Showing papers in "Journal of Management Studies in 1991"

Strategic flexibility for high technology manoeuvres: a conceptual framework

Abstract: Strategic flexibility is proposed as an expedient capability for managing capricious settings, such as those confronted in technology-intensive arenas. This article examines the historical evolution of the concept of flexibility and analyses its different senses by relating it to other concepts with a ‘family resemblance’. A conceptual framework is subsequently developed, which integrates the temporal and intentional dimensions of flexibility. Four archetypal manoeuvres, derived from the framework, are proposed as a means of attaining strategic flexibility. The deployment of these manoeuvres is exemplified by means of selected strategic engagements of firms in the computer peripherals arena. The article concludes with a discussion of the theoretical and practical implications of the research.

Entrepreneurial Versus Conservative Firms: A Comparison of Strategies and Performance

Abstract: This article describes a study of the business strategies and performance levels of firms with entrepreneurial and conservative strategic postures. Data were collected from the senior executives of 111 small manufacturing firms. Results indicate that entrepreneurial firms differ from conservative firms in terms of their growth rates as well as several financial, operating, and marketing-related variables. the data suggest that the patterns of strategic behaviour associated with high performance are different for entrepreneurial and conservative firms.

Coming to terms with the field: understanding and doing organizational ethnography*

Abstract: This article argues that ethnography is inadequately understood and recognized within administration science as a method for studying organizational culture. Ethnographic analyses of organizational cultures are largely absent from the administration science literature, primarily because such work derives from a social constructionist understanding of science. The knowledge of organizations thus provided is interpretive, denying the subject—object dichotomy inherent in mainstream empiricist applications of social analysis. In addition, whereas ethnographic analysis and writing is an appropriate method for studying culture, organizational ethnography is substantially different from ethnographic studies of whole (and largely foreign) societies. Formal organizations are both partial and specialized in comparison to general societal organization. The conceptual and practical toolkit the organizational ethnographer brings to the field and the writing table is thus tailored to this particular research arena, and is outlined here.

Strategic planning and financial performance: a meta‐analytic review*

Abstract: After two decades of research, the effect of strategic planning on a firm's performance is still unclear. While some studies have found significant benefits from planning, others have found no relationship, or even small negative effects. Interpretation of these findings is confounded by the fact that many of these studies base their findings on a small number of firms. This article uses meta-analysis to aggregate the results of 29 samples on a total of 2496 organizations. Cumulation of previous studies found modest correlations between planning and nine performance measures. Extensive measurement problems suggest that these findings underestimate the true relationship between planning and performance.

Diversification and Performance: Critical Review and Future Directions*

Abstract: This article uses an integrative theoretical framework to review existing empirical research on the diversification-performance relationship along the three different research streams which have studied this relationship. the article highlights the considerable diversity in the findings across studies in each stream and identifies certain key theoretical and methodological issues which might help to explain the observed diversity. Also discussed is a contingency-based perspective and several useful directions for future research.

Corporate Contributions As Managerial Masques: Reframing Corporate Contributions As Strategies to Influence Society*

Abstract: Researchers have argued that corporate contributions serve as necessitated investments, social currency, or social responsibility efforts. This article integrates and extends these perspectives to develop a view of corporate contributions as managerial masques. It argues that managers use corporate contributions to influence various stakeholders including stockholders, consumers, employees, investors, publics and societal institutions. A strategic framework is used to explore how managers promote managerial and corporate interests through corporate contributions. the societal implications of managers' discretionary uses of corporate contributions are also discussed.

A study of organizational ‘framework’ and ‘process’ modalities for the implementation of business‐level strategic decisions*

Abstract: : Based on structuration theory, organization framework and process are proposed as two modalities for implementing intended business-level strategies. A model is developed in which the components of these two modalities and related to the implementation of low cost and differentiation strategies. The implementation of fifty-seven strategies in integrated circuits, petroleum, and health care firms are used to test the research hypotheses. The findings suggest that strategy implementation in these firms utilized both framework and process structural elements, but that a different implementation gestalt characterized each strategy. Implications for strategy implementation and for structuration theory are discussed.

Champions of change and strategic shifts: the role of internal and external change advocates*

Abstract: Change advocates who participate in the process of strategy-making can play an important role in enabling organizational adaptation. To examine the nature of this role, this article investigates the influence on strategic shifts of two such participants - new members of the top management team and management consultants. Empirical findings suggest that managers see these two types of change agents as having two different kinds of influence on strategic shifts. Specifically, the change agent role of management consultants is viewed as one that creates pressure for change by helping to shape new managerial perspectives of the environment. In contrast, the change agent role of new members of the top management team is viewed as one that counteracts inertial forces that may block the implementation of change. These results suggest that management consultants may be much more useful in stimulating changes in the ways executives think about their environment than they are in implementing radical strategic changes. To overcome institutional resistance to extreme strategic shifts, organizations may need to resort to stronger political and symbolic actions, such as promoting or hiring new top executives in key leadership roles.

Determinants of strategic planning systems in large organizations: a contingency approach*

Abstract: This study investigates the relationship among four design parameters of planning systems and five different firm and environmental characteristics. The impact of this multivariate relationship on organizational effectiveness is then examined using a sample of 115 large manufacturing firms. The findings show general support for the proposition that, in order to be effective, a strategic planning system should be designed in such a way that the specific situational setting of the firm is reflected in the design. The analysis also indicates that firms adopt a more flexible planning system - captured here by two key variables, planning horizon, and frequency of plan reviews - as the level of environmental complexity increases. Implications for future research are discussed.

Organizational symbolism and ideology

Abstract: The purpose of this article is to discuss organizational symbolism research from a critique of ideology perspective. Various aspects of ideology as a metatheoretical concept are discussed. Criteria governing when it might be appropriate to conduct a critical analysis of ideological elements in research texts are also suggested. These include restricted social autonomy of researchers, socio-political relevance and ideological usefulness of research products, social fashionability of research areas, pseudo-objective style, absence of indicated self-reflection and lack of manifested awareness of the social context of research in research publications. The organizational symbolism research field is discussed in relation to ideology and some influential texts are interpreted in the light of ideology-critique. the criteria for a sensitive reading of research texts in terms of problematical ideological elements are applied and their relevance illustrated. the article also discusses the field of organizational symbolism in terms of Habermas' concepts of cognitive interests, emancipation and undistorted communication.

Chairmen and Chief Executives: an Exploration of Their Relationship

Abstract: This longitudinal study of the relations between 20 general managers and their chairmen in the UK National Health Service has wider implications despite its distinctive setting. It showed that the two roles are very dependent upon each other, and occupy overlapping domains, so that what each can do is considerably affected by the other's behaviour. the chairman has more power to determine their relative domains so that studies of individual chief executives should take account of this relationship. the ways in which both chairmen and general managers played their roles differed widely. One reason for the differences in the chairmen's roles was the wide variation in the time that they gave to the job. Different types of relationship are described. the most common was that of partners where the two complemented each other. the study crosses different literatures: corporate management, leadership, role theory and managerial work and behaviour. Its main concern is with managerial work and behaviour but it also has some implications for corporate management.

Uk venture capital funds and the funding of new technology‐based businesses: process and relationships*

Abstract: Through the 1980s the UK venture capital industry, with its perceived focus on risky and innovative businesses, has experienced substantial growth in terms of the number of funds, amounts invested and number of individual investments. In this article, the Tyebjee and Bruno (1984) venture capital deal creation model which was originated in the US has been used to explore the process of venture capital provision and the development of relationships between venture capital funds and operating business managements. An empirical study of how UK-based venture capital funds operate has been undertaken. The findings generally corroborated the model in a UK context. It was also observed that while venture capitalists actively worked to nurture good relationships with operating business managements they were prepared to act decisively and proactively to protect their investments when they saw them being threatened fundamentally. There vas also some evidence which suggested a slackening of interest in innovative, technology-based businesses, particularly those in their early stages of development. Further work is needed to identify if there are conceptual problems with the provision of venture capital to these types of businesses or implementation problems which are tractable.

Strategic investment decision-making: complexities, politics and processes*

Abstract: This article is a preliminary report on an investigation into the processes of investment decision-making. Three case studies from three firms are presented which show disparities in a number of aspects of process, for example, the length of time taken to arrive at a decision, the number and intensity of disagreements and uncertainties encountered. Data were collected for these cases through semi-structured interviewing from multiple informants in the three organizations, thereby permitting the use of analysis of variance techniques of the different perspectives given by informants. Perceptions of the effectiveness of the decisions were also gathered. One finding from the study is that the decisions with the lowest perceived effectiveness (in firm HE) also lost support from those involved in making the decision during the process, although the decision was eventually implemented. This decision also had the least agreement amongst informants as to the main sources of disagreements. Informants of all three decisions saw effect upon product quality and productivity, fit with business strategy and competitive position of the company as the most important factors to take into account in evaluating the decisions. In firm CG, however, there were disagreements as to how the investment should be evaluated. In the conclusions to the article a disucssion is given as to the nature of evaluation procedures in relation to the developing theory of information systems.

Commodity bundling for competitive advantage: strategic implications

Abstract: Commodity bundling involves grouping related products together into a unified market offering. It is a familiar approach in a number of industries, yet strategic and structural implications are not well developed. This article presents a descriptive model of the potential advantages of commodity bundling, the fit between firm competences and customer needs, and the decision to bundle. Effects on adaptation, type of innovation, and organization structure are discussed. Managerial implications and research propositions from case studies of 16 corporations, and from strategy, marketing and economic theory are presented.

An investigation of industry and firm structural characteristics in corporate turnarounds

Abstract: This article uses the structure/conduct/performance framework as an underpinning to investigate the attributes of turnaround firms. Turnaround is defined as a substantial improvement of the firms's return on assets relative to the average return of its industry. Industry and firm structural characteristics including concentration, industry growth, R&D, advertising, market share, size, diversification, capital intensity and margins are identified. The results of a series of univariate and multivariate tests run on a sample of turnaround and non-turnaround firms indicate that size, R&D, and an interaction between operating margin and advertising can be helpful in explaining some turnaround situations.

Middle managers: victims or vanguards of the entrepreneurial movement?

Abstract: The purpose of this article is twofold; first, to provide a critical review of a number of approaches to corporate entrepreneurship and second, to do this by focusing on the role and fate of middle managers as corporate entrepreneurs. By concentrating on middle managers it is intended to highlight the contradictions that pervade the literature on corporate entrepreneurship. The article identifies three approaches to corporate entrepreneurship and examines how each provides different views and prescriptions for the middle manager as corporate entrepreneur. This article raises important issues for those seeking to implement entrepreneurial strategies or develop a general framework for innovation in large corporations.

A test of performance similarity among strategic group members in conforming and non‐conforming industry structures

Abstract: Empirical tests have produced mixed support for a membership-performance link in strategic groups, perhaps due to incomplete treatment of industry forces We argue that strategic group concept is more useful for explaining performance differences among firms in some industries (where conditions favour conformity in firm conduct) than others Using three industry structure constructs as criteria, 47 four-digit SIC industries are classified into ‘conforming’ or ‘non-conforming’ industry samples Firms are then clustered into strategic groups in a separate treatment for each sample Performance differences among groups are tested under conforming and non-conforming industry conditions Tests confirm membership effects on ROA and ROE are significantly stronger in ‘conforming’ industries, where stronger regression relationships between conduct variables and performance also obtain

The Effect of Decision-Making Styles and Contextual Experience On Executives' Descriptions of Organizational Problem Formulation*

Abstract: This study investigated the sensitivity of executives' descriptions of the problem-formulation process to decision styles, to the decision functions that comprise decision styles, and to executive experience. to refine previous research in this area, four types of organizational problem were included for comparison: strategic, operating, human relations, and technical. In addition, the study included executive experience with each problem type, rather than general management experience. the results indicated that decision functions explained more of the variation in problem descriptions for all four of the problem types than did either decision styles or experience. Particularly, the sensing perceptual function related to problem descriptions of the illstructured problem types, strategic and human-relations, and the thinking judgemental function related to problem descriptions of the well-structured problem types, operating and technical. Though this offered support for the premise suggested by Ramaprasad and Mitroff (1984) regarding the usefulness of decision functions, it also raised concern about the available technology for measuring executives' experience in particular contexts.

The impact of spouse's career-orientation on managers during international transfers

Abstract: The increasing internationalization of business and the rise of dual-earner couples in the labour force combine to make the area of international human resource management and career development complex and important. This article examines results obtained from 67 American expatriate managers (EXM) in Japan of whom 47 per cent were part of a dual-earner couple in America. the study found that career-oriented spouses were almost seven times as likely to find employment after an international transfer as non-career-oriented spouses. It is argued that because career-oriented spouses in general were able to find employment and avoid major job interruptions, there was no significant difference between the adjustment of expatriate managers whose spouses worked in the US before the transfer but not after and EXMs whose spouses worked before and after the transfer.

Assessing Mobility Barriers In Dynamic Strategic Groups Analysis

Abstract: The Mobility Barriers Paradigm (Caves and Porter, 1977) has strongly influenced research in strategic management, particularly in the areas of competitive analysis and strategic groups. In this article we develop a procedure called MOBIUS, based on ‘match ratios’(MRs), in order to identify those competitive variables which act as mobility barriers in a particular industry. We also attempt to classify mobility barriers in terms of the degree of observed mobility around key strategic variables and the extent to which change is desired on these variables. the MOBIUS procedure is illustrated briefly in the context of the pharmaceutical industry.

Whatever happened to the philosopher-king? the leader's addiction to power

Abstract: This articles postulates the existence of a number of conscious and unconscious forces which make leaders reluctant to relinquish power. It is suggested that a major reason for the unwillingness to let go is the transferential effects of leadership. Both mirroring and idealizing transference reactions are discussed. In addition, there is the ageing factor which may contribute to the addictiveness of power, since ageing can evoke a strong need for compensatory strivings. the talionic principle - meaning in this case the conscious or unconscious fear that the loss of power will be followed by some form of retaliation for previous acts - may be another factor contributing to power's addictiveness. In this context the role of envy is emphasized. Finally, the existence of a ‘fear of nothingness’ is postulated, that is, a form of anxiety which leads to a need to defeat death by leaving some kind of legacy. It is suggested that holding onto power is linked to the fear that this legacy may be destroyed.

Acquisition and divestiture as a response to competitive position and market structure

Abstract: One theory of acquisition motivation holds that some acquisition activity is a defensive reaction to weak or deteriorating industry conditions and competitive position. Designated the ‘defensive diversification hypothesis’, this motive has not been tested directly by relating firms' competitive circumstances to their subsequent acquisitive behaviour. This study does so. Results show that a firm's prior circumstances are related to the intensity of both its acquisitions and divestitures, as well as the type of firms acquired.

Receipt of information and influence over decisions in hospitals by the board, chief executive officer and medical staff

Abstract: This article examines relationships between receipt of internal administrative information in hospitals, influence over general management decisions, and the extent to which certain organizational characteristics predict the receipt of information by each of the three major groups in hospitals: the board, the CEO, and the medical staff. Using a US national sample of 287 non-profit community hospitals, CEOs were found to receive the greatest amount of information and had highest influence while medical staffs were lowest on both measures. of five major organizational characteristics, hospital size emerged as the single strongest predictor of receipt of information for both boards (beta =−0.28, p 0.001) and medical staffs (beta =−0.42, p 0.001). Overall, the five dependent variables explained 18 per cent of the variance in receipt of information by boards and 28 percent of the variance for medical staffs.

The effects of formalization on departments of a multi‐hospital system*

Abstract: This study tests five propositions concerning the relationships between formalization, technological complexity and organizational performance. Propositions are based on Hage's axiomatic theory, but reinterpreted in terms of Lawrence and Dyer's readaptation hypothesis. Data were collected by questionnaire from 348 respondents from 92 units of an eight-member government-operated multi-hospital system. Measures were of formalization, complexity, co-ordination, climate for change, quality of care and morale. In general, more support was found for the readaptation hypothesis than for the traditional hypotheses of the Hage theory. In nursing units, formalization tended to have small, negative effects, and management decision-making should probably aim to loosen up structures. In non-nursing (clinical services) units, effects were greater and largely positive, suggesting the need for tightening up structures in order to promote readaptation.

The impact of the product/production process interaction on the evolution of strategic response

Abstract: This article synthesizes previous research on the interaction between product and production process, and the impact of that interaction on the evolution of strategic response. This interaction has major implications for the competitiveness and productivity of the firm. The authors identify characteristics of the interaction that allow a more complete analysis of its relation to firm strategic response, productivity and competitiveness.