Competitive dynamics, organizational learning and institutional theory are used to predict the evolution of competitive action patterns. We develop hypotheses pertaining to the preservation and introduction of competitive actions into firms’ competitive repertoires and the performance effects of such changes. Additionally, the performance effects of action patterns conforming to institutional norms are assessed. We use a data set from the US retail industry to test our model. Our findings suggest that firms preserve actions that were performing well in the past, and they preserve and introduce actions that are highly legitimate. Converging action patterns have negative implications for performance, and conforming to institutional norms affects firm-performance in a U-shaped manner.

This study extends theory and research on narrative-based knowledge sharing in organizational communities. An empirical case study examines the role of narratives and knowledge sharing in a virtual community of practice at Shell Int. Exploration and Production. The focus of analysis is on how engineers facing urgent drilling problems make use of narratives provided by peers in order to find solutions. Findings confirm on the one hand the importance of narratives for problem solving in this highly sophisticated and virtual context (former studies focussed exclusively on face to face interaction on the shop floor level). On the other hand, the results indicated that the narratives told do not represent a coherent entity but rather a complex variety which is likely to irritate and confuse users. The conclusion drawn is that organizations cannot refrain from qualifying narratives generated in their communities. It is necessary in order to get orientation out of narrative variety. Finally, suggestions for establishing evaluation procedures are provided. More generally, the findings of the paper stress the importance of reflecting on narratives.

Decision-making heuristics are widely used in different economic and non- economic contexts to yield a good solution with an acceptable problem-solving effort. This paper presents the main features of an experimental research project to analyze the effectiveness and efficiency of selected heuristic techniques, which can be used to facilitate and improve the strategic decision-making process. The resource-based view and modern, psychologically inspired decision-making theory provides the theoretical basis for the study.

We study the occurrence and performance effects of organizational learning in the U.S. retail industry. Six modes of choosing competitive actions are distinguished: momentum, blind imitation, learning from own success, learning from others’ success, risk-related learning, and opportunity-related learning. We find that momentum, blind imitation, and risk- as well as opportunity- related learning are prevalent. Further, the results point to the importance of interorganizational learning. Firms in this industry should have used the past actions of their competitors as a benchmark, but seem to have failed to realize this necessity.

Based on a sample of large, publicly traded German companies, we study performance implications of CEO duality for executive succession events. We find that CEO dismissals are more frequent at low levels of pre-succession market-based performance and CEO duality. Postsuccession sales growth and operating earnings are higher for firms with CEO dismissals and CEO duality. Our results provide partial support to stewardship theory and no support to agency theory.

Based on a sample of large, publicly traded German companies, we study performance implications of CEO dismissals. We find that measures of accounting performance are good predictors of CEO dismissal events: Low pre- succession accounting performance increases the probability of dismissals. However, replacement CEOs do not manage to turn things around because they do not experience significant increases in either operating or market performance during a two-year post-succession period.

We develop a social capital model that explains how networks of interorganizational relationships can be structured to manage exploration processes directed at gaining competitive advantage in different environmental contexts. We argue that a networkstructure of low density and high strength of relationships is beneficial if the main goal of the network is to actively configure the environment, e.g. under conditions of high environmental complexity. In contrast, a network structure of high density and low strength of relationships is advantageous if the adaptation to changing environmental conditions is the main concern of the embedded organizations, e. g., in contexts characterized by high environmental variability.