Journal of Strategy and Management

Cavaleri, Steven; Shabana, Kareem

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-08-2016-0050

PurposeThe purpose of this paper is to provide both theorists and practitioners with a conceptual framework that links sustainability strategies more closely with Porter’s generic strategies. The intent of this approach is to establish sustainability, fundamentally, as a strategic process. The proposed models set a strategic context to tie sustainability, to mediating variables, such as innovation and technology, while also linking them to generic strategies (low cost leader, differentiation, and focus) and firm financial performance in a causal chain. The proposed model gives rise to conclusions about the effectiveness of sustainability strategies that are consistent with emerging research about the role of radical innovation in sustainability.Design/methodology/approachThe paper proposes two conceptual frameworks designed to link sustainability with business strategy. These models are rooted in evolving understandings of business strategy arising from Porter’s original explanations of generic strategies and sources of competitive advantage. The first model is a causal model that links drivers, such as type of competitive strategy and mode of innovation, to competitive outcomes and firm financial performance. The second model describes how different modes of technology development, in sustainability initiatives, cause changes in firm competitive and financial outcomes.FindingsThe conclusions arising from the model-based insights suggest that conventional continuous and incremental improvement sustainability practices hold the potential to pose strategic risks to some firms – depending on their core business strategy. By contrast, the model provides a logical, yet, less known, rationale that suggests radical innovation in sustainability practices may pose fewer strategic risks. It may also offer relatively more competitive and financial advantages than well-established programs relying on incremental innovation.Research limitations/implicationsAlthough the proposed conceptual frameworks are rooted in strategic management theories, the proposed models and expected outcomes have not yet been empirically tested or validated. However, initially, these models appear to have more face validity in explaining breakthrough sustainability success stories, such as Nike, than do competing explanations. Most importantly, the counter-intuitive finding that radical innovation is likely to be more effective in driving both sustainability and financial outcomes is a topic for future investigation.Practical implicationsThe proposed models and accompanying rationale have direct implications for practitioners. They provide practitioners with a road map to logically and deductively frame sustainability strategies based on their current business strategy. Practitioners are often hindered by the lack of high-level guidance for making the transition from operationally focused sustainability tactics to strategies than are congruent with current business strategies. The current paradigm of using incremental sustainability strategies on an ad hoc basis does not always provide neutral outcomes regarding financial effects and competitive advantage – they may yield negative effects.Social implicationsThe importance of sustainability strategies and management practices cannot be overstated. On a global scale, evidence indicates that most corporate sustainability programs are ineffective at slowing the rate of global forces offsetting sustainability. The proposed models and strategic management approach are intended to dramatically increase the effectiveness of sustainability improvement by closely aligning them with corporate strategies. Historically, companies have struggled to make the leap from randomly using eco-efficiency tools to making sustainability a key component of their business strategy.Originality/valueThis paper integrates a number of diverse lines of inquiry from the strategic management literature into a counter-intuitive approach for integrating sustainability into a firm’s core business strategy. The proposed conceptual frameworks can be used, prospectively, to design new sustainability strategies, or it can be used, analytically (retrospectively), to understand reasons for failure or under-performance in sustainability initiatives.

Peterson, Dane K.

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-10-2016-0068

PurposeThe purpose of this paper is to examine factors affecting the relationship between annual changes in the amount of corporate foundation giving and changes in corporate reputation. The factors investigated included the existing corporate reputation and the economic conditions.Design/methodology/approachPublished data were obtained for 77 US corporations during both an upward and downward economic trend. Data for corporate foundation giving were obtained from IRS tax records while data on corporate reputation were obtained from the Reputation Institute’s RepTrak scores.FindingsLinear mixed model analyses demonstrated that a firm’s prior reputation moderates the relationship between corporate philanthropy and changes in corporate reputation during a downward trend. That is, changes in corporate charitable giving and corporate reputation covaried positively for firms with an existing favorable reputation. However, for firms with an unfavorable reputation, there was an inverse relationship between changes in corporate giving and corporate reputation. The interaction between the variables was prevalent only during an economic downturn.Practical implicationsThe findings provide firms with relevant information on conditions that affect how changes in charitable giving are likely to impact corporate reputation.Originality/valueThis study is the first to look at the effects of annual changes in corporate charitable giving on corporate reputation and adds to the research literature by demonstrating the complexity of the relationship by identifying two key factors that should be taken into considerations when developing annual budgets for charitable giving.

Kagzi, Muneza; Guha, Mahua

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-01-2017-0002

PurposeThe purpose of this paper is to synthesize the diverse literature on board demographic diversity and to provide avenues for future research.Design/methodology/approachThe study provides a comprehensive literature review of theoretical and empirical studies published in leading management journals from 1989 to 2015.FindingsThe literature review revealed several aspects that are related to board demographic diversity. These aspects have been classified into: definitions and types of board diversity, dimensions of board demographic diversity, measurement and outcomes of board diversity, reasons for existing conflicting empirical findings about the relationship between board diversity and firm dynamics, and research on mediators and moderators.Originality/valueIssues pertaining to board demographic diversity identified in this paper have theoretical and practical implications, and include avenues for future research.

Wang, Liang; Li, Eric Ping Hung; Ding, Xiaoya (Sara)

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-11-2016-0083

PurposeThe process of building dynamic capabilities remains understudied, although deliberate learning is posited to be the key to developing and maintaining dynamic capabilities in turbulent environments. Based on the case study of Kodak’s responses to the shift from traditional to digital technology in the imaging industry (1993-2011), the purpose of this paper is to examine the role of managerial cognition in building dynamic capabilities.Design/methodology/approachThe paper employs case study and qualitative method approach.FindingsThe results reveal that, when facing environmental turbulence, deliberate learning is subject to routine disruptions through entrepreneurial activities, and these organizational routines and activities are determined by organizational schema. Organizational schema itself is updated as a result of managers’ ongoing interpretation of the organization’s fit with the environment. The study findings contribute to the organizational studies and management literature by highlighting the role of managerial cognition into the microfoundation of dynamic capabilities.Originality/valueThe results demonstrate managerial cognition, and organizational schema in particular, as a microfoundation of dynamic capability.

Sigalas, Christos; Papadakis, Vassilis M.

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-01-2017-0010

PurposeThe purpose of this paper is to empirically investigate the relationship patterns between competitive advantage and superior performance.Design/methodology/approachThis study empirically investigates the aforementioned relationship patterns using a cross-sectional, self-administered survey methodology.FindingsThe results indicate that there are four relationship patterns between competitive advantage and superior performance. In addition, this study provides empirical evidence of the reasons, underpinning the relationship pattern of competitive advantage without superior performance as well as the relationship pattern of superior performance without competitive advantage.Research limitations/implicationsThis study contributes to our knowledge that competitive advantage is neither a necessary nor a sufficient condition for superior performance.Practical implicationsIn finding support that there can be cases of underperformance despite competitive advantage and superior performance despite the absence of competitive advantage, the study’s findings are useful to practicing managers involved in the strategic management process of their firms.Originality/valueThis study fills an important gap in the empirical research, by responding to the literature call to test the possible relationship patterns between competitive advantage and superior performance. In addition, this study formally introduces the relationship pattern of competitive advantage without superior performance, and the relationship pattern of superior performance without competitive advantage that until now were largely ignored by the existing literature in the field of strategic management.

Alonso, Abel Duarte; Sakellarios, Nikolaos; Alexander, Nevil; O’Brien, Seamus

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-04-2017-0024

PurposeThe purpose of this paper is to investigate the extent and significance of involvement of craft brewery operators in their community through the lens of the stakeholder theory (ST). In addition, differences between forms of involvement and demographic characteristics of operators and breweries are examined.Design/methodology/approachAs many as 218 operators of predominantly micro-craft breweries across the USA participated in an online questionnaire designed to gather their perceptions.FindingsWhile paying taxes was participants’ main perceived form of contribution, providing an artisan-made product, the significance of the craft brewery as a community “hub”, and that of increasing the number of leisure alternatives also emerged. A further 52.8 per cent of participants indicated contributing US$100,000 or more to the community annually. Statistically significant differences were revealed, for instance, based on craft breweries’ production volume, and the level of financial contribution. Various associations between operators’ perceived contributions and the ST theses were established in regard to cooperative interests (descriptive), stakeholder management (instrumental), and moral principles (normative).Originality/valueFirst, by examining corporate social responsibility (CSR) in the craft brewing industry and among predominantly smaller firms, the study addresses two under-researched areas. Second, a refinement of the ST in the context of the craft brewing industry is proposed, highlighting the links between ST-based theses and the findings. Third, the study contributes to three different types of literature: micro and small business, craft brewing entrepreneurship, and CSR.

Pangarkar, Nitin

2018 Journal of Strategy and Management

doi: 10.1108/JSMA-07-2017-0052

PurposeThe purpose of this paper is to investigate whether new store locations by two incumbent supermarket chains in Singapore were consistent with a preemptive strategy.Design/methodology/approachThe methodology involved collecting store location data and using a geographical technique (Thiessen polygons) for inferring the existence of a preemptive strategy.FindingsThe analyses revealed that while NTUC Fairprice’s (the dominant incumbent) new store location strategy was consistent with a preemptive strategy, the second ranked player’s (Cold Storage) was not. Being the dominant incumbent, NTUC Fairprice had the incentive (protect its dominant position) as well as ability (scale, low costs and a merchandise mix that appealed to the mass market) to adopt a preemptive strategy. Cold Storage, on the other hand, lacked both the incentive (appeal to the narrow expatriate segment) and the ability (scale or low costs) to follow a preemptive location strategy.Research limitations/implicationsThe analyses did not distinguish between the opening of large vs small stores because the data on store sizes were not available. The analyses focused on an earlier time period because the implementation of the analytical technique (construction of polygons) was more feasible during the timeframe.Practical implicationsThe paper identifies conditions under which it may be appropriate for firms to follow a preemptive strategy.Originality/valueThe paper adopts a highly appropriate methodology (Thiessen polygons) that takes into account the locations of own as well as competitor’s stores for analyzing the new store locations by supermarket chains. The paper’s conclusions about the conditions under which preemptive strategies are likely to be adopted can be useful to future researchers as well as managers.