Strategic Decisions, Risk Management and Strategic Alliances: The Case of Corporate Governance at Akamai Technologies; Openwave Systems; Novell; Ask.Com (Ask Jeeves); and Firstwave Technologies, Inc.

36 Pages Posted: 5 Nov 2015

Date Written: 2015

Abstract

Akamai Technologies, Openwave Systems, Novell, Firstwave Technologies, and Ask.com (Ask Jeeves) (collectively, the "USTechCos") are US-based technology companies that have been functioning since 1999. The common characteristics among most of the USTechCos during 2001-2004, were that they were financially and operationally distressed; they didn't comply with accounting/disclosure regulations; and they derived substantial portions of their annual gross revenues from failed Strategic Alliances and the stock-market apparently assigned excessive value to many of those alliances (except for Openwave and Firstwave). This article contributes to the Corporate Governance, Strategic Decision and entrepreneurship literatures in the following ways: i) analyzing the operating context in which the USTechCos made very bad corporate governance and strategic decisions that resulted in their long-term under-performance and or the acquisition of such technology company (at a perceived low acquisition price that resulted in shareholder derivative lawsuits); and ii) develops some testable theories of corporate strategy, decision-making and adoption/diffusion of technology – such as the Dynamic Relative-Values Perception Theory and the Generalized Enviro-Cognitive Inertia Theory; iii) identifies the common characteristics of the USTechCos that may have affected their decision-making, inertia and strategies; and explains why the USTechCos were good candidates for an industry rollup (ie combining all five companies); iv) explains how the USTechCos could have improved their business strategies; and explains what types of Enterprise Risk Management measures that the USTechCos could have implemented.

Keywords: Corporate Governance; Managerial Psychology; Risk Management; Strategic Alliances and Joint Ventures; Corporate Strategy; Sarbanes-Oxley Act (USA); Social Welfare

Suggested Citation

Nwogugu, Michael C. I., Strategic Decisions, Risk Management and Strategic Alliances: The Case of Corporate Governance at Akamai Technologies; Openwave Systems; Novell; Ask.Com (Ask Jeeves); and Firstwave Technologies, Inc. (2015). Available at SSRN: https://ssrn.com/abstract=2686080 or http://dx.doi.org/10.2139/ssrn.2686080

Michael C. I. Nwogugu (Contact Author)

Independent ( email )

P. O. Box 11104
Enugu 400007, Enugu State 400007
Nigeria
2348149062100 (Phone)

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