A Resource‐Based View of the Build/Buy Decision: Emergent and Rational Stepwise Models of Strategic Planning

Abstract

Two ideal models of strategy development are identified: one rational stepwise; the other emergent, ex-post, relying on experimentation, where strategy is used to legitimise what has already been accomplished. Key pointsCapabilities for both strategy development models may be acquired internally or externally, but with the emergent, ex-post model, core capabilities are acquired internally through experimentation. These outcomes lead to a richer resourcebased view of emergent strategy, and suggest a diverse range of strategic options. The findings suggest that firms might deliberately take an ambidextrous approach and seek a balance of planning and emergence in their strategy process.

Interfaces for enterprise valuation from a real options lens

“…The sequential option chain is also mirrored in a model addressing new capabilities acquisition as forwarded by Sims, Powell, and Vidgen (2016), where resource acquisition begins at a the managerial level through the identification of strategies possible within the strategic field. From the identification of strategies, or the recognition of the existence of an option, managers perform the evaluation of accessible strategies.…”

Understanding microfinance institutions and commercial banks’ relationships and innovations in the Cameroon financial environment

“…Each of the types of financial institutions has its competitive advantages. MFIs, for instance, have proximity (social, spatial, and time) and social collaterals to lend to customers while commercial banks have experience and expertise skills in banking services supply and high‐quality infrastructure and resources (Durkin & Kerr, ; Sims, Powell, & Vidgen, ). In order to compete with MFIs, in the microfinance market, commercial banks use the downscaling approach.…”

Toward improved international joint ventures performance in India: the mediating role of ambidexterity and the moderating role of environmental dynamism

“…The dynamic capability view (DCV) suggests that IJVs must integrate and build the resources to generate significant value through capability mechanisms (Ding et al. , 2022; Sims et al. , 2016; Teece, 2007).…”

“…A growing stream of research suggests that cross-cultural joint venture performance can be more fully understood by examining the firm-level factors (Aggarwal and Kapoor, 2021;Chatterjee et al, 2023;Strange and Humphrey, 2019). The dynamic capability view (DCV) suggests that IJVs must integrate and build the resources to generate significant value through capability mechanisms (Ding et al, 2022;Sims et al, 2016;Teece, 2007). Based on this perspective, the present work analyzes firm-level antecedents of IJVs performance.…”