Modeling the relationship between corporate strategy and wealth creation using neural networks

Computers and Operations Research

Volumn 27, Issue 11-12, 2000, Pages 1077-1092

  John, Caron H St ^a   Balakrishnan, Nagraj ^a   Fiet, James O ^b  

^a CLEMSON UNIVERSITY   (United States)

^b JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL   (Sweden)

Author keywords

Neural networks; Strategy; Wealth creation

Indexed keywords

COMPUTER AIDED ANALYSIS; COMPUTER SIMULATION; FINANCIAL DATA PROCESSING; MARKETING; OPERATIONS RESEARCH; RESOURCE ALLOCATION; STRATEGIC PLANNING;

CORPORATE STRATEGY; MARKET VALUE ADDED; WEALTH CREATION;

NEURAL NETWORKS;

COMPUTER SYSTEM; CORPORATE STRATEGY; TECHNOLOGICAL DEVELOPMENT;

EID: 0343673917     PISSN: 03050548     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0305-0548(99)00143-4     Document Type: Article

References (46)

1. Porter M.E. Competitive strategy. 1980;The Free Press, New York.
2. Porter ME. From competitive advantage to corporate strategy. Harvard Business Review 1987; 43-59.
3. Stewart G.B. EVA: fact and fantasy. Journal of Applied Corporate Finance. 7:1994;71-76.
4. Hoskisson R.E., Hitt M.A. Antecedents and performance outcomes of diversification: a review and critique of theoretical perspectives. Journal of Management. 16:1990;461-509.
5. Markides C.C., Williamson P.J. Related diversification, core competences, and corporate performance. Strategic Management Journal. 15:1994;149-165.
6. Ramanujam V., Varadarajan P. Research on corporate diversification: a synthesis. Strategic Management Journal. 10:1989;523-551.
7. Rumelt RP. Strategy, structure, and economic performance. Boston: Harvard Graduate School of Business Administration, Division of Research, 1974.
8. Robbins D.K., Pearce J.A. Turnaround: retrenchment and recovery. Strategic Management Journal. 13:1992;287-309.
9. Barker V.L., Mone M.A. Retrenchment: cause of turnaround or consequence of decline? Strategic Management Journal. 15:1994;395-405.
10. Fish K.E., Barnes J.H., Aiken M.W. Artificial neural networks: a new methodology for industrial market segmentation. Industrial Marketing Management. 24:1995;431-440.
11. Lacher R.C., Coats P.K., Sharma S.C., Fant L.F. A neural network for classifying the financial health of a firm. European Journal of Operational Research. 85:1995;53-66.
12. Andrews KR. The concept of corporate strategy (rev. ed.). Homewood, IL: Richard D. Irwin, 1980.
13. Hrebiniak L.G., Joyce W.F. Implementing strategy. 1984;Macmillan, New York, NY.
14. Mintzberg H. Patterns in strategy formulation. Management Science 24:934-948.
15. St John C.H., Harrison J.S. Manufacturing-based relatedness, synergy, and coordination. Strategic Management Journal. 20:1999;129-145.
16. Rappaport A. Selecting strategies that create shareholder value. Harvard Business Review. 59:1981;139-149.
17. Datta D.K., Narayana V.K., Pinches G.E. Factors influencing wealth creation from mergers and acquisitions: a meta-analysis. Strategic Management Journal. 13:1992;67-83.
18. Burgess A.R. The modeling of business profitability: a new approach. Strategic Management Journal. 3:1982;53-65.
19. Jacobson R. The Austrian school of strategy. Academy of Management Review. 7:1992;470-478.
20. Istvan R.L. A new productivity paradigm for competitive advantage. Strategic Management Journal. 13:1992;525-537.
21. Burke L.I., Ignizio J.P. Neural networks and operations research: an overview. Management Science. 19:1992;179-189.
22. Desai V.S., Bharati R. The efficacy of neural networks in predicting returns on stock and bond indices. Decision Sciences. 29:1998;405-426.
23. Longo J.M., Long M.S. Using neural networks to differentiate between winner and loser stocks. Journal of Financial Statement Analysis. 2:1997;5-15.
24. Bettis R.A. Performance differences in related and unrelated diversified firms. Strategic Management Journal. 2:1981;379-393.
25. Christenson H.K., Montgomery C.A. Corporate economic performance: diversification strategy versus marketpower. Strategic Management Journal. 2:1981;327-343.
26. Grant R.M., Jammine A.P. Performance differences between the Wrigley/Rumelt strategic categories. Strategic Management Journal. 9:1988;333-346.
27. Hall E.H., St John C.H. A methodological note on diversity measurement. Strategic Management Journal. 15:1994;153-168.
28. Hoskisson R.E., Hitt M.A., Johnson R.A., Moesel D.D. Construct validity of an objective (entropy) categorical measure of diversification strategy. Strategic Management Journal. 14:1993;215-235.
29. Montgomery C. The measurement of firm diversification: some new empirical evidence. Academy of Management Journal. 25:1982;299-307.
30. Berry C.H. Corporate growth and diversification. 1975;Princeton University Press, Princeton, NJ.
31. Jacquemin A.P., Berry C.H. Entropy measure of diversification and corporate growth. Journal of Industrial Economics. 27:1979;359-369.
32. Palepu K. Diversification strategy, profit, performance and the entropy measures. Strategic Management Journal. 6:1985;239-255.
33. Cheng W., McClain B.W., Kelly C. Artificial neural networks make their mark as a powerful tool for investors. Review of Business. 18:1997;4-10.
34. Murphy C.M., Koehler G.J., Folger H.R. Artificial stupidity: the art of raising a neural net's IQ. Journal of Portfolio Management. 23:1997;24-30.
35. Simpson P. Artificial neural networks - foundations, paradigms, applications, and implementations. 1990;Pergamon Press, New York.
36. Rumelhart D.E., Hinton G.E., Williams R.J. Learning representations by back propagating errors. Nature. 323:1986;533-536.
37. Rumelhart D.E., Hinton G.E., Williams R.J. Rumelhart D.E., McClelland J.L. Learning internal representations by error back propagation in parallel distributed processing. 1986;MIT Press, Cambridge, MA.
38. Yoon Y., Swales G., Margavio T.M. A comparison of discriminant analysis versus artificial neural networks. Journal of the Operational Research Society. 44:1993;51-60.
39. Tam K.Y., Kiang M.Y. Managerial applications of neural networks: the case of bank failure predictions. Management Science. 38:1992;926-947.
40. Sharda R. Neural networks for the MS/OR analyst: an application bibliography. Interfaces. 24:1994;116-130.
41. Honik K., Stinchcombe M., White H. Multi-layer feedforward networks are universal approximators. Neural networks. 2:1989;359-366.
42. Neal R.M. Bayesian learning for neural networks. 1996;Springer, New York.
43. Geman S., Bienenstock E., Doursat R. Neural networks and the bias/variance dilemma. Neural Computation. 4:1992;1-58.
44. Rumelt R.P. Diversification strategy and profitability. Strategic management Journal. 3:1982;359-369.
45. Rumelt R.P. How much does industry matter? Strategic Management Journal. 12:1991;167-185.
46. Smith KA, Gupta JND. Neural networks in business: techniques and applications for the operations research. Computers and Operations Research, in press.