Articles

This article, the first of a two-part series, shows how the value-added chain can be used to analyze sources of international strategic advantages. The author argues that it is essential that a distinction be drawn between competitive and comparative advantage. He illustrates the importance of this distinction by looking at structural shifts in the world economy and arguing that these shifts reflect changes in comparative advantage. The impact of these changes leads to only a few choices for the firm facing import competition and possessing no competitive advantage. The author stresses that if the global advantages acquired by international participation are not sustained, competition reverts to domestic competition among firms with different national names.

The authors purport that a new brand of leadership -- transformational leadership -- is the key to revitalizing large U.S. corporations such as General Motors, AT&;T, General Electric, just to mention a few. Based on the premise that the pressure for basic organizational change will intensify, not diminish, over the years, they argue that transformational leaders must develop a new vision for the organization, mobilize employees to accept and work toward achieving the new vision, and institutionalize the needed changes. Unless the creation of this breed of leaders becomes a national agenda, the authors are not very optimistic about the revitalization of the U.S. economy.

Do quality improvements lead to higher or lower profits?

If we really want to decipher an organization's culture, this author claims that we must dig below the organization's surface -- beyond the "visible artifacts" -- and uncover the basic underlying assumptions, which are the core of an organization's culture. To do this, he provides a tool -- a formal definition of organizational culture that emphasizes how culture works. With this definition in hand, the author feels that one cannot only come to understand the dynamic evolutionary forces that govern a culture, but also can explain how the culture is learned, passed on, and changed.

The strategic management of internal corporate venturing (ICV) presents a major challenge for many large established firms. The author's conceptualization of ICV suggests that vicious circles and managerial dilemmas typically emerge in the development of new ventures. These problems are exacerbated by the indeterminateness of the strategic context for ICV in the corporation, and by perverse selective pressures exerted by its structural context. This article presents four major recommendations for improving the effectiveness of a firm's ICV strategy.

The central dilemma of high-tech firms is managing two conflicting trends: continuity and rapid change.

After strategies are set and plans are made, management’s primary task is to ensure that these plans are carried out.

In this paper, the author suggests that the key element to successful implementation of solutions to managerial problems lies in the improvement of face-to-face relationships. He goes on to articulate the factors involved in building and maintaining effective interpersonal communication. Particular attention is given to the repair strategies and skills needed to mend damaged relationships.

In two articles published previously in the SMR, the author described the process of logical “incrementalism” for strategic planning and how it is used effectively in several large corporations. This third and final article in the series analyzes this approach to management & #8212; a sort of purposeful “muddling” & #8212; in greater detail, delineating the steps which successful managers generally follow in inaugurating and executing strategic change.

Create harmony between agile and your team’s culture.