Capabilities for strategic flexibility:a cognitive content framework

Different forms of strategic flexibility allow for reactive adaptation to different changing environments and the proactive driving of change. It is therefore becoming increasingly important for decision makers to not only possess marketing capabilities, but also the capabilities for strategic flexibility in its various forms. However, our knowledge of the relationships between decision makers’ different ways of thinking and their capabilities for strategic flexibility is limited. This limitation is constraining research and understanding. In this article we develop a theoretical cognitive content framework that postulates relationships between different ways of thinking about strategy and different information-processing demands. We then outline how the contrasting beliefs of decision makers may influence their capabilities to generate different hybrid forms of strategic flexibility at the cognitive level. Theoretically, the framework is embedded in resource-based theory, personal construct theory and schema theory. The implications for research and theory are discussed.

Trade-offs in customer–employee focus:implications on boundary-spanning capabilities

In pursuing their particular strategic goals, organisations place differential emphasis in their activities on employees and customers. Those who focus predominantly on employees see them as key resources contributing to successful achievement of goals, while those who focus on customers believe that customer commitment is the prime source of financial prosperity and competitive advantage. In all firms, there is potential for conflict and subsequent trade-offs in the emphasis placed on employee resources and customers. This paper investigates the implications of these potential trade-offs on firms’ boundary-spanning capabilities (those capabilities that enable firms to interact effectively with their customers, their suppliers, their strategic allies and others in their business networks) in European and Australasian markets. The results suggest that those companies which achieve a strong but balanced focus on both employees and customers have heightened boundary-spanning capabilities. The comparison between UK and Australian businesses indicates that the balance is more highly developed in Australasian than European (UK) markets.

Trade-offs in customer-employee focus:Implications on boundary-spanning capabilities

In pursuing their particular strategic goals, organisations place differential emphasis in their activities on employees and customers. Those who focus predominantly on employees see them as key resources contributing to successful achievement of goals, while those who focus on customers believe that customer commitment is the prime source of financial prosperity and competitive advantage. In all firms, there is potential for conflict and subsequent trade-offs in the emphasis placed on employee resources and customers. This paper investigates the implications of these potential trade-offs on firms' boundary-spanning capabilities (those capabilities that enable firms to interact effectively with their customers, their suppliers, their strategic allies and others in their business networks) in European and Australasian markets. The results suggest that those companies which achieve a strong but balanced focus on both employees and customers have heightened boundary-spanning capabilities. The comparison between UK and Australian businesses indicates that the balance is more highly developed in Australasian than European (UK) markets. © 2004 by The Haworth Press, Inc. All rights reserved.