Managing Strategically in an Interconnected World

by Hitt, Michael A.; Ricart I Costa, Joan E.; Nixon, Robert D.

• ISBN13: 9780471984979
• ISBN10: 0471984973
• Edition: 1st
• Format: Hardcover
• Copyright: 1998-12-04
• Publisher: Wiley

Summary

Managing Strategically in an Interconnected World Business is now at a new frontier as managers face an increasingly interdependent and interconnected world. Sparked by the technological revolution and globalization of business, an exceedingly complex and challenging competitive landscape has been created which has been referred to as the 'third industrial revolution'. Firms face significant uncertainty, ambiguity and an increasing number of strategic discontinuities in this hyper-competitive world. The key to survival for the modern business manager is strategic flexibility. This strategic flexibility will require innovation, speed and the use of information and knowledge. Only then can managers consistently find new methods of achieving competitive advantage. The editors have selected contributions that address two major themes of this new business environment and the means of managing strategically within it. Part I: Interconnected World: The Global Environment, Uncertainty and Knowledge Development looks at the rapid and largely unpredictable changes that occur, exemplified by the recent economic shocks in Asia and Russia and the political changes in Eastern Europe. Chapters in this section range from a focus on the central European banking system (of vital importance in the forthcoming changes in the EU to a single currency), to the executive strategic orientations in Chinese state-owned enterprises and managerial strategies of western companies in Asia. Further chapters explain the development and sharing of knowledge to build strategic flexibility. They explore how firms learn and thereby develop dynamic capabilities and core competencies. Part II: Interconnected Firms: The Role of Cooperation, Trust, Governance and Technology begins by examining how cooperative strategies have become a significant strategic tool in recent years, but why there is still a high failure rate of strategic alliances (the most common form of cooperation). The development of collaborative know-how is explored as well as the entrepreneurial opportunities that can be created by alliances to increase resources and develop new capabilities. Developing these new capabilities requires that firms have the necessary absorptive capacity and build trust with their partners. Even with trust, higher risk collaborative ventures, particularly between international partners, require governance. Trust in and governance of interorganizational partnerships within several different international contexts including Europe, Asia and North America is also explored. Thus, Managing Strategically in an Interconnected World addresses a number of critical issues to successfully navigate in the new frontier and build sustainable competitive advantages.

Author Biography

About the Editors...<BR>Michael A. Hitt holds the Paul M. and Rosalie Robertson Chair in Business Administration at Texas A & M University. He received his PhD from the University of Colorado and has been chosen to receive an honorary doctorate from the Universidad Carlos III de Madrid in recognition of his scholarly contributions in business administration. He has authored or co-authored several books and book chapters and numerous journal articles in such journals as the Academy of Management Journal, Strategic Management Journal and Academy of Management Review. Furthermore, he has served as Consulting Editor (1988û90) and Editor (1991û93) of the Academy of Management Journal. He is a Past President of the Academy of Management and is a Fellow in that organization. Following Michael Porter (1994) and C.K. Prahalad (1995), he received the 1996 Award for Outstanding Academic Contributions to Competitiveness from the American Society for Competitiveness.

Table of Contents

Contributors	viii
Series Preface	xiii
The New Frontier	1	(12)
Michael A. Hitt
Joan E. Ricart i Costa
Robert D. Nixon
SECTION I: INTERCONNECTED WORLD: THE GLOBAL ENVIRONMENT, UNCERTAINTY, AND KNOWLEDGE DEVELOPMENT	13	(172)
Competitive Policy Shocks and Strategic Management	15	(24)
Pankaj Ghemawat
Robert Kennedy
Tarun Khanna
Firms' Strategies and National Institutional Environments	39	(16)
Jabril Bensedrine
Helena Kobayashi
Perceiving Environmental Change and Strategic Uncertainty in the Central European Banking Industry	55	(24)
W. Harvey Hegarty
Laszlo Tihanyi
Decision Processes and Uncertainty: Corporate Strategy in China	79	(22)
Sally W. Fowler
Michael D. Lord
Strategic Orientations of Chief Executives in State-owned Enterprises in Transition	101	(18)
Chung-Ming Lau
The Role of the International Corporations in Cross-border Knowledge Transfer in the Semiconductor Industry	119	(30)
Paul Almeida
Robert M. Grant
Jaeyong Song
Strategic Interaction, Knowledge Sourcing and Knowledge Creation in Foreign Environments---An Analysis of Foreign Direct Investment in R&D by Multinational Companies	149	(18)
Walter Kuemmerle
Controlling Unique Knowledge Development as the Basis of Sustained High Performance	167	(18)
William C. Bogner
Pratima Bansal
SECTION II: INTERCONNECTED FIRMS: THE ROLE OF COOPERATION, TRUST AND GOVERNANCE	185	(258)
Governance of Interorganizational Partnerships: A Comparison of US, European and Japanese Alliances in the Pharmaceutical Industry	187	(20)
Paul Bierly
Eric H. Kessler
Strategic Alliance Formation and Market Evaluation: Effects of Parent Firm's Governance Structure	207	(22)
Robert E. Hoskisson
William P. Wan
Mark H. Hansen
Corporate Boards' Line of Reasoning---Comparison between Corporate Governance in Poland and Sweden	229	(26)
Joanna Dzialo
Karin Jonnergard
Matts Karreman
Claes Svensson
Piotr Urbanek
Successful Technology-based Strategic Alliances: An Enterpreneurial Perspective	255	(26)
G. Dale Meyer
Sharon A. Alvarez
Strategic Alliances and Blocks: Cooperative Behavior as a Driving Force for their Evolution	281	(20)
Africa Arino
Carlos Garcia-Pont
The Virtual Organization: A Special Mode of Strong Interorganizational Cooperation	301	(20)
Joan E. van Aken
Louweris Hop
Ger J.J. Post
How Firms Can Benefit from Collaborating within R&D Consortia	321	(28)
Caroline Mothe
Bertrand V. Quelin
Acquiring Partners' Capabilities: Outcomes of Scale and Link Alliances between Competitors	349	(24)
Pierre Dussauge
Bernard Garrette
Will Mitchell
Relative Absorptive Capacity, Trust, and Interorganizational Learning in International Joint Ventures	373	(26)
Peter J. Lane
Marjorie A. Lyles
Jane E. Salk
Understanding Trust to Build Strong Relationships in Organizations	399	(20)
Carlos Portales
Joan E. Ricart i Costa
Josep M. Rosanas
Value Appropriation in an Interconnected World	419	(24)
Choelsoon Park
Index	443