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The Entrepreneurial M-Form: Strategic Integration in Global Media Firms

Author

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  • Thomas R. Eisenmann

    (Harvard Graduate School of Business Administration, Baker West 472, Soldiers Field, Boston, Massachusetts 02163)

  • Joseph L. Bower

    (Harvard Graduate School of Business Administration, Morgan Hall 467, Soldiers Field, Boston, Massachusetts 02163)

Abstract

Many researchers believe that bounded rationality prevents CEOs in large, complex, multidivisional (“M-form”) corporations from personally formulating division-level strategies. Instead, CEOs are seen as guiding a “bottom-up” process whereby division managers propose strategies for review and approval by the corporate office. Contrary to this view, we argue that CEOs in global media firms frequently drive strategy in a “top-down” manner, especially when their firms seek to expand by integrating the activities of two or more existing divisions. We refer to such firms as “Entrepreneurial M-forms,” and maintain that their reliance on an activist CEO offers benefits: (1) in turbulent environments, when the use of slow, bottom-up planning processes risks forfeiting first-mover advantages; and (2) when expansion entails major capital commitments, and division managers may be reluctant to accept the career risks associated with sponsorship of “bet-the-company” projects.

Suggested Citation

  • Thomas R. Eisenmann & Joseph L. Bower, 2000. "The Entrepreneurial M-Form: Strategic Integration in Global Media Firms," Organization Science, INFORMS, vol. 11(3), pages 348-355, June.
    • Handle: RePEc:inm:ororsc:v:11:y:2000:i:3:p:348-355
    DOI: 10.1287/orsc.11.3.348.12501
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    Citations

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    Cited by:

    1. Benoit Decreton & Henrik Dellestrand & Philip Kappen & Phillip C. Nell, 2017. "Beyond Simple Configurations: The Dual Involvement of Divisional and Corporate Headquarters in Subsidiary Innovation Activities in Multibusiness Firms," Management International Review, Springer, vol. 57(6), pages 855-878, December.
    2. Hyoung-Goo Kang & Richard M. Burton & Will Mitchell, 2021. "How firm boundaries and relatedness jointly affect diversification value: trade-offs between governance and flexibility," Computational and Mathematical Organization Theory, Springer, vol. 27(1), pages 1-34, March.
    3. Dooms, E., 2005. "Control in multidivisional firms : Levels issues and internal differentiation," Other publications TiSEM bc7c1906-d54c-46e5-9d8e-1, Tilburg University, School of Economics and Management.
    4. Varkey K. Titus Jr. & Brian S. Anderson, 2018. "Firm Structure and Environment as Contingencies to the Corporate Venture Capital-Parent Firm Value Relationship," Entrepreneurship Theory and Practice, , vol. 42(3), pages 498-522, May.
    5. Todeva, Emanuela, 2007. "Multi-divisional Form," MPRA Paper 52843, University Library of Munich, Germany.
    6. Hyoung-Goo Kang & Wonseok Woo & Richard M. Burton & Will Mitchell, 2018. "Constructing M&A valuation: how do merger evaluation methods differ as uncertainty and controversy vary?," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-46, December.
    7. J. Ignacio Canales, 2015. "Sources of Selection in Strategy Making," Journal of Management Studies, Wiley Blackwell, vol. 52(1), pages 1-31, January.
    8. Jeffrey A. Martin, 2011. "Dynamic Managerial Capabilities and the Multibusiness Team: The Role of Episodic Teams in Executive Leadership Groups," Organization Science, INFORMS, vol. 22(1), pages 118-140, February.
    9. Canales, J. Ignacio & Caldart, Adrián, 2017. "Encouraging emergence of cross-business strategic initiatives," European Management Journal, Elsevier, vol. 35(3), pages 300-313.
    10. Alexander S. Alexiev & Justin J. P. Jansen & Frans A. J. Van den Bosch & Henk W. Volberda, 2010. "Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1343-1364, November.
    11. Liu, Haiyang & Dust, Scott & Xu, Minya & Ji, Yueting, 2020. "Leader-follower risk orientation incongruence, intellectual stimulation, and creativity: a configurational approach," LSE Research Online Documents on Economics 106180, London School of Economics and Political Science, LSE Library.
    12. Paul M. Hirsch, 2000. "Cultural Industries Revisited," Organization Science, INFORMS, vol. 11(3), pages 356-361, June.
    13. F. Ted Tschang, 2007. "Balancing the Tensions Between Rationalization and Creativity in the Video Games Industry," Organization Science, INFORMS, vol. 18(6), pages 989-1005, December.
    14. Yue Maggie Zhou, 2015. "Supervising Across Borders: The Case of Multinational Hierarchies," Organization Science, INFORMS, vol. 26(1), pages 277-292, February.
    15. Clark G. Gilbert, 2006. "Change in the Presence of Residual Fit: Can Competing Frames Coexist?," Organization Science, INFORMS, vol. 17(1), pages 150-167, February.
    16. Corinne A. Coen & Catherine A. Maritan, 2011. "Investing in Capabilities: The Dynamics of Resource Allocation," Organization Science, INFORMS, vol. 22(1), pages 99-117, February.
    17. Jean-Philippe Vergne & Colette Depeyre, 2015. "How do firms adapt? A fuzzy-set analysis of the role of cognition and capabilities in U.S. defense firms’ responses to 9/11," Post-Print hal-01274005, HAL.

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