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Article
Publication date: 31 October 2008

Brane Kalpič

The strategic thinking behind numerous M&As is: “bigger is more important than better”. Such logic is also followed in the growth strategies of many players who believe that

3879

Abstract

Purpose

The strategic thinking behind numerous M&As is: “bigger is more important than better”. Such logic is also followed in the growth strategies of many players who believe that increasing scale via M&As will bring sustainable competitive advantage and generate above‐average financial performance and value creation for their shareholders. But numerous failed M&As and the modest financial performance of many large players compared to smaller ones question the universality of this logic. The aim of this article is to emphasize how important it is in strategic decision‐making to correctly understand and interpret contemporary concepts such as scale‐based completion, industry consolidation, and M&As.

Design/methodology/approach

The discussion is guided by three leading questions which need to be answered in any strategy formulation process: does scale matter, and where? What are the implications of industry concentration? What should be the strategic logic behind M&As? These questions are addressed according to the key assumptions and premises of the merger and industry consolidation theory and the Rule of Three concept, and the discussion is enriched by several cases and examples from various industries.

Findings

Scale does not necessarily bring competitive advantage, improve financial performance, or generate scale‐related synergies per se. To develop sustainable competitive advantage, executives must understand the true nature and mechanisms which drive the industry concentration process, value creation through M&As and the consequent advantages of increasing company scale.

Originality/value

The article discloses key strategic elements to be considered when formulating effective corporate strategies in a complex business environment and a context of rapidly concentrating industries. The discussion also raises awareness regarding the importance of strategic logic, correct interpretation of strategic concepts and sensitivity toward differences in industries in avoiding false conclusions and poorly‐formulated strategies.

Details

Journal of Business Strategy, vol. 29 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 1 May 2006

Brane Kalpič and Peter Bernus

As economies move into the information age and post‐industrial era, information and knowledge become important resources to organizations. The article sets out to discuss the role

9235

Abstract

Purpose

As economies move into the information age and post‐industrial era, information and knowledge become important resources to organizations. The article sets out to discuss the role and contribution of business process modeling (BPM) in the knowledge management initiative and in the management of company‐specific knowledge.

Design/methodology/approach

The authors consider BPM as a tool for knowledge management that allows the transformation of informal knowledge into formal knowledge and facilitates its externalization and sharing. The article starts with the brief introduction of the theoretical background of business process modeling and its basic concepts, and also presents definitions and concepts of major knowledge categories, knowledge processes and knowledge resources, as have been given by different authors in the knowledge management (KM) domain. These definitions are used as a basis for the knowledge category model and knowledge process model proposed by the authors.

Findings

The article presents findings of the mapping process of the BPM concepts into the knowledge life‐cycle model, proposed by Nonaka and Takeuchi and knowledge categories defined by different authors. During mapping, the authors experienced a lack of explicit and widely accepted definitions of knowledge categories and knowledge processes in respect of all knowledge features.

Originality/value

The article emphasizes an important differentiation between various categories of knowledge, identified in the BPM process, as a basis for the business process‐related knowledge categorization and identification of key knowledge processes. The article also presents the theoretical framework, which gives an account of how and when business process models capture and allow the sharing of knowledge. The framework identifies key knowledge categories, stages in knowledge transformation, and activities in this process.

Details

Journal of Knowledge Management, vol. 10 no. 3
Type: Research Article
ISSN: 1367-3270

Keywords

Available. Content available
Article
Publication date: 31 October 2008

450

Abstract

Details

Journal of Business Strategy, vol. 29 no. 6
Type: Research Article
ISSN: 0275-6668

Available. Content available
Article
Publication date: 1 May 2006

Rory L. Chase

717

Abstract

Details

Journal of Knowledge Management, vol. 10 no. 3
Type: Research Article
ISSN: 1367-3270

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