Session Details: Session 1116

The Different Roles of Strategy Tools

Track J

Date: Monday, October 13, 2008

 

Time: 15:30 – 16:45

Common Ground

Room: Salon 19


Facilitator:
Sari Stenfors, Stanford University

Title: Chunky versus Incremental Growth: How to Expand a Search Domain

Authors

  • Oliver Baumann, University of Southern Denmark
  • Nicolaj Siggelkow, University of Pennsylvania

Abstract: The challenge of finding good solutions to a growing, complex set of decisions denotes a general class of problems in design and strategy. Yet how should a firm structure this growth in order to reach high performance? For instance, should a component maker transform itself into a supplier of complex systems by slowly adding components one-by-one or by tackling the entire system in an integrated approach from the very beginning? We use an agent-based simulation model to probe into the effects of growing a search domain in different ways. Among other findings, our results make a case for incremental growth: when dealing with a highly interdependent system, expanding a search domain step by step rather than in large chunks yields a distinct performance advantage.

Title: Coopetition and Business Intelligence: An Empirical Study of High Technology Industries in Europe

Authors

  • David Salvetat, GSCM - Groupe Sup de Co Montpellier
  • Frédéric Le Roy, University of Montpellier

Abstract: Business Intelligence (BI), traditionally an instrument dedicated to defending and gaining
market positions, is essentially part of an aggressive notion of relationships between
competing companies. Nevertheless, all-out rivalry is becoming less and less frequent and has been replaced by “coopetition” behaviour, which blends competition and cooperation. This raises the question of the relationship between BI and coopetition: are they in conflict or complementary? An empirical study has been conducted to answer this question, involving a sample of 153 high technology companies in Europe. The results show that the practices used in BI are part of an essentially aggressive view of competitive relationships in business. Although it is not possible to establish a “Coopetitive Intelligence” principle, these results show that “open monitoring” practices can be part of a more coopetitive conception of business, hence establishing the concept of “Coopetitive Monitoring”.

Title: Deciding How to Decide

Authors

  • Carmina Caringal Clarke, Macquarie Group Ltd
  • Hugh Courtney, University of Maryland
  • Dan Lovallo, University of Sydney

Abstract: This paper develops a Decision Profile Diagnostic (DPD) that shows how strategic decision-making tools and processes must be tailored to the levels of ambiguity and uncertainty as well as the distribution of knowledge that decision-makers face. The DPD sets boundary conditions under which traditional tools such as discounted cash flow analysis, decision analysis, real options valuation and multiple-scenario methods are valid, and illustrates how often rigorous case-based and other analogy-based approaches are necessary when firms face decisions to pursue novel strategies. The relevance of the DPD and case-based approaches to business practice is illustrated through detailed applications in the telecommunications and film industries.

Title: Human Resources's Role in Creating Tools for Aligning Knowledge Management with Strategy

Authors

  • Stephen Gates, Audencia Nantes University
  • Pascal Langevin, EM Lyon

Abstract: Human capital measures (HCM) help organizations motivate and control human capital, one of the key success factors to achieve strategic objectives. These tools encourage innovation and knowledge creation and align human capital with strategy. Results confirm these hypotheses: 1/ the more advanced a company is in developing HC metrics, the higher the company’s performance; 2/ companies following a differentiation strategy are interested in innovation HCM, while those following a cost reduction strategy are interested in efficiency HCM; 3/ the more the HR function participates in strategy, the more advanced the company is in implementing HC measures. Implications for knowledge management include the critical role of HR professionals in creating innovative HCM and participating in strategy both to advance HCM implementation and to enhance innovation performance.

Title: Moving Towards an Assessment of the Resource-Based View

Authors

  • Angela Paladino, University of Melbourne

Abstract: This paper introduces a newly developed scale which measures the resource-based view (RBV). In conceptualizing and measuring the psychometric properties of an RBV scale, we use the term “resource orientation” (RO) to refer to the application of the RBV. RO measures the extent to which a firm acts in accordance with the behavioral precepts of the RBV. Empirical testing demonstrates the development of a statistically robust and conceptually founded scale. We further hypothesize and test for relationships between RO and various performance measures. Using structural equation modeling, our findings demonstrate that a resource orientation is positively and significantly related with return on assets and new product success. These results challenge management to consider a resource orientation as a viable strategic orientation capable of having a positive impact on firm performance.

Title: Supporting Strategy Workshops with Strategy Tools: A Case Study from a UK-based Business School

Authors

  • Maureen Meadows, Coventry University
  • Luis Alberto Franco, University of Hull

Abstract: This paper considers the role of strategy tools in supporting strategic conversations in strategy workshops. A case study is presented of an exercise to develop an international strategy for a leading UK-based Business School. The authors, as facilitators of the exercise, designed a process for the workshops which included technology support (using the software Group Explorer) and a range of strategy tools including SWOT analysis and TOWS matrices. Following the exercise, in-depth interviews were conducted with participants to gain feedback on the process adopted, and this qualitative data is analysed using an approach based on Grounded Theory. Emerging themes are drawn out concerning the use of tools in strategy workshops to transfer, translate and transform strategic conversations.

All Sessions in Track J...

Sun: 10:00 – 11:30
Session 1506: Practitioner Cases: Linking Research with New Strategy Practices
Sun: 13:00 – 14:30
Session 1605: Theoretical Perspective of Practice: The Practice Approach
Sun: 15:00 – 16:30
Session 1706: Theoretical Perspective of Practice: Strategy-as-Practice
Mon: 11:15 – 12:30
Session 1109: What Is Strategy-as-Practice?
Mon: 15:30 – 16:45
Session 1116: The Different Roles of Strategy Tools
Mon: 17:00 – 18:15
Session 1112: Workshops, Meetings, Models and Tools in Strategizing
Tue: 11:15 – 12:30
Session 1114: Strategic Planning is Alive!
Tue: 14:30 – 15:45
Session 1111: Capabilities of Strategy Practitioners
Wed: 10:00 – 11:15
Session 1113: Innovating Change to Improve Business
Wed: 11:30 – 12:45
Session 1115: Identifying Strategizing in Practice


Strategic Management Society

Cologne Conference