Foreign affiliates of Chilean companies operating in Latin America were more profitable than similar local firms, but this difference in profitability has been decreasing over time. Two case studies of Chilean multinationals illustrate our hypothesis that one source of competitive advantage for Chilean firms was their know-how of business strategy during economic liberalization. Using empirical and theoretical considerations, we analyze whether this hypothesis is valid for other firms and industries. Journal of International Business Studies (2007) 38, 901–927. doi:10.1057/palgrave.jibs.8400299
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to attempt to analyze how the distance of analogies used during the strategy formulation process is a critical driver used to explain the different scopes of implemented changes. Design/methodology/approach -This study was based on field research using primary data gathered from 70 firms by means of an 83-item survey. The questions were carefully constructed and answered by top managers according to a four-point scale. The three hypotheses were analyzed using multiple linear and quadratic regression analysis. Findings -The study defines a new concept of analogy's distance. Firms implement incremental changes when top managers use either short-or long-distance analogies within the strategic formulation process, whereas radical changes are implemented when top managers apply medium-distance analogies.Research limitations/implications -Even though the response rate was higher than recommended by specialists (21.5 percent), the sample was small, and also, more valid and reliable measures of different analogical distances and scopes of change are needed. The findings of this study allow us to make theoretical extensions to the cognitive theory of the strategy formulation process, strategic renewal theory, knowledge-based view of the firm, storytelling theory of organizations, and the upper echelon theory. Practical implications -Scholars from various disciplines and practitioners agree that analogies are a useful tool for many organizational matters (i.e. design strategy, renewal strategy, conflict management, understanding complex environments, facilitating communications, creating the need for change, and so on). If the firm's upper managers are familiar with external business models, they may use those as analogies in order to obtain strategic recommendations and advice which can be used to design an effective strategy, understand complex management issues, create the need for change, exploit new opportunities to achieve competitive advantages, and so on. Thus, managers have an advantage when they have accumulated a wealth of knowledge about other business models along with life experiences that may come from their past job experiences, parti...
Proposes the creation of a co‐operative acquisition centre that would permit improved use of serials to academic users in university libraries. Supported by the latest telecommunications technology the system would permit reception of requests for journal articles in a simple and rapid manner. Outlines economic feasibility and concludes that the creation of a centre is technically and economically feasible.
The most serious problem with the widely used discounted-cash-flow (DCF) methods of investment valuation is that they are commonly applied without explicit regard to competition. As a result, the prescriptions they afford are often inconsistent with those given by competitive strategy frameworks. To remedy this, we show how such frameworks can be integrated with DCF methods to value investments (and disinvestments) in competitive and uncertain contexts. We recommend that the DCF analysis be carried out within a framework that includes the following three analytical steps: positioning, which focuses on competitive advantages; sustainability, which focuses on competitive dynamics; and flexibility, which focuses on options to revise the initial investment plan in the face of uncertainty. Valuators using this framework will reduce the likelihood that the DCF analysis misses relevant competitive-strategy considerations. Firms that have used this framework for positioning, sustainability, and flexibility have shaped and clarified their choices, solving apparent inconsistencies between DCF results and the competitive-strategy argument.
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