Showing papers in "California Management Review in 1984"
TL;DR: In this paper, the authors present a model which identifies entrepreneurial activity as a natural and integral part of the strategic process in large, established firms and offers a conceptual framework to help top management assess entrepreneurial business proposals.
Abstract: This article presents a model which identifies entrepreneurial activity as a natural and integral part of the strategic process in large, established firms and offers a conceptual framework to help top management assess entrepreneurial business proposals. It also examines various organization designs for structuring the relationship between entrepreneurial endeavors and the corporation.
535 citations
TL;DR: In this article, the contribution of economic analysis to issues in strategic management is reviewed and an assessment of the respective contributions of different industrial organization paradigms to strategic management issues is presented.
Abstract: This article reviews the contribution of economic analysis to issues in strategic management. It explores why orthodox economic theory has an uneasy tension with the concerns of strategic managers, outlines some important recent contributions from industrial organizations, and attempts to develop some normative principles from recent theoretical and empirical work in transactions cost economics. The article also attempts an assessment of the respective contributions of different industrial organization paradigms to strategic management issues.
417 citations
TL;DR: In the years to come, "social responsibility of business" will no longer mean "Doing Good" or "Not Doing Harm" but will have to come to mean converting social problems into opportunities for profitable business as discussed by the authors.
Abstract: Increasingly, "Social Responsibility of Business" in the years to come will no longer mean "Doing Good" or "Not Doing Harm." It will have to come to mean converting social problems into opportunities for profitable business.
356 citations
TL;DR: Contradictory accounts of Honda9s success in the world motorcycle industry demonstrate the need to challenge our overemphasis on "strategy" in explaining their success as mentioned in this paper.
Abstract: Contradictory accounts of Honda9s success in the world motorcycle industry demonstrate the need to challenge our overemphasis on "strategy" in explaining their success. Alternative perspectives are needed to cope with the managerial challenges of the eighties.
348 citations
TL;DR: In this article, the authors present a current account of how a cross-section of managers and executives deal with values in the workplace, including organizational goals they pursue most vigorously, the kind of people they admire most as colleagues, and the way they approach ethical dilemmas.
Abstract: What are the key values that guide American managers—the organizational goals they pursue most vigorously? the kind of people they admire most as colleagues? the way they approach ethical dilemmas in the workplace? This article presents a current account of how a cross-section of managers and executives deal with values in the workplace.
311 citations
TL;DR: In this article, the authors report on several surveys which examine the changes in industry capital budgeting techniques which have occurred between 1960 and 1980, and reveal that the increased use of sophisticated capital-budgeting techniques has been accompanied by a substantial increase in respondent satisfaction with their capital-planning procedures.
Abstract: This article reports on several surveys which examine the changes in industry capital budgeting techniques which have occurred between 1960 and 1980. It reveals that the increased use of sophisticated capital budgeting techniques has been accompanied by a substantial increase in respondent satisfaction with their capital budgeting procedures.
143 citations
TL;DR: The authors examined the current distribution of female managers sent in expatriate positions by 686 Canadian and American firms and found that only 3% of all managers in the responding firms are women.
Abstract: In view of the dramatic increases in international business by North American Firms, the need for sophisticated international managers can be expected to increase. This article examines the current distribution of female managers sent in expatriate positions by 686 Canadian and American firms. Despite the growing numbers of women found in domestic management, this survey reveals that only 3% of all expatriate managers in the responding firms are women. Although women are being sent overseas in managerial and professional capacities by a broad range of industries, gender remains a significant factor in understanding the distribution of North Americans working overseas.
142 citations
TL;DR: A third view is proposed, that the best performing companies are packages of superb skills that lead to constant adaptation to changing circumstances.
Abstract: Twenty years ago, management analysis focused on organization—structure and systems—with the external environment being given short shrift. The pendulum has now swung to the opposite extreme, with the analysis of external strategy dominating contemporary thinking about management. This article proposes a third view, that the best performing companies are packages of superb skills that lead to constant adaptation to changing circumstances.
87 citations
TL;DR: In this article, the authors examine eight major positions from government nationalization at one extreme to attempts to restore direct shareholder control at the other, in between are the positions of "democratize it," "regulate it", "pressure it," trust it, ignore it, and induce it.
Abstract: Who should control the large widely held corporation? How? And for the pursuit of what goals? This article seeks to bring some clarity to what has been a century of confusing debate. Eight major positions are examined, from government nationalization at one extreme to attempts to restore direct shareholder control at the other. In between are the positions of "democratize it," "regulate it," "pressure it," "trust it" (social responsibility), "ignore it" ("it pays to be good"), and "induce it" ("pay it to be good"). Each position is analyzed from an organizational rather than a political or ideological perspective. Together, these positions represent a portfolio from which society can draw to reconcile social and corporate needs and objectives.
78 citations
TL;DR: In this paper, the conditions under which specialism is a viable strategy and also examines the unique managerial problem of specialism, which is the most common organizational strategy of extreme specialism.
Abstract: Strategic theory generally neglects the organizational strategy of extreme specialism. But thousands of firms follow this strategy, often with overwhelming success. Examples are drawn from four industries. This article explores the conditions under which specialism is a viable strategy and also examines the unique managerial problem of specialism.
78 citations
TL;DR: In this article, the authors propose a more sophisticated and methodologically rigorous approach to strategic studies for both researcher and practitioner, which avoids the need for retrospective case studies and offers promising results.
Abstract: Research on business strategy suffers because it often relies on retrospective case studies. Strategic alternatives are discussed without information on the range of existing practices. In addition, the rate at which new strategies are adopted and implemented is unknown. Studying populations of organizations over time avoids these problems and offers promise for a more sophisticated and methodologically rigorous approach to strategic studies for both researcher and practitioner.
TL;DR: In spite of the good intentions and strenuous efforts by both scholars and practitioners, the resources management function has failed to have any significant impact on management policy, responding to problems only when they arise.
Abstract: This article reviews the "best practices" in personnel and human resources management as advocated by teachers and researchers in the field. In spite of the good intentions and strenuous efforts by both scholars and practitioners, the resources management function has failed to have any significant impact on management policy. Rather it has been and remains today a reactive function, responding to problems only when they arise. This article analyzes the reasons why the "best" human resource management policies have not been widely adopted and suggests how their utilization might be encouraged.
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TL;DR: In this article, the authors show that under conditions of uncertainty, there is little evidence that use of these techniques makes for more effective decision-making, and that these biases may be less efficient than simple random behavior.
Abstract: Modern managers still believe in magic. Some of the superstitions they practice include forecasting, new product market research, capital budgeting, and long-range strategic planning. Under conditions of uncertainty, there is little evidence that use of these techniques makes for more effective decision making. However, like all superstitions, they do relieve anxiety and permit us to cope with ambiguous situations. The danger is that they may build biases into our decisions, and that these biases may be less efficient than simple random behavior. Better decision making under uncertainty requires a greater tolerance for ambiguity.
TL;DR: This article assess the appropriateness of various business strategies more indirectly by considering whether they are responsive to the external environment, involove a sustainable competitive advantage, relate appropriately to other firm strategies, provide adequate flexibility, are consistent with the business mission and long-term objectives, and are organizationally feasible.
Abstract: Forecasting the profit stream and risks associated with a business strategy can be difficult. It is thus useful to assess the appropriateness of various business strategies more indirectly by considering whether they are responsive to the external environment, involove a sustainable competitive advantage, relate appropriately to other firm strategies, provide adequate flexibility, are consistent with the business mission and long-term objectives, and are organizationally feasible.
TL;DR: In this article, the authors examine how issue management attempts to integrate corporate strategy and the management of public affairs from a practitioner's perspective, from the point of view of how issues management is an art which requires critical analysis and synthesized thinking, and how it can help the company anticipate and respond to changes in the external environment.
Abstract: This article examines, from the practitioner's perspective, how Issue Management attempts to integrate corporate strategy and the management of public affairs. Issues management is an art which requires critical analysis and synthesized thinking. When properly integrated into the company's strategic planning and decision-making process it can help the company anticipate and respond to changes in the external environment.
TL;DR: The firm should be a partnership and not a battleground for management and labor as mentioned in this paper, and American industry must make a number of major changes in their management practices and their conception of the firm.
Abstract: American industry has lost its former position of competitive superiority. If American companies are to compete successfully in the world marketplace, they must make a number of major changes in their management practices and their conception of the firm. Specific innovations are necessary in employment procedures, salary and compensation arrangements, and training and promotion of managers. The firm should be a partnership and not a battleground for management and labor. If we continue to focus on short-term results and give excuses for not making these changes, American industry is courting failure.
TL;DR: This paper examined and identified the mechanics of U.S.-Japan business negotiations; how a company prepares for such negotiations; the factors that contribute to the success or failure of such negotiations, and what can be done to improve future negotiations.
Abstract: This article examines and identifies the mechanics of U.S.-Japan business negotiations; how a company prepares for such negotiations; the factors that contribute to the success or failure of such negotiations; and what can be done to improve future negotiations. Data was collected from 114 U.S. firms that had affiliate or subsidiary operations in Japan.
TL;DR: Nader and Andrews as discussed by the authors argue that the ultimate responsibility for the ethical conduct of a company rests with its chief executive officer and not its board and point out the difficulty in ascribing the board's ethical responsibility to particular constituents in view of constant changes in the makeup of shareholders, employee needs, and societal preferences.
Abstract: In their presentations to the Fifth Annual Conference on Business Ethics, Ralph Nader and Kenneth R. Andrews address the issue of the ethical responsibility of the corporate board. Nader insists that the boards of American corporations must become more open and responsive to their shareholders, employees, industries, and society as a whole in order to regain public confidence in management status and actions. Andrews, however, points out the difficulty in ascribing the board's ethical responsibility to particular constituents in view of constant changes in the makeup of shareholders, employee needs, and societal preferences. Andrews claims the ultimate responsibility for the ethical conduct of a company rests with its chief executive officer and not its board.
TL;DR: In this article, the authors suggest that effective, innovative firms capitalize on strategic initiatives that originate on the firing line at lower management levels, and that there is more to effective corporate performance than merely developing comprehensive strategic plans and strong corporate cultures.
Abstract: Is there more to effective corporate performance than merely developing comprehensive strategic plans and strong corporate cultures? Recent research suggests that effective, innovative firms capitalize on strategic initiatives that originate on the firing line at lower management levels.
TL;DR: The authors analyzes the various meanings of industrial policy and concludes that the United States already has an industrial policy, a bad one, and that it seriously needs a much more effective one.
Abstract: This article examines why even the mention of industrial policy in the United States has become so controversial. It analyzes the various meanings of industrial policy and concludes that the United States already has an industrial policy—a bad one—and that it seriously needs a much more effective one. It also details some of the specific policies that must be implemented in order to improve the competitive position of American industry in international commerce.
TL;DR: The U.S. manufacturing strategy and policy have been assumed and not taken into account in the formulation of company strategy and the competitive quality of American products has not been maintained as discussed by the authors.
Abstract: Comparative productivity statistics among the industrialized countries show that the U.S. position is being eroded. Furthermore, the competitive quality of American products has not been maintained. The reason is that American managers have had their attention taken by marketing and finance. They have ignored the manufacturing function and are paying dearly for that omission. Manufacturing strategy and policy have been assumed and not taken into account in the formulation of company strategy. The central focus for the 1980s should be on defining manufacturing strategy and developing it in the context of overall company strategy.
TL;DR: In this article, the authors argue that businesses must learn to address their management actions in terms of social responsibilities and avoid future negative reactions in the form of new laws and knotty regulations, and establish an ongoing and beneficial relationship with society that is not sacrified when closings become inevitable.
Abstract: Plant and business closings have become a serious problem both for the individuals and communities directly affected and for the businesses themselves, who must find ways to effectively manage the closings they find necessary and must then also deal with the inevitable damage to their public image. Even beyond dealing with the recent legislative, labor union, and community responses to closings and shutdowns, businesses must learn to address their management actions in terms of social responsibilities. By being sensitive to the changing social environment, business can not only avoid future negative reactions in the form of new laws and knotty regulations, but it can establish an ongoing and beneficial relationship with society that is not sacrified when closings become inevitable.
TL;DR: The origins of this dilemma and of the adversarial relationship between business and government lie in the unusual institutional makeup of American society as mentioned in this paper, and the historical background casts modern proposals for deregulation, reprivatization, and other shifts of authority from the public to the private spheres in a different light, and suggests a series of pillars helpful to achieving legitimacy in the mixed economy of the 1980s.
Abstract: The relationship between the public and private spheres has raised questions of legitimacy in America. The origins of this dilemma and of the adversarial relationship between business and government lie in the unusual institutional makeup of American society. Because big business came earlier in America than did big government, it progressed faster here than in other countries, but at the same time was assumed to be less legitimate. This historical background casts modern proposals for deregulation, reprivatization, and other shifts of authority from the public to the private spheres in a different light, and suggests a series of pillars helpful to achieving legitimacy in the mixed economy of the 1980s.
TL;DR: The loyalty and sense of purpose which is so deeply embedded in successful Japanese organizations is not a cultural or inherited trait, but a result of a practiced commitment on the part of Japanese managers.
Abstract: Many reasons have been offered to explain why leading Japanese companies have been so successful, but the single most important reason is the loyalty and sense of purpose which is so deeply embedded in successful Japanese organizations. This is not a cultural or inherited trait. It is a result of a practiced commitment on the part of Japanese managers. They have demonstrated that business goals, sales quotas, profit objectives, ROI, and any other measurable criteria have little meaning if they must stand by themselves. To realize the enormous creative potential and productive strength of an organization requires that managers practice and demonstrate loyalty and a sense of purpose, which can inspire and motivate employees to dedicate themselves to the long-range success of their company.
TL;DR: William Hambrecht as discussed by the authors examines the history and origins of new business explosion in California and explores the future possibilities for investment in high technology in the Silicon Valley region of the United States.
Abstract: In recent years, new business formation and venture capital have achieved a remarkable popularity. High technology industries in Silicon Valley have been the leading beneficiaries of this trend. Investment broker William Hambrecht examines the history and origins of this new business explosion in California and explores the future possibilities for investment in high technology.
TL;DR: The authors cautions American companies against attempting to imitate the Japanese system of management by demonstrating how many of the policies associated with Japanese management practices are in fact becoming less prevalent in Japan itself.
Abstract: This article cautions American companies against attempting to imitate the Japanese system of management by demonstrating how many of the policies associated with Japanese management practices are in fact becoming less prevalent in Japan itself.
TL;DR: This article explored the applicability of Arendt's action philosophy as a guide for managing under organizational pressures to obey orders instead of conscience and presented a managerial philosophy that combines independent, individual thinking and judging with "civic" group action with other managers.
Abstract: This article explores the applicability of Arendt's action philosophy as a guide for managing under organizational pressures to obey orders instead of conscience and presents a managerial philosophy that combines independent, individual thinking and judging with "civic" group action with other managers. This "organization citizen" type manager is contrasted with: the "Eichmann" type manager who does not think about organization-caused harm; the "Richard III" type manager who intentionally cooperates with harmful behavior in exchange for personal gain; and, the "Faust" type manager who cooperates with harmful behavior for what he considers a greater mission of his organization.
TL;DR: Ouchi as discussed by the authors traces the rise of the Japanese computer industry from near collapse to international prominence and points out how the success was a result of collaboration and teamwork, the basis of what he calls an "M-Form Society."
Abstract: In an excerpt from his new book, The M-Form Society, William Ouchi traces the rise of the Japanese computer industry from near collapse to international prominence and points out how the success was a result of collaboration and teamwork—the basis of what he calls an "M-Form Society." To regain its competitive edge, American business and government must learn to strike a more appropriate balance between competition and cooperation.
TL;DR: Nader and Andrews as mentioned in this paper argue that the ultimate responsibility for the ethical conduct of a company rests with its chief executive officer and not its board, and point out the difficulty in ascribing the board9s ethical responsibility to particular constituents in view of constant changes in the makeup of shareholders, employee needs, and societal preferences.
Abstract: In their presentations to the Fifth Annual Conference on Business Ethics, Ralph Nader and Kenneth R. Andrews address the issue of the ethical responsibility of the corporate board. Nader insists that the boards of American corporations must become more open and responsive to their shareholders, employees, industries, and society as a whole in order to regain public confidence in management status and actions. Andrews, however, points out the difficulty in ascribing the board9s ethical responsibility to particular constituents in view of constant changes in the makeup of shareholders, employee needs, and societal preferences. Andrews claims the ultimate responsibility for the ethical conduct of a company rests with its chief executive officer and not its board.
TL;DR: The demarketing of Rely brand tampons in the wake of the toxic shock crisis in 1980 illustrates the complex interaction between law and corporate social responses as mentioned in this paper. But these models of corporate social responsibility cling to a one-dimensional view of the law and thus fail to describe accurately this altered relationship.
Abstract: The expansion of federal regulation and tort liability have greatly increased the impact of legal institutions in the contemporary business environment. Prevailing models of corporate social responsibility cling to a one-dimensional view of the law and thus fail to describe accurately this altered relationship. The demarketing of Rely brand tampons in the wake of the toxic shock crisis in 1980 illustrates the complex interaction between law and corporate social responses.