Monday, January 21, 2019

Department Seminar Series - DANIEL BLAKE IE MADRID - Tuesday, February 19th 2019

The Management Department
Department Seminar Series

Daniel blake

Tuesday, February 19th 2019
   Room LE CLUB  at 10:00  am

Theme:  “Additive vs adaptive nonmarket strategies: How business associations affect firms’ willingness to outsource”

  Abstract: Firms can pursue different forms of nonmarket strategies in response to institutional challenges. On the one hand firms can employ adaptive strategies by selecting governance modes that avoid the market. On the other, they can pursue additive strategies and develop institutional supplements or substitutes. In this study we investigate whether or not the pursuit of an additive nonmarket strategy dampens the need for an adaptive strategy and thereby enables firms to transact more easily in the market.  We argue that when firms do participate in the additive nonmarket strategy of participating in a business association, they will be more willing to consent to market governance and outsource a part of their operations. Through quantitative analysis of firm survey data from the World Bank, we find that firms that are members of a business association are more likely to outsource operations and that this relationship is strongest in contexts where judicial institutions provide weak enforcement of market agreements.