Journal of Strategy and Management

Rozhan Othman; Norman T. Sheehan

2011 Journal of Strategy and Management

doi: 10.1108/17554251111110096

Purpose – The purpose of this paper is to locate different value creation logic contingencies within the resource management framework. While Sirmon et al. discuss how external environmental contingencies, such as environmental munificence, impact resource management, this paper aims to discuss a second key contingency; that is how the firm's choice of value creation logics impacts its resource management choices. This paper seeks to argue that management of the firm's resources and capabilities is contingent on the value creation logic employed by the firm. Design/methodology/approach – This paper reviews three value creation logics: value shop, value network, and value chain and then integrates them within the resource management framework. Findings – A review of extant literature indicates that value shop firms, value network firms, and value chain firms enact very different environments and thus require very different resources and capabilities to support their value creation approaches. It is argued that Sirmon et al. 's resource management framework should reflect these differences. Research limitations/implications – This paper points to new directions for research in value creation logic theory and provides a basis for future empirical work. Practical implications – This paper argues that a mismatch between a firm's value creation logic and its resource management practices will have an adverse impact on the firm's performance. Originality/value – This study is one of the first to integrate Stabell and Fjeldstad's value creation logic theory with Sirmon et al. 's resource management framework.

Azaddin Salem Khalifa

2011 Journal of Strategy and Management

doi: 10.1108/17554251111110104

Purpose – This paper aims to expose the underlying reasons behind the failure of the mission statement to have a significant impact on performance and to recommend ways forward. Design/methodology/approach – A comprehensive literature review is conducted and common themes and trends are revealed. These are then discussed under four major domains of the mission statement: definitions, functions, focus, and form. The impact of the mission statement on performance is then discussed. Examples of mission statements of some prominent organizations are provided to substantiate arguments. The paper ends with conclusions and recommendations. Findings – The paper reveals the contradictions and confusion that beset research in this area. It demonstrates how concepts such as mission, vision, values, identity are mixed up with one another, leading to a slow progress in research and underutilization of the power of mission in practice. Research limitations/implications – The paper recommends theoretical focus and practical flexibility. Theoretically, it suggests conceptual distinction between mission, vision, values, and other related concepts. Once this is done, it suggests the use of a “guiding statement” to flexibly describe any statement that integrates more than one of the above mentioned concepts in practice. The paper offers no empirical evidence of the usefulness of its recommendations. Practical implications – The paper reveals the sources of ineffectiveness of the mission statement. The recommendations may help to minimize the confusion surrounding the functions, focus, and form of the mission statement. This may also help to advance the research in this area and inform the practice in the field. Originality/value – The paper critically reads the literature to uncover the contradictions and confusion besetting research in this area and makes original recommendations.

Christos Nicolaidis; Kleanthis Katsaros

2011 Journal of Strategy and Management

doi: 10.1108/17554251111110113

Purpose – The aim of the research is to investigate the influence of emotional attitudes towards change on managers' tolerance of ambiguity. Design/methodology/approach – A total of 70 CEOs of Greek IT firms completed questionnaires examining tolerance of ambiguity, emotional attitudes towards change ambiguity and job satisfaction. Principal components analysis and ordinary regression analyses were used to explore the hypotheses. Findings – The paper finds that three factors characterize managers' emotional attitudes towards change, namely dominance, arousal, and pleasure. Furthermore, it indicates that job satisfaction can be taken as a critical intervention variable that “energizes” managers' arousal (i.e. stimulation, excitement and frenzy) which, in turn, influences their tolerance of ambiguity. Research limitations/implications – Deeper and broader level of research is necessary in Greek IT industry regarding the influence of emotional attitudes on tolerance of ambiguity. Likewise, this research should be expanded to other industries. Practical implications – The findings provide further support on the significance of emotional attitudes during change and the paper suggests policies to enhance managers' tolerance of ambiguity. Originality/value – The originality of this study lies in the finding that job satisfaction energizes the arousal factor, which, in turn, influences significantly managers' tolerance of ambiguity. Another important contributing factor is that the study is carried out in Greece, where few studies have been conducted in this area.

Hannah Koo; Ka‐Yin Chau; Leung‐Chi Koo; Songbai Liu; Shu‐Chuen Tsui

2011 Journal of Strategy and Management

doi: 10.1108/17554251111110122

Purpose – This paper attempts to deploy a systematic and structural approach to examine Macau's strengths and weaknesses and to scan its external opportunities and threats. A fresh way to quantify the extent of perceived opportunities and threats is introduced here. This is adopted and modified from the quality management tool box, i.e. the failure mode and effects analysis (FMEA) and success mode and effects analysis (SMEA). Design/methodology/approach – The internal factors, i.e. its strengths and weaknesses are systematically and structurally gauged using a Likert scale of 0 to 10 (i.e. 0 representing least important or least well performed … to 10 representing most important and best performed). Findings – Following the matching of internal factors with the external factors in the strengths, weaknesses, opportunities, and threats (SWOT) analysis, a list of meaningful responses is identified as possible strategies for the Macau SAR Government. The SWOT analysis is simple to use yet powerful and flexible in responding to changes in the external environment and should be useful to organizations both in the commercial sector and government machinery. Originality/value – This innovative and structured strategic formulation approach is useful to both business practitioners and management consultants.

Nicholas O'Regan; Abby Ghobadian

2011 Journal of Strategy and Management

doi: 10.1108/17554251111110131

Purpose – The purpose of this paper is to demonstrate key strategic decisions involved in turning around a large multinational operating in a dynamic market. Design/methodology/approach – The paper is based on analysis of archival documents and a semi‐structured interview with the chairman of the company credited with its rescue. Findings – Turnaround is complex and involves both planned and emergent strategies. The progress is non‐linear requiring adjustment and change in direction of travel. Top management credibility and vision is critical to success. Rescue is only possible if the company has a strong cash generative business among its businesses. The speed of decision making, decisiveness and the ability to implement strategy are among the key ingredients of success. Originality/value – Turnaround is an under‐researched area in strategy. This paper contributes to a better understanding in this important area and bridges the gap between theory and practice. It provides a practical view and demonstrates how a leading executive with significant expertise and successful turnaround track record deals with inherent dilemmas of turnaround.