Strategic Responsiveness and Adaptive Organizations: New Research Frontiers in International Strategic Management

This first chapter argues that turbulent environments require adaptive strategy for survival and continued prosperity and thereby introduces the attempts to determine effective response capabilities in contemporary firms, which are presented in the ensuing chapters. The background in prior strategy research is outlined to position the various contributions within a proper backdrop as potential extensions to prior insights generated in the strategic management field. It suggests a need for multiple methodological approaches to gain new diverse and relevant knowledge from rich qualitative field studies as well as quantitative data probes and computational analyses. Finally, the ensuing chapters are briefly presented to provide a coherent view of the contributions made by this specific collection of chapters that the authors hope will inspire and fuel ongoing work in this important area.

The flexibility of corporations to adapt their strategy to a fast-changing environment can be a major source for competitive advantage and survival. While research mainly focuses on outcomes of this ability, little is known of how to foster it in organizations. Thus, by building on the upper echelons theory, the authors assume that the strategic flexibility of the company depends on the willingness and permission to change of the chief executive officer (CEO). To support the hypotheses, the authors apply the dimensions of commitment to change and work autonomy to the CEO and test for moderation under conditions of technological turbulence. The authors’ results based on medium-sized organizations in Germany show significant effects of both dimensions on strategic flexibility. In particular, under conditions of high technological turbulence, commitment based on loyalty and not on pressure together with autonomy on control and evaluation criteria is best suited to increase strategic flexibility. These insights extend the research literature and provide guidelines for CEOs and their supervisors alike.

This chapter aims to develop a conceptual framework to probe evidence of open strategy (OS) phenomenon as being practiced by adaptive small and medium enterprises (SMEs) in manufacturing industries. Specifically, this study focuses on the act and doing of strategy communications, based on a set of readying and entrepreneurial practices, involving a plurality of internal and external actors (i.e., owner manager/entrepreneur, middle managers, shop floor employees, suppliers, etc.). The empirical study is based on a deep collaboration with a Scottish SME that supplies outsourced bottling and packaging services to the Scotch Whisky industry through a seven-year longitudinal qualitative inquiry. This study finds that the OS phenomenon is classified into transparent, participatory, and inclusive practices. These nested OS practices are enacted progressively as particular events are unfolding during organizational lifecycle and renewal processes. Sustaining temporal openness in strategy is underpinned by important boundary readying practices in SMEs.

Middle managers’ intrapreneurial actions can be a powerful source of organizational adaptation and strategic renewal. Better understanding what drives such intrapreneurial actions is important, yet requires data, which allows testing directional claims. For example, whereas autonomy and supportive leadership might be antecedents to such intrapreneurial behavior, it equally seems possible that firms delegate more autonomy to individuals behaving entrepreneurially (rather than being “lazy”) or that senior managers are more inclined to show support for individuals engaging in entrepreneurial action. Lagged or longitudinal survey evidence to test whether autonomy and leadership support are antecedents of intrapreneurship or consequences, is – like for many other questions in research on strategic responsiveness – hard and expensive to collect. Vignette experiments (also called factorial surveys or conjoint studies) may be a way out – especially when combined with cross-sectional evidence. The present chapter illustrates this approach by studying the relations among autonomy, supportive leadership, and intrapreneurship by means of a vignette experiment and a cross-sectional field survey. The findings suggest that autonomy and supportive leadership are indeed antecedents to intrapreneurial behavior and illustrate the value of vignette experiments for research on strategic responsiveness.

The combined roles of strategic planning and decentralized strategy-making remain an essential issue in strategy research and its resolution has implications for management practice. To this end the current study considers the added effects of adopted leadership style and use of interactive controls and thereby uncovers new interesting insights about the combined strategy-making process. The authors use structural equation analyses to investigate these more fine-grained relationships based on an updated cross-sectional dataset from among the largest companies in Denmark. The analyses find that a participative leadership style drives the application of interactive controls, which in turn has a positive interaction effect on the relationship between strategic planning and corporate performance. A participative leadership style also exerts positive influence on autonomous strategic actions, which in turn has a negative direct relationship to performance, but a positive interaction effect on performance together with use of interactive controls. The authors discuss the theoretical foundation for these intricate relationships and consider opportunities to extract further research insights.

An important issue for medium-sized enterprises (MEs) in strategic management research is the ability to be resilient, recover and bounce back, after a disturbing and extenuating external event, such as the recent financial and economic crisis. Researchers have made efforts to understand the antecedents to resilience. Some studies propose capabilities and resources that strengthen experimentation while other researchers emphasize factors that support reliability. This study seeks to reconcile these views relying on upper echelons theory as the top management of MEs’ shape organizational attitudes and behaviors. The authors propose two antecedents in MEs related to management capabilities, ambidexterity and consistency, and the characteristics of family ownership that allow building of experimentation and reliability. We test our hypotheses on a dataset of 3,006 MEs and show how manager ambidexterity and family ownership play important roles in ME resilience.

It is commonly acknowledged that history matters in strategy. However, the strategy literature mainly discusses history in terms of path dependency, leaving little room for managerial agency, despite growing anecdotal evidence that managers can actively draw on corporate history to improve decision-making. An emerging literature on how managers use the past to give sense to internal and external stakeholders has given rise to a more agent-based approach to history, but while sense-giving is commonly connected to sense-making as a driver of strategic change, the role of history in sense-making remains unexplored. Drawing on the concept of analogical reasoning, this chapter theorizes the connection between corporate archives and managerial sense-making, arguing that analogies drawn from past experience can reduce uncertainty and foster learning. This theory leads to the suggestion that consulting the corporate archive can promote strategic renewal and thus boost performance.

Established organizations regularly fail in their strategic responses to large-scale environmental transformations. In this chapter, the authors analyze the case of the British Broadcasting Corporation’s (BBC) successful response to digitization of the broadcasting industry. The authors identify two main forms of strategic response – establishing external collaborations and developing internal competencies – which were driven by recurrent cycles of renewal of the BBC’s Royal Charter. The authors conceptualize this process as “temporary incorporation,” an effective driver of strategic responsiveness not yet been discussed in the literature. This discussion relates temporary incorporation to the previous work on strategic change.