Alliance portfolios and shareholder value in post-IPO firms: The moderating roles of portfolio structure and firm-level uncertainty

Using longitudinal data for initial public offering (IPO) firms, we examine the role played by structural differences between different types of alliance portfolios in the relationship between IPO firm alliance portfolios and shareholder returns. We show that because of the different signals they send to the capital market, different types of alliance portfolios affect IPO firm performance differently. Namely, financial markets seem to reward firms whose alliance portfolio is diversified across different types of alliances (a portfolio high in functional diversity), but not those who align their alliance partners into multiple functional points in the value chain (a portfolio high in vertical scope). We also examine the signaling role of alliance portfolios under different IPO firm uncertainty conditions. We note that uncertainty about the IPO firm is not limited to pre-IPO quality uncertainty. Investors also face transition uncertainty, post-IPO uncertainty about the ability of the firm to adapt to the new managerial challenges it faces and succeed post-IPO. We find that these two types of uncertainties moderate alliance portfolio effects in different ways. The beneficial effects of alliance portfolios in mitigating liabilities of newness is of greater importance for firms associated with higher quality uncertainty and for those associated with lower transition uncertainty.     

Machismo in Organizations: Individual Predictors & Context-Dependent Outcomes

Two studies were conducted to examine possible predictors of machismo value endorsement and to test the possibility that machismo’s effects on job-related outcomes may be stronger in “family-oriented” than in “team-oriented” organizations. A total of 178 students were recruited from upper-level management and MBA classes at a large university in the Southwestern U.S. In Study 1, participant gender, familism values, and femininity predicted machismo values. Unexpectedly, ethnicity did not predict machismo values. Study 2 replicated results for predictors of machismo values, except that femininity did not emerge as a significant predictor. Additionally, Study 2 results indicated that machismo’s effects were dependent on the extent to which the company was viewed as family-oriented. Results suggest that machismo values: (a) may be relevant for both Hispanics and non-Hispanic whites, (b) are related, yet somewhat distinct from theoretically related variables like gender role endorsement and familism, and (c) are especially likely to affect expectations and behaviors when the organization’s culture includes elements (e.g., family orientation) that evoke a connection to those values. One of the most prominent recent demographic trends to emerge in the U.S. workforce is the rapid increase in workers of Hispanic descent. Organizations should expect an accompanying wave of employee values, attitudes, beliefs, and behavioral expectations influenced by aspects of Hispanic culture. Further, it would be of considerable applied value to identify ways to strategically harness positive effects of machismo values while mitigating potentially negative effects.