1 / 11

MODES OF CHANGE Bocconi -Duke Seminar in Longitudinal Strategy 12/12/2010 CH Kim Luis Rios

MODES OF CHANGE Bocconi -Duke Seminar in Longitudinal Strategy 12/12/2010 CH Kim Luis Rios. Strategy has a relatively complete theoretical and empirical picture of the modes of strategic change.

caia
Download Presentation

MODES OF CHANGE Bocconi -Duke Seminar in Longitudinal Strategy 12/12/2010 CH Kim Luis Rios

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MODES OF CHANGE Bocconi-Duke Seminar in Longitudinal Strategy 12/12/2010 CH Kim Luis Rios

  2. Strategy has a relatively complete theoretical and empirical picture of the modes of strategic change The field of strategy, by drawing on so many disciplines, has managed to cover essentially all facets of strategic change. But though most of the individual pieces have been well postulated and tested, we still have a long way to go in understanding how they fit together, and how they themselves change over time.

  3. Whether the unit of analysis is the individual, the routine, the firm, or the network, chances are that if an issue is relevant, someone has studied it. Internal Organization (Silverman, Mayer) Knowledge (Kogut & Zander, Ghoshal & Moran, Foss & Eriksen) Capabilities (Penrose, Leonard, Mitchell) RBV(Barney, Wernerfelt, Eisenhardt, Helfat, Peteraf, Teece) IO Economics (Porter, Caves, Gimeno, Cool & Schendel, Rumelt) Institutional Theory (Oliver) Real Options (McGrath & Nerkar, Dixit, Kogut) Networks (Granovetter, Rowley, Beherens & Krackardt) TCE(Williamson, Coase) Firm & Industry Dynamics (Agarwal, Mitchell, Teece, Pisano, Shuen, Cattani, Alcacer) Exploration/exploitation (Rosenkoft & Nerkar, Levinthal) Institutional theory (DiMaggio & Powell, Oliver, Kogut & Zander, Scott) Evolution(Helfat, Nelson & Winter, Klepper& Simons) Executives (Hambrick, Catterjee) Boards (Fama, Westphal& Fredickson) KBV/Learning (Levitt & March, Zollo & Singh Argote, Dosi, Nelson & Winter, Cohen & Levinthal) Individual Firm Environment Boundary

  4. Similarly, there is good coverage and overlap in our understanding of the main business resource types Managerial Financial R&D Manufacture Marketing Business Resources Barney, 1991, 1986 Teece, 1986 Bandiera, Barankay & Rasu, 2007 Chatterjee & Wernerfelt, 1991 Owen, 1997 Villanonga, 2004 Harford, 2005 Nelson & Winter, 1997 Teece, 1986 Dussauge, Hart, and Ramanatsoa, 1992 Hayes & Wheelwright, 1988 Chi, 1994 Anderson & Scmittlein, 1984 Dierickx & Cool, 1989 Henart & Park, 1993 Focused Studies (sample) Broad Studies (sample) Bowman, 1980 C h a t t e r j e e & W e r n e r f e l t , 1 9 9 1 A m I t & S c h o e m a k e r , 1 9 9 3 T e e c e & P i s a n o , 1 9 9 4 Andersen, Denrell, Bettis, 2007

  5. What remains to be elaborated are the relationships between these different modes and how they work as a system Thus, to appropriate the cliché of the blind men, we likely will not gain much by exploring the nether-regions of the elephant.

  6. Basic Framework (Capron and Mitchell, 2009/Levitt and March, 1988) Contract External Sourcing Alliances Evaluation Criteria 1. Is this framework mutually Exclusive? 2. Is this framework Collectively Exhaustive? Acquisition Modes of Strategic Change Learning By Doing Internal Development Learning By Hiring Learning By Observing

  7. Selection between External vs Internal (Capron and Mitchell, 2009/2004) Dimensions to be considered • The attributes of capability • Contractual Hazard (TCE) • Strategic Resource Gap (RBV) • Internal Legitimacy (NIT) • 2. External constraints • External availability • Importation capacity • 3. Firm’s search attributes(Moderating) • Internal reconfiguration • External reconfiguration External Sourcing Modes of Strategic Change Internal Development ☞ Is there another relevant theory or aspect we should incorporate for identifying additional factor?

  8. Dynamics Within External Sourcing (Singh and Mitchell, 2005) Org. Theory Network/ Knowledge TCE Modes of Strategic Change Managerial Costs Control Depth Contract External Sourcing Alliances Acquisition Transaction Costs Flexibility Width ☞ When the benefits outweigh the costs or when the reverse is true?  Many empirical studies are there on these issues.

  9. Modes of Internal Development Internal Development Modes Of Learning Learning by Doing • Learning Curve(BCG) • (Argote/Beckman/Epple, 1990) • - Learning by direct experience • (Levitt and March, 1988) Modes of Strategic Change Learning by Hiring (Hybrid form) • Job Mobility • (Song/Almeida/Wu, 2003) Learning by Observing • Vicarious Learning • (Baundra) • Learning by observation • (Baum/Ingram, 1998)

  10. Dynamics Within Internal Development Beyond Local Search Path-Breaking Exploration Learning by Doing Modes Of Learning Learning by Hiring (Hybrid) Learning by Observing Path- Dependent More Local Exploitation • ☞ Many studies are addressing issues of dynamics within internal development • Exploration vs Exploitation (March 1991)/ Core Competency(Prahalad and Hamel 1990)vs Core Rigidity(Leonard-Barton 1992)/ Absorptive Capacity(Cohen and Levinthal 1990)vs Dynamic Capability(Teece, Pisano, and Shuen, 1997) • Compared to external mode of strategic change, there is a difficulty related with measurement.

  11. In conclusion, though we can think of small, esoteric holes in the literature, it is unlikely that we have overlooked a “magic bullet” mode of change, and we should concentrate on building links between our repertoire of theories, in order to generate new theories of change

More Related