Session 158

Strategic Change and Dynamic Capabilities

Track E

Date: Tuesday, October 13, 2009

 

Time: 14:30 – 15:45

Common Ground

Room: Meeting Room 7


Facilitator:
Constance Helfat, Dartmouth College

Title: How Do Companies Achieve Sustained and Profitable Business Growth?: Business Models in Continuously Growing Companies

Authors

  • Leona Achtenhagen, Jönköping University
  • Leif Melin, Jonkoping University
  • Lucia Naldi, Jönköping University

Abstract: This paper deals with a fundamental question for managers and policy makers—how do companies manage to achieve sustained and profitable business growth, especially in times of uncertainty? We propose that continuously growing companies manage to dynamically shape, adapt and renew their business models to fuel growth over time. Specifically, informed by the dynamic capabilities and the strategy-as-practiced perspectives, we develop a framework of business models for understanding how, in practice, business models are developed, adjusted, and if necessary, reconfigured in companies displaying successful continuous growth. Using in-depth, longitudinal evidence from a study of 25 companies, we identify five characteristics as crucial to the business models of companies which manage to successfully grow despite an uncertain world. For each characteristic, we identify the underlying dynamic capabilities and core practices, and draw implications for practice and research.

Title: Preventive Capacity and the Mediating Role of Metacognition in Hypercompetitive Environments

Authors

  • Andrea Lanza, University of Calabria
  • Antonella Pellegrino, University of Calabria
  • Simone Giuseppina, University of Calabria

Abstract: Different contributions on firm’s renewal fail to provide useful guidelines to face uncertain challenges since they focus on firm’s past learning. In this paper we develop the concept of preventive capacity to show the negative effect deriving from adopting old solutions for new problems in hypercompetition. Metacognition, as a higher-order capacity, mediates this effect. Results from a model tested in the Italian wine Industry support our hypotheses about the negative effect of preventive capacity on firms’ performance mediated by metacognition, suggesting that in hypercompetition firms should base their decisions more on sensemaking then on previous learning.

Title: Survival During Shakeout in the U.S. Brewing Industry

Authors

  • Lynn Walter, Western New England University
  • Kenneth Hatten, Boston University
  • Linda Edelman, Bentley University

Abstract: This study will examine U.S. Brewing Industry data spanning the years 1938 to 1985 to investigate which brewers survived the extreme industry shakeout and why. Hypotheses based on first-mover and capabilities theories will be motivated and then tested using Cox proportional hazard models. Surprisingly, initial chi-square results indicate that first-mover disadvantages existed in the industry. Brewers entering just after prohibition were less likely to survive than later entrants. However, brewers that developed advanced levels of two critical capabilities, geographic scope of distribution and manufacturing efficiency, appeared to be more likely to survive than brewers with lower capability levels. The final results will indicate whether first mover or capabilities theory are more accurate in predicting survival during this uncertain period of the U.S. Brewing Industry.

Title: The Reification of Dynamic Capabilities: A Critical Review of the Construct

Authors

  • Boris Durisin, Bocconi University
  • Airoldi Alessandro, Bocconi University
  • Katia Premazzi, Bocconi University

Abstract: We conduct a detailed analysis of 475 dynamic capabilities papers from 16 journals to assess how the original dynamic capabilities construct (Teece, Pisano, and Shuen, 1997) has been utilized in the decade 1997-2007. We are interested in investigating whether processes of reification took place and explore the conceptual work on and empirical analysis of the dynamic capabilities construct. Further, we perform a similar study on Teece (1998) and Teece (2007) and further investigate whether and how research on dynamic capabilities influenced Teece (2007) revision of the construct. We conclude that the construct of dynamic capabilities has been subject, to some extent, to reification.

Title: Value Creation and Value Appropriation: A Resource-Based Theory of the Firm for the Knowledge Economy

Authors

  • J W Stoelhorst, University of Amsterdam
  • Flore Bridoux, University of Amsterdam

Abstract: The purpose of this paper is to counter the criticism that the RBV has little to say about value creation and value appropriation. We show that the RBV as a theory of competitive advantage explains value appropriation, and that the different resource-based views of the firm (viz. the capabilities view, knowledge view, dynamic capabilities view, and payments view) contain all the necessary theoretical building blocks to explain value creation. We consolidate and integrate these theoretical building blocks in a discussion of value creation and develop a proposal for the development of a resource-based theory of the firm that recognizes the two-way relationship between value creation and value appropriation as the central problem in knowledge-intensive economies.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 256: Discipline Based Theories: What Do Theories of the Firm Say About Organizational Dynamics
Sun: 13:00 – 14:30
Session 257: Applying Theories: What Does Strategy & Organization Say About Health Care?
Sun: 15:00 – 16:30
Session 258: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 309: Competitive Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 159: Strategic Factor Markets: Antecedents, Consequences and Dynamics
Session 166: Competitive Strategy and the Business of Science
Mon: 15:45 – 17:00
Session 160: Emerging Strategies in Acquisition
Session 220: Contemporary Challenges to Organization Theory
Mon: 17:15 – 18:30
Session 157: Managerial Cognition and Dynamic Capabilities at the Crossroads: Current Issues and Novel Strands of Development
Session 222: Challenging Traditional Notions of Competitive Strategies and Competitive Advantage
Tue: 10:00 – 11:15
Session 161: Demand-based Approaches to Strategy: The Role of Customers and Communities
Session 163: Resources and Capabilities to Strengthen Alliance Formation and Execution
Tue: 11:30 – 12:45
Session 164: Competitive Strategy and Firm Performance
Session 165: Emerging Organizational Solutions for Exploration Strategies
Tue: 14:30 – 15:45
Session 158: Strategic Change and Dynamic Capabilities
Session 169: Unpacking Sources of Heterogeneity: Market Frictions, Firm Resources, Strategic Actions
Wed: 10:00 – 11:15
Session 216: Industry Evolution and Resource Architecture
Session 217: Designing Organizations to Sustain Performance
Wed: 11:30 – 12:45
Session 214: Managerial Capabilities and the Microfoundations of Strategy


Strategic Management Society

Washington DC