Session 216

Industry Evolution and Resource Architecture

Track E

Date: Wednesday, October 14, 2009


Time: 10:00 – 11:15


Room: Meeting Room 4

Session Chair:
Michael G. Jacobides, London Business School

Title: Industry Evolution, Vertical Integration, and Innovation Over Successive Product Lifecycles


  • Constance Helfat, Dartmouth College

Abstract: We address two unresolved issues with regard to vertical integration and firm boundaries. First, we address the specific question of the appropriate extent of vertical integration for a firm faced with a succession of technological changes in an industry. We show that the answer depends on the nature of the technological changes and how frequently they are likely to occur. Second, we address the general question of why vertically integrated and specialized (non-integrated) firms frequently co-exist within industries at a given point in time and over time. We suggest one possible answer to this question in the context of technological change. To address these questions, we develop a simple, stylized conceptual model of the firm’s choice of whether or not to be vertically integrated at different points in the lifecycle of an industry. We illustrate these points with examples from different industries, including semiconductors and automobiles.

Title: Successful Patterns of Resources and Attention Allocation in Times of Discontinuous Change


  • Daniela Blettner, Simon Fraser University
  • Philipp Tuertscher, WU Vienna
  • Richard Bettis, University of North Carolina-Chapel Hill

Abstract: In order to survive or even grow in times of discontinuous changes in the environment, firms need to adapt. While adaptation of resource allocation has been studied extensively, only a few studies have examined the adaptation of firms’ attention in response to discontinuous change. In this study, we compare and contrast the patterns of allocation of resources and attention as a function of performance along three dimensions:timeliness, magnitude, and persistence of adaptation. We show the importance of the interaction of resources allocation and attention allocation and discuss implications for theory and practice.

Title: Value Chain Dynamics: From Scope to Profit Evolution, Given Modular and Architectural Innovations


  • Michael G. Jacobides, London Business School
  • Francisco Veloso, Lisbon Catholic School of Business and Economics
  • Claudio Wolter, Carnegie Mellon University

Abstract: The question of how, in an increasingly uncertain environment, firms choose their scope, is far from being settled. This paper builds on and extends recent research, and considers how different capabilities, transaction costs, and dynamic conditions (such as learning dynamics) interact to drive not only vertical scope, but also the resulting profits in a sector. We also consider how innovation affects both scope, and profit distributions, distinguishing between the impacts of modular and architectural innovations that either sustain or change the scope of firms, and re-shape profits in a sector.

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