MORE ON HIGH-TECH STRATEGY

1. MORE ON HIGH-TECH STRATEGY SPRING 2007 DR. MARK FRUIN

2. BASIC LAW OF STRATEGY • FIRMS MUST ADAPT TO THE ENVIRON-MENT/S IN WHICH THEY OPERATE OR FAIL • HENCE • ENVIRONMENTS-->ORGANIZATIONS--> POLICIES & STRATEGIES-->ORGANIZATIONAL MEMBERS-->INDIVIDUALS • NOT • INDIVIDUALS-->ORGANIZATIONAL MEMBERS--> POLICIES & STRATEGIES-->ENVIRONMENTS

3. EXCEPTIONS TO THE RULE • HOWEVER, TWO EXCEPTIONS TO THE RULE • NOT EXACTLY EXCEPTIONS BUT TIMES WHEN MUTATIONS OR RADICAL INNOVATIONS MAY TAKE HOLD & DIFFUSE/PROPAGATE • GROWTH PHASE OF INDUSTRY LIFE CYCLE IN LEADING EDGE PLACES • CATCH-UP (STILL THE GROWTH PHASE) OF EMERGING ECONOMIES COPYING LEADING EDGE PLACES

4. MUTATIONS BUT NOT RADICAL INNOVATIONS • CAN OCCUR ANYTIME • BUT THEIR LIKELY IMPACT ON THE ENVIRONMENT DIMINISHES AS ONE MOVES TO MATURE PHASE OF INDUSTRY LIFE CYCLE • RADICAL INNOVATIONS ONLY OCCUR DURING THE GROWTH PHASE OF ILC • INCREMENTAL & DISCONTINUOUS INNOVATIONS ARE POSSIBLE DURING MATURE PHASE OF INDUSTRY LIFE CYCLE • ARE INCREMENTAL & DISCONTINUOUS INNOVATIONS MUTATIONS?

5. IN ADDITION TO EVOLUTIONARY PRINCIPLE • THERE IS SOMETHING CALLED INSTITUTIONAL THEORY OR THE IRON CAGE OF INSTITUTIONAL ISOMORPHISM • IT’S AN UNCERTAIN WORLD OUT THERE • IT’S RISKY FOR ORGANIZATIONS TO ACT ON THEIR OWN • IT’S A LOT EASIER TO IMITATE THE BETTER PERFORMING ORGANIZATIONS IN THEIR FIELD/STRATEGIC GROUP/ENVIRONMENT