Essays on subjective time in strategy
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Authors
Zhou, Dongge
Issue Date
2024-08
Type
Electronic thesis
Thesis
Thesis
Language
en_US
Keywords
Management
Alternative Title
Abstract
Time is inherently important for strategy research. It could be experienced by firms in subjectively different and heterogenous ways, such as temporal focus, time horizon, temporal depth, etc. Although the subjective time and its antecedents and consequences have attracted more and more attention, this literature can be further enriched theoretically and empirically both in terms of temporal concepts studied and phenomena explained. In terms of temporal concepts, prior studies about subjective time cast almost exclusive attention to general temporal orientations that manifest in firms’ daily operations and regard them as “persistent and relatively stable”. Strategy scholars have not considered much about subjective time's dynamic features with the change of the environment. To fill this gap, we study how firms construct and perceive external shocks using the COVID-19 pandemic as the context. Results indicate in our sample, 76.7% firms perceived the pandemic to be a relatively long-term event with little change in these perceptions over time. In contrast, 23.3% firms perceived the pandemic to be relatively short term, while revising these perceptions to long term by the end of the observation period. Drawing on two notions in time related research—temporal structures and temporal work—we find firms’ initial time horizons and slack resources influence temporal duration perceptions. Our research highlights how shocks are subjectively perceived and construed by firms including in terms of their duration, while drawing attention to temporal sense-making processes within firms.
In terms of research contexts, prior studies mainly focus on single firms’ subjective time and its antecedents or consequences but overlook multiple firms’ subjective time interaction. Aiming at this gap, we explored the role of subjective time alignment between the acquirer and the target in their merger and acquisition processes. Moving beyond the traditional resource-fit perspective, this study suggests that cognition fit in temporal terms between acquirers and targets is a fundamental factor driving acquisitions, since it affects whether the two firms have similar thinking mode and coordination potential. Accordingly, we propose that certain level of temporal focus cognition alignment needs to be met to ensure smooth collaboration and coordination, thereby allowing the positive impacts of other factors on M&A performance to materialize. Using a sample of US public M&A transactions and adopting choice model and Necessary Condition Analysis, our study finds: (1) Firms with different temporal focuses are less likely to merge; (2) Acquirers and targets with different temporal focuses require more time to complete their transactions; (3) Having a similar temporal focus between the acquirer and the target is necessary (although not sufficient) for achieving high M&A performance. By introducing a necessity-based element to the cognitive fit literature in M&As, our research offers new insights into the intricate interplay between resource fit, cognition fit, and M&A efficiency.
Description
August 2024
School of Management
School of Management
Full Citation
Publisher
Rensselaer Polytechnic Institute, Troy, NY