Emerald | Journal of Business Strategy

Strategic brand venturing: the corporation as entrepreneur

Deryck J. van Rensburg — 2012-05-11 00:00:00.0

Abstract

Purpose – This paper aims to outline a corporate entrepreneurship growth strategy for large consumer packaged goods (CPG) firms that involves venturing with brand entrepreneurs to access innovative or disruptive new brands called “strategic brand venturing” (SBV). Design/methodology/approach – An emerging development among large CPG firms known for their branding and marketing prowess has been to create dedicated brand/consumer venturing units (e.g. Coca-Cola; P&G; Nestle; Clorox; General Mills; Unilever) as a means of enlarging their innovation boundaries. As president of an SBV unit for The Coca-Cola Company, the author notes this recent development and opportunity. He provides a descriptive account of its nature, strategic value, and organizational considerations. Research implications – Researchers are encouraged to empirically examine this new option in further depth. Practical implications – The capabilities and organizational considerations involved in establishing an SBV unit are briefly outlined. Originality/value – External corporate venturing in technology-intensive industries is an established and growing practice. However, equity investments by large CPG corporations in entrepreneurial brand firms represent a corporate entrepreneurship opportunity that has hitherto received scant/no attention in the literature. A revised typology of brand growth strategies is therefore proposed encompassing venturing.

Pulling off the comeback: shrink, expand, neither, both?

Michael Braun, Scott Latham — 2012-05-11 00:00:00.0

Abstract

Purpose – In this paper, the authors aim to build a prescriptive framework to help managers in turning around their ailing organizations. Their framework focuses on the extent of contractionary and expansionary initiatives needed to rebuild long-term competitive advantage. They make the case that managers engaging in a pro-active and balanced approach to scaling down and growing their organizations can boost the success of their recovery efforts. Design/methodology/approach – The authors build their framework based on academic research on corporate turnarounds, their scholarly work on corporate restructuring, and their combined experiences and observations in industry. Their framework proposes four possible outcomes of the turnaround process: comeback, adrift, running-on-empty, and collapse. They provide examples to describe each outcome. Findings – The authors' framework suggests that the interaction between two restructuring actions – retrenchment and repositioning - determines the outcome of corporate turnarounds. By overemphasizing downsizing, managers fail to jumpstart entrepreneurial growth that can propel the firm towards long-term competitive advantage. Similarly, stresses arising from excessive growth programs can quickly drain firm resources. As such, all managers need to assess the alignment between downsizing efforts and growth-oriented initiatives. By bringing awareness to the interdependency between retrenchment and repositioning, the authors' framework can guide managers in making necessary adjustments on the way to fixing their organization. Originality/value – Retrenchment and repositioning represent the means available to managers attempting corporate turnaround. However, corporate turnarounds often fail due to an overemphasis on one phase of the restructuring process, at the expense of the other. This framework points to the delicate retrenchment-repositioning required to achieve successful turnaround.

Transistors, electric vehicles and leapfrogging in China and Japan

Chris Kimble, Hua Wang — 2012-05-11 00:00:00.0

Abstract

Purpose – The goal of the article is to use the concepts of catching-up and leapfrogging that are most often found in the literature on developmental economics to explore the process by which newcomers overturn an established market leader. Design/methodology/approach – The article uses two case studies, one of the initial development of the transistor radio by the Japanese and the other of the development of electric vehicles in China, to illustrate the application of these concepts to concrete examples. Findings – The way in which Sony caught up with, and jumped ahead of, American radio manufacturers is explained using the concepts of catching-up and leapfrogging to emphasize the different phases in the process. This is contrasted with the development of electric vehicles in China which is a process that is still unfolding. The potential importance of one particular development, the low speed electric vehicle, is highlighted. Practical implications – The concepts of catching-up and leapfrogging provide a simple method to visualize the ways in which a newcomer might overtake an incumbent. Their application to the case studies also highlights the crucial importance of a sound business model in this process. Originality/value – Although the case of Sony and the transistor radio is relatively well known, this article places it in a new conceptual framework. The case of the development of electric vehicles in general, and the example of the low speed electric vehicle in particular, is new and has not been widely explored.

Smoothing the corporate venturing path: rules still count

Ellen Enkel, Sanjay Goel — 2012-05-11 00:00:00.0

Abstract

Purpose – Since corporate ventures operate under the organizational conditions of a parent company, this article aims to highlight key conditions influencing the success of a new venture. Design/methodology/approach – Two cases of corporate venturing are analyzed regarding their performance since they are characterized by different conditions within one international consumer-goods company. Hence, the literature on corporate entrepreneurship is reviewed and combined with a case study to explore the role and drivers of organizational conditions in the inception and development of new corporate ventures. Findings – The case study reveals two key organizational differences pertaining to corporate new ventures — procedural clarity and procedural discipline. These differences mitigate the variety of risks that corporate entrepreneurs face and smooth or hinder their way to evolve their venture from ideas to business. Research limitations/implications – As the study includes two venturing cases within the same company in the fast moving consumer goods industry (FMCG), the findings are so far limited to the characteristics of this company type and its sector. Practical implications – This article supports mid-level managers to run corporate ventures more successfully by introducing a clear action plan with well defined phases. Individual managers' impact should be limited and linked to a more objective network-structure. Originality/value – In contrast to previous literature, this paper highlights the influence of organizational conditions under which corporate ventures are initiated and operated. Additionally, there are further factors identified, the ventures' internal visibility, and the knowledge support by the parent company, which will influence the venture's success or failure.

Extending the enterprise for improved innovation

Raffaele Filieri, Salma Alguezaui — 2012-05-11 00:00:00.0

Abstract

Purpose – Complexity, turbulence, and unpredictability have driven the emergence of a new firm's model, namely the extended enterprise (EE). The EE is an emerging business framework, addressing the current challenges related to innovation and competition in complex scenarios. The purpose of this paper is to provide a clear and unambiguous description of the EE, and how it differentiates from the network firm. Moreover the paper discusses also how the EE is evolving and what are the key strategies enabling the EE to attain his goals. Design/methodology/approach – The paper reviews different literature, such as supply-chain, manufacturing, marketing, innovation, and management with the aim to provide a clear definition of the EE. Findings – This article identifies the key characteristics of the EE, such as opening the innovation process to external innovators, acquiring and redistributing knowledge with different stakeholders, network coevolution, trust, and technologies. Increasingly, it discusses the importance of fostering tacit and explicit knowledge sharing and of aligning values to achieve the goals of the EE. Originality/value – There are very few papers discussing the characteristics of the EE and they are all outdated. This is one of the first papers that attempts also to identify the governance mechanisms that managers can adopt to achieve the goals of the EE.

Because it's there

Patrick Marren — 2012-05-11 00:00:00.0

Abstract

Purpose – This paper aims to examine some lessons that can be gained from the Everest reconnaissance expedition of 1921 for business strategy. Design/methodology/approach – This paper adopts an essay approach. Findings – There are at least six lessons to be drawn from the initial Royal Geographical Society reconnaissance of Mt Everest: strategies can be framed as expeditions; the right people need to be assigned the correct roles to make the strategy work; headquarters should respect the judgment of the people in the field and not arbitrarily impose their distant opinions on them; a team of one mind cannot normally succeed; a compelling goal makes up for a lot of shortfalls in other areas; a “failed” strategy can still be valuable if you learn from it. Originality/value – The paper examines these issues in what is hoped to be a unique way.

Editor’s note

2012-05-11 00:00:00.0