995: Opening the Black Box of Diversification: Mechanisms and Dynamics (12676)

Organizer(s)

• MJ

  Michael Jacobides

  London Business School, United Kingdom

Participant(s)

• CM

  Catherine Magelssen

  London Business School, United Kingdom
• MM

  Mingyu Ma

  -, Spain
• JS

  Juan Santalo

  IE Business School, Spain

Discussant(s)

• CB

  Carliss Baldwin

  Harvard Business School, United States
• CH

  Constance Helfat

  Tuck School of Business at Dartmouth, United States

Should we re-think commonly held assumptions about how large firms operate? If so, what are the implications for scholars and practitioners? This symposium aims to open the black box of how large organizations operate and foster a rich discussion of some of the commonly held assumptions and propositions in the field based on recent micro-level empirical evidence. Considering the increasingly broad, digitally-powered, multi-business firms; rise of new factors underpinning the benefits and costs of firm scope; growing complexities from climate crisis and diverse regulatory environments; and availability of data; the field may be ripe for such an endeavor. This symposium draws on three recent, cutting-edge papers that offer a detailed empirical analysis of the mechanisms that operate within large corporates. The first analyzes the contents of internal formal contracts between organizational units. Its findings push back against the foundational theoretical distinction between the choice of contracts and hierarchy in theories of the firm that has been taken for granted by scholars. The second uncovers the trade-off between the benefits from synergies and the flexibility to redeploy in adapting to regulatory contexts. The third articulates a framework for the upsides and downsides of firm scope and identifies an increasingly important set of benefits related to common ownership akin to those that emerge in firms that co-exist in an ecosystem. This symposium aims to foster a rich discussion, led by two leading scholars who will delve into the manuscripts, common threads, and consider the implications for scholars and practitioners in the field.

Presentations:

• 16:00 – 17:30 CT (GMT-5/UTC-5)

  995: From related diversification to internal ecosystems: A granular view of synergy & value destruction (12676)
  

  Author: Michael G. Jacobides – London Business School

  Author: Mingyu Dalbert Ma – -

  Author: Yuri Romanenkov – Evolution Ltd & London Business School
• 16:00 – 17:30 CT (GMT-5/UTC-5)

  995: Synergy or Redeployment? Examining Environmental Pollution Spillovers in Multi-Unit Firms (12676)
  

  Author: Teresa Antonia Dickler – Philipps-U. Marburg

  Author: Juan Santalo – IE Business School
• 16:00 – 17:30 CT (GMT-5/UTC-5)

  995: How do Internal and External Contracts Differ? Evidence from the Semiconductor Industry (12676)
  

  Author: Catherine Magelssen – London Business School

  Author: Kyle J. Mayer – U. of Southern California

  Author: Beverly Rich – U. of Southern California