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This paper seeks to develop a mid-range theory of how change recipient sensemaking processes affect the realization of strategic flexibility during simultaneous change in professional service firms.

The research presented is based on an exploratory embedded case study adopting a qualitative interpretive methodology, conducted at a professional service organization. A sensemaking lens was adopted in order to study organizational change processes. Data was collected through semi-structured open-ended in-depth interviews, and analyzed using first and second order analysis, inspired by the methodology used by Corley and Gioia (2004).

We identified four determinants of change recipient sensemaking: professional identification, dominant organizational discourse, equivocality of expectations, and cross-understanding between thought worlds. Case findings indicate that cognitive and affective dimensions of change recipient sensemaking are strongly interwoven in their effect on realizing strategic flexibility.

We contribute to the competence-based strategic management literature by introducing the concept of change recipient sensemaking in understanding the realization of strategic flexibility; by identifying four major determinants in a context of simultaneous change in a professional service organization; and by highlighting the interwoven and mutually reinforcing cognitive and affective dimensions of professional’s process of constructing meaning.

Effective competence-based management (CBM) requires in the first instance an ability to identify an organization’s competences and the sources of those competences. Identifying competences can be especially challenging in the context of not-for-profit organizations, which have often been characterized as being “different” from for-profit organizations. In this paper we argue that not-for-profit organizations have fundamentally the same systemic requirements for survival and success as for-profit organizations – and therefore that not-for-profits ought to be amenable to competence identification and analysis through use of CBM concepts and theory in essentially the same way as for-profit organizations. We support this basic proposition through a case study of competence identification and analysis in a humanitarian relief organization (HRO), an increasingly important kind of not-for-profit organization.

In this paper we extend established concepts of product and process architectures to propose a concept of organization architecture that defines the essential features of the system design of an organization needed to achieve an effective strategic alignment of an organization with its competitive and/or cooperative environment. Adopting a work process view of organization, we draw on concepts of product and process architectures to elaborate fundamental elements in the design of an organization architecture. We suggest that organization architectures may be designed to support four basic types of change in organization resources, capabilities, and coordination, which we characterize as convergence, reconfiguration, absorptive integration, and architectural transformation. We also suggest the kinds of strategic flexibilities that an organization must have to create and implement each type of organization architecture. We identify four basic types of strategic environments and consider the kinds of changes in resources, capabilities, and coordination that need to be designed into an organization's architecture to maintain effective strategic alignment with its type of environment. We then propose a typology that identifies four basic ways in which organizational architectures may be effectively aligned with strategic environments. Extending the reasoning underlying the proposed alignments of organization architectures with strategic environments, we propose a strategic principle of architectural isomorphism, which holds that maintaining effective strategic alignment of an organization with its environment requires achieving isomorphism across a firm's product, process, and organization architectures. We conclude by considering some implications of the analyses undertaken here for competence theory, general and mid-range strategy theory, and organization theory.

In this paper we develop an integrated model identifying the key factors involved in managing exploratory innovation processes while also maintaining current business models and processes.

We first characterize the problem of innovation as consisting of “the four central problems” organizations face when trying to manage innovation processes (Van de Ven, 1986). We develop an enhanced version of O’Connor’s (2008) Discovery, Incubation and Acceleration (DIA) model by integrating elements of Sanchez’ (2012) theory of architectural isomorphism as well as Markides’ (2008) framework for strategically assessing the benefits of segregation versus integration of innovation processes. We develop and apply our model working with managers in two company contexts to assure the ability of our Integrated Model to identify key organizational and strategic variables that need to be recognized and managed in order to sustain successful exploratory innovation processes.

Reviews of our “Enhanced Integrated Model” with managers in the two companies suggest that our model would help them to recognize and manage key issues that were not addressed adequately in their prior efforts at exploratory innovation.

Our model building process provides a basic template for other research focused on developing normative management models through case-based research. The specific elements included in our Enhanced Integrated Models should provide managers with a useful model for managing exploratory innovation processes.

Part I of this chapter applies the principles of the philosophy of science and the derived scientific method to analyze the foundational concepts and core proposition of the Resource-Base View (RBV) as popularized by Barney (1986, 1991, 1997). This analysis identifies seven fundamental conceptual deficiencies and logic problems in Barney's conceptualization of “strategically valuable resources” and in Barney's VRIO framework for identifying strategically valuable resources that can be sources of sustained competitive advantage. Three problems – the Value Conundrum, the Tautology Problem in the Identification of Resources, and the Absence of a Chain of Causality – relate to the RBV's and VRIO's failure to provide an adequate conceptual basis for identifying strategically valuable resources. The Uniqueness Dilemma, the Cognitive Impossibility Dilemma, and an Asymmetry in Assumptions about Resource Factor Markets result in an inability of the VRIO framework to support identification of resources that can be sources of sustained competitive advantage. More fundamentally, the core proposition of the RBV – that resources that are strategically valuable, rare, inimitable, and organizationally embedded are sources of sustainable competitive advantage – is argued to result directly in the Epistemological Impossibility Problem that precludes use of the scientific method in RBV research. This chapter argues that until these conceptual deficiencies and logic problems are recognized and remedied, the RBV – in spite of its current popularity – is and will remain theoretically sterile and incapable of contributing in any systematic way to the development of strategy theory.

Part II of this chapter then suggests how foundational concepts developed within the competence perspective on strategy provide essential remedies for the identified deficiencies and problems in the RBV – and thereby provide a more conceptually adequate basis for representing the nature of firms in the scientific study of their interactions and competitive outcomes.

The aim of this paper is to advance applied theoretical knowledge on international business (IB) ideation by designing the managing of such ideation as three recursive, multi-competence-enabled systems.

The core principles of Beer’s (1985) Viable System Model are adopted for this system design task. The Viable System Model consists of five interacting sub-systems that can support a viable IB unit.

The contribution of this design of the three recursive, multi-competence-enabled systems will be three novel pieces of the applied theoretical knowledge about recursivity and competences that advance the management of an IB unit as a whole and in particular that of IB ideation.

For future research, I initially propose that the IB ideation (unit) is being managed the more successfully within its focal contexts, the more extensively the IB ideation is designed as a set of three recursive systems enabled by respective multi-competences. Moreover, the 3-system design may serve as the frame of reference for those compatible theorization initiatives vis-à-vis viable IB ideation management that interested competence-based management scholars will conduct in the future.

I put forth the three templates (coupled with Functions 2–3) to facilitate the enhancement of the IB ideation practices among leading, innovative firms and especially by the pioneering management of IB (ideation) units.

This paper proposes a competence that enables the pivot organization to dynamically combine (assemble/disassemble, activate/deactivate) resources as needed, and introduces the concept of “dynamic assembly” that integrates this new competence into the historic pivot’s capacities.

Two in-depth case studies performed in two different contexts support our theoretical construct and exhibit the strategic role of the pivot-assembler in the conception, combination, coordination, and control of temporary chains and networks.

The results of our research confirm that dynamic assembly is an important characteristic of both, the travel industry and humanitarian relief, in which the four dimensions (conception, combination, coordination, and control) were found.

From this research it is possible to consider that the theoretical construct of dynamic assembly is meaningful in these types of contexts where chains are temporarily assembled from a dynamic network. Complementary research should look at the characteristics of the organizational structure and the management of competences in loosely-coupled organizations (Weick, 1982) and hastily formed networks (Denning, 2006).

The chapter aims to analyse the influence of the board of directors on transparency and integrity in hybrid organisations like state-owned enterprises. The effect of several characteristics of directors on the board’s effectiveness was assessed. The empirical analysis was based on 60 Italian listed and non-listed state-owned enterprises. Each enterprise’s website was individually examined and coded to obtain two self-constructed indexes on transparency and integrity, and a regression model was created to test the hypotheses.

The ‘knowledge structure’ of interlocking directors and board compensation were found to be both positively related to the level of commitment among state-owned enterprises to transparency and integrity. Skill and gender diversity on the board had no significant impact. The analysis used data from a one-year period but dealt with hidden and complex phenomena like corruption. Future longitudinal studies and qualitative approaches would provide more comprehensive insights into the relationship between the board of directors, transparency and integrity over time.

Policymakers and all those involved in the appointment of directors to state-owned enterprises should be aware that some features of board members may affect the levels of organisational transparency and integrity. The chapter contributes to the literature on governance of state-owned enterprises, emphasising the board’s role and its effectiveness in sustaining transparency and integrity.

The purpose of this paper is to carry out a bibliometric analysis of the Competence-Based Management (CBM) field. From the first books dedicated to CBM (Hamel & Heene, 1994; Sanchez, Heene, & Thomas, 1996; Heene & Sanchez, 1997) to more recent publications, the CBM field experienced a significant development. As the International Conferences on Competence-Based Management is a place for exchange and development of new ideas and applications, it appears to be central to the consolidation of the field. The conferences are followed by the publication of a series of books and a journal (Research in Competence-Based Management). Therefore it seems particularly adapted to use these publications in order to analyze the CBM field. We identified 12 books and 3 journal issues published between 1994 and 2005. This corresponds to a total of 185 papers written by 213 different authors, and a total of 7,958 references cited in these papers. We present the results of our research in three steps. First, we analyze the profile of the authors of the papers. This leads to the identification of the most prominent authors and the identification of the authors' country of origin. Second, we analyze the content of the papers. We identify the type of the papers (theoretical or empirical), the main methodology (qualitative or quantitative), and the keywords. Third, we analyze the references. This allows the identification of the most frequently cited references, and their historical structure. In order to deepen the latter analysis, we perform a co-citation analysis to identify networks of references. The overall results lead to a better understanding of the organization of the CBM field.

The growing displacement of theory and other forms of wide-ranging knowledge of social phenomena by empirical research methods in economics is widely noted by economists and historians of economic knowledge. Less attention has been devoted, however, to understand the materialization of such changes in the scientific practices. This article studies the recent transformations in the epistemological practices at CEDE, a research center in Colombia. I use a machine learning technique called Topic Modeling, interviews to CEDE researchers, and exegesis of papers to characterize a shift in the production of knowledge in microeconometrics at CEDE during the years 2000 and 2018. I explain this shift by characterizing two sets of epistemological practices that implies a recent tendency to disdain research that cannot make a “strong” causal inference.