Leif Melin

Guest Editors' Introduction. Micro Strategy and Strategizing : Towards an Activity-Based View

This introductory paper provides a background to the origins, themes and papers of this Special Issue on Micro Strategy and Strategizing. Our overarching argument is that, while the field of strategy has traditionally concentrated on the macro-level of organizations, it needs now to attend to much more micro-level phenomena. We propose an activity-based view of strategy that focuses on the detailed processes and practices which constitute the day-to-day activities of organizational life and which relate to strategic outcomes. The paper develops this view by considering two bodies of theory, those of the resource based view and institutionalism; two bodies of empirical work, those on corporate diversification and structure; and finally the process tradition of strategy research. The paper identifies the benefits of the activity-based view and introduces some challenges for further research. It concludes by introducing the papers in this Special Issue.

Entrepreneurship as Radical Change in the Family Business : Exploring the Role of Cultural Patterns

This article explores the relationship between organizational culture and the entrepreneurial process that is viewed as radical change in the context of the family business. Drawing on results from two in-depth family business case studies, the authors develop a conceptual model for understanding organizational culture and its impact on entrepreneurial activities. The model is built around the extent to which the culture is connected to one dominant family member or several family members, the degree of cultural explicitness, and the degree of cultural openness. It is argued that whereas some cultural patterns tend to preserve the traditional way of doing business, others tend to facilitate entrepreneurial change. The conclusion is that to support entrepreneurial processes, managers need to foster a process of high-order learning in which old cultural patterns are continuously questioned and changed. To accomplish this, the organizational culture needs to be highly explicit and open.

Creating Value Across Generations in Family-Controlled Businesses: The Role of Family Social Capital

This article explores the processes through which family-controlled businesses (FCBs) access and recombine resources to match the evolving needs of their business activities. We do so by applying the conceptual lens offered by social capital to the comparative study of four FCBs active in traditional competitive arenas. Our data reveal that these firms’ ability to create financial value over generations does not result from possession of some unique resource, nor from higher-level combinative capabilities; rather, these FCBs have systematically created value through their ability to renew and to reshape their social interactions within and outside the controlling family.

Entrepreneurial families and family firms

While studies of entrepreneurship and family business have to a great extent developed independently, there are some indications that they are now moving closer to each other. The purpose of this special issue is to contribute to an increased scholarly interest in research that integrates the areas of entrepreneurship and family business. This introductory article elaborates upon the meaning of entrepreneurial families and family firms. Based on a review of a significant amount of previous literature and the articles in this special issue, we generate a guiding framework around three themes – actor, activity and attitude. We argue that research focusing on specific topics within these themes has great potential to contribute to our theoretical and empirical understanding of entrepreneurship and family firms. We also share a note on why we believe Entrepreneurship and Regional Development is a suitable arena for publishing research with this orientation. We then introduce the five papers that are included in this special issue using the framework developed to position the papers and thereby to reveal their respective contributions and their advancement of our knowledge. We conclude with reflections on some unexplored themes, which are still very relevant to examine in future research on entrepreneurship and family businesses.

Business Growth-Do Practitioners and Scholars Really Talk about the Same Thing?

The current growth literature has stalled over which measures to use in empirical studies, causing a fragmented theory base. This paper claims that there is a third issue that further curbs efforts in developing a better understanding of business growth. Based on a thorough literature review, a quantitative, and a qualitative study, we find that academic scholars and entrepreneurs do not talk about the same thing when they say “business growth.” For practitioners, growth is a more complex phenomenon—with a strong emphasis on internal development—which differs from the simplified conceptualization of growth used in empirical studies.

Qualitative research on family businesses: The relevance and usefulness of the interpretive approach

Family business research has grown over the last decade and there are increasing requests for deeper insights into the nature and workings of these organizations. Currently, family business research is dominated by quantitative research methods. In this article, we argue that these studies should be complemented by a research approach that is more apt to capture the specific complexity and dynamics unique to family businesses. We suggest that the interpretive approach within the broader umbrella of qualitative methods has this potential. The article discusses issues, choices, requirements and implications for family business scholars engaged in interpretive research. We also offer suggestions for how editors and reviewers can assess interpretative research.

The Changing Landscape of the European Financial Services Sector

The European financial services sector is confronted with major forces that have changed its competitive dynamics and the strategic context. Firstly, we investigate the pace of the diffusion of two forces for strategic renewal (technological innovations and regulatory changes); secondly, we assess similarities in the pace of diffusion across countries; and thirdly, we assess the impact of these developments on the European financial landscape, focusing on five EU countries from 1990 to 1999. Preliminary findings suggest that country-specific patterns of diffusion have decreased substantially, indicating the emergence of industry-generic patterns of diffusion, while the speed of diffusion is increasing within the sector. This will give rise to a hyper-competitive landscape in the beginning of this century. Understanding the emergence of such landscapes creates important managerial challenges for the strategic renewal journeys of both incumbent firms and new entrants, in the financial services sector and in sectors confronted with similar developments

Proactive and reactive plots : Narratives in entrepreneurial identity construction

Purpose – The purpose of this paper is to offer a new perspective on entrepreneurial identity as a narrative construction, emerging in stories about entering the family business.Design/methodology/ ...

Strategies in managing turnaround

Abstract This article describes the development of the Scandinavian colour TV industry during the 1970s. It examines strategies of six Scandinavian firms during the rapid expansion phase 1970–1976 and the saturation phase 1976–1978. Most of the Scandinavian firms went into severe crisis in the end of the 1970s and their survival strategies are also presented. The article also discusses the general implications of the case. To understand strategic processes in industrial firms we must know what freedom of action each firm had in its field. Also, the formulation of different strategies must be seen as a result of the internal organizational structure in each firm, in terms of corporate culture, style of leadership, etc. Strategic actions and organizational changes are inseparable parts of the same development process.

Continuity in Change — Path Dependence and Transformation in Two Swedish Multinationals

Stability and change are central concepts in the field of strategic management. While companies are confronted with pressures for change, there are also inertial forces that tie organizations to established patterns. Hence, Melin (1998) describes the strategy process as a struggle between what exists and the possibilities for the future. Since the mid-1980s, a growing body of literature on path dependence has elaborated on the phenomenon of lock-ins during development trajectories (Arthur, 1989; David, 1985). Path-dependent developments are impossible or at least very hard to reverse and may result in inefficiency when necessary changes are prevented. Recently, Garud and Karnoe (2001) launched the alternative concept of path creation. While recognizing the existence of path-dependent developments, they emphasize the ability of entrepreneurs to make mindful deviations from established paths to accomplish change.