Pub Date : 2025-01-20DOI: 10.1016/j.lrp.2025.102499
Irina Atkova, Tamara Galkina, Man Yang, Tiina Leposky, Petri Ahokangas
Transition towards sustainable business models (SBMs) has become an imperative practice for businesses. To ensure this change is systematic, firms need to transform all BM components⸻value creation, delivery, and capture⸻in a consistent manner. However, extant research lacks an understanding of the integrative mechanisms of value logic transition when modelling a business through the lens of sustainability. This study explores mechanisms for such transition towards SBMs. We follow companies operating in three traditional industries in Finland: mining, paper production, and shipbuilding. To tackle transition towards SBMs, we focus on context, intervention points, mechanisms, and outcomes of this change. We derive an integrative model that depicts how value components are transformed as a whole, thereby contributing to the literature on sustainability transitions and dynamic views of BMs.
{"title":"Opening the black box of transition towards a sustainable business model","authors":"Irina Atkova, Tamara Galkina, Man Yang, Tiina Leposky, Petri Ahokangas","doi":"10.1016/j.lrp.2025.102499","DOIUrl":"https://doi.org/10.1016/j.lrp.2025.102499","url":null,"abstract":"Transition towards sustainable business models (SBMs) has become an imperative practice for businesses. To ensure this change is systematic, firms need to transform all BM components⸻value creation, delivery, and capture⸻in a consistent manner. However, extant research lacks an understanding of the integrative mechanisms of value logic transition when modelling a business through the lens of sustainability. This study explores mechanisms for such transition towards SBMs. We follow companies operating in three traditional industries in Finland: mining, paper production, and shipbuilding. To tackle transition towards SBMs, we focus on context, intervention points, mechanisms, and outcomes of this change. We derive an integrative model that depicts how value components are transformed as a whole, thereby contributing to the literature on sustainability transitions and dynamic views of BMs.","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"35 1","pages":""},"PeriodicalIF":8.5,"publicationDate":"2025-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143050011","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-01-11DOI: 10.1016/j.lrp.2025.102498
Jeroen P.J. de Jong, Max Mulhuijzen, Brita Schemmann
Bootlegging and creative deviance studies have described “underground” innovations, which employees develop without managerial consent but with company benefits in mind. This phenomenon is explained by structural strain theory: when organizations have innovative goals but limited resources, some employees may pursue these goals without permission. Anecdotal observations, however, reveal underground employee behaviors that do not fit this pattern; underground innovations may serve different purposes and remain permanently invisible. We therefore conducted an explorative study of why and how employees develop underground innovations. Based on interviews and survey data at a multinational automotive company, underground innovations have three orientations: missionary (aimed to change company practices), user (to solve work problems), and exploratory (to cater to developers' passion for exploration). The three orientations differ in their involvement of others, deployed resources, and dissemination efforts. Without missionary orientation, underground innovations are not proactively diffused, inhibiting organizations from reaping their full benefits. We infer a refined theory based on constraints that prevent employees from being openly proactive. Specifically, underground innovation may be triggered by 1. lacking resources to pursue organizational innovation goals, 2. lacking resources and thresholds to improve work processes, and 3. the organization's inability to match work tasks with innovation workers' preferences. The last two constraints are easily overlooked, and organizations will capture more value from their human capital by stimulating the diffusion of user and exploratory-oriented projects.
{"title":"The nature of underground innovation: Missionary, user, and exploratory orientation","authors":"Jeroen P.J. de Jong, Max Mulhuijzen, Brita Schemmann","doi":"10.1016/j.lrp.2025.102498","DOIUrl":"https://doi.org/10.1016/j.lrp.2025.102498","url":null,"abstract":"Bootlegging and creative deviance studies have described “underground” innovations, which employees develop without managerial consent but with company benefits in mind. This phenomenon is explained by structural strain theory: when organizations have innovative goals but limited resources, some employees may pursue these goals without permission. Anecdotal observations, however, reveal underground employee behaviors that do not fit this pattern; underground innovations may serve different purposes and remain permanently invisible. We therefore conducted an explorative study of why and how employees develop underground innovations. Based on interviews and survey data at a multinational automotive company, underground innovations have three orientations: missionary (aimed to change company practices), user (to solve work problems), and exploratory (to cater to developers' passion for exploration). The three orientations differ in their involvement of others, deployed resources, and dissemination efforts. Without missionary orientation, underground innovations are not proactively diffused, inhibiting organizations from reaping their full benefits. We infer a refined theory based on constraints that prevent employees from being openly proactive. Specifically, underground innovation may be triggered by 1. lacking resources to pursue organizational innovation goals, 2. lacking resources and thresholds to improve work processes, and 3. the organization's inability to match work tasks with innovation workers' preferences. The last two constraints are easily overlooked, and organizations will capture more value from their human capital by stimulating the diffusion of user and exploratory-oriented projects.","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"24 1","pages":""},"PeriodicalIF":8.5,"publicationDate":"2025-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142990537","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-10DOI: 10.1016/j.lrp.2024.102495
David B. Dose, Ronny Reinhardt, Maria Krämer (née Schwabe), Gianfranco Walsh
Firms face a fundamental and persistent challenge in balancing the tensions between environmental sustainability and profitability, where elements that seem logical individually become contradictory when juxtaposed. Individual decision makers' beliefs about the tensions between environmental sustainability and profitability can shape decision outcomes, offering an intriguing micro-foundation for strategic choices. This article conceptualizes and proposes a scale to measure decision makers' beliefs about the tensions between environmental sustainability and profitability. Across three studies, we develop a reliable, valid, parsimonious 12-item environmental sustainability–profitability beliefs (ESPB) scale. Three further studies demonstrate its ability to predict evaluations of sustainable new product ideas, investment success in markets with different crowdfunding platforms, and information search efforts for sustainable new product ideas. Overall, the findings emphasize the important influence of individual-level beliefs about sustainability and profitability for determining strategic decision outcomes, enhancing the understanding of key micro-foundations of firms’ sustainability practices.
{"title":"Environmental sustainability–profitability beliefs among firm decision makers: Measurement and consequences","authors":"David B. Dose, Ronny Reinhardt, Maria Krämer (née Schwabe), Gianfranco Walsh","doi":"10.1016/j.lrp.2024.102495","DOIUrl":"https://doi.org/10.1016/j.lrp.2024.102495","url":null,"abstract":"Firms face a fundamental and persistent challenge in balancing the tensions between environmental sustainability and profitability, where elements that seem logical individually become contradictory when juxtaposed. Individual decision makers' beliefs about the tensions between environmental sustainability and profitability can shape decision outcomes, offering an intriguing micro-foundation for strategic choices. This article conceptualizes and proposes a scale to measure decision makers' beliefs about the tensions between environmental sustainability and profitability. Across three studies, we develop a reliable, valid, parsimonious 12-item environmental sustainability–profitability beliefs (ESPB) scale. Three further studies demonstrate its ability to predict evaluations of sustainable new product ideas, investment success in markets with different crowdfunding platforms, and information search efforts for sustainable new product ideas. Overall, the findings emphasize the important influence of individual-level beliefs about sustainability and profitability for determining strategic decision outcomes, enhancing the understanding of key micro-foundations of firms’ sustainability practices.","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"33 1","pages":""},"PeriodicalIF":8.5,"publicationDate":"2024-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142889000","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-17DOI: 10.1016/j.lrp.2024.102485
Chung-Jen Chen , You-Xiang Song , Bo-Kai Chow
This study examines the effects of the industry environment, corporate governance, and business strategy on the firm's choice of CEO successors from outside the company or within the firm, as well as the endogenous implications of the succession type for post-succession performance. Our findings indicate that: (1) firms are more likely to select their CEO successors from outside the company than to promote their successors within the firm when they are in less munificent, when the top executives are less entrenched, when the board structure is more independent, and when they pursue a differentiation strategy; (2) firms selecting their CEO successors from inside the company generally perform better than firms selecting their CEO successors outside the company; and (3) firms would make choices of succession type that best correspond to the conditions they encounter.
{"title":"Outside vs. inside succession: Environmental and organizational contexts, strategic decision, and firm performance","authors":"Chung-Jen Chen , You-Xiang Song , Bo-Kai Chow","doi":"10.1016/j.lrp.2024.102485","DOIUrl":"10.1016/j.lrp.2024.102485","url":null,"abstract":"<div><div>This study examines the effects of the industry environment, corporate governance, and business strategy on the firm's choice of CEO successors from outside the company or within the firm, as well as the endogenous implications of the succession type for post-succession performance. Our findings indicate that: (1) firms are more likely to select their CEO successors from outside the company than to promote their successors within the firm when they are in less munificent, when the top executives are less entrenched, when the board structure is more independent, and when they pursue a differentiation strategy; (2) firms selecting their CEO successors from inside the company generally perform better than firms selecting their CEO successors outside the company; and (3) firms would make choices of succession type that best correspond to the conditions they encounter.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"58 1","pages":"Article 102485"},"PeriodicalIF":7.4,"publicationDate":"2024-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142696430","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-11-16DOI: 10.1016/j.lrp.2024.102486
Sharmistha Chowdhury , Revti Raman Sharma , Yang Yu
Mergers and acquisitions are a complex and persistent global phenomenon. Theoretical cross-fertilization enhances our understanding of their behavior, especially in different contexts. We use organizational learning theory and institutional logic perspective to hypothesize the direct effect of inward internationalization, the negative moderating effect of family ownership and domestic institutional ownership, and the positive moderating effect of foreign institutional ownership on cross-border acquisitions (CBAs) by emerging economy multinational enterprises (MNEs). Based on data from 199 Indian MNEs over nine years consisting of an unbalanced panel with 1619 observations, our findings supported all the hypotheses except the moderating effects of domestic institutional ownership. Our findings explain that the impact of learning from inward internationalization on CBAs is not similar for all firms; rather, it depends upon ownership groups because of their institutional logic. We have proposed socioemotional wealth logic for family ownership, cautious fosterer logic for domestic institutional ownership, and yield maximizer logic for foreign institutional ownership. Our findings enhance our understanding of firms’ CBA behavior by utilizing theoretical cross-fertilization and examining CBAs in an emerging economy context.
{"title":"Inward internationalization and cross border acquisitions by emerging economy multinational enterprises: The moderating role of family and institutional ownership","authors":"Sharmistha Chowdhury , Revti Raman Sharma , Yang Yu","doi":"10.1016/j.lrp.2024.102486","DOIUrl":"10.1016/j.lrp.2024.102486","url":null,"abstract":"<div><div>Mergers and acquisitions are a complex and persistent global phenomenon. Theoretical cross-fertilization enhances our understanding of their behavior, especially in different contexts. We use organizational learning theory and institutional logic perspective to hypothesize the direct effect of inward internationalization, the negative moderating effect of family ownership and domestic institutional ownership, and the positive moderating effect of foreign institutional ownership on cross-border acquisitions (CBAs) by emerging economy multinational enterprises (MNEs). Based on data from 199 Indian MNEs over nine years consisting of an unbalanced panel with 1619 observations, our findings supported all the hypotheses except the moderating effects of domestic institutional ownership. Our findings explain that the impact of learning from inward internationalization on CBAs is not similar for all firms; rather, it depends upon ownership groups because of their institutional logic. We have proposed socioemotional wealth logic for family ownership, cautious fosterer logic for domestic institutional ownership, and yield maximizer logic for foreign institutional ownership. Our findings enhance our understanding of firms’ CBA behavior by utilizing theoretical cross-fertilization and examining CBAs in an emerging economy context.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"58 1","pages":"Article 102486"},"PeriodicalIF":7.4,"publicationDate":"2024-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142696385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
To remain competitive in a shifting sociocultural landscape, firms often introduce new meanings—new reasons why customers use their products or services—that must be embedded into their strategy. However, customers are active participants in value creation processes, rather than passive recipients. This is especially true in services, where value is created in the interaction between provider and consumer. When designing business models, firms must thus consider customers’ meaning-making activities, which are highly subjective and influenced by cultural frames and personal characteristics. Yet, the business model literature has largely overlooked how firms design business models to articulate new meanings and shape customer perceptions. In this study, we explore the role of business model design in determining how firms articulate new meanings that customers subsequently perceive. We present a comparative case study of two store concepts developed by the same entrepreneur, both introducing the same new meanings. Through in-depth interviews with the founder and CEO, in-store observations, and archival data, we analyze their strategy for introducing new meanings. Additionally, we apply topic modeling to online reviews to examine how customers interpreted these new meanings. Our findings suggest that firms can shape customer perceptions of new meanings through business model design, particularly by leveraging value creation mechanisms tied to value delivery. This study enriches the business model design literature and connects it to the innovation of meaning discourse. It also offers practitioners insights into how to use firm strategy to convey intended meanings to customers.
{"title":"Meaning is in the eye of the beholder: Reconciling business model design with customer meaning-making","authors":"Silvia Sanasi , Federico Artusi , Emilio Bellini , Antonio Ghezzi","doi":"10.1016/j.lrp.2024.102484","DOIUrl":"10.1016/j.lrp.2024.102484","url":null,"abstract":"<div><div>To remain competitive in a shifting sociocultural landscape, firms often introduce new meanings—new reasons why customers use their products or services—that must be embedded into their strategy. However, customers are active participants in value creation processes, rather than passive recipients. This is especially true in services, where value is created in the interaction between provider and consumer. When designing business models, firms must thus consider customers’ meaning-making activities, which are highly subjective and influenced by cultural frames and personal characteristics. Yet, the business model literature has largely overlooked how firms design business models to articulate new meanings and shape customer perceptions. In this study, we explore the role of business model design in determining how firms articulate new meanings that customers subsequently perceive. We present a comparative case study of two store concepts developed by the same entrepreneur, both introducing the same new meanings. Through in-depth interviews with the founder and CEO, in-store observations, and archival data, we analyze their strategy for introducing new meanings. Additionally, we apply topic modeling to online reviews to examine how customers interpreted these new meanings. Our findings suggest that firms can shape customer perceptions of new meanings through business model design, particularly by leveraging value creation mechanisms tied to value delivery. This study enriches the business model design literature and connects it to the innovation of meaning discourse. It also offers practitioners insights into how to use firm strategy to convey intended meanings to customers.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 6","pages":"Article 102484"},"PeriodicalIF":7.4,"publicationDate":"2024-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142655721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-20DOI: 10.1016/j.lrp.2024.102483
Jiaju Yan , Lei Xu , Rhonda K. Reger , Codou Samba
The influence of mass media sentiment on the IPO performance of newly listed firms has received increasing research attention in management and entrepreneurship research. However, prior literature assumes the beneficial role of positive media sentiment in investors’ evaluation of the firm yet overlooks the potential downside of too much positive media sentiment. Based on two theories, dual processing theory and celebrity theory, we develop and test a curvilinear relationship between positive media sentiment and newly listed firms’ IPO performance. Further, we suggest that IPO market conditions, offering an important information cue, moderate this curvilinear relationship. Drawing a representative sample of newly listed U.S. firms in recent decades, we find support for the proposed inverted U-shape relationship and a moderating effect of market conditions.
在管理学和创业学研究中，大众媒体情绪对新上市企业首次公开募股表现的影响越来越受到关注。然而，以往的文献都认为媒体的正面情绪对投资者评价公司有利，但却忽视了过多的媒体正面情绪可能带来的负面影响。基于双重处理理论和名人理论，我们提出并检验了媒体正面情绪与新上市公司 IPO 表现之间的曲线关系。此外，我们还认为，IPO 市场条件提供了重要的信息线索，可以缓和这种曲线关系。通过对近几十年来新上市的美国公司进行代表性抽样调查，我们发现所提出的倒 U 型关系以及市场条件的调节作用得到了支持。
{"title":"Too much of a good thing: Addressing the shape of relationship between positive media sentiment and IPO performance","authors":"Jiaju Yan , Lei Xu , Rhonda K. Reger , Codou Samba","doi":"10.1016/j.lrp.2024.102483","DOIUrl":"10.1016/j.lrp.2024.102483","url":null,"abstract":"<div><div>The influence of mass media sentiment on the IPO performance of newly listed firms has received increasing research attention in management and entrepreneurship research. However, prior literature assumes the beneficial role of positive media sentiment in investors’ evaluation of the firm yet overlooks the potential downside of too much positive media sentiment. Based on two theories, dual processing theory and celebrity theory, we develop and test a curvilinear relationship between positive media sentiment and newly listed firms’ IPO performance. Further, we suggest that IPO market conditions, offering an important information cue, moderate this curvilinear relationship. Drawing a representative sample of newly listed U.S. firms in recent decades, we find support for the proposed inverted U-shape relationship and a moderating effect of market conditions.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 6","pages":"Article 102483"},"PeriodicalIF":7.4,"publicationDate":"2024-10-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142530298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-12DOI: 10.1016/j.lrp.2024.102482
Christopher Golding , Josh Morton , Aljona Zorina
In this paper, we build theory concerning how top managers can capture and use the emotional expressions of peripheral actors—actors who are not typically involved in strategy—to help them formulate strategy, using a real-time case. We show how the existence of emotional tumult amongst peripheral actors can force top managers to reassess strategy and engage in ‘emotion processing.’ Through three inter-related processes—canvassing, harnessing, and integrating—top managers are able to solicit emotional expressions from peripheral actors and understand them in such a way that they provide top managers with information regarding the appropriateness of their strategic decisions and directions, as they formulate strategy inclusively. Top managers consider the ‘emotional volume’ of issues that are raised by peripheral actors, in terms of how frequently and emotionally they are expressed, allowing them to determine which issues demand attention and action. When peripheral actors express positive emotions, it signals approval of and support for strategy, whereas expressions of negative emotion can indicate the existence of problems and a need for top managers to adjust the contents of strategy. This study has important implications for the literature on strategy formulation and emotion, elucidating how emotional expressions of those outside the organizational upper echelons can be used as an informational resource during strategy formulation.
{"title":"Opening up emotionally: How top managers use peripheral actors' emotional expressions during inclusive strategy formulation","authors":"Christopher Golding , Josh Morton , Aljona Zorina","doi":"10.1016/j.lrp.2024.102482","DOIUrl":"10.1016/j.lrp.2024.102482","url":null,"abstract":"<div><div>In this paper, we build theory concerning how top managers can capture and use the emotional expressions of peripheral actors—actors who are not typically involved in strategy—to help them formulate strategy, using a real-time case. We show how the existence of emotional tumult amongst peripheral actors can force top managers to reassess strategy and engage in ‘emotion processing.’ Through three inter-related processes—canvassing, harnessing, and integrating—top managers are able to solicit emotional expressions from peripheral actors and understand them in such a way that they provide top managers with information regarding the appropriateness of their strategic decisions and directions, as they formulate strategy inclusively. Top managers consider the ‘emotional volume’ of issues that are raised by peripheral actors, in terms of how frequently and emotionally they are expressed, allowing them to determine which issues demand attention and action. When peripheral actors express positive emotions, it signals approval of and support for strategy, whereas expressions of negative emotion can indicate the existence of problems and a need for top managers to adjust the contents of strategy. This study has important implications for the literature on strategy formulation and emotion, elucidating how emotional expressions of those outside the organizational upper echelons can be used as an informational resource during strategy formulation.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 6","pages":"Article 102482"},"PeriodicalIF":7.4,"publicationDate":"2024-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142530297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-01DOI: 10.1016/j.lrp.2024.102481
Tejaswi Channagiri , Walter J. Ferrier , Rhonda K. Reger
Competitive dynamics research has often used the AMC framework—awareness, motivation, and capability—to explain how different factors influence the identification of specific other firms as competitors and the likelihood of future competitive interactions with them. However, this stream of research has largely overlooked the role of social evaluations in determining which firms are targeted. We study how a specific form of social evaluation—relative status—impacts the firm's awareness of specific competitors and the motivation to attack them. Whereas prior research has principally viewed the AMC framework as a Gestalt-like black box, our research setting enabled us to measure and explore the interrelationships that occur within the AMC framework. We pose our theory as competing logics: Awareness mediates the relationship between relative status and motivation versus relative status moderates the relationship between awareness and motivation. We tested these competing arguments using a unique dataset of food trucks in a mid-sized city in the U.S. We find that low-status firms exhibit a strong motivation to attack higher-status competitors primarily due to the greater attention the high-status firms garner. Further, we find no support for a moderation effect. Our study helps arrive at a better understand the interplay between awareness and motivation in the context of social evaluations.
{"title":"To attack or not attack? The role of relative status, awareness, and motivation","authors":"Tejaswi Channagiri , Walter J. Ferrier , Rhonda K. Reger","doi":"10.1016/j.lrp.2024.102481","DOIUrl":"10.1016/j.lrp.2024.102481","url":null,"abstract":"<div><div>Competitive dynamics research has often used the AMC framework—awareness, motivation, and capability—to explain how different factors influence the identification of specific other firms as competitors and the likelihood of future competitive interactions with them. However, this stream of research has largely overlooked the role of social evaluations in determining which firms are targeted. We study how a specific form of social evaluation—relative status—impacts the firm's awareness of specific competitors and the motivation to attack them. Whereas prior research has principally viewed the AMC framework as a Gestalt-like black box, our research setting enabled us to measure and explore the interrelationships that occur <em>within</em> the AMC framework. We pose our theory as competing logics: Awareness mediates the relationship between relative status and motivation versus relative status moderates the relationship between awareness and motivation. We tested these competing arguments using a unique dataset of food trucks in a mid-sized city in the U.S. We find that low-status firms exhibit a strong motivation to attack higher-status competitors primarily due to the greater attention the high-status firms garner. Further, we find no support for a moderation effect. Our study helps arrive at a better understand the interplay between awareness and motivation in the context of social evaluations.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 6","pages":"Article 102481"},"PeriodicalIF":7.4,"publicationDate":"2024-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142572270","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-09-21DOI: 10.1016/j.lrp.2024.102480
Kerry Hudson , V. Kumar , Robert E. Morgan
The performance benefits of functional capabilities in marketing, technology, and operations rely on their routinization in organizational processes, but these also require renewal in response to environmental change. This raises a fundamental tension: is it better to maximally develop functional capabilities that offer the highest contingent benefit in present market conditions, and/or to modify capabilities as conditions change? We propose two measures of a firm's ability to renew its functional capabilities to align with market conditions: capability heterogeneity (variation in extant capabilities) and capability adaptability (selection among these strategic options). In a 20-year panel of 771 firms, we find environmental change increases the importance of these aspects of how capabilities are managed relative to what capabilities a firm possesses: In stable product-markets, capability heterogeneity and adaptability incur significant costs whereas functional capabilities improve profitability. In contrast, functional capabilities can be detrimental in fluid product-markets whereas heterogeneity and adaptability increase profitability. Notably, marketing capability remains beneficial across environments, acting as a profitable alternative to capability heterogeneity and adaptability when future conditions are uncertain. This evolutionary perspective contributes to ongoing theoretical debates on the conceptualization and consequences of capabilities, with practical implications for mitigating the risks of excessive inertia or change.
{"title":"An evolutionary perspective on capabilities for fluid product-markets: The contingent effects of routinization and renewal in marketing, R&D, and operations","authors":"Kerry Hudson , V. Kumar , Robert E. Morgan","doi":"10.1016/j.lrp.2024.102480","DOIUrl":"10.1016/j.lrp.2024.102480","url":null,"abstract":"<div><div>The performance benefits of functional capabilities in marketing, technology, and operations rely on their routinization in organizational processes, but these also require renewal in response to environmental change. This raises a fundamental tension: is it better to maximally develop functional capabilities that offer the highest contingent benefit in present market conditions, and/or to modify capabilities as conditions change? We propose two measures of a firm's ability to renew its functional capabilities to align with market conditions: <em>capability heterogeneity</em> (variation in extant capabilities) and <em>capability adaptability</em> (selection among these strategic options). In a 20-year panel of 771 firms, we find environmental change increases the importance of these aspects of <em>how</em> capabilities are managed relative <em>to what</em> capabilities a firm possesses: In stable product-markets, capability heterogeneity and adaptability incur significant costs whereas functional capabilities improve profitability. In contrast, functional capabilities can be detrimental in fluid product-markets whereas heterogeneity and adaptability increase profitability. Notably, marketing capability remains beneficial across environments, acting as a profitable alternative to capability heterogeneity and adaptability when future conditions are uncertain. This evolutionary perspective contributes to ongoing theoretical debates on the conceptualization and consequences of capabilities, with practical implications for mitigating the risks of excessive inertia or change.</div></div>","PeriodicalId":18141,"journal":{"name":"Long Range Planning","volume":"57 6","pages":"Article 102480"},"PeriodicalIF":7.4,"publicationDate":"2024-09-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142422801","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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