Relationships between Firms
PM9 Course outline
Professor Satu Teerikangas
email@example.com in emergency
Honorary Senior Lecturer, Bartlett School of Construction & Project Management, University College London
Professor and Head of Department, Management & Organization, School of Economics, University of Turku (Finland)
In an increasingly competitive, global and interconnected world, firms across industries are entering into cooperative partnerships as a means of securing their competitive positioning. This is termed the ‘age of cooperation’, ‘cooperative strategies’, ‘coopetition’, or a ‘networked economy’. Cooperative partnerships take various forms, ranging from outsourcing and subcontracting, to franchising and licensing, through joint ventures and alliances, all the way to acquisitions, buyouts and mergers. Though different in terms of their ownership and governance structures, operational modes and goals, these so-called ‘hybrids’ all essentially concern an inter-firm encounter, an inter-firm relationship set in time, or a partnership.
The aim of this module is to explore how best to develop, nurture and sustain inter-firm relationships. This is achieved as follows:
- A first objective is to understand the reasons underlying the shift to a cooperative networked economy, and its consequences for the modern globally operating organization.
- Another aim is to introduce the participant to the range of alternative modes of inter-firm cooperation, and to further explore their unique characteristics and features, whilst drawing the parallels between them. An essential question is – to what extent does inter-firm cooperation, regardless of its form, bear fundamental similarity? And where dissimilar, what are the factors predicting this dissimilarity?
- The third objective in the course is to understand the economic, strategic and organizational drivers of inter-firm cooperation.
- Finally, we will seek to explore and identify what are the organizational and human levers to pull on to secure the successful management of inter-firm partnerships.
- An underlying motive behind the unit is to appreciate and openly explore how to develop, nurture and sustain cooperative and high-performing relationships, and what is each individual’s role in this endeavour.
To this end, the course builds on the following outline:
- Session 1:Introduction and overview – inter-firm relationships (Feb 20th, 2018)
- Session 2:The ‘why’ of cooperation – theoretical and managerial drivers of inter-firm relationships (February 27th, 2018)
- Session 3:Mergers and acquisitions as examples of inter-firm relationships (March 6th, 2018)
- Session 4:Joint ventures and alliances as examples of inter-firm relationships (March 13th, 2018)
- Session 5:The dynamics and ‘how’ of cooperation (March 20th, 2018)
OPTION 1: “Inter-organizational relationships and today’s multinationals.”
- Term paper part I (30-50%)
- Please select a company from the Fortune 500 list: http://fortune.com/global500/list/. Please avoid selecting the same company as your neighbour.
- Use the company’s website, annual reports, and other sources as your material. The term paper can be based on secondary sources only. If you do have access to a case organization, please use this opportunity.
- Analyse this case company’s historical evolution and strategic growth path in terms of how this firm has used inter-organizational relationships to become the industry leader it is today. What kinds of choices has it made, why, how, what are the implications? Consider using tables and figures to support your analysis. Seek a holistic and integrative perspective to the organization.
- Use your readings in PM9 and the PM9 class sessions to support your analysis and reflection.
- Based on this analysis, reflect on what the organization is like today, what are its challenges and opportunities going forward?
- Term paper part II (50-70%). Based on your readings in PM9 and the class sessions in PM9, please provide the firm’s top management with:
- (a) An understanding of key success factors as regards one particular kind of inter-firm relationship (e.g. mergers, acquisitions, alliances, joint ventures, franchising, outsourcing, ..) that is relevant to this firm,
- (b) An integrative/comparative model of success factors in inter-organizational relationships in general that helps the firm’s top management. For this purpose, reviewliterature that compares the various inter-firm relationships against one another, and aim to compare their underlying theories, processes, and frameworks. What are their similarities, differences? How to develop a unifying theory of cooperation that works regardless of the kind of inter-firm relationship in question? To support you, you might also review some papers/books specific to each kind of inter-firm encounter. Your aim is to provide an overarching synthesis of cooperation in the context of inter-firm relationships, whatever their kind.
- Conclusions and managerial recommendations to the target company.
OPTION 2: “Co-opetition as a means of approaching inter-organizational relationships”
- A coherent review of the PM9 reading material is expected.
- In addition, please ensure you find and cite an average of 5-10 academic articles/books not on the course outline’s reading list on the subject of co-opetition, cooperation and competition.
Word count: 3,000 words.
Your goal is to provide an insightful, intelligent, systematic yet creative synthesis of your appreciation of the topic. Please seek to develop conceptual frameworks, if possible. A term paper is expected to be based on an average of 20+ references.
Deadline: Monday, May 8th, 4pm. Please hand in both in paper copy at the School office and the course TurnItIn site (see course Moodle page).
Reading list – Session 1 and 2 (Overview and underlying theories)
- Barringer, B., & Harrison, J. (2000). Walking a tightrope: creating value through interorganizational relationships. Journal of management, 26 (3): 367-403
- MUST READ. Borys, B., & Jemison, D. B. (1989). Hybrid Arrangeements as Strategic Alliances: Theoretical Issues in Organizational Combinations. Academy of Management Review, 14(2): 234-249.
- MUST READ. Bouncken, R. B., Gast, J., Kraus, S., & Bogers, M. (2015). Coopetition: A systematic literature review, synthesis and future research directions. Review of Management Science. DOI: 10.1007/s11846-015-0168-6.
- Brass, D. J., Galaskiewicz, J., Greve, H. R., & Tsai, W. (2004). Taking stock of networks and organizations: A multilevel perspective. Academy of Management Journal, 47(6): 795-817.
- Dyer, J. H., & Singh, H. (1998) The relational view: cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4): 660-680.
- Eisenhardt, E. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10/11): 1105-1121.
- Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21: 203-215.
- MUST READ. Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19: 293-317.
- Huxham, C., & Vangen, S. (2000). Leadership in the shaping and implementation of collaboration agendas: How things happen in a (not quite) joined-up world. Academy of Management Journal, 43 (6): 1159-1175.
- Håkansson, H., & Snehota, I. (1989). No business is and island: The network concept of business strategy, Scandinavian Journal of Management, 5(3): 187-200.
- Oliver, C. (1990). Determinants of Interorganizational relationships: Integration and future directions. Academy of Management Review, 15(2): 241-265.
- Parmigiani, A., & Rivera-Santos, M. (2011). Clearing a Path Through the Forest: A Meta-Revie-w of Interorganizational Relationships. Journal of Management, 37(4): 1108-1136.
- Ring P.S., & Van de Ven, A. H. (1994). Developmental processes of cooperative interorganizational relationships. Academy of Management Review, 19: 90-118.
- Walley, K (2007). Coopetition – An Introduction to the Subject and an Agenda for Research. International Studies of Management & Organization, 37(2): 11-31.
Reading list – Session 3 (Mergers and acquisitions)
- Readings on change and the management of change in organizations
- Burnes, B. (1996). No such thing as … ‘one best way’ to manage organizational change. Management Decision, 34(10): 11-18.
- By, R. T. (2005). Organizational Change Management: A Critical Review. Journal of Change Management, 5(4): 369-380.
- Brown, S. L., & Eisenhardt, K. M. (1997). The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly, 42: 1-34.
- Cameron, K. S. (2008). Paradox in Positive Change. The Journal of Applied Behavioral Science, 44(1): 7-24.
- Leana, C. R., & Barry, B. (2000) Stability and change as simultaneous experiences in organizational life. Academy of Management Review, 25(4): 753-759.
- March, J. G. (1981). Footnotes to Organizational Change. Administrative Science Quarterly, 26: 563-577.
- Tsoukas, H., & Chia, R. (2002). On Organizational Becoming. Organization Science, 13(5): 567-582.
- Van de Ven, A. H., & Poole, M. S. (1995). Explaining Development and Change in Organizations. Academy of Management Review, 20(3): 510-540.
- Walsh, J. P., Meyer, A. D., & Schoonhoven, C. B. (2006). A Future for Organization Theory: Living in and with changing organizations. Organization Science, 17(5): 657-671.
- Readings on mergers and acquisitions
- Ashkenas, R. N., & Francis, S. C. (2000). Integration managers: Special leaders for special times. Harvard Business Review, 78(6): 108-116.
- Ashkenas, R. N., DeMonaco, L. J., & Francis, S. C. (1998). Making the deal real: How GE Capital integrates acquisitions. Harvard Business Review, 76(1): 165-178.
- MUST READ. Bower, J. L. (2001). Not All M&As Are Alike – And That Matters. Harvard Business Review, 79(3): 93-101.
- Bauer, F. & Matzler, K. (2014). Antededents of M&A success: The Role of Strategic Complementary, Cultural Fit, and Degree and Speed of Integration. Strategical Management Journal, (35): 269–291.
- MUST READ. Buono, A. F., Bowditch, J. L., & Lewis, J. W. (1985). When Cultures Collide: The Anatomy of A Merger. Human Relations, 38(5): 477-500.
- Cartwright, S., & Cooper, C. L. (1993). The role of cultural compatibility in successful organizational marriage. Academy of Management Executive, 7(2): 57-70.
- Connaughton, J., Meikle, J., & Teerikangas, S. (2015). Mergers, acquisitions and the evolution of construction professional services firms. Construction Management and Economics, 33(1-3): 146-159.
- Empson, L. (2001). Fear of exploitation and fear of contamination: Impediments to knowledge transfer in mergers between professional service firms. Human Relations 54(7): 839.
- Gates, S., & Véry, P., (2003). Measuring performance during M&A integration. Long Range Planning, 36(2), 167-185.
- Gomes, E., Angwin, D.N., Weber, Y., & Tarba, S.Y., (2013). Critical success factors through the mergers and acquisitions process: revealing pre- and post-M&A connections for improved performance. Thunderbird International Business Review, 55(1), 13-35.
- Graebner, M. E. (2004). Momentum and serendipity: How acquired firm leaders create value in the integration of technology firms. Strategic Management Journal, 25(8–9): 751–777.
- Graebner, M. E., Heimeriks, K., Huy, Q. N., & Vaara, E. (2017). The process of post-merger integration: A review and agenda for future research. Academy of Management Annals, 11(1): 1-32.
- Gubbi, S.R., Aulakh, P.S., Ray, S., Sarkar, M.B., Chittoor. (2010). Do international acquisitions by emerging-economy firms create shareholder value? The case of Indian firms. Journal of International Business Studies, 41(3): 397-418.
- MUST READ. Haleblian, J., Devers, C.E., McNamara, G., Carpenter, M.A., Davison, R.B., (2009). Taking stock of what we know about mergers and acquisitions: a review and research agenda. Journal of Management, 35(3), 469-502.
- Hoskisson, R.E., & Hitt, M.A. (1993). Antecedents and performance outcomes of Diversification: a review and critique of theoretical perspectives. Journal of Management, 16(2), 461-509.
- MUST READ. Jemison, D. B., & Sitkin, S. B. (1986). Corporate Acquisitions: A Process Perspective. Academy of Management Review, 11(1): 145-163.
- King, D.R., Dalton, D.R., Daily, C.M., & Covin, J.G. (2004). Meta-analyses of post-acquisition performance: indications of unidentified moderators. Strategic Management Journal, 25(2), 187-200.
- Laamanen, T., & Keil, T. (2008). The performance of serial acquirers: toward an acquisition program perspective. Strategic Management Journal, 29(6), 663-672.
- MUST READ. Larsson, R., & Finkelstein, S. (1999). Integrating Strategic, Organisational, and Human Resource Perspectives on Mergers and Acquisitions: A Case Survey of Synergy Realisation. Organisation Science, 10(1): 1-26.
- Meyer, C. N. (2008). Value leakages in Mergers and Acquisitions: why they occur and how they can be addressed. Long Range Planning 41(2), 197-224.
- Nahavandi, A., & Malekzhadeh, A. R. (1988). Acculturation in Mergers and Acquisitions. Academy of Management Review, 13(1), 79-90.
- MUST READ.Napier, N. K. (1989). Mergers and Acquisitions, Human Resource Issues and Outcomes: A Review and Suggested Typology. Journal of Management Studies, 26(3): 271-289.
- Quah, P., & Young, S. (2005). Post-acquisition management: A phases approach for cross-border M&A. European Management Journal, 23(1): 65-75.
- Ranft, A. L., & Lord, M. D. (2002). Acquiring New Technologies and Capabilities: A Grounded Model of Acquisition Implementation. Organization Science, 13(4): 420.
- Teerikangas, S., & Véry, P. (2006). The Culture-Performance Relationship in Mergers and Acquisitions: From Yes/No to How. British Management Journal, 17(s1): 31-48.
- Teerikangas, S., Véry, P. & Pisano, V. (2011). Integration manager’s value-capturing roles and acquisition performance. Human Resource Management, September, 50(5): 651-683.
- Teerikangas, S. (2012). Dynamics of Acquired Firm Pre-Acquisition Employee Reactions. Journal of Management, March: 599-639.
- MUST READ. Teerikangas, S. & Thanos, I. (2017). Looking into the ‘black box’ – silent forces underlying M&A success and performance. European Journal of Management. In print.
- Teerikangas, S. & Irrmann, O. (2016). Post-acquisition cultural change: co-habiting the tension between practiced & espoused values. Management International Review, March: 1-32.
- Weber, Y., Tarba, S.Y., & Reichel, A., (2011). International Mergers and Acquisitions performance: acquirer nationality and integration approaches. International Studies of Management & Organization, 41(3), 9-24.
- Zhang, J., Ahammad,MF., Tarba, S., Cooper,CL., Glaister, KW & Wang, J. (2015). The effect of leadership style on talent retention during merger and acquisition integration: Evidence from China, The International Journal of Hman Resource Management, 26 (7), 1021-1050.
- Zollo, M., & Meier, D. (2008). What is M&A performance? The Academy of Management Perspectives, 22(3): 55-77.
- Books on mergers and acquisitions
CLASSIC. Haspeslagh, P. C., & Jemison, D. B. (1991). Managing acquisitions. New York: The Free Press.
HANDBOOK. Faulkner, D., Teerikangas, S., & Joseph, R. (2012). Handbook of Mergers and Acquisitions. Oxford University Press.
Reading list – Session 4 (Alliances and joint ventures)
- Readings on joint ventures
- MUST READ. Bamford, J., Ernst, D., & Fubini, D. G. (2004). Launching a world-class joint venture. Harvard Business Review, February: 90-100.
- Brouthers, K., & Bamossy, G. J. (2006). Post-formation processes in Eastern and Western European Joint Ventures. Journal of Management Studies, 43(2): 203-229.
- Cyr, D. J., & Schneider, S. (1996). Implications for learning: Human resource management in East-West joint ventures. Organization Studies, 17(2): 207-226.
- Geringer, M. J., & Hebert, L. (1989). Control and performance of international joint ventures. Journal of International Business Studies, Summer: 235-254.
- Killing, P. J. (1982). How to make a global joint venture work. Harvard Business Review, May-June: 120-127.
- Reus, T., & Rottig, D. (2009). Meta-analyses of international joint venture performance determinants. Management International Review, 29: 607-640.
- Readings on alliances (most of these apply to joint ventures as well)
- Becerra, M., Lunnan, R. & Huemer, L. (2008). Trustworthiness, risk, and the transfer of tacit and explicit knowledge between alliance partners. Journal of Management Studies 45(4): 691-713
- Bleeke, J., & Ernst, D. (1991). The way to win in cross-border alliances. Harvard Business Review, November-February: 127-135.
- Bleeke, J., & Ernst, D. (1995). Is your strategic alliance really a sale? Harvard Business Review, January-February: 97-105.
- Doz, Y. L. (1996). The evolution of cooperation in strategic alliances: Initial conditions or learning processes? Strategic Management Journal, 17(S): 55-83.
- MUST READ. Draulans, J. deMan, A., & Volberda, H. (2003). Building alliance capability: Management techniques for superior alliance performance, Long Range Planning, 36 (2): 151-166.
- Drayton, B., & Budinich, V. (2010). A new alliance for global change. Harvard Business Review, September: 56-64.
- Gomes-Casseres, B. (1994). Group versus Group: How alliance networks compete. Harvard Business Review, July-August, 62-74.
- Heimericks, K.H., Klijn, E., & Reuer, J. J. (2009). Building Capabilities for Alliance Portfolios, Long Range Planning, 42: 96-114.
- MUST READ. Hughes, J., & Weiss, J. (2007). Simple rules for making alliances work. Harvard Business Review, November: 122-131.
- MUST READ. Kale, P., & Singh, H. (2009). Managing strategic alliances: What we know, and Where do we go from here? Academy of Management Perspective, August: 45-62.
- MUST READ. Ireland, R. D., Hitt, M. A., & Vaidayanath, D. (2002). Alliance management as a source of competitive advantage. Journal of Management, 28(3): 413-446.
- Lunnan, R., & Haugland, S. (2008). Predicting and Measuring Alliance Performance: A Multi-Dimensional Analysis, Strategic Management Journal 29(5): 545-556.
- MUST READ. Moss Kanter, R. (1994). Collaborative Advantage. Harvard Business Review, July-August: 96-108.
- MUST READ. Nielsen, B. B. (2007). Determining international strategic alliance performance: A multidimensional approach. International Business Review, 16: 337-361.
- Ohmae, K. (1989). The global logic of strategic alliances. Harvard Business Review, March-April: 143-154.
Reading list – Session 5 (The dynamics and ‘how’ of collaboration)
- Adler, P., & Kwon, S. W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1): 17-40.
- Akinbode, A. I. & Clark, R. C. (1976). A framework for analyzing interorganizational relationships. Human relations, 29(2): 101-114.
- Barsade, S., & Gibson, D. E. (2007). Why does affect matter in organizations? Academy of Management Perspectives, February: 36-59.
- Barsade, S. G. (2002). The ripple effect: Emotional contagion and its influence on group behavior. Administrative Science Quarterly, 47: 644-675.
- Bengtsson, M. & Kock. S. (2014). Coopetition – Quo vadis? Past accomplishments and future challenges. Industrial Marketing Management, 43: 180-188.
- Bengtsson, M. & Kock. S. (2000). “Coopetition” in Business Networks – to Cooperate and Compete simultaneously. Industrial Marketing Management, 29: 411-426.
- Carver, C. S. (1998). Resilience and Thriving: Issues, Models, and Linkages. Journal of Social Issues, 54: 245–266.
- Dindia, K., & Canary, D. J. (1993). Definitions and theoretical perspectives on maintaining relationships. Journal of social and personal relationships, 10: 163-173.
- Hardy, C., Phillips, N., & Lawrence, T. B. (2003). Resources, Knowledge and Influence: The Organizational Effects of Interorganizational Collaboration. Journal of Management Studies, 40(2): 321-347.
- Heracleous, L. (2004). Boundaries in the study of organizations. Human relations, 57: 95-103.
- Huy, Q. N. (1999). Emotional Capability, Emotional Intelligence, and Radical Change. Academy of Management Review, 24(2): 325-345.
- Huy, Q. N. (2002). Emotional Balancing of Organizational Continuity and Radical Change: The Contribution of Middle Managers. Administrative Science Quarterly, 47(March): 31-69.
- Kahn, W. A. (1990). Psychological Conditions of Personal Engagement and Disengagement at Work, Academy of Management Journal, 33(4): 692-724.
- Klimoski, R., & Mohammed, S. (1994). Team mental model: Construct or Metaphor? Journal of Management, 20(2): 403-437.
- Mayer R.C., Davis J. H., & Schoorman F. D. (1995). An integrative model of organizational trust. Academy of Management Review 1995, 20 (3): 709-734.
- McKnight, H., Cummings, L. L., & Chervany, N. L. (1998). Initial trust formation in new organizational relationships. Academy of Management Review, 23(3): 473-490.
- Nahapiet, J. N., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2): 242-266.
- Niven, K., Holman, D., & Totterdell, P. (2012). How to win friendship and trust by influencing people’s feelings. Human Relations, published online.
- Saarinen, E., & Hamalainen, R. 2010. The originality of Systems Intelligence. Book chapter. Available online.
- Staw, B. M., & Sutton, R. I., & Pelled, L. H. (1994). Employee positive emotion and favorable outcomes at the workplace. Organization science, 5(1): 51-71.
- Tidström, A. (2014). Managing tensions in coopetition. Industrial Marketing Management, 43: 261-271.
- Vera, D., & Crossan, M. (2005). Improvisation and innovative performance in teams. Organization science, 16(3): 203-224.
- Zahra, Z. A., & Gerard, G. (2002). Absorptive Capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2): 185-203.
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