Session Details: Session 1092

Dynamic Strategies and Resources

Track F

Date: Wednesday, October 15, 2008


Time: 11:30 – 12:45


Room: Salon 21

Session Chair:
Tomi Laamanen, University of St. Gallen

Title: Can Dynamic Capabilities Explain Idiosyncrasies In Process Innovation? Comparative Case Insights on the Firm Institutional Level


  • Michael Horn, Harvard University
  • Ina Horn, University of Wuppertal
  • Carsten Zimmermann, University of San Diego

Abstract: We analyze the influence of different incentive systems within corporate governance on the development of dynamic capabilities and the concomitant association with process innovation. Comparative case evidence of ‘American’ versus ‘German’ firm level institutions within the pharmaceutical industry suggests that higher-order resource reconfiguration routines are established idiosyncratically and on different organizational levels. Based on 62 face-to-face interviews we argue that more ‘American’ firm-level institutions and the 'uncertainty' associated with them drive, rather than hinder, the emergence of simple, loosely coupled, higher-order routines underlying a radical approach to process innovation. Also, we find that within the same industrial setting these routines co-exist with more perception-based, simple decision routines.

Title: Dynamic Diversification Strategies: In Search of an Optimal Organizational Scope


  • Tomi Laamanen, University of St. Gallen
  • Philip Rosenzweig, IMD
  • Petteri Tulikoura, Helsinki University of Technology

Abstract: This paper extends the existing research on the antecedents and consequences of organizational scope setting decisions. We examine why some firms choose focus strategies while others choose to diversify. Furthermore, we investigate the consequences of these decisions. Based on an analysis covering all the over 850 public U.S. biotechnology and pharmaceutical firms and their over 60,000 patent applications from 1980 to 2005, we find that these biopharmaceutical firms have a tendency to gravitate to the mean in their business scopes. This mean reverting tendency of the most focused and the most diversified firms would seem to imply that there is an optimal technological scope that the firms are targeting at. Our finding contributes to an improved understanding of the dynamics of diversification patterns.

Title: Revisitng Value Dynamics Between Product Service Activities within Manufacturing Firms


  • Ivanka Visnjic, ESADE Business School
  • Bart Van Looy, University of Leuven

Abstract: Manufacturing firms often diversify into related service activities due to expected leverage effects of existing technological expertise, customer relationships and brand identity. At the same time, based on arguments forwarded by economical theories on multiproduct firms, advantages related to the presence of both products and services within one and the same firm could be conceived as mutual rather than merely unidirectional (from products to services). Within this contribution we examine empirically whether and to what extent the deployment of product and service activities influence each other. When examining product and service sales of 48 national subsidiaries of a large international equipment manufacturing company by means of fixed effect panel data models, the presence of mutually beneficial influences becomes apparent. Moreover, adopting more sophisticated service models generates additional beneficial effects. Managerial implications and implementation as well as directions for further research will be discussed.

Title: The Dynamic Diffusion Process of Downsizing in Korea 1997-2006


  • Sookyoung Lee, Northwestern University
  • Hicheon Kim, Korea University

Abstract: What makes organizations adopt new practice or resist against change? Previous studies on institutionalization or deinstitutionalization reported economic pressures, social pressures, and institutional pressures as drivers to new practice. With 744 listed firms in Korea, we test the effect of economic performance, firm heterogeneity, and population-level adoption on downsizing. In particular, since the interaction between important stakeholders varies according to the context, the role of firm heterogeneity on downsizing is expected to vary across time. Specifically, we will show the different diffusion process of downsizing in the IMF period and in the post-IMF period. Comparison with previous results from other country setting and discussion about the role of stakeholders will be followed.

All Sessions in Track F...

Mon: 11:15 – 12:30
Session 1089: Make, Ally or Buy
Session 1096: Executive Compensation
Mon: 15:30 – 16:45
Session 1086: Alternative Views of Value Creation
Session 1090: CEO Pay
Session 1107: Executive and External Forces in Strategy
Mon: 17:00 – 18:15
Session 1091: Impression Management
Session 1098: Social Networks
Tue: 11:15 – 12:30
Session 1093: Succesion and Team Dynamics
Session 1103: Social and Human Capital
Tue: 14:30 – 15:45
Session 1095: Diversification
Session 1105: Governance Perspectives
Wed: 10:00 – 11:15
Session 1104: Managing Alliance Relationships
Session 1106: New Corporate Strategy Perspectives
Wed: 11:30 – 12:45
Session 1088: Acquisitive Growth Strategies
Session 1092: Dynamic Strategies and Resources

Strategic Management Society

Cologne Conference