Research often examines disruption in the context of head-to-head competition between firms and technologies. In contrast, we examine the unique dynamics of disruptive technologies within supplier ecosystems. We do so through an inductive multiple case study set in the global advertising industry from 2008–2013, as the industry grappled with the emergence of social media. Using rich archival and field data, we closely track five global consumer goods manufacturers and their associated advertising suppliers as they attempted to integrate social media into their advertising activities. Our primary contribution is to unpack the process by which firms reconfigure their supplier ecosystems to address disruptive new technologies. Our framework reveals that integrating new technologies may require firms to reconfigure the distributions of both activity and power, and that fundamental trade-offs may leave the value of new technologies unrealized. Broadly, we contribute to research and theory on buyer-supplier relationships, alliances, and technology disruption by bringing a more realistic perspective that considers firms’ network of suppliers and interfirm turf wars in technology adoption.
{"title":"Forced Ecosystems and Digital Stepchildren: Reconfiguring Advertising Suppliers to Realize Disruptive Social Media Technology","authors":"Pinar Ozcan, Douglas P. Hannah","doi":"10.1287/stsc.2020.1366","DOIUrl":"https://doi.org/10.1287/stsc.2020.1366","url":null,"abstract":"Research often examines disruption in the context of head-to-head competition between firms and technologies. In contrast, we examine the unique dynamics of disruptive technologies within supplier ecosystems. We do so through an inductive multiple case study set in the global advertising industry from 2008–2013, as the industry grappled with the emergence of social media. Using rich archival and field data, we closely track five global consumer goods manufacturers and their associated advertising suppliers as they attempted to integrate social media into their advertising activities. Our primary contribution is to unpack the process by which firms reconfigure their supplier ecosystems to address disruptive new technologies. Our framework reveals that integrating new technologies may require firms to reconfigure the distributions of both activity and power, and that fundamental trade-offs may leave the value of new technologies unrealized. Broadly, we contribute to research and theory on buyer-supplier relationships, alliances, and technology disruption by bringing a more realistic perspective that considers firms’ network of suppliers and interfirm turf wars in technology adoption.","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-08-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2020.1366","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46714480","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jeroen Struben, Brandon H. Lee, Christopher B. Bingham
Collective action is critical for successful market formation. However, relatively little is known about how and under what conditions actors overcome collective action problems to successfully form new markets. Using the benefits of simulation methods, we uncover how collective action problems result from actor resource allocation decisions interacting with each other and how the severity of these problems depends on central market- and actor-related characteristics. Specifically, we show that collective action problems occur when actors undervalue the benefits of market-oriented resource allocation and when actors contribute resources that are imperfectly substitutable. Furthermore, we show that collective action problems occur when actors are embedded in networks with others sharing a similar role in market formation. Collectively, our findings contribute new insights to organization theory regarding collective action and market formation and to strategy on value creation and strategic decision making regarding resource allocation.
{"title":"Collective Action Problems and Resource Allocation During Market Formation","authors":"Jeroen Struben, Brandon H. Lee, Christopher B. Bingham","doi":"10.1287/stsc.2020.0105","DOIUrl":"https://doi.org/10.1287/stsc.2020.0105","url":null,"abstract":"Collective action is critical for successful market formation. However, relatively little is known about how and under what conditions actors overcome collective action problems to successfully form new markets. Using the benefits of simulation methods, we uncover how collective action problems result from actor resource allocation decisions interacting with each other and how the severity of these problems depends on central market- and actor-related characteristics. Specifically, we show that collective action problems occur when actors undervalue the benefits of market-oriented resource allocation and when actors contribute resources that are imperfectly substitutable. Furthermore, we show that collective action problems occur when actors are embedded in networks with others sharing a similar role in market formation. Collectively, our findings contribute new insights to organization theory regarding collective action and market formation and to strategy on value creation and strategic decision making regarding resource allocation.","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2020.0105","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48873732","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"“Status Climbing vs. Bridging: Multinational Stakeholder Engagement Strategies”—Recipient of the 2018 Ralph Gomory Best Industry Studies Paper Award","authors":"Lite J. Nartey, Witold J. Henisz, S. Dorobantu","doi":"10.1287/stsc.2019.0091","DOIUrl":"https://doi.org/10.1287/stsc.2019.0091","url":null,"abstract":"","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-05-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2019.0091","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42791160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine whether firms learn from digital technology failures in the form of data breach events, based on the effectiveness of their failure responses. We argue that firms experiencing such technological failures interpret them broadly as organizational problems, and undertake unrelated divestitures and top management turnover to achieve better standardization and to remove dysfunctional routines. We test our hypotheses on unrelated subsidiary divestitures and chief technology officer (CTO) turnovers undertaken by 8,760 publicly traded U.S. firms that were at risk of experiencing data breaches involving the loss of personally identifiable information during the period 2005–2016. We find that data breaches significantly increase the hazard of unrelated divestitures and CTO turnover, and that these failure responses are sensitive to firms’ aspiration-performance feedback. However, whereas unrelated divestitures reduce the reoccurrence of data breaches, CTO turnover has no significant effect. Our findings suggest a corrective role of unrelated divestitures for failure learning, and the symbolic nature of CTO turnover as a failure response. Our study unpacks failure learning that hitherto has been inferred from a firm’s own failure experience and industry-wide failures, and highlights the interplay between the digital and nondigital components of a firm in the understudied context of data breaches.
{"title":"Learning from Digital Failures? The Effectiveness of Firms’ Divestiture and Management Turnover Responses to Data Breaches","authors":"G. Say, G. Vasudeva","doi":"10.1287/stsc.2020.0106","DOIUrl":"https://doi.org/10.1287/stsc.2020.0106","url":null,"abstract":"We examine whether firms learn from digital technology failures in the form of data breach events, based on the effectiveness of their failure responses. We argue that firms experiencing such technological failures interpret them broadly as organizational problems, and undertake unrelated divestitures and top management turnover to achieve better standardization and to remove dysfunctional routines. We test our hypotheses on unrelated subsidiary divestitures and chief technology officer (CTO) turnovers undertaken by 8,760 publicly traded U.S. firms that were at risk of experiencing data breaches involving the loss of personally identifiable information during the period 2005–2016. We find that data breaches significantly increase the hazard of unrelated divestitures and CTO turnover, and that these failure responses are sensitive to firms’ aspiration-performance feedback. However, whereas unrelated divestitures reduce the reoccurrence of data breaches, CTO turnover has no significant effect. Our findings suggest a corrective role of unrelated divestitures for failure learning, and the symbolic nature of CTO turnover as a failure response. Our study unpacks failure learning that hitherto has been inferred from a firm’s own failure experience and industry-wide failures, and highlights the interplay between the digital and nondigital components of a firm in the understudied context of data breaches.","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2020.0106","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48502767","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper studies how cognitive and structural antecedents affect adaptation to disruptive innovations. We do so by analyzing how video game firms adapted to the free-to-play business model around the period of disruption (2012–2015). Our data set (which contains 461 firms, collectively employing 83,157 individuals) allows us to characterize each firm’s organizational structure and each employee’s experience profile; it also captures the performance of firms under the existing and new technological regimes (that is, firms that do and do not adopt the disruptive innovation). We show that adoption, implementation under the existing regime, and implementation under the new regime are affected by cognitive and structural antecedents in different and often opposite ways. We also point out conditions under which cognitive and structural antecedents can compensate for each other. Overall, our study contributes to a better understanding of how firms should organize to face disruptive innovations.
{"title":"Cognitive and Structural Antecedents of Innovation: A Large-Sample Study","authors":"S. Lee, Felipe A. Csaszar","doi":"10.1287/stsc.2020.0107","DOIUrl":"https://doi.org/10.1287/stsc.2020.0107","url":null,"abstract":"This paper studies how cognitive and structural antecedents affect adaptation to disruptive innovations. We do so by analyzing how video game firms adapted to the free-to-play business model around the period of disruption (2012–2015). Our data set (which contains 461 firms, collectively employing 83,157 individuals) allows us to characterize each firm’s organizational structure and each employee’s experience profile; it also captures the performance of firms under the existing and new technological regimes (that is, firms that do and do not adopt the disruptive innovation). We show that adoption, implementation under the existing regime, and implementation under the new regime are affected by cognitive and structural antecedents in different and often opposite ways. We also point out conditions under which cognitive and structural antecedents can compensate for each other. Overall, our study contributes to a better understanding of how firms should organize to face disruptive innovations.","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":"1 1","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2020.0107","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41427602","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jared Nai, Reddi Kotha, Jayanth Narayanan, P. Puranam
Organizations often keep secret their decisions about what employees receive (e.g., salary, budgets, benefits) to manage fairness concerns. We propose that this can be counterproductive because of ...
{"title":"Transparency and Fairness in Organizational Decisions: An Experimental Investigation Using the Paired Ultimatum Game","authors":"Jared Nai, Reddi Kotha, Jayanth Narayanan, P. Puranam","doi":"10.1287/stsc.2019.0100","DOIUrl":"https://doi.org/10.1287/stsc.2019.0100","url":null,"abstract":"Organizations often keep secret their decisions about what employees receive (e.g., salary, budgets, benefits) to manage fairness concerns. We propose that this can be counterproductive because of ...","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2019.0100","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45508983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Catalyzing Incubation: How does Addressing Mission-Oriented Grand Challenges Enable Industry Inception?","authors":"Rajshree Agarwal, Seojin Kim, Mahka Moeen","doi":"10.2139/ssrn.3769182","DOIUrl":"https://doi.org/10.2139/ssrn.3769182","url":null,"abstract":"","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":"1 1","pages":""},"PeriodicalIF":3.9,"publicationDate":"2020-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"68641100","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The recent attention paid to the challenge of digital transformation signals an inflection point in the impact of digital technology on the competitive landscape. We suggest that this transition ca...
最近对数字化转型挑战的关注标志着数字技术对竞争格局影响的拐点。我们建议这种转变可以…
{"title":"What Is Different About Digital Strategy? From Quantitative to Qualitative Change","authors":"Ron Adner, P. Puranam, Feng Zhu","doi":"10.1287/stsc.2019.0099","DOIUrl":"https://doi.org/10.1287/stsc.2019.0099","url":null,"abstract":"The recent attention paid to the challenge of digital transformation signals an inflection point in the impact of digital technology on the competitive landscape. We suggest that this transition ca...","PeriodicalId":45295,"journal":{"name":"Strategy Science","volume":" ","pages":""},"PeriodicalIF":3.9,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1287/stsc.2019.0099","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45887611","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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