Session 98

Management of Emerging Strategic Issues

Track H

Date: Tuesday, October 9, 2012


Time: 15:45 – 17:00


Room: Club A

Session Chair:

  • Daniella Laureiro-Martínez, ETH Zurich

Title: Foreseeing The Dynamics of Strategy: A System Dynamics Approach to Strategic Anticipation


  • Rossen Kazakov, BGPharmA
  • Martin Kunc, University of Warwick

Abstract: The paper explores firms as complex anticipatory systems which construct dynamic strategy configurations based on alter-ego anticipation of future states within their competitive environment. Firms differ in their dynamic cognitive capabilities, which lead to formation of different alter-ego reflexive configurations (alternative resource configuration sets) and anticipatory search and selection of optimal (within the bounded rationality paradigm) strategic choices. To illustrate this idea, we performed a behavioral simulation experiment with a group of senior managers in a pharmaceutical firm. The experiment was based on the re-assessment of a product market strategy with and without the use of a simulation-based learning environment. The results give evidence of the existence of four key dynamic cognitive capabilities (DCC) defined as: strategic imagination, strategic conversation, strategic innovation and strategic surprise.

Title: Market Shocks and Product Positioning in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers


  • Robert Seamans, New York University
  • Feng Zhu, Harvard University

Abstract: A growing number of industries, including search engines, credit cards and media, can be characterized as two-sided, serving both advertisers and consumers. How do technology shocks to these industries affect their differentiation strategies? To better understand this question, we take advantage of geographical and temporal variation in entry by Craigslist to study how technology shocks affect differentiation between newspaper firms. We show that newspapers respond to Craigslist's entry to the classified-ad side of the market by increasing content differentiation on the subscriber side of the market. This effect is particularly pronounced in markets with readers with different tastes in news types.

Title: The Delphi Oracle: An Information Processing Approach towards Industry Uncertainty and Ambiguity in Emerging Markets


  • Christian Kuklinski, EBS University
  • Roger Moser, University of St. Gallen
  • Christoph Georgi, EBS University

Abstract: Managers in emerging markets are challenged in their strategic decision-making: Political and economic shocks as well as fast and non-linear institutional change increase not only the uncertainty of the market environment but also the ambiguity of consequences of institutional changes. We demonstrate how a Delphi study approach can be used to improve information processing activities in a dynamic institutional context inherent in most emerging markets by analyzing both quantitative data and qualitative arguments. The data was collected from 43 industry experts assessing the future of the small car automotive industry in India.

Title: When Crisis Leads to Innovation: Moderating Effect of Perceived Urgency and Predictability Resolving Threat-Rigidity Paradox


  • Oleksiy Osiyevskyy, Northeastern University

Abstract: The behavior of organizations facing severe adversity (extreme losses, risk of bankruptcy, loss of license, emerging disruptive innovation) has been contentious in the literature for the last three decades, with contradicting theoretical predictions and inconsistent empirical results. One view suggests amplified risk-taking behavior of threatened organizations, leading to innovation. The other view argues in favor of the threat-rigidity phenomenon, impeding risk-seeking behavior and discouraging any actions that differ from habitual practices. We show that both theories hold true in particular situations, and that the innovative or rigid behavior is determined by a set of moderating factors, particularly predictability of the environment and urgency. We test our unifying model in the context of the real estate brokerage industry, finding strong support for the hypothesized moderating effects.

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 267: Strategic Processes in Transition
Sun: 09:30 – 10:45
Session 268: Capabilities that Help or Hurt Acquisition Processes
Sun: 11:15 – 12:30
Session 269: Chief Strategy Officer’s Role in Strategy Processes
Sun: 15:15 – 16:30
Session 89: Strategic Alignment and Strategy Implementation
Mon: 08:00 – 09:15
Session 99: Ambidexterity and Innovativeness
Mon: 09:30 – 10:45
Session 91: Consensus and Commitment
Mon: 13:30 – 14:45
Session 92: Attention, Goals and Renewal
Mon: 16:30 – 17:45
Session 90: Participation, Cooperation and Commitment
Tue: 08:00 – 09:15
Session 94: Going Beyond the Conventional Wisdom
Tue: 11:00 – 12:15
Session 95: Emotions and Behavior
Tue: 14:15 – 15:30
Session 96: Comprehensiveness and Time
Tue: 15:45 – 17:00
Session 98: Management of Emerging Strategic Issues
Tue: 17:30 – 18:45
Session 93: Cognition and Intuition
Session 97: Cognition and Capabilities

Strategic Management Society