Showing papers on "Competitive advantage published in 1997"

Dynamic capabilities and strategic management

Abstract: The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.

Gaining and Sustaining Competitive Advantage

Abstract: PART I: The Logic of Strategic Analysis Chapter 1. Introduction: What Is Strategy? Chapter 2. Firm Performance and Competitive Advantage Chapter 3. Evaluating Environmental Threats Chapter 4. Evaluating Environmental Opportunities Chapter 5. Evaluating Firm Strengths and Weaknesses: The Resource-Based View PART II: Business Strategies Chapter 6. Cost Leadership Chapter 7. Product Differentiation Chapter 8. Flexibility: Real Options Analysis Under Risk and Uncertainty Chapter 9. Tacit Collusion: Cooperation to Reduce Competition PART III: Corporate Strategies Chapter 10. Vertical Integration Strategies Chapter 11. Diversification Strategies Chapter 12. Implementing Corporate Diversification Chapter 13. Strategic Alliances Chapter 14. Merger and Acquisition Strategies Chapter 15. International Strategies

Corporate Social Performance And Organizational Attractiveness To Prospective Employees

Abstract: Drawing on propositions from social identity theory and signaling theory, we hypothesized that firms' corporate social performance (CSP) is related positively to their reputations and to their attractiveness as employers. Results indicate that independent ratings of CSP are related to firms' reputations and attractiveness as employers, suggesting that a firm's CSP may provide a competitive advantage in attracting applicants. Such results add to the growing literature suggesting that CSP may provide firms with competitive advantages.

Sustainable competitive advantage: combining institutional and resource- based views

Abstract: This article suggests that the context and process of resource selection have an important influence on firm heterogeneity and sustainable competitive advantage. It is argued that a firm’s sustainable advantage depends on its ability to manage the institutional context of its resource decisions. A firm’s institutional context includes its internal culture as well as broader influences from the state, society, and interfirm relations that define socially acceptable economic behavior. A process model of firm heterogeneity is proposed that combines the insights of a resource-based view with the institutional perspective from organization theory. Normative rationality, institutional isolating mechanisms, and institutional sources of firm homogeneity are proposed as determinants of rent potential that complement and extend resource-based explanations of firm variation and sustainable competitive advantage. The article suggests that both resource capital and institutional capital are indispensable to sustainable competitive advantage. © 1997 John Wiley & Sons, Ltd.

International Diversification: Effects on Innovation and Firm Performance in Product-Diversified Firms

Abstract: Theory suggests and results show that firm performance is initially positive but eventually levels off and becomes negative as international diversification increases. Product diversification moder...

Information technology as competitive advantage: the role of human, business, and technology resources

Abstract: This paper investigates linkages between information technology (IT) and firm performance. Although showing recent signs of advance, the existing IT literature still relies heavily on case studies, anecdotes, and consultants' frameworks, with little solid empirical work or synthesis of findings. This paper examines the IT literature, develops an integrative, resource-based theoretical framework, and presents results from a new empirical study in the retail industry. The findings show that ITs alone have not produced sustainable performance advantages in the retail industry, but that some firms have gained advantages by using ITs to leverage intangible, complementary human and business resources such as flexible culture, strategic planning-IT integration, and supplier relationships. The results support the resource-based approach, and help to explain why some firms outperform others using the same ITs, and why successful IT users often fail to sustain IT-based competitive advantages.

The Effects of Organizational Differences and Trust on the Effectiveness of Selling Partner Relationships

Abstract: Selling alliances that are formed to cooperatively develop and maintain customer relationships are among the new organizational forms that marketing managers utilize for competitive advantage. To b...

Entrepreneurial strategy making and firm performance: tests of contingency and configurational models

Abstract: This field study explores the nature of entrepreneurial strategy making (ESM) and its relationship with strategy, environment and performance. In the first phase, we assess the independence of entrepreneurially oriented strategy-making processes through factor analysis. The second phase, using moderated hierarchical regression anlaysis, investigates the relative predictive power of two approaches for exploring the ESM–performance relationship: contingency and configuration. Findings from a sample of 32 firms competing in a wide variety of industries indicate that configurational approaches that align ESM, strategy, and environment have greater predictive power than contingency approaches. However, not all high performing configurations are consistent with normative theory. Thus, alternate theories linking entrepreneurial strategy making to competitive advantage should be developed and tested. © 1997 John Wiley & Sons, Ltd.

Cost, value and foreign market entry mode: the transaction and the firm

Abstract: This paper compares and contrasts the mode of foreign market entry decision from the transaction cost/internalization and organizational capability perspectives. Each of these perspectives operates at a different level of analysis, respectively the transaction and the firm, and consequently differs in the primary arena of attention, namely transaction characteristics and the capabilities of firms. In making the comparison, a key distinction is made between the cost and the value aspects in the management of know-how, based on which issues pertaining to the transfer of knowledge within and across firm boundaries and the exploitation and enhancement of competitive advantage are closely examined. The main purpose of this paper is to demonstrate the implications of a shift in frame from cost to value in the analysis of decisions related to firm boundaries. Entry into foreign markets is used primarily as a vehicle for the accomplishment of this purpose. The paper shows how the value-based framework of the organizational capability perspective radically and fundamentally shifts the approach towards the governance of firm boundaries and argues that, even though TC/internalization theory raises some valid concerns, the organizational capability framework may be more in tune with today’s business context. Some of the assumptions of the TC/internalization perspective, both direct— ‐opportunism, exploitation of existing advantage—and indirect—preservation of the value of know-how across locational contexts, asymmetry between bounded rationality for transaction and production purposes—are critically examined and questioned. Implications of a shift from a cost to a value-based framework are discussed and the need for a shift in research focus is emphasized.

Winning through innovation : a practical guide to leading organizational change and renewal

Abstract: Beyond the success syndrome evolutionary and revolutionary change building the foundation deading innovation and change diagnosing the roots of today's problem managing culture for competitive advantage shaping organizational culture ambidexterous organizations managing incremental and discontinuous innovation managing strategic change the leadership challenge.

Value innovation: the strategic logic of high growth.

Abstract: Why are some companies able to sustain high growth in revenues and profits--and others are not? To answer that question, the authors, both of INSEAD, spent five years studying more than 30 companies around the world. They found that the difference between the high-growth companies and their less successful competitors was in each group's assumptions about strategy. Managers of the less successful companies followed conventional strategic logic. Managers of the high-growth companies followed what the authors call the logic of value innovation. Conventional strategic logic and value innovation differ along the basic dimensions of strategy. Many companies take their industry's conditions as given; value innovators don't. Many companies let competitors set the parameters of their strategic thinking; value innovators do not use rivals as benchmarks. Rather than focus on the differences among customers, value innovators look for what customers value in common. Rather than view opportunities through the lens of existing assets and capabilities, value innovators ask, What if we start anew? The authors tell the story of the French hotelier Accor, which discarded the notion of what a hotel is supposed to look like in order to offer what most customers want: a good night's sleep at a low price. And Virgin Atlantic challenged industry conventions by eliminating first-class service and channeling savings into innovations for business-class passengers. Those companies didn't set out to build advantages over the competition, but they ended up achieving the greatest competitive advantages.

The Performance and Competitive Advantage of Small Firms: A Management Perspective:

Abstract: PETERJENNINGS, NOW WITH SOUTHAMPTON Institute, England, was at the time of writing with Sheffield Hallam University, England, and Graham Beaver is with Nottingham Trent University, England Success

The economics of electronic commerce

Abstract: From the Publisher: The Economics of Electronic Commerce applies standard microeconomic analyses to an entirely new industry - laying the foundation for the development of radically new business models. With detailed analysis to those involved in the actual production, marketing, and distribution of digital information products as well as professionals doing business in the electronic marketplace, this valuable reference demonstrates that businesses that achieve early success from applying these theories will enjoy a distinct competitive advantage in this newly defined world of business.

Competing by Design: The Power of Organizational Architecture

Abstract: If the defining goal of modern-day business can be isolated to just one item, it would be the search for competitive advantage. And, as everyone in business knows, it's a lot harder than it used to be. On the one hand, competition is more intense than ever-technological innovation, consumer expectations, government deregulation, all combine to create more opportunities for new competitors to change the basic rules of the game. On the other hand, most of the old reliable sources of competitive advantage are drying up: the hallowed strategies employed by GM, IBM, and AT&T to maintain their seemingly unassailable positions of dominance in the 1960s and 70s are as obsolete as the calvary charge. So in this volatile, unstable environment, where can competitive advantage be found? As David Nadler and Michael Tushman show, the last remaining source of truly sustainable competitive advantage lies in 'organizational capabilities': the unique ways each organization structures its work and motivates its people to achieve clearly articulated strategic objectives. For too long, too many managers have thought about "organization" merely in terms of rearranging the boxes and lines on an organizational chart-but as Competing by Design clearly illustrates, organizational strength is found far beyond one-dimensional diagrams. Managers must, argue Nadler and Tushman, understand the concepts and learn the skills involved in designing their organization to exploit their inherent strengths. All the reengineering, restructuring, and downsizing in the world will merely destabilize a company if the change doesn't address the fundamental patterns of performance-and if the change doesn't recognize the unique core competencies of that company. In this landmark volume, the authors draw upon specific cases to illustrate the design process in practice as they provide a set of powerful, yet simple tools, for using strategic organization design to gain competitive advantage. They present a design process, explore key decisions managers face, and list the guiding principles for incorporating the design function as a continuing and integral process in organizations that are looking to the future. In 1918, Henry Ford's Dearborn assembly plant was the model of the new assembly-line technology. Today, the assembly plant is an aging relic, but, incredibly, the organizational architecture it spawned lives on in steep hierarchies, centralized bureaucracies, and narrowly defined jobs. As companies are coming to realize they can't compete successfully in the 21st century with organizations based on 19th century ideas, Competing by Design shows clearly and persuasively why-and, most importantly how-to harness the power of organizational architecture to unleash the competitive strengths embedded in each organization.

Marketing Aesthetics: The Strategic Management of Brands, Identity and Image

Abstract: There is no way to mistake the ubiquitous trademarked Coca-Cola bottle, or the stylish ads for Absolut Vodka with any of their competitors. How have these companies created this irresistible appeal for their brands? How have they sustained a competitive edge through aesthetics? Bernd Schmitt and Alex Simonson, two leading experts in the emerging field of identity management, offer clear guidelines for harnessing a company's total aesthetic output-- its "look and feel"-- to provide a vital competitive advantage. Going beyond standard traditional approaches on branding, this fascinating book is the first to combine branding, identity, and image and to show how aesthetics can be managed through logos, brochures, packages, and advertisements, as well as sounds, scents, and lighting, to sell "the memorable experience." The authors explore what makes a corporate or brand identity irresistible, what styles and themes are crucial for different contexts, and what meanings certain visual symbols convey. Any person in any organization in any industry can benefit from employing the tools of "marketing aesthetics". Schmitt and Simonson describe how a firm can use these tools strategically to create a variety of sensory experiences that will (1) ensure customer satisfaction and loyalty; (2) sustain lasting customer impressions about a brand's or organization's special personality; (3) permit premium pricing; (4) provide legal "trade dress" protection from competitive attacks; (5) lower costs and raise productivity; and (6) most importantly, create irresistible appeal. The authors show how to manage identity globally and how to develop aesthetically pleasing retail spaces and environments. They also address the newly emergent topic of how to manage corporate and brand identity on the Internet. Supporting their thesis with numerous real-world success stories such as Absolut Vodka, Nike, the Gap, Cathay Pacific Airlines, Starbucks, the New Beetle Website, and Lego, the authors explain how actual companies have developed, refined, and maintained distinct corporate identities that set them apart from competitors.

Women in Management and Firm Financial Performance: An Exploratory Study

Abstract: Modern business is clearly conducted in uncertain contexts. Today's firms are faced with ever increasing international competitive pressures, unstable capricious markets, new and complex technologies, and with dramatic changes in society in general. Paramount among these changing contexts is the change in the management composition of firms due to women assuming management positions. The American work force is one of the most ethnically and gender diverse in the world (Cox and Smolinski, 1994). For firms, this diversity affords new opportunities and challenges. According to Nichols (1993), in this decade, women managers will redefine managerial work and will provide firms with opportunities to capitalize on the challenging contexts they face. Zellner (1994) further notes that women are starting new businesses at a rate nearly twice that of men, and are "bringing to the table" skills such as team building and employee development that are very much in tune with today's competitive realities. Our goal in this study is to provide conceptual arguments and empirically explore the firm-level relationships of women in management with financial performance outcomes. To this date, few studies have been directly concerned with firm-level financial performance issues. We will justify and build on the assumption that firms employing more women managers have probably done a better job of recruiting capable managers from the total available talent pool, and consequently will be in a better position to link with customers, employees, and other constituencies. Firms employing higher percentages of women are likely to perform better inasmuch as they are more progressive and more competitive because their management contingents more closely mirror the composition of existing markets. EXPLANATORY FRAMEWORK Rationale for these arguments is found in the "resource-based" theory of competitive advantage and strategy analysis (e.g., Barney, 1991, 1997; Grant, 1991). Basically, according to Barney (1997), resource-based theory argues that it is not industry structure that leads to competitive advantage and better performance. Rather, it is the ability to capitalize on and apply the firm's internal resources in uncertain and dynamic industry contexts. The theory proposes that firms are defined as sets or "bundles" of resources. Firms can develop strong competitive advantages by accumulating unique or difficult to duplicate bundles of resources, and these resources can allow firms to take advantage of environmental opportunities or counterbalance threats. Supportive of the theory, research by Robins and Wiersema (1995) indicated that the ability to build these advantages paid off in terms of return on investment. Barney goes on to say that human capital resources are key to competitive advantage. Employee and management capabilities are firm-level resources that are among the most sustainable and difficult for competitors to imitate. The notion of human resources being the key to competitive advantage is prominent in the current popular management literature. For example, writing of their collective experience with numerous company change efforts, Katzenbach et al. (1995) concluded that many firms have underutilized human resources in this modern era of international competition and organization change. The underutilized resources tend to include females and those of diverse racial and ethnic backgrounds who might otherwise bring different perspectives to the firm. By better utilizing the contributions of women and minorities, firms can become more creative and accepting of change. Katzenbach et al. contend that if fully tapped, it is this cadre of middle-level, diverse, change-oriented managers that sets the high performing firms apart from the others. Iles and Auluck (1993) found that diverse work forces were beneficial to firms because they facilitated team problem solving and synergy. The ability to manage diversity fostered the incorporation of various perspectives into organizational decision making, and firms that united a wider range of participants performed well. …

The impact of just-in-time manufacturing and its infrastructure on manufacturing performance

Abstract: We consider Just-in-Time JIT to be an overall organizational phenomenon. Accordingly, we developed and tested a model that includes both JIT practices and the infrastructure practices hypothesized to provide an environment in which JIT practices perform more effectively. Canonical correlation analysis was used to test five hypotheses. The results indicated that: 1 there was not a significant relationship between the use of JIT practices, alone, and manufacturing performance, 2 there was a very strong relationship between JIT practices and infrastructure practices; 3 the combination of JIT management and infrastructure practice was related to manufacturing performance; 4 infrastructure, by itself, is sufficient to explain manufacturing performance; and 5 manufacturing performance was related to competitive advantage. These findings provide support for the notion that JIT is an overall organizational phenomenon, rather than limited to strictly shop floor practices, and that at least part of its effect on manufacturing performance may be through providing a set of improvement targets and discipline for the entire organization. In addition, the analysis highlights the areas of infrastructure practice most relevant for future research.

Organizing in the knowledge age: Anticipating the cellular form

Abstract: Executive Overview Each major era in business history has featured a particular form of organization. Early hierarchical, vertically integrated organizations have largely given way to network organizations that link the assets and know-how of numerous upstream and downstream industry partners. A number of leading companies today are experimenting with a new way of organizing—the cellular form. Cellular organizations are built on the principles of entrepreneurship, self-organization, and member ownership. In the future, cellular organizations will be used in situations requiring continuous learning and innovation.

Towards a framework for managing corporate identity

Abstract: Notes how the value of developing corporate identity (CI), as a means of encouraging an organization's key stakeholders to perceive the corporate entity in a clear and positive way, has been receiving increased attention in the last decade. To date much of the practitioner and academic attention has been focused on the communication function between an organization and its customers (primarily). In order that managers and academics are able to realize more of the potential that CI offers organizations, it is necessary to consider the role and impact CI can have on strategic management. Reviews the literature and considers the concepts of corporate identity, image, reputation and personality. Determines the linkages between these concepts and argues that image research studies should not just be oriented to improving images and communications but that this information can also have a central role to play in the strategic development of an organization. To do this presents a framework, referred to as a corporate identity management process (CIMP). Provides an illustration which shows how an understanding of stakeholder images can be used, via the CIMP, to reveal opportunities for developing sustainable competitve advantage.

Resources, firms, and strategies : a reader in the resource-based perspective

Abstract: Foreword Resources and Strategy: A Brief Overview of Themes and Contributions Leadership in Administration The Theory of the Growth of the Firm Strategy and Structure The Concept of Corporate Strategy The Organisation of Industry Industry Structure, Market Rivalry, and Public Policy An Evolutionary Theory of Economic Change Economies of Scope and the Scope of the Enterprise A Resource-based View of the Firm Towards a Strategic Theory of the Firm Strategic Factor Markets Asset Stock Accumulation and the Sustainability of Competitive Advantage Diversification, Ricardian Rents, and Tobins q The Cornerstones of Competitive Advantage The Resource-based View Within the Conversation of Strategic Management The Core Competence of the Corporation Why do Firms Differ and How does it Matter? Dynamic Capabilities and Strategic Management Transaction-cost Economics in Real Time Knowledge of the Firm Related Diversification, Core Competences and Corporate Performance Resources and Strategy: Problems, Open Issues, and Ways Ahead

Technology and Economic Development: The Dynamics of Local, Regional, and National Change

Abstract: This study examines the effects of technological change on economic growth and development, synthesizing extensive research from multiple disciplines, including geography and planning, regional science, entrepreneurship, technology policy and economics. It uses the framework of regional development to encompass economic dynamics at all spatial scales: national, regional and local. The concept of regional development is introduced as the qualitative or structural features of a region's economy, as opposed to its sheer size or growth rate. The analysis also examines the core-periphery dichotomy, where the core is defined as a set of regions in which complexity, technology, and control are the norm, and where linkages to other nodes and the global system are common. The discussion also draws a distinction between economic growth and economc development; the former designates increases in population within a specific area, or increases in the quantity or the value of the goods and services, and does not necessarily lead to qualitative improvements in life, the way development does. Technological capability is closely related to capability in RD conventional strategies are changing to encompass people -- their contacts and skills -- as another vital basis for success of firms in new technologies and in alliances and other cooperations. The location of economic activities is explored. There are two major sets of influences on the innovativeness and competitiveness of places: (1) technical skills and information are key in the process of technological change and competition; and (2) urban areas contain a complex synergy of factors that smaller, more remote places cannot attain. Producer services, which are strongly based on knowledge and symbolic analysis, are therefore typically clustered in cities. Small firms and entrepreneurship are examined as a crucial part of a well-functioning regional economy. Research has demonstrated the close relationship between entrepreneurship and regional and local development. Innovativeness developed within local inter-firm networks both supports existing firms and presents opportunities for starting new businesses in order to serve newly identified markets. Networks of firms complement and sometimes substitute for a firm's own technological capability. Networks of large firms and the globalization of economic activity are then considered. Policy attempts at national, regional and local scales to influence the location of economic activity are analyzed. The economic progress and prospects of developing countries are assessed. Policies for innovation, entrepreneurship, and the functioning of the economy are essential, and require flexibility in order to respond to changing conditions in the world economy, in specific product markets, and in technology. Concludes with a discussion of some of the central themes that were facing society at the end of the 1990s, including basic needs for human development, environmental issues, employment and human capital, and infrastructures for future technologies. (AT)

Resource-based theory and strategic logistics research

Abstract: Despite calls for more theoretical and strategically oriented work in logistics, the resource‐based theory of the firm (RBT), and the related capabilities approach ‐ which represent a dominant stream of research in strategic management over the last decade ‐ have not been prominent in the logistics literature. Provides a critical review of the large literature on the RBT and suggests areas where it can be applied to strategically‐oriented logistics research. Describes the resource‐based theory of the firm, its major assumptions, and its implications for strategic actions. Also discusses other areas of research where the RBT have been applied. Illustrates how the RBT represents the underlying theoretical support for one of the central propositions of strategic logistics: that a distinctive logistics capability is a source of sustainable competitive advantage and superior performance. Suggests that strategic logistics research may benefit from combining the RBT with organizational learning theory and evolutionary approaches to competition.

Information enrichment: designing the supply chain for competitive advantage

Abstract: Speed of response to customer demand has long been recognized as a key attribute to business success since customer loyalty can be won or lost on product availability. With everyone implementing lean manufacturing philosophies, companies additionally need to become smart chain managers and ensure continuous improvement to stay competitive. Exploits further the concept of the “seamless supply chain”, by encouraging market place information to move through the supply chain with as little distortion as possible. The simulation model used to benchmark performance improvement is representative of both the MIT beer game and much experimental industrial practice. It is therefore realistic as an aid to the implementation of decision support systems (DSS). Presents the beneficial dynamic effects of enriching each supply chain member’s order decision with undistorted market sales. Concludes that tremendous benefits can result from adopting a holistic approach if the attitudinal problems associated with information sharing can be overcome.

A New Strategy Framework for Coping with Turbulence

Abstract: Most of the existing frameworks for strategic management assume an environment that is stable and simple. But technological advances and global changes have created dynamic, complex climates in which companies must operate. Chakravarthy examines the industry he calls Infocom ? information providers, information processors, communication providers, and communication support. Technology has lowered many entry and mobility barriers among the industries; Microsoft is an example of a company that has exploited many strategic opportunities now available to Infocom companies. Chakravarthy compares and contrasts the popular frameworks for formulating competitive strategy. Porter's framework assumes stable competitors, suppliers, and buyers. The company finds an appropriate strategy and erects the necessary barriers. But, says the author, technological change quickly makes the barriers obsolete, Infocom players have deep pockets, and government policy has a diminishing role. In the Hamel and Prahalad approach, the role of strategy is not to accommodate an existing industry structure but to change it. However, the author comments, Infocom is not evolving predictably, so benchmarking against its current structure is futile. The D'Aveni framework assumes that strategy must continually seek to change the rules of the game because companies will quickly retaliate against any new strategy. Chakravarthy points out that a firm cannot continuously move from one advantage to another. His proposed framework, applied to the Infocom industries, has three elements: Reconceptualizing strategy. Companies must repeat innovation; e.g., Canon's successful launch of inkjet printers damaged its position in laser printers but was necessary to respond to competition. Companies must build customer networks around products or services. They must also be able to sense market flow, as Microsoft did when it found that its proprietary strategy for Microsoft Network would isolate it from the Internet. Sharing responsibility for strategy broadly within the firm. Employees must share a vision that is purposely vague but describes the firm's guiding philosophy. Strategy must come from the bottom up and from small, focused units. Focusing on organization capabilities as the source of competitive advantage. Companies must leverage, strengthen, and diversify their competencies. In the end, according to Chakravarthy, "going with the flow" may be the best strategy for a firm in a turbulent environment. Rigid top-down strategies may be counterproductive. Firms should concentrate instead on growing distinctive competencies for the future.

Examining the Emergence of Hybrid IS Governance Solutions: Evidence From a Single Case Site

Abstract: The prior IS literature points to the importance of organizational context for predicting a firm's IS governance solution. However, for the most part this literature assumes that firms adopt a uniform IS governance solution for all business units and that this solution can be predicted by context variables at the overall organization level. The purpose of this study is to increase our knowledge about why firms implement a hybrid IS governance solution in which a subset of IS functions that includes systems development is decentralized to some business units, but not to other business units, in the same enterprise. A theoretical framework of context variables at the business unit level is first developed. An embedded, single case study provides an initial test of eight propositions derived from the framework, as well as an opportunity for theory building. Data are collected utilizing both deductive and inductive methods from IS and non-IS executives of a divisionalized Fortune 500 firm in which a uniform decentralized solution for systems development in place for almost a decade has recently been replaced by a hybrid solution. The case study findings suggest that a configuration of four variables characterizes a business unit context conducive to decentralized systems development governance organic decision-making, high business unit autonomy, a differentiation competitive strategy, and an unstable industry environment. As predicted, however, the influence of these variables is likely to be overridden and a “deviant” solution adopted when deficiencies in IT capabilities are perceived and there is a culture that supports structural change at the business unit level. Additional interview and survey data collected from the key stakeholders are then analyzed in order to develop a richer understanding of the dimensions of the IT capabilities construct at the business unit level. The notion of absorptive capacity provides a theoretical argument for the emergent findings. Implications for researching today's increasingly complex IS governance forms are then drawn.

The seamless supply chain - the predator's strategic advantage

Abstract: It is no longer sufficient for a winning organisation to operate in isolation, however effective it may be in performing its core business. To survive, let alone win, it must be part of one or more supply chains producing world class performance. Each company in the chain must be internally "lean" but additionally must operate in a "seamless" environment in which all information relevant to the efficient operation of the total system is available on time and in an undistorted form. The term "predator" has been coined in the literature to describe the supply chain leader with the vision, drive, and determination to re-engineer the entire supply chain so as to satisfy end-customer needs. The paper reviews the techniques available to "predators" seeking to gain competitive advantage for their supply chains, including industrial engineering, operations engineering, production engineering, and information technology. Not all conceivable improvements can be implemented overnight, however desirable they might appear, hence the advocacy of simulation models within a decision support system so that top management can prioritise proposed Improvement Programmes against the relevant performance metric. In the example used to indicate the approach, the technological, organisational, and attitudinal problems to be solved by top management in achieving the seamless supply chain are all highlighted.