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Summary literature SSBM
Summary of the literature of SSBM
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Article 1: Agarwal, R. and Helfat, C.E. (2009), Strategic Renewal ofOrganizations, Organization Science, 20(2): 281-293
Strategic renewal: includes the process, content, and outcome of refreshment of attributes of
an organization that have the potential to substantially affect its long-term perspective
Discontinuous: major changes in technology, customer demand, mature or declining
market are the causes for organizations to fundamentally change parts of the strategy
and organization
Incremental: undertaking related innovations and a sequence of path-dependent
opportunities in pursuit of persistent advantage, proactive.
Dynamic capability: the capacity of an organization to purposefully create, extend or modify
its resource base
Conclusion about strategic renewal
Strategic renewal can both involve discontinuous and incremental change, involving a
range of circumstances
The content and process of the strategy are heavily intertwined
Multiple dimensions of change, such as competition, firm resources and capabilities,
organizational structure and cognition, as well as routines and processes for decision
making and implementation.
Article 2: Miles, R.E. Snow, C.C., Meyer, A.D., and Coleman, H.J. (1978).
Organizational Strategy, Structure, and Process. Academy of Management
Review, 3(3): 546-562
The adaptive circle: builds upon the strategic-choice approach, which indicates that
organizational behavior is only partially determined by environmental conditions. Choices by
management are the critical determinants of organizational structure and process.
The entrepreneurial problem: choices having to do with which market and which
product is the domain of the organization
The engineering problem: involves creating a system which operationalizes the
management’s solution to the entrepreneurial problem. Choice of technologies for
production and distribution
, The administrative problem: looks at a solution for the organization to implement
processes than enable to organization to evolve. Rationalization of structure and
processes.
How do organizations move through this
cycle? Four types of organization
Defenders (Ferrari)
Prospectors (Amazon)
Analyzers (Microsoft)
Reactors (Nokia).
,Management theory
Traditional model: unilateral control of organizational systems by top management,
standardization, centralization, routine
Human relations model: still superior decision-making, but more emphasis on the
social needs of belonging and recognition. More focus on involvement and unions
Human resources model: no longer seeing management as controller, but more as
facilitator. Removing constraints that block organizational members to contribute in
their work roles meaningfully. Emphasis on member capacity and motivation to
contribute.
, Reeves, M., and Deimler, M. (2011). Adaptability: The new competitive
advantage, Havard Business Review, July-Augustus: 135-141.
Organizational adaptability: the intentional decision to undertake by organizational
members, leading to observable actions that aim to reduce the distance between an
organization and its economic and institutional environments:
Intentional: rooted in organizational members’ awareness of their environment,
resulting in a choice to react, to anticipate, or ignore changes in the environment
Relational: whereby organizations and environments influence one another
Conditioned: since environmental characteristics also depend on, and evolve with,
other organizations’ actions
Convergent: that organizations seeking to adapt are attempting to move closer to a set
of environmental characteristics.
Traditional approaches to strategy actually assume a relatively stable and predictable world.
They aim to build an enduring competitive advantage by achieving dominant scale, occupying
an attractive niche, or exploiting certain capabilities and resources. However, globalization,
new technologies, and greater transparency have combined to upend the business
environment. Sustainable competitive advantage no longer arises from positioning or
resources. Instead, it stem from four organizational capabilities that foster rapid adaption.
1. The ability to read and act on signals: a company must have its antennae tuned to
signals of change from the external environment, decode the, and quickly act to refine
or reinvent its business model and even reshape the information landscape of its
industry. Apply advanced data-mining technologies to recognize relevant patterns
2. The ability to experiment rapidly and frequently: companies must use an array of
new approaches and technologies, especially in virtual environments, to generate, test,
and replicate a larger number of innovative ideas faster, at lower costs, and with less
risk than their rivals can. Companies need to broaden the scope of their
experimentation, use experimentation far more broadly thein their rivals do. Finally,
adaptive companies are very tolerant of failure, even to the point of celebrating it
because they’ve learned from it
3. The ability to manage complex and interconnected systems of multiple
stakeholders: companies need to think about strategies not only for individual
companies but also for dynamic business systems. Industry structure is increasingly
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