Resource‐based theory maintains that intrinsic characteristics of resources and capabilities, such as their tacitness, complexity, and specificity, prevent imitation and thereby prolong exceptional performance. There is little direct evidence to verify these claims, yet a substantial literature encourages firms to formulate competitive strategies around resources with these attributes. Further, work outside the resource‐based tradition suggests that these attributes can slow innovation, and it is not clear when this effect outweighs the benefits of inimitability. This paper seeks to clarify whether and how the complexity, tacitness, and specificity of a firm's knowledge affect the persistence of its performance advantages. We find that the complexity and tacitness of technological knowledge are useful for defending a firm's major product improvements from imitation, but not for protecting its minor improvements. The design specificity of technological knowledge delayed imitation of minor improvements in this study. Copyright © 2002 John Wiley & Sons, Ltd.

W instonChurchill famously observed that a pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. Companies need the optimistic kind of leader, armed with a set of powerful strategic management insights, in order to be successful in emerging markets.Emerging markets hold great promise for corporate growth. That is where large numbers of consumers are. From cell phones to cars, China is the leading market in the world today, with India closely following. Emerging markets represent a $7 trillion opportunity today and this is expected to grow to $20 trillion within a decade, providing over 70 percent of global growth. China and India alone are projected to account for 40 percent of this growth. But this opportunity comes with two hurdles:1. Innovating and pricing products to suit customers with low purchasing power. 2.Coping with missing or inadequate government institutions and infrastructure that make it difficult to operate and grow.

Numerous new organizational forms have been proposed for ensuring the continuous strategic renewal of a ®rm. In essence, these forms are distinguished by: (1) their emphasis on bottom-up entrepreneurship, and (2) their reliance on a cooperative network that allows these entrepreneurial units to share their competencies with one another. One of the key behaviours required for the success of such an organization is employee empowerment. We argue in this paper that the legitimacy of corporate leadership during the restructuring of a traditional bureaucratic organization is crucial to its eventual transformation to one of the new organizational forms. The current wisdom of a two-stage transformation process, where an authoritarian restructuring precedes the more participative revitalization, is thus challenged. The transformation may get stalled after the restructuring stage because of top management's inability to empower the ®rm's employees at will, having lost their trust during restructuring.

Purpose of the paper: The purpose of this paper is to question the continued usefulness of the hierarchy of strategies framework and to propose a new approach. Methodology/Approach: Reviewing extant literature and theorizing a new approach. Findings: The hierarchy of strategies was a useful framework when it was first proposed, but since then a changed business context has made this framework obsolete. What is needed instead is a framework around a heterarchy of strategies. The locus of decision making is no longer hierarchical and corporate, business and functional strategies are far more interdependent and interlinked than they have been in the past. Research Limitations/Implications: Research on a hierarchy of strategies has run its course. Future empirical and theoretical work should focus on a heterarchy of strategies. Practical Implications: The paper provides a framework for managers whether from corporate, business divisions or functions to help with the continuous renewal of their firm. Originality: Prior empirical and theoretical strategy research has taken the hierarchy of strategy framework for granted. The original contribution of this paper is to propose an alternative framework around a heterarchy of strategies.

Driving renewalRenewal strategies seek to go beyond protecting and extending the core businesses of a firm, and progressively transform the core through a succession of leverage and build strategies (Figure 1).'' The track record of the entrepreneur-manager matters a lot. It buys him freedom to operate and the trust of his senior managers. ''