IDEAS home Printed from https://ideas.repec.org/p/ems/eureri/1347.html
   My bibliography  Save this paper

Investigating Strategic Renewal of Five Large Dutch Financial Services Firms

Author

Listed:
  • Flier, B.
  • van den Bosch, F.A.J.
  • Volberda, H.W.
  • Baden-Fuller, C.W.F.

Abstract

How do large well-established firms renew themselves in an increasing turbulent environment? Is there a generic pattern of change or is each change journey rather idiosyncratic? We posed five questions about the nature of renewal patterns. First, how do firms combine external versus internal initiatives in a trajectory of strategic renewal? Second, how does the balance of competence building and competence leveraging evolve in a trajectory of strategic renewal? Third, what are the sequences of action in a strategic renewal process? Fourth, do firms differ regarding speed of their renewal processes? Finally, do different strategic renewal trajectories give rise to different of similar outcomes? Using a simple framework and new metrics we described and analyzed the strategic renewal journeys of the five largest financial service firms in the Netherlands during the period 1990-1997. We found equifinality in viable trajectories of strategic renewal. In four out of five firms, they result in similar outcomes due to mimetic behaviour. Nonetheless, one firm showed deviant strategic behaviour.

Suggested Citation

  • Flier, B. & van den Bosch, F.A.J. & Volberda, H.W. & Baden-Fuller, C.W.F., 2004. "Investigating Strategic Renewal of Five Large Dutch Financial Services Firms," ERIM Report Series Research in Management ERS-2004-032-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:1347
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/1347/ERS%202004%20032%20STR.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. John McGee & Howard Thomas, 1986. "Strategic groups: Theory, research and taxonomy," Strategic Management Journal, Wiley Blackwell, vol. 7(2), pages 141-160, March.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    4. Henry Mintzberg & James A. Waters, 1985. "Of strategies, deliberate and emergent," Strategic Management Journal, Wiley Blackwell, vol. 6(3), pages 257-272, July.
    5. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    6. William P. Barnett & Henrich R. Greve & Douglas Y. Park, 1994. "An Evolutionary Model of Organizational Performance," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 11-28, December.
    7. Andre Van Cauwenbergh & Karel Cool, 1982. "Strategic management in a new framework," Strategic Management Journal, Wiley Blackwell, vol. 3(3), pages 245-264, July.
    8. Anne D. Smith & Carl Zeithaml, 1996. "Garbage Cans and Advancing Hypercompetition: The Creation and Exploitation of New Capabilities and Strategic Flexibility in Two Regional Bell Operating Companies," Organization Science, INFORMS, vol. 7(4), pages 388-399, August.
    9. D. Charles Galunic & Kathleen M. Eisenhardt, 1996. "The Evolution of Intracorporate Domains: Divisional Charter Losses in High-Technology, Multidivisional Corporations," Organization Science, INFORMS, vol. 7(3), pages 255-282, June.
    10. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    11. Hans B. Thorelli, 1986. "Networks: Between markets and hierarchies," Strategic Management Journal, Wiley Blackwell, vol. 7(1), pages 37-51, January.
    12. Frans A. J. Van den Bosch & Henk W. Volberda & Michiel de Boer, 1999. "Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities," Organization Science, INFORMS, vol. 10(5), pages 551-568, October.
    13. Diana L. Day, 1994. "Raising Radicals: Different Processes for Championing Innovative Corporate Ventures," Organization Science, INFORMS, vol. 5(2), pages 148-172, May.
    14. Hedberg, Bo & Jonsson, Sten, 1978. "Designing semi-confusing information systems for organizations in changing environments," Accounting, Organizations and Society, Elsevier, vol. 3(1), pages 47-64, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arie Y. Lewin & Henk W. Volberda, 1999. "Prolegomena on Coevolution: A Framework for Research on Strategy and New Organizational Forms," Organization Science, INFORMS, vol. 10(5), pages 519-534, October.
    2. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.
    3. O'Connell, Vincent & Lee, Jong-Ho & O'Sullivan, Don, 2018. "The influence of CEO equity incentives on licensing," European Management Journal, Elsevier, vol. 36(2), pages 266-277.
    4. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    5. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    6. Sheng, Margaret L. & Chien, Iting, 2016. "Rethinking organizational learning orientation on radical and incremental innovation in high-tech firms," Journal of Business Research, Elsevier, vol. 69(6), pages 2302-2308.
    7. Brion, Sébastien & Mothe, Caroline & Sabatier, Mareva, 2007. "What impacts more on innovation : Organizational context or individual competences ?," MPRA Paper 10595, University Library of Munich, Germany.
    8. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    9. João José M. Ferreira & Cristina I. Fernandes & Vanessa Ratten, 2016. "A co-citation bibliometric analysis of strategic management research," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 1-32, October.
    10. Scaringella, Laurent & Miles, Raymond E. & Truong, Yann, 2017. "Customers involvement and firm absorptive capacity in radical innovation: The case of technological spin-offs," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 144-162.
    11. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    12. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    13. Paula Jarzabkowski & Sarah Kaplan, 2015. "Strategy tools-in-use: A framework for understanding “technologies of rationality” in practice," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 537-558, April.
    14. Elaine Mosakowski, 1998. "Entrepreneurial Resources, Organizational Choices, and Competitive Outcomes," Organization Science, INFORMS, vol. 9(6), pages 625-643, December.
    15. 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.
    16. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    17. Carl Joachim Kock, 2005. "When the Market Misleads: Stock Prices, Firm Behavior, and Industry Evolution," Organization Science, INFORMS, vol. 16(6), pages 637-660, December.
    18. Henrich R. Greve, 2002. "Sticky Aspirations: Organizational Time Perspective and Competitiveness," Organization Science, INFORMS, vol. 13(1), pages 1-17, February.
    19. Justin Tan & Yong Zeng, 2009. "A stage-dependent model of resource utilization, strategic flexibility, and implications for performance over time: Empirical evidence from a transitional environment," Asia Pacific Journal of Management, Springer, vol. 26(3), pages 563-588, September.
    20. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).

    More about this item

    Keywords

    competence building vs. competence leveraging; financial services firms; strategic renewal;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureri:1347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub (email available below). General contact details of provider: https://edirc.repec.org/data/erimanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.