Session 154

Embeddedness, Networks and Non-Market Strategies

Track A

Date: Monday, October 8, 2012


Time: 16:30 – 17:45


Room: Meeting Hall IV (b)

Session Chair:

  • Jonathan Doh, Villanova University

Title: New Directions in Nonmarket Strategy: Institutional Perspectives in a Multi-Polar World


  • Thomas Lawton, Open University
  • Jonathan Doh, Villanova University

Abstract: In this paper we review the dominant paradigms in nonmarket strategy research and report on the key insights and findings from each perspective. We suggest that the integration of institutional and strategic perspectives provides a logical path for the continued development of this research domain. Looking ahead, we argue that institutional perspectives will have greater importance in nonmarket literature due the rise of BRIC economies. As companies internationalize and of necessity invest more time and resource in developing and deploying nonmarket processes and practices, we anticipate that institutional concepts will cross-fertilize further with nonmarket strategy and general management theories.

Title: Strategic Alliances and Environmental Performance


  • Thomas Graf, IE University
  • Carl Joachim Kock, IE Business School
  • Luis Diestre, IE Business School

Abstract: Why do some firms pollute heavily while others reduce their pollution, sometimes even beyond minimum requirements? We argue that strategic alliances with “green” or “black” firms influence the assessment of such strategies by the focal firm. Alliances with environmentally strong partners may provide valuable knowledge on how to reduce pollution efficiently. Alliances with polluting firms on the other hand may provide information on how “to get away with that” - for example, by a more symbolic stakeholder management. Drawing on facility-level pollution data from the EPA Toxic Release Inventory (TRI) we built a sample of 216 firms from the US manufacturing industries and found support for our arguments.

Title: The Impact of Practice-breaking and Practice-building Tactics on Firms’ Resource Commitment in the Solar Photovoltaic Industry


  • Panayiotis Georgallis, University of Michigan

Abstract: In this study we attempt to disentangle the mechanisms of influence by which social movements shape firm strategy. We define and discriminate between practice-breaking and practice-building tactics undertaken by social movements, and compare their differential effects on firms’ propensity to commit resources to the solar photovoltaic (PV) industry, one of the industries most favored by the environmental movement. Moreover, we examine how these two different types of influence tactics interact to shape firms’ commitment in solar PV. Contributions for research investigating social movements’ impact on organizations as well as for the strategy literature are outlined.

Title: Unintended Consequences of Political Endorsement: The Effect of Government Endorsement on Firms’ Social Responsiveness in a Transitional Economy


  • Xiaowei Luo, INSEAD
  • Danqing Wang, University of Hong Kong

Abstract: Research on business-government relationship has documented its benefits for firms but has paid less attention to the costs. We investigate why politically endorsed firms by the government are vulnerable to heightened expectations from the government as well as how they respond strategically by complying with expectations that constrain discretion the least. We test this framework in China in the early 2000s. We find that political endorsement has a strong effect on firms’ engagement in philanthropy but not on protecting the environment, and that the effect of endorsement on philanthropy is stronger for private firms than for state-owned firms. This study contributes to resource dependence theory, and enhances our understanding of the consequences of political endorsement and of the antecedents of CSR in transitional economies.

All Sessions in Track A...

Mon: 08:00 – 09:15
Session 147: Emerging Market Firms and Complex Institutional Environments
Mon: 09:30 – 10:45
Session 220: Political Strategies in Transition Contexts
Mon: 13:30 – 14:45
Session 221: National Institutions and Firm Behavior
Mon: 16:30 – 17:45
Session 154: Embeddedness, Networks and Non-Market Strategies
Tue: 08:00 – 09:15
Session 153: Cognition, Bounded Rationality and Strategy
Tue: 11:00 – 12:15
Session 151: Coevolution of Institutions and Firm Strategy
Session 152: Institutional Change and Innovation
Tue: 14:15 – 15:30
Session 155: Institutional Transitions and Internationalization Strategies
Tue: 15:45 – 17:00
Session 219: Strategic Responses to Institutional Change
Tue: 17:30 – 18:45
Session 150: Legitimacy, Liabilities and Institutions

Strategic Management Society