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This paper aims to integrate insights from the behavioral theory of the firm and the dynamic capabilities perspective to explain how the historical and social attainment discrepancies motivate firms to change. Specifically, this paper proposes that a negative historical attainment discrepancy encourages the firm to engage in strategic change to solve its performance problems. In contrast, this paper advanced that a positive social attainment discrepancy motivates strategic change as a mechanism to bolster the firm’s position within the industry. Further, this paper integrated the moderating effects of industry dynamism and industry munificence.

This paper tests hypotheses using panel data on 2,435 US public firms over the years from 1996 to 2018. This paper uses a fixed-effects regression model to empirically test these hypotheses.

This paper finds empirical support for the effects of both the negative historical attainment discrepancy and the positive social attainment discrepancy on the firm’s tendency to engage in strategic change. As for the hypothesized moderating effects, this paper finds that industry munificence accentuated the effects of both attainment discrepancies on the firm’s tendency to engage in strategic change. However, the results do not support the hypothesized moderating effect of industry dynamism on either of these attainment discrepancies.

This paper contributes to the research on the separate effects of historical and social comparisons within the context of strategic change. Further, the paper bolsters our understanding of how performance feedback increases the firm’s tendency to change. Finally, the paper integrates theoretical views from the behavioral theory of the firm and the dynamic capabilities perspective on how socially high-performing firms may build and sustain their competitive advantage through organizational change.

Combining two organizational change theories, life cycle and organizational development, this study examines how strategic change cycle has been adopted and implemented across three different organizations, a public organization, an NGO and an intergovernmental organization toward achieving their goals.

This study triangulates three different qualitative research methods: open-ended semi-structured interviews conducted with UN Women Egypt's director, text analysis of the three organizations' websites and the discourse analysis of the Tri-County Foundation's leaders.

Strategic change cycle has been differently formulated, adopted and implemented by the three organizations based on their goals, resources and contexts. While Office Board of Investment adopted a comprehensive reactive change, Tri-County Foundation followed a partial proactive transformation and UN Women Egypt developed a partial reactive strategy. Henceforth, public organizations and nonprofit organizations can develop different strategies of change in function of needs, resources, goals and context.

This study advances a theoretical framework on organizational change by integrating two theories, life cycle and organizational development, presenting four patterns of change: comprehensive reactive, comprehensive proactive, partial reactive and partial proactive.

The purpose of this study is to investigate the significance and impact of strategic knowledge management (SKM) practices and organisational change capacity (OCC) in improving strategic thinking and strategic orientation in small and medium-sized enterprises (SMEs) and their contribution in overall improvement of entrepreneurial performance.

Quantitative research methodology using partial least square structural equation modelling with data of 296 sample from the target group as managers and owners from various SMEs in the UK has been used in the study.

The findings suggest that SMEs that invest in SKM and OCC are more proficient at adjusting to fluctuations in the business landscape and develop effective strategies that lead to improved entrepreneurial performance. The study provides evidence that SKM encompasses more than just the acquisition and use of information. It also involves the establishment of a learning and innovation culture that facilitates strategic thinking and direction. Similarly, OCC is not just about implementing change but also about developing the agility and flexibility to adapt to market changes, consumer demands and technology.

According to the research, SMEs may boost their entrepreneurial performance and keep a competitive advantage in the modern, dynamic business environment by investing in SKM and OCC. The capacity of SMEs to implement SKM and organisational change should be encouraged and supported by policymakers and practitioners, who should also offer the necessary tools and assistance to do so.

This study offers a valuable addition to the previously published works on SKM and OCC within SMEs. It offers empirical data that highlights the significance of SKM and OCC in fostering strategic thinking, strategic orientation and ultimately, boosting entrepreneurial performance. The study also highlights the challenges faced by SMEs in implementing SKM and OCC and provides recommendations for overcoming these challenges.

The purpose is to stimulate scholarship in the strategic management field that accounts for conditions implied by projected impacts of climate change.

Following conceptual logic, the article analyses how changes in the strategic environment brought about by climate change may challenge current strategic management theory. It develops avenues for theory development based on expanding the field’s scope and extending its limits of applicability.

The article highlights the extent to which the strategy field has evolved in a stable empirical context, despite its attention to dynamism and hence is less well aligned with potentially pervasive new pressures and impacts. It sets out a rationale for moving beyond symbolic environmentalism, possibilities to harness cognitive and behavioural insights, dilemmas in strategic innovation and the empirical potential of non-mainstream contexts.

Firms and organisations can expect widespread systemic effects from climate change that challenge established ways of operating. The article explores how strategic management could better support strategists in navigating these shifts such that firms can continue to thrive.

The article approaches the issue of climate change specifically from the perspective of strategic management of firms rather than as policy or social advocacy. It focuses on pressures and characteristics that distinguish climate change from other environmental and social impacts on firms.

Applying the concept of “entrepreneur managers” from dynamic capabilities theory to the question of how some Japanese managers develop and use their relationships with foreign investors, this article explores organizational contexts in which Japanese managers use foreign shareholders as resources to enhance firm capabilities in the global marketplace, deploy assets effectively and implement changes to traditional organizational customs. The article asks why and how some top managers implemented institutional changes and adopted customs that are common in the shareholder-based system while others did not.

We conducted qualitative interviews with 11 inverstor relations (IR) managers of large, listed Japanese firms in Kyoto and Tokyo.

First, by inviting a hedge fund partner and using their human capital and social capital, a Japanese CEO committed to strengthening his firm’s competencies in the global market and introduced changes that are common in the shareholder-based system. Second, a CEO with an MBA degree and exceptional communication skills in English and Japanese dedicated himself to executing much of the strategic advice suggested to him by foreign shareholders and altered some of his firm’s traditional Japanese management practices. Third, even though many Japanese firms welcomed and used foreign shareholders as advisors to help them streamline and/or acquire firm assets, their top leaders’ implementation of organizational changes was limited. Fourth, the top leaders of family-owned firms were reluctant to initiate dialogue with foreign investors.

This article adds some useful organizational context to existing scholarship on institutional theory by examining Japanese leaders’ strategic management in their relations with foreign investors. Using the concept of dynamic capabilities, it addresses the role of innovative strategic managers in firms’ institutional changes.

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

This study aims to answer the question of how incumbent firms cultivate dynamic capabilities through knowledge management so that they can efficiently adapt to the changing external environment.

This study adopts a case study approach and collects data through interviews and secondary public information on the lighting industry and two lighting firms in Lin'an, China. It qualitatively examines the challenges and strategic recommendations for incumbent firms in the context of discontinuous technological change from a knowledge management perspective.

Incumbent firms often face a variety of challenges when responding to discontinuous technological change. These challenges include identifying opportunities, overcoming path dependence and dealing with employee resistance to change. To overcome these difficulties, three strategies have been proposed to enhance the dynamic capabilities of incumbent firms through knowledge management: cross-border search helps firms improve their knowledge acquisition capabilities and better understand their environment to identify opportunities; building strategic leadership overcomes path dependence and improves knowledge integration capabilities; organizational learning deepens employees’ understanding of change and enhances organizational knowledge application capabilities.

Previous research attributes a firm's ability to cope with discontinuous technological change solely to its general resources, which weakens the importance of knowledge management in this context. This study emphasizes the importance of knowledge as a crucial strategic resource in developing the essential dynamic capabilities for incumbent firms to cope with discontinuous technological change.

This study provides an in-depth analysis of incumbent firms' coping strategies in the new context of discontinuous technological change and further promotes cross-disciplinary research.

This study provides an in-depth analysis of coping strategies in the new context of discontinuous technological change, furthermore theoretically advancing the interdisciplinary research of firm transformation and knowledge management. Meanwhile, it is crucial to identify the preconditions for cultivating dynamic capabilities, especially from a knowledge-based view, which enhances the depth of knowledge management research.

This study aims to critically evaluate resource dependence theory’s (RDT) assumptions and explanations about dependence and the dependent firm’s strategic options. The authors argue that RDT’s perception of dependence is problematic because it evaluates dependence as a purely negative situation in which all firms, by definition, seek to develop strategies to change the power structure of such relationships. On the contrary, the authors argue that there are situations in which dependent firms are in agreement with dependence and, therefore, develop strategies that do not aim to change the balance of power in the relationship, but rather to strengthen their position within the relationship.

The research is designed as a theoretical discussion. The authors critically evaluate and discuss current understanding and assumptions about RDT’s dependence explanations. Drawing on insights from the strategic management literature, the authors offer a new perspective on the problematic areas in the dependence explanations of the RDT.

Drawing on insights from the strategic management literature, the authors argue that dependent firms enjoy certain advantages due to the dependence relationship to gain sustainable competitive advantages over their rivals and potential competitors. These advantages include factors such as increasing growth potential, developing capabilities and competencies, building relationships of trust with powerful firms and leveraging their reputations and references that contribute to the sustainable strategic advantages of dependent firms. The authors believe that this study has the potential to spur new research that further challenges the assumptions of the RDT and empirically tests its propositions.

The authors propose a research framework on dependence as a strategic option that has the possibility of expanding RDT’s current dependence explanation.

This paper examines the framing of digital transformation. The research questions are specified as follows: what are the different types of framing strategies in response to digital transformation? How do the strategies differ across organizations? Theoretically, the authors draw on the framing perspective to emphasize the use of linguistic frames in shaping innovation and change processes. Empirically, the authors choose to study the Taiwanese sectors, including publicly governed entities, traditional private business or technology-based ventures.

The authors’ approach combines topic modeling and qualitative analysis. Using data collected from newspaper and magazine articles, the authors employ topic modeling to generate a set of distinctive framings that Taiwanese actors typically adopt to motivate and justify their digital move. The authors also conduct personal interviews to qualitatively complement the authors’ topic modeling analysis and to identify the rationale behind the linguistic framings and the strategic differences brought about by the various organizations.

The authors identify five topics that the Taiwanese actors commonly used in the framing of digital transformation. These topics or frames are labeled as cross-domain coordination, market demand, intelligent technology, global trend and competition and digital innovation. The practical use of the framings is contingent on organizational characteristics. Furthermore, the authors show how the framings can be classified as either positive framing (e.g. winning the next war) or negative framing (e.g. innovate or die), generally applicable to organizations around the world struggling to cope with digital disruption.

The authors’ study has two research implications. First, the authors extend the appreciation of the digital transformation from the usual concern with technological and business model innovations to linguistic or framing practices. Second, the authors enrich the framing analysis by emphasizing a practice or contingency perspective based on sector difference. The findings are subject to the limitations of the choice of only established and reputable media outlets, the diatextual reading and filtering of useful articles for topic modeling analysis and the use of world frequency to account for frame significance.

The authors shift actors' attention from improving technical efficiency to acquiring linguistic resources in the pursuit of digitalization. For example, framing the digital transformation in terms of creating a market orientation calls for not only real consumer power but also strategic discursive competence that enables the move to change. The findings also point out that practitioners can enlarge the scope of their agency rather than being trapped in the habituated routine of practices. Despite social embeddedness, organizations are more often widely connected and built enough to call for more of the cognitive frames to appeal to heterogeneous stakeholders.

The authors study contributes to the literature by developing a linguistic or socio-cognitive view of digital transformation strategy that is capable of expanding organizational attention toward change and innovation. The authors explore menus of strategic frames employed by actors in response to digital transformation. We also address the application of a machine-learning tool such as topic modeling to explore the socio-cognitive dimensions of digital transformation. Furthermore, the analysis leads us to identify the outcomes or effects – either positive or negative – that move beyond the particular Taiwanese case to explain the framing of digital transformation in general.

(Digital) servitization, referring to service-driven strategies and their increasing implementation in manufacturing, is one of the most rapidly growing areas in industrial service research. However, the cultural change involved in successful servitization is a phenomenon that is widely observed but poorly understood. This research aims to clarify the processes of social construction as manufacturers change their organizational culture to transform into industrial service providers.

This research takes a systematic approach to integrate disparate literature on servitization into a cohesive framework for cultural change, which is purposefully augmented by rationale culled from organizational learning and sensemaking literature.

The organizational learning framework for cultural change in servitization introduces a dynamic perspective on servitizing organizations by explaining social processes between organizational and member-level cultural properties. It identifies three major cultural orientations toward service, digital and learning that govern successful servitization.

This research contributes to the servitization literature by presenting a new approach to reframe and explore cultural change processes across multiple levels, thus providing a concrete starting point for further research in this area.