Strategic Management in the 21st Century. Theories of Strategic Management

Historical Development and Overview of Strategy Theory Major Theories of Business Strategy INTRODUCTION Why Study Theories of Business Strategy?A Framework for Major Theories of Business Strategy PRODUCT-MARKET-BASED VIEWS OF BUSINESS STRATEGY The Product-Market Growth Matrix Three-Dimensional View of Product-Market Decisions Miles and Snow Typology Limitations of Product-Market-Based Views of Business Strategy INDUSTRY-BASED FOUNDATIONS OF BUSINESS STRATEGY Competitive Forces Generic Competitive Strategies RESOURCE-BASED THEORIES OF BUSINESS STRATEGY The Resource-Based View (RBV)Knowledge-Based View (KBV)Dynamic Capabilities COMPETITION-BASED THEORIES OF BUSINESS STRATEGY Strategic Conflict Competitive Dynamics Theory CONCLUSION Future Directions in Business Strategy Theoretical Development Managerial Implications NOTES REFERENCES Early Concepts of Strategy INTRODUCTION Wal-Mart: A Classic Success Story Polaroid: A Classic Case of Strategic Failure STRATEGY AND STRATEGIC MANAGEMENT Strategic Decisions Strategic Managers THE EVOLUTION OF STRATEGIC MANAGEMENT EVOLUTION OF THEORIES IN STRATEGIC MANAGEMENT Transaction Cost Economics Game Theory Agency Theory Resource-Based View (RBV)Industrial Organization (IO) Theory APPROACHES TO STRATEGIC MANAGEMENT: HISTORY TO PRESENT NOTES Dealing with Complexities: The Role of Management Frameworks INTRODUCTION MANAGEMENT FRAMEWORKS OVERVIEW SOME MANAGEMENT FRAMEWORKS WORK BETTER THAN OTHERS MCKINSEY 7S MODEL THE 5PS MODEL BY PRYOR, WHITE, AND TOOMBS THE BALANCED SCORECARD AND STRATEGY MAPS ACCENTURE'S ADVANCED PERFORMANCE MANAGEMENT SOLUTION THE TOWARD PERFORMANCE EXCELLENCE FRAMEWORK THE SIX PERFORMANCE DRIVERS THE SPIDER CHART TPE IMPLEMENTATION CONCLUSIONS NOTES Strategy Theories Transaction Cost Economics INTRODUCTION A BRIEF HISTORY WHAT ARE TRANSACTION COSTS?Bounded Rationality Opportunistic Behavior Risk Preference CRITICAL DIMENSIONS Uncertainty Transaction Frequency Asset Specificity MODIFIERS Small Numbers Exchange Information Asymmetry and Impactedness Trust and Reputation Market Power HOW COSTS ARE CREATED Search Contracting Monitoring Compliance Bureaucracy Negotiating Coordination Monitoring Enforcement How Governance Structure Is Chosen Market Hierarchy Hybrid MANAGEMENT IMPLICATIONS Governance Recap NOTES Resources and Dynamic Capabilities: The Foundations of Competitive Advantage INTRODUCTION THE FOUNDATIONS OF THE RESOURCE-BASED VIEW THE VRINO FRAMEWORK Valuable Rarity Difficult to Imitate and Nonsubstitutable Organized to be Exploited Applying the VRINO Framework THE DYNAMIC CAPABILITIES PERSPECTIVE ROUTINES AND CAPABILITIES NOTES Options and Strategic Management BACKGROUND IRREVERSIBILITY UNCERTAINTY REAL OPTION VALUATION ITERATIVE INVESTMENT AND COMMITMENT A PORTFOLIO OF OPTIONS VERSUS AN OPTION ON A PORTFOLIO UNIQUE VALUE ADDITIONAL UNIQUE OPPORTUNITY RECOGNITION UNIQUE DISCOUNT RATES INPUT MARKET ADVANTAGES RISK ACCEPTANCE PERCEIVED VALUE AND BENCHMARKING CONCLUSION NOTES Managing Organizational Trust in the 21st Century: A Pragmatic Approach to Trust Development, Maintenance, and Repair OVERVIEW OF TRUST Trustworthiness Transparency Emotional Attachment PRACTICAL GUIDANCE Trust Development Trust Maintenance Trust Repair CONCLUSION NOTES Hypercompetition in the 21st Century: A Look Back and a Look Forward INTRODUCTION A LOOK BACK Sustained Competitive Advantage The Disruption of Hypercompetition The Age of Temporary Advantage INTERLUDE: FOUR ARENAS ANALYSIS The Cost-Quality Arena The Timing and Know-How Arena The Strongholds Arena The Deep Pockets Arena A LOOKAHEAD The Cost-Quality Arena The Timing and Know-How Arena The Strongholds Arena The Deep Pockets Arena SUMMARY: A WORLD THAT PINES FOR "MORE GENTEEL LEVELS OF COMPETITION?"NOTES REFERENCES Strategy and Entrepreneurship—A Discussion of Strategic Entrepreneurs INTRODUCTION THE ENTREPRENEUR AND THE NOTION OF VISION SOME HISTORY OF ECONOMIC THEORIES UNDERLYING ENTREPRENEURSHIP Classical Capitalist Economic Theory Neoclassical Theory Schumpeterian Vision Evolving Views of Entrepreneurship TYPES OF ENTREPRENEURS: A CATEGORIZATION CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS Stevenson's Six Dimensions The Mind of an Entrepreneur—Timmons' Work Characteristics of Entrepreneurs—Bygrave's Work THE PROCESS OF ENTREPRENEURSHIP INFLUENCING THE ENTREPRENEURIAL ENGAGEMENT—A MOTIVATIONAL ASPECT ENTREPRENEURSHIP VERSUS INTRAPRENEURSHIP Examples of Intrapreneurial Activities STRATEGIC ENTREPRENEURSHIP STRATEGIC ENTREPRENEURSHIP— CONCEPTUAL FRAMEWORKS INTEGRATING ENTREPRENEURSHIP WITH STRATEGY ENTREPRENEURSHIP EXTENDS ITS INFLUENCE— THE RISE OF THE SOCIAL ENTREPRENEUR Social Entrepreneurs—Past and Present CONCLUDING THOUGHTS NOTES The Competitive Advantage of Strategic Alliances: Companies Profiting from Partnerships with Competing and Noncompeting Companies INTRODUCTION EVOLUTION OF ALLIANCES MOTIVATIONS FOR ENTERING INTO A STRATEGIC ALLIANCE DRAWBACKS OF ALLIANCES MANAGING ALLIANCES WITH COMPETITORS AND NONCOMPETITORS CONCLUSION AND SUGGESTIONS FOR CREATING SUCCESSFUL ALLIANCES NOTES Strategic Integrity Management as a Dynamic Capability INTRODUCTION THE SOURCE OF CORPORATE INTEGRITY ISSUES POSITIONING WITHIN THE ORGANIZATIONAL CONTEXT FIVE REASONS TO INVEST IN AN INTEGRITY MANAGEMENT PROGRAM BASIC PRINCIPLES FOR AN EFFECTIVE INTEGRITY MANAGEMENT PROGRAM BASIC PRINCIPLES FOR AN ORGANIZATIONAL SET-UP OF AN INTEGRITY AND COMPLIANCE DEPARTMENT ELEMENTS AND CORE ACTIVITIES OF AN EFFECTIVE INTEGRITY AND COMPLIANCE PROGRAM Establishing Integrity Standards Promoting Responsible Behavior Responsible Leadership Integrating Values and Integrity Standards Training Enforcing Integrity Standards Decision Making Monitoring and Reporting Whistle-Blowing Independent, Internal Assurance CONCLUSIONS NOTES Strategic Value Management: A New Generation of Strategic Management Thinking INTRODUCTION LITERATURE REVIEW Sources of Firms' Economic Performance The Link between Stock Value Creation and Strategic Management THE FIRST DIMENSION OF SVM: PROFITS DRIVEN BY COMPETITION Takeaways THE SECOND DIMENSION OF SVM: SALES GROWTH-DRIVEN INNOVATION Innovation and Resources Strategies Growth and Stock Value Creation Takeaways THE THIRD DIMENSION OF SVM, CAPITAL DRIVEN BY RESOURCES Resources Part 1: Physical versus Intellectual Capital Resources Part 2: Unique, Inimitable and Rare Resources to Boost Market Power and Innovation Resources Part 3: Resources Developed Internally versus Acquired versus Shared Organizational Resources Takeaways SVM'S APPLICATION TO SUSTAINABILITY From "Quest for Value" to Quest for Values Takeaways SVM FOR A GOVERNMENT AGENCY, ARMED FORCES, NONPROFIT ORGANIZATIONS CONCLUSION APPENDIX: LITERATURE REVIEW Literature Related to Market Power and Resources Literature Related to Growth and Resources Literature Related to How to Measure a Firm's Economic Performance, and Its Connection with Industry and Firm's Factors Literature Related to Models to Measure a Firm's Economic Performance Literature Related to Concentration as a Proxy of Market Power Literature Related to Entry Barriers as Components of Market Power Literature Related to Intellectual Capital NOTES About the Editors and Contributors