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Article
Publication date: 16 February 2015

Studying strategy formation in small companies – a cognitive perspective

Thomas Wrona and Tina Ladwig

The major part of studies in the field of strategic cognition focussed on strategy content, while process studies are comparatively rare. Those of the studies that are…

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Abstract

Purpose

The major part of studies in the field of strategic cognition focussed on strategy content, while process studies are comparatively rare. Those of the studies that are dedicated to explain strategy occurrence are dominantly restricted to formal decision making. In contrast to this, the purpose of this paper is to draw on a framework that helps to get a differentiated picture on contingent processes, strategies may pass through in organizations. Furthermore, an own elicitation procedure is introduced that enables to measure strategic cognition on different levels.

Design/methodology/approach

The paper provides an empirical approach by applying collective causal mapping techniques, both on an individual as well as collective level. The conceptual framework of the study rests on the “genesis” concept of strategy formation introduced by Kirsch and colleagues.

Findings

The main contribution of the paper is the presentation of a methodical approach to study the formation of shared strategic orientations in small companies. An operationalization to study these cognitive processes, based on collective causal mapping techniques is provided.

Practical implications

Applying the methodical approach presented in the paper is expected to make a contribution to the understanding of the shared knowledge of organizational members about major strengths and weaknesses of a new strategic reorientation and to contribute to practical concerns of organizational members in specific problematic situations, especially in small companies.

Originality/value

The study empirically approaches the complex phenomenon on strategy formation in small companies and therefore expands the understanding of shared cognition in organizations.

Details

Journal of Strategy and Management, vol. 8 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JSMA-03-2014-0021
ISSN: 1755-425X

Keywords

  • Collective causal mapping techniques
  • Strategic cognition
  • Strategy formation processes

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Article
Publication date: 10 April 2020

Culture, strategy formulation, and firm performance: a meta-analysis

Silvio Borrero, Alejandro Acosta and Aida F. Medina

This article explores how strategy formulation affects firm performance to determine whether rational/analytical strategy formulation is more effective than…

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Abstract

Purpose

This article explores how strategy formulation affects firm performance to determine whether rational/analytical strategy formulation is more effective than emergent/reflexive strategy formulation. Additionally, the article assesses if such superiority holds for different cultural contexts.

Design/methodology/approach

Meta-analysis was performed using the Raju, Burke, Norman, and Landis (RBNL) procedure applied to a dataset of 43 empirical studies reporting 54 effect sizes on strategy–performance relationships.

Findings

Implementing a formal strategy formulation process positively relates to firm performance. Rational/analytical formulation approaches are more effective than emergent/reflexive approaches in enhancing firm performance, especially for cultures with low future orientation, high uncertainty avoidance, and high power distance.

Research limitations/implications

The reduced number of published empirical studies limited the scope and generalizability of the results across countries, industries, or firms. This limitation might be especially true for Latin American firms given the absence of relevant studies in this region. Another potential limitation is related to the distinction between strategy formulation and strategy implementation. Given the empirical nature of the studies meta-analyzed, strategic tools are used as a proxy to determine the formulation approach.

Practical implications

Firms that operate in short-term oriented, uncertainty-avoiding, and elitist cultures should favor implementing rational/analytical strategy formulation techniques rather than emergent/reflexive approaches. Although prescriptive recommendations are limited by the lack of studies in Latin America, firms in this region would seem to be better off using rational/analytical strategy formulation approaches.

Originality/value

These findings provide a partial explanation for the varying results yielded by strategy formulation and suggest cultural contexts in which rational/analytical strategy formulation should be more effective than emergent/reflexive approaches.

Propósito

Este artículo explora cómo la formulación de la estrategia afecta el desempeño de la empresa y busca determinar si la formulación de la estrategia racional / analítica es más efectiva que la formulación de la estrategia emergente / reflexiva. Además, el artículo evalúa si dicha superioridad es válida para diferentes contextos culturales.

Diseño/Metodología/aproximación

El metaanálisis se realizó aplicando el procedimiento de Raju, Burke, Norman y Landis (RBNL) a un conjunto de datos de 43 estudios empíricos que reportaron un total de 54 tamaños de efecto sobre las relaciones estrategia-rendimiento.

Resultados

La implementación de un proceso formal de formulación de estrategias se relaciona positivamente con el desempeño de la empresa. Los enfoques de formulación racional / analítica son más efectivos que los enfoques emergentes / reflexivos para mejorar el rendimiento de la empresa, especialmente para culturas con baja orientación al largo plazo, alta evitación de incertidumbre y alta distancia al poder.

Limitaciones/Implicaciones de la investigación

El reducido número de estudios empíricos publicados limitó el alcance y la generalización de los resultados entre países, industrias o empresas. Esta limitación podría afectar especialmente a las empresas latinoamericanas dada la ausencia de estudios relevantes en esta región. Otra limitación potencial está relacionada con la distinción entre la formulación y la implementación de la estrategia. Dada la naturaleza empírica de los estudios meta analizados, las herramientas estratégicas se utilizan como proxy para determinar el enfoque de formulación.

Implicaciones prácticas

las empresas que operan en culturas orientadas al corto plazo, que evitan la incertidumbre y que muestran alta distancia al poder deberían favorecer la implementación de técnicas de formulación de estrategias racionales / analíticas en lugar de enfoques emergentes / reflexivos. Aunque las recomendaciones prescriptivas están limitadas por la falta de estudios en América Latina, las empresas en esta región parecen estar mejor utilizando enfoques de formulación de estrategias racionales / analíticas.

Originalidad/valor

estos resultados proporcionan una explicación parcial de los resultados variados producidos por la formulación de la estrategia y sugieren contextos culturales en los que la formulación de la estrategia racional / analítica debería ser más efectiva que los enfoques emergentes / reflexivos.

Details

Academia Revista Latinoamericana de Administración, vol. 33 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/ARLA-01-2018-0013
ISSN: 1012-8255

Keywords

  • Firm performance
  • Meta-analysis
  • Fit
  • Cultural dimensions
  • Strategy formulation
  • Formulación de estrategias
  • Desempeño de la empresa
  • Dimensiones culturales
  • Ajuste
  • Metaanálisis

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Book part
Publication date: 1 January 2008

Fundamental issues in a competence-based theory of the firm

Jörg Freiling, Martin Gersch, Christian Goeke and Ron Sanchez

Using the framework of the philosophy of science, this chapter explores some basic theoretical issues that must be recognized and addressed in developing theory within the…

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Abstract

Using the framework of the philosophy of science, this chapter explores some basic theoretical issues that must be recognized and addressed in developing theory within the competence perspective. We first develop an overview of resource-based and competence-based research to highlight some fundamental theoretical issues. We then identify a set of basic assumptions for conducting a research program focused on development of a “competence-based theory of the firm.” Working from these basic assumptions, we argue for a shift in the epistemological aim of competence theory development from explaining market success to explaining firm competitiveness. We explain how such a shift theoretical focus and approach can remedy the problem of circular reasoning often observed in resource-based thinking that tries to contribute to the competence literature.

Details

A Focused Issue on Fundamental Issues in Competence Theory Development
Type: Book
DOI: https://doi.org/10.1016/S1744-2117(08)04002-4
ISBN: 978-1-84855-210-4

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Book part
Publication date: 20 June 2008

Author Index

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Details

International Business Scholarship: AIB Fellows on the First 50 Years and Beyond
Type: Book
DOI: https://doi.org/10.1016/S1064-4857(08)00025-9
ISBN: 978-0-7623-1470-6

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Article
Publication date: 18 January 2021

Traumatic stress sufferers: work as therapy or trigger?

Scott Williams and Jonathan Williams

While a return to work following trauma exposure can be therapeutic, this is not always so. As with many topics related to traumatic stress in organizations, several…

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Abstract

Purpose

While a return to work following trauma exposure can be therapeutic, this is not always so. As with many topics related to traumatic stress in organizations, several contingency factors complicate the effort to draw an overarching conclusion about whether returning to work is therapeutic. The purpose of this paper is to present important determinants of whether work is therapeutic or triggering for those with traumatic stress conditions. The need for contingency approaches in the study of traumatic stress in organizations is illustrated.

Design/methodology/approach

Literature on traumatic stress in organizations is reviewed.

Findings

Three of the key determinants of whether a return to work is therapeutic or triggering for traumatic stress sufferers are trauma-type contingencies, condition-type contingencies and work-setting contingencies. For instance, human-caused and task-related traumas are more likely than natural disasters to make a return-to-work triggering. Additionally, the time since developing a traumatic stress condition is inversely related to the degree of improvement in that condition through the experience of working. Moreover, managerial actions can affect how therapeutic an employee’s return to work is.

Practical implications

These findings suggest the challenges of reintegrating a traumatized employee to the workplace can be highly situation-specific. Careful consideration of the traumatic event suffered by each traumatic stress victim, their traumatic stress condition, and the work setting to which they would return are recommended.

Social implications

Promoting mental health in organizations can contribute to employers’ social performance.

Originality/value

Examination of the factors that complicate predicting whether work is therapeutic posttrauma demonstrates how contingency approaches can advance research on trauma in organizations.

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/MRR-01-2020-0050
ISSN: 2040-8269

Keywords

  • Trauma
  • PTSD
  • Social support
  • Post-traumatic stress
  • Work as therapy
  • Bullying and mobbing
  • Organizational compassion
  • Triggering

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Article
Publication date: 25 July 2008

The relevance of intangible assets in German SMEs

Susanne Durst

The purpose of this paper is to study the perceptions of the advisors and valuers of German associations regarding the relevance of intangible assets in general, and for…

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Abstract

Purpose

The purpose of this paper is to study the perceptions of the advisors and valuers of German associations regarding the relevance of intangible assets in general, and for the purpose of company succession in particular.

Design/methodology/approach

To perform this study German associations were examined, which play an essential role in company succession in Germany, from both sides of the process. Conducting a web‐survey, 51 answers were received (response‐rate = 42.5 per cent) which could be used for the analyses.

Findings

Amongst others, the study showed that intangible assets are of a moderate relevance. However, a large proportion of respondents expect intangible assets to be of greater relevance in the future. The study highlighted that intangibles do have a great impact on the decision‐making process of an investor.

Research limitations/implications

The total population of German Association is 135. The author received answers from 51 associations, which did not fulfil the statistical size to conduct advanced statistical methods. The specific relationship of German associations with small‐ to medium‐sized enterprises (SMEs) is rather unique compared to similar institutions around the world, therefore, the results may not be replicable in other countries.

Practical implications

The results of this study will help practitioners as well as academics to better understand the relevance of intangible assets in SMEs.

Originality/value

This paper is pioneering in the analysis of the influence of intangible assets in German SMEs for the purpose of company succession.

Details

Journal of Intellectual Capital, vol. 9 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/14691930810892018
ISSN: 1469-1930

Keywords

  • Small to medium‐sized enterprises
  • Intangible assets
  • Investors
  • Succession
  • Germany

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Article
Publication date: 30 January 2009

A review of trust modeling in ad hoc networks

Marcela Mejia, Néstor Peña, José L. Muñoz and Oscar Esparza

Mobile ad hoc networks rely on cooperation to perform essential network mechanisms such as routing. Therefore, network performance depends to a great extent on giving…

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Abstract

Purpose

Mobile ad hoc networks rely on cooperation to perform essential network mechanisms such as routing. Therefore, network performance depends to a great extent on giving participating nodes an incentive for cooperation. The level of trust among nodes is the most frequently used parameter for promoting cooperation in distributed systems. There are different models for representing trust, each of which is suited to a particular context and leads to different procedures for computing and propagating trust. The goal of this study is to analyze the most representative approaches for mobile ad hoc networks. It aims to obtain a qualitative comparison of the modeling approaches, according to the three basic components of a trust model: information gathering, information scoring and ranking, and action execution.

Design/methodology/approach

The paper identifies the different tasks required by a trust system and compares the way they are implemented when the system model itself is based on information theory, social networks, cluster concept, graph theory and game theory. It also provides a common nomenclature for the models. The study concentrates exclusively on the trust models themselves, without taking into account other aspects of the original articles that are beyond the scope of this analysis.

Findings

The study identifies the main components that a trust model must provide, and compares the way they are implemented. It finds that the lack of unity in the different proposed approaches makes it difficult to conduct an objective comparison. Finally, it also notices that most of the models do not properly manage node reintegration.

Originality/value

The best of our knowledge, the study is the first that uses information scoring and ranking as classification key. According to this key, approaches can be classified as based on information theory, clusters and social network theory, and cooperative and non‐cooperative game theory. It also provides a common nomenclature for all of them. Finally, the main contribution of the paper is to provide an analysis of the most representative approaches and present a novel qualitative comparison.

Details

Internet Research, vol. 19 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/10662240910927849
ISSN: 1066-2243

Keywords

  • Trust
  • Information modelling
  • Cluster analysis
  • Social groups
  • Networking
  • Game theory

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