Performance differences among strategic group members

Whether and why members of the same strategic group would experience different performance results has received little attention in previous research. These questions are addressed in this paper. First, conventional theory on the relationship between firm performance and strategic group membership is reviewed. Then a theory is developed as to how historical differences among strategic group members may result in performance differences. An empirical analysis of risk and return relationships is conducted, centered on the nature of environmental change characterizing the industry. The empirical setting throughout is the U.S. pharmaceutical industry over the period 1963–82.     

Performance differences between the wrigley/rumelt strategic categories

This study examines differences in profit and sales performance between the different Wrigley/Rumelt categories of diversification strategy. Our sample comprised 305 large U. K. manufacturing companies over the period 1972–84. Although diversification strategy explained only a small proportion of inter-firm performance differences, once the influence of other firm and industry variables were taken into account, significant differences did emerge. Our findings conflict with those of earlier U.S. studies. In particular, we find that diversified firms outperformed specialized firms and there was no evidence that related diversification was more successful than unrelated.     

Labour-managed firms and monopsony power

Monopsony power in the labour market is shown to have important consequences for comparisons between an Illyrian labour-managed firm (LMF) and a profit-maximising capitalist firm (CF) operating in the same markets with the same technology. If the CF earns positive profits then workers earn more in the LMF than in the CF, and the level of employment in the LMF may be higher or lower than in the CF. Monopsony power is also seen to have interesting implications for models of membership contraction in LMFs.     

Performance of Japanese firms in patented inventions; an analysis of patents granted in the U.S.

This paper addresses the relation between firm size and R&D activity for Japanese large manufacturing firms using patents granted in the U.S.. Japanese firms loom larger in world R&D agenda; therefore, the examination of the determinants of their R&D activity, in particular, the effects of firm size, may provide a suggestion of R&D activity. The firm size-patent count relationship varies across industry. In many industries, Japanese experience is not in favor of the assertion that there is a return to scale in R&D among large firms, indicating that Schumpeterian entrepreneurship is not likely to take place more than proportinately to firm size. This conclusion is not inconsistent with Schumpeter's theory.     

Organizational buying in selected Yugoslav firms

Findings from a study of 14 Yugoslav industrial marketing managers support two hypotheses on the behavior of buying centers: (1) membership in the buying center changes through the buying process, and (2) top management playing a ratifying role of choices to maintain long-term, stable relationships between suppliers and customers may substantially affect exchange behavior.     

Dominant firms and their alleged decline

By way of a survey of recent literature on the theory of strategic competition, this paper focuses on the question of whether dominant firms decline; the traditional argument suggesting decline is found to be based on a rather unsatisfactory modelling of dominance, and more acceptable conceptualizations suggest that such privileged positions will persist.     

Strategy of firms in unstable institutional environments

Institutional instability as one of the most common characteristics of developing countries and its impacts on the strategy of firms is explored in this study. We conducted detailed field research based on 32 semi-structured interviews with top managers of textile firms in Iran. Results show that managers in developing countries engage in a political struggle to ensure that institutional uncertainty is balanced by a reasonable political give and take. It is argued that power and legitimacy are key resources for firms' survival in institutionally unstable environments. Some theoretical foundations for the strategy of firms in unstable institutional environments are developed.     

Profiles of managerial activities in small firms

This paper addresses the contingency issues of managerial activities and reports the results of a study that configures such activities in small firms. In a survey of CEOs and top executives, data on planning, organizing, and controlling activities as well as entrepreneurial orientation and environmental turbulence were collected and used in the development of a taxonomy. Findings demonstrate that (1) small firms can be classified based on perceived differences in strategy, structure, and the environments they face, and (2) they display managerial and structural consistency when faced with similar contextual situations. The taxonomy developed in this study suggests that four distinct configurations describe the managerial profiles among small firms. Each profile and its corresponding contingency characteristics are discussed and managerial and research implications elaborated.     

Industrial relations policies in high technology firms

'High Technology' firms constitute a significant growth sector in the UK. Such firms are often assumed to be non-union, with a paternalist style of management, providing a striking contrast to traditional industrial relations practices. Here the author assesses the current evidence.     

Managing 'green' product innovation in small firms

The growing social and regulatory concern for the environment is leading an increasing number of companies to considering 'green' issues as a major source of strategic change. In particular, this trend has major and complex implications on the technological strategy of a company and on its product innovations. Indeed, most authors acknowledge that eco‐efficiency will be one of the major challenges for R&D practice and theory in the next decade. Unfortunately, studies usually focus on large corporations. There is a debate as to whether this factor will affect R&D practices and product innovation in small and medium enterprises (SMEs). A superficial glimpse at the problem could lead one to think that SMEs will not be major green innovators, especially as far as product technologies are concerned, and that they will simply try to comply with environmental regulations (mainly on production processes).
This paper shows that 'green' product innovation may occur and may also have strategic implications in SMEs. Starting from the analysis of four selected case studies and using a Precursors Events methodology, this paper illustrates why 'green' product innovation cannot be considered a marginal issue for most SMEs, even for those that are not directly affected by environmental regulations. Hence, the paper suggests a contingent framework to support SMEs in the analysis of the drivers of 'green' product innovation and in the choice of a proper R&D strategy that explicitly accounts for the eco‐efficiency of product technologies.     

Reaffirming the management ethic in industrial firms

These then are the ground rules underlying what I call “the manegement ethic.”They are based on common sense, logic, and a sense of fair play—but then, that is quite simply what good management is all about. There is nothing original about these ideas; nor, as can be seen from the following quotation, is there anything new about them.We trained hard—but it seemed that every time we were beginning to form up into teams, we would be reorganized. I was to learn later in life that we tend to meet any new situation by reorganizing. And what a wonderful method it can be for creating the illusion of progress while producing confusion, inefficiency and demoralization.     

R&D budgeting in Swedish firms

Recent work by Näslund and Sellstedt report results which apparently conflict with accepted opinion on the techniques generally adopted in R&D budgeting. The analysis here suggests that these results can be reconciled with previous analyses and that in fact the role of ‘big science’ in Swedish R&D as well as relative size of Swedish firms compared to large U. S. and U. K. firms may explain the different conventions adopted in Swedish industry.     

Dominant designs and the survival of firms

The economic, population ecology and strategic perspectives on firm survival are here complemented by viewing the same phenomenon from the viewpoint of technology evolution as well. The hypothesis tested is that the competitive environment of an industry, and therefore the survival of firms in it, is substantially affected by the evolution of the technology on which it is based. Survival analysis is applied to data from six industries. The results show that by explicitly including technology as a dynamic and strategic variable our understanding of firms' survival potential and success can be enhanced.     

R & D and marketing dialogue in high-tech firms

Based on an empirical study of more than 200 R & D and marketing managers from high-technology companies, we conclude that (1) there is a great deal of consensus between R & D and marketing managers on the relative importance of the areas requiring integrated efforts; (2) companies successful in their new product program achieve a significantly greater degree of R & D marketing integration; (3) company size does not affect the level of integration achieved; and (4) the companies that achieve a high degree of R & D/ marketing integration do so by concentrating on all 19 areas proposed in the article and do not merely focus on a few key areas.     

中石化改制分流公司出路探索

中国石化集团公司如何应对加入WTO的挑战，在更激烈的市场竞争中求生存、图发展，关键政策之一就是减员分流。该政策的成功执行无疑会给中石化带来巨大利益。减员分流政策能否顺利执行，关键看分流公司脱离母体后的独立生存、发展、获利能力能否带来经济效益和社会效益。分流公司从它一诞生，服务对象就只有石化公司，市场也是被行政条块划分好了的石化行业内部市场，可以说是无竞争的市场。现在市场打开了，竞争来了，问题来了，市场也来了，发展的空间大了，我们应该怎样去应对这个市场，怎样在新的环境下寻找自身生存、发展的空间，笔…     

Multinational firms and qualification inflation in a hi-tech labour market

This article examines the role which elite MNC employers play in the process of qualification inflation within the Irish Republic. While these employers do not contribute towards inflation across technical occupations the tendency to select the most qualified within individual occupations has led to the emergence of a 'graduate barrier' between technicians and engineers/scientists.     

Marketing-sales interface configurations in B2B firms

As the body of knowledge on marketing-sales interface expands, there is a greater need to investigate the specific aspects of marketing-sales configurations in B2B firms. Using a qualitative methodology and interview data collected from over 100 sales and marketing professionals from the US, The Netherlands and Slovenia, this study presents a dynamic, evolutionary spectrum of four B2B marketing-sales interface configurations. These configurations are described in detail in terms of structure, communication patterns, information sharing, collaboration, and strategic outcomes. The findings show that no configuration is inherently superior. Our dynamic configuration spectrum offers managers a toolkit to evaluate their firm's marketing-sales interface in terms of current and desired positions, and contribute to their firm's market orientation and business performance.     

Product and international diversification among Japanese multinational firms

This paper examines the relationship of performance with product and international diversification on Japanese multinational firms from 1977 to 1993. We show the relationships between diversification and performance change over time through the use of multiple time periods and accounting for keiretsu membership. Results show that while diversity strategies vary between keiretsu and non‐keiretsu firms, performance is not much different. Across time periods, performance varies considerably, but strategies are less variable. Product diversity has weak effects on firm performance only in one time period, while international diversification has negative profitability and positive growth consequences in in some periods. These results suggest first that diversification strategies and their effects on performance vary across time periods and generally produce some unexpected findings. We do not find strong interactive diversity effects. Copyright © 2000 John Wiley & Sons, Ltd.