Showing papers in "Strategic Direction in 2012"

Untangling dynamic and operational capabilities: strategy for the (n)ever-changing world

Abstract: We explain why the line between dynamic and operational (or ordinary) capabilities is unavoidably blurry, draw implications for capabilities that promote economically important but seemingly gradual change, and provide recommendations for future research that takes these issues into account.

What Matters Now

Abstract: Autonomie et liberte plutot que bureaucratie et controle. Gary Hamel, gourou du management, est formel : dans un environnement de plus en plus incertain, ce qui importe avant tout est de reinventer notre facon de diriger. Une approche a mille lieues des theories du XXe siecle qui pronaient le command & control. Au contraire, la bonne facon de gonfler le moral des troupes et de leur insuffler creativite et ardeur au travail est desormais de traiter chacun en adulte, maitre de ses decisions. Et ce, dans le plus sympathique mepris des principes hierarchiques. S’appuyant sur les bonnes pratiques issues d’entreprises resolument avant-gardistes (notamment WL Gore), et examinant point par point les problemes auxquels tout dirigeant est confronte, Gary Hamel donne des cles pour inventer le management de demain et eviter les desastres d’un « printemps bureaucratique ». A lire comme un guide de survie.

Value creation and value capture with frictions

Abstract: We use a formal value-based model to study how frictions in the product market affect value creation and value capture. We define frictions as incomplete linkages in the industry value chain that keep some parties from meeting and transacting. Frictions, which arise from search and switching costs, vary across markets and over time as, for example, products commoditize and competition becomes more global. Importantly, frictions moderate the intensity of industry rivalry, as well as the efficiency of the market. We find that firms with a competitive advantage prefer industries with lower levels of frictions than their disadvantaged rivals. We show that the effect on industry attractiveness of different competitive forces, such as rivalry and barriers to entry, cannot be analyzed independently. We introduce resource development in our model to study the emergence and sustainability of competitive advantage. Firm heterogeneity emerges naturally in our model. We show that the extent of firm heterogeneity falls with the level of frictions, but sustainability increases. Overall, we show that introducing frictions makes value-based models of strategy even more effective at integrating analyses at the industry, firm and resource levels.

Corporate sustainable development: testing a new scale based on the mainland Chinese context

Abstract: According to the predominant corporate sustainable development (CSD) framework, this exploratory paper verifies that CSD construct can be modeled by integrating the dimensions of social, economic, and environmental development. We first developed and validated measurement scales for these three dimensions based on a survey of 314 managers in mainland China. Then, using structural equation modelling, we confirmed that the proposed model is valid. Therefore, our findings may allow researchers to explore CSD further, and practitioners to develop their understanding of CSD initiatives in organizations.

Selling to strategic consumers when product value is uncertain: the value of matching supply and demand

Abstract: We address the value of quick response production practices when selling to a forward-looking consumer population with uncertain, heterogeneous valuations for a product. Consumers have the option of purchasing the product early, before its value has been learned, or delaying the purchase decision until a time at which valuation uncertainty has been resolved. Whereas individual consumer valuations are uncertain ex ante, the market size is uncertain to the firm. The firm may either commit to a single production run at a low unit cost prior to learning demand, or commit to a quick response strategy that allows additional production after learning additional demand information. We find that the value of quick response is generally lower with strategic (forward-looking) customers than with nonstrategic (myopic) customers in this setting. Indeed, it is possible for a quick response strategy to decrease the profit of the firm, though whether this occurs depends on various characteristics of the market; specifically, we identify conditions under which quick response increases profit (when prices are increasing, when dissatisfied consumers can return the product at a cost to the firm) and conditions under which quick response may decrease profit (when prices are constant or when consumer returns are not allowed). This paper was accepted by Martin Lariviere, operations and supply chain management.

Advancing project and portfolio management research: applying strategic management theories

Abstract: This paper focuses on the application of strategic management theories to Project Management and Project Portfolio Management research, specifically the Resource-Based View, Dynamic Capabilities, and Absorptive Capacity. A literature review and four research experiences illustrate the advances achieved through the use of these three theoretical perspectives, and contribute to the development of this field by providing examples and guidance for theory development and future research. Commonalities between the research examples include a strong strategic focus, recognition of the importance of knowledge and learning, and research questions seeking understanding and explanation. These research experiences outline the successful application of strategic management theories to a wide range of contexts, using diverse methodologies at a variety of levels of analysis. The findings indicate a broad potential for further fruitful research stemming from the relatively recent application of strategic management theories to Project Management and Project Portfolio Management research. © 2012 Elsevier Ltd. APM and IPMA. All rights reserved.

Managing the institutional context for projects

Abstract: Project Management is widely seen as delivering undertakings ‘on time, in budget, to scope’. This conceptualization fails however to address the front-end and its management. Addressing this moves the discipline to a second, more strategic level. This paper proposes a third level of conceptualization: the institutional level, where management is focused on creating the conditions to support and foster projects, both in its parent organization and its external environment. Management here is done for and on the project rather than in or to it. We show that management at this level offers an enlarged research agenda and improvement

Embracing new media in Fiji: the way forward for social network marketing and communication strategies

Abstract: Purpose – This paper aims to outlines the power of social networking that companies in Fiji could use as the twenty‐first century media tool to facilitate marketing activities and reach out to customers more than ever before.Design/methodology/approach – The approach of the paper is generally conceptual, linking social networking to organizations, marketing activities and communications.Findings – Social networking sites such as face book has become an essential modern media channel to position firms and its brands in the market and facilitate marketing activities and communication strategies. Social media networks with its unsurpassed reach and coverage capabilities have become one of the most powerful sources of socialized media to connect people.Originality/value – The paper presents the arguments in a condensed and easy‐to‐digest format.

The globalization of social media: consumer relationships with brands evolve in the digital space

Abstract: • social networks are now clearly in the ascendancy compared to other social media forms such as blogs and user groups. since 2009, they have emerged as the primary way regular internet users stay in contact with each other. • since 2009, official company and brand websites have typically been losing audiences. We believe this is probably due, in part, to the emergence of social media marketing by brands which is an increasingly pervasive Marcoms practice. • Globally, 18% of users claim to have actively set up an online brand community, arguably the ultimate expression of consumers wishing to control their relationship with brands.

Social marketing meets interactive media: lessons for the advertising community

Abstract: Advertisers involved with social marketing are beginning to recognise the sea change that is coming due to the spread of interactive media usage throughout many subpopulations of interest. Unfortun...

Testing the waters: using collective real options to manage the social dilemma of strategic alliances

Abstract: We extend real options research by introducing the concept of collective real options and model how collective real options provide strategic alliances a mechanism to manage social uncertainty. Collective real options manage social uncertainty by producing relational small wins that develop trust. The amount of trust developed by acquiring a collective real option depends on the exposure of alliance partners. Alliance partner reputation also plays an important role in the impact of collective real options.

When budgeting backfires: how self-imposed price restraints can increase spending

Abstract: A common strategy for controlling spending is to impose a price restraint on oneself. For example, a consumer who is concerned with limiting expenses may decide before going shopping that he or she only wants to spend approximately $100 for a particular purchase. Although conventional wisdom predicts that self-imposed price restraints will decrease consumer spending, the authors show that salient price restraints can actually increase consumers' preferences for high-priced, high-quality items. The authors propose that making a price restraint salient has the effect of partitioning consumers' evaluations of price and quality, leading to larger differences in perceived quality between options and a greater focus on quality during the final decision. Thus, while budgets and other types of price restraints can limit spending by eliminating some high-priced options from consideration, this research suggests that they can also have the ironic effect of increasing consumers' spending relative to a situa...

Higher growth through the Blue Ocean Strategy: implications for economic policy

Abstract: a b s t r a c t Higher growth is a key goal of companies, governments, and societies. Economic policies often attempt to attain this goal by targeting companies of certain sizes that operate in specific industries and focus on a specific business activity. This approach to policy making has considerable shortcomings and seems to be less than fully effective in increasing economic growth. We suggest a new approach to policy making that stems directly from the entrepreneurial perspective. This approach examines a successful business strategy framework - the Blue Ocean Strategy - to discover conditions for high growth. We test the propositions on empirical data for two cases of successful high-growth business, namely Slovenian gazelles and Amazon.com. The results reveal a gap between the macro level of economic policy making to achieve higher growth and the micro level of business growth. The findings call for a change in the focus of economic policies on specific size companies, industries, and business activities to intraindus- try cooperation, collaboration between companies of different sizes, value innovation, and creation of uncontested markets.

A contextual theory of organizational learning from failures and successes: a study of acquisition completion in the global newspaper industry, 1981-2008

Abstract: This study develops and tests theory about the context-specificity and outcome-dependence of experiential learning in acquisition processes. First, we investigate whether learning from experience gained in different acquisition contexts is limited to influencing subsequent outcomes of same-context transactions. Second, we analyze whether learning patterns in response to prior successes and failures differ across acquisition contexts, depending on two properties of these contexts—the degree of structural variance and the level of stimulation of deliberate learning. Learning is assessed with respect to an underexplored organizational goal variable in acquisitions: completion of a publicly announced transaction. An analysis of 4,973 acquisition attempts in the newspaper industry in 1981‐2008 largely supports our theory. Copyright  2012 John Wiley & Sons, Ltd.

Alignment of strategy and structure in international firms: an empirical examination

Abstract: It is increasingly recognized that many multinationals face dual global and local pressures. Foreign subsidiaries are thus expected to exhibit different needs in terms of their internal integration or responsiveness to local needs. This study examines the internal alignment of strategy and structure in multinationals when such dual pressures are recognized. The findings show a lower than expected level of internal strategy–structure alignment. A number of post hoc interviews suggest that contrary to the discussion of differences across foreign subsidiaries’ external environments, dual global and local pressures are frequently experienced within the same foreign subsidiary. The balancing act of aligning strategy and structure in MNCs is thus more complex than existing theoretical frameworks predict. Multinationals may choose to prioritize selective structural characteristics to achieve sufficient levels of both integration and responsiveness.

Winning in high velocity markets: the case of BSkyB

Abstract: Purpose – Many businesses have seen their markets and competitive set transformed over the past decade. This revolutionary context has created many high‐velocity markets, where rapid change is a constant, and defining the strategic direction of a firm becomes a more complex activity. This paper seeks to argue that organizations can win in high‐velocity markets by adapting their resource base, renewing capabilities and competencies and achieving dynamic capability.Design/methodology/approach – An extensive review of business and management literature is combined with primary research into a number of large media companies.Findings – Winning in high‐velocity markets requires organizations to adapt their resource base, in a compressed timescale, due to the fast changing nature of market conditions.Practical implications – Organizations react differently in the same high‐velocity market conditions. Some will look for opportunities that will provide them with a platform for a step change in their capabilities ...