Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties

Authors: Yoo, Jae Wook¹; Reed, Richard²; Shin, Shung Jae²; Lemak, David J.²

Source: Journal of Management Studies, Volume 46, Number 2, March 2009 , pp. 308-335(28)

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Abstract:

This work examines how the strategic choice and performance of late movers are influenced by the top management team's external ties, inside and outside the firm's industry. Using a multiyear sample of firms from the computer industry, we found that intra-industry trade-association ties of top managers led to the adoption of a resource-imitation strategy by late movers while extra-industry importation and professional-association ties led to the adoption of a resource-substitution strategy. We also found that trade association ties had a negative effect on the performance of late movers using resource-substitution, while top managers' service on other firms' boards had a positive influence on the performance of those firms. Our findings not only confirm the importance of the role of fit in strategy and performance, but they also highlight the importance of the management and control of boundary-spanning activities.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-6486.2008.00802.x

Affiliations: 1: Konkuk University, Seoul; 2: Washington State University

Publication date: 2009-03-01