History and Strategy: Volume 29

Purpose – This chapter is intended to identify the actual and potential linkages between history and strategy research.

Design/methodology/approach – Drawing on examples from research at the intersection of history and strategy, we identify research topics that have received attention from a historical-strategy lens, and those that are thus far understudied. We then place the studies that appear in this volume into their relevant context.

Findings – The chapter outlines benefits that the strategy field can gain from a greater emphasis on history, and that the history field can gain from a greater use of strategic insights.

Originality/value – The chapter sets the context for the studies in this volume, and provides a lens for evaluating the benefits of historical-strategy research.

Purpose – What role did economic experiments play in creating value in the commercial market for wireless Internet access? Rosenberg (1992, p. 181) defines such experiments broadly, “to include experimentation with new forms of economic organization as well as the better-known historical experiments that have been responsible for new products and new manufacturing technologies.”

Design/methodology/approach – The chapter provides an overview of the experience of a number of firms, focusing on the period between the late 1990s and early part of the 21st century, when the technology first blossomed in commercial markets. The chapter uses the experience of Lucent and Intel as primary illustrations of key concepts, and the chapter discusses how the framework generalizes beyond the experience of these two firms.

Findings – The distinction between directed and undirected experiments helps understand events in the evolution of Wi-Fi's value. They also bring new perspective to an extensive debate in communications policy about the best way to assign and allocate spectrum, focusing on the importance of the regulatory decision to provide space in which experiments can take place.

Originality/value – This framework has value for business history of the commercial Internet. This lens stresses the importance of preserving discretion to move business away from applications with low value, namely, away from allocations that used a conceptualization of the technology founded on a poor-use case, which later lessons showed had lower value than alternatives.

Purpose – This chapter discusses the difference between a product strategy and a platform strategy, relying on examples from the history of Apple and Microsoft in personal computers and other devices as well as Sony and Japan Victor Corporation in videocassette recorders.

Design/methodology/approach – The chapter begins with a review of how the term “platform” has been used in the management literature and defines an industry-wide platform (as compared to an in-house company product platform) as a foundation technology (or service) that brings multiple parties in a market together for a common purpose. An industry-wide platform can generate powerful network effects between the platform and complementary products and services that make the platform increasingly valuable. Apple, with the Macintosh computer, and Sony with the Betamax VCR as well as other products, such as the Walkman media player, are examples of firms that developed excellent products but followed a product-first strategy and ended up losing in these markets or becoming niche players. They paid relatively little attention to opening up their technology to outside firms and cultivating an ecosystem of partners. Apple changed in the early 2000s with the iPod and iTunes, and then the iPhone and iPad, and has risen from near bankruptcy to become an enormously valuable and profitable platform leader.

Findings – Historical examples suggest that, in a platform market, the winner is not the firm with the best product, but rather the firm with the best platform – that is, the foundation technology or service that is most open to outsiders and which stimulates development of the most compelling complements.

Originality/value – This result extends the literature's understanding of platform strategy.

Purpose – This chapter examines the licensing behavior of patent pools when they are unconstrained by antitrust rules.

Design/methodology/approach – Patent pools allow competing firms to combine their patents and license them as a package to outside firms. Regulators today favor pools that license their patents freely to outside firms, making it difficult to observe the unconstrained licensing strategies of patent pools. This chapter takes advantage of a unique period of regulatory tolerance during the New Deal to investigate the unconstrained licensing decisions of pools. Archival evidence suggests that – in the absence of regulation – pools may not choose to license their technologies.

Findings/originality/value – Eleven of twenty pools that formed between 1930 and 1938 did not issue any licenses to outside firms. Three pools granted one, two, and three licenses, respectively, to resolve litigation. Six pools issued between 9 and 185 licenses. Archival evidence suggests that the pools studied in this chapter used licensing as a means to limit competition with substitute technologies.

Purpose – This chapter is intended to encourage comparative-historical research in strategy by articulating a framework for the study of industry and firm evolution.

Design/methodology/approach – Strategy research at its core tries to explain sustained performance differences among firms. This chapter argues that one, out of the many ways to create a productive marriage between strategy research and historical scholarship, is to carry out historically informed comparative studies of how firms and industries gain and lose their competitive position. While much of current strategy research adopts a large N hypothesis testing mode with the implicit assumption that one discovers generalization just like a Newtonian law such as F=m×a that applies across all space and time, an historically grounded methodology starts from the opposite direction. It assumes that a process or event may be idiosyncratic and therefore seeks to establish with detailed evidence that a 2nd (and later 3rd, 4th, … nth) process or event is indeed similar before generalizing across observations.

Findings/originality/value – The chapter argues that the field of strategy would benefit from allocating more effort on building causal generalizations inductively from well-researched case studies, seeking to establish the boundary conditions of emerging generalizations. It articulates a comparative research program that outlines such an approach for the arena of industry and firm evolution studies.

Purpose – This paper focuses on a unique historical case study of industry evolution in order to develop a road map where historical and strategic research could develop a common ground for trans-disciplinary inquiry.

Design/methodology/approach – The industry I explore is the Universal Credit Card Industry since its inception with the Diners Club in 1949 until its maturity in late 1990s. My empirical objective here is to develop a historically detailed and theoretically rich case study in which evolutionary processes are discovered as a result of the historical narrative.

Findings – The historical account of the industry demonstrates how the evolution of alternative business models as organizing forms has led to the establishment of interorganizational platforms with unique ecosystems. These alternative business models, through various experimentations, have ultimately produced two critical interorganizational organizations, one based on an open-loop system represented by Visa and MasterCard, and the other based on a closed-loop system represented by Diners Club and the American Express. The historical account also shows that in a given industry competition is not only among specific firms in the industry but also among the business models and the platforms created by these models.

Originality/value – I conclude that historical analyses reveal the nature of competition not only among firms but also among alternative business models where traditional strategy research rarely covers.

Purpose – This chapter traces the creation of a market for strategy by management consulting firms during the second half of the twentieth century in order to demonstrate their impact in shaping debates in the subject and demand for their services by corporate executives.

Design/methodology/approach – Using historical analysis, the chapter draws on institutional theory, including institutional isomorphism. It uses both primary and secondary data from the leading consulting firms to describe how consultants shifted from offering advice on organizational structure to corporate strategy and eventually to corporate legitimacy as a result of the changing economic and regulatory environment of the time.

Findings/originality/value – This study provides a historical context for the emergence of corporate and competitive strategy as an institutional practice in both the United States and around the world, and provides insights into how important this history can be in understanding the debates among consultants and academics during strategy's emergence as an academic subject and practical application.

Purpose – The broader aim of the research is to better understand the origins of firm heterogeneity in terms of strategy and structure, looking beyond convergence pressures resulting from economic and institutional forces.

Design/methodology/approach – To identify firm-specific differences, the paper uses an in-depth analysis of two matched cases, comparing the introduction of diversification strategies and decentralized organizational structures in two Dutch banks. Based on detailed archival research it tries to understand how different outcomes were shaped by political processes involving a variety of internal and external actors.

Findings – The research shows the importance of these processes and, in particular, the role of management succession as a trigger for organizational changes as well as the potential power of management consultants based on a combination of their own “political” skills and the opportunity provided by internal divisions. Moreover, the study confirms the view that organizational change requires a change in dominant ideology.

Research limitations/implications – The research was able to go beyond the limitations of extant studies based on cross-sectional data or single cases. It demonstrates the usefulness of historical analysis when examining changes in strategy and structure. Its results need to be confirmed by conducting similar studies in different contexts.

Originality/value – The paper provides new insights into the complex and dynamic processes of organizational change and shows how external consultants – within a specific set of circumstances – were able to manage these processes. The results are valuable to scholars studying organizational change and those looking at consultants and their role. They might also provide insights for practicing managers working or planning to work with consultants.

Purpose – This chapter is intended to help strategy scholars evaluate when, why, and how to employ historical research methods in strategy research.

Design/methodology/approach – Drawing on theory and practice of historical research as well as on key examples from the history and strategy literatures, we develop a typology of research approaches to highlight the areas of potential complementarity between historical methods and “traditional” empirical methods in strategy. We then provide annotated examples of historical strategy research to highlight the benefits of this approach and to demonstrate how to make research-related decisions when employing such methods.

Findings – The chapter provides a step-by-step conceptual roadmap for conducting historical strategy research, primarily using an analytic narratives approach.

Originality/value – The chapter fulfills an explicit need for strategy scholars on the boundary of history. We anticipate that it will be a useful reference for those who are considering the use of history in their strategy research.

Purpose – The broader aim of this research is twofold. First, we aim to better understand how the business computer was conceptualized and used within U.S. industry. Second, this research investigates the role of social factors such as relational structure, institutional entrepreneurs, and position in the formation of conceptualizations of new technologies.

Design/methodological/approach – This paper is theoretically motivated in the sense that it responds to the lack of attention to the failure of institutional entrepreneurs to change belief systems. Through detailed archival, network, and descriptive statistical analysis, the paper shows how the failed institutional entrepreneur fits conventional explanations for success. The paper then analyzes two matched cases, comparing the insurance industry's rejection of the institutional entrepreneur with manufacturing's acceptance, in order to identify what is missing in current explanations of institutional entrepreneurs.

Findings – Our analysis reveals that the role of the audience structure in interpreting the institutional entrepreneur's message influences the change outcome. In our case, the institutional entrepreneur's view of the computer as a brain that supported decision-oriented applications did not fit with views of the insurance groups who had centralized authority over interpreting the computer. Because manufacturing had less centralized control in its discourse around the computer, there were fewer constraints on assimilation, allowing the entrepreneur's views to resonate with some of the occupational groups.

Research limitations/implications – This paper develops a theoretical approach to institutional entrepreneurship that situates the entrepreneurial efforts of individual actors within a system characterized by the structure of its audience and subject to distinct historical macro-structural processes that present significant obstacles to the realization of their entrepreneurial projects.

Purpose – This study is intended to extend scholarship on the management of organizations by examining the long-term performance of orphaned products.

Design/methodology/approach – This study uses the historical context of the 1929 stock market crash and the Great Depression to examine the long-run appeal (performance) of orphaned products – products from start-ups that fail soon after production. I use this setting to determine how factors within the purview of management, as well as the role of changing tastes, affect the appeal of music from short-lived start-ups founded in 1929 and 1933.

Findings/originality/value – I find that while the evolution of tastes has a substantial effect beyond the control of a firm's managers, a start-up's decision-makers were able to positively influence the long-run appeal of music when they (a) recorded tunes with new artists and (b) were able to create an early big hit with the tune. These results demonstrate how and why, even with cultural producers in one of the greatest economic disasters in U.S. history, managerial decisions were meaningful for product performance. Finally, I show that the effect of being a start-up on the long-run appeal of a tune is time-varying such that being a start-up in 1929 or 1933 does not harm a tune's appeal until after World War II. These final analyses point to further ways in which strategy, history, and sociology might combine to further scholarship on the management of organizations.