Tomi Laamanen
Title
Prof. Dr. Dr.
Last Name
Laamanen
First name
Tomi
Email
tomi.laamanen@unisg.ch
Phone
+41 79 1285 485
81 results
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Item type:Publication, The role of CEO integrity in M&A decision-makingResearch Summary While the influence of CEO characteristics on M&A decisions has long spurred researchers’ interest, little attention has been devoted to the ramifications of CEO integrity—the adherence to generally accepted norms and standards. We investigate how CEO integrity influences different stages of the M&A decision process. Specifically, we argue that while CEO integrity reduces self‐serving behavior, it may also become a golden cage that constrains CEOs’ latitude of action. Accordingly, we find that CEO integrity decreases the probability of Type I errors (errors of commission) but increases the probability of Type II errors (errors of omission) in M&A decision‐making. We contribute to theory development by putting forward CEO integrity as an important personality construct for upper echelons research to build on and extend further. Managerial Summary This paper examines how CEO integrity influences M&A decision‐making, providing key insights for corporate strategy. Analyzing data from S&P 1500 firms (2006‐2021), we find that CEOs with higher integrity are less likely to engage in frequent or large‐scale M&As, particularly avoiding cross‐border deals due to higher uncertainty and potential risks. High‐integrity CEOs also tend to pay lower acquisition premiums and take longer to complete deals, reflecting a cautious and thorough approach. While CEO integrity helps protect firms from costly mistakes it may also lead to missed growth opportunities, indicating a trade‐off between stakeholder considerations and strategic risk‐taking. Boards may need to tailor governance frameworks to optimize the balance between the benefits and constraints of CEO integrity.Type:journal articleJournal:Strategic Management JournalScopus© Citations 2 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Comprehensive vs. Speed: Investor Reactions to Due Diligence Length under Varying Industry ConditionsAcquisition decision-making often entails significant information asymmetries, which acquirers seek to mitigate through comprehensive due diligence analyses. While due diligence can help reduce the risk of acquisition failure, conducting thorough due diligence also slows down the decision-making process, consumes resources, and delays the realization of synergies. Drawing on decision comprehensiveness theory, we argue that the relationship between due diligence speed and acquirer stock market returns follows an inverted U-shaped curve, in which the optimal point is contingent on the decision-making context. Based on an analysis of a sample of 501 acquisitions of S&P 1500 firms, we find support for the existence of a curvilinear relationship and the moderating effects of industry complexity and dynamism, but not industry munificence. Our findings contribute to an enhanced understanding of the due diligence process and extend the existing research on the influence of external contingency factors in optimizing comprehensiveness and speed in strategic decision-making.Type:journal articleJournal:Strategic OrganizationScopus© Citations 1 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, An Audience Heterogeneity View of Markets: Contributions, Tensions, and Agenda for Future Research(SAGE Publications, 2025-02-05); ; Withers, MichaelProducers’ resource allocation, performance, and survival depend on how market audiences identify, evaluate, and value them. While research has focused on producers’ heterogeneity, it has not consistently addressed audiences’ heterogeneity despite its critical consequences on producers’ decisions and market dynamics. This review integrates three research perspectives—ecological, socio-cognitive, and optimal distinctiveness—to offer a clearer comprehension of audience heterogeneity. It distinguishes between-audience heterogeneity from within-audience heterogeneity and regroups existing but scattered findings under two audience heterogeneity dimensions: audience plasticity and audience multiplexity. Avenues for research build on these distinctions and underscore the relationships between audience heterogeneity and market temporality, individual reactions (e.g., rooted in ideology and emotions), and technology (in particular AI-enhanced categorization).Type:journal articleJournal:Journal of ManagementScopus© Citations 1 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Artificial intelligence in adaptive strategy creation and implementation: Toward enhanced attentional control in strategy processesAbstract This article focuses on the deployment of proprietary artificial intelligence (AI) systems in strategy creation and implementation processes, with a specific focus on their role in enhancing organizational attentional control. By employing the attention-based view (ABV) as an overarching theoretical framework, we examine how company-specific AI systems trained on proprietary data can support strategy processes. We identify three key contributions of AI in strategy creation and implementation processes: (1) broadening organizational attention to external and internal developments, (2) democratizing strategic processes through improved transparency and inclusivity, and (3) accelerating feedback loops with real-time monitoring of strategy implementation progress. Potential challenges associated with the deployment of AI systems for attentional control are also addressed. The paper concludes by putting forward potential directions for future research.Type:journal articleJournal:Long Range PlanningVolume:58Issue:4Scopus© Citations 10 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Heuristics in Organizations: Toward an Integrative Process Model(2024-06-27); ; Christopher BinghamHeuristics play an important role in organizational decision-making. Although management and organizational scholars have contributed significantly to our understanding of heuristics in organizations over the past seven decades, the literature has become fragmented over time. Three parallel streams of research—(1) heuristics and biases, (2) fast-and-frugal heuristics, and (3) simple rule heuristics—have emerged with somewhat conflicting views on the origins, use, and implications of heuristics. Despite their shared focus, these research streams tend to ignore or decry one another and operate in isolated camps. The purpose of our review is to integrate three largely disconnected streams to provide a more holistic view of heuristics in organizations. To do so, we review and synthesize the literature and put forward an integrative process model of heuristics in organizations. The model suggests that management and organizational researchers should pay closer attention to (a) the emergence of individual-level heuristics, (b) the conversion of individual-level heuristics to the organizational level, and (c) the evolution of an organization’s portfolio of heuristics. Based on this novel process model, we set forth a fresh agenda for future research.Type:journal articleJournal:Academy of Management AnnalsScopus© Citations 22 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, And the subsidiary lives on: Harnessing complex realities in the contemporary MNE(Springer Nature Switzerland AG, 2022-07-29)Scopus© Citations 28 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Temporal Dynamics in Acquisition Behavior: The Effects of Activity Load on Strategic Momentum(Society for the Advancement of Management Studies and John Wiley & Sons Ltd., 2022-12-20); Maula, MarkkuMomentum theory suggests that acquisition experience leads to acquisition momentum in the form of a higher likelihood of subsequent acquisitions of the same type. However, this argument has been challenged theoretically and empirically. We reconcile conflicting predictions and findings of prior research and extend momentum theory by incorporating activity load as a novel causal mechanism to both replicate the base finding and explain deviations from it. We find that a high activity load due to increased acquisition activity acts as a counterforce to momentum, decreasing the likelihood of subsequent acquisitions of the same type. Moreover, we also find that the interplay of routines, cognitive frames, and activity load causes companies to alternate between different types of acquisitions – from small to large and from large to small – as management engages in attention modulation to preserve momentum. Taken together, our arguments and findings contribute to an improved understanding of temporal patterns of acquisition behaviour.Type:journal articleJournal:Journal of Management StudiesVolume:60Issue:1Scopus© Citations 9 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Capability Development in Infrequent Organizational Processes: Unveiling the Interplay of Heuristics and Causal Knowledge(Society for the Advancement of Management Studies and John Wiley & Sons Ltd., 2022-11-14); Zollo, MaurizioWe investigated the role of heuristics in decision-making in infrequent and heterogeneous organizational processes. In our multiple-case study, we tracked individual managers' knowledge, how managers collectively articulated and codified knowledge, and how they used it in mergers and acquisitions (M&A) decision-making. We developed a process model that explains (a) the evolution and the interplay between heuristics and causal knowledge and (b) the implications of these processes for decision-making. More precisely, we found that some managers possessed and used rough heuristics – heuristics developed via limited or non-existent firsthand experience. Because rough heuristics were often faulty, they led to errors if used in a different context. In contrast, other managers possessed and used causal knowledge – knowledge explaining causal regularities in the environment. Causal knowledge was associated with higher quality decision-making and better performance in subsequent acquisitions. The problem that our focal companies faced was that causal knowledge often evaporated during attempts at collective articulation and codification, causing the conversion of causal knowledge into rough heuristics. We contribute to the organizational heuristics literature by improving our understanding of the role of heuristics in infrequent and heterogeneous organizational processes. At a more general level, we contribute to the capabilities development literature by identifying three paths that capabilities development can take. We also offer important implications for managers.Type:journal articleJournal:Journal of Management StudiesScopus© Citations 19 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Extending the Dynamic Equilibrium Model of Paradox: Unveiling the dissipative dynamics in organizationsThe dynamic equilibrium model of organizing has become an influential theoretical framework in paradox research. The model describes paradox management as tightrope-walking, as actors cope with paradoxical tensions through continuous microshifts. The underlying assumption is that once actors accept the paradox and support opposing poles in a consistently inconsistent manner, they can effectively manage organizational tensions. We argue that paradoxical tensions cannot be subsumed under managerial control in this way due to the emergent and unpredictable nature of paradoxes in organizations. Hence, in addition to needing to balance on a tightrope, the tightrope walker may find the rope suddenly pulled in an unexpected direction by a strong gust of wind. To advance theory development, we put forward the concept of dissipative equilibrium to better capture the temporary nature of balance and the continuous vigilance and interventions needed from management to (re)balance an organization in the presence of unexpected developments that are beyond management’s control.Type:journal articleJournal:Sage JournalsVolume:Organization Theory, Volume 3, Issue 3Scopus© Citations 33 - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Toward a routine-based view of interfirm rivalryAlthough organizational routines have attracted increasing attention in strategy and organization research, they have received surprisingly limited attention in competitive dynamics scholarship. Our essay seeks to advance a routine-based view of interfirm rivalry by bridging the competitive dynamics and routine literatures. We put forward a conceptual model of the routine-based view of interfirm rivalry that is centered on “competitive action routines.” The model clarifies the roles that managers play in driving a firm’s competitive behavior, challenges the assumption of routine-based rigidity in competitive behavior, and adds nuance to our understanding of managerial cognition in competitive dynamics. Moreover, the routine-based view offers new insights regarding the awareness-motivation-capability framework, and amplifies previous calls to broaden the methodological repertoire of competitive dynamics research.Type:journal articleJournal:Strategic OrganizationScopus© Citations 15