Journal of Strategy and Management

Michael R. Braun; Scott F. Latham

2009 Journal of Strategy and Management

doi: 10.1108/17554250910965290

Purpose – This paper seeks to give consideration to the family imprint on governance in the context of firms experiencing economic recession. It aims to rely on agency and stewardship theories to empirically examine the relationship between CEO duality and slack resources on family firm performance during economic recession. Design/methodology/approach – Trend analyses were used employing hierarchical linear modeling (HLM) to evaluate the influence of duality and slack resources on the performance of 75 family‐controlled public firms (FCPFs) during the 2001‐2002 US economic recession and recovery. Findings – The results indicate that duality and slack by themselves do not influence firm performance. However, family firms with a combined CEO‐chair and ample slack resources experience enhanced performance both at the onset of recession and at its conclusion. The findings suggest that a unified leadership and access to slack provide the family with the means to weather economic hardship. The paper makes the case that the stewardship afforded by this combination provides clear benefits to outside shareholders. Practical implications – The absolute leadership and decision‐making control afforded to a CEO‐chair who also holds the reins over firm resources helps to favorably position the business and ease its course through difficult times. The results of this paper suggest that what is good for the family may also be good for other stakeholders in the firm, in this case non‐family shareholders. Originality/value – With this study, attention is drawn to the governance of family businesses during times of economic duress. To the authors' knowledge, this study represents the only empirical investigation into family firm governance within this unique, albeit prevalent context.

Clay Dibrell; Peter S. Davis; Justin B. Craig

2009 Journal of Strategy and Management

doi: 10.1108/17554250910965308

Purpose – This paper aims to provide new evidence regarding the firm performance implications of using temporal orientation (time pacing) and information technology (IT) to align an organization with its task environment. Design/methodology/approach – Using questionnaire data provided by top management team members, the results indicate that time‐based strategies (i.e. time pacing) and IT mediate the effects of environmental disruptions on performance. To validate the scales and to test the hypothesized model of relationships, the study employs structural equation modeling through LISREL 8.52, as it is able to examine both the measurement and structural model simultaneously while including individual errors for the respective parameters. Findings – The results suggest that time pacing should be used in association with IT, as time pacing had a much stronger relationship to environmental disruptions than did IT. This finding supports that a time pacing orientation is effective at helping managers react to disruptions in their task environment. In relation to firm performance, IT was directly linked to firm performance; whereas time pacing was only indirectly associated with firm performance. Practical implications – The findings suggest that the application of time pacing strategies enables managers to increase firm performance via IT. The results therefore suggest that managers should not assess their use of temporally‐based mechanisms (e.g. time pacing, IT temporality) and IT in isolation, but rather consider them in conjunction. This recommendation is consistent with findings elsewhere that components of strategy may need to be cohesive and integrative and require a supportive firm structure if they are to have their greatest effects on firm performance. Originality/value – The study extends the research on temporal strategies and IT as mechanisms for offsetting environmental pressures and improving firm performance. It alerts managers to the notion that time pacing will enable them to generate improved firm performance and competitive advantage, through the synchronistic use of IT.

Paul Knott

2009 Journal of Strategy and Management

doi: 10.1108/17554250910965317

Purpose – This paper aims to address the limited development of techniques to analyze firms' internal sources of competitive performance. It seeks to enhance the contribution of the widely diffused value‐rarity‐imitability‐organisation (VRIO) model to practical strategy making. Design/methodology/approach – The paper draws on the resource‐based literature to assemble an integrated set of steps that evaluate a firm's resources and competence. Findings – The paper proposes an expanded version of the VRIO model that represents resource and competence as a conditional outcome from attributes and asymmetries present in the firm. It shows how the conditions convert asymmetries between weaknesses, missed opportunities, rigidities and resources. Research limitations/implications – By synthesising resource‐based theory in a practice‐relevant form, the paper delineates a concrete set of practices that relate to firms' dynamic capability to manage resources and competence. Practical implications – The paper details an approach to resource and competence analysis that leads directly to decisions about how a firm can manage the resources in question. The model gives a central role to the conditions under which a firm's attributes give rise to a resource or competence, and hence suggests active management of these conditions. Originality/value – The paper presents resource‐based theory in a form that focuses on the doing of strategy, in contrast to the traditional focus of this literature.

Said Elbanna

2009 Journal of Strategy and Management

doi: 10.1108/17554250910965326

Purpose – This paper aims to report the results of a study which extends the research of Elbanna by testing the relationship between strategic planning practice and participation on the one hand and the effectiveness of strategic planning on the other. Design/methodology/approach – The paper extends the work of Elbanna by conducting the study in a new setting, the United Arab Emirates (UAE) with a broader sample: private and public organizations. The study tries to control for the possible impact of the methodology on research results by adopting the same methods and measures as the initial study had adopted. Findings – The conclusions of the combined studies show that, in Arab countries, strategic planning practice enhances strategic planning effectiveness; unexpectedly, and contrary to previous research in developed economies, management participation does not contribute here to the effectiveness of strategic planning. Originality/value – Although previous research provides valuable knowledge concerning strategic planning, there has been a paucity of research that empirically measures the effectiveness of strategic planning. Moreover, the scarcity of replications and extensions in the strategic management literature encourages this study to try to fill this gap. The research also shows the importance of extensions in building strategic management theory.

Nicholas O'Regan; Abby Ghobadian

2009 Journal of Strategy and Management

doi: 10.1108/17554250910965335

Purpose – The purpose of this paper is to present the views of Rod Aldridge OBE on building the strategy of a FTSE 100 company. Design/methodology/approach – The paper takes the form of an interview. Findings – The interview with Rod Aldridge brings to life a number of key strategy concepts. The first is the importance of the external environment and the ability of an organisation to create a fit with the environment. Rod also alludes to the importance of finding the “sweet spot” of strategy – a position in a product market where there is a strong customer demand, little competition, and where the organisation has distinctive capabilities. The interview also gives credence to the argument that distinctive competencies that are the source of success can equally become a potential source of the organisation's demise. Originality/value – The paper provides valuable insights into strategy concepts from one of the most respected leaders of the business world.