IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v51y2014i6p869-897.html
   My bibliography  Save this article

Adaptation to Temporal Shocks: Influences of Strategic Interpretation and Spatial Distance

Author

Listed:
  • Liliana Pérez-Nordtvedt
  • Susanna Khavul
  • David A. Harrison
  • Jeffrey E. McGee

Abstract

Even when shocks in a firm's environment are predictable, their consequences are not. Using the relocation of the Dallas Cowboys Stadium as a rich case of such a disruption, we investigate how combinations of strategic interpretation and spatial distance influence incumbent business owners' decisions to pursue temporal adaptation as a response. Temporal adaptation (TA) comprises timing rather than content changes by the firm seeking to adjust to the reconfigured environment. Survey data from 168 business owners show that strategic interpretation directly influences TA decisions. However, the effect of strategic interpretation on the TA decision is moderated by the spatial (geographic) distance of the incumbent firm from the locus of the disruption. Furthermore, results suggest that through strategic interpretation, spatial distance also indirectly affects the business owners' decisions to make temporal changes. Data collected 1.5 and 4 years later suggest that TA responses are related to performance and may be indicative of a particular type of TA, organizational entrainment (OE), which concerns the synchronization of organizational activity cycles with cycles in the environment.

Suggested Citation

  • Liliana Pérez-Nordtvedt & Susanna Khavul & David A. Harrison & Jeffrey E. McGee, 2014. "Adaptation to Temporal Shocks: Influences of Strategic Interpretation and Spatial Distance," Journal of Management Studies, Wiley Blackwell, vol. 51(6), pages 869-897, September.
    • Handle: RePEc:bla:jomstd:v:51:y:2014:i:6:p:869-897
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/joms.12050
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jane E. Dutton, 1993. "Interpretations On Automatic: A Different View Of Strategic Issue Diagnosis," Journal of Management Studies, Wiley Blackwell, vol. 30(3), pages 339-357, May.
    2. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    3. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Diana Mok & Barry Wellman & Juan Carrasco, 2010. "Does Distance Matter in the Age of the Internet?," Urban Studies, Urban Studies Journal Limited, vol. 47(13), pages 2747-2783, November.
    6. Goll, Irene & Rasheed, Abdul A., 2011. "Environmental Jolts, Clocks, and Strategic Change in the U.S. Airline Industry: The Effects of Deregulation and the 9/11/2001 Terrorist Attacks," Business and Politics, Cambridge University Press, vol. 13(4), pages 1-35, December.
    7. Ken G. Smith & Curtis M. Grimm, 1987. "Environmental variation, strategic change and firm performance: A study of railroad deregulation," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 363-376, July.
    8. Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1988. "Entrepreneurs' perceived chances for success," Journal of Business Venturing, Elsevier, vol. 3(2), pages 97-108.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. Khavul, Susanna & Pérez-Nordtvedt, Liliana & Wood, Eric, 2010. "Organizational entrainment and international new ventures from emerging markets," Journal of Business Venturing, Elsevier, vol. 25(1), pages 104-119, January.
    11. Sumit Agarwal, 2010. "Distance and Private Information in Lending," The Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2757-2788, July.
    12. Heather A. Haveman & Michael V. Russo & Alan D. Meyer, 2001. "Organizational Environments in Flux: The Impact of Regulatory Punctuations on Organizational Domains, CEO Succession, and Performance," Organization Science, INFORMS, vol. 12(3), pages 253-273, June.
    13. Nancy Staudenmayer & Marcie Tyre & Leslie Perlow, 2002. "Time to Change: Temporal Shifts as Enablers of Organizational Change," Organization Science, INFORMS, vol. 13(5), pages 583-597, October.
    14. Goll Irene & Rasheed Abdul A., 2011. "Environmental Jolts, Clocks, and Strategic Change in the U.S. Airline Industry: The Effects of Deregulation and the 9/11/2001 Terrorist Attacks," Business and Politics, De Gruyter, vol. 13(4), pages 1-37, December.
    15. Adam Ozimek & Daniel Miles, 2011. "Stata utilities for geocoding and generating travel time and travel distance information," Stata Journal, StataCorp LP, vol. 11(1), pages 106-119, March.
    16. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    17. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    18. Panle Jia, 2008. "What Happens When Wal-Mart Comes to Town: An Empirical Analysis of the Discount Retailing Industry," Econometrica, Econometric Society, vol. 76(6), pages 1263-1316, November.
    19. Linda Argote & Henrich R. Greve, 2007. "A Behavioral Theory of the Firm ---40 Years and Counting: Introduction and Impact," Organization Science, INFORMS, vol. 18(3), pages 337-349, June.
    20. Karl E. Weick & Kathleen M. Sutcliffe & David Obstfeld, 2005. "Organizing and the Process of Sensemaking," Organization Science, INFORMS, vol. 16(4), pages 409-421, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, H. Shawna & Mitchell, Ronald K. & Brigham, Keith H. & Howell, Roy & Steinbauer, Robert, 2018. "Perceived psychological distance, construal processes, and abstractness of entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 33(3), pages 296-314.
    2. Smith, Celina & Nordqvist, Mattias & De Massis, Alfredo & Miller, Danny, 2021. "When so much is at stake: Understanding organizational brinkmanship in family business," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    3. de Leeuw, Tim & Gilsing, Victor & Duysters, Geert, 2019. "Greater adaptivity or greater control? Adaptation of IOR portfolios in response to technological change," Research Policy, Elsevier, vol. 48(6), pages 1586-1600.
    4. Alyson Meister & Sherry M.B. Thatcher & Jieun Park & Mark Maltarich, 2020. "Toward A Temporal Theory of Faultlines and Subgroup Entrenchment," Journal of Management Studies, Wiley Blackwell, vol. 57(8), pages 1473-1501, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sarkar, Soumodip & Osiyevskyy, Oleksiy, 2018. "Organizational change and rigidity during crisis: A review of the paradox," European Management Journal, Elsevier, vol. 36(1), pages 47-58.
    2. Albert Danso & Samuel Adomako & John Ofori Damoah & Moshfique Uddin, 2016. "Risk-taking Propensity, Managerial Network Ties and Firm Performance in an Emerging Economy," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(2), pages 155-183, September.
    3. Elie Matta & Jean McGuire, 2008. "Too Risky to Hold? The Effect of Downside Risk, Accumulated Equity Wealth, and Firm Performance on CEO Equity Reduction," Organization Science, INFORMS, vol. 19(4), pages 567-580, August.
    4. Sandri, Serena & Schade, Christian & Mußhoff, Oliver & Odening, Martin, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 30-44, October.
    5. Alexis H. Villacis & Jeffrey R. Alwang & Victor Barrera, 2021. "Linking risk preferences and risk perceptions of climate change: A prospect theory approach," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 863-877, September.
    6. Thomas M. Zellweger & Franz W. Kellermanns & James J. Chrisman & Jess H. Chua, 2012. "Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control," Organization Science, INFORMS, vol. 23(3), pages 851-868, June.
    7. Burmeister, Katrin & Schade, Christian, 2007. "Are entrepreneurs' decisions more biased? An experimental investigation of the susceptibility to status quo bias," Journal of Business Venturing, Elsevier, vol. 22(3), pages 340-362, May.
    8. Itzhak Venezia, 2018. "Lecture Notes in Behavioral Finance," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 10751, August.
    9. Artamoshina, Polina & Shirokova, Galina & Osiyevskyy, Oleksiy & Bodolica, Virginia, 2023. "ADHD symptoms of CEOs and business model innovation in the SME context," Technovation, Elsevier, vol. 128(C).
    10. Mark Partridge & M. Rose Olfert & Alessandro Alasia, 2007. "Canadian cities as regional engines of growth: agglomeration and amenities," Canadian Journal of Economics, Canadian Economics Association, vol. 40(1), pages 39-68, February.
    11. Philippe Fevrier & Sebastien Gay, 2005. "Informed Consent Versus Presumed Consent The Role of the Family in Organ Donations," HEW 0509007, University Library of Munich, Germany.
    12. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    13. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    14. Mohamed Amara & Khaled Thabet, 2019. "Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 25-51, August.
    15. Botond Kőszegi & Matthew Rabin, 2006. "A Model of Reference-Dependent Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1133-1165.
    16. Daniel Agness & Travis Baseler & Sylvain Chassang & Pascaline Dupas & Erik Snowberg, 2022. "Valuing the Time of the Self-Employed," CESifo Working Paper Series 9567, CESifo.
    17. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.
    18. Chorvat, Terrence, 2006. "Taxing utility," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(1), pages 1-16, February.
    19. T. K. Das & Bing-Sheng Teng, 1998. "Time and Entrepreneurial Risk Behavior," Entrepreneurship Theory and Practice, , vol. 22(2), pages 69-88, January.
    20. Karle, Heiko & Schumacher, Heiner & Vølund, Rune, 2023. "Consumer loss aversion and scale-dependent psychological switching costs," Games and Economic Behavior, Elsevier, vol. 138(C), pages 214-237.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:51:y:2014:i:6:p:869-897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.