Advances in Business Research 2010 Volume 1.pdf 62 Advances in Business Research !"#$%$!#&'#(&)*+$,$!#&-'.$#"&$#&)$/*0,$1*(&2$03,& !""#$%&'()*"&+$,-.-"!/-$,-..*0* Irene Duhaime, Georgia State University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pursued new approaches advocated by these reviews. O#$8-714'50$-5$&6*$'5<1*57*$-8$(!5!0*"4$'5$/'2*"4'9*/$9"(4+$&6*$"*4*!"76$"*)-"&*/$6*"*$!//"*44*4$P1*4&'-54$&6!&$ 6!2*$"*7*'2*/$&--$.'&&.*$!&&*5&'-5K$Q-..-3'50$C!(:"'7;$!5/$R!4-5S4$>@AITJ$1))*"$*76*.-54$8"!(*3-";+$&6'4$4&1/#$!4;4$ &3-$;*#$P1*4&'-54K$Q'"4&+$36!&$!"*$&-)$(!5!0*"4S$:*.'*84$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5U$%*7-5/+$&6*$4&1/#$ &6*5$7-54'/*"4$36*&6*"$*=*71&'2*4S$:*.'*84$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$!"*$!44-7'!&*/$3'&6$&6*'"$9"(4S$ 4&"!&*0'7$76-'7*4+$'57.1/'50$/*7'4'-54$!:-1&$/'2*"4'97!&'-5$4&"!&*0#+$!7P1'4'&'-5$!5/$/'2*4&(*5&$!7&'2'&#+$5*3$)"-/17&$ development efforts, and research and development spending. Background Research in managerial cognition examines how mental models determine what stimuli are noticed and how they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and that in doing so, they would develop knowledge structures - mental models or, in their words, dominant logics - &6!&$7-5&!'5$*=*71&'2*4S$:*.'*84$!5/$15/*"4&!5/'504$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5K Building on the work of Prahalad and Bettis, a few studies have explored how management beliefs shape 15/*"4&!5/'504$-8$&6*$7-()*&'&'2*$*52'"-5(*5&$!5/$6-3$&6*'"$9"(4$!"*$)-4'&'-5*/$"*.!&'2*$&-$&6*'"$7-()*&'&-"4$>V!"0$ *&$!.+$WEE B̂$R!4-5$D$C!""'4+$WEEMB$_*'..$D$F-4*+$WEEZJK$̀ ()'"'7!.$"*4*!"76$:#$%&'()*"&$!5/$?16!'(*$>@AAaJ$8-714*/$ -5$-5*$!4)*7&$-8$/-('5!5&$.-0'7$b$6-3$&-)$(!5!0*"4$-8$/'2*"4'9*/$9"(4$15/*"4&!5/$&6*'"$9"(4S$:14'5*44*4$&-$:*$ "*.!&*/K$X6*#$8-15/$&6!&$&6*$(!5!0*"4$-8$/'2*"4'9*/$9"(4$6-./$!&$.*!4&$&6"**$/'4&'57&$2'*34$-8$"*.!&*/5*44+$:!4*/$-5$ )"-/17&$!5/$)"-7*44$4'('.!"'&'*4+$!$"*.'!57*$-5$7-((-5$(!";*&'50$!&&"':1&*4+$!5/$&6*$!)).'7!&'-5$-8$4&"'7&$95!57'!.$ 7-5&"-.4K$R-"*$"*7*5&$4&1/'*4$:#$Y'47'&*..-$>WEETJ$!5/$Y*6"44-5$>WEEZJ$6!2*$8-15/$&6!&$!$7-6*"*57*$-"$"*.!&*/5*44$ around a company’s technological competencies is associated with enhanced performance. R!5#$ -&6*"$ 4&1/'*4$ 6!2*$ *=!('5*/$ 6-3$(!5!0*"4S$ :*.'*84$ '5<1*57*$ /*7'4'-5$(!;'50$ '5$ /'2*"4'9*/$ 7-5&*=&4$ >c-"$D$ *:.*:'7'+$WEEMB$ *!2#+$WEE@B$Y*6"44-5+$WEEZB$X!5"'2*"/'$D$H*5;!&"!(!5+$WEEMJK$`!".#$3-";$:#$?16!'(*$ !5/$%763*5;$>@AIMJ$7-57.1/*/$&6!&$(!5!0*"4S$7-05'&'2*$:'!4*4$7!5$*=).!'5$&6*$8!'.1"*$-8$(!5#$!7P1'4'&'-54K$R-"*$ "*7*5&$"*4*!"76$:#$ *2#$>WEEMJ$7-57.1/*/$&6!&$7-()!5'*4$!"*$(-"*$.';*.#$&-$*50!0*$'5$0.-:!.$/'2*"4'97!&'-5$'8$&6*'"$ *=*71&'2*4S$('5/4*&4$3*"*$8-714*/$)"'(!"'.#$-5$&6*$*=&*"5!.$*52'"-5(*5&K$c!d!5G'!5$!5/$?"!d'5$>@AIaJ$/*47"':*/$ &6*$"*.!&'-546')4$!(-50$(!5!0*"'!.$7-05'&'-5+$/*7'4'-5$(!;'50+$!5/$4177*4481.$/'2*"4'97!&'-5K$H!56!2*":*;*$!5/$ 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 63 Advances in Business Research Y**&*"4$>WEEMJ$8-714*/$-5$&6*$5**/$&-$-2*"7-(*$7-05'&'2*$'5*"&'!$36*5$7-()!5'*4$8!7*$/'47-5&'51-14$76!50*K These studies suggest that some progress has been made in understanding the linkage between managerial 7-05'&'-5$!5/$/*7'4'-5$(!;'50$'5$/'2*"4'9*/$9"(4+$:1&$&6*#$!.4-$)-'5&$&-$4-(*$4'05'97!5&$46-"&7-('504K$Q'"4&+$"*.!&'2*$ &-$-&6*"$4&"*!(4$-8$1))*"$*76*.-5$!5/$/'2*"4'97!&'-5$"*4*!"76+$&6*$.'&*"!&1"*$*=!('5'50$&6*$'5<1*57*$-8$(!5!0*"4$-5$ /*7'4'-5$(!;'50$'5$/'2*"4'9*/$9"(4$'4$5-&$!4$3*..$/*2*.-)*/+$!5/$4&1/'*4$6!2*$*=!('5*/$&6*$'5<1*57*$-8$*=*71&'2*4$ on only a very limited set of strategic choice variables. Finally, much of the research has been conceptual, and too few studies have tested research propositions with empirical data. A decade ago, Hoskisson and Hitt noted that in 4)'&*$-8$[7-()*..'50$&6*-"*&'7!.$!"01(*5&4\$5-$*()'"'7!.$4&1/'*4$6!/$*=!('5*/$&6*$'5<1*57*$-8$*=*71&'2*4S$:*.'*84$ -5$/'2*"4'97!&'-5$!5/$7-")-"!&*$4&"!&*0#$/*7'4'-5$(!;'50$>@AAE]$TIWJK$e2*"$&6*$.!4&$/*7!/*$!5/$!$6!.8+$"*4*!"76*"4$ have made some good progress toward addressing this shortcoming, but many important and interesting research P1*4&'-54$"*(!'5$&-$:*$*=).-"*/K 45*&6'%70*&!8&9:*+7%$/*,;&<*=$*8,&'>!7%&%5*&-'#'"*3*#%&!8&)$/*0,$1+'%$!#&'#(&?!@&45!,*&<*=$*8,&A#B7*#+*& C%0'%*"$+&)*+$,$!#&-'.$#" Research aiming to “get inside the heads” of executives assumes that they carry mental models of phenomena &6!&$ !..-3$ &6*($ &-$(!;*$ 4*54*$ -8$ &6*'"$ 4'&1!&'-54$ !5/$ "*4)-5/$ !))"-)"'!&*.#$ >f-654-5b !'"/+$ @AI ĴK$ L&$ '4$3'/*.#$ !7;5-3.*/0*/$&6!&$(*5&!.$(-/*.4$).!#$;*#$"-.*4$'5$*=*71&'2*4S$/*7'4'-5$(!;'50$)"-7*44*4$>N!.46+$@AAMJK$Q'"4&+$(*5&!.$ models simplify the complexity associated with business environments, and, in the process, they determine which *52'"-5(*5&!.$4&'(1.'$3'..$:*$5-&'7*/$!5/$36'76$3'..$:*$'05-"*/$>O-'4-&$D$,6'./+$@AAAB$%&!":17;$D$R'..';*5+$@AIIJK$ X6*$(!5!0*(*5&$-8$!$/'2*"4'9*/$9"($'4$!$76!..*50'50$!5/$7-().*=$&!4;$>C!..+$@AIaJK$X-$(!5!0*$&6'4$7-().*='&#+$&6*$ *=*71&'2*4$-8$/'2*"4'9*/$7-()!5'*4$(14&$6!2*$!$7-57*)&1!.'d!&'-5$-8$&6*'"$9"(4$b$&6*'"$47-)*+$-:G*7&'2*4+$7-()*&'&'2*$ *52'"-5(*5&+$!5/$(!5!0*(*5&$"*P1'"*(*5&4$b$:1&$'5$&6*$/'2*"4'9*/$9"(+$&6*4*$/*(!5/4$!"*$7-()-15/*/$:-&6$:#$ &6*$51(:*"$!5/$:#$&6*$/'2*"4'&#$-8$'&4$:14'5*44*4$>Y-"&*"+$@AIaJK$X614+$*=*71&'2*4$-8$/'2*"4'9*/$9"(4$(14&$)"-7*44$ vast amounts of information and they face an almost unlimited array of choices. As a result, their mental models play !$;*#$"-.*$'5$7-().*='&#$"*/17&'-5+$(!;'50$7-()"*6*54':.*$&6*$76!..*50'50$&!4;$-8$(!5!0'50$&6*$/'2*"4'9*/$9"(K R*5&!.$(-/*.4$!.4-$'5<1*57*$6-3$4&'(1.'$!"*$'5&*")"*&*/+$!5/$4100*4&$!))"-)"'!&*$"*4)-54*4$-"$/*7'4'-54$:!4*/$ -5$&6*4*$'5&*")"*&!&'-54K$%-+$.*!"5'50$!:-1&$6-3$&6*$(!5!0*"4$-8$.!"0*$/'2*"4'9*/$9"(4$(!;*$4*54*$-8$&6*'"$4'&1!&'-54$ !5/$&!4;4$'4$!$;*#$&-$15/*"4&!5/'50$&6*$4&"!&*0'*4$-8$&6*'"$9"(4$>V--./+$,!():*..+$D$g.*=!5/*"+$@AATB$Y"!6!.!/$D$ O*&&'4+$@AIZJK R*5&!.$(-/*.4$!"*$46!)*/$:#$'5/'2'/1!.$*=)*"'*57*4$!5/$:#$15'P1*$'5&*")"*&!&'-54$-8$&6*4*$*=)*"'*57*4K$X614+$ 3*$7-1./$*=)*7&$&6!&$(*5&!.$(-/*.4$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$7-1./$:*$P1'&*$'/'-4#57"!&'7K$L5$8!7&+$ O!"5*#$>@AAWJ$4100*4&*/$&6!&$*=*71&'2*4$7-1./$0!'5$!/2!5&!0*$:#$(!5!0'50$&6*'"$/'2*"4'9*/$9"(4$'5$5-2*.$3!#4K$$ On the other hand, researchers have cited a variety of institutional factors to suggest that there may be patterns -8$(!5!0*(*5&$:*.'*84$ &6!&$!"*$3'/*.#$6*./$!(-50$*=*71&'2*4$>C188+$@AIWB$%)*5/*"+$@AIAJK$C!(:"'7;$>@AIWJ$!.4-$ suggested that executives share “a common body of knowledge” that is disseminated through the media and other 2*51*4K$g5/+$9*./$"*4*!"76$:#$V--./$!5/$,!():*..$>@AIaJ$)"-2'/*4$41))-"&$8-"$)"-)-4'50$&6*$*='4&*57*$-8$)!&&*"54$ -8$*=*71&'2*$:*.'*84$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$!5/$&6!&$&6*4*$:*.'*84$'5<1*57*$4&"!&*0'7$/*7'4'-54K Q-"$*=!().*+$&6*$.'&*"!&1"*$6'06.'06&4$&6*$:*.'*8$&6!&$/'2*"4'97!&'-5$'4$:*4&$(!5!0*/$:#$4**;'50$&-$/*"'2*$4#5*"0'*4$ 8"-($!$)-"&8-.'-$-8$"*.!&*/$:14'5*44*4K$L5$&6*'"$9*./$4&1/#$-8$@Z$/'2*"4'9*/$O"'&'46$7-()!5'*4+$V--./$!5/$,!():*..$ >@AIa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f-5*4$D$C'..+$@AIIB$X!5"'2*"/'$D$H*5;!&"!(!5+$WEEMJK %*7-5/+$"*4*!"76*"4$6!2*$!.4-$*()6!4'd*/$&6*$2!.1*$-8$(!5!0'50$/'2*"4'97!&'-5$8"-($!$8157&'-5!.$)*"4)*7&'2*+$ *4)*7'!..#$'5$9"(4$&6!&$6!2*$.'&&.*$7-((-5!.'&#$!7"-44$:14'5*44*4$-"$)"-/17&$.'5*4+$36'.*$-&6*"4$6!2*$*()6!4'd*/$ the value of applying a common technology or set of technological capabilities across businesses (Miller et al, WEEaB$Y*6"44-5+$WEEZB$Y'47'&*..-+$WEETJK$%&'..$-&6*"$3"'&*"4$6!2*$*()6!4'd*/$&6*$'()-"&!57*$-8$/*2*.-)'50$!$4*&$-8$ marketing and differentiation skills that can be applied to all businesses, even though these businesses may lack common product characteristics (Kazanjian & Drazin, 1987; Mason & Harris, 2005; Porter, 1985, 1987; Tanriverdi D$H*5;!&"!(!5+$WEEMJK$%176$!$8157&'-5!.$-"$&*765-.-0'7!.$!))"-!76$&-$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$(!#$:*$ embodied in close relationships and coordination between businesses and their marketing channels and end users >N--/"188+$@AAaJ+$-"$&6"-106$&6*$!:'.'&#$&-$!)).#$;5-3.*/0*$!:-1&$714&-(*"4S$5**/4$!5/$:1#'50$:*6!2'-"4$!7"-44$ :14'5*44*4$>Q!"G-15+$@AAIB$_!##!"+$@AA ĴK `=*71&'2*4$36-$/*2*.-)$!$/'2*"4'97!&'-5$4&"!&*0#$!"-15/$!$7-((-5$8157&'-5!.$4;'..$-"$7!)!:'.'&#$ &6!&$7!5$:*$ 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 64 Advances in Business Research !)).'*/$ &-$ !..$ :14'5*44*4$3'..$(-4&$ .';*.#$ *()6!4'd*$ :"!5/$ *P1'&#+$ 5*3$ )"-/17&$ /*2*.-)(*5&+$ 4!.*4$ 0"-3&6+$ !5/$ (!";*&$46!"*$>c!d!5G'!5$D$?"!d'5+$@AIaB$Y-"&*"+$@AIaJK$X6*$0*5*"'7$4&"!&*0#$-8$/'88*"*5&'!&'-5$!5/$(-4&$)-"&8-.'-$ ).!55'50$8"!(*3-";4$!.4-$*()6!4'd*$(!";*&$46!"*$!5/$4!.*4$0"-3&6+$!5/$4)*7'97!..#$!/2-7!&*$!..-7!&'50$7!46$&-$ new products and growth opportunities. Thus, we could expect that a focus on functional skills or technological capabilities will be associated with more product development (Lamont & Anderson, 1985; Vanhaverbeke & Peeters, WEEMJ+$!5/$46-1./$!.4-$:*$"*<*7&*/$'5$6'06*"$FD?$4)*5/'50K Q'5!..#+$N'..'!(4-5$ >@AaMJ+$ X**7*$ >@AIWJ+$C!..$ >@AIaJ+$ !5/$C'..$ >@AATJ$ !..$ !"01*$ &6!&$ &6*$ !)).'7!&'-5$ -8$ 4&"'7&$ 95!57'!.$ 7-5&"-.4$ 4176$ !4$ FeL$ !5/$ -&6*"$ )*"8-"(!57*$ 7"'&*"'!$ (!#$ :*$ &6*$ -5.#$ *88*7&'2*$ 3!#$ 8-"$ *=*71&'2*4$ &-$ (!5!0*$&6*$7-().*='&#$-8$!$3'/*.#$/'2*"4'9*/$)-"&8-.'-$-8$:14'5*44*4K$L5$&6*'"$9*./$"*4*!"76+$V--./$!5/$,!():*..$ !.4-$ '/*5&'9*/$!$51(:*"$-8$9"(4$&6!&$ &6*#$.!:*.*/$!4$[95!57'!.$7-5&"-.\$7-()!5'*4K$X6*#$8-15/$&6!&$ &6*4*$9"(4$ 2'*3$:1/0*&4$!4$!$[7-5&"!7&\$:*&3**5$7-")-"!&*$*=*71&'2*4$!5/$ '5/'2'/1!.$:14'5*44*4+$!5/$[&6!&$!551!.$95!57'!.$ )*"8-"(!57*$'4$&6*$7"'&'7!.$(*!41"*$-8$!76'*2*(*5&\$>@AIa]$@^ ĴK L&S4$ 3'/*.#$ !441(*/$ &6!&$ *=*71&'2*4$ 36-$ 6-./$ !$ 95!57'!.$ 7-5&"-.$ -"'*5&!&'-5$ 3'..$ )1"41*$ (-"*$ 15"*.!&*/$ /'2*"4'97!&'-5$>Q.'04&*'5+$@AIaJK$%'57*$&6*#$.!7;$-)*"!&'50$-"$&*765'7!.$*=)*"&'4*$!:-1&$'5/'2'/1!.$:14'5*44$15'&4+$&6*4*$ *=*71&'2*4$!"*$!.4-$(-"*$.';*.#$&-$*()6!4'd*$0"-3&6$&6"-106$!7P1'4'&'-5$-2*"$'5&*"5!.$/*2*.-)(*5&$-8$:14'5*44*4$ >C!#*4$D$g:*"5!&6#+$@AIEJK$X6*$95!57'!.$7-5&"-.$7-()!5'*4$'5$V--./$!5/$,!():*..S4$>@AIaJ$4!().*$3*"*$!..$!7&'2*$ !7P1'"*"4+$!5/$&6*#$!.4-$8-15/$&6!&$&6*$*=*71&'2*4$:*.'*2*$&6!&$)--"b)*"8-"('50$:14'5*44*4$46-1./$:*$/'2*4&*/K$C!#*4$ !5/$g:*"5!&6#$3*"*$7-57*"5*/$&6!&$*=*71&'2*4$36-$*()6!4'd*/$95!57'!.$7-5&"-.4$3-1./$4)*5/$.*44$-5$FD?$!5/$ product development. Summary and the Research Questions Addressed by This Study g..$-8$&6'4$&6*-"'d'50$'4$!."*!/#$!77*)&*/$!4$7-52*5&'-5!.$3'4/-(+$:1&$!4'/*$8"-($&6*$/*&!'.*/$9*./$'5&*"2'*34$ 7-5/17&*/$:#$V--./$!5/$,!():*..+$3*$6!2*$.'&&.*$'54'06&$'5&-$36*&6*"$&6*$&-)$(!5!0*"4$-8$/'2*"4'9*/$9"(4$41:47"':*$ &-$7-((-5.#$6*./$2'*34$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5K$X614+$3*$)"-)-4*$&6*$8-..-3'50$"*4*!"76$P1*4&'-5] F*4*!"76$h1*4&'-5$i@]$g"*$&6*"*$)!&&*"54$-8$*=*71&'2*$:*.'*84$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5+$!5/$'8$4-+$ 36!&$!"*$&6-4*$:*.'*84U %'('.!".#+$7-05'&'2*$&6*-"#$)-4'&4$&6!&$:*.'*84$'5<1*57*$/*7'4'-54K$X614+$!$7-05'&'2*$)*"4)*7&'2*$-5$&6*$(!5!0*(*5&$ -8$/'2*"4'97!&'-5$4100*4&4$&6!&$*=*71&'2*4$36-$6-./$/'88*"*5&$7-05'&'2*$-"'*5&!&'-54$3'..$(!;*$/'88*"*5&$/*7'4'-54+$ !5/$&6'4$"*!4-5'50$4100*4&4$!$4*7-5/$P1*4&'-5] F*4*!"76$ h1*4&'-5$ iW]$ L8$ &6*$ &-)$ (!5!0*"4$ -8$ /'2*"4'9*/$ 9"(4$ 6-./$ 4)*7'97$ )!&&*"54$ -8$ :*.'*84$ !:-1&$ &6*$ (!5!0*(*5&$-8$/'2*"4'97!&'-5+$/-$&6*4*$:*.'*84$6!2*$!$/'47*"5!:.*$'5<1*57*$-5$&6*$;*#$4&"!&*0'7$/*7'4'-54$(!/*$:#$ /'2*"4'9*/$9"(4+$'57.1/'50$/*7'4'-54$!:-1&$/'2*"4'97!&'-5$4&"!&*0#+$!7P1'4'&'-5$!5/$/'2*4&(*5&+$)"-/17&$/*2*.-)(*5&+$ !5/$FD?U D9C9ED ?&-94?F)FGFHI The Survey Questionnaire and Cognitive Variables ,!"*81..#$/*4'05*/$41"2*#4$7!5$:*$!5$*88*7&'2*$3!#$&-$!44*44$*=*71&'2*4S$:*.'*84$>j!G!7$D$%6-"&*..+$@AIAJK$X6*#$ are especially effective when researchers hope to obtain large numbers of observations in order to perform rigorous 4&!&'4&'7!.$!5!.#4*4K$X6'4$4&1/#$*().-#4$!$15'P1*$4*&$-8$)"'(!"#$/!&!$&6!&$3!4$/*2*.-)*/$'5$!$(1.&'4&!0*$)"-7*44$&6!&$ '52-.2*/$9*./$'5&*"2'*34$3'&6$*=*71&'2*4$-8$4*2*"!.$.!"0*$/'2*"4'9*/$9"(4$!4$3*..$!4$41"2*#4$-8$!$.!"0*"$4*&$-8$4176$ 9"(4K$X6-106$/*2*.-)*/$'5$@AA@+$!5/$!."*!/#$14*/$'5$)"*2'-14$4&1/'*4+$'&$'4$'/*!..#$!))"-)"'!&*$8-"$!//"*44'50$&6'4$ 4&1/#S4$"*4*!"76$P1*4&'-54K$_-"$/-$3*$:*.'*2*$&6!&$'&4$"*.*2!57*$-"$14*81.5*44$6!4$:**5$/'('5'46*/$:#$&'(*K$g..$-&6*"$ measures used in this study have been gathered for time periods appropriately matched to this primary dataset. X6*$ 9"4&$ 4&*)$ '5$ /*2*.-)'50$ &6*$ P1*4&'-55!'"*$ 3!4$ &-$ 7-5/17&$ !$ &6-"-106$ 4*!"76$ -8$ &6*$ .'&*"!&1"*$ !'(*/$ !&$ '/*5&'8#'50$ !..$ -8$ &6*$ )"-7*44*4$ 8-"$ (!5!0'50$ /'2*"4'9*/$ 9"(4$ &6!&$ 6!2*$ :**5$ /*47"':*/$ '5$ )!4&$ "*4*!"76K$ X6'4$ .'&*"!&1"*$4*!"76$'/*5&'9*/$8-1"$:"-!/$7!&*0-"'*4$-8$(!5!0*(*5&$)"-7*44*4+$'57.1/'50$@J$&6*$46!"'50$-8$8157&'-5!.$ skills or technological capabilities across businesses (Goold & Luchs, 1993; Kazanjian & Drazin, 1987; Porter, 1985, @AIaB$F1(*.&+$@AaT+$@AIWB$Y*6"44-5+$WEEZB$Y'47'&*..-+$WEETJ+$WJ$*57-1"!0'50$:14'5*44*4$&-$)1"41*$&6*$4!(*$0*5*"'7$ 4&"!&*0#$>Y-"&*"+$@AIaJ+$ Ĵ$!$3'/*$"!50*$-8$(!5!0*(*5&$!5/$95!57'!.$7-5&"-.$4#4&*(4$>?15/!4$D$F'76!"/4-5+$@AIWB$ V--./$D$,!():*..+$@AIaB$X**7*+$@AIWB$N'..'!(4-5+$@AaMJ+$!5/$TJ$!7P1'4'&'-5$!5/$'5&*"5!.$/*2*.-)(*5&$!4$)-44':.*$ 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 65 Advances in Business Research (-/*4$-8$/'2*"4'97!&'-5$> !(-5&$D$g5/*"4-5+$@AIMB$%-50+$@AIWJK$X6'4$7-()'.!&'-5$-8$(!5!0*(*5&$)"-7*44*4$3!4$ 8-..-3*/$:#$'5&*"2'*34$3'&6$*=*71&'2*4$8"-($4'=$Q-"&15*$MEE$9"(4+$36'76$)"-2'/*/$7-""-:-"!&'50$41))-"&$8-"$&6*$ 8-1"$4*&4$-8$)"-7*44*4$'/*5&'9*/$'5$-1"$.'&*"!&1"*$"*2'*3+$36'.*$!.4-$4100*4&'50$!$8*3$!//'&'-5!.$)"-7*44*4K Ultimately, the literature review and the interviews produced a list of 24 survey items to assess executive beliefs !:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5K$,`e$"*7')'*5&4$-8$&6*$41"2*#$3*"*$!4;*/$&-$)"-2'/*$&6*'"$!44*44(*5&4$-8$ *!76$-8$&6*$WT$'&*(4$-5$!$92*b)-'5&$47!.*$>8"-($[@\$8-"$&6'4$3-1./$!.(-4&$!.3!#4$:*$!5$'5!))"-)"'!&*$)-.'7#$&-$[M\$ 8-"$&6'4$3-1./$!.(-4&$!.3!#4$:*$!5$!))"-)"'!&*$)-.'7#JK$X6"**$&-)$).!55'50$-897*"4$!5/$!$,`e$k$!..$8"-($/'2*"4'9*/$ Q-"&15*$MEE$9"(4$k$)"*&*4&*/$&6*$41"2*#$!5/$-88*"*/$(!5#$4100*4&'-54$8-"$'()"-2*(*5&K )*J*#(*#%&'#(& !#%0!=&K'0$'>=*, X6*$76-'7*$-8$&6*$/*)*5/*5&$4&"!&*0'7$/*7'4'-5$2!"'!:.*4$3!4$P1'&*$/*.':*"!&*K$g"&'7.*4$:#$C!(:"'7;$!5/$R!4-5$ >@AITJ$!5/$Y"!6!.!/$!5/$O*&&'4$>@AIZJ$"*8*"$&-$/'2*"4'97!&'-5$4&"!&*0#+$!7P1'4'&'-5$!5/$/'2*4&(*5&$!7&'2'&#+$)"-/17&$ development, and R&D efforts as the key decisions that managers must make. All of these decisions are included in &6'4$4&1/#$!4$/*)*5/*5&$2!"'!:.*4+$!5/$&6*#$!"*$(*!41"*/$-2*"$!$92*b#*!"$)*"'-/$8"-($@AAW$&6"-106$@AAZ$'5$-"/*"$ 7!)&1"*$&6*$'5<1*57*$-8$(!5!0*"'!.$&6'5;'50$!&$!$)-'5&$'5$&'(*$-5$41:4*P1*5&$4&"!&*0'7$!7&'2'&#K ?'2*"4'97!&'-5$3!4$!44*44*/$14'50$&6*$*5&"-)#$(*!41"*$-8$/'2*"4'97!&'-5$>Y!.*)1+$@AIMJ+$!5/$'4$7!.71.!&*/$14'50$ !4]$$?'2*"4'97!&'-5$l$ [P j .5>@mY j Jn+$36*"*$Y j $'4$&6*$46!"*$-8$4!.*4$'5$*!76$4*0(*5&$G$!5/$.5>@mY j J$'4$&6*$"*.!&'2*$3*'06&$ -8$*!76$4*0(*5&$G+$4-$&6!&$6'06*"$2!.1*4$'5/'7!&*$0"*!&*"$/'2*"4'97!&'-5K$N*$-:&!'5$&6*$5*7*44!"#$/!&!$8"-($R*"0*5&$ e5.'5*$!5/$7!.71.!&*/$!$92*b#*!"$!2*"!0*$/'2*"4'97!&'-5$47-"*$8-"$&6*$#*!"4$@AAW$&6"-106$@AAZK X-$ (*!41"*$ !7P1'4'&'-5+$ /'2*4&(*5&+$ !5/$ 5*3$ )"-/17&$ /*2*.-)(*5&$ !7&'2'&#+$ 3*$ -:&!'5*/$ &6*$ 51(:*"$ -8$ !7P1'4'&'-54+$/'2*4&(*5&4+$!5/$5*3$)"-/17&$'5&"-/17&'-54$(!/*$-2*"$&6*$92*b#*!"$)*"'-/$@AAW$&6"-106$@AAZ$8"-($ Moody’s Industrial Manuals and The Wall Street Journal Index. Any shorter time frame seemed to be too narrow !$3'5/-3$&-$!44*44$36*&6*"$!$)!"&'71.!"$9"($3!4$!7&'2*.#$!7P1'"'50$-"$/'2*4&'50$:14'5*44*4+$!5/$!$92*b#*!"$)*"'-/$ !.4-$4**(*/$41897'*5&$&-$7!)&1"*$&"*5/4$'5$5*3$)"-/17&$/*2*.-)(*5&$*88-"&4K$FD?$4)*5/'50+$7-/*/$!4$!$)*"7*5&!0*$-8$ 9"($4!.*4+$3!4$7!.71.!&*/$!4$&6*$92*b#*!"$!2*"!0*$8-"$@AAW$&6"-106$@AAZK$$?!&!$8-"$&6*4*$7!.71.!&'-54$3*"*$-:&!'5*/$ from Mergent Online. X6"**$7-5&"-.$2!"'!:.*4$3*"*$!.4-$'57.1/*/K$,`e$&*51"*$3!4$'57.1/*/$:*7!14*$,`e$:*.'*84$(!#$:*$"*'58-"7*/$ !5/$&6*'"$/*7'4'-54$(-"*$4&"-50.#$(!5'8*4&*/$'5$&6*'"$9"(4$-2*"$&'(*K$$Feg$3!4$!.4-$'57.1/*/$:*7!14*$9"($4177*44$ (!#$!.4-$"*'58-"7*$(!5!0*"'!.$&6'5;'50K$g5/+$9"($4'd*$'4$'57.1/*/$:*7!14*$'&$6!4$:**5$)"*2'-14.#$46-35$&-$:*$!5$ '5<1*57*$-5$(!5#$-8$&6*$/*)*5/*5&$2!"'!:.*4K$$?!&!$8-"$&6*4*$2!"'!:.*4$3*"*$!.4-$0!&6*"*/$8"-($R*"0*5&$e5.'5*$8-"$ 1991. Sample O*7!14*$/'2*"4'97!&'-5$ '4$!$7"'&'7!.$ '441*$8-"$ .!"0*$9"(4$!5/$,`e%$!"*$1.&'(!&*.#$"*4)-54':.*$8-"$ &6*'"$9"(4S$ /'2*"4'97!&'-5$/*7'4'-54+$3*$(!'.*/$-1"$41"2*#$&-$&6*$,`e4$-8$&6*$.!"0*4&$@+EEE$oK%K$7-()!5'*4K$X6*$14*$-8$,`e4$ !4$'58-"(!5&4$'4$7-54'4&*5&$3'&6$&6*$"*4*!"76$P1*4&'-54$)-4*/$'5$&6'4$4&1/#+$!5/$(!5#$-&6*"$4&1/'*4$*=!('5'50$&6*$ '5<1*57*$-8$&-)$*=*71&'2*4$6!2*$!.4-$"*.'*/$-5$,`e4$!4$'58-"(!5&4$>*K0K+$j!G!7$D$%6-"&*..+$@AIAJK$Q"-($&6'4$'5'&'!.$ and two follow-up mailings, 174 completed and usable responses were received, for a response rate of just under 20 percent. This compares favorably with most mail surveys reported in the strategy literature that have been addressed &-$&6*$*=*71&'2*4$-8$.!"0*$9"(4$>C!(:"'7;$*&$!.+$@AA ĴK$%&!&'4&'7!.$!5!.#4*4$7-()!"'50$&-&!.$!44*&4+$4!.*4$"*2*51*4+$!5/$ "*&1"5$-5$!44*&4$-8$&6*$"*4)-5/'50$!5/$5-5b"*4)-5/'50$,`e4S$9"(4$"*2*!.*/$5-$4'05'97!5&$/'88*"*57*4K )'%'&E#'=L,$, F*4)-5/*5&4S$"!&'504$-8$&6*$WT$(!5!0*(*5&$:*.'*8$2!"'!:.*4$3*"*$8!7&-"$!5!.#d*/$&-$'/*5&'8#$!$(-"*$95'&*$4*&$-8$ 15/*".#'50$/'(*54'-54+$-"+$'5$&6'4$7!4*+$)!&&*"54$-8$:*.'*84$!:-1&$&6*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$>C!'"$*&$!.+$WEEMJK$ Q!7&-"$!5!.#4'4$'4$&6*$'/*!.$(*&6-/$8-"$!5!.#d'50$&6*$41"2*#$/!&!K$L&$"*/17*4$-1"$WT$2!"'!:.*4$'5&-$!$(-"*$95'&*$4*&$-8$ 8!7&-"4$&6!&$46-3$7*5&"!.$&*5/*57'*4$'5$*=*71&'2*4S$:*.'*84$!:-1&$6-3$&-$(!5!0*$/'2*"4'97!&'-5K$?1*$&-$&6*$*=).-"!&-"#$ nature of the study, principal components analysis was employed to factor analyze the data and identify patterns of beliefs. The resulting factors were rotated using the varimax transformation, since orthogonal transformations tend &-$:*$*!4'*"$&-$'5&*")"*&$!5/$!"*$"*7-((*5/*/$36*5$8!7&-"$47-"*4$!"*$&-$:*$14*/$'5$41:4*P1*5&$4&!&'4&'7!.$!5!.#4*4$ >C!'"$*&$!.K$WEEMJK$X6*$8!7&-"$47-"*4$!"*$4&!5/!"/'d*/$>'K*K+$&6*'"$(*!54$l$E$!5/$&6*'"$4&!5/!"/$/*2'!&'-54$l$@J$4&!&'4&'7!.$ composites representing each of the factors that were used in regression analyses to assess relationships between *=*71&'2*4S$-"'*5&!&'-54$!5/$&6*'"$9"(4S$4&"!&*0'*4K 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 66 Advances in Business Research D9CMG4C 9:*+7%$/*,;&<*=$*8,&'#(&M#(*0,%'#($#",&'>!7%&%5*&-'#'"*3*#%&!8&)$/*0,$1+'%$!# X6*$ 9"4&$ "*4*!"76$ P1*4&'-5$ !4;*/$36*&6*"$ &-)$ *=*71&'2*4$ 6!2*$ /'47*"5!:.*$ :*.'*84$ !:-1&$ &6*$(!5!0*(*5&$ -8$ /'2*"4'97!&'-5K$g5!.#4'4$ -8$ &6*$ 41"2*#$ /!&!$ 46-3*/$ &6!&$ &6*#$ /-K$ `=!('5'50$ &6*$ "*41.&4$ -8$ 4*2*"!.$ '5'&'!.$ 8!7&-"$ analyses suggested that a three-factor solution offered the most explanatory power and produced the fewest number -8$7"-44b.-!/'504K$X6*$-"'0'5!.$&6"**b8!7&-"$4-.1&'-5$'57.1/*/$&6"**$2!"'!:.*4$&6!&$/'/$5-&$.-!/$4'05'97!5&.#$-5$!5#$-8$ &6*$8!7&-"4K$Q-..-3'50$&6*$"*7-((*5/!&'-5$-8$C!'"$*&$!.$>WEEMJ+$&6*$&6"**b8!7&-"$4-.1&'-5$3!4$"*"15$-('&&'50$&6*4*$ &6"**$2!"'!:.*4K$X6*$"*41.&'50$4-.1&'-5$>46-35$'5$X!:.*$@J$)"-/17*/$!$2*"#$4&"!'06&8-"3!"/$!5/$'5&*")"*&!:.*$8!7&-"$ (!&"'=$3'&6$5-$7"-44b8!7&-"$.-!/'504$!5/$!..$:1&$-5*$-8$&6*$"*(!'5'50$W@$2!"'!:.*4$.-!/'50$4'05'97!5&.#$-5$-5*$-8$&6*$ &6"**$8!7&-"4K$Q!7&-"$.-!/'504$3'&6$!:4-.1&*$2!.1*4$0"*!&*"$&6!5$K^E$7!5$:*$7-54'/*"*/$4'05'97!5&$!5/$!"*$46-35$'5$ :-./$)"'5&$>C!'"$*&$!.+$WEEMJK 4'>=*&NO&9:*+7%$/*&F0$*#%'%$!#,&!0&<*=$*8,&'>!7%&%5*&-'#'"*3*#%&!8&)$/*0,$1+'%$!# -!/'50$ 4'05'97!5&.#$ -5$ &6*$ 9"4&$ 8!7&-"$ 3*"*$ :*.'*84$ &6!&$ :14'5*44*4$ 46-1./$ 14*$ &6*$ 4!(*$ (!518!7&1"'50$ processes, distribution channels, and marketing methods; that businesses should sell to the same customer groups; that manufacturing and marketing should be coordinated at the corporate level; and that businesses should be in the same industry. These beliefs are consistent with the view that executives should try to capture synergies by 7--"/'5!&'50$!7&'2'&'*4$!7"-44$&6*'"$9"(4S$:14'5*44*4$>f-5*4$D$C'..+$@AIIB$Y-"&*"+$@AIMB$F1(*.&+$@AaT+$@AIWJK$$g5/+$ &6'4$8!7&-"$'4$!.4-$4'('.!"$&-$&6*$4&"!&*0'7$).!55'50$(!5!0*(*5&$4&#.*$'/*5&'9*/$:#$V--./$!5/$,!():*..$>@AIaJK$$X6'4$ factor is labeled core business orientation. Loading on the second factor are principles that products and services should have strong brand name recognition and that businesses should be market share leaders; that businesses should emphasize R&D, product line extensions, the development of new products, and the reallocation of cash to support product development; that businesses should :*$'5$/'88*"*5&$.'8*$7#7.*$4&!0*4B$!5/$&6!&$!7P1'4'&'-54$46-1./$"*/'"*7&$&6*$9"($'5&-$5*3$!"*!4$-8$-))-"&15'&#K$X6*4*$ :*.'*84$!"*$7-54'4&*5&$3'&6$&6*$2'*3$&6!&$&6*$*88*7&'2*$(!5!0*(*5&$-8$/'2*"4'97!&'-5$"*41.&4$8"-($!)).#'50$!$7-((-5$ set of marketing and product development skills to all businesses (Farjoun, 1998; Kazanjian & Drazin, 1987; Porter, @AIM+$@AIaB$Y"!6!.!/$D$O*&&'4+$@AIZJK$e&6*"$41))-"&$8-"$&6*$*='4&*57*$-8$!$(!";*&'50$-"'*5&!&'-5$7-(*4$8"-($!$4&1/#$ :#$%&'()*"&$!5/$?16!'(*$>@AAaJ+$36'76$8-15/$&6!&$(!5#$*=*71&'2*4$7-54'/*"*/$&6*'"$9"(4$&-$:*$)1"41'50$"*.!&*/$ /'2*"4'97!&'-5$4&"!&*0'*4$:*7!14*$&6*#$3*"*$!)).#'50$!$7-((-5$4*&$-8$(!";*&'50$!5/$/'88*"*5&'!&'-5$4;'..4$>'K*K+$5*3$ )"-/17&+$!/2*"&'4'50+$!5/$:"!5/$*P1'&#$/*2*.-)(*5&J$!7"-44$ &6*'"$9"(4S$:14'5*44*4+$*2*5$&6-106$&6*4*$:14'5*44*4$ may not share product or process similarities. This factor is labeled marketing orientation. VARIABLE FACTOR 1 FACTOR 2 FACTOR 3 Businesses should use the same marketing methods .8222 -.0569 .0399 Businesses should use the same distribution channels .7953 .1136 .0850 Marketing should be coordinated at the corporate level .7126 .1435 -.0982 Businesses should sell to the same customer groups .7098 -.0098 -.0751 Businesses should use the same manufacturing processes .6902 -.1441 .0258 Manufacturing should be coordinated at the corporate level .6415 .1794 -.1006 All businesses should be in the same industry .4676 .2743 -.0003 Products and services should have strong brand name recognition .1767 .6335 -.0265 Businesses should develop totally new products .0425 .6132 .1133 Businesses should be market share leaders -.0017 .6053 .0321 Businesses should emphasize research and development .1986 .5774 -.0824 Businesses should be in different stages of the life cycle .0914 .5134 .0871 Businesses should develop extensions of existing products -.0744 .4982 -.0716 Cash should be reallocated to support new product development -.0004 .4894 .0054 Acquisitions should offer opportunities to redirect the firm .0394 .3372 .2219 Businesses should always meet financial goals .0413 .1551 .7629 Businesses should be evaluated primarily by financial criteria -.0167 .0722 .6197 Acquisitions should be some minimum size -.0173 .0800 .2939 Acquisitions should be in the same industry .2634 .1582 -.3115 Acquisitions should strengthen the firm’s existing businesses .1074 .1674 .3187 Businesses can miss financial goals if other objectives are met -.0858 -.0071 -.7346 EIGENVALUES 3.60 2.60 1.91 FACTOR NAME Core Business Orientation Marketing Orientation Financial Control Orientation 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 67 Advances in Business Research Q'5!..#+$:*.'*84$&6!&$!..$:14'5*44*4$46-1./$7-54'4&*5&.#$(**&$95!57'!.$0-!.4$!5/$&6!&$:14'5*44*4$46-1./$:*$*2!.1!&*/$ )"'(!"'.#$:#$95!57'!.$7"'&*"'!B$&6!&$!7P1'4'&'-54$46-1./$5-&$5*7*44!"'.#$:*$'5$&6*$4!(*$'5/14&"#$5-"$4&"*50&6*5$9"(4S$ *='4&'50$:14'5*44*4B$!5/$&6!&$95!57'!.$&!"0*&4$46-1./$5-&$:*$('44*/$*2*5$'8$-&6*"$4&"!&*0'7$0-!.4$!"*$:*'50$(*&$.-!/$ -5$&6*$&6'"/$8!7&-"K$X6*4*$:*.'*84$!"*$7-54'4&*5&$3'&6$&6*$2'*3$&6!&$/'2*"4'97!&'-5$'4$:*4&$(!5!0*/$:#$*()6!4'd'50$ 95!57'!.$ 7-5&"-.4$ !5/$ 95!57'!.$ )*"8-"(!57*$ -:G*7&'2*4$ >f-5*4$ D$ C'..+$ @AIIB$N'..'!(4-5+$ @AaMJK$ %'('.!"$ &-$ &6*$ 95!57'!.$7-5&"-.$(!5!0*(*5&$4&#.*$'/*5&'9*/$:#$V--./$!5/$,!():*..$>@AIaJ+$&6'4$8!7&-"$'4$.!:*.*/$95!57'!.$7-5&"-.$ orientation. D*='%$!#,5$J,&>*%@**#&9:*+7%$/*,;&<*=$*8,&'#(&C%0'%*"$+&)*+$,$!#&-'.$#" Due to space limitations, means, standard deviations, and correlations among the variables are not shown here, :1&$7!5$:*$-:&!'5*/$8"-($&6*$!1&6-"4$1)-5$"*P1*4&K$X6*$4*7-5/$"*4*!"76$P1*4&'-5$!4;*/$&-$36!&$*=&*5&$*=*71&'2*4S$ :*.'*84$ !:-1&$ &6*$(!5!0*(*5&$ -8$ /'2*"4'97!&'-5$3-1./$ :*$ !44-7'!&*/$3'&6$ &6*'"$ 4&"!&*0'7$ 76-'7*4+$ !5/$ "*0"*44'-5$ analysis was used to evaluate the existence of relationships between the independent management belief variables !5/$&6*$4&"!&*0'7$/*7'4'-5$2!"'!:.*4K$g..$"*0"*44'-5$(-/*.4$*=!('5*/$&6*$'5<1*57*$-8$&6*$'5/*)*5/*5&$2!"'!:.*4$'5$ !$6'*"!"76'7!.$ 4*P1*57*K$X6*$7-5&"-.$2!"'!:.*4$3*"*$*5&*"*/$9"4&$ !5/$ &6*$(!5!0*(*5&$-"'*5&!&'-5$2!"'!:.*4$3*"*$ then included. For all of the dependent variables except the number of new products, the control variables produced !$4'05'97!5&$(-/*.K$X6*$!//'&'-5$-8$&6*$7-05'&'2*$2!"'!:.*4$4'05'97!5&.#$'()"-2*/$!..$-8$&6*$(-/*.4$*=7*)&$8-"$&6*$ 51(:*"$-8$!7P1'4'&'-54+$!5/$4-$-5.#$&6*$"*41.&4$8-"$&6*$7-().*&*$"*0"*44'-5$(-/*.4$!"*$46-35$6*"*K$$X6*$"*41.&4$46-3$ that the cognitive variables are associated with many key strategic choices. 4'>=*&PO&D*='%$!#,5$J,&'3!#"&9:*+7%$/*&<*=$*8,&'>!7%&%5*&-'#'"*3*#%&!8&)$/*0,$1+'%$!#&'#(&45*$0&2$03,;& C%0'%*"$+&)*+$,$!#,&QC%'#('0($R*(&>*%'&*,%$3'%*,&'0*&0*J!0%*(S&%T,%'%$,%$+,&'0*&,5!@#&$#&J'0*#%5*,*,U As summarized in Table 2, regression analyses found that the cognitive factors are associated with four of the 92*$4&"!&*0'7$/*7'4'-5$2!"'!:.*4+$'57.1/'50$/'2*"4'97!&'-5$4&"!&*0#+$&6*$51(:*"$-8$/'2*4&(*5&4+$&6*$51(:*"$-8$5*3$ product introductions, and the level of R&D spending. The core business orientation is negatively associated with the *=&*5&$-8$/'2*"4'97!&'-5+$'5/'7!&'50$&6!&$*=*71&'2*4$36-$6-./$!$7-"*$:14'5*44$-"'*5&!&'-5$&*5/$&-$)1"41*$(-"*$8-714*/$ /'2*"4'97!&'-5$4&"!&*0'*4K$X6*$7-"*$:14'5*44$-"'*5&!&'-5$'4$!.4-$5*0!&'2*.#$!44-7'!&*/$3'&6$&6*$51(:*"$-8$/'2*4&(*5&4$ and the number of new product introductions. The marketing orientation factor is positively associated with the number of new product introductions and the level of R&D spending. (Log of sales, was not included in the model *=!('5'50$&6*$2!"'!&'-5$'5$FD?$4)*5/'50$:*7!14*$&6'4$2!"'!:.*$'4$!."*!/#$!/G14&*/$8-"$9"($4'd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g:*"5!&6#$>@AIEJ$!5/$&6*$2'*3$&6!&$!$95!57'!.$-"'*5&!&'-5$3-1./$"*41.&$'5$!5$ *()6!4'4$-5$!7P1'4'&'-5$!&$&6*$*=)*54*$-8$5*3$)"-/17&$/*2*.-)(*5&$!5/$FD?$4)*5/'50K )AC MCCAF6 Contributions $ X6'4$4&1/#$-88*"4$'()-"&!5&$!5/$)"-2-7!&'2*$95/'504$&6!&$7-5&"':1&*$&-$-1"$15/*"4&!5/'50$-8$&6*$;*#$"-.*$ -8$&-)$*=*71&'2*4$'5$.!"0*$/'2*"4'9*/$9"(4]$Q'"4&+$!5!.#4'4$-8$&6*$41"2*#$/!&!$"*2*!.*/$&6"**$:"-!/$)!&&*"54$-8$:*.'*84$ Dependent Variables: Independent Variables: Extent of Diversification Number of Acquisitions Number of Divestments Number of New Products R&D Spending Tenure .078 (.99) -.096 (-1.15) -.015 (-.19) -.103 (-1.22) -.117 (-1.24) Return on Assets -.211** (-2.74) .062 (.76) -.159* (-2.01) .169* (2.04) .305** (3.06) Log(Sales) .347*** (4.41) .281** (3.30) .344*** (4.21) .033 (.38) Core Business Orientation -.302*** (-3.97) -.115 (-1.44) -.189* (-2.44) -.177* (-2.18) .028 (.29) Marketing Orientation -.052 (-.70) -.050 (-.63) .074 (.98) .167* (2.09) .245* (2.59) Financial Control Orientation -.179* (-2.37) -.090 (-1.13) -.079 (-1.03) -.060 (-.75) .004 (.04) F 6.94*** 2.49* 4.12*** 2.25* 3.76** Adjusted R2 .26 .07 .14 .06 .16 * p < .05 ** p < .01 *** p < .001 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 68 Advances in Business Research !"#$% $&'%( ) *'(')$% "+% ,-.'/0-12 $-")% 3% 2"/'% !#0-)'004%( /5'$-)*4% ),%1) )2- 6% 2")$/"6% "/-')$ $-")0% 3% $& $% /'% 2"((")67%&'6,%!7%$&'%'8'2#$-.'0%"+%6 /*'%,-.'/0-1',%1/(09 :'2"),4%0#!0';#')$%, $ % ) 670-0%+"#),%$& $%$&'0'%( ) *'(')$%"/-')$ $-")0%<'/'% 00"2- $',%<-$&%5'7%0$/ $'*-2% 2&"-2'09%:='2-12 6674%$&'%2"/'%!#0-)'00%"/-')$ $-")%-0%)'* $-.'67% 00"2- $',%<-$&%$&'%'8$')$%"+%1/(0>%,-.'/0-12 $-")% strategies, the number of divestments, and the number of new products introduced. The marketing orientation is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could be viewed as deleterious such as less product development and lower R&D spending. It is also worth pondering <&'$&'/%$&'%2"/'%!#0-)'00%"/-')$ $-")%=6 2'0%0"%(#2&%'(=& 0-0%")%'8=6"-$-)*%6-)5 *'0% ),%1),-)*%07)'/*-'0% 2/"00% !#0-)'00'0%$& $%=/",#2$%,'.'6"=(')$%'++"/$0% 2$# 667%0#++'/% 0% %2")0';#')2'9 Implications % M ) *-)*%$&'%,-.'/0-1',%1/(%-0% )%'82'',-)*67%2"(=6-2 $',%$ 059%B&'%'8'2#$-.'0%"+% %,-.'/0-1',%2"(= )7% (#0$% ,'.'6"=% % 2")2'=$# 6-N $-")% "+% $&'-/% 1/(% ),%(#0$% 2/' $'% ),% +"0$'/%<& $%C"/$'/% EFGHOJ% 2 660% % P2"/="/ $'% $&'('Q%$& $%,'02/-!'0%$&'%1/(% ),%&"<%-$0%!#0-)'00'0% /'%/'6 $',9%R8'2#$-.'0%"+%,-.'/0-1',%1/(0%(#0$% 60"%,'.'6"=% %0'$%"+%!'6-'+0% !"#$%&"<%,-.'/0-12 $-")%0&"#6,%!'%( ) *',%EC/ & 6 ,%@%D'$$-04%FGHIJ9%B&'% -(%"+%$&-0%0$#,7%< 0%$"% 6' /)%("/'% !"#$%$&'0'%( ) *'(')$%!'6-'+0% ),%&"<%$&'7%-)K#')2'%0$/ $'*-2%,'2-0-")%( 5-)*9 B&'%1),-)*0%0#**'0$%$& $%$&'/'% /'%$&/''%= $$'/)0%"+%!'6-'+0% !"#$%$&'%( ) *'(')$%"+%,-.'/0-12 $-")%$& $% /'%&'6,% !7%'8'2#$-.'04% ),%$& $%$&'0'%!'6-'+0% /'% 00"2- $',%<-$&%1/(0>%0$/ $'*-2%2&"-2'09%B%$&'%0$#,7%=/".-,'0%'(=-/-2 6% 0#=="/$%+"/% %2"*)-$-.'%='/0='2$-.'%")%$&'%( ) *'(')$%"+%,-.'/0-12 $-")% ),%0#**'0$0%$& $%1/(0% /'%)"$% %P+ 2'6'00% !0$/ 2$-")Q%!#$%$& $%0$/ $'*-2%,'2-0-")%( 5-)*%-0%26"0'67% 00"2- $',%<-$&%'8'2#$-.'%!'6-'+0%ED'$$-0%@%C/ & 6 ,4%FGGSJ9 Given the exploratory nature of this research study, we cannot presume that the three orientations described in $&-0%= ='/%2")0$-$#$'% %2"(=/'&')0-.'%0'$%"+%!'6-'+0% !"#$%$&'%( ) *'(')$%"+%,-.'/0-12 $-")9%T"/%2 )%<'%/#6'%"#$%$&'% possibility that executives might combine various elements from these three orientations and other sources to create #)-;#'%#),'/0$ ),-)*0% !"#$%&"<%$&'7%0&"#6,%( ) *'%$&'-/%1/(0%ED /)'7%FGGUJ9%L#$#/'%/'0' /2&%2 )%'8=6"/'%$&'% )# )2'04% ),%')0#-)*%0$#,-'0%2 )% 60"%!#-6,%")%$&'%1),-)*0%"++'/',%&'/'%$"%'8=6"/'%,"(-) )$%6"*-204% ),%0='2-12 667% <&'$&'/%$&'%"/-')$ $-")0%,'02/-!',%-)%$&-0%= ='/% /'%0& /',% (")*%('(!'/0%"+%1/(0>%$"=%( ) *'(')$%$' (09 For example, it would be worthwhile to examine how a wide variety of personality and organizational factors (",'/ $'% "/% (',- $'% $&'% /'6 $-")0&-=0% $& $% & .'% !'')% -,')$-1',% -)% $&-0% 0$#,79% :='2-12 6674% &"<% ,"% '8'2#$-.'0>% attitudes toward risk taking and focus on short-term versus long-term results moderate the relationship between their !'6-'+0% ),%$&'-/%1/(>0%0$/ $'*-'0V%W-5'%$&-0%0$#,74%)' /67% 66%/'0' /2&%")%,-.'/0-12 $-")%0$/ $'*7%'(=6"70%0 (=6'0%"+% .'/7%6 /*'%1/(04%!#$%( )7%0( 66% ),%(',-#(30-N',%1/(0% /'% 60"%,-.'/0-1',9%X$%<"#6,% 60"%!'%-)$'/'0$-)*%$"%5)"<% -+% $&'% /'6 $-")0&-=0% -,')$-1',% -)% $&-0% 0$#,7%<"#6,% 60"%!'%=/'0')$% -)% 0 (=6'0%"+% 0( 66'/%1/(0V%Y/4% -$%(-*&$% '.')% !'%&7="$&'0-N',%$& $%$&'0'%/'6 $-")0&-=0%<"#6,%!'%0$/")*'/%*-.')%$& $%0( 66'/%1/(0% /'%6-5'67%$"%'8='/-')2'%+'<'/% communication and coordination challenges. 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[ *"= 6 )4%T94%@%? 0&'',4%Z9%FGGF9%A-.'/0-12 $-")% ),%='/+"/( )2']%_/-$-2 6%/'.-'<% ),%+#$#/'%,-/'2$-")09%% Journal of Management Studies4%UH]%SUG3SSH9 A'004%b94%b#=$ 4%Z94%c')) /$4%\94%@%c-664%_9%FGGS9%_"),#2$-)*% ),%-)$'*/ $-)*%0$/ $'*7%/'0' /2&% $%$&'%-)$'/) $-") 64% 2"/="/ $'4% ),%!#0-)'00%6'.'60]%X00#'0% ),%,-/'2$-")09%Journal of Management4%UF]%^SO3^G^9 A#& -('4%X94%@%:2&<')54%_9%FGHS9%_")['2$#/'0%")%2"*)-$-.'%0-(=6-12 $-")% -)% 2;#-0-$-")% ),%,-.'0$(')$%,'2-0-")% making. Academy of Management Review4%Fa]%UHO3UGS9 Dundas, K., & Richardson, P. 1982. Implementing the unrelated product strategy. Strategic Management Journal, ^]%UHO3^aF9 A#$$")4% \94%@%A#5'/-2&4% \9% FGGF9%d''=-)*% )% '7'% ")% $&'%(-//"/]% X( *'% ),% -,')$-$7% -)% "/* )-N $-") 6% , =$ $-")9%% Academy of Management Journal4%^`]%SFO3SS`9 L /["#)4%M9%FGGHJ9%B&'%-),'='),')$% ),%["-)$%'++'2$0%"+%$&'%05-66% ),%=&70-2 6%! 0'0%"+%/'6 $',)'00%-)%,-.'/0-12 $-")9%% Strategic Management Journal4%FG]%IFF3I^a9 L6-*0$'-)4% T9% FGHO9% B&'% -)$'/"/* )-N $-") 6% ="<'/% 0$/#**6']% ?-0'% "+% 1) )2'% ='/0"))'6% $"% $"=% 6' ,'/0&-=% -)% 6 /*'% corporations, 1919-1979. American Sociological Review4%SU]%``3SH9 b /*4% e94% f 6$'/04% D94% @% C/-'(4% ?9% Uaa^9% _&-'+% '8'2#$-.'% 02 ))-)*% '(=& 0'04% ').-/")(')$ 6% ,7) (-0(4% ),% ( )#+ 2$#/-)*%1/(%='/+"/( )2'9%Strategic Management Journal4%U`]%OUS3O``9 b-"- 4%A94%@%_&-$$-=',,-4%d9%FGGF9%:')0'( 5-)*% ),%0')0'*-.-)*%-)%0$/ $'*-2%2& )*'%-)-$- $-")9%Strategic Management Journal4%FU]%`^^3``H9 b""6,4%M94%@%_ (=!'664%Z9%FGHO9%:$/ $'*-'0% ),%0$76'0]%231/'.41/.5/-31/01*-1'/+*/6)*)(+*(/7+81'9+:17/0.';.')-+.*9. T'<%g"/5]%D 0-6%D6 25<'669 b""6,4%M94%_ (=!'664%Z94%@%Z6'8 ),'/4%M9%FGG`9%$.';.')-1/41814/9-')-1(<=/$'1)-+*(/8)4>1/+*/-31/6>4-+?>9+*199/ company9%T'<%g"/5]%\"&)%f-6'7% ),%:")09 b""6,4%M94%@%W#2&04%d9%FGG^9%f&7%,-.'/0-+7V%L"#/%,'2 ,'0%"+%( ) *'(')$%$&-)5-)*9%Academy of Management !@10>-+814%O]%O3US9 Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. 2005. Multivariate data analysis. 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A)'8)'7/B>9+*199/ 18+1C4%SH]%IO3OO9 c-664%_9%FGG`9%A-.'/0-12 $-")% ),%'2")"(-2%='/+"/( )2']%D/-)*-)*%0$/#2$#/'% ),%2"/="/ $'%( ) *'(')$%! 25%-)$"%$&'% =-2$#/'9%X)%?9%?#('6$4%A9%:2&'),'64%@%A9%B''2'%ER,09J4%Fundamental issues in strategy%E==9%UGO3^UFJ9%%D"0$")]% Harvard Business School Press. c"05-00")4%?94%@%c-$$4%M9%FGGa9%Z)$'2',')$0% ),%='/+"/( )2'%"#$2"('0%"+%,-.'/0-12 $-")]%Z%/'.-'<% ),%2/-$-;#'%"+% theoretical perspectives. Journal of Management4%FI]%`IF3SaG9 c#++4%Z9%FGHU9%%X),#0$/7%-)K#')2'0%")%0$/ $'*7%/'+"/(#6 $-")9%Strategic Management Journal4%^]%FFG3F^F9 Johnson-Laird, P. 1983. Mental models9%_ (!/-,*'4%MZ]%B&'%h)-.'/0-$7%C/'009%% \")'04%b94%@%c-664%_9%FGHH9%B/ )0 2$-")%2"0$% ) 670-0%"+%0$/ $'*730$/#2$#/'%2&"-2'9%Strategic Management Journal, G]%FSG3FOU9 d N )[- )4%?94%@%A/ N-)4%?9%FGHO9%X(=6'(')$-)*%-)$'/) 6%,-.'/0-12 $-")]%_")$-)*')27%+ 2$"/0%+"/%"/* )-N $-")%,'0-*)% choices. Academy of Management Review4%FU]%^`U3^S`9 d-'2&'64%f9%FGHU9%_"/="/ $'%0$/ $'*-0$0%#),'/%1/'9%Fortune4%A'2'(!'/%UO]%^`3^G9 Kor, Y., & Leblebici, H. 2005. How do interdependencies among human-capital deployment, development, and ,-.'/0-12 $-")%0$/ $'*-'0% ++'2$%1/(0>%1) )2- 6%='/+"/( )2'V%Strategic Management Journal4%UI]%GIO3GHS9 W (")$4% D94% @%Z),'/0")4% _9% FGHS9% M",'% "+% 2"/="/ $'% ,-.'/0-12 $-")% ),% '2")"(-2% ='/+"/( )2'9% Academy of Management Journal4%UH]%GUI3G^`9 W' .74%D9%UaaF9%_/' $-)*%. 6#'%-)%$&'%(#6$-3!#0-)'00%1/(9%D.>'*)4/.5/E1*1')4/F)*)(161*-4%UO]%SF3II9 W'.74%Y9%UaaS9%B&'%-)K#')2'%"+%$"=%( ) *'(')$%$' (% $$')$-")%= $$'/)0%")%*6"! 6%0$/ $'*-2%="0$#/'%"+%1/(09%%Journal .5/&'()*+,)-+.*)4/B13)8+.'4%UI]%OGO3HFG9 W"#)0!#/74%M94%@%b67))4%M9%UaaF9%_#6$#/'%')$/'=/')'#/0&-=]%:$"/-'04%6'*-$-( 274% ),%$&'% 2;#-0-$-")%"+%/'0"#/2'09%% Strategic Management Journal4%UU]%S`S3SI`9 M 0")4%d94%@%c //-04%W9%UaaS9%C-$+ 660%-)%'. 6# $-)*%( /5'$%"/-')$ $-")]%Z)%'8=6"/ $-")%"+%'8'2#$-.'0>%-)$'/=/'$ $-")09% G.*(/ )*(1/H4)**+*(4%^H]%^O^3^GF9 M-66'/4%A94%L'/)4%M94%@%_ /,-) 64%W9%UaaO9%B&'%#0'%"+%5)"<6',*'%+"/%$'2&)"6"*-2 6%-))". $-")%<-$&-)%,-.'/0-1',%1/(09%% Academy of Management Journal4%Sa]%UaH3^UI9 T 77 /4% C9% FGG^9% :$"25%( /5'$% /' 2$-")0% $"% /'6 $',% ,-.'/0-12 $-")%(".'0% !7% 0'/.-2'% 1/(0% 0''5-)*% !')'1$0% +/"(% information asymmetry and economies of scope. Strategic Management Journal4%F`]%SIG3SGF9 Neill, S., & Rose, G. 2006. The effect of strategic complexity on marketing strategy and organizational performance. Journal of Business Research4%SG]%F3Fa9 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 71 Advances in Business Research C 6'=#4% d9% FGHS9% A-.'/0-12 $-")% 0$/ $'*74% =/"1$% ='/+"/( )2'% ),% $&'% ')$/"=7% (' 0#/'9% Strategic Management Journal4%I]%U^G3USS9 C'&/00")4%Z9%UaaI9%D#0-)'00%/'6 $',)'00% ),%='/+"/( )2']%Z%0$#,7%"+%( ) *'/- 6%='/2'=$-")09%Strategic Management Journal4%UO]%UIS3UHU9 C-02-$'66"4% W9% Uaa`9% _"/="/ $'% ,-.'/0-12 $-")4% 2"&'/')2'% ),% '2")"(-2% ='/+"/( )2'9% Industrial and Corporate Change4%F^]%OSO3OHO9 Porter, M. 1985. Competitive advantage9%T'<%g"/5]%B&'%L/''%C/'009 Porter, M. 1987. From competitive advantage to corporate strategy. A)'8)'7/B>9+*199/ 18+1C4%IS]%`^3SG9 C/ & 6 ,4%_94%@%D'$$-04%?9%FGHI9%B&'%,"(-) )$%6"*-2]%Z%)'<%6-)5 *'%!'$<'')%,-.'/0-$7% ),%='/+"/( )2'9%Strategic Management Journal4%O]%`HS3SaU9 ? ( )#[ (%e94%@%e / , / [ )4%C9%FGHG9%?'0' /2&%")%2"/="/ $'%,-.'/0-12 $-")]%Z%07)$&'0-09%Strategic Management Journal4%Fa]%SU^3SSF9 Robertson, D., & Ulrich, K. 1998. Planning for product platforms. Sloan Management Review4%^G]%FG3^F9 Rumelt, R. 1974. Strategy, structure and economic performance9%_ (!/-,*'4%MZ]%c /. /,%h)-.'/0-$7%C/'009 ?#('6$4%?9%FGHU9%A-.'/0-12 $-")%0$/ $'*7% ),%=/"1$ !-6-$79%Strategic Management Journal4%^]%^SG3^Oa9 :")*4%\9%FGHU9%A-.'/0-12 $-")%0$/ $'*-'0% ),%$&'%'8='/-')2'%"+%$"=%'8'2#$-.'0%"+%6 /*'%1/(09%Strategic Management Journal4%^]%^OO3^Ha9 Spender, J. 1989. Industry recipes9%Y8+"/,]%D 0-6%D6 25<'669 :$ /!#254%f94%@%M-66-5')4%L9%FGHH9%R8'2#$-.'0>%='/2'=$# 6%16$'/0]%f& $%$&'7%)"$-2'% ),%&"<%$&'7%( 5'%0')0'9%%X)%A9% c (!/-25%ER,9J4%231/1@10>-+81/15510-=/$.*01;-9/)*7/61-3.79/5.'/9->7<+*(/-.;/6)*)(1'9%E==9%̂ S3ISJ9%b/'')<-2&4% _B]%%\ZX%C/'009 :$-(='/$4%\94%@%A#& -('4%X9%FGGO9%X)%$&'%'7'0%"+%$&'%!'&"6,'/]%_")2'=$# 6-N $-")0%"+%/'6 $',)'00%&'6,%!7%$&'%( ) *'/0% "+%6 /*'%,-.'/0-1',%1/(09%Strategic Management Journal4%FH]%FFF3FUS9 B )/-.'/,-4%c94%@%e')5 $/ ( )4%T9%UaaS9%d)"<6',*'%/'6 $',)'00% ),%$&'%='/+"/( )2'%"+%(#6$-!#0-)'00%1/(09%Strategic Management Journal4%US]%FF^F3FFS^9 B''2'4% A9% FGHU9% B"< /,0% )% '2")"(-2% $&'"/7% "+% $&'% (#6$-=/",#2$% 1/(9% D.>'*)4/ .5/ !0.*.6+0/ B13)8+.'/ )*7/ &'()*+,)-+.*4%^]%^G3I^9 e )& .'/!'5'4%f94%@%C''$'/04%T9%UaaS9%R(!/ 2-)*%-))". $-")% 0%0$/ $'*7]%_"/="/ $'%.')$#/-)*4%2"(='$')2'%!#-6,-)*% and corporate strategy making. Creativity and Innovation Management4%F`]%U`I3USO9 f 60&4%\9%FGGS9%M ) *'/- 6% ),%"/* )-N $-") 6%2"*)-$-")]%T"$'0%+/"(% %$/-=%,"<)%('("/7%6 )'9%&'()*+,)-+.*/%0+1*01, I]%UHa3^UF9 Williamson, O. 1975. F)'I1-9/)*7/3+1')'03+19=/J*)4<9+9/)*7/)*-+-'>9-/+6;4+0)-+.*99%T'<%g"/5]%B&'%L/''%C/'009 f"",/#++4% ?9% FGGO9% _#0$"('/% . 6#']% B&'% )'8$% 0"#/2'% +"/% 2"(='$-$-.'% ,. )$ *'9% Journal of the Academy of Marketing Science4%US]%F^G3FS^9 i [ 24%R94%@%:&"/$'664% :9% FGHG9%_& )*-)*% *')'/-2% 0$/ $'*-'0]%W-5'6-&"",4% ,-/'2$-")4% ),% ='/+"/( )2'% -(=6-2 $-")09%% Strategic Management Journal4%Fa]%`F^3`^a9 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime 72 Advances in Business Research G)''3)+61%-0% %=/"+'00"/%-)%$&'%,'= /$(')$%"+%( ) *'/- 6%02-')2'0% $%$&'%\9%M 25%?"!-)0")%_"66'*'%"+%D#0-)'00% Administration at Georgia State University, where she also serves as the associate dean for administration. She received her Ph.D. from the University of Pittsburgh. Her research interests include corporate strategy, entrepreneurship, and family business. She has published in the Academy of Management Journal, the Academy of Management Review, the Strategic Management Journal, and the Journal of Management. 2010, Vol. 1, No. 1, 62-72 Stimpert and Duhaime