Professional Documents
Culture Documents
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Environment
Institutional Effects
Co-Evolution
4 engines of renewal
Renewal Process
Co-evolution Holistic Renewal Tensions Exploration vs Exploitation Adaptation vs Selection Change vs Preservation
Perspective of MicroEvolutionary
Selection Theory Population Ecology Institutional Theory Evolutionary Theory RBV Area of Interest Procedural and structural baggage Industry norms and shared logic Proliferation of routines Exploitation of core competencies Theory Dynamic Capability Theory Behavioral Theory Learning Theory Strategic choice theory Adaptation Area of Interest Latent abilities to renew core competencies Slack and strategic intent Alignment based on learning , unlearning, relearning Dynamic process subject to managerial actions
Managerial intentionality
All units alike Constant state of exploration-exploitation Balance achievement : stability of the units. Buying units which are balanced and sell units which are not
Portfolios of units which will be changing and tending to exploitation The portfolio of units range along the explore-exploit continuum and together represent a balanced state. Balance achievement : mixing the portfolio at each point of time for equilibrium
Reversement process of the evolutionary trajectory Balance achievement : retrospective aggregation Only survives if the extreme do not become to great, resulting in breakdown
Top Management :
The role and behavior of top management and complementary roles by different management levels
Variation :
What are the sources of variation ? It is based on the concept of knowledge deployments. Is it the incentive offer ? Top managements deliberate fashion ? Outside knowledge ?
Co-Evolutionary Path
Hows the renewal journey works
Selection :
Based on the Top-Management behavior (Proactive/Reactive) and choices of manner (Static/Dynamic)
Naive Selection
Slow-Moving Mature Environments Intra-Unit Learning and Sharing = N/A
Top Management:
takes a reactive stance towards the industry Interpret and amplify market forces and market signals No intentional synergies creation
Variation
competitive forces for survival narrow incentive based on the close relation to core competence Takes place inside and outside
Co-Evolutionary Path =
Denial of Co-evolution and No pluralistic management roles
Selection
Based on profitability and stability of exploreexploit
Managed Selection
Fast-moving, unpredictable environments Managerial Behavior
Top Management passive
takes a reactive stance towards its ability to shift the industry forces trying to be prepared for the changes that may come about.
Variation
Top management creates strategic context for variety generators: variety generators are needed to facilitate
venture creation that parallels or anticipates the selection out of older more mature activities. Top management now focuses on initiatives within proposed by front line managers
Co-Evolutionary Path
Facilitative micro coevolution:
take a more balanced view of the possibilities open to management
Selection
A portfolio ranged over the spectrum of explore-exploit:
Top management has a capability to adjust. Selection occurs among competing units.
Hierarchical Renewal
Moderately paced environments Managerial Behavior
Top Management active
Top managers believe they have some power over their environment. strategic renewal depends on their strategic intent.
Variation
Top management creates strategic intent & assists the stimulation: Variation is a process that is directed by the
top. Aimed at creating units that fit with the vision.
Co-Evolutionary Path
Directed macro to micro coevolution:
Renewal journeys are driven by a priori top-managerial intentions that develop cascade-down. The source of renewal is not selection or quasi-selection, but ex ante managerial purpose.
Selection
Selected portfolio based on fitness to the top management vision:
the criteria for a sale or a purchase are based on the capability of stimulating and provoking other units into changing direction.
Holistic Renewal
Any kind of environments Intra-Unit Learning and Sharing Managerial Behavior Top Management active
Top management believes that it should try to influence the world by working closely with the lower levels creating an effective engine for renewal.
Cyclical Journey
Variation
Created by dualistic process by top and frontline managers: Variation and selection cannot be separated
simply by level or by time; rather, it is integrated.
Co-Evolutionary Path =
Transformational macro to micro co-evolution:
The driver of renewal depends on the socially constructed reality of organizational participants. Sense-making as enactment where the journey is driven by the development of shared strategic schemata or collective frames of reference.
Selection
Selected portfolio based on collective sensemaking:
The top management team act as a transformational leader who drives the process from the front , involves others, and brings them along.
Active
Hierarchical Renewal:
Emergent perspective. Slow-moving environment.
Active
Managed Selection:
Facilitative leadership. Fast-moving, unpredictable environment.
Holistic Renewal:
Transformational leadership Any environment.
Conclusion
Organizations are not static, and often resist attempts at simple categorization. Journeys of renewal are idiosyncratic, based on distinct combinations of managerial behaviors that are compatible with balance. There is proactive and reactive behavior of managements with respect to the environment.
Thank you!
Physical concepts are free creations of the human mind, and are not, however it may seem, uniquely determined by the external world. ALBERT EINSTEIN, The Evolution of Physics.