Journal of Business Strategy

Goldstein, James C.

2022 Journal of Business Strategy

doi: 10.1108/jbs-09-2020-0191

The second major step in the development of the balanced scorecard was the introduction of strategy maps. Although much has been written about the benefits of strategy maps, there have been relatively few empirical studies that explore their use in a real-world setting. Additionally, the studies that have been done do not focus on the perspective of middle managers and employees who execute the strategy on a daily basis. This study addresses these gaps through observing the construction of strategy maps in two main business lines of a commercial bank. The participating managers are then asked if they agree that the resulting strategic performance measurement system assist organizations in the three ways most discussed in the literature: translating and operationalizing strategy, communicating the strategy and measuring the strategy. This study also provides some additional insights regarding the construction and use of strategy maps in organizations. The findings provide evidence to management that strategy maps are beneficial and guidance on how these could be implemented. The purpose of this study is to examine the implementation of strategy maps in a real-world setting. Strategy maps are an extension of the well-known and adopted balanced scorecard, but have received little attention in empirical studies.Design/methodology/approachThe researcher introduced middle managers and operational staff to strategy maps and assisted them in the construction of a map for their business unit. The participants were then interviewed as to whether they agree with the benefits outlined in literature.FindingsParticipants agreed with the three main benefits outlined in literature and also provided additional feedback on the use of strategy maps from the perspective of their role as middle managers and those who had not used strategy maps in the past.Research limitations/implicationsThis study should be replicated in a larger setting. It would be particularly helpful to involve multiple departments across one organization or replicate the research in different organizations in the industry.Practical implicationsIt would be helpful to guide business units through the construction of strategy maps and then survey employees at different levels throughout the business units to obtain their feedback concerning the resulting product.Social implicationsBecause this study involves middle managers and operational level employees, it provides insight on the use of strategy maps, which could be extrapolated to other strategic performance management tools. This is a level of management that has not been involved to a large extent in previous research.Originality/valueThis paper is the first to observe middle managers in their development of a strategy map, which puts it in the unique position to note the opinions of this group on the benefits of the tool.

Lichtenthaler, Ulrich

2022 Journal of Business Strategy

doi: 10.1108/jbs-06-2020-0144

The paper aims to present key insights for achieving a sustainable competitive advantage from implementing data analytics solutions and artificial intelligence (AI).Design/methodology/approachThis conceptual paper builds on prior empirical and conceptual research, and it offers anecdotal evidence from a best-practice case study of Liverpool Football Club.FindingsBeyond the well-known companies in profiting from AI, such as Amazon, this paper presents a surprising best-practice example for achieving a competitive advantage from combining data analytics and AI with human expertise. Liverpool Football Club is a leading soccer club from England, and it has experienced a major revival in terms of sporting success and financial performance in recent years. The club’s emphasis on data analytics and AI only contributed to this impressive evolution when it was complemented with the emotional intelligence and people skills of its present manager Juergen Klopp. Along with new conceptual arguments, this example of integrated intelligence offers important insights for managers and executives in companies from many industries – far beyond sports management.Originality/valueThe conceptual arguments and case example illustrate that the competitive benefits of implementing standardized AI solutions in an isolated way will often be relatively limited. Many AI solutions will be standardized in the near future, and they may easily be applied by many firms. Thus, even those companies that are considered as AI pioneers may not be able to sustain their competitive advantage unless they develop an integrated intelligence architecture, which combines human and AI. This integration of data analytics and AI with the human intelligence and expertise of a firm’s employees offers the basis for a sustainable advantage because it is difficult to match for competitors. Thus, the paper offers new theoretical insights and direct managerial implications with regard to profiting from AI and data analytics.

Hartmann, Julia; Inkpen, Andrew; Ramaswamy, Kannan

2022 Journal of Business Strategy

doi: 10.1108/jbs-07-2020-0156

The long-term energy transition from fossil fuels to renewable energy challenges the future of oil and gas firms. The purpose of this paper is to explore how the world’s largest oil and gas firms’ strategies are responding to the transition.Design/methodology/approachThe authors used content analysis of annual reports to examine the renewable strategies of the world’s largest publicly traded oil and gas companies. Data were analyzed using two complementary statistical methodologies to build a taxonomy of the patterns in strategic behaviors involving renewable energy.FindingsFive transition archetypes are identified – three reflect an active pursuit of renewable energy, whereas the other two are more defensive in posture. The authors also find that the firm’s country context has an important bearing on renewable strategy. Both normative social pressures and regulatory pressures play key roles in influencing a firm’s commitment to a renewables’ strategy.Research limitations/implicationsUsing an innovative research method, we develop a new taxonomy to classify how the world’s largest oil and gas firms are shaping the transition from fossil fuels to renewable energy..Originality/valueUsing an innovative research method, the authors developed a new taxonomy to classify how the world’s largest oil and gas firms are shaping the transition from fossil fuels to renewable energy.

Kosutic, Dejan; Pigni, Federico

2022 Journal of Business Strategy

doi: 10.1108/jbs-06-2020-0116

The purpose of this paper is to help companies address the problem of ever-increasing cybersecurity investment that does not produce tangible business value – this is achieved by explaining the relationship between cybersecurity and competitive advantage.Design/methodology/approachThe impact of cybersecurity on competitive advantage was explored through a qualitative research study – the authors conducted an extensive literature review and conducted two rounds of semi-structured interviews with executives and security professionals from companies in four countries, from the financial, IT and security industries.FindingsThe analysis of the findings enabled the conceptualization of the Cybersecurity Competitive Advantage Model that explains how to build up cybersecurity dynamic capabilities to achieve long-term competitive advantage.Research limitations/implicationsThe research presents the theorization of the model based on an extensive literature review, gathered information, insight from qualified respondents and the authors’ experience in the field. While we controlled for saturation and rigorously collected and analyzed the data, the inductive approach followed may limit the generalizability of the findings.Practical implicationsThe proposed model helps explain to executives how to differentiate their company in a novel way and how to retain that competitive advantage; security professionals can use the model to organize cybersecurity and communicate to their superiors more effectively.Originality/valueThe presented model differs from existing literature, cybersecurity frameworks and industry standards by presenting a method of avoiding technological bias and for achieving competitive advantage.

Atwal, Glyn; Bryson, Douglas; Kaiser, Maya

2022 Journal of Business Strategy

doi: 10.1108/jbs-07-2020-0160

The purpose of this study is to investigate the development of brand hate based on the case of Italian luxury fashion house Dolce & Gabbana in China.Design/methodology/approachThe strategy adopted in this study is a single in-depth case study. Qualitative methods are applied in both the data collection and analysis.FindingsThe findings identified six distinct stages through which brand hate can develop: awareness, anger, amplification, antagonism, action and apathy.Research limitations/implicationsThe case is specific to a luxury brand and the Chinese cultural context.Practical implicationsPractitioners need to consider how business strategies can be adapted to manage the six stages of the manifestation of brand hate. A “proactive” approach is needed to avoid arousing brand hate, while a “reactive” approach is needed to manage its potential ramifications.Originality/valueThere has been a paucity of anti-consumption research within the business strategy literature. To the best of the authors’ knowledge, the focus on China makes this the first study to investigate brand hate within a Chinese cultural context.

Galpin, Timothy

2022 Journal of Business Strategy

doi: 10.1108/jbs-07-2020-0147

The purpose of this paper is to determine how and to what extent firms are using “environmental choice architecture” to “nudge” innovation across the organization. The Cultural Alignment Model was designed based on the concept that individual and collective workforce behaviors are formed by an organization’s environment. Although existing since the 1950s, behavioral theory has seen a recent resurgence of popularity in shaping culture. Described in the book Nudge, compelling research demonstrates that individual and collective behavior can be influenced through what is termed “environmental choice architecture.” The Oxford Innovation Insights Project was established to test the Cultural Alignment Model, by answering the question – How and to what extent are firms using “environmental choice architecture” to “nudge” innovation across the organization?Design/methodology/approachSemi-structured interviews were conducted with 60 “C-Suite” executives, representing 15 different industries. Each executive was asked to respond to the same four items: to what extent do you agree or disagree with the statement – innovation is a strategic priority for our firm; on a scale of 1 (low innovation) to 10 (high innovation) please rate your firm’s organization-wide level of innovation; Which of the following processes does your firm use to encourage innovation across the organization? And for the processes that your firm uses, please provide examples of how each is designed to encourage innovation behaviors across your workforce.FindingsEighty-six percent of respondents identified innovation is a strategic priority for their firm, while just 8% of respondents rated their companies as having a “high” level of firm-wide innovation. The environmental choice architecture components most frequently used by firms to encourage innovation behaviors across the workforce are identified. A strong positive relationship was found between “high innovation” firms and the number of environmental choice architecture components they use to encourage innovation. Firms having a low level of innovation underperformed market peers, while firms rated as having a high level of firm-wide innovation outperformed the market benchmark.Research limitations/implicationsRepeat the current study to include more respondents and industries; rather than relying on self-ratings, determine a firm’s innovation rating through an external assessment, such as industry expert ratings of firms’ innovativeness; beyond frequency of utilization, assess the strength of innovation “nudge” each cultural lever provides; determine if a relationship exists between the market and financial performance of firms and the number of “cultural levers” they use to nudge innovation across the workforce; and compare the level of innovation between each industry by expanding the respondent pool to include more representatives from each industry.Practical implicationsCompany culture is identified as one of the top obstacles for a firm’s innovation performance in a global survey of 1,500 executives. Moreover, the authors of the McKinsey Global Innovation Survey state, “The best companies [in the study] find ways to embed innovation into the fibers of their culture, from the core to the periphery”, but tellingly the authors do not identify how to go about creating that embeddedness. The Cultural Alignment Model presented provides management a pragmatic approach to embed innovation across their firm’s culture using elements of the organization’s choice architecture.Originality/valueBehavioral theory has seen a recent resurgence of popularity in shaping culture. The Oxford Innovation Insights Project tests the Cultural Alignment Model, by answering the question – How and to what extent are firms using “environmental choice architecture” to “nudge” innovation across the organization?

Agusti, Maria; Galan, Jose L.; Acedo, Francisco J.

2022 Journal of Business Strategy

doi: 10.1108/jbs-05-2020-0099

This paper aims to examine what firms in Spanish industrial sectors redeployed their resources, depending on their organisational slack (resource excess), when faced with the global economic crisis of 2008.Design/methodology/approachVarious financial measures for slack resources and performance have been analysed from more than 400 Spanish firms from 2006 (pre-crisis) to 2017 (recovery).FindingsThe first finding is that every slack is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis according to the level of slack possessed. The key role of the available slack against this environmental threatens is remarked.Research limitations/implicationsNot every resource is useful against an economic downturn. The results show how industrial companies use their slack resources when faced with a generalised crisis in accordance with the types and levels of slack. The key role of the liquid resources, in particular cash, against this environmental threat is discussed. However, we also observe the behaviour of firms with only a few excess resources and find very similar resource consumption patterns.Originality/valueAlthough organisational slack is a well-known concept in management, few studies deal with how companies consume or use other types of resources when confronting a crisis. This paper not only addresses this question but also offers insights for a detailed evaluation of various types of slack during and after a crisis.

Hirsch, Peter Buell

2022 Journal of Business Strategy

doi: 10.1108/jbs-11-2021-0175

The purpose of this paper is to examine the hidden carbon footprint of corporate big data infrastructures and provide guidance for communicators responsible for corporate ESG and reputation.Design/methodology/approachIt is based on a subjective view of the literature on this topic, selecting relevant examples.FindingsThe authors found that consciousness within corporations of the carbon footprint of their own information technology infrastructures is low and only a few companies have a strategy for identifying it.Originality/valueTo the best of the authors’ knowledge, this is the first treatment of this subject from the perspective of the corporate owner of ESG and reputation.