bluuebunny/crossref_metadata_2025 huggingface dataset:
Patterns of japanese strategy: Strategic combinations of strategies
Authors: Smothers Norman P.
Published: May 2007

Japan's ‘miracle’ is an ongoing, evolving one. Along with the explosive rise of Japan's economic fortunes the number of theories about the business strategy of Japan's most successful firms, her Kaisha, is also exploding. The focus here is not on individual building‐block strategic patterns but on: (1) linkages between the patterns, and (2) how (and why) some patterns may be combined to create even greater advantage. At the level of the firm a few basic themes are discussed and roughly modeled as a sequence, a ‘pattern of patterns’. It is argued that (in retrospect) several patterns of Japanese strategy have been (to differing degrees in different firms) parts of a larger, synergistic, internally logical, and powerful synthesis. The point is that additional strategic advantages can emerge for firms which think about how to link together strategic patterns. Evidence is offered illustrating these arguments and demonstrating one way Japanese patterns combine to form an integrated strategy.
Growth and performance contrasts between ‘types’ of small firms
Authors: Birley Sue , Westhead Paul
Published: May 2007

This paper studies the interrelationships in the strategic profile of a sample of small firms, and, by using cross‐sectional analysis, attempts to identify any evidence to support the ‘stages of growth’ theories. Three surrogates for comparative growth were used in the analysis: number of employees, sales turnover, and profitability. A cluster analysis identified eight different ‘types’ of small firms characterized by ‘internal’ variables of ownership, management, and product structure; and by ‘external’ variables of product/market positioning. Analysis of variance tests found no significant differences between the clusters with regard to size. The results suggest that firms do change, but not necessarily in any prescribed sequence. Indeed, the evidence presented in this paper suggests that future research should be focused on developing theories which better describe the heterogeneity of the sector by analyzing the development within clusters of firms rather than seeking generalized overarching theories.
Choice and determinism: A reply
Authors: Lawless Michael W. , Tegarden Linda K. Finch
Published: May 2007

Hrebiniak and Joyce (1985) present a model of organizational adaptation in which environmental determinism and strategic choice are orthogonal. Lawless and Finch (1989) find empirical support for Hrebiniak and Joyce's four choice‐determinism combinations, and mixed support for propositions concerning strategies that perform best in each. The note, ‘Choice and determinism: A comment,’ relates social learning theory to the Hrebiniak and Joyce framework, based on the position that this theory is a useful way to describe the process of organizational adaptation. Fundamentally, the comment puts two arguments on the table. In order of importance they are:

The adaptation process is only broadly defined by Hrebiniak and Joyce or by Lawless and Finch. Yet it is important to understand the choice—determinism interaction. The comment recommends social learning theory (Wood and Bandura, 1989) as an elaboration.

The process of adaptation is interactive, and ought to be studied longitudinally. These two arguments are discussed in turn as a possible contribution to choice‐determinism research.
Are institutional investors myopic? A time‐series study of four technology‐driven industries
Authors: Hansen Gary S. , Hill Charles W. L.
Published: May 2007

This paper examines the popular myth that managers in high‐technology industries are altering their critical R&D investments in response to the short‐term profit pressures of large institutional stockholders. The study entails an empirical examination of the relationship between R&D spending and institutional ownership over a 10‐year period for 129 firms based in four research‐intensive industries. Contrary to the view that institutional investors are having a damaging affect on R&D spending, after controlling for intervening effects the results suggest that higher levels of institutional ownership may be associated with greater R&D expenditures. A number of possible explanations for this finding are developed.
Organizing competitor analysis systems
Authors: Ghoshal Sumantra , Westney D. Eleanor
Published: May 2007

Based on a detailed study of the competitor analysis (CA) systems in three large companies, this paper examines the assessments of the formal CA system by its members and its major users, the uses to which CA is put, and the organizational systems by which the function attempts to improve its contribution and strengthen its role.
Strategy and the research process: A comment
Authors: Seth Anju , Zinkhan George
Published: May 2007

The purpose of this paper is to expand the discussion of the ‘state‐of‐the‐science’ in strategy research. We critically examine the role that theory plays in strategic research, and describe the principles underlying good theory. From a philosophy of science perspective, we argue that: (1) both inductive and deductive methods are valid ways of generating theory; (2) the falsificationist perspective provides an inadequate model for describing the process of theory testing; and (3) managers, researchers, public policy‐makers, the popular press, and the public at large all have important roles to play in the knowledge development process.
Output flexibility—A competitive advantage for small firms
Authors: Fiegenbaum Avi , Karnani Aneel
Published: May 2007

We explore three theoretical perspectives that look at output flexibility as a competitive advantage for small firms as was initially described by Stigler (1939). First, small firms are more willing to fluctuate their output. As a result: second, small firms can trade cost inefficiency with volume flexibility to increase their profits; third, output flexibility is a more viable source of competitive advantage in volatile and capital‐intensive industries, and less viable in profitable industries. Indeed, the empirical analysis of over 3000 companies representing 83 industries during the 1979‐87 time period supports our theoretical perspectives. Future research directions that combine firm flexibility and other strategic dimensions are discussed in the context of providing a general strategic framework for small firms competing against large ones.
Organizational boundaries and economic performance: An empirical study of entrepreneurial computer firms
Authors: Mosakowski Elaine
Published: May 2007

This research examines the relationship between the organizational boundaries of entrepreneurial firms and their economic performance. The theoretical basis for this work is transaction cost economics research regarding when internalizing certain activities will be preferred over contracting. To consider the conditions under which contracting is costly we compare across three functional areas and three firm strategies. The results of a longitudinal analysis of 122 entrepreneurial firms in the computer industry show that performance effects are associated with contracting activities and that product market strategies moderate the performance effects of contracting. The results are mixed in their support for the predictions of transaction cost economics.
The relative power of ceos and boards of directors: Associations with corporate performance
Authors: Pearce John A. , Zahra Shaker A.
Published: May 2007

A typology of the relative powers of the chief executive officer and the board of directors was derived based on the literature, highlighting four situations: Caretaker, Statutory, Proactive and Participative boards. Data collected from Fortune 500 Industrial and Fortune 500 Service corporations supported the typology. The results showed significant differences among the four board types in their characteristics, internal process, decision‐making styles, board effectiveness, and contribution to company performance. Powerful boards were associated with superior corporate financial performance.
CEO duality and organizational performance: A longitudinal analysis
Authors: Rechner Paula L. , Dalton Dan R.
Published: May 2007

All public corporations must make a choice regarding board leadership structure. Advocates of more effective corporate governance argue for independent board leadership; yet many firms choose instead to allow the CEO to serve as board chairperson (CEO duality). This study examines the differential financial implications of these choices for 141 corporations over a 6‐year time period. Results indicate significant differences in performance between the two groups along a number of performance measures; more specifically, firms opting for independent leadership consistently outperformed those relying upon CEO duality.
Mergers, acquisitions, and the pruning of managerial deadwood
Authors: Walsh James P. , Ellwood John W.
Published: May 2007

This research investigates the role that mergers and acquisitions may play in the disciplining of entrenched and inefficient managers. The relationship between a company's performance history and its subsequent top management turnover is assessed for a sample of target companies, their parents, and a control group of companies not involved in merger and acquisition activity. The results reveal that target company top management turnover is higher than ‘normal’ in the 2 years immediately following a merger or acquisition, but there is no relationship between previous target company performance and its subsequent top management turnover. Further analyses indicate that first‐year target company turnover rates are associated with a history of relatively poor parent company performance, while second‐year turnover rates are associated with a history of relatively good parent company performance.
An empirical investigation of strategic investment decision models
Authors: Keats Barbara W.
Published: May 2007

Numerous authors have argued for the need to study the process of strategic decision making. In the present study a judgement capturing methodology is employed, to identify the specific structures of decision models and simplification heuristics in a series of strategic investment decisions. Implications of the results and suggestions for future research are discussed.
The strategy‐shareholder value relationship: Testing temporal stability across market cycles
Authors: Lubatkin Michael , Chatterjee Sayan
Published: May 2007

This study examines the stability of the relationship between diversification and shareholder value across contiguous time periods, organized so as to highlight three distinct market cycles. By defining value as a two‐dimensional construct, separating the concurrent economic phenomena of cycle and trend, and controlling for other factors that influence risk and return, this study finds that the best way to protect shareholder value against economic downturns is to diversify in a manner such that ‘all of one's eggs are in similar baskets’.
Capital market evaluation of M‐form implementation and diversification strategy
Authors: Hoskisson Robert E. , Harrison Jeffrey S. , Dubofsky David A.
Published: May 2007

Firm announcements of adoption of the multidivisional (M‐form) structure are evaluated using stock market data and event methodology. Results indicate that investors positively value M‐form adoption. Furthermore, some support is found for the hypothesis that firm diversification strategy (related versus unrelated) is contingently related to investors' valuation of M‐form implementation.
Interpreting and responding to strategic issues: The impact of national culture
Authors: Schneider Susan C. , De Meyer Arnoud
Published: May 2007

Perceptions of environmental uncertainty and organizational control influence strategic behavior. As national culture influences these perceptions we expect to find cultural differences in interpretation and response to strategic issues. Given a case describing an issue concerning deregulation of the U.S. banking industry, managers completed questionnaires rating interpretations and responses to that issue. National culture was found to influence interpretation and responses. In particular, Latin European managers when compared with other managers were more likely to interpret the issue as a crisis and as a threat. Latin Europeans were also more likely to recommend proactive behavior. This study indicates that different cultures are likely to interpret and respond to the same strategic issue in different ways. These differences may help to explain and predict different responses of European countries to ‘1992’.
The influence of ownership on performance: An empirical study
Authors: Oswald Sharon L. , Jahera John S.
Published: May 2007

This research examines the relationship between ownership structure and financial performance in the context of the agency theory. It improves upon previous research by presenting an improved risk‐adjusted performance measure, by using a larger sample size than prior work and also by controlling for firm size differences. The results suggest that ownership is significantly related to firm financial performance even after controlling for size.
Power plays: Regulation, diversification, and backward integration in the electric utility industry
Authors: Russo Michael V.
Published: May 2007

This paper explores how regulatory oversight influences strategic management. Predictions of the extent to which a firm diversifies and integrates upstream based on transaction‐cost economics are developed and then tested among 49 American electric utilities from 1974 through 1986, a period that witnessed increasingly hostile regulatory relations. The results confirm the influence of regulation on both diversification and backward integration, supporting the transaction‐cost view of these phenomena. The implications of these findings for the study of interorganizational relations, the concept of implicit contracting as a governance mechanism, and the pursuit of longitudinal theory‐building are discussed.
Calls on high‐technology: Japanese exploration of venture capital investments in the United States
Authors: Hurry Dileep , Miller Adam T. , Bowman E. H.
Published: May 2007

The strategic logic of Japanese high‐technology venture capital investment reveals the existence of an implicit call option, or ‘shadow option’, on new technology. This option is exercised by further investment in product development, manufacturing and distribution. The process is described with reference to a comparative study of Japanese and U.S. venture capital firms. Similarities and differences between the two groups are reported, and a conceptual model of Japanese option strategy is formulated. The implications for our understanding of Japanese strategy and for strategic management theory are discussed.
Bureaucracy, economic regulation, and the incentive limits of the firm
Authors: Russo Michael V.
Published: May 2007

This paper uses a transactions cost perspective to examine the development of organizational tendencies that plague the governance of unregulated subsidiaries by regulated parent companies. By focussing on what Williamson (1985) calls the ‘incentive limits’ of firms, conditions that should exacerbate the problems facing these firms as they diversify are identified. Empirical testing of hypotheses drawn from this discussion is conducted using a sample of nonutility, nonregulated subsidiaries of 54 electric utilities. The analysis, using both linear regression and event history methods, confirms the connection between the characteristics of the regulated parent company and subsidiary performance. The paper concludes with a discussion of how further research might extend the state of knowledge on the topic of the economic losses of bureaucracy.
The strategic analysis of intangible resources
Authors: Hall Richard
Published: May 2007

Sustainable competitive advantage results from the possession of relevant capability differentials. The feedstock of these capability differentials is intangible resources which range from patents and licenses, to reputation and know‐how. A framework of intangible resources has been produced which formed the basis for a national survey of chief executives in the U.K. Some of the more significant findings of the survey were that: employee know‐how and reputation are perceived as the resources which make the most important contribution to business success; and that for most companies operations is the most important area of employee know how. This article argues, by means of both theoretical reasoning and empirical evidence, that the analysis of intangible resources should play a major role in the strategic management process.
The influence of secondary production on industry definition in the extended vertical market model
Authors: Stiles Curt H.
Published: May 2007

Secondary production is defined and its role in the estimation of an extended vertical market model b examined. Two impacts on the subject industry are identified, called primary product dominance and primary product focus. A simultaneous equations model consisting of a profit equation and two secondary production equations is estimated using data from the interindustry transactions accounts. The profit equation captures the impact on industry profit of secondary production and of extended market structure. The dominance equation captures the relationship between secondary production and industry profit and scale of production. The focus equation captures the relationship between secondary production and industry profit and excess capacity. The model is estimated for all industries, and the common specification is then applied to industries grouped by type.
Business unit relatedness and performance: A look at the pulp and paper industry
Authors: Davis Peter S. , Robinson Richard B. , Pearce John A. , Park Seung Ho
Published: May 2007

Discussions of relatedness in the strategy literature concentrate on linkages among business units in terms of key business functions such as marketing and production. While much is known about relatedness from the standpoint of corporate diversification, evidence about the relationship between relatedness and performance at the business unit level has been notably lacking. To further our understanding of the benefits and costs of relatedness, this study examined the perspectives of business unit managers to assess: (1) how the relationship between the two primary types of relatedness–production and marketing–are emphasized at the business unit level, and (2) how these types of relatedness affect business unit performance.
Structure and process of diversification, compensation strategy, and firm performance
Authors: Gomez‐Mejia Luis R.
Published: May 2007

This study tests six hypotheses on the extent to which a match between compensation and diversification strategies affects firm performance. Using both archival and survey data, results generally support the notion that a firm's compensation strategies make a greater contribution to firm performance if these are attuned to extent and process of corporate diversification. The paper concludes with a set of recommendations for future research on compensation‐diversification strategy relations and their interactive effect on firm performance.
Getting there in a global industry: Impacts on performance of changing international presence
Authors: Mitchell Will , Shaver J. Myles , Yeung Bernard
Published: May 2007

We investigate the effects of increasing and decreasing international presence on market share and survival in the American medical diagnostic imaging equipment industry. Imaging equipment manufacturers possessing international medical operations tend to achieve superior market share and longer survival, but we find that attempting to become an international medical player is risky. Both increasing and decreasing international presence have negative associations with survival, while decreased internationalization is associated with decreased American market share. Brief case studies suggest that the ingredients for success in internationalization may include preparedness, focused management, and learning from international experience.
Industry variety and performance
Authors: Miles Grant , Snow Charles C. , Sharfman Mark P.
Published: May 2007

This study advances a nascent perspective in the strategic management literature: a focus on the beneficial effects of competition among firms in an industry. Such a perspective supplements the traditional view of competition as firm rivalry. The overall purpose of the study is to provide a theoretical foundation for the study of the mutual gains associated with industry competition. Because of its importance to several different organizational theories, the concept of variety is examined as a potential source of interfirm benefits. The influence of variety is observed in 12 industries, four each from the growth, mature, and decline stages of the life cycle. In each life‐cycle stage, two of the industries have substantial amounts of foreign competition while the other two do not. The study's results support two broad conclusions. First, industry variety and performance are positively related, suggesting that interfirm benefits are most feasible in industries characterized by diversity among firms' competitive strategies. Second, as industries move through the life cycle, variety decreases, implying that both strategists and policymakers need to consider the impact on aggregate variety when evaluating prescriptions for the revitalization of declining industries. Implications of these findings are derived for researchers, practitioners, and policymakers.
A sociological view on why firms differ
Authors: Carroll Glenn R.
Published: May 2007

Much theory and research that apparently seeks to explain why firms differ actually addresses the question of why successful firms differ. This article explains why the two questions are different and explores some of the implications of this difference for the field of strategic management. A wide variety of organizational and economic theories are reviewed in this context, including contingency theory, resource dependence theory, process models, dispositional models, transaction cost economics, organizational ecology and institutional theory. Further discussion considers why heterogeneity persists at the firm level when it becomes apparent that only certain types of firms will succeed.
Strategic redirection in large management buyouts: The evidence from post‐buyout restructuring activity
Authors: Seth Anju , Easterwood John
Published: May 2007

This study examines the nature of post‐transaction restructuring activities for 32 large U.S. corporations that underwent management buyouts between 1983–89. This study (i) provides evidence on the extent and type of divestment and acquisition activities under private ownership; (ii) documents the outcomes associated with MBOs and the longevity of the buyout organization; and (iii) investigates the claim that buyouts are primarily mechanisms for breaking up public corporations and selling the pieces to related acquirers. The balance of the evidence indicates that restoring strategic focus is an essential function of the buyout for these large firms. However, the evidence also indicates that the buyout organization does continue to operate significant parts of the prebuyout firm. By far the majority of firms continue to meet their debt obligations satisfactorily during the buyout phase. Finally, the evidence indicates that asset sales to related acquirers derive more from efficiency considerations than market power.
Multinationals' diversification and the risk‐return trade‐off
Authors: Kim W. Chan , Hwang Peter , Burgers Willem P.
Published: May 2007

This paper advances a theoretical rationale to explain Bowman's paradox (1980) that firms with high returns can have low risk. Here we draw on the rich body of international management research and argue that global market diversification, which provides firms with three distinct options and opportunities over domestic firms, can explain the high return‐low risk profile. We also argue that no strong theoretical rationale exists in support of either related or unrelated product diversification generating such a favorable risk‐return profile. By integrating both the product and the global market dimension of diversification into our analyses and by controlling for the industry effect, this paper sheds new light on the relationship between corporate diversification and the risk‐return tradeoff. The results of this research, which are based on the diversification experiences of 125 multinationals, reveal the strikingly important, though so far overlooked, role that global market diversification plays in the joint management of corporate risk and return. Global market diversification here reflects both the multiplicity of international market areas in which a firm operates and the distribution pattern of a firm's industries across these multiple areas.
Environmental uncertainty and environmental scanning activities of nigerian manufacturing executives: A comparative analysis
Authors: Sawyerr Olukemi O.
Published: May 2007

This study investigated the relationship between perception of environmental uncertainty (PEU) and environmental scanning behavior of Chief Executive Officers of 47 manufacturing firms in Nigeria. The results indicated that perceived uncertainty in the environment was significantly higher for the task environment sectors than for the remote environment sectors; and as perceived uncertainty increased in a sector of the environment, scanning frequency and scanning interests also increased. The results were compared with those of prior research in the area of environmental scanning. The results show both the economic and political legal sectors of the environment to be more salient for Nigerian manufacturing executives than for their American counterparts.
Critical factors affecting the planning and implementation of major projects
Authors: Bryson John M. , Bromiley Philip
Published: May 2007

This exploratory study reports the results of a quantitative cross‐sectional analysis of 68 case descriptions of major projects. Variables describing the context of the projects, project planning and implementation processes, and project outcomes were coded using information contained in the case descriptions. Factor analysis was used to identify major factors associated with context, process and outcomes. The influences of context on process, and context and process on outcomes were estimated using regression. The results indicate that a number of contextual variables strongly influence aspects of the project planning and implementation process, and then indirectly influence project outcomes through the planning and implementation process. In addition, both process and contextual variables affect outcomes directly. Several conclusions of a theoretical, methodological and practical nature are drawn.
A comment on Gilbert's the twilight of corporate strategy'
Authors: Bauerschmidt Alan
Published: May 2007

This communication offers comment on Gilbert's critique of the strategic management paradigm for failing to recognize the role and justice of the individual purpose in business organizations.
Measuring strategy coherence through patterns of strategic choices
Authors: Nath Deepika , Sudharshan D.
Published: May 2007

Strategies at different levels need to be coherent to ensure competitive advantage (Hofer and Schendel, 1978). Strategy coherence is the consistency of strategic choices across business and functional levels of strategy. In this paper we focus on strategy coherence. Using patterns of strategy, we develop a measure of the extent of strategy coherence. The relationship between coherence and performance is used to validate the measure. We illustrate the application of the measurement and validation process, in the context of acute care hospitals. The results indicate that our measure of coherence is monotonically related to performance. We also find performance differences between more and less coherent hospitals on the industry specific performance indicator of occupancy. Implications for theory and practice are highlighted.
Stage of the organizational life cycle and competition as mediators of problem perception for small businesses
Authors: Dodge H. Robert , Fullerton Sam , Robbins John E.
Published: May 2007

An empirical study based upon a sample of 645 small businesses assesses the relationship that life cycle stage and level of competition exhibit with the problems perceived to constrain small business strategic planning. Problems have been identified as either internal (cash flow) or external (competition); they have further been classified as either situational or core problems. Among the most prevalent problems reported by decision makers are customer contact, market knowledge, marketing planning, location, and adequacy of capital. A total of 16 problem areas were identified. Traditional wisdom offers the scenario where problems faced will vary as the organization progresses through the life cycle. Much of this research refutes conventional wisdom in that level of competition was determined to have more of an impact on problem perception.
Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques
Authors: Mohr Jakki , Spekman Robert
Published: May 2007

The formation of partnerships between firms is becoming an increasingly common way for firms to find and maintain competitive advantage. While the antecedents of partnership formation and the characteristics of the resulting cooperative working relationship have been explored in the literature, an understanding of characteristics associated with partnership success is lacking. Such an understanding is important in reconciling the prescriptions to form partnerships with the reality that a majority of such partnerships do not succeed. We hypothesize that partnership attributes, communication behavior, and conflict resolution techniques are related to indicators of partnership success (satisfaction and sales volume in the relationship). The hypotheses are tested with vertical partnerships between manufacturers and dealers. Results indicate that the primary characteristics of partnership success are: partnership attributes of commitment, coordination, and trust; communication quality and participation; and the conflict resolution technique of joint problem solving. The findings offer insight into how to better manage these relationships to ensure success.
Longevity and the life‐cycle of management buy‐outs
Authors: Wright Mike , Robbie Ken , Thompson Steve , Starkey Ken
Published: May 2007

The longevity debate about buy‐outs has hitherto been restricted. By focusing on large highly leveraged transactions, existing research has taken only a partial view of how long buy‐outs last and the factors influencing longevity. This paper develops and tests hypotheses concerning the influences on buy‐out longevity across the whole spectrum of management buy‐out applications. Both quantitative and case study evidence from the U. K. is presented. A heterogeneity view of buy‐outs is supported. Tests using quantitative data show that earlier exit is associated with larger buy‐outs, and buy‐outs arising on privatization from the public sector and from non‐U. K. parents. Case study evidence principally supports hypotheses that earlier exit is associated with financing institutions being in a relatively stronger position than management and with more rapidly changing market conditions for the firm.
How strategy‐making processes can make a difference
Authors: Hart Stuart , Banbury Catherine
Published: May 2007

Strategy‐making is usually portrayed in dichotomous terms: rational vs. incremental, or formulation vs. implementation. It may, however, be more valid to think of organizations as entities capable of developing resources and skills in multiple strategy‐making process modes. This paper first develops measures to identify firms with different levels and types of strategy‐making process ‘capability’ then examines empirically their relationships to five dimensions of perceived performance, using data collected from a sample of 285 top managers. Results indicate that firms with high process capability–the simultaneous use of multiple strategy‐making process modes–outperfom single‐mode or less process‐capable organizations.
The effect of strategic technology alliances on company performance
Authors: Hagedoorn John , Schakenraad Jos
Published: May 2007

Strategic technology partnering between firms has become a growing subject of interest to both companies experimenting with this mode of economic organization and researchers from a wide variety of academic disciplines. In this study an effort is made to measure the effect of strategic technology partnering on companies engaged in such joint efforts. A study of the relevant literature on interfirm cooperation generates some basic understanding of this phenomenon, after which the empirical analysis is expanded with linear structural modeling of a number of relevant explanatory variables setting strategic partnering in a more complex environment.
Wholly‐owned vs. collaborative ventures for diversifying financial services
Authors: Ingham Hilary , Thompson Steve
Published: May 2007

Recent empirical work has supported the Penrose‐Teece view that firms diversify to exploit fully specific assets or capabilities. Where transactions costs permit, these economies of scope may be realized via input supply contracts among producers. However, asset specificities frequently create transactions costs which discourage market contracting and leave firms with a choice between collaborative ventures and wholly‐owned new entry. This research uses the natural experiment of financial services deregulation to explore the collaborative‐own entry choice for 292 new entries in 13 financial product markets. The results generally support our maintained hypotheses that specificity encourages full ownership while collaboration is used to ease a resource constraint.
Interfirm cooperation and startup innovation in the biotechnology industry
Authors: Shan Weijan , Walker Gordon , Kogut Bruce
Published: May 2007

This paper examines the association between interfirm cooperation and the innovation output of startup firms in the biotechnology industry. A reciprocal association is hypothesized. The results, however, show only that cooperation affects innovation. Several control variables are related to cooperation and innovation, especially the startup's position in the cooperative network.
Location, governance, and strategic determinants of japanese manufacturing investment in the united states
Authors: Hennart Jean‐Francois , Park Young‐Ryeol
Published: May 2007

A firm's decision to manufacture abroad depends on location, governance, and strategic factors. Governance factors are firm‐specific. In spite of this, most empirical studies of foreign direct investment (FDI) have been conducted at the industry level (making it impossible to look at firm‐specific determinants), and only a handful have considered governance, location, and strategic factors simultaneously. This paper is the first large sample study of the determinants of foreign direct investment at the product and firm‐level. It examines the impact of location and governance factors, and of four types of strategic interactions, on a Japanese firm's propensity to manufacture in the U.S. The results support the view that foreign direct investment is explained by location, governance, and strategic variables. Economies of scale and trade barriers encourage Japanese FDI in the U.S. The larger a Japanese firm's R & D expenditures, the greater the probability it will manufacture in the U.S., but this is not the case for advertising expenditures. Some strategic factors are also important: Japanese firms with medium domestic market shares have the highest propensity to invest in the U.S. There is evidence of follow‐the‐leader behavior between firms of rival enterprise groups, but none of ‘exchange‐of‐threat’ between American and Japanese firms. Japanese investors are also attracted by concentrated and high‐growth U.S. industries.
Ceos' cognitive maps and the scope of the organization
Authors: Calori Roland , Johnson Gerry , Sarnin Philippe
Published: May 2007

In this paper, CEOs are considered as ‘cognizers’ charged with integrating views in the top management team; a role which should require high cognitive complexity especially in diversified multinational corporations. A methodology for studying top managers' cognitive complexity is described and then applied to a sample of 26 CEOs. The CEOs' cognitive maps of the structure and of the dynamics of their industry are analyzed in terms of their degree of complexity, in relation to the breadth of the business portfolio of the firm, its geographic scope and the links the firm has with foreign parents. The results of this exploratory test generally confirm the principle of requisite cognitive complexity, and reveal a new set of more precise hypotheses linking particular dimensions of the scope of the firm with particular dimensions of CEOs' cognitive complexity.
High and low levels of organizational adaptation: An empirical analysis of strategy, structure, and performance
Authors: Jennings Daniel F. , Seaman Samuel L.
Published: May 2007

In this study, we have examined high and low levels of organizational adaptation to environmental change by analyzing strategy, structure, and performance relationships. Our results indicate that organizations with particular levels of adaptation tend to have specific strategy‐structure arrangements which yield certain performance results. Organizations with an optimum strategy‐structure match tend to have higher performances. Implications for future research in organizational adaptation are discussed.
Differentiated fit and shared values: Alternatives for managing headquarters‐subsidiary relations
Authors: Nohria Nitin , Ghoshal Sumantra
Published: May 2007

This paper elaborates and provides empirical support for two different approaches to managing the nexus of headquarters subsidiary relations in a multinational corporation (MNC). The first approach is that of Differentiated Fit. We show that the extent to which an MNC differentiates the formal structure of its headquarters subsidiary relations to fit the contexts of its various subsidiaries, the better the performance of the MNC as a whole. The second approach is that of Shared Values. We show that a high degree of shared values among the headquarters and subsidiaries is another approach to governing headquarterssubsidiary relation that enhances the performance of the MNC. We further maintain that differentiated fit and shared values, while being alternatives, are not mutually exclusive ways of effectively managing headquarters subsidiary relations. Indeed, MNCs that can simultaneously implement these two approaches have the best relative performance.
Total quality management as competitive advantage: A review and empirical study
Authors: Powell Thomas C.
Published: May 2007

Total Quality Management (TQM) has become, according to one source, ‘as pervasive a part of business thinking as quarterly financial results,’ and yet TQM's role as a strategic resource remains virtually unexamined in strategic management research. Drawing on the resource approach and other theoretical perspectives, this article examines TQM as a potential source of sustainable competitive advantage, reviews existing empirical evidence, and reports findings from a new empirical study of TQM's performance consequences. The findings suggest that most features generally associated with TQM—such as quality training, process improvement, and benchmarking—do not generally produce advantage, but that certain tacit, behavioral, imperfectly imitable features—such as open culture, employee empowerment, and executive commitment—can produce advantage. The author concludes that these tacit resources, and not TQM tools and techniques, drive TQM success, and that organizations that acquire them can outperform competitors with or without the accompanying TQM ideology.
Assessing generic strategies: An empirical investigation of two competing typologies in discrete manufacturing industries
Authors: Kotha Suresh , Vadlamani Bhatt L.
Published: May 2007

In spite of the extensive empirical evidence supporting Porter's (1980) typology of generic strategies, many researchers have criticized it for its conceptual limitations. To address these criticisms, Mintzberg (1988) proposed an alternative typology of generic strategies. Our findings, based on a survey of executives in manufacturing firms, provide support for Mintzberg's typology and fail to support Porter's typology. Given the findings, we call for further empirical validation of competing typologies to revitalize research on generic strategies.
Diversification, restructuring and economic performance
Authors: Markides Constantinos C.
Published: May 2007

During the 198Os, many conglomerates and other diversified firms reduced their diversification by refocusing on their core businesses. This paper provides an economic explanation for this phenomenon and empirically tests the hypotheses that emerge from the analysis. It is shown that refocusing is associated ex post with Profitability improvements.
Globalization of an ethnocentric firm: An evolutionary perspective
Authors: Malnight Thomas W.
Published: May 2007

This paper investigates the globalization process at one traditionally ethnocentric firm. Whereas there has been substantial research on how multinational corporations (MNCs) structure and manage worldwide activities, little research has investigated how MNCs move toward proposed integrated network structures. The paper develops an evolutionary perspective of this process at traditionally ethnocentric firms, suggesting that it is driven by a shifting mix of strategic objectives over time, each of which differs in its impact on various functions. The paper suggests that globalization occurs at the level of the function, rather than the firm, and highlights important differences in the timing, sequence, and objectives of the process across functions. It also describes the importance of development patterns across functions, as changes in one function create opportunities and requirements for changes in others. Finally, the paper develops a framework of the process that can be tested at subsequent sites.
The predictive validity of the Karnani and Wernerfelt model of multipoint competition
Authors: Smith Faye I. , Wilson Rick L.
Published: May 2007

This study is the first to examine the predictive validity of the Karnani and Wernerfelt theoretical model. We developed measures for four variables, and explored whether they successfully operationalized the dimensions in the theoretical model. The model proposed four response strategies, and six were observed in the data. Incumbent firms most frequently did not respond at all to another firm's entry, even though a counterattack response was predicted by the model. Since the independent variables did not predict responses as proposed by the model, exploratory analyses identified “best” predictors of responses.
The resource‐based view of the firm: Ten years after
Authors: Wernerfelt Birger
Published: May 2007

The article reflects on the diffusion of the ‘resource‐based view of the firm’ into academic and practitioner thought. The contributions of many people are noted. In closing, I offer some speculations about the future use of these ideas.
The effects of ownership structure on conditions at the top: The case of CEO pay raises
Authors: Hambrick Donald C. , Finkelstein Sydney
Published: May 2007

We examine how ownership configuration affects the determination of CEO pay raises. Based on a sample of 188 firms over a 5‐year period, it was found that pay raises were based on distinctly different factors, depending on the ownership profile of the firm. In management‐controlled firms—where no single major owner exists—results suggest an overarching pay philosophy: maximize CEO pay, subject to demonstration of face legitimacy of that pay. In externally‐controlled firms—where a major (nonmanager) owner exists—results suggest a very different philosophy: minimize CEO pay, subject to the ability to attract/retain a satisfactory CEO.
Strategic action generation: A comparison of emphasis placed on generic competitive methods by U.S. And Japanese managers
Authors: Kotha Suresh , Dunbar Roger L. M. , Bird Allan
Published: May 2007

The paper identifies similarities and differences in the emphases and patterns that U.S. and Japanese managers attribute to a set of 22 generic competitive methods. It highlights the different ways that Japanese and American managers combine these methods to form general business strategies. Using factor analyses and smallest space analyses, the study shows differences in business strategy patterns between managers in Japan and the U.S. Such differences reflect the organizing principles underlying the strategy approaches in U.S. and Japanese firms. The organizing principle underlying U.S. responses is the desire to find way to differentiate a firm from its competitors. In contrast, the organizing principle underlying Japanese responses is a desire to establish a comprehensive, stable and defensible position. The paper discusses the implications of these results for strategic management and suggests directions for future U.S. and Japanese comparative strategy research.
Defining and developing competence: A strategic process paradigm
Authors: McGrath Rita Gunther , Macmillan Ian C. , Venkataraman S.
Published: May 2007

In this paper, competence is defined in operational terms as the degree to which the firm or its subunits can reliably meet or exceed objectives. Two antecedents to competence (and thus competitive advantage) are then developed and defined. These are the ‘comprehension’ of the management team working on developing competence and the ‘deftness’ of their task execution. Empirical results from a study of 160 new initiatives in 40 organizations from 16 countries suggest that: (1) it is feasible to operationalize and measure these constructs; (2) comprehension and deftness are important correlates of an organization's degree of competence as defined; and (3) a process‐centered paradigm for understanding competence development shows promise.
The seeking of strategy where it is not: Towards a theory of strategy absence
Authors: Inkpen Andrew , Choudhury Nandan
Published: May 2007

Strategy researchers are preoccupied with the study of existing strategy systems and processes, with the result that they do not question situations where a strategy is expected to exist but does not. The investigation of such voids is likely to enhance greatly the understanding of the nature of organizational strategy, both in its presence and in its absence. The perspective offered in this paper is that strategy absence is a legitimate phenomenon of interest to business management scholars.
A comment on brockner et al. (1993)
Authors: Daniels Kevin
Published: May 2007

In a paper concerned with the effects of layoffs upon survivors, Brockner et al. (1993) suggest that managers may make survivors with low self esteem worried about future layoffs to increase work motivation. This conclusion may be suspect for a number of reasons: (a) only a small percentage of the variance was accounted for by the interaction in a field study; (b) measurements of self‐esteem, worry and motivation were taken either concurrently or very close to each other in the two studies reported; and (c) potential health related consequences may eventually lead to decreased work motivation.