The Effects of Culture and Structure on Strategic Flexibility during Business Model Innovation

This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Furt...

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Bibliographic Details
Main Authors: BOCK, Adam J., OPSAHL, Tore, GEORGE, Gerard, GANN, David M.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2012
Subjects:
CEO
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/4675
https://ink.library.smu.edu.sg/context/lkcsb_research/article/5674/viewcontent/EffectsCultureStructureStrategic_2012.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non-core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and dynamic capabilities are discussed.