Determinants of performance in rare strategic events

Kristina Vaarst Andersen, Karin Beukel

Abstract

The paper develops and tests a theoretical framework explaining how emotions and learning affect outcomes of rare strategic events, namely Intellectual Property litigations. We investigate how organizations’ negative emotions influence performance outcome in IP litigations negatively. Though cumulative learning in rare strategic events is scarce, and cannot be understood through the standard framework of routines and capability development, we argue that firms may learn from rare events, and propose that learning moderates the negative effect of emotions. We test this utilizing data on all publically available IP litigation cases in China from 2001 to 2009 (n=13,030). We find that when
organizations undergo emotional negative stress they lose IP litigations more often, but development of roadmaps though past successes moderate the negative effects from emotional distress.
Original languageEnglish
Publication date2015
Number of pages1
Publication statusPublished - 2015
EventStrategic Management Society: Strategy Expanding Making Sense of Shifting Field and Firm Boundaries - Denver, United States
Duration: 4 Oct 20157 Oct 2015

Conference

ConferenceStrategic Management Society
Country/TerritoryUnited States
CityDenver
Period04/10/201507/10/2015

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