L3 & L4: Sustainable strategies Flashcards
What is the central tension explored in the article regarding organizational strategy? (Deephouse)
The article explores the tension between differentiation, involving unique competitive advantages, and imitation, replicating successful strategies of competitors.
According to the author(Deephouse), what is crucial for organizations in navigating the balance between differentiation and imitation?
The author emphasizes the importance of identifying and leveraging distinctive resources and capabilities for organizations to navigate the balance between differentiation and imitation.
According to the article, what does strategic balance require a nuanced understanding of? (Deephouse)
Strategic balance requires a nuanced understanding of market dynamics, competitor behavior, and organizational capabilities, as well as the ability to adapt to changing circumstances.
What does the conformity proposition suggest for a firm that aims to be the same?
The conformity proposition suggests that being the same avoids legitimacy challenges that hinder resource acquisition.
What is a key resource for the successful firm, according to the provided information?(deephouse)
A key resource of the successful firm is locating profitable new strategic opportunities for its core competencies.
In the balance between differentiation and conformity, what is the general implication for a firm’s performance?
The general implication is that the firm has the highest performance at intermediate levels of strategic similarity.
What conditions do firms in the high similarity condition face, according to the information? (deephouse)
Firms in the high similarity condition face strong competition and avoid legitimacy challenges
According to the article, what happens to the costs and benefits at greater levels of dissimilarity? (deephouse)
At greater levels of dissimilarity, the costs of legitimacy challenges exceed the benefits of reduced competition, leading to lower net performance.
What does the article propose regarding a firm’s performance in relation to strategic similarity? (deephouse)
The ultimate relationship between strategic similarity and performance depends on the relative strength of the differentiation and conformity propositions over the range of strategic similarity.
According to Meyer and Rowan, what functions do the formal structures and procedures of organizations often serve?
The formal structures and procedures of organizations often serve symbolic and ceremonial functions rather than practical purposes.
What concept from institutional theory is drawn upon by the authors to explain the adoption of formalized structures by organizations? (Meyer & Rowan)
The authors draw on concepts from institutional theory to explain that organizations adopt formalized structures to conform to societal expectations and norms.
How do organizations become “institutionalized,” according to the article? (Meyer & Rowan)
Organizations become “institutionalized” by relying on symbolic rituals and ceremonies to maintain legitimacy and stability
What does Meyer and Rowan suggest can result from institutionalization in terms of organizational behavior?
Institutionalization can lead to a disconnect between formal structures and actual organizational behavior, challenging conventional assumptions about organizational rationality and decision-making.
What is highlighted as a key aspect in the article regarding the relationship between formal structure, organizational culture, and institutionalization processes? (Meyer & Rowan)
The article highlights the importance of understanding the social dynamics and symbolic dimensions of organizational life in relation to formal structure, organizational culture, and institutionalization processes.
According to the article, what role do symbolic rituals and ceremonies play in institutionalized organizations? (Meyer & Rowan)
Symbolic rituals and ceremonies play a crucial role in institutionalized organizations to maintain legitimacy and stability.