Publication:
Managing Policy Reversals: Consequences for Firm Performance

Simple item page
dc.contributor.authorJandhyala, Srividya
dc.contributor.authorBlake, Daniel J.
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-01-27T12:32:40Z
dc.date.available2025-01-27T12:32:40Z
dc.date.issued2019-05-14
dc.description.abstractThe recent revival of populism and nationalism across many parts of the world threatens to unravel the market-oriented reforms of the previous era. We examine the impact of the reversal of a previously adopted market-expanding policy on organizational performance. We argue that these policy reversals are contested; affected firms undertake a broad range of political and nonmarket activities to alter the implementation of the policy and buffer themselves from adverse consequences. However, these activities can increase policy uncertainty while making new demands on management, leading to diminished investment and a reallocation of finite managerial resources. The result is that firm performance on operational parameters suffers, including in locations that are not directly affected by the policy reversal. To empirically isolate this effect, we exploit an unexpected policy reversal in the context of telecommunications firms in India. Through an example caselet, we first outline the political and nonmarket activities of one firm affected by the unexpected policy reversal. We then empirically examine the performance of affected and unaffected telecommunication firms using a difference-in-differences approach to provide support for our arguments. The online appendix is available at https://doi.org/10.1287/stsc.2019.0083.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationBlake, D. J., & Jandhyala, S. (2019). Managing policy reversals: Consequences for firm performance. Strategy Science, 4(2), 111-128. https://doi.org/10.1287/stsc.2019.0083
dc.identifier.doihttps://doi.org/10.1287/stsc.2019.0083
dc.identifier.issn2333-2077
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3484
dc.issue.number2
dc.journal.titleStrategy Science
dc.language.isoen
dc.page.final128
dc.page.initial111
dc.page.total18
dc.publisherInstitute for Operations Research and Management Sciences
dc.relation.departmentStrategy
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.titleManaging Policy Reversals: Consequences for Firm Performance
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number4
dspace.entity.typePublication
relation.isAuthorOfPublication3e43dfda-4510-4887-b8d5-72900cba7590
relation.isAuthorOfPublication.latestForDiscovery3e43dfda-4510-4887-b8d5-72900cba7590
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
The Impact of Individual Differences in Holistic-Analytic Thinking Style and Product Incongruencies on Word of Mouth.pdf
Size:
415.72 KB
Format:
Adobe Portable Document Format
Download
Collections
Research Articles