- Volume 36 Issue 1
This paper examines how multiple performance feedbacks influence firm's technological search, using two types of indicators : accounting-based performance and market-based performance. Also we investigate how CEO's attention shift depends on firm specific factors such as firm size and outsider ownership. For empirical analysis, we utilized financial data on 675 manufacturing firms in Korea during the period between 1998 and 2009. The results show that technological search based on accounting-based performance feedback is moderated by focal firm's size. However, as outsider ownership increases, technological search increases in response to market-based performance feedback.
- Audia, P. and H. Greve, "Less likely to fail: Low performance, firm size, and factory expansion in the shipbuilding industry," Management Science, Vol.52, No.1(2006), p.83. https://doi.org/10.1287/mnsc.1050.0446
- Baek, J., J. Kang, and K. Park, "Corporate governance and firm value:evidence from the Korean financial crisis," Journal of Financial Economics, Vol.71, No.2(2004), pp.265- 313. https://doi.org/10.1016/S0304-405X(03)00167-3
- Barnhart, S., M. Marr, and S. Rosenstein, "Firm performance and board composition: Some new evidence," Managerial and Decision Economics, Vol.15, No.4(1994), pp.329- 340. https://doi.org/10.1002/mde.4090150407
- Baysinger, B., R. Kosnik, and T. Turk, "Effects of board and ownership structure on corporate R&D strategy," Academy of Management Journal, Vol.34, No.1(1991), pp.205- 214. https://doi.org/10.2307/256308
- Bromiley, P., "Testing a causal model of corporate risk taking and performance," Academy of Management Journal, Vol.34, No.1 (1991), pp.37-59. https://doi.org/10.2307/256301
- Bushee, B., "The influence of institutional investors on myopic R&D investment behavior," Accounting Review, Vol.73, No.3(1998), pp.305-333.
- Chandy, R. and G. Tellis, "Organizing for radical product innovation:the overlooked role of willingness to cannibalize," Journal of Marketing Research, Vol.35, No.4(1998), pp.474-487. https://doi.org/10.2307/3152166
- Chen, W., "Determinants of firms' backward- and forward-looking R&D search behavior," Organization science, Vol.19, No.4 (2008), p.609. https://doi.org/10.1287/orsc.1070.0320
- Chen, W. and K. Miller, "Situational and institutional determinants of firms' R&D search intensity," Strategic management journal, Vol.28, No.4(2007), pp.369-381. https://doi.org/10.1002/smj.594
- Christensen, C., The innovator's dilemma: when new technologies cause great firms to fail, Harvard Business Press, Boston, 1997.
- Cyert, R. and J. March, A behavioral theory of the firm, Prentice-Hall Inc., New Jersey, 1963.
- Dahlquist, M. and G. Robertsson, "Direct foreign ownership, institutional investors, and firm characteristics," Journal of Financial Economics, Vol.59, No.3(2001), pp.413-440. https://doi.org/10.1016/S0304-405X(00)00092-1
- Greve, H., "A behavioral theory of R&D expenditures and innovations:Evidence from shipbuilding," The Academy of Management Journal, Vol. 46, No.6(2003), pp.685-702. https://doi.org/10.2307/30040661
- Greve, H., "A behavioral theory of firm growth: Sequential attention to size and performance goals," The Academy of Management Journal(AMJ), Vol.51, No.3(2008), pp.476- 494. https://doi.org/10.5465/AMJ.2008.32625975
- Greve, H., "Positional rigidity:low performance and resource acquisition in large and small firms," Strategic Management Journal, in press, 2010.
- Hannan, M. and J. Freeman, "Structural inertia and organizational change," American sociological review, Vol.49, No.2(1984), pp. 149-164. https://doi.org/10.2307/2095567
- Kahneman, D., Attention and effort, Prentice Hall, NJ, 1973.
- March, J. and Z. Shapira, "Variable risk preferences and the focus of attention," Psychological Review, Vol.99, No.1(1992), pp.172-183. https://doi.org/10.1037/0033-295X.99.1.172
- Nelson, R. and S. Winter, An evolutionary theory of economic change, Belknap Press, Boston, 1982.
- Nohria, N. and R. Gulati, "Is slack good or bad for innovation?," Academy of Management Journal, Vol.39, No.5(1996), pp.1245- 1264. https://doi.org/10.2307/256998
- Ocasio, W., "Towards an attention-based view of the firm," Strategic Management Journal, Vol.18, No.S1(1997), pp.187-206. https://doi.org/10.1002/(SICI)1097-0266(199707)18:1+<187::AID-SMJ936>3.3.CO;2-B
- Park, K.M, "Antecedents of convergence and divergence in strategic positioning:The effects of performance and aspiration on the direction of strategic change," Organization science, Vol.18, No.3(2007), p.386. https://doi.org/10.1287/orsc.1060.0240
- Penrose, E., The theory ofthe growth ofthe firm, John Wiley and Sons, New York, 1959.
- Sorensen, J. and T. Stuart, "Aging, obsolescence, and organizational innovation," Administrative Science Quarterly, Vol.45, No.1 (2000), pp.81-112. https://doi.org/10.2307/2666980
- Shleifer, A. and R. Vishny, "Large shareholders and corporate control," The Journal of Political Economy, Vol.94, No.3(1986), pp. 461-488. https://doi.org/10.1086/261385
- Simon, H., Models of Bounded Rationality, MIT Press, Cambridge, Vol.I(1982).
- Vissa, B., H. Greve, and W. Chen, "Business group affiliation and firm search behavior in India:Responsiveness and focus of attention," Organization science, Vol.21, No.3(2010), pp.696-712. https://doi.org/10.1287/orsc.1090.0475
- Wiseman, R. and L. Gomez-Mejia, "A behavioral agency model of managerial risk taking," Academy of Management Review, Vol. 23, No.1(1998), pp.133-153.
- Zhou, K. and F. Wu, "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Vol. 31, No.5(2010), pp.547-561.