Firm Resources and Sustained Competitive Advantage

Building Theories From Case Study Research - This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.

Building theories from case study research

�Traditional, hierarchical views of leadership are less and less useful given the complexities of our modern world. Leadership theory must transition to new perspectives that account for the complex adaptive needs of organizations. In this paper, we propose that leadership (as opposed to leaders) can be seen as a complex dynamic process that emerges in the interactive “spaces between” people and ideas. That is, leadership is a dynamic that transcends the capabilities of individuals alone; it is the product of interaction, tension, and exchange rules governing changes in perceptions and understanding. We label this a dynamic of adaptive leadership, and we show how this dynamic provides important insights about the nature of leadership and its outcomes in organizational fields. We define a leadership event as a perceived segment of action whose meaning is created by the interactions of actors involved in producing it, and we present a set of innovative methods for capturing and analyzing these contextually driven processes. We provide theoretical and practical implications of these ideas for organizational behavior and organization and management theory.

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Building theories from case study research.

This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.

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Dynamic capabilities, what are they?

The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.

Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance

Examines how major firms utilize R&D activities to create new businesses through internal corporate venturing (ICV). Using a qualitative method, this analysis was done for one large, U.S.-based high-technology firm. This firm has a new venture division, which was formed in the early 1970s. Data were obtained from the study of six major projects that were ongoing at the time of the research. This data collection included interviews with 61 firm employees involved in the projects. The key and peripheral managerial activities of the grounded process model of ICV and the flow of these activities through four venture stages are presented. The four major processes in the model are definition, impetus, strategic context determination, and structural context determination. Among the findings: It is usually the autonomous strategic initiatives of individuals at the operational level that provide the ideas for much of corporate entrepreneurship. As a result of the very autonomous nature of these initiatives, management has difficulty deciding how to deal with the new initiatives and often ignores administrative issues through the entrepreneurial process. Middle-level managers are found to play a key role in linking these autonomous initiatives to the corporate strategy of these diversified major firms. (SRD)

A Process Model of Internal Corporate Venturing in the Diversified Major Firm

This paper is based on the author's doctoral dissertation, which received a Certificate of Distinction for Outstanding Research in the field of Strategic Management, Academy of Management and General Electric Company, 1980. L. Jay Bourgeois, Arthur P. Brief, David B. Jemison, Leonard R. Sayles, Stephen A. Stumpf, and Steven C. Wheelwright have made useful comments on earlier drafts of this paper. The constructive comments of three anonymousASQ reviewers have contributed significantly to this final version. Support from the Strategic Management Program of Stanford University's Graduate School of Business is gratefully acknowledged. My thanksalsoto Barbara Sherwood forexcellent administrative assistance. This paper reports findings of a field study of the internal corporate venturing (ICV) process in a diversified major firm. It presents a grounded process model of the interlocking key activities of managers at different levels in the organization, which constitutes the strategic process by which new ventures take shape. Successful ICV efforts are shown to depend on the availability of autonomous entrepreneurial activity on the part of operational level participants, on the ability of middle-level managers to conceptualize the strategic implications of these initiatives in more general system terms, and on the capacity of top management to allow viable entrepreneurial initiatives to change the corporate strategy.*

This paper presents an intraorganizational ecological perspective on strategy making, and examines how internal selection may combine with external selection to explain organizational change and survival. The perspective serves to illuminate data from a field study of the evolution of Intel Corporation's corporate strategy. The data, in turn, are used to refine and deepen the conceptual framework. Relationships between induced and autonomous strategic processes and four modes of organizational adaptation are discussed. Apparent paradoxes associated with structural inertia and strategic reorientation arguments are elucidated and several new propositions derived. The paper proposes that consistently successful organizations are characterized by top managements who spend efforts on building the induced and autonomous strategic processes, as well as concerning themselves with the content of strategy; that such organizations simultaneously exercise induced and autonomous processes; and that successful reorientations in organizations are likely to have been preceded by internal experimentation and selection processes effected through the autonomous process.

https://www.jstor.org/stable/pdfplus/2634929.pdf

Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research

This paper presents a model of the strategic process concerning entrepreneurial activity in large, complex organizations. Previous empirical and theoretical findings can be integrated in this new conceptual framework.

The paper makes the following key points. First, firms need both diversity and order in their strategic activities to maintain their viability. Diversity results primarily from autonomous strategic initiatives of participants at the operational level. Order results from imposing a concept of strategy on the organization. Second, managing diversity requires an experimentation-and-selection approach. Middle level managers play a crucial role in this through their support for autonomous strategic initiatives early on, by combining these with various capabilities dispersed in the firm's operating system, and by conceptualizing strategies for new areas of business. Third, top management's critical contribution consists in strategic recognition rather than planning. By allowing middle level managers to redefine the strategic context, and by being fast learners, top management can make sure that entrepreneurial activities will correspond to their strategic vision, retroactively. Fourth, strategic management at the top should be to a large extent concerned with balancing the emphasis on diversity and order over time. Top management should control the level and the rate of change rather than the specific content of entrepreneurial activity. Finally, new managerial approaches and innovative administrative arrangements are required to facilitate the collaboration between entrepreneurial participants and the organizations in which they are active.

https://www.jstor.org/stable/pdfplus/2631021.pdf

Corporate Entrepreneurship and Strategic Management: Insights from a Process Study

The 5th Edition of Strategic Management of Technology and Innovation by Burgelman, Christensen, and Wheelwright continues its unmatched tradition of market leadership, by using a combination of text, readings, and cases to bring to life the latest business research on these critical business challenges. Strategic Management of Technology and Innovation takes the perspective of the general manager at the product line, business unit, and corporate levels. The book not only examines each of these levels in some detail, but also addresses the interaction between the different levels of general management - for example, the fit between product strategy and business unit strategy, and the link between business and corporate level technology strategy. Each part of the book starts with an introductory chapter laying out an overall framework and offering a brief discussion of key tools and findings from existing literature. The remainder of each part offers a selected handful of seminar readings and case studies. Almost all of the cases deal with recent events and situations, including several that are concerned with the impact of the Internet. A few "classics" have been retained, however, because they capture a timeless issue or problem in such a definitive way that the historical date of their writing is irrelevant.

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Robert A. Burgelman

Papers

A Process Model of Internal Corporate Venturing in the Diversified Major Firm

A Process Model of Internal Corporate Venturing in the Diversified Major Firm

Intraorganizational Ecology of Strategy Making and Organizational Adaptation: Theory and Field Research

Corporate Entrepreneurship and Strategic Management: Insights from a Process Study

Strategic Management of Technology and Innovation