Search results

In business environments characterized by intense competition, globalization, rapid technological diffusion, accelerated product life cycles, and evolving industry boundaries, the ability of firms to adapt effectively to their changing environments is a strategic imperative (Hitt, Keats, & DeMarie, 1998; Nadler & Tushman, 1999). The exhibition of strategic adaptability – the ability of a firm to alter its alignment with the environment through reactive and proactive behaviors (Evans, 1991) – is a function of the goodness-of-fit that exists between the capabilities of a firm and the demands imposed by its relevant industry context (Burgelman & Grove, 1996). When firm capabilities are well aligned with industry success factors, those capabilities constitute strategic assets for the firm, or resources that lead to the achievement of competitive success in that context (Amit & Schoemaker, 1993). The possession of strategic assets thus contributes to a state of adaptation, defined by Chakravarthy (1982) as a state in which an organization exhibits the capacity to survive the conditions of its changing environment. Because of the constantly shifting nature of the environment, a state of adaptation is not a permanent settling point for the organization, but rather a moving target for the organization as it attempts to remain “mapped on” to the exigencies of the environment.

This study aims to elucidate reference points and organizational identity in letters to shareholders (LTSs) of publishing companies and develops propositions on their relation to strategic adaptation. This study examines how characteristics of reference points (number, temporality and specificity) and organizational identity (focus, discontinuity and distinctiveness) relate to strategic adaptation. This research advances performance feedback theory and behavioral strategy by presenting rich data on how managers use reference points. This study also theorizes on the role of organizational identity as an observation frame. Finally, this study informs managers on how they can adapt reference points and organizational identity to drive strategic adaptation in their organizations.

This paper uses text analysis of LTSs of eight companies in the global publishing industry over six years. The research design is an exploratory, comparative case study.

The authors present the findings of rich empirical data analysis of reference points and organizational ideology, develop a typology and propose three proposed relationships. This paper develops three propositions on how characteristics of reference points (number, temporality and specificity) and organizational identity (focus, discontinuity and distinctiveness) relate to strategic adaptation.

This study elucidates reference points that managers use when they make sense of performance feedback. This study further develops a typology of reference points and suggests propositions on how reference points and organizational identity relate to strategic adaptation. The novel linguistic approach to revealing reference points-in-use and the study of decision-making in its empirical context contribute to a better understanding of the micromechanims of decision-making that are central to behavioral strategy.

What effects does radical innovation produce on the dialectical relationship between enterprises and their environment? In this paper, by adopting the dynamic adaptation matrix methodological framework, the author addresses this research question by discussing the evolution of the music industry in the period of 1999-2013. The purpose of this study is to identify possible co-evolutionary adaptation paths, namely, virtuous or contradictory adaptation cycles.

The paper is presented as a descriptive comparative case study about the major changes that have occurred in the sector, and this could be of interest to the industry stakeholders. The paper also contributes to the debate about co-evolution as it is an empirical implementation of the adaptation matrix and sheds light on the main environmental dynamics.

The author found that for a low level of environmental determinism and moderate degree of strategic choice, cost leadership strategy dominates other strategic options. For moderate levels of environmental determinism, differentiation-marketing strategy ensures a better performance than differentiation-innovation strategy. Finally, for a high level of both environmental determinism and strategic choice, differentiation-innovation strategy is the best strategic option among differentiation strategies.

The adaptation matrix, especially in its dynamic form, can be applied to understand the changes within a sector with a co-evolutionary lens and to analyze critically the strategic choices enacted by the market’s incumbents.

This study may have useful implications for both scientific research and managerial practice. In fact, it is intended for all scholars and practitioners interested in exploring the nature of organizational adaptation, especially in industries affected by major technological changes, such as the music industry, which only recently has been considered as a fertile ground for research.

Strategic fit is known to be an important antecedent to a firm’s performance, but there is little research explaining its influence on firm’s environmental performance. This paper aims to propose that strategic fit is likely to affect two firm-level outcomes: dynamic equilibrium and dynamic disequilibrium.

Prior debate has underlined the role of adaptation vs selection in achieving strategic fit, but we assert that firms vary in their strategic fit. This paper models inter-firm differentials in environmental performance, using survey data from a sample of Chinese small and medium enterprises.

Transformative leadership, operational agility and knowledge-based identity facilitate compensatory fit, while productivity growth, strategic adaptability and low product-market maturity enable strategic fit.

The authors show how low strategic fit may provide selection advantages via compensatory fit. Some firms do seek to achieve greater fit to the embedded contextual contingencies (dynamic equilibrium) at the cost of their energy. However, others respond to the expectations for green performance that are presently orthogonal to the embedded context to realize compensatory fit using the energy of the context (dynamic disequilibrium). This manifests as differential capabilities for adaptation vs selection.

The findings highlight how the firms may use cultural fit pathway for transcending the phenomenological tradeoffs between economic performance-oriented strategic fit and ecological performance-oriented compensatory fit.

This paper shows how low strategic fit may provide selection advantages via compensatory fit. Some firms do seek to achieve greater fit to the embedded contextual contingencies (dynamic equilibrium) at the cost of their energy. However, others respond to the expectations for green performance that are presently orthogonal to the embedded context, to realize compensatory fit using the energy of the context (dynamic disequilibrium). This manifests as differential capabilities for adaptation vs selection.

Es conocido que el ajuste estratégico es un antecedente importante del resultado de la empresa, pero existe poca investigación sobre su impacto en el resultado medioambiental. Proponemos que el ajuste estratégico es probable que influya sobre dos resultados organizativos: equilibrio dinámico y desequilibrio dinámico.

El debate previo ha señalado el papel de la adaptación frente a la selección a la hora de lograr el ajuste estratégico, pero sin embargo nosotros aseguramos que las empresas varían en su ajuste estratégico. Modelizamos las diferencias entre empresas en cuanto a su rendimiento medioambiental utilizando datos de una encuesta de empresas pequeñas y medianas empresas chinas.

El liderazgo transformacional, agilidad operativa, e identidad basada en el conocimiento facilitan el ajuste compensatorio, mientras que el crecimiento de la productividad, la adaptabilidad estratégica y una baja madurez producto-mercado favorecen el ajuste estratégico.

Mostramos como un bajo ajuste estratégico genera ventajas en la selección vía ajuste compensatorio. Algunas empresas buscan un mayor ajuste a las contingencias del entorno (equilibrio dinámico) a costa de su energía. Sin embargo, otras responden a las expectativas sobre rendimiento medioambiental para alcanzar un ajuste compensatorio utilizando la energía del contexto (desequilibrio dinámico). Esto se manifiesta en forma de capacidades distintas para la adaptación frente a la selección.

Nuestros resultados subrayan como las empresas pueden usar el ajuste cultura para trascender los contrastes entre el ajuste estratégico orientado a los resultados económicos y el ajuste compensatorio orientado a los resultados medioambientales.

La investigación resalta el reto de integrar las presiones para adaptarse a la lógica ecológica predominante en la industria y los imperativos basados en el valor que apoyan la selección del ecosistema social apropiado para los grupos de interés. Enfatiza que el factor decisivo que influye de manera decisiva en la capacidad de la empresa para manejar las contraprestaciones económicas y ecológicas es la orientación cultural a favor del bienestar de las personas. Mediante un modelo integrador de desarrollo económico y ecológico a nivel nacional una empresa puede reducir los costes derivados del hecho de que algunos países puedan favorecer los intereses económicos a costa de los medioambientales y generar externalidades negativas.

Palavras-chave Resultados medioambientales, Crecimiento de la productividad, Liderazgo transformacional, Agilidad operativa, Adaptabilidad estratégica, Madurez producto-mercado

O ajuste estratégico é conhecido por ser um importante antecedente do desempenho da empresa, mas há poucas pesquisas explicando sua influência no desempenho ambiental da empresa. Propomos que o ajuste estratégico provavelmente influenciará dois resultados no nível da empresa: equilíbrio dinâmico e desequilíbrio dinâmico.

O debate prévio destacou o papel da adaptação versus seleção na obtenção de adequação estratégica, mas afirmamos que as empresas variam em sua adequação estratégica. Nós modelamos diferenciais entre firmas no desempenho ambiental, usando dados de pesquisa de uma amostra de pequenas e médias empresas chinesas.

A liderança transformadora, a agilidade operacional e a identidade baseada em conhecimento facilitam o ajuste compensatório, enquanto o crescimento da produtividade, a adaptabilidade estratégica e a baixa maturidade do mercado de produtos permitem um ajuste estratégico.

Mostramos como o ajuste estratégico baixo pode fornecer vantagens de seleção via ajuste compensatório. Algumas firmas buscam obter maior adequação às contingências contextuais embutidas (equilíbrio dinâmico) ao custo de sua energia. No entanto, outros respondem às expectativas de desempenho verde que atualmente são ortogonais ao contexto embutido, para realizar o ajuste compensatório utilizando a energia do contexto (desequilíbrio dinâmico). Isso se manifesta como capacidades diferenciais de adaptação versus seleção.

Nossas descobertas destacam como as empresas podem usar o caminho da adaptação cultural para transcender as compensações fenomenológicas entre o ajuste estratégico orientado para o desempenho econômico e o ajuste compensatório voltado para o desempenho ecológico.

A pesquisa destaca os desafios da cultura de trabalho de integrar as pressões para se adaptar à predominante ecologia industrial versus o imperativo dominante baseado em valores para selecionar o ecossistema social apropriado dos interessados. Isso enfatiza que o fator decisivo na capacidade formativa de uma empresa para promover compromissos econômicos e ecológicos é a orientação cultural para o bem-estar humano em uma plataforma nacional. Ao programar um modelo integrativo de desenvolvimento econômico e ecológico em nível nacional, uma empresa pode auto mitigar os custos da economia política internacional que surgem quando algumas nações trocam o bem-estar ecológico em prol de interesses econômicos e geram externalidades negativas.

Palavras-chave Palavras-chave Desempenho ambiental, Crescimento de produtividade, Liderança transformacional, Agilidade operacional, Adaptabilidade estratégica, Maturidade do Produto-Mercado

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a new venture that exists in an industry that is more globally integrated is more likely to have a need to internationalize in order to remain competitive (Shrader, Oviatt, & McDougall, 2000). Similarly, those new ventures that have limited domestic growth due to the size of their home country may look elsewhere in order to gain a sufficient level of sales to survive (Zahra & George, 2002). Some of the many firm-specific motivations to internationalize might include the desire to fully exploit a unique product (Burgel & Murray, 2000; Oviatt & McDougall, 1994, 1995), capitalize on the learning advantage of newness (Autio, Sapienza, & Almeida, 2000) or take advantage of networking opportunities (Reuber & Fischer, 1997).

This chapter explores other theoretical explanations to the commonly observed phenomenon of negatively skewed performance outcomes and inverse risk-return relationships in empirical firm data. The analysis conducted in many prior studies have implicated direct causal dependencies between performance and risk, or vice versa, with the possibility of simultaneous two-way relationships that are harder to discern. It is also shown how spurious artifacts deriving from the arithmetic links between mean and variance associate left-skewed distributions with negative mean variance correlations. However, the heterogeneous display of response capabilities among firms that compete in the same industry contexts may provide an alternative explanation for the observed performance characteristics. This is expressed as strategic responsiveness where performance outcomes with high negative skewness and excess kurtosis derive from heterogeneous adaptive processes among firms as they respond to a dynamic environment with different degrees of success. We test these results in different simulated competitive contexts disrupted by major unexpected events and find robust results across different environmental scenarios. The analysis looks at two different response processes, one modeled as conventional adaptive planning following an annual budget cycle, and another modeled as interactive updating where executives have frequent informative budget discussions with operating managers in the firm. The computational simulations show that interactive updating generates outcomes with higher returns and lower performance risk for moderate learning levels and restructuring costs. However, the resulting performance distributions are not as left-skewed as those observed in the empirical data that show higher resemblance to the adaptive planning outcomes.

Examines the concept of adaptation as it relates to the start‐up and survival of small businesses over time. Adaptation is approached as the making of appropriate adjustments to the business and its strategic focus, as the venture evolves from an initial idea to a successful business. It is proposed that adaptation has three relevant components: the firm’s capacity to adapt, how much it actually adapts, and the strategies it relies upon to adapt. A conceptual model and hypotheses are proposed, relating the entrepreneur, the organizational context and the external environment to these three components of adaptation, and relating the components of adaptation to performance. Results from a cross‐sectional survey of small business founder/owners suggest that characteristics of the entrepreneur and levels of environmental change are especially important determinants of the three components of adaptation, and that levels of and strategies for adapting are related to organizational performance. A number of implications are drawn from the findings and suggestions are made for ongoing research.

Develops a framework for the implementation and adaptation of flexible manufacturing systems, paying particular attention to the uncertainty involved in implementation. Discusses the subsystems associated with technology, management and strategic control, with technology being split into operations, materials and knowledge and relates latent uncertainty to the almost inevitable misalignment of the various factors and comments on the adaptation cycles needed for successful implementation. Presents three case studies to illustrate the points made.

The purpose of this study is to develop and test a framework describing the interplay between collective organizational identity, network behaviors and performance in strategic networks.

The study uses data from 141 firms that participated in strategic networks. Structural equation modeling is used to test the hypotheses.

This study demonstrates how a firm’s collective organizational identity directs managerial perceptions toward partner’s opportunism in strategic networks; how these views shape interactions with network partners; and how these interactions facilitate firm adaptations within strategic networks. Moreover, it demonstrates how network adaptations affect the satisfaction with strategic network performance and how this ultimately loops back to influence organizational identity.

Given the limits of quantitative research to capture the mechanisms driving network collaborations, further case-based research on the role of organizational identity for network behaviors is needed.

The results highlight the importance of collective organizational identity for network behaviors and positive performance outcomes. Firms that intend to engage in strategic networks should develop a collective organizational identity that supports implementing the network strategy. The results emphasize the importance of developing a collective organizational identity.

Organizational identity in facilitating network behaviors.

Asks how implementation management affects implementation uncertainty, adaptation cycles and performance. Assesses retrospective case studies of three Swedish FMS implementation processes. The cases represent technically similar systems, but with different project characteristics and degrees of success. Reports the study of timing and source of latent uncertainty variables, where uncertainties are regarded as being caused by misalignments in technology, organization, management and strategy. Also studies the timing and nature of adaptation cycles.