| Popis: |
A firm’s strategic emphasis, i.e., its relative focus on value appropriation vs. value creation, provides insights on how the firm expects to position itself for future growth. In addition to organizing activities in-house, firms also rely on external modes of governance such as alliances, joint ventures (ventures), and acquisitions in their pursuit of growth. In this paper, the authors investigate how strategic emphasis would influence a firm’s choice of governance mode and find that firms with a greater emphasis on value appropriation (relative to value creation) are likely to prefer acquisitions, followed by ventures and then alliances. The authors further examine the moderating role of internal leadership (marketing presence in the TMT and CEO marketing background) and external monitoring (analyst coverage and institutional investors). The findings shed light on how strategic emphasis impacts governance of interfirm relationships. |
