bluuebunny/crossref_metadata_2025 huggingface dataset:
Performance and consensus
Authors: Bourgeois L. J.
Published: June 2007

Top management consensus on corporate objectives and on the competitive weapons employed to attain them was studied in 12 non‐diversified public corporations. It was found that while agreement on both is associated positively with economic performance, agreement on means is significantly more important—in fact, agreement on goals without agreement on means correlates with poor performance. This suggests that strategy makers should concentrate on reaching consensus concerning means rather than ends (corporate goals) when formulating strategies for single‐mission enterprises.
Economic theory in corporate planning
Authors: Burton Richard M. , Naylor Thomas H.
Published: June 2007

The microeconomic theory of the firm encompasses classical marginal analysis and modern operations research techniques. Yet, one finds a paucity of explicit application of microeconomics to corporate planning. In this paper we explore the reasons for the seeming void and develop an economic theory of corporate planning.

Our main thesis is that received microeconomic theory focuses on answers, and answers stated in non‐operational terms. Nonetheless, economic theory asks questions of central importance to the strategic choices of the firm. These questions arise from economic theory and the fundamental notion of trade‐offs. We develop a microeconomic theory of strategic search for corporate planning. The theory is used to develop important questions and efficient search in lieu of chaotic and random search.
DIVERSIFICATION THROUGH ACQUISITION, Malcolm Salter and Wolf Weinhold, Free Press, New York, 1979. No. of pages: 330. Price: $24.95
Authors: Pitts Robert A.
Published: June 2007

Diversification Through Acquisition, Malcolm Salter and Wolf Weinhold, Free Press, New York, 1979. No. of pages: 330. Price: $24.95.
Planning and control in the U.S. Federal Government: A critical analysis of PPB, MBO and ZBB
Authors: Dirsmith Mark W. , Jablonsky Stephen F. , Luzi Andrew D.
Published: June 2007

PPB, MBO and ZBB have each been implemented in the U.S. Federal government, ostensibly as means for facilitating planning and control in agencies and programmes. The purpose of this paper is to evaluate the use of these techniques as management tools, political strategies and ritualistic symbols using concepts discussed in the organizational theory, planning and control, and policy science literatures. Two basic conclusions emerge from the evaluation. First, PPB, MBO and ZBB may inappropriately encourage the use of an analytical, computational decision strategy, and a cost/benefit method of performance assessment at a level within the organization and in environmental settings which call for an inspirational decision strategy and social test performance assessment. As a result, environmental variety may not be matched by an organizational response which is equally variable.

Secondly, PPB, MBO and ZBB may have been used more as political strategies and ritualistic symbols for controlling and directing controversy by both the executive and legislative branches of the U.S. Federal government and less as management tools for improving decision making within the U.S. Federal bureaucracy. These management tools give the appearance of rationality in the formulation of public policy which is consistent with man's need for confidence building and conflict avoidance in running the affairs of state.
Structuring III‐structured policy issues: Further explorations in a methodology for messy problems
Authors: Mitroff Ian I. , Mason Richard O.
Published: June 2007

This paper extends previous work in the development of a methodology for ill‐structured policy problems. It argues that recent advances in the structure and logic of argumentation allow one to develop a new basis for treating policy issues. In brief, policies may be viewed as the outcome of a process of reasoning (argumentation) whose purpose is to establish the basis (rationale) for the policy. This paper shows how the tools of symbolic logic may be applied to handle arguments containing strong inconsistencies. The tools presented allow treatment of one of the most fundamental issues concerned with ill‐structured problems, the divergence between opposing formulations or perceptions of a problem.
A critical view of dialectical inquiry as a tool in strategic planning
Authors: Cosier Richard A. , Aplin John C.
Published: June 2007

Despite weak empirical support for its effectiveness, the dialectical inquiry system (DIS) has been recommended to improve the strategic decision‐making process. This study compares the effectiveness of the DIS to alternative techniques. Thirty‐two organizational planners from the United Way of America were randomly assigned to a DIS and three other planning conditions. All planners submitted a planning report for a common case situation. Results suggest that, in general, the quality of the reports from planners in the DIS condition was inferior to the quality of reports submitted by subjects in the other conditions. For example, reports submitted by planners in a devil's advocate condition were judged to reflect a significantly more appropriate degree of risk than reports submitted by DIS planners. These results suggest that further investigation of the DIS is necessary before the validity of the technique is assumed.
Metagame analysis of competitive strategy
Authors: Dutta Biplab K. , King William R.
Published: June 2007

The need for effective competitive strategy planning for a firm's survival and growth has long been recognized to be important. The identification and selection of good, or robust, market strategies must be based on the anticipation of the likely strategies of significant competitors, who should ideally be visualized as undergoing a similar process of assessing their own and other's goals and probable strategies.

This paper reviews and evaluates the traditional economic and game theoretic approaches to competitive strategy analysis and presents an application of metagame analysis—an approach which has not previously been used in the strategic business environment. This approach, which appears to have some significant advantages over both economic and game theoretic approaches has been utilized and evaluated in a business firm (Dutta and King, forthcoming). An illustration of its use, which is based on a real‐world application, is discussed.
Zero based budgeting in the planning process
Authors: Wetherbe James C. , Montanari John R.
Published: June 2007

An attempt is made to integrate the zero based budgeting (ZBB) procedure into the firm's planning process. Previous studies have failed to provide an integrative framework for the application of ZBB which may account for some of the conflicting results obtained in previous ZBB programmes. Next, the results of an empirical assessment of the effectiveness of the ZBB integrative framework in service oriented organizational units are reported. Strong support is evident for the ZBB planning framework developed here using constituency oriented indicators of effectiveness.
Modelling changes in market share: A cross‐sectional analysis
Authors: Buzzell Robert D. , Wiersema Frederik D.
Published: June 2007

The decision to build market share has major resource‐allocation implications. To aid managers in assessing these implications, research was conducted to determine general relationships between changes in market share and variables representing market strategies and competitive position. The research was based on multiproduct, cross‐sectional regression analyses and includes variables that are—or should be—readily available to most businesses.
On strategic management decision processes
Authors: Fahey Liam
Published: June 2007

This paper attempts to bridge the divide between rational/analytical and behavioural/political conceptions of strategic decision making. The linkages and interactions between these approaches to the making of strategic decisions are explored in the context of a specific decision arena—strategic energy management.
Organizational versus environmental sources of influence in strategic decision making
Authors: Jemison David B.
Published: June 2007

The relative importance of internal organizational activities versus environmental interaction as sources of influence on strategic decision making was explored in a field study in 15 organizations. Results indicate that environmental interaction is the primary factor in determining departmental influence on strategic decisions.
Interrelationships between environmental dependencies: A basis for tradeoffs to increase autonomy
Authors: Aharoni Yair , Maimon Zvi , Segev Eli
Published: June 2007

General managers of large industrial plants in Israel were asked to evaluate the effects of environmental dependencies on their freedom of action. It was found that most segments of the environment were perceived as homogeneous—affecting the firms' autonomy in similar ways. Different components of government, however, were perceived as having conflicting interests both within the segment and with other segments of the environment. When a segment of the environment is heterogeneous, it is possible that managers use a tradeoff strategy, in which pressures generated by one component of the environment can be used as a means to reduce pressure of the other components.
Barriers to entry and competitive strategies
Authors: Harrigan Kathryn Rudie
Published: June 2007

The relationships between the difficulty of entry and competitive strategies in five industries, chosen for their differing structural contexts, were tested. Statistical support was found for the value of pre‐entry analysis of entry barriers and of firms' predicted responses to potential entry. In particular, the creation of idle productive capacity appears to be a potent deterrent to new entrants.
The relationship of participation and effectiveness in strategic planning
Authors: Dyson R. G. , Foster M. J.
Published: June 2007

This paper describes the results of a study focusing on effectiveness and participation in strategic planning and their inter‐relationships. The work reported is a comparative study of ten, diverse organizations in the United Kingdom. The paper sets out the frameworks for effectiveness and participation against which the empirical work took place; describes the results of the analysis undertaken; and postulates a number of theories concerning effective planning practice and its relation to participation in the system.
Managing the planning process: A field study of the human side of planning
Authors: Lyles Marjorie A. , Lenz R. T.
Published: June 2007

This paper reports the findings of an empirical field study of human behaviour in the context of planning. The investigation centres on ‘behavioural problems’ encountered by managers of strategic planning systems. Two general issues are addressed. The first concerns the frequency of occurrence of these problems among managers and their impact on the effectiveness of the planning process. The second issue pertains to whether the constellation of behavioural problems managers confront varies in accordance with the role of the manager in the planning system. Implications of the findings for practitioners and researchers are discussed.
Industry influences on strategy reformulation
Authors: Huff Anne Sigismund
Published: June 2007

This paper emphasizes the contribution of ‘borrowed experience’ to strategy reformulation. The industry group is described as a particularly important arena in which niche‐related problems and solutions are identified and tested. Industry‐wide mistakes in environmental interpretation and strategic response provide interesting evidence of the importance of this contribution to organizational decision making.

An industry oriented view of strategy reformulation requires two kinds of research which are rarely conducted today. We need to know more about the pool of strategic concepts which a group of organizations holds in common at any given time. Spender's study of fork‐lift truck rental companies is reviewed as an example of this kind of work. A second kind of needed research involves change in strategic concepts over time. A study of the perceived import threat to the appliance industry from 1950 to 1975 is summarized as an example of this second kind of research.
Influence diagrams for complex strategic issues
Authors: Diffenbach John
Published: June 2007

Influence diagramming is a practical desk‐top tool for mapping complex strategic issues so as to make the issues more comprehensible than otherwise. This article describes influence diagrams, explains how to use them, and relates how the tool was applied in a policy assessment study.
PIMS and BCG: New horizons or false dawn?
Authors: Wensley Robin
Published: June 2007

Strategic market opportunities arise either because a firm is exceptionally well placed competitively or because it recognizes the opportunity, on the basis of private information, before others. Strategic market analysis must reflect these two possible routes to attractive opportunities. Both the approaches developed by the Strategic Planning Institute (SPI) through its Profit Impact of Market Strategy (PIMS) and the Boston Consulting Group's (BCG) growth/share matrix fail to reflect the full impact of competitive expectations and risk. Analysis of PIMS data should be directed more towards generalities of limited direct economic significance whereas the BCG approach should be used mostly in the context of experience curve effects. Neither approach should dominate a full analysis of the specific nature and critical ambiguities in any strategic option.
Environmental scanning and organizational strategy
Authors: Hambrick Donald C.
Published: June 2007

The purpose of this study was to test empirically the relationships between the environmental scanning activities of upper‐level executives and their organizations' strategies, on the premise that executives would scan to reinforce their organization's particular basis for competing. Among the three industries studied, there were differences in the strategy–scanning link. These differences may have been attributable to different dominant environmental requirements existing in each industry.
Corporate vulnerability to cash tender offers
Authors: Gallinger George W.
Published: June 2007

This paper reports and discusses empirical results of a study which examines why some firms are attacked via unfriendly tender offers and other firms are not. The evidence indicates that target firms' managers ineffectively plan and/or implement business strategy, thus increasing their vulnerability to takeovers.
The value of formal planning for strategic decisions: Review of empirical research
Authors: Armstrong J. Scott
Published: June 2007

A review of research from organizational behaviour supported the guidelines by corporate planners: that is, use an explicit approach for setting objectives, generating strategies, evaluating strategies, monitoring results, and obtaining commitment. To determine whether these findings could be applied to strategic decision making in organizations, a review was made of all published field research on the evaluation of formal planning. Formal planning was superior in 10 of the 15 comparisons drawn from 12 studies, while informal planning was superior in only two comparisons. Although this research did not provide sufficient information on the use of various aspects of the planning process, mild support was provided for having participation by stakeholders. Formal planning tended to be more useful where large changes were involved, but, beyond that, little information was available to suggest when formal planning is most valuable. Future research should assess the formal planning process, the situation in which it is used, and its effects on the total system.
The structure of service firms and their marketing policies
Authors: Blois K. J.
Published: June 2007

There is a growing interest in understanding the way in which firms' marketing and manufacturing policies interact. The studies carried out so far have almost entirely concerned themselves with goods‐producing organizations. However this paper suggests that these studies also provide useful insights into the problems faced by service firms in organizing themselves efficiently. Furthermore it suggests that a distinctive problem faced by such firms is that adaption of their organizations may have a significant effect upon consumers' perceptions of the service they offer. The paper first outlines some investigators' views of the link between marketing and manufacturing and follows this by discussing the concept of ‘production’, ‘delivery’ and ‘consumption’ of services.

A brief consideration of the pressures for change which particularly impinge upon service firms precedes a discussion of the problems, and apparent contradictions, whch are linked with the concepts of standardization and personalization of services. The paper concludes with three examples of the issues discussed.
Evaluating strategic planning systems
Authors: King William R.
Published: June 2007

A direct methodology for the evaluation of strategic planning systems is illustrated, and contrasted with the indirect evaluation methodologies that have previously been used. The direct methodology involves twelve distinct varieties of assessment of the goals, inputs, outputs, feedback mechanisms, and impacts of the planning system that are made in terms of the system's goals as well as various bodies of external standards.
The stock market and competitive analysis
Authors: Strebel Paul J.
Published: June 2007

A method is presented for analysing the stock market's implicit assessment of relative strategic position in an industry. The market's overall perception of strategic position is obtained by comparing the value of future growth potential to that of the existing earnings stream for each company. More detail is extracted by using the quality and quantity of future growth, implicit in the relative value of future growth, as a measure of competitive position and product market outlook respectively. The method is applied to a sample of firms from the computer and data processing industry.
Managing strategic responsibility in the MNC
Authors: Hamel Gary , Prahalad C. K.
Published: June 2007

An issue that confronts the top management of every multinational company is that of determining where in the organization basic strategy decisions should be made. The firm may concentrate responsibility for a broad range of strategic tasks at headquarters, or cede strategic responsibility to foreign affiliates.

This paper argues that deriving an appropriate apportionment of strategic responsibility is largely a matter of recognizing the unique strategic imperatives imposed on the multinational firm by the conflicting requirements of integration within a global context, and responsiveness to local environments. For the firm whose businesses can benefit from world‐wide co‐ordination and standardization of manufacturing and product development, there is strong pressure to consolidate strategic responsibility at headquarters. For the firm whose businesses require attention to the idiosyncracies of national markets, the strategic autonomy of subsidiaries may be requisite for success.

A variety of factors renders difficult a clear‐cut, one‐time identification of the strategic imperative facing a business. For example, even within a single business, certain functions respond to the logic of integration, whereas others require a posture of responsiveness. At times both imperatives exist at full strength within a single functional area. Often, in a multi‐business, multinational firm, different businesses are subject to different pressures for integration and responsiveness. It is shown that managing strategic responsibility in situations of such ambiguity forces the firm to look far beyond traditional structural mechanisms in order to enact an appropriate division of strategic responsibility between headquarters and affiliates.
The sustainable growth model: A tool for evaluating the financial feasibility of market share strategies
Authors: Varadarajan Poondi
Published: June 2007

Market share objectives constitute a key element of a firm's corporate strategy. Market share strategy decisions—to build, maintain, or harvest share—are generally based on a careful consideration of the long‐term and short‐term profitability and cash flow implications of such decisions. The product sales growth rate and capacity expansion implications of share building strategies, the sustainability of implied sales growth targets and its consistency with the established financial policies and objectives of the firm are the subject of this report. The sustainable growth model outlined provides a framework for evaluating the financial feasibility of sales growth objectives at the strategic business unit level and the firm level, from the standpoint of expected return on sales, investment requirements per dollar of sales, target capital structure and the dividend policy of the firm.
Customer analysis for strategy development in industrial markets
Authors: Campbell N. C. G. , Cunningham M. T.
Published: June 2007

This paper reports on concepts and techniques which have been developed for analysing customers and used as an aid to assessing the strategic position of companies in industrial markets. The emphasis on supplier/customer relationships presented here derives from the interaction approach to marketing and purchasing strategy. Many industrial markets are highly concentrated, and many companies develop in conjunction with key customers in a symbiotic relationship, where strategy evolves as proposals made by either side are either accepted or rejected. To take account of this we propose a 3‐stage framework for analysing customers which builds on and transforms techniques traditionally used for an analysis of products. The purpose of the analysis is to improve the allocation of scarce marketing and technical resources, to reappraise the company's competitive position with different customer groups and to ensure that key relationships are managed effectively.
Influence of public affairs offices on corporate planning and of corporations on government policy
Authors: Dickie Robert B.
Published: June 2007

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.
Strategic decision analysis: Applied decision analysis and its role in the strategic management process
Authors: Thomas Howard
Published: June 2007

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.
Of strategies, deliberate and emergent
Authors: Mintzberg Henry , Waters James A.
Published: June 2007

Deliberate and emergent strategies may be conceived as two ends of a continuum along which real‐world strategies lie. This paper seeks to develop this notion, and some basic issues related to strategic choice, by elaborating along this continuum various types of strategies uncovered in research. These include strategies labelled planned, entrepreneurial, ideological, umbrella, process, unconnected, consensus and imposed.
Corporate distinctive competence, strategy, industry and performance
Authors: Hitt Michael A. , Ireland R. Duane
Published: June 2007

Corporate distinctive competencies may facilitate effective management of interdependencies among multiple units. Relationships between corporate distinctive competencies and firm performance were examined in 185 industrial firms. Results suggested that distinctive competencies associated with performance vary according to the grand strategy used and the firm's principal industry. Specific distinctive competencies were identified for each strategy and industry type.
The relationship of information usage characteristics to planning system sophistication: An empirical examination
Authors: Rhyne Lawrence C.
Published: June 2007

The relationship between corporate‐level planning and information systems was examined empirically. A continuum of planning system sophistication was constructed based on the level of openness to outside influences combined with the planning horizon. Futureoriented, external and environmental types of information were found to be strongly correlated with increased planning sophistication. The impact of environmental turbulence (complexity‐volatility) on planning systems also was examined. Complexity was strongly correlated with planning sophistication, whereas no relationship was found between volatility and planning sophistication.
Multiple scenario approach and strategic behaviour in European companies
Authors: Malaska Pentti
Published: June 2007

Nowadays, scenarios are a popular subject in management literature. However, information available about how extensively scenarios are used and the possible motives for their use, as well as their effects on strategic behaviour in companies, has hitherto been very limited. Results of a survey among Fortune's top 1000 companies in the U.S.A. in 1977 and 1981 showed a growing corporate interest in scenarios. A survey of the use of scenarios in large Western European companies in 1981 provided evidence of similar interest in Europe. In this article, results of the European survey are presented and the differences between user and non‐user attitudes towards the future among European firms analysed and the implications for strategic behaviour outlined.
Diversification: The growing confusion
Authors: Reed Richard , Luffman George A.
Published: June 2007

Over the years the concepts of diversification have been simplified and a system of shorthand has developed for discussing the issues surrounding the strategy. Because of this a confusion in terminology has developed and sight of the fundamental principles involved has been lost within the vagaries of fashion. Selection of a particular strategy ought to be based on the clear identification of the benefits that the strategy will offer. Those benefits should be used to help solve specific problems. Only by returning to this type of thinking can the legitimacy of diversification be revived and the alternating acclamation and denunciation of the strategy be overcome.
Networks: Between markets and hierarchies
Authors: Thorelli Hans B.
Published: June 2007

Interorganizational networks generally have been discussed in the context of nonprofit agencies. Providing an alternative between the open market and the internalization of activity the network potentially may be even more important in business. This is especially true in international operations and in industrial and services marketing. Involving technology transfer, information exchange, accounting and finance as well as marketing, network management calls for a holistic approach. To serve as an engine of growth the network also requires strategic planning both at the overall level and in member firms.
Entrepreneurship and paths to business ownership
Authors: Cooper Arnold C. , Dunkelberg William C.
Published: June 2007

Alternative paths to ownership are examined, including starting, purchasing or inheriting a firm, as well as being promoted or brought in by existing owners. It is hypothesized that these involve different ‘degrees of entrepreneurship’, which will be reflected in the profiles of owner‐managers who have followed each path. Data on 1756 owner‐managers are used to test hypotheses relating path to ownership to: the entrepreneurs' background characteristics; motivations and attitudes; and previous careers, incubator organizations and processes of starting.
Types of synergy and economic value: The impact of acquisitions on merging and rival firms
Authors: Chatterjee Sayan
Published: June 2007

Acquisitions, in general, have been demonstrated to create economic value. The intuitive reason underlying this value creation stems either from an ability to reduce costs of the combined entity, an ability to charge higher prices, or both. Current research in the area attributes these abilities to an opportunity to utilize a specialized resource. Our focus in this study is to compare three broad classes of resources that contribute to the creation of value. Following the conventional wisdom, these resources are classified as cost of capital related (resulting in financial synergy), cost of production related (resulting in operational synergy), and price related (resulting in collusive synergy). Given the limitations of our sample and research design, we find that collusive synergy is, on average, associated with the highest value. Further, the resources behind financial synergy tend to create more value than the resources behind operational synergy.
Strategy and structure in multinational corporations: A revision of the stopford and wells model
Authors: Egelhoff William G.
Published: June 2007

The Stopford and Wells study of strategy and structure in multinational corporations produced a now familiar model relating certain types of structure to certain elements of a firm's international strategy. This paper re‐examines the important relationships expressed by the model, using data from a recent study of 34 large U.S. and European multinationals. While some of the relationships are supported, others are not. A new element of strategy, the relative size of foreign manufacturing, is introduced, and found to be an important predictor of structure. Based on the findings, a revised model for relating strategy and structure in MNCs is proposed.
Theories of technological innovation as useful tools for corporate strategy
Authors: Butler John E.
Published: June 2007

Three theories of technology and innovation; the product‐process concept, the meta‐learning concept, and the concept of technological interdependence, are used to relate technology and innovation to strategic management. This paper attempts to identify complementary and unifying concepts in these theories, which are useful to strategic planners. Performance indicators, from the commercial airline industry, are used to illustrate how theoretical assumptions can be related to practical applications. Type of innovation, stage of development, learning at all levels, interdependence between technologies, and users' expectations all appear to play a role in the emergence of technologies and the rate of innovation.
On strategic networks
Authors: Jarillo J. Carlos
Published: June 2007

In parallel with a theoretical acceptance of the importance of the laws of competition to formulate strategy, the realization is growing that cooperative behavior among firms is at the root of many success stories in today's management. This situation calls for an effort to develop a theoretical framework to study both aspects of firm behavior (cooperative and competitive) as compatible, complementary aspects of a unique reality. Indeed, the cooperative relationships of a firm can be the source of its competitive strength.

This paper develops the concept of strategic network, as a tool to understand those cooperative relationships and their role in the strategy of the firm. There are three main tasks of the paper: first, to show that strategic networks are but a ‘mode of organization’; second, to study the economic conditions of existence of a network; finally, to analyze the conditions of existence of a network from the point of view of its internal consistency. In a final section some of the most obvious strategic implications of the framework are outlined.
Planned patterns of strategic behavior and their relationship to business‐unit performance
Authors: Robinson Richard B. , Pearce John A
Published: June 2007

This study examined the moderating role of planning sophistication on the strategy‐performance relationship in 97 manufacturing firms representing 60 different industries. Cluster analysis was used to group the firms according to their strategic orientation. Five groups emerged. Significant differences in performance across selected groups were found establishing a ‘baseline’ strategy‐performance relationship. Strategic orientations emphasizing product innovation or those incorporating ‘efficiency’ and ‘differentiation’ patterns of strategic behavior were associated with significantly higher performance levels than two other groups. The nature of each firm's planning process was then introduced via a two‐way ANOVA procedure to determine if ‘process sophistication’ moderated the strategy‐performance ‘baseline’. Level of planning sophistication was found to significantly moderate the previously established strategy‐performance baseline.
Rethinking incrementalism
Authors: Johnson Gerry
Published: June 2007

This paper discusses different notions of incremental strategic management and, on the basis of empirical data from a longitudinal study of strategic management, and existing research and theory, reconceives the subject within an ‘organization action’ framework. The paper also argues that such an approach raises important issues concerned with the management of strategic change in organizations.
Divestment: Motives and gains
Authors: Montgomery Cynthia A. , Thomas Ann R.
Published: June 2007

A follow‐up to earlier study, this research demonstrates that the stock market's positive revaluation of divesting firms is unlikely to be due to changes in short‐term performance.
Diversification strategies, business cycles and economic performance
Authors: Amit Raphael , Livnat Joshua
Published: June 2007

Two major diversification strategies of firms are examined: diversification into related businesses and diversification into unrelated businesses. The first strategy attempts to exploit operating synergies. In the second, the firm attempts to gain financial benefits from its ability to increase leverage due to a greater stability of cash flows.

The study utilizes a large sample affirms to assess empirically the benefits and costs of these two diversification strategies by developing a new measure of diversification across business cycles and economic sectors. This new measure is compared with Berry—Herfindahl type measures of total diversification and recent measures of diversification into related businesses.

The results indicate that pure financial diversification is associated with (a) more stable cash flows, i.e. lower operating risk; (b) increased levels of leverage; and (c) lower profitability. These observations are in accord with the theory. We also reaffirm that firms which diversify into related businesses have, on the average, higher profitability than non‐diversified firms, although these results are not always statistically significant.
Established companies diversifying into young industries: A comparison of firms with different levels of performance
Authors: Smith Clayton G. , Cooper Arnold C.
Published: June 2007

Differences in performance among established firms diversifying into young industries were investigated, with hypotheses concerning 11 ‘corporate level’ strategic and organizational variables being examined. Performance was found to be associated with firm size and financial strength, time of entry, and the maturity of the firm's markets. The importance of several variables examined also appears to change as an industry evolves.
Transaction cost analysis of strategy‐structure choice
Authors: Jones Gareth R. , Hill Charles W. L.
Published: June 2007

Using a transaction cost approach this paper analyzes the relationship between strategy, structure and organizational performance. It addresses three related questions. First, what determines the limit to growth through internalization for a firm pursing a particular strategy? Second, why does a firm pursue different strategies for achieving growth? Third, what determines changes in the strategy and structure used by the firm over time? This analysis serves to integrate work in strategic management and provides a framework for analyzing corporate strategy choice.
A strategic contingency model of multinational corporate structure
Authors: Lemak David J. , Bracker Jeffrey S.
Published: June 2007

This paper develops a model of multinational corporate structure in which each of the five structures—worldwide product, worldwide functional, area, international division and matrix—is explained in terms of domain parameters, management orientation and generic strategy. The strategic contingency model (SCM) is developed by integrating recent theoretical and empirical literature into one holistic model. The SCM delineates specific independent variable relationships which predict multinational corporate structure and explains anomalies in recent research finds.
Planning and financial performance among small firms in a growth industry
Authors: Bracker Jeffrey S. , Keats Barbara W. , Pearson John N.
Published: June 2007

This paper examines the relationship between planning process sophistication and the financial performance of a select group of small firms in a growth industry. Multivariate analysis of variance is used to identify statistically significant differences between firms that employ sophisticated plans and those that do not. The results support previous research on strategic planning and financial performance.
Strategic control systems and relative r&d investment in large multiproduct firms
Authors: Hoskisson Robert E. , Hitt Michael A.
Published: June 2007

This paper hypothesizes that tight financial controls associated with large diversified M‐form firms lead to a short‐term, low‐risk orientation and thereby lower relative investment in R&D. Further, it is hypothesized that increasing levels of diversification require different control systems which have significant implications for investing in R&D. Results of the study of 124 major U.S. firms suggest that less diversified U‐form firms invest more heavily in R&D than more diversified M‐form firms after controlling for size and industry effects. Additionally, dominant business firms invested more in R&D than either related or unrelated business firms. Finally, the relationship between R&D intensity and market performance was negative for related and unrelated firms. The findings suggest that the market evaluates R&D investment more positively for firms that are organized to seek synergy than for those that are organized to pursue a hedging (or diversification) strategy.
On ‘dominant logic’, relatedness and the link between diversity and performance
Authors: Grant Robert M.
Published: June 2007

The importance of Prahalad and Bettis's concept of dominant logic is in emphasizing business relatedness at the strategic rather than the operational level. By examining dominant logic in relation to the functions and systems of corporate management, it is possible to operationalize the concept of dominant logic and identify the key components of relatedness at the strategic level.
The chief executive: A breed apart
Authors: Norburn David
Published: June 2007

This study tested the theory that the characteristics of British chief executives would be different from that of the subordinate top management team from which they emanated. The study focused upon variations in experiences over three sets of variables: corporate influences; e.g. tenure, mobility, functional experience, international exposure; domestic influences; e.g. education, family influence; and their self‐concept; e.g. aspiration levels, executive success traits. Substantial differences emerged between the two groups across all sets of variables, particularly within the corporate category.
Types of entrepreneurs and firms: The case of new Spanish firms
Authors: Lafuente Alberto , Salas Vicente
Published: June 2007

The main purpose of this paper is to present an empirical analysis of the sequence relating the performance of the firm to its behavior, which in turn depends upon the origin and personal characteristics of the entrepreneurs. The data are drawn from new Spanish firms. A typology of new entrepreneurs is constructed, based on their basic work aspirations. Each type of entrepreneur is then examined, in terms of the origin and personal characteristics of the members of the class. The results of the study show that significant differences exist among the entrepreneurs and firms of each type, especially in terms of the size of the firm (number of employees) and its evolution over time. The implications of these results, for the theory of entrepreneurship and for the design of policies towards the creation of new firms, are then derived.
The utilization of individual capabilities in group approaches to strategic decision‐making
Authors: Schweiger David M. , Sandberg William R.
Published: June 2007

Previous research has found that groups using dialectical inquiry (DI) or devil's advocacy (DA) make better strategic decisions than groups using a consensus (C) approach. This paper explains those findings by using new data to show that the DI and DA approaches make better use of the capabilities of individual group members. Specifically, the DI and DA groups yielded significantly higher quality recommendations and assumptions than the average of the individuals in the respective groups, whereas the C groups did not. Moreover, the recommendations and assumptions of the DI groups and the recommendations of the DA groups significantly exceeded those of the best individual in the respective groups. There were no significant differences for the C groups.
The psychological context of strategic decisions: A model and convergent experimental findings
Authors: Bateman Thomas S. , Zeithaml Carl P.
Published: June 2007

Strategic decision‐makers typically are involved in a series of incremental decisions, each affected by a variety of contextual factors. This papers develops a model of the psychological context of strategic decisions and reports two experiments. First, students made reinvestment decisions faced with success or failure feedback on a past decision, high or low perceived organizational slack, and decisions framed to depict a positive or negative future outlook. All three variables had main and interactive effects. Second, managers made similar decisions in a related experimental design. Results confirmed and extended the initial findings. Implications and directions for future research are discussed.
The dynamics of continuous innovation in scale‐intensive industries
Authors: Baba Yasunori
Published: June 2007

This paper attempts to explain why some industries succeed in dematuring by formulating the generation and utilization of new technologies into a continuous process. By reference to the performance of Japanese scale‐intensive industries (i.e. automobile and consumer electronics durables), the analysis provides a theoretical foundation for the proposition that a certain type of positive‐sum game played among a variety of market entrants generates specific ‘inter‐group dynamics' (hyper‐learning process). In this industrial climate the firms’ inclinations towards offensive management and product‐cum‐process innovation has resulted in the coupling of continuous innovation and industrial evolution.
Diversification strategy and internationalization: Implications for mne performance
Authors: Michael Geringer J. , Beamish Paul W. , Dacosta Richard C.
Published: June 2007

This study examines potential explanations for performance differences among multinational enterprises (MNEs). The research variables, diversification strategy and degree of internationalization, involve basic elements of firms' strategy: range and relatedness of products, and relative emphasis on foreign versus domestic operations. The sample included the 100 largest MNEs from the U.S. and Europe. Diversification strategy was significantly related to MNE performance, extending Rumelt's seminal research to international business. Degree of internationalization was also significantly related to MNE performance.
Selecting tactics to implement strategic plans
Authors: Nutt Paul C.
Published: June 2007

Strategic managers have been found to use sophisticated tactics to implement strategic plans, but seem to limit their effectiveness by applying them indiscriminately. A contingency framework that uses situational constraints, such as the manager's freedom to act and need for consultation, is developed to select among tactics preferred by practitioners. The framework was tested using 50 episodes of strategic planning. There was a 94 percent success rate when the implementation tactic recommended by the framework was used, and a 29 percent success rate when another (non‐recommended) tactic was applied, suggesting that following the framework's prescriptions may improve the success rate for strategic plan implementation. The implications this research for practicing managers are discussed.
Accounting data for value chain analysis
Authors: Hergert Michael , Morris Deigan
Published: June 2007

Strategic planning frameworks provide a means of combining internal data about the firm's capabilities with external information about the competitive environment in a manner designed to guide resource allocation. The value chain approach to strategic planning, as described by Michael Porter in his book Competitive Advantage (1985), is a recent addition to this family of planning frameworks. In this article, we address some of the difficulties in using accounting data for value chain analysis. These difficulties are divided into those that are inherent, because of differences in methods of data accumulation, and those that are avoidable.
Strategy content and the research process: A critique and commentary
Authors: Montgomery Cynthia A. , Wernerfelt Birger , Balakrishnan Srinivasan
Published: June 2007

The purpose of this paper is to encourage discussion on the ‘state‐of‐the‐science’ in strategy content research. We present a view of an interactive research process and argue that strategy content research would benefit from (1) more carefully developed theoretical work; (2) more theory‐driven data analysis; and (3) less emphasis on the immediate applicability of results.
Generic manufacturing strategies: A conceptual synthesis
Authors: Kotha Suresh , Orne Daniel
Published: June 2007

This paper provides a conceptual framework that links manufacturing to business unit strategy and focuses on developing the notion of ‘generic manufacturing strategies’ at the strategic business unit (SBU) level. Specifically, an explicit conceptual link is drawn between ‘generic’ business unit strategies and ‘generic’ functional structures in manufacturing. It is proposed that the alternate manufacturing structures implicitly represent ‘generic manufacturing strategies’. Drawing on ideas and concepts from the business strategy literature and manufacturing literature the paper links Porter's generic strategy framework to a complementary manufacturing structure framework that uses three dimensions: process structure complexity, product line complexity, and organizational scope. Viewed from different perspectives, the ‘manufacturing contingency theory’ concepts presented implicitly in the paper can be viewed as an extension of classic research on the interdependence between strategy and structure. The frameworks developed here provide a partial synthesis of knowledge in the broader disciplines of engineering and management without sacrificing academic rigor and practitioner relevance.