theories and contemporary issues in strategy
TRANSCRIPT
École des sciences de la gestion | Université du Québec à Montréal
DOCTORAL SEMINAR
ADM9931
Theories and Contemporary Issues in Strategy
Winter 2021
Professors:
Kamal Bouzinab
Département de Stratégie, RSE
https://professeurs.uqam.ca/professeur/bouzinab.kamal/
Hela Chebbi
Département de Stratégie, RSE
https://professeurs.uqam.ca/professeur/chebbi.hela/
Andrew Papadopoulos
Département de Stratégie, RSE
https://professeurs.uqam.ca/professeur/papadopoulos.andrew/
Seminar Description This seminar draws upon some fundamental theories in strategic management to explore current economic,
social and organizational issues related to three main phenomena: foresight, internationalization and mergers
& acquisitions (M&A). The highly uncertain and turbulent environments in which organizations and industries
operate commands a shift from forecast to foresight mode in order to anticipate changes in a proactive way.
Demand deceleration across countries, the proliferation of trade agreements, open borders and the impact of
digitalization, among others, have encouraged diversification and risk mitigation strategies through
internationalization and/or M&A, among other mechanisms. Foresight, internationalization and M&A will serve
as the themes through which different theories are contextualized with current economic, social and
organizational issues in these times of greater uncertainty.
At the end of the course, students will be able to:
Develop a deeper and more focused understanding of the main theories used in the strategy field;
Understand how fundamental theories are applied to various phenomena in the strategy field;
Evaluate and contrast different perspectives and/or issues related to the same phenomena and/or
across different phenomena;
Synthesize and present different theoretical perspectives through a critical thinking approach;
Develop and write a conceptual academic paper on a subject related to the topics discussed during the
session.
Assessment:
1. Individual Weekly Synthesis and Presentation (30%): Students should submit their synthesis document (max 2-3 pages excluding the synthesis matrix) and a PPT presentation at least 24h before the session. Avoid to submit a summary of the readings (Follow this link to learn how to write a synthesis: https://content.bridgepointeducation.com/curriculum/file/d6cd75e7-1fe2-43a6-be46-a11ef364f9bb/2/Synthesis.zip/story_html5.html). The Synthesis documents and presentations should be uploaded on link provided on Moodle for each session (professors) and sent by email to classmates. 2. Class discussion and moderation (20%): Starting from session 2 and following a rotation order, Students will be asked to lead class discussions and moderate interactions for the corresponding session. Accordingly, each student will be assigned 4 specific sessions o during the first session. Each student should contribute to class discussions when he (she) doesn’t present or lead the session. You should also prepare in advance your comments on the synthesis sent by your classmates. Each student should think about possible future research topics related to the session readings. 3. Group Final Synthesis and presentation (15%): Collectively, students should produce an overall synthesis document of all the prior readings (8-10 pages max excluding the synthesis matrix). 4. Individual Final Paper (35%):
Students should develop a conceptual paper by linking their own research interest with the topics and the
literature discussed during the course. This should be an original work that could be submitted to academic
conferences or journals. A presentation of your final paper should be performed and discussed during the
last course session.
Schedule
Session 1: Introducing theories in strategic management (January 15, 2021) During this session, the discussion will be held about the strategy and how its evolution as an academic field.
Common mandatory readings for session 1:
Porter, M. 1991. Towards a dynamic theory of strategy. Strategic Management Journal, vol12, 95-117
Hoskisson, Robert & Hitt, Michael & Wan, William & Yiu, Daphne. 1999. Theory and Research in Strategic
Management: Swings of a Pendulum. Journal of Management - J MANAGE. 25. 417-456.
Furrer, Olivier & Thomas, Howard & Goussevskaia, Anna. 2007. The Structure and Evolution of the
Strategic Management Field: A Content Analysis of 26 Years of Strategic Management Research.
International Journal of Management Reviews. 10. 1-23.
Nag, Rajiv & Hambrick, Donald & Chen, Ming-Jer. 2007. What Is Strategic Management, Really? Inductive
Derivation of a Consensus Definition of the Field. Strategic Management Journal. 28. 935-955
Ronda-Pupo, Guillermo Armando; Guerras-Martin, Luis Ángel. 2008. Dynamics of the evolution of the
strategy concept 1962-2008: a co-word analysis. Strategic Management Journal 33(2):162.
Hitt, Michael & Arregle, Jean-Luc & Holmes Jr, R. 2020. Strategic Management Theory in a Post-Pandemic
and Non-Ergodic World. Journal of Management Studies. 10.1111/joms.12646.
PART 1: Contextual issues With the increase of radical and rapid technological changes, geopolitical tensions, demographic evolution and global competitiveness, critical strategic decisions depend heavily on a deep understanding of firm external environments, especially those characterized by turbulence, uncertainty, novelty and ambiguity. In these contexts, Firms face many challenges related to their foresight capabilities, their internationalization strategies and M&A operations. In this first part, we will revisit the relevant theories to understand the role of foresight and its contextual issues, the role of internationalization strategies and M&A operations as firms' responses to their evolving environments and the issues that these responses imply.
Common readings (for sessions 2-3 and 4):
Akerlof, G. A. 1970. The market for "lemons": Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488–500.
Duncan, R.B., 1972. Characteristics of organizational environments and perceived environmental uncertainty. Adm. Sci. Q. 17 (3), 313-327.
Session 2: Foresight (January 22, 2021) Mandatory readings:
Emery, F. and Trist, E. 1965. The Causal Texture of Organizational Environment. Human Relations, Vol.1,
February.
Ramirez, R and Selsky, J. 2016. Scenario Planning in Turbulent Environments: A Social Ecology
Perspective. Long Range Planning, 49.
Ackoff, R. 1974. Redesigning the future of society: a systems’ approach to societal problems (chapters 1-
2-3 and 4). Wiley. Available for rent online at:
https://openlibrary.org/books/OL5049582M/Redesigning_the_future_a_systems_approach_to_societ
al_problems#edition-details
Senge, P. 1990. The Fifth Discipline, The art and Practice of a learning organization (Parts 1 and 2).
Century Business. Available for rent online at:
https://openlibrary.org/works/OL4440692W/The_Fifth_Discipline?edition=fifthdisciplineasen00seng
Hannan,M. and Freeman, J. 1989. Organizational Ecology, Chapters 1-2-3 and 4. Harvard University
Press. Available for rent online at: https://openlibrary.org/books/OL2039022M/Organizational_ecology
Weick, K. 1995. Sensemaking in Organizations, Chapters 1-2-3 and 4. Sage publications.
Lenz, R. and Engledow, J. 1986. Environmental Analysis: The Applicability of Current Theory. Strategic
Management Journal, Vol.7(4).
Burt, G., Wright, G., Bradfield, R., Cairns, G and Vand der Heijden, K. 2006. The role of Scenario Planning
in Exploring the Environment View of the Limitations of PEST and Its Derivatives. International Studies of
Management and Organization. Vol.36 (3).
Additional readings:
Aldrich, H. 1979 (2008). Organizations and Environments. Englewood Cliffs, N-J Prentice-Hall. Available for rent online (1979 ed) at: https://openlibrary.org/books/OL19429166M/Organizations_and_environments
Session 3: M&A (January 29, 2021) Mandatory readings:
Dimaggio, Paul and Walter Powell. 1983. The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2): 147-160
Haleblian, J., et al. 2012. Exploring firm characteristics that differentiate leaders from followers in
industry merger waves: a competitive dynamics perspective. Strategic Management Journal 33(9): 1037-
1052.
Villalonga, Belen & Anita M. Mcgahan. 2005. The choice among acquisitions, alliances, and divestitures.
Strategic Management Journal, 26(13): 183-208.
Xu, D., et al. 2010. A real options perspective on sequential acquisitions in China. Journal of International
Business Studies 41(1): 166-174.
Cuypers, I. R. and X. Martin. 2010. What makes and what does not make a real option? A study of equity
shares in international joint ventures. Journal of International Business Studies 41(1): 47-69.
Session 4: International strategies (February 5, 2021) Mandatory readings:
Grant. R-M. 1991. Porter's ‘competitive advantage of nations’: An assessment. Strategic Management Journal. Vol. 12, No. 7, pp. 535- 548
Oviatt, B.M., Sane, S. & McDougall, P.P. 1994. Explaining the formation of international new ventures: The limits of theories from international business research. Journal of Business Venturing, 9(6), 469-487.
Kogut, B. & Singh, H. 1988. The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3) 411-432.
Gammeltoft, Peter & Filatotchev, Igor & Hobdari, Bersant. 2012. Emerging multinational companies and strategic fit: A contingency framework and future research agenda. European Management Journal. 30. 175–188
Brouthers, K & Nakos, G.2004. SME international entry mode choice and performance: A transaction cost perspective. Entrepreneurship Theory and Practice, 28. 229-247.
PART 2: Economic perspectives Managing growth is an important issue for companies. Theories in the strategy field have raised the importance of resources for the competitiveness of organizations: resources, knowledge, resource dependency, etc. When making strategic decisions on internationalization, merger/acquisition and foresight, these challenges must be considered.
Common mandatory readings (for sessions 5-6 and 7):
Rugman, A. M., & Verbeke, A. 2002. Edith Penrose's contribution to the resource-based view of strategic management. Strategic Management Journal, 23, 769–780.
Kor, Y. Y., & Mahoney, J. T. 2004. Edith Penrose's (1959) contributions to the resource-based view of strategic management. Journal of Management Studies, 41(1), 183–191.
Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal 5: 171-180
Wernerfeit, B. 1995. The resource-based view of the firm: Ten years after. Strategic Management Journal 16: 171-174
Barney, Jay. 2001. Is the Resource-Based ‘View’ A Useful Perspective for Strategic Management Research? Yes. Academy of Management Review. 26. 41–56.
Barney, J., 1991, « Firm Resources and Sustained Competitive Advantage », Journal of Management, Vol. 17, n°1, pp. 99-121.
Additional readings:
Penrose, E. 1959. The Theory of the Growth of the Firm. Basil Blackwell, London. Available for rent online at: https://openlibrary.org/works/OL1588729W/The_theory_of_the_growth_of_the_firm?edition=theoryofgrowthof0000penr
Session 5: M&A (February 12, 2021) Mandatory readings:
Eisenhardt, K. M., & Schoonhoven, C. B. 1996. Resource-based view of strategic alliance formation: Strategic and social effects in entrepreneurial firms. Organization Science, 7: 136-150
Barney, J. 1988. Returns to bidding firms in mergers and acquisitions: Reconsidering the relatedness
hypothesis. Strategic Management Journal, 9(5): 71-78.
Rabier, Maryjane 2017. Acquisition Motives and the Distribution of Acquisition Performance. Strategic
Management Journal (John Wiley & Sons, Inc.). Dec, 38(13): p2666-81.
Chatterjee, S. 1986. Types of synergy and economic value: The impact of acquisitions on merging and
rival firms. Strategic Management Journal 7(2): 119-139.
Session 6: Foresight (February 19, 2021) Mandatory readings:
Metcalf, J. 1974. Systems Models, Economic Models and The Causal Texture of Organizational Environments: An Approach to Macro-Organization Theory. Human Relations, Vol. 27(7).
Porter, M. 1981. The Contribution of industrial organization to Strategic Management. Academy of Management Review.
Uzundis, D. 2016. Propaedeutics in the theory of the industrial Organization: The SCP (Structure,
Conduct, Performance) Model. Journal of Innovation Economics & Management, N 20;
Lipczynski, J, Wilson, J. and Goddard, J. 2005. Industrial organization: An Introduction. Chap 1 In Industrial Organization: Competition, Strategy, Policy (2nd ed.). Prentice Hall-Financial Times;
Porter, M. 1998. Industry evolution, Chap,8 In Competitive Strategy: techniques For Analyzing Industries
and Competitors. The Free Press.
Selsky, J., Goes, J. and Baburoglu, O. 2007. Contrasting Perspectives of Strategy Making: Applications in
“Hyper” Environments. Organization Studies
Harris, R. 2004. Organizational Task Environments: An Evaluation of Convergent and Discriminant
Validity. Journal of Management Studies, Vol. 41(5)
Additional readings:
Drucker, P. 1969 (1992 ed). The Age of Discontinuity: Guidelines to Our Changing Society. Harper and
Row.
Session 7: International strategies: SME and multinational corporations (MNC) (February 26, 2021) Mandatory readings:
Peng, Mike. 2001. The Resource-Based View and International Business. Journal of Management - 27. 803-829.
Hitt, Michael & Bierman, Leonard & Uhlenbruck, Klaus & Shimizu, Katsuhiko. 2006. The Importance of Resources in the Internationalization of Professional Service Firms: The Good, the Bad and the Ugly. Academy of Management Journal. 49.
Westhead, Paul & Ucbasaran, Deniz. 2001. The Internationalization of New and Small Firms: A Resource-Based View. Journal of Business Venturing. 16. 333-358.
Verbeke, Alain & Yuan, Wenlong. 2013. The Drivers of Multinational Enterprise Subsidiary Entrepreneurship in China: A New Resource‐Based View Perspective. Journal of Management Studies. 50. 10
Birkinshaw, Julian, Neil Hood, and Stefan Jonsson. 1998. "Building Firm-Specific Advantages in Multinational Corporations: The Role of Subsidiary Initiative." Strategic Management Journal 19, no. 3, 221-41.
Additional readings: Autio, E., Sapienza, H. et Almeida, J., 2000. Effects of Age at Entry, Knowledge Intensity and Imitability on International Growth, Academy of Management Journal, Vol. 43, n°5, pp. 909-924.
PART 3: Social perspectives
Common mandatory readings (for sessions 8-9 and 10):
Granovetter, M.S. 1985. Economic action and social structure: The problem of embeddedness, American Journal of Sociology, 91: 481-510
Granovetter, M.S. 1973. The strength of weak ties, American Journal of Sociology, 78: 1360-1380.
Session 8: Foresight (March 12, 2021 PM 14:00-17h) Mandatory readings:
Mackay, B. and Tambeau, P. 2013. A structuration approach to scenario praxis. Technological Forecasting and Social Change, 80
Stringfellow, L. and Maclean, M. 2014. Space of Possibles? Legitimacy, industry Maturity, and Organizational Foresight. Strategic Change, 23.
Sarpong, D. 2011. Towards a methodological approach: Theorizing scenario planning as a social practice. Foresight, 13 (2
Nicolova, B. 2014. The rise and promise of participatory foresight. European journal of Futures Research, 15(33).
Waehrens, B and Riis, J. 2010. Failures to enact the future- A social practice perspective. Futures, 42 (4)
Burt, R. 1992. The Social Structure of competition, Chapter 2 In Structural Holes: The Social Structure of
Competition. Harvard University Press. Cambridge.
Burt, R. 2004. Structural Holes and Good Ideas. American Journal of Sociology, Vol. 110(2).
Borgatti, S. and Halgin, D. 2011. On Network Theory. Organization Science, 22(5).
Nogroho, Y. and Saritas, O. 2009. Incorporating network perspectives in foresight: a methodological
proposal. Foresight, Vol. 11(6).
Jorgensen, M., Jorgensen, U. And Clausen, C. 2009. The social shaping approach to technology foresight.
Futures, 41.
Additional:
Giddens, A. 1979. Central problems in social theory: action, structure and contradiction in social analysis.
Macmillan. Available for rent online at:
https://openlibrary.org/works/OL38025W/Central_problems_in_social_theory?edition=centralproble
msi0000gidd
Burt, R. 1992. Structural Holes: The Social Structure of Competition. Harvard University Press. Cambridge.
Session 9: M&A (March 19, 2021) Mandatory readings:
Hambrick, D., & Mason, P. 1984. Upper Echelons: The Organization as a Reflection of Its Top Managers. The Academy of Management Review, 9 (2), 193-206. Retrieved December 17, 2020, from http://www.jstor.org/stable/258434
Jensen, M. C., & Meckling, W. H. 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Davis, J. H., Schoorman, F. D., & Donaldson, R. 1997. Toward a stewardship theory of management. Academy of Management Review, 22(1), 20-47.
Malhotra, Shavin, Zhu, Pengcheng and Taco Reus. 2015. Anchoring on the acquisition premium decisions of others. Strategic Management Journal (John Wiley & Sons, Inc.). Dec, 36 (12): p1866-76.
Session 10: International (March 26, 2021) Mandatory readings:
Johanson, J.& Vahlne, J.-E. 1977. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23-32.
Johanson, J. et Vahlne, J.-E. 2009. The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411-1431.
Coviello, N. et Munro, H. 1997. Network relationships and the internationalisation process of small software firms. International Business Review, 6(4), 361-386.
Musteen, M & Datta, D & Butts, M. 2014. Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic. Entrepreneurship Theory and Practice. 38.
Buckley, P. 2014. Forty years of internalisation theory and the multinational enterprise. Multinational Business Review. 22. 227-245
Andersson, Ulf & Forsgren, Mats & Holm, Ulf. 2002. The Strategic Impact of External Networks: Subsidiary Performance and Competence Development in the Multinational Corporation. Strategic Management Journal. 23. 979 – 996.
Ghoshal, S. and Bartlett, C. A. 1990. The Multinational Corporation as an Interorganizational Network,” The Academy of Management Review, 15(4), pp. 603–625.
Additional readings:
Hadley, R., Wilson, H. 2003. The Network Model of Internationalisation and Experiential Knowledge, International Business Review, Vol. 12, n°6, pp. 697–717
Zander, I. and Sölvell, Ö. 2000, “Cross-border innovation in the multinational corporation”, International Studies of Management and Organisation, Vol. 30 No. 2, pp. 44-67.
PART 4: Organizational perspectives.
Common mandatory readings (for sessions 11-12 and 13): Learning
Tushman, Michael L. and O’Reilly, Charles A. 1996. The ambidextrous organization: managing evolutionary and revolutionary change. California Management Review, 38: 1-23.
Gibson, CB, & Birkinshaw, J. 2004. The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal, 47(2), 209–226.
Levinthal, DA, & March, JG. 1993. The myopia of learning. Strategic Management Journal, 14(S2), 95–112.
Argyris, C., & Schôn, D. A. 1996. Organizational learning II: theory, method and practice. Reading, Mass, Addison-Wesley (Chapter 1-Pages 3-29) : https://openlibrary.org/books/OL7408272M/Organizational_Learning_II
March, JG. 1991. Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87
Capabilities
Teece, David J. 2007. “Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance,” Strategic Management Journal, 28(13): 1319-1350.
Teece, David J., Pisano, Gary, and Shuen, Amy. 1997. Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7): 509-533.
Session 11: International (April 9, 2021) Mandatory readings:
Cavusgil, S. & Knight, G. 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies. 46.
Teece, D. 2014. A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of international business studies 45, 8–37.
Jansen, J.J.P., Simsek, Z. and Cao, Q. 2012, Ambidexterity and performance in multi-unit contexts: cross-level moderating effects of structural and resource attributes, Strategic Management Journal, Vol. 33 No. 11, pp. 1286-1303.
Ghoshal, S. and Bartlett, C.A. 1988. Creation, adoption and diffusion of innovations by subsidiaries of multinational corporations, Journal of International Business Studies, Vol. 19 No. 3, pp. 365-388.
Subramaniam, M. and Venkatraman, N. 2001. Determinants of transnational new product development capability: testing the influence of transferring and deploying tacit overseas knowledge, Strategic Management Journal, Vol. 22 No. 4, pp. 359-378.
Doz, Y., & Prahalad, C. K. 1984. Patterns of strategic control within multinational corporations. Journal of International Business Studies (Pre-1986), 15
Additional readings:
Genc, Ebru & Dayan, Mumin & Genc, Omer. 2019. The impact of SME internationalization on innovation: The mediating role of market and entrepreneurial orientation. Industrial Marketing Management.
Session 12: M&A (April 16, 2021) Mandatory readings:
Hennart, J.-F. and S. B. Reddy 1997. The choice between mergers/acquisitions and joint ventures: The case of Japanese investors in the United States. Strategic Management Journal 18(1): 1-12.
Vermeulen, Freek & Harry Barkema. 2001. Learning through acquisitions. The Academy of Management Journal, 44(3): 457-76.
Lin, Z., et al. 2009. How do networks and learning drive M&As? An institutional comparison between China and the United States. Strategic Management Journal 30(10): 1113.
Hagedoorn, John and Geert Duysters 2002. External Sources of Innovative Capabilities: The Preferences for Strategic Alliances or Mergers and Acquisitions. Journal of Management Studies, 39(2), 167-88.
Sears, J. and G. Hoetker 2014. Technological overlap, technological capabilities, and resource recombination in technological acquisitions. Strategic Management Journal 35(1): 48-67.
Heimeriks KH, Schijven M, Gates S. 2012. Manifestations of higher-order routines: the underlying mechanisms of deliberate learning in the context of post-acquisition integration. Academy of Management Journal 55(3): 703-726.
Session 13: Foresight (April 23, 2021) Mandatory readings:
Durand, R. 2003. Predicting a Firm’s Forecasting Ability: The Roles of Organizational Illusion of Control
and Organizational Attention. Strategic Management Journal, 24.
Chermack, T. and Nimon, K. 2008. The Effects of Scenario Planning on Participant Decision-Making Style.
Human Resource Development Quarterly, vol. 19(4).
Rohrbeck, R. 2012. Exploring value creation from corporate-foresight activities. Futures, 44.
Ramirez, R., Osterman, R and Gronquist, D. 2013. Scenarios and early warning as dynamic capabilities to
frame managerial attention. Thechnological Forecasting and Social Change, 80.
Paliokaité, A., Pacesa, N. and Sarpong, D. 2014. Conceptualizing Strategic Foresight: An Integrated
Framework. Strategic Change, 23.
Haarhaus, T. and Liening, A. 2020. Building dynamic capabilities to cope with environmental uncertainty:
The role of strategic foresight. Technological Forecasting and Social Change, 155.
Baskarada, S, Shrimpton, D. and Ng, S. 2016.Learning through foresight. Foresight, Vol. 18(4)
Rohrbeck, R., Battistella, C. and Huizingh, E. 2015. Corporate Foresight: An emerging field with a rich
tradition. Technological Forecasting and Social Change, 101.
Scoblic, P. 2020. Strategic Foresight as Dynamic Capability: A New Lens on Knightian Uncertainty.
Working Paper 20-093, Harvard Business School.
Additional readings (highly recommended):
Costanzo, L. and Mackay, R. 2009. Handbook of Research on Strategy and Foresight. Edward Elgar.
Van der Heijden, K., Bradfield, R., Burt, G. Cairns, G. and Wirght, G. 2002. The Sixth Sense: Accelerating
Organizational Learning with Scenarios. John Wiley & Sons.
Session 14 (April 30, 2021)
Final Presentations of Group Synthesis and Individual Final Papers
Wrap-up