The role of senior management in opportunity formation: Direct involvement or reactive selection?

Research Summary : Much research suggests that entrepreneurial opportunities in established firms result from bottom‐up initiative in a diverse workforce, senior management's main role in the entrepreneurial process is to select among opportunities generated in the bottom‐up process, and it should refrain from directly getting involved in this process. We develop an alternative and more active view of the role of senior management in the opportunity formation process in which senior management intervenes in the entrepreneurial process to resolve coordination and collaboration problems across initiatives and decide on resource allocation. We proffer rival hypotheses concerning the effect of such senior management involvement in the entrepreneurial process. Specifically, we hypothesize that the positive relations between bottom‐up initiative/employee diversity and opportunity formation are positively (negatively) moderated by such direct involvement by senior management. We examine these ideas using two matched data sources: a double‐respondent survey of CEOs and HR managers and employer–employee register data. We find support for the view that senior management involvement positively moderates the relations between bottom‐up processes/diversity and opportunity formation. Managerial Summary : What are the processes through which entrepreneurial opportunities emerge in established companies? Research has pointed to diversity and bottom‐up initiative, but our understanding is limited with respect to what senior managers should do to optimally promote entrepreneurship in such companies. In one view, senior management should keep a distance and limit their involvement to picking the best opportunities out of those they are presented with in the bottom‐up process. In contrast, we argue that given bottom‐up initiative in the context of a diverse workforce, senior management should play a more direct role in the entrepreneurial process. The reason is that senior‐management involvement at early stages of the opportunity formation process is required to handle the management challenges arising from diversity and bottom‐up initiative. Overall, our study suggests that firms that wish to seize the potential benefits (in terms of entrepreneurial opportunities) of having a more diverse workforce and more bottom‐up initiative need senior managers that directly engage in the entrepreneurial process.     

Perfect timing? Dominant category,dominant design,and the window of opportunity for firm entry

The optimal time to enter emerging industries is a key concern in strategy, yet scholars struggle to create a theoretical foundation that can integrate conflicting empirical findings. We incorporate categorical dynamics to industry life cycle theory to enhance existing entry timing theories. We introduce the concept of a dominant category—the conceptual schema that most stakeholders adhere to when referring to products that address similar needs and compete for the same market space—linking it to the dominant technological design and entry‐timing advantages. In particular, we propose the existence of a window of opportunity for firm entry that starts with the emergence of the dominant category and ends with the emergence of the dominant design. © 2013 The Authors. Strategic Management Journal published by John Wiley & Sons Ltd.     

Intermediaries in power-laden retail supply chains: An opportunity to improve buyer–supplier relationships and collaboration

Despite the benefits of buyer and seller collaboration and hence relationships extolled in extensive studies, issues of relationship power inhibit implementation of collaborative and relational approaches, particularly in some parts of the retail sector. Further, most research regards buyer–supplier collaboration and relations as dyadic or focal relationships, or perhaps in a network context, and typically investigates buyer–supplier collaboration and relations from a power-dependency perspective; and within vertical supply integration. Little attention has been given to the potential role of supply chain intermediaries, such as logistics service providers, in objectively and independently determining and managing the course of buyer–supplier collaboration and relations in a business-to-business context. This article appraises the potential role of buyer–supplier collaboration and relations and their relevant opportunities in the power-laden, contentious environment of the retail grocery sector. With an interdisciplinary approach, drawn from supply management, relationship management, and logistics and supply chain management, this article emphasises the importance of horizontal collaboration using fourth-party logistics structures as horizontal intermediary conduits, who act independently between retailers and suppliers to facilitate collaborative and relational activity.