yoshikawa T., 59] Terjesen S., 681 Wang X., 825 Zemsky P., 215 Terpstra R. H., 825 Westphal J. D.. Zhang Y., 283 Copyright © 2006 John Wiley & Sons, Ltd Strat. Memt. J., 27: ix—x (2006) DOI: 10.1002/smj