Matthias Brauer's research while affiliated with Hochschule Mannheim and other places

Publications (48)

Article
We provide a comparative analysis of acquirer returns in acquisitions of public firms, private firms, and divested assets. On the basis of a sample of 5,079 acquisitions by U.S. software industry companies during 1988–2008, we find that acquisitions of divested assets outperform acquisitions of privately held firms, which in turn outperform acquisi...
Article
While there is an extensive body of work on how organizational routines emerge and evolve over time, there is scarcity of research on what happens when routines are disrupted or disbanded through the elimination of key individuals involved in them. This study is first to theorize and empirically examine the relationship between the magnitude of wor...
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Short-term orientation aimed at maximizing quarterly results at the expense of long-term corporate performance and survival has become severely criticized. In the face of continuously decreasing chief executive officer (CEO) tenure, CEOs, however, seem to have few incentives to embrace long-term oriented behaviour. Instead, the question of foremost...
Article
Coordinating consistent strategy implementation has been identified a key challenge for multi-national corporations. Based on intraorganizational evolutionary models of strategy formation, this paper thus empirically investigates the antecedents and temporal dynamics of strategic divergence. Strategic divergence is the deviation of a firm's resourc...
Article
Because of the "opaque" nature of divestitures, investors face considerable uncertainty in evaluating divestiture decisions and thus may look to a firm's social context, defined in terms of the pervasiveness of divestiture activity in its industry, to infer the quality of such a decision. Specifically, we propose that a firm's position in an indust...
Article
Previous studies on strategic group dynamics have generated valuable insights into the industry-level determinants of changes in strategic group membership and group strategy. Complementary to this line of research, the present study focuses on the firm-level determinants underlying shifts in firm positioning within strategic group structures. Draw...
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Der Kapitalmarkt schätzt sie nicht besonders, die diversifizierten Konzerne bzw. Unternehmensgruppen. Derartige „Mehr-Geschäfts-Unternehmen“ (MGU) werden oft als „Wertvernichter“ gesehen und mit einem „Konglomeratsabschlag“ versehen. Auch „Synergien“, als wichtiges Gestaltungselement der Konzerne, sind zum Unwort geworden. Meist seien sie nur ein H...
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Purpose – The paper aims at extending extant research on sources of divestiture gains by suggesting a novel program-based perspective on divestitures and analyzing the performance of program divestitures in comparison to single “stand-alone” divestitures. Design/methodology/approach – Based on event study methodology, the authors analyze the abnorm...
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Aufholpotenzial: In vielen Konzernen werden Synergien nicht genutzt. Der Grund: Viele Führungskräfte haben ein verengtes Synergieverständnis und verfügen nicht über die notwendigen Kompetenzen. Die Autoren zeigen, wie diese Defizite beseitigt werden können.
Article
In prior research, insights into the degree and type of corporate and divisional level manager involvement in divestiture processes have remained sparse. Based on extant empirical research on managerial processes in divestitures and a review of literature on the antecedents of divestitures, this paper identifies a set of internal and external conti...
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Purpose – The purpose of this research is to explore the potential role and the measurement of the effectiveness of boards of directors in strategy formulation and implementation – two aspects that have so far been left largely unaddressed by corporate governance research and practice. Design/methodology/approach – Based on insights from strategy p...
Article
In strategic management research, divestitures have mostly been treated as side aspects or mirror images of even broader phenomena such as corporate restructuring or mergers and acquisitions. The current article “unbundles” portfolio restructuring research by carving out the insights that have been generated on the specific industry and firm-level...
Article
In this paper we empirically investigate the temporal development of a firm’s strategy implementation consistency (SIC), i.e. the alignment between firms’ resource allocation decisions (RAD) and their articulated corporate concept (Noda and Bower, 1996; Burgelman and Grove, 1996; Love et al., 2002; Mintzberg, 1978). Doing so, we test whether (1) SI...
Article
Subsequent to a host of corporate corruption scandals, boards of directors are facing amplified pressure from investors, creditors and shareholders in a bid to ensure effective corporate governance of their investments. In previous research and public debate, the effectiveness of corporate governance structures has come under close scrutiny. Howeve...
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Wie in zahlreichen internationalen Corporate Governance Regelwerken und Richtlinien gefordert, müssen sich Aufsichtsorgane zukünftig verstärkt der Aufgabe zuwenden, die Implementierung erklärter strategischer Konzepte zu begleiten und diesbezügliche Aktivitäten der Geschäftsführung zu kontrollieren. Hierzu wird aufbauend auf Erkenntnissen der Strat...
Article
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This paper aims at developing a tentative guideline for managers of biotech firms on how to form and design network ties in biotechnology industries by integrating the findings from the analysis of the networking characteristics of the five leading biotechnology firms (Amgen, Biogen, Chiron, Genentech, Genzyme) with extant scholarly research on bio...

Citations

... Balanced solutions mean that the parent and subsidiaries agree on long-term compromises, e.g., by establishing informal personal networks to improve communication [cf. Müller-Stewens and Brauer (2009), p. 166] from which the subsidiaries can be steered more individually, i.e., Hypothesis 4 The more the decision principle 'balanced solution' is used, the higher the heterogeneity of the steering will be. ...
... Performance relative to aspiration levels has been shown to 1 With apologiesthe authors are not fans of abbreviations, and understand that many others are not either. influence strategic repositioning along with industry conditions, as specified in performance feedback theory (Schimmer and Brauer, 2012), and there has been a meta-analysis of findings from performance feedback research (Kotiloglu et al., 2021). Organizational and individual level theory has been merged to form theory on how performance feedback and risk taking is influenced by the top management team, with supporting evidence (Kolev and McNamara, 2020). ...
... So far, existing research has mostly focused on how firms' growth and expansion strategy would impact their CSR activities and has paid relatively little attention to how firms' portfolio reduction strategy (such as asset divestiture or refocusing) might influence their stakeholder or CSR strategy. Corporate divestiture activities are not the 'mirror image' of acquisition activities as these two corporate strategies are usually driven by different goals and rationales (Brauer & Wiersema, 2012;King et al., 2004;Lee & Madhavan, 2010). This omission is surprising as firms depend on the support of various stakeholder groups for long-term growth, innovative developments, and survival (Hosmer, 1994). ...
... The basic assumption is that to enhance the managerial competencies in their role of the company's competitive factor it is necessary to have good policies and programs of MSD. Moreover, the accumulated knowledge and experience gained by managers are treated as valuable assets, the replacement or reconstruction of which is costly (Brauer 2013). ...
... Hypothetically, a combination of two business units with negatively correlated performance lowers volatility and reduces risk (Low, 2009). Meanwhile, acquisitions of similar (related) businesses offer improved asset fit within an acquirer, have greater strategic potential, and are associated with higher performance (Eisenmann, 2002;Haspeslagh and Jemison, 1991;Laamanen et al., 2014). ...
... They evolve and adapt every time the actions are repeated based on how actors understand and perform their part of the routine (Feldman and Pentland, 2003). Although past research has widely explored the actions involved in routines (Feldman et al., 2016), there is less attention on the social interactions among the actors involved in routines (Howard-Grenville, 2005;Sargis-Roussel IJOPM 41,13 et al., 2017) and even much less attention on when routines evolution becomes successful (i.e. it brings higher results) (Brauer and Laamanen, 2014). By framing CI as a set of organisational routines (PM, LI and IO), our findings highlight that social interactions evolve in congruence with routines evolution, and such congruence leads to successful outputs. ...
... As multinational corporations, SLs face the tension between localregional responsiveness and global integration (Brauer & Heitmann, 2013). SLs gather information from various sources and select among geographically scattered alternatives when making decisions about expansion, innovation, operational changes, and divestiture (Chakrabarti & Mitchell, 2013). ...
... Other authors looked into the process of strategy implementation, including the factors and barriers influencing it (Kaplan and Norton 2006;Helfat and Martin 2015;Radomska 2014). Additionally, there have been studies researching the involvement of the board of directors in the process of company strategy implementation (Fiegener 2005;Ruigrok et al. 2006;Brauer and Schmidt 2008). The "involvement" of the board of directors in strategy implementation was studied in terms of its influence (Ford 1988;Li and Yang 2019), frequency of its interactions (Sapienza and Gupta 1994), effort and usefulness (Rosenstein et al. 1993;Park et al. 2018). ...
... Research supports both participative (Burgelman, 1994(Burgelman, , 1996 and hierarchical (Duryan & Smyth, 2019;Ghertman, 1988) decision making styles, indicating the contingency nature of divestiture project management. Brauer (2009) finds that a participative divestiture management style is contingent on a set of factors, including internal and external factors. He argues that divisional managers have greater knowledge over technologies and market forces, so it is essential to involve them in decisions and stakeholder relationship management. ...
... While process research examines multiple topics, including divestiture decision-making and implementation, antecedents set the foundation for later outcomes for acquisitions and divestment (Jemison & Sitkin, 1986). Consistent with an emphasis on process and antecedents, restructuring programs are recognized to result in higher performance (Brauer & Schimmer, 2010;Barkema & Shijven, 2008). We also find overlap across acquisition and divestment research, including common shortcomings, as well as relevant differences. ...