Discovering and Managing Interdependence with Customer‐Entrepreneurs

Research on inter‐organizational relationships has largely focused on the interdependence between formal organizations. In recent years, firms have encountered a new logic in which interdependent parties are not formal organizations but platform‐based ‘customer‐entrepreneurs’ that create value through illegal means. Drawing on a 5‐year‐long qualitative study, we examine how firms recognize and instantiate this new logic and, consequently, respond to their interdependencies with customer‐entrepreneurs. Viewed through the lens of institutional logic, we find that, with the benefit of hindsight, firms recognize the existence of the logic of customer entrepreneurship, which triggers organizational sensemaking that is made up of three elements: interpretation of legitimacy compatibility; interpretation of efficiency compatibility; and integration of stakeholder perspectives. This sensemaking results in either a determined account concluding on the compatibility calculus in a top‐down manner, or an open‐ended account avoiding the construction of a resolute, synthesized view. A determined account leads to a defiance strategy, by which firms attempt to remove the source of interdependencies with customer‐entrepreneurs, whereas an open‐ended account guides firms to espouse a decoupling strategy, whereby firms covertly resort to efficiency maximization enabled by the interdependence. Our results offer implications for the research on inter‐organizational relationships and institutional logic.     

How are Methodologies and Tools Framing Managers' Strategizing Practice in Competitive Strategy Development?

Criticisms have been levelled at the use of traditional strategic tools such as SWOT, PEST and BCG in contemporary business environments. In light of these criticisms, the objective of this research is to understand how senior executives engage with methodologies and tools as they develop competitive strategy. Within a broader strategy‐as‐practice approach, we use an activity theory framework to capture strategizing insights of senior executives in the UK responsible for competitive strategy. Our sample includes executives leading manufacturing organizations embedded in networks and CEOs reported in the financial press as adopting innovative business models. Our data suggest there is no one preferred practice approach by these highly regarded executives. Rather, methods and tools are adapted as they are contextualized in alternative practices. Three dominant strategizing practice models emerged from the data reflecting alternative applications of methodologies and tools. The first model captures routinized behaviour adopted by those who view their future as predictable, and an extension of the current environment. The second model posits reflective interaction between the strategist, organizational processes, culture, relationships and practice, and the final model shows an imposed engagement with strategizing methodologies and tools that bypass the organization's collective structures. These practice models suggest strategy leaders' activities depend upon their interpretation of the operating environment.     

A Context‐sensitive Approach to Analysing Talk in Strategy Meetings

The talk of managers in meetings is central to organizational life and crucial to research in strategic management, as well as managerial and organizational cognition, sensemaking and decision‐making. To achieve full understanding, both the text and the context of discussion require systematic analysis, but most approaches treat context as everything that is known and observed beyond the immediate text. This obscures different readings of the text of meetings. To resolve this problem, the discourse historical approach (DHA) to critical discourse analysis is outlined as a framework within which researchers can analyse the text and context of talk in meetings. The primary contribution of this paper is to isolate four ‘levels of context’ as a heuristic framework within which discursive practices, strategies and texts can be located. By making explicit the levels of contextual analysis that are implicit in other methods, and illustrating the DHA using an episode of strategic discussion from a multinational company, this paper shows how researchers can use the approach to analyse the naturally occurring talk of senior managers in meetings, which is arguably the most important but yet under‐explored venue for strategizing.     

Validation of a Multi‐Dimensional Measure of Strategy Development Processes

In this paper, we present evidence on the measurement properties of an instrument that assesses six dimensions of organizational strategy development. These dimensions are labelled planning, incrementalism, cultural, political, command and enforced choice. Using data from 5332 managers, results indicate the instrument has acceptable reliability and validity. Exploratory factor analysis confirms its underlying structure. Generally, the sub‐scales have acceptable internal reliability and inter‐rater reliability at the organizational level (n = 770 organizations). Further, using data aggregated at the organizational level, the sub‐scales are judged to have acceptable validity from the pattern of correlations amongst the six dimensions and with other variables.     

A Multi‐level Dialectical–Paradox Lens for Top Management Team Strategic Decision‐Making in a Corporate Venture

This paper aims to critique the process of corporate‐owned, high‐tech start‐up strategizing through an inductive, longitudinal, case study of ‘UK‐Research‐Tech’. Insights are given through the combined ‘dialectical–paradox’ concept, thereby focusing on where ‘dialectic’ and ‘paradox’ theorizing overlap. This linked iterative, ‘dialogical–dialectic’ research approach also reflects chief executive officer/top management team (CEO/TMT) start‐up dynamics over time. These foci fill important gaps that impede better understanding of dialectical, dialogical and paradoxical forces within strategic decision‐making. As an interpretative tool, they illuminate CEO/TMT strategizing and changing interrelationships affected by broader, volatile, techno‐economic contexts and parent‐company influences on ventures. In this case study, it was found that the CEO's relatively autocratic, parent‐framed approach combined with TMT members' contradictory reactions to create ‘dialectical–paradox’ oppositional forces, eventually only resolved through ‘eleventh hour’ business strategy changes to rescue the venture. This research contributes to more nuanced understandings of corporate‐constrained ventures during early business development from start‐up strategic decisions at parent‐company level to subsequent conditions of more independent dynamic equilibrium. The ‘dialectical–paradox’ conceptual lens contributes an innovative critique of processes affecting strategic decision‐making dynamics. Another important contribution is the empirically inspired conceptual model, developed for use both to guide subsequent case‐study research analyses and as a reflective tool for CEO/TMT strategic decision‐making, especially within corporate‐inspired start‐ups.     

Drawing on the Map: An Exploration of Strategic Sensemaking/Giving Practices using Visual Representations

In this paper we explain how practitioners perform strategic sensemaking with visual representations. Here, we identify four modes of strategic sensemaking/giving: content‐generating, process‐generating, process‐ingraining and content‐ingraining. While each of these modes supports strategic sensemaking/giving by focusing practitioners’ work on specific issues, they also divert practitioners from focusing on key aspects of strategy making. We conceptualize these limitations as ‘blind spots’. As a result, strategic sensemaking appears fragmented and can lead to breakdowns in sensemaking. However, the flexibility of visual representations facilitates strategic sensemaking by allowing practitioners to switch from one mode to another. These findings improve our understanding of the strategic sensemaking/giving practices that are associated with the use of visual representation.     

Systems of organizational sensemaking for sustained product innovation

We map out the systems of sensemaking people use to link market and technology knowledge into new products, in innovative versus non-innovative organizations. Systems of sensemaking are organized “webs of meaning” that govern the knowledge people make sense of, and the sense they make. Innovative sensemaking systems link more knowledge because they: (1) frame linking as hands-on practices of value creation; and (2) loosely couple three tensions between tacit and articulated knowledge across organizational levels to draw in, exploit, and recreate knowledge for innovation. We contrast sensemaking systems in innovative versus non-innovative organizations, and draw implications for theory and practice.     

Sensemaking in Organizations: Taking Stock and Moving Forward

Sensemaking is the process through which people work to understand issues or events that are novel, ambiguous, confusing, or in some other way violate expectations. As an activity central to organizing, sensemaking has been the subject of considerable research which has intensified over the last decade. We begin this review with a historical overview of the field, and develop a definition of sensemaking rooted in recurrent themes from the literature. We then review and integrate existing theory and research, focusing on two key bodies of work. The first explores how sensemaking is accomplished, unpacking the sensemaking process by examining how events become triggers for sensemaking, how intersubjective meaning is created, and the role of action in sensemaking. The second body considers how sensemaking enables the accomplishment of other key organizational processes, such organizational change, learning, and creativity and innovation. The final part of the chapter draws on areas of difference and debate highlighted throughout the review to discuss the implications of key tensions in the sensemaking literature, and identifies important theoretical and methodological opportunities for the field.     

Impact of Information Technology Integration and Lean/Just‐In‐Time Practices on Lead‐Time Performance*

Managers seeking to improve lead‐time performance are challenged by how to balance resources and investments between process improvement achieved through lean/just‐in‐time (JIT) practices and information technology (IT) deployment. However, extant literature provides little guidance on this question. Motivated by both practical importance and lack of academic research, this article examines empirically the relationships among interfirm IT integration, intrafirm IT integration, lean/JIT practices, and lead‐time performance using data from IndustryWeek's Census of Manufacturers ( IndustryWeek, 2006 ). The results provide several new insights on the relationship between IT integration and lean/JIT practices. First, the study confirms that implementing lean/JIT practices significantly reduces lead time. Second, lean/JIT practices mediate the influence of IT integration on lead‐time performance. This suggests that process improvements that result from lean/JIT practices are important contributors to the success of IT integration. Even companies that have experienced success in reducing lead time through lean/JIT practices may benefit from IT integration practices such as those embodied in enterprise resource planning systems. The findings provide managers with empirical evidence and a theoretical framework on the balance between lean/JIT and IT for effecting improvement in lead‐time performance, thus offering practical guidance on this important question. Future research is needed to extend the lean/JIT practices in this study to supply chain practices and explore the relationship between supply chain practices and IT integration.     

Proximity and inter‐organizational collaboration: A literature review

The proximity concept is used in many different ways in the literature. These dimensions of proximity are, however, defined and measured in many different (sometimes even contradictory) ways, show large amounts of overlap, and often are under‐ or over‐specified. The goal of this paper is to specify the different dimensions of proximity relevant in inter‐organizational collaboration more precisely and to provide definitions of these dimensions. The research presented contributes to reducing the ambiguity of the proximity concept as used in the literature. Based on the above, the following research question is addressed in this paper: ‘Which dimensions of proximity are relevant in inter‐organizational collaboration and how are they defined?’ A systematic literature review is presented in order to disentangle the dimensions of the proximity concept. Based on this literature review, three dimensions of proximity relevant in inter‐organizational collaboration are distinguished: geographical proximity, organizational proximity and technological proximity. Examples (case studies) from the literature are used to illustrate the current conceptual ambiguity as well as to clarify how the proposed dimensions of proximity reduce this conceptual ambiguity.     

Exploring the Important Role of Organizational Factors in IT Business Value: Taking a Contingency Perspective on the Resource‐Based View

Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource‐based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in‐depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.     

INTERPERSONAL SENSEMAKING AND THE MEANING OF WORK

In this paper, we present a model of interpersonal sensemaking and describe how this process contributes to the meaning that employees make of their work. The cues employees receive from others in the course of their jobs speak directly to the value ascribed by others to the job, role, and employee. We assert that these cues are crucial inputs in a dynamic process through which employees make meaning of their own jobs, roles, and selves at work. We describe the process through which interpersonal cues and the acts of others inform the meaning of work, and present examples from organizational research to illustrate this process. Interpersonal sensemaking at work as a route to work meaning contributes to theories of job attitudes and meaning of work by elaborating the role of relational cues and interpretive processes in the creation of job, role and self-meaning.     

Emergency risk communication and sensemaking during smoke events: A survey of practitioners

Emergency risk communication (ERC) for smoke emitted from major fires continues to challenge governments. During these events, practitioners (including scientific, communication, and emergency response government staff) are tasked with quickly making sense of the public health risks and the communication options available. Practitioners’ sensemaking—the process of creating meaning from information about an unfolding emergency—is key to effective ERC. This article identifies the factors that ERC practitioners consider the most important to their sensemaking for smoke events. A survey of practitioners (n = 86) was conducted to elicit their views on the level of importance of 22 different factors (individual, organizational, and contextual) on their sensemaking. The results indicate that the majority of the factors tested are very important to practitioners. This finding likely reflects the multidimensional nature of emergency smoke events and provides evidence as to why practitioners are challenged when trying to make sense of emergency situations. Despite multiple factors being considered very important to practitioners, the time-limited nature of emergencies means that practitioners will inevitability be forced to prioritize in their sensemaking efforts. Our results also provide insight into practitioners’ prioritization of different information sources. Specifically, practitioners prioritize their own knowledge and the knowledge of other practitioners. The two most important factors were information from other incident management stakeholders and the practitioners’ past experience. Other information, including community-based and academic knowledge, appear to be of lower priority for practitioners. Based on the study results, recommendations for practice and future research are discussed.     

Using Real‐Time Decision Tools to Improve Distributed Decision‐Making Capabilities in High‐Magnitude Crisis Situations*

Multi‐organizational collaborative decision making in high‐magnitude crisis situations requires real‐time information sharing and dynamic modeling for effective response. Information technology (IT) based decision support tools can play a key role in facilitating such effective response. We explore one promising class of decision support tools based on machine learning, known as support vector machines (SVM), which have the capability to dynamically model and analyze decision processes. To examine this capability, we use a case study with a design science approach to evaluate improved decision‐making effectiveness of an SVM algorithm in an agent‐based simulation experimental environment. Testing and evaluation of real‐time decision support tools in simulated environments provides an opportunity to assess their value under various dynamic conditions. Decision making in high‐magnitude crisis situations involves multiple different patterns of behavior, requiring the development, application, and evaluation of different models. Therefore, we employ a multistage linear support vector machine (MLSVM) algorithm that permits partitioning decision maker response into behavioral subsets, which can then individually model and examine their diverse patterns of response behavior. The results of our case study indicate that our MLSVM is clearly superior to both single stage SVMs and traditional approaches such as linear and quadratic discriminant analysis for understanding and predicting behavior. We conclude that machine learning algorithms show promise for quickly assessing response strategy behavior and for providing the capability to share information with decision makers in multi‐organizational collaborative environments, thus supporting more effective decision making in such contexts.     

Making Sense of Risk—A Sociological Perspective on the Management of Risk

This article describes how risk has been conceptualized in the business and organizational literature through four distinct transformations: from the techno‐scientific perspective to the cognitive, the social‐cultural, and, finally, to the constructionist perspective. Each domain conceptualizes risk in different ways, as organizations have found it difficult to understand and mitigate using the risk management tools available. Conceptualizing risk as sensemaking becomes relevant due to the complexity of information available to the risk manager, and, coupled with time constraints, this means that risk managers increasingly rely on making sense of possible threats rather than on the accuracy of the information received. This shift presents four contributions to the current literature. First, it suggests that the role of risk management is shifting from being technical in nature to being about risk sensemaking, where the manager engages with the social and physical environment with the aim of acquiring cues that could indicate how future events will unfold. Second, a sensemaking perspective implies a shift in the use of risk management systems from being “containers” of knowledge about past risk events to lending legitimacy to the plausibility of the success of future decisions. Third, the role of the risk manager in managing individual risks changes and becomes one of managing everything using the social networks and systems available as indicators of future risk events. Finally, the risk manager and the systems he or she relies upon are regarded as a source of risk in themselves as both act as gatekeepers for organizational risk decision making.     

Applying Co‐occurrence Text Analysis with ALCESTE to Studies of Impression Management

This paper reviews the potential role of co‐occurrence text analysis using ALCESTE, a computerized text analysis program. Using an illustrative case study from the biometric industry, we demonstrate that this method offers a number of advantageous features, including the provision of visual outputs which are useful for interpreting results, the ability to study longitudinally the effectiveness of impression management at the inter‐organizational level of analysis and the possibility of studying large textual data sets without using predefined dictionaries. Meanwhile, key limitations of the method include its limited versatility, its tedious data‐cleaning process and its ineffectiveness in identifying the centrality or tonality of the discourse. Our overall conclusion is that the introduction and more widespread use of this method in management is timely, particularly for scholars interested in studying narrative fidelity and frame amplification.     

Organizational persistence in the use of war gaming and scenario planning

Even though war gaming and scenario planning are widely used in business contexts, there is little evidence that either practice is associated with superior performance. Why, then, spend the costs? In this paper we address this puzzle and suggest why the extant empirical findings have so far proven limited. We consider the development of these practices and find that they have a substantially entangled and overlapping history, particularly at the RAND Corporation in the 1950s. Despite shared historical roots, the treatment of war gaming and scenario planning in the scholarly literature branched out into different streams. This separation is unfortunate because it obscures a better understanding of the premises under which these practices are effective. We propose an analysis of the overlaps and contrasts of war gaming and scenario planning that sets out clear boundary conditions for their use and efficacy. We find that each practice is tailored to provide strategic guidance in a context where the organization is facing different forms of uncertainty. This suggests they may be effective, and thus improve organizational performance, where the relevant uncertainties are operative. Such benefits would be apparent over longer time scales, and only if the relevant boundary conditions are met. However, to the best of our knowledge, no longitudinal empirical test of either war gaming or scenario planning is available. We therefore conclude that more research is needed to ascertain the true relationship between these popular practices and their performance outcomes.     

Perceptions of organization development in South Korea: the use of a sensemaking approach

ABSTRACT

This qualitative study explores how employees engage in sensemaking during Organization Development (OD) initiatives in chaebols, that is, large family-owned firms in South Korea. In adopting a case study approach, semi-structured interviews were conducted with 37 respondents drawn from different levels of a chaebol to address three research questions. First, what key contextual factors are associated with employees’ sensemaking at different levels of an organization? Second, how do individuals at different levels of the organization make sense of an OD initiative through the ‘searching for plausibility’ property of sensemaking? Third, what contextual cues are influential when employees engage in ‘identity construction’ in sensemaking in response to an OD initiative? The findings and implications of the study demonstrate multiple subjective realities, which employees from different levels construct, indicating that the prevailing norms and practice within the existing culture, which have been influential in constructing the identities of employees should be identified when attempting to implement OD to change the organizational culture.     

Reflexive sensegiving: An open-ended process of influencing the sensemaking of others during organizational change

In this paper, we contribute to the understanding of how managers engage in efforts to influence the sensemaking of others without prescribing a specific redefinition of organizational reality, and doing this while trying to empower their subordinates. Through observations of leadership conferences and interviews, we followed an attempt to establish a new management philosophy in the Swedish police. The aim of the initiative was to facilitate the development of independent co-workers with little or no hierarchical support. The results show how managers utilize reflexivity in sensegiving to facilitate participants’ sensemaking. We suggest the following definition for reflexive sensegiving: a multivocal process aiming to influence how the sensemaking and construction of meaning evolves. Reflexive sensegiving has four distinctive features: open-endedness, low control over cues given, several sources of cues, and the encouragement of complexity and ambiguity. Our contribution, which has conceptual and theoretical consequences, is centred around new outlooks on the content, agent(s), and process of sensegiving.     

A Resource‐Based View of Strategic IT Alignment: How Knowledge Sharing Creates Competitive Advantage

A critical decision problem for top management, and the focus of this study, is whether the CEO (chief executive officer) and CIO (chief information officer) should commit their time to formal planning with the expectation of producing an information technology (IT)‐based competitive advantage. Using the perspective of the resource‐based view, a model is presented that examines how strategic IT alignment can produce enhanced organizational strategies that yield competitive advantage. One hundred sixty‐one CIOs provided data using a postal survey. Results supported seven of the eight hypotheses. They showed that information intensity is an important antecedent to strategic IT alignment, that strategic IT alignment is best explained by multiple constructs which operationalize both process and content measures, and that alignment between the IT plan and the business plan is significantly related to the use of IT for competitive advantage. Study results raise questions about the effect of CEO participation, which appears to be the weak link in the process, and also about the perception of the CIO on the importance of CEO involvement. The paper contributes to our understanding of how knowledge sharing in the alignment process contributes to the creation of superior organizational strategies, provides a framework of the alignment‐performance relationship, and furnishes several new constructs.