Session 162

Strategy Formation Processes

Track H

Date: Monday, October 5, 2015


Time: 08:00 – 09:15


Room: Director's Row J

Session Chair:

  • Bala Chakravarthy, IMD

Title: Management Practices, Practice Bundles and Company Performance: An Empirical Study on General Management


  • Olli Salo, Aalto University

Abstract: Growing interest in the role of management practices in explaining company performance has recently led to the development of the Practice-Based View (PBV) of strategy. Using a large general management practices survey with 465 000 respondents from 222 companies, this paper demonstrates how individual management practices across functional domains (e.g., HR and strategy process) come in bundles related to the underlying strategic posture (exploration/exploitation) and approach towards motivation (Theory X / Theory Y) of the company. Results show praxis is not uniform within companies, with frequency declining lower down in hierarchy for majority of practices. Finally, general management practices together explain a large share of variance in performance, but no individual management practice explains more than a modest share.

Title: Managing Participation and Inclusion in the Strategy Process


  • Daniel Mack, INSEAD
  • Gabriel Szulanski, INSEAD

Abstract: The management literature has emphasized the importance of employee involvement in the strategy making process, yet increasing such involvement is not without costs. We examine and unpack this tension by conceptualizing employee involvement as two distinct types of practices: participation and inclusion. Using formal analysis, we show that it is always beneficial for organizations to engage in participation, but not always in inclusion. We argue that the optimal level of inclusion depends on the intensity and heterogeneity of employee preferences, as well as on the formal coordination capacity of the organization. We also derive the boundary conditions that shift the organization’s preference for participation and/or inclusion. Finally, we examine our propositions using qualitative data of a detailed in-depth case study of the strategy making process.

Title: Problem Finding and Problem Solving: A Two State Agent-Based Model Approach


  • Mo Chen, University of Utah
  • Robert Wuebker, University of Utah

Abstract: This study will develop and test a two-stage model of problem finding and problem solving for value creation. Combining and extending insights from the problem solving perspective (Nickerson and Zenger, 2007) and search through fitness landscapes (Levinthal, 1997) we develop a fitness landscape in which two types of agents are in play: some are engaged in blind search, and some engage in theory-guided search. Blind searchers choose a solution space for a particular problem randomly; the other type of searchers strategically target problems based on their theory of potential value creation. We compare the performance of these two agents across different levels of problem complexity, financial constraints, uncertainty, and problem symmetry.

Title: The Strategic Planning Dispute Reconsidered: Formal and/or Emergent dependent on Maturity?


  • Ricarda Bouncken, University of Bayreuth
  • Robin Pesch, University of Bayreuth
  • Viktor Fredrich, University of Bayreuth

Abstract: For decades, managers of large but as well small and young firms want to know how to plan. Yet, strategic management researchers disagree whether formal or emergent planning increases performance. Despite all the contradictory results, research has neglected contextual factors as firm maturity (age and size). As a baseline model, we examine if formal or emergent planning increase firms’ relative competitive performance. For more specific insights we consider different maturity levels (age and size). Further, we look at complementary effects of planning through the lens of organizational ambidexterity. Our results of 535 firms suggest that mature firms take advantage from formal planning, while young and small firms’ improve performance by emergent planning. In specific cases both planning approaches can even have positive combinative effects.

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 22: On Boxes, Arrows and Multiple Case Studies
Sun: 09:45 – 11:00
Session 23: Simple Rules and Other Seminal Contributions
Sun: 11:15 – 12:30
Session 24: Tribute to Kathleen Eisenhardt
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Session 154: Processes of Capability Development, Rejuvenation and Erosion and their Interplay with Strategy
Sun: 17:45 – 00:00
Session 316: Strategy Process Business Meeting
Mon: 08:00 – 09:15
Session 162: Strategy Formation Processes
Mon: 11:15 – 12:30
Session 210: M&A/JV Implementation
Mon: 13:45 – 15:00
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 134: Leading change implementation processes
Tue: 08:00 – 09:15
Session 135: Micro-processes for developing dynamic capabilities
Session 212: Initiative Generation, Opportunity Sensing, Decision and Change Processes: The Role of Context and Cognition
Session 255: Processes for Innovation and Ideation
Tue: 11:00 – 12:15
Session 211: Cognition, Discourse and Innovation Dynamics within and across Organizations
Tue: 14:15 – 15:30
Session 275: External Interface Processes and their Consequences
Tue: 17:30 – 18:45
Session 165: Strategic Change: The Role of Cognition and Affect/Emotions

Strategic Management Society