bluuebunny/crossref_metadata_2025 huggingface dataset:
Technological evolution and competitive response
Authors: Williams Jeffrey R.
Published: May 2007

This paper focuses and extends some emerging views on technological evolution and competition. First, that over the evolution of many product‐market segments there is a generalizable pattern, a shift from the investment characteristics of product technology to those of process technology as the primary focus of competition. Eventually, market price falls below production costs, not because firms face U‐shaped cost curves, but because of shifts in demand to the innovative form of the product. To this framework is added a hypothesis on the evolving risk structure of rival investments. The interaction of required and realized returns then provides a stopping rule for technologically‐driven competition which is different from the static case. Because technological change within a segment is non‐controllable but predictable the production functions and organization structures of participating firms must change in generalizable ways which can be used to predict industry structure. For the competing organization, these changes require particular kinds of decisions which are particularly suited to the level of the organization's strategic management.
Study of the undergraduate business policy course at AACSB‐accredited universities
Authors: Eldredge David L. , Galloway Rex F.
Published: May 2007

This paper reports the results of a study directed toward determining: (1) the current pervasiveness of the requirement of a business policy course by AACSB‐accredited undergraduate programmes, (2) the general characteristics of the courses, (3) the organization of the courses, and (4) anticipated future changes in the courses. A questionnaire was mailed to all 208 AACSB‐accredited schools and returns were obtained from 203 of them. The paper presents the results derived from these responses and draws conclusions with regard to the study's objectives.
Evaluation of the strategies and performance of low ROI market share leaders
Authors: Woo Carolyn Y.
Published: May 2007

This study examines the strategies of 41 businesses which are market share leaders, but have poor performance. Hypotheses are tested relating to market stability and product demand characteristics, as well as organizational commitments and competitive strategies.
Strategy, external communication and environmental context
Authors: Dirsmith Mark W. , Covaleski Mark A.
Published: May 2007

It has long been argued that organizations must interact with their environments in order to survive. But is the nature of this interaction invariant across environmental contexts? This paper considers the importance of communication between organizations and key environmental elements to the development of organizational strategic norms. Based on a grounded theory framework of analysis, it is theorized that organizational strategic norms are negotiated with the environment in an interactive fashion, and that task environmental elements concerned with assessing organizations tend to employ evaluation processes that are broadly reflective of an organization's context. Views offinancial analysts and individual investors, elicited in both a quantitative and a qualitative form, are suggestive of the merits of this theorizing. Several implications for researchers and strategists are discussed.
An empirical analysis of strategy types
Authors: Galbraith Craig , Schendel Dan
Published: May 2007

Using the PIMS SPIYR data base, which pools cross‐section and timeseries data, an empirical study to identify business strategy types was undertaken. Using a two‐stage methodological approach combining principal component and cluster analysis on both a consumer products and an industrial products data base, two sets of strategy typologies were identified. Six strategy types were identified for consumer products: (1) harvest, (2) builder, (3) cashout, (4) niche or specialization, (5) climber, and (6) continuity. For industrial products, four strategy types were identified: (1) low commitment, (2) growth, (3) maintenance, and (4) niche or specialization. A discussion of the characteristics of each strategy type is offered.
The impact of formalized strategic planning on financial performance in small organizations
Authors: Robinson Richard B. , Pearce John A.
Published: May 2007

The relationship between formality of planning procedures and financial performance was examined for a sample of small U.S. banks. Small banks without formal planning systems performed equally with small, formal planners. Regardless of formality, each set of banks placed equal emphasis on all aspects of strategic decision‐making except formalized goals and objectives. Results suggest that managers responsible for strategic planning activity in smaller organizations do not appear to benefit from a highly formalized planning process, extensive written documentation, or the use of mission and goal identification as the beginning of a strategic planning process.
Strategy‐making and environment: The third link
Authors: Miller Danny , Friesen Peter H.
Published: May 2007

Whereas much is known about the relationships between strategy and structure, and between environment and structure, too little is known about a third link—the relationship between strategy‐making and environment. An empirical study was conducted upon two distinct samples of firms. We hypothesized that increases in environmental dynamism, hostility and heterogeneity should be related to specific changes in the amount of analysis and innovation which characterizes strategy‐making activity. Most of these relationships tended to be much stronger in successful than in unsuccessful samples of firms.
Toward understanding strategic issue diagnosis
Authors: Dutton Jane E. , Fahey Liam , Narayanan V. K.
Published: May 2007

This paper calls attention to a central but neglected process in strategic decision making, i.e. strategic issue diagnosis (SID). A framework for discussing SID is presented in terms of three critical components: inputs, process characteristics and outputs. The framework is illustrated in the context of PIMS and BCG, two widely recognized strategy models. The major implications highlight the theoretical significance of SID for understanding strategic decision making.
Type of entrepreneur, type of firm, and managerial motivation: Implications for organizational life cycle theory
Authors: Smith Norman R. , Miner John B.
Published: May 2007

Miner Sentence Completion Scale measures of managerial motivation for a sample of Oregon entrepreneurs were compared with interview data on entrepreneur and firm type using a system of differentiation derived from the Enterprising Man (Collins, Moore and Unwalla, 1964) research. Certain relationships between aspects of managerial motivation and firm expansion and growth were found. In addition, the overall level of managerial motivation among the entrepreneurs relative to corporate managers was found to be low, and the previously noted association between an opportunistic entrepreneurial type and growthoriented firms was confirmed. These findings are discussed in the context of organizational life cycle theory with special reference to the early stages of transition from entrepreneurial to bureaucratic forms and various typologies of entrepreneurs. It appears that under certain circumstances growth may not require a shift in leadership style, but that in some important respects entrepreneurial and bureaucratic systems are managerially distinct.
Research note and communication. Reversing the images of BCG's growth/share matrix
Authors: Seeger John A.
Published: May 2007

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.
Cognitive simplification processes in strategic decision‐making
Authors: Schwenk Charles R.
Published: May 2007

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.
Strategy support models
Authors: Morecroft John D. W.
Published: May 2007

A major challenge in strategy development is to deduce the consequences of the interacting programmes underlying strategy. The paper argues that behavioural simulation models can help meet this challenge by acting out the consequences of strategy proposals in their full organizational setting. However, the real key to effective strategy support is not simply having a model, but using it in a structured dialogue with executives. To illustrate the idea, the paper presents a system dynamics simulation model used to aid executives of an advanced office equipment firm in setting their marketing strategy. The paper describes the process by which the model was created and brought to the attention of executives. Several examples are provided of the dialectical use of the model, showing how differences in management intuition and model‐generated opinion led to improved insight into the consequences of strategy.
MNC‐third world business unit performance: Application of strategic elements
Authors: Wright Peter
Published: May 2007

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.
Factors influencing divestment decision‐making: Evidence from a field study
Authors: Duhaime Irene M. , Grant John H.
Published: May 2007

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.
Making business ethics useful
Authors: Arthur Henry B.
Published: May 2007

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.
Corporate management of productivity—An empirical study
Authors: Morris Mcinnes J.
Published: May 2007

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.
Research note and communication. The impact of environmental uncertainty on long‐range planning practices of the U.S. savings and loan industry
Authors: Javidan Mansour
Published: May 2007

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.
Managers' conservatism and corporate performance
Authors: Sturdivant Frederick D. , Ginter James L. , Sawyer Alan G.
Published: May 2007

This article argues that conservatism as a personal value among senior managers significantly affects corporate performance. A scale to measure conservatism was developed and its measurement properties were tested on several hundred executives. Empirical results were consistent with the hypotheses that conservatism among senior management teams is negatively associated with the firm's social responsiveness as well as certain aspects of financial performance.
An application of clustering for strategic group analysis
Authors: Harrigan Kathryn Rudie
Published: May 2007

Taxonomies, factor analysis and clustering are discussed as tools to investigate the structure of competitors within an industry (‘strategic groups’). An example using cluster analysis is presented as one means of operationalizing this concept. Careful definition and selection of the dimensions used to identify the boundaries between strategic groups (their mobility barriers) are particularly crucial in the effective application of analytical tools.
Empirically derived models of strategic decision‐making processes
Authors: Shrivastava Paul , Grant John H.
Published: May 2007

This paper reports on an empirical study of strategic decision‐making processes and organizational learning in 32 business organizations facing complex environments. The decision processes were found to vary in four prototypical patterns described here as the strategic decision‐making models. These models are proposed as an initial step towards the development of a taxonomy of strategic decision processes. The relationships between strategic decision‐making models and organizational learning systems that support them are explored. These models may help researchers to conceptualize and practitioners to manage strategy formulation processes in organizations.
Organizing for dual strategies of product diversity and international expansion
Authors: Daniels John D. , Pitts Robert A. , Tretter Marietta J.
Published: May 2007

This study examines organization structures of 37 large U.S. multinationals which are both highly diverse and heavily involved abroad. The findings show that the international division is still the most popular structure for this form of enterprise. However, Several other structures are also found to be in common use. An attempt is made to relate use of these structures to such strategic variables as extent of vertical integration, R & D intensity, level of foreign sales and method of diversifying.
Diversification strategy, profit performance and the entropy measure
Authors: Palepu Krishna
Published: May 2007

Several industrial organization studies, using diversification index measures, examined corporate diversification and economic performance and failed to find any significant relationship between them. Rumelt and other strategy researchers used a semisubjective classification scheme and uncovered a systematic relationship between diversification strategies and performance. This study combines the strengths of the index approach, namely, simplicity, objectivity and replicability, with the essential richness of Rumelt's methodology. Using the Jacquemin‐Berry entropy measure of diversification and the line‐of‐business data, this study finds that firms with predominantly related diversification show significantly better profit growth than firms with predominantly unrelated diversification.
The value of formal planning for strategic decisions: Reply
Authors: Armstrong J. Scott
Published: May 2007

In Armstrong (1982a), I examined alternative explanations to the empirical findings that supported the use of formal planning. In considering the possibility that researcher bias might lead to such results, I used Terpstra's (1981) evaluation scheme. Based on this test, poor methodology did not seem responsible for the conclusions on the value of formal planning.
Lanchester market structures: A. Japanese approach to the analysis of business competition
Authors: Campbell N. C. G. , Roberts K. J.
Published: May 2007

Japanese consultants have used Lanchester's military models to define monopoly, premium, duopoly, oligopoly and polyopoly market structures in which competitive conditions differ. These situations are investigated using the PIMS database. The findings refute the idea that monopoly and premium structures are more stable than the others. Instead movements between structures seem to follow a Markov process.
Problem formulation as a purposive activity
Authors: Volkema Roger J.
Published: May 2007

This paper presents a framework for understanding the multiple purposes that problem statements can serve during the formulation phase of strategic planning. Both functional and dysfunctional purposes exist. Variables that can help to identify dysfunctional purposes are discussed.
Cost leadership strategy and experience curves
Authors: Amit Raphael
Published: May 2007

Investing in cost leadership by rapidly riding down the experience curve is a common way to establish a firm's competitive advantage. Its success depends, in part, on the factors that underlie the experience curve. In this paper we make the distinction between cost declines that occur at any point in time and cost declines that may occur over time. This leads us to consider a revised experience concept in which the dynamic interrelationship between a firm's production rate, cumulative production and unit cost is explicitly considered. We provide a detailed analysis of various scale‐learning relationships and their strategic implications for establishing competitive advantage through an investment in cost leadership. We also prove analytically that such investment should take place only in the presence of learning.
Environmental analysis: The applicability of current theory
Authors: Lenz R. T. , Engledow Jack L.
Published: May 2007

It is suggested that senior‐level executives and corporate staff are under mounting pressure to develop better means for assessing organizational environments. This comes at a time when there is little agreement about the concept of environment, relevant perspectives from which it should be viewed, and how to organize for its evaluation. Alternative ‘models’ for environmental analysis are examined, and theoretical issues and their administrative implications are discussed.
The role of new firms: Births, deaths and job generation
Authors: Birley Sue
Published: May 2007

The contribution of both new and small firms towards economic recovery is now universally accepted as significant. What is still unclear, however, is the extent of that contribution, particularly with regard to the new firm. Despite this, governments at all levels, federal, state and county, have designed strategies for fostering entrepreneurial activity. With little specific knowledge of the target population, these strategies have been either general in nature or based on economic theory, and, as a consequence, little is known about whether they have been effective in affecting the natural process, and in what geographic locations.

This research studied the whole population of new firms started in St. Joseph County, Indiana, between 1977 and 1982. It was concerned with both birth and death patterns, and the net jobs generated. The results confirmed the general findings of others that new firms play a significant role in job generation. Over the period, the number of jobs created by a new firm was a consistent 2.9 per cent of the total number of jobs in the industrial sectors studied. Moreover, this exceeded the 1.75 per cent of jobs lost through firms withdrawing from the labour market. Within this, activity in both firms and jobs was found to be centred in only a few SIC categories, and the results of this research suggest that simple tests of volatility and gain will help to focus strategic plans for aid on those sectors where the natural process is already generating the most new jobs.
The market share‐profitability relationship: An empirical assessment of major assertions and contradictions
Authors: Prescott John E. , Kohli Ajay K. , Venkatraman N.
Published: May 2007

While previous research on the relationship between market share (MS) and business profitability (BP) has found a positive relationship, its nature (i.e. direct versus spurious), its context‐specificity, and the validity of MS as a predictor of BP have not been adequately addressed. Employing path analysis, this study examined the nature of this relationship across a taxonomy of homogeneous environments. The major findings were that (1) the association between MS and BP is context‐specific; (2) both direct and spurious relationships exist, and their relative strengths vary across environments; and (3) the validity of MS as a predictor of BP is context‐specific. Further, key firm conduct variables accounting for the spuriousness have been identified. Finally, implications of these findings for managers pursuing market share as a goal are discussed.
Financial strategy: Planning and managing the corporate leverage position
Authors: Sandberg Carl M. , Lewellen Wilbur G. , Stanley Kenneth L.
Published: May 2007

Among the important elements of a company's strategic plan is its decision about the degree of financial leverage it elects to imbed in its capital structure. A simple operational framework that can assist in framing that decision, which concentrates on the likelihood of being unable to meet fixed financial charges, is presented. The model is tested empirically, and support for its potential usefulness in the financial planning process is found.
Assessing international diversification of West German corporations
Authors: Bühner Rolf
Published: May 2007

While product diversity has primarily attracted strategic management scholars, this paper examines the performance of corporate international diversification from a market point of view. The results indicate that in a highly industrialized, but relatively small, West German market, companies going abroad create shareholder wealth.
Rigor and practical usefulness of research in strategic management
Authors: Shrivastava Paul
Published: May 2007

This paper examines the rigor and usefulness of research programs in strategic management. Using a facet analysis technique, 23 research programs are examined on eight criteria reflecting their relative rigor and usefulness. Results show that this field has emphasized the practical usefulness of research results. Some research that is rigorous and has practical usefulness also exists in the field. Suggestions for generating more such research are discussed.
A refinement of Porter's strategies
Authors: Wright Peter
Published: May 2007

Michael Porter has formulated a set of generic strategies and addressed them to academicians in the fields of economics and strategic management and to top managers of businesses. This article suggests several refinements to his ideas which may further enhance their value to academicians and practitioners.
Organizing for innovation over an industry cycle
Authors: Strebel Paul
Published: May 2007

The basic hypothesis in this paper is that a gap tends to develop over an industry's evolution between potential innovators in a company and the organizational mainstream. The innovative gap is a function of the type of innovation needed for longer‐run survival and the disposition of the mainstream organization towards innovation. This hypothesis is used to predict which of four popular organizations for innovation is most suited to each stage of an idealized industry's evolution. The predicted organization set is discussed in terms of well‐known cases, and tested in an exploratory manner using executive survey data.
Toward a contingency theory of compensation strategy
Authors: Balkin David B. , Gomez‐Mejia Luis R.
Published: May 2007

This paper develops several propositions that link compensation strategy and the effectiveness of the compensation system. The underlying argument is that effectiveness at realizing intended pay strategies depends significantly on the existence of a match between compensation strategies, organization and environment. These propositions are tested in a sample of 33 high tech and 72 non‐high tech firms or business units in the Boston Route 128 area. Respondents are managers responsible for compensation policies in these firms or business units. The relationships among compensation strategies, organization characteristics and environment are explored. The findings may help researchers conceptualize, and practitioners manage, the relationship between reward processes and strategy in organizations.
Competitive strategy under uncertainty
Authors: Wernerfelt Birger , Karnani Aneel
Published: May 2007

Competitive strategy under uncertainty involves a trade‐off between acting early and acting later after the uncertainty is resolved, and another trade‐off between focusing resources on one scenario and spreading resources on several scenarios, thus maintaining flexibility. This paper analyzes both these trade‐offs taking into consideration the nature of uncertainty, industry economics, intensity of competition, and the position of a firm relative to its competitors.
Strategic planning and individual temporal orientation
Authors: Das T. K.
Published: May 2007

This paper examines the role of future orientation of organizational members in the strategic planning enterprise. It explores, conceptually and empirically, the relationship between the future time perspectives of individuals and their preferences for short and long planning horizons. Research with 207 corporate executives confirms the relevance of this individual future orientation. Implications of the temporal perspective for research and managerial practice are discussed.
Financial and stock market variables as predictors of management buyouts
Authors: Maupin Rebekah J.
Published: May 2007

This paper investigates whether publicly held firms which change to private ownership through management buyouts (ex‐public firms) possess characteristics prior to the change which differentiate them from firms which remain publicly owned. The financial characteristics of ex‐public firms for the year immediately prior to going private were analyzed. A multivariate framework was developed to determine which attributes best distinguished firms going private via management buyouts from similar firms not going private. A discriminant function was developed using seven ratios: (1) concentration of ownership, (2) cash flow to net worth, (3) cash flow to total assets, (4) price/earnings ratio, (5) price/book value ratio, (6) book value of depreciable assets in relation to original costs, and (7) dividend yield. The model demonstrated a classification accuracy of 77.8 percent for the original sample and 81.4 percent in a hold‐out sample validation. These findings imply that financial characteristics alone provide a means by which firms going private via management buyouts can be separated from others. Therefore one can argue that, regardless of the stated motive for going private, financial characteristics either are explicit decision variables or directly reflect non‐financial reasons for management buyouts.
The industry context of strategy, structure and performance: The U.K. brewing industry
Authors: Johnson Gerry , Thomas Howard
Published: May 2007

This paper is concerned with identifying influences on the competitive performance of companies involved in the U.K. brewing industry. It seeks to identify key strategic characteristics, relate these to company performance and move towards an explanation of the influences that emerge as influencing competitive standing. It argues that diversification strategies must be studied as an aspect of industry structure, and shows that more focused, limited diversification and regional brewing strategies may be preferable in the context of the U.K. brewing industry. The research findings conflict with those of many previous studies which research the diversification strategies of primarily large firms (both in the U.S. and the U.K.) drawn from across‐industry samples (e.g. the Fortune 500 firms) and which identify superior performance for related diversification strategies. The study therefore provides support for the hypothesis that there is an optimum level of diversification within an industry which balances economies of scope and diseconomies of organizational scale. In the context of the U.K. brewing industry the traditional single or dominant business brewers seem to have found the strategy which matches firms effectively with the important characteristics of industry structure.
Human resource planning and organization performance: An exploratory analysis
Authors: Nkomo Stella M.
Published: May 2007

In a study of the impact of human resource planning an organization performance, statistical tests did not indicate significant differences between the performance of firms using formal human resource planning and firms that do not. There was an indication of a positive change in performance after the initiation of human resource planning, relative to non‐users of such systems.
Strategic orientation and characteristics of upper management
Authors: Chaganti Rajeswararao , Sambharya Rakesh
Published: May 2007

Every organization reflects the background of its most powerful top managers; what the organization does and the way it carries out its functions could be explained, in part at least, by the profile of its upper echelon. The relationship between the strategic orientation of three tobacco companies, the proportion of executives recruited from outside the company and the proportion of executives from different functional backgrounds in the upper echelon of the companies is the focus of this paper.
Environment, planning processes, and organizational performance of churches
Authors: Odom Randall Y. , Boxx W. Randy
Published: May 2007

Churches have rarely been the focus of research dealing with strategic management issues, although their impact on individuals, as well as on society as a whole, is equal to or greater than the impact of many business organizations. The study reported herein was designed to fill some of the information void. Data were obtained from a sample of 175 churches, and the relationships of church size and growth to perceptions of the environment and to planning processes were examined. The results indicated that perceptions of the environment, or more specifically the importance of certain environmental factors used in decision‐making, were related to the level of planning sophistication. In addition, planning sophistication was found to be related to the size and growth of churches.
Market, organizational and managerial correlates of economic performance in the U.K. Electrical Engineering Industry
Authors: Grinyer Peter H. , McKiernan Peter , Yasai‐Ardekani Masoud
Published: May 2007

Hypotheses relating to market, organizational and managerial determinants of profitability and growth are developed and tested using data collected by structured interviews in 45 randomly selected companies in the electrical engineering industry. Multiple regression analysis suggests that market share and barriers to entry are the principal determinants of profit margins, but that tightness of control of working capital and aggressive management style also have an important influence. Centralization of decision‐taking among smaller companies, too, was associated with greater profitability, whilst more extensive budgetary control and planning of acquisitions or diversification were both negatively correlated with the latter. Profitability was the single most important predictor of the rate of company growth of sales but constraints from organized labor, from sources of finance, and conservative management styles, the rate of product change, R&D intensity, and decentralization all entered significantly.
Performance differences between the wrigley/rumelt strategic categories
Authors: Grant Robert M. , Jammine Azar P.
Published: May 2007

This study examines differences in profit and sales performance between the different Wrigley/Rumelt categories of diversification strategy. Our sample comprised 305 large U. K. manufacturing companies over the period 1972–84. Although diversification strategy explained only a small proportion of inter‐firm performance differences, once the influence of other firm and industry variables were taken into account, significant differences did emerge. Our findings conflict with those of earlier U.S. studies. In particular, we find that diversified firms outperformed specialized firms and there was no evidence that related diversification was more successful than unrelated.
The persistence of abnormal returns
Authors: Jacobsen Robert
Published: May 2007

The time‐series behavior of ROI is examined to assess a central element of competitive markets, the lack of persistence of abnormal profits. The analysis first determines the aggregate dynamic process of ROI and then examines how strategic and market factors influence this process. Consistent with abnormal returns resulting from a disequilibrium phenomenon, a mean reverting time‐series process approximates the behavior of ROI. While a variety of factors influence the persistence of return, the conditions under which market forces do not drive return back to its competitive rate seem remote, if present at all. Nonetheless, these factors can insulate a firm from competitive forces and so result in longer‐term abnormal profits.
Triggers, templates and twitches in the tracking of emerging strategic issues
Authors: El Sawy Omar A. , Pauchant Thierry C.
Published: May 2007

A longitudinal investigation of group tracking of potential new applications and markets created by an emerging technology (cellular telephones) is used to gain more understanding of the shifts of cognitive frames of reference in the environmental tracking of emerging strategic issues. The dynamics of frame of reference shifts is examined through the derivation and operationalization of the concepts of templates, triggers and twitches. The results posit that examining the frame of reference shifts can be more informative than examining the frames themselves. Implications for strategic management practice and research are addressed.
Internal corporate joint ventures: Development processes and performance outcomes
Authors: Shortell Stephen M. , Zajac Edward J.
Published: May 2007

Joint venture activity and internal corporate venturing represent two administrative innovations receiving increased attention in strategic management research. This study investigates a new hybrid form of administrative innovation: internal corporate joint ventures, which combine the equity involvement typically found in joint ventures with the internal staffing of a semiautonomous unit typical of internal corporate ventures. Drawing on both a process model and a variance model, the structuring, development and performance of 53 such ventures in an industry‐specific setting is examined.
A meta‐analysis on the comparative effectiveness of devil's advocacy and dialectical inquiry
Authors: Schwenk Charles
Published: May 2007

The use of meta‐analysis allows us to draw stronger inferences from past research than are possible from traditional literature. In this paper the general purpose of meta‐analysis is discussed, and it is used to resolve a dispute regarding a collection of studies in strategic management dealing with devil's advocacy and dialectical inquiry. The use of meta‐analysis leads to different conclusions from those drawn in an earlier review of these studies. At the end of the paper the limitations and potential uses of meta‐analysis in strategic management are discussed.
Environment‐strategy coalignment: An empirical test of its performance implications
Authors: Venkatraman N. , Prescott John E.
Published: May 2007

The positive performance impact of a coalignment between the environment and strategy of a business is an important theoretical proposition in strategic management. In spite of its importance and intuitive appeal, the extent of empirical support is equivocal and riddled with problems of conceptualizing and testing for coalignment. This paper evaluates alternate approaches to testing such a proposition and argues in favor of specifying coalignment as ‘profile deviation’, which states that coalignment is the degree to which strategic resource deployments adhere to an ‘ideal profile’ for a given environment. Subsequently, this proposition is tested across two time periods, and eight distinct environments in two different samples drawn from the PIMS data base. Results, which were generally robust across the two periods, strongly support the proposition of a positive performance impact of environment‐strategy coalignment. Implications and research directions are developed.
The paradox of strategic controls
Authors: Goold Michael , Quinn John J.
Published: May 2007

This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place. The paper then identifies some of the difficulties that may be associated with establishing a strategic control system, points up issues that require further empirical research, and suggests a framework for exploring a contingency theory concerning the sorts of businesses in which strategic control systems would be most and least valuable.
An empirical analysis of organizational strategies by entrepreneurial high‐technology firms
Authors: Shan Weijian
Published: May 2007

Many start‐up, high‐technology firms commercialize an emerging technology through cooperative arrangements. This paper empirically investigates the determinants of entrepreneurial high‐technology firms to form cooperative relationships. The statistical results on data drawn from the commercialization of the new biotechnology show that the propensity to cooperate is positively correlated with the distance of firms' competitive position in relation to their rivals. The follower is more likely to seek cooperative relationships than the leader in commercializing new products. However, the competitive pressure impacts firms in different ways, depending on their internal capabilities to commercialize a new product. We found that firm size is negatively correlated with the use of cooperative arrangements. The study also found that the organizational mode of cooperative arrangements is predominantly selected by the high‐tech. start‐up firm in commercializing their new products in foreign markets.
Management of the political imperative in international business
Authors: Ring Peter Smith , Lenway Stefanie Ann , Govekar Michele
Published: May 2007

In this paper we develop a framework for analyzing the political imperative. We argue that the effects of the political imperative on the firm will be a function of industry structure. Strategies that management employs in coping with the political imperative are a function of its impact on the firm and the firm's strategic predisposition. We also speculate on why strategic predisposition may lead firms to employ strategies that are not responsive to the demands of the political imperative.
Strategic orientation and top management attention to control systems
Authors: Simons Robert
Published: May 2007

Management control systems are viewed typically as management‐by‐exception tools for implementing intended strategies. This study provides a different perspective by focusing on the way that top managers use specific control systems to focus organizational attention on strategic uncertainties and thereby guide the development of new strategic initiatives. Analysis of field‐based data from 30 businesses in the U.S. health care products industry is used to develop a model and propositions that distinguish between interactive and diagnostic control systems, and illustrate the selective use of these systems in different strategic contexts.
Risk‐return associations: Paradox or artifact? An empirically tested explanation
Authors: Wiseman Robert M. , Bromiley Philip
Published: May 2007

This study tests Fiegenbaum and Thomas's suggestion that Bowman's risk‐return paradox may be due to measuring risk by variance in data that have trends. Results indicate that trends in ROA and ROE cannot explain the pattern of risk‐return associations found in previous research.
The effect of compensation program and structure on sbu competitive strategy: A study of technology‐intensive firms
Authors: Galbraith Craig S. , Merrill Gregory B.
Published: May 2007

In this paper we examine the impact various compensation programs have upon business‐level strategy for technology‐intensive firms. Similarly, we examine the effect of centralization of R&D and non‐R&D decision‐making, formality of procedures, and SBU size on competitive strategy. Analysis of data from 79 SBUs suggest that there is a resource trade‐off between marketing‐oriented strategies and R&D‐oriented strategies, and that managers who operate under certain types of compensation programs will tend to favor R&D/innovation strategies and capital investment over other alternatives. Structure and competitive position also appear to play a significant role in determining technology and investment strategy.
How sensitive is executive compensation to organizational size?
Authors: Lambert Richard A. , Larcker David F. , Weigelt Keith
Published: May 2007

Prior empirical research has documented a large cross‐sectional correlation between the level of executive pay and firm size. In contrast, this paper examines the association between percentage changes in executive compensation and percentage changes in organizational size. We analyze compensation and size data for executives at several levels of the corporate hierarchy for a sample of 303 firms. Our results indicate that the correlation between compensation and size is much smaller, although still statistically significant, in changes than in levels. This suggests that changes in an executive's compensation are not primarily driven by changes in organizational size.
U.S. national security export controls: Implications for global competitiveness of U.S. high‐tech firms
Authors: Parkhe Arvind
Published: May 2007

U.S. exporters of high‐technology, ‘dual‐use’ products are competitively disadvantaged in global markets by the complexity, range, and stringency of U.S. national security export controls. This paper demonstrates that fungibility of high technology and lax interpretation of multilateral export control agreements by other advanced countries have made the existing control regime ineffective. It further shows that persistent U.S. restrictiveness of exports in non‐critical, widely available goods and technologies may needlessly and permanently erode U.S. firms' competitive position in existing as well as rapidly‐opening markets worldwide. The need to revise the notion of national security to include not only military security, but also its complement, economic security, is discussed. The pivotal issue of enforceability of multilateral controls is explored, and corporate strategies for U.S. high‐tech firms to achieve export control policy change are suggested.
Factors influencing wealth creation from mergers and acquisitions: A meta‐analysis
Authors: Datta Deepak K. , Pinches George E. , Narayanan V. K.
Published: May 2007

This study analyzes the empirical literature concerning the influence of various factors on shareholder wealth creation in mergers and acquisitions using a multivariate framework. Overall, results indicate that while the target firm's shareholders gain significantly from mergers and acquisitions, those of the bidding firm do not. Findings also indicate that the use of stock financing has a significant impact on the wealth of both the target and bidding firms' shareholders. The presence of multiple bidders and the type of acquisition influence the bidders' return, while regulatory changes and tender offers influence the targets' returns. The paper also provides a comparison of our findings with that of previous narrative reviews and discusses their implications from the viewpoint of managers and researchers.
SBU strategy and performance: The moderating effects of the corporate‐SBU relationship
Authors: Golden Brian R.
Published: May 2007

This study suggests that the link between an SBU strategy and performance is moderated by the SBU's relationship with corporate management. Information processing arguments suggest that this relationship, typically characterized by general measures of centralization, has been inappropriately conceptualized in prior research. An alternative view, one that considers which decisions and activities should be controlled by the individual SBU, is proposed and tested. The results of a study of 496 SBUs indicate that SBU performance is enhanced when: (1) SBUs with an external strategic orientation control environmental monitoring activities and strategic decision analysis, and (2) SBUs with an intraorganizational orientation control those activities relating to operations. Weaker SBU performance is associated with SBU control over those functions and activities not central to the SBU's business strategy. Therefore, it is suggested that the corporate‐SBU relationship can either facilitate or inhibit the implementation of the SBU's intended strategy.