Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial restructuring of the industry and increasing the competitive pressure among dealers. We estimate an equilibrium model of profit...

Many critics of free-market liberalism argue that higher product-market competition and the "Anglo-Saxon" management practices it stimulates increases productivity only at the expense of employees' work-life balance (WLB). The empirical basis of these claims is unclear. To address this issue we...

We formalize firms’ research and development (R&D) diversification decisions during the pre-market phase of an emerging standards setting. Capturing transaction costs, resource-based considerations, and network effects in a two-player model, in which both agents are fully diversifiable and...

We study the implications of growth in social media communities built around an organization or its products on performance. Using follower communities of television shows on Twitter and Nielsen viewership ratings as a performance measure to test our theory, we find that doubling the number of...

Recent and ongoing investments into telecommunications infrastructure have facilitated the repeated waves of digitization, both in personal and professional life. I address the question of which actors should contribute to investment costs into telecoms infrastructure and how. One widely...

Mainstream logic supports the idea that platforms bring large benefits to firms, especially smaller ones, by opening up access to a broader set of consumers and making firms’ products easier to find. However, this argument mostly applies to transaction platforms that match consumer preferences...

We consider the merits of the recent EU’s Digital Markets Act from the perspective of innovation and value creation. We conceptualize innovation as new interactions being created by the digital platform leading to ‘value creation’, in contrast to facilitating existing interactions or...

With the increasing availability of digital technologies, many firms are planning to develop digitally-enabled business models. Digital technologies can give an impulse to realign strategies through two channels: Initial use of digital technologies may help firms spot their potential and...

We study target choice in the global telephony industry, focusing specifically on the creation of unique synergies between buyer and target through their dyadic relationships. We find that geographical proximity has the highest impact on acquisition likelihood, followed by technological...

Strategic alliances are set up to foster collaboration that cannot be achieved through market transactions. In fact, collaboration is often considered the defining feature of alliances — that is, “voluntary arrangements between firms involving exchange, sharing, or codevelopment of products,...