Transforming an industry in crisis: Charisma,routinization, and supportive cultural leadership

This article narrates the saga of how leaders in the highly competitive U.S. semiconductor manufacturing industry framed their future as a struggle for survival against an unprincipled adversary and thus generated an industry-wide strategy for battling the competition. Their strategy amounted to a social experiment in that it required unprecedented cooperation from members of the industry. Our account and analysis focus on four remarkable, interrelated aspects of this saga: (1) how these leaders linked their actions to support the charisma of their central leader—Robert Noyce—who became the first CEO of the resultant consortium; (2) how the participation they shared in the saga of the founding and growth of the U.S. semiconductor industry, especially at Fairchild Industries, provided a basis for their later cooperation; (3) how they created an unusual participative and democratic culture at Sematech; and (4) how Noyce's vision persisted after his death through various forms of routinization established earlier. Five bodies of qualitative data generated in two independent series of investigations inform this study. They include two sets of in-depth interviews with participants at various levels, extensive archival data, ethographic observations, informal conversations and interviews, and information supplied by a key informant.