The impact of organisational complexity in the strategy development process.

In the first chapter of this book, it was stated that there is a set of characteristics that lead towards a decision being labelled as a strategic one. One of these characteristics is the complexity and inter-relatedness of the organisational context the strategy decision-maker has to deal with. This chapter focuses on showing how the organisational complexity of the firm affects the strategy development process

Analysing industry profitability: A "complexity as cause" perspective

Summary We investigate how the competitive complexity of an industrial sector affects its profitability. For that purpose, we developed a set of simulations representing industries as complex systems where different firms co-evolve linked by multiple competitive dimensions. We show that increases in the complexity of an industry, resulting from increases in the number of players and in the number of competitive dimensions linking them, damages industry performance. We also found that the negative impact on performance resulting from a higher number of competitive dimensions decreases as the number of players in the industry increases and that the decrease in industry performance associated to big increases in the number of players is mediated by the number of competitive dimensions linking them.Industry structure Competitive strategy Competitive dimensions Agent based simulations Complexity theory Co-evolution

Stakeholder salience in Latin America: Who really counts?

This chapter explores the issue of stakeholder salience in the context of Latin America. The notion of “stakeholder” has become embedded in both management scholarship and management practice. Its origins trace back to the publication of R. Freeman’s Strategic Management: a Stakeholder Approach. According to agency theory, the shareholder is the most salient stakeholder from a normative standpoint. The theory claims that, in practice, such salience is not always evident, due to the failure of shareholders to align managers’ behavior with their own interests. Managers will acknowledge the salience of shareholders and intend to pursue their benefit if they are entrusted to do so. Stakeholder theory realistically describes how managers manage, and it explicitly acknowledges the importance of the firm’s different constituencies, beyond shareholders. Thus, prioritizing the diverse stakeholder groups and actions to satisfy their legitimate interests requires a top management team with a special sensitivity.Fil: Caldart, Adrián A.. IESE Business School; EspañaFil: Carreras, Alejandro. Universidad Austral; Argentina. IESE Business School; EspañaFil: Cornejo Tonnelier, Magdalena. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentin

Adaptation of Business Models in Emerging Markets: The Case of Latin America

The aim of this thesis was to understand how the context of emerging markets influences business model configuration using on-line strategies. The research question posed at the beginning was the following: Which are the general principles and key success factors associated to on-line strategies in emerging markets?. Much has been written on emerging markets and on how their context conditions differ significantly from those of developed world markets and how these conditions affect a company s strategies and performance. But little is known yet about which precise factors are proving successful for local business models competing in these markets using the advantages provided by the Internet, and how they have adapted known and proven business models in developed markets to make them more competitive in these particular conditions present in emerging markets such as Latin. This dissertation explores how firms from emerging markets adapt their business models to operate successfully using web-based strategies. In doing so, we developed in depth research on the characteristics of the business models of six Latin American companies, in an attempt to understand the strategies and factors that have driven success as a result of the processes of adaptation of their business models in this geographic context. This analysis led to the identification of common themes across the six cases. The main implications on value creation from these kinds of business models are discussed and success factors specifics are suggested. Finally, we propose a framework of strategic theories that best illuminate these realities in emerging economies. Considering that the aim of this study is to address a virtually unexplored research area, multiple case study methodology has been deemed the most appropriate approach for this purpose

Adaptation of Business Models in Emerging Markets: The Case of Latin America

The aim of this thesis was to understand how the context of emerging markets influences business model configuration using on-line strategies. The research question posed at the beginning was the following: Which are the general principles and key success factors associated to on-line strategies in emerging markets?. Much has been written on emerging markets and on how their context conditions differ significantly from those of developed world markets and how these conditions affect a company s strategies and performance. But little is known yet about which precise factors are proving successful for local business models competing in these markets using the advantages provided by the Internet, and how they have adapted known and proven business models in developed markets to make them more competitive in these particular conditions present in emerging markets such as Latin. This dissertation explores how firms from emerging markets adapt their business models to operate successfully using web-based strategies. In doing so, we developed in depth research on the characteristics of the business models of six Latin American companies, in an attempt to understand the strategies and factors that have driven success as a result of the processes of adaptation of their business models in this geographic context. This analysis led to the identification of common themes across the six cases. The main implications on value creation from these kinds of business models are discussed and success factors specifics are suggested. Finally, we propose a framework of strategic theories that best illuminate these realities in emerging economies. Considering that the aim of this study is to address a virtually unexplored research area, multiple case study methodology has been deemed the most appropriate approach for this purpose