Journal of Business Strategy

Dan R. Dalton; Catherine M. Dalton

2006 Journal of Business Strategy

doi: 10.1108/02756660610640119

Purpose – Looks at the decision by some public companies to go dark and avoid regulatory requirements. Findings – To go dark, companies must meet only minimal guidelines. It may be a tempting option in light of Sarbanes Oxley and other regulations and it can save a company the time and money for reporting. But going dark may be a very risky strategy. Practical implications – Provides executives with information on important factors to consider when considering going dark. Original/value – Of particular value to CEOs and other board members

Patrick Marren

2006 Journal of Business Strategy

doi: 10.1108/02756660610640128

Purpose – To provide the author's opinions about key issues in strategy and the future to the readership, in a humorous way. Design/methodology/approach – Opinion column. Findings – Review of three recent books relevant to critical business issues Research limitations/implications – Speculative, and based not on rigorous research but on the author's experience of planning engagements across a wide variety of private and public enterprises. Practical implications – Alerts readers to three good books. Originality/value – Expresses opinions that the author believes have not been expressed in quite this way before.

R. Duane Ireland; Donald F. Kuratko; Michael H. Morris

2006 Journal of Business Strategy

doi: 10.1108/02756660610640137

Purpose – Identifies issues to consider when designing a corporate entrepreneurship strategy, discuss the triggers of corporate entrepreneurship, and describe an internal work environment that supports corporate entrepreneurship. Design/methodology/approach – Based on the extant literature, case studies, and the authors' experiences with a diverse mix of companies, the nature and importance of a corporate entrepreneurship strategy is described, together with insights into the internal and external factors that facilitate corporate entrepreneurship and a strategy used to support it. Findings – The ability to foster high levels of entrepreneurial intensity and formulate effective corporate entrepreneurship strategy is associated with key elements of the organizational climate. Four major climate variables are assessed. Conclusions are drawn regarding the value an entrepreneurial mindset creates when used in established firms. Research implications – Raises a number of questions regarding the role of strategic versus non‐strategic approaches to encouraging entrepreneurship and innovation in larger, established companies, as well as the relative importance of differing triggering events and various climate variables in influencing a successful corporate entrepreneurship strategy. Practical implications – Demonstrates to managers how to strategically approach the concept of entrepreneurship within a larger organization, including how to design an internal work environment that is conducive to encouraging employees to act on their innate entrepreneurial potential. Originality/value – Fulfills a missing gap in terms of how established firms can make entrepreneurship a core element of their approaches to strategic management and offers practical insights into some of the more vital factors that contribute to sustainable levels of entrepreneurship in established firms.

Nigel F. Piercy; Nikala Lane

2006 Journal of Business Strategy

doi: 10.1108/02756660610640146

Purpose – To provide a critical perspective on the robustness of strategic account management (sometimes called key account management) strategies as an approach to managing relationships with large and very large customers. Design/methodology/approach – The paper is based on exploratory interviews and management workshop discussions and the observation of the operation of strategic account management approaches in practice, and is illustrated with cases drawn from secondary sources. Findings – Suggests that SAM may amount to investment in strategic weakness that enhances dependencies and limits the scope for superior supplier performance; a customer portfolio analysis of all accounts identifies where the best prospects for long‐term profit exist; many strategic account relationships are based on exaggerated estimates of customer relationship requirements and customer loyalty. We conclude that strategy analysts should be concerned with developing new business models that avoid the trap of dependence on powerful, major customers, rather than pursuing business strategies like SAM that reinforce dependencies. Research limitations/implications – There are a number of research opportunities in examining the long‐term impact of formalizing strategic account management systems in supplier organizations. Practical implications – We aim to provide managers and analysts with a different perspective on strategic account management strategy that considers the potential weaknesses and vulnerabilities created through the strategy, to be compared to the attractions of this strategy. Originality/value – Our goal is to add to understanding of strategic relationships between buyers and sellers. We do not believe that the downside to strategic account management strategy has received adequate recognition in existing treatments of the topic.

Christoph Senn

2006 Journal of Business Strategy

doi: 10.1108/02756660610640155

Purpose – Many companies claim to have established senior executive relationship programs, but few have linked their account plans to senior executive actions, and consequently, only a few can report successful growth results. This article provides a systematic approach to create a replicable executive engagement process. Design/methodology/approach – During 1997‐2005, five research consortiums on global account management (GAM), involving more than 30 companies around the world, were conducted. The objectives were to explore current successful practices and future competencies in GAM. In addition to the empirical investigation of the effects of successful GAM implementation, several case studies were developed. Findings – The case of Siemens Information & Communication illustrates the benefits on both the supplier and the customer sides when companies make a systematic effort to link their account plans to senior executive actions. In the case of Siemens, the growth rate of the systematically “managed” accounts outperformed that of “non‐managed” accounts by a factor of two. Practical implications – The results from the research in general and the case in particular suggest that executive engagement in customer affairs represents a strategic choice rather than an agenda filler. By following the described process, companies can create their own growth agendas. Originality/value – This paper offers middle and senior managers a proven and inexpensive process for translating account plans into real growth. Companies that commit to creating such an executive engagement process can expect to benefit from hard‐to‐copy intimacy with their customers, which in turn results in new, sustainable sources of competitive advantage.

Usha C.V. Haley; George T. Haley

2006 Journal of Business Strategy

doi: 10.1108/02756660610640164

Purpose – Despite close to two decades of foreign direct investment in China, and the country's enormous market potential, most US and European multinational corporations have never made a profit in that country. The distribution of profits among multinationals also seems highly skewed. The latest survey on profitability showed that five US companies accounted for one‐third of equity profits among US‐based multinationals in China. This research proposes explanations for why multinationals fail in China and strategic solutions for profitable operations. Design/methodology/approach – Through in‐depth interviews with 29 CEOs and directors of major, profitable US and European multinationals, overseas Chinese companies and People's Republic of China companies, this paper proposes a model of strategic convergence for successful operations in China. The first part discusses cultural and cognitive differences between Westerners and Chinese that affect the strategies they choose. The second part proposes a strategic model of convergence, fusing the best of both Western and Chinese business practices, for strategic success in China. Findings – Profitable foreign multinationals in China appeared to modify their management practices on eight dimensions, often adopting traditional Chinese methods of strategic planning and evaluations of effectiveness, as well as relations with key stakeholders, especially the government. Yet, these multinationals continued to retain their Western norms and values in business dealings. Conversely, profitable Chinese companies that competed with these multinationals also modified their management practices in line with Western norms Originality/value – The study has implications for the management of foreign subsidiaries in China as well as the successful management of Chinese foreign direct investment in the US and Europe.

Obasi Akan; Richard S. Allen; Marilyn M. Helms; Samuel A. Spralls III

2006 Journal of Business Strategy

doi: 10.1108/02756660610640173

Purpose – To identify and cite examples of critical tactics for implementing Porter's generic strategies. Design/methodology/approach – A survey of over 200 organizations was conducted to determine their relative use of tactics and organizational performance. Factor analysis and regression analyses were used to identify tactics that were strongly related to organizational performance. Examples of implementation are presented to illustrate use of the critical tactics. Findings – A list of ten tactics were identified as significantly related with the generic strategies and higher levels of organizational performance. Research limitations/implications – As is typical with survey research, the convenience sample of organizations used in this survey may or may not be representative of all organizations. Also, when using regression analysis it is important to keep in mind that correlation does not necessarily mean causation. Therefore we are not certain that the significant tactics caused the higher levels of organizational performance. Practical implications – Managers will gain the knowledge of how to better tailor their strategy implementation to more effectively implement whatever generic strategy they attempt to use. Managers should pay particular attention to the critical tactics associated with their generic strategy. Originality/value – This article is a practitioner‐oriented translation of an academic research study. The value of the current article is to share our findings with a more practitioner‐oriented community and present the implications of our findings to managers and decision‐makers in a less technical format.

John Hogan; Tom Lucke

2006 Journal of Business Strategy

doi: 10.1108/02756660610640182

Purpose – The purpose of this article is to reveal several issues surrounding old style twentieth century pricing traps that need to be overcome in the twenty‐firt century global economy and expanding internet marketplace. Design/methodology/approach – The information on which this article is based derives from the authors' experience and expertise advising and supporting companies of all sizes over many years. There is further evidence from surveys done by a professional association. Findings – Pricing is vital component to revenue and profit success and needs to be a functional lever for every company. Practical implications – Whether introducing new products/services or upgrades to existing products/services, better revenue/profit margins can be accomplished by establishing a viable and value‐based pricing strategy. Original/value – Pricing strategy is an essential element for doing business successfully in the global marketplace.