Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2019

Abstract

Coalitions are important in organizational decision making, but the question of how coalitions arebuilt and make decisions in response to firm performance is still not sufficiently explored. In thisstudy, we develop and test theory on how potential coalitions are built through shared experience andrecruitment of allies. When organizations respond to performance relative to aspiration levels, eitheras problemistic search following low performance or opportunity exploration following highperformance, members form coalitions to influence decisions. We develop theory of coalitionformation that builds on upper echelons theory and the theory of dominant coalitions to predict howpast experience of decision makers leads to preferred actions by each member and subsequentcoalition formation. We use this theory to make new measures of potential coalitions and apply it toacquisitions made by firms in China. We find evidence that the experience of members of the keydecision making group—the board of directors—affects the potential coalition building, and hencethe type of acquisition target, as predicted.

Discipline

Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Journal

Volume

62

Issue

1

First Page

44

Last Page

65

ISSN

0001-4273

Identifier

10.5465/amj.2017.0323

Publisher

Academy of Management

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.5465/amj.2017.0323

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