Journal of Strategy and Management

Michael Carriger

2011 Journal of Strategy and Management

doi: 10.1108/17554251111180981

Purpose – This paper aims to present theoretical and empirical foundations for the use of a particular type of narrative skillfully deployed by senior leaders in an organization as an effective tool for creating, disseminating and executing corporate strategy. Design/methodology/approach – The paper presents original research on the effectiveness of the use of a “springboard story” as a leadership tool. Findings – Data are presented to substantiate that a “springboard story” presentation of corporate strategy and competitive advantage is more effective at producing a consistent and confident choice of competitive advantage among an audience than a presentation of corporate strategy using a PowerPoint style, bulleted list approach. Theoretical implications for leaders leading change, especially change in corporate strategy, are suggested. Originality/value – The paper explores the implications for the practical use of this type of narrative in strategy implementation and execution by leaders.

Hamid Yeganeh

2011 Journal of Strategy and Management

doi: 10.1108/17554251111180990

Purpose – This article aims at offering and validating a theory‐driven conceptualization of the cultural distance index. Design/methodology/approach – First, the cultural distance index is conceptualized, its conceptual properties are discussed, and a generic formula is proposed. Subsequently, the generic formula is applied to Schwartz's and Hofstede's frameworks. Finally, using the new formula the cultural distance is calculated, its robustness is examined, and its advantages over the Kogut and Singh's measure are inspected. Findings – Through this paper it is found that by considering issues such as cultural dimensions' alignment and their relative weight, it is possible to build a more accurate index of cultural distance. Moreover, based on the generic formula it is understood that collectivism/individualism and power distance in Hofstede's framework and conservatism, egalitarianism in Schwartz's model are important cultural dimensions and account for a considerable weight in the cultural distance index. Research limitations/implications – The index is based on cultural dimensions and naturally it carries all shortcomings attributed to dimensionalization such as symmetry, linearity, stability and causality. In addition, it can be recognized that while alignment is a legitimate method, it should be interpreted cautiously because cultural dimensions are essentially nebulous concepts. Practical implications – Researchers may use the proposed index to test the implications of cultural differences for a wide range of cross‐national issues such as joint ventures, entry mode choices, mergers, negotiations, organizational behavior, and technology transfer. Originality/value – This article offers a novel and theory‐driven approach to building the cultural distance index. Considering the popularity of the Kogut and Singh's index in international business, the paper is of major significance.

Anders Pehrsson

2011 Journal of Strategy and Management

doi: 10.1108/17554251111181007

Purpose – The purpose of this paper is to examine important relationships pertaining to customer responsiveness of the industrial firm. Design/methodology/approach – Drawing on strategy and competitive dynamics literature, a contingency model is developed. Hypotheses were tested on 432 Swedish industrial firms that market to business customers in growing or mature markets. Clean technology markets represented growing markets, while miscellaneous markets represented mature markets. Findings – The relationship between the attention paid to customer responsiveness by the industrial firm and the attention paid to volume by the main competitor is negatively reinforced if the firm operates in a growing market. The relationship between the attention paid to customer responsiveness by the firm and competition‐based customer access obstacles in terms of supplier loyalty is positively reinforced if the firm operates in a growing market. The relationship between the firm's customer responsiveness attention and its financial performance is positively reinforced if the firm operates in a growing market. Practical implications – The industrial firm may find an efficient customer responsiveness strategy if the firm operates in a growing market. Because customer responsiveness does not improve firms' financial performance in mature markets, competition relationships are only important to examine in growing markets. Thus, customer responsiveness is more complicated than previously thought in the literature. Originality/value – The paper presents a new model that integrates relationships among industrial firms' attention to customer responsiveness, competition, and performance. By including the market growth contingency, the model explains mixed findings in the literature regarding relationships between customer responsiveness and performance.

Richard Reed; Susan F. Storrud‐Barnes

2011 Journal of Strategy and Management

doi: 10.1108/17554251111181016

Purpose – The paper's aim is to build a model that predicts the optimum tactics for capitalizing on inventions within the context of competitive interaction among large firms. For patenting, the paper seeks to show how invention value and firm rivalry drive the tactics of competing, deterring competitors, retreating from markets, and cooperating. It also aims to explore the effects of the contingencies of patent bulking, technology complexity, spheres of influence, resource similarity, and complementary‐resource tacitness. Design/methodology/approach – The work is conceptual. Findings – The base model shows that patenting can be used to protect markets where there is high invention‐value and high rivalry. When both invention‐value and rivalry are low, the best tactic is to cooperate. When value is high and rivalry low, patenting can be used as a signaling and deterring mechanism, but when value is low and rivalry is high the best option is to let patents lapse and retreat from markets. The moderating effects of patent bulking, technology complexity, spheres of influence, resource similarity, and complementary‐resource tacitness affect rivalry and the amount of patenting that will be done. Research limitations/implications – The paper provides propositions for empirical testing that are predictive of firm performance, rivalry, and patent bulking. Despite the authors' attention to key contingencies, it is impossible to be completely comprehensive in addressing all contingencies. Practical implications – The framework provides tactics for competing and, consequently, maximizing income and minimizing costs. Originality/value – The work synthesizes extant thinking on patents and multipoint competition. While the base model should be valuable for managers, the overall work should be valuable for academics.

Lalit Manral

2011 Journal of Strategy and Management

doi: 10.1108/17554251111181025

Purpose – The extant “supply‐side” frameworks of industry evolution fail to predict the evolutionary patterns in industries based on systemic technologies. This paper aims to describe the complex demand environment in industries based on systemic technologies and to explain how the continuously evolving demand structure influences the choice and level of firm investments in the above context. Design/methodology/approach – The paper identifies a conceptual gap in the “technology‐centric” literature on industry evolution by conducting a detailed interpretive survey of the literature that focuses on the demand‐side determinants of firm‐ and industry‐level technological processes underlying industry evolution, and co‐evolution of the technological system underlying an industry and the consumer applications based on the same. Practical implications – The paper provides a set of empirically verifiable mechanisms to explain competing firms' choice and level of investment under conditions of technological and demand uncertainty in industries based on systemic technologies. On one hand, firms' investments influence the evolution of both the technological system(s) and their constituent components that underlie such industries and, on the other, firms' investments influence the consumption of the array of consumer applications that are generated in these industries. Originality/value – The theoretical explanation provided herein not only enhances the understanding of the role of demand‐side factors as determinants of rate and direction of technological advances but also lies central to the understanding of the evolution of industries based on systemic technologies. More specifically, the paper explains how the interaction between continuously evolving demand structure in the downstream market(s) for consumer applications and the technological components comprising the technological system influences competing firms' choice and level of investments.

José Carlos M.R. Pinho

2011 Journal of Strategy and Management

doi: 10.1108/17554251111181034

Purpose – The major goals of this paper are twofold: first, it aims to explore the link between social capital (structural, relational and cognitive) and the exploitative and explorative capabilities; second, to examine the influence of exploitative and explorative capabilities on international performance. Design/methodology/approach – This paper is conceptual in nature and relies on a conceptual model that builds on and synthesizes the theoretical foundations of social capital (structural, relational and cognitive), dynamic capabilities and international performance. Findings – A useful framework for further research in the social network field and dynamic capabilities is presented. In order to build new dynamic capabilities to cope with turbulent and unpredictable markets, small to medium‐sized enterprises (SMEs) need to leverage their network relationships that provide access to novel sources of information. These dynamic capabilities may in turn positively influence international performance. Practical implications – The paper may assist other researchers with a different template of possible relationships that can better explain international performance. Originality/value – This paper responds to calls for theoretical claims based on a comprehensive distinction of how a social network perspective based on social capital is an important condition for the development of dynamic capabilities of a firm's internationalisation.

Abby Ghobadian; Nicholas O'Regan

2011 Journal of Strategy and Management

doi: 10.1108/17554251111181043

Purpose – The focus of extant strategy literature is on for‐profit organisations and within these group public organisations. There are other forms of organisations and following the deep recession of 2008 there is greater interest in other forms of organisation. In this case study and interview the aim is to examine strategy, strategic decisions and strategic management of a not‐for‐profit provident. Design/methodology/approach – The paper draws on documentary evidence and a semi‐structured interview with Ray King, chief executive of Bupa. The perspective of CEO is key in strategy and such perspectives are relatively rarer. Findings – Bupa invests its surplus to provide better healthcare. Free from the pressures of quarterly reporting and shareholders it can pursue long‐term value creation for members rather than short‐term surpluses. Research limitations/implications – The case study and interview offers a unique insight into strategy‐making within a successful mutual provident that has grown organically and externally becoming an international leader in health insurance. Originality/value – This case study sheds light on strategy‐making within a not‐for‐profit provident that has diversified and grown significantly over the past six decades. Furthermore, very few case studies offer insight into the thinking of a chief executive who has successfully managed a business in a turbulent environment.