Journal of Business Strategy

Van Rensburg, Deryck J.

2024 Journal of Business Strategy

doi: 10.1108/jbs-07-2023-0132

This paper aims to outline the role that serendipity can play in providing a complementary and previously unrepresented vector in deliberate and emergent strategies within organizations.Design/methodology/approachThe paper is conceptual in nature and draws upon the serendipity pattern in sociological theory and serendipitous relations in developmental sciences to provide a framework for executives to consider when examining the process of strategy formation. Two case vignettes are used to illustrate the difference between luck and serendipity and the paper also traces key micro foundations of serendipity by returning to the original serendipity fable and a famed science experiment producing “floppy-eared” rabbits.FindingsThe notion of chance favoring the “prepared firm” is espoused where the prepared organizational mind is positioned as an antecedent of serendipitous strategy formation. This is based on Louis Pasteur’s famous aphorism, “chance favors the prepared mind.” Components of the prepared firm include deep domain knowledge, anticipatory mindset, noticing, abductive reasoning, elaboration and relations development.Research limitations/implicationsThe paper is a conceptual articulation of a novel concept that now requires deeper empirical case development and ultimately statistical validation. The paper suggests linkages between serendipity and theories of absorptive capacity and the attention-based view of the firm.Practical implicationsSeveral mindsets, capabilities and relations for architecting organizational serendipity are suggested for executives using a stylized framework.Originality/valueFrom a strategy process perspective, the Mintzberg and Waters seminal article “Of strategies deliberate and emergent” is complemented by considering “floppy-eared” strategy characterized by unexpected, anomalous and strategic datum.

Kerschbaumer, René Hubert; Foscht, Thomas; Eisingerich, Andreas B.

2024 Journal of Business Strategy

doi: 10.1108/jbs-02-2023-0032

The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.Design/methodology/approachIn a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.FindingsThe rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.Originality/valueThis conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.

Thelisson, Anne-Sophie

2024 Journal of Business Strategy

doi: 10.1108/jbs-05-2023-0087

Strategic alliances play a key role in a company’s growth strategy. They are an alternative to the organic option of creating a new company from scratch and a less risky option than conducting a merger or an acquisition. For five years, most recently in 2022, the results of PwC’s 22nd Annual CEO Survey have shown that 40% of U.S. CEOs plan to enter into a new strategic alliance or joint venture to boost their company’s growth or profitability in the coming year. These operations demand a high level of trust, collaboration and equitable risk-sharing, as well as autonomy granted to both firms. Through an in-depth case study, this study aims to reveal how an alliance was formed between two companies, navigating between entrepreneurial experience and the co-construction of a network to share a technological tool.Design/methodology/approachThe author conducted several interviews with one of the founders of Beta France, and the author had access to a large amount of information on the launch of the entrepreneurial project.FindingsThe author presents the reasons for Beta France to join a network of alliances rather than entering into a joint venture. In doing so, the author emphasizes the importance of independence between actors as a key element triggering innovation.Originality/valueThis study points out how a fintech startup opens up perspectives for new digital market participants. The author lists the risks that CEOs joining an alliance must be aware of, and the author details how to avoid falling into an asymmetrical alliance by keeping a center of expertise that cannot be duplicated by other partners.

Borzillo, Stefano; Alshahrani, Salem

2024 Journal of Business Strategy

doi: 10.1108/jbs-07-2023-0148

The purpose of this study is to uncover the essential conditions for establishing a successful collaboration between the Fairmont Hotel (Makkah) staff and the senior management team to prepare for cocreating a future shared corporate vision.Design/methodology/approachThis study is an action research project involving senior managers of the Fairmont Hotel (Makkah) and EHL Hospitality Business School (Lausanne, Switzerland). Data were collected from 16 hotel staff members, covering functional/department managers, team leaders, operations supervisors and operational-level employees.FindingsThis study uncovered a series of generic proposals made by the hotel staff, which are prerequisites/conditions for successful collaboration with senior management, to prepare for cocreating a future shared vision.Practical implicationsIn response to the staff’s generic proposals, the senior management team proposed practical measures to support continued collaboration between hotel staff and the senior management team. These measures aim to maintain a collaborative approach centered on achieving future common goals and a shared vision to promote sustainable innovation in the services of the Fairmont Hotel (Makkah).Originality/valueThis study is innovative in two respects. First, it demonstrates a strong willingness on the part of senior management and staff to collaborate less vertically, contrary to the cultural norm in Saudi Arabia, known for its strong hierarchical distance. Second, the mutual commitment to more horizontal collaboration is not typical of five-star hotels, which are traditionally vertical and hierarchical.

Evans, Klavdia Markelova; Salaiz, Ashley; McKee, Rob Austin

2024 Journal of Business Strategy

doi: 10.1108/jbs-07-2023-0138

This paper aims to address an important question of what makes companies succeed or not in their attempt to empower employees. As this study answers this question, the arguments suggest that coordination is essential to creation of employee empowerment climate in organizations.Design/methodology/approachThis is conceptual paper rooted in extensive research on both – empowerment (culture, climate and organizational structure) and coordination (formal and informal).FindingsTo help managers to be effective in their roles, this study presents four insights to creating empowerment climate. The arguments conclude that coordination provides a vessel for successful realization of empowerment. Specifically, only informal coordination (vs formal) will fully realize empowerment’s benefits. Given that the topic of empowerment is highly germane to managers in today’s context of the increasing number of employees working remotely, this work presents an important and actionable advance for managers.Originality/valueThis study represents original research that has not been published and is not currently under review at any other journal.

Wu, Te; Nguyen, Huy Will; Jung, Young Hoon; Ren, Isabelle Yi

2024 Journal of Business Strategy

doi: 10.1108/jbs-05-2023-0108

Organizations have always faced the possibility of disruptions. Traditional approaches, such as shifting risks through insurance or improving organizational resiliency, view disruptions as threats. This study aims to propose a new perspective where disruptions can also be opportunities. By adopting project portfolio management (PPM), organizations can develop proactive capabilities to manage uncertainty and prepare to exploit future disruptions.Design/methodology/approachDrawing on publicly available research reports, company reports, professional standards and press reports, this study describes key features of PPM and provides detailed practical guidance on how to apply PPM in daily operations, especially in preparation for the next disruption.FindingsThe key steps in applying PPM in daily operations are: align portfolios and projects with strategic goals and objectives; establish a robust governance framework; optimize resource capability and capacity; build and implement appropriate implementation methodologies; continuously monitor, review and optimize the project portfolio; and develop a culture that embraces risks, innovation and adaptability.Research limitations/implicationsThis research has several limitations and implications. On limitations, the study was constrained by publicly available data, an in-depth interview with a consulting firm and a survey based on convenient sampling. These limitations will impact the generalizability of the findings. On implications, this paper shows how organizations can prepare for future disruptions by applying PPM. There are other ways to prepare for the unpredictable future, and further research is needed to explore other methods.Practical implicationsThe results of this study have important practical implications for all organizations and in all sectors. Major disruptions are matters of “when,” not “how,” and responsible organizations need to pay attention. Based on the PPM discipline, this research provides an approach for business executives and project management practitioners to tackle this challenge. Furthermore, portfolio managers should use this information to promote and advocate for more disciplined planning to confront the uncertain future.Social implicationsThe findings of this paper carry important social implications. As the recent events showed the vastness of disruptions, from extreme heat to fires in Maui, sitting idly and waiting passively for an unpredictable future is not an option. This paper advocates the need for more awareness and preparation for future disruption by applying PPM. Furthermore, this research provides concrete guidelines for organizations and practitioners to consider as they confront the unknown. Additional research should investigate other effective strategies to meet the challenges of an uncertain and volatile future.Originality/valueThis study offers practical steps on how organizations may manage not only to survive but also to thrive in an uncertain and volatile world.

Collin-Lachaud, Isabelle; Do Vale, Guillaume; Reynolds, Jonathan; Cuthbertson, Richard

2024 Journal of Business Strategy

doi: 10.1108/jbs-07-2023-0149

Digitalization and multi-channel strategy have appeared as recurrent themes in retailing for years, yet some major international as well as domestic mass retailers have chosen to retain a single, physical channel focus for customer transactions. These retailers, despite the digital mindset preoccupying the retailing sector, have chosen to rely fully, or predominantly, on their stores to generate revenues. A number of questions arise from this approach. This paper aims to understand the rationale for marketing and strategic practices which appear to go against the dominant, strongly digitally oriented, discourses and practices in the field of retailing. Why do some retailers choose not to add a digital transactional channel? Are there defensible reasons for this choice? Can such a strategy successfully create value?Design/methodology/approachThis research is based on a qualitative, multiple case study of the strategies adopted by Primark (fashion) and Aldi (food), two major retailers that retain a largely single-channel transaction focus, in France and the UK.FindingsThis research suggests that some retailers may still be able to succeed by maintaining a single-transactional physical channel to avoid a cost trap which extensive moves towards digitalization of transactions might mean for them. In such circumstances, refusing to adopt a digital value proposition may be a means of preserving the success of their original business model.Originality/valueDespite the weight of academic and practitioner discourses on the urge to undertake digital transformation, this work provides a comprehensive illustration of the rationale for sticking to a single physical channel to preserve the profitability of a traditional store-based business model.

Aguiar, Marcos; Kiderman, Jeff; Shekar, Harsha Chandra; Schilke, Oliver

2024 Journal of Business Strategy

doi: 10.1108/jbs-08-2023-0157

The purpose of this paper is to elaborate the significance of safeguards in digital ecosystems and their role in generating trust among participants. This paper argues that the right mix and number of safeguards are crucial for an ecosystem’s growth and success. It offers ecosystem orchestrators concrete guidelines for how to implement and monitor safeguards.Design/methodology/approachThis research is based on both consulting experience and publicly available information on several digital ecosystems.FindingsThis research conceptualizes safeguards as precautionary mechanisms that mandate or promote desirable behavior in an effort to engender trust among ecosystem participants. Safeguards can take various forms, including passwords, escrow, user privacy controls, ratings and reviews and policies and contracts. Striking the right balance of safeguards – neither too few nor too many – is crucial for ecosystem orchestrators. This paper identifies the factors that determine the optimal mix of safeguards, including the power asymmetry between sellers and buyers, the sophistication of participants, the nature of transactions, the cost of negative outcomes and the cost-benefit tradeoff.Originality/valueTo the best of the authors’ knowledge, this study is one of the first to illuminate the relationship between safeguards and trust in the context of digital ecosystem. It is also one of the few attempts to provide managerial guidance for ecosystem designers trying to structure their platform for trust.