1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.

Regression Diagnostics: Identifying Influential Data and Sources of Collinearity

While the strategy-as-practice research agenda has gained considerable momentum over the past five years, many challenges still remain in developing it into a robust field of research. In this editorial, we define the study of strategy from a practice perspective and propose five main questions that the strategy-as-practice agenda seeks to address. We argue that a coherent approach to answering these questions may be facilitated using an overarching conceptual framework of praxis, practices and practitioners. This framework is used to explain the key challenges underlying the strategy-as-practice agenda and how they may be examined empirically. In discussing these challenges, we refer to the contributions made by existing empirical research and highlight under-explored areas that will provide fruitful avenues for future research. The editorial concludes by introducing the articles in the special issue.

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Strategizing: The challenges of a practice perspective

I develop a model of framing contests to elucidate how cognitive frames influence organizational strategy making. By using ethnographic techniques to study the day-to-day practices of strategy making in one firm, I examine the ways actors attempted to transform their own cognitive frames of a situation into predominant frames through a series of interactions. Frames are the means by which managers make sense of ambiguous information from their environments. Actors each had cognitive frames about the direction the market was taking and about what kinds of solutions would be appropriate. Where frames about a strategic choice were not congruent, actors engaged in highly political framing practices to make their frames resonate and to mobilize action in their favor. Those actors who most skillfully engaged in these practices shaped the frame that prevailed in the organization. This framing perspective suggests that frames are not only instrumental tools for the ex post justification of actions taken through p...

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Framing Contests: Strategy Making Under Uncertainty

Currently, a director is classified as independent if he/she has neither financial nor familial ties to the CEO or to the firm. We add another dimension: social ties. Using a unique data set, we find that 87% of boards are conventionally independent, but that only 62% are conventionally and socially independent. Furthermore, firms whose boards are conventionally and socially independent award a significantly lower level of compensation, exhibit stronger pay performance sensitivity, and exhibit stronger turnover-performance sensitivity than firms whose boards are only conventionally independent. Our results suggest that social ties do matter, and that consequently, a considerable percentage of the conventionally independent boards are substantively not.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1355782_code555542.pdf?abstractid=1195313&mirid=1&type=2

It Pays to Have Friends

Previous research focuses on firm and business unit level ambidexterity. Therefore, conceptual and empirically validated understanding about ambidexterity at the individual level of analysis is very scarce. This paper addresses this gap in the literature by investigating managers' ambidexterity, delivering three contributions to theory and empirical research on ambidexterity: first, by proposing three related characteristics of ambidextrous managers; second, by developing a model and associated hypotheses on both the direct and interaction effects of formal structural and personal coordination mechanisms on managers' ambidexterity; and third, by testing the hypotheses based on a sample of 716 business unit level and operational level managers.

Findings regarding the formal structural mechanisms indicate that a manager's decision-making authority positively relates to this manager's ambidexterity, whereas formalization of a manager's tasks has no significant relationship with this manager's ambidexterity. Regarding the personal coordination mechanisms, findings indicate that both the participation of a manager in cross-functional interfaces and the connectedness of a manager to other organization members positively relate to this manager's ambidexterity. Furthermore, results show positive interaction effects between the formal structural and personal coordination mechanisms on managers' ambidexterity. The paper's theoretical contributions and empirical results increase our understanding about managers' ambidexterity and about how different types and combinations of coordination mechanisms relate to variation in managers' ambidexterity.

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Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms

This paper investigates the relationship between the process of strategic decision-making and management and contextual factors. First, drawing on a sample of strategic decisions, it analyzes the process through which they are taken, into seven dimensions: comprehensiveness/rationality, financial reporting, rule formalization, hierarchical decentralization, lateral communication, politicization, problem-solving dissension. Second, these process dimensions are related to (1) decision-specific characteristics, both perceived characteristics and objective typologies of strategic decisions, (2) top management characteristics, and (3) contextual factors referring to external corporate environment and internal firm characteristics. Overall, the results support the view that strategic decision processes are shaped by a multiplicity of factors, in all these categories. But the most striking finding is that decision-specific characteristics appear to have the most important influence on the strategic decision-making process, as decisions with different decision-specific characteristics are handled through different processes. The evident dominance of decision-specific characteristics over management and contextual factors enriches the traditional ‘external control’ vs. ‘strategic choice’ debate in the area of strategic management. An interpretation of results is attempted and policy implications are derived. © 1998 John Wiley & Sons, Ltd.

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Strategic decision-making processes: the role of management and context

Some planning activities of organizations operate happily; others are muddled or ritualistic A review of the activities which operate happily suggests a useful distinction between the performative sense of planning as doing something (plans as promises) and the indicative sense of planning as describing something (eg plans as forecasts) This distinction is important in the context of the management of public enterprises, where an inaccurate view of what‘corporate planning’ can achieve has distracted attention from unresolved problems of gaining commitment to agreed targets

Plans as promises: what does ‘corporate planning’ mean in a publicly‐owned corporation?

Using a framework constructed in a companion paper, we here model the internal system of resource allocation within a large state enterprise. Budgetary data are employed in order to uncover ways in which decisions relating to capital expenditure are dispersed through the organisation. Two parallel systems of budgetary decision-making are found to co-exist in this enterprise, and structural stabilities are identified in departments and budget centres. In discussing these findings we suggest that they are consistent with rational, optimum-seeking behaviour on the part of management.

David Chambers

Papers

Strategic decision-making processes: the role of management and context

Plans as promises: what does ‘corporate planning’ mean in a publicly‐owned corporation?

Areas of Local Discretion in a Centrally- Planned State Enterprise