Session 4

Managerial Behavior and Business Model Transitions

Track C

Date: Monday, October 8, 2012


Time: 13:30 – 14:45


Room: Dressing Room 221

Session Chair:

  • Henk Volberda, Erasmus University Rotterdam

Title: Business Model Change in Early-Stage Entrepreneurial Firms Facing High Uncertainty


  • Sergio Costa, University of Bath
  • Jonathan Levie, University of Strathclyde

Abstract: Changing business models is inevitable for early-stage entrepreneurial firms striving to survive in transitional and high uncertainty environments. This inductive study explores how business models change in entrepreneurial firms, and how this process links to performance, by following changes in elements of business models in a set of eight early-stage university spin-offs. Findings suggest that highly committed management teams change their business models faster. Teams with higher market, entrepreneurial, and managerial knowledge change their business models less often, and rarely change their customer-related elements. Restructuring activities such as mergers or acquisitions prompt business model changes. Higher business model imagining activity leads to more actual changes. Current data collection will establish links with performance.

Title: Driving Management Innovation from Within: Interactive Effects of Top Management, Middle Management and Shared Vision


  • Mariano Heyden, University of Newcastle
  • Jatinder Sidhu, Erasmus University Rotterdam
  • Henk Volberda, Erasmus University Rotterdam

Abstract: This paper argues that a firm’s top-management-team (TMT) as well as its middle management (MM) matter for management innovation. It also argues that a shared organizational vision can help navigate uncertainty in the face of irreversible changes in managerial work. We empirically test our hypotheses using a unique panel (2000-2008) longitudinal dataset of Dutch firms. The multilevel data at firm, TMT, and MM level includes over 8,000 manager-years of observations. Findings suggest that whereas both TMT and MM background diversity exert a positive influence on management innovation, the interaction between greater TMT and MM background diversity has a negative effect. However, we find that commonality of aspirations embodied in a shared organizational vision helps counterbalance the negative effect of TMT-MM interaction.

Title: Generating Early Signals of Strategy in Transition: A Key Role of Internal Corporate Venturing


  • Taina Tukiainen, Hanken Swedish School of Economics
  • Robert Burgelman, Stanford University

Abstract: To elucidate the challenges of strategy in transition at the corporate level, we examine the role of internal corporate venturing (ICV) in providing early signals - true and false ones - of impending strategic transitions based on studying 13 ventures out of the portfolio of 37 internal corporate ventures at Nokia in the period late 1990s-early 2000s. We develop a conceptual framework of top management responses to venture signaling and examine the 13 signal-carrying Nokia ventures in light of it. Our findings help elucidate further the difficulties top management faces in overcoming the inertia of co-evolutionary lock-in associated with extremely successful strategy vectors, as well as the difficulties in dealing with the rule-changing strategies of cross-boundary disruptors, such as Apple and Google.

Title: Modeling Transition towards the Lean Enterprise: The Role of Management Behaviors


  • Arnaldo Camuffo, Bocconi University
  • Fabrizio Gerli, Ca' Foscari University of Venice

Abstract: This study investigates the management behaviors and competencies associated with successful processes of lean transformation applying statistical analysis to an original dataset coming from field research on 26 processes of Lean transformation in North Italian SMEs. We test if a repertoire of lean management behaviors drawn from the literature captures the essence of management in lean production environments, and find that these behaviors actually correlate with the degree of advancement of the lean transformation process. We also find that managers of lean firms are focused on the development of standards, have wider responsibilities, act more responsibly, pay more attention to the horizontal flow of value, evaluate performance referring to the state of the organizational processes, and conceive their role as that of a teacher.

All Sessions in Track C...

Mon: 08:00 – 09:15
Session 2: Business Models: Transitioning from Research to Practice and Back
Mon: 09:30 – 10:45
Session 3: Strategic Change, Resources, and Business Model Transitions
Mon: 13:30 – 14:45
Session 4: Managerial Behavior and Business Model Transitions
Tue: 08:00 – 09:15
Session 5: Transitions in Governance and Business Models
Tue: 11:00 – 12:15
Session 6: Organizational Learning and Business Model Transitions
Tue: 14:15 – 15:30
Session 8: Business Model Transitions in Transitional Market Settings
Tue: 15:45 – 17:00
Session 9: Business Model Transitions As Industry Sector Phenomena

Strategic Management Society