Portfolio analysis and the product life cycle

This paper explains how the product life cycle and Boston Consulting Group's portfolio matrix can be combined to provide a more comprehensive framework for strategic analysis. The integrated model is more powerful than either concept taken separately because it provides an exhaustive system for classifying a diverse assortment of business units or product/market categories.     

Consolidation and fragmentation in environmental scanning: A review and research agenda

Environmental scanning is a broadly defined concept, having first received attention from scholars in the late 1960s. Over the years a number of similar and overlapping constructs have emerged in management literature. The aim of this study, via a systematic review and thematic analysis of relevant empirical research, is to consolidate foundation environmental scanning knowledge, demonstrate how scanning research has developed and fragmented over time, and propose an agenda for future research. The first contribution of our review is a new typology of environmental scanning research made up of five discrete research views, which provides a more comprehensive and contemporary overview of the field than previous studies. The second is a proposed agenda for future research that explicitly acknowledges the role of technology, an area that is presently underdeveloped in foundation scanning literature. The third contribution is to signpost future directions for research on scanning and organisational performance using a number of theoretical perspectives. The overall outcome of our review is to move scanning research on from increasingly incremental contributions concerned with context to a place where the changing role of technology and the mechanisms through which environmental scanning contributes to competitive advantage can be more thoroughly understood.     

Business models and organization design

Despite a voluminous literature, business model research continues to be plagued with problems. Those problems hinder theory development and make it difficult for managers to use research findings in their decision-making. In our article, we seek to make three contributions. First, we clarify the theoretical foundations of the business model concept and relate them to the five elements of a business model: customers, value propositions, product/service offerings, value creation mechanisms, and value appropriation mechanisms. A clear definition of a business model enables theory to develop systematically and provides coherent guidance to managers. Second, we suggest that value configuration is a contingency variable that should be included in future theorizing and model building. Each of the elements of a business model is affected by a firm's value configuration depending on whether the firm is a value chain, value shop, or value network. Third, we link business models to organization design. We show how organization design is affected by value configuration and how new collaborative organizational forms enable open and agile business models. We derive the implications of our analysis for future research and management practice.     

Organizational Resilience: A Valuable Construct for Management Research?

Recently, the concept of resilience has gained new momentum in organization studies. It is held to be a very promising concept to explain how organizations can survive and thrive amidst adversity or turbulence. However, findings from an earlier review about resilience in the organizational and business context show that, although empirical research on the concept has increased, there is still a need for more clarity in terms of its measurement. The aim of this paper is to present a systematic review of the organizational resilience construct that covers both conceptual and operational issues. We discuss why researchers criticize resilience for being fuzzy and move on to identify and analyse existing literature under the lens of construct development and taxonomies. With this study, we aim to point out conceptual problems for future researchers to address conceptual clarity and to develop a clearer, more parsimonious concept. We conclude with a suggestion about future measurement.     

The wider implications of business-model research

Business-model research has struggled to develop a clear footprint in the strategic management field. This introduction to the special issue on the wider implications of business-model research argues that part of this struggle relates to the application of five different perspectives on the term “business model,” which creates ambiguity about the conceptual boundaries of business models, the applied terminology, and the potential contributions of business-model research to strategic management literature. By explicitly distinguishing among these five perspectives and by aligning them into one overarching, comprehensive framework, this paper offers a foundation for consolidating business-model research. Furthermore, we explore the connections between business-model research and prominent theories in strategic management. We conclude that business-model research is not necessarily a “theory on its own” and that it can be more fruitfully understood as a theoretical mechanism for combining different literature streams. As such, business-model research is positioned as a central connecting component in the further development of the strategic management field.     

Decoupling thinking in service operations: a case in healthcare delivery system design

The notion of decoupling thinking has been well established in the manufacturing operations and supply chain management literature. This paper explores how this decoupling thinking can be applied in service operations and in particular in health care. It first reviews the relevant literature on decoupling fundamentals, the front- and back-office distinction, and new emerging decoupling thinking in service operations. Subsequently, a flow-based framework including content and process is developed for decoupling thinking in service operations. The framework provides an integrated perspective on customer contact, flow driver and flow differentiation (level of customisation). The framework hence, through flow differentiation, introduces the concept of standardisation versus customisation in a service context. This is followed by a health care case example to illustrate how the framework can be applied. The managerial implications are primarily in terms of a modularised approach to system design and management. The framework offers potential for benchmarking with other service systems as well as with manufacturing systems based on the shared foundation in decoupling thinking. Finally, suggestions are provided for further research opportunities derived from this research.     

Deconstructing the Way in which Value Is Created in the Context of Social Entrepreneurship

According to existing literature, the core of social entrepreneurship (SE) knowledge is evolving and, as such, it has made important contributions to theoretical definitions and essential characterizations. However, more theoretical issues need to be addressed before the SE field can be fully explained and understood. In particular, the authors observe in the literature that, within empirical or conceptual studies, almost all authors use the term ‘value’, but seemingly assume the dimensions of value rather than define or analyse its connotations and components. This paper uses the value construct and its multi‐faceted dimensions to deconstruct the way in which value is created in the SE context. The authors argue that an analysis based on value generation, value capture and value sharing provides important insights into the specificity of SE research and can facilitate future theorizing. Through the conceptual lens of this central concept of value emanating from value theory and business model literature, the authors abductively analyse and classify the studies, providing a practical resource. The authors discuss the phenomenon, presenting an integrative framework that facilitates a clearer understanding of the social value creation process and suggest future research areas as openings for theory development in relation to value creation, its main components and flows.     

IT人员业务能力与技术能力的互补性对企业竞争优势的影响

以资源基础观为理论指导,研究IT人员的技术能力与业务能力以及二者的协同效应对企业竞争优势的影响。在已有研究成果的基础上,构建了企业IT人员能力及其互补性与企业经营绩效关联的概念模型,通过对国内300家大中型企业的问卷调查和统计检验,验证企业IT人员的技术能力和业务能力与企业绩效都有着显著的正相关关系,而且这2种能力之间也存在较强的互补性。研究结论显示,技术能力是IT部门人员区别于其他部门的根本,业务能力使IT人员能够更好地理解企业业务,进而充分发挥IT系统的战略作用,产生的协同效应能够进一步提升企业的经营绩效。     

Demand-side strategy and business models: Putting value creation for consumers center stage

Value creation for consumers, as the conditio sine qua non for value capture, is at the heart of demand-side strategy research and is a core element of almost any business model. In this paper, we discuss the unique ideas that demand-side strategy and business model research jointly contribute to the strategy literature, and we elaborate on the potential for cross-fertilization between both areas of study. We argue that both the demand-side perspective and the business model concept could jointly promote a better understanding of strategy-making by mutually relying on the distinctive insights from each stream; specifically, while research on demand-side strategy can help business model scholars gain a more robust and granular understanding of effective value propositions, business models can serve as a “bridging concept” that links the shared ideas of both areas of study to resource-based streams of strategy research.     

A Comprehensive Model for Measuring the Potential Impact of Information Technology on Organizational Strategic Variables*

The existing literature on the impact of information technology (IT) does not include rigorous theory building or empirical studies. This research seems to be the first comprehensive investigation towards the development of an empirically validated comprehensive model for understanding the potential impact of IT on organizational strategic variables. More specifically, organizational and industrial variables that appeared to be affected by IT are identified, measured, and operationalized in the form of a comprehensive model. This study is based on structured interviews with a carefully selected sample of 31 strategic managers who had experience using IT for strategic decisions. In addition, the variables included in the model are well grounded in the information systems literature. The variables are then empirically validated and their reliabilities critically tested. A comprehensive model is derived from these validated variables. The model is a first step towards measuring the overall potential impact of IT on an organization. The model can also be used to gauge IT's potential impact on individual strategic variables. A set of hypotheses is also presented for future research. The hypotheses primarily relate to the impact of IT on organizational strategic performance. The model provides an empirically validated foundation for testing of such hypotheses.     

Re-examining systematic literature review in management research: Additional benefits and execution protocols

A systematic literature review provides a comprehensive overview of literature related to a research question and synthesizes previous work to strengthen a particular topic’s foundation of knowledge, while adhering to the concepts of transparency and bias reduction. In the growing, complex, and dynamic, management research field, systematic literature reviews have value, yet there is relatively little work published describing how management researchers might apply this approach. In explaining the purpose of systematic reviews, we define a systematic review and describe its rationale. We then discuss how systematic literature reviews may enhance management research and address current management research shortcomings. We present a detailed systematic literature review execution guideline, outlining systematic literature review steps, and providing keys to effective implementation.     

Partitioned pricing: review of the literature and directions for further research

Partitioned pricing (PP) has received increased attention in both managerial practice and academic literature. The fragmented nature of existing research, terminological and conceptual inconsistencies, and ambiguous findings regarding performance implications of PP underscore the need for an organization of the PP literature. This article provides four major contributions to the literature. First, it develops a new definition of PP based on a critical evaluation of the current body of literature and an analysis of key characteristics of the concept. Second, this article discusses the primary theoretical perspectives used to explain PP, which provides insights into the theoretical foundation of the concept and impetus for future studies on PP. Third, this article presents a review of the state-of-the-art in research on PP and provides managers with guidelines about when and how to apply this pricing tactic. Finally, this article identifies overarching limitations of prior PP research and outlines avenues for further research.     

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.     

How effective are models?

This article discusses a number of common interpretations of ‘implementation’ in the literature, and how these have been confused. Various different levels of implementation are then discussed, including the concept of model effectiveness. This is concerned with both the operational effectiveness of the model, as shown by a tangible improvement in the system modelled, and the personal effectiveness in helping users learn more about the system itself. Research is then described to explore various aspects of model usage and effectiveness. The research took place in the context of a business game used by a large number of practising managers. An unusual feature of the game was the fact that participants were offered the use of a number of models to aid their decisions. The usage of the models, and their effects, were measured objectively. Results showed that models were used extensively, and their effects were advantageous in a number of ways. The implications of this work are discussed.     

Making the Business School More 'Critical': Reflexive Critique Based on Phronesis as a Foundation for Impact

This paper explores how the business school can become more critical by advancing the notion of reflexive critique . Drawing on diverse literatures propounding a critical perspective, this paper integrates the various interpretations of 'what it is to be critical' and proposes phronesis as a foundation for responding to and extending the relevance and rigour debate by articulating what it means for business schools to have a critical impact on management practice. A phronetic analysis of management education provides an innovative lens for understanding the power of critique in engaging academics and business practitioners in the co-creation of knowledge. This is illustrated by distilling the main insights from the experience of introducing an innovative course entitled 'Critical Thinking' offered to MBA students over a five-year period. The paper discusses the importance of critique in the business curriculum and explains the rationale for introducing the course and its objectives, as well as the learning and teaching techniques employed. The analysis considers how reflexive critique can be a platform for integrating a critical analysis of management informed by management research and academic thinking in relation to business practitioners' practical experiences of managing. The paper concludes with a review of the main lessons learned and the implications for future initiatives intended to foster engagement of theory and practice and the collaboration of academics and business practitioners.     

Configuring a new business model through conceptual combination: The rise of the Huffington Post

How a successful business model (BM) is designed is a key question in the business model innovation (BMI) literature. Delving on the shared concept of BM as a configuration of components and interdependencies, we take a cognitive perspective to study the conceptual combination as a central process in BMI. We investigate the complexity of conceiving a new BM configuration, through a longitudinal study of the emergence of “The Huffington Post” which combined newspaper and blog in a disruptive and successful BM. With our research we theoretically frame the dynamic interplay between the three cognitive mechanisms of conceptual combination and the system of interdependent components of an emerging BM. Our findings unveil how the overall process unfolds and specifically delves into the dynamic iteration of composing and experimenting with the new configuration until the overall coherence is reached. Hence, we advance the literature by showing how the conceptual combination of a new BM is a complex effort and comprises some iterative cycles, vital to reach a coherent configuration which could secure a superior performance.     

Darwinism, probability and complexity: market-based organizational transformation and change explained through the theories of evolution

The study of transformation and change is one of the most important areas of social science research. This paper synthesizes and critically reviews the emerging traditions in the study of change dynamics. Three mainstream theories of evolution are introduced to explain change: the Darwinian concept of survival of the fittest, the Probability model and the Complexity approach. The literature review provides a basis for development of research questions that search for a more comprehensive understanding of organizational change. The paper concludes by arguing for the development of a complementary research tradition, which combines an evolutionary and organizational analysis of transformation and change.     

Leveraging global sources of knowledge for business model innovation

This article explores the concept of leveraging global knowledge for business model innovation, whereby knowledge is transferred across space and firm boundaries for the reconfiguration of an incumbent firm's business model. Considering the implications of an ever-increasing fragmentation of global value chains and the associated dispersion of global knowledge sources, we propose that supply chain partners at foreign locations can provide valuable knowledge that incumbents can leverage to change their business model. Integrating insights from global supply chain, business model, and organizational learning literature, we theorize and empirically test how different organizational capabilities enable firms to acquire knowledge from foreign partners, integrate external with internal knowledge, transform knowledge through experimentation, and finally apply global knowledge in the form of business model innovation. We conclude with suggestions for future research.     

Developing expert systems for management applications

The Alvey Report has resulted in a growing interest in the UK in ‘expert systems’. It is fairly generally accepted, at least in the UK, that such systems function in a particular type of way, i.e. they arrive at decisions through a process of rule based inference. It is suggested that it may be more fruitful to regard rule based inference as one approach to the construction of expert systems, and that proven techniques of operational research may well be more useful in constructing other types of expert system. Alternative applications of expert systems are derived on the basis of a broader definition of an expert system in terms of what it does rather than how it does it. A parallel is drawn between these applications and some typical concerns of business research. It is suggested that a useful aid in identifying promising business applications of expert systems is to set up four ‘dimensions’ along which different types of system differ. Examples are given of where other techniques might conceivably be useful in applications of expert systems.     

International Experience in International Business Research: A Conceptualization and Exploration of Key Themes

International experience, the experience that firms accrue from operating internationally, is a key concept in explaining firm internationalization. This paper reviews the conceptualization of international experience in the international business literature. It highlights how prior research has identified three dimensions of the international experience construct (length, scope and diversity), thereby demonstrating that international experience should be treated as a multidimensional construct. In addition, intensity is presented as a fourth and novel dimension of international experience. The importance of this multidimensional conceptualization is highlighted in an explanation of why the international diversification and international experience constructs are not synonymous. In light of the importance of international experience in explaining firm internationalization, the authors explore how the source of the firm's international experience will determine the limits to its application in foreign markets. In particular, the authors distinguish between location‐bound international experience and non‐location‐bound international experience as sources of firm‐specific advantages (FSAs). The FSAs that the firm develops from its experience with equity and non‐equity entry modes are presented as examples of specific FSAs developed within the firm's bundle of FSAs concerning internationalization. The paper concludes with some implications of the conceptualization of international experience for several issues of international business research as well as providing managerial implications.