A review of empirical research on dynamic competitive strategy, страница 20

The statistical analysis of data is also a challenge. There must be thorough application of longitudinal panel data methods, and the measurements of competitive strategy, strategic change and path characteristics must be similar, so that the results are comparable across studies. Using like measures would allow researchers to build on the work of one another, for instance to measure the variance of strategic change over the medium or long term to differentiate between balanced and imbalanced paths of strategic change. The development and refinement of such measures should be a priority.

Implications for Managers

There are several interesting implications for practice that stem specifically from longitudinal studies on dynamic competitive strategy.

The long-term objectives of competitive strategy imply some degree of instability and lack of continuity. Ever-changing environmental and organizational contingencies dictate that managers be adaptive. The work done to date can help managers weigh the opportunities and risks of alternative courses of action. Deciding on the right course of action requires decisions on type of action (What to do?) and timing (When?). Longitudinal research on dynamic competitive strategy has specifically shown that the timing of reaction to technological change (Lee and Grewal 2004), product entry (Lee et al. 2000) and competitor moves (Smith et al. 1991) has important implications for performance. Consequently, managers need to be aware of internal and external barriers to change that might hinder quick and decisive implementation of strategic actions.

Strategic decisions that create subsequent path dependencies merit particular managerial attention. As long-term developmental paths in the pharmaceutical industry have shown (Lee 2003), such decisions can create sustained heterogeneity between firms, shape the direction of firm competitive development, and ultimately cause enduring intra-industry performance differentials. Managers are well-advised then to devote the time and necessary resources to making informed decisions.

Conclusion

1.Top of page

2.Abstract

3.Introduction

4.Methodology

5.Literature Review

6.Suggestions for Future Research and Implications for Practice

7.Conclusion

8.References

How ‘dynamic’ is research on dynamic competitive strategy? In this review of the literature, we have answered this question by taking three different perspectives: (1) how longitudinal studies have broadened our understanding of the antecedents and outcomes of competitive strategy; (2) the importance of the timing of strategic actions; and (3) how longitudinal studies have accounted for the long-term path characteristics of strategic activity.

We organized by theme 137 strategic management articles from nine journals. The comprehensiveness of the review yielded nuanced conclusions. First, the studies in the review cover a broad spectrum of antecedents and outcomes of competitive strategy. Second, the timing of strategic actions has been shown to be an important factor in competitive strategy. Yet, contributions that look at timing are, with few exceptions, studies of product and market strategies and competitive interaction dynamics. Third, long-term path characteristics have received the least amount of attention to date. While some studies, relying mostly on the resource-based view as their theoretical foundation, have generated promising insights regarding path dependencies, similar approaches have not yet spread to other aspects of competitive strategy. In addition, the majority of the studies covered in this review focus on how path dependencies influence the direction of future decisions. The pace of strategic change over longer periods of time and their performance implications remain important avenues for future research.

Notes

• 1

Strategy as ‘the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action ... necessary for carrying out these goals’ (Chandler 1962, 16).

• 2

Strategy as ‘the fundamental pattern of present and planned resource deployments and environmental interactions that indicates how the organization will achieve its objectives’ (Hofer and Schendel 1978, 25).

• 3

Strategy as ‘a consistent pattern ... of managerial controllable or decision components ... ; and the direction in which these components are shifting over time ...’ (Galbraith and Schendel 1983, 156).