R. Duane Ireland

Alliance Management as a Source of Competitive Advantage

Strategic alliances are an important source of resources, learning, and thereby competitive advantage. Few firms have all of the resources needed to compete effectively in the current dynamic landscape. Thus, firms seek access to the necessary resources through alliances. We examine the management of strategic alliances using the theoretical frames of transactions cost, social network theory and the resource-based view. Alliances must be effectively managed for their benefits to be realized. Effective alliance management begins with selecting the right partner. Furthermore, alliances must be managed to build social capital and knowledge. To maximize cooperation among the partners, a trust-based relationship must be developed. Therefore, we conclude that managing alliances is crucial for firms to gain competitive advantage and create value with strategic alliances.

A Model of Strategic Entrepreneurship: The Construct and its Dimensions

Strategic entrepreneurship (SE) involves simultaneous opportunity-seeking and advantage-seeking behaviors and results in superior firm performance. On a relative basis, small, entrepreneurial ventures are effective in identifying opportunities but are less successful in developing competitive advantages needed to appropriate value from those opportunities. In contrast, large, established firms often are relatively more effective in establishing competitive advantages but are less able to identify new opportunities. We argue that SE is a unique, distinctive construct through which firms are able to create wealth. An entrepreneurial mindset, an entrepreneurial culture and entrepreneurial leadership, the strategic management of resources and applying creativity to develop innovations are important dimensions of SE. Herein we develop a model of SE that explains how these dimensions are integrated to create wealth.

Signaling Theory: A Review and Assessment

Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information. Typically, one party, the sender, must choose whether and how to communicate (or signal) that information, and the other party, the receiver, must choose how to interpret the signal. Accordingly, signaling theory holds a prominent position in a variety of management literatures, including strategic management, entrepreneurship, and human resource management. While the use of signaling theory has gained momentum in recent years, its central tenets have become blurred as it has been applied to organizational concerns. The authors, therefore, provide a concise synthesis of the theory and its key concepts, review its use in the management literature, and put forward directions for future research that will encourage scholars to use signaling theory in new ways and to develop more complex formulations and nuanced variations of the theory.

Emerging Issues in Corporate Entrepreneurship

Research on corporate entrepreneurship (CE) has grown rapidly over the past decade. In this article, we identify four major issues scholars can pursue to further our understanding about CE. The issues we explore include various forms of CE (e.g., sustained regeneration, domain redefinition) and their implications for organizational learning; the role of leadership and social exchange in the CE process; and, key research opportunities relevant to CE in an international context. To address the latter issue, we propose a typology that separates content from process-related studies and new ventures vs. established companies. We close with a reassessment of the outcomes in CE research, which becomes particularly salient with the increasing importance of social, human, and intellectual capital in creating competitive advantages and wealth in today’s knowledge economy. Throughout the article, we use the organizational learning theory as a means of integrating our discussion and highlighting the potential contributions of CE to knowledge creation and effective exploitation.

Resource complementarity in business combinations: Extending the logic to organizational alliances

Organizations are combining resources through acquisitions and alliances in record numbers. Since publication of our original study in 1991, research has confirmed that resource complementarity creates the potential for greater synergy from acquisitions and alliances, leading to higher long-term firm performance as an end result. The valuable, unique, and inimitable synergy that can be realized by integrating complementary resources provides an opportunity for the firm to create competitive advantages that can be sustained for a period of time. In addition, complementary resources present opportunities for enhanced learning as well as the development of new capabilities. However, we also suggest that the existence of complementary resources is a necessary but insufficient condition to achieve synergy. The resources must be effectively integrated and managed to realize the synergy.

Industry Effects and Strategic Management Research

Adequate controls for potential industry effects have not been used in many strategic management studies. Similarly, strategy researchers have not consistently used adequate conceptualizations of industrial environments in the design of their empirical work. Findings derived from research with such design and execution deficiencies may result in misleading interpretations. Forty of the most frequently cited empirical strategy studies published between 1980 and 1988 are identified and analyzed. The results of this analysis indicate how researchers have approached the phenomenon of industry effects in the conduct of strategic management research. Methods for controlling for industry effects and the implications of the arguments presented herein for future research and theory building are discussed in thefinal sections of the paper.

Resource Orchestration to Create Competitive Advantage: Breadth, Depth, and Life Cycle Effects

In this article, the authors discuss how an emerging research stream, which they term resource orchestration, has the potential to extend the understanding of resource-based theory (RBT) by explicitly addressing the role of managers’ actions to effectively structure, bundle, and leverage firm resources. First, the authors review this emerging stream by comparing two related frameworks, resource management and asset orchestration. This comparison leads to their integration, which enables a more precise understanding of managers’ roles within RBT. Then the authors discuss what is known and what remains to be known about resource orchestration. This leads to in-depth reviews of three areas where research on resource orchestration can be used to extend RBT. These areas are (1) breadth (resource orchestration across the scope of the firm), (2) life cycle (resource orchestration at various stages of firm maturity), and (3) depth (resource orchestration across levels of the firm). They close with a discussion of future research that will extend resource orchestration and contribute to a more robust RBT.

Conceptualizing Corporate Entrepreneurship Strategy

Our knowledge of corporate entrepreneurship (CE) continues to expand. However, this knowledge remains quite fragmented and non–cumulative. Herein, we conceptualize CE strategy as a useful focal point for integrating and synthesizing key elements within CEs intellectual domain. The components of our CE strategy model include (1) the antecedents of CE strategy (i.e., individual entrepreneurial cognitions of the organizations members and external environmental conditions that invite entrepreneurial activity), (2) the elements of CE strategy (i.e., top managements entrepreneurial strategic vision for the firm, organizational architectures that encourage entrepreneurial processes and behavior, and the generic forms of entrepreneurial process that are reflected in entrepreneurial behavior), and (3) the outcomes of CE strategy (i.e., organizational outcomes resulting from entrepreneurial actions, including the development of competitive capability and strategic repositioning). We discuss how our model contributes to the CE literature, distinguish our model from prior models, and identify challenges future CE research should address.

A Mid-Range Theory of the Interactive Effects of International and Product Diversification on Innovation and Performance

Some research in international management has focused on international diversification as a strategy, while substantial research in strategic management has focused on product diversification. However, corporate strategies may include both product and geographic international diversification components. Furthermore, little theoretical work has linked the interaction of these two strategies to innovation and performance. This paper develops theoretical arguments depicting the interactive effects of international and product diversification in a comprehensive model. The theory presented suggests that international diversification is positively related to both innovation and firm performance, and positively moderates the relationship between product diversification and innovation and performance. The central concept is that innovation is generally facilitated by international diversification, while the general relationship between product diversification and innovation is negative. However, because of the co...

The Concept of “Opportunity” in Entrepreneurship Research: Past Accomplishments and Future Challenges

Opportunity is a central concept within the entrepreneurship field, and there is now a critical mass of literature centered on the concept. The authors seek to make two main contributions to this literature. First, we provide a detailed review of research on the opportunity concept and the processes surrounding it, highlighting extant insights and future needs. Second, we describe ways that the entrepreneurship literature’s insights about the opportunity concept could be enhanced by research in other fields, both inside and outside business-related domains.