Academy of Management Journal
Despite their prevalence and significance, competitive wars have received limited attention from the strategy literature. Our knowledge of how inter-organizational linkages influence competitive wars is particularly lacking. Drawing on the social embeddedness perspective, we argue that both direct linkages (i.e., strategic alliances) and indirect linkages (i.e., common ownership ties and common analyst ties) reduce the likelihood of war, thereby functioning as the glue that binds firms together. Yet once competitive wars are launched in related markets, indirect linkages through common third parties may continuously function as glue, reducing the likelihood of war spillover, whereas direct linkages, such as strategic alliances, may facilitate the spillover of competitive wars, akin to adding gasoline to a fire. Using data from the U.S. domestic airline industry between 1991 and 2010, our empirical evidence offers strong support for our predictions.
This paper illustrates how interventionist research can be helpful in providing managerially relevant solutions and furthers the debate about the relationship between social science research and practice. Through this use of interventionist methods, the paper contributes to knowledge by illustrating the way in which management accounting was used alongside other managerial disciplines in a UK retail organisation to promote change and influence outcomes. Specifically, the paper focuses on changes to the reverse logistics processes of the organisation and the important role that management accounting played. It also illustrates the use of management accounting in the pursuit of strategic and commercial advantage. As researchers, our work was grounded in action rather than being just observers.
Management accounting practice
Managerially relevant solutions
Strategic and commercial advantage
This case is a supplement to A Rough Road to Entrepreneurial Success (A).Mr. Yang’s company had been doing well in its choice of a heart valve project, yet the market was too small. Thus, the company decided to enter the surgical stapler market and begin R&D on its own. The R&D and launching of the product in an international exhibition was a success, yet Yang met unexpected difficulties when building the factory for production. The construction contractor turned out to be dishonest and the completion of the factory’s construction seemed hopeless. Yang and his team felt lost in handling the situation. Yang realized that entrepreneurial success was really a tough and rough road!
Case (A) in this two-part series describes how Mr. Yang’s entrepreneurial company decided to take the feet from the mire of its unsuccessful calcium supplement products and try to find a way out. Then, when the entrepreneurial team tried to find new business opportunities, two choices in the medical equipment area were brought to the firm’s attention. Yang felt that it was a hard choice for him.