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Author:Parmigiani, A.
Holloway, S.S.
Title:Actions speak louder than modes: antecedents and implications of parent implementation capabilities on business unit performance
Journal:Strategic Management Journal
2011 : MAY, VOL. 32:5, p. 457-485
Index terms:strategic management
corporate governance
parent companies
performance appraisal
restaurants
service
USA
Freeterms:dining industry
Language:eng
Abstract:The firm's ability to generate rents, grow, and survive are affected by firm boundaries and strategic execution. Boundaries are determined through governance mode choices (hereafter as: g-m-chs). It is suggested that parent-level implementation capabilities of operating expertise attained through related experience and coordination from collocation combine with g-m-chs. to jointly affect performance. By utilizing theories of organizational economics and testing predictions in more than 70 casual restaurant (dining) chains from 1998 to 2007, this paper unpacks the relationship btw. implementation, g-m-chs. and performance. It is found that parent capabilities may be more important than the fit of g-m-chs. Parent benefits are suggested to be contingent on g-m-chs. and type of performance.
SCIMA record nr: 273977
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