Antecedents and temporal dynamics of strategic divergence in multinational corporations: Evidence from Europe |
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| Authors: | Matthias Brauer Mark Heitmann |
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| Institution: | 1. Institute of Management, University of St. Gallen, Dufourstrasse 40a, 9000 St. Gallen, Switzerland;2. University of Hamburg, Welckerstraße 8, 20354 Hamburg, Germany;1. Institut für Theoretische Teilchenphysik und Kosmologie, RWTH Aachen University, D-52056 Aachen, Germany;2. Institute of Physics, University of Debrecen, H-4010 Debrecen P.O.Box 105, Hungary;3. University of Nova Gorica, Laboratory for Astroparticle Physics, SI-5000 Nova Gorica, Slovenia;4. The H. Niewodniczański Institute of Nuclear Physics, Polish Academy of Sciences, Radzikowskiego 152, 31-342 Cracow, Poland;5. Institute of Nuclear Physics, NCSR Demokritos, 15310, Athens, Greece;6. Departamento de Fisica Teorica y del Cosmos, Universidad de Granada, E-18071 Granada, Spain;7. Fachbereich C, Bergische Universität Wuppertal, D-42097 Wuppertal, Germany;1. Department of Economics, Institute for Management Research, Radboud University Nijmegen, P.O. Box 9108, 6500 HK Nijmegen, The Netherlands;2. Faculty of Economics and Business, University of Amsterdam, Roetersstraat 11, 1018 WB, The Netherlands;1. Instituto de Telecomunicações and Departamento de Física da Universidade de Aveiro, 3810-193 Aveiro, Portugal;2. Instituto de Telecomunicações and TEMA – NRD, Mechanical Engineering Department and Aveiro Institute of Nanotechnology, University of Aveiro, 3810-193 Aveiro, Portugal;3. Department of Physics and CICECO Universidade de Aveiro, 3810-193 Aveiro, Portugal;4. Instituto de Telecomunicações and Department of Electronic and Computer Engineering, Instituto Superior Técnico, University of Lisbon, 1049-001 Lisboa, Portugal;1. Department of Obstetrics and Gynaecology, Subdepartment of Fetal Medicine, Nelson R Mandela School of Medicine, University of KwaZulu Natal, Durban, South Africa;2. Biostatistics Unit, Medical Research Council, Durban, South Africa;1. Health Physics Division, Bhabha Atomic Research Centre, Mumbai 400085, India;2. Radiological Physics and Advisor Division, Bhabha Atomic Research Centre, Mumbai 400085, India;3. Homi Bhabha National Institute, Mumbai 400094, India |
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| Abstract: | Coordinating consistent strategy implementation has been identified a key challenge for multi-national corporations. Based on intraorganizational evolutionary models of strategy formation, this paper thus empirically investigates the antecedents and temporal dynamics of strategic divergence. Strategic divergence is the deviation of a firm's resource allocation decisions with its articulated concept of corporate strategy. Large-scale empirical analysis of 11,406 resource allocation decisions of twenty-five publicly listed, multi-national and multi-business European firms indicates that decision type, operational and divisional manager involvement in decision making and structural context changes exert a significant influence on strategic divergence. Importantly, results further suggest that firms’ levels of strategic divergence tend to increase over time and that the antecedents of strategic divergence have a differential impact as time passes. |
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