I have created a number blogs to publish useful information. One is a Teaching Blog dedicated to providing past, present and future students useful information. I have also created a blog for the Courses I am teaching.
My Research Blog is dedicated to disseminating useful information to other researchers and scholars.
There is also a blog that has collected all of Charles Tilly’s Writings on Methodology.
Below you find every entry across all my Blogs.
1. The Strategic Process and Competitive Dynamics of Industry Convergence
Date: Sunday, September 21, 2014
Time: 11:15 – 12:30
Samina Karim, Boston University
John Prescott, University of Pittsburgh
* Alfonso Gambardella, Bocconi University
* Anita McGahan, University of Toronto
* Johann Peter Murmann, University of New South Wales
* Fernando Suarez, Boston University
Understanding how industries change has attracted considerable attention because it blurs industry boundaries, redefines the competitive landscape, creates opportunities for new strategies to emerge, destroys competitive advantages while solidifying others, challenges cognitive maps and establishes new institutional arrangements. In this session, expert panelists will bring us up-to-date on the phenomenon of industry convergence (IC) by sharing their perspectives regarding (1) the antecedents, dynamics, and consequences of IC; (2) how to conceptualize strategic management processes and how they may inform the dynamics of IC; (3) how scholars should evaluate the attractiveness of, and rivalry within, IC industries; and (4) promising research directions including theory development and empirical studies.
2. How Does Headquarters Create Value in a Diversified Multi-Business Firm: The Case of Wesfarmers
by Johann Peter Murmann and George Shinkle
Session on Corporate Structure, Resource allocation, and Portfolio planning
Date: Monday, September 22, 2014 Time: 14:45 – 16:00 Room: Londres (our talk is at the beginning of the session)
Abstract: Aside from emphasizing target setting, high-level monitoring, and aligning incentives, the strategy literature provides very little guidance on how headquarters of a large multi-business corporation should interact with its business units to create and capture value. We examine Wesfarmers Ltd. (Australia) because the long-term high performance of this unrelated conglomerate is unexpected by much of the strategy literature. Our investigation promises to shed light on effective management practices. Contrary to what the literature expects, the Wesfarmers CEO and other headquarters (HQ) staff (chiefly the CFO and Business Development personnel) are significantly involved in defining, monitoring, and redefining the operational goals at the business unit level and the means (strategies and initiatives) to accomplish them. Furthermore, HQ adjusts its management practices to respond to particular needs of each business unit, being most involved in the period following and acquisition and when units are not meeting the targets set by HQ.
Do some top executives matter more than others? Integrating insights from upper echelons and executive mobility research, we suggest that the functional roles performed by top executives shape their value to the firm. We examine the effects of inter-firm executive mobility on firm survival for New York City advertising firms from 1924 to 1996. We find that, while losing any top executive is damaging, the loss of a top executive whose functional role focuses on internal firm processes is more detrimental to firm survival than losing a top executive whose functional role focuses on managing external exchange relationships. Additionally, in situations when multiple executives leave simultaneously, firms are more negatively affected when the group departing is functionally heterogeneous.
Bermiss, Y. S., & Murmann, J. P. 2014. Who Matters More? The Impact Of Functional Background And Top Executive Mobility On Firm Survival. Strategic Management Journal:
An earlier version that placed more emphasis on heterogeneity of top management teams influencing firm survival is available at SSRN.
I am inconsistent. I some contexts I have banned computers and more importantly smartphone use in classrooms because it became apparent that large number of students were distracted by it. It others I have allowed it because I myself like to take notes on a laptop. Here is the evidence why at least internet connections need to be turned off in classrooms.
Over time, a wealth of studies on students’ use of computers in the classroom has accumulated [...]. Among the most famous is a landmark Cornell University study from 2003 called “The Laptop and the Lecture,” wherein half of a class was allowed unfettered access to their computers during a lecture while the other half was asked to keep their laptops closed. The experiment showed that, regardless of the kind or duration of the computer use, the disconnected students performed better on a post-lecture quiz. The message of the study aligns pretty well with the evidence that multitasking degrades task performance across the board.
Pop quizzes, of course, are not the best measure of learning, which is an iterative and reflective process. Recent Princeton University and University of California studies took this into account while investigating the differences between note-taking on a laptop and note-taking by hand. While more words were recorded, with more precision, by laptop typists, more ended up being less: regardless of whether a quiz on the material immediately followed the lecture or took place after a week, the pen-and-paper students performed better. The act of typing effectively turns the note-taker into a transcription zombie, while the imperfect recordings of the pencil-pusher reflect and excite a process of integration, creating more textured and effective modes of recall.
Abstract: Building on recent research on dynamic, high-growth firms—so-called “gazelles”—this paper explores a simple question that is important in both theoretical and practical terms: What is the fastest rate at which firms can grow? Based on a sample of seven high-growth firms (Cisco, GM, IBM, Microsoft, Sears, Starbucks, and US Steel), we find that 162% is the maximum sales growth rate in any one year that an established company can grow without mergers and acquisitions, while the maximum rate of employee growth is approximately 115% even including some mergers and acquisitions. All of the companies in our sample attained a maximum sales growth rate of above 50%, with most hovering around 75%. Furthermore, the firms’ growth rates exhibit similar patterns. No company experienced its maximum sales growth rate toward the latter part of its history. Every company experienced its slowest employee growth rate after attaining its maximum employee growth rate, usually within a decade of one another. Most importantly, all firms show an average sales growth that exceeds the average employee growth. This finding is an indication that successful growing firms have a superior capability to continuously improve employment efficiency and adjust organizational structures to suit an increasing workforce.
Murmann, J. P., Korn, J., & Worch, H. 2014. How Fast Can Firms Grow? Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 234(2-3): 210-233.
If your library does not subscribe to the journal, the paper just before publication is available on SSRN for download. Or contact me for copy.
The digital revolution is devouring printed travel guides. Lonely planet is a case in point. The BBC bought the company forf $210 in 2007 and sold it last year for roughly $121 million. Here is a instructive figure charting the decline in printed guide sales.
This if one of the most interesting open letter I have ever read by a CEO. Mathias Döpfner, CEO of Axel Springer, closes his open letter:
Dear Eric Schmidt, you do not need my advice, and of course I am writing here from the perspective of those concerned. As a profiteer from Google’s traffic. As a profiteer from Google’s automated marketing of advertising. And as a potential victim of Google’s data and market power. Nevertheless – less is sometimes more. And you can also win yourself to death.
Historically, monopolies have never survived in the long term. Either they have failed as a result of their complacency, which breeds its own success, or they have been weakened by competition – both unlikely scenarios in Google’s case. Or they have been restricted by political initiatives. IBM and Microsoft are the most recent examples.
Read full letter in FAZ: Why we fear Google
A recent survey of CEOs reveals what they are looking for in today’s MBA graduates:
Cross-Cultural Competency (57%)
Team Skills (49%)
Critical Thinking (48%)
Comfort with Ambiguity and Uncertainty (41%)
People underestimate that scientists often make progress by chance. Here is the story of researchers studying a species that has invaded Florida’s Everglades made an unanticipated discovery: deadly Florida pythons have internal GPS.
“We found that Burmese pythons have navigational map and compass senses,” said Shannon Pitman of North Carolina’s Davidson College, the lead researcher of a team of scientists that released six captured snakes back into the wild, then tracked them through the Everglades National Park for up to nine months.
“It wasn’t what we expected. We thought we’d see a kind of aimless, wandering behaviour, but the pythons made their way pretty quickly back to where to where they were captured. It was more sophisticated in terms of movement than we’ve seen in other species of snake.”
What makes the discovery more remarkable is that it was completely accidental. Pitman’s team originally wanted to release the snakes closer to their capture points within the Everglades, as they were more interested in studying the habitat through which they were moving than the actual distances they travelled.
But wildlife officials, whose efforts to eradicate or contain the up to 100,000 non-native snakes estimated to have spread through the park’s 1.5m acres, refused permission.
That led to the team releasing the snakes at more remote locations between 13 and 23 miles away, outside the National Park’s boundaries, and then watching in amazement as one python after another made its way back “home”.
Each snake was fitted with a radio tracker and its position monitored by GPS one to three times per week. All six moved in a near-straight line towards their capture points and five ended up within a couple of miles. The snake with the longest journey took nine months to reach its destination.
Full Story: Guardian
Click on “More” to play the video animation.
Hasso Platter co-founded SAP. For the past two decades he has been involved in trying to adopt the SAP to area of internet and cheap clout computing.
When asked whether it is harder to set up a new company or to steer an existing company in a new direction, he does not hesitate with his reply.
“The bigger challenge, I’d say, is the latter one.”
To reinvent a successful company such as SAP is much more difficult. “You have to convince people that change has to come, and that is difficult,” he says, noting that it is easier to convince Americans about the future than people in Switzerland or Germany. “We are more conservative. We are a little bit afraid of the future. Americans are not afraid of the future.”
Source: Financial Times
In their new book, The Three Rules: How Exceptional Companies Think, Michael E. Raynor and Mumtaz Ahmed carefully identified from all publicly listed American firms those firms that performed very highly over long periods of time. When they tried to find out what they had in common, they could not identify concrete behavior. What made the companies different, according to the authors, where their mindsets. This leads Raynor and Ahmed to articulate three rules for success.
Better before cheaper: Compete on differentiators other than price.
Revenue before cost: Drive superior profitability with higher prices or higher volumes, not lower cost.
There are no other rules: Change anything/everything in order to abide by the first two rules.
The Economist wrote a very thoughtful review about the entire genre of business books that tries to glean lessons from studying successful players. I agree with their assessment that in the end,
The difficult question is how to find that profitable niche and protect it. There, The Three Rules is less useful.
In a wide-ranging interview with the NY Times, Nadella explained his views on how to organize for innovation.
Q. Your company has acknowledged that it needs to create much more of a unified “one Microsoft” culture. How are you going to do that?
A. One thing we’ve talked a lot about, even in the first leadership meeting, was, what’s the purpose of our leadership team? The framework we came up with is the notion that our purpose is to bring clarity, alignment and intensity. What is it that we want to get done? Are we aligned in order to be able to get it done? And are we pursuing that with intensity? That’s really the job.
Culturally, I think we have operated as if we had the formula figured out, and it was all about optimizing, in its various constituent parts, the formula. Now it is about discovering the new formula. So the question is: How do we take the intellectual capital of 130,000 people and innovate where none of the category definitions of the past will matter? Any organizational structure you have today is irrelevant because no competition or innovation is going to respect those boundaries. Everything now is going to have to be much more compressed in terms of both cycle times and response times.
So how do you create that self-organizing capability to drive innovation and be focused? And the high-tech business is perhaps one of the toughest ones, because something can be a real failure until it’s not. It’s just an absolute dud until it’s a hit. So you have to be able to sense those early indicators of success, and the leadership has to really lean in and not let things die on the vine. When you have a $70 billion business, something that’s $1 million can feel irrelevant. But that $1 million business might be the most relevant thing we are doing.
To me, that is perhaps the big culture change — recognizing innovation and fostering its growth. It’s not going to come because of an org chart or the organizational boundaries. Most people have a very strong sense of organizational ownership, but I think what people have to own is an innovation agenda, and everything is shared in terms of the implementation.
Source: NY Times
The founders of Whatsapp were very clear that did not not what to sell advertisement through the messaging app. (See their 2012 statement.They did not even want to collect data on their users. So why did they sell themselves to Facebook, which is all about collecting more data on us to sell it to advertisers? Here is a clue in their blog. Maybe they were tired of having to manage a business rather than just design a product.
Mokyr points out the modern GDP measures are not accounting for improvements in quality of products and life.
He sees no end to innovation. Basic science needs to be funded by governments because private individuals and corporations cannot appropriate the returns from these investments. He sees culture that encourages natural skepticism of students as a key ingredient for furthering innovation of a country.
The philosopher and polymath Michael Scriven has written extensively on the logic of explanations. Here are two of his most valuable pieces. The first one is how one can make good inferences from single cases studies and the second one one explanations in history.
1. Scriven, M. (1974). Maximizing the Power of Causal Investigations: The Modus Operandi Method. In W. J. Popham (Ed.), Evaluation in education: Current applications: 68-84: McCutchan Pub Corp. Download
2. Scriven, M. (1966). Causes, Connections, and Conditions in History. Philosophical Analysis and History. W. H. Dray, Harper & Row: 238-264. Download
This chapter reviews the ideas that have been developed to describe the emergence and change of structures in three fields: Economics, Management, and Design of Technologies. The chapter focuses on one empirical setting, the economy, and more specifically how firms, industries, and technologies change over time. Today’s industrialized economies are very different from the economies before the industrial revolution. The chapter presents key theoretical ideas from evolutionary economics, management, and technology that try to explain why and how economy has been so dramatically transformed over the past 400 years. You can download a draft of chapter here or find the book in your library or buy it at Amazon.com or MIT Press.
Ten years ago I read Stinchcombe’s “Theoretical Methods in Social History”. I recently reread the parts that I had highlighted and I thought it useful to share some key passages.
One does not apply theory to history; rather ones uses history to develop theory. 
It is rather that the fashion in quantitative history has come to be that one must agree to be voluntarily ignorant of the any evidence other than numbers. 
As the argument develops, it will become clear why I am unenthusiastic about most quantitative history. Let me state the argument in capsule form.
For a number, say a count, to be theoretically interesting, it has to be a count of a comparable instance. What instances comparable for a scientist is that those instances have identical causal impact. Thus a count is more illuminating, the more theory and the more detailed examination of the facts went into making the instances counted comparable. But this ordinarily means that making a count should be the last stage of a scientific enterprise, a stage reached only after an extensive development of theory on what makes instances comparable. Is the proletarian in the Vyborg district of Petersburg or in the Baltic Sea Fleet equivalent in impact on the Russian Revolution to a proletarian in Moscow? Trotsky convinces me he was not (and if the proletarian was a she, in either place, she was not equivalent to a male proletarian either). Consequently, a count of proletarians in Russia in 1917 is fact of relatively little interest. 
In early June, I visited Beijing for the first time. The Chinese capital is breathtaking in every sense of the word. The city has gone through an amazing development and is more glitzy than many American and European large cities. It definitely feels more modern and dynamic than Philadelphia, whose neighborhoods I explored while living there for most of 2012.
As a teenager in the early 1980s, I visited a number of communist countries: East Germany, Poland, Czechoslovakia. So I find it easy to imagine what Beijing would have looked like before 1978. In mere 30 years, a run-down and crumbling place was transformed into a modern city, which is far better developed than any city I have seen during my visits to formerly communist Ukraine in 2004 and 2009. Also in relation to Rio De Janeiro, Beijing seems newer, and lot cleaner especially compared to the outskirts of Rio.
PM: Guy also shows how to put together a great simple slide presentation.
MOR is the official journal of International Association for Chinese Management Research. While the journal is focused on China, comparative studies of China and other countries are highly appropriate for the journal.
I am interested in detailed studies of how technologies, organizations, industries and supporting institutions evolve over time. Methodologically, I hope to attract comparative case studies that are rich in descriptive data that is both quantitative and qualitative. I also hope to attract historical case studies. Papers that feature particularly innovative companies or organizational and institutional structures are of particular interest.
SO! has pulled together the collection of articles on research methods that the journal published over the years. I for one will come back to these articles. I suspect many doctoral students will find them useful.
Ann Langley: Over the years, Strategic Organization has published a number of very useful and insightful articles on research methods for studying strategy and organization. This section of the website groups together a collection of the most interesting articles of this type. Both quantitative and qualitative researchers will find ideas for novel approaches and pointers for enhancing the quality of their research among these contributions.
History and Strategy: Toward an Integration of Theory and Method History and Strategy
New Presentation Slides for Download. Click here.
Program Session #: 80 | Submission: 14401 | Sponsor(s): (BPS, MH, TIM)
Scheduled: Friday, Aug 9 2013 11:45AM - 1:45PM at WDW Swan Resort in Swan 10
Organizer: Steven Kahl; Dartmouth College (TUCK);
Organizer: Brian S. Silverman; U. of Toronto;
Participant: David A. Kirsch; U. of Maryland;
Participant: Huseyin Leblebici; U. of Illinois;
Participant: J Peter Murmann; Australian School of Business, UNSW;
While historical research has played a central role in the development of the strategy literature, it remains underrepresented in strategy journals. This PDW explores how historical analysis can inform strategy research. As the strategy field continues to develop dynamic models of strategy, the historical perspective can provide unique perspective, and could potentially even develop a history-based theory of strategy. Yet, doing historical research in strategy faces methodological challenges given its different approach to the development of theory and use of evidence. Consequently, this PDW addresses the different opportunities available to strategy scholars to engage in the historical method. The format of the PDW is a combination of 1) presentations in which scholars experienced in conducting historical analysis within the strategy and organizational fields discuss the challenges of doing this work and 2) interactive breakout sessions in which participants break into smaller groups to discuss design of a historical study in topical strategy research areas, such as dynamic capabilities and industry evolution. These breakout sessions will help identify how the historical approach can make novel theoretical contributions and reveal roadmaps for pushing this work further.
Search Terms: History/Historical Analysis , Strategy , Theory and Methods
Architectural Strategy and Design Evolution in Business Ecosystems: Opportunities and Challenges
Ecosystem Design and Strategy
Program Session #: 279 | Submission: 10331 | Sponsor(s): (TIM, BPS, ENT, OMT)
Scheduled: Saturday, Aug 10 2013 10:15AM - 12:45PM at WDW Swan Resort in Swan 3
Steve Klepper, who has been an inspiration to so many of us, recently passed away. At the 20th anniversary of the CCC colloquium, we honored Steve Klepper. The video captures very nicely how much Steve touched an entire generation of doctoral students working on the intersection of industry evolution and technological innovation.