{"title":"Corporate Renewal and Turnaround of Troubled Businesses: The Private-Equity Advantage","authors":"K. R. Harrigan, B. Wing","doi":"10.1561/111.00000032","DOIUrl":"https://doi.org/10.1561/111.00000032","url":null,"abstract":"Turning around distressed operations is an alternative response to underperformance—as contrasted with using transactions such as divestitures or resource redeployment to deal with troublesome assets during corporate renewal. Taking the perspective of private-equity owners whose interests are primarily financial, we explain how their approach to turnarounds of troubled companies may differ from that of managers within publicly-traded firms who may envision the realization of longer-term sources of operating synergy among their firms’ lines of business. Financial owners can revitalize firms’ performance more effectively because they use turnarounds differently. Observations have implications for consulting engagements involving organizational decline, for corporate directors who must respond to outside pressures for performance improvements from shareholder activists, as well as for managers who are faced with corporate renewal challenges inside their companies. Managers within publicly-traded firms are not maximizing value for their firm’s investors if they cannot turn around troubled operations effectively.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"13 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80762537","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":"Focused Renewal: Reflections on Berry and Kaul, and Corredor and Mahoney","authors":"P. Nary","doi":"10.1561/111.00000028","DOIUrl":"https://doi.org/10.1561/111.00000028","url":null,"abstract":"The topic of strategic renewal, which “includes the process, content, and outcome of refreshment or replacement of attributes of an organization that have the potential to substantially affect its long-term prospects” (Agarwal & Helfat, 2009; p.282) is, in my opinion","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87171565","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":"Retrospective on Corporate Renewal","authors":"K. R. Harrigan","doi":"10.1561/111.00000024","DOIUrl":"https://doi.org/10.1561/111.00000024","url":null,"abstract":"An historical review of managers’ corporate renewal decisions reveals an evolution has occurred away from using operating turnarounds in favor of making changes in corporate scope via transactions. One explanation for this progression is that financial valuation considerations supplanted other inputs to strategic logic in seeking value creation—a reflection of the rising institutional influence of financial institutions. The market for corporate control has brought financial owners into the arena of corporate renewal activities. They have embraced the earlier emphasis upon fixing underperforming resources to accomplish corporate renewal. This evolution was supported by the rising importance of private equity firms as suitors to acquire distressed assets. As underperforming resources have been passed from firm to firm until finding an owner willing to confront their operating challenges, specialized financial owners have risen in importance in corporate renewal while the importance of strategic owners in performing operational turnarounds to renew their corporations has eroded.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"51 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76664975","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":"Is Competitive Advantage Intellectually Sustainable?","authors":"M. Lieberman","doi":"10.1561/111.00000016","DOIUrl":"https://doi.org/10.1561/111.00000016","url":null,"abstract":"One can never be sure what a finding about “competitive advantage” means unless one reads the “fine print” of a particular work’s definition. ... [W]hen people use the same term to mean many different things and/or call the same thing by many different terms, it is hard either to have a conversation or to efficiently present one’s findings. As Oxley, Rivkin, and Ryall (2010, p. 379) have suggested, one criterion for a piece of theory in strategy to be high quality should be that “The theoretical claims [of the work] are unambiguous: interpretation of its terms, premises and conclusions does not vary from scholar to scholar.” The strategy field is clearly failing to meet that test with respect to “competitive advantage.” At least one scholar (Lieberman, 2010) has called for abandonment of the term in research settings for precisely this reason.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84098807","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":"Declining Markets, Resource Specificity, and Redeployment Decisions","authors":"Timo Sohl, Timothy B. Folta","doi":"10.1561/111.00000033","DOIUrl":"https://doi.org/10.1561/111.00000033","url":null,"abstract":"This essay emphasizes that the key determinants of redeployment decisions—adjustment costs and transaction costs—are illuminated by consideration of the sources of resource specificity. Building on prior work separating the degree of a resource’s firm specificity and usage specificity, we develop a set of novel propositions on the conditions under which headquarters are more likely to withdraw a resource from a declining market and transfer it to a more attractive one. First, we clarify how usage specificity and business relatedness may interact in determining adjustment costs. Second, we examine how firm specificity and market transaction costs may interact in determining the use of resource redeployment. Third, we integrate the dimensions of usageand firm-specificity into our framework explaining redeployment decisions. Overall, this essay contributes to an improved understanding of the self-selection processes of redeployment decisions and provides managers with a framework to evaluate particular resources as potential candidates for internal redeployment in the course of corporate renewal.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89583207","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":"Toward a Unified Theory of Internal Innovation and Strategic Renewal: Comment on Furr & Eggers and Miller","authors":"Dan J. Wang","doi":"10.1561/111.00000031","DOIUrl":"https://doi.org/10.1561/111.00000031","url":null,"abstract":"","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90235721","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":"Multi-business Firms' Corporate Renewal Decisions: Divestiture Governance Mode Choice of Corporate Spin-Offs and Equity Carve-Outs","authors":"Sandra Corredor, Joseph T. Mahoney","doi":"10.1561/111.00000027","DOIUrl":"https://doi.org/10.1561/111.00000027","url":null,"abstract":"The primary functions of corporate headquarters in multi-business firms are for entrepreneurial value creation and administrative loss prevention. A prominent way in which firms can renew their resources and capabilities is through divestitures. While the positive effects of divestitures on parent companies are well documented, we know relatively less about the comparative assessment of different divestiture governance modes. To address this research gap, we focus on a comparative assessment of two divestiture governance modes – corporate spin-offs and equity carve-outs – and examine under what conditions each divestiture governance mode is more likely to benefit the parent company. Five divestiture corporate goals are identified: address business unit under-performance; recover from corporate parent funding deficit; reduce liability risk; parent company’s managerial refocus; and respond to third parties’ interactions. We also explore two boundary conditions that influence the corporate parent’s divestiture governance mode choice, namely potential economic holdup problems between the parent company and the divested business unit; and uncertainty in divested business unit performance. We organize these managerial goals and boundary conditions within four transaction cost economics and real options themes, i.e., adaptability, contract law, incentive intensity, and intertemporal spillovers to explain and predict corporate parents’ divestiture governance mode choice, and suggest research opportunities to further join transaction cost economics and real options theory for explaining corporate strategy more generally, and the parent company’s divestiture governance mode choice of corporate spin-offs and equity carve-outs, in particular.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90235854","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":"Foundations and Futures of Strategic Management","authors":"M. Leiblein, J. Reuer","doi":"10.2139/ssrn.3396754","DOIUrl":"https://doi.org/10.2139/ssrn.3396754","url":null,"abstract":"Research in strategic management has burgeoned in the last few decades. This growth and specialization not only reflects impressive progress but also raises questions about the boundaries and future direction of the field. In an effort to promote the accumulation and integration of insights regarding strategic management we trace research in the field through a series of four generations of scholarship. In so doing, we highlight some of the most important challenges and contributions of each of these generations and note the tensions and opportunities presented by the field's focus on fundamental issues and frontier research topics. We also note the various integration mechanisms that have been called for and discuss their merits and demerits. We conclude by discussing the role of the Strategic Management Review as a complement to existing strategy journals.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85237574","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":"A Possible Micro-Foundation for the RBV and its Implications","authors":"B. Wernerfelt","doi":"10.1561/111.00000003","DOIUrl":"https://doi.org/10.1561/111.00000003","url":null,"abstract":"A central question in strategy asks in which markets and segments a given firm should compete. Any answer to this question is based on an implicit theory of the scope of the firm, and any theory of the firm implies an answer. The economics literature contains several slightly different theories of the firm, and we here focus on one which is based on advantages of specialization and what could be described as “increasing returns to scale” in negotiations. We outline the theory and show how its recommendations are very similar to those of the RBV. There are, however, subtle differences and we highlight several of those.","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88243561","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}
Richard Bitange Nyaoga , Mingzheng Wang , Peterson Obara Magutu
{"title":"Does Capacity Utilization Mediate the Relationship between Operations Constraint Management and Value Chain Performance of Tea Processing Firms? Evidence from Kenya","authors":"Richard Bitange Nyaoga , Mingzheng Wang , Peterson Obara Magutu","doi":"10.1016/j.ism.2015.06.001","DOIUrl":"10.1016/j.ism.2015.06.001","url":null,"abstract":"<div><p>The environment in which most businesses operate in is characterized by very stiff competition. Thus, organizations are designing various strategies to enable them create competitive advantage and improve the welfare of their stakeholders. This paper sought to establish the mediation role of capacity utilization in the relationship between operations constraint management and value chain performance among tea processing firms based on perspectives from Kenya. Specifically the study sought to answer the following research question: Is there a mediating role played by capacity utilization on the relationship between operations constraint management and value chain performance of tea processing firms in Kenya. The study adopted a cross-sectional research design. A sample of eighty-four (84) tea processing firms was used, and the respondents were the factory Chief accountants, production managers, and the environmental representatives. Multiple regression and correlation analysis were used to analyze the data. The findings show that the moderating effect of capacity utilization in the relationship between operations constraints management and the firm's value chain performance is positive and significant. Applying the Theory of Constraints (TOC) philosophy in the decision-making process in managing capacity, will improve the capacities of the bottleneck resources hence increase the Throughput and creating competitive advantage.</p></div>","PeriodicalId":100721,"journal":{"name":"International Strategic Management Review","volume":"3 1","pages":"Pages 81-95"},"PeriodicalIF":0.0,"publicationDate":"2015-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1016/j.ism.2015.06.001","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81794094","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}