Top management team incentive heterogeneity,strategic investment behavior,and performance: A contingency theory of incentive alignment

Research summary : We develop and test a contingency theory of the influence of top management team (TMT) performance‐contingent incentives on manager–shareholder interest alignment. Our results support our theory by showing that although TMTs engage in significantly higher levels of acquisition investment when their average incentive levels increase, investors' responses to those large investments are generally negative. More importantly, however, we further find that within‐TMT incentive heterogeneity conditions that effect, such that investors evaluate TMTs' large acquisition investments more positively as the variance in those top managers' incentive values increases. Thus, within‐TMT incentive heterogeneity appears to increase manager–shareholder interest alignment, in the context of large acquisition investments. Managerial summary : We find that as the average value of TMTs' incentives increase, relative to their total pay, they invest more in acquisitions and investors' respond negatively to the announcement of those deals. However, we further show that investors respond more positively to acquisitions announced by TMTs whose members' incentive values vary (some TMT members hold higher incentives and others hold lower). Results imply that when TMT members hold differing incentives levels, they approach investments from divergent perspectives, scrutinize those investments more heavily, and make better decisions, relative to TMTs with similar incentives. They also suggest that boards seeking tighter manager–shareholder interest alignment may benefit from introducing variance into TMT members' incentive structures, as doing so appears to create divergent preferences that can improve team decision making. Copyright © 2016 John Wiley & Sons, Ltd.     

Current market conditions for veterinary services in the U.S

The veterinary industry has been plagued by low growth in income, yet flourished in growth of new veterinarians. By using a labour-/work-hour approach that allows for proper matching of the data, we develop a supply and demand model of companion animal services in the veterinary medicine profession. We use data from two unique sources that allow demand estimation by companion animal type and lets supply vary by practice type. The results here suggest that low income growth, relative to doctors and dentists, may be from allowing supply to outpace demand for veterinary services.     

Emerging Market Footholds and Knowledge: An Examination of New Product Launch Performance

As developed markets become more saturated, managers increasingly recognize the value of emerging markets as venues for growth opportunities. Yet, launching products into these markets is extremely risky due to weak institutional environments (e.g., lack of physical infrastructure), making success more uncertain. To alleviate this challenge, theory points to using emerging market footholds that yield market-specific knowledge. However, it is unclear whether knowledge is realized and, if so, what facets of harvested knowledge are effective in driving performance. Accordingly, we used data collected from a survey of business professionals to examine emerging market footholds and market-specific knowledge (i.e., customer, competitor, and logistics knowledge). Our results show that the extent of market presence held by an emerging market foothold is positively associated with all types of knowledge, yet only competitor and logistics knowledge—not customer knowledge—is positively associated with product launch performance. A supplemental sample of new product launches in developed markets revealed the opposite results wherein customer knowledge was the only significant predictor. Viewed collectively, the results suggest a market maturity threshold wherein logistics and competitive knowledge becomes less influential in driving performance, and customer knowledge becomes more influential.     

A response to LDR 2 LDR: KNEX 2 U

An act of leadership is always an act of practical theory. We lead because we hold visions of the world as it ought to be, because of the not yet, because of the potential that we see in ideas and people. Yet, there still exists a perceived binary between leadership theory (in the strong sense) and leadership practice, a binary that divides organizations, classrooms, and the differing bodies of leadership literature. In this Symposium, Duncan Waite and his colleagues discuss the barriers they have faced in bringing theory to the educational leadership classroom, as well as the promise they feel theory holds for more productive, equitable, and humane schooling organizations.     

Effects of spatial density on veterinarian income: where are all of the veterinarians?

With increased numbers of veterinarians in the market, it is critical to understand how this increased competition affects income potential at multiple levels. This study presents an empirical approach that incorporates local and nonlocalised spatial competition of firms into one model. By analysing the market for veterinarians using a spatial weight matrix approach, we are able to quantify localized and nonlocalised competition which assists in defining relevant market areas for veterinarians. Specifically, increased density within their county and surrounding counties decreases veterinarian income. Thus, the potential market area for veterinarians is larger than the local/county market in which they practice. This is important for veterinarians when choosing a location to practice, as they must consider the competition and demand in local and non-local areas.     

A Multidisciplinary Approach to Supply Chain Agility: Conceptualization and Scale Development

Although agility has been identified as one of the most important issues of contemporary supply chain management, the theoretical basis for understanding supply chain agility is fragmented. This research addresses the gap related to the ambiguity surrounding the dimensions and definitions of firm supply chain agility by employing a multidisciplinary literature review to gain an in‐depth understanding of agility. In addition, a comprehensive measurement instrument that draws on the foundations of social and life science theory is developed and empirically validated. The results of the research indicate that firm supply chain agility is composed of five distinct dimensions including alertness, accessibility, decisiveness, swiftness, and flexibility. Based on these elements, a comprehensive definition of firm supply chain agility is developed for further theoretical testing of the concept.     

Trying to Serve Two Masters is Easy,Compared to Three: Identity Multiplicity Work by Christian Impact Investors

Journal of Business Ethics - While research has focused on financial and social goals in impact investing, we add to the limited research that focuses on how individuals manage identity...     

Creating value in the face of declining performance: firm strategies and organizational recovery

Firms that have failed to meet the performance expectations of investors must seek new ways of creating value or face the loss of financial support. Using resource‐based arguments, we find that valuable and difficult‐to‐imitate strategies that recombine the firm's existing stock of resources to create new products, processes, or technologies have a positive effect on organizational recovery as measured by investors' expectations. Similarly, acquiring new resources through mergers or acquisitions also has positive effects on investors' expectations. In contrast, valuable and difficult‐to‐imitate strategies that provide the firm with access to new resources through alliances or joint ventures do not affect investors' expectations of performance. We also find that taking actions that are not valuable and difficult‐to‐imitate either have no effect on performance or may lead to further performance declines. Lastly, our results show that valuable and difficult‐to‐imitate strategic actions that use existing resources in new ways contribute the most to organizational recovery. Copyright © 2007 John Wiley & Sons, Ltd.     

Antecedents and Consequences of Supply Chain Agility: Establishing the Link to Firm Performance

The concept of supply chain agility (SCAGI) has been identified as one of the most important issues in supply chain management literature. However, despite the popularity of the concept, many aspects of SCAGI are largely unexplored. One area that is deficient in research is the behavioral/relational antecedents of SCAGI. Furthermore, no research to date has empirically established the link between SCAGI and firm performance. This article seeks to further theory development by addressing these gaps.