Bringing managers into theories of multimarket competition: CEOs and the determinants of market entry

Organization Science

Volumn 14, Issue 4, 2003, Pages 403-421

  Stephan, John ^a   Murmann, Johann Peter ^b   Boeker, Warren ^c   Goodstein, Jerry ^d  

^a FLORIDA ATLANTIC UNIVERSITY   (United States)

^b NORTHWESTERN UNIVERSITY   (United States)

^c UNIVERSITY OF WASHINGTON   (United States)

^d WASHINGTON STATE UNIVERSITY   (United States)

Author keywords

Chief Executive Officers; Hospitals; Market Entry; Multimarket Competition

Indexed keywords

EID: 0041657592     PISSN: 10477039     EISSN: None     Source Type: Journal    
DOI: 10.1287/orsc.14.4.403.17484     Document Type: Article

References (76)

1. Alexander, J., M. Morrisey. 1988. Hospital physician integration and hospital costs. Inquiry 25 388-401.
2. -, -, S. M. Shortell. 1986. Effects of competition, regulation, and corporatization on hospital-physician relationships. J. Health and Soc. Behavior 27 220-235.
3. Allison, P. D. 1984. Event History Analysis: Regression for Longitudinal Event Data. Sage, Newbury Park, CA.
4. Amburgey, T. L., A. S. Miner. 1992. Strategic momentum: The effects of repetitive, positional, and contextual momentum on merger activity. Strategic Management J. 13 355-348.
5. Barnett, W. P. 1993. Strategic deterrence among multipoint competition. Industrial and Corporate Change 2 249-278.
6. H. R. Greve, D. Y. Park. 1994. An evolutionary model of organizational performance. Strategic Management J. 15 11-28.
7. Baum, J. A. C., H. J. Korn. 1996. Competitive dynamics of interfirm rivalry. Acad. Management J. 39 255-291.
8. -,-, 1999. Dynamics of dyadic competitive interaction. Strategic Management J. 20 251-278.
9. Boeker, W. 1992. Power and managerial dismissal: Scapegoating at the top. Admin. Sci. Quart. 37 400-421.
10. -. 1997. Strategic change: The influence of managerial characteristics and organizational growth. Acad. Management J. 40 152-170.
11. -, J. Goodstein. 1991. Organizational performance and adaptation: Effects of environment and performance on changes in board composition. Acad. Management J. 34 805-826.
12. -, -, J. Stephan, J. P. Murmann. 1997. Competition in a multimarket environment: The case of market exit. Organ. Sci. 8 126-142.
13. Caves, R. E., M. E. Porter. 1977. From entry barriers to mobility barriers: Conjectural decisions and contrived deterrence to new competition. Quart. J. Econom. 91 241-261.
14. Chen, M. J. 1996. Competitor analysis and inter-firm rivalry: Toward a theoretical integration. Acad. Management Rev. 21 100-134.
15. Coelen, C., D. Sullivan. 1981. An analysis of the effects of prospective reimbursement programs on hospital expenditures. Health Care Financing Rev. 2 1-40.
16. Deephouse, D. L. 1999. To be different or the same? It's a question (and theory) of strategic balance. Strategic Management J. 20 147-166.
17. DiMaggio, P. J., W. W. Powell. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. Amer. Sociological Rev. 48(April) 147-160.
18. Edwards, C. 1955. Conglomerate bigness as a source of power. The NBER Report: Business Concentration and Price Policy. Princeton University Press, 331-359.
19. Evans, W. N., I. N. Kessides. 1994. Living by the "golden rule": Multimarket contact in the U.S. airline industry. Quart. J. Econom. 109 341-366.
20. Feinberg, R. M. 1985. Sales at risk: A test of the mutual forbearance theory of conglomerate behavior. J. Bus. 58 225-241.
21. Finkelstein, S., D. C. Hambrick. 1990. Top-Management team tenure and organizational outcomes: The moderating role of managerial discretion. Admin. Sci. Quart. 35 484-503.
22. Fredrickson, J., D. C. Hambrick, S. Baumrin. 1988. A model of CEO dismissal. Acad. Management Rev. 13 255-270.
23. Garnick, D., H. Luft, J. Robinson. 1987. Appropriate measures of hospital market areas. Health Service Res. 22 69-90.
24. Geletkanycz, M. A., D. C. Hambrick. 1997. The external ties of top executives: Implications for strategic choice and performance. Admin. Sci. Quart. 42 654-681.
25. Gimeno, J., C. Y. Woo. 1996. Hypercompetition in a multi-market environment: The role of strategic similarity and multi-market contact in competitive De-Escalation. Organ. Sci. 7 322-341.
26. -, E. Jeong. 2001. Multimarket contact: Meaning and measurement at multiple levies of analysis. J. A. C. Baum, H. R. Greve, eds. Multiunit Organization and Multimarket Strategy; Advances in Strategic Management, Vol. 18. JAI Press, Oxford, U.K., 357-408.
27. Gnyawali, D. R., R. Madhavan. 2001. Cooperative networks and competitive dynamics: A structural embeddedness perspective. Acad. Management Rev. 26 431-445.
28. Greve, H. 2000. Market niche entry decisions: Competition, learning, and strategy in Tokyo banking, 1894-1936. Acad. Management J. 43 816-836.
29. Gulati, R. 1995. Social structure and alliance formation patterns: A longitudinal analysis. Admin. Sci. Quart. 40 619-652.
30. Hambrick, D. C., S. Finkelstein. 1987. Managerial discretion: A bridge between polar views on organizations. L. L. Cummings, B. M. Staw, eds. Research in Organizational Behavior, Vol. 9. JAI Press, Greenwich, CT, 369-406.
31. -, G. D. S. Fukutomi. 1991. The seasons of a CEO's tenure. Acad. Management Rev. 16 719-742.
32. Hannan, M., J. Freeman. 1989. Organizational Ecology. Harvard University Press, Cambridge, MA.
33. Haunschild, P. R. 1993. Interorganizational imitation: The impact of interlocks on corporate acquisition activity. Admin. Sci. Quart. 38 564-592.
34. Haveman, H. A. 1993. Follow the leader: Mimetic isomorphism and entry into new markets. Admin. Sci. Quart. 38 593-627.
35. -, L. Nonnemaker. 2000. Competition in multiple geographic markets: The impact on growth and market entry. Admin. Sci. Quart. 45 232-267.
36. Hayward, M. L. A., D. C. Hambrick. 1997. Explaining the premium paid for large acquisitions: Evidence of CEO hubris. Admin. Sci. Quart. 42 103-127.
37. Heggestad, A. A., S. A. Rhoades. 1978. Multi-market interdependence and local market competition in banking. Rev. Econom. Statistics 60 523-532.
38. Jaccard, J. 2001. Interaction Effects in Logistic Regression. Sage University Paper Series on Quantitative Applications in the Social Sciences, 07-135. Sage Publications, Thousand Oaks, CA.
39. Karnani, A., B. Wernerfelt. 1985. Multipoint competition. Strategic Management J. 6 87-96.
40. Kesner, I. F., D. R. Dalton. 1994. Top management turnover and CEO succession: An investigation of the effects of turnover on performance. J. Management Stud. 31 701-713.
41. Ketchen, D. J., J. B. Thomas, C. C. Snow. 1993. Organizational configurations and performance: A comparison of theoretical approaches. Acad. Management J. 36 1278-1313.
42. Knickerbocker, F. T. 1973. Oligopolistic Reaction and Multinational Enterprise. Harvard University Press.
43. Korn, H. J., J. A. C. Baum. 1999. Chance, imitative, and strategic antecedent to multimarket contact. Acad, Management J. 42 171-193.
44. Madhok, A. 1997. Cost, value and foreign market entry mode: The transaction and the firm. Strategic Management J. 18 39-61.
45. McGrath, R. G., M. Chen, I. C. MacMillan. 1998. Multi-market maneuvering in uncertain spheres of influence: Resource diversion strategies. Acad. Management Rev. 23 724-740.
46. Miller, D. 1991. Stale in the saddle: CEO tenure and the match between organization and environment. Management Sci. 37 34-52.
47. -. 1993. Some organizational consequences of CEO succession. Acad. Management J. 36 644-659.
48. -, J. Shamsie. 2001. Learning across the life cycle: Experimentation and performance among the Hollywood studio heads. Strategic Management J. 22 725-745.
49. Murmann, J. P., M. L. Tushman. 1997. Organization responsiveness to environmental shock as an indicator of organizational foresight and oversight: The Role of executive team characteristics and organization context. R. Garud, P. Nayyar, Z. Shapira, eds. Technological Innovation: Foresights and Oversights. Cambridge University Press, New York, 261-278.
50. Ocasio, W. 1994. Political dynamics and the circulation of power: CEO succession in U.S. industrial corporations, 1960-1990. Admin. Sci. Quart. 39 285-312.
51. Oliver, C. 1991. Strategic responses to institutional processes. Acad. Management Rev. 16 145-179.
52. Oster, S. M. 1994. Modern Competitive Analysis, Oxford University Press, New York.
53. Pauly, M. V. 1980. Doctors and Their Workshops. University of Chicago Press, Chicago, IL.
54. Pfeffer, J., N. Langton. 1993. The effect of wage dispersion on satisfaction, productivity, and working collaboratively: Evidence from college and university faculty. Admin. Sci. Quart. 38 382-407.
55. Pitcher, P., S. Chreim, V. Kisfalvi. 2000. CEO succession research: Methodological bridges over troubled waters. Strategic Management J. 21 625-648.
56. Porac, J. F., H. Thomas. 1990. Taxonomic mental models in competitor definition. Acad. Management Rev. 15 224-240.
57. -, -, C. Baden-Fuller. 1989. Competitive groups as cognitive communities: The case of Scottish knitwear manufacturers. J. Management Stud. 26 397-416.
58. -, -, F. Wilson, D. Paton, A. Kanfer. 1995. Rivalry and the industry model of Scottish knitwear producers. Admin. Sci. Quart. 40 203-227.
59. Porter, M. 1980. Competitive Strategy. Free Press, New York.
60. Scherer, F. M., D. Ross. 1990. Industrial Market Structure and Economic Performance. Houghton Mifflin Company, Boston, MA.
61. Schwenk, C. R. 1984. Cognitive simplification processes in strategic decision-making. Strategic Management J. 5 11-128.
62. Shortell, S. 1989. New directions in hospital governance. Hospital and Health Service Admin. 34(1) 7-23.
63. -, E. M. Morrison, B. S. Friedman. 1990. Strategic Choices for America's Hospitals: Managing Change in Turbulent Times. Jossey-Bass, San Francisco, CA.
64. -, -, S. L. Hughes, B. S. Friedman, J. L. Vitek. 1987. Diversification of health care services: The effects of ownership, environment, and strategy. Adv. Health Econom. Health Care Services. R. Schefler, ed. JAI Press, Greenwich, CT, 76-94.
65. Silverman, B. S. 1999, Technological resources and the direction of corporate diversification: Toward an integration of the resource-based view and transaction cost economics. Management Sci. 45 1109-1124.
66. Singal, V. 1996. Airline mergers and multi-market contact. Managerial and Decision Econom. 17 559-574.
67. Staw, B. M., J. Ross. 1980. Commitment in an experimenting society: An experiment on the attribution of leadership from administrative scenarios, J. Appl. Psych. 65 249-260.
68. Stephan, John. Warren Boeker. 2001. Getting to multimarket competition: How multimarket contact affects firms = Market entry decisions. J. A. C. Baum, H. R. Greve, eds. Multiunit Organization and Multimarket Strategy; Advances in Strategic Management. Vol. 18. JAI Press. Oxford, U.K., 229-262.
69. Thomas, J. B., S. M. Clark, D. A. Gioia. 1993. Strategic sensemaking and organizational performance: Linkages among scanning, interpretation, action and outcomes. Acad. Management J. 36 239-270.
70. Tsurumi, Y. 1976. The Japanese Are Coming: A Multinational Interaction of Firms and Politics. Ballinger Publishing Company, Cambridge, MA.
71. Tushman, M. L., E. Romanelli. 1985. Organizational evolution: A metamorphosis model of convergence and reorientation. B. M. Staw, L. Cummings eds. Res. Organ. Behavior. JAI Press, Greenwich, CT, 171-222.
72. Vernon, R., L. T. Wells, Jr., S. Rangan. 1996. The Manager in the International Economy, Prentice-Hall, Upper Saddle River, NJ.
73. Virany, B., M. L. Tushman, E. Romanelli. 1992. Executive succession and organization outcomes in turbulent environments: An organization learning approach. Organ. Sci. 3 72-92.
74. Williamson, O. 1975. Markets and Hierarchies. Free Press, New York.
75. Zajac, E. J., S. M. Shortell. 1989. Changing generic strategies: Likelihood, direction and performance. Strategic Management J. 10 413-430.
76. Zucker, L. 1987. Normal change or risky business: Institutional effects on the 'hazard' of change in hospital organizations, 1959-1979. J. Management Stud. 24 671-700.