Showing papers in "Strategic Management Journal in 1984"
TL;DR: In this paper, the authors explore the usefulness of analyzing firms from the resource side rather than from the product side, in analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested.
Abstract: Summary The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
18,677 citations
TL;DR: The authors examines the usefulness of subjective performance measures, obtained from top management teams, when problems are encountered in obtaining accurate performance data, such as when all or parts of such data are inextricably interwoven with corporate-wide data.
Abstract: Strategic management researchers often encounter problems obtaining objective measures of selected aspects of organizational performance that are reliable and valid. With privately-held firms, such data are frequently unavailable. With conglomerate business units, all or parts of such data are inextricably interwoven with corporate-wide data. This paper examines the usefulness of subjective performance measures, obtained from top management teams, when problems are encountered in obtaining accurate performance data.
3,323 citations
TL;DR: The research on a number of cognitive simplification processes which may affect the way decision-makers perform these tasks are summarized and their possible effects on strategic decision-making are discussed.
Abstract: Strategic decision-making can be viewed as a special kind of decision-making under uncertainty. Such decision-making involves the activities of goal formulation, problem identification, alternatives generation, and evaluation/selection. Researchers in cognitive psychology and behavioural decision theory have identified a number of cognitive simplification processes which may affect the way decision-makers perform these tasks. Within this paper, the research on these processes is summarized and their possible effects on strategic decision-making are discussed. Implications for future research in this area are also drawn.
917 citations
TL;DR: Characteristics of competitive advantage in manufacturing firms are described, a general framework for relating such advantage to corporate, business and functional levels of strategy is given, and an approach for pursuing that potential is outlined.
Abstract: Summary The primary objective of strategy is to develop and support a lasting competitive advantage. In manufacturing industries, substantial focus has been given during the early eighties to the importance of the manufacturing function's contribution to overall corporate success, and yet the apparent lack of attention (historically) to achieving that potential contribution. In this article, characteristics of competitive advantage in manufacturing firms are described, a general framework for relating such advantage to corporate, business and functional levels of strategy is given, and an approach for pursuing that potential is outlined.
673 citations
TL;DR: This paper reviews the evolution of these approaches to strategy implementation, developing four models to characterize them, and suggests a fifth one, with strategy emerging in an almost-implemented form from within the firm.
Abstract: The traditional textbook approach to strategy implementation was to treat ‘implementation’ as an activity following ‘formulation’. Usually, the topic was treated as a question of organization design, where systems and structures were manipulated in concert with strategic goals. More recent views treat implementation either as an issue of gaining prior group commitment through coalitional decision-making, or as a question of total organizational involvement through a strong corporate culture. This paper reviews the evolution of these approaches, developing four models to characterize them, and suggests a fifth one, with strategy emerging in an almost-implemented form from within the firm.
539 citations
TL;DR: In this paper, the authors discuss those biases which appear common to both managers and planners when they make judgements about risk, and discuss the implications of biased judgement in a planning context.
Abstract: Subjective judgements by planners and managers are a major component in the process of strategic planning. If such judgements are faulty, efforts at better strategic plans are likely to be misdirected. This paper discusses those biases which appear common to both managers and planners when they make judgements about risk. Implications of biased judgement are discussed in a planning context. Although we still do not know the best ways to elicit judgements, the paper concludes with a discussion of subjective sensitivity analysis which appears to offer some hope.
392 citations
TL;DR: The findings suggest that an executive's propensity to adopt a particular strategic posture depends on his perceptions of how well his firm can control its environment and on the costs of introducing change into the organization.
Abstract: This paper describes an empirical study that examines the relationship between the type of external environment in which a firm operates and the repertoire of strategic responses the firm develops to cope with crises. The findings suggest that an executive's propensity to adopt a particular strategic posture depends on his perceptions of how well his firm can control its environment and on the costs of introducing change into the organization.
312 citations
TL;DR: Investigation of factors which influenced the corporate‐level divestment decisions of large, diversified firms indicates that a business unit's strength, its relationship to other units in its firm and its parent firm's financial position compared to its competitors are important divestment influences, whereas other factors such as general economic conditions are not.
Abstract: This research investigates factors which influenced the corporate-level divestment decisions of large, diversified firms. Field research, including interviews with corporate executives of 40 large diversified firms, provided the data to test propositions developed from various literature sources. In general, thefindings from this research indicate that a business unit's strength, its relationship to other units in its firm and its parent firm's financial position compared to its competitors are important divestment influences, whereas other factors such as general economic conditions are not. Some of the findings are consistent with conventional management wisdom, but others are counterintuitive.
300 citations
TL;DR: It is found that betas for unrelated diversifiers are significantly higher than those of other firms, and possible contributions to this difference, including market power, capital structure, and capital intensity are explored.
Abstract: This paper addresses the relationship between diversification strategy and systematic risk (beta). Beta values are examined for six diversification categories, and it is found that betas for unrelated diversifiers are significantly higher than those of other firms. Possible contributions to this difference, including market power, capital structure, and capital intensity are explored.
215 citations
TL;DR: This research focused on a taxonomic analysis of the limited domain of competitive retailing strategies employed by U.S. supermarket chains for generic brand grocery products using cluster analysis, and an empirically derived taxonomy was developed.
Abstract: An important aspect of any scientific investigation involves classifying the phenomena being studied. This research focused on a taxonomic analysis of the limited domain of competitive retailing strategies employed by U.S. supermarket chains for generic brand grocery products. Using cluster analysis, an empirically derived taxonomy was developed, and the characteristics of firms in each of the four strategic groups were examined. In addition, the performance of particular strategic groups was analysed. Firms in one of the strategic groups (aggressive initiators) consistently indicated higher levels of success.
214 citations
TL;DR: In this article, the authors used a game-theoretic model of oligopolistic competition to provide analytical support for these generic strategies, and, in places, to refine the conclusions drawn from previous research in this field.
Abstract: Summary The concept of generic strategies for gaining competitive advantage has received considerable attention recently in the business policy field. Two generic strategies usually mentioned are low cost position and highly differentiated position. This paper uses a game-theoretic model of oligopolistic competition to provide analytical support for these generic strategies, and, in places, to refine the conclusions drawn from previous research in this field. Another conclusion derived from the model is that a superior cost or differentiation position leads to a larger market share, which in turn leads to higher profitability.
TL;DR: A third type of model is developed which seeks to penetrate beyond the nature of machine and organisms to understand social systems in their own right, a social system model which does not suffer from these inadequacies.
Abstract: Summary To think about anything requires an imnage or concept of it, a model. To think about a thing as complex as a social system most people use a model of something similar, simpler and more familiar. Traditionally, two types of models have been used in efforts to acquire information, knowledge and understanding of social systems: mechanistic and organismic. But, in a world of accelerating change, increasing uncertainty and growing complexity, it is becoming apparent that these are inadequate as guides to decision and action. The growing number of social crises and dilemmas that we face should be clear evidence that something is fundamentally wrong with the way we think about social systems. In this paper we describe and try to explain the deficiencies of the two traditional ways of thinking about social systems. We then develop a third type of model, one we believe does not suffer from these inadequacies, a social system model which seeks to penetrate beyond the nature of machine and organisms to understand social systems in their own right.
TL;DR: This work has isolated five common pathological organizational types and related each to the fantasies and neurotic styles of their top executives, showing each to reflect a large number of elements of structure and strategy consistent with and probably caused by the neurotic style of the cadre of top executives.
Abstract: Many parallels can be drawn between organizational and individual pathologies. We believe that the fantasies of top executives and the neurotic styles to which they give rise are important determinants of the nature of organizational dysfunctions. This is particularly true in centralized organizations where the top executives have a major impact upon organizational climate, structure, strategy and even the selection of the environment; and, where organizational recruitment and promotion processes ensure uniformity, or at least conformity, among the top ranks of executives. Using an empirically derived taxonomy, we have isolated five common pathological organizational types and related each of these to the fantasies and neurotic styles of their top executives. Each type is shown to reflect a large number of elements of structure and strategy that are consistent with and probably caused by the neurotic style of the cadre of top executives. The types are called paranoid, compulsive, histrionic, depressive and schizoid. Implications for management research and organizational change are discussed.
TL;DR: It is hypothesized that such strategy will be observed occurring in cycles at the single business-unit level in response to both environmental and organizational stimuli and that it will reflect choice from a limited repertoire of basic strategic moves.
Abstract: Entrepreneurial strategy is characterized as strategy involving widespread and more-or-less simultaneous change in the pattern of decisions taken by an organization. The concept is distinguished from others which use ‘entrepreneurial’ to characterize a long-term pattern of strategic behaviour. Entrepreneurial strategy will be enacted with some greater or lesser frequency by all firms, whether their long-term behaviour is conservative or innovative. It is hypothesized that such strategy will be observed occurring in cycles at the single business-unit level in response to both environmental and organizational stimuli and that it will reflect choice from a limited repertoire of basic strategic moves.
TL;DR: It is argued that decision analysis should be regarded both as a heuristic and a ‘thinking’ algorithm for decision structuring and problem diagnosis and, in addition, as an input to the process of policy dialogue.
Abstract: This paper examines a role for applied decision analysis in the strategic management process It is argued that decision analysis should be regarded both as a heuristic and a ‘thinking’ algorithm for decision structuring and problem diagnosis and, in addition, as an input to the process of policy dialogue A policy dialogue paradigm using decision analysis is outlined, in which various viewpoints are reconciled by the questioning of analyses and assumptions This dialogue paradigm is viewed as being compatible with approaches such as strategic assumptions analysis, which have been suggested in the literature as an aid for the processes of problem finding, formulation and solution
TL;DR: The contingency framework is presented as a network which identifies planning methods useful for each strategic archetype application, and these methods are matched to strategic archetypes, defined by the sponsor's expectations for quality, acceptance, and/or innovation in the strategy.
Abstract: Summary Strategic planning processes are seldom treated from a contingency perspective. As a result, practitioners are unable to select a set of planning techniques for a particular situation they confront. This paper constructs methods, defined as sets of techniques, which are applicable to strategic planning for non-profit organizations. These constructed planning methods are matched to strategic archetypes, defined by the sponsor's expectations for quality, acceptance, and/or innovation in the strategy. The contingency framework is presented as a network which identifies planning methods usefulfor each strategic archetype application.
TL;DR: The authors examined the effects of extreme degrees of environmental uncertainty on strategic planning in the U.S. savings and loan industry and found that top management's interpretation of the environment is a strong moderator of the link between environmental uncertainty and the extent of long-range planning.
Abstract: This paper examines the effects of extreme degrees of environmental uncertainty on strategic planning in the U.S. Savings and Loan industry. Results suggest that top management's interpretation of the environment is a strong moderator of the link between environmental uncertainty and the extent of long-range planning.
TL;DR: A comparative test was conducted using both intracompany and intercompany Delphi panels to forecast future events in the socio-political environment of business to determine whether the two groups produced similar or different forecasts under virtually identical test conditions.
Abstract: Despite the popularity of the Delphi technique little scientific literature exists to help guide the strategic planner in its proper application. In an effort to fill part of that void a comparative test was conducted using both intracompany and intercompany Delphi panels to forecast future events in the socio-political environment of business. The intent was to determine whether the two groups produced similar or different forecasts under virtually identical test conditions. Analysis of the data showed similarities in both the forecast estimates and the degree of consensus achieved across groups. Since strong similarities were demonstrated, the intracompany panel type is recommended to strategic planners based on its unique advantages.
TL;DR: In this article, the authors examine five rules for making successful acquisitions advocated by Peter Drucker and conclude that adopting these rules does not ensure successful acquisitions and may needlessly limit managers' opportunities for successful acquisitions.
Abstract: This paper critically examines five rules for making successful acquisitions advocated by Peter Drucker. In an attempt to verify the rules, supporting and non-supporting empirical evidence, opinions and arguments are reviewed. The analysis suggests that the rules are not conclusively supported by current evidence or argument. Adopting these rules does not ensure successful acquisitions and may needlessly limit managers' opportunities for successful acquisitions.
TL;DR: The equivocal nature of previous research findings using this paradigm, along with results from the present research indicating potential order of presentation effects, raises serious questions concerning previous operationalizations of these two methods.
Abstract: Considerable debate has recently emerged concerning the comparative effectiveness of two methods of inquiry recommended for use in strategic decision making: dialectical inquiry (DI) and devil's advocacy (DA). Much of the comparative research surrounding this debate has made use of the Multiple Cue Probability Learning Paradigm (MCPLP). The equivocal nature of previous research findings using this paradigm and others, along with results from the present research indicating potential order of presentation effects, raises serious questions concerning previous operationalizations of these two methods.
TL;DR: Although much criticized in the business press and no longer featured as a leading product by the Boston Consulting Group, the cows, dogs, stars and question marks of the growth/share matrix have become part of the language of business strategy.
Abstract: Although much criticized in the business press and no longer featured as a leading product by the Boston Consulting Group, the cows, dogs, stars and question marks of the growth/share matrix have become part of the language of business strategy. Their images are powerful, as are the oversimplified prescriptions for action which students and managers may attach to the images: we should kick the dogs, cloister the cows, and throw our money at the stars. To avoid those oversimplifications, we must remember that the dogs may be friendly, the cows may need a bull now and then to remain productive, and the stars may have burned themselves out.
TL;DR: In this article, the usefulness of business ethics is discussed in terms of its dependence upon the total objectives of the firm, the identification of relationships and interests of affected parties in the relevant environment, and the recognition of the need for consensus and for positive implementation procedures.
Abstract: Strategic management cannot ignore the place of applied business ethics in organizational planning and decision making. This article establishes some of the aspects that make business ethics unique, together with the necessary steps for making them an effective contributor to business performance. The focus is upon applied business ethics—patterns of conduct. The usefulness of business ethics is discussed in terms of its dependence upon the total objectives of the firm, the identification of relationships and interests of affected parties in the relevant environment, and the recognition of the need for consensus and for positive implementation procedures. These structural requirements and constraints constitute a system through which effective action can be attained as management addresses the various moral, social and human elements with which business ethics has to deal. In this paper the author is not presuming to offer substantive answers to all, or even a few, of the ethical dilemmas and conflicts that business firms (or anyone else) cannot escape. Instead, what is proposed is a pragmatic approach outlining a path that can help to determine where we are, who is involved, what are the options, what are the dimensions and parameters of the problems in a businesss context, so that ethical issues (even those where uniquely ‘right’ answers are unattainable) can be treated with intelligence and fairness.
TL;DR: In this article, the authors report the findings of an extensive study of the process by which corporations manage their external affairs and identify the factors which correlate strongly with a high degree of corporate influence in Washington.
Abstract: This article reports the findings of an extensive study of the process by which corporations manage their external affairs. The major portion of the data is drawn from the responses to a ten page questionnaire sent to 1000 of the largest corporations in the U.S.A. With a response rate of over 40 per cent, this is the largest database yet assembled with respect to the management of external affairs. The author has determined that the influence of public affairs offices varies considerably from industry to industry and from company to company, and this article identifies the factors which correlate strongly with a high degree of influence. In addition, the article identifies the factors which correlate strongly with a high degree of corporate influence in Washington.
TL;DR: In this paper, the results of business co-operation between MNCs and Third World regions may be improved by attempting to structure appropriate linkages among product/market choices, types of business agreements and generic strategy considerations.
Abstract: MNC-Third World business undertakings have often faced disappointing results. Partly because of this, the environmental forces in the developing nations have become more constraint-ridden for the operation of multinational firms. In this article, proposals are made on how the results of business co-operation between MNCs and Third World regions may be improved by attempting to structure appropriate linkages among product/market choices, types of business agreements and generic strategy considerations.
TL;DR: The results of a questionnaire survey of corporate managerial approaches to productivity as discussed by the authors showed that the British and American managerial approaches appear to be broadly similar, but with the exception that British focus much more singlemindedly on labour productivity as the central issue.
Abstract: The results are reported of a questionnaire survey of corporate managerial approaches to productivity. The sample comprised 146 large industrial companies, of which 96 were American, 25 British and 25 Japanese. Responses from the total sample were used to construct a managerial interpretation of productivity. A comparison was then conducted among the three national samples. Although productivity improvement was reported as being a matter of significant corporate concern in all three countries, greater priority was expressed by the British and Japanese than by the American managers. The British and American managerial approaches to productivity appear to be broadly similar, but with the exception that the British focus much more single-mindedly on labour productivity as the central issue. The Japanese responses convey a proactive, long-term approach to the management of productivity, with research and innovation being accorded to pre-eminent role. The implications of the findings are briefly discussed and directions for further research are suggested.