Managing strategic change in a mature business

The article draws on the experience of four sectors of the U.K. economy to suggest what the competetive conditions of the next decade might look like. The distinction is made between barries to entry and barries to success. Strategic management in the more successful companies appears to involve the common ability to sustain strategic flexibility. The majority of the piece indicates how this quality has been fashioned and how the process of its creation and maintenance has been managed in the companies concerned. Evidence from the four sectors is used to speculate on some of the key determinants of strategic flexibility in the 1990s.     

Management development in small firms

This paper is a review of the literature concerning management development in small firms. It looks at the benefits in terms of growing a small firm and whether the lack of management skills contributes to their failure. In addition, this paper looks at some of the barriers to management development, including the attitudes and characteristics of the entrepreneur, and also looks at learning models that may be appropriate for small firms. The paper also looks at the authors’ views on the effectiveness of management development for small firms, the barriers to learning as well as the skills required. Management development programmes are now widely accepted as a means of improving the competitiveness of firms and the economy as a whole. Although management education and training has, in the past, been designed mainly for larger firms, there is a growing awareness of the requirements of small businesses. Government initiatives designed to encourage start‐ups and to boost the growth of small firms have emphasized the importance of management development. This review of the literature shows that, on balance, management development programmes are effective for small firms. The main benefits appear to be survival and growth, reduction in failure and improvement in performance. The skills required include leadership and management, developing management systems and techniques and team building. Other skills include planning, delegation and financial management. The paper concludes that there is a need for further research into the effectiveness of management development programmes, the skills required and the barriers to learning in small firms and, also, whether they have an impact on the survival, growth and profitability of small firms.     

Strategies for business model innovation: How firms reel in migrating value

This paper brings together firm-level research on business models and industry-level research on value migration to examine patterns of business model innovation. We draw on qualitative data from 14 cases and 68 interviews in the computer and telecommunications industries to demonstrate how business model innovation is sensitive to industry-wide forces of value migration. Based on our analysis we conclude that when value is rapidly migrating across industries and between firms, proactively substituting key elements of the primary business model provides a better fit with the new value landscape than launching secondary business models in parallel. We suggest four underlying mechanisms that link business model innovation, value migration and subsequent outcomes. Unpacking business model innovation allows us to discuss contingencies for the main business model strategies, specifically in terms of limitations to—and opportunities of—changing the primary business model and the practice of parallel business models.     

商业集团从属企业合法性双元与成长绩效关系

根据商业集团从属企业双重身份的特点,分析了其合法性的双元属性,并提出了合法性双元的概念． 在此基础上,文章将合法性双元解构为平衡和联合两个维度,分别分析了两者与从属企业成长绩效之间的关系,以及他们对从属企业成长产生作用的内在机理． 实证结果表明资源获取对联合维度与从属企业成长绩效的关系具有显著的中介作用,而平衡维度与成长绩效的关系未得到实证支持． 文章还进一步探讨了对合法性双元与从属企业资源获取关系的调节性因素,实证结果表明环境不确定性正向调节联合维度与资源获取的关系,而对平衡维度与资源获取的关系具有反向调节作用; 环境包容性反向调节联合维度与资源获取的关系,而对平衡维度与资源获取的关系具有正向调节作用．     

Crafting business models for conflicting goals: Lessons from creative service firms

The business model construct has become attractive to both managers and academics. It reflects how the most important organization's strategic and tactical choices regarding the allocation of resources interact in order to create and capture value. Yet with the growing entrepreneurial complexity, managers often end up pursuing conflicting and even paradoxical strategic goals, thus rendering the business modelling processes more complex, too. Well-known examples are profit versus social value, stakeholder versus company interests, exploration versus exploitation and environmental sustainability versus economic returns. The academic business model literature so far has provided limited insights on how to implement business models beyond a single goal and focused mainly on the initial strategic choice of a business model, ignoring that such salient tensions are often persistent and resurface within the business practice. In this study we leverage paradox theory to investigate how managers of creative firms make tactical choices to accommodate (not solve) salient tensions within their business models, focusing on the domains like services provided, choice of clients, networking and resourcing practices, revenue models and new venture creation. Based on qualitative case study research, we found four integrating and three differentiating decision-making tactics that managers deploy to create both economic and creative value through their business models. Adding to the business model theory, we show how business models are crafted in managerial practices by making tactical decisions to solve conflicts and paradoxes. The results equally enrich the paradox literature by providing for tactical-level approaches toward working through the paradox.     

Internationalization, innovation and entrepreneurship: business models for new technology-based firms

New technology-based firms, particularly those that develop their business around a new technological platform, are likely to be impacted by globalization, in terms of both pace of innovation and pressure of competition. For these firms, strategic decisions and growth processes are characterized by a deep inter-relationship amongst the processes of internationalization, innovation and entrepreneurship; processes which have tended to be examined independently in distinct bodies of literature. In practice strategic decisions concern each of these processes and address issues such as organizational boundaries, location of the operational activities, what activities to focus on and selection of value partners. The business model by which firms operate needs also to accommodate the spatial dimensions indicated by globalization; and the emergence of global technology markets. Little is known to date about the extent to which business models accommodate or are adapted to internationalization, innovation and entrepreneurship. This paper presents a review of the business model literature from which a generic business model framework is derived, identifying and introducing the main elements of these processes as the firms?? focus, modus and locus. This contribution makes a clear distinction between the business model and the strategy concepts and highlights the relevance of location decisions??not considered by extant business model literature to date. While our discussion draws on the high technology new venture as our primary example, we believe our business model conceptualization has general applicability.     

高峰对话姚景源:低谷期的转型新商机 稳增长要与调结构、转方式、惠民生、稳物价相结合

中国经济增长速度已连续7个季度处于下行状态,从去年一季度的9.7%下调到今年三季度的7.4%。中国经济下行的原因是什么?中国企业如何在经济低谷实现转型升级?如何找到变革中的商业机会?国务院参事室研究员、国家统计局原总经济师姚景源在出席2012(第六届)中国CEO年     

A business development approach to planning

In recent years there has been disappointment within industry at the relative failure of strategic planning techniques to contribute significantly to improved business success. Furthermore, this disappointment has tended to grow as planning specialists and academics have developed more complex planning techniques in terms of quantitative and financial models to counter the problem.

In this article, the author states that strategic planning needs to be project oriented, i.e. to adopt a business development approach rather than the present technique of a procedural oriented approach, if the potential rewards are to be realized in practice.     

Startups internationalizing in quest of a business model: The global prospecting of process niche firms

This paper examines technology startups whose initial offering is not a tangible product or service, but rather a technology used in the production process of goods and services of other firms. These “process niche firms,” as we call them, represent an emerging and increasingly common feature of the digitized economy. As part of their search for a suitable business model – be it products, services, and/or outright licensing of intellectual property – process niche firms engage in early internationalization in order to gain relevant market knowledge and identify possible business partners. A framework is derived to examine the internationalization pattern of such firms. The paper draws on four illustrative case studies providing insight into how such process niche firms “prospect” in foreign markets prior to deciding on the business model that suits them best. Early in their life cycle, process niche firms may decide to locate their headquarters in a different country in closer proximity to relevant markets and partners, as their high knowledge intensity and dearth of tangible assets makes them highly movable. Later in their development, process niche firms will likely evolve into other types of firms, depending on the business model they ultimately choose and the process that they follow.     

Innovation development in biopharmaceutical start-up firms: An Italian case study

The aim of this paper is to analyze the business models and the strategic competences of the new Italian biopharmaceutical firms allowing them to successfully overcome the initial stages of starting up. A multiple case studies methodology was used. In particular, a thorough analysis of four Italian biopharmaceutical firms that have recently started up and shown significant innovative output was carried out. The results of this study revealed that the start-up success factors consist of competencies that are distinct and different depending on the type of business models founded: the excellence in quality, the ability to create and manage relationship networks, the technical and managerial capabilities are the strategical competences emerging from the case studies examined.     

The ISO 9000 international quality registration: An empirical analysis of implications for business firms

The purpose of this article is to explore managerial perceptions of ISO 9000 standards. Previous surveys found general agreement that ISO 9000 registration influenced supplier selection, improved customer satisfaction, and enhanced operating efficiency. The present survey of production managers in 212 U.S. locations gathered data related to the perceived impact of registration on their businesses. Data analysis suggests strong agreement with benefits provided by improved documentation, the use of ISO 9000 as a marketing tool and greater export potential as a result of implementing these standards. Respondents did not agree that ISO 9000 provides positive benefits in product development or reduces production time. Annual sales were included to determine if there is a difference in perceived impacts based on firm size. Managers of smaller firms held a stronger belief that ISO 9000 registration results in cost reduction and increases export potential than did large firm managers. Small firms with less well developed export connections may find ISO 9000 registration useful in helping to establish a reputation that will help make the necessary connections in the export markets. The improvements in documentation of products and process may highlight areas of potential production efficiencies and possible cost reductions.     

Searching for innovation: Product,process, and business model innovations and search behavior in established firms

Prior research indicates that search practices are an important part of the innovation process. But where established firms search for different innovation types is not clear. Drawing on knowledge-based theory of innovation and using state-of-the-art statistical techniques (copula with Bayesian inference), we find that established firms predominantly rely on several external sources (broad external search) when introducing new business models, on internal and external sources with high intensity (deep search) when innovating processes, and on broad and deep external search when innovating products. We explain that broad external search is important for business model innovation (BMI) because increased exploration is needed when introducing new business models that rely on general rather than specialized technical or tacit business knowledge. We contribute to the innovation and business model literatures by nuancing the differences between innovation types (BMI, product, and process innovation) and the associated search behavior. It is important to consider these differences because they give us clues to understand how established firms can explore unfamiliar territories through BMI.     

Explaining performing R&D through alliances: Implications for the business model of Italian dedicated biotech firms

In recent years management scholars and practitioners have been interested in Research and Development (R&D) partnering, especially in high-tech industries. While the motivations of research partnership formation have been widely explored in literature, little attempt has been undertaken to examine the effects of research partnerships on R&D productivity and the implications for business models of the new ventures. In this paper we try to shed some light on the business models of the young ventures involved in R&D partnerships and their effect on R&D productivity. Our hypotheses are that experience in previous alliances, repeated partnerships and tight relationships have positive effects on R&D productivity while rigid governance structures and public R&D subsidies have negative effects on such productivity. We discuss how these aspects affect the business models of biotech firms. We test our hypotheses on a sample of 55 Italian DBFs (Dedicated Biotech Firms). Results support our hypotheses. Managerial implications and further issues for future research are discussed.     

International business and institutional development in Central and Eastern Europe

Since the early 1990s, Central and Eastern Europe has attracted international business research into the interaction between radical societal change and business development in these emerging market economies. This research has effectively utilized institutional theories, and thus revealed limitations of similar applications in other contexts, while setting the stage for more refined argumentations, especially with respect to rapidly changing contexts. This introductory paper outlines both economic and the sociological perspectives on the influence of institutions on business, and thus sets the stage for this Special Issue. On this basis, we introduce the five papers in this special issue, and outline an agenda for future research.     

Knowledge management challenges in new business development: Case study observations

This paper's focus is on the knowledge management challenges that come along with technology-based new business development (NBD). NBD thrives upon the exploration of knowledge, under radical uncertainty. Furthermore, existing knowledge may both enable and constrain the radical innovation process. These characteristics make the dominant approach of knowledge management – focusing on codifying, collecting and distributing knowledge – unsuited for NBD. We suggest that knowledge management can enhance NBD by focusing on experimenting, monitoring and integrating knowledge. This is illustrated by case study observations of radical innovation processes.     

Strategic management: New ventures and small business

This paper examines the factors influencing the formulation and implementation of strategy in new and small firms. Small businesses vary substantially in their resource positions, the goals of their founders and their potential. They also vary in stage of development: thus strategic management is examined separately in the start-up stage, the early-growth stage, and the later-growth stage. Intracorporate entrepreneurship in established firms is also considered. Despite this diversity, small firms create an environment for strategic management in which both the opportunities and constraints are different from those in large organizations.     

Innovation and market development: the experience of small firms in a peripheral economy

This paper summarises some results from a study of innovation in the small firm sector in Northern Ireland. Following a discussion of the nature and extent of innovative activity, and of the motives for innovation, the paper focuses on the relationship between performance, as measured by changes in turnover and export market development, and innovation.