Anju Seth

• PhD
• Professor at Virginia Tech

Frontiers of Strategic Alliance Research - edited by Farok J. Contractor March 2019

Since their liberalization in the 1990s, there has been a sharp increase in foreign direct investment flows into emerging economies. A defining characteristic of these flows is the increasingly important role of mergers and acquisitions (M&A) relative to greenfield investments as the preferred mode of undertaking FDI. While these acquisitions may a...

Este estudo propõe um Modelo de Análise Estrutural de Julgamentos de Atos de Concentração, com o intuito de facilitar a compreensão e a previsibilidade, por agentes econômicos e pesquisadores, do fenômeno dos julgamentos antitruste. Adicionalmente, o referido modelo subsidia de informação os reguladores, com vistas à promoção da estabilidade de mar...

Conflitos entre políticas públicas e falhas na coordenação de ações estatais são problemas enraizados nas administrações públicas em todo o mundo, o que pode gerar desperdícios de recursos escassos ou inibir a maximização da eficiência de custos e qualidade dos serviços prestados. Uma vez que as causas dos conflitos entre políticas públicas têm ele...

Agency theory can be viewed as a special branch of the theory of incomplete contracts. Whenever one person is authorized to act on behalf of another, they are in an agency relationship: a special type of (implicit or explicit) contractual relationship wherein the latter is the principal and the former the agent. The agency relationship becomes inte...

This study investigates the determinants and consequences of the efficiency of resource allocation in multibusiness firms. We find that greater cognitive diversity among top and division managers is associated with decreased resource allocation efficiency. When diversity is greater top managers find it more difficult to verify the value benefits of...

This symposium intends to examine the recent and emerging changes in the macro institutions of four major emerging economies or economic regions and discuss their implications for corporate governance. The four economies or economic regions to be covered are China, India, Russia and Latin America, and the four presenters in this symposium will each...

Big Time College Athletics is a fascinating phenomenon, one that presents the organizational scholar with intriguing questions. On the one hand, as expressed in statements by university leaders, there is minimal congruence between BTCA and the mission of universities. On the other hand, BTCA continues to grow and, some might argue, thrive. Three pa...

Research has examined the effects of managerial share ownership on business diversification, typically from the incentive alignment perspective. Yet, share ownership also shifts risks to managers (the efficient managerial contracting perspective). Furthermore, the effects of managerial ownership on international diversification are unexplored. We e...

Firms pursue international diversification to create value. According to real options theory, firm value can be associated with assets-in-place or future growth opportunities. The markets that the firm selects play a critical role in determining the nature of firm value created from international expansion. We examine how the location of diversific...

This article uses insights gained from the unique context of subsistence marketplaces, or the base of the pyramid, to put forth a sustainable market orientation for businesses. Using qualitative research and case studies of businesses, ingraining social good in a product-relevant sense is argued to be central and essential for businesses in subsist...

Purpose: The purpose of the paper is twofold: first, to examine whether the progress of strategic management research has been damaged by an excessive focus on statistical significance to the exclusion of substantive significance and second, to provide recommendations for improving research practice toward establishing the substantive significance...

This paper examines the choice of mode for a multinational enterprise and a local firm to exploit their complementary capabilities. We develop a combined real options and game-theoretic model of modal choice by incorporating a range of factors drawn from the dynamic capabilities theory and transaction cost or organizational economics. The factors s...

Using qualitative research and case studies, we argue that firms should internalize social good in order to succeed in subsistence markets. We develop micro and macro level rationale to show that customer and societal welfare concerns should move to the center of strategic planning and permeate business functions and processes.

This paper complements previous research on investment in firm-specific human capital by applying real options analysis. Our framework suggests that the parties receive valuable options to exit the contract when information becomes revealed in the future, but these options may be more valuable for one party than the other. Companies and workers att...

What does a real options perspective add to the understanding of strategic alliances? Strategic alliances as a subject of study in international business and strategic management have been examined through a variety of theoretical lenses. In this chapter, we discuss how real options theory contributes to the understanding of the phenomenon. As real...

Previous studies on international competitive strategies identify a number of loosely defined strategy types and suggest that the choice among them is based on their relative productive efficiency (i.e. ability to exploit such factors as economies of scale, economies of scope, and location economies). Our analysis highlights the additional role of...

We conduct an investigation of the sources of gains and losses in cross-border acquisitions in light of different motives for undertaking these transactions: synergy-seeking, managerialism and hubris. We find that the data are consistent with the expectation that multiple sources of value creation exist in synergistic cross-border acquisitions: ass...

At the beginning of the twenty-first century, the structure of corporate ownership is undergoing major change. The Rise of Fiduciary Capitalism chronicles the rise of fiduciary institutions-primarily public and private pension funds-which now own almost 50 percent of the equity of American corporations. In turn, approximately 50 percent of American...

This paper extends previous theoretical explanations of diversification that build on economies of scope and transaction costs in input markets. We argue that since realizing the benefits of diversification often involves the acquisition of new knowledge (in addition to redeploying a firm's existing knowledge), a firm's absorptive capacity should a...

This study examines the motives underlying foreign acquisitions of U.S. firms, estimates the extent of value creation associated with such acquisitions, and examines how total gains are shared between acquiring firms and targets. We show that the synergy hypothesis is the predominant explanation for our sample of foreign acquisitions of U.S. firms....

Joint ventures (JVs), defined as independent organizations formed by the pooling of resources and sharing of equity by two or more firms, are being formed at an increasingly rapid pace. While much empirical research has examined the conditions which favor the formation of JVs, less attention has been paid to the equally important issues of control...

Recent changes in the legal environment faced by US corporations suggest that the shareholder-manager conflict of interest, and the effectiveness of mechanisms to narrow this divergence, are issues of continuing importance. This study examines the linkages between institutional, market and legal mechanisms to control managerial discretion in manage...

This paper explores the use of regression analysis in conducting research on corporate governance. We highlight that combinations of governance mechanisms together act to mitigate the shareholder-manager agency problem, and examine the implications of this idea for designing empirical research on corporate governance using regression models. We out...

Peer Reviewed http://deepblue.lib.umich.edu/bitstream/2027.42/68723/2/10.1177_105649269653006.pdf

Research on the determinants and effects of various governance mechanisms typically assumes that these mechanisms operate independently. However, since a variety of mechanisms are used to achieve alignment of the interests of shareholders and managers, we propose that the level of a particular mechanism should be influenced by the levels of other m...

Research on the determinants and effects of various governance mechanisms typically assumes that these mechanisms operate independently. However, since a variety of mechanisms are used to achieve alignment of the interests of shareholders and managers, we propose that the level of a particular mechanism should be influenced by the levels of other m...

A controversial aspect of the management buyouts that were popular throughout the 1980s is the potential for a conflict of interest to arise when a manager bids to acquire the firm he manages. This study examines 184 management buyouts and reports three findings. First, returns to pre-buyout shareholders are greater when managers must bid against o...

Theories of the firm provide a perspective for thinking about organizational objectives and a framework for analysing important research problems. Here, we demonstrate the usefulness of several economic theories of the firm for guiding strategy research. We evaluate the relevance of each theory with regard to how the underlying conceptualization of...

This study examines the nature of post-transaction restructuring activities for 32 large U.S. corporations that underwent management buyouts between 1983–89. This study (i) provides evidence on the extent and type of divestment and acquisition activities under private ownership; (ii) documents the outcomes associated with MBOs and the longevity of...

The purpose of this paper is to expand the discussion of the ‘state-of-the-science’ in strategy research. We critically examine the role that theory plays in strategic research, and describe the principles underlying good theory. From a philosophy of science perspective, we argue that: (1) both inductive and deductive methods are valid ways of gene...

This study provides a conceptual framework and an empirical methodology to assess the relative importance of different sources of value creation in acquisitions. The empirical results indicate that value creation in related acquisitions is associated with economic efficiencies hypothesized to arise both from economies of scale and scope and from op...

This study provides a conceptual framework and an empirical methodology to assess the extent of value creation in acquisitions. Arguments are presented to examine why related acquisitions might not outperform unrelated acquisitions on average. New measures of value creation are developed which resolve the difficulties with measures used by earlier...

The primary objective of this study is to extend the literature on corporate growth and diversification by examining the sources of value creation associated with different acquisition/diversification strategies. A distinction is made between two diversification strategies: related versus unrelated diversification. Firms are considered related when...